Culp, Inc. (NYSE: CFI) today reported financial and operating results for the third quarter ended January 30, 2011.
Fiscal 2011 Third Quarter Highlights
- Net sales were $51.7 million, down 4.3 percent from the third quarter of last year, with mattress fabric segment sales up 3.9 percent and upholstery fabrics segment sales down 12.5 percent.
- Pre-tax income was $2.9 million, or 5.6 percent of net sales, compared with $3.8 million, or 7.1 percent of sales in the prior year period.
- Net income was $2.4 million, or $0.18 per diluted share. These results compare with net income of $3.0 million, or $0.23 per diluted share, in the prior year quarter.
- The company’s financial position strengthened during the third quarter, with cash and cash equivalents and short term investments building to $22.8 million, which exceeded total debt of $11.6 million.
- The company established a new subsidiary in Poland, called Culp Europe, that will sell and distribute fabrics, and will make and sell cut and sewn kits, throughout Europe. Sales are expected to begin in Culp’s fourth fiscal quarter.
- Through a proposed new joint venture in the United Kingdom, known as Culp U.K., the company plans to launch an initiative to sell and distribute flame retardant (FR) coated fabrics in the U.K. marketplace. Sales activity and operations are expected to begin in the May to June, 2011 timeframe.
Fiscal 2011 Year to Date Highlights
- Year to date net sales were $156.4 million, up 4.9 percent from the same period a year ago.
- Year to date pre-tax income was $10.4 million, or 6.6 percent of sales, compared with $9.3 million, or 6.2 percent of sales in the prior year period.
- Year to date net income was $10.2 million, or $0.77 per diluted share, compared with $7.8 million, or $0.60 per diluted share, for the same period in fiscal 2010.
- The projection for the fourth quarter of fiscal 2011 is for overall sales to decrease approximately 2 to 7 percent over the prior year period. Mattress fabric sales are expected to be flat to slightly down from the same period last year with upholstery fabrics sales approximately 4 to 9 percent lower than the prior year period. Pre-tax income for the fourth quarter of fiscal 2011 is expected to be in the range of $3.8 to $4.4 million. Pre-tax income for the fourth quarter of fiscal 2010 was $5.0 million.
OverviewFor the three months ended January 30, 2011, net sales were $51.7 million, a 4.3 percent decline compared with $54.0 million a year ago. The company reported net income of $2.4 million, or $0.18 per diluted share, for the third quarter of fiscal 2011, compared with a net income of $3.0 million, or $0.23 per diluted share, for the third quarter of fiscal 2010. On a pre-tax basis, the company reported income of $2.9 million compared with pre-tax income of $3.8 million for the third quarter of fiscal 2010.