Were it not for a $850,000 settlement with a Minneapolis firm last year over a patent dispute and a subsequent $530,000 after-tax charge related to it, Gonzales-based Crown Crafts would have closed out fiscal year 2015 with an 8.3% rise in net income.
Instead, the baby and children products company says in an earnings report released today, Crown Crafts saw its net income for fiscal year 2015 dip to $5.7 million, or $0.57 per diluted shares, down from net income of $5.8 million, or $0.59 per diluted share, during fiscal year 2014.
“Excluding [the $530,000] charge, net income for fiscal 2015 would have been $6.2 million, or $0.62 per diluted share, up 8.3% from the year earlier,” the report says.
Crown Crafts ended the latest fiscal year, which ended March 29, on a high note. During the fiscal fourth quarter, the company posted an 8.7% increase in net sales compared to the same quarter a year previous. Net sales for fiscal year 2015 were up a total of 5.8% over fiscal year 2014 sales.
“Our strong performance is a result of a number of factors, including business placements which solidified our position as a market leader,” Crown Craft chairman, CEO and president E. Randall Chestnut says in a prepared statement. “Once again, we finished the year with no debt, and our cash balances increased to $1.8 million from $560,000 at the end of fiscal year 2014.”
Crown Crafts designs, markets and distributes infant, toddler and juvenile consumer products, and is among the country’s largest producers of infant bedding, bibs and bath items. The company’s operating subsidiaries consist of Crown Crafts Infant Products Inc. in California and Hamco Inc. in Louisiana.
Crown Crafts and Minneapolis-based BreathableBaby jointly announced the $850,000 settlement regarding a patent infringement suit over mesh crib liners, originally filed in January 2012, on Dec. 9 last year.
See the complete earnings report.
—Steve Sanoski
