Craftmade International, Inc. News
Craftmade International Announces Net Sales and Earnings Results for Its Fiscal 2008 Third Quarter
Fiscal 2008 Consolidated Third Quarter Results
Net income for the quarter ended
Consolidated net sales for the Company increased
"While we continue to face the challenges of the steep declines in the housing industry, we remain optimistic that our strategic steps to diversify our product lines and sales channels will continue to help offset the housing related challenges," said
Third Quarter Segment Results
Third quarter net sales of ceiling fans, lighting and accessories to lighting showrooms were
"We realize that sales to the lighting showrooms have been negatively impacted by the steep decline in the housing market. However, we believe that our net sales have not fallen at the same rate as the overall housing industry due to our more competitive sourcing of products and the introduction of new innovative products. We are currently introducing more products through the lighting showrooms and patio dealers, which we feel will increase our sales," continued Mr. Ridings.
Third quarter net sales of lighting and accessories to mass merchants were
Gross Profit; Selling, General and Administrative ("SG&A") Expense and Interest Expense
For the quarter ended
For the quarter ended
Gross profit as a percentage of net sales of lighting and accessories to mass merchants was 23.4% for the quarter ended
Total selling, general and administrative ("SG&A") expenses for the quarter ended
The Company also announced that it will be suspending its quarterly dividend.
Conclusion
"Currently, we are working to successfully integrate the Woodard acquisition and begin to realize the synergies that both companies offer. The integration process will take some time to be fully realized, but we are confident that the Company will be stronger as a result of the acquisition," said Mr. Ridings. "The current economic environment is extremely tough and we remain steadfast in our commitment to maintain our financial strength. We have always taken pride in our strong balance sheet and remain committed to creating long-term shareholder value. We believe that by suspending the dividend we will be able to pay down debt more quickly and have additional flexibility to focus on any strategic opportunities that develop," concluded Mr. Ridings.
Conference Call
A conference call to discuss the Company's results for the third quarter ended
About Craftmade
Founded in 1985, Craftmade International, Inc. is engaged in the design, manufacturing, distribution and marketing of a broad range of home decor products, including proprietary ceiling fans, lighting products and outdoor furniture. The Company distributes its premium products through a network of independent showrooms and mass retail customers through its headquarters and distribution facility in
Various statements in this Press Release or incorporated by reference herein, in future filings with the SEC, in press releases, and in oral statements made by or with the approval of authorized personnel constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and are indicated by words or phrases such as "may," "will," "should," "could," "might," "expects," "plans," "anticipates," "believes," "estimates," "projects," "predicts," "forecasts," "intends," "potential," "continue," and similar words or phrases and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from the future results, performance or achievements expressed in or implied by such forward-looking statements. These forward-looking statements include statements or predictions regarding among other items: revenues and profits; gross margin; customer concentration; customer buying patterns; sales and marketing expenses; general and administrative expenses; pricing and cost reduction activities; income tax provision and effective tax rate; realization of deferred tax assets; liquidity and sufficiency of existing cash, cash equivalents, and investments for near-term requirements; purchase commitments; product development and transitions; competition and competing technology; outcomes of pending or threatened litigation; and financial condition and results of operations as a result of recent accounting pronouncements. These forward-looking statements are based largely on expectations and judgments and are subject to a number of risks and uncertainties, many of which are beyond our control. Significant factors that cause our actual results to differ materially from our expectations are described in our Form 10-K under the heading of "Risk Factors." We undertake no obligation to publicly update or revise these Risk Factors or any forward-looking statements, whether as a result of new information, future events or otherwise.
CRAFTMADE INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited) Three Months Ended Nine Months Ended March 31, March 31, March 31, March 31, 2008 2007 2008 2007 Net sales $54,918 $22,492 $98,468 $77,181 Cost of goods sold (44,226) (15,401) (73,732) (52,784) Gross profit 10,692 7,091 24,736 24,397 Gross profit as a percentage of net sales 19.5% 31.5% 25.1% 31.6% Selling, general and administrative expenses (8,848) (5,483) (19,366) (15,702) Depreciation and amortization (210) (195) (628) (596) Total operating expenses (9,058) (5,678) (19,994) (16,298) Income from operations 1,634 1,413 4,742 8,099 Interest expense, net (524) (351) (1,144) (1,112) Other Income 139 - 139 - Income before income taxes and minority interest 1,249 1,062 3,737 6,987 Income tax (expense) / benefit (343) 118 (929) (1,645) Income before minority interest 907 1,180 2,809 5,342 Minority interest (267) (447) (1,069) (1,225) Net income $639 $733 $1,739 $4,117 Weighted average common shares outstanding: Basic 5,694 5,204 5,366 5,204 Diluted 5,700 5,206 5,373 5,207 Basic earnings per common share $0.11 $0.14 $0.32 $0.79 Diluted earnings per common share $0.11 $0.14 $0.32 $0.79 Cash dividends declared per common share $0.12 $0.12 $0.36 $0.36 CRAFTMADE INTERNATIONAL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) March 31, June 30, 2008 2007 ASSETS (Unaudited) Current assets Cash $986 $928 Accounts receivable, net 42,881 18,082 Inventories, net 24,261 18,076 Income taxes receivable 2,019 1,376 Deferred income taxes 1,106 1,251 Prepaid expenses and other current assets 2,298 1,503 Total current assets 73,551 41,216 Property and equipment, net 10,550 8,379 Goodwill 14,100 13,644 Other intangibles, net 1,351 1,502 Other assets 1,588 10 Total non-current assets 27,589 23,535 Total assets $101,140 $64,751 LIABILITIES, MINORITY INTEREST AND STOCKHOLDERS' EQUITY Current liabilities Book overdrafts $95 $48 Accounts payable 13,404 5,903 Other accrued expenses 3,463 2,472 Current portion of long-term obligations 499 264 Total current liabilities 17,461 8,687 Non-current liabilities Long-term obligations 42,465 18,938 Deferred income taxes 1,178 1,107 Total non-current liabilities 43,644 20,045 Total liabilities 61,105 28,732 Minority interest 3,339 3,495 Commitments and contingencies (Note 9) Stockholders' equity Preferred stock, $1.00 par value, 2,000,000 shares authorized; nil shares issued - - Common stock, $0.01 par value, 15,000,000 shares authorized; 10,204,420 shares issued 102 97 Additional paid-in capital 22,192 17,831 Retained earnings 52,529 52,722 Less: treasury stock, 4,499,920 common shares at cost (38,126) (38,126) Total stockholders' equity 36,697 32,524 Total liabilities, minority interest and stockholders' equity $101,140 $64,751
SOURCE Craftmade International, Inc.
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