Crown Crafts, Inc. · NASDAQ:CRWS
Crown Crafts — Burkenroad Conference 2009
26 slides from Crown Crafts's conference presentation, Apr 24, 2009
Slide 1: Crown Crafts, Inc. Burkenroad Conference
CROWN CRAFTS, INC. NASDAQ-CM: CRWS Burkenroad Conference April 24, 2009 New Orleans, LA
Slide 2: Forward-looking statements
This presentation contains forward-looking statements within the meaning of the Securities Act of 1933, the Securities Exchange Act of 1934, the Private Securities Litigation Reform Act of 1995, and all Rules and Regulations issued thereto. Such statements are based upon management's current expecta
Slide 3: Corporate Overview
Corporate Overview
Slide 4: Company History
Crown Crafts was founded in 1958 as a privately-held textile manufacturer. The Company went public in 1968. The Company was de-listed in 2001 after posting $114 million in net losses. In 2000 and 2001, the Company sold unprofitable businesses and reinvented itself as an infant consumer products comp
Slide 5: Corporate Profile
Corporate Profile One of the largest U.S. providers of infant and toddler bedding, bibs, soft goods and accessories Products are marketed as branded and unbranded merchandise Top-tier U.S. license and retail relationships Successful financial restructuring in 2001 returned the Company to profitabili
Slide 6: 2006 Restructuring Highlights
2006 Restructuring Highlights Restructuring completed July 2006 Reduced debt from $24 million to $13 million Reduced interest rate from 11.65% to prime less 1% Extinguished warrants issuable to lenders and shares issuable to management, which together represented 70% of the Company's diluted equity
Slide 7: Industry Statistics
Industry Statistics
Slide 8: Infant Products Industry
Infant Products Industry Birth rates continue to rise. By 2020, the birth rate is expected to be 4.5 million, exceeding the 4.3 million births at the height of the baby boom. First births represent 40% of all births. New parents spend approximately $6,200 outfitting mom and baby in the first year. M
Slide 9: Live Births 2000 - 2009
Live Births 2000 - 2009 Based on data from the National Center for Health Statistics (In thousands) 2000 2001 2002 2003 2004 2005 2006 2007 2008 (Est.) 2009 (Est.) 4058.814 4025.933 4021.726 4089.95 4112.052 4138.349 4269 4315 4361 4407
Slide 10: Company Structure, Strengths and Future Strategies
Company Structure, Strengths and Future Strategies
Slide 11: Crown Crafts Infant Products
Crown Crafts Infant Products Crown Crafts Infant Products is a leading manufacturer of infant and toddler bedding, blankets, and accessories to mass and specialty markets. Crown Crafts Infant Products resulted from a 1999 merger between Red Calliope and Noel Joanna (NoJo), two pioneers in the infant
Slide 12: Crown Crafts Infant Products
Crown Crafts Infant Products Crown Crafts Infant Products
Slide 13: Hamco
Hamco HAMCO is a leading designer, producer and marketer of infant bib and bath products, and is very proud of its significant share of the bib market. Founded in 1984 and acquired by Crown Crafts, Inc. in 1997, HAMCO is known for its extensive proprietary design expertise. In 1998, Pinky Baby Produ
Slide 14: Hamco
Hamco
Slide 15: Strengths of Our Company
Strengths of Our Company Sourcing expertise and experience Crown Crafts, Inc. takes full advantage of shifts in the global economy. We currently source from several countries including China, Thailand, India and Indonesia. Crown Crafts, Inc. has developed strong relationships with many manufacturers
Slide 16: Dominant Retail Distribution
Dominant Retail Distribution
Slide 17: Private Label Programs
Private Label Programs Walmart >'< eormany at © TARGET eanies:us toys¥fpus.
Slide 18: Licenses
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Slide 19: Company-owned Brands
Company-owned Brands NadJlo ~~ Késmic “ NaJo oot Komférts" naturally for baby hi) aiTiTudsie. | mieeiSs
Slide 20: Acquisition of Springs Infant and Toddler Product Lines
Acquisition of Springs Infant and Toddler Product Lines Acquired infant and toddler product lines from Springs Global US in November 2007 for approximately $11 million. Amended the credit facility to increase the revolving line of credit to $26 million, extended the term of the revolving line of cre
Slide 21: Financial Highlights
Financial Highlights
Slide 22: Recent Financial Developments
Recent Financial Developments Completed debt and capital restructuring resulting in debt reduction from $24 million to $13 million plus extinguishment of warrants in July 2006 Recorded a $4.2 million deferred tax asset in March 2006 as a result of the removal of a deferred tax valuation allowance Re
Slide 23: Operating Highlights
Operating Highlights (in thousands, except percentages and per share data)
Slide 24: EBITDA
EBITDA (in thousands) For the rine mons ended Forth al yar ened ‘December 76,2008] [December 02007 | Maren30, 2008 | | Apel 2007 Pr fama et nceme excluding special tems. $ 247 278 $ ass 3908 Incest expense 300 a5 7 1.382 Interest income (23) a co} (108) ‘aes 4587 1,880 2146 2.986 Depreciation 228 25
Slide 25: Long-term debt
Long-term debt (In millions) Springs purchased in November, 2007 Net of Cash Invested
Slide 26: Investment Summary
Investment Summary Debt and capital restructuring right-sized the Company's debt and allowed the Company to build shareholder value and operating profits. Crown Crafts is now a focused, profitable consumer products company operating primarily in the growing infant and juvenile soft goods markets. Th