8-K

UNITED STATES
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):
November 12, 2008

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

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 — Financial Information

Item 2.02 Results of Operations and Financial Condition.

Section 7 — Regulation FD

Item 7.01 Regulation FD Disclosure.

     The following information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition” and Item 7.01, “Regulation FD Disclosure.”

     On November 12, 2008, Craftmade International, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended, September 30, 2008 and certain other information. A copy of this press release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 9.01 Financial Statements and Exhibits

(c)	Exhibits.
	The following exhibits are furnished with this Form 8-K.
	99.1  Press release of the Company, dated November 12, 2008

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: November 12, 2008	By:	/s/ C. Brett Burford
		C. Brett Burford
		Chief Financial Officer

EX-99.1

Exhibit 99.1

Press Release
Craftmade International, Inc.
November 12, 2008
Page 1

FOR IMMEDIATE RELEASE

For Further Information:
C. Brett Burford	Hala Elsherbini
Chief Financial Officer	Halliburton Investor Relations
(972) 393-3800	(972) 458-8000
investorrelations@craftmade.com	hala@halliburtonir.com

Craftmade International Announces Net Sales and Earnings Results
For Its Fiscal 2009 First Quarter

COPPELL, TEXAS, November 12, 2008 – Craftmade International, Inc. (Nasdaq: CRFT) today reported the following results for its fiscal 2009 first quarter ended September 30, 2008:

First Quarter 2009 Consolidated Results

Net loss for the current quarter was $129,000, compared to net income of $618,000 for the first quarter of the 2008 fiscal year. On a fully diluted basis, the net loss per share was $0.02 for the 2009 first quarter, compared to a net income per share of $0.12 reported in the year-ago quarter. Weighted average diluted shares outstanding for the current fiscal year were 5,705,000, versus 5,206,000 for the same period last year.

Net sales for the quarter increased $7,427,000, or 32.6%, to $30,165,000, compared to $22,738,000 reported in the first quarter of the last fiscal year. This increase was due to the acquisition of Woodard, partially offset by declines in ceiling fans, lighting and accessories sales.

“The decline in the housing market and in the overall economy continues to impact demand for our products,” commented J. Marcus Scrudder, Craftmade’s Chief Executive Officer. “During this quarter, we also experienced the effects of Woodard’s extreme seasonality impacting our quarterly profits. However, despite this challenging market, we continue to aggressively execute our strategic plan. Our traditional fan and lighting business remains resilient, and we continue to see both growth and cost saving opportunities with the integration of Woodard. We expect to more fully realize the cost savings from integrating Woodard in the third and fourth quarters of fiscal 2009. The acquisition of Woodard has significantly broadened the Company’s offerings to include outdoor patio furniture, opened new channels and outlets for existing Craftmade products and created avenues for cross selling both existing and new products. Additionally, we continue to invest in future growth through the introduction of innovative and distinctive products that reflect emerging consumer trends across our lighting, ceiling fan and outdoor living lines.”

Press Release
Craftmade International, Inc.
November 12, 2008
Page 2

Gross Profit; Selling, General and Administrative (“SG&A”) Expense and Interest Expense

Gross profit of the Company as a percentage of net sales was 28.1% for the quarter ended September 30, 2008, compared to 33.0% for the quarter ended September 30, 2007, a decline of 4.9%. This was primarily due to increased sales of Woodard products that carry a lower gross margin than traditional Craftmade products.

Total SG&A expenses of the Company increased $2,356,000 to $7,897,000 for the quarter ended September 30, 2008, compared to $5,541,000, for the prior year. The increase was primarily due to the acquisition of Woodard.

Interest expense increased by $37,000 to $359,000 for the quarter, compared to $322,000 for the first quarter of 2008.

Minority interest expense decreased $337,000 to $161,000 for the fiscal year ended June 30, 2008, compared to $498,000 for the same period in the previous fiscal year. The decrease in minority interest resulted from lower profits at Design Trends as a result of a decline in net sales.

On a fully diluted basis, the net loss per share of $0.02 for the 2009 first quarter compares to a proforma gain per fully diluted share of $0.03 for the 2008 first quarter, calculated as if the Woodard acquisition had occurred at the beginning of fiscal 2008.

Fiscal 2009 First Quarter Segment Results

Net sales of the Specialty segment increased $6,188,000, or 43%, to $20,471,000, compared to $14,283,000 reported in the same quarter last year. This increase was primarily due to increased sales from the Woodard acquisition of $8,112,000 partially offset by a decrease of $1,924,000, or 13.5%, of ceiling fan and lighting sales.

Net sales of the Mass segment increased $1,239,000, or 14.7%, to $9,694,000, compared to $8,455,000 reported in the same quarter last year. Additional sales from the Woodard acquisition were $2,335,000, which was partially offset by a decrease of $1,096,000, or 13.0%, of lighting and accessories sales.

“Management continues to focus on long-term growth, while managing through an unprecedented economic down cycle. With the Woodard acquisition we have established a new manufacturing presence and created new opportunities to manufacture and sell our diverse product lines. The integration of Woodard is on track with our expectations, and we expect considerable efficiencies which we will more fully realize during the second half of the 2009 fiscal year. We continue to implement cross-selling initiatives between our newly acquired and traditional lines, and across all of our sales channels. It is our belief that Craftmade’s broad product line and commitment to product development has positioned us well to navigate through this tough environment. We are committed to continuing to build a strong Company that has a diversified product offering and delivers unmatched customer service, resulting in long-term shareholder value,” concluded Mr. Scrudder.

Press Release
Craftmade International, Inc.
November 12, 2008
Page 3

Conference Call

A conference call to discuss the Company’s results for the quarter ended September 30, 2008 is scheduled for today at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). Interested participants should dial (800) 813-6062 a few minutes before the start time and reference confirmation code 23182709. Additionally, a replay of the earnings conference call will be available after the completion of the call through November 19, 2008, and can be accessed by dialing (888) 843-8996 and referencing confirmation code 23182709. A webcast of the conference call can also be accessed by visiting the Company’s website at www.craftmade.com.

Founded in 1985, Craftmade International, Inc. is engaged in the design, manufacturing, distribution and marketing of a broad range of home décor products, including proprietary ceiling fans, lighting products and outdoor furniture. The Company distributes its premium products through a network of independent showrooms and mass retail customers through its headquarters and distribution facility in Coppell, Texas and manufacturing plant in Owosso, Michigan. More information about Craftmade International, Inc. can be found at www.craftmade.com.

Various statements in this Press Release or incorporated by reference herein, in future filings with the SEC, in press releases, and in oral statements made by or with the approval of authorized personnel constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and are indicated by words or phrases such as “may,” “will,” “should,” “could,” “might,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “projects,” “predicts,” “forecasts,” “intends,” “potential,” “continue,” and similar words or phrases and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from the future results, performance or achievements expressed in or implied by such forward-looking statements. These forward-looking statements include statements or predictions regarding among other items: revenues and profits; gross margin; customer concentration; customer buying patterns; sales and marketing expenses; general and administrative expenses; pricing and cost reduction activities; income tax provision and effective tax rate; realization of deferred tax assets; liquidity and sufficiency of existing cash, cash equivalents, and investments for near-term requirements; purchase commitments; product development and transitions; competition and competing technology; outcomes of pending or threatened litigation; and financial condition and results of operations as a result of recent accounting pronouncements. These forward-looking statements are based largely on expectations and judgments and are subject to a number of risks and uncertainties, many of which are beyond our control. Significant factors that cause our actual results to differ materially from our expectations are described in our Form 10-K under the heading of “Risk Factors.” We undertake no obligation to publicly update or revise these Risk Factors or any forward-looking statements, whether as a result of new information, future events or otherwise.

Press Release
Craftmade International, Inc.
November 12, 2008
Page 4

CRAFTMADE INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)

	Three Months Ended
	September 30,			September 30,
	2008			2007
Net sales	$	30,165		$	22,738
Cost of goods sold		(21,695	)		(15,228	)
Gross profit		8,470			7,510
Gross profit as a percentage of net sales		28.1	%		33.0	%
Selling, general and administrative expenses		(7,897	)		(5,541	)
Depreciation and amortization		(238	)		(205	)
Total operating expenses		(8,135	)		(5,746	)
Income from operations		335			1,764
Interest expense, net		(359	)		(322	)
Other Income		5			—
Income (loss) before income taxes and minority interest		(19	)		1,442
Income tax (expense) / benefit		51			(326	)
Income before minority interest		32			1,116
Minority interest		(161	)		(498	)
Net income (loss)	$	(129	)	$	618
Weighted average common shares outstanding:
Basic		5,705			5,205
Diluted		5,705			5,206
Basic earnings per common share	$	(0.02	)	$	0.12
Diluted earnings per common share	$	(0.02	)	$	0.12
Cash dividends declared per common share	$	—		$	0.12

Press Release
Craftmade International, Inc.
November 12, 2008
Page 5

CRAFTMADE INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)

	September 30,			June 30,
	2008			2008
	(Unaudited)
ASSETS
Current assets
Cash	$	478		$	1,269
Accounts receivable, net		23,196			23,644
Inventories, net		25,377			22,420
Income taxes receivable		1,496			1,485
Deferred income taxes		1,228			1,332
Prepaid expenses and other current assets		2,562			2,574
Total current assets		54,337			52,724
Property and equipment, net		11,622			11,060
Goodwill		14,548			14,419
Other intangibles, net		1,249			1,300
Other assets		2,448			2,457
Total non-current assets		29,867			29,236
Total assets	$	84,204		$	81,960
LIABILITIES, MINORITY INTEREST AND STOCKHOLDERS’ EQUITY
Current liabilities
Book overdrafts	$	17		$	182
Accounts payable		9,097			8,411
Other accrued expenses		2,969			3,329
Current portion of long-term obligations		515			507
Total current liabilities		12,598			12,429
Non-current liabilities
Long-term obligations		29,771			27,759
Deferred income taxes		1,117			1,117
Total non-current liabilities		30,888			28,876
Total liabilities		43,486			41,305
Minority interest		3,723			3,562
Stockholders’ equity
Preferred stock, $1.00 par value, 2,000,000 shares authorized; nil shares issued		—			—
Common stock, $0.01 par value, 15,000,000 shares authorized; 10,204,420 shares issued		102			102
Additional paid-in capital		22,246			22,215
Retained earnings		52,773			52,902
Less: treasury stock, 4,499,920 common shares at cost		(38,126	)		(38,126	)
Total stockholders’ equity		36,995			37,093
Total liabilities, minority interest and stockholders’ equity	$	84,204		$	81,960