Craftmade International Announces Net Sales and Earnings Results for Its Fiscal 2010 First Quarter

Craftmade International Announces Net Sales and Earnings Results for Its
Fiscal 2010 First Quarter

COPPELL, Texas, Nov. 12 /PRNewswire-FirstCall/ -- Craftmade International,
Inc. (Nasdaq: CRFT) today reported the following results for its fiscal 2010
first quarter ended September 30, 2009:

First Quarter 2010 Consolidated Results

Net loss for the first quarter was $595,000 as compared to a net loss of
$129,000 for the first quarter of 2009. On a fully diluted basis, net loss
per share was $0.10 for the 2010 first quarter, compared to a net loss of
$0.02 in the year-ago quarter. Weighted average diluted shares outstanding
remained at 5,705,000 and did not change on a quarter-over-quarter basis.

Net sales for the quarter decreased $9,117,000, or 30%, to $21,048,000,
compared to $30,165,000 reported in the same quarterly period last year. This
decrease was due to reduced sales in both Specialty and Mass segments, as a
result of the extreme decline in the housing market, dramatic overall economic
downturn experienced in the last year and the slower seasonal nature of Mass
outdoor furniture sales.

"As we have previously stated, our financial results continue to be largely
impacted by the negative effects of the weak housing market and overall
economic decline," commented J. Marcus Scrudder, Craftmade's Chief Executive
Officer. "Management has taken critical steps in aligning its operational
structure within this challenging market environment while positioning the
company for sustained long-term growth and return to profitability. To this
end, we recently announced the Board's decision to voluntarily delist the
Company's common stock from the NASDAQ Global Market and file for the
subsequent deregistration of its common stock with the SEC. The company will
realize significant annual savings by alleviating the costly financial burden
of complying with the Sarbanes-Oxley Act of 2002. In addition, considerable
management focus can be redirected toward executing Craftmade's long-term
growth strategy and enhancing its operating performance.

"While we have made this fundamental change to our public reporting status and
common stock listing, our shareholder-friendly philosophy has not changed,"
continued Mr. Scrudder. "We are committed to maintaining a high degree of
public disclosure and transparency through quarterly financial statements and
information pertaining to material events, such as trades by insiders, through
the OTCQX Web site. We will also continue to hold annual meetings of
stockholders."

Gross Profit; Selling, General and Administrative ("SG&A") Expense and
Interest Expense

Gross profit of the Company as a percentage of net sales decreased slightly to
27.6% for the quarter ended September 30, 2009, compared to 28.1%, primarily
due to a decrease in margins in the Specialty segment, which was partially
offset by increased margins in Mass, driven by margin improvements in
lighting.

Total SG&A expenses of the Company decreased $2,021,000 to $5,876,000, or
27.9%, of net sales for the first quarter ended September 30, 2009, compared
to $7,897,000, or 26.2%, of net sales for the same period last year. This 26%
decrease in expenses was due to significant cost cutting efforts across all
categories, including savings in salaries and wages and contract labor related
to headcount reductions, lower advertising spending and reductions in travel.
Additionally, the Company also experienced lower commissions due to reduced
overall sales versus the prior quarterly period. Management expects to see
continued significant savings in SG&A expenses versus last year, due to its
ongoing cost cutting efforts and additional savings related to its change in
reporting and common stock listing status.

Net interest expense decreased $16,000 to $343,000 for the quarter ended
September 30, 2009, compared to $359,000 for the year-ago quarter.

Noncontrolling interest (formerly referred to as minority interest) expense
increased $57,000 to $218,000 for the quarter ended September 30, 2009, from
$161,000 for the same period in the previous fiscal year. The increase in
minority interest resulted from higher profits at Design Trends as a result of
the improved margins.

First Quarter 2010 Segment Results

Net sales of the Specialty segment decreased $6,077,000, or 30%, to
$14,394,000, compared to $20,471,000 reported in the 2008 quarterly period.
Sales of fans, lighting-related products and outdoor furniture continue to be
affected by the extremely weak overall housing market, a difficult credit
environment and reduced consumer spending. To mitigate the negative impact to
sales, management continues to focus on introducing new products and expanding
accounts. Management also believes that long-term growth will be favorably
impacted by additional product offerings through enhanced product development
efforts as well as cross-selling outdoor furniture products to lighting
showrooms and outdoor lighting and ceiling fans to patio dealers, while also
focusing efforts on the hospitality markets.

Net sales of the Mass segment decreased $3,040,000, or 31%, to $6,654,000 for
the quarter ended September 30, 2009, compared to $9,694,000 reported in the
year-ago quarterly period. Sales of lighting products and fan and lamp
accessories in the Mass segment are primarily from the Company's TSI and
Design Trends subsidiaries, both of which experienced declines during the
quarter. The decline in lighting net sales was largely due to reduced retail
sales of the mix and match portable lamp program.

Woodard sales are primarily composed of direct import sales to its various
mass merchant customers. Most of its products are shipped directly from
China. Additionally, due to the seasonal nature of outdoor furniture sales,
most sales to mass merchants occur from January to April each year.

"As we continue to execute our strategic long-term growth plans, mitigate the
impact of the unprecedented housing decline and invest in innovative product
offerings, we believe we are taking the necessary steps to position the
Company on solid financial footing when the housing market normalizes and the
economic recovery takes place, although the timing of a recovery remains
highly uncertain," continued Mr. Scrudder. "Our efforts will continue to
focus on cost savings while also introducing new products and expanding
customer accounts, leveraging cross-selling initiatives, protecting our
competitive advantages and returning the Company to profitability."

Conference Call

A conference call to discuss the Company's results for the 2010 first quarter
ended September 30, 2009 is scheduled for November 12 at 10:00 a.m. Central
Time (11:00 a.m. Eastern Time). Interested participants should dial
800-860-2442 a few minutes before the start time and reference the Craftmade
International event. Additionally, a replay of the earnings conference call
will be available after the completion of the call through November 19, 2009,
and can be accessed by dialing 877-344-7529 and reference conference number
435694. A webcast of the conference call can also be accessed by visiting the
Company's website at www.craftmade.com.

Founded in 1985, Craftmade International, Inc. is engaged in the design,
manufacturing, distribution and marketing of a broad range of home decor
products, including proprietary ceiling fans, lighting products and outdoor
furniture. The Company distributes its premium products through a network of
independent showrooms and mass retail customers through its headquarters and
distribution facility in Coppell, Texas and manufacturing plant in Owosso,
Michigan.

More information about Craftmade International, Inc. can be found at
www.craftmade.com.

Various statements in this Press Release or incorporated by reference herein,
in future filings with the SEC, in press releases, and in oral statements made
by or with the approval of authorized personnel constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are based on current expectations and are
indicated by words or phrases such as "may," "will," "should," "could,"
"might," "expects," "plans," "anticipates," "believes," "estimates,"
"projects," "predicts," "forecasts," "intends," "potential," "continue," and
similar words or phrases and involve known and unknown risks, uncertainties
and other factors which may cause actual results, performance or achievements
to be materially different from the future results, performance or
achievements expressed in or implied by such forward-looking statements.
These forward-looking statements include statements or predictions regarding
among other items: revenues and profits; gross margin; customer concentration;
customer buying patterns; sales and marketing expenses; general and
administrative expenses; pricing and cost reduction activities; income tax
provision and effective tax rate; realization of deferred tax assets;
liquidity and sufficiency of existing cash, cash equivalents, and investments
for near-term requirements; purchase commitments; product development and
transitions; competition and competing technology; outcomes of pending or
threatened litigation; and financial condition and results of operations as a
result of recent accounting pronouncements. These forward-looking statements
are based largely on expectations and judgments and are subject to a number of
risks and uncertainties, many of which are beyond our control. Significant
factors that cause our actual results to differ materially from our
expectations are described in our Form 10-K under the heading of "Risk
Factors." We undertake no obligation to publicly update or revise these Risk
Factors or any forward-looking statements, whether as a result of new
information, future events or otherwise.

CRAFTMADE INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)

Three Months Ended
------------------
September September
30, 2009 30, 2008
--------- ---------
Net sales $21,048 $30,165
Cost of goods sold (15,231) (21,695)
------- -------
Gross profit 5,817 8,470
------- -------
Gross profit as a percentage of net sales 27.6% 28.1%

Selling, general and administrative expenses (5,876) (7,897)
Depreciation and amortization (263) (238)
------- -------
Total operating expenses (6,139) (8,135)
------- -------
Income (loss) from operations (322) 335

Interest expense, net (343) (359)
Other income - 5
------- -------
Loss before income taxes (665) (19)
Income tax benefit 288 51
------- -------
Net income (loss) (377) 32

Less: Net income attributable to noncontrolling
interest 218 161
------- -------
Net loss attributable to Craftmade International $(595) $(129)
======= =======
Weighted average common shares outstanding:
Basic 5,705 5,705
Diluted 5,705 5,705

Basic loss per common share $(0.10) $(0.02)
======= =======
Diluted loss per common share $(0.10) $(0.02)
======= =======

CRAFTMADE INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)

September 30, June 30,
2009 2009
---- ----
ASSETS (Unaudited)
Current assets
Cash $126 $384
Accounts receivable, net 21,326 25,290
Inventories, net 20,078 20,563
Income taxes receivable 2,052 1,780
Deferred income taxes 1,392 1,367
Prepaid expenses and other current
assets 2,569 2,443
----- -----
Total current assets 47,543 51,827
------ ------

Property and equipment, net 10,955 11,141
Goodwill 15,249 14,947
Other intangibles, net 1,050 1,097
Other assets 2,290 1,856
----- -----
Total non-current assets 29,544 29,041
------ ------

Total assets $77,087 $80,868
======= =======

LIABILITIES, MINORITY INTEREST
AND STOCKHOLDERS' EQUITY
Current liabilities
Book overdrafts $191 $8
Accounts payable 7,273 7,231
Other accrued expenses 1,732 2,422
Current portion of long-term
obligations 826 542
---- ----
Total current liabilities 10,022 10,203
------ ------

Non-current liabilities
Long-term obligations 26,638 29,886
Deferred income taxes 1,127 1,122
----- -----
Total non-current liabilities 27,765 31,008
------ ------

Total liabilities 37,787 41,211
------ ------

Stockholders' equity
Craftmade International
stockholders' equity:
Common stock, $0.01 par value,
15,000,000 shares authorized;
10,204,420 shares issued 102 102
Additional paid-in capital 22,353 22,335
Retained earnings 51,220 51,814
Less: treasury stock, 4,499,920
common shares at cost (38,126) (38,126)
------- -------
Total Craftmade International
stockholders' equity 35,549 36,125
------ ------
Noncontrolling interest 3,751 3,532
------ ------
Total equity 39,300 39,657
------ ------
Total liabilities and stockholders'
equity $77,087 $80,868
======= =======

SOURCE Craftmade International, Inc.

C. Brett Burford, Chief Financial Officer of Craftmade International, Inc.,
+1-972-393-3800, investorrelations@craftmade.com; or Hala Elsherbini of
Halliburton Investor Relations, +1-972-458-8000, hala@HalliburtonIR.com, for
Craftmade International, Inc.