Craftmade Board Authorizes 200,000 Share Buyback
PR Newswire - March 18, 1999 08:16
COPPELL, Texas, March 18 /PRNewswire/ -- Craftmade International, Inc. (Nasdaq: CRFT) today announced that its Board of Directors has authorized the company to buy back up to 200,000 shares of common stock. Under the terms of the plan, the company may repurchase shares from time to time in open market transactions.
"We have taken this action because we continue to believe the current price level of our stock does not reflect the company's true value," said James R. Ridings, president of Craftmade. "Based on our six month results, we don't feel the market has recognized our progress. We believe our stock is an excellent investment for the company and for our current shareholders."
"Any repurchased shares will be placed in treasury and could be used for potential acquisitions or other corporate uses," Mr. Ridings said. "Previously, management used repurchased treasury stock to help finance the Trade Source International acquisition. In 1995, Craftmade announced another stock repurchase plan. At that time the Board authorized a 800,000 share buyback, and the company eventually repurchased 409,000 shares, it was some of these shares were used in the Trade Source acquisition."
For the six month period ending December 31,1998, net sales were $41,161,838 in 1998, compared to $20,537,453 in 1997. Net income increased 105 percent to $3,454,707 in 1998 compared to net income of $1,682,607 in 1997. Net income per share increased 77% to $.46 from $.26 for the same six month period last year. The company reported having 7,571,162 fully diluted shares outstanding in its earnings report for the second fiscal quarter ended December 31, 1998. Earnings per share and diluted shares outstanding data have been restated to reflect the three-for-two stock split to holders of record at the close of business on October 30,1998, effective November 16, 1998.
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 more than 148 basic models of ceiling fans, 78 lighting fixture models and more than 100 interchangeable pieces of crystal and glass under its Craftmade(R) brand and 14 series of bathstrip lighting under its Accolade(TM) trade name to more than 1,500 retail outlets with no outlet representing more than two percent 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.
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 and 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.
SOURCE Craftmade International, Inc.
/CONTACT: Investor Relations for Craftmade International, 972-393-3800,
ext.166, e-mail, Investorrelations@craftmade.com; General Inquiries, Tom
Laughran, Senior Vice President, Analyst Inquiries, Brien Gately, Market
Intelligence, or Media Inquiries, Jim Berger, Senior Vice President, all of
The Investor Relations Company, 847-564-5610/
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