##### 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 December 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 
incorporation or organization)
    
    (I.R.S. Employer Identification No.)
 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 STATEMENTSCONDENSED CONSOLIDATED BALANCE SHEETSUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOMEUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSNOTES TO UNAUDITED CONDENSED CONSOLIDATED 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 5. OTHER INFORMATIONITEM 6. EXHIBITSSIGNATUREIndex to ExhibitsExhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2    Table of Contents  
  
 ITEM 1.
    
    FINANCIAL STATEMENTS
  
   December 26, 2010(Unaudited)
    
    
    March 28, 2010(amounts in thousands,except share and per share amounts)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    36
    
    
    $
    75Accounts receivable (net of allowances of $1,240 at December 26, 2010 and $1,238 at March 28, 2010):Due from factor
    
    
    15,715
    
    
    
    17,633Other
    
    
    753
    
    
    
    388Inventories
    
    
    19,352
    
    
    
    10,453Prepaid expenses
    
    
    2,088
    
    
    
    1,625Temporary investments  restricted
    
    
    
    
    
    
    505Assets held for sale
    
    
    396
    
    
    
    396Deferred income taxes
    
    
    363
    
    
    
    399Total current assets
    
    
    38,703
    
    
    
    31,474Property, plant and equipment  at cost:Vehicles
    
    
    58
    
    
    
    58Land, buildings and improvements
    
    
    215
    
    
    
    212Machinery and equipment
    
    
    2,602
    
    
    
    2,537Furniture and fixtures
    
    
    781
    
    
    
    7643,656
    
    
    
    3,571Less accumulated depreciation
    
    
    3,190
    
    
    
    3,020Property, plant and equipment  net
    
    
    466
    
    
    
    551Intangible assets  at cost:Goodwill
    
    
    1,154
    
    
    
    864Customer relationships
    
    
    5,411
    
    
    
    5,083Other intangible assets
    
    
    6,701
    
    
    
    5,49613,266
    
    
    
    11,443Less accumulated amortization
    
    
    4,993
    
    
    
    4,086Intangible assets  net
    
    
    8,273
    
    
    
    7,357Other assets:Deferred income taxes
    
    
    1,862
    
    
    
    1,904Other
    
    
    104
    
    
    
    106Total other assets
    
    
    1,966
    
    
    
    2,010Total Assets
    
    $
    49,408
    
    
    $
    41,392LIABILITIES AND SHAREHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    8,389
    
    
    $
    5,563Accrued wages and benefits
    
    
    1,324
    
    
    
    838Accrued royalties
    
    
    1,876
    
    
    
    1,051Income taxes currently payable
    
    
    71
    
    
    
    1,048Other accrued liabilities
    
    
    196
    
    
    
    205Current maturities of long-term debt
    
    
    1,917
    
    
    
    1,952Total current liabilities
    
    
    13,773
    
    
    
    10,657Non-current liabilities:Long-term debt
    
    
    5,666
    
    
    
    3,238Commitments and contingencies
    
    
    
    
    
    
    Shareholders equity:Preferred stock  $0.01 par value per share; Authorized 1,000,000 shares; No shares issued at December
26, 2010 and March 28, 2010
    
    
    
    
    
    
    Common stock  $0.01 par value per share; Authorized 74,000,000 shares; Issued 10,825,772 shares at
December 26, 2010 and 10,288,940 shares at March 28, 2010
    
    
    108
    
    
    
    103Additional paid-in capital
    
    
    42,085
    
    
    
    41,007Treasury stock  at cost - 1,244,326 shares at December 26, 2010 and 1,074,025 shares at March 28, 2010
    
    
    (4,338
    )
    
    
    (3,580
    )Accumulated deficit
    
    
    (7,886
    )
    
    
    (10,033
    )Total shareholders equity
    
    
    29,969
    
    
    
    27,497Total Liabilities and Shareholders Equity
    
    $
    49,408
    
    
    $
    41,392
 See notes to unaudited condensed consolidated financial statements.
  1




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Three-Month Periods Ended
    
    
    Nine-Month Periods EndedDecember 26, 2010
    
    
    December 27, 2009
    
    
    December 26, 2010
    
    
    December 27, 2009(amounts in thousands, except per share amounts)Net sales
    
    $
    21,938
    
    
    $
    20,646
    
    
    $
    62,816
    
    
    $
    60,094Cost of products sold
    
    
    17,531
    
    
    
    16,008
    
    
    
    48,463
    
    
    
    46,973Gross profit
    
    
    4,407
    
    
    
    4,638
    
    
    
    14,353
    
    
    
    13,121Marketing and administrative expenses
    
    
    3,047
    
    
    
    2,746
    
    
    
    9,581
    
    
    
    8,625Income from operations
    
    
    1,360
    
    
    
    1,892
    
    
    
    4,772
    
    
    
    4,496Other income (expense):Interest and amortization of debt discount and
expense
    
    
    (112
    )
    
    
    (181
    )
    
    
    (334
    )
    
    
    (581
    )Other  net
    
    
    (8
    )
    
    
    9
    
    
    
    1
    
    
    
    (30
    )Income before income tax expense
    
    
    1,240
    
    
    
    1,720
    
    
    
    4,439
    
    
    
    3,885Income tax expense
    
    
    460
    
    
    
    598
    
    
    
    1,711
    
    
    
    1,409Income from continuing operations
    
    
    780
    
    
    
    1,122
    
    
    
    2,728
    
    
    
    2,476Loss from discontinued operations  net of income taxes
    
    
    (5
    )
    
    
    (9
    )
    
    
    (13
    )
    
    
    (22
    )Net income
    
    $
    775
    
    
    $
    1,113
    
    
    $
    2,715
    
    
    $
    2,454Weighted average shares outstanding  basic
    
    
    9,565
    
    
    
    9,167
    
    
    
    9,466
    
    
    
    9,186Weighted average shares outstanding  diluted
    
    
    9,786
    
    
    
    9,271
    
    
    
    9,631
    
    
    
    9,287Basic earnings per share:Income from continuing operations
    
    $
    0.08
    
    
    $
    0.12
    
    
    $
    0.29
    
    
    $
    0.27Loss from discontinued operations  net of income
taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total basic earnings per share
    
    $
    0.08
    
    
    $
    0.12
    
    
    $
    0.29
    
    
    $
    0.27Diluted earnings per share:Income from continuing operations
    
    $
    0.08
    
    
    $
    0.12
    
    
    $
    0.28
    
    
    $
    0.26Loss from discontinued operations  net of income
taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total diluted earnings per share
    
    $
    0.08
    
    
    $
    0.12
    
    
    $
    0.28
    
    
    $
    0.26Cash dividends declared per share
    
    $
    0.02
    
    
    $
    
    
    
    $
    0.06
    
    
    $
    
 See notes to unaudited condensed consolidated financial statements.
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Nine-Month Periods EndedDecember 26, 2010
    
    
    December 27, 2009(amounts in thousands)Operating activities:Net income
    
    $
    2,715
    
    
    $
    2,454Adjustments to reconcile net income to net cash
provided by operating activities:Depreciation of property, plant and equipment
    
    
    192
    
    
    
    220Amortization of intangibles
    
    
    907
    
    
    
    1,265Deferred income taxes
    
    
    78
    
    
    
    176Gain on sale of property, plant and equipment
    
    
    (2
    )
    
    
    Accretion of interest expense to original issue discount
    
    
    148
    
    
    
    195Accretion of interest income to temporary investment  restricted
    
    
    
    
    
    
    (3
    )Stock-based compensation
    
    
    605
    
    
    
    617Tax shortfall from stock-based compensation
    
    
    (14
    )
    
    
    Changes in assets and liabilities:Accounts receivable
    
    
    1,554
    
    
    
    5,955Inventories
    
    
    (8,627
    )
    
    
    (994
    )Prepaid expenses
    
    
    (463
    )
    
    
    (835
    )Other assets
    
    
    (21
    )
    
    
    47Accounts payable
    
    
    2,819
    
    
    
    1,930Accrued liabilities
    
    
    325
    
    
    
    (146
    )Net cash provided by operating activities
    
    
    216
    
    
    
    10,881Investing activities:Capital expenditures
    
    
    (107
    )
    
    
    (132
    )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
    
    
    (1,672
    )
    
    
    (5,066
    )Financing activities:Payments on long-term debt
    
    
    (2,000
    )
    
    
    (1,667
    )Borrowings (repayments) under revolving line of credit, net
    
    
    4,245
    
    
    
    (18,118
    )Purchase of treasury stock
    
    
    (758
    )
    
    
    (524
    )Issuance of common stock
    
    
    341
    
    
    
    165Excess tax benefit from stock-based compensation
    
    
    151
    
    
    
    Dividends paid
    
    
    (562
    )
    
    
    Net cash provided by (used in) financing activities
    
    
    1,417
    
    
    
    (20,144
    )Net decrease in cash and cash equivalents
    
    
    (39
    )
    
    
    (14,329
    )Cash and cash equivalents at beginning of period
    
    
    75
    
    
    
    15,249Cash and cash equivalents at end of period
    
    $
    36
    
    
    $
    920Supplemental cash flow information:Income taxes paid
    
    $
    2,507
    
    
    $
    1,943Interest paid, net of interest received
    
    
    171
    
    
    
    384Noncash financing activity:Dividends declared but unpaid
    
    
    192
    
    
    
    
 See notes to unaudited condensed consolidated financial statements.
  3




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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
    
    
    Nine-Month Periods EndedDecember 26, 2010
    
    
    December 27, 2009
    
    
    December 26, 2010
    
    
    December 27, 2009(Amounts in thousands, except per share data)Income from continuing operations
    
    $
    780
    
    
    $
    1,122
    
    
    $
    2,728
    
    
    $
    2,476Loss from discontinued operations, net of taxes
    
    
    (5
    )
    
    
    (9
    )
    
    
    (13
    )
    
    
    (22
    )Net income
    
    $
    775
    
    
    $
    1,113
    
    
    $
    2,715
    
    
    $
    2,454Weighted average number of common shares
outstanding:Basic
    
    
    9,565
    
    
    
    9,167
    
    
    
    9,466
    
    
    
    9,186Effect of dilutive securities
    
    
    221
    
    
    
    104
    
    
    
    165
    
    
    
    101Diluted
    
    
    9,786
    
    
    
    9,271
    
    
    
    9,631
    
    
    
    9,287Basic earnings per common share:Continuing operations
    
    $
    0.08
    
    
    $
    0.12
    
    
    $
    0.29
    
    
    $
    0.27Discontinued operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    $
    0.08
    
    
    $
    0.12
    
    
    $
    0.29
    
    
    $
    0.27Diluted earnings per common share:Continuing operations
    
    $
    0.08
    
    
    $
    0.12
    
    
    $
    0.28
    
    
    $
    0.26Discontinued operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    $
    0.08
    
    
    $
    0.12
    
    
    $
    0.28
    
    
    $
    0.26
 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  Acquisitions
 Neat Solutions: ® ®
  AmountTangible assets:Accounts 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
 Bibsters ® : ® ® ® ®
 ® ® ®
  AmountAmortizable intangible assets:Trademarks
    
    $
    629Patents
    
    
    553Customer relationships
    
    
    328Total amortizable intangible assets
    
    
    1,510Goodwill
    
    
    290Total intangible assets
    
    
    1,800Tangible assets  inventory
    
    
    272Total acquisition cost
    
    $
    2,072
  8




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Note 3  Stock-based Compensation
   Compensation 
Stock Compensation,
 Stock Options:
 Weighted-Average
    
    
    Number of OptionsExercise Price
    
    
    OutstandingOutstanding at March 28, 2010
    
    $
    2.94
    
    
    
    825,832Granted
    
    
    4.23
    
    
    
    110,000Exercised
    
    
    (2.04
    )
    
    
    (166,832
    )Forfeited
    
    
    (3.86
    )
    
    
    (17,000
    )Outstanding at December 26, 2010
    
    
    3.31
    
    
    
    752,000Exercisable at December 26, 2010
    
    
    3.19
    
    
    
    572,000
   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
  9




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##### Table of Contents



Three-month Period
    
    
    Nine-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
    
    
    9
    
    
    
    18
    
    
    
    27
    
    
    
    28
    
    
    
    66
    
    
    
    942011
    
    
    11
    
    
    
    9
    
    
    
    20
    
    
    
    22
    
    
    
    23
    
    
    
    45Total stock option compensation
    
    $
    20
    
    
    $
    27
    
    
    $
    47
    
    
    $
    63
    
    
    $
    127
    
    
    $
    190
  Three-month Period
    
    
    Nine-month PeriodCost of
    
    
    Marketing &
    
    
    
    
    
    
    Cost of
    
    
    Marketing &Products
    
    
    Administrative
    
    
    Total
    
    
    Products
    
    
    Administrative
    
    
    TotalOptions Granted in Fiscal Year
    
    Sold
    
    
    Expenses
    
    
    Expense
    
    
    Sold
    
    
    Expenses
    
    
    Expense2008
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    16
    
    
    $
    41
    
    
    $
    572009
    
    
    11
    
    
    
    33
    
    
    
    44
    
    
    
    37
    
    
    
    111
    
    
    
    1482010
    
    
    9
    
    
    
    20
    
    
    
    29
    
    
    
    13
    
    
    
    31
    
    
    
    44Total stock option compensation
    
    $
    20
    
    
    $
    53
    
    
    $
    73
    
    
    $
    66
    
    
    $
    183
    
    
    $
    249
  Non-vested Stock:
       10




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##### Table of Contents



Three-month Period
    
    
    Nine-month PeriodNon-employee
    
    
    Total
    
    
    
    
    
    
    Non-employee
    
    
    TotalStock Granted in Fiscal Year
    
    Employees
    
    
    Directors
    
    
    Expense
    
    
    Employees
    
    
    Directors
    
    
    Expense2007
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    70
    
    
    $
    
    
    
    $
    702009
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    19
    
    
    
    192010
    
    
    
    
    
    
    6
    
    
    
    6
    
    
    
    
    
    
    
    38
    
    
    
    382011
    
    
    52
    
    
    
    16
    
    
    
    68
    
    
    
    261
    
    
    
    27
    
    
    
    288Total stock grant compensation
    
    $
    52
    
    
    $
    22
    
    
    $
    74
    
    
    $
    331
    
    
    $
    84
    
    
    $
    415
  Three-month Period
    
    
    Nine-month PeriodNon-employee
    
    
    Total
    
    
    
    
    
    
    Non-employee
    
    
    TotalStock Granted in Fiscal Year
    
    Employees
    
    
    Directors
    
    
    Expense
    
    
    Employees
    
    
    Directors
    
    
    Expense2007
    
    $
    42
    
    
    $
    
    
    
    $
    42
    
    
    $
    305
    
    
    $
    
    
    
    $
    3052009
    
    
    
    
    
    
    15
    
    
    
    15
    
    
    
    
    
    
    
    44
    
    
    
    442010
    
    
    
    
    
    
    11
    
    
    
    11
    
    
    
    
    
    
    
    19
    
    
    
    19Total stock grant compensation
    
    $
    42
    
    
    $
    26
    
    
    $
    68
    
    
    $
    305
    
    
    $
    63
    
    
    $
    368
  Note 4  Inventories
  December 26, 2010
    
    
    March 28, 2010Raw Materials
    
    $
    35
    
    
    $
    66Finished Goods
    
    
    19,317
    
    
    
    10,387Total inventory
    
    $
    19,352
    
    
    $
    10,453
 Note 5  Discontinued Operations
   11




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Note 6  Financing Arrangements
 Factoring Agreement:
 Notes Payable and Other Credit Facilities:
 December 26, 2010
    
    
    March 28, 2010Revolving line of credit
    
    $
    5,666
    
    
    $
    1,422Non-interest bearing notes
    
    
    2,000
    
    
    
    4,000Original issue discount
    
    
    (83
    )
    
    
    (232
    )7,583
    
    
    
    5,190Less current maturities
    
    
    1,917
    
    
    
    1,952$
    5,666
    
    
    $
    3,238
  Revolving Line of Credit
  Subordinated Notes
  FiscalYear
    
    Revolver
    
    
    Sub Notes
    
    
    Total2012
    
    $
    
    
    
    $
    2,000
    
    
    $
    2,0002013
    
    
    
    
    
    
    
    
    
    
    2014
    
    
    5,666
    
    
    
    
    
    
    
    5,666Total
    
    $
    5,666
    
    
    $
    2,000
    
    
    $
    7,666
  12




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##### Table of Contents



Note 7  Subsequent Events
  Note 8  Goodwill, Customer Relationships and Other Intangible Assets
 Goodwill:
 ®
 Customer Relationships and Other Intangible Assets:
 Estimated
    
    
    
    
    
    
    Amortization ExpenseCarrying
    
    
    Useful
    
    
    Accumulated
    
    
    Three-month Periods Ended
    
    
    Nine-month Periods EndedAmount
    
    
    Life
    
    
    Amortization
    
    
    December 26, 2010
    
    
    December 27, 2009
    
    
    December 26, 2010
    
    
    December 27, 2009Kimberly Grant Acquisition on December 29, 2006:Tradename
    
    $
    466
    
    
    15 years
    
    
    $
    124
    
    
    $
    7
    
    
    $
    8
    
    
    $
    23
    
    
    $
    24Existing designs
    
    
    36
    
    
    1 year
    
    
    
    36
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Non-compete covenant
    
    
    98
    
    
    15 years
    
    
    
    26
    
    
    
    2
    
    
    
    2
    
    
    
    5
    
    
    
    4Total Kimberly Grant Acquisition
    
    
    600
    
    
    14 years
    *
    
    
    186
    
    
    
    9
    
    
    
    10
    
    
    
    28
    
    
    
    28Springs Baby Products Acquisition on November 5, 2007:Licenses & existing designs
    
    
    1,655
    
    
    2 years
    
    
    
    1,655
    
    
    
    
    
    
    
    69
    
    
    
    
    
    
    
    483Licenses & future designs
    
    
    1,847
    
    
    4 years
    
    
    
    1,462
    
    
    
    115
    
    
    
    115
    
    
    
    346
    
    
    
    346Non-compete covenant
    
    
    115
    
    
    4 years
    
    
    
    91
    
    
    
    7
    
    
    
    7
    
    
    
    22
    
    
    
    21Customer relationships
    
    
    3,781
    
    
    10 years
    
    
    
    1,198
    
    
    
    95
    
    
    
    95
    
    
    
    284
    
    
    
    284Total Springs Baby Acquisition
    
    
    7,398
    
    
    7 years
    *
    
    
    4,406
    
    
    
    217
    
    
    
    286
    
    
    
    652
    
    
    
    1,134Neat Solutions Acquisition on July 2, 2009:Trademarks
    
    
    892
    
    
    15 years
    
    
    
    89
    
    
    
    15
    
    
    
    14
    
    
    
    44
    
    
    
    29Designs
    
    
    33
    
    
    4 years
    
    
    
    13
    
    
    
    2
    
    
    
    2
    
    
    
    7
    
    
    
    4Non-compete covenant
    
    
    241
    
    
    5 years
    
    
    
    72
    
    
    
    12
    
    
    
    12
    
    
    
    36
    
    
    
    24Customer relationships
    
    
    1,302
    
    
    16 years
    
    
    
    122
    
    
    
    20
    
    
    
    20
    
    
    
    61
    
    
    
    40Total Neat Solutions Acquisition
    
    
    2,468
    
    
    14 years
    *
    
    
    296
    
    
    
    49
    
    
    
    48
    
    
    
    148
    
    
    
    97Bibsters® Acquistion on May 27, 2010:Trademarks
    
    
    629
    
    
    15 years
    
    
    
    25
    
    
    
    11
    
    
    
    
    
    
    
    25
    
    
    
    Patents
    
    
    553
    
    
    10 years
    
    
    
    32
    
    
    
    14
    
    
    
    
    
    
    
    32
    
    
    
    Customer relationships
    
    
    328
    
    
    14 years
    
    
    
    14
    
    
    
    6
    
    
    
    
    
    
    
    14
    
    
    
    Total Bibsters® Acquistion
    
    
    1,510
    
    
    13 years
    *
    
    
    71
    
    
    
    31
    
    
    
    
    
    
    
    71
    
    
    
    Internally developed intangible assets
    
    
    136
    
    
    10 years
    
    
    
    34
    
    
    
    3
    
    
    
    2
    
    
    
    8
    
    
    
    6Total other intangible assets
    
    $
    12,112
    
    
    
    
    
    
    $
    4,993
    
    
    $
    309
    
    
    $
    346
    
    
    $
    907
    
    
    $
    1,265
 *
    
    Weighted-Average  13




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##### Table of Contents



ITEM 2.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
        Three-month Periods Ended
    
    
    
    
    
    
    
    
    
    
    Nine-month Periods EndedDecember 26, 2010
    
    
    December 27, 2009
    
    
    Change
    
    
    Change
    
    
    December 26, 2010
    
    
    December 27, 2009
    
    
    Change
    
    
    ChangeNet sales by categoryBedding, blankets and accessories
    
    $
    16,718
    
    
    $
    15,802
    
    
    $
    916
    
    
    
    5.8
    %
    
    $
    46,572
    
    
    $
    46,608
    
    
    $
    (36
    )
    
    
    -0.1
    %Bibs, bath and disposable products
    
    
    5,220
    
    
    
    4,844
    
    
    
    376
    
    
    
    7.8
    %
    
    
    16,244
    
    
    
    13,486
    
    
    
    2,758
    
    
    
    20.5
    %Total net sales
    
    
    21,938
    
    
    
    20,646
    
    
    
    1,292
    
    
    
    6.3
    %
    
    
    62,816
    
    
    
    60,094
    
    
    
    2,722
    
    
    
    4.5
    %Cost of products sold
    
    
    17,531
    
    
    
    16,008
    
    
    
    1,523
    
    
    
    9.5
    %
    
    
    48,463
    
    
    
    46,973
    
    
    
    1,490
    
    
    
    3.2
    %Gross profit
    
    
    4,407
    
    
    
    4,638
    
    
    
    (231
    )
    
    
    -5.0
    %
    
    
    14,353
    
    
    
    13,121
    
    
    
    1,232
    
    
    
    9.4
    %% of net sales
    
    
    20.1
    %
    
    
    22.5
    %
    
    
    
    
    
    
    
    
    
    
    22.8
    %
    
    
    21.8
    %Marketing and administrative expenses
    
    
    3,047
    
    
    
    2,746
    
    
    
    301
    
    
    
    11.0
    %
    
    
    9,581
    
    
    
    8,625
    
    
    
    956
    
    
    
    11.1
    %% of net sales
    
    
    13.9
    %
    
    
    13.3
    %
    
    
    
    
    
    
    
    
    
    
    15.3
    %
    
    
    14.4
    %Interest expense
    
    
    112
    
    
    
    181
    
    
    
    (69
    )
    
    
    -38.1
    %
    
    
    334
    
    
    
    581
    
    
    
    (247
    )
    
    
    -42.5
    %Other income
    
    
    (8
    )
    
    
    9
    
    
    
    (17
    )
    
    
    -188.9
    %
    
    
    1
    
    
    
    (30
    )
    
    
    31
    
    
    
    -103.3
    %Income tax expense
    
    
    460
    
    
    
    598
    
    
    
    (138
    )
    
    
    -23.1
    %
    
    
    1,711
    
    
    
    1,409
    
    
    
    302
    
    
    
    21.4
    %Income from continuing operations after taxes
    
    
    780
    
    
    
    1,122
    
    
    
    (342
    )
    
    
    -30.5
    %
    
    
    2,728
    
    
    
    2,476
    
    
    
    252
    
    
    
    10.2
    %Discontinued operations  net of taxes
    
    
    (5
    )
    
    
    (9
    )
    
    
    4
    
    
    
    -44.4
    %
    
    
    (13
    )
    
    
    (22
    )
    
    
    9
    
    
    
    -40.9
    %Net income
    
    
    775
    
    
    
    1,113
    
    
    
    (338
    )
    
    
    -30.4
    %
    
    
    2,715
    
    
    
    2,454
    
    
    
    261
    
    
    
    10.6
    %% of net sales
    
    
    3.5
    %
    
    
    5.4
    %
    
    
    
    
    
    
    
    
    
    
    4.3
    %
    
    
    4.1
    %
 Net Sales:
   14




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##### Table of Contents



®
 ®
 Gross Profit:
 ®
 Marketing and Administrative Expenses:
 Interest Expense:
 Income Tax Expense:
    ®
  15




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##### Table of Contents



®
      16




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##### Table of Contents



ITEM 4.
    
    CONTROLS AND PROCEDURES
 Rules 13a-15
  
  
 ITEM 1.
    
    LEGAL PROCEEDINGS
  
 ITEM 1A.
    
    RISK FACTORS
 Form 10-K
 
 ITEM 2.
    
    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
   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
    
    
    ProgramsSeptember 27, 2010 through October 31,
2010
    
    
    12,668
    
    
    $
    5.41
    
    
    
    0
    
    
    $
    0November 1, 2010 through November 28,
2010
    
    
    6,478
    
    
    $
    5.32
    
    
    
    0
    
    
    $
    0November 29, 2010 through December 26,
2010
    
    
    0
    
    
    $
    0
    
    
    
    0
    
    
    $
    0Total
    
    
    19,146
    
    
    $
    5.38
    
    
    
    0
    
    
    $
    0
 (1)
    
    The shares purchased from September 27, 2010 through December 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.  17




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##### Table of Contents



ITEM 3.
    
    DEFAULTS UPON SENIOR SECURITIES
  
 ITEM 4.
    
    (REMOVED AND RESERVED)
 
 ITEM 5.
    
    OTHER INFORMATION
  
 ITEM 6.
    
    EXHIBITS
  ExhibitNo.
    
    
    Exhibit31.1
    
    
    Rule 13a-14(a)/15d-14(a) Certification by the Companys Chief Executive Officer (1)31.2
    
    
    Rule 13a-14(a)/15d-14(a) Certification by the Companys Chief Financial Officer (1)32.1
    
    
    Section 1350 Certification by the Companys Chief Executive Officer (1)32.2
    
    
    Section 1350 Certification by the Companys Chief Financial Officer (1)
 (1)
    
    Filed herewith. 
   CROWN CRAFTS, INC.Date:  February 9, 2011
    /s/ Olivia W. ElliottOLIVIA W. ELLIOTTChief Financial Officer
(Principal Financial
Officer  and Principal
Accounting Officer)  18




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##### Table of Contents



Index to Exhibits
 ExhibitNo.
    
    
    Exhibit31.1
    
    
    Rule 13a-14(a)/15d-14(a) Certification by the Companys Chief Executive Officer (1)31.2
    
    
    Rule 13a-14(a)/15d-14(a) Certification by the Companys Chief Financial Officer (1)32.1
    
    
    Section 1350 Certification by the Companys Chief Executive Officer (1)32.2
    
    
    Section 1350 Certification by the Companys Chief Financial Officer (1)
 (1)
    
    Filed herewith.  19