Craftmade International Announces Second Quarter Earnings Increase of 150%
SUMMARY OF RESULTS: * Net income increased 150% for most profitable quarter in Company's history. * Earnings per share increased 113% to $0.17 vs. $0.08 for same period last year, after giving effect to the three-for-two stock split. * Revenue for six months exceeded total for entire fiscal 1998. * Net income for six months more than that of entire fiscal 1998.
COPPELL, Texas, Jan. 20 /PRNewswire/ -- Craftmade International, Inc. (Nasdaq: CRFT - news) citing record profitability, today reported net income of $1,258,915 for the three months ended December 31, 1998 compared with net income of $504,181 for the same three months last year, representing a 150% increase in net income. For the six months ended December 31, 1998, net income rose 105% to $3,454,707 compared with net income of $1,682,607 for the same six months last year.
Earnings per share for the quarter increased 113% to 17 cents from 8 cents for the same three months last year. For the six months, earnings per share increased 77% to 46 cents from 26 cents for the same six months a year ago. Earnings per share and diluted shares outstanding data have been restated to reflect the three-for-two stock split to holders of record at the close of business on October 30, 1998, effective November 16, 1998.
Net income and earnings per share rose as a result of a 96% increase in net sales for the quarter, from $9,005,351 last year to $17,609,457 this year, and a 100% increase in net sales for the six months, from $20,537,453 last year to $41,161,838 this year.
''We were able to increase earnings 150% over last year's second quarter primarily on the strength of the fan division and the addition of TSI's outdoor lighting sales beginning with its acquisition on July 1, 1998,'' stated James R. Ridings, President and Chief Executive Officer.
''Fan sales increased 21.6% for the quarter and 12.0% for the six months on the strength of this division's innovative product design and aggressive marketing strategy of competitive pricing and selective expansion of its distribution base. Meanwhile, low interest rates and perfect construction weather have created a home-buying boom and, subsequently, contributed to the increased demand in Craftmade's core business,'' stated Mr. Ridings.
''The success of the fan division and inclusion of TSI's operations have enabled us to exceed both revenue and net income for all of fiscal 1998 in only the first six months of fiscal 1999,'' continued Mr. Ridings. ''With six months of this year behind us, we are on track to meet or exceed analysts' concensus estimates for fiscal 1999.''
''We will begin to see the real synergies of the two companies during the third quarter of this year as we initiate our cross-marketing strategy'', stated Mr. Ridings. ''We introduced TSI's outdoor lighting to our showroom customers at the January 1999 Dallas Lighting Market and the response was overwhelming. With the initiation of these synergies, we should have several years of substantial growth.''
Three Months Ended Six Months Ended
December 31, December 31 December 31, December 31,
1998 1997 1998 1997
Net sales $17,609,457 $9,005,351 $41,161,838 $20,537,453
Gross profit $6,240,914 $3,572,586 $14,000,614 $8,165,135
Selling, general and
administrative exp. $3,550,966 $2,380,552 $6,829,069 $4,682,606
Net income $1,258,915 $504,181 $3,454,707 $1,682,607
Basic and diluted
earnings per share $.17 $.08 $.46 $.26
Diluted shares
outstanding 7,571,162 6,553,599 7,565,514 6,552,267
Twelve Months Ended
December 31, December 31,
1998 1997
Net sales $51,526,972 $40,405,345
Gross profit $22,160,116 $15,186,520
Selling, general and
administrative exp. $12,207,213 $9,613,212
Net income $4,818,544 $2,613,987
Basic and diluted
earnings per share $.68 $.40
Diluted shares
outstanding 7,067,354 6,602,700
The Company has scheduled a conference call for 10:30 a.m. (EST) today to comment on earnings for the first quarter and answer questions. To participate in this conference call, please call (888) 886-7043.
Certain statements in this News Release constitute ''forward-looking'' statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Craftmade International, Inc. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors are discussed in more detail in the Company's Form 10-K filing with the Securities and Exchange Commission.
Craftmade International, Inc. is engaged in the design, distribution and marketing of ceiling fans, light kits and accessories manufactured to its specifications. The Company currently markets over 148 basic models of ceiling fans, 78 lighting fixture models and over 100 interchangeable pieces of crystal and glass under its Craftmade brand and 14 series of bathstrip lighting under its Accolade tradename to more than 1,500 retail outlets with no outlet representing more than 2% of this division's sales. The Company's wholly-owned subsidiary, Trade Source International, Inc., is engaged in the design, distribution and marketing of outdoor lighting fixtures to major retail home improvement chains, including Lowe's, Home Depot and Wal-Mart.
SOURCE: Craftmade International, Inc.
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