Exhibit 99.1
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| For Immediate Release |
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August 12, 2009 |
Crown Crafts, Inc. Reports Results for First Quarter of Fiscal Year 2010
Gonzales, Louisiana — Crown Crafts, Inc. (the “Company”) (NASDAQ-CM: CRWS) today reported net
income for the first quarter of fiscal year 2010, which ended June 28, 2009.
Net income for the quarter was $538,000, or $0.06 per diluted share, on net sales of $17.7 million,
compared to net income for the first quarter of fiscal year 2009 of $619,000, or $0.06 per diluted
share, on net sales of $19.8 million.
“We are very pleased to report positive results for the first quarter, which has traditionally been
one of the weakest quarters of each fiscal year,” commented E. Randall Chestnut, Chairman,
President and Chief Executive Officer of the Company. “However, we are disappointed with the
decreased sales volume in the current year as compared to the prior year. We have experienced a
reduced order flow and a shift in sales as retailers have addressed the effect of the economic downturn by reducing
their inventory levels and altering their buying patterns. We expect that our strong operating cash flow will keep us in an excellent
competitive position to manage through this difficult economic situation and subsequently benefit
during the recovery period. The Company’s EBITDA (earnings before interest, taxes, depreciation
and amortization) for the first quarter of fiscal year 2010 was $1.6 million, as compared to $1.8
million for the first quarter of the prior year,” 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 (800) 230-1074. Please refer to confirmation number 108976. The
teleconference 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 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 from 2:30 p.m. Central Daylight Time on
August 12, 2009 through 11:59 p.m. Central Daylight Time on August 19, 2009. 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 108976.
About Crown Crafts, Inc.
Crown Crafts, Inc. designs, markets and distributes infant and toddler consumer products, including
bedding, blankets, bibs, bath items and the recently-acquired portfolio of the mess protection
products of Neat Solutions. Its operating subsidiaries include Hamco, Inc. in Louisiana and Crown
Crafts Infant Products, Inc. in California. Crown Crafts is America’s largest distributor 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.
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.
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Contact:
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Investor Relations Department |
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(225) 647-9146 |
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or |
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Halliburton Investor Relations |
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(972) 458-8000 |
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CROWN CRAFTS, INC AND SUBSIDIARIES
NON-GAAP RECONCILIATION OF NET INCOME TO EBITDA
In thousands, except percentages
(Unaudited)
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Three Months Ended |
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June 28, 2009 |
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June 29, 2008 |
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Net income |
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$ |
538 |
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$ |
619 |
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Interest expense |
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196 |
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327 |
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Interest income |
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(7 |
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(54 |
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Income tax expense on continuing operations |
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340 |
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392 |
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Income tax benefit on discontinued operations |
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(11 |
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(3 |
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Depreciation |
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73 |
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88 |
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Amortization |
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434 |
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434 |
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EBITDA |
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1,563 |
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1,803 |
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Net Sales |
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17,735 |
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19,755 |
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EBITDA as a percentage of net sales |
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8.8 |
% |
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9.1 |
% |
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In addition to the Company’s presentation of its results of operations in conformity with
accounting principles generally accepted in the United States of America (“GAAP”), the Company is
also presenting EBITDA, which is a measure of the Company’s performance that is not determined in
accordance with GAAP. The Company uses EBITDA as an internal measure to monitor the Company’s
operating results and cash flow and to evaluate the performance of its businesses. The Company
believes that the presentation of EBITDA provides useful information to readers and is an important
indicator of the Company’s ability to generate cash sufficient to reduce debt, make strategic
investments, meet capital expenditures and working capital requirements and otherwise meet its
obligations as they become due. The items excluded from EBITDA are significant components in
understanding and assessing the Company’s financial performance. EBITDA is provided as
supplemental information and should be considered in addition to, and not as a substitute for, such
GAAP measures as net income, 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 EBITDA is not a measure determined in accordance with GAAP, companies are free to
calculate it in varying ways. Therefore, EBITDA, as presented by the Company, may not be
comparable to similarly titled measures of other companies.
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