Crown Crafts ends slump with 2Q profit
November 19, 2001,
Atlanta — For the first time in nearly three years, Crown Crafts Inc. reported a financial quarter in the black. The company posted net income of $2.1 million in its second quarter, reversing an $11.4 million net loss in the second quarter of last year.
Crown Crafts' statement gave its actual net income for the quarter as $27.1 million. This figure includes an extraordinary gain of $25 million, which the company realized from refinancing its debt.
Keying in on Crown Crafts' first profitable quarter since 1998, Randall Chestnut, its chairman, president and ceo, said, "This proves that the restructuring, which reduced the company's debt from $125.6 million on April 2, 2000, to $44.8 million on Sept. 30, 2001, has been successful. Although we face a challenging retail environment due to the slowing economy, we are optimistic that the improvements are sustainable."
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