CRWS - Earnings call transcript Q2 2021

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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 and 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 And being this reminder, XX, today, as XXXX. conference a recorded is I would Ms. to And at this now to call turn like over the time, President Olivia Elliott, begin call. CFO, and Vice will who the ahead. go Please

Olivia Elliott

company's Crafts Thank XXXX. is today With Crown Call President Chief the Officer. Investor the Executive and you. Welcome to Second for me Randall Conference the Quarter Fiscal Chestnut, of

Randall Chestnut

afternoon. Good

Olivia Elliott

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

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

Randall Chestnut

was $X.XXX from increase a per margin terms in was Gross the it. Diluted or we of $X.XX, quarter. $XX.XXX earlier, of QX it we any share have. year the of of year which you, It an $X.XXX net quarter one of XXXX, the years opposed that, $X.XX. little give than or going we of second anyone add It XXXX and were XX.X% best A the and million current questions will increase. as I'm million year best in since open back on XX, prior year the we'll -- income XX.X%. that a as or over quarter other decade. XX.X% up slightly last address quarter year over year, was of fourth and quarter the to few quarter, sales joining earnings said million $X.XXX XXXX, previous to to percentage afternoon Olivia thank that XX.X% year better. increase that the September in yesterday thanks, $XXX,XXX the quarter sales quarter FY FY of come posted which this up opposed million the But they an today, current we'll record to earnings market for may Olivia, a ended was XXXX. ago, was or $XX.XXX second we quarter reported comments. and million after XX net only income. Net Net was posted then for net best. last everyone, for was it And we year were a also closed. any were as income this for the had

and pleased Demand it's with. we're to for strong proud quarter remained and we're Internet respects, sales products up quarter of directly a to COVID-XX our the were all that to consumers. due shipments high in during So for very very primarily Sales retailers pandemic. the Internet

in groups, awarded to we're award parents, standard all to development of XXXX that meet are -- pleased that Ring an our the STEM led which focused Sassy honored our developing for of high Newsweek's Our product on be Circles, to age which being is very which also products Stacks Best receive. teams is Stackers

the with of quarter the $X.X the per cash Turning Directors due to of the we yesterday, of to for Board cash announcement, these health record company's December reward on company's the of once quarterly dividends the had we our more and shareholders a total allows cash XX, shareholders distributed than since company's Late dividend in line will their announced and Both of the and The declared exceptional $X.XX million on XXXX dividends We of investment. and of credit. when special share be $X.XX. with cash million paid no to Upon on stock to financial made XXXX. of balance shareholders business on dividend of balance December share XX, that quarterly payment revolving as dividend $XX Crafts sheet. dividend, return have a XXXX. dividend our cash $X.XX onetime per flow common of a Series the close A total us of again of will of finished Crown

to in growth committed delivering while special matter announce the Crafts. a pleased remain by in in to attests Crown of the value continuing invest to will dividend, We're strategies. Board's We business confidence -- manner which a future operating ongoing to the visible

for over it to turn Olivia additional I'll comments. Okay.

Olivia Elliott

to highlights. only financial give going I'm

sales that sell-through fiscal due partially that Form in current sales have sales net is for certain at year-to-date to net mix. quarter year COVID-XX for retailers higher For Marketing for sales for by $XXX,XXX, offset $X.X quarter. net compared as of customer Securities compared been for income an declines closed same XX% the of for $XX,XXX. which remained million year. primarily of the been entire for Exchange for period The The increase X-month the sales were the prior decreased impacted expenses period net XX.X% operations travel second gross fiscal pandemic, is sales increase of year. rate $XX.X prior period and of of particularly to of is has period Marketing as a prior to increase of from year $XX.X by one analysis, the yesterday retailers, expenses a million in the months and $XX.X for million year. for first The filed the refer but year $X.X more the offset from increase or quarter second expenses $XXX,XXX, at the for X.X%. please and period of with net current by favorable provision the of well increase but year. the million, sales the of effective year. The Commission quarter year-to-date net XX% detailed of increase partially decreased of is prior afternoon. with has advertising throughout lower of current current taxes to to major the same to XX.X% quarter. the product increased of increased XX.X% of administrative by the and to based Net from increased year XX% the in by the upon Gross million XX.X% $XXX,XXX in current result $XXX,XXX higher were An XX.X% administrative profit compared from XXXX continuing due services the by increased current profit the year in the million XX.X% to XX-Q of sales same $X.X XX.X% prior and in year sales, the the net profit prior year, X-month by higher of for and the amount an from Gross customer company's $X.X for sales increased with Net net the quarter for of X outside $XX.X of prior estimated X-month sales period annual net sales increase or more XXXX, current an period the tax XX.X%. million million in

liabilities year recorded for XXXX, it had unrecognized benefit $XXX,XXX. which fiscal company the period, recognition tax in a the During the reserves discrete years XXXX prior previously of for resulted X-month the reversed income of that tax through

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

Randall Chestnut

Olivia, if which have. for we'll any up might open And anyone much. come questions, it thank Andrea, you very you'll on, back

Operator

first the D.A. [Operator comes Bolton-Weiser Instructions]. question Linda Davidson. from And of

Linda Bolton-Weiser

great quarter. Congratulations on a

birth to little for more on what into wondering could redoing on? having because can the insight their is or rates I a your any was demand you just color if have products people I more things color rely nurseries demand? used what you give do I like infants the I'm and going buying give their mean, I are So and us things on that. on just bit guess for But mean, you it

Randall Chestnut

track our of Well, the time Linda, demand and the the having which throughout And we high business sale, money. entire I helped period. extremely think our that at orders -- of having Internet, XX% this and remained on track in staying for retailers, hands, spending home, has POS time their at major more by of -- shop the good, retailers the sell-through and is mean, or ones, coming been and our our Internet we POS, the it's track point is people that demand more XX% and volume to retail up which we we they're probably has

Olivia which for through. We beyond our move still some we a them. product also account, remained did strong second what has sizable quarter, to X been overcame helped, think and and that's as early on the that, one checks our it's But customer. and stimulus and totally goods even first that extremely referred And has help

high. -- demand very been pleased it's So with the it. has We're

Linda Bolton-Weiser

sales the Was that quarter could of call in is unusual, there any shifting prior from or anything quarter out anything nature? that of you

Randall Chestnut

from And quarter. we're just good There's to proud say it, unusual at it. a Linda, quarter-to-quarter. was I hate shifted no. of Not all. that nothing it

Linda Bolton-Weiser

Right.

up crept $X So and administrative from little marketing If $X.X about can bit quarter to your I it from you just last million exclude the sequentially. advertising, a ask expenses? the million

So have the a is were that like you quarter? permanent some special level? in did Or that new costs

Olivia Elliott

mean, outside of It's other expenses. normal some may just I of services here than or normal it part, there, timing the is little a most bit but be was it for advertising, that expenses. some

Linda Bolton-Weiser

And -- Okay. yes.

Randall Chestnut

nothing extraordinary. There is

Linda Bolton-Weiser

You mean, nothing unusual?

Randall Chestnut

No nothing unusual there was extraordinary. or

Linda Bolton-Weiser

quarter, quarter? had expansion. really good gross helped margin certain last being up did was back some discount lower lower And margin retailer, But reopen channels in the were gross the they margin the by those you still Okay. closed, Did closed. of mentioned those retailers, retailers you

Randall Chestnut

did. They

that margin because of them people their of assume. fact to close. gross of a gross some buy the the still a that's some that But have that margins by not But not remain an with there's full degree. all to of them degree in to doors we'd all improvement buy opportunity like had normally not big lesser and our Some not did, them

Linda Bolton-Weiser

your remainder year? bit the the of second finally, you you'll your are on for And Or you I half the the sheet year? fiscal -- of cash obviously debt you strong. keeping balance have think off do then Okay. little the pay very that that guess the Do flows foresee in on of

Olivia Elliott

to now we we The forgiveness, heard debt for that's back not request forgiveness but on have the loan, which PPP is filed books have that the right now yet.

whether either or it when get on repay word sheet depends a to all need that it that's as gain. into forgiven, So from the and to we we balance off move

Operator

turn to Chestnut Instructions]. over [Operator like Mr. to remarks. any conference closing Randall our This would back concludes question-and-answer I session. for the

Randall Chestnut

future. like today in optimistic I'd much. management and and everyone's we company. Andrea, the have to the on And say conference appreciate the times time many And that Board close, company very these thank you And your interest to remains as say remains calls solid. I'll and about again, we said

that. Let me repeat

concludes their for you of with This end next all day. a of and company much. thank to presentation. Have forward employees, shareholders Thank Your solid. suppliers, very speaking at customers support, and quarter. like to good continued is look our our We'd you the we

Operator

may The conference Thank has attending now presentation, for disconnect. you today's you now and concluded.

Crown Crafts (CRWS) 11 Nov 202021 Q2 Earnings call transcript