Culp, Inc. (NYSE: CFI) today reported financial and operating results for the fourth quarter and fiscal year ended May 1, 2011.
Fiscal 2011 fourth quarter highlights:
- Net sales were $60.4 million, up 5.5 percent from the fourth quarter of fiscal 2010, with mattress fabric segment sales up 5.3 percent and upholstery fabrics segment sales up 5.7 percent. This is the highest quarterly sales level in three years.
- Pre-tax income was $4.7 million, or 7.7 percent of sales, compared with $5.0 million, or 8.7 percent, of sales, in the prior year period.
- Net income was $6.0 million, or $0.45 per diluted share, compared with net income of $5.4 million, or $0.41 per diluted share, in the prior year. Net income for the fourth quarter of fiscal 2011 included a $1.3 million income tax benefit, while net income for the previous year period included an income tax benefit of $436,000.
- The company began initial upholstery fabric sales through Culp Europe, its new subsidiary established in Poland to sell and distribute fabrics.
- The company announced today a $5.0 million share repurchase program.
Fiscal 2011 full year highlights:
- Net sales were $216.8 million, up five percent over the prior year. Mattress fabric segment sales were up 6.6 percent over the prior year while upholstery fabric sales were up 3.1 percent. These results mark the second consecutive annual sales increase since the recession began in 2008.
- Pre-tax income was $15.1 million compared with a pre-tax income of $14.3 million in fiscal 2010, 6.9 percent of sales for both periods.
- Net income was $16.2 million, or $1.22 per diluted share, compared with $13.2 million, or $1.01 per diluted share, in the prior year period. Net income for fiscal 2011 included a $1.1 million income tax benefit, while net income for fiscal 2010 included income tax expense of $1.1 million.
- The company’s financial position strengthened considerably during fiscal 2011 with cash and cash equivalents and short-term investments totaling $30.9 million at year end, exceeding total debt of $11.5 million. The company increased its total cash and short term investment position by $9.6 million during the year, while investing significantly in capital expenditures of $6.4 million and building working capital of $3.6 million to support higher sales.
Stock Repurchase ProgramThe company also announced that its Board of Directors has authorized the expenditure of up to $5.0 million for the repurchase of shares of the company's common stock. Based on the current market value of the common stock, this will allow the company to repurchase approximately five percent of the 13.3 million shares outstanding. Under the stock repurchase program, shares may be purchased from time to time in open market transactions, block trades, through plans established under Securities Exchange Act Rule 10b5-1, or otherwise. The amount of shares purchased and the timing of the purchases will be based on working capital requirements, market and general business conditions and other factors, including alternative investment opportunities.