COPPELL, Texas–Craftmade International Inc. reported a decrease in net income of 14.7 percent to $639,000 for the third quarter ended March 31.
The company also reported a quarterly sales increase of 144 percent to $54.9 million, reflecting its acquisition of casual furniture maker Woodard LLC.
Craftmade said the Woodard acquisition boosted consolidated net sales, partially offsetting the decrease in ceiling fan, lighting and accessories sales in both operating segments, primarily due to the continued decline in the overall housing market.
In the lighting showroom segment, quarterly net sales of ceiling fans, lighting and accessories were $11.6 million, a decrease of 15.2 percent from the same period in the prior year. Incremental net sales to patio dealers and hospitality customers of Woodard outdoor furniture were $11.5 million for the quarter.
To mass merchants, third-quarter net sales of lighting and accessories were $7.4 million, a 15.2 percent decline from the prior-year period. Incremental sales to mass merchants of outdoor furniture were $24.3 million for the quarter, the company reported.
Quarterly income from operations increased 15.6 percent to $1.6 million, compared with $1.4 million last year.
Craftmade’s quarterly gross profit as a percentage of net sales decreased 12.0 percent to 19.5 percent, compared with 31.5 percent for the prior-year quarter, primarily due to increased sales of Woodard products, which carry a lower gross profit as compared to net sales, the company reported.
