Business
Culp Announces Results for Third Quarter Fiscal 2020
HIGH POINT, N.C.--(BUSINESS WIRE)-- Culp, Inc. (NYSE: CULP) today reported financial and operating results for the third quarter ended February 2, 2020.
About this update from Culp, Inc.
[{"type":"text","content":" HIGH POINT, N.C.--(BUSINESS WIRE)--\nCulp, Inc. (NYSE: CULP) today reported financial and operating results for the third quarter ended February 2, 2020.\n\n\nFiscal 2020 Third Quarter Highlights\n\n\n\nNet sales were $72.0 million, down 6.8 percent over the prior year, with mattress fabrics sales down 7.4 percent, upholstery fabrics sales down 5.7 percent, and home accessories sales down 11.0 percent.\n\n\n\n\nPre-tax loss (GAAP) for the third quarter of fiscal 2020 was $5.1 million, compared with pre-tax income of $4.3 million for the prior-year period.\n\n\n\n\nPre-tax income (non-GAAP) for the third quarter of fiscal 2020 was $2.4 million excluding a reversal of a $6.1 million contingent earnout liability and non-cash impairment charges of $13.6 million related to the home accessories division. Pre-tax income for the prior-year period was $5.0 million excluding restructuring and related charges and credits and other non-recurring items resulting in a net charge of approximately $769,000. (See reconciliation tables on page 9).\n\n\n\n\nThe company’s financial position reflected total cash and investments of $34.8 million and outstanding borrowings totaling $925,000 as of February 2, 2020, for a net cash position of $33.9 million. (See summary of cash and investments table on page 8).\n\n\n\n\nThe company announced a quarterly cash dividend of 10.5 cents per share, payable in April.\n\n\n\n\nThe company repurchased 55,750 shares of Culp common stock during the third quarter of fiscal 2020, and subsequently repurchased an additional 86,746 shares through March 4, 2020, leaving approximately $3.3 million available under the share repurchase program approved by the company’s Board of Directors in September 2019. The Board has approved an increase in the authorization for the company to repurchase shares back up to a total of $5.0 million.\n\n\n\nFinancial Outlook \n\n\n\nThe following expectations assume the coronavirus outbreak does not have a greater than anticipated impact on the company’s operations, which may affect each of the company’s divisions to varying levels. Currently, the company has not experienced significant disruption in its China operations or supply chain due to the virus. Management is monitoring the situation daily and following the company’s global pandemic disease contingency plan to protect the company’s...