2024 Q2 Form 10-K Financial Statement

#000143774924021478 Filed on June 28, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2024 Q1 2024
Revenue $16.21M $22.58M $87.63M
YoY Change -24.99% 18.81% 16.76%
Cost Of Revenue $12.25M $17.35M $64.63M
YoY Change -27.5% 19.68% 17.03%
Gross Profit $3.966M $5.228M $23.00M
YoY Change -16.03% 16.02% 16.0%
Gross Profit Margin 24.46% 23.15% 26.25%
Selling, General & Admin $4.263M $3.766M $16.11M
YoY Change 16.99% 37.35% 27.26%
% of Gross Profit 107.49% 72.04% 70.02%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $184.0K $338.0K $835.0K
YoY Change -40.45% 19.01% 21.37%
% of Gross Profit 4.64% 6.47% 3.63%
Operating Expenses $4.263M $3.916M $16.11M
YoY Change 13.26% 42.82% 27.26%
Operating Profit -$297.0K $1.312M $6.895M
YoY Change -130.97% -25.62% -3.88%
Interest Expense -$101.0K -$174.0K -$734.0K
YoY Change -234.67% -3580.0% -1006.17%
% of Operating Profit -13.26% -10.65%
Other Income/Expense, Net $12.00K $18.00K $9.000K
YoY Change -7.69% -1900.0% -93.38%
Pretax Income -$386.0K $1.156M $6.228M
YoY Change -136.87% -34.62% -16.13%
Income Tax -$64.00K $152.0K $1.334M
% Of Pretax Income 13.15% 21.42%
Net Earnings -$322.0K $1.004M $4.894M
YoY Change -138.89% -25.52% -13.38%
Net Earnings / Revenue -1.99% 4.45% 5.58%
Basic Earnings Per Share -$0.03 $0.48
Diluted Earnings Per Share -$0.03 $0.10 $0.48
COMMON SHARES
Basic Shares Outstanding 10.31M 10.24M 10.21M
Diluted Shares Outstanding 10.31M 10.21M

Balance Sheet

Concept 2024 Q2 2024 Q1 2024
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.103M $829.0K $829.0K
YoY Change -36.68% -73.05% -52.41%
Cash & Equivalents $1.103M $829.0K $829.0K
Short-Term Investments
Other Short-Term Assets $1.503M $1.883M $1.883M
YoY Change -6.88% 25.45% 16.67%
Inventory $30.60M $29.70M $29.71M
Prepaid Expenses $1.503M $1.883M
Receivables $15.80M $22.40M $18.58M
Other Receivables $4.598M $3.819M $3.819M
Total Short-Term Assets $49.04M $54.82M $54.82M
YoY Change -18.78% 11.36% -9.19%
LONG-TERM ASSETS
Property, Plant & Equipment $1.806M $1.656M $16.61M
YoY Change 5.06% 26.22% -12.72%
Goodwill $7.900M $7.900M
YoY Change 0.0% 11.27%
Intangibles $2.724M $2.872M
YoY Change -21.57% 25.25%
Long-Term Investments
YoY Change
Other Assets $213.0K $202.0K $479.0K
YoY Change 13.3% 134.88% 154.79%
Total Long-Term Assets $27.32M $27.88M $27.88M
YoY Change -10.71% 129.75% -8.87%
TOTAL ASSETS
Total Short-Term Assets $49.04M $54.82M $54.82M
Total Long-Term Assets $27.32M $27.88M $27.88M
Total Assets $76.36M $82.71M $82.71M
YoY Change -16.06% 34.77% -9.09%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $6.727M $4.502M $4.502M
YoY Change -10.88% -29.56% -40.36%
Accrued Expenses $5.033M $5.116M $5.116M
YoY Change 7.22% 88.23% 8.99%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00
YoY Change
Total Short-Term Liabilities $12.62M $10.46M $10.46M
YoY Change -3.36% 5.43% -19.88%
LONG-TERM LIABILITIES
Long-Term Debt $1.466M $8.112M $8.112M
YoY Change -88.43% -35.99%
Other Long-Term Liabilities $11.62M $12.53M $12.53M
YoY Change -27.5% 402.28% -21.81%
Total Long-Term Liabilities $13.09M $20.64M $20.64M
YoY Change -54.41% 727.41% -28.07%
TOTAL LIABILITIES
Total Short-Term Liabilities $12.62M $10.46M $10.46M
Total Long-Term Liabilities $13.09M $20.64M $20.64M
Total Liabilities $25.70M $31.11M $31.11M
YoY Change -38.45% 150.5% -25.51%
SHAREHOLDERS EQUITY
Retained Earnings $8.255M $9.402M
YoY Change 6.13% 21.18%
Common Stock $58.22M $58.02M
YoY Change 1.69% 1.8%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $50.66M $51.60M $51.60M
YoY Change
Total Liabilities & Shareholders Equity $76.36M $82.71M $82.71M
YoY Change -16.06% 34.77% -9.09%

Cashflow Statement

Concept 2024 Q2 2024 Q1 2024
OPERATING ACTIVITIES
Net Income -$322.0K $1.004M $4.894M
YoY Change -138.89% -25.52% -13.38%
Depreciation, Depletion And Amortization $184.0K $338.0K $835.0K
YoY Change -40.45% 19.01% 21.37%
Cash From Operating Activities $8.013M $2.982M $7.084M
YoY Change 137.92% 74.18% -8.45%
INVESTING ACTIVITIES
Capital Expenditures $284.0K $124.0K $786.0K
YoY Change -31.4% -27.91% -3.32%
Acquisitions $0.00
YoY Change -100.0%
Other Investing Activities $0.00 $593.0K
YoY Change -103.68%
Cash From Investing Activities -$284.0K -$124.0K -$193.0K
YoY Change -98.28% -27.91% -98.86%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00
YoY Change -100.0%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$7.455M -2.712M -$7.804M
YoY Change -162.92% 236.48% -183.74%
NET CHANGE
Cash From Operating Activities $8.013M 2.982M $7.084M
Cash From Investing Activities -$284.0K -124.0K -$193.0K
Cash From Financing Activities -$7.455M -2.712M -$7.804M
Net Change In Cash $274.0K 146.0K -$913.0K
YoY Change -120.54% -80.11% -734.03%
FREE CASH FLOW
Cash From Operating Activities $8.013M $2.982M $7.084M
Capital Expenditures $284.0K $124.0K $786.0K
Free Cash Flow $7.729M $2.858M $6.298M
YoY Change 161.65% 85.58% -9.05%

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CY2024 us-gaap Nature Of Operations
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<p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><b><a href="#" id="notes" title="notes"></a>Crown Crafts, Inc. and Subsidiaries</b></p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt;"><b>Notes to Consolidated Financial Statements</b></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;"><b>Note <em style="font: inherit;">1</em> </b>–<b> Description of Business</b></p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; text-align: justify; margin: 0pt; text-indent: 36pt;">Crown Crafts, Inc. (the “Company”) was originally formed as a Georgia corporation in <em style="font: inherit;">1957</em> and was reincorporated as a Delaware corporation in <em style="font: inherit;">2003.</em> The Company operates indirectly through <em style="font: inherit;">four</em> of its wholly-owned subsidiaries, NoJo Baby &amp; Kids, Inc. (“NoJo”), Sassy Baby, Inc. (“Sassy”), Manhattan Group, LLC (“Manhattan”) and Manhattan Toy Europe Limited (“MTE”) in the infant, toddler and juvenile products segment within the consumer products industry. The infant, toddler and juvenile products segment consists of infant and toddler bedding and blankets, bibs, soft bath products, disposable products, developmental toys and accessories. Most sales of the Company’s products are generally made directly to retailers, such as mass merchants, large chain stores, mid-tier retailers, juvenile specialty stores, value channel stores, grocery and drug stores, restaurants, wholesale clubs and internet-based retailers. Manhattan also sells direct to consumer through its website, <span style="text-decoration: underline; ">www.manhattantoy.com</span>. The Company’s products are marketed under a variety of Company-owned trademarks, under trademarks licensed from others and as private label goods.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;text-indent:36pt;">The Company's fiscal year ends on the Sunday nearest to or on <em style="font: inherit;"> March 31. </em>References herein to “fiscal year <em style="font: inherit;">2024”</em> or <em style="font: inherit;">“2024”</em> represent the <em style="font: inherit;">52</em>-week period ended <em style="font: inherit;"> March 31, 2024, </em>and references herein to “fiscal year <em style="font: inherit;">2023”</em> or <em style="font: inherit;">“2023”</em> represent the <em style="font: inherit;">52</em>-week period ended <em style="font: inherit;"> April 2, 2023.</em></p>
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<p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;text-indent:36pt;"><i>Use of Estimates:</i> The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated balance sheets and the reported amounts of revenues and expenses during the periods presented on the consolidated statements of income and cash flows. Significant estimates are made with respect to:</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"><tbody><tr style="vertical-align: top;"><td style="width: 9pt;"> </td><td style="width: 18pt;"> <p style="font-family: 'Times New Roman', Times, serif;font-size: 10pt;font-variant:normal;margin:0pt;">●</p> </td><td style="width: auto;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; font-variant: normal; margin: 0pt; text-align: justify;">Allowances related to accounts receivable for expected credit losses and for customer deductions for returns, allowances and disputes,</p> </td></tr> </tbody></table> <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"><tbody><tr style="vertical-align: top;"><td style="width: 9pt;"> </td><td style="width: 18pt;"> <p style="font-family: 'Times New Roman', Times, serif;font-size: 10pt;font-variant:normal;margin:0pt;">●</p> </td><td style="width: auto;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; font-variant: normal; margin: 0pt; text-align: justify;">Inventory reserves for discontinued finished goods, and</p> </td></tr> </tbody></table> <table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"><tbody><tr style="vertical-align: top;"><td style="width: 9pt;"> </td><td style="width: 18pt;"> <p style="font-family: 'Times New Roman', Times, serif;font-size: 10pt;font-variant:normal;margin:0pt;">●</p> </td><td style="width: auto;"> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; font-variant: normal; margin: 0pt; text-align: justify;">A reserve for unrecognized tax liabilities in respect of the tax impact of state apportionment percentages.</p> </td></tr> </tbody></table> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;text-indent:36pt;">Actual results could differ materially from these estimates.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p>
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CY2024 us-gaap Concentration Risk Credit Risk
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<p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;text-indent:36pt;"><i>Credit Concentration:</i> The Company’s accounts receivable at <em style="font: inherit;"> March 31, 2024 </em>amounted to $22.4 million, net of allowances of $1.5 million. Of this amount, $18.6 million was due from CIT under the factoring agreements, which represents the maximum loss that the Company could incur if CIT failed completely to perform its obligations under the factoring agreements. The Company’s accounts receivable at <em style="font: inherit;"> April 2, 2023 </em>amounted to $22.8 million, net of allowances of $1.5 million. Of this amount, $20.7 million was due from CIT under the factoring agreements, which represents the maximum loss that the Company could have incurred if CIT had failed completely to perform its obligations under the factoring agreements.</p> <p style="font-family:'Times New Roman';font-size:10pt;font-variant:normal;margin:0pt;"> </p>
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