For Immediate Release | February 10, 2010 |
and Announces the Declaration of its First Quarterly Dividend Since 1999
Gonzales, Louisiana – Crown Crafts, Inc. (the “Company”) (NASDAQ-CM: CRWS) today reported net income for the third quarter of fiscal year 2010, which ended December 27, 2009. The Company also announced the declaration of a quarterly cash dividend of $0.02 per share on its common stock, which is the first dividend declared by the Company since 1999.
Historical Results
Net income for the quarter was $1.1 million, or $0.12 per diluted share, on net sales of $20.6 million, compared to a net loss for the third quarter of fiscal year 2009 of $8.2 million, or $0.88 per diluted share, on net sales of $19.3 million. The net loss for the third quarter of fiscal year 2009 included a non-cash charge of $9.0 million for an estimate of a probable impairment to goodwill. Excluding the goodwill impairment charge, the Company would have reported net income of $822,000, or $0.09 per diluted share, in the third quarter of fiscal year 2009.
“We are pleased to have increased our net sales by $1.3 million, or 6.9%, during the quarter,” commented E. Randall Chestnut, Chairman, President and Chief Executive Officer of the Company. “We are also pleased with our continued success in integrating the product development, sourcing and distribution operations of Neat Solutions, which we acquired in July 2009 and which contributed $1.1 million toward the increase in our net sales during the quarter. We are also pleased that our net income (exclusive of the impairment charge) improved by 35.4% in a very difficult retail environment. The Company’s EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter was $2.3 million, compared to EBITDA of $2.1 million for the third quarter of fiscal year 2009,” Mr. Chestnut continued.
Declaration of Quarterly Cash Dividend
The Company also today announced that its Board of Directors, at its meeting on February 9, 2010, declared a quarterly cash dividend on the Company’s Series A common stock of $0.02 per share to stockholders of record at the close of business on March 12, 2010 and payable on April 2, 2010. In announcing the first dividend declared by the Company since 1999, which will provide an annualized yield of 2.9% based on yesterday’s closing price of $2.77 per share, Mr. Chestnut stated, “Over the years, we have employed several strategies to provide value to our stockholders, including the repayment of debt, the cancellation of warrants held by our lenders, targeted acquisitions and share repurchases. A program of regular quarterly cash dividends will provide immediate value to our stockholders and demonstrates our continued confidence in the Company’s earnings capacity and the strength of its balance sheet, even in a challenging economic environment. We do not expect that paying quarterly cash dividends will preclude the Company from pursuing other strategic alternatives as well, and we are pleased to be in a position to further share the Company’s success with its owners.”
Contact: | Investor Relations Department | |
(225) 647-9146 | ||
or | ||
Halliburton Investor Relations | ||
(972) 458-8000 |
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CONSOLIDATED STATEMENTS OF INCOME
SELECTED FINANCIAL DATA
In thousands, except percentages and per share data
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
December 27, 2009 | December 28, 2008 | December 27, 2009 | December 28, 2008 | |||||||||||||
Net sales | $ | 20,646 | $ | 19,316 | $ | 60,094 | $ | 62,830 | ||||||||
Gross profit | 4,638 | 3,797 | 13,121 | 12,890 | ||||||||||||
Gross profit percentage | 22.5 | % | 19.7 | % | 21.8 | % | 20.5 | % | ||||||||
Goodwill impairment charge | — | 9,000 | — | 9,000 | ||||||||||||
Income (loss) from operations | 1,892 | (7,420 | ) | 4,496 | (4,206 | ) | ||||||||||
Income (loss) from continuing operations before income taxes | 1,720 | (7,648 | ) | 3,885 | (5,019 | ) | ||||||||||
Income tax expense | 598 | 526 | 1,409 | 1,532 | ||||||||||||
Income (loss) from continuing operations after income taxes | 1,122 | (8,174 | ) | 2,476 | (6,551 | ) | ||||||||||
Income (loss) from discontinued operations – net of income taxes | (9 | ) | (4 | ) | (22 | ) | 27 | |||||||||
Net income (loss) | 1,113 | (8,178 | ) | 2,454 | (6,524 | ) | ||||||||||
Basic earnings (loss) per share | $ | 0.12 | $ | (0.88 | ) | $ | 0.27 | $ | (0.70 | ) | ||||||
Diluted earnings (loss) per share | $ | 0.12 | $ | (0.88 | ) | $ | 0.26 | $ | (0.70 | ) | ||||||
Weighted Average Shares Outstanding: | ||||||||||||||||
Basic | 9,167 | 9,265 | 9,186 | 9,353 | ||||||||||||
Diluted | 9,271 | 9,265 | 9,287 | 9,353 |
SELECTED FINANCIAL DATA
In thousands
December 27, 2009 | March 29, 2009 | |||||||
(Unaudited) | ||||||||
Cash and cash equivalents | $ | 920 | $ | 15,249 | ||||
Accounts receivable, net of allowances | 13,836 | 18,954 | ||||||
Inventories | 13,293 | 11,751 | ||||||
Total current assets | 31,475 | 48,495 | ||||||
Intangible assets, net | 6,755 | 5,515 | ||||||
Total assets | $ | 41,761 | $ | 56,527 | ||||
Current maturities of long-term debt | $ | 3,861 | $ | 1,667 | ||||
Total current liabilities | 14,875 | 10,548 | ||||||
Long-term debt | 1,784 | 23,568 | ||||||
Shareholders’ equity | 25,102 | 22,411 | ||||||
Total liabilities and shareholders’ equity | $ | 41,761 | $ | 56,527 |
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NON-GAAP RECONCILIATION OF NET INCOME TO EBITDA
In thousands, except percentages
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
December 27, 2009 | December 28, 2008 | December 27, 2009 | December 28, 2008 | |||||||||||||
Net income (loss) | $ | 1,113 | $ | (8,178 | ) | $ | 2,454 | $ | (6,524 | ) | ||||||
Interest expense | 181 | 265 | 581 | 900 | ||||||||||||
Interest income | (3 | ) | (35 | ) | (14 | ) | (123 | ) | ||||||||
Income tax expense on continuing operations | 598 | 526 | 1,409 | 1,532 | ||||||||||||
Income tax expense (benefit) on discontinued operations | (4 | ) | (2 | ) | (11 | ) | 15 | |||||||||
Depreciation | 72 | 64 | 220 | 225 | ||||||||||||
Goodwill impairment charge | — | 9,000 | — | 9,000 | ||||||||||||
Amortization | 347 | 434 | 1,265 | 1,311 | ||||||||||||
EBITDA | 2,304 | 2,074 | 5,904 | 6,336 | ||||||||||||
Net Sales | 20,646 | 19,316 | 60,094 | 62,830 | ||||||||||||
EBITDA as a percentage of net sales | 11.2 | % | 10.7 | % | 9.8 | % | 10.1 | % | ||||||||
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