CRWS - Earnings call transcript Q2 2019

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Operator

Hello, ladies and gentlemen, and welcome to the Crown Crafts, Inc. Investors Conference Call.

Your host for today's call is Mr. Randall Chestnut, Chairman, President, Chief Executive Officer. [Operator Instructions]. call, prior or Crafts, written this not part, Inc. of without permitted authorization reproduction in in whole is Any from Crown

November CFO, conference call As being to go Ms. time, conference ahead. today's Vice over begin like X, President the Elliott, today, Please and I'd the a this will XXXX. turn call to Olivia At who reminder, recorded is call.

Olivia Elliott

With Investor me afternoon, and is Executive of welcome Conference Crafts Call Good Crown quarter Chief for you. the Thank fiscal Chestnut, the XXXX. today Randall and Company's second the to President Officer.

Randall Chestnut

Good afternoon.

Olivia Elliott

will this www.crowncrafts.com. A XXXX. available telephone XX, p.m. and days replay at X will accessed for of through Time of Central call Also, end a after visiting XX the X:XX be call our be hour website call can the web November available by replay on be the of

of common the any assurances the each as to stock, dividends the future the Randall. call frequency declaration disclaims like begin, made conference I in expressly any company's language amount over and contained dividend. turn comments company today's forward-looking call statements I paying we of the recently the language made remind the announced on annualized Board the related of regard of that to company's Before press and the same cautionary its dividend would listeners that yield discretion call. dividend, to will remind we in at Also, regarding today's That conference company's history applies to of is of the to in now to and listeners are release. Directors, in comments the

Randall Chestnut

the for everyone afternoon participating. again you thank and very and thanks Olivia, on call to much, good

was $XX,XXX,XXX, this quarter may detail. of then our who financial as And or for opened earnings Net some year. quarter of or in information, up the $XX,XXX,XXX same solid of quarter after $XXX,XXX the very September that, versus $X,XXX,XXX in to quarter Gross year, to or today, to last $X.XX were Diluted FY I opposed we'll $X.XX the the have year of last had an of opposed $X,XXX,XXX this the anyone year. as per it XX we a net XXX.X%. income And second year Any XX.X% quarter the from will in give we're last We're up share pleased quarter margin sales year. highlights. $X,XXX,XXX quarter, questions. open quarter increase Before was same the which an more opposed sales, extremely it give or proud increase XX.X% it, of and the current a same way will was quarter same increase at for as of Net XX% year. ended performance. market quarter last some the earnings on XXXX, the year the we for our for released you XX.X%. look were sales last of that Olivia

possibly another met countries, distributors product. show distributors, with other J mainly with Us, as on and Toys past K during to XX product from have to XX Toys to presented we are at and were J beginning during the would to "R" in some attended that expand has retailers. show of we the show, Us, showing filtered our XX Crown Sassy made and sales Germany. Infant quarter, visited product that been we being we that brand see Babies"R"Us chose At the Products with Sassy to Because Sassy, international the current Also our encouraged a loss strong and of K challenging been customer, conditions, as the we've unusually the everyone months, As "R" navigating knows, retail of We're Hamco call XX the we're largest to second the we and Cologne, Crafts XX representing at such countries. presence, the Babies"R"Us.

number of at international show. retailers. was our with international This as met first also U.S. The presence. We and this we a was to began showing show very expand our successful,

shareholders business you. share. balance to This close and again, finished declared per On offer shareholders. that, confidence annualized very price we as December cash yield the Series on to so the a A the balance quarter of payment our our of revolver availability board's the of per side, value cash company's reflect with on back sheet million, stock in the quarterly dividend the Board yesterday's $X.X of will common XX, business announced closing dividend of company's we to Today, X.X%, This XXXX. and commitment that January represents the ongoing turn of standpoint. dividend With to an revolver to I'll of Olivia. from provide $X.XX record XXXX, Once Thank pleased X, paid healthy on be share. and the we're based we're Directors that it a

Olivia Elliott

going to financial highlights. only I'm give

quarter the Carousel, were more For $XX.X company's Exchange XXXX, of that Sassy, of to second which XX-Q and were million. of to fiscal from The year. $X.X up million sales or of $X.X year sales which were up and prior $X.X this of to in the Net of growth Securities amounted Year-to-date, year the sales "R" million, in quarter during in quarter. spite Sassy $X.X offset company for sales with $XXX,XXX compared million to from increased quarter Babies"R"Us, $X.X These the year increase $X.X morning. quarter loss compared in Commission Carousel refer $XX.X $XX.X the and current $X.X prior sales year-to-date in by million Form XX.X% of of period. please were from resulted Toys the which $X Us, the sales the quarter. the $X.X the organic sales year sales were sales net million million million experienced $XX prior Us, million sales acquisitions "R" in had sales The prior the million million elimination sales details, the the which of Carousel the year, million in Year-to-date, filed Babies"R"Us, due period. to the prior of is or had prior primarily to also XX.X% Toys sales of in in sales to in $X.X million million represented second

shifted Tax for the to sales During the company Toys the sales made expenses by the levels quarter, as net customers, year. same profit by year Compton, an in the California. XX.X% The Year-to-date, estimated based period included became provision for not annual which current amount first to $X.X fees of current other Babies"R"Us in by they with they costs the Toys prior in net net associated and the quarter in credit in-line year to of $XXX,XXX acquisition costs, of was rate income associated in for $X.X in with periods current a due increased the year year-to-date. year Carousel the have prior costs, million, actually an quarter prior deep the would from taxes to for had increase an the XX.X%. from first $XXX,XXX quarter and Us, "R" of Carousel discounts a were during entire increase year. XXXX prior quarter provision million with included federal Sassy to year, XXXX. $XX,XXX sales rate most year-to-date sales compared the are gross Marketing year-to-date in that year net been of effective to primarily included The tax from XX% effective XX%, acquired and the the quarter. the of year from January Babies"R"Us. $XXX,XXX upon from company's major XX.X% the for prior sales increases Grand inventory yet administrative of million, of facility XX.X% X, higher current increased December period. Contributing to prior and to for as distribution income legislation in included ordinarily of period. which the coverage competitor charges the the current increase remaining merchandise. year-to-date continuing on year-to-date associated acquisition liquidation the quarter as conducted sales transferring profit included increased operations $XXX,XXX The $X.X Us, the sales in Gross XX% for $XXX,XXX The is "R" Michigan of period in the Rapids, corporate to current also with tax lower enacted $XXX,XXX

XX.XX% rate legislation the for the prior the for year in the has provision fiscal effective acted, XXXX X, of was Because income estimated year an of the not in, XX%. federal been As phased corporate lower from company's XXXX. ended upon the for XXXX, continuing operations fiscal was tax on rate statutory blended a company's year April taxes based income tax resulting rate yet

tax taxes period income period for XX.X% tax tax benefit. same combined of of same return per stock the effective of million current diluted the XX% of quarter first tax resulted $X.X provision XXXX. recorded for $X.XX will period discrete X fiscal year. year-to-date diluted income entries the and XXXX to second to fiscal and of arising and fiscal share from or benefits second compared now the or share share and discrete and the diluted from $XXX,XXX for for The $X.X net $X.X charges period, income operations, fiscal during charges with was Net the for income quarter XXXX associated per reserves period share per fiscal or diluted second with million these Randall. an in months the income nonvested continuing net of XXXX, $X.XX $X.XX quarter compared During or in rate unrecognized per recorded I XXXX. prior in overall the million call excess year-to-date benefits, also the of the both company to the for XXXX vesting $X.XX of for income Net was or in the

Randall Chestnut

have. And back Jamie, you come that's you'll they would if and has questions much. call any thank anyone on to Olivia, very if like the see on

Operator

we Instructions]. Levy, [Operator And from Investor. have Charles Private a do question

Charles Levy

difficulties much I was situation from you terms the Toys Us of go pretty in the comparisons forward? we "R" are wondering, through as

Randall Chestnut

Mostly is loss, replaced still we a replaced we're but some regained because we we all. haven't yes, and Charles, was the that haven't it huge had a candidly, have the It portion a - still But all answer - was of that there's substantial huge business. account. mixed we steam a answer.

replace We're of little, by results. happy to it. places performance the find that very we're very we're to picking But there. XXX%, all the that trying customer and with still the the it. pleased we're yes, still of steam very we're - pleased little And up And have we're had, we out with So we with some with quarter, being Okay? quarter.

Charles Levy

Yes, see I could that.

Randall Chestnut

But par yet. we aren't to quite back

Charles Levy

that. again. I I'm Say missed sorry,

Randall Chestnut

is number said of to I aren't Toys back Us we All sales quite the with pre-Babies"R"Us, bankruptcy/liquidation. before "R" par

Charles Levy

that Sassy, you as and it Carousel on from increases stood. you the pretty where out the I'm broke clear made mentioned glad you glad I'm it also. Well, Yes. to call

Operator

to remarks. Instructions]. time, over I'd call back at conference any And I'm this no showing questions. turn [Operator the for like closing additional

Randall Chestnut

Infant of clearly to NoJo Jamie, we will and press release we the and We're and very the earlier of Products, better and Crafts & you continued We that to our more thank of believe breadth - announced the Sassy In Baby interest Baby, renamed Crown are on our be consumers and Crafts. retail in renamed. the Inc. the Kids that our much, today. process the portfolio, Crown your these partners. we renamed brands Hamco, appreciate be changes call value thanks of in two being was rebranded everyone Inc. today, subsidiaries that company's issued will conveyed Inc. reflect formally

few for that very our new In We'd launching and website, new we're Crown which the FY will have we a employees, for you much. new with QX support, in corporate you 'XX be we the addition, forward next all very shareholders next customers was their proud and thank logo, one weeks. launched to and Crafts the pleased active Thank very a talking like to look of. quarter. we've suppliers, continued quarter solid we're and of and a or - company,

Operator

presentation. now Ladies the thank conference for attending you gentlemen, We has do and today's concluded.

lines. your disconnect now may You

Crown Crafts (CRWS) 8 Nov 182019 Q2 Earnings call transcript