Crown Crafts, Inc., a consumer apparel and products manufacturer, announced its results for the 2nd quarter of fiscal year 2009. Crown Crafts’ fiscal year ends March 29 of each calendar year. For the 2nd quarter of FY 09, net income came in at $1,035,000 on net sales of $23.8 million. By comparison, for the 2nd quarter of FY ‘08, net income and net sales were $541,000 and $17.1 million respectively.
Asked to comment on the results, E. Randall Chestnut, Chairman, President and Chief Executive Officer said “We are very pleased that we have nearly doubled our bottom line,” Chestnut also noted that Crown Craft’s “gross profit for the quarter has increased in amount, although our gross profit percentage has declined year-over-year.”
The decrease in the gross profit percentage, according to Chestnut, was because of amortized costs with the 3rd quarter FY ‘08 purchase of the Springs Global baby products line. Operating costs increased last quarter because Crown Crafts established a Foreign Representative Office in China. Costs also increased because of price increases imposed on the company by its Asian suppliers.
However, Chestnut stated, “Despite these added costs, we have increased our overall profitability by increasing our top-line sales and by holding the line on our marketing and administrative costs, which were nearly unchanged from the prior year. Our EBITDA (earnings before interest and taxes plus depreciation and amortization) more than doubled to $2.5 million in the current year, up from $1.1 million in the prior year.”
Crown Crafts additionally confirmed its anticipated results for FY ‘09. Crown Crafts forecasts net revenues in the range of $90 million to $93 million. The Company’s EBITDA should, according to the company, fall in the range of $10.2 million to $10.8 million. This range translates in percentage terms to 11.3% to 11.6% net of sales. The results would produce earnings per diluted share in the range of $0.41 to $0.46.
Founded in 1957 and headquartered in Gonzales, Louisiana, Crown Crafts, Inc., through its subsidiaries, engages in the design, marketing, and global distribution of infant and toddler products. Its infant products include crib bedding, blankets, nursery accessories, room decor, bibs, burp cloths, bathing accessories, and other infant soft goods. The company also produces hand-woven throws for infants and adults. Its customers comprise mass merchants, chain stores, juvenile specialty stores, Internet accounts, wholesale clubs, and catalogue and direct mail houses.
Let us hear your thoughts below:
