Business
Culp Announces Results for Second Quarter Fiscal 2021
Board of Directors Authorizes Five Percent Increase in Quarterly Cash Dividend on Solid Results and Strengthened Liquidity HIGH POINT, N.C.--(BUSINESS
About this update from Culp, Inc.
[{"type":"text","content":"\nBoard of Directors Authorizes Five Percent Increase in Quarterly Cash Dividend on Solid Results and Strengthened Liquidity\n\n HIGH POINT, N.C.--(BUSINESS WIRE)--\nCulp, Inc. (NYSE: CULP) today reported financial and operating results for the second quarter ended November 1, 2020.\n\nFiscal 2021 Second Quarter Financial Summary(1)\n\n\nNet sales were $76.9 million, up 10.5 percent over the prior-year period, with mattress fabric sales up 12.2 percent and upholstery fabric sales up 8.7 percent compared with the second quarter of last year.\n\n\n\nPre-tax income from continuing operations improved sequentially to $3.9 million, which included $680,000 in other expense relating mostly to foreign exchange rate fluctuations associated with China, compared with pre-tax income from continuing operations of $4.5 million for the prior-year period, which included $99,000 in other expense.\n\n\n\nNet income from continuing operations was $2.4 million, or $0.19 per diluted share, compared with net income from continuing operations of $2.2 million, or $0.18 per diluted share, for the prior-year period. \n\n\n\nThe company’s financial position reflected increased total cash and investments of $56.5 million and no outstanding borrowings as of November 1, 2020. This compares with a net cash position of $38.7 million as of the end of the fourth quarter of fiscal 2020. (See summary of cash and investments table on page 9.)\n\n\n\nCash flow from operations and free cash flow for the first six months of fiscal 2021 were $22.7 million and $20.5 million, respectively, compared with cash flow from operations and free cash flow of $8.2 million and $5.6 million, respectively, for the prior-year period. (See reconciliation table on page 11.)\n\n\n\nThe company announced a five percent increase in its quarterly cash dividend to $0.11 per share, commencing in the third quarter of fiscal 2021. At an annual indicated dividend of $0.44 per share, the yield is 3.03%, based upon yesterday’s closing stock price of $14.50 per share. Notably, this is the company’s eighth straight year of increasing its annual dividend.\n\n\n(1) During the fourth quarter of fiscal 2020, the company sold its majority ownership interest in eLuxury, LLC, resulting in the elimination of its home accessories segment. Accordingly, the financial results for this segment are excluded from...