Craftmade International Announces Sales and Earnings Results for Its Fiscal 2002 Second Quarter and First Six Months
TUESDAY, JANUARY 22, 2002 8:00 AM
- PRNewswire
- Earnings Exceed Consensus Estimates -
COPPELL, Texas, Jan. 22 /PRNewswire-FirstCall/ -- Craftmade International, Inc. (CRFT) today reported that net income rose 39.8% to $1,120,000 for its fiscal 2002 second quarter ending December 31, 2001, compared to net income of $801,000 for the second quarter of fiscal 2001. On a fully diluted basis, the company reported net income per share of $0.19 for the quarter compared to earnings per share of $0.14 for the corresponding period a year ago. The result was $0.02 ahead of the analysts' consensus estimate of $0.17 per share for the quarter. Fully diluted shares outstanding for the three-month period were 5,989,000 compared to 5,916,000 for the same period last year.
"We are pleased by the strong performance and profit momentum of both divisions of our company," said James R. Ridings, Craftmade's Chairman and Chief Executive Officer. "Strong cash generation and lower capital spending enabled us to reduce debt by $5.1 million or approximately 20% of the outstanding balance on notes payable during the quarter. Additionally, we are pleased with the growing success of our proprietary merchandising display system, which is attracting the attention of other mass retailers."
Total sales from the mass retail division increased by $3,600,000, or 45.6%, to $11,496,000 for the quarter ended December 31, 2001, compared to $7,896,000 in the prior year period. The increase was primarily attributable to sales generated by Design Trends, the Company's 50% owned subsidiary, which introduced a new line of portable lamps and shades in March 2000. The continued roll out of this new product generated $3,512,000 in incremental revenue during the quarter. Sales from the showroom division increased $436,000, or 3.9%, to $11,549,000 for the quarter ended December 31, 2001 from $11,113,000 in the same three-month period last year.
For the six months ended December 31, 2001, revenues increased 27.4% or $11,788,000 to $54,804,000 from $43,016,000 for the same period last year. Net income for the six-month period was $3,077,000, or $0.51 per diluted share, compared to $2,225,000, or $0.37 per diluted share, for the year-ago period.
Gross profit as a percentage of sales for the three months ended December 31, 2001, declined to 32.1% from 32.8% in the same period last year. Gross margin from the Craftmade division increased to 39.7% of sales from 37.9% in the year ago period and was partially attributable to price concessions the Company negotiated with its ceiling fan vendor, which have, in part, been passed on to customers. The improvement in the exchange rate of the U.S. dollar relative to the Taiwanese dollar that occurred during the twelve months ended December 31, 2001, also had a favorable impact on the gross margin of the showroom division. This improvement was partially offset by an inventory write down of certain SKUs of bathstrip and outdoor lighting products in the amount of $200,000, or $0.02 per share, net of taxes.
The gross margin of the mass retail division declined to 24.5% of sales for the three months ended December 31, 2001 compared to 25.5% in the year ago period. The decline in gross margin was related to a shift in the sales mix, with a greater portion of revenue being generated by Design Trends' business, which carries a lower gross margin than the overall average of the mass retail division.
Selling, general and administrative expenses decreased to 19.5% of net sales for the second quarter of fiscal 2002, from 20.1% of net sales for the same period last year. The improvement was primarily due to sales increases in the mass retail division, which helped to leverage down fixed SG&A expenses.
"We believe that our financial position remains strong," continued Mr. Ridings. "We expect to continue to build upon the momentum of our strong year-over-year performance, and we currently expect to have earnings of approximately $0.15 per share for the quarter ending March 31, 2002, and earnings in the range of $0.34 to $0.36 per share for the quarter ending June 30, 2002. We expect these amounts would result in estimated earnings for full fiscal year 2002 in the range of $1.00 to $1.02," he concluded.
Three Months Ended Six Months Ended
December 31, December 31,
2001 2000 2001 2000
(In thousands, except per share data)
Net Sales $23,045 $19,009 $54,804 $43,016
Gross profit 7,396 6,228 16,147 13,514
Selling, general and
administrative expenses 4,484 3,818 9,009 7,671
Net income 1,120 801 3,077 2,225
Diluted
earnings per share $0.19 $0.14 $0.51 $0.37
Diluted shares
Outstanding 5,989 5,916 5,982 5,986
A conference call to discuss the company's performance during its fiscal 2002 second quarter, as well as the company's outlook, is scheduled for Tuesday, January 22, at 10:00 a.m. Central Time. To participate in this call, dial (913) 981-5510 and refer to confirmation code 689614. A replay of the conference call can also be accessed via the company's Web site at www.craftmade.com .
Craftmade International, Inc., founded in 1985 and based in Coppell, Texas, is engaged in the design, distribution and marketing of a broad range of proprietary ceiling fans, lighting products and related accessories. The company distributes its premium products through a network of 1,600 showrooms and electrical wholesalers through a national sales organization of more than 65 independent sales representatives. Through its Trade Source International subsidiary, acquired in 1998, Craftmade distributes outdoor lighting, ceiling fan accessories and an indoor lighting line to the mass merchandiser market, which includes Lowe's, Home Depot and Wal-Mart.
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.
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SOURCE Craftmade International, Inc.
CONTACT: Kathy Oher, Chief Financial Officer of Craftmade International,
Inc., +1-972-393-3800, ext. 166, or Investorrelations@craftmade.com ; or Hala
Aly of Halliburton Investor Relations, +1-972-458-8000, or
haly@halliburtonir.com , for Craftmade International, Inc.
/Company News On-Call: prnewswire.com
URL: craftmade.com
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