##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended December 31, 2005 or
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission file number
 000-26667
 CRAFTMADE INTERNATIONAL, INC.
  Delaware
    
    75-2057054(State or other jurisdiction
of incorporation or organization)
    
    (I.R.S. Employer
Identification No.)650 South Royal Lane, Suite 100, Coppell, Texas
    
    75019(Address of principal executive offices)
    
    (Zip Code)
  þ o
 o þ o
 o þ




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##### 



Part I. Financial InformationItem 1. Financial StatementsCondensed Consolidated Statements of Income (Unaudited) for the Three and Six Months Ended December 31, 2005 and 2004Condensed Consolidated Balance Sheets at December 31, 2005 (Unaudited) and June 30, 2005Condensed Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended December 31, 2005 and 2004Notes to Condensed Consolidated Financial StatementsItem 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsItem 3. Quantitative and Qualitative Disclosures About Market RiskItem 4. Controls and ProceduresPart II. Other InformationItem 1. Legal ProceedingsItem 2. Unregistered Sales of Equity Securities and Use of ProceedsItem 3. Defaults Upon Senior SecuritiesItem 4. Submission of Matters to a Vote of Security HoldersItem 5. Other InformationItem 6. ExhibitsCertification of CEO Pursuant to Section 302Certification of CFO Pursuant to Section 302Certification of CEO Pursuant to Section 906Certification of CFO Pursuant to Section 906
  2




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##### Table of Contents



PART I
 FINANCIAL INFORMATION
 
   
    FOR THE THREE MONTHS ENDED
    
    
    FOR THE SIX MONTHS ENDEDDecember 31,
    
    
    December 31,
    
    
    December 31,
    
    
    December 31,2005
    
    
    2004
    
    
    2005
    
    
    2004Net sales
    
    $
    28,418
    
    
    $
    28,349
    
    
    $
    58,887
    
    
    $
    57,374Cost of goods sold
    
    
    19,830
    
    
    
    19,537
    
    
    
    41,553
    
    
    
    40,042Gross profit
    
    
    8,588
    
    
    
    8,812
    
    
    
    17,334
    
    
    
    17,332Gross profit as a percentage of net sales
    
    
    30.2
    %
    
    
    31.1
    %
    
    
    29.4
    %
    
    
    30.2
    %Selling, general and administrative expenses
    
    
    4,748
    
    
    
    4,496
    
    
    
    9,646
    
    
    
    9,905Interest expense, net
    
    
    322
    
    
    
    240
    
    
    
    626
    
    
    
    470Depreciation and amortization
    
    
    153
    
    
    
    141
    
    
    
    311
    
    
    
    288Total expenses
    
    
    5,223
    
    
    
    4,877
    
    
    
    10,583
    
    
    
    10,663Income before income taxes and minority interests
    
    
    3,365
    
    
    
    3,935
    
    
    
    6,751
    
    
    
    6,669Minority interests
    
    
    739
    
    
    
    995
    
    
    
    1,472
    
    
    
    1,561Income before income taxes
    
    
    2,626
    
    
    
    2,940
    
    
    
    5,279
    
    
    
    5,108Provision for income taxes
    
    
    929
    
    
    
    1,068
    
    
    
    1,850
    
    
    
    1,838Net income
    
    $
    1,697
    
    
    $
    1,872
    
    
    $
    3,429
    
    
    $
    3,270Basic earnings per common share
    
    $
    0.33
    
    
    $
    0.37
    
    
    $
    0.66
    
    
    $
    0.65Diluted earnings per common share
    
    $
    0.33
    
    
    $
    0.37
    
    
    $
    0.66
    
    
    $
    0.64Cash dividends declared per common share
    
    $
    0.12
    
    
    $
    0.10
    
    
    $
    0.24
    
    
    $
    0.20
 
 3




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##### Table of Contents



December 31,
    
    
    June 30,2005
    
    
    2005(Unaudited)Current assetsCash
    
    $
    1,730
    
    
    $
    9,145Accounts receivable  net of allowance
of $232 and $300, respectively
    
    
    19,015
    
    
    
    21,810Inventories  net of allowance of $637
and $717, respectively
    
    
    20,107
    
    
    
    18,042Deferred income taxes
    
    
    1,726
    
    
    
    1,224Prepaid expenses and other current assets
    
    
    425
    
    
    
    374Total current assets
    
    
    43,003
    
    
    
    50,595Property and equipmentLand
    
    
    1,535
    
    
    
    1,535Building
    
    
    7,796
    
    
    
    7,796Office furniture and equipment
    
    
    9,303
    
    
    
    9,148Leasehold improvements
    
    
    279
    
    
    
    27918,913
    
    
    
    18,758Less: accumulated depreciation
    
    
    (10,561
    )
    
    
    (10,266
    )Total property and equipment, net
    
    
    8,352
    
    
    
    8,492Other assetsGoodwill
    
    
    11,480
    
    
    
    11,480Other intangibles  net of accumulated amortization
of $24 and $10, respectively
    
    
    176
    
    
    
    190Other assets
    
    
    44
    
    
    
    58Total other assets
    
    
    11,700
    
    
    
    11,728Total assets
    
    $
    63,055
    
    
    $
    70,815
 
 4




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##### Table of Contents



December 31,
    
    
    June 30,2005
    
    
    2005(Unaudited)Current liabilitiesNote payable  current
    
    $
    1,072
    
    
    $
    1,319Revolving line of credit
    
    
    1,548
    
    
    
    24,548Accounts payable
    
    
    9,008
    
    
    
    9,299Commissions payable
    
    
    194
    
    
    
    248Income taxes payable/(receivable)
    
    
    262
    
    
    
    (33
    )Accrued customer allowances
    
    
    4,879
    
    
    
    4,164Other accrued expenses
    
    
    926
    
    
    
    1,055Total current liabilities
    
    
    17,889
    
    
    
    40,600Other non-current liabilitiesNote payable  long term
    
    
    1,004
    
    
    
    1,551Revolving line of credit
    
    
    13,245
    
    
    
    Other long-term expenses
    
    
    860
    
    
    
    860Deferred income taxes
    
    
    178
    
    
    
    226Total other non-current liabilities
    
    
    15,287
    
    
    
    2,637Total liabilities
    
    
    33,176
    
    
    
    43,237Minority interests
    
    
    3,308
    
    
    
    3,205Commitments and contingencies (Note 5)Stockholders equitySeries A cumulative, convertible callable
preferred stock, $1.00 par value, 2,000,000
shares authorized; 32,000 shares issued
    
    
    32
    
    
    
    32Common stock, $0.01 par value, 15,000,000
shares authorized and 9,700,920 and
9,699,920 shares issued, respectively
    
    
    97
    
    
    
    97Additional paid-in capital
    
    
    18,669
    
    
    
    18,653Retained earnings
    
    
    47,780
    
    
    
    45,598Less: treasury stock, 4,499,920 common shares
at cost, and 32,000 preferred shares at cost
    
    
    (40,007
    )
    
    
    (40,007
    )Total stockholders equity
    
    
    26,571
    
    
    
    24,373Total liabilities and stockholders equity
    
    $
    63,055
    
    
    $
    70,815
 
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FOR THE SIX MONTHS ENDEDDecember 31,
    
    
    December 31,2005
    
    
    2004Net cash provided by operating activities
    
    $
    4,437
    
    
    $
    6,665Cash flows from investing activitiesAdditions to property and equipment
    
    
    (155
    )
    
    
    (22
    )Additions to other intangibles
    
    
    
    
    
    
    (10
    )Cash used in investing activities
    
    
    (155
    )
    
    
    (32
    )Cash flows from financing activitiesNet proceeds from/(payments on) lines of credit
    
    
    (9,755
    )
    
    
    962Principal payments on notes payable
    
    
    (794
    )
    
    
    (1,583
    )Treasury stock repurchases
    
    
    
    
    
    
    (2,925
    )Stock options exercised
    
    
    7
    
    
    
    164Cash dividends
    
    
    (1,155
    )
    
    
    (1,010
    )Distributions to minority interest members
    
    
    
    
    
    
    (742
    )Net cash used in financing activities
    
    
    (11,697
    )
    
    
    (5,134
    )Net increase/(decrease) in cash
    
    
    (7,415
    )
    
    
    1,499Cash at beginning of period
    
    
    9,145
    
    
    
    5,838Cash at end of period
    
    $
    1,730
    
    
    $
    7,337
 
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FOR THE THREE MONTHS ENDED
    
    
    FOR THE SIX MONTHS ENDEDDecember 31,
    
    
    December 31,
    
    
    December 31,
    
    
    December 31,2005
    
    
    2004
    
    
    2005
    
    
    2004(In thousands, except per share data)Basic and diluted earnings per share:NumeratorNet income
    
    $
    1,697
    
    
    $
    1,872
    
    
    $
    3,429
    
    
    $
    3,270Denominator for basic EPSWeighted average common shares outstanding
    
    
    5,200
    
    
    
    5,034
    
    
    
    5,200
    
    
    
    5,059Denominator for diluted EPSWeighted average common shares outstanding
    
    
    5,200
    
    
    
    5,034
    
    
    
    5,200
    
    
    
    5,059Incremental shares for stock options
    
    
    10
    
    
    
    23
    
    
    
    10
    
    
    
    32Potentially dilutive weighted average common shares
    
    
    5,210
    
    
    
    5,057
    
    
    
    5,210
    
    
    
    5,091Basic earnings per share
    
    $
    0.33
    
    
    $
    0.37
    
    
    $
    0.66
    
    
    $
    0.65Diluted earnings per share
    
    $
    0.33
    
    
    $
    0.37
    
    
    $
    0.66
    
    
    $
    0.64
 8




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Share-Based Payment
   FOR THE THREE MONTHS ENDED
    
    
    FOR THE SIX MONTHS ENDEDDecember 31,
    
    
    December 31,
    
    
    December 31,
    
    
    December 31,2005
    
    
    2004
    
    
    2005
    
    
    2004(In thousands, except per share data)Actual
    
    
    Pro Forma
    
    
    Actual
    
    
    Pro FormaNet income, as reported
    
    $
    1,697
    
    
    $
    1,872
    
    
    $
    3,429
    
    
    $
    3,270Compensation expense, net of related taxes
    
    
    
    
    
    
    (10
    )
    
    
    
    
    
    
    (41
    )Net income, proforma
    
    $
    1,697
    
    
    $
    1,862
    
    
    $
    3,429
    
    
    $
    3,229Basic earnings per share, as reported
    
    $
    0.33
    
    
    $
    0.37
    
    
    $
    0.66
    
    
    $
    0.65Basic earnings per share, proforma
    
    
    0.33
    
    
    
    0.37
    
    
    
    0.66
    
    
    
    0.64Diluted earnings per share, as reported
    
    $
    0.33
    
    
    $
    0.37
    
    
    $
    0.66
    
    
    $
    0.64Diluted earnings per share, proforma
    
    
    0.33
    
    
    
    0.37
    
    
    
    0.66
    
    
    
    0.63
 9




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FOR THE THREE MONTHS ENDED
    
    
    FOR THE SIX MONTHS ENDEDDecember 31,
    
    
    December 31,
    
    
    December 31,
    
    
    December 31,2005
    
    
    2004
    
    
    2005
    
    
    2004(In thousands)Net salesCraftmade
    
    $
    15,146
    
    
    $
    12,268
    
    
    $
    31,656
    
    
    $
    26,868TSI
    
    
    13,272
    
    
    
    16,081
    
    
    
    27,231
    
    
    
    30,506Total
    
    $
    28,418
    
    
    $
    28,349
    
    
    $
    58,887
    
    
    $
    57,374Income before minority interests and income taxesCraftmade
    
    $
    1,862
    
    
    $
    1,592
    
    
    $
    3,965
    
    
    $
    3,107TSI
    
    
    1,503
    
    
    
    2,343
    
    
    
    2,786
    
    
    
    3,562Total
    
    $
    3,365
    
    
    $
    3,935
    
    
    $
    6,751
    
    
    $
    6,669Net incomeCraftmade
    
    $
    1,198
    
    
    $
    1,013
    
    
    $
    2,543
    
    
    $
    1,994TSI
    
    
    499
    
    
    
    859
    
    
    
    886
    
    
    
    1,276Total
    
    $
    1,697
    
    
    $
    1,872
    
    
    $
    3,429
    
    
    $
    3,270
 10




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December 31,
    
    
    June 30,2005
    
    
    2005
    
    
    ChangeTotal AssetsCraftmade
    
    $
    50,660
    
    
    $
    50,835
    
    
    $
    (175
    )TSI
    
    
    12,395
    
    
    
    19,980
    
    
    
    (7,585
    )Total
    
    $
    63,055
    
    
    $
    70,815
    
    
    $
    (7,760
    )
 Item 2: Liquidity and Capital Resources
       11




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Item 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.
    
  Share-Based Payment
 12




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Three Months Ended
    
    
    Three Months EndedDecember 31, 2005
    
    
    December 31, 2004Craftmade
    
    
    TSI
    
    
    Total
    
    
    Craftmade
    
    
    TSI
    
    
    TotalNet sales
    
    $
    15,146
    
    
    $
    13,272
    
    
    $
    28,418
    
    
    $
    12,268
    
    
    $
    16,081
    
    
    $
    28,349Cost of goods sold
    
    
    9,765
    
    
    
    10,065
    
    
    
    19,830
    
    
    
    7,662
    
    
    
    11,875
    
    
    
    19,537Gross profit
    
    
    5,381
    
    
    
    3,207
    
    
    
    8,588
    
    
    
    4,606
    
    
    
    4,206
    
    
    
    8,812Gross profit as a % of net sales
    
    
    35.5
    %
    
    
    24.2
    %
    
    
    30.2
    %
    
    
    37.5
    %
    
    
    26.2
    %
    
    
    31.1
    %SG&A
    
    
    3,073
    
    
    
    1,675
    
    
    
    4,748
    
    
    
    2,672
    
    
    
    1,824
    
    
    
    4,496As a % of net sales
    
    
    20.3
    %
    
    
    12.6
    %
    
    
    16.7
    %
    
    
    21.8
    %
    
    
    11.3
    %
    
    
    15.9
    %Interest
    
    
    302
    
    
    
    20
    
    
    
    322
    
    
    
    211
    
    
    
    29
    
    
    
    240Depreciation
    
    
    144
    
    
    
    9
    
    
    
    153
    
    
    
    131
    
    
    
    10
    
    
    
    141Income before minority
interests and income taxes
    
    $
    1,862
    
    
    $
    1,503
    
    
    $
    3,365
    
    
    $
    1,592
    
    
    $
    2,343
    
    
    $
    3,935Minority interests
    
    
    
    
    
    
    739
    
    
    
    739
    
    
    
    
    
    
    
    995
    
    
    
    995Provision for income taxes
    
    
    664
    
    
    
    265
    
    
    
    929
    
    
    
    579
    
    
    
    489
    
    
    
    1,068Net income
    
    $
    1,198
    
    
    $
    499
    
    
    $
    1,697
    
    
    $
    1,013
    
    
    $
    859
    
    
    $
    1,872
  Three Months Ended December 31, 2005 Compared to Three Months Ended December 31,
2004
 Net Sales.
    13




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Change in Net Sales of TSI SegmentPrime/
    
    
    TSITrade
    
    
    Design
    
    
    Home
    
    
    SegmentQuarter Ended
    
    Source
    
    
    Trends
    
    
    Impressions
    
    
    TotalDecember 31, 2005
    
    $
    4,892
    
    
    $
    5,127
    
    
    $
    3,253
    
    
    $
    13,272December 31, 2004
    
    
    6,272
    
    
    
    7,586
    
    
    
    2,223
    
    
    
    16,081Dollar change
    
    
    (1,380
    )
    
    
    (2,459
    )
    
    
    1,030
    
    
    
    (2,809
    )Percent change
    
    
    -22.0
    %
    
    
    -32.4
    %
    
    
    46.3
    %
    
    
    -17.5
    %
        14




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Gross Profit.
    Change in Gross Margins of TSI SegmentPrime/
    
    
    TSITrade
    
    
    Design
    
    
    Home
    
    
    SegmentQuarter Ended
    
    Source
    
    
    Trends
    
    
    Impressions
    
    
    TotalDecember 31, 2005
    
    
    14.8
    %
    
    
    27.8
    %
    
    
    32.5
    %
    
    
    24.2
    %December 31, 2004
    
    
    18.9
    %
    
    
    29.1
    %
    
    
    36.5
    %
    
    
    26.2
    %Percent Change
    
    
    -4.1
    %
    
    
    -1.3
    %
    
    
    -4.0
    %
    
    
    -2.0
    %
    Selling, General and Administrative Expenses.
 15




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##### Table of Contents



ChangeQuarter Ended
    
    
    FromDecember 31,
    
    
    Prior Year2005
    
    
    2004
    
    
    PeriodSalaries and wages
    
    $
    1,098
    
    
    $
    1,169
    
    
    $
    (71
    )Accounting, legal and consulting
    
    
    357
    
    
    
    583
    
    
    
    (226
    )Other
    
    
    1,618
    
    
    
    920
    
    
    
    698$
    3,073
    
    
    $
    2,672
    
    
    $
    401
      Interest Expense.
 16




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Minority Interests.
 Provision for Income Taxes.
 Six Months Ended December 31, 2005 Compared to Six Months Ended December 31, 2004
  Six Months Ended
    
    
    Six Months EndedDecember 31, 2005
    
    
    December 31, 2004Craftmade
    
    
    TSI
    
    
    Total
    
    
    Craftmade
    
    
    TSI
    
    
    TotalNet sales
    
    $
    31,656
    
    
    $
    27,231
    
    
    $
    58,887
    
    
    $
    26,868
    
    
    $
    30,506
    
    
    $
    57,374Cost of goods sold
    
    
    20,415
    
    
    
    21,138
    
    
    
    41,553
    
    
    
    16,632
    
    
    
    23,410
    
    
    
    40,042Gross profit
    
    
    11,241
    
    
    
    6,093
    
    
    
    17,334
    
    
    
    10,236
    
    
    
    7,096
    
    
    
    17,332Gross profit as a % of net sales
    
    
    35.5
    %
    
    
    22.4
    %
    
    
    29.4
    %
    
    
    38.1
    %
    
    
    23.3
    %
    
    
    30.2
    %SG&A
    
    
    6,403
    
    
    
    3,243
    
    
    
    9,646
    
    
    
    6,459
    
    
    
    3,446
    
    
    
    9,905As a % of net sales
    
    
    20.2
    %
    
    
    11.9
    %
    
    
    16.4
    %
    
    
    24.0
    %
    
    
    11.3
    %
    
    
    17.3
    %Interest
    
    
    580
    
    
    
    46
    
    
    
    626
    
    
    
    408
    
    
    
    62
    
    
    
    470Depreciation
    
    
    293
    
    
    
    18
    
    
    
    311
    
    
    
    262
    
    
    
    26
    
    
    
    288Income before minority
interests and income taxes
    
    $
    3,965
    
    
    $
    2,786
    
    
    $
    6,751
    
    
    $
    3,107
    
    
    $
    3,562
    
    
    $
    6,669Minority interests
    
    
    
    
    
    
    1,472
    
    
    
    1,472
    
    
    
    
    
    
    
    1,561
    
    
    
    1,561Provision for income taxes
    
    
    1,422
    
    
    
    428
    
    
    
    1,850
    
    
    
    1,113
    
    
    
    725
    
    
    
    1,838Net income
    
    $
    2,543
    
    
    $
    886
    
    
    $
    3,429
    
    
    $
    1,994
    
    
    $
    1,276
    
    
    $
    3,270
 Net Sales.
   17




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Change in Net Sales of TSI Segment
 Prime/
    
    
    TSITrade
    
    
    Design
    
    
    Home
    
    
    SegmentQuarter Ended
    
    Source
    
    
    Trends
    
    
    Impressions
    
    
    TotalDecember 31, 2005
    
    $
    10,006
    
    
    $
    10,557
    
    
    $
    6,668
    
    
    $
    27,231December 31, 2004
    
    
    12,066
    
    
    
    13,731
    
    
    
    4,709
    
    
    
    30,506Dollar change
    
    
    (2,060
    )
    
    
    (3,174
    )
    
    
    1,959
    
    
    
    (3,275
    )Percent change
    
    
    -17.1
    %
    
    
    -23.1
    %
    
    
    41.6
    %
    
    
    -10.7
    %
     Gross Profit.
 18




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##### Table of Contents



Change in Gross Margins of TSI Segment
 Prime/
    
    
    TSITrade
    
    
    Design
    
    
    Home
    
    
    SegmentSix Months Ended
    
    Source
    
    
    Trends
    
    
    Impressions
    
    
    TotalDecember 31, 2005
    
    
    12.6
    %
    
    
    24.7
    %
    
    
    33.3
    %
    
    
    22.4
    %December 31, 2004
    
    
    17.5
    %
    
    
    24.8
    %
    
    
    33.6
    %
    
    
    23.3
    %Percent Change
    
    
    -4.9
    %
    
    
    -0.1
    %
    
    
    -0.3
    %
    
    
    -0.9
    %
     Selling, General and Administrative Expenses.
 19




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##### Table of Contents



ChangeSix Months Ended
    
    
    FromDecember 31,
    
    
    Prior Year2005
    
    
    2004
    
    
    PeriodSalaries and wages
    
    $
    2,213
    
    
    $
    2,074
    
    
    $
    139Accounting, legal and consulting
    
    
    929
    
    
    
    1,549
    
    
    
    (620
    )Other
    
    
    3,261
    
    
    
    2,836
    
    
    
    425$
    6,403
    
    
    $
    6,459
    
    
    $
    (56
    )
      Interest Expense.
 20




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##### Table of Contents



Minority Interests.
 Provision for Income Taxes.
 Liquidity and Capital Resources
        21




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##### Table of Contents



22




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##### Table of Contents



USD:TWD
    
    
    USD:YUANJune 30, 2004
    
    $
    33.746
    
    
    $
    8.287September 30, 2004
    
    
    33.990
    
    
    
    8.287December 31, 2004
    
    
    31.980
    
    
    
    8.287March 31, 2005
    
    
    31.875
    
    
    
    8.287June 30, 2005
    
    
    31.665
    
    
    
    8.287September 30, 2005
    
    
    33.270
    
    
    
    8.110December 31, 2005
    
    
    32.951
    
    
    
    8.073
     
  Disclosure Controls and Procedures
  23




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##### Table of Contents



Changes in Internal Controls
  24




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##### Table of Contents



PART II
OTHER INFORMATION
 
   
   
   
   Number of Votes
    
    
    Abstentionsof Common Stock
    
    
    and BrokerNominee
    
    For
    
    
    Withheld
    
    
    Non-VotesJames R. Ridings
    
    
    4,158,625
    
    
    
    43,632
    
    
    
    Clifford Crimmings
    
    
    4,120,439
    
    
    
    81,818
    
    
    
    R. Don Morris
    
    
    4,099,090
    
    
    
    103,167
    
    
    
    John DeBlois
    
    
    4,120,239
    
    
    
    82,018
    
    
    
    A. Paul Knuckley
    
    
    4,137,788
    
    
    
    64,469
    
    
    
    Lary C. Snodgrass
    
    
    4,172,127
    
    
    
    30,130
    
    
    
    William E. Bucek
    
    
    4,172,017
    
    
    
    30,240
    
    
    
    L. Dale Griggs
    
    
    4,171,617
    
    
    
    30,640
    
    
    
    Richard T. Walsh
    
    
    4,171,727
    
    
    
    30,530
    
    
    
    
  Number of Votes
    
    Number of Votes
    
    
    Abstentions andVoted For
    
    Voted Against
    
    
    Broker Non-Votes4,187,901
    
    
    3,081
    
    
    
    11,275
 
   25




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##### Table of Contents



2.1
    
    Agreement and Plan of Merger by and among Craftmade International, Inc., Bill
Teiber Co,. Inc., Teiber Lighting Products, Inc., Todd Teiber and Edward Oberstein
dated March 1, 2005, filed as Exhibit 10.1 to the Current Report on Form 8-K dated
March 1, 2005 (File No. 000-2667) and incorporated by reference herein.3.1
    
    Certificate of Incorporation of the Company, filed as Exhibit 3 (a) (2) to the
Companys Post Effective Amendment No. 1 to Form S-18 (File No. 33-33594-FW) and
incorporated by reference herein.3.2
    
    Certificate of Amendment of Certificate of Incorporation of the Company, dated
March 24, 1992 and filed as Exhibit to 4.2 to the Companys For S-8 (File No.
333-44337) and incorporated by reference herein.3.3
    
    Amended and Restated Bylaws of the Company, filed as Exhibit 3 (b) (2) to the
Companys Post Effective Amendment No. 1 to Form S-8 (File No. 33-33594-FW) and
incorporated by reference herein.4.1
    
    Specimen Common Stock Certificate, filed as Exhibit 4.4 to the Companys
Registration Statement on Form S-3 (File No. 333-70823) and incorporated by reference
herein.4.2
    
    Rights Agreement, dated as of June 23, 1999, between Craftmade International,
Inc. and Harris Trust and Savings Bank, as Rights Agent, previously filed as an exhibit
to Form 8-K date July 9, 1999 (File No. 000-266667) and incorporated by reference
herein.31.1*
    
    Certification of James R. Ridings, Chief Executive Officer of the Company,
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.31.2*
    
    Certification of J. Marcus Scrudder, Chief Financial Officer of the Company,
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.32.1*
    
    Certification of James R. Ridings, Chief Executive Officer of the Company,
pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.32.2*
    
    Certification of J. Marcus Scrudder, Chief Financial Officer of the Company,
pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
 
 *
    
    Each document marked with an asterisk is filed or furnished herewith. 26




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##### Table of Contents



CRAFTMADE INTERNATIONAL, INC.(Registrant)Date: February 9, 2006
    
    /s/ James R. RidingsJAMES R. RIDINGSPresident and ChiefExecutive OfficerDate: February 9, 2006
    
    /s/ J. Marcus ScrudderJ. MARCUS SCRUDDERChief Financial Officer
 27




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##### Table of Contents



Index to Exhibits
 ExhibitNumber
    
    Description2.1
    
    Agreement and Plan of Merger by and among Craftmade International, Inc., Bill
Teiber Co,. Inc., Teiber Lighting Products, Inc., Todd Teiber and Edward Oberstein
dated March 1, 2005, filed as Exhibit 10.1 to the Current Report on Form 8-K dated
March 1, 2005 (File No. 000-2667) and incorporated by reference herein.3.1
    
    Certificate of Incorporation of the Company, filed as Exhibit 3 (a) (2) to the
Companys Post Effective Amendment No. 1 to Form S-18 (File No. 33-33594-FW) and
incorporated by reference herein.3.2
    
    Certificate of Amendment of Certificate of Incorporation of the Company, dated
March 24, 1992 and filed as Exhibit to 4.2 to the Companys For S-8 (File No.
333-44337) and incorporated by reference herein.3.3
    
    Amended and Restated Bylaws of the Company, filed as Exhibit 3 (b) (2) to the
Companys Post Effective Amendment No. 1 to Form S-8 (File No. 33-33594-FW) and
incorporated by reference herein.4.1
    
    Specimen Common Stock Certificate, filed as Exhibit 4.4 to the Companys
Registration Statement on Form S-3 (File No. 333-70823) and incorporated by reference
herein.4.2
    
    Rights Agreement, dated as of June 23, 1999, between Craftmade International,
Inc. and Harris Trust and Savings Bank, as Rights Agent, previously filed as an exhibit
to Form 8-K date July 9, 1999 (File No. 000-266667) and incorporated by reference
herein.31.1*
    
    Certification of James R. Ridings, Chief Executive Officer of the Company,
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.31.2*
    
    Certification of J. Marcus Scrudder, Chief Financial Officer of the Company,
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.32.1*
    
    Certification of James R. Ridings, Chief Executive Officer of the Company,
pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.32.2*
    
    Certification of J. Marcus Scrudder, Chief Financial Officer of the Company,
pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
 
 *
    
    Each document marked with an asterisk is filed or furnished herewith. 28