Gonzales-based baby products company Crown Crafts reported reduced third-quarter earnings from costs associated with two business acquisitions, a customer bankruptcy and tax expenses related to the recent federal tax overhaul.
Third-quarter net income dipped to $531,000, or 5 cents per share, on net sales of $17.5 million, compared with a $1.9 million, 19 cents per share, profit a year earlier on net sales of $17.3 million.
Pre-tax expenses for the quarter included $81,000 in credit coverage fees on a retailer that filed for bankruptcy during the second quarter and $160,000 in costs associated with the company’s acquisitions of Carousel Designs and Sassy brand products. Charges totaling $541,000 were attributed to recent tax legislation that lowered income by more than half and cut earnings per share by 5 cents for the quarter.
The company said the lower 21 percent corporate tax rate from the federal tax overhaul will positively affect its future earnings and it expects positive results from its Carousel Designs and Sassy brand acquisitions.