Crown Crafts Reports FY24 Results: $132.1M Sales, $2.9M Net Income

TL;DR

Crown Crafts FY24: $132.1M sales, $2.9M profit. Assets $148.6M, Liab $147.4M. Stable but tight margins.

AI Summary

Crown Crafts Inc. reported its fiscal year 2024 results ending March 31, 2024, with total assets of $148.6 million and total liabilities of $147.4 million. The company's net sales were $132.1 million, with a net income of $2.9 million. This filing covers the period from April 3, 2023, to March 31, 2024.

Why It Matters

This 10-K filing provides a comprehensive overview of Crown Crafts Inc.'s financial performance and position for the fiscal year 2024, crucial for investors assessing the company's stability and profitability.

Risk Assessment

Risk Level: medium — The company has a very small margin between total assets and total liabilities, indicating a potentially tight financial position.

Key Numbers

• $148.6M — Total Assets (Represents the company's total resources as of March 31, 2024.)
• $147.4M — Total Liabilities (Represents the company's total obligations as of March 31, 2024.)
• $132.1M — Net Sales (Total revenue generated from sales for the fiscal year ending March 31, 2024.)
• $2.9M — Net Income (The company's profit for the fiscal year ending March 31, 2024.)
• 0.32 — Earnings Per Share (Diluted) (Diluted earnings per share for the fiscal year ending March 31, 2024.)

Key Players & Entities

• Crown Crafts Inc. (company) — Filer of the 10-K report.
• March 31, 2024 (date) — End of the fiscal year for which results are reported.
• $148.6 million (dollar_amount) — Total assets reported for the fiscal year.
• $147.4 million (dollar_amount) — Total liabilities reported for the fiscal year.
• $132.1 million (dollar_amount) — Net sales reported for the fiscal year.
• $2.9 million (dollar_amount) — Net income reported for the fiscal year.

FAQ

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value CRWS Nasdaq Capital Market
• $17.0 m — Acquisition"), for a purchase price of $17.0 million, subject to adjustments for cash
• $13.75 million — ered from target net working capital of $13.75 million. The Manhattan Acquisition was funded w

Filing Documents

• crws20240331_10k.htm (10-K) — 1492KB
• ex_692938.htm (EX-4.11) — 31KB
• ex_692074.htm (EX-21.1) — 3KB
• ex_693892.htm (EX-23.1) — 2KB
• ex_691738.htm (EX-31.1) — 12KB
• ex_691739.htm (EX-31.2) — 12KB
• ex_691740.htm (EX-32.1) — 4KB
• ex_691741.htm (EX-32.2) — 4KB
• ex_691742.htm (EX-97.1) — 35KB
• 0001437749-24-021478.txt ( ) — 8115KB
• crws-20240331.xsd (EX-101.SCH) — 69KB
• crws-20240331_cal.xml (EX-101.CAL) — 69KB
• crws-20240331_def.xml (EX-101.DEF) — 444KB
• crws-20240331_lab.xml (EX-101.LAB) — 467KB
• crws-20240331_pre.xml (EX-101.PRE) — 486KB
• crws20240331_10k_htm.xml (XML) — 1392KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations. 14 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 18 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data. 19 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. 19 Item 9A.

Controls and Procedures

Controls and Procedures. 19 Item 9B. Other Information. 19 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 20 PART III Item 10. Directors, Executive Officers and Corporate Governance. 20 Item 11.

Executive Compensation

Executive Compensation. 20 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. 20 Item 13. Certain Relationships and Related Transactions, and Director Independence. 21 Item 14. Principal Accountant Fees and Services. 21 PART IV Item 15. Exhibits and Financial Statement Schedules. 22 Item 16. Form 10-K Summary. 27 Cautionary Notice Regarding Forward-Looking Statements Certain of the statements made in this Annual Report on Form 10-K (this "Annual Report") under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations," and elsewhere, including information incorporated herein by reference to other documents, are "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions and future performance and involve known and unknown risks, uncertainties and other factors, many of which may be beyond our control and which may cause the actual results, performance or achievements of Crown Crafts, Inc. (the "Company") to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking. Such statements are based upon management's current expectations, projections, estimates and assumptions, and may be identified as forward-looking through the Company's use of words such as "expects," "believes," "anticipates," "estimates," "predicts," "forecasts," "plans," "projects," "targets," "should," "potential," "continue," "aims," "intends," "will," "could," "would" and variations of such words and similar expre

Business

ITEM 1. Business Description of Business The Company was incorporated as a Georgia corporation in 1957 and was reincorporated as a Delaware corporation in 2003. The Company's executive offices are located at 916 South Burnside Avenue, Suite 300, Gonzales, Louisiana 70737, its telephone number is (225) 647-9100 and its internet address is www.crowncrafts.com . The Company operates indirectly through three of its wholly-owned subsidiaries, NoJo Baby & Kids, Inc. ("NoJo"), Sassy Baby, Inc. ("Sassy") and Manhattan Toy Europe Limited ("MTE") in the infant, toddler and juvenile products segment within the consumer products industry. The infant, toddler and juvenile products segment consists of infant and toddler bedding and blankets, bibs, soft bath products, disposable products, developmental toys and accessories. Most sales of the Company's products are generally made directly to retailers, such as mass merchants, large chain stores, mid-tier retailers, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, wholesale clubs and internet-based retailers. The Company's products are marketed under a variety of Company-owned trademarks, under trademarks licensed from others and as private label goods. The Company's fiscal year ends on the Sunday nearest to or on March 31. References herein to "fiscal year 2024" or "2024" represent the 52-week period ended March 31, 2024, and references herein to "fiscal year 2023" or "2023" represent the 52-week period ended April 2, 2023. On March 17, 2023 (the "Closing Date"), the Company acquired Manhattan Group, LLC ("Manhattan") and MTE, Manhattan's then wholly-owned subsidiary (the "Manhattan Acquisition"), for a purchase price of $17.0 million, subject to adjustments for cash as of the Closing Date and to the extent that actual net working capital as of the Closing Date differed from target net working capital of $13.75 million. The Manhattan Acquisition was funded with available cash and borrowi

Risk Factors

ITEM 1A. Risk Factors The following risk factors as well as the other information contained in this Annual Report and other filings made by the Company with the SEC should be considered in evaluating the Company ' s business. Additional risks and uncertainties that are not presently known or that are not currently considered material may also impair the Company ' s business operations. If any of the following risks actually occur, then operating results may be affected in future periods. Risks Associated with the Company, Business and Industry The loss of one or more of the Company ' s key customers could result in a material loss of revenues. The Company's top two customers represented approximately 61% of gross sales in fiscal year 2024. Although the Company does not enter into contracts with its key customers, it expects its key customers to continue to be a significant portion of its gross sales in the future. The loss of, or a decline in orders from, one or more of these customers could result in a material decrease in the Company's revenue and operating income. The loss of one or more of the Company ' s licenses could result in a material loss of revenues. Sales of licensed products represented 40% of the Company's gross sales in fiscal year 2024, which included 24% of sales associated with the Company's license agreements with Disney. The Company could experience a material loss of revenues if it is unable to renew its major license agreements or obtain new licenses. The volume of sales of licensed products is inherently tied to the success of the characters, films and other licensed programs of the Company's licensors. A decline in the popularity of these licensed programs or the inability of the licensors to develop new properties for licensing could also result in a material loss of revenues to the Company. Additionally, the Company's license agreements with Disney and others require a material amount of minimum guaranteed royalty payments. The

View Full Filing

View this 10-K filing on SEC EDGAR