Crown Crafts Inc (CRWS) 2024 Q3 法說會逐字稿

Good morning and welcome to the Crown Crafts, Inc. Third Quarter Fiscal Year 2024 conference call, all participants will be in a listen-only mode.

早上好，歡迎參加 Crown Crafts, Inc. 2024 財年第三季電話會議，所有參與者都將處於僅聽模式。

Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

如果您需要協助，請按星號鍵和零向會議專家發出訊號。

After today's presentation, there will be an opportunity to ask questions.

今天的演講結束後，將有機會提問。

Please note this event is being recorded.

請注意此事件正在被記錄。

I would now like to turn the conference over to John Beisler with Repark advisors.

我現在想將會議轉交給約翰·貝斯勒 (John Beisler) 和 Repark 顧問。

Please go ahead.

請繼續。

Thank you, operator, and good morning, everyone.

謝謝接線員，大家早安。

We appreciate you joining us for the Crown Crafts Third Quarter Fiscal 2024 conference call.

我們感謝您參加 Crown Crafts 2024 財年第三季電話會議。

Joining me today our current crush President and CEO., Olivia Elliott, and the company's CFO, Craig Demarest

今天加入我的是我們現任總裁兼執行長 Olivia Elliott，以及公司的財務長 Craig Demarest

Earlier this morning, Chromecast filed its 10-Q and issued a press release regarding their third quarter fiscal 2024 results.

今天早些時候，Chromecast 提交了 10 季財報，並發布了有關 2024 財年第三季業績的新聞稿。

A copy of this release is available on the company's website found Kraft.com. During today's call, the Company will make certain forward-looking statements and actual results may differ materially from those expressed or implied.

新聞稿的副本可在該公司網站 Kraft.com 上找到。在今天的電話會議中，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。

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.

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.

有關公司風險因素和其他不確定因素的更多信息，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.

最後，我想提醒您，今天的電話會議正在錄音，並將透過公司的投資者關係頁面提供重播。

Now I would like to turn the call over to the President and CEO, Olivia Elliott.

現在我想將電話轉給總裁兼執行長 Olivia Elliott。

Thank you, John, and good morning, everyone.

謝謝約翰，大家早安。

Our third quarter results reflect meaningful top and bottom line improvement.

我們第三季的業績反映了營收和利潤的顯著改善。

We saw our gross margin returned to more historical levels.

我們看到我們的毛利率回到了歷史水平。

And we continue to see a nice contribution from Manhattan toys, which contributed $6 million in net sales during the quarter as we continue to monitor the macro environment we are encouraged to see that recent economic reports indicate a more favorable outlook as the year progresses.

我們繼續看到曼哈頓玩具的良好貢獻，該季度貢獻了 600 萬美元的淨銷售額，隨著我們繼續監測宏觀環境，我們很高興看到最近的經濟報告顯示隨著今年的進展，前景更加樂觀。

However, the overall impact from the higher inflationary environment that has transpired over the past couple of years continues to be a prolonged strain on our consumers as reflected yesterday in yesterday's CPR report.

然而，正如昨天的 CPR 報告所反映的那樣，過去幾年出現的高通膨環境的總體影響仍然對我們的消費者造成長期壓力。

This is particularly evident at the lower end of the income scale with those consumers have experienced a longer term effect to their discretionary income due to higher interest rates for mortgages and credit cards as well as the resumption of student loan repayment another encouraging update is the reopening of 11 buybuy BABY stores, which started during the quarter.

這在收入範圍的低端尤其明顯，由於抵押貸款和信用卡利率上升以及學生貸款償還的恢復，這些消費者的可自由支配收入受到了長期影響，另一個令人鼓舞的更新是重新開放本季度開設了11 家buybuy BABY 店。

Although we did ship product to these locations, we expect this to be a more gradual benefit as they slowly roll rollout of the opening of more stores.

儘管我們確實將產品運送到這些地點，但隨著他們慢慢推出開設更多商店，我們預計這將是一個更漸進的好處。

About Bailey's goal to open a hundred additional stores over the next few years would equal the number of stores that were closed as part of last year's bankruptcy.

貝利的目標是在未來幾年內再開設一百家商店，這將相當於去年因破產而關閉的商店數量。

These openings would be a great benefit, giving us additional physical locations for consumers to get a firsthand look and feel for our products, particularly our higher-end infant bedding offering.

這些空缺將是一個巨大的好處，為我們提供了更多的實體位置，讓消費者能夠第一手了解我們的產品，特別是我們的高端嬰兒床上用品。

We also continue to work with other specialty retailers to add our products to their shelves.

我們也繼續與其他專業零售商合作，將我們的產品添加到他們的貨架上。

We have made good controls on our inventory throughout the year as major retailers continue to carry lower levels of goods within their system.

由於主要零售商繼續在其係統內銷售較低水準的商品，我們全年對庫存進行了良好的控制。

At the end of the quarter, total inventory was $34.9 million compared to $34.2 million at the end of fiscal '23 compared to the same period last year.

截至本季末，庫存總額為 3,490 萬美元，而 2023 財年末的庫存總額為 3,420 萬美元，去年同期為 3,420 萬美元。

Nojo and Sassy inventory levels have declined from $25.8 million last year to $22.7 million this year.

Nojo 和 Sassy 的庫存水準已從去年的 2,580 萬美元下降到今年的 2,270 萬美元。

With that, I'd like to turn the call over to Craig to cover the financials in more detail.

說到這裡，我想把電話轉給克雷格，讓他更詳細地介紹財務狀況。

Thank you, Olivia, and good morning.

謝謝你，奧利維亞，早安。

Everyone. net sales for the third quarter of fiscal '24 increased approximately 25% to $23.8 million compared to $19 million in the prior year.

每個人。 2024 財年第三季的淨銷售額較前一年的 1,900 萬美元成長約 25%，達到 2,380 萬美元。

Quarter.

四分之一.

The increase is attributable to the addition of Manhattan toys, which added $6 million in net sales to the current year quarter.

這一增長歸因於曼哈頓玩具的加入，該公司本季的淨銷售額增加了 600 萬美元。

Net sales of bedding, blankets and accessories were essentially flat as consumers face the economic pressures that Olivia mentioned.

由於消費者面臨奧莉維亞提到的經濟壓力，床上用品、毛毯和配件的淨銷售額基本上持平。

Gross profit for the quarter was 27% compared to 23.7% in the third quarter of fiscal '23 as margins have returned to historical levels and consistent with year to date margins.

該季度的毛利為 27%，而 23 財年第三季的毛利為 23.7%，因為利潤率已恢復到歷史水平並與年初至今的利潤率一致。

Marketing and administrative expenses were $4.1 million in the current year quarter versus $2.7 million in the prior year quarter.

本季行銷和管理費用為 410 萬美元，去年同期為 270 萬美元。

This increase is primarily related to expenses associated with Manhattan toys.

這一增長主要與曼哈頓玩具相關的費用有關。

Net income for the quarter was $1.7 million or $0.17 per diluted share compared to net income of $1.3 million or $0.13 per diluted share in the prior year quarter.

本季淨利為 170 萬美元，即稀釋後每股收益 0.17 美元，去年同期淨利為 130 萬美元，即稀釋後每股收益 0.13 美元。

Turning now to our balance sheet cash and cash equivalents at the end of the third quarter were $683,000 compared to $1.7 million at the end of fiscal '23 borrowings on our revolver at the end of the quarter were $10 million compared to $12.7 million at the end of fiscal '23.

現在轉向我們的資產負債表，第三季末現金和現金等價物為 683,000 美元，而 23 財年末為 170 萬美元；本季末我們的左輪手槍借款為 1,000 萬美元，而 2023 財年末為 1,270 萬美元'23 財年。

And finally, we paid our regular quarterly dividend of $0.08 per share and declared our next dividend, which will be paid in April on an annualized basis.

最後，我們支付了每股 0.08 美元的定期季度股息，並宣布了下一次股息，將於 4 月按年支付。

Our shares currently offer just over 6% yield based on yesterday's closing price.

根據昨天的收盤價，我們的股票目前的收益率略高於 6%。

And now I will turn the call back over to Olivia for additional comments.

現在我將把電話轉回給奧利維亞以徵求更多意見。

And Craig, as we approach the end of fiscal 2024 we continue to implement our long-term strategic plan, which was approved by our board in fiscal 2023.

克雷格，隨著 2024 財年即將結束，我們將繼續實施我們的長期策略計劃，該計劃已於 2023 財年獲得董事會批准。

As a reminder, this plan includes continuing growth in our toy category through market share expansion within both Sassy and Manhattan toys.

提醒一下，該計劃包括透過擴大 Sassy 和曼哈頓玩具的市場份額來持續增長我們的玩具類別。

Toys are projected to represent nearly half of our overall sales for fiscal 2024 compared to just 17% at the end of fiscal 2023.

預計 2024 財年，玩具將占我們總銷售額的近一半，而 2023 財年末這一比例僅為 17%。

We also have plans to enter into new and adjacent product categories through a combination of organic growth and strategic acquisitions.

我們還計劃透過有機成長和策略性收購相結合的方式進入新的和相鄰的產品類別。

We are working on product development to bring select items from the Manhattan toy lineup into Walmart if the price points makes sense.

我們正在致力於產品開發，如果價格合理，我們將把曼哈頓玩具系列中的精選商品引入沃爾瑪。

And we continue to look at additional acquisition opportunities that expand or complement our existing portfolio selling direct to consumers has remained challenging given the significant upfront spending to build out the website followed by advertising of the brand.

我們繼續尋找額外的收購機會，以擴大或補充我們現有的產品組合，但考慮到建立網站和品牌廣告所需的大量前期支出，直接向消費者銷售仍然具有挑戰性。

Manhattan toys had a website in place at the time of the acquisition, which we are using to sell some of the Sassy brand and our NoJo brand is ready to launch its own website.

曼哈頓玩具在收購時已經建立了一個網站，我們正在使用該網站來銷售一些 Sassy 品牌，而我們的 NoJo 品牌已準備好推出自己的網站。

The remainder of the plan is centered on implementing operating cost efficiencies and investing in technology and our organizational structure.

該計劃的其餘部分集中在實現營運成本效率以及對技術和組織結構的投資。

Our Company has a long track record of holding expenses in line and we will continue to run the business with this at the forefront.

我們公司在控制開支方面有著長期的記錄，我們將繼續以此為重來經營業務。

Overall, we continue to manage our business through the ongoing macroeconomic challenges while positioning our brands to capitalize when the overall economy improves.

總體而言，我們將繼續管理我們的業務，應對當前的宏觀經濟挑戰，同時定位我們的品牌，以便在整體經濟改善時利用我們的品牌。

We believe the long-term prospects of the company remain favorable as evidenced by our long-standing track record and dividends and look forward to delivering long-term value to our shareholders.

我們相信，公司的長期前景仍然樂觀，我們的長期業績記錄和股息證明了這一點，並期待為股東帶來長期價值。

With that, I'd like to open up the line for questions Daniel

至此，我想開通提問專線，丹尼爾

(Operator instructions) Douglas Ruth, Lennox financial services.

（操作員指示）Douglas Ruth，倫諾克斯金融服務公司。

Greg Craig, congratulations.

格雷格·克雷格，恭喜你。

A very good report are coming back in for you.

一份非常好的報告將會回傳給您。

Can you talk about are you having any success lowering the main hit employee our manufacturing cost?

您能否談談您在降低主要員工的製造成本方面是否取得了成功？

Yes, actually, we are.

是的，實際上，我們是。

So I mean, we we kind of went into this with a look at everything from the First Call to freight on pretty much everything across the whole manufacturing channel, we've managed to get some decrease this quarter.

所以我的意思是，我們對此進行了研究，從第一次呼叫到整個製造管道中幾乎所有內容的貨運，我們在本季度設法實現了一些下降。

Is there or is there more to come?

是否還有或還會有更多的事情發生？

Do you think.

你認為。

We are always dry?

我們總是乾燥？

And so I mean we're pushing on on certain things.

所以我的意思是我們正在推動某些事情。

I mean, as you know, the inventory that was already in the warehouse was at some higher cost.

我的意思是，如您所知，倉庫中已有的庫存成本較高。

And so as we run through that I'm hopeful that we can see more modest decreases.

因此，當我們經歷這一過程時，我希望我們能夠看到更溫和的下降。

Okay.

好的。

And my understanding is that you are considering the possibility of combining our warehouses could do maybe explain to us what's happening with that.

我的理解是，您正在考慮合併我們的倉庫的可能性，也許可以向我們解釋正在發生的事情。

And we're on the early stages of that.

我們正處於早期階段。

And so yes, we're starting to look at other locations for warehouses, possibly even outside of California.

所以，是的，我們開始尋找其他地點的倉庫，甚至可能在加州之外。

And so to do that, you know, it's a it's a pretty big commitment and it takes some time because when we do make a move, it will be for up at least hopefully 10 years or more.

因此，要做到這一點，你知道，這是一個相當大的承諾，需要一些時間，因為當我們採取行動時，至少希望持續 10 年或更長時間。

So we want to make sure we get it right?

所以我們想確保我們做對了？

So we're looking at that on the front end right now, and hopefully we'll have a solution within the next 18 months or so.

所以我們現在正在前端研究這個問題，希望我們能在未來 18 個月左右的時間內找到解決方案。

Okay.

好的。

Very good.

非常好。

And my final question, can you are give us a little bit more color on what the relationship with Walmart and is it possible that maybe Manhattan client might be able to our get into Walmart maybe in fiscal 2025, anything you could share is appreciated.

我的最後一個問題是，您能否給我們更多關於與沃爾瑪的關係的信息，以及曼哈頓客戶是否有可能在 2025 財年進入沃爾瑪，我們將不勝感激。

So yes, we've got a very good relationship with Walmart, Sassy and NoJo have both been selling to them for many, many years longer than I've been at the Company.

所以，是的，我們與沃爾瑪有著非常好的關係，Sassy 和 NoJo 向他們銷售產品的時間比我在公司的時間長很多很多年。

And so we are talking to Walmart.

所以我們正在與沃爾瑪交談。

We do have some opportunities in.

我們確實有一些機會。

So a very minimal amount of stores in fiscal 2025.

因此，2025 財年的商店數量非常少。

But hopefully the sales and go well with that, then we'll have an opportunity to expand more.

但希望銷售情況良好，然後我們將有機會擴大規模。

Okay.

好的。

Thank you for answering my questions and congratulations on a really a tremendous thought earnings report.

感謝您回答我的問題，並祝賀您獲得了一份非常精彩的收益報告。

Thank you, Doug.

謝謝你，道格。

As a reminder, if you have a question, please press star one.

提醒一下，如果您有疑問，請按星號一。

If there are no further questions.

如果沒有其他問題的話。

I would like to turn the call back over to Olivia Elliott for closing remarks.

我想將電話轉回給奧利維亞·埃利奧特（Olivia Elliott）做結束語。

Thank you for your continued interest in our company, and we look forward to speaking with you again when we report our fourth quarter and fiscal year 2024 results in June.

感謝您對我們公司的持續關注，我們期待在 6 月報告第四季度和 2024 財年業績時再次與您交談。

Thank you.

謝謝。

The conference has now concluded.

會議現已結束。

Thank you for attending.

感謝您的出席。

Today's presentation.

今天的演示。

You may now correct.

你現在可以更正了。