<PAGE>   1


                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

  X   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
----- EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2000 OR

      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.
                          -----------------------------
             (Exact name of registrant as specified in its charter)

          Delaware                                       75-2057054
          --------                                       ----------
(State or other jurisdiction                           (I.R.S. Employer
of incorporation or organization)                    Identification No.)


650 South Royal Lane, Suite 100, Coppell, Texas      75019
-----------------------------------------------      -----
(Address of principal executive offices)             Zip Code


Registrant's telephone number, including area code (972) 393-3800
                                                   --------------


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

Yes     x.      No       .
----------      ----------

5,887,058 shares of Common Stock were outstanding as of October 26, 2000.



<PAGE>   2



                  CRAFTMADE INTERNATIONAL, INC. AND SUBSIDIARIES

                     Index to Quarterly Report on Form 10-Q



Part I.  Financial Information

         Item 1.  Financial Statements (unaudited)

                  Condensed Consolidated Statements of Income for the three
                  months ended September 30, 2000 and 1999.

                  Condensed Consolidated Balance Sheets as of September 30, 2000
                  and June 30, 2000.

                  Condensed Consolidated Statement of Changes in Stockholders'
                  Equity for the three months ended September 30, 2000.

                  Condensed Consolidated Statements of Cash Flows for the three
                  months ended September 30, 2000 and 1999.

                  Notes to Condensed Consolidated Financial Statements.

         Item 2.  Management's Discussion and Analysis of Financial Condition
                  and Results of Operations.

         Item 3.  Quantitative and Qualitative Disclosures About Market Risk



Part II. Other Information

         Item 1.  Legal Proceedings
         Item 2.  Changes in Securities and Use of Proceeds
         Item 3.  Defaults Upon Senior Securities
         Item 4.  Submission of Matters to a Vote of Stockholders
         Item 5.  Other Information
         Item 6.  Exhibits and Reports on Form 8-K



                                       2
<PAGE>   3


                  CRAFTMADE INTERNATIONAL, INC. AND SUBSIDIARIES
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)

<TABLE>
<CAPTION>
                                          FOR THE THREE MONTHS ENDED
                                          --------------------------
                                     September 30,         September 30,
                                         2000                  1999
                                     -------------         -------------
<S>                                  <C>                   <C>
                                     (In thousands except per share data)

Net Sales                              $ 24,281              $ 21,654
Cost of goods sold                       15,781                13,549
                                       --------              --------

Gross profit                              8,500                 8,105
                                       --------              --------

Selling, general and
  administrative expenses                 5,068                 4,765
Interest expense, net                       589                   338
Depreciation and amortization               224                   211
                                       --------              --------

     Total Expenses                       5,881                 5,314
                                       --------              --------

Income before income taxes
  and minority interest                   2,619                 2,791

Provision for income taxes                  822                   885
                                       --------              --------

Income before minority interest           1,797                 1,906

Minority interest                          (373)                 (344)
                                       --------              --------

Net income                             $  1,424              $  1,562
                                       ========              ========

Basic and diluted
  earnings per common share            $    .24              $    .22
                                       ========              ========


Cash dividends declared
  per common share                     $    .04              $    .02
                                       ========              ========
</TABLE>


                       SEE ACCOMPANYING NOTES TO CONDENSED
                        CONSOLIDATED FINANCIAL STATEMENTS


                                       3
<PAGE>   4


                 CRAFTMADE INTERNATIONAL, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS


                                     ASSETS




<TABLE>
<CAPTION>
                                                  September 30,     June 30,
                                                     2000             2000
                                                  -------------    ----------
                                                   (Unaudited)
                                                          (in thousands)
<S>                                               <C>              <C>
Current assets:
  Cash                                            $       1,348    $    1,171
  Accounts receivable - net of
         allowance of $210,000
         and $236,000, respectively                      14,846        17,610
  Inventory                                              14,370        15,322
  Deferred income taxes                                     462           462
  Prepaid expenses and other
    current assets                                        1,174           918
                                                  -------------    ----------

   Total current assets                                  32,200        35,483
                                                  -------------    ----------


Property and equipment, at cost:
  Land                                                    1,535         1,535
  Building                                                7,784         7,784
  Office furniture and equipment                          2,347         2,297
  Leasehold improvements                                    274           257
                                                  -------------    ----------
                                                         11,940        11,873

Less: accumulated depreciation                           (2,529)       (2,410)
                                                  -------------    ----------

         Total property and equipment, net                9,411         9,463

Goodwill, net of accumulated
  amortization of $913,000
  and $808,000, respectively                              5,026         5,131
Other assets                                                 18            24
                                                  -------------    ----------

         Total other assets                              14,455        14,618
                                                  -------------    ----------

                                                  $      46,655    $   50,101
                                                  =============    ==========
</TABLE>


                  SEE ACCOMPANYING NOTES TO CONDENSED
                   CONSOLIDATED FINANCIAL STATEMENTS


                                       4
<PAGE>   5


                 CRAFTMADE INTERNATIONAL, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS


                      LIABILITIES AND STOCKHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                          September 30,     June 30,
                                               2000           2000
                                          -------------     --------
                                           (Unaudited)
                                                (in thousands)
<S>                                       <C>               <C>
Current liabilities:
  Note payable - current                    $    480        $    470
  Revolving lines of credit                   16,400          17,600
  Accounts payable                             1,897           4,179
  Commissions payable                            330             422
  Income taxes payable                           559              10
  Accrued liabilities                          1,470           1,540
                                            --------        --------
     Total current liabilities                21,136          24,221

Other non-current liabilities:
  Deferred Income taxes                           88              88
  Note payable - long term                     8,464           8,588
  Derivative financial instrument                 32              --
  Minority interest                              428             245
                                            --------        --------

  Total liabilities                           30,148          33,142
                                            --------        --------

Stockholders' equity:
 Series A cumulative, convertible,
   callable preferred stock, $1.00
   par value, 2,000,000 shares
   authorized; 32,000 shares issued               32              32
 Common stock, $.01 par value,
   15,000,000 shares authorized,
   9,316,535 shares issued                        93              93
Additional paid-in capital                    12,453          12,453
Retained earnings                             23,829          22,654
Accumulated other comprehensive loss             (32)             --
                                            --------        --------
                                              36,375          35,232
 Less:  treasury stock, 3,316,477
   and 3,116,177 common shares at
   cost, respectively, and 32,000
   preferred shares at cost                  (19,868)        (18,273)
                                            --------        --------
     Total Stockholders' Equity               16,507          16,959
                                            --------        --------

Commitments and contingencies

                                            $ 46,655        $ 50,101
                                            ========        ========
</TABLE>


                       SEE ACCOMPANYING NOTES TO CONDENSED
                        CONSOLIDATED FINANCIAL STATEMENTS



                                       5
<PAGE>   6


                 CRAFTMADE INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited)
                 FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000


<TABLE>
<CAPTION>
(In thousands)                                                                               ACCUMULATED
                                                         SERIES A   ADDITIONAL                  OTHER
                                                         PREFERRED   PAID-IN     RETAINED   COMPREHENSIVE
                                    VOTING COMMON STOCK    STOCK     CAPITAL     EARNINGS        LOSS      TREASURY STOCK
                                   --------------------- ---------  ----------  ----------  -------------  --------------

                                    Shares       Amount                                                   Shares   Amount    Total
                                   --------     --------                                                  ------  --------  -------
<S>                                <C>          <C>      <C>        <C>         <C>            <C>        <C>     <C>       <C>
Balance as of June 30, 2000           9,317     $     93 $      32  $   12,453  $   22,654     $    --     3,148  $(18,273) $16,959

Comprehensive income:

  Net income for the three months
    ended September 30, 2000                                                         1,424                                    1,424

  Loss on derivative financial
    instrument, net of tax of $19                                                                  (32)                         (32)
                                   --------    --------- ---------  ----------  ----------     -------    ------  --------  -------

Total comprehensive income                                                           1,424         (32)                       1,392

Stock repurchase                                                                                             200    (1,595)  (1,595)

Cash Dividends                                                                        (249)                                    (249)

                                   --------    --------- ---------  ----------  ----------     -------    ------  --------  -------
Balance as of September 30, 2000      9,317    $      93 $      32  $   12,453  $   23,829     $   (32)    3,348  $(19,868) $16,507
                                   --------    --------- ---------  ----------  ----------     -------    ======  ========  =======
</TABLE>



                                       6
<PAGE>   7



                 CRAFTMADE INTERNATIONAL, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                  FOR THE THREE MONTHS ENDED
                                                  --------------------------
                                                 September 30,  September 30,
                                                     2000            1999
                                                 -------------  -------------
                                                        (In thousands)
<S>                                              <C>            <C>
Net cash provided by operating
activities:                                         $ 3,592       $ 2,040
                                                    -------       -------

Cash flows from investing activities:
 Net additions to equipment                             (67)          (39)
                                                    -------       -------
Net cash used for investing activities                  (67)          (39)
                                                    -------       -------

Cash flows from financing activities:
  Net proceeds from (payments to)
    lines of credit                                  (1,200)        3,000
  Principal payments on note payable                   (114)         (193)
  Stock repurchase                                   (1,595)       (4,069)
  Cash dividends                                       (249)         (139)
  Distributions to minority interest members           (190)         (457)
                                                    -------       -------
Net cash used for financing activities               (3,348)       (1,858)
                                                    -------       -------
Net increase in cash                                    177           143
Cash at beginning of period                           1,171         1,563
                                                    -------       -------
Cash at end of period                               $ 1,348       $ 1,706
                                                    =======       =======
</TABLE>



                       SEE ACCOMPANYING NOTES TO CONDENSED
                        CONSOLIDATED FINANCIAL STATEMENTS



                                       7
<PAGE>   8


              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                        OF CRAFTMADE INTERNATIONAL, INC.
                                AND SUBSIDIARIES

                               SEPTEMBER 30, 2000
                                   (Unaudited)


Note 1 - BASIS OF PREPARATION AND PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared
pursuant to the rules and regulations of the Securities and Exchange Commission
and include all adjustments which are, in the opinion of management, necessary
for a fair presentation. The condensed consolidated financial statements include
the accounts of the Company and its subsidiaries. Certain information and
footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted pursuant to such rules and regulations. The Company believes that the
disclosures are adequate to make the information presented not misleading;
however, it is suggested that these financial statements be read in conjunction
with the financial statements and the notes thereto which are incorporated by
reference in the Company's Annual Report on Form 10-K for the fiscal year ended
June 30, 2000. The financial data for the interim periods may not necessarily be
indicative of results to be expected for the year.



Note 2 - STOCK REPURCHASE

During the years ended June 30, 2000 and 1999, the Company's Board of Directors
authorized the Company's management to repurchase up to an aggregate of
2,350,000 shares of the Company's outstanding common stock. At June 30, 2000 and
1999, the Company had repurchased 1,198,500 and 177,500 shares, respectively, at
an aggregate cost of $10,012,000 and $2,548,000, respectively, related to these
plans.

During the first quarter of fiscal 2001 the Company repurchased 200,300 shares
at an aggregate cost of $1,595,000.


                                       8
<PAGE>   9


              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                        OF CRAFTMADE INTERNATIONAL, INC.
                                AND SUBSIDIARIES

                               SEPTEMBER 30, 2000
                                   (Unaudited)



Note 3 - EARNINGS PER SHARE

The following is a reconciliation of the numerator and denominator used in the
basic and diluted EPS calculation:

<TABLE>
<CAPTION>
                                       FOR THE THREE MONTHS ENDED
                                     September 30,    September 30,
                                         2000             1999
                                     -------------    -------------

                                  (In thousands, except per share data)
<S>                                  <C>              <C>
Basic and diluted EPS:
Numerator: Net income                  $   1,424        $   1,562
                                       =========        =========

Basic denominator:  Common
  shares outstanding                       6,056            7,250
                                       =========        =========

Basic EPS                              $     .24        $     .22
                                       =========        =========

Denominator:  Common
  shares outstanding                       6,056            7,250
Options                                       --               --
                                       ---------        ---------
Total shares                               6,056            7,250
                                       =========        =========

Diluted EPS                            $     .24        $     .22
                                       =========        =========
</TABLE>


Note 4 - DERIVATIVE FINANCIAL INSTRUMENT

The Company adopted Statement on Financial Accounting Standards No. 133 (FAS
133), Accounting for Derivative Instruments and Hedging Activities, on July 1,
2000. FAS 133 requires that all derivative instruments be recorded on the
balance sheet at fair value. Changes in the fair value of derivatives are
recorded each period in current earnings or other comprehensive income,
depending on whether a derivative is designated as part of a hedge transaction
and, if it is, depending on the type of hedge transaction. For fair-value hedge
transactions in which the Company is hedging


                                       9
<PAGE>   10


changes in an asset's, liability's, or firm commitment's fair value, changes in
the fair value of the derivative instrument will generally be offset in the
income statement by changes in the hedged item's fair value. For cash-flow hedge
transactions in which the Company is hedging the variability of cash flows
related to a variable-rate asset, liability, or a forecasted transaction,
changes in the fair value of the derivative instrument will be reported in other
comprehensive income. The gains and losses on the derivative instrument that are
reported in other comprehensive income will be reclassified as earnings in the
periods in which earnings are impacted by the variability of the cash flows of
the hedged item. The ineffective portion of all hedges will be recognized in
current-period earnings.

During the first quarter of fiscal 2000, the Company entered into an interest
rate swap agreement, with a maturity of December 26, 2003, to manage its
exposure to interest rate movements by effectively converting its long-term
facility debt from fixed to variable rates. The notional amount of the interest
rate swap subject to variable rates as of September 30, 2000 was $3,942,000,
which decreases as payments are made on the long-term note payable. Under this
agreement, the Company has contracted to pay a variable rate equal to LIBOR plus
2.43% (9.05% at September 30, 2000) and receive a fixed rate of 8.125%. In
accordance with the transition provisions of FAS 133, the Company recorded a
net-of-tax cumulative-effect-type adjustment of $32,000 in accumulated other
comprehensive loss on the accompanying condensed consolidated statement of
changes in stockholders' equity to recognize at fair value the interest rate
swap agreement which management designated as a cash-flow hedging instrument. As
the critical terms of the interest rate swap agreement and the interest-bearing
debt are the same the Company has assumed that there is no ineffectiveness in
the hedge relationship.

Note 5 - SEGMENT INFORMATION

The Company has two reportable segments, Craftmade and TSI. The Company is
organized on a combination of product type and customer base. The Craftmade
segment primarily derives it's revenue from home furnishings including ceiling
fans, light kits, bathstrip lighting and lamps offered primarily through
lighting showrooms, certain major retail chains and catalog houses. The TSI
segment derives its revenue from lighting and fan accessories marketed solely to
mass merchandisers.

The accounting policies of the segments are the same as those described in Note
2 - Summary of Significant Accounting Policies to the Company's Annual Report on
Form 10-K for the fiscal year ended June 30, 2000. The Company evaluates the
performance of its


                                       10
<PAGE>   11


              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                        OF CRAFTMADE INTERNATIONAL, INC.
                                AND SUBSIDIARIES

                               SEPTEMBER 30, 2000
                                   (Unaudited)


Note 5 - SEGMENT INFORMATION (cont'd)

segments and allocates resources to them based on their operating profit and
loss and cash flows.

The following table presents information about the reportable segment (in
thousands):


<TABLE>
<CAPTION>
                                                        Craftmade     TSI        Total
                                                        ---------   --------   --------
<S>                                                     <C>         <C>        <C>
For the three months ended September 30, 2000:
Net sales from external customers                       $  12,851   $ 11,430   $ 24,281
Operating profit                                            1,860      1,348      3,208

For the three months ended September 30, 1999:
Net sales from external customers                       $  13,303   $  8,351   $ 21,654
Operating profit                                            2,348        781      3,129
</TABLE>


                                       11
<PAGE>   12


ITEM 2       MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
             CONDITION AND RESULTS OF OPERATIONS.

Cautionary Statement

With the exception of historical information, the matters discussed in this
document contain forward-looking statements. There are certain important factors
which could cause results to differ materially than those anticipated by some of
the forward-looking statements. Some of the important factors which would cause
actual results to differ materially from those in the forward-looking statements
include, among other things, changes from anticipated levels of sales, whether
due to future national or regional economic and competitive conditions, changes
in relationships with customers, TSI's dependence on select mass merchandisers,
customer acceptance of existing and new products, pricing pressures due to
excess capacity, cost increases, changes in tax or interest rates, unfavorable
economic and political developments in Asia, the location of the Company's
primary vendors, declining conditions in the home construction industry,
inability to realize deferred tax assets, and other uncertainties, all of which
are difficult to predict and many of which are beyond the control the Company.


Results of Operations

Three Months Ended September 30, 2000 Compared to Three Months Ended September
30, 1999.

Net Sales. Net sales for the Company increased $2,627,000, to $24,281,000 for
the three month period ended September 30, 2000 from $21,654,000 for the same
three month period last year. Net sales from the Craftmade division decreased
$452,000, or 3.4%, to $12,851,000 for the three months ended September 30, 2000
from $13,303,000 for the same three month period last year. The decline in sales
of the Craftmade division was due to a decline in the number of business days
from 63 business days in the quarter ended September 30, 1999 to 61 business
days in the quarter ended September 30, 2000. Average daily sales remained flat
compared to the year ago period at $211,000 per day. Net sales of the TSI
division increased $3,079,000 to $11,430,000 for the three months ended
September 30, 2000 from $8,351,000 for the same three month period last year.
This increase was primarily attributable to lower than expected sales in the
quarter ended September 30, 1999 resulting from a reduction by one of TSI's
customers of its level of purchasing during that quarter while it continued to
sell through previously purchased inventory.


                                       12
<PAGE>   13


Gross Profit. Gross profit of the Company as a percentage of sales decreased to
$8,500,000 or 35% of net sales from $8,105,000 or 37.4% of net sales for the
three months ended September 30, 2000 compared to the same period of 1999. The
gross margin of the Craftmade division declined to $5,485,000, or 42.7% of
sales, from $5,874,000, or 44.2% of sales, in the year ago period. The decline
in the gross margin of the Craftmade division was due primarily to discounted
pricing and promotional programs designed to generate higher unit sales volume.
Gross profit from TSI was $3,015,000, or 26.4% of net sales, for the three
months ended September 30, 2000 compared to $2,230,000, or 26.7% of sales, for
the same period of the previous year.

Selling, General and Administrative Expenses. Total selling, general and
administrative expenses of the Company decreased to 21.0% of net sales for the
three months ended September 30, 2000 from 22.0% of net sales for the same three
month period last year. Total SG&A expense of the TSI division decreased to
13.4% of sales from 16.0% of sales for the same period in the previous year. The
decline in TSI's SG&A expense as a percentage of sales was partially offset by
an increase in the SG&A expense of the Craftmade division to 27.5% of net sales
from 25.8% for the same three month period last year. The increase in
Craftmade's SG&A was primarily due to the decline in sales during the first
quarter of fiscal 2001 which resulted in the de-leveraging of fixed SG&A
expenses compared to the year-ago period.

Interest Expense. Net interest expense of the Company increased $251,000 to
$589,000 for the three months ended September 30, 2000 from $338,000 for the
same three month period last year. This decrease was primarily the result of an
increase in the Company's note payable in the third quarter of fiscal 2000. The
proceeds were utilized to repurchase the Company's common stock.

Minority Interest. Minority interest of $373,000 and $344,000 for the three
months ended September 30, 2000 and 1999, respectively, represented the 50%
ownership of Prime/Home Impressions, LLC ("PHI") and Design Trends, LLC by
non-Company owned members. The non-Company owned interests have been accounted
for as a minority interest.

LIQUIDITY AND CAPITAL RESOURCES

The Company's cash increased $177,000 to $1,348,000 at September 30, 2000 from
$1,171,000 at June 30, 2000. The Company's operating activities provided cash of
$3,592,000, primarily attributable to the Company's net income from operations.


                                       13
<PAGE>   14


The $67,000 of cash used for investing activities related to the purchase of
general warehouse, office and computer equipment.

The $3,348,000 of cash used for financing activities was primarily the result of
(i) the repurchase of 200,300 shares of the Company's common stock in connection
with the Company's stock repurchase plans, at an aggregate cost of $1,595,000,
(ii) distributions to PHI's minority interest holder of $190,000, (iii)
principal payments of $114,000 on the Company's note payable,(iv) cash dividends
of $249,000, and (v) principal payments of $1,200,000 on the Company's lines of
credit. It is management's intention to repurchase the Company's common stock
from time to time under Board approved plans as long as the Company's common
stock continues to present an attractive investment for the Company.

At September 30, 2000, subject to continued compliance with certain covenants
and restrictions, the Company had $18,250,000 available on its lines of credit,
of which $14,000,000 had been utilized. In addition, PHI had $3,000,000
available on its line of credit, of which $2,400,000 had been utilized. The
Company's management believes that its current lines of credit, combined with
cash flows from operations, are adequate to fund the Company's current operating
needs, make annual payments of approximately $1,200,000 under the note payable,
fund possible future stock repurchases and fund anticipated capital
expenditures, as well as permit the Company to continue its projected growth
over the next twelve months.

At September 30, 2000, $8,944,000 remained outstanding under the twelve year
note payable for the Company's 378,000 square foot operating facility. The
Company's management believes that this facility will be sufficient for its
purposes for the foreseeable future.

During the first quarter of fiscal 2000, the Company entered into a letter
agreement with Chase Bank of Texas, N.A., pursuant to which the Company
conducted a fixed-to-floating interest rate swap. See Note 4 - Derivative
Financial Instrument in the Notes to Condensed Consolidated Financial
Statements and Item 3 - Quantitative and Qualitative Disclosures about Market
Risk. The Company does not believe that this transaction will have a material
effect on its financial condition.



                                       14
<PAGE>   15


ITEM 3     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.



The information set forth below constitutes a "forward looking statement." See
Management's Discussion and Analysis of Financial Condition and Results of
Operations -- Cautionary Statement.

As a result of the terms of the Company's note payable on its operating
facility, the Company is subject to market risk associated with adverse changes
in interest rates. In an effort to reduce this market risk, the Company entered
into an interest rate swap agreement (the "Swap Agreement") with Chase Bank of
Texas, National Association ("Chase") during the first quarter of fiscal 2000.
The Swap Agreement is held by the Company for non-trading purposes and is
designated as a cash-flow hedging instrument.

The notional principal amount of the Swap Agreement was $3,942,000 at September
30, 2000. During the term of the Swap Agreement, the Company receives a fixed
rate of interest (8.125%) from Chase on such Notional Amount in consideration of
its obligation to pay a floating rate of interest on such Notional Amount. The
floating rate of interest is based on the regularly published London Interbank
Offered Rate ("LIBOR") plus 2.43%. At September 30, 2000, LIBOR was equal to
6.62%. The Swap Agreement matures on December 26, 2003.

Although the Company entered into the Swap Agreement to reduce its exposure to
changes in interest rates, a sharp rise in interest rates could materially
adversely affect the financial condition and results of operations of the
Company. Under the Swap Agreement, for each one percent (1%) incremental
increase in LIBOR, the Company's annualized interest expense would increase by
approximately $39,420. Consequently, an increase in LIBOR of five percent (5%)
would result in an estimated annualized increase of interest expense for the
Company of approximately $197,100. See Note 4 -- Derivative Financial Instrument
to the Notes to Condensed Consolidated Financial Statements.


                                       15
<PAGE>   16


                                     PART II

                                OTHER INFORMATION


Item 1.           Legal Proceedings

                  not applicable

Item 2.           Changes in Securities and Use of Proceeds

                  not applicable

Item 3.           Defaults Upon Senior Securities

                  not applicable

Item 4.           Submission of Matters to a Vote of Stockholders

                  not applicable


Item 5.           Other Information


                  not applicable


Item 6.           Exhibits and Reports on Form 8-K

                  a).       Exhibits

                  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 therein.

                  3.2      Certificate of Amendment of Certificate of
                           Incorporation of the Company, dated March 24, 1992
                           and filed as Exhibit 4.2 to the Company's Form S-8
                           (File No. 333-44337) and incorporated by reference
                           therein.

                  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-18 (File No. 33-33594-FW)
                           and incorporated by reference therein.

                  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 therein.


                                       16
<PAGE>   17


                  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 dated July 9, 1999 (File No.
                           000-26667) and incorporated by reference herein.

                  10.1     Earnest Money contract and Design/build Agreement
                           dated May 8, 1995, between MEPC Quorum Properties II,
                           Inc. and Craftmade International, Inc. (including
                           exhibits), previously filed as an exhibit in Form
                           10-Q for the quarter ended December 31, 1995, and
                           herein incorporated by reference.

                  10.2     Assignment of Rents and Leases dated December 21,
                           1995, between Craftmade International, Inc. and
                           Allianz Life Insurance Company of North America
                           (including exhibits), previously filed as an exhibit
                           in Form 10-Q for the quarter ended December 31, 1995,
                           and herein incorporated by reference.

                  10.3     Deed of Trust, Mortgage and Security Agreement made
                           by Craftmade International, Inc., dated December 21,
                           1995, to Patrick M. Arnold, as trustee for the
                           benefit of Allianz Life Insurance Company of North
                           America (including exhibits), previously filed as an
                           exhibit in Form 10-Q for the quarter ended December
                           31, 1995, and herein incorporated by reference.

                  10.4     Second Amended and Restated Credit Agreement dated
                           November 14, 1995, among Craftmade International,
                           Inc., Nations Bank of Texas, N.A., as Agent and the
                           Lenders defined therein (including exhibits),
                           previously filed as an exhibit in Form 10-Q for the
                           quarter ended December 31, 1995, and herein
                           incorporated by reference.

                  10.5     Lease Agreement dated November 30, 1995, between
                           Craftmade International, Inc. and TSI Prime, Inc.,
                           previously filed as an exhibit in Form 10-Q for the
                           quarter ended December 31, 1995, and herein
                           incorporated by reference.

                  10.6     Revolving credit facility with Texas Commerce Bank,
                           previously filed as an exhibit in Form 10-K for the
                           year ended June 30, 1996, and herein incorporated by
                           reference.


                                       17
<PAGE>   18


                  10.7     Agreement and Plan of Merger, dated as of July 1,
                           1998, by and among Craftmade International, Inc.,
                           Trade Source International, Inc., a Delaware
                           corporation, Neall and Leslie Humphrey, John DeBlois,
                           the Wiley Family Trust, James Bezzerides, the Bezzco
                           Inc. Employee Retirement Trust and Trade Source
                           International, Inc., a California corporation, filed
                           as Exhibit 2.1 to the Company's Current Report on
                           Form 8-K filed July 15, 1998 (File No. 33-33594-FW)
                           and herein incorporated by reference.

                  10.8     Voting Agreement, dated July 1, 1998, by and among
                           James R. Ridings, Neall Humphrey and John DeBlois,
                           filed as Exhibit 2.1 to the Company's Current Report
                           on Form 8-K filed July 15, 1998 (File No.
                           33-33594-FW) and herein incorporated by reference.

                  10.9     Third Amendment to Credit Agreement, dated July 1,
                           1998, by and among Craftmade International, Inc., a
                           Delaware corporation, Trade Source International,
                           Inc., a Delaware corporation, Chase Bank of Texas,
                           National Association (formerly named Texas Commerce
                           Bank, National Association) and Frost National Bank
                           (formerly named Overton Bank and Trust), filed as
                           Exhibit 2.1 to the Company's Current Report on Form
                           8-K filed July 15, 1998 (File No. 33-33594-FW) and
                           herein incorporated by reference.

                  10.10    Consent to Merger by Chase Bank of Texas, National
                           Association and Frost National Bank, filed as Exhibit
                           2.1 to the Company's Current Report on Form 8-K filed
                           July 15, 1998 (File No. 33-33594-FW) and herein
                           incorporated by reference.

                  10.11    Employment Agreement, dated July 1, 1998, by and
                           among Craftmade International, Inc., Trade Source
                           International, Inc., a Delaware corporation, and
                           Neall Humphrey, filed as Exhibit 2.1 to the Company's
                           Current Report on Form 8-K filed July 15, 1998 (File
                           No. 33-33594-FW) and herein incorporated by
                           reference.

                  10.12    Employment Agreement, dated July 1, 1998, by and
                           among Craftmade International, Inc., Trade Source
                           International, Inc., a Delaware corporation, and
                           Leslie Humphrey, filed as Exhibit 2.1 to the
                           Company's Current Report on Form 8-K filed July 15,
                           1998 (File No. 33-33594-FW) and herein incorporated
                           by reference.


                                       18
<PAGE>   19


                  10.13    Employment Agreement, dated July 1, 1998, by and
                           among Craftmade International, Inc., Trade Source
                           International, Inc., a Delaware corporation, and John
                           DeBlois, filed as Exhibit 2.1 to the Company's
                           Current Report on Form 8-K filed July 15, 1998 (File
                           No. 33-33594-FW) and herein incorporated by
                           reference.

                  10.14    Registration Rights Agreement, dated July 1, 1998, by
                           and among Craftmade International, Inc., Neall and
                           Leslie Humphrey and John DeBlois, filed as Exhibit
                           2.1 to the Company's Current Report on Form 8-K filed
                           July 15, 1998 (File No. 33-33594-FW) and herein
                           incorporated by reference.

                  10.15    ISDA Master Agreement and Schedule, dated June 17,
                           1999, by and among Chase Bank of Texas, National
                           Association, Craftmade International, Inc., Durocraft
                           International, Inc. and Trade Source International,
                           Inc., filed as Exhibit 10.15 to the Company's
                           Quarterly Report on Form 10Q filed November 12, 1999
                           (File No. 000-26667) and herein incorporated by
                           reference.

                  10.16    Confirmation under ISDA Master Agreement, dated July
                           23, 1999, from Chase Bank of Texas, National
                           Association to Craftmade International, Inc., filed
                           as Exhibit 10.165 to the Company's Quarterly Report
                           on Form 10Q filed November 12, 1999 (File No.
                           000-26667) and herein incorporated by reference.

                  10.17    Fourth Amendment to Credit Agreement, dated April 2,
                           1999, by and among Craftmade International, Inc., a
                           Delaware corporation, Durocraft International, Inc.,
                           a Texas Corporation, Trade Source International,
                           Inc., a Delaware Corporation, C/D/R Incorporated, a
                           Delaware corporation, Chase Bank of Texas, National
                           Association and Frost National Bank, filed as Exhibit
                           10.17 to the Company's Quarterly Report on Form 10-Q
                           filed May 15, 2000 (File No. 000-26667) and herein
                           incorporated by reference.

                  10.18    Letter Agreement Concerning Fifth Amendment to Credit
                           Agreement, dated August 11, 1999, from Chase Bank of
                           Texas, N.A. and Frost National Bank to Craftmade
                           International, Inc., Durocraft International, Inc.,
                           Trade Source International, Inc., and C/D/R
                           Incorporated, filed as Exhibit 10.18 to the Company's
                           Quarterly Report on Form 10Q filed May 15, 2000 (File
                           No. 000-26667) and herein incorporated by reference.


                                       19
<PAGE>   20


                  10.19    Sixth Amendment to Credit Agreement, dated November
                           12, 1999, by and among Craftmade International, Inc.,
                           a Delaware corporation. Durocraft International,
                           Inc., a Texas Corporation, Trade Source
                           International, Inc., a Delaware Corporation, C/D/R
                           Incorporated, a Delaware corporation, Chase Bank of
                           Texas, National Association and Frost National Bank,
                           filed as Exhibit 10.19 to the Company's Quarterly
                           Report on Form 10Q filed May 15, 2000 (File No.
                           000-26667) and herein incorporated by reference.

                  10.20    Employment Agreement dated October 25, 1999, between
                           Kathy Oher and Craftmade International, Inc., filed
                           as Exhibit 10.20 to the Company's Annual Report on
                           Form 10-K filed September 26, 2000 (File No.
                           000-26667) and herein incorporated by reference.

                  10.21    Seventh Amendment to Credit Agreement dated May 12,
                           2000, by and among Craftmade International, Inc., a
                           Delaware corporation, C/D/R Incorporated, a Delaware
                           corporation, Chase Bank of Texas, National
                           Association and Frost National Bank, filed as Exhibit
                           10.21 to the Company's Annual Report on Form 10-K
                           filed September 26, 2000 (File No. 000-26667) and
                           herein incorporated by reference.

                  10.22    Craftmade International, Inc. 1999 Stock Option Plan,
                           filed as Exhibit A to the Company's Proxy Statement
                           on Schedule 14A filed October 4, 2000 (File
                           No. 000-26667) and herein incorporated by reference.

                  10.23    Craftmade International, Inc. 2000 Non-Employee
                           Director Stock Plan, filed as Exhibit B to the
                           Company's Proxy Statement on Schedule 14A filed
                           October 4, 2000 (File No. 000-26667) and herein
                           incorporated by reference.

                  27       Financial Data Schedule.

         b). Reports on Form 8-K

             None.




                                       20
<PAGE>   21


                                    SIGNATURE

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                           CRAFTMADE INTERNATIONAL, INC.
                                                    (Registrant)



Date November 8, 2000                      /s/  James R. Ridings
    ---------------------                  -------------------------------------
                                                    JAMES R. RIDINGS
                                                   President and Chief
                                                    Executive Officer


Date  November 8, 2000                     /s/  Kathleen B. Oher
    ---------------------                  -------------------------------------
                                                    KATHLEEN B. OHER
                                                Chief Financial Officer



                                       21
<PAGE>   22


                                INDEX TO EXHIBITS

<TABLE>
<CAPTION>
EXHIBIT
NUMBER                              DESCRIPTION
-------                             -----------
<S>      <C>
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 therein.

3.2      Certificate of Amendment of Certificate of Incorporation of the
         Company, dated March 24, 1992 and filed as Exhibit 4.2 to the Company's
         Form S-8 (File No. 333-44337) and incorporated by reference therein.

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-18 (File No.
         33-33594-FW) and incorporated by reference therein.

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 therein.

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 dated July 9, 1999 (File No.
         000-26667) and incorporated by reference herein.

10.1     Earnest Money contract and Design/Build Agreement dated May 8, 1995,
         between MEPC Quorum Properties II, Inc. and Craftmade International,
         Inc. (including exhibits), previously filed as an exhibit in Form 10-Q
         for the quarter ended December 31, 1995, and herein incorporated by
         reference.

10.2     Assignment of Rents and Leases dated December 21, 1995, between
         Craftmade International, Inc. and Allianz Life Insurance Company of
         North America (including exhibits), previously filed as an exhibit in
         Form 10-Q for the quarter ended December 31, 1995, and herein
         incorporated by reference.

10.3     Deed of Trust, Mortgage and Security Agreement made by Craftmade
         International, Inc., dated December 21,
</TABLE>


                                       22
<PAGE>   23


<TABLE>
<S>      <C>
         1995, to Patrick M. Arnold, as trustee for the benefit of Allianz Life
         Insurance Company of North America (including exhibits), previously
         filed as an exhibit in Form 10-Q for the quarter ended December 31,
         1995, and herein incorporated by reference.

10.4     Second Amended and Restated Credit Agreement dated November 14, 1995,
         among Craftmade International, Inc., Nations Bank of Texas, N.A., as
         Agent and the Lenders defined therein (including exhibits), previously
         filed as an exhibit in Form 10-Q for the quarter ended December 31,
         1995, and herein incorporated by reference.

10.5     Lease Agreement dated November 30, 1995, between Craftmade
         International, Inc. and TSI Prime, Inc., previously filed as an exhibit
         in Form 10-Q for the quarter ended December 31, 1995, and herein
         incorporated by reference.

10.6     Revolving credit facility with Texas Commerce Bank, previously filed as
         an exhibit in Form 10-K for the year ended June 30, 1996, and herein
         incorporated by reference.

10.7     Agreement and Plan of Merger, dated as of July 1, 1998, by and among
         Craftmade International, Inc., Trade Source International, Inc., a
         Delaware corporation, Neall and Leslie Humphrey, John DeBlois, the
         Wiley Family Trust, James Bezzerides, the Bezzco Inc. Employee
         Retirement Trust and Trade Source International, Inc., a California
         corporation, filed as Exhibit 2.1 to the Company's Current Report on
         Form 8-K filed July 15, 1998 (File No. 33-33594-FW) and herein
         incorporated by reference.

10.8     Voting Agreement, dated July 1, 1998, by and among James R. Ridings,
         Neall Humphrey and John DeBlois, filed as Exhibit 2.1 to the Company's
         Current Report on Form 8-K filed July 15, 1998 (File No. 33-33594-FW)
         and herein incorporated by reference.

10.9     Third Amendment to Credit Agreement, dated July 1, 1998, by and among
         Craftmade International, Inc., a Delaware corporation, Trade Source
         International, Inc., a Delaware corporation, Chase Bank of Texas,
         National Association (formerly named Texas Commerce Bank, National
         Association) and Frost National Bank (formerly named Overton Bank and
         Trust), filed as Exhibit 2.1 to the Company's Current Report on Form
         8-K filed July 15, 1998 (File No. 33-33594-FW) and herein incorporated
         by reference.
</TABLE>


                                       23
<PAGE>   24


<TABLE>
<S>      <C>
10.10    Consent to Merger by Chase Bank of Texas, National Association and
         Frost National Bank, filed as Exhibit 2.1 to the Company's Current
         Report on Form 8-K filed July 15, 1998 (File No. 33-33594-FW) and
         herein incorporated by reference.

10.11    Employment Agreement, dated July 1, 1998, by and among Craftmade
         International, Inc., Trade Source International, Inc., a Delaware
         corporation, and Neall Humphrey, filed as Exhibit 2.1 to the Company's
         Current Report on Form 8-K filed July 15, 1998 (File No. 33-33594-FW)
         and herein incorporated by reference.

10.12    Employment Agreement, dated July 1, 1998, by and among Craftmade
         International, Inc., Trade Source International, Inc., a Delaware
         corporation, and Leslie Humphrey, filed as Exhibit 2.1 to the Company's
         Current Report on Form 8-K filed July 15, 1998 (File No. 33-33594-FW)
         and herein incorporated by reference.

10.13    Employment Agreement, dated July 1, 1998, by and among Craftmade
         International, Inc., Trade Source International, Inc., a Delaware
         corporation, and John DeBlois, filed as Exhibit 2.1 to the Company's
         Current Report on Form 8-K filed July 15, 1998 (File No. 33-33594-FW)
         and herein incorporated by reference.

10.14    Registration Rights Agreement, dated July 1, 1998, by and among
         Craftmade International, Inc., Neall and Leslie Humphrey and John
         DeBlois, filed as Exhibit 2.1 to the Company's Current Report on Form
         8-K filed July 15, 1998 (File No. 33-33594-FW) and herein incorporated
         by reference.

10.15    ISDA Master Agreement and Schedule, dated June 17, 1999, by and among
         Chase Bank of Texas, National Association, Craftmade International,
         Inc., Durocraft International, Inc. and Trade Source International,
         Inc., filed as Exhibit 10.15 to the Company's Quarterly Report on Form
         10Q filed November 12, 1999 (File No. 000-26667) and herein
         incorporated by reference.

10.16    Confirmation under ISDA Master Agreement, dated July 23, 1999, from
         Chase Bank of Texas, National Association to Craftmade International,
         Inc., filed as Exhibit 10.165 to the Company's Quarterly Report on Form
         10Q filed November 12, 1999 (File No. 000-26667) and herein
         incorporated by reference.

10.17    Fourth Amendment to Credit Agreement, dated April 2, 1999, by and among
         Craftmade International, Inc., a Delaware corporation, C/D/R Inc., a
         Delaware corporation, Durocraft International, Inc. a
</TABLE>


                                       24
<PAGE>   25


<TABLE>
<S>      <C>
         Texas corporation, Trade Source International, a Delaware corporation,
         Chase Bank of Texas, National Association and Frost National Bank,
         filed as Exhibit 10.17 to the Company's Quarterly Report on Form 10-Q
         filed May 15, 2000 (File No. 000-26667) and herein incorporated by
         reference.

10.18    Letter Agreement Concerning Fifth Amendment to Credit Agreement, dated
         August 11, 1999, from Chase Bank of Texas, N.A. and Frost National Bank
         to Craftmade International, Inc., Durocraft International Inc., Trade
         Source International, Inc., and C/D/R Incorporated, filed as Exhibit
         10.18 to the Company's Quarterly Report on Form 10-Q filed May 15, 2000
         (File No. 000-26667) and herein incorporated by reference.

10.19    Sixth Amendment to Credit Agreement, dated November 12, 1999, by and
         among Craftmade International, Inc., a Delaware corporation, Durocraft
         International, Inc., a Texas corporation, Trade Source International,
         Inc., a Delaware corporation, C/D/R Incorporated, a Delaware
         corporation, Chase Bank of Texas, National Association and Frost
         National Bank, filed as Exhibit 10.19 to the Company's Quarterly Report
         on Form 10-Q filed May 15, 2000 (File No. 000-26667) and herein
         incorporated by reference.

10.20    Employment Agreement dated October 25, 1999, between Kathy Oher and
         Craftmade International, Inc., filed as Exhibit 10.20 to the Company's
         Annual Report on Form 10-K filed September 26, 2000 (File No.
         000-26667) and herein incorporated by reference.

10.21    Seventh Amendment to Credit Agreement dated May 12, 2000, by and among
         Craftmade International, Inc., a Delaware corporation, Durocraft
         International, Inc., a Texas corporation, Trade Source International,
         Inc., a Delaware corporation, C/D/R Incorporated, a Delaware
         corporation, Chase Bank of Texas, National Association and Frost
         National Bank, filed as Exhibit 10.21 to the Company's Annual Report on
         Form 10-K filed September 26, 2000 (File No. 000-26667) and herein
         incorporated by reference.

10.22    Craftmade International, Inc. 1999 Stock Option Plan, filed as
         Exhibit A to the Company's Proxy Statement on Schedule 14A filed
         October 4, 2000 (File No. 000-26667) and herein incorporated by
         reference.

10.23    Craftmade International, Inc. 2000 Non-Employee Director Stock Plan,
         filed as Exhibit B to the Company's Proxy Statement on Schedule 14A
         filed October 4, 2000 (File No. 000-26667) and herein incorporated by
         reference.

27       Financial Data Schedule
</TABLE>



                                       25