Crown Crafts Inc announces Q1 fiscal yr 2006 results
16 Aug '05
2 min read
America's largest producer of infant bedding and accessories Crown Crafts Inc reported a net loss for the first quarter of fiscal year 2006 of $269,000, or $0.03 per diluted share, on net sales of $13.7 million compared to a net loss for the first quarter of fiscal year 2005 of $102,000, or $0.01 per diluted share, on net sales of $16.9 million.
The Company attributes the decline in sales to customer-driven shifting of sales between quarters, a customer's reducing its on-hand inventory levels and thereby lowering replenishment orders and the loss of a bath program with another customer in fiscal year 2005. In addition, the elimination of quota on goods from China effective January 1, 2005 led to a reduction in the Company's top line sales volume.
"Historically the first quarter is weakest, and this year it was further impacted by a retail customer's adjusting it's inventory levels significantly downward. In addition, the loss of a bath program at another major retailer in fiscal year 2005 impacted the top line revenue," commented E. Randall Chestnut, Chairman, President and Chief Executive Officer of the Company. "They are pleased that had such a positive cash position during the quarter that able to retire the Company's $4.5 million term loan more than a year early, which further improved our balance sheet and will lower our interest costs for the remainder of the year." Chestnut continued.
The Company will host a teleconference today at 1:00 p.m. Central Daylight Time to discuss the Company's results and answer appropriate questions from stockholders. Interested investors may join the teleconference by dialing (888) 428-4478. Please refer to confirmation number 791468.
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