In the company’s news yesterday,
Crown Crafts, Inc. announced its results for the 2nd quarter of fiscal year 2009. For the 2nd quarter of FY 09, net income came in at $1,035,000 on net sales of $23.8 million. By comparison, for the 2nd quarter of FY ‘08, net income and net sales were $541,000 and $17.1 million respectively.
Asked to comment on the results, E. Randall Chestnut, Chairman, President and Chief Executive Officer said, “We are very pleased that we have nearly doubled our bottom line,” Chestnut also noted that Crown Craft’s “gross profit for the quarter has increased in amount, although our gross profit percentage has declined year-over-year.”
The decrease in the gross profit percentage, according to Chestnut, was because of amortized costs with the 3rd quarter FY ‘08 purchase of the Springs Global baby products line. Operating costs increased last quarter because Crown Crafts established a Foreign Representative Office in China. Costs also increased because of price increases imposed on the company by its Asian suppliers.
However, Chestnut stated, “Despite these added costs, we have increased our overall profitability by increasing our top-line sales and by holding the line on our marketing and administrative costs, which were nearly unchanged from the prior year. Our EBITDA (earnings before interest and taxes plus depreciation and amortization) more than doubled to $2.5 million in the current year, up from $1.1 million in the prior year.”
Crown Crafts additionally confirmed its anticipated results for FY ‘09. Crown Crafts forecasts net revenues in the range of $90 million to $93 million. The Company’s EBITDA should, according to the company, fall in the range of $10.2 million to $10.8 million. The results would produce earnings per diluted share in the range of $0.41 to $0.46.
About QualityStocks
QualityStocks, based in Scottsdale, Arizona is a free service that collects data from hundreds Small-Cap and Micro-Cap online Investment Newsletters into one Free Daily Newsletter Report. QualityStocks is dedicated to assisting emerging public companies with their advertising efforts and now has over 500,000+ subscribers that receive The Daily Stock Newsletters.
To sign up for “The QualityStocks Daily Newsletter” please visit www.QualityStocks.net
Please see disclaimer on QualityStocks website: http://Disclaimer.QualityStocks.net
Forward-Looking Statement:
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.
