Craftmade International Announces Higher Sales and Earnings Results for Its Fiscal 2002 Third Quarter and Nine Months
- Earnings Rose 42.5% on a 12.6% Increase in Revenues -
COPPELL, Texas, Apr 23, 2002 /PRNewswire-FirstCall via COMTEX/ -- Craftmade International, Inc. (Nasdaq: CRFT chart, msgs) today reported higher operating results for its fiscal 2002 third quarter ending March 31, 2002. Net income rose 42.5% to $969,000, or $0.16 per diluted share, compared to net income of $680,000, or $0.12 per diluted share, in the year-ago period. Revenues for the quarter increased $2,476,000 to $22,134,000 from $19,658,000 for the same period last year. Fully diluted shares outstanding for the three-month period were 6,012,000 compared to 5,891,000 for the same period last year.
"We are pleased by the strong performance during our third quarter, particularly in the showroom division," said James R. Ridings, Craftmade's Chairman and Chief Executive Officer. "Our earnings growth was driven primarily by strong margin improvement from that distribution channel. Additionally, we continue to work on initiatives to freshen the product mix of our proprietary merchandising display system, which we expect will be implemented in the June through August 2002 timeframe. We believe these initiatives have the potential to increase the sales and margins of the mass retail division."
Sales from the showroom division increased $349,000, or 3.2%, to $11,375,000 for the quarter ended March 31, 2002 from $11,026,000 in the same three-month period last year. Total sales from the mass retail division increased by $2,127,000, or 24.6%, to $10,759,000 for the quarter ended March 31, 2002, compared to $8,632,000 in the prior year period. The increase was primarily attributable to sales generated by Design Trends, the Company's 50% owned subsidiary, which generated $3,169,000 in incremental revenue during the quarter.
For the nine months ended March 31, 2002, revenues increased by 22.8% or $14,263,000 to $76,937,000 from $62,674,000 for the same period last year. Net income for the nine-month period was $4,047,000, or $0.68 per diluted share, compared to $2,905,000, or $0.49 per diluted share, for the year-ago period.
Gross profit as a percentage of sales for the three months ended March 31, 2002, declined to 31.6% from 32.4% in the same period last year. Gross margin from the Craftmade division increased to 40.8% of sales from 38.2% in the year-ago period. This was partially attributable to price concessions the Company negotiated with its ceiling fan vendor that have, in part, been passed on to customers.
The gross margin of the mass retail division declined to 22% of sales for the three months ended March 31, 2002 compared to 25% 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 and lower selling, general and administrative expenses than other products in the mass retail division.
Selling, general and administrative expenses decreased to 20.2% of net sales for the third quarter of fiscal 2002, from 21.7% 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 these fixed expenses.
"We believe that our financial position remains strong," continued Mr. Ridings. "We remain comfortable with our previous statement that we believe our fiscal 2002 earnings will be in the range of $1.00 to $1.02. Based on current conditions, we believe we can achieve fiscal year 2003 earnings growth of 18% to 20% driven primarily by strong margin improvement in the showroom division. In evaluating industry opportunities, we continue to be optimistic about the potential for the company to enter into strategic alliances or make acquisitions that would complement our internal growth strategies," he concluded.
Three Months Nine Months
Ended Ended
March 31, March 31,
2002 2001 2002 2001
(In thousands, except per share data)
Net Sales $22,134 $19,658 $76,937 $62,674
Gross profit 7,005 6,373 23,152 19,887
Selling, general
and administrative
expenses 4,479 4,264 13,489 11,936
Net income 969 680 4,047 2,905
Diluted
earnings per share $0.16 $0.12 $0.68 $0.49
Diluted shares
Outstanding 6,012 5,891 5,992 5,956
A conference call to discuss the company's performance during its fiscal 2002 third quarter, as well as the company's outlook, is scheduled for Tuesday, April 23, at 10:00 a.m. Central Time. To participate in this call, dial (913) 981-5558 and refer to confirmation code 391784. 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 filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
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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 |
