Culp, Inc. (NYSE: CULP)

Culp, Inc. (NYSE: CULP) declared newly its fiscal and operating results for the 2nd-quarter finished November 3, 2k19.

Fiscal 2k20 2nd-Quarter Highlights

  • Net sales were $72.60M, down 5.70 percent over the previous year, with mattress fabrics sales down 4.70 percent, upholstery fabrics sales down 3.20 percent, and home accessories sales down 31.50 percent.
  • Pre-tax income was $4.10M, compared with $4.30M for the previous-year duration. The results for the 2nd-quarter of last year were $3.70M excluding restructuring and related charges and credits and other non-recurring items resulting in a net benefit of approximately $543,000.00. (See reconciliation table on page 8).
  • Net income attributable to Culp, Inc. shareholders was $2.30M, or $0.190 for each diluted share, compared with net income of $2.90M, or $0.230 for each diluted share, in the previous-year duration. The results for the 2nd-quarter of fiscal 2k19 include the restructuring and related charges and credits and other non-recurring items noted above.
  • The company’s financial position reflected total cash and investments of $47.20M and outstanding borrowings totalling $925,000.00 as of November 3, 2k19, for a net cash position of $46.30M.
  • The company announced a 5.00-percent incline in its quarterly cash dividend to an annualized $0.420 for each share, commencing in the 3rd-quarter of fiscal 2k20. Notably, this is the company’s 7th-straight year of increasing its annual dividend.
  • Cash flow from operations and free cash flow for the 1st-6.00 months of fiscal 2k20 were $8.20M and $5.60M, respectively, compared with cash flow from operations and free cash flow of $6.60M and $3.60M, respectively, for the previous-year duration.

 

Financial Outlook

  • The projection for the 3rd-quarter of fiscal 2k20 is for overall sales to be comparable to a similar duration last year. Pre-tax income for the 3rd-quarter of fiscal 2k20 is expected to be in the range of $3.20M to $3.80M. Pre-tax income for the 3rd-quarter of fiscal 2k19 was $4.30M, which included a net charge of approximately $769,000.00 in restructuring and related charges and credits and other non-recurring items. Excluding these charges, pre-tax income for the 3rd-quarter of fiscal 2k19 was $5.00M.
  • The company’s performance for the 4th-quarter of fiscal 2k20 is currently expected to be significantly better than the results achieved in the 4th-quarter of fiscal 2k19, and as a result, the company’s performance for the 2nd-half of fiscal 2k20 is currently expected to be better than the results achieved throughout the 2nd-half of fiscal 2k19.
  • Free cash flow for fiscal 2k20 is expected to be comparable to the previous year’s results, even with continued uncertainty in the geopolitical environment.

2nd-Quarter Fiscal 2k20 Financial Results

For the 2nd-quarter finished November 3, 2k19, net sales were $72.60M, compared with $77.00M a year ago. On a pre-tax basis, the company reported an income of $4.10M, compared with a pre-tax income of $4.30M for the previous-year duration. The financial results for the 2nd-quarter of fiscal 2k19 included a net benefit of approximately $543,000.00 in restructuring and related charges and credits and other non-recurring items, due mostly to the closure of the company’s Anderson, South Carolina, production facility. Excluding this net credit, pre-tax income for the 2nd-quarter of last year was $3.70M.

The company reported net income attributable to Culp, Inc. shareholders of $2.30M, or $0.190 for each diluted share, for the 2nd-quarter of fiscal 2k20, compared with net income of $2.90M, or $0.230 for each diluted share, for the 2nd-quarter of fiscal 2k19.

Mattress Fabrics Segment

Mattress fabrics sales for the 2nd-quarter were $35.50M, down 4.70 percent compared with $37.20M for the 2nd-quarter of fiscal 2k19.