Craftmade International Announces Year End Results Earnings Exceed AnalystsEstimates
Wed Aug 16 07:49:00 EDT 2000
COPPELL, Texas, Aug 16, 2000 /PRNewswire via COMTEX/ -- Craftmade
International, Inc. (Nasdaq: CRFT) today reported financial results for its
fourth quarter and year ended June 30, 2000.
For the year, revenues increased slightly to $85.5 million from $85.0 million in
1999. Net income exceeded analyst expectations at $4.3 million, or 63 cents a
share, compared to net income of $5.7 million, or 76 cents a share, a year ago.
Fully diluted shares outstanding for the year were 6,781,000 compared to
7,535,000 at the year ended June 30, 1999.
For the quarter, revenues climbed 12 percent to $25.3 million from $22.5 million
during the same period a year ago. Net income surpassed analysts estimates by
rising 50 percent to $1.4 million, or 23 cents a share, compared to $946,000, or
13 cents a share, during the 1999 fourth quarter. Fully diluted shares for the
quarter were 6,259,000 compared to 7,442,000 for the year ago quarter.
"This past year was a challenging year for Craftmade, however we are encouraged
by the sales and earnings increases during the fourth quarter," said James R.
Ridings, Craftmade International's Chairman and CEO.
"During the year, we have begun to see the benefits of our cross-selling efforts
of TSI's outdoor lighting products through our showroom distribution network.
For the year, TSI products sold through the showrooms increased more than double
to $2.2 million compared to $850,000 in 1999. Also, we experienced an 8.5
percent increase in fan sales," continued Mr. Ridings.
"Gross profit for the year as a percentage of sales decreased 70 basis points to
34.9 percent or $29.9 million from 35.6 percent of sales or $30.3 million. This
decrease is largely due to sales credits given to mass retailers to clear slower
moving merchandise earlier in the year. Our fourth quarter gross margin improved
from 34.8 percent of sales to 36.4 percent and we anticipate that going forward
our gross margin should remain at that level or above. The strength of our
balance sheet during the year allowed us to repurchase nearly 16 percent of the
outstanding shares as well as raise the quarterly dividend to four cents a
share. Working capital remains strong at $11.0 million with the current ratio at
1.5:1," noted Mr. Ridings.
"Management is encouraged about the outlook for 2001 and believe we can build
upon the momentum re-gained during the fourth quarter. We had expected to begin
a roll-out of products from Design Trends, our 50 percent owned subsidiary,
during the second half of the year. This roll-out should have a positive impact
on both sales and earnings during the coming year. Also, we believe further
double digit growth is attainable from our cross-selling opportunities of TSI
products through the company's showroom distribution network," Mr. Ridings
concluded.
Three Months Ended Twelve Months Ended
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
Net sales $25,342,000 $22,520,000 $85,499,000 $84,986,000
Gross profit $9,228,000 $7,835,000 $29,859,000 $30,295,000
Selling, general
and administrative
exp. $5,849,000 $5,429,000 $19,329,000 $18,222,000
Net income $1,419,000 $946,000 $4,280,000 $5,689,000
Basic and diluted
earnings per share $.23 $.13 $.63 $.76
Diluted shares
outstanding 6,259,000 7,442,000 6,781,000 7,535,000
The company has scheduled a conference call for 11:00 a.m. (EST) today to
comment on earnings for the quarter and answer questions. To participate in this
conference call, please call (888) 868-9080 at least five minutes prior to the
start of the conference call, or listen to the call on the web at:
tirc.com
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.
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.
CONTACT: Investor Relations at Craftmade International, 972-393-3800,
ext. 166, email, investorrelations@craftsmade.com; or Tom Laughran or Brian
Gately of The Investor Relations Company, 847-564-5610
URL: tirc.com
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