Crown Crafts, Inc. (NASDAQ:CRWS) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 02:00 pm ET

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Crown Crafts, Inc. (NASDAQ:CRWS) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Hello, ladies and gentlemen, and welcome to the Crown Crafts, Inc. Investors' Conference Call. Your host for today's call is Mr. Randall Chestnut, Chairman, President and Chief Executive Officer.

At this time, all participants are in a listen-only mode.

(Operator Instructions)

Any reproduction of this call, in whole or in part, is not permitted without the prior written authorization from Crown Crafts, Inc.

And as a reminder, this conference is being recorded today, February 7, 2019.

At this time, I would like to turn the call over to Ms. Olivia Elliott, Vice President and CFO, who will begin the call. Please go ahead, ma'am.

Executive
Olivia W. Elliott

Thank you. Welcome to the Crown Crafts investor conference call for the third quarter of fiscal 2019. With me today is Randall Chestnut, the Company's President and Chief Executive Officer.

Executive
E. Randall Chestnut

Good afternoon, everyone.

Executive
Olivia W. Elliott

A telephone replay of this call will be available one hour after the end of the call through 4:00 p.m. Central Time on February 14, 2019. Also, a web replay of the call will be available for 90 days, and can be accessed by visiting our website at www.crowncrafts.com.

Before we begin, I would like to remind listeners of the cautionary language regarding forward-looking statements contained in the press release. That same language applies to comments made in today's conference call.

Also, in regard to comments made in today's conference call that are related to the Company's recently announced dividend, its history of paying dividends and the annualized yield on the Company's common stock, we remind listeners that the declaration of each dividend is at the discretion of the Company's Board of Directors, and the Company expressly disclaims any assurances as to the frequency and amount of any future dividend.

I will now turn the call over to Randall.

Executive
E. Randall Chestnut

Olivia, thank you very much, and good afternoon again to everyone, and welcome to the Crown Crafts, Inc. investor conference call. Before the market opened this morning, we released our earnings for our third quarter, which ended December 30th of 2018, and represented the third quarter of our FY '19, the year we're in now. I'm going to touch on the highlights of the numbers for the quarter. Olivia will come back a little bit later, and she'll touch on the quarter and year-to-date and expand more.

Net sales for the quarter this year were $18.7 million, as opposed to $17.5 million in the same quarter last year, or an increase of $1.2 million or 6.8%. Net income increased from $531,000 in the third quarter of last year to $1,554,000 in the third quarter of this year, or up $1,023,000 or 193%.

Diluted earnings per share were $0.05 last year and $0.15 in the third quarter this year. We're very proud of our third quarter performance, which included a sales increase of 6.8%. Through the year, we've navigated a rapidly changing retail landscape, which included customer bankruptcies, store closings and liquidation. And we present -- we, which have presented unusual challenges, but our team has