Culp delivers good performance in FY'12

Culp Inc. reported financial and operating results for the fourth quarter and fiscal year ended April 29, 2012.

Fiscal 2012 fourth quarter highlights:

• Net sales were $75.7 million, up 25.4 percent, with mattress fabric sales up 23.3 percent and upholstery fabric sales up 28.4 percent. This is the company’s highest quarterly sales level in eight years.
• Pre-tax income increased 17 percent to $5.5 million.
• Adjusted net income was $4.5 million, or $0.35 per diluted share, for the current quarter, compared with $3.9 million, or $0.30 per diluted share, for the prior year period. Net income was $3.4 million, or $0.27 per diluted share, compared with net income of $6.0 million, or $0.45 per diluted share, in the prior year.
• The company announced today the initiation of a quarterly cash dividend of $0.03 per share, commencing in the first quarter of fiscal 2013, implying an annual cash dividend of $0.12 per share.
• The company also announced today the authorization of additional share repurchases, increasing authorized repurchases up to $5.0 million.

Fiscal 2012 full year highlights:

• Net sales were $254.4 million, up 17.4 percent, with mattress fabric sales up 18.9 percent and upholstery fabric sales up 15.4 percent.
• Pre-tax income decreased 6.0 percent to $14.2 million.
• Adjusted net income was $11.6 million, or $0.90 per diluted share, in fiscal 2012 compared with $12.6 million, or $0.96 per diluted share, in fiscal 2011. Net income was $13.3 million, or $1.03 per diluted share, compared with $16.2 million, or $1.22 per diluted share, in the prior year period.
• The company’s financial position remained strong during fiscal 2012 with a total cash position of $31.0 million at year end and total debt of $10.0 million.
• The company repurchased 624,459, or 4.7 percent of its outstanding shares, for $5.4 million.
• The projection for the first quarter of fiscal 2013 is for overall sales to increase approximately 6 to 11 percent. Pre-tax income is expected to be in the range of $3.6 million to $4.4 million. Pre-tax income for the first quarter of fiscal 2012 was $3.0 million.

Quarterly Dividend and Share Repurchase Program

The company announced that its Board of Directors has approved the payment of a quarterly cash dividend of $.03 per share, to be paid on or about July 16, 2012, to shareholders of record as of the close of business on July 2, 2012.

The company anticipates paying a cash dividend each quarter, with expected payment dates in October, January, April and July. The announcement today implies an annual cash dividend of $0.12 per share.

Future dividend payments are subject to Board approval and may be adjusted at theBoard’s discretion as business needs or market conditions change.