Boosted by a 1.3% rise in sales during the second quarter of the fiscal year that closed on Sept. 27, Gonzales-based baby products manufacturer and distributor Crown Crafts says its quarterly net income nearly doubled to $1.6 million, or 16 cents per share, up from $830,000, or 8 cents per share, during the same quarter last year.
Net sales for the company totaled $20.7 million during the quarter, up from $20.4 million last year. However, the company was also hit by $204,000 in legal fees and an after-tax payment of $530,000 stemming from a 2015 settlement with Minneapolis-based BreathableBaby over a patent infringement suit over mesh crib liners.
Halfway through the fiscal year, Crown Crafts reports net income of $2.5 million on net sales of $38.6 million, compared to net income of $1.5 million on sales of $36.1 million during the first six months of last fiscal year. Randall Chestnut, chairman, president and CEO of Crown Crafts, notes it has been 20 years since the company made its first acquisition in the infant and toddler bedding industry.
“And we have been a leader and strong performer in that industry ever since,” Chestnut says in a prepared release accompanying the quarterly report. “Continuing this trend, we achieved solid improvement profitability for the quarter and continued to be debt-free with a strong cash balance.”
The company reported a cash balance of $6.1 million at the end of the second quarter. See the complete report.
—Steve Sanoski
