Culp sales drop 13.1%
By Furniture Today Staff -- Furniture Today, November 25, 2001
HIGH POINT — Despite a 13.1% decline in sales and a $1.4 million bad debt expense, fabric supplier Culp said earnings excluding restructuring charges nearly tripled in the quarter ended Oct. 28.
"Culp is demonstrating the value of actions we have taken to reduce costs and strengthen our balance sheet," said Rob Culp III, chief executive officer.
Excluding the restructuring charges — for moves including downsizing production capacity and reorganizing design resources — Culp said it earned $1 million in its fiscal second quarter. Including the charges, net income was $857,000, up from $342,000 in the same quarter a year ago.
Net income for the quarter included a bad debt expense of $1.4 million, which Culp said was mainly related to the bankruptcy of a bedding manufacturer, apparently Sleepmaster (see story on page 1). That was up from a bad debt expense of $112,000 a year ago.
For the first half, Culp said it lost $2 million, or $375,000 excluding the restructuring charges. The company said that, excluding the charges, it expects to be profitable for the full fiscal year.
Several factors continue to affect sales, Culp said, including the downturn in domestic furniture sales, a strong dollar that has cut the company's international sales by 41%, and the popularity of one-sided mattresses, which use a third less ticking.
Rob Culp said he believes the company is gaining market share in key segments. Burlington, a competitor in mattress ticking, filed for Chapter 11 protection this month but "it's a little early to tell" whether that will create opportunities, he said. "We don't see, at least in the short term, any significant changes in the landscape as long as Burlington keeps shipping on time."
| Quarter ended 10/28 | 2001 | 2000 | Change |
|---|---|---|---|
| Sales | $96,400,000 | $110,981,000 | (13.1%) |
| Operating income | 3,992,000 | 3,396,000 | 17.6% |
| Net income | (a)857,000 | 342,000 | 150.6% |
| Earnings per share(b) | 0.08 | 0.03 | 166.7% |
| 6 months ended 10/28 | 2001 | 2000 | Change |
| Sales | $182,863,000 | $212,859,000 | (14.1%) |
| Operating income | 3,546,000 | 3,792,000 | (6.5%) |
| Net income | (a)(2,025,000) | (1,414,000) | — |
| Earnings per share(b) | (0.18) | (0.13) | — |
| (a) Includes after-tax restructuring and related charges of $100,000 in the 2001 quarter and $1.6 million in the 2001 six months. (b) Based on average shares outstanding of 11.28 million in the 2001 quarter, 11.27 million in the 2000 quarter, 11.22 million in the 2001 six months and 11.21 million in the 2000 six months. | |||
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Easyhome profits down 18%, 4Q revenues flat
Apr 17, 2010 -
Culp sales jump 21.1%
Mar 8, 2010 -
Culp earns $5.4M in fiscal '08
Jun 22, 2008 -
Culp posts smaller losses
Jun 24, 2007 -
Easyhome revenue rises 9.2% in third quarter
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