##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, DC 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 September 26, 2010
 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 No. 1-7604
 CROWN CRAFTS, INC.
  Delaware
    
    58-0678148(State or other jurisdiction of
    
    (I.R.S. Employer Identification No.)incorporation or organization)
 916 South Burnside Avenue, Gonzales, Louisiana 70737
 (Registrants telephone number, including area code)
 þ o
 o o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-Accelerated filer o
    
    Smaller Reporting Company þ(Do not check if a smaller reporting company)
 o þ




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TABLE OF CONTENTS  PART I  FINANCIAL INFORMATIONITEM 1. FINANCIAL STATEMENTSITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSITEM 4. CONTROLS AND PROCEDURESPART II  OTHER INFORMATIONITEM 1. LEGAL PROCEEDINGSITEM 1A. RISK FACTORSITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDSITEM 3. DEFAULTS UPON SENIOR SECURITIESITEM 4. (REMOVED AND RESERVED)ITEM 6. EXHIBITSSIGNATUREExhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2    Table of Contents  
  
  
 September 26, 2010(Unaudited)
    
    
    March 28, 2010(amounts in thousands,except share and per share amounts)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    13
    
    
    $
    75Accounts receivable (net of allowances of $1,097 at September 26, 2010 and $1,238 at March 28, 2010):Due from factor
    
    
    15,536
    
    
    
    17,633Other
    
    
    369
    
    
    
    388Inventories
    
    
    17,620
    
    
    
    10,453Prepaid expenses
    
    
    1,946
    
    
    
    1,625Temporary investments  restricted
    
    
    
    
    
    
    505Assets held for sale
    
    
    396
    
    
    
    396Deferred income taxes
    
    
    386
    
    
    
    399Total current assets
    
    
    36,266
    
    
    
    31,474Property, plant and equipment  at cost:Vehicles
    
    
    58
    
    
    
    58Land, buildings and improvements
    
    
    215
    
    
    
    212Machinery and equipment
    
    
    2,580
    
    
    
    2,537Furniture and fixtures
    
    
    784
    
    
    
    7643,637
    
    
    
    3,571Less accumulated depreciation
    
    
    3,127
    
    
    
    3,020Property, plant and equipment  net
    
    
    510
    
    
    
    551Intangible assets  at cost:Goodwill
    
    
    1,154
    
    
    
    864Customer relationships
    
    
    5,411
    
    
    
    5,083Other intangible assets
    
    
    6,695
    
    
    
    5,49613,260
    
    
    
    11,443Less accumulated amortization
    
    
    4,684
    
    
    
    4,086Intangible assets  net
    
    
    8,576
    
    
    
    7,357Other assets:Deferred income taxes
    
    
    1,793
    
    
    
    1,904Other
    
    
    104
    
    
    
    106Total other assets
    
    
    1,897
    
    
    
    2,010Total Assets
    
    $
    47,249
    
    
    $
    41,392LIABILITIES AND SHAREHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    7,539
    
    
    $
    5,563Accrued wages and benefits
    
    
    963
    
    
    
    838Accrued royalties
    
    
    1,626
    
    
    
    1,051Income taxes currently payable
    
    
    22
    
    
    
    1,048Other accrued liabilities
    
    
    207
    
    
    
    205Current maturities of long-term debt
    
    
    1,883
    
    
    
    1,952Total current liabilities
    
    
    12,240
    
    
    
    10,657Non-current liabilities:Long-term debt
    
    
    5,850
    
    
    
    3,238Commitments and contingencies
    
    
    
    
    
    
    Shareholders equity:Preferred stock  $0.01 par value per share; Authorized 1,000,000 shares; No shares issued at September 26, 2010 and March 28, 2010
    
    
    
    
    
    
    Common stock  $0.01 par value per share; Authorized 74,000,000 shares; Issued 10,772,272 shares at September 26, 2010 and
10,288,940 shares at March 28, 2010
    
    
    108
    
    
    
    103Additional paid-in capital
    
    
    41,755
    
    
    
    41,007Treasury stock  at cost  1,225,180 shares at September 26, 2010 and 1,074,025 shares at March 28, 2010
    
    
    (4,235
    )
    
    
    (3,580
    )Accumulated deficit
    
    
    (8,469
    )
    
    
    (10,033
    )Total shareholders equity
    
    
    29,159
    
    
    
    27,497Total Liabilities and Shareholders Equity
    
    $
    47,249
    
    
    $
    41,392
 See notes to unaudited condensed consolidated financial statements.
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Three-Month Periods Ended
    
    
    Six-Month Periods EndedSeptember 26, 2010
    
    
    September 27, 2009
    
    
    September 26, 2010
    
    
    September 27, 2009(amounts in thousands, except per share amounts)Net sales
    
    $
    23,711
    
    
    $
    21,713
    
    
    $
    40,878
    
    
    $
    39,448Cost of products sold
    
    
    18,056
    
    
    
    17,205
    
    
    
    30,932
    
    
    
    30,965Gross profit
    
    
    5,655
    
    
    
    4,508
    
    
    
    9,946
    
    
    
    8,483Marketing and administrative expenses
    
    
    3,519
    
    
    
    2,993
    
    
    
    6,534
    
    
    
    5,879Income from operations
    
    
    2,136
    
    
    
    1,515
    
    
    
    3,412
    
    
    
    2,604Other income (expense):Interest and amortization of debt discount and expense
    
    
    (125
    )
    
    
    (204
    )
    
    
    (222
    )
    
    
    (400
    )Other  net
    
    
    2
    
    
    
    (45
    )
    
    
    9
    
    
    
    (39
    )Income before income tax expense
    
    
    2,013
    
    
    
    1,266
    
    
    
    3,199
    
    
    
    2,165Income tax expense
    
    
    796
    
    
    
    471
    
    
    
    1,251
    
    
    
    811Income from continuing operations
    
    
    1,217
    
    
    
    795
    
    
    
    1,948
    
    
    
    1,354(Loss) income from discontinued operations  net of income taxes
    
    
    (3
    )
    
    
    8
    
    
    
    (8
    )
    
    
    (13
    )Net income
    
    $
    1,214
    
    
    $
    803
    
    
    $
    1,940
    
    
    $
    1,341Weighted average shares outstanding  basic
    
    
    9,587
    
    
    
    9,182
    
    
    
    9,417
    
    
    
    9,196Weighted average shares outstanding  diluted
    
    
    9,748
    
    
    
    9,384
    
    
    
    9,555
    
    
    
    9,381Basic earnings per share:Income from continuing operations
    
    $
    0.13
    
    
    $
    0.09
    
    
    $
    0.21
    
    
    $
    0.15(Loss) income from discontinued operations  net of income taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total basic earnings per share
    
    $
    0.13
    
    
    $
    0.09
    
    
    $
    0.21
    
    
    $
    0.15Diluted earnings per share:Income from continuing operations
    
    $
    0.12
    
    
    $
    0.08
    
    
    $
    0.20
    
    
    $
    0.14(Loss) income from discontinued operations  net of income taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total diluted earnings per share
    
    $
    0.12
    
    
    $
    0.08
    
    
    $
    0.20
    
    
    $
    0.14Cash dividends declared per share
    
    $
    0.02
    
    
    $
    
    
    
    $
    0.04
    
    
    $
    
 See notes to unaudited condensed consolidated financial statements.
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Six-Month Periods EndedSeptember 26, 2010
    
    
    September 27, 2009(amounts in thousands)Operating activities:Net income
    
    $
    1,940
    
    
    $
    1,341Adjustments to reconcile net income to net cash
provided by operating activities:Depreciation of property, plant and equipment
    
    
    128
    
    
    
    148Amortization of intangibles
    
    
    598
    
    
    
    919Deferred income taxes
    
    
    124
    
    
    
    (20
    )Gain on sale of property, plant and equipment
    
    
    (2
    )
    
    
    Accretion of interest expense to original issue discount
    
    
    115
    
    
    
    129Accretion of interest income to temporary investment  restricted
    
    
    
    
    
    
    (2
    )Stock-based compensation
    
    
    484
    
    
    
    476Tax shortfall from stock-based compensation
    
    
    (33
    )
    
    
    Changes in assets and liabilities:Accounts receivable
    
    
    2,116
    
    
    
    4,901Inventories
    
    
    (6,895
    )
    
    
    (1,129
    )Prepaid expenses
    
    
    (321
    )
    
    
    176Other assets
    
    
    (15
    )
    
    
    45Accounts payable
    
    
    1,969
    
    
    
    (2,152
    )Accrued liabilities
    
    
    (324
    )
    
    
    (528
    )Net cash (used in) provided by operating activities
    
    
    (116
    )
    
    
    4,304Investing activities:Capital expenditures
    
    
    (87
    )
    
    
    (89
    )Maturity (purchase) of temporary investments
    
    
    505
    
    
    
    (500
    )Proceeds from disposition of assets
    
    
    2
    
    
    
    Payment to acquire the Bibsters product line
    
    
    (2,072
    )
    
    
    Payment to acquire the assets of Neat Solutions, Inc., net of liabilities assumed
    
    
    
    
    
    
    (4,434
    )Net cash used in investing activities
    
    
    (1,652
    )
    
    
    (5,023
    )Financing activities:Payments on long-term debt
    
    
    (2,000
    )
    
    
    (1,250
    )Borrowings (repayments) under revolving line of credit, net
    
    
    4,428
    
    
    
    (1,042
    )Purchase of treasury stock
    
    
    (655
    )
    
    
    (277
    )Issuance of common stock
    
    
    158
    
    
    
    6Excess tax benefit from stock-based compensation
    
    
    144
    
    
    
    Dividends paid
    
    
    (369
    )
    
    
    Net cash provided by (used in) financing activities
    
    
    1,706
    
    
    
    (2,563
    )Net decrease in cash and cash equivalents
    
    
    (62
    )
    
    
    (3,282
    )Cash and cash equivalents at beginning of period
    
    
    75
    
    
    
    15,249Cash and cash equivalents at end of period
    
    $
    13
    
    
    $
    11,967Supplemental cash flow information:Income taxes paid
    
    $
    2,039
    
    
    $
    1,843Interest paid, net of interest received
    
    
    96
    
    
    
    257Noncash financing activity:Dividends declared but unpaid
    
    
    191
    
    
    
    
 See notes to unaudited condensed consolidated financial statements.
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Note 1  Summary of Significant Accounting Policies
 Basis of Presentation:
 Fiscal Year:
 Use of Estimates:
 Cash and Cash Equivalents:
 Financial Instruments:
 
    
    Cash and cash equivalents, accounts receivable and accounts payable  For those
short-term instruments, the carrying value is a reasonable estimate of fair value.
 
    
    Long-term debt  The carrying value of the Companys long-term debt approximates
fair value because interest rates under the Companys borrowings are variable, based on
prevailing market rates.
 Depreciation and Amortization:
 Segment and Related Information:
  4




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Revenue Recognition:
 Allowances Against Accounts Receivable
  Inventory Valuation:
   5




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Valuation of Long-Lived Assets, Identifiable Intangible Assets and Goodwill:
  Royalty Payments:
 Provisions for Income Taxes:
  Earnings Per Share:
  6




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Three-Month Periods Ended
    
    
    Six-Month Periods EndedSeptember 26, 2010
    
    
    September 27, 2009
    
    
    September 26, 2010
    
    
    September 27, 2009(Amounts in thousands, except per share data)Income from continuing operations
    
    $
    1,217
    
    
    $
    795
    
    
    $
    1,948
    
    
    $
    1,354(Loss) income from discontinued
operations, net of taxes
    
    
    (3
    )
    
    
    8
    
    
    
    (8
    )
    
    
    (13
    )Net income
    
    $
    1,214
    
    
    $
    803
    
    
    $
    1,940
    
    
    $
    1,341Weighted average number of common
shares outstanding:Basic
    
    
    9,587
    
    
    
    9,182
    
    
    
    9,417
    
    
    
    9,196Effect of dilutive securities
    
    
    161
    
    
    
    202
    
    
    
    138
    
    
    
    185Diluted
    
    
    9,748
    
    
    
    9,384
    
    
    
    9,555
    
    
    
    9,381Basic earnings per common share:Continuing operations
    
    $
    0.13
    
    
    $
    0.09
    
    
    $
    0.21
    
    
    $
    0.15Discontinued operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    $
    0.13
    
    
    $
    0.09
    
    
    $
    0.21
    
    
    $
    0.15Diluted earnings per common share:Continuing operations
    
    $
    0.12
    
    
    $
    0.08
    
    
    $
    0.20
    
    
    $
    0.14Discontinued operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    $
    0.12
    
    
    $
    0.08
    
    
    $
    0.20
    
    
    $
    0.14
 Recently Issued Accounting Standards: Subsequent Events Subsequent Events (Topic 855):
Amendments to Certain Recognition and Disclosure Requirements
 Revenue Recognition (Topic 605):
Multiple-Deliverable Revenue Arrangements
 Receivables (Topic 310): Disclosures
about the Credit Quality of Financing Receivables and the Allowance for Credit Losses
  7




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Note 2  Discontinued Operations
  Note 3  Subsequent Events
  Note 4  Acquisitions
 Neat Solutions: ® ®
   Tangible assets:
    
    AmountAccounts receivable
    
    $
    837Inventory
    
    
    548Prepaid expenses
    
    
    52Fixed assets
    
    
    12Other assets
    
    
    2Total tangible assets
    
    
    1,451Amortizable intangible assets:Trademarks
    
    
    892Designs
    
    
    33Non-compete covenant
    
    
    241Customer relationships
    
    
    1,302Total amortizable intangible assets
    
    
    2,468Goodwill
    
    
    864Total acquired assets
    
    
    4,783Liabilities assumed  accounts payable
    
    
    349Net acquisition cost
    
    $
    4,434
  8




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Bibsters ® : ® ® ® ®
 ® ® ®
  Amortizable intangible assets:
    
    AmountTrademarks
    
    $
    629Patents
    
    
    553Customer relationships
    
    
    328Total amortizable intangible assets
    
    
    1,510Goodwill
    
    
    290Total intangible assets
    
    
    1,800Tangible assets  inventory
    
    
    272Total acquisition cost
    
    $
    2,072
 Note 5  Stock-based Compensation
   Compensation 
Stock Compensation,
  9




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##### Table of Contents



Stock Options:
 Weighted-Average
    
    
    Number of OptionsExercise Price
    
    
    OutstandingOutstanding at March 28, 2010
    
    $
    2.94
    
    
    
    825,832Granted
    
    
    4.23
    
    
    
    110,000Exercised
    
    
    (1.39
    )
    
    
    (113,332
    )Forfeited
    
    
    (4.08
    )
    
    
    (2,000
    )Outstanding at September 26, 2010
    
    
    3.32
    
    
    
    820,500Exercisable at September 26, 2010
    
    
    3.21
    
    
    
    625,500
   Options issued
    
    
    110,000Grant Date
    
    June 23, 2010Dividend yield
    
    
    1.89
    %Expected volatility
    
    
    55.00
    %Risk free interest rate
    
    
    2.17
    %Expected life in years
    
    
    5.75Forfeiture rate
    
    
    5.00
    %Exercise price (grant-date closing price)
    
    $
    4.23Fair value
    
    $
    1.88
  Three-month Period
    
    
    Six-month PeriodCost of
    
    
    Marketing &
    
    
    
    
    
    
    Cost of
    
    
    Marketing &Products
    
    
    Administrative
    
    
    Total
    
    
    Products
    
    
    Administrative
    
    
    TotalOptions Granted in Fiscal Year
    
    Sold
    
    
    Expenses
    
    
    Expense
    
    
    Sold
    
    
    Expenses
    
    
    Expense2009
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    13
    
    
    $
    38
    
    
    $
    512010
    
    
    11
    
    
    
    27
    
    
    
    38
    
    
    
    19
    
    
    
    48
    
    
    
    672011
    
    
    11
    
    
    
    13
    
    
    
    24
    
    
    
    11
    
    
    
    14
    
    
    
    25Total stock option compensation
    
    $
    22
    
    
    $
    40
    
    
    $
    62
    
    
    $
    43
    
    
    $
    100
    
    
    $
    143
  Three-month Period
    
    
    Six-month PeriodCost of
    
    
    Marketing &
    
    
    
    
    
    
    Cost of
    
    
    Marketing &Products
    
    
    Administrative
    
    
    Total
    
    
    Products
    
    
    Administrative
    
    
    TotalOptions Granted in Fiscal Year
    
    Sold
    
    
    Expenses
    
    
    Expense
    
    
    Sold
    
    
    Expenses
    
    
    Expense2008
    
    $
    7
    
    
    $
    19
    
    
    $
    26
    
    
    $
    16
    
    
    $
    41
    
    
    $
    572009
    
    
    11
    
    
    
    34
    
    
    
    45
    
    
    
    26
    
    
    
    78
    
    
    
    1042010
    
    
    4
    
    
    
    11
    
    
    
    15
    
    
    
    4
    
    
    
    11
    
    
    
    15Total stock option compensation
    
    $
    22
    
    
    $
    64
    
    
    $
    86
    
    
    $
    46
    
    
    $
    130
    
    
    $
    176
   10




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Non-vested Stock:
        Three-month Period
    
    
    Six-month PeriodNon-employee
    
    
    Total
    
    
    
    
    
    
    Non-employee
    
    
    TotalStock Granted in Fiscal Year
    
    Employees
    
    
    Directors
    
    
    Expense
    
    
    Employees
    
    
    Directors
    
    
    Expense2007
    
    $
    28
    
    
    $
    
    
    
    $
    28
    
    
    $
    70
    
    
    $
    
    
    
    $
    702009
    
    
    
    
    
    
    4
    
    
    
    4
    
    
    
    
    
    
    
    19
    
    
    
    192010
    
    
    
    
    
    
    7
    
    
    
    7
    
    
    
    
    
    
    
    32
    
    
    
    322011
    
    
    209
    
    
    
    11
    
    
    
    220
    
    
    
    209
    
    
    
    11
    
    
    
    220Total stock grant compensation
    
    $
    237
    
    
    $
    22
    
    
    $
    259
    
    
    $
    279
    
    
    $
    62
    
    
    $
    341
  11




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Three-month Period
    
    
    Six-month PeriodNon-employee
    
    
    Total
    
    
    
    
    
    
    Non-employee
    
    
    TotalStock Granted in Fiscal Year
    
    Employees
    
    
    Directors
    
    
    Expense
    
    
    Employees
    
    
    Directors
    
    
    Expense2007
    
    $
    189
    
    
    $
    
    
    
    $
    189
    
    
    $
    263
    
    
    $
    
    
    
    $
    2632009
    
    
    
    
    
    
    15
    
    
    
    15
    
    
    
    
    
    
    
    29
    
    
    
    292010
    
    
    
    
    
    
    8
    
    
    
    8
    
    
    
    
    
    
    
    8
    
    
    
    8Total stock grant compensation
    
    $
    189
    
    
    $
    23
    
    
    $
    212
    
    
    $
    263
    
    
    $
    37
    
    
    $
    300
  Note 6  Inventories
  September 26, 2010
    
    
    March 28, 2010Raw Materials
    
    $
    41
    
    
    $
    66Finished Goods
    
    
    17,579
    
    
    
    10,387Total inventory
    
    $
    17,620
    
    
    $
    10,453
 Note 7  Financing Arrangements
 Factoring Agreement:
 Notes Payable and Other Credit Facilities:
 September 26, 2010
    
    
    March 28, 2010Revolving line of credit
    
    $
    5,850
    
    
    $
    1,422Non-interest bearing notes
    
    
    2,000
    
    
    
    4,000Original issue discount
    
    
    (117
    )
    
    
    (232
    )7,733
    
    
    
    5,190Less current maturities
    
    
    1,883
    
    
    
    1,952$
    5,850
    
    
    $
    3,238
  12




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Revolving Line of Credit
  Subordinated Notes
  FiscalYear
    
    Revolver
    
    
    Sub Notes
    
    
    Total2012
    
    $
    
    
    
    $
    2,000
    
    
    $
    2,0002013
    
    
    
    
    
    
    
    
    
    
    2014
    
    
    5,850
    
    
    
    
    
    
    
    5,850Total
    
    $
    5,850
    
    
    $
    2,000
    
    
    $
    7,850
 Note 8  Goodwill, Customer Relationships and Other Intangible Assets
 Goodwill:
 ®
  13




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##### Table of Contents



Customer Relationships and Other Intangible Assets:
 Estimated
    
    
    
    
    
    
    Amortization ExpenseCarrying
    
    
    Useful
    
    
    Accumulated
    
    
    Three-month Periods Ended
    
    
    Six-month Periods EndedAmount
    
    
    Life
    
    
    Amortization
    
    
    September 26, 2010
    
    
    September 27, 2009
    
    
    September 26, 2010
    
    
    September 27, 2009Kimberly Grant Acquisition
on December 29, 2006:Tradename
    
    $
    466
    
    
    15 years
    
    
    $
    117
    
    
    $
    8
    
    
    $
    8
    
    
    $
    16
    
    
    $
    16Existing designs
    
    
    36
    
    
    1 year
    
    
    
    36
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Non-compete covenant
    
    
    98
    
    
    15 years
    
    
    
    24
    
    
    
    1
    
    
    
    1
    
    
    
    3
    
    
    
    2Total Kimberly Grant Acquisition
    
    
    600
    
    
    14 years
    *
    
    
    177
    
    
    
    9
    
    
    
    9
    
    
    
    19
    
    
    
    18Springs Baby Products Acquisition
on November 5, 2007:Licenses & existing designs
    
    
    1,655
    
    
    2 years
    
    
    
    1,655
    
    
    
    
    
    
    
    207
    
    
    
    
    
    
    
    414Licenses & future designs
    
    
    1,847
    
    
    4 years
    
    
    
    1,347
    
    
    
    116
    
    
    
    116
    
    
    
    231
    
    
    
    231Non-compete covenant
    
    
    115
    
    
    4 years
    
    
    
    84
    
    
    
    8
    
    
    
    7
    
    
    
    15
    
    
    
    14Customer relationships
    
    
    3,781
    
    
    10 years
    
    
    
    1,103
    
    
    
    94
    
    
    
    94
    
    
    
    189
    
    
    
    189Total Springs Baby Acquisition
    
    
    7,398
    
    
    7 years
    *
    
    
    4,189
    
    
    
    218
    
    
    
    424
    
    
    
    435
    
    
    
    848Neat Solutions Acquisition on
July 2, 2009:Trademarks
    
    
    892
    
    
    15 years
    
    
    
    74
    
    
    
    14
    
    
    
    15
    
    
    
    29
    
    
    
    15Designs
    
    
    33
    
    
    4 years
    
    
    
    11
    
    
    
    3
    
    
    
    2
    
    
    
    5
    
    
    
    2Non-compete covenant
    
    
    241
    
    
    5 years
    
    
    
    60
    
    
    
    12
    
    
    
    12
    
    
    
    24
    
    
    
    12Customer relationships
    
    
    1,302
    
    
    16 years
    
    
    
    102
    
    
    
    21
    
    
    
    20
    
    
    
    41
    
    
    
    20Total Neat Solutions Acquisition
    
    
    2,468
    
    
    14 years
    *
    
    
    247
    
    
    
    50
    
    
    
    49
    
    
    
    99
    
    
    
    49Bibsters® Acquistion on
May 27, 2010:Trademarks
    
    
    629
    
    
    15 years
    
    
    
    14
    
    
    
    10
    
    
    
    
    
    
    
    14
    
    
    
    Patents
    
    
    553
    
    
    10 years
    
    
    
    18
    
    
    
    13
    
    
    
    
    
    
    
    18
    
    
    
    Customer relationships
    
    
    328
    
    
    14 years
    
    
    
    8
    
    
    
    6
    
    
    
    
    
    
    
    8
    
    
    
    Total Bibsters® Acquistion
    
    
    1,510
    
    
    13 years
    *
    
    
    40
    
    
    
    29
    
    
    
    
    
    
    
    40
    
    
    
    Internally developed intangible assets
    
    
    130
    
    
    10 years
    
    
    
    31
    
    
    
    3
    
    
    
    3
    
    
    
    5
    
    
    
    4Total other intangible assets
    
    $
    12,106
    
    
    
    
    
    
    $
    4,684
    
    
    $
    309
    
    
    $
    485
    
    
    $
    598
    
    
    $
    919
 *
    
    Weighted-Average 
       14




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##### Table of Contents



Three-month Periods Ended
    
    
    
    
    
    
    
    
    
    
    Six-month Periods EndedSeptember 26, 2010
    
    
    September 27, 2009
    
    
    Change
    
    
    Change
    
    
    September 26, 2010
    
    
    September 27, 2009
    
    
    Change
    
    
    ChangeNet sales by categoryBedding, blankets and accessories
    
    $
    17,307
    
    
    $
    16,233
    
    
    $
    1,074
    
    
    
    6.6
    %
    
    $
    29,854
    
    
    $
    30,806
    
    
    $
    (952
    )
    
    
    -3.1
    %Bibs, bath and disposable products
    
    
    6,404
    
    
    
    5,480
    
    
    
    924
    
    
    
    16.9
    %
    
    
    11,024
    
    
    
    8,642
    
    
    
    2,382
    
    
    
    27.6
    %Total net sales
    
    
    23,711
    
    
    
    21,713
    
    
    
    1,998
    
    
    
    9.2
    %
    
    
    40,878
    
    
    
    39,448
    
    
    
    1,430
    
    
    
    3.6
    %Cost of products sold
    
    
    18,056
    
    
    
    17,205
    
    
    
    851
    
    
    
    4.9
    %
    
    
    30,932
    
    
    
    30,965
    
    
    
    (33
    )
    
    
    -0.1
    %Gross profit
    
    
    5,655
    
    
    
    4,508
    
    
    
    1,147
    
    
    
    25.4
    %
    
    
    9,946
    
    
    
    8,483
    
    
    
    1,463
    
    
    
    17.2
    %% of net sales
    
    
    23.8
    %
    
    
    20.8
    %
    
    
    
    
    
    
    
    
    
    
    24.3
    %
    
    
    21.5
    %Marketing and administrative expenses
    
    
    3,519
    
    
    
    2,993
    
    
    
    526
    
    
    
    17.6
    %
    
    
    6,534
    
    
    
    5,879
    
    
    
    655
    
    
    
    11.1
    %% of net sales
    
    
    14.8
    %
    
    
    13.8
    %
    
    
    
    
    
    
    
    
    
    
    16.0
    %
    
    
    14.9
    %Interest expense
    
    
    125
    
    
    
    204
    
    
    
    (79
    )
    
    
    -38.7
    %
    
    
    222
    
    
    
    400
    
    
    
    (178
    )
    
    
    -44.5
    %Other income
    
    
    2
    
    
    
    (45
    )
    
    
    47
    
    
    
    -104.4
    %
    
    
    9
    
    
    
    (39
    )
    
    
    48
    
    
    
    -123.1
    %Income tax expense
    
    
    796
    
    
    
    471
    
    
    
    325
    
    
    
    69.0
    %
    
    
    1,251
    
    
    
    811
    
    
    
    440
    
    
    
    54.3
    %Income from continuing operations after taxes
    
    
    1,217
    
    
    
    795
    
    
    
    422
    
    
    
    53.1
    %
    
    
    1,948
    
    
    
    1,354
    
    
    
    594
    
    
    
    43.9
    %Discontinued operations  net of taxes
    
    
    (3
    )
    
    
    8
    
    
    
    (11
    )
    
    
    -137.5
    %
    
    
    (8
    )
    
    
    (13
    )
    
    
    5
    
    
    
    -38.5
    %Net income
    
    
    1,214
    
    
    
    803
    
    
    
    411
    
    
    
    51.2
    %
    
    
    1,940
    
    
    
    1,341
    
    
    
    599
    
    
    
    44.7
    %% of net sales
    
    
    5.1
    %
    
    
    3.7
    %
    
    
    
    
    
    
    
    
    
    
    4.7
    %
    
    
    3.4
    %
 Net Sales:
  ®
 ®
 Gross Profit: ®
 Marketing and Administrative Expenses:
 Interest Expense:
  15




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##### Table of Contents



Income Tax Expense:
    ®
      16




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##### Table of Contents



Form 10-K
  17




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##### Table of Contents



Total Number of
    
    
    Approximate DollarShares Purchased as
    
    
    Value of Shares ThatTotal Number
    
    
    
    
    
    
    Part of Publicly
    
    
    May Yet be Purchasedof Shares
    
    
    Average Price
    
    
    Announced Plans or
    
    
    Under the Plans orPeriod
    
    Purchased (1)
    
    
    Paid Per Share
    
    
    Programs
    
    
    ProgramsJune 28, 2010 through August 1, 2010
    
    
    1,464
    
    
    $
    4.02
    
    
    
    0
    
    
    $
    0August 2, 2010 through August 29, 2010
    
    
    107,134
    
    
    $
    4.50
    
    
    
    0
    
    
    $
    0August 30, 2010 through September 26,
2010
    
    
    0
    
    
    $
    0
    
    
    
    0
    
    
    $
    0Total
    
    
    108,598
    
    
    $
    4.49
    
    
    
    0
    
    
    $
    0
 (1)
    
    The shares purchased from June 28, 2010 through September 26, 2010 consist of shares of common
stock surrendered to the Company in payment of the exercise price and income tax withholding
obligations relating to the exercise of stock options and in payment of the income tax
withholding obligations relating to the vesting of shares of non-vested stock. 
   
     18




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##### Table of Contents



ExhibitNo.
    
    Exhibit4.1
    
    
    Amendment No. 4 to Amended and Restated Rights Agreement dated as of July 27, 2010
between the Company and Computershare Trust Company, N.A. (1)31.1
    
    
    Rule 13a-14(a)/15d-14(a) Certification by the Companys Chief Executive Officer (2)31.2
    
    
    Rule 13a-14(a)/15d-14(a) Certification by the Companys Chief Financial Officer (2)32.1
    
    
    Section 1350 Certification by the Companys Chief Executive Officer (2)32.2
    
    
    Section 1350 Certification by the Companys Chief Financial Officer (2)
 (1)
    
    Incorporated herein by reference to Registrants Current Report on Form 8-K dated
July 27, 2010.(2)
    
    Filed herewith. 
   CROWN CRAFTS, INC.Date:  November 8, 2010
    /s/ Olivia W. ElliottOLIVIA W. ELLIOTTChief Financial Officer
(Principal Financial
Officer and Principal
Accounting Officer)  19




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##### Table of Contents



Index to Exhibits
 ExhibitNo.
    
    Exhibit4.1
    
    
    Amendment No. 4 to Amended and Restated Rights Agreement dated as of July 27, 2010
between the Company and Computershare Trust Company, N.A. (1)31.1
    
    
    Rule 13a-14(a)/15d-14(a) Certification by the Companys Chief Executive Officer (2)31.2
    
    
    Rule 13a-14(a)/15d-14(a) Certification by the Companys Chief Financial Officer (2)32.1
    
    
    Section 1350 Certification by the Companys Chief Executive Officer (2)32.2
    
    
    Section 1350 Certification by the Companys Chief Financial Officer (2)
 (1)
    
    Incorporated herein by reference to Registrants Current Report on Form 8-K
dated July 27, 2010.(2)
    
    Filed herewith.  20