Slide 1: The Wynnefield Group Investor Presentation Regarding Crown Crafts, Inc.
The Wynnefield Group Investor Presentation Regarding Crown Crafts, Inc. (Nasdaq: CRWS)
Slide 2: Overview
Overview I. Who is the Wynnefield Group? II. Change Needed to Create Stockholder Value A. Background of Election Contest B. Wynnefield Warned About This in 2007 C. Years of Underperformance and Entrenchment D. Board has No Articulated Strategic Plan; Product Line Extension Does Not Qualify III. Defi
Slide 3: Who Is The Wynnefield Group?
Who Is The Wynnefield Group? Value investor in small & micro-cap stocks Largest stockholder of Crown Crafts Currently own about 17% of outstanding stock Long-term investor Invested in Crown Crafts since 1996 and have increased holdings at a variety of price points to protect ownership during this pe
Slide 4: Background of Election Contest
Background of Election Contest
Slide 5: Wynnefield Warned About This in 2007
Wynnefield Warned About This in 2007 CRWS’ Unfulfilled 2007 Promises: Share Price Pointing to share price of $4.65, Crown Crafts wrote: “In many respects, fiscal year 2007 marked the successful completion of our efforts that began in 2001 to turn the Company around and reestablish a solid foundation
Slide 6: TTM Performance Comparison
Years of Underperformance and Entrenchment x Source : Bloomberg as of July 21, 2010 * TTM = Trailing Twelve Months *
Slide 7: Years of Underperformance and Entrenchment
Years of Underperformance and Entrenchment
Slide 8: Pure Play Infant and Juvenile Industry Peers
Years of Underperformance and Entrenchment *Pure Play - Infant and Juvenile Industry Company
Slide 9: KID Became a Pure Play Peer After Divestiture
Years of Underperformance and Entrenchment * As of 12/23/08, KID became a “Pure Play” Peer after divestiture of giftware business
Slide 10: Peer Comparison Excluding KID
Years of Underperformance and Entrenchment *Excludes KID, which did not become a “Pure Play” Peer until divestiture of giftware business on 12/23/08
Slide 11: Board Has No Articulated Strategic Plan
Board Has No Articulated Strategic Plan Strategic Review Committee Never Publicly Disclosed Findings or Even that it had Deliberations Only After Wynnefield’s 2010 Proxy Announcement Did Board Proclaim Adoption of “Strategic Plan” This is first stockholders have heard of this Still, nothing else dis
Slide 12: Misaligned Interests Lead to Pursuit of Status Quo
Misaligned Interests Lead to Pursuit of Status Quo Lavish Board and Management Pay Incentivize Status Quo Rather Than Creating Stockholder Value Management: Board-approved lavish executive compensation and severance packages – significant amounts of cash; little long-term equity compensation despite
Slide 13: Board Not Acting in Stockholders' Best Interests
Board Not Acting in Stockholders’ Best Interests
Slide 14: Wynnefield Nominees' Expertise
Wynnefield Nominees’ Expertise Jon C. Biro Executive Officer CFO – Consolidated Graphics, Inc. CFO, Interim CEO – ICO, Inc. Corporate Director Aspect Medical Systems Inc. ICO, Inc. Public Accounting & Finance Certified Public Accountant (CPA) Price Waterhouse LLP *Current Melvin L. Keating Executive
Slide 15: Focus to Increase Value for All Stockholders
Focus to Increase Value for All Stockholders Our Nominees are committed to working constructively with Board to create stockholder value and address significant corporate governance deficiencies Strategic Plan Form standing Strategic Review Committee Hire qualified independent consultant to help det