Crown Crafts Inc., the Gonzales-based baby products company, reported its fiscal 2015 profit dipped to $5.7 million, or 57 cents per share, although sales increased by 5.5 percent.
A year earlier, Crown turned a profit of $5.8 million, or 59 cents per share. The company’s 2015 fiscal year ended March 29.
However, the 2015 results included an after-tax charge of $530,000, or 5 cents per share, to settle a patent infringement lawsuit. Minneapolis-based BreathableBaby sued Crown in 2012 over some mesh crib liner innovations. The firms settled in December.
Without that charge, Crown’s net income would have been $6.2 million, or 62 cents per share, an increase of more than 8 percent.
“Our strong performance is a result of a number of factors, including expanded business placements, which solidified our position as a market leader,” said E. Randall Chestnut, chairman, president and chief executive officer. “Once again, we finished the year with no debt, and our cash balances increased to $1.8 million from $560,000 at the end of fiscal year 2014.”
Crown’s efforts include an expanded licensing agreement with Carter’s Inc. for infant bed sets and decor.
Chestnut said the company’s adjusted earnings before income tax, depreciation and amortization — a measure of profitability — reached a milestone 12.9 percent of sales in fiscal 2015.
For the fourth quarter, Crown reported net income of $2.1 million, or 21 cents per share, on sales of $26.1 million. For the same period a year ago, Crown generated net income of $2.0 million, or 21 cents per share, on sales of $24.0 million.
Crown’s stock rose 5 cents Friday to close at $8.38.
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