-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GvDs8bQl9jtLOKUpRUBaJFGVx6bfa5Hb+iwWTaig4Q3ch/7wIzn948bBSnNwHjm9 mpyiI59PELuHReOLMr1LCw== 0000950134-03-014918.txt : 20031112 0000950134-03-014918.hdr.sgml : 20031111 20031112062219 ACCESSION NUMBER: 0000950134-03-014918 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031112 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031112 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CROWN CRAFTS INC CENTRAL INDEX KEY: 0000025895 STANDARD INDUSTRIAL CLASSIFICATION: BROADWOVEN FABRIC MILLS, COTTON [2211] IRS NUMBER: 580678148 STATE OF INCORPORATION: GA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07604 FILM NUMBER: 03990275 BUSINESS ADDRESS: STREET 1: 916 SOUTH BURNSIDE AVENUE CITY: GONZALES STATE: LA ZIP: 70737 BUSINESS PHONE: 225-647-9100 8-K 1 d10499e8vk.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): November 12, 2003 Crown Crafts, Inc. ------------------ (Exact name of registrant as specified in its charter) Delaware 1-7604 58-0678148 -------- ------ ---------- (State or other jurisdiction of (Commission File Number) IRS Employer incorporation) Identification Number) 916 South Burnside Avenue, Gonzales, LA 70737 - --------------------------------------- ----- (Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (225) 647-9100 Item 7. Financial Statements and Exhibits. (c) Exhibits 99.1 Press Release dated November 12, 2003. Item 12. Results of Operations and Financial Conditions. The information in this Current Report is being furnished and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of such section. The information in this Current Report shall not be incorporated by reference into any registration statement or document pursuant to the Securities Act of 1933, as amended. On November 12, 2003, Crown Crafts, Inc. issued a press release attached hereto as Exhibit 99.1 announcing its financial results for the second quarter of fiscal year 2004, which ended September 28, 2003. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CROWN CRAFTS, INC. Date: November 12, 2003 /s/ Amy Vidrine Samson ---------------------- ---------------------------------------- Amy Vidrine Samson Vice President, Chief Financial Officer Chief Accounting Officer 1 Exhibit Index
Exhibit No. Exhibit Description ----------- ------------------- 99.1 Press Release dated November 12, 2003
2 EX-99.1 3 d10499exv99w1.txt PRESS RELEASE (CROWN CRAFTS LOGO) NOVEMBER 12, 2003 CROWN CRAFTS, INC. REPORTS SECOND QUARTER 2004 RESULTS; PROFITABLE OPERATIONS ON SHIFTING SALES PATTERNS Gonzales, Louisiana - Crown Crafts, Inc. (OTCBB: CRWS) (the "Company") today reported net sales for the second quarter of fiscal 2004, which ended September 28, 2003, of $22.0 million compared to $28.4 million for the second quarter of fiscal 2003. Net income for the quarter was $924,000, or $0.04 per diluted share, compared to net income of $2.1 million, or $0.09 per diluted share, for the second quarter of fiscal 2003. For the first six months of fiscal 2004, the Company had net sales of $40.5 million, down from $46.3 million in the first six months of fiscal 2003. Net income for the first six months of the current year was $810,000, or $0.04 per diluted share, compared to net income of $1.4 million, or $0.06 per diluted share, in the prior year. The Company attributed the decline in sales to several factors relating primarily to changes in business practices by both customers and licensors and the seasonality of one of the Company's products. Buying patterns of several of the Company's customers were altered during the second quarter due to the continuing sluggish economy and the shifting of business strategies, which caused some of the Company's major customers to reduce their on-hand inventory levels. In addition, during the second quarter of fiscal 2003, the Company shipped several new product placements to key customers, which were not repeated in the current fiscal year. These initial shipments to stock the stores and circular advertising created higher sales for these new placements in fiscal 2003. The Company's Pillow Buddies(R) business, which was very strong in fiscal 2003, has been comparatively weaker this year because seasonal retail dollars have not been allocated to the product for shipment in the second quarter. This business continues to be seasonal, and increased competition for character licenses has driven royalty commitments higher than management is comfortable guaranteeing. With the higher guarantees, the Company has declined or chosen not to renew several licenses which could have subjected the Company to royalty guarantee shortfalls in the future. Also affecting sales for the second quarter was a marketing decision by Disney Consumer Products to take one of its brands direct to retail beginning in early 2004. In anticipation of this decision, retailers currently offering this brand began to reduce their purchase volumes in the second quarter. The Company is pleased that it has been selected as the future supplier of this direct to retail program. In addition, we have secured our position with the retailers affected by this change in marketing direction. "While we are not satisfied with the lower net sales for the fiscal second quarter, we are pleased to report a net income of 4.2% of net sales. Our SG&A expense only increased from 12.2% of net sales last year to 12.8% of net sales for the second quarter this year, on 22.5% less sales," said E. Randall Chestnut, Chairman, President and Chief Executive Officer of the Company. Page 1 of 3 "The direct to retail decision made by Disney Consumer Products has affected our immediate marketing direction, but with quick action by our management team, we feel we have secured our position for the future," Mr. Chestnut continued. "With the successful and beneficial reincorporation of the Company announced earlier and this challenging quarter behind us, management remains focused on the future success of the Company." 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 shareholders. Interested investors may join the teleconference by dialing (888) 273-9887. Please refer to confirmation number 703657. The conference call 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 conference call may be found prior to the call on the investor relations portion of the Company's website. A telephone replay of the conference call will be available from 3:30 p.m. Central Standard Time on November 12, 2003 through 11:59 p.m. Central Daylight Time on November 19, 2003. 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 703657. Crown Crafts, Inc. designs, markets and distributes infant and juvenile consumer products, including bedding, blankets, bibs, bath and accessories and luxury hand-woven home decor. 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 and infant 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. Statements contained in this release that are not statements of historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "intend," "will" and similar expressions are examples of words that identify forward-looking statements. Forward-looking statements involve 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, changing competition, the level and pricing of future orders from the Company's customers, the Company's dependence on third-party suppliers, including some located in foreign countries with unstable political situations, the Company's ability to successfully implement new information technologies and the Company's dependence on licenses from third parties. Page 2 of 3 CONSOLIDATED STATEMENTS OF OPERATIONS SELECTED FINANCIAL DATA In thousands, except per share data
Three Months Ended Six Months Ended September 28, September 29, September 28, September 29, 2003 2002 2003 2002 ------------- ------------- ------------- ------------- Net sales $ 22,001 $ 28,399 $ 40,466 $ 46,326 Net income 924 2,079 810 1,386 Basic income per share 0.10 0.22 0.09 0.15 Diluted income per share 0.04 0.09 0.04 0.06 Weighted Average Shares Outstanding: Basic 9,505 9,421 9,466 9,421 Diluted 22,872 22,715 22,562 22,007
CONSOLIDATED BALANCE SHEETS SELECTED FINANCIAL DATA In thousands
September 28, March 30, 2003 2003 --------------- --------------- Total current assets $ 32,600 $ 32,632 Total assets 57,490 57,926 Current maturities of long-term debt 3,015 3,014 Total current liabilities 10,481 11,766 Long-term debt 30,867 30,895 Total non-current liabilities 30,867 30,895 Shareholders' equity 16,142 15,265 Total liabilities and shareholders' equity 57,490 57,926
Contact: Investor Relations Department (225) 647-9146 or Halliburton Investor Relations (972) 458-8000 Page 3 of 3 -----END PRIVACY-ENHANCED MESSAGE-----