Exhibit 99.1
For Immediate Release
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November 15, 2005 |
Crown Crafts, Inc. Reports Second Quarter of Fiscal Year 2006 Results
Gonzales, Louisiana — Crown Crafts, Inc. (the “Company”) (OTCBB: CRWS) reported net sales for
the second quarter of fiscal year 2006, which ended October 2, 2005, of $21.3 million as compared
to net sales for the second quarter of fiscal year 2005 of $23.0 million. Net income for the
quarter was $1.2 million, or $0.05 per diluted share, compared to net income of $844,000, or $0.04
per diluted share, for the second quarter of fiscal year 2005.
For the first six months of fiscal year 2006, the Company had net sales of $34.9 million, down from
$39.9 million in the first six months of fiscal year 2005. Net income for the first six months of
the current year was $883,000, or $0.04 per diluted share, compared to net income of $741,000, or
$0.03 per diluted share, in the prior year.
The decrease in sales for the second quarter of fiscal year 2006 as compared to the same period in
the prior year is due primarily to shipments of several new product placements to key customers in
the second quarter of fiscal year 2005 which were not repeated at the same levels in fiscal year
2006, an erosion in prices due to changing shipping points on a program from FOB United States to
FOB Asia and a continuing decrease in Pillow Buddies® sales.
The decrease in sales for the first six months of fiscal year 2006 as compared to the first six
months of fiscal year 2005 is a result of significant customers reducing their on-hand inventory
levels and thereby reducing replenishment orders, customer-driven shifting of sales between
quarters, an erosion of prices due to the shipping change mentioned previously along with the
continued price erosion due to the elimination of quota on goods from China effective January 1,
2005, new product placements being shipped in the prior year at levels that were not repeated in
the current year, the loss of a bath program at a significant customer and a continuing decrease in
Pillow Buddies® sales.
“Although the Company has experienced a decline in net sales, we are pleased that our sourcing
efforts have paid off with a 140 basis point improvement in year over year gross margin,” commented
E. Randall Chestnut, Chairman, President and Chief Executive Officer of the Company. “In addition,
we continue to maintain a positive cash position and to strengthen our financial position,” Mr.
Chestnut continued.
The Company will host a teleconference today at 1:00 p.m. Central Standard Time to discuss the
Company’s results and answer appropriate questions from stockholders. Interested investors may
join the teleconference by dialing (877) 209-0397. Please refer to confirmation number 801515. 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
found prior to the call on the investor relations portion of the Company’s website.
A telephone replay of the teleconference will be available from 3:00 p.m. Central Standard Time on
November 15, 2005 through 11:59 p.m. Central Standard Time on November 21, 2005. 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 801515.
Crown Crafts, Inc. designs, markets and distributes infant and juvenile consumer products,
including bedding, blankets, bibs, bath items, diaper bags and accessories, and luxury hand-woven
home décor. Its subsidiaries include Hamco, Inc. in Louisiana, Crown Crafts Infant Products, Inc.
in California and Churchill Weavers, Inc. in Kentucky. 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.
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,”