Crown Crafts Grows Net in Fourth Quarter
GONZALES, La.-Fourth-quarter net income for Crown Crafts totaled $2.3 million, reversing a net loss from last year's fourth quarter of $10.6 million.
The loss posted in the fourth quarter of last year included a $12.6 million charge related to impairment of goodwill. Absent this charge, Crown Crafts' net income was $2 million in that period.
The company's net sales for the quarter was $26 million, up 5.7 percent from last year. Its gross margin tacked on 290 basis points to finish the quarter at 27.4 percent. E. Randall Chestnut, president and chief executive officer, said the "strong finish" to its 2010 fiscal year owed to "appropriate adjustments to our cost structure" in the face of last year's weak retail economy--which enabled Crown Crafts to maintain its cash flow and reduce its debt.
For all of fiscal 2010, the company posted net income of $4.8 million, compared to a net loss in fiscal 2009 of $17.1 million; without a $21.6 million charge for impairment of goodwill, Crown Crafts had net income of $4.5 million. Net sales slipped 1.5 percent to $86.1 million for the fiscal year.