Craftmade International, Inc. Announces Record Third Quarter Earnings Increase of 165%
SUMMARY OF RESULTS: -- Net income increased 165% for most profitable quarter in Company's history. -- Earnings per share on a fully diluted basis increased 143% to $0.17 vs. $0.07 for same period last year, after giving effect to the three for two stock split. -- Revenue for nine months 53% more than that of entire fiscal 1998. -- Net income for nine months 56% more than that of entire fiscal 1998.
COPPELL, Tex., April 27 /PRNewswire/ -- Craftmade International, Inc. (Nasdaq: CRFT - news) citing record profitability today reported net income of $1,288,637 for the three months ended March 31,1999, representing a 165% increase, compared with net income of $487,133 for the same three months last year. For the nine months ended March 31, 1999, net income rose 119% to $4,743,344 compared with net income of $2,169,740 for the same nine months last year.
Earnings per share on a fully diluted basis for the quarter increased 143% to 17 cents from 7 cents for the same three months last year. For the nine months, earnings per share on a fully diluted basis increased 91% to 63 cents from 33 cents for the same nine months a year ago. Earnings per share and diluted shares outstanding data have been restated to reflect the three-for- two stock split effective November 1998.
Net income and earnings per share rose as a result of a 132% increase in net sales for the quarter, from $9,189,898 last year to $21,304,598 this year, and a 110% increase in net sales for the nine months, from $29,727,351 last year to $62,466,436 this year.
''We achieved a 24% increase in sales from our fan division for the quarter and a 16% increase for the nine months,'' stated James R. Ridings, President and Chief Executive Officer. ''We continue to gain market share by being an industry leader in product design and customer service. With our market strength, combined with a stable housing market, we see the opportunity for growth consistent with current levels.''
''Our acquisition of TSI has been an incredible success,'' continued Mr. Ridings. ''In addition to the $28 million in sales and $1.5 million in income this division has provided for the nine months, we began to see the tremendous potential of cross-marketing between the two companies during the third quarter of this year as our showrooms incorporated TSI's outdoor lighting into their buying programs.''
''We are on track to meet or exceed analysts' concensus estimates for fiscal 1999,'' concluded Mr. Ridings. ''More importantly, we have positioned the company for years of substantial growth.''
Three Months Ended Nine Months Ended
March 31, March 31, March 31, March 31,
1999 1998 1999 1998
Net sales $21,304,598 $9,189,898 $62,466,436 $29,727,351
Gross profit $8,461,085 $3,650,254 $22,461,699 $11,815,389
Selling, general
and admini-
strative exp. $5,963,673 $2,509,707 $12,792,742 $7,192,313
Net income $1,288,637 $487,133 $4,743,344 $2,169,740
Basic and diluted
earnings per share $.17 $.07 $.63 $.33
Diluted shares
outstanding 7,565,751 6,564,299 7,565,593 6,555,914
Twelve Months Ended
March 31, March 31,
1999 1998
Net sales $73,641,672 $40,935,264
Gross profit $26,970,947 $15,631,890
Selling, general and
administrative exp. $15,661,179 $9,769,456
Net income $5,620,048 $2,841,915
Basic and diluted
earnings per share $.77 $.43
Diluted shares
outstanding 7,317,717 6,571,748
The Company has scheduled a conference call for 10:30 a.m. (EST) today to comment on earnings for the third quarter and answer questions. To participate in this conference call, please call 800-865-4460 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 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.
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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