Business News

Crown Crafts, Inc. Reports Results for Fourth Quarter and Fiscal Year 2008; Provides Revenue and Earnings Guidance for Fiscal Year 2009

Thursday 12. June 2008 - Crown Crafts, Inc. (the "Company") (NASDAQ:CRWS) today reported net income for the fourth quarter of fiscal year 2008 and for the full fiscal year and provided revenue and earnings guidance for fiscal year 2009.

Historical Results

Net income for fiscal 2008 was $4.4 million, or $0.43 per diluted share, on net sales of $74.9 million compared to net income for fiscal year 2007 of $3.9 million (excluding a gain on refinancing, net of taxes, of $3.7 million), or $0.39 per diluted share, on net sales of $69.2 million.

Net income for the fourth quarter of fiscal year 2008 was $1.6 million, or $0.16 per diluted share, on net sales of $24.0 million compared to net income for the fourth quarter of fiscal year 2007 of $0.7 million, or $0.07 per diluted share, on net sales of $17.2 million, increases of 39% in net sales and 122% in net income.

“Fiscal year 2008 has been a very rewarding year. Net sales increased $5.6 million, or 8.1%, over fiscal year 2007. Much of this increase is related to the acquisition of the baby product line from Springs Global in November 2007, which we are proud to say has proven to be a great strategic addition,” commented E. Randall Chestnut, Chairman, President and Chief Executive Officer of the Company. “Although the year had its challenges, the Company has met them head on and prospered. Adjusted for non-recurring charges, the Company’s EBITDA (income before interest and taxes plus depreciation and amortization) as a percentage of net sales for the past two years has been the highest in this decade — an impressive 12.0%,” Mr. Chestnut continued.

During the fourth quarter of fiscal year 2008, the Company repurchased 337,439 shares of common stock for approximately $1.2 million, including broker fees, at an average price per share, excluding fees, of $3.59. Year-to-date the Company has repurchased 562,647 shares, or 5.6% of its outstanding common stock, for approximately $2.1 million including broker fees at an average price per share, excluding fees, of $3.66.

FY 2009 Guidance

The Company also provided 2009 revenue, EBITDA and EPS guidance. The Company expects net revenues for fiscal year 2009, which ends March 29, 2009, to be in the range of $90.0 million to $93.0 million. In addition, the Company expects EBITDA for fiscal year 2009 to be in the range of $10.2 million, or 11.3% of net sales, to $10.8 million, or 11.6% of net sales, and diluted earnings per share to be in the range of $0.41 to $0.46.