EXHIBIT 99.1
FOR IMMEDIATE RELEASE AUGUST 13, 2003
CROWN CRAFTS, INC. REPORTS FIRST QUARTER 2004 RESULTS;
IMPROVEMENT IN GROSS MARGIN
Gonzales, Louisiana - Crown Crafts, Inc. (the "Company") (OTCBB: CRWS) today
reported net sales for the first quarter of fiscal 2004, which ended June 29,
2003, of $18.5 million compared to $17.9 million for the first quarter of fiscal
2003. Net loss for the quarter was $114,000, or $0.01 per diluted share,
compared to a net loss of $693,000, or $0.07 per diluted share, for the first
quarter of fiscal 2003.
"The Company is pleased to report a 3% increase in net sales in what has
historically been our weakest quarter," said E. Randall Chestnut, Chairman,
President and Chief Executive Officer. "In addition, our gross margin increased
from 20.2% of net sales in the first quarter of the prior year to 22.5% of net
sales as we began to see the benefits of global sourcing improvements. As a
result, net loss for the current year as compared to the first quarter of the
prior year decreased by 84% to be near break-even. During the first quarter, the
Company also substantially completed the closure of its Mexican manufacturing
facility, Burgundy Interamerica. The total cost of closure was in line with
estimates announced in December 2002."
The Company will host a teleconference today at 1:00 p.m. Central Daylight Time
to discuss the Company's results and answer appropriate questions from
shareholders. Interested investors may join the teleconference by dialing (888)
273-9891. Please refer to confirmation number 693648. The conference call 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
conference call may be found prior to the call on the investor relations portion
of the Company's website.
A telephone replay of the conference call will be available from 4:30 p.m.
Central Daylight Time on August 13, 2003 through 11:59 p.m. Central Daylight
Time on August 20, 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 693648.
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, Inc. 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 Private Securities
Litigation Reform Act of 1995. The words "believe," "expect," "anticipate,"
"intend," "will" and similar expressions are examples of words that identify
forward-looking statements. Forward-looking statements involve 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, 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 and the Company's dependence on licenses from third
parties.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
SELECTED FINANCIAL DATA
In thousands, except per share data and percentages
<Table>
<Caption>
Three Months Ended
June 29, June 30,
2003 2002
---------- ----------
Net sales $ 18,465 $ 17,928
Gross margin 4,161 3,619
Gross margin percentage 22.5% 20.2%
Income from operations 1,000 459
Net (loss) (114) (693)
Basic (loss) per share $ (0.01) $ (0.07)
Diluted (loss) per share $ (0.01) $ (0.07)
Weighted Average Shares Outstanding:
Basic 9,427 9,421
Diluted 9,427 9,421
</Table>
CONDENSED CONSOLIDATED BALANCE SHEETS
SELECTED FINANCIAL DATA
In thousands
<Table>
<Caption>
June 29, 2003 March 30, 2003
-------------- --------------
Accounts receivable, net of allowances $ 12,037 $ 15,776
Inventories, net of reserves 18,759 15,548
Total current assets 32,050 32,632
Goodwill, net 22,974 22,974
Total assets 57,006 57,926
Current maturities of long-term debt 3,015 3,014
Total current liabilities 12,331 11,766
Long-term debt 29,457 30,895
Shareholders' equity 15,218 15,265
Total liabilities and shareholders' equity 57,006 57,926
</Table>
Contact: Investor Relations Department
(225) 647-9146
or
Halliburton Investor Relations
(972) 458-8000