GONZALES, La., Nov. 12, 2024 (GLOBE NEWSWIRE) -- Crown Crafts, Inc. (NASDAQ-CM: CRWS) (the "Company”) today reported results for the second quarter of fiscal year 2025, which ended September 29, 2024.
Second Quarter Summary
- Net sales of $24.5 million, compared with $24.1 million in the prior-year quarter
- Gross profit of 28.4 percent of net sales compared with 27.3 percent in the second quarter of fiscal 2024
- Net income of $860,000, or $0.08 per diluted share. This quarter includes approximately $788,000 ($611,000 and $0.06 per diluted share after tax) of acquisition-related costs
- Acquired the assets and liabilities of Baby Boom Consumer Products, Inc. ("Baby Boom”) on July 19th
- Declared quarterly dividend of $0.08 per share of Series A common stock
Second Quarter Fiscal 2025 Results
Net sales for the second quarter of fiscal 2025 were $24.5 million, compared to $24.1 million in the prior-year quarter. The increase in sales is primarily due to the addition of Baby Boom which contributed $3.4 million of net sales in the current-year quarter, partially offset by declines in the Company's legacy businesses, including the loss of a bib program at a major retailer.
Gross profit was 28.4% versus 27.3% in the second quarter of 2024. The increase in gross profit is considered to be materially consistent with the prior period and resulted from minor changes in product mix offset by increases in rent at the Company's Compton facility. Marketing and administrative expenses were $5.4 million, compared to $4.0 million in the second quarter of the prior year. Fiscal 2025 includes $788,000 in costs associated with the Baby Boom acquisition. Net income for the quarter was $860,000, or $0.08 per diluted share, compared to net income of $1.8 million, or $0.18 per diluted share in the prior-year quarter.
Quarterly Cash Dividend
The Company also announced that its Board of Directors declared a quarterly cash dividend on the Company's Series A common stock of $0.08 per share, which will be paid on January 3, 2025 to stockholders of record at the close of business on December 13, 2024.
Conference Call
The Company will host a teleconference today at 8:00 a.m. Central Standard Time to discuss results, during which interested individuals will be given the opportunity to ask appropriate questions. To join the teleconference, dial (844) 861-5504 and ask to join the Crown Crafts call. The teleconference can also be accessed in listen-only mode by visiting the Company's website at www.crowncrafts.com. The financial information to be discussed during the teleconference may be accessed prior to the call on the investor relations portion of the Company's website. A telephone replay of the teleconference will be available one hour after the end of the call through 4:00 p.m. Central Standard Time on February 11, 2025. To access the replay, dial (877) 344-7529 in the United States or (412) 317-0088 from international locations and enter replay access code 3679859.
About Crown Crafts, Inc.
Crown Crafts, Inc. designs, markets and distributes infant, toddler and juvenile consumer products. Founded in 1957, Crown Crafts is one of America's largest producers of infant bedding, toddler bedding, diaper bags, bibs, toys and disposable products. The Company operates through its two wholly owned subsidiaries, NoJo Baby & Kids, Inc. and Sassy Baby, Inc., which market a variety of infant, toddler and juvenile products under Company-owned trademarks, as well as licensed collections and exclusive private label programs. Sales are made directly to retailers such as mass merchants, large chain stores and juvenile specialty stores. For more information, visit the Company's website at www.crowncrafts.com.
Forward-Looking Statements
The foregoing contains forward-looking statements within the meaning of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such statements are based upon management's current expectations, projections, estimates and assumptions. Words such as "expects,” "believes,” "anticipates” and variations of such words and similar expressions identify such forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties that may cause future results to differ materially from those suggested by the forward-looking statements. These risks include, among others, general economic conditions, including changes in interest rates, in the overall level of consumer spending and in the price of oil, cotton and other raw materials used in the Company's products, changing competition, changes in the retail environment, the Company's ability to successfully integrate newly acquired businesses, the level and pricing of future orders from the Company's customers, the extent to which the Company's business is concentrated in a small number of customers, the Company's dependence upon third-party suppliers, including some located in foreign countries, customer acceptance of both new designs and newly-introduced product lines, actions of competitors that may impact the Company's business, disruptions to transportation systems or shipping lanes used by the Company or its suppliers, and the Company's dependence upon licenses from third parties. Reference is also made to the Company's periodic filings with the Securities and Exchange Commission for additional factors that may impact the Company's results of operations and financial condition. The Company does not undertake to update the forward-looking statements contained herein to conform to actual results or changes in our expectations, whether as a result of new information, future events or otherwise.
Contact:
Craig J. Demarest
Vice President and Chief Financial Officer
(225) 647-9118
Investor Relations:
Three Part Advisors
Steven Hooser, Partner, or John Beisler, Managing Director
(817) 310-8776
| CROWN CRAFTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME SELECTED FINANCIAL DATA In thousands, except percentages and per share amounts (Unaudited) | ||||||||||||||
| Three-Month Periods Ended | Six-Month Periods Ended | |||||||||||||
| September 29 2024 | October 1, 2023 | September 29 2024 | October 1, 2023 | |||||||||||
| Net sales | $ | 24,460 | $ | 24,129 | $ | 40,672 | $ | 41,252 | ||||||
| Gross profit | 6,957 | 6,596 | 10,923 | 11,338 | ||||||||||
| Gross profit percentage | 28.4 | % | 27.3 | % | 26.9 | % | 27.5 | % | ||||||
| Marketing and administrative expenses | 5,448 | 4,036 | 9,711 | 8,082 | ||||||||||
| Income from operations | 1,509 | 2,560 | 1,212 | 3,256 | ||||||||||
| Income before income tax expense | 1,127 | 2,372 | 741 | 2,878 | ||||||||||
| Income tax expense | 267 | 550 | 203 | 690 | ||||||||||
| Net income | 860 | 1,822 | 538 | 2,188 | ||||||||||
| Basic and diluted earnings per share | $ | 0.08 | $ | 0.18 | $ | 0.05 | $ | 0.21 | ||||||
| Weighted Average Shares Outstanding: | ||||||||||||||
| Basic | 10,354 | 10,199 | 10,332 | 10,177 | ||||||||||
| Diluted | 10,355 | 10,201 | 10,335 | 10,182 | ||||||||||
| (Unaudited) | ||||||||||||||
| September 29 2024 | March 31, 2024 | |||||||||||||
| Cash and cash equivalents | $ | 1,982 | $ | 829 | ||||||||||
| Accounts receivable, net of allowances | 24,375 | 22,403 | ||||||||||||
| Inventories | 33,394 | 29,709 | ||||||||||||
| Total current assets | 61,200 | 54,824 | ||||||||||||
| Operating lease right of use assets | 13,865 | 14,949 | ||||||||||||
| Finite-lived intangible assets - net | 8,048 | 2,872 | ||||||||||||
| Goodwill | 13,245 | 7,926 | ||||||||||||
| Total assets | $ | 99,350 | $ | 82,706 | ||||||||||
| Current maturities of long-term debt | 1,990 | - | ||||||||||||
| Operating lease liabilities, current | 3,785 | 3,587 | ||||||||||||
| Total current liabilities | 18,439 | 10,461 | ||||||||||||
| Long-term debt | 18,761 | 8,112 | ||||||||||||
| Operating lease liabilities, noncurrent | 10,903 | 12,138 | ||||||||||||
| Shareholders' equity | 50,835 | 51,601 | ||||||||||||
| Total liabilities and shareholders' equity | $ | 99,350 | $ | 82,706 | ||||||||||
