First Quarter Fiscal 2027 Summary
- Net sales of
$16.8 million increased from$15.5 million in the prior-year quarter - Gross profit margin increased to 47.9% from 22.7% in the prior-year quarter, reflecting tariff refunds recorded in the first quarter of 2027. Adjusted for tariff refunds, gross profit margin would have been 25.6%, up 290 basis points year over year
- Net income of
$2.1 million , or$0.19 per share, increased from a net loss of$1.1 million , or$0.10 per share, in the prior-year quarter - Declared a quarterly dividend of
$0.03 per share on Series A common stock
“Our new fiscal year is off to a solid start with year-over-year growth, expansion of our gross margin, and positive net income, even when adjusting for tariff refunds net of related expenses,” said
First Quarter Fiscal 2027 Results
Net sales increased to
Marketing and administrative expenses of
Quarterly Cash Dividend
The Board of Directors declared a quarterly cash dividend on the Company’s Series A common stock of
Conference Call
The Company will host a teleconference today at
A telephone replay of the teleconference will be available three hours after the call through
About Crown Crafts, Inc.
Founded in 1957, Crown Crafts, Inc. designs, markets, and distributes infant, toddler, and juvenile consumer products including infant bedding, toddler bedding, diaper bags, bibs, toys, and disposable products. The Company primarily operates through its 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 (Sassy®, NoJo®, Manhattan Toy®, Baby Boom® and Neat Solutions®), as well as licensed collections and exclusive private label programs. Sales are made directly to retailers such as mass merchants, large chain stores, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, wholesale clubs, internet-based retailers and direct-to-consumers through the Company’s websites. For more information, visit 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 the impact of increased U.S. tariffs and any retaliatory measures by impacted exporting countries, the Company’s ability to mitigate the impact of such tariffs, 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:
Claire Spencer
Vice President and Chief Financial Officer
Investor@crowncrafts.com
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| THREE-MONTH PERIODS ENDED | |||||||
| (amounts in thousands, except per share amounts) | |||||||
| Net sales | $ | 16,766 | $ | 15,478 | |||
| Cost of products sold | 8,735 | 11,960 | |||||
| Gross profit | 8,031 | 3,518 | |||||
| Marketing and administrative expenses | 5,232 | 4,717 | |||||
| Income (loss) from operations | 2,799 | (1,199 | ) | ||||
| Other income (expense): | |||||||
| Interest expense - net of interest income | (190 | ) | (283 | ) | |||
| Other income - net | 165 | 99 | |||||
| Income (loss) before income tax expense | 2,774 | (1,383 | ) | ||||
| Income tax expense (benefit) | 714 | (279 | ) | ||||
| Net income (loss) | $ | 2,060 | $ | (1,104 | ) | ||
| Weighted average shares outstanding: | |||||||
| Basic | 10,760 | 10,570 | |||||
| Effect of dilutive securities | - | - | |||||
| Diluted | 10,760 | 10,570 | |||||
| Earnings (loss) per share - basic and diluted | $ | 0.19 | $ | (0.10 | ) | ||
| See notes to consolidated financial statements. | |||||||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (amounts in thousands, except share and per share amounts) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 194 | $ | 200 | ||||
| Accounts receivable - net of allowances of | ||||||||
| Due from factor | 11,557 | 16,280 | ||||||
| Other | 2,152 | 2,579 | ||||||
| Inventories | 26,792 | 28,365 | ||||||
| Other current assets | 4,512 | - | ||||||
| Prepaid expenses | 2,300 | 2,176 | ||||||
| Total current assets | 47,507 | 49,600 | ||||||
| Operating lease right of use assets | 9,054 | 8,956 | ||||||
| Property, plant and equipment - net of accumulated depreciation of | 2,008 | 2,011 | ||||||
| Intangible assets - net of accumulated amortization of | 6,088 | 6,275 | ||||||
| Deferred income taxes | 3,737 | 3,657 | ||||||
| Other assets | 147 | 154 | ||||||
| Total Assets | $ | 68,541 | $ | 70,653 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,177 | $ | 4,913 | ||||
| Accrued royalties | 347 | 532 | ||||||
| Dividends payable | 987 | 952 | ||||||
| Operating lease liabilities, current | 4,250 | 4,198 | ||||||
| Accrued liabilities | 2,093 | 1,283 | ||||||
| Current maturities of long-term debt | 1,991 | 1,991 | ||||||
| Total current liabilities | 14,845 | 13,869 | ||||||
| Non-current liabilities: | ||||||||
| Long-term debt | 7,599 | 12,132 | ||||||
| Operating lease liabilities, noncurrent | 5,548 | 5,529 | ||||||
| Reserve for unrecognized tax liabilities | 334 | 310 | ||||||
| Total non-current liabilities | 13,481 | 17,971 | ||||||
| Shareholders' equity: | ||||||||
| Common stock - | 137 | 137 | ||||||
| Additional paid-in capital | 59,605 | 59,402 | ||||||
| (15,889 | ) | (15,889 | ) | |||||
| Accumulated deficit | (3,638 | ) | (4,837 | ) | ||||
| Total shareholders' equity | 40,215 | 38,813 | ||||||
| Total Liabilities and Shareholders' Equity | $ | 68,541 | $ | 70,653 | ||||
| See notes to consolidated financial statements. | ||||||||
