þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 58-0678148 | |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
July 1, 2007 | April 1, 2007 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 484 | $ | 33 | ||||
Accounts receivable (net of allowances of $914
at July 1, 2007 and $989 at April 1, 2007): |
||||||||
Due from factor |
9,697 | 11,764 | ||||||
Other |
1,798 | 1,121 | ||||||
Inventories, net |
11,553 | 7,145 | ||||||
Prepaid expenses |
1,210 | 1,313 | ||||||
Assets held for sale |
663 | | ||||||
Deferred income taxes |
1,906 | 2,408 | ||||||
Total current assets |
27,311 | 23,784 | ||||||
Property, plant and equipment at cost: |
||||||||
Land, buildings and improvements |
200 | 1,322 | ||||||
Machinery and equipment |
2,268 | 2,502 | ||||||
Furniture and fixtures |
746 | 654 | ||||||
3,214 | 4,478 | |||||||
Less accumulated depreciation |
2,480 | 3,037 | ||||||
Property, plant and equipment net |
734 | 1,441 | ||||||
Other assets: |
||||||||
Goodwill, net |
22,884 | 22,884 | ||||||
Other |
774 | 807 | ||||||
Total other assets |
23,658 | 23,691 | ||||||
Total Assets |
$ | 51,703 | $ | 48,916 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 7,084 | $ | 3,552 | ||||
Accrued wages and benefits |
1,603 | 1,300 | ||||||
Accrued royalties |
1,116 | 671 | ||||||
Other accrued liabilities |
162 | 73 | ||||||
Current maturities of long-term debt |
17 | 19 | ||||||
Total current liabilities |
9,982 | 5,615 | ||||||
Non-current liabilities: |
||||||||
Long-term debt |
3,089 | 5,780 | ||||||
Deferred income taxes |
698 | 698 | ||||||
Total non-current liabilities |
3,787 | 6,478 | ||||||
Commitments and contingencies |
| | ||||||
Shareholders equity: |
||||||||
Common stock par value $0.01 per share;
74,000,000 shares authorized; 10,005,192
shares outstanding at July 1, 2007 and
10,003,692 outstanding at April 1, 2007 |
100 | 100 | ||||||
Additional paid-in capital |
38,745 | 38,619 | ||||||
Accumulated deficit |
(911 | ) | (1,896 | ) | ||||
Total shareholders equity |
37,934 | 36,823 | ||||||
Total Liabilities and Shareholders Equity |
$ | 51,703 | $ | 48,916 | ||||
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Three Months Ended | ||||||||
July 1, | July 2, | |||||||
2007 | 2006 | |||||||
Net sales |
$ | 15,360 | $ | 15,753 | ||||
Cost of products sold |
11,054 | 11,286 | ||||||
Gross profit |
4,306 | 4,467 | ||||||
Marketing and administrative expenses |
2,404 | 2,167 | ||||||
Income from operations |
1,902 | 2,300 | ||||||
Other income (expense): |
||||||||
Interest expense |
(112 | ) | (723 | ) | ||||
Other net |
(35 | ) | 140 | |||||
Income before income taxes |
1,755 | 1,717 | ||||||
Income tax expense |
676 | 665 | ||||||
Income from continuing operations after income taxes |
1,079 | 1,052 | ||||||
Loss from discontinued operations net of income taxes |
(94 | ) | (141 | ) | ||||
Net income |
$ | 985 | $ | 911 | ||||
Weighted average shares
outstanding basic |
10,004 | 9,506 | ||||||
Weighted average shares
outstanding diluted |
10,297 | 22,137 | ||||||
Basic earnings per share: |
||||||||
Income from continuing operations |
$ | 0.11 | $ | 0.11 | ||||
Loss from discontinued operations |
(0.01 | ) | (0.01 | ) | ||||
Income per share |
$ | 0.10 | $ | 0.10 | ||||
Diluted earnings per share: |
||||||||
Income from continuing operations |
$ | 0.11 | $ | 0.05 | ||||
Loss from discontinued operations |
(0.01 | ) | (0.01 | ) | ||||
Income per share |
$ | 0.10 | $ | 0.04 | ||||
2
Three Months Ended | ||||||||
July 1, | July 2, | |||||||
2007 | 2006 | |||||||
Operating activities: |
||||||||
Net income |
$ | 985 | $ | 911 | ||||
Adjustments to reconcile net income to net cash
provided by operating activities: |
||||||||
Depreciation of property, plant and equipment |
83 | 117 | ||||||
Goodwill write-off |
| 90 | ||||||
Amortization of intangibles |
18 | 1 | ||||||
Deferred income taxes |
503 | 471 | ||||||
Loss (gain) on sale of property, plant and equipment |
8 | (11 | ) | |||||
Discount accretion |
55 | 207 | ||||||
Stock-based compensation |
126 | | ||||||
Changes in assets and liabilities
|
||||||||
Accounts receivable |
1,390 | 2,247 | ||||||
Inventories, net |
(4,408 | ) | (3,782 | ) | ||||
Prepaid expenses |
103 | 119 | ||||||
Other assets |
15 | (84 | ) | |||||
Accounts payable |
3,532 | 2,434 | ||||||
Accrued liabilities |
837 | 1,083 | ||||||
Net cash provided by operating activities |
3,247 | 3,803 | ||||||
Investing activities: |
||||||||
Capital expenditures |
(61 | ) | (17 | ) | ||||
Proceeds from disposition of assets |
13 | 11 | ||||||
Net cash used in investing activities |
(48 | ) | (6 | ) | ||||
Financing activities: |
||||||||
Payments on long-term debt |
(6 | ) | (9 | ) | ||||
Repayments under line of credit, net |
(2,742 | ) | | |||||
Net cash used in financing activities |
(2,748 | ) | (9 | ) | ||||
Net increase in cash and cash equivalents |
451 | 3,788 | ||||||
Cash and cash equivalents at beginning of period |
33 | 3,790 | ||||||
Cash and cash equivalents at end of period |
$ | 484 | $ | 7,578 | ||||
Supplemental cash flow information: |
||||||||
Income taxes paid |
$ | 15 | $ | | ||||
Interest paid |
63 | 389 |
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1. | Basis of Presentation: The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America applicable to interim financial information and the rules and regulations of the Securities and Exchange Commission (the SEC). Accordingly, they do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, such interim consolidated financial statements contain all adjustments necessary to present fairly the financial position of Crown Crafts, Inc. (the Company) as of July 1, 2007 and the results of its operations and cash flows for the periods presented. Such adjustments include normal, recurring accruals. Operating results for the three-month period ended July 1, 2007 are not necessarily indicative of the results that may be expected for the year ending March 30, 2008. For further information, refer to the Companys consolidated financial statements and notes thereto included in the annual report on Form 10-K for the year ended April 1, 2007. | |
Revenue Recognition: Sales are recorded when goods are shipped to customers and are reported net of allowances for estimated returns and allowances in the consolidated statements of income. Allowances for returns are estimated based on historical rates. Allowances for returns, advertising allowances, warehouse allowances and volume rebates are netted against sales. These allowances are recorded commensurate with sales activity and the cost of such allowances is netted against sales in reporting the results of operations. Shipping and handling costs, net of amounts reimbursed by customers, are relatively insignificant and are included in net sales. | ||
Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates are made with respect to the allowances related to accounts receivable for customer deductions for returns, allowances and disputes. The Company has a certain amount of discontinued and irregular raw materials and finished goods which necessitate the establishment of inventory reserves which are highly subjective. Actual results could differ from those estimates. | ||
Segment and Related Information: The Company operates primarily in one principal segment, infant products. These products consist of infant bedding, bibs and soft goods. | ||
Impairment of Long-lived Assets, Identifiable Intangibles and Goodwill: The Company reviews for impairment of long-lived assets and certain identifiable intangibles whenever events or changes in circumstances indicate that the carrying amount of any asset may not be recoverable. In the event of impairment, the asset is written down to its fair market value. Assets to be disposed of, if any, are recorded at the lower of net book value or fair market value less cost to sell at the date management commits to a plan of disposal and are classified as assets held for sale on the consolidated balance sheet. | ||
The Company reviews the carrying value of goodwill annually and sooner if facts and circumstances suggest that the asset may be impaired. Impairment of goodwill and write-downs, if any, are measured based on estimates of future cash flows. Goodwill is stated net of accumulated amortization of $6.4 million at July 1, 2007 and April 1, 2007. On April 1, 2002, the Company implemented Statement of Financial Accounting Standards (SFAS) No. 142, Goodwill and Other Intangible Assets (SFAS No. 142). As a result, the Company discontinued amortizing goodwill but continued to amortize other long-lived intangible assets. In lieu of amortization, the Company is required to perform an annual impairment review of its goodwill. The Company has performed a transitional fair value based impairment test on its goodwill in accordance with SFAS No. 142. With the exception of goodwill related to Churchill Weavers, Inc. (Churchill), the Company determined that the fair value exceeded the recorded value at April 3, 2006 and April 2, 2007. Churchills goodwill of $90,000 was written off in June 2006 due to an impairment indicator, the decline in sales volume and decline in profitability in recent years. Churchill has ceased operations and the remaining assets are held for sale (see Note 7 to the Companys consolidated financial statements). | ||
Provision for Income Taxes: The provisions for income taxes include all currently payable federal, state and local taxes that are based upon the Companys taxable income and the change during the fiscal year in net deferred income tax assets and liabilities. The Company provides for deferred income taxes based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates that will be in effect when the differences are expected to reverse. |
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Allowances Against Accounts Receivable: The Companys allowances against accounts receivable are primarily contractually agreed upon deductions for items such as advertising and warehouse allowances and volume rebates. These deductions are recorded throughout the year commensurate with sales activity. Funding of the majority of the Companys allowances occurs on a per-invoice basis. | ||
The allowances for customer deductions, which are netted against accounts receivable in the consolidated balance sheets, consist of agreed upon advertising support, markdowns and warehouse and other allowances. Consistent with the guidance provided in Emerging Issues Task Force 01-9, all such allowances are recorded as direct offsets to sales, and such costs are accrued commensurate with sales activities. When a customer requests deductions, the allowances are reduced to reflect such payments. | ||
The Company analyzes the components of the allowances for customer deductions monthly and adjusts the allowances to the appropriate levels. The timing of the customer initiated funding requests for advertising support can cause the net balance in the allowance account to fluctuate from period to period. The timing of such funding requests should have no impact on the consolidated statements of income since such costs are accrued commensurate with sales activity. | ||
Royalty Payments: The Company has entered into agreements that provide for royalty payments based on a percentage of sales with certain minimum guaranteed amounts. These royalty amounts are accrued based upon historical sales rates adjusted for current sales trends by customers. Total royalty expenses included in cost of sales amounted to $0.9 million and $1.0 million in the three-month periods ended July 1, 2007 and July 2, 2006, respectively. | ||
Recently Issued Accounting Standards: In July 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation (FIN) No. 48, Accounting for Uncertainty in Income Taxes an interpretation of FASB Statement No. 109 (FIN No. 48), which clarifies the accounting and disclosure for uncertain tax positions, as defined. FIN No. 48 seeks to reduce the diversity in practice associated with certain aspects of the recognition and measurement related to accounting for income taxes. On April 2, 2007, the Company adopted the provisions of FIN No. 48. Based on our recent evaluation, we have concluded that there are no significant uncertain tax positions requiring recognition in the Companys consolidated financial statements. Our evaluation was performed for the tax years ended March 28, 2004, April 3, 2005, April 2, 2006 and April 1, 2007, the tax years which remain subject to examination by major tax jurisdictions as of July 1, 2007. The Companys policy is to accrue interest expense and penalties as appropriate on its estimated unrecognized tax benefits as a charge to interest expense in the Companys consolidated financial statements. | ||
In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities. This statement provides companies an option to report selected financial assets and liabilities at fair value. SFAS No. 159 is effective as of the beginning of an entitys first fiscal year beginning after November 15, 2007. The Company is assessing SFAS No. 159 and has not determined yet the impact that the adoption of SFAS No. 159 will have on its result of operations or financial position. | ||
In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements, which defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. This statement is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. Earlier application is encouraged provided that the reporting entity has not yet issued financial statements for that fiscal year including financial statements for an interim period within that fiscal year. The Company is assessing SFAS No. 157 and has not determined yet the impact that the adoption of SFAS No. 157 will have on its result of operations or financial position. | ||
2. | Stock-Based Compensation: The Company has two incentive stock plans, the 1995 Stock Option Plan (1995 Plan) and the 2006 Omnibus Incentive Plan (2006 Plan). The Company granted non-qualified stock options to employees and non-employee directors from the 1995 Plan through the fiscal year ended April 2, 2006. In conjunction with the approval of the 2006 Plan by the Companys stockholders at its Annual Meeting in August 2006, options may no longer be issued from the 1995 Plan. | |
The 2006 Plan is intended to attract and retain directors, officers and employees of the Company and its subsidiaries and to motivate these persons to achieve performance objectives related to the Companys overall goal of increasing stockholder value. The principal reason for adopting the 2006 Plan is to ensure that the Company has a mechanism for long-term, equity-based incentive compensation to directors, officers and employees. Awards granted under the 2006 Plan may be in the form of qualified or non-qualified stock options, restricted stock, stock appreciation rights (SARs), long-term incentive compensation units consisting of a combination of cash and shares of the Companys common stock, or any combination thereof within the limitations set forth in the 2006 Plan. The 2006 Plan is administered by the compensation committee of the board of directors, |
5
which selects eligible employees and non-employee directors to participate in the 2006 Plan and determines the type, amount and duration of individual awards. | ||
On April 3, 2006, the Company adopted SFAS No. 123(R), Share-Based Payment. This standard requires expensing of stock options and other share-based payments and supersedes SFAS No. 123, Accounting for Stock-Based Compensation, and Accounting Principles Board (APB) Opinion No. 25, Accounting for Stock Issued to Employees, and related implementation guidance that had previously allowed companies to choose between expensing stock options or providing pro-forma disclosure only. SFAS No. 123(R) eliminates the ability to account for stock-based compensation transactions using the intrinsic value method under APB Opinion No. 25 and instead requires that such transactions be accounted for using a fair-value-based method. In addition, the SEC issued Staff Accounting Bulletin 107 in April 2005, which provides supplemental implementation guidance for SFAS No. 123(R). | ||
The Company uses the Black-Scholes option-pricing model to determine the fair-value of stock-based awards under SFAS No. 123(R), consistent with the method previously used for pro forma disclosures under SFAS No. 123. The Company elected to use the modified prospective transition method permitted by SFAS No. 123(R). Under the modified prospective method, SFAS No. 123(R) applies to new awards issued on or after April 3, 2006 as well as the unvested portion of awards that were outstanding as of April 2, 2006, including those that are subsequently modified, repurchased or cancelled. Under the modified prospective approach, compensation cost recognized in fiscal year 2007 includes compensation cost for all share-based payments granted prior to, but not yet vested as of, April 2, 2006 in accordance with the original provisions of SFAS No. 123. Prior periods were not restated to reflect the impact of adopting the new standard. | ||
The Company recorded $126,000 of stock-based compensation during the quarter ended July 1, 2007, which affected basic and diluted earnings per share by $0.01. No stock-based compensation costs were capitalized as part of the cost of an asset as of July 1, 2007. | ||
Stock Options: The following table represents stock option activity for fiscal year 2008: |
Weighted-Average | Number of Options | |||||||
Exercise Price | Outstanding | |||||||
Outstanding at April 1, 2007 |
$ | 1.68 | 593,346 | |||||
Granted |
| | ||||||
Exercised |
0.18 | 1,500 | ||||||
Forfeited |
| | ||||||
Outstanding, July 1, 2007 |
$ | 1.68 | 591,846 | |||||
Exercisable, July 1, 2007 |
$ | 0.87 | 367,852 | |||||
For the quarter ended July 1, 2007, the Company recognized $52,000 of compensation expense associated with the stock option grants, of which $12,000 was included in cost of products sold and $39,000 was also included in marketing and administrative expenses in the accompanying consolidated statements of income. The Company recognized $1,000 of compensation expense associated with unvested stock options outstanding at April 2, 2006. | ||
Non-vested Stock: The fair value of non-vested stock is determined based on the number of shares granted and the quoted closing price of the Companys common stock on the date of grant. All non-vested stock awards issued under the 2006 Plan vest based upon continued service. | ||
During the quarter ended October 1, 2006, the Company granted 375,000 shares of non-vested stock with a weighted-average grant date fair value of $3.15. These shares have four-year cliff vesting. The Company recognized $74,000 of compensation expense in the quarter ended July 1, 2007 that was included in marketing and administrative expenses in the accompanying consolidated statements of income. The deferred amount is being amortized by monthly charges to earnings over the four-year vesting period. | ||
As of July 1, 2007, the amount of unrecognized non-vested stock compensation costs amounted to $0.9 million. The amount of unrecognized non-vested stock compensation will be affected by any future non-vested stock grants and by the separation from the Company of any employee who has received non-vested stock grants that are unvested as of such employees separation date. |
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3. | Inventory: Major classes of inventory were as follows (in thousands): |
July 1, 2007 | April 1, 2007 | |||||||
Raw Materials |
$ | 20 | $ | 15 | ||||
Work in Process |
| 12 | ||||||
Finished Goods |
11,533 | 7,118 | ||||||
$ | 11,553 | $ | 7,145 | |||||
Inventory is net of reserves for inventories classified as irregular or discontinued of $0.3 million at July 1, 2007 and April 1, 2007. |
4. | Financing Arrangements | |
Factoring Agreement: The Company assigns the majority of its trade accounts receivable to a commercial factor. Under the terms of the factoring agreement, the factor remits payments to the Company on the average due date of each group of invoices assigned. The factor bears credit losses with respect to assigned accounts receivable that are within approved credit limits. The Company bears losses resulting from returns, allowances, claims and discounts. | ||
Notes Payable and Other Credit Facilities: At July 1, 2007 and April 1, 2007, long-term debt consisted of: |
July 1, | April 1, | |||||||
2007 | 2007 | |||||||
Revolving credit facility |
$ | | $ | 2,742 | ||||
Non-interest bearing notes |
4,000 | 4,000 | ||||||
Capital leases |
17 | 23 | ||||||
Original issue discount |
(911 | ) | (966 | ) | ||||
3,106 | 5,799 | |||||||
Less current maturities |
17 | 19 | ||||||
$ | 3,089 | $ | 5,780 | |||||
The Companys credit facilities at July 1, 2007 include the following: | ||
Revolving Credit of up to $22 million, including a $1.5 million sub-limit for letters of credit. The interest rate is prime minus 1.00% (7.25% at July 1, 2007) for base rate borrowings or LIBOR plus 2.25% (7.57% at July 1, 2007). The maturity date is July 11, 2009. The facility is secured by a first lien on all assets. There was no balance outstanding at July 1, 2007. Based on eligible accounts receivable and inventory balances as of July 1, 2007, the Company had $15.1 million available under the revolving credit facility. As of July 1, 2007, letters of credit of $550,000 were outstanding against the $1.5 million sub-limit for letters of credit. | ||
The financing agreement for the $22 million revolving credit facility contains usual and customary covenants for transactions of this type, including limitations on other indebtedness, liens, transfers of assets, investments and acquisitions, merger or consolidation transactions, dividends, transactions with affiliates and changes in or amendments to the organizational documents for the Company and its subsidiaries. The Company was in compliance with these covenants as of July 1, 2007. | ||
Subordinated Notes of $4 million. The notes do not bear interest and are due in two equal installments of $2 million each, the first of which is payable on July 11, 2010, and the second of which is payable on July 11, 2011. The original issue discount of $1.1 million on this non-interest bearing obligation at a market interest rate of 7.25% is being amortized over the life of the notes. The remaining unamortized balance of $0.9 million is included in the consolidated balance sheet as of July 1, 2007. |
7
Fiscal | Sub Notes | Other | Total | |||||||||
2008 |
| $ | 13 | $ | 13 | |||||||
2009 |
| 4 | 4 | |||||||||
2010 |
| | | |||||||||
2011 |
$ | 2,000 | | 2,000 | ||||||||
2012 |
2,000 | | 2,000 | |||||||||
Total |
$ | 4,000 | $ | 17 | $ | 4,017 | ||||||
5. | Earnings per Share: The weighted average number of shares outstanding on a fully diluted basis was 10,297,000 for the three-month period ended July 1, 2007 compared to 22,137,000 for the three-month period ended July 2, 2006. The Company had issued to its previous lenders Common Stock Purchase Warrants for non-voting common stock that were convertible into common stock equivalent to 65% of the shares of the Company on a fully diluted basis at a price of 11.3 cents per share. These warrants were extinguished and are, therefore, no longer included in the Companys calculation of diluted earnings per share. |
6. | Acquisitions: On December 29, 2006, the Company, through its wholly-owned subsidiary Crown Crafts Infant Products, Inc., acquired substantially all of the assets of Kimberly Grant, Inc., a designer of various infant and toddler products. The following table summarizes the allocation of the $550,000 paid at closing and the $50,000 paid upon renewal of the acquired Kimberly Grant trademark based upon fair values of the assets acquired assumed at the date of the acquisition. The fair values of certain intangibles were based upon a third-party valuation of such assets. | |
The table below represents estimated amortization expense for the following periods: |
Aggregate | ||||||||||||||||
Gross | Estimated | Amortization | ||||||||||||||
Carrying | Useful | Accumulated | Expense in | |||||||||||||
Amount | Life | Amortization | 2007 | |||||||||||||
Tradename |
$ | 466,387 | 15 years | $ | 15,553 | $ | 7,773 | |||||||||
Existing Designs |
35,924 | 1 year | 8,978 | 8,978 | ||||||||||||
Non-compete |
97,689 | 15 years | 3,207 | 1,629 | ||||||||||||
$ | 600,000 | $ | 27,738 | $ | 18,380 | |||||||||||
7. | Discontinued Operations: On February 2, 2007, the Company announced that it would liquidate Churchill. Goodwill of $90,000 associated with the acquisition of Churchill was written-off in June 2006. In anticipation of the liquidation of Churchill, the Company recorded valuation allowances approximating $550,000 in the quarter ended December 31, 2006 to reflect the expected net realizable value of Churchills receivables, inventories and prepaid expenses. In the fourth quarter of fiscal year 2007, the Company sold the Churchill Weavers name, together with Churchills other intellectual property, domain name and website, yarn inventory, looms and other weaving, sewing and laundry equipment for $275,000. The Company also sold in the fourth quarter of fiscal year 2007 a small portion of the Churchill property in Berea, Kentucky, and Churchills archives and certain antiquities for $110,000. During the first quarter of fiscal year 2008, Churchills operations ceased and all employees were terminated. | |
The Company is actively marketing Churchills land and building for sale. The property has been appraised at greater than net book value. In accordance with accounting guidelines, in the first quarter of fiscal year 2008, the property is classified as assets held for sale in the consolidated balance sheet and the operations of Churchill are classified as discontinued operations in the consolidated statement of income. These classifications were not used prior to the end of fiscal year 2007 because Churchills operations were continuing at that time. |
8
Three-month period ended | ||||||||||||||||
July 1, | July 2, | |||||||||||||||
2007 | 2006 | $ change | % change | |||||||||||||
Dollars in thousands | ||||||||||||||||
Net Sales by Category |
||||||||||||||||
Bedding, Blankets and Accessories |
$ | 11,406 | $ | 10,905 | $ | 501 | 4.6 | % | ||||||||
Bibs and Bath |
3,954 | 4,848 | (894 | ) | -18.4 | % | ||||||||||
Total Net Sales |
15,360 | 15,753 | (393 | ) | -2.5 | % | ||||||||||
Cost of Products Sold |
11,054 | 11,286 | (232 | ) | -2.1 | % | ||||||||||
Gross Profit |
4,306 | 4,467 | (161 | ) | -3.6 | % | ||||||||||
% of Net Sales |
28.0 | % | 28.4 | % | ||||||||||||
Marketing and Administrative Expenses |
2,404 | 2,167 | 237 | 10.9 | % | |||||||||||
% of Net Sales |
15.7 | % | 13.8 | % | ||||||||||||
Interest Expense |
112 | 723 | (611 | ) | -84.5 | % | ||||||||||
Other Income net |
35 | (140 | ) | 175 | 125.0 | % | ||||||||||
Income Tax Expense |
676 | 665 | 11 | 1.7 | % | |||||||||||
Income from continuing operations after taxes |
1,079 | 1,052 | 27 | 2.6 | % | |||||||||||
Discontinued Operations net of taxes |
(94 | ) | (141 | ) | 47 | 33.3 | % | |||||||||
Net Income |
985 | 911 | 74 | 8.1 | % | |||||||||||
% of Net Sales |
6.4 | % | 5.8 | % |
9
10
11
Exhibit | ||
No. | Exhibit | |
31.1 |
Rule 13a-14(a)/15d-14(a) Certification by the Companys Chief Executive Officer | |
31.2 |
Rule 13a-14(a)/15d-14(a) Certification by the Companys Chief Financial Officer | |
32.1 |
Section 1350 Certification by the Companys Chief Executive Officer | |
32.2 |
Section 1350 Certification by the Companys Chief Financial Officer |
CROWN CRAFTS, INC. |
||||
Date: August 15, 2007 | /s/ Amy Vidrine Samson | |||
AMY VIDRINE SAMSON | ||||
Chief Financial Officer (duly authorized signatory and Principal Financial and Accounting Officer) |
12
Exhibit | ||
No. | Exhibit | |
31.1 |
Rule 13a-14(a)/15d-14(a) Certification by the Companys Chief Executive Officer | |
31.2 |
Rule 13a-14(a)/15d-14(a) Certification by the Companys Chief Financial Officer | |
32.1 |
Section 1350 Certification by the Companys Chief Executive Officer | |
32.2 |
Section 1350 Certification by the Companys Chief Financial Officer |
13