| BRIEFLY | |
| Fourth-quarter snapshot | |
| Net sales | $75.7 million |
| Net income | $4.5 million |
| Full-year snapshot | |
| Net sales | $254.4 million |
| Net income | $13.3 million |
Fabric supplier Culp Inc., headquartered in High Point, N.C., reported net sales for its fiscal fourth-quarter were $75.7 million, up 25.4% over the same quarter in fiscal 2011. Sales in the mattress fabric segment were up 23.3% and upholstery fabrics were up 28.4%. This is the highest quarterly sales gains in eight years, the company said. Culp’s fiscal 2012 fourth-quarter ended April 30.
“Our mattress fabrics business had a strong fourth-quarter performance, ending fiscal 2012 with the highest annual sales in our history,” said Iv Culp, president of Culp’s mattress fabrics division. “We had solid gains across all major product categories, highlighted by a recent resurgence in sales of our woven damask product line. The overall sales trend reflects a growing consumer demand for better bedding and a higher-quality mattress fabric as some segments of the mattress industry are demanding more decorative products.”
He continued: “While we are pleased with the increased sales, our operating margins for the quarter and fiscal year were affected by higher raw material costs and continued pricing pressures compared with market conditions a year ago. We are encouraged that raw material prices have come down from their peak levels and appear to have stabilized in the fourth quarter.”
Culp reported pretax income of $5.5 million, or 17% of sales in the fiscal fourth quarter, compared with $3.9 million, or $0.30 per diluted share, for the prior-year period.
Adjusted net income was $4.5 million, or $0.35 per diluted share, for the current quarter, compared with $3.9 million, or $0.30 per diluted share, for the fourth quarter of 2011. Net income was $3.4 million, or $0.27 per diluted share, compared with net income of $6 million, or $0.45 per diluted share, in the prior-year period.
Culp announced it will pay a quarterly cash dividend of $0.03 per share starting in the first quarter of fiscal 2013. It also increased authorized share repurchases to $5 million.
For fiscal 2012, net sales were $254.4 million, up 17.4% compared with fiscal 2011. Mattress fabric sales were $145.5 million, up 18.9%, and upholstery fabric sales were $108.9 million, up 15.4% over the prior year.
Pretax income decreased 6% to $14.2 million in fiscal 2012. Adjusted net income was $11.6 million, or $0.90 per diluted share, in fiscal 2012 compared with $12.6 million, or $0.96 per diluted share, in fiscal 2011.
Net income for 2012 was $13.3 million, or $1.03 per diluted share, compared with $16.2 million, or $1.22 per diluted share, in fiscal 2011.
The company said its financial position remained strong during fiscal 2012, with a total cash position of $31 million at year-end and total debt of $10 million. Culp repurchased 624,459, or 4.7% of its outstanding shares, for $5.4 million.
The company projects sales to increase approximately 6% to 11% in the first quarter of fiscal 2013. Pretax income is expected to be $3.6 million to $4.4 million.
“Our results for fiscal 2012 demonstrate Culp’s ability to succeed in spite of a challenging period of economic uncertainty,” said Frank Saxon, Culp chief executive officer. “Throughout the year, we continued to build upon our strong competitive position in both business segments. Our commitment to product innovation and creativity, along with our scalable and global manufacturing platforms, are key advantages, allowing us to meet the changing demands of our customers.”
