In This Story
Crown Crafts, Inc. has submitted its 10-Q filing for the quarterly period ended September 29, 2024.
The filing includes financial statements for the quarter, showing an increase in net sales to $24.5 million from $24.1 million in the same quarter the previous year. This increase is attributed to the acquisition of Baby Boom Consumer Products, Inc.
Sales of bedding and diaper bags increased by $2.2 million, while sales of bibs, toys, and disposable products decreased by $1.9 million. The decrease in sales of bibs, toys, and disposable products is due to the loss of a program at a major retailer.
Gross profit increased to $6.957 million from $6.596 million, representing 28.4% of net sales compared to 27.3% in the previous year. The increase is attributed to minor changes in product mix.
Marketing and administrative expenses increased to $5.448 million from $4.036 million, primarily due to acquisition costs and increased marketing expenses associated with the acquisition.
Net income for the quarter was $860,000, down from $1.822 million in the previous year. The decrease is attributed to higher marketing and administrative expenses.
Net cash provided by operating activities increased to $7.030 million from $4.650 million, primarily due to changes in accounts payable and accrued liabilities.
Net cash used in investing activities was $16.830 million, up from $51,000, due to the acquisition of Baby Boom Consumer Products, Inc.
Net cash provided by financing activities was $10.953 million, compared to $4.490 million used in the previous year, primarily due to borrowings under the revolving line of credit and a term loan.
The company maintains a revolving line of credit of up to $40 million with CIT, with $13.1 million outstanding as of September 29, 2024.
The company continues to assign the majority of its trade accounts receivable to CIT under factoring agreements to reduce credit losses.
The filing also discusses market risks, including interest rate risk, commodity rate risk, and market concentration risk, with the company's two largest customers accounting for 61% of gross sales.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Crown Crafts Inc. quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.