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Home textiles company Culp Inc turns profitable
19 Jun '08
5 min read
For the fiscal year ended April 27, 2008, the company reported net sales of $254.0 million compared with $250.5 million for the same period a year ago. Net income for fiscal 2008 was $5.4 million, or $0.42 per diluted share, compared with a net loss of $1.3 million, or $0.11 per diluted share, for fiscal 2007.
Excluding restructuring and related charges of $1.9 million, after taxes, net income for fiscal 2008 was $7.3 million, or $0.57 per diluted share. Excluding restructuring and related charges of $5.2 million, after taxes, net income for fiscal 2007 was $3.8 million, or $0.32 per diluted share.
Commenting on the results, Frank Saxon, president and chief executive officer of Culp, Inc., said, "We are pleased with our performance for the fourth quarter and year considering the current challenges we are facing. The uncertain economy, housing crisis and high energy costs have continued to influence consumer demand for furniture, and, to a lesser extent, bedding products.
In spite of this environment, fiscal 2008 was an outstanding year for Culp, both in terms of our financial performance and the improvement in our competitive position. For the year, overall sales, profitability and cash flow were up from fiscal 2007, and we are pleased with the progress we have made in our operations.
Today, Culp is a much stronger company than a year ago with respect to our value proposition to customers and our ability, both operationally and financially, to take advantage of opportunities in the current competitive landscape. We believe the business models in our businesses, mattress fabrics and upholstery fabrics, along with our improved financial position, are providing increasing value and stability to our customers, especially in light of the challenges facing many industry participants and the highly uncertain outlook."
Mattress Fabrics Segment:
Mattress fabric sales for the fourth quarter were $34.6 million, compared with $38.1 million for the fourth quarter of fiscal 2007. On a unit volume basis, total yards sold decreased by 11 percent compared with the fourth quarter of fiscal 2007.
The average selling price of $2.50 per yard for the fourth quarter of fiscal 2008 was 2.3 percent higher than the same period a year ago, reflecting a shift in product mix toward more knitted and specialty fabrics. While operating income of $3.9 million for this segment was the same as a year ago, operating income margin improved to 11.1 percent of sales, compared with 10.3 percent of sales, for the prior-year period.
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Excluding restructuring and related charges of $1.9 million, after taxes, net income for fiscal 2008 was $7.3 million, or $0.57 per diluted share. Excluding restructuring and related charges of $5.2 million, after taxes, net income for fiscal 2007 was $3.8 million, or $0.32 per diluted share.
Commenting on the results, Frank Saxon, president and chief executive officer of Culp, Inc., said, "We are pleased with our performance for the fourth quarter and year considering the current challenges we are facing. The uncertain economy, housing crisis and high energy costs have continued to influence consumer demand for furniture, and, to a lesser extent, bedding products.
In spite of this environment, fiscal 2008 was an outstanding year for Culp, both in terms of our financial performance and the improvement in our competitive position. For the year, overall sales, profitability and cash flow were up from fiscal 2007, and we are pleased with the progress we have made in our operations.
Today, Culp is a much stronger company than a year ago with respect to our value proposition to customers and our ability, both operationally and financially, to take advantage of opportunities in the current competitive landscape. We believe the business models in our businesses, mattress fabrics and upholstery fabrics, along with our improved financial position, are providing increasing value and stability to our customers, especially in light of the challenges facing many industry participants and the highly uncertain outlook."
Mattress Fabrics Segment:
Mattress fabric sales for the fourth quarter were $34.6 million, compared with $38.1 million for the fourth quarter of fiscal 2007. On a unit volume basis, total yards sold decreased by 11 percent compared with the fourth quarter of fiscal 2007.
The average selling price of $2.50 per yard for the fourth quarter of fiscal 2008 was 2.3 percent higher than the same period a year ago, reflecting a shift in product mix toward more knitted and specialty fabrics. While operating income of $3.9 million for this segment was the same as a year ago, operating income margin improved to 11.1 percent of sales, compared with 10.3 percent of sales, for the prior-year period.
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