EXHIBIT 99.1
(CROWN CRAFTS, INC. LETTERHEAD)
FOR IMMEDIATE RELEASE JUNE 19, 2003
CROWN CRAFTS, INC. REPORTS FOURTH QUARTER AND FISCAL YEAR 2003 RESULTS;
NET INCOME OF $2.5 MILLION FOR YEAR
Gonzales, Louisiana - Crown Crafts, Inc. (OTC BB: CRWS) today reported pre-tax
net income of $2.8 million ($0.13 per diluted share) for the 2003 fiscal year
ended March 30, 2003, compared to pre-tax net income of $25.1 million ($1.27 per
diluted share) for fiscal 2002. Fiscal 2003 results include a $1.8 million
reserve related to the decision to close the Company's manufacturing operations
in Mexico, whereas the results for fiscal 2002 include a one-time gain on the
extinguishment of debt of $25.0 million. Excluding these non-recurring events,
the Company's pre-tax net income for fiscal 2003 was $4.5 million ($0.21 per
diluted share) compared to fiscal 2002 net income of $114,000 ($0.01 per diluted
share), which included $1.1 million of goodwill amortization not included in
fiscal 2003 in accordance with recently issued accounting standards.
Net sales for fiscal 2003 were $94.7 million compared to $117.6 million for
fiscal 2002. The majority of this reduction in sales was due to changes in the
Company's business mix due to the sale of its Adult Bedding and Bath division.
In addition, the Company's infant, juvenile and woven product lines experienced
a decrease in sales of $2.9 million in fiscal 2003 as compared to fiscal 2002
primarily as a result of general economic challenges and the West Coast port
lockout.
Marketing and administrative expenses decreased by $8.2 million, or 13.3% of net
sales, to $12.7 million in fiscal 2003, down from $20.9 million, or 17.7% of net
sales, in fiscal 2002. This decrease was due to internal efficiency gains that
resulted from the restructuring that occurred in fiscal 2002.
For the fourth quarter ended March 30, 2003, pre-tax net income was $2.1
million ($0.10 per diluted share) compared to a pre-tax net income of $209,000
($0.01 per diluted share) for the fourth quarter of fiscal 2002. Net sales for
the fourth quarter of fiscal 2003 were $26.8 million compared to $23.7 million
for the fourth quarter of fiscal 2002. This $3.1 million increase was due in
part to a shifting of shipments from the third quarter to the fourth quarter as
a result of the West Coast port lockout. In addition, several new initiatives
and programs were shipped during the quarter.
"We're very pleased with the results of our fourth quarter and for the year,"
said E. Randall Chestnut, Crown Crafts' Chairman, President and Chief Executive
Officer. "We finished our year in a strong position. We realized the benefits of
our restructuring, which played a part in notable improvements in our operations
and lead to a significant increase in earnings per share excluding non-recurring
events. In addition, we made great strides in our financial position, decreasing
inventory levels so that they are in line with our business plan and paying $5.9
million in debt. We still face uncertainties in the economy; however, we see
many opportunities to further our position as the market leader in infant soft
goods."
The Company will host a conference call for investors on Thursday, June 19,
2003, at 1:00 p.m. Central Time. The dial-in number is (800) 611-1148. The
confirmation number is 687603. The financial information to be discussed during
the conference call may be found prior to the call on the investor relations
portion of the Company's website, www.CrownCrafts.com. A replay of the
conference call will be available after 4:30 p.m. Central Time on June 19, 2003
by telephone until June 26, 2003. To access the replay, dial (800) 475-6701 in
the United States or (320) 365-3844 from international locations. The access
code for the replay is 687603.
Crown Crafts, Inc. designs, markets and distributes infant and juvenile consumer
products, including bedding, blankets, bibs, bath and accessories and luxury
hand-woven home decor. Its subsidiaries include Hamco, Inc. in Louisiana, Crown
Crafts Infant Products, Inc. in California and Churchill Weavers in Kentucky.
Crown Crafts is America's largest producer of infant bedding and infant bibs and
bath items. The Company's products include licensed collections as well as
exclusive private label programs for certain of its customers.
Statements contained in this release that are not statements of historical fact
are "forward-looking statements" within the meaning of the federal securities
law. Forward-looking statements involve unknown risks and uncertainties that may
cause future results to differ materially from what is anticipated. These risks
include, among others, general economic conditions, changing competition, the
level and pricing of future orders from the Company's customers, the Company's
dependence on third-party suppliers, including some located in foreign countries
with unstable political situations, the Company's ability to successfully
implement new information technologies, the Company's ability to integrate its
acquisitions and new licenses and the Company's ability to implement operational
improvements in its acquired businesses.
CONSOLIDATED STATEMENTS OF OPERATIONS
SELECTED FINANCIAL DATA
In thousands, except per share data and percentages
<Table>
<Caption>
Three Months Ended Twelve Months Ended
March 30, March 31, March 30, March 31,
2003 2002 2003 2002
--------- --------- --------- ---------
Net sales $ 26,772 $ 23,685 $ 94,735 $ 117,591
Gross profit 6,420 5,429 21,420 25,928
Gross margin 24.0% 22.9% 22.6% 22.0%
Restructuring charge -- -- 1,775 --
Income from operations 3,182 1,030 6,948 5,022
Gain on extinguishment of debt -- -- -- 25,008
Net income 2,092 2,006 2,487 27,002
Basic income per share 0.22 0.21 0.26 2.95
Diluted income per share 0.10 0.10 0.12 1.37
Weighted Average Shares Outstanding:
Basic 9,421 9,421 9,421 9,167
Diluted 20,849 20,634 21,471 19,759
</Table>
CONSOLIDATED BALANCE SHEETS
SELECTED FINANCIAL DATA
In thousands
<Table>
<Caption>
March 30, 2003 March 31, 2002
-------------- --------------
Accounts receivable, net of allowances $ 15,776 $ 12,532
Inventories, net of reserves 15,548 16,451
Total current assets 32,632 33,657
Goodwill, net of amortization 22,974 23,034
Total assets 57,926 60,200
Current maturities of long-term debt 3,014 3,000
Total current liabilities 11,766 10,590
Long-term debt 30,895 36,773
Total non-current liabilities 30,895 36,797
Shareholders' equity 15,265 12,813
Total liabilities and shareholders' equity 57,926 60,200
</Table>
Contact: Investor Relations Department
(225) 647-9146
or
Halliburton Investor Relations
(972) 458-8000