Crown Crafts Inc (CRWS) 2024 Q1 法說會逐字稿

Hello, and welcome to the Crown Crafts, Inc. First Quarter FY 2024 Conference Call. (Operator Instructions) Please note, today's event is being recorded. I would now like to turn the conference over to John Beisler, Investor Relations. Please go ahead.

您好，歡迎參加 Crown Crafts, Inc. 2024 財年第一季電話會議。 （操作員說明）請注意，今天的活動正在錄製中。我現在想將會議交給投資者關係部的約翰‧貝斯勒 (John Beisler)。請繼續。

Thank you, operator, and good morning, everyone. We appreciate you joining us for the Crown Crafts' First Quarter Fiscal 2024 Conference Call. Joining me on the call today are Crown Crafts' President and CEO, Olivia Elliott, and the company's CFO, Craig Demarest.

謝謝接線員，大家早安。我們感謝您參加 Crown Crafts 2024 財年第一季電話會議。今天和我一起參加電話會議的還有 Crown Crafts 的總裁兼執行長 Olivia Elliott 和公司的財務長 Craig Demarest。

Earlier this morning, Crown Crafts filed its 10-Q and issued a press release regarding their first quarter fiscal '24 financial results. A copy of this release is available on the company's website, crowncrafts.com. During today's call, the company will make certain forward-looking statements and actual results may differ materially from those expressed or implied. These statements are subject to risks and uncertainties that may be beyond Crown Crafts control and the company is under no obligation to update these statements. For more information about the company's risk factors and other uncertainties, please refer to the company's filings with the Securities and Exchange Commission.

今天早些時候，Crown Crafts 提交了 10-Q 財報，並發布了有關 24 年第一季財務業績的新聞稿。新聞稿的副本可在該公司網站 Crowncrafts.c​​om 上取得。在今天的電話會議中，該公司將做出某些前瞻性陳述，實際結果可能與明示或暗示的結果有重大差異。這些聲明存在可能超出 Crown Crafts 控制範圍的風險和不確定性，公司沒有義務更新這些聲明。有關公司風險因素和其他不確定性的更多信息，請參閱公司向美國證券交易委員會提交的文件。

Finally, I would like to remind you today's call is being recorded, and a replay will be available through the company's Investor Relations page. Now I would like to turn the call over to the President and CEO of Crown Crafts, Olivia Elliott.

最後，我想提醒您今天的電話會議正在錄音，並且可以透過公司的投資者關係頁面進行重播。現在我想將電話轉給 Crown Crafts 的總裁兼執行長 Olivia Elliott。

Thank you, John, and good morning, everyone. I would first like to thank our entire team for their resiliency as we reported another profitable quarter despite the multiple headwinds impacting our business. We also completed our first full quarter integrating Manhattan Toy, and we'll share our progress with you a little bit later. Our results for the first quarter of fiscal 2024 reflect the ongoing challenges facing the consumer. Food and housing costs continue to run above the overall inflation rate and gasoline prices have begun to rise again.

謝謝約翰，大家早安。我首先要感謝我們整個團隊的韌性，儘管我們的業務受到多重不利因素的影響，但我們仍報告了另一個獲利季度。我們還完成了曼哈頓玩具的第一個完整季度的整合，稍後我們將與您分享我們的進展。我們 2024 財年第一季的業績反映了消費者面臨的持續挑戰。食品和住房成本持續高於整體通膨率，汽油價格已開始再次上漲。

All of these items continue to limit the amount of discretionary income available to consumers causing them to either purchase fewer items or trade down to lower-priced products. Retailers are also carrying less inventory, in some cases, going from 10 weeks of product on hand to 6. Additionally, the recent closure of all Buy Buy Baby stores has left the marketplace without a national brand with brick-and-mortar locations to sell higher-end company branded infant bedding.

所有這些物品繼續限制消費者可獲得的可自由支配收入，導致他們要么購買更少的物品，要么轉而購買價格較低的產品。零售商的庫存也減少了，在某些情況下，庫存產品從 10 週減少到 6 週。此外，最近所有 Buy Buy Baby 商店的關閉導致市場上沒有一個全國性品牌可以在實體店進行銷售高端公司品牌嬰兒床上用品。

Although some of the prior Buy Buy Baby locations are reopening under a different brand, and the Babies "R" Us brand has been revised, they are both in the very early stages and represent a small fraction of the locations both of these brands previously operated. As a result, we believe that specialty retailers will be a key player to fill the existing void. We are responding to these ongoing challenges by further strengthening relationships with current customers and implementing cost reduction initiatives across our business. Lastly, we paid our regular quarterly dividend, which is a testament to our long-term commitment to drive shareholder value.

儘管之前的一些 Buy Buy Baby 門市正在以不同的品牌重新開業，並且 Babies“R”Us 品牌也已進行了修訂，但它們都處於早期階段，僅佔這兩個品牌之前運營的門店的一小部分。因此，我們相信專業零售商將成為填補現有空缺的關鍵參與者。我們正在透過進一步加強與現有客戶的關係並在整個業務範圍內實施成本削減措施來應對這些持續的挑戰。最後，我們定期支付季度股息，這證明了我們推動股東價值的長期承諾。

With that, I would like to turn it over to Craig to cover the financials in more detail.

至此，我想將其交給克雷格，以更詳細地介紹財務狀況。

Thank you, Olivia. Good morning, everyone. Net sales for the first quarter of fiscal '24 increased 9% to $17.1 million compared to $15.7 million in the prior year quarter. The increase is primarily attributable to the addition of Manhattan Toy, which added $3.7 million in net sales to the current year quarter and more than offset reduced orders from our customers as a result of ongoing macroeconomic conditions as well as the closure of Buy Buy Baby stores, which accounted for approximately $1.4 million in sales in the prior year quarter.

謝謝你，奧莉維亞。大家，早安。 2024 財年第一季的淨銷售額成長 9%，達到 1,710 萬美元，而去年同期為 1,570 萬美元。這一成長主要歸因於曼哈頓玩具公司的加入，該公司本季的淨銷售額增加了 370 萬美元，遠遠抵消了由於持續的宏觀經濟狀況以及 Buy Buy Baby 商店關閉而導致的客戶訂單減少。 ，去年同期銷售額約140 萬美元。

Gross margin for the quarter was 27.7% compared to 32.8% in the first quarter of fiscal '23. The margin decrease was primarily attributable to the higher lease costs for our warehouse in California. Marketing and administrative expenses were $4 million versus $3.4 million in the prior year quarter. The increase is primarily driven by expenses of Manhattan Toy, including transaction costs of approximately $116,000, which were partially offset by lower compensation costs.

該季度的毛利率為 27.7%，而 2023 財年第一季的毛利率為 32.8%。利潤率下降主要是因為我們在加州倉庫的租賃成本較高。行銷和管理費用為 400 萬美元，去年同期為 340 萬美元。這一增長主要是由曼哈頓玩具的費用推動的，其中包括約 116,000 美元的交易成本，但部分被較低的補償成本所抵消。

Net income for the quarter was $366,000 or $0.04 per diluted share compared to net income of $1.4 million or $0.14 per diluted share in the prior year quarter. Turning to our balance sheet. Cash and cash equivalents at the end of the first quarter were $765,000 compared to $1.7 million at the end of fiscal '23, and borrowings on our revolver decreased from $12.7 million at the end of '23 to $6.5 million at the end of the first quarter.

本季淨利為 366,000 美元，即稀釋後每股收益 0.04 美元，而去年同期淨利潤為 140 萬美元，即稀釋後每股收益 0.14 美元。轉向我們的資產負債表。第一季末的現金和現金等價物為 765,000 美元，而 23 財年末的現金和現金等價物為 170 萬美元，我們的左輪手槍借款從 23 年末的 1270 萬美元減少到第一季末的 650 萬美元。

Finally, we paid our regular quarterly dividend of $0.08 per share and yesterday declared our next quarterly dividend, which will be paid in October. On an annualized basis, our shares currently offer a 6.6% yield based on yesterday's closing price. Now I will turn the call back over to Olivia for additional comments.

最後，我們支付了每股 0.08 美元的定期季度股息，並在昨天宣布了下一個季度股息，將於 10 月支付。以年化計算，根據昨天的收盤價，我們的股票目前的收益率為 6.6%。現在我將把電話轉回奧莉維亞以徵求更多意見。

Thank you, Craig. We made progress on a number of the strategic opportunities we identified last quarter with Manhattan Toy, including negotiating better pricing with vendors in China, and we have received positive initial feedback from customers on new products.

謝謝你，克雷格。我們在上個季度與曼哈頓玩具確定的許多策略機會上取得了進展，包括與中國供應商談判更優惠的價格，並且我們收到了客戶對新產品的積極初步反饋。

As Craig mentioned, Manhattan Toy added $3.7 million in sales for the quarter. As we noted on our last call, the March and June quarters are typically the slowest period for Manhattan Toy with an increase in the September quarter, peaking in the December quarter which has historically accounted for 35% to 40% of annual sales.

正如克雷格所提到的，曼哈頓玩具本季銷售額增加了 370 萬美元。正如我們在上次電話會議中指出的那樣，3 月和6 月季度通常是曼哈頓玩具公司成長最慢的時期，9 月季度的成長在12 月季度達到頂峰，該季度歷來佔年銷售額的35 % 至40%。

We believe the previously mentioned items, combined with expanding our sales channels and improved freight costs can lead Manhattan Toy to be accretive to earnings by the end of fiscal 2024. Our subsidiaries are collaborating together to share contacts and expand their reach as they pursue cross-selling and international opportunities. Finally, all of our subsidiaries will be displaying at the K + J Trade Show in Germany next month, where we will show some of our newer designs to the international markets. We will also be in attendance at the New York Toy Fair the first weekend in October.

我們相信，前面提到的項目，再加上擴大我們的銷售管道和改善貨運成本，可以使曼哈頓玩具到2024 財年末實現盈利增長。我們的子公司正在共同合作，共享聯繫方式並擴大其覆蓋範圍，以實現跨行業的目標。銷售和國際機會。最後，我們所有的子公司都將在下個月在德國舉行的 K + J 貿易展上展出，屆時我們將向國際市場展示我們的一些新設計。我們也將參加十月第一個週末的紐約玩具展。

Overall, we continue to proactively manage our business to address the ongoing, macroeconomic pressures and continue the integration of Manhattan Toy. We remain optimistic about the prospects of our company and look forward to updating you on our progress next quarter.

總體而言，我們將繼續積極管理我們的業務，以應對持續的宏觀經濟壓力，並繼續整合曼哈頓玩具。我們對公司的前景保持樂觀，並期待向您通報我們下個季度的最新進展。

With that, I'd like to open up the line for questions. Keith?

至此，我想開通提問專線。基思？

(Operator Instructions) All right. At this time, I would like to return the floor to Olivia Elliott for any closing comments.

（操作員指示）好的。現在，我想請奧利維亞·埃利奧特 (Olivia Elliott) 發言，徵求結束意見。

Thank you for your continued interest in our company. We will be participating in the Three Part Advisors IDEAS Conference in Chicago on August 23, and we look forward to speaking with you again when we report our second quarter results in November. Thank you.

感謝您對我們公司的持續關注。我們將於 8 月 23 日參加在芝加哥舉行的三部分顧問 IDEAS 會議，我們期待在 11 月報告第二季業績時再次與您交談。謝謝。

Thank you. The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect your lines.

謝謝。會議現已結束。感謝您參加今天的演示，您現在可以掛斷電話了。