Crown Crafts, Inc. Reports Results for Fourth Quarter and Full Fiscal Year 2010

GONZALES, La., June 28, 2010 (GLOBE NEWSWIRE) --

  --  Strong fourth quarter leads Crown Crafts to a banner year
  --  Fourth quarter net sales increase by 6% to finish at $86.1 million for
      full fiscal 2010
  --  Fourth quarter net income, excluding the goodwill impairment charge in
      fiscal 2009, increases by 15% from $2.0 million in fiscal 2009 to $2.3
      million in fiscal 2010
  --  Fiscal 2010 Adjusted EBITDA increases to $10.5 million, the highest
      amount since 1998

Crown Crafts, Inc. (the "Company") (Nasdaq:CRWS) today reported its results from operations for the fourth quarter and full fiscal year 2010, which ended March 28, 2010.

Results for Fourth Quarter and Full Fiscal Year 2010

The Company's net income for the fourth quarter of the fiscal year ended March 28, 2010 was $2.3 million, or $0.25 per diluted share, on net sales of $26.0 million compared to net income of $2.0 million, or $0.21 per diluted share, on net sales of $24.6 million in the fourth quarter of fiscal year 2009 (after excluding a $12.6 million charge, net of tax, related to an impairment to goodwill). Including the goodwill impairment charge, the Company reported a net loss in the fourth quarter of fiscal year 2009 of $10.6 million, or $1.15 per diluted share.

The Company's net income for fiscal 2010 was $4.8 million, or $0.52 per diluted share, on net sales of $86.1 million compared to net income for fiscal 2009 of $4.5 million, or $0.47 per diluted share, on net sales of $87.4 million (after excluding a $21.6 million charge, net of tax, related to an impairment to goodwill). Including the goodwill impairment charge, the Company reported a net loss for fiscal 2009 of $17.1 million, or $1.83 per diluted share.

"We are pleased with the strong finish that our fourth quarter 2010 earnings provided for our full year results," commented E. Randall Chestnut, Chairman, President and Chief Executive Officer of the Company. "Early in the year, we were challenged by economic conditions that impacted the retail sale of our products. As the year progressed, we made appropriate adjustments to our cost structure, which aided us in our rebound. Our consistent cash flow has enabled us to reduce our debt to $5.2 million at year end, of which $3.8 million is non-interest bearing. Our results have helped to raise our shareholders' equity by 23% in a difficult retail year. Finally, our Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization and impairment charges) for 2010 was $10.5 million, or 12.2% of net sales," Mr. Chestnut continued.

Conference Call

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. Interested individuals may join the teleconference by dialing (877) 317-6789. Please refer to conference number 441530. The teleconference can also be accessed in listen-only mode by visiting the Company's website at The financial information to be discussed during the teleconference may be accessed prior to the call on the investor relations portion of the Company's website.

A telephone replay of the teleconference will be available one hour after the end of the call on June 28, 2010 through 8:00 a.m. Central Daylight Time on July 6, 2010. To access the replay, dial (877) 344-7529 in the United States or (412) 317-0088 from international locations and refer to conference number 441530.

About Crown Crafts, Inc.

Crown Crafts, Inc. designs, markets and distributes infant, toddler and juvenile consumer products, including crib and toddler bedding and blankets; nursery and bath accessories; reusable and disposable bibs and floor mats; burp cloths; room decor; and disposable placemats, toilet seat covers and changing mats. The Company's operating subsidiaries include Hamco, Inc. in Louisiana and Crown Crafts Infant Products, Inc. in California. Crown Crafts is America's largest producer 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

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Securities Act of 1933, the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such statements are based upon management's current expectations, projections, estimates and assumptions. Words such as "expects," "believes," "anticipates" and variations of such words and similar expressions identify such forward-looking statements. Forward-looking statements involve known and 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, including changes in interest rates, in the overall level of consumer spending and in the price of oil, cotton and other raw materials used in the Company's products, changing competition, changes in the retail environment, the level and pricing of future orders from the Company's customers, the extent to which the Company's business is concentrated in a small number of customers, the Company's dependence upon third-party suppliers, including some located in foreign countries, customer acceptance of both new designs and newly-introduced product lines, actions of competitors that may impact the Company's business, disruptions to transportation systems or shipping lanes used by the Company or its suppliers, and the Company's dependence upon licenses from third parties. Reference is also made to the Company's periodic filings with the Securities and Exchange Commission for additional factors that may impact the Company's results of operations and financial condition. The Company does not undertake to update the forward-looking statements contained herein to conform to actual results or changes in our expectations, whether as a result of new information, future events or otherwise.

                         CROWN CRAFTS, INC AND SUBSIDIARIES
                               SELECTED FINANCIAL DATA
                         In thousands, except per share data

                                         Three Months Ended    Twelve Months Ended
                                        --------------------  --------------------

                                        March 28,  March 29,  March 28,  March 29,
                                           2010       2009       2010       2009
                                        ---------  ---------  ---------  ---------
  Net sales                              $ 25,972   $ 24,568   $ 86,066   $ 87,398
  Gross profit                              7,108      6,020     20,229     18,910
  Gross profit percentage                   27.4%      24.5%      23.5%      21.6%
  Goodwill impairment charge                   --     13,884         --     22,884
  Income (loss) from operations             4,264   (10,722)      8,760   (14,928)
  Income (loss) from continuing
   operations before income taxes           4,120   (10,890)      8,005   (15,909)
  Income tax expense                        1,694      (399)      3,103      1,133
  Income (loss) from continuing
   operations after income taxes            2,426   (10,491)      4,902   (17,042)
  Loss from discontinued operations
   --- net of income taxes                  (100)       (71)      (122)       (44)
  Net income (loss)                         2,326   (10,562)      4,780   (17,086)
  Basic earnings (loss) per share          $ 0.25   $ (1.15)     $ 0.52   $ (1.83)
  Diluted earnings (loss) per share        $ 0.25   $ (1.15)     $ 0.52   $ (1.83)

  Weighted Average Shares Outstanding:
    Basic                                   9,215      9,208      9,193      9,317
    Diluted                                 9,321      9,208      9,295      9,317

                      In thousands

                                  March 28,  March 29,
                                     2010       2009
                                  ---------  ---------
  Cash and cash equivalents            $ 75   $ 15,249
  Accounts receivable, net of
   allowances                        18,021     18,954
  Inventories                        10,453     11,751
  Total current assets               31,474     48,495
  Intangible assets, net              6,493      5,515
  Total assets                     $ 41,392   $ 56,527

  Current maturities of
   long-term debt                   $ 1,952    $ 1,667
  Total current liabilities          10,657     10,548
  Long-term debt                      3,238     23,568

  Shareholders' equity               27,497     22,411
  Total liabilities and
   shareholders' equity            $ 41,392   $ 56,527

                         CROWN CRAFTS, INC AND SUBSIDIARIES
                         In thousands, except percentages

                                      Three Months Ended     Twelve Months Ended
                                     ---------------------  ---------------------

                                      March     March 29,    March     March 29,
                                     28, 2010     2009      28, 2010     2009
                                     --------  -----------  --------  -----------

  Net income (loss)                   $ 2,326   $ (10,562)   $ 4,780   $ (17,086)
  Interest expense                        111          189       692        1,089
  Interest income                         (3)         (16)      (17)        (139)
  Income tax expense on continuing
   operations                           1,694        (399)     3,103        1,133
  Income tax benefit on
   discontinued operations               (58)         (46)      (69)         (31)
  Depreciation                             66           60       286          285
  Amortization                            279          434     1,544        1,745
  Impairment charge - goodwill             --       13,884        --       22,884
  Impairment charge - assets held
   for sale                               154           94       154           94
                                     --------  -----------  --------  -----------

    Adjusted EBITDA                     4,569        3,638    10,473        9,974
                                     --------  -----------  --------  -----------

  Net Sales                            25,972       24,568    86,066       87,398
                                     --------  -----------  --------  -----------

    Adjusted EBITDA as a percentage
     of net sales                       17.6%        14.8%     12.2%        11.4%
                                     ========  ===========  ========  ===========

In addition to the Company's disclosure of its financial position and results of operations in conformity with accounting principles generally accepted in the United States (GAAP), the Company has also disclosed certain measures of its performance which are not determined in accordance with GAAP. These non-GAAP financial measures include Adjusted EBITDA and the Company's discussion of its fiscal 2009 results excluding the goodwill impairment charge. The Company uses these non-GAAP financial measures internally to monitor the Company's operating results and cash flow and to evaluate the performance of its businesses. The Company believes that the non-GAAP financial measures are useful in that they are important indicators of the Company's ability to generate cash sufficient to reduce debt, make strategic acquisitions and investments in capital expenditures, pay dividends, meet working capital requirements and otherwise meet its obligations as they become due. The items excluded to calculate non-GAAP financial measures are significant components in understanding and assessing the Company's financial performance. The non-GAAP financial measures are provided as supplemental information and should be considered in addition to, and not as a substitute for, such GAAP measures as net income or loss, cash flow provided by or used in operating, investing or financing activities, and other measures of financial performance and liquidity reported in accordance with GAAP. Because non-GAAP financial measures, by definition, are not determined in accordance with GAAP, companies are free to calculate them in varying ways. Therefore, the non-GAAP financial measures presented by the Company may not be comparable to similarly titled measures of other companies.

CONTACT:  Crown Crafts, Inc.
          Investor Relations Dept.
          (225) 647-9146

          Halliburton Investor Relations
          (972) 458-8000