0001437749-21-002375.txt : 20210210 0001437749-21-002375.hdr.sgml : 20210210 20210210064838 ACCESSION NUMBER: 0001437749-21-002375 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20210210 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20210210 DATE AS OF CHANGE: 20210210 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: DE FISCAL YEAR END: 0328 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07604 FILM NUMBER: 21609246 BUSINESS ADDRESS: STREET 1: 916 SOUTH BURNSIDE AVENUE CITY: GONZALES STATE: LA ZIP: 70737 BUSINESS PHONE: 225-647-9100 MAIL ADDRESS: STREET 1: PO BOX 1028 CITY: GONZALES STATE: LA ZIP: 70707 8-K 1 crws20210202_8k.htm FORM 8-K crws20210202_8k.htm

UNITED STATES

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): February 10, 2021

 

Crown Crafts, Inc.
(Exact name of registrant as specified in its charter)

 

Delaware 1-7604 58-0678148
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation)   Identification No.)

 

916 South Burnside Avenue, Gonzales, LA 70737  
(Address of principal executive offices) (Zip Code)  

                   

Registrant’s telephone number, including area code: (225) 647-9100 

 

 
(Former name or former address if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

CRWS

Nasdaq Capital Market

 

 

 

Item 2.02.              Results of Operations and Financial Condition.

 

On February 10, 2021, Crown Crafts, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter of fiscal year 2021, which ended December 27, 2020. A copy of that press release is attached hereto as Exhibit 99.1.

 

The information in this Item 2.02 and in Exhibit 99.1 attached hereto 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 Item 2.02 and in Exhibit 99.1 attached hereto shall not be incorporated by reference into any registration statement or document pursuant to the Securities Act of 1933, as amended.

 

 

Item 9.01.              Financial Statements and Exhibits.

 

(d)          Exhibits

 

 

99.1

Press Release dated February 10, 2021.

 

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: February 10, 2021    

 

/s/ Olivia W. Elliott

 

 

Olivia W. Elliott

 

 

President, Chief Operating Officer and

    Chief Financial Officer

 

 

 

Exhibit Index     

 

Exhibit No. Description of Exhibit
   

  99.1

Press Release dated February 10, 2021.

 

 
EX-99.1 2 ex_223933.htm EXHIBIT 99.1 ex_223933.htm

Exhibit 99.1

 

ex_223933img001.jpg

 

For immediate release February 10, 2021

 

Crown Crafts Reports Fiscal 2021 Third Quarter Results

 

 

Net sales increased 4.8% for the quarter and 8.0% year-to-date

 

Higher gross profit for the quarter and year-to-date periods

 

Company ended the quarter with a $3.7 million cash balance

 

Board declares a quarterly dividend of $0.08 per share

 

Gonzales, Louisiana – Crown Crafts, Inc. (NASDAQ-CM: CRWS) (the “Company”) today reported results for the third quarter of fiscal year 2021, which ended December 27, 2020.

 

“Demand for our products was strong in the third quarter and has remained so throughout the first nine months of fiscal 2021,” said E. Randall Chestnut, Chairman and Chief Executive Officer. “Our financial performance reflects the success of our strategies and the continued popularity of our product portfolio, which has remained aligned with consumer preferences even in these most challenging times,” Chestnut continued.

 

“In addition to our positive momentum in sales and earnings, our cash flows and balance sheet also remained strong in the third quarter,” said Olivia Elliott, President, Chief Operating Officer and Chief Financial Officer. “As we continue to operate from a position of financial strength, we will maintain our focus on generating cash flow, controlling costs and developing new products for the marketplace,” Elliott continued.

 

Financial Results

 

Net income for the third quarter of fiscal 2021 was $2.1 million, or $0.21 per diluted share, on net sales of $19.5 million, compared with net income of $2.1 million, or $0.21 per diluted share, on net sales of $18.6 million for the third quarter of fiscal 2020. Gross profit for the current year quarter increased to 31.6% of net sales, up from 31.3% of net sales in the prior-year quarter.

 

For the nine-month fiscal period, net income was $5.8 million, or $0.57 per diluted share, on net sales of $57.3 million, compared with net income of $5.0 million, or $0.49 per diluted share, on net sales of $53.1 million for the first nine months of fiscal 2020. Gross profit for the current year nine-month period was 31.9% of net sales, up from 30.6% of net sales in the prior-year period.

 

The recognition of certain tax credits favorably impacted the current year quarter and year-to-date periods by $74,000, or $0.01 per diluted share, and the prior year quarter and year-to-date periods by $274,000, or $0.03 per diluted share. Prior year net income for the year-to-date period was also impacted favorably by $292,000, or $0.03 per diluted share, due to the reversal of a portion of reserves for unrecognized tax benefits and the related interest and penalties that had been previously recorded.

 

 

 

Quarterly Cash Dividend

 

The Company also announced that its 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 April 2, 2021 to stockholders of record at the close of business on March 12, 2021. “Our Board remains confident in the ongoing strength of our Company, including its financial position, management team and business operations, to deliver consistently solid returns to shareholders for both the short term and the long term,” Chestnut said.

 

Conference Call

 

The Company will host a teleconference today at 1:00 p.m. Central Standard Time to discuss the Company’s results, during which interested individuals will be given the opportunity to ask appropriate questions. To join the teleconference, dial (844) 861-5504 and ask to be joined into the Crown Crafts, Inc. call. 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 one hour after the end of the call through 4:00 p.m. Central Daylight Time on May 11, 2021. To access the replay, dial (877) 344-7529 in the United States or (412) 317-0088 from international locations and refer to conference number 10151502.

 

About Crown Crafts, Inc.

 

Crown Crafts, Inc. designs, markets and distributes infant, toddler and juvenile consumer products. Founded in 1957, Crown Crafts is one of America’s largest producers of infant bedding, toddler bedding, bibs and developmental toys. The Company operates through its three wholly owned subsidiaries, NoJo Baby & Kids, Inc., Sassy Baby, Inc. and Carousel Designs, LLC, which market a variety of infant, toddler and juvenile products under Company-owned trademarks, as well as licensed collections and exclusive private label programs. Sales are made directly to retailers such as mass merchants, large chain stores and juvenile specialty stores, as well as directly to consumers through www.babybedding.com. For more information, visit the Company’s website at www.crowncrafts.com.

 

 

 

The foregoing 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, the impact of the COVID-19 pandemic on the Company’s business operations, 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 Company’s ability to successfully integrate newly acquired businesses, 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.

 

Contact:                 Olivia W. Elliott

President, Chief Operating Officer and Chief Financial Officer

(225) 647-9124

oelliott@crowncrafts.com

 

 

 

CROWN CRAFTS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

SELECTED FINANCIAL DATA

In thousands, except percentages and per share data

(Unaudited)

 

   

Three-Month Periods Ended

   

Nine-Month Periods Ended

 
   

December 27, 2020

   

December 29, 2019

   

December 27, 2020

   

December 29, 2019

 

Net sales

  $ 19,476     $ 18,587     $ 57,340     $ 53,089  

Gross profit

    6,153       5,821       18,270       16,241  

Gross profit percentage

    31.6 %     31.3 %     31.9 %     30.6 %

Income from operations

    2,733       2,405       7,668       5,897  

Income before income tax expense

    2,723       2,377       7,653       5,895  

Income tax expense

    582       282       1,810       942  

Net income

    2,141       2,095       5,843       4,953  

Basic earnings per share

  $ 0.21     $ 0.21     $ 0.57     $ 0.49  

Diluted earnings per share

  $ 0.21     $ 0.21     $ 0.57     $ 0.49  
                                 

Weighted Average Shares Outstanding:

                               

Basic

    10,208       10,166       10,195       10,143  

Diluted

    10,224       10,177       10,200       10,144  

 

CONSOLIDATED BALANCE SHEETS

SELECTED FINANCIAL DATA

In thousands

 

   

December 27, 2020

         
   

(Unaudited)

   

March 29, 2020

 

Cash and cash equivalents

  $ 3,658     $ 282  

Accounts receivable, net of allowances

    18,249       17,803  

Inventories

    22,842       17,732  

Total current assets

    46,941       37,041  

Operating lease right of use assets

    4,528       4,896  

Finite-lived intangible assets - net

    4,981       5,577  

Goodwill

    7,125       7,125  

Total assets

  $ 65,806     $ 57,173  
                 

Total current liabilities

    17,192       6,479  

Long-term debt

    524       2,578  

Operating lease liabilities, noncurrent

    4,824       4,959  
                 

Shareholders’ equity

    42,441       42,436  

Total liabilities and shareholders’ equity

  $ 65,806     $ 57,173  

 

 

 

 
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