Crown Crafts, Inc. Reports Unaudited Consolidated Financial Results for the Third Quarter and Nine Months Ended December 31, 2017; Provides Tax Rate Guidance for Fiscal 2018
February 08, 2018 at 07:02 am EST
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Crown Crafts, Inc. reported unaudited consolidated financial results for the third quarter and nine months ended December 31, 2017. Net income for the third quarter of fiscal 2018 was $531,000, or $0.05 per diluted share, on net sales of $17.5 million, compared with net income of $1.9 million, or $0.19 per diluted share, on net sales of $17.3 million for the third quarter of fiscal 2017. Gross profit for the current-year quarter was 30.1% of net sales, down from 32.7% in the prior-year quarter. Income from operations was $1,613,000 against $3,063,000 for the same period of last year. Income before income tax expense was $1,578,000 against $3,088,000 for the same period of last year. The increase in net sales for the quarter is due to sales by Carousel, which added $1.8 million of sales in the current year. This amount was offset by a decrease of $1.6 million in sales by Crown Crafts Infant Products, which resulted from reduced product shipments in the current year to a customer that experienced credit problem, a shift to a less profitable customer and product mix and higher sales of closeout inventory, which are typically sold at lower margin.
For the nine months, net income was $1.8 million, or $0.18 per diluted share, on net sales of $47.6 million, compared with net income of $4.0 million, or $0.39 per diluted share, on net sales of $48.7 million for the first nine months of fiscal 2017. Gross profit for both nine-month periods was unchanged at 29.2% of net sales. The company recorded certain pre-tax expenses totaling $241,000 and $1.1 million during the three and nine-month periods of fiscal 2018, respectively, that were not incurred in fiscal 2017. Income from operations was $3,529,000 against $6,059,000 for the same period of last year. Income before income tax expense was $3,524,000 against $6,136,000 for the same period of last year.
The company announced that, as the company's fiscal year will end on April 1, 2018, the lower corporate income tax rate will be phased in, resulting in a blended federal statutory rate of 30.75% for the fiscal year 2018.
Crown Crafts, Inc. designs, markets, and distributes infant, toddler and juvenile consumer products. It operates through its four subsidiaries, NoJo Baby & Kids, Inc., Sassy Baby, Inc., Manhattan Group, LLC, and Manhattan Toy Europe Limited in the infant, toddler and juvenile products segment. Its infant, toddler and juvenile products segment consists of infant and toddler bedding and blankets, bibs, soft bath products, disposable products, developmental toys and accessories. Its primary focus is on infant, toddler, and juvenile products, including infant and toddler bedding, blankets and swaddle blankets, nursery and toddler accessories, room decor, reusable and disposable bibs, burp cloths, hooded bath towels and washcloths, reusable and disposable placemats and floor mats, disposable toilet seat covers and changing mats, developmental toys, feeding and care goods and other infant, toddler and juvenile soft goods. It serves mass merchants, restaurants, and chain stores, among others.
Crown Crafts, Inc. Reports Unaudited Consolidated Financial Results for the Third Quarter and Nine Months Ended December 31, 2017; Provides Tax Rate Guidance for Fiscal 2018
CROWN CRAFTS, INC. 
