Business
Culp Announces Results for Second Quarter Fiscal 2020
Board of Directors Authorizes Five Percent Increase in Quarterly Cash Dividend HIGH POINT, N.C.--(BUSINESS WIRE)-- Culp, Inc. (NYSE: CULP) today reported
About this update from Culp, Inc.
[{"type":"text","content":"\nBoard of Directors Authorizes Five Percent Increase in Quarterly Cash Dividend \n\n HIGH POINT, N.C.--(BUSINESS WIRE)--\nCulp, Inc. (NYSE: CULP) today reported financial and operating results for the second quarter ended November 3, 2019.\n\n\nFiscal 2020 Second Quarter Highlights\n\n\n\nNet sales were $72.6 million, down 5.7 percent over the prior year, with mattress fabrics sales down 4.7 percent, upholstery fabrics sales down 3.2 percent, and home accessories sales down 31.5 percent.\n\n\n\n\nPre-tax income was $4.1 million, compared with $4.3 million for the prior-year period. The results for the second quarter of last year were $3.7 million excluding restructuring and related charges and credits and other non-recurring items resulting in a net benefit of approximately $543,000. (See reconciliation table on page 8).\n\n\n\n\nNet income attributable to Culp, Inc. shareholders was $2.3 million, or $0.19 per diluted share, compared with net income of $2.9 million, or $0.23 per diluted share, in the prior-year period. The results for the second quarter of fiscal 2019 include the restructuring and related charges and credits and other non-recurring items noted above.\n\n\n\n\nThe company’s financial position reflected total cash and investments of $47.2 million and outstanding borrowings totaling $925,000 as of November 3, 2019, for a net cash position of $46.3 million. (See summary of cash and investments table on page 7).\n\n\n\n\nThe company announced a five percent increase in its quarterly cash dividend to an annualized $0.42 per share, commencing in the third quarter of fiscal 2020. Notably, this is the company’s seventh straight year of increasing its annual dividend.\n\n\n\n\nCash flow from operations and free cash flow for the first six months of fiscal 2020 were $8.2 million and $5.6 million, respectively, compared with cash flow from operations and free cash flow of $6.6 million and $3.6 million, respectively, for the prior-year period. (See reconciliation table on page 7).\n\n\n\nFinancial Outlook \n\n\n\nThe projection for the third quarter of fiscal 2020 is for overall sales to be comparable to the same period last year. Pre-tax income for the third quarter of fiscal 2020 is expected to be in the range of $3.2 million to $3.8 million. Pre-tax income for the third quarter of fiscal 2019 was $4.3 million, which incl...