Crown Crafts Inc (CRWS) 2024 Q2 法說會逐字稿

Hello, and welcome to the Crown Crafts, Inc second quarter fiscal year 2024 conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to John Beisler Three Part Advisors. Please go ahead.

您好，歡迎參加 Crown Crafts, Inc 2024 財年第二季電話會議。 （操作員說明）請注意此事件正在被記錄。我現在想將會議轉交給約翰貝斯勒三部分顧問。請繼續。

Thank you, MJ, and good morning, everyone. We appreciate you joining us for the Crown Crafts second 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. Earlier this morning, Crown Crafts filed its 10-Q and issued a press release regarding their second quarter fiscal 2024 results. A copy of this release is available on the company's website at crowncrafts.com.

謝謝你，MJ，大家早安。我們感謝您參加 Crown Crafts 2024 財年第二季電話會議。今天和我一起參加電話會議的是 Crown Crafts 總裁兼執行長 Olivia Elliott；以及公司財務長 Craig Demarest。今天早些時候，Crown Crafts 提交了 10-Q 財報，並發布了有關 2024 財年第二季業績的新聞稿。新聞稿的副本可在該公司網站 Crowncrafts.c​​om 上取得。

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.

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。

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. 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 President and CEO, Olivia Elliott.

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。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總裁兼執行長 Olivia Elliott。

Thank you, John, and good morning, everyone. Our second quarter results reflect the continued progress at Manhattan Toy and year-over-year sales growth within our two legacy categories, while encouraging cost pressures facing consumers continue to constrain spending even though overall inflation has trended lower in recent months. The reopening of 11 buybuy BABY stores is a welcome addition to the marketplace. But this represents only a fraction of the brick and mortar stores that were closed as part of its bankruptcy earlier this year.

謝謝約翰，大家早安。我們第二季的業績反映了曼哈頓玩具的持續進步以及我們兩個傳統類別的同比銷售成長，同時消費者面臨的令人鼓舞的成本壓力繼續限制支出，儘管近幾個月整體通膨呈下降趨勢。 11 家 buybuy BABY 商店的重新開業對市場來說是一個受歡迎的補充。但這僅代表今年稍早因破產而關閉的實體店的一小部分。

Having a physical location to experience to the difference between our products and others is a key differentiator, and we believe specialty retailers represent an opportunity going forward. We continue to work with our existing customers to maintain our strong relationships and look for additional cost reduction opportunities across the company. We are effectively managing our inventory. At the end of the quarter, inventory for our Sassy and NoJo brands was $21 million compared to almost $28 million a year ago.

擁有一個實際位置來體驗我們的產品與其他產品之間的差異是一個關鍵的差異化因素，我們相信專業零售商代表著未來的機會。我們繼續與現有客戶合作，以維持牢固的關係，並在整個公司範圍內尋找額外的成本降低機會。我們正在有效地管理我們的庫存。截至本季末，我們 Sassy 和 NoJo 品牌的庫存為 2,100 萬美元，而去年同期則為 2,800 萬美元。

With that, I would like to turn the call over to Craig to cover some financial information.

說到這裡，我想把電話轉給克雷格，詢問一些財務資訊。

Thank you, Olivia, and good morning, everyone. Net sales for the second quarter of fiscal '24 increased 28.9% to $24.1 million compared to $18.7 million in the prior year quarter or an increase of $5.4 million. The increase is primarily attributable to the addition of Manhattan Toy which added $4.8 million in net sales to the current year quarter and due to slight increases in our NoJo and Sassy businesses. Gross profit for the second quarter was 27.3% compared to 29.1% in the second quarter of fiscal '23.

謝謝你，奧莉維亞，大家早安。 2024 財年第二季的淨銷售額成長了 28.9%，達到 2,410 萬美元，而去年同期的淨銷售額為 1,870 萬美元，增加了 540 萬美元。這一成長主要歸因於曼哈頓玩具 (Manhattan Toy) 的加入，該公司本季的淨銷售額增加了 480 萬美元，同時我們的 NoJo 和 Sassy 業務略有成長。第二季的毛利為 27.3%，而 2023 財年第二季的毛利為 29.1%。

The profit decrease was primarily attributable to higher lease costs for our warehouse in California. Our second quarter marketing and administrative expenses were $4 million, up $1.3 million from $2.7 million in the prior year quarter and increased from 14.6% of net sales for the prior year quarter to 16.7% of net sales currently. The increase is primarily driven by expenses of Manhattan Toy. Net income for the quarter was $1.8 million, or $0.18 per diluted share compared to net income of $2 million, or $0.2 per diluted share in the prior year quarter.

利潤下降的主要原因是我們位於加州的倉庫租賃成本較高。我們第二季的行銷和管理費用為 400 萬美元，比去年同期的 270 萬美元增加了 130 萬美元，佔淨銷售額的比例從去年同期的 14.6% 增加到目前的 16.7%。這一增長主要是由曼哈頓玩具的支出所推動的。本季淨利為 180 萬美元，即稀釋後每股收益 0.18 美元，去年同期淨利為 200 萬美元，即稀釋後每股收益 0.2 美元。

Now turning to our balance sheet. Cash and cash equivalents at the end of the quarter were $1.9 million compared to $1.7 million at the end of fiscal '23, and borrowings on our revolver at the end of the quarter were $9.8 million compared to $12.7 million at the end of fiscal '23.

現在轉向我們的資產負債表。本季末的現金及現金等價物為190 萬美元，而23 財年末的現金及現金等價物為170 萬美元，本季末我們的左輪手槍借款為980 萬美元，而23 財年末的借款為1,270 萬美元。 。

And finally, we paid our regular quarterly dividend of $0.08 per share and declared our next dividend which will be paid in January. On an annualized basis, our shares currently offer a 7.6% yield based on yesterday's closing price. And now I'll 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，並宣布將於 1 月支付下一次股息。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 7.6%。現在我將把電話轉回給奧利維亞以徵求更多意見。

Thank you, Craig. Since we acquired Manhattan Toy in March, it's sales have followed their historical trend with the September quarter outpacing June, and we expect the upcoming holiday quarter to be their largest sales quarter representing between 35% to 40% of its annual sales.

謝謝你，克雷格。自從我們三月收購曼哈頓玩具以來，它的銷售額一直遵循歷史趨勢，9 月份季度超過了6 月份，我們預計即將到來的假期季度將成為其最大的銷售季度，佔其年銷售額的35% 至40%。

We continue to find ways to reduce cost, which should lead to better margins for Manhattan Toy. We're encouraged by the favorable response we received at last month's New York Toy Fair where we introduce new toy designs.

我們將繼續尋找降低成本的方法，這將為曼哈頓玩具帶來更好的利潤。我們在上個月的紐約玩具展上推出了新的玩具設計，並獲得了好評，這讓我們深受鼓舞。

We will continue to proactively manage our business in the current challenging economic environment so that we remain in a position to capitalize on growth opportunity. We continue to be optimistic about the long-term prospects of the company and look forward to updating you on our updating you on our progress next quarter. With that, I'd like to open up the line for questions. MJ?

我們將在當前充滿挑戰的經濟環境中繼續積極管理我們的業務，以便我們能夠抓住成長機會。我們繼續對公司的長期前景持樂觀態度，並期待向您通報我們下季度的最新進展。至此，我想開通提問專線。喬丹？

(Operator Instructions) This concludes our question and answer session. I would now like to hand the call back to Olivia Elliott for closing remarks.

（操作員說明）我們的問答環節到此結束。現在我想將電話轉回給奧利維亞·埃利奧特 (Olivia Elliott) 作結束語。

Thank you for your continued interest in our company. We will be participating in the Three Part Advisors IDEAS Conference in Dallas tomorrow, November 16. We look forward to speaking with you again when we report our third quarter results in February. Thank you.

感謝您對我們公司的持續關注。我們將於明天（11 月 16 日）參加在達拉斯舉行的三部分顧問 IDEAS 會議。我們期待在 2 月份報告第三季業績時再次與您交談。謝謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。