Craftmade International Announces Fiscal Year Results: Sales and Earnings Increase Sharply
SUMMARY OF RESULTS: -- The most profitable year in the company's history as net income almost doubled. -- Net income per share on a fully diluted basis increased to 76 cents compared to 46 cents after giving effect to a three for two stock split. -- Revenue more than doubled fiscal 1998's. -- Revenue excluding acquisition increased almost 20% over last year. -- Net income excluding major acquisition increased almost 50% from the prior year.
COPPELL, Texas, Sept. 14 /PRNewswire/ -- Craftmade International, Inc. (Nasdaq: CRFT - news) today reported audited financial results for its fiscal year ended June 30, 1999.
For the year, revenues more than doubled to $85.0 million from $41.0 million in fiscal 1998. Net income for the year climbed 87 percent to $5.7 million from net income of $3.0 in fiscal 1998. Net income per share for the year increased 65 percent to 76 cents from 46 cents a year ago.
For the fourth quarter, revenues more than doubled to $22.5 million from $11.2 million in the fourth quarter of last year. Net income rose to $945,760, or 13 cents a share, compared with net income of $876,704, or 13 cents a share, for the same period last year.
Net income per share and diluted shares outstanding have been adjusted to reflect the three-for-two stock split effective November, 1998.
``Our core business, the fan division, continues to generate strong growth and provided a nearly 20% increase in sales for the year and fourth quarter. These results represent the third quarter in a row with this kind of percentage increase,' stated James R. Ridings, President and Chief Executive Officer. ``We expect to see continued improvement in both the sales to the showrooms and mass merchandisers as we further implement our cross-marketing efforts in fiscal 2000.'
``Our gross profit nearly doubled to $30.3 million,' said Mr. Ridings. ``On the expense side, Selling General & Administrative expenses improved to 21 percent of net sales from 25 percent a year ago. The balance sheet remains strong with a current ratio of 1.68:1 and the company has incurred positive cash flow from operations of $5.9 million.
``The TSI acquisition continues to provide us not only immediate benefits, adding more than $35 million in sales and about $1 million in income, but also future growth opportunities,' continued Mr. Ridings. ``We expect TSI to continue its internal growth and that at the corporate level we should experience greater levels of efficiencies going forward now that we have fully integrated TSI's operations.'
``We believe we have positioned Craftmade to grow as an industry leader and to continue to gain market share with our existing product lines,' concluded Mr. Ridings. ``In addition, we are currently pursuing new avenues for product and market expansion to ensure years of continued growth.'
The company has scheduled a conference call for 2:00 p.m. (EST) today to comment on earnings for the fourth quarter and year end and answer questions. To participate in this conference call, please call 800-275-3210 at least five minutes prior to the start of the conference call.
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 two dozen fan designs, nearly eighty lighting fixture models and over one hundred interchangeable pieces of crystal and glass under its Craftmade brand and nearly two dozen styles of bathstrip lighting and over forty designs of outdoor lighting under its Accolade tradename to more than 1,600 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.
For additional information on Craftmade International, Inc. free of charge via the internet, please go to tirc.com .
SOURCE: Craftmade International, Inc.
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