Culp Q3 FY14 net sales soar 13.6%

26 Feb '14

3 min read

Culp, Inc. reported financial and operating results for the third quarter and nine months ended January 26, 2014.

Fiscal 2014 Third Quarter Highlights:

Net sales were $72.4 million, up 13.6 percent, with mattress fabric sales up 8.5 percent and upholstery fabric sales up 20.1 percent, as compared with the same quarter last year. -This reflects the highest sales level for the third quarter in ten years.

Pre-tax income was $4.6 million, compared with $4.5 million in the third quarter of fiscal 2013. The $4.6 million reflects the highest pre-tax income level for the third quarter in over 15 years.

Adjusted net income (non-GAAP) was $3.9 million, or $0.31 per diluted share, for the current quarter, compared with $3.9 million, or $0.32 per diluted share, for the prior year period.

Net income (GAAP) was $8.4 million, or $0.68 per diluted share, compared with net income of $2.8 million, or $0.23 per diluted share, in the prior year period. Net income for the third quarter of fiscal 2014 included an income tax benefit $3.8 million, while net income for the third quarter of fiscal 2013 included an income tax expense of $1.7 million.

The company’s financial position remained strong with cash and cash equivalents and short term investments of $30.4 million and total debt of $5.0 million as of January 26, 2014.

The company paid a regular quarterly cash dividend of $0.05 per share, which compares with a $0.03 per share regular cash dividend in the prior year period.

Fiscal 2014 Year to Date Highlights

Year to date sales were $213.1 million, up 7.4 percent from the same period a year ago, with mattress fabrics segment sales up 3.4 percent and upholstery fabrics segment sales up 12.7 percent over the same period a year ago.

Pre-tax income was $14.9 million, up from $14.4 million for the same period last year.

Adjusted net income (non-GAAP) was $12.6 million, or $1.02 per diluted share, compared with $12.3 million, or $0.99 per diluted share, for the prior year period.

Net income (GAAP) was $14.7 million, or $1.19 per diluted share, compared with net income of $14.6 million, or $1.17 per diluted share, for the same period a year ago. Year to date net income for both periods was affected by substantial income tax benefits booked in the third quarter of fiscal 2014 and the second quarter of fiscal 2013.

Consolidated return on capital was 27 percent, compared with 28 percent for the same period a year ago.

Free cash flow was $8.0 million, compared with $8.5 million for the same period a year ago. The company expects free cash flow for fiscal 2014 to be comparable to the $13.1 million achieved in fiscal 2013.

Click here to view full results.

Culp

More Culp Inc News... More Apparel/Garments News - United States Of America...