Business
Culp Announces Results for First Quarter Fiscal 2024, With Better-than-Expected Operating Improvement and Continued Solid Financial Position
HIGH POINT, N.C.--(BUSINESS WIRE)-- Culp, Inc. (NYSE: CULP) (together with its consolidated subsidiaries, “CULP”) today reported financial and operating
About this update from Culp, Inc.
[{"type":"text","content":" HIGH POINT, N.C.--(BUSINESS WIRE)--\nCulp, Inc. (NYSE: CULP) (together with its consolidated subsidiaries, “CULP”) today reported financial and operating results for the first quarter ended July 30, 2023.\n\n\nFiscal 2024 First Quarter Financial Summary\n\n\n\nNet sales for the first quarter of fiscal 2024 were $56.7 million, down 9.5 percent compared with the prior-year period, with mattress fabrics sales flat, down 0.5 percent (a solid performance in the face of industry softness), and upholstery fabrics sales down 17.4 percent compared to a strong quarter the prior year (fueled by a lift in sales following pandemic-related shutdowns in China).\n\n\n\nLoss from operations was $(3.1) million, which included $517,000 in mostly non-cash restructuring and related charges associated with the discontinued production of cut and sewn upholstery kits in Haiti during the quarter.\n\n\n\nExcluding this $517,000, adjusted loss from operations for the quarter was $(2.6) million, a better-than-expected improvement as compared with loss from operations of $(4.7) million for the prior-year period and loss from operations of $(4.0) million for the fourth quarter of fiscal 2023. (See reconciliation table at the back of this press release.)\n\n\n\nNet loss was $(3.3) million, or $(0.27) per diluted share, compared with a net loss of $(5.7) million, or $(0.47) per diluted share, for the prior-year period. Net loss for the quarter included the $517,000 in restructuring and related charges noted above. The effective tax rate for the first quarter was negative (26.5) percent, reflecting the company’s mix of taxable income between its U.S. and foreign jurisdictions during the period.\n\n\n\nThe company maintained a solid balance sheet, with total cash of $16.8 million and no outstanding borrowings as of July 30, 2023. Total liquidity as of July 30, 2023, was $42.3 million (consisting of $16.8 million in cash and $25.5 million in borrowing availability under the company's domestic credit facility).\n\n\n\nAdjusted EBITDA for the period was close to break even at negative $(416,000), as compared to adjusted EBITDA of negative $(2.7) million for the prior-year period.\n\n\n\nCEO Commentary\n\n\nCommenting on the results, Iv Culp, president and chief executive officer of Culp, Inc., said, “We are pleased to report better than expected improvement in our...