OREANDA-NEWS. Crown Crafts, Inc. today reported results for the fiscal 2016 fourth quarter and full year ended April 3, 2016.

“We are very proud of our strong and consistent performance, as net income and gross profit increased in fiscal 2016.  While we continue to manage our business in a conservative and responsible manner, we also work aggressively to maintain our strong market position by understanding our customers’ needs and offering a broad range of highly popular products.  Thanks to the hard work of our loyal employees and their dedication to our successful business strategy, we continue to generate long-term value for our stockholders,” said E. Randall Chestnut, Chairman, President and Chief Executive Officer.

Financial Results

Net income for the fourth quarter of fiscal 2016 was $2.2 million, or $0.22 per diluted share, on net sales of $25.1 million, compared with net income of $2.1 million, or $0.21 per diluted share, on net sales of $26.1 million for the fourth quarter of fiscal 2015.  Gross profit for the quarter was 28.2% of net sales, compared with 26.0% for the prior-year period. 

Net income for the full year of fiscal 2016 was $6.8 million, or $0.68 per diluted share, on net sales of $84.3 million, compared with net income of $5.7 million, or $0.57 per diluted share, on net sales of $86.0 million for fiscal 2015.  Gross profit for fiscal 2016 was 28.2% of net sales, compared with 27.4% for the prior-year period.

Net income for fiscal 2016 was favorably affected by $260,000, or $0.03 per diluted share, due to a change in the Company’s calculation of the state portion of its income tax provision.  Net income for fiscal 2015 was adversely impacted by $380,000 in legal fees ($237,000 net of income taxes) and an after-tax charge of $530,000 associated with a lawsuit that was settled in fiscal 2015.

Quarterly Cash Dividend

As announced on May 17, 2016, the Board of Directors declared a quarterly cash dividend on the Company’s Series A common stock of $0.08 per share, which will be paid on July 8, 2016 to stockholders of record at the close of business on June 17, 2016.  “Our business continues to generate strong cash flow, and we are pleased to be able to reward our stockholders for their ongoing support of Crown Crafts,” Chestnut said.

About Crown Crafts, Inc.

Crown Crafts, Inc. designs, markets and distributes infant, toddler and juvenile consumer products, including crib and toddler bedding; blankets; nursery accessories; room d?cor; burp cloths; bathing accessories; reusable and disposable bibs; and disposable placemats, floor mats, toilet seat covers and changing mats.  The Company’s operating subsidiaries consist of Crown Crafts Infant Products, Inc. in California and Hamco, Inc. in Louisiana.  Crown Crafts is among America’s largest producers of infant bedding, bibs and bath items.  The Company’s products include licensed and branded collections, as well as exclusive private label programs for certain of its customers.  The Company’s website is www.crowncrafts.com.


 
CROWN CRAFTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
SELECTED FINANCIAL DATA
In thousands, except percentages and per share data
 
    Quarter Ended   Fiscal Year Ended
    April 3,
2016		 March 29,
2015		   April 3,
2016		 March 29,
2015
Net sales   $   25,077   $   26,090     $   84,342   $   85,978  
Gross profit       7,074       6,794         23,813       23,550  
Gross profit percentage     28.2 %   26.0 %     28.2 %   27.4 %
Income from operations       3,585       3,489         10,788       9,220  
Income before income tax expense       3,604       3,470         10,744       9,160  
Income tax expense       1,410       1,331         3,915       3,442  
Net income       2,194       2,139         6,829       5,718  
Basic earnings per share   $   0.22   $   0.21     $   0.68   $   0.57  
Diluted earnings per share   $   0.22   $   0.21     $   0.68   $   0.57  
             
Weighted Average Shares Outstanding:            
  Basic     9,998     10,065       10,017     10,047  
  Diluted     10,022     10,100       10,038     10,080  
CONSOLIDATED BALANCE SHEETS
SELECTED FINANCIAL DATA
In thousands
 
      April 3, 2016     March 29, 2015  
Cash and cash equivalents   $   7,574   $   1,807  
Accounts receivable, net of allowances       20,796       22,370  
Inventories       14,785       15,468  
Total current assets       45,732       42,519  
Finite-lived intangible assets - net       3,882       4,507  
Goodwill       1,126       1,126  
Total assets   $   52,415   $   49,946  
       
Total current liabilities       12,185       10,374  
       
Shareholders’ equity       40,019       39,572  
Total liabilities and shareholders’ equity   $   52,415   $   49,946