Crown Crafts, Inc. · NASDAQ:CRWS
Crown Crafts — 14th Annual Burkenroad Reports Investment Conference (April 2010)
33 slides from Crown Crafts's conference presentation, Apr 23, 2010
Slide 1: Presentation at the 14th Annual Burkenroad Reports Investment Conference
Presentation at the 14th Annual BURKENROAD REPORTS Investment Conference April 23, 2010 New Orleans, LA 9:30 a.m. Sheraton Hotel CROWN CRAFTS, INC. NASDAQ-CM: CRWS
Slide 2: Forward-Looking Statements
This presentation contains forward-looking statements by Crown Crafts, Inc. (the "Company") 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 b
Slide 3: Corporate Overview
Corporate Overview Corporate Overview 2
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 losses in 3 years. In 2000 and 2001, the Company sold its unprofitable businesses and reinvented itself as an infant consumer pr
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: Industry Statistics
Industry Statistics Industry Statistics 5
Slide 7: Infant Products Industry
Infant Products Industry Birth rates declined in 2008, when nearly 2% fewer babies were born than in 2007, which was a record-setting year for births. This represents the first decline in the birth rate since 2002, following the recession caused by the bursting of the dot.com bubble, Enron and 9-11.
Slide 8: Infant Products Industry
Infant Products Industry First births represent 40% of all births. New parents spend approximately $6,200 outfitting mom and baby in the first year. More parents are decorating the nursery for the second child where the second child's gender is different than the first. One out of every three adults
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 2009 (Est.) 4058.814 4025.933 4021.726 4089.95 4112.052 4138.349 4265.555 4317.119 4251.095 4200 MSGraph.Chart.8 MSGraph.Chart.8 8
Slide 10: Shifting Ages of Unmarried Mothers: 1970 & 2007
Shifting Ages of Unmarried Mothers: 1970 & 2007 1970 & 2007 1970 & 2007 1970 & 2007 1970 & 2007 The 1.7 million births to unmarried mothers in 2008 represented 41% of all births that year. 9
Slide 11: Delayed Childbearing 1970 - 2006
Delayed Childbearing 1970 - 2006 Delayed Childbearing 1970 - 2006 Delayed Childbearing 1970 - 2006 10 Mothers aged 40 or older were the only age group to experience an increase in births from 2007 to 2008.
Slide 12: Company Structure, Strengths and Future Strategies
Company Structure, Strengths and Future Strategies and Future Strategies and Future Strategies 11
Slide 13: Crown Crafts Infant Products
Crown Crafts Infant Products Leading manufacturer of infant and toddler bedding, blankets, and accessories to mass and specialty markets. Resulted from a 1999 merger between Red Calliope (founded in 1969) and Noel Joanna (NoJo - founded in 1970), two pioneers in the infant products industry acquired
Slide 14: Crown Crafts Infant Products
Crown Crafts Infant Products 13
Slide 15: Hamco
Leading designer, producer and marketer of infant and toddler bib, bath and disposable products. Significant market share in the bib category. Founded in 1984 and acquired by the Company in 1997. Known for its extensive proprietary design expertise. Acquired, on July 2, 2009, the assets of Neat Solu
Slide 16: Hamco Products
HAMCO™ PRODUCTS ed 5 ; \— a
Slide 17: Neat Solutions
Founded in 1995 and acquired by Hamco, Inc. in July 2009. Leading designer, producer and marketer of products for parents of infants and toddlers, with a focus on products that provide convenience and germ protection. Disposable Stick-on Placemats Disposable Toilet Seat Covers Disposable Floor Mats
Slide 18: Neat Solutions Products
NEAT SOLUTIONS PRODUCTS 17
Slide 19: 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 and India. Crown Crafts, Inc. has developed strong relationships with many manufacturers and contra
Slide 20: Licenses
LICENSES American Fisher-Price’ ses ESes Letdivow- icguelodeon. Ba 4 BABY vod ANB, ai.
Slide 21: Company-Owned Brands
) COMPANY-OWNED BRANDS N ES lO ¢ mang) S \ muracles' / = only the best for baby” aes naturally for baby~ “Ngo R . —_ ig) hatchd Noo Kimberly Grant fresh IDEAS for KIDS "Nga » Ngo % poy Measeres 20 i
Slide 22: Private Label Programs
¢, PRIVATE LABEL PROGRAMS Walmart®\< | | @ TARGET tovsyipus Oiske cy ay
Slide 23: Dominant Retail Distribution
DOMINANT RETAIL DISTRIBUTION 22
Slide 24: Acquisition of Infant and Toddler Product Lines from Springs
Acquisition of Infant and Toddler Product Lines from Springs Acquired the infant and toddler product lines from Springs Global US in November 2007 for approximately $11 million. The acquisition added approximately $25 million in net sales, $3.5 million in pre-tax net income, $4.4 million in EBITDA a
Slide 25: Acquisition of the Assets of Neat Solutions, Inc.
Acquisition of the Assets of Neat Solutions, Inc. Acquired substantially all of the assets of Neat Solutions, Inc. in July 2009 for approximately $4.4 million. The portfolio of products acquired include the Table Topper(r) Stay-in-Place Mat(r), the Potty Topper(r) toilet seat cover, diaper changing
Slide 26: Financial Highlights
Financial Highlights Financial Highlights 25
Slide 27: Recent Financial Developments
Recent Financial Developments Completed a debt and capital restructuring in July 2006 which resulted in a reduction of debt from $24 million to $13 million, the extinguishment of warrants and lower interest rates. Acquired the infant and toddler product lines from Springs in November 2007. Recorded
Slide 28: Concerns over CIT Group, Inc.
Concerns over CIT Group, Inc. Beginning in March 2008, Crown Crafts had drawn down the bulk of the availability on its revolving line of credit with CIT in the event that CIT's liquidity deteriorated to the point that they were unable to fund draws upon the revolving line of credit. The cash held by
Slide 29: Operating Highlights
Operating Highlights (in thousands, except percentages and per share data) (in thousands, except percentages and per share data) (in thousands, except percentages and per share data) 28
Slide 30: Adjusted EBITDA
Adjusted EBITDA (in thousands) (in thousands) (in thousands) 29
Slide 31: Revolving and Term Debt Balances
Revolving and Term Debt Balances (In millions) (In millions) (In millions) Springs purchased in November, 2007 Net of Cash Invested 30
Slide 32: 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
Slide 33: For Additional Information
Attendees and other viewers of the preceding presentation are advised to read all reports and other filings made by the Company with the Securities and Exchange Commission under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Copies of these filings may b
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