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Mattress fabrics biz achieves continued profitability at Culp
24 Jun '09
5 min read
Overview:
For the three months ended May 3, 2009, net sales were $47.8 million, compared with $64.0 million a year ago. The company reported net income of $1.7 million, or $0.13 per diluted share, for the fourth quarter of fiscal 2009, compared with net income of $2.1 million, or $0.16 per diluted share, for the fourth quarter of fiscal 2008. On a pre-tax basis, the company reported income of $2.2 million compared with pre-tax income of $1.4 million for the fourth quarter of fiscal 2008.
The pre-tax results for the fourth quarters of fiscal 2009 and 2008 included restructuring and related charges in the upholstery fabrics segment of $48,000 and $633,000, respectively. Excluding these charges in both periods, pre-tax income for the fourth quarter of fiscal 2009 was $2.3 million compared with $2.1 million in the fourth quarter of fiscal 2008.
For the fiscal year ended May 3, 2009, the company reported net sales of $203.9 million compared with $254.0 million for the same period a year ago. Net loss for fiscal 2009 was $38.8 million, or $3.07 per diluted share, compared with net income of $5.4 million, or $0.42 per diluted share, for fiscal 2008. This net loss for fiscal 2009 included a $27.2 million non-cash charge for the establishment of a valuation allowance against substantially all of the company's net deferred tax assets. On a pre-tax basis, the company reported a loss of $6.9 million compared with pre-tax income of $4.8 million in fiscal 2008.
The pre-tax results for fiscal 2009 include restructuring and related charges in the upholstery fabrics segment of $13.1 million, of which $11.5 million related to non-cash charges and $1.6 million related to cash charges. The pre-tax results for fiscal 2008 include restructuring and related charges in the upholstery fabrics segment of $2.9 million, of which $1.5 million related to non-cash charges and $1.4 million related to cash charges. Excluding these charges in both periods, pre-tax income for fiscal 2009 was $6.2 million, compared with pre-tax income of $7.8 million for fiscal 2008.
Commenting on the results, Frank Saxon, president and chief executive officer of Culp, Inc., said, “Our fourth quarter performance reflects excellent progress and consistent execution through what has been an extremely challenging business environment. In spite of a decline in sales, both our mattress fabrics and upholstery fabrics businesses showed improved margins, as we continued to realize the incremental benefits of a leaner and more agile operating platform.
At the same time, we have been diligent in our efforts to carefully manage our working capital, generate cash and reduce our debt substantially through this unprecedented economic downturn. As a result, we have strengthened our financial position considerably, which is an increasingly important competitive advantage in today's market.
We have also continued to make important investments in our businesses during the year with a strategic acquisition and major capital expenditures in our mattress fabrics segment, along with product and marketing initiatives in both segments. Most importantly, Culp continues to represent a strong and stable supplier for our customers.”
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For the three months ended May 3, 2009, net sales were $47.8 million, compared with $64.0 million a year ago. The company reported net income of $1.7 million, or $0.13 per diluted share, for the fourth quarter of fiscal 2009, compared with net income of $2.1 million, or $0.16 per diluted share, for the fourth quarter of fiscal 2008. On a pre-tax basis, the company reported income of $2.2 million compared with pre-tax income of $1.4 million for the fourth quarter of fiscal 2008.
The pre-tax results for the fourth quarters of fiscal 2009 and 2008 included restructuring and related charges in the upholstery fabrics segment of $48,000 and $633,000, respectively. Excluding these charges in both periods, pre-tax income for the fourth quarter of fiscal 2009 was $2.3 million compared with $2.1 million in the fourth quarter of fiscal 2008.
For the fiscal year ended May 3, 2009, the company reported net sales of $203.9 million compared with $254.0 million for the same period a year ago. Net loss for fiscal 2009 was $38.8 million, or $3.07 per diluted share, compared with net income of $5.4 million, or $0.42 per diluted share, for fiscal 2008. This net loss for fiscal 2009 included a $27.2 million non-cash charge for the establishment of a valuation allowance against substantially all of the company's net deferred tax assets. On a pre-tax basis, the company reported a loss of $6.9 million compared with pre-tax income of $4.8 million in fiscal 2008.
The pre-tax results for fiscal 2009 include restructuring and related charges in the upholstery fabrics segment of $13.1 million, of which $11.5 million related to non-cash charges and $1.6 million related to cash charges. The pre-tax results for fiscal 2008 include restructuring and related charges in the upholstery fabrics segment of $2.9 million, of which $1.5 million related to non-cash charges and $1.4 million related to cash charges. Excluding these charges in both periods, pre-tax income for fiscal 2009 was $6.2 million, compared with pre-tax income of $7.8 million for fiscal 2008.
Commenting on the results, Frank Saxon, president and chief executive officer of Culp, Inc., said, “Our fourth quarter performance reflects excellent progress and consistent execution through what has been an extremely challenging business environment. In spite of a decline in sales, both our mattress fabrics and upholstery fabrics businesses showed improved margins, as we continued to realize the incremental benefits of a leaner and more agile operating platform.
At the same time, we have been diligent in our efforts to carefully manage our working capital, generate cash and reduce our debt substantially through this unprecedented economic downturn. As a result, we have strengthened our financial position considerably, which is an increasingly important competitive advantage in today's market.
We have also continued to make important investments in our businesses during the year with a strategic acquisition and major capital expenditures in our mattress fabrics segment, along with product and marketing initiatives in both segments. Most importantly, Culp continues to represent a strong and stable supplier for our customers.”
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