Led by mattress fabric sales in the second fiscal quarter ended November 2, 2014, Culp, Inc, one of the world’s largest marketers of mattress and upholstery fabrics, reported highest sales for the second quarter in ten years.
In doing so, Culp posted a 4.8 per cent year on year hike in sales which totalled to $74.0 million, driven by mattress fabric sales which rose 6.7 per cent and upholstery fabric sales, albeit slower by 2.3 per cent.
“This reflects the highest sales level for the second quarter in ten years,” Culp said.
Pre-tax income in the reporting quarter touched $4.9 million, up 1.6 per cent compared with $4.8 million in the corresponding second quarter of previous fiscal year.
For the second fiscal quarter of 2014, Culp said its non-GAAP adjusted net income stood at $4.1 million, or $0.33 per diluted share, unchanged from the prior year period.
GAAP net income was $3.0 million, or $0.24 per diluted share as against net income of $3.1 million, or $0.25 per diluted share, in the year ago second fiscal quarter.
It said its financial position remained strong with cash and cash equivalents and short term investments of $35.3 million, comparable to the $35.6 million total at the end of last fiscal year.
This was achieved even after spending $14.7 million in total for dividends, capital expenditures, debt payments, and share repurchases during the first six months of this fiscal year.
The company announced a 20 percent increase in its quarterly cash dividend from $0.05 to $0.06 per share, commencing in the third quarter of fiscal 2015. For the record, Culp has doubled its quarterly cash dividend since reinstating the dividend in June 2012.
During the first six months of the current fiscal year, Culp purchased 43,014 shares of common stock for $745,000, pursuant to the $5.0 million share repurchase program authorized by its board, which leaves $4.3 million available for additional share repurchases.
Since June 2011, the company has returned a total of $27 million to shareholders in the form of regular quarterly and special dividends and share repurchases.
Commenting on the outlook for the third fiscal quarter, Frank Saxon, president of Culp said, “We expect overall sales to be two percent to five percent higher as compared with the third quarter of last year.”
Culp, Inc. is one of the world’s largest marketers of mattress fabrics for bedding and upholstery fabrics for residential and commercial furniture.
It markets a variety of fabrics to its global customer base of leading bedding and furniture companies, including fabrics produced at Culp’s manufacturing facilities and fabrics sourced through other suppliers. (AR)
