Culp Announces Results for Fourth Quarter and Fiscal 2019
Culp, Inc. (NYSE: CULP) today reported financial and operating results for the fourth quarter and fiscal year ended April 28, 2019.
Fiscal 2019 Full Year Highlights
- Net sales were $296.7 million, down 8.4 percent compared with the prior year, with mattress fabric sales down 24.7 percent and upholstery fabric sales up 3.5 percent over the prior year. Net sales for home accessories were $16.0 million since the June 2018 investment in eLuxury, with no comparable prior-year sales.
- Pre-tax income was $12.0 million, compared with $26.9 million for fiscal 2018. Excluding restructuring and related charges and credits and other non-recurring items of approximately $2.7 million, pre-tax income was $14.7 million for fiscal 2019. (See reconciliation tables on page 10).
- Net income attributable to Culp, Inc. shareholders was $5.7 million, or $0.45 per diluted share, compared with net income of $20.9 million, or $1.65 per diluted share, for fiscal 2018. (See additional discussion on tax impact for the year on page 2).
- Return on capital was 12 percent, compared with 25 percent in fiscal 2018. (See reconciliation tables on pages 11-12).
- Cash flow from operations was $13.9 million, with free cash flow of $11.5 million for the year, after spending $4.8 million in capital expenditures, including vendor-financed payments and investments in Haiti. (See reconciliation tables on page 8).
- The company’s financial position as of the end of fiscal 2019 reflected a $675 thousand note payable and total cash and investments of $45.0 million, compared with $54.5 million at the end of fiscal 2018. (See summary of cash and investments table on page 7).
- The company paid $4.7 million in dividends and $3.3 million in share repurchases.
Fiscal 2019 Fourth Quarter Highlights
- Net sales were $71.0 million, down 9.2 percent over the prior-year period, with mattress fabric sales down 18.9 percent and upholstery fabric sales down 8.3 percent compared with the fourth quarter last year. Net sales for home accessories were $4.2 million, with no comparable prior-year sales.
- Pre-tax income was $1.5 million, compared with $6.5 million in the fourth quarter of fiscal 2018. Excluding a non-recurring charge of $500,000, pre-tax income was $2.0 million for the fourth quarter of 2019. (See reconciliation table on page 9).
- Net loss attributable to Culp, Inc. shareholders was $1.4 million, or $0.11 per diluted share, compared with net income of $12.7 million, or $1.00 per diluted share, in the prior-year period. This net loss was attributable to a 199.7 percent tax rate for the quarter. (See additional discussion on taxes on page 2).
- The company announced a quarterly cash dividend of $0.10 per share, payable in July 2019.