Business News

Crown Crafts, Inc. Reports Results for First Quarter of Fiscal Year 2009

Wednesday 13. August 2008 - Reaffirms Revenue and Earnings Guidance for Fiscal Year 2009

Crown Crafts, Inc. (the “Company”) (NASDAQ:CRWS) today reported net income for the first quarter of fiscal year 2009 and reaffirmed revenue and earnings guidance for fiscal year 2009.

Historical Results

Net income for the first quarter of fiscal year 2009 was $619,000, or $0.06 per diluted share, on net sales of $19.8 million compared to net income for the first quarter of fiscal year 2008 of $985,000, or $0.10 per diluted share, on net sales of $15.4 million.

“We are very pleased with the increase in sales of 28.6%,” commented E. Randall Chestnut, Chairman, President and Chief Executive Officer of the Company. “Profitability decreased year-over-year primarily as a result of an unfavorable change in the over-absorption of overhead of $475,000, which should reverse itself over the remaining quarters of the fiscal year. Additionally, the Company incurred approximately $425,000 of acquisition-related amortization expense in the current year associated with the Springs Global acquisition in the third quarter of fiscal year 2008. The Company’s EBITDA (earnings before interest and taxes plus depreciation and amortization) without giving effect to the change in overhead absorption was $1.8 million in both the current and prior year.” Mr. Chestnut continued.

FY 2009 Guidance

The Company also reaffirmed its 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.