- Net sales were $70.1 million, up 1.4 percent, with mattress fabric sales up 0.5 percent and upholstery fabric sales up 2.4 percent. This is the company’s highest total sales for the first quarter in nine years.
- Pre-tax income was $5.5 million, the highest first quarter level in the company’s history.
- Adjusted net income (non-GAAP) was $4.7 million, or $0.38 per diluted share, for the current quarter, compared with $4.3 million, or $0.34 per diluted share, for the prior year period. (Adjusted net income is calculated using estimated cash income tax expense. See the reconciliation to net income on page 6). Net income (GAAP) was $3.2 million, or $0.26 per diluted share, compared with net income of $3.5 million, or $0.28 per diluted share, in the prior year period.
- The company’s financial position remained strong with cash and cash equivalents and short term investments of $27.6 million and total debt of $7.2 million as of July 28, 2013.
- Consolidated return on capital was 32 percent compared with 31 percent in the prior year period.
- Free cash flow was $1.9 million compared with ($3.0) million a year ago.
- The company paid a cash dividend of $0.04 per share during the quarter, representing a 33 percent increase in quarterly cash dividend payments from fiscal 2013.
- The projection for the second quarter of fiscal 2014 is for overall sales to be in the range of flat to four percent higher as compared with the same period last year. Pre-tax income is expected to be in the range of $4.1 million to $4.7 million. Pre-tax income for the second quarter of fiscal 2013 was $4.5 million.
- The company expects fiscal 2014 to be another excellent year for free cash flow.
Culp, Inc. (NYSE: CFI) today reported financial and operating results for the first quarter ended July 28, 2013. Fiscal 2014 first quarter highlights: