Crown Crafts,Inc。(CRWS) 首席执行官 Randall Chestnut 在 2019年 第四季度业绩 - 收益电话会议记录

Crown Crafts, Inc. (NASDAQ:CRWS) Q4 2019 Earnings Conference Call June 13, 2019 2:00 PM ET

Crown Crafts,Inc。(纳斯达克股票代码:[CRWS])2019年第四季度收益电话会议2019年6月13日美国东部时间下午2:00

公司参与者

Randall Chestnut - Chairman, President and Chief Executive Officer
Olivia Elliott - Vice President and Chief Financial Officer

  • Randall Chestnut - 董事长,总裁兼首席执行官
  • Olivia Elliott - 副总裁兼首席财务官

电话会议参与者

Cindy Ding - D.A. Davidson
Josh Peters - Zenith Sterling Advisers
Ralph Marash - First Manhattan Company

  • Cindy Ding - D.A.戴维森
  • Josh Peters - Zenith Sterling Advisers
  • 拉尔夫马拉什 - 第一曼哈顿公司

会议主持员

Hello, ladies and gentlemen and welcome to the Crown Crafts, Inc. Investors Conference Call. Your host for today’s call is Mr. Randall Chestnut, Chairman, President and Chief Executive Officer. [Operator Instructions] Any reproduction of this call in whole or in part is not permitted without prior written authorization from Crown Crafts, Inc. As a reminder, this conference is being recorded today, June 13, 2019. And at this time, I would now like to turn the call over to Ms. Olivia Elliott, Vice President and CFO who will begin the call. Please proceed.

您好,女士们,先生们,欢迎来到Crown Crafts,Inc。投资者电话会议。 今天召开的主持人是Randall Chestnut先生,董事长,总裁兼首席执行官。 [操作员说明]未经Crown Crafts,Inc。事先书面授权,不得全部或部分复制本次电话。提醒一下,本次会议将于2019年6月13日进行记录。此时,我会 现在想把这个电话转给负责电话会议的副总裁兼首席财务官Olivia Elliott女士。 请继续

Olivia Elliott

Thank you. Welcome to the Crown Crafts investor conference call for the fourth quarter and full fiscal year 2019. With me today is Randall Chestnut, the company’s President and Chief Executive Officer.

谢谢。 欢迎参加第四季度和2019财年的Crown Crafts投资者电话会议。今天与我同在的是公司总裁兼首席执行官Randall Chestnut。

兰德尔板栗

Good afternoon.

下午好。

Olivia Elliott

A telephone replay of the call will be available 1 hour after the end of the call through 4:00 p.m. Central Time on June 20, 2019. A web replay of the call will be available for 90 days and can be accessed by visiting our website at www.crowncrafts.com.
Before we begin, I would like to remind listeners of the cautionary language regarding forward-looking statements contained in the press release. That same language applies to comments made in today’s conference call. Also in regard to comments made in today’s conference call that are related to the company’s recently announced dividend, its history of paying dividends and the annualized yield on the company’s common stock. We remind listeners that the declaration of each dividend is at the discretion of the company’s Board of Directors and the company expressly disclaims any assurances as to the frequency and amount of any future dividend.
I will now turn the call over to Randall.

电话会议结束后1小时至下午4点将提供电话重播。 中央时间2019年6月20日。电话会议的网络重播将持续90天,可访问我们的网站www.crowncrafts.com。

在开始之前,我想提醒听众关于新闻稿中包含的前瞻性陈述的警示语。 同样的语言适用于今天电话会议上的评论。 此外,关于今天电话会议上发表的评论,这些评论与公司最近公布的股息,支付股息的历史以及公司普通股的年化收益率有关。 我们提醒听众,每项股息的声明均由公司董事会酌情决定,公司明确表示不保证任何未来股息的频率和金额。

我现在将电话转到兰德尔。

兰德尔板栗

Olivia, thank you and good afternoon again to everyone. Before the market opened this morning, we released our press release for the fourth quarter and full year of FY ’19 ending March 31 of this year 2019. I will touch on the numbers for the quarter and the year, a few comments and Olivia will come back with more detail.
Net sales for the quarter in the current year were $21,717,000 as opposed to $22,686,000 in the same quarter last year are down $969,000 or 4.3%. Net income for FY ‘19 was $1,392,000 as opposed to $1,247,000 in the same quarter last year, or up $145,000 or 11.6%. Diluted earnings per share in the current year were $0.14 as opposed to $0.12 last year same quarter.
Turning to the full year, net sales for the full year were $76,381,000 as opposed to last year FY ‘18 of $70,270,000 or up $6,111,000 or 8.7%. Net income for FY ‘19 was $5,019,000 as opposed to FY ‘18 of $3,021,000 or up $1,998,000 or 66.1%. Diluted earnings per share for the current year were $0.50 and in the previous year FY ‘18 were $0.30. As we began FY ‘19 we were dealing with some very difficult market conditions. Late in fiscal 2018, our second largest customer went into liquidation. Not only did we lose a large customer, we also had to deal with a tremendous amount of merchandise that flooded the market as in essence they became one of our competitors. We began the year looking for new customers to replace this huge hold.
Over the course of the year, FY ‘19, we recovered nicely. We finished the year with an 8.7% increase in net sales. We also finished the year with a 66.1% increase in net income. Of course, this was helped by not having numerous non-recurring charges to repeat in the current year. Most of which were related to the bankruptcy and subsequent liquidation of our second largest customer. Gross profit as a percent of net sales for the quarter increased from 25.9% in the prior year to 28.6% in the current year. Gross profit as a percent of net sales for the year increased from 28.1% in the prior year to 29.2% in the current year. We finished strong and we are proud of the efforts of all of our staff. Fiscal ‘19 was a good year.
Turning to the dividends on May 13 of this year we announced a quarterly dividend of $0.08 per share. This represents a 6.67% annualized yield based on yesterday’s closing price per share of the company’s common stock. This quarterly dividend will be paid July 5, 2019 to shareholders of record on June 14, 2019. It was a very challenge – in this very challenging year we actually returned $3.2 million in cash to the shareholders, which was a tremendous feat. We are proud of the track record. We continue to operate the business in a manner that generates very strong cash flow and delivers substantial value to our shareholders.
Olivia, I will turn it back to you for comments.

奥利维亚,谢谢你,大家下午好。在今天上午开市之前,我们发布了截至2019年3月31日的第四季度和全年的新闻发布。我将触及季度和年度的数据,一些评论和Olivia将回来更详细一点。

本季度的净销售额为21,717,000美元,而去年同期的22,686,000美元则下降了969,000美元或4.3%。 19财年的净收入为1,392,000美元,而去年同期为1,247,000美元,或增加145,000美元或11.6%。本年度每股摊薄收益为0.14美元,而去年同期为0.12美元。

谈到全年,全年净销售额为76,381,000美元,而去年同期为70,270,000美元或上涨6,111,000美元或8.7%。 19财年的净收入为5,019,000美元,而18财年为3,021,000美元或上涨1,998,000美元或66.1%。本年度每股摊薄收益为0.50美元,而去年同期为0.30美元。在我们从19财年开始,我们处理了一些非常困难的市场条件。 2018财年末,我们的第二大客户进入清算阶段。我们不仅失去了大客户,还不得不处理大量涌入市场的商品,因为它们本质上成为我们的竞争对手之一。今年我们开始寻找新客户来取代这个巨大的控股。

在整个一年中,19财年,我们恢复得很好。我们今年的净销售额增长了8.7%。我们今年也完成了净收入增长66.1%。当然,由于今年没有多次非经常性费用重复,这有助于此。其中大部分与我们第二大客户的破产和随后的清算有关。毛利润占本季度净销售额的百分比从上年的25.9%增加到当年的28.6%。毛利润占年度净销售额的百分比从上年的28.1%增加到本年度的29.2%。我们结束了,我们为所有员工的努力感到自豪。 19财年是一个好年头。

谈到今年5月13日的股息,我们宣布了每股0.08美元的季度股息。根据昨天公司普通股的每股收盘价计算,这代表了6.67%的年化收益率。该季度股息将于2019年7月5日支付给2019年6月14日的股东。这是一个非常大的挑战 - 在这个充满挑战的一年里,我们实际向股东返还了320万美元现金,这是一项巨大的成就。我们为此业绩感到自豪。我们继续以可产生强劲现金流的方式经营业务,并为股东带来可观的价值。

奥利维亚,我会把它转回给你评论。

Olivia Elliott

Thank you. I am only going to give financial highlights. For more details, please refer to the company’s Form 10-K filed with the Securities and Exchange Commission this morning.
Net sales were $21.7 million for the fourth quarter of fiscal 2019, down $969,000 or 4.3% from prior year sales of $22.7 million. For the year, net sales were $76.4 million for fiscal 2019, up $6.1 million or 8.7% from $70.3 million in the prior year. The increase in sales for the year is primarily due to sales that resulted from the acquisitions of Sassy and Carousel during fiscal 2018. Sassy sales were $11.8 million in fiscal 2019 compared to $2.1 million in fiscal 2018. Carousel sales were $6.5 million in fiscal 2019 compared to $5.4 million in the prior year. These increased sales were partially offset by the elimination of Toys R Us, Babies R Us, which amounted to $9.7 million during the prior year.
Gross profit increased by $326,000 and was 28.6% of net sales for the current year quarter compared with the prior year quarter gross profit of 25.9% of net sales. Gross profit increased by $2.5 million and increased from 28.1% of net sales for fiscal 2018 to 29.2% of net sales for the current year. The increase is primarily due to the net higher sales levels in the current year. In addition, sales in the current year were made at overall higher gross profit percentages and sales to Toys R Us, Babies R Us during the prior year leading up to and continuing through their bankruptcy and liquidation resulted in a shift for less profitable product mix and shortfalls of minimum guarantee royalties in the prior year.
Marketing and administrative expenses increased by $922,000 for fiscal 2019 compared with fiscal 2018. Contributing to this increase is $3.1 million in cost incurred during the current year that were associated with Carousel compared with $2.6 million in such costs during the prior year, which included $347,000 in acquisition costs. Cost in the current year also included $210,000 in charges associated with transferring most of the Sassy inventory from Grand Rapids, Michigan to the company’s distribution facility in Compton, California. Offsetting the increase in the current year is the elimination of credit coverage fee of $653,000 and a bad debt charge of $218,000 that occurred in the prior year that were associated with the bankruptcy and liquidation of Toys R Us.
The current year provision for income taxes is based upon an annual effective tax rate from continuing operations of 24.4% compared to the prior year rate of 32.7%. Tax legislation enacted in 2017 included a provision to lower the federal corporate income tax rate from 34% to 21% effective as of January 1, 2018. As the company’s fiscal year 2018 ended on April 1, 2018, the lower corporate income tax rate was phased in resulting in a blended federal statutory rate of 30.75% for fiscal year 2018. The company provides for deferred income taxes based on the difference between the financial statement and tax basis of the company’s assets and liabilities.

谢谢。我只会提供财务亮点。有关详细信息,请参阅今天上午向美国证券交易委员会提交的公司10-K表格。

2019财年第四季度净销售额为2170万美元,比去年同期的2270万美元下降969,000美元或4.3%。本年度,2019财年的净销售额为7640万美元,比去年的7030万美元增加了610万美元,增幅为8.7%。本年度销售额的增长主要是由于2018财年收购Sassy和Carousel所带来的销售额。2019财年的Sassy销售额为1,180万美元,而2018财年的销售额为210万美元。2019财年的Carousel销售额为650万美元去年达到540万美元。这些增加的销售额部分被去年玩具反斗城(婴儿用品)的消除所抵消,其中去年为970万美元。

毛利润增加326,000美元,占本季度净销售额的28.6%,而去年同期的季度毛利润为净销售额的25.9%。毛利增加250万美元,从2018财年净销售额的28.1%增加到本年度净销售额的29.2%。增长主要是由于本年度销售净额较高。此外,本年度的销售额总体上是毛利率较高,而且上一年度玩具反斗城,婴儿服务的销售额一直持续到破产和清算,导致产品组合利润减少,上一年的最低保证特许权使用费不足。

与2018财年相比,2019财年的营销和管理费用增加了922,000美元。与此相比,本年度与Carousel相关的成本为310万美元,而去年同期为260万美元,其中包括347,000美元。购置成本。本年度的成本还包括210,000美元的费用,将大部分Sassy库存从密歇根州大急流城转移到该公司位于加利福尼亚州康普顿的分销中心。抵消当年的增长是取消上一年发生的与玩具反斗城的破产和清算相关的信贷保险费653,000美元和坏账费用218,000美元。

本年度所得税准备金是根据持续经营年度有效税率24.4%计算,而去年同期税率为32.7%。 2017年颁布的税收立法包括将联邦企业所得税税率从2018年1月1日的34%降至21%的规定。由于公司的2018财年于2018年4月1日结束,企业所得税税率较低。分阶段导致2018财年的联邦法定税率为30.75%。公司根据公司资产和负债的财务报表和税基之间的差额提供递延所得税。

The company’s net deferred income tax assets had previously been recorded based upon the enacted composite federal state and foreign income tax rate of approximately 37.5%. That would have been applied as the financial statement tax differences began to revert. Because these differences are now expected to reverse at a composite rate of approximately 24.5%, the company was required to revalue its net deferred income tax assets. This revaluation resulted in a discrete charged income tax expense of $377,000 during fiscal 2018. Additionally, the company’s measurement regarding the tax impact of certain state apportionment percentages are measured net of federal income tax. The company also revalued its reserve for unrecognized tax liabilities, which resulted in a net discrete charge to income tax expense of $120,000 during fiscal 2018.
During both fiscal 2019 and 2018, the company recorded discrete entries associated with excess tax benefits or charges arising from the vesting of non-vested stock during the period and also recorded reserves for unrecognized tax liability. The effective tax rate from continuing operations combined with discrete income tax charges and benefits resulted in an overall provision for income taxes of 26.1% for the current year and 44.3% for the prior year.
Net income for the fourth quarter of fiscal 2019 was $1.4 million or $0.14 per diluted share compared with net income of $1.2 million or $0.12 per diluted share in the fourth quarter of fiscal 2018. Net income for fiscal 2019 was $5 million or $0.50 per diluted share compared with net income of $3 million or $0.30 per diluted share for fiscal 2018.
I will now return the call to Randall.

该公司的递延所得税净资产以前是根据已颁布的综合联邦州和外国所得税税率约37.5%记录的。随着财务报表税收差异开始回归,这本来会被应用。由于现在预计这些差异将以约24.5%的综合利率反转,因此该公司被要求重估其递延所得税资产净额。这一重估导致2018财年的离散收取所得税费用为377,000美元。此外,该公司对某些州分摊比例的税收影响的计量是按联邦所得税计算的。该公司还对未确认的纳税义务的储备进行了重估,导致2018财年的所得税净支出净额为120,000美元。

在2019财年和2018年期间,公司记录了与在此期间归属非归属股票而产生的超额税收优惠或收费相关的离散条目,并记录了未确认纳税义务的储备金。持续经营的有效税率加上离散的所得税费和福利,导致本年度所得税的总体拨备为26.1%,而去年则为44.3%。

2019财年第四季度的净收入为140万美元或每股摊薄收益0.14美元,而2018财年第四季度的净收入为120万美元或每股摊薄收益0.12美元.2011财年的净收入为500万美元或每股摊薄收益0.50美元与2018财年的净收入300万美元或每股摊薄收益0.30美元相比。

我现在将致电Randall。

兰德尔板栗

Olivia, thank you very much and that concludes our remarks. And now Ian, if you come back we can open it up to any questions that anyone on the line may have.

奥利维亚,非常感谢你,我们的发言结束了。 而现在伊恩,如果你回来,我们可以打开任何线上任何人可能有的问题。

问答环节

[Operator Instructions] Our first question comes from Linda Bolton-Weiser from D.A. Davidson. Linda, please proceed.

[操作员说明]我们的第一个问题来自D.A.的Linda Bolton-Weiser。戴维森。 琳达,请继续。

Cindy Ding

Hello. Hi, Randall. Hi, Olivia? This is Cindy Ding on for Linda. Thanks for taking our questions. So, our first question is can we expect modest sales growth in fiscal ‘20 and what you see as the key drivers of growth? Thanks.

你好。 嗨,兰德尔。 嗨,奥利维亚? 对于Linda来说,这是Cindy Ding。 谢谢你提出我们的问题。 那么,我们的第一个问题是,我们可以预期在20财年的销售增长适度以及您认为增长的主要推动因素是什么? 谢谢。

兰德尔板栗

Okay. I am sorry I didn’t quite get the question. It was a little blurred.

好的。 对不起,我没有得到这个问题。 它有点模糊。

Cindy Ding

I am sorry, let me repeat the question. So can we expect modest sales growth in fiscal ‘20 and what do you see as the key drivers of growth?

对不起,让我重复一下这个问题。 那么我们可以预期在20财年的销售增长适度,您认为增长的主要驱动因素是什么?

兰德尔板栗

Okay. And I know you are not Linda, so your name is, what’s your name?

好的。 而且我知道你不是琳达,所以你的名字是,你的名字是什么?

Cindy Ding

Hi, this is Cindy on for Linda.

嗨,这是Cindy为琳达。

兰德尔板栗

Cindy, okay. Hey, Cindy. We spoke with Linda earlier and she told me you were going to be on. The drivers for the growth is and we are working diligently to do this is developing new products. And it’s not just new product within the categories that we currently participate in, it would be products – developing products in adjacent categories to the infant and toddler businesses that we are in, okay. And we are doing that as rapidly as we possibly can. We have nothing today to announce, but we accept that we are working towards that end.

辛迪,好的。 嘿,辛迪。 我们早些时候和琳达交谈过,她告诉我你将会继续。 增长的驱动力是,我们正在努力做到这一点正在开发新产品。 它不仅仅是我们目前参与的类别中的新产品,而是产品 - 为我们所在的婴幼儿企业开发相邻类别的产品,没关系。 而且我们正在尽可能快地做到这一点。 我们今天没有任何消息要宣布,但我们接受我们正在为此而努力。

Cindy Ding

Great. And our second question is your cash flow was really strong in fiscal ‘19 and do you expect a similar level in fiscal ‘20?

非常好。 我们的第二个问题是你在19财年的现金流非常强劲,你预计在20财年会有类似的水平吗?

兰德尔板栗

Well, I mean the best way I can answer the cash flow is yes, it was very strong and you have got to look back for the last 15 to 17 years and our cash flow has been strong over the last 15 to 17 years, as the market adjust, as situations occur, i.e., bankruptcy, liquidation of major customers, we adjust our business to compensate for that and to protect the cash flow. So our cash flow if you look back over almost 20 years has been very, very, very strong. So we see no reason to believe that we cannot continue there. We are very low debt. We have considerable amount of borrowing availability. And so therefore, we think from the balance sheet side we are healthy.

好吧,我的意思是我可以回答现金流的最佳方式是,非常强大,你必须回顾过去15到17年,我们的现金流在过去的15到17年里一直很强劲, 市场调整,在情况发生时,即破产,清算主要客户,我们调整业务以弥补这一点并保护现金流。 因此,如果你回顾近20年来我们的现金流非常,非常非常强大。 所以我们认为没有理由相信我们不能继续那里。 我们的债务很低。 我们有相当数量的借款可用性。 因此,我们从资产负债表来看,我们是健康的。

Cindy Ding

Thanks. And then are you actually looking for potential acquisitions and has the Babies R Us liquidation created any opportunities?

谢谢。 那么你真的在寻找潜在的收购并且Babies R Us清算是否创造了任何机会?

兰德尔板栗

The answer to that is to both of those is yes, we think that the Babies R Us situation has created some opportunities. And yes, we are always looking for additional acquisitions that would complement the product categories and the subsidiaries that we are in. So that’s an ongoing active conversation.

答案是两者都是肯定的,我们认为Babies R Us的情况已经创造了一些机会。 是的,我们一直在寻找额外的收购,以补充我们所处的产品类别和子公司。因此,这是一个持续的积极对话。

Cindy Ding

Okay. And how will you manage through the impacts of the 25% tariffs if they go through?

好的。 如果通过25%关税的影响,您将如何管理?

兰德尔板栗

That’s a good question. And we will address it in the following manner and we believe that most of our competitors are going to take the same approach is – our margins are not strong enough to support us absorbing a 25% tariff increase. We have had very minimal impact through rounds 1, 2 and 3 and we have passed those on to our customers. And without exception, put that in manner, don’t get me wrong, they haven’t been large numbers, but in every case the customer accepted it sometime not quite as quick as others did, but they did accept the price increase with one small exception where customer discontinued the product, but as we learned, they have intended to discontinue it anyway for performance reasons. So our philosophy is we are going to pass it on and we are going to pass it on to the consumer – to our customers and we think the retailers are going to pass it on to the ultimate consumer. And I applaud a couple of – one in particular, the large retailer who has gone public and said we will pass it on and it’s going to be passed on ultimately to the consumer. So we can’t absorb it, we are going to pass it on. The timing we don’t know for sure when that will be, but it’s anticipated that it will be sometime in July if it occurs.

这是个好问题。我们将以下列方式解决这个问题,我们认为大多数竞争对手都会采用相同的方法 - 我们的利润率不足以支持我们吸收25%的关税增长。通过第1,2和3轮我们的影响非常小,我们已经将这些影响传递给了我们的客户。毫无例外地,把它放在一边,不要误会我的意思,它们并不是大数字,但在每种情况下,客户接受它的时间并不像其他人那么快,但他们确实接受了价格上涨客户停止使用该产品的小例外情况,但据我们了解,出于性能原因,他们仍打算停止使用该产品。因此,我们的理念是,我们将继续传承它,我们将把它传递给消费者 - 我们的客户,我们认为零售商将把它传递给最终的消费者。我赞赏了一些 - 特别是一家大型零售商,他已经上市并表示我们会将其传递下去,并最终传递给消费者。所以我们无法吸收它,我们将把它传递下去。我们不知道什么时候会确定的时间,但预计如果它发生的话,它将在七月的某个时间。

Cindy Ding

Okay, great. And we have a follow-up to the previous question do you think demand for your products will be impacted by the tariff related price increases?

好,太棒了。 我们对上一个问题进行了跟进,您认为您的产品需求会受到与关税相关的价格上涨的影响吗?

兰德尔板栗

That’s hard to say. Okay, we don’t know the answer to that question. It could have an effect, but we have learned over the many, many years that if there is discretionary spending in the family that the baby, the infant, who is our market, infant and toddler are not going to be effective as the family has to cut the budget as maybe some of the older kids or the parents, i.e., the father may wear shoes with holes on the bottom still, but they are going to try to provide for the new born baby. So we are hoping that, that still takes place. Will there be some downshifting to less expensive product? Could be, we don’t know, okay. We have never been through rough seas like this, where there is a 25% increase in one pair of sports. And so we just have to see how it happens.

这很难说。 好的,我们不知道这个问题的答案。 它可能会产生影响,但我们已经了解多年,如果在家庭中有可自由支配的开支,婴儿,婴儿,我们的市场,婴儿和幼儿都不会像家庭一样有效。 可能会像一些年龄较大的孩子或父母一样削减预算,也就是说,父亲可能会穿鞋底有洞,但他们会尝试为新生婴儿提供服务。 所以我们希望,这仍然存在。 对于较便宜的产品会有一些降价吗? 可能,我们不知道,好吧。 我们从未经历过这样的波涛汹涌的大海,其中一对运动增加了25%。 所以我们只需看看它是如何发生的。

Cindy Ding

Okay, thank you very much. That’s all of my questions.

好的,非常感谢。 这就是我的所有问题。

兰德尔板栗

Thank you. Have a good day.

谢谢。 祝你有美好的一天。

会议主持员

Our next question comes from Justin Putnam of [indiscernible]. Justin, please proceed.

我们的下一个问题来自[音频不清晰]的贾斯汀普特南。 贾斯汀,请继续。

身份不明的分析师

Great. I just had a more quick follow up on the impact on the tariff and you are pretty clear that you are going to pass price increases along. And I was curious to know if there are any opportunities for you to improve the pricing for your suppliesyou’re your negotiations for your suppliers?

非常好。 我只是对关税的影响进行了更快速的跟进,你很清楚你将要通过价格上涨。 我很想知道您是否有机会提高供应品的价格,您的供应商谈判是否合适?

兰德尔板栗

I mean just there might be a little, but there is no enough to offset a 25% price increase I can assure you. As you may have noticed, the exchange rate between the RMB versus the dollar has gotten, the RMB has gotten less exchange rate is going up. So, there maybe a point in the future if it keeps going up, it’s in the low 6 90s or something as of today. If it keeps going up and gets above 7, there is an opportunity to go back to the vendors and shave a little off, but it’s nowhere near what the cost of the tariffs are going to be.

我的意思是可能会有一点点,但是没有足够的价格抵消我可以向你保证的25%的价格上涨。 您可能已经注意到,人民币兑美元之间的汇率已经上升,人民币兑换率已经下降。 所以,如果它继续上升,它可能会在未来有一个点,它在今天的低点6 90s或者什么东西。 如果它继续上升并超过7,那么就有机会回到供应商并削减一点点,但它远不及关税的成本。

身份不明的分析师

Okay, great. Next question there is on a year-over-year basis for the fiscal fourth quarter, it looked like your Carousel and Sassy numbers for the quarter went to kind of different directions with Carousel being down maybe 40% year-over-year and Sassy being up somewhere around 50% for the quarter. I was just curious what impact may have been in the quarter, but more importantly what kind of your outlook is going forward?

确实如此。 不,它可以包括。......

兰德尔板栗

Well, the Hamco Sassy business, this – we purchased Sassy in December ‘17 so we didn’t get the full benefit that first year, we only got 4 months or 3.5 months of effective Sassy, but this past year we had the full 12 months effect. So that did help.

好吧,Hamco Sassy的业务,这个 - 我们在17年12月购买了Sassy,所以我们没有得到第一年的全部好处,我们只有4个月或3.5个月的有效Sassy,但是在过去的一年里我们有了全部12个 月影响。 这确实有帮助。

身份不明的分析师

No, I am talking about quarter-over-quarter sorry?

不,我说的是四分之一的季度对不起?

兰德尔板栗

Okay. The quarter to quarter, I mean, it’s hard to say quarter-to-quarter it could be one order that got moved up or one order that got delayed, okay and that could happen the last day of the month, where a truck doesn’t pickup and it shifts at one quarter to the next. So it’s sort of hard to analyze a business based on one quarter to one quarter.

好的。 季度到季度,我的意思是,很难说季度和季度可能是一个订单上升或一个订单延迟,好吧,这可能发生在本月的最后一天,卡车没有 拾取并在四分之一转移到下一个。 因此,基于四分之一到四分之一的业务分析是很困难的。

身份不明的分析师

Okay. Then so for fiscal 2019 actually was $11.8 million, I think, is that a good annual run-rate for that business or has there been a changes in the expectations for that one?

好的。 那么,对于2019财年,实际上是1180万美元,我认为,该业务的年度运营率是否良好,或者对该业务的期望是否发生了变化?

兰德尔板栗

We don’t make forward-looking predictions, but I mean it’s a solid business and we think that it’s going to continue to be solid for the future. We are very pleased with that acquisition.

我们没有做出前瞻性的预测,但我的意思是它是一个可靠的业务,我们认为它将继续为未来做好准备。 我们对此次收购感到非常满意。

身份不明的分析师

And the same question for Carousel is there anything unusual in business this year and let me put it that way?

对于Carousel来说,同样的问题是今年有什么不寻常的事情,让我这样说吧?

Olivia Elliott

Anything unusual in the Carousel business coming up for 2020.

2020年Carousel业务出现异常。

兰德尔板栗

Yes, we are changing a few things that we are just not at liberty to say as we speak, but we are changing a few things at Carousel to expand their sales opportunity. And we think that’s going to payoff in 2020 some new channels of distribution etcetera.

是的,我们正在改变一些我们在发言时不能随意说出的事情,但我们正在改变Carousel的一些事情来扩大他们的销售机会。 我们认为,这将在2020年带来一些新的分销渠道等。

身份不明的分析师

Okay. Last question there and Olivia, this might be more for you then, CapEx for 2020 was up little bit in 2019, I am just curious to know if there was any change in 2020 in CapEx?

好的。 那里的最后一个问题和奥利维亚,这对你来说可能更合适,20100年的资本支出在2019年有所上升,我很想知道2020年资本支出是否有任何变化?

Olivia Elliott

The reason that it’s up is the Sassy acquisitions for the toys. Toys include moulds, etcetera, for the manufacturing process that we put those on the books of fixed assets. So that’s the reason for the increase and with that business being a good business, I would expect that to continue to be that – pretty close to the rate.

它的成功之处在于Sassy对玩具的收购。 玩具包括模具等,用于制造过程,我们把它们放在固定资产的账簿上。 因此,这是增加的原因,并且该业务是一个好的业务,我希望继续这样 - 非常接近利率。

身份不明的分析师

Okay. So maybe it’s got back going forward more in the $700,000 range there?

好的。 那么也许它会在700,000美元范围内回归更多?

Olivia Elliott

I would think it’s going to be closer to what it ran in 2019 than the previous numbers from prior fiscal years.

我认为它将更接近2019年的运行情况,而不是之前财年的数据。

身份不明的分析师

Okay, thank you. Thank you for taking my questions.

好的谢谢你。 感谢您提出我的问题。

兰德尔板栗

Thank you.

谢谢。

Olivia Elliott

Thank you.

谢谢。

会议主持员

At this time, our next question comes from Josh Peters of Zenith Sterling Advisers. Josh, please proceed.

在这个时候,我们的下一个问题来自Zenith Sterling Advisers的Josh Peters。 乔希,请继续。

约什彼得斯

Hello. Congratulations on quite a year here. I agree quite a good job coming back from – I actually wanted to drill in just a little bit more on that thinking about the disruptions that you faced especially in the first couple of quarters of fiscal ‘19 were easy to say not only have you lost Toys R Us as a customer, but that inventory had become a competitor of the own shipment, does that create an opportunity to have something found new outlets for your products here going into fiscal 2020?

你好。 祝贺这里有一年的时间。 我同意回来的工作非常好 - 我实际上想再多花一点时间考虑你所面临的中断,特别是在19财政年度的前几个季度,这很容易说你不仅丢失了 玩具反斗城作为客户,但该库存已成为自己的货物的竞争对手,这是否创造了一个机会,让您的产品在2020财年找到新的商店?

兰德尔板栗

Well, I mean, Josh, thank you for the kind remarks, but now it really doesn’t. The Toys R Us has reemerged as a new company, but it’s really they don’t have any storefronts for any sales in the U.S. it is really a licensing business. So the business that Toys R Us, Babies R Us add has been spread out to a number of retailers that we had before, including Wal-Mart, Amazon, Target, Buy Buy Baby and the list goes on. So there is not like a big huge opportunity to sell into that. It is the same customers that just – they are picking up the bits and pieces and there is no one retailer that stepped up and took it up. So, it’s sort of spread out and it was a tough thing to overcome the loss of our second largest customer.

好吧,我的意思是,乔希,谢谢你的善意评论,但现在却没有。 Toys R Us已经重新成为一家新公司,但实际上他们在美国的任何销售都没有任何店面,这实际上是一项许可业务。 因此,Toys R Us,Babies R Us添加的业务已经分散到我们之前的许多零售商,包括沃尔玛,亚马逊,Target,Buy Buy Baby等等。 因此,没有一个巨大的机会可以卖出。 它只是同样的客户 - 他们正在捡起零碎的东西,而且没有一家零售商加紧并把它拿走了。 因此,它有点分散,克服我们第二大客户的损失是一件艰难的事情。

约什彼得斯

Okay. So at this point you feel like things have kind of sorted themselves out in terms of market share between the different retail partners that you have?

好的。 那么在这一点上,您觉得事情已经根据您拥有的不同零售合作伙伴之间的市场份额进行了整理?

兰德尔板栗

We sure hope so. We think they have yes, but we sure hope so.

我们当然希望如此。 我们认为他们有,但我们当然希望如此。

约什彼得斯

Well, I know in the absence of guidance for this year, I think it would be kind of helpful to get a sense if you are even just lapping some easy comparisons in the year ago period, because that’s kind of what it would look like to me, but I don’t have a feel for how much that business really shifted?

好吧,我知道在没有今年的指导的情况下,我认为如果你甚至只是在一年前的时期进行一些简单的比较,那将会有所帮助,因为这就是它的样子。 我,但我不知道这项业务究竟转移了多少?

兰德尔板栗

Well. And again, we don’t give guidance and we stand pretty firm on that, but what we can tell you is we are out everyday beating the bushes for every possible order that it exists.

好。 再说一遍,我们没有提供指导,我们对此非常坚定,但我们可以告诉你的是,我们每天都在为每一个可能存在的订单敲打灌木丛。

约什彼得斯

Okay. And the other question I want to touch on I think it’s interesting that you consider looking at other acquisitions, what would be your position in terms of your willingness to borrow in order to finance that, is there a feeling on how much leverage you would be willing to be put on the balance sheet in order to finance transactions?

好的。 我想谈谈的另一个问题我认为有趣的是,你考虑看其他收购,你愿意借贷以便为其提供资金的立场是什么,是否有一种感觉,你会有多大的杠杆作用 是否愿意将其纳入资产负债表以便为交易融资?

兰德尔板栗

Yes, there is. I mean, Josh, we are not going to go crazy. I mean, we have had huge debt before and we don’t want to have huge debt again. So any acquisitions we do, yes, we would borrow and we proved it. We did require to do the Sassy acquisition a year and a half ago. So, we are not careful to borrow money and our bank is supportive of us doing that to borrow money, to do acquisitions, but we are not going to go out and runoff a huge, huge debt beyond what we are capable of service.

就在这里。 我的意思是,乔希,我们不会发疯。 我的意思是,我们之前有过巨额债务,我们不想再次承担巨额债务。 所以我们做的任何收购,是的,我们会借用,我们证明了这一点。 我们确实要求在一年半前完成Sassy的收购。 因此,我们不小心借钱,而我们的银行支持我们这样做以借钱,进行收购,但我们不会出去并且超出我们能够服务的巨额巨额债务。

约什彼得斯

Okay, great. And within that framework and I am assuming that the dividend remains the priority for shareholder returns?

好,太棒了。 在该框架内,我假设股息仍然是股东回报的优先事项?

兰德尔板栗

Well, again let me say that dividends are approved quarterly by the board. There is no guarantee that they will be done, but again you got to look in the rearview mirror and we have been doing it now since 2010. So, that’s the best answer I can give you on the future of dividends.

好吧,再次让我说股息每季度由董事会批准。 不能保证它们会被完成,但是你必须再次看后视镜,我们自2010年以来一直在这样做。所以,这是我可以给你的股息未来的最佳答案。

约什彼得斯

Well, I do appreciate the commentary and thanks again.

好吧,我非常感谢评论并再次感谢。

兰德尔板栗

Thank you, Josh. You are quite welcome.

谢谢,乔希。 非常欢迎你。

会议主持员

[Operator Instructions] At this time, our next question will be coming from Ralph Marash of First Manhattan Company. Ralph, please proceed.

[操作员说明]此时,我们的下一个问题将来自First Manhattan Company的Ralph Marash。 拉尔夫,请继续。

拉尔夫·马拉什

Good afternoon, Olivia and Randall.

下午好,奥利维亚和兰德尔。

Olivia Elliott

Hello. How are you?

你好。 你好吗?

兰德尔板栗

Hello, how are you?

你好,你好吗?

拉尔夫·马拉什

Okay. How are you?

好的。 你好吗?

Olivia Elliott

Doing good.

做得好

兰德尔板栗

Good.

好。

拉尔夫·马拉什

Good. I had follow-up on tariffs, are you exploring any alternative sourcing manufacturing sites away from China?

好。 我对关税进行了跟进,你是否正在探索远离中国的任何其他采购生产基地?

兰德尔板栗

Ralph, we have and we have looked in a number of countries and we have done sample costings out of at least a half dozen different countries. And it’s very difficult to find a country that can do it competitive with China. And like in some countries they don’t have the fabric available, the woven fabric, there is knits available on a lot of different countries, but we don’t do a lot of mix. So in the woven category, there is not a whole lot and they have to go back and rely on China to get the fabric. So you have to bring the fabric from China and to whatever country and by the time you do that, the cost is in all cases that we run into so far is in excess of 25%. For instance, there is one basic fabric that we use for a lot of our products and it’s not produced outside of China and it’s got to come from China. So – and when you move that fabric from one country to the other, you are adding cost to it and freight, etcetera, so the savings you get doesn’t really help you and in most cases, it’s equal to or more than the tariffs that are in place. So, we think that we are going to have to bite the bullet, pass it on.

拉尔夫,我们已经和我们在一些国家进行了调查,我们已经从至少六个不同的国家进行了样本成本计算。找到一个可以与中国竞争的国家是非常困难的。就像在一些国家,他们没有可用的面料,织物,在很多不同的国家都有针织物,但我们没有做很多混合。所以在编织类别中,没有很多东西,他们必须回过头来依靠中国来获得面料。因此,您必须将面料从中国带到任何国家,当您这样做时,我们遇到的所有情况下的成本都超过了25%。例如,我们为很多产品使用了一种基本面料,它不是在中国以外生产的,而是来自中国。所以 - 当你将面料从一个国家转移到另一个国家时,你会增加成本和运费等等,所以你得到的节省并没有真正帮助你,在大多数情况下,它等于或超过关税到位了。因此,我们认为我们必须咬紧牙关,传递它。

拉尔夫·马拉什

Thanks. I am sorry I cut you off.

谢谢。 对不起,我把你剪掉了。

兰德尔板栗

We have looked, I promised.

我答应了,我们看了。

拉尔夫·马拉什

Thanks. For Carousel, is all of their products U.S. made?

谢谢。 对于Carousel,他们所有的产品都是美国制造的吗?

兰德尔板栗

At this point, Ralph, it’s all U.S. made. We do some products of imported fabric, that’s imported within its imported fabric and then printed at Carousel and then all made in U.S. Yes, at this point, it’s all U.S. made.

在这一点上,拉尔夫,这都是美国制造的。 我们做一些进口面料的产品,在进口面料中进口,然后在Carousel上印刷,然后全部在美国制造。是的,此时,它都是美国制造的。

拉尔夫·马拉什

And I am assuming given Carousel’s go-to-market and their niche in the market they have, they can absorb that cost structure, but the rest of the company’s products couldn’t absorb domestic manufacturing?

我假设Carousel的市场和他们在市场上的利基,他们可以吸收这种成本结构,但公司的其他产品无法吸收国内制造业?

兰德尔板栗

The rest of the company’s products going….

该公司的其他产品正在......

拉尔夫·马拉什

The rest of the Crown Craft’s products, yes.

Crown Craft的其他产品,是的。

兰德尔板栗

The rest of our business going to customers like Wal-Mart, Target and Amazon quite candidly, no, they cannot absorb the cost it would be to make that product in the U.S.

我们的其余业务非常坦诚地转向沃尔玛,塔吉特和亚马逊等客户,不,他们无法承担在美国生产该产品的成本。

拉尔夫·马拉什

Okay, thanks a lot.

好的,非常感谢。

兰德尔板栗

You are quite welcome. Thank you.

非常欢迎你。 谢谢。

会议主持员

This concludes our question-and-answer session. I would like to turn the conference over back to Randall Chestnut for any closing remarks.

这就是我们的问答环节。 我想把会议转回Randall Chestnut的任何结束语。

兰德尔板栗

Ian, thank you very much and thanks to everyone who participated on the call today. And just a couple of closing remarks, management remains very optimistic about the future of our business. We are pleased with our position in the market. Our staff has done a remarkable job of rebuilding after the demise of Babies R Us and the ultimate liquidation of Babies R Us. We would like to thank all of our customers, employees, suppliers and shareholders for their continued interest and support of our company. Fiscal 2019 was a recovery year. The company remains very solid and has a bright future. We thank you very much and we will speak to you again next quarter. Have a good day.

伊恩,非常感谢,感谢今天参加电话会议的所有人。 只有几句结束语,管理层对我们业务的未来仍然非常乐观。 我们对我们在市场中的地位感到满意。 我们的员工在Babies R Us的消亡和婴儿R Us的终极清算后做了非凡的重建工作。 我们要感谢所有客户,员工,供应商和股东对我们公司的持续关注和支持。 2019财年是复苏年。 公司仍然非常稳固,前途光明。 我们非常感谢你,我们将在下个季度再次与你交谈。 祝你有美好的一天。

会议主持员

The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.

会议现已结束。 感谢您参加今天的演讲。 您现在可以断开连接。

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