Business
Culp Announces Results for Second Quarter Fiscal 2022
Board of Directors Authorizes Five Percent Increase in Quarterly Cash Dividend HIGH POINT, N.C.--(BUSINESS WIRE)-- Culp, Inc. (NYSE: CULP) (together with its
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) (together with its consolidated subsidiaries, “CULP”) today reported financial and operating results for the second quarter ended October 31, 2021.\n\nFiscal 2022 Second Quarter Financial Summary\n\n\nNet sales were $74.6 million, down 3.0 percent over the prior-year period, with mattress fabrics sales up 2.1 percent and upholstery fabrics sales down 8.5 percent compared with the second quarter of last year.\n\n\nIncome from operations (operating income) was $1.6 million, compared with income from operations of $4.5 million for the prior-year period.\n\n\nNet income was $851,000, or $0.07 per diluted share, compared with net income of $2.4 million, or $0.19 per diluted share, for the prior-year period.\n\n\n\nThe company’s financial position reflected total cash and investments of $36.6 million and no outstanding borrowings as of October 31, 2021. (See summary of cash and investments table at the back of this press release.)\n\n\n\nThe company announced a five percent increase in its quarterly cash dividend to 11.5 cents per share, commencing in the third quarter of fiscal 2022. At an annual indicated dividend of 46 cents per share, the yield is 4.34 percent, based upon yesterday’s closing stock price of $10.61 per share. Notably, this is the company’s ninth straight year of increasing its annual dividend.\n\n\nThe company repurchased 73,002 shares of CULP common stock during the second quarter of fiscal 2022, leaving approximately $3.2 million available under the company’s share repurchase program.\n\n\nFinancial Outlook\n\n\nThe company continues to navigate uncertainty in the macroeconomic environment related to customer supply chain disruption for non-fabric components, significant inflationary pressures, a challenging labor market, and fluctuation in foreign currency exchange rates. Although CULP is well positioned over the long term with its product-driven strategy and flexible global platform, the current headwinds are expected to continue pressuring results throughout the second half of fiscal 2022, especially during the third quarter. The third and fourth quarters will also be affected by the timing of the Chinese New Year holiday, which begins at the end of the third quarter ...