-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, O8f7DYD1xCynmQkzGTvYzFsWlspZf2qjX9oXMPhDktx37tloUtRWTwlakbT6CqzI mX5FwU5EL27lKmjA34/fkQ== 0000950134-03-013722.txt : 20031021 0000950134-03-013722.hdr.sgml : 20031021 20031021090808 ACCESSION NUMBER: 0000950134-03-013722 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031021 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031021 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CRAFTMADE INTERNATIONAL INC CENTRAL INDEX KEY: 0000856250 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-ELECTRICAL APPLIANCES, TV & RADIO SETS [5064] IRS NUMBER: 752057054 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-26667 FILM NUMBER: 03948875 BUSINESS ADDRESS: STREET 1: 650 S ROYAL LANE SUITE 100 CITY: COPPELL STATE: TX ZIP: 75050 BUSINESS PHONE: 9723933800 MAIL ADDRESS: STREET 1: CRAFTMADE INTERNATIONAL INC STREET 2: 650 S ROYAL LANE SUITE 100 CITY: COPPELL STATE: TX ZIP: 75050 8-K 1 d09814e8vk.txt FORM 8-K ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): OCTOBER 21, 2003 CRAFTMADE INTERNATIONAL, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE 000-26667 75-2057054 (STATE OF INCORPORATION) (COMMISSION FILE NO.) (IRS EMPLOYER IDENTIFICATION NO.)
650 SOUTH ROYAL LANE, SUITE 100 COPPELL, TEXAS 75019 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (972) 393-3800 ================================================================================ ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits 99.1 - Press release of Craftmade International, Inc. (the "Company"), dated October 21, 2003. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. (a) On October 21, 2003, the Company issued a press release announcing its financial results for the quarter ended September 30, 2003 and certain other information. A copy of this press release is attached hereto as Exhibit 99.1 and is being furnished, not filed, under Item 12, Results of Operations and Financial Condition, to this Report on Form 8-K. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CRAFTMADE INTERNATIONAL, INC Date: October 21, 2003 By: /s/ Kathleen B. Oher ------------------------------------ Kathleen B. Oher Chief Financial Officer EXHIBIT INDEX
Exhibit No. Description - ----------- ----------- 99.1 - Press release of the Company, dated October 21, 2003.
EX-99.1 3 d09814exv99w1.txt PRESS RELEASE EXHIBIT 99.1 (CRAFTMADE INTERNATIONAL, INC. LOGO) Qualifying ceiling fans and lighting. FOR IMMEDIATE RELEASE For Further Information: Kathy Oher Hala Aly Chief Financial Officer Halliburton Investor Relations (972) 393-3800, ext. 166 (972) 458-8000 Investorrelations@craftmade.com haly@halliburtonir.com CRAFTMADE INTERNATIONAL ANNOUNCES FISCAL 2004 FIRST QUARTER RESULTS: EPS EXCEEDS CONSENSUS ESTIMATES -- CONSOLIDATES ITS WEST COAST TSI DIVISION OFFICE -- COPPELL, TEXAS, October 21, 2003 - Craftmade International, Inc. (NASDAQ: CRFT) today reported net income of $2,360,000 for its fiscal 2004 first quarter ended September 30, 2003, compared to net income of $2,204,000 for the first quarter of fiscal year 2002. On a fully diluted basis, net income per share increased to $0.43 per share from $0.38 per share for the corresponding period a year ago. Reported EPS for the first quarter was $0.02 above consensus estimates for the quarter. Weighted average diluted shares outstanding for the quarter were 5,481,000 compared to 5,858,000 for the same period last year. Additionally, the Company announced the retirement of Neall Humphrey as Director of the Company and President of its Trade Source International, Inc. (TSI) subsidiary in California. Mr. Humphrey, 54, was the co-founder of TSI and served as its President and Chief Executive Officer from 1984 until 1998. He has been with Craftmade since the acquisition of TSI in July 1998, and he has served as President of TSI since the acquisition and Director of the Company since October 1998. In conjunction with Mr. Humphrey's retirement, Craftmade is consolidating its TSI California operations into its Coppell, Texas, headquarters' office. "Neall has been instrumental in the continued success of our TSI operations and our entrance into the mass retail distribution channel. We wish him well in his future endeavors." commented James R. Ridings, Craftmade's Chairman and Chief Executive Officer. "The integration of our California operations into our Coppell Headquarters will give us greater opportunities to improve our infrastructure in the areas of expense controls, marketing initiatives and operational efficiencies. We are pleased with our first quarter results in spite of the company incurring a one-time charge for severance pay of approximately $95,000, related to the closing of the California office. Additionally, the company will incur a charge in its fiscal 2004 second quarter relating to the roll out of a new product category at Prime Home Impressions (PHI), one of its 50%-owned unconsolidated subsidiaries. In spite of the charge, estimated to be $0.10 per share net of taxes, the company expects to meet or exceed last year's fiscal 2003 second quarter results of $0.25 per share. The charge is related to up-front costs being paid to a mass retail customer in order to secure additional space for the new category, consisting of replacement parts for portable lamps. --more-- Press Release Craftmade International, Inc. October 21, 2003 - Page 2 "We believe that this up-front expense will be recovered in approximately 12 months from the start of the initial roll out, which is expected to begin in the last week of this month," continued Mr. Ridings, "We believe that we remain on track to meet or exceed the consensus estimate of $1.47 for full year fiscal 2004. Our outlook is based on expected cost savings from the closing of the California office, estimated to be approximately $1 million over the next 12 months, as well as additional business to be generated by the new PHI product line, and stronger than expected sales in our showroom division." Revenues for the quarter ended September 30, 2003 were $18,483,000, a decrease of 2.8% from revenues of $19,022,000 reported for last year's fourth quarter. First quarter net sales from the showroom division increased 6.4%, or $863,000, to $14,323,000 from $13,461,000 for the same period last year. Thus far, October sales are continuing to trend at a mid-single digit increase for the division. First quarter net sales from the mass retail division declined 25.2% or $1,402,000 to $4,160,000, compared to $5,562,000 last year. The sales decline was related to a decline in sales of outdoor lighting to a mass retail customer, primarily due to the variability of TSI's promotional business in which the buying patterns of its mass retail customers can vary from period to period. Net income from the company's 50%-owned subsidiaries increased 8.0%, or $124,000, to $1,678,000 compared to $1,554,000 for last year's first quarter. Total selling, general and administrative expenses were $3,854,000, or 20.9% of net sales for the first quarter, compared to $3,824,000, or 20.1% of net sales for the same period last year. Gross profit as a percentage of sales for the three months ended September 30, 2003, increased to 33.6% from 32.0% in the first quarter last year. Gross profit from the showroom division increased to 40.9% of sales from 40.4% of sales in the year-ago period. The gross margin of the mass retail division declined to 8.7% of sales for the three months ended September 30, 2003, compared to 11.6% of sales in the year-ago period. A conference call to discuss the company's first quarter fiscal 2004 results, as well as the company's outlook for fiscal 2004, is scheduled for Tuesday, October 21, at 10:00 a.m. Central Time. To participate in this call, dial (719) 457-2656 and refer to confirmation code 609125. A replay of the conference call can also be accessed via the company's Web site at www.craftmade.com. Craftmade International, Inc., founded in 1985 and based in Coppell, Texas, is engaged in the design, distribution and marketing of a broad range of proprietary ceiling fans, lighting products and related accessories. The company distributes its premium products through a network of 1,600 showrooms and electrical wholesalers through a national sales organization of more than 65 independent sales representatives. Through its Trade Source International subsidiary, acquired in 1998, Craftmade distributes outdoor lighting, ceiling fan accessories and an indoor lighting line to the mass merchandiser market, which includes Lowe's, Home Depot and Wal-Mart. Certain statements in this News Release constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Craftmade International, Inc. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors are discussed in more detail in the company's Form 10-K filing with the Securities and Exchange Commission. Press Release Craftmade International, Inc. October 21, 2003 - Page 3 -Financial Tables Follows- Craftmade International, Inc.
Three Months Ended September 30, ------------------------------- 2003 2002 (In thousands, except per share data) Net sales $ 18,483 $ 19,022 Cost of goods sold 12,264 12,941 Gross profit 6,219 6,081 Selling, general and Administrative expenses 3,584 3,824 Pretax income from 50% owned subsidiaries 1,676 1,554 Pretax income from wholly owned subsidiaries 3,707 1,911 Net income 2,360 2,204 Diluted earnings per share $ 0.43 $ 0.38 Diluted shares Outstanding 5,481 5,858
Design Trends, LLC Unconsolidated, 50% owned subsidiary
Three Months Ended September 30, ------------------------------- 2003 2002 (In thousands, except per share data) Net sales $ 9,953 $ 8,722 Cost of goods sold 7,111 5,830 Gross profit 2,842 2,892 Selling, general and administrative expenses 428 681 Pretax net income 2,413 2,191
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