Crown Crafts Reports Fiscal 2022 Second Quarter Results – GlobeNewswire

Net sales excluding Carousel Designs up 9.8% year-to-dateBoard declares a special dividend of $0.35 per share in addition to a quarterly dividend of $0.08 per share

GONZALES, La., Nov. 10, 2021 (GLOBE NEWSWIRE) — Crown Crafts, Inc. (NASDAQ-CM: CRWS) (the “Company”) today re…….

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  • Net sales excluding Carousel Designs up 9.8% year-to-date
  • Board declares a special dividend of $0.35 per share in addition to a quarterly dividend of $0.08 per share

GONZALES, La., Nov. 10, 2021 (GLOBE NEWSWIRE) — Crown Crafts, Inc. (NASDAQ-CM: CRWS) (the “Company”) today reported results for the second quarter of fiscal year 2022, which ended September 26, 2021.

“We are extremely proud of our team’s accomplishments through the first half of this fiscal year,” said E. Randall Chestnut, Chairman and Chief Executive Officer. “Despite labor shortages, shipment delays and rising costs, along with the inconvenience of having to close our main office for several weeks because of damage from Hurricane Ida, management has done an outstanding job working through these challenges to produce solid results.”

“Our continuing operations have remained strong, and we have taken several actions to strengthen our business for both the short and the long term,” said Olivia Elliott, President and Chief Operating Officer. “For example, we implemented a new system to streamline our warehouse operations in Compton, California, and we are constantly working to control expenses and pass along increasing costs whenever we can.”

Financial Results

Net income for the second quarter of fiscal 2022 was $2.4 million, or $0.24 per diluted share, on net sales of $20.2 million, compared with net income of $2.5 million, or $0.24 per diluted share, on net sales of $21.7 million for the second quarter of fiscal 2021. Gross profit for the current-year quarter was 30.0% of net sales, down from 32.8% of net sales in the prior-year quarter. The current-year quarter included net sales and net income of $8,000 and $7,000, respectively, associated with the Carousel Designs business, which ceased operations in May 2021. The prior-year quarter included net sales and net income of $1.5 million and $97,000, respectively, associated with Carousel.

Excluding the impact of Carousel from both quarters, current-year net sales, gross margin percentage, net income and diluted earnings per share would have been $20.2 million, 30.2%, $2.4 million and $0.24, respectively, compared to prior-year net sales, gross margin percentage, net income and diluted earnings per share of $20.2 million, 32.1%, $2.4 million and $0.23, respectively.

For the six-month fiscal period, net income was $5.1 million, or $0.50 per diluted share, on net sales of $38.9 million, compared with net income of $3.7 million, or $0.36 per diluted share, on net sales of $37.9 million for the first six months of fiscal 2021. Current-year net income was impacted favorably by a pre- and post-tax $1,985,000 gain on extinguishment of debt related to the forgiveness of the Company’s Paycheck Protection Program Loan (the “PPP Loan”). The current year also included net sales and a net loss of $639,000 and $795,000, respectively, associated with Carousel, while the prior year included net sales and net income of $3.0 million and $72,000, respectively, associated with Carousel.

Excluding the impact of the PPP Loan and Carousel from both quarters, current-year net sales, gross margin percentage, net income and diluted earnings per share would have been $38.3 million, 29.8%, $3.9 million and $0.38, respectively, compared to prior-year net sales, gross margin percentage, net income and diluted earnings per share of $34.9 million, 31.3%, $3.6 million and $0.36, respectively.

Board Declares Special and Quarterly Cash Dividends

The Company also announced that its Board of Directors declared a special cash dividend on the Company’s Series A common stock of $0.35 per share, along with a quarterly cash dividend of $0.08 per share. Both dividends will be paid on December 31, 2021 to stockholders of record at the close of business on December 10, 2021. “In challenging times like these, the …….

Source: https://www.globenewswire.com/news-release/2021/11/10/2331296/6937/en/Crown-Crafts-Reports-Fiscal-2022-Second-Quarter-Results.html

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