|Net sales||$69.2 million|
|Pretax income||$5.4 million|
|Net income||$3.5 million|
Textile supplier Culp Inc., headquartered in High Point, N.C., reported that net sales for its fiscal 2013 first quarter were $69.2 million, up 14.8% over the first quarter of fiscal 2012. The company’s fiscal first quarter ended July 29.
It’s the highest total sales for a first quarter in eight years, Culp said.
Mattress fabric sales were up 18% and upholstery fabric sales were up 11.1% over the same period a year ago.
“We are pleased with our first-quarter performance, marking a solid start to fiscal 2013,” said Frank Saxon, Culp president and chief executive officer. “These results reflect better-than-expected sales momentum through the summer months in both of our businesses. We have continued to experience a favorable customer response to our outstanding design capabilities and wide range of innovative products.”
Pretax income was $5.4 million, a gain of 81.2% over the first quarter of fiscal 2012.
Net income was $3.5 million, or $0.28 per diluted share, compared with net income of $1.8 million, or $0.14 per diluted share, in the prior-year period.
The company said its financial position remains strong, with a total cash position of $27.1 million and total debt of $9.9 million.
Culp repurchased 47,296 of its outstanding shares during the first quarter at a cost of $470,000. Since June 2011, the company has repurchased more than 1.12 million shares, or 8.5% of outstanding shares, for a total of $10.4 million.
The company paid a cash dividend of $0.03 per share during the quarter—the first dividend paid since fiscal 2001.
“Our mattress fabrics business had a strong first-quarter performance with sales gains across all major product categories,” said Iv Culp, president of the mattress fabrics division. “The overall sales growth reflects growing consumer demand for better bedding and a higher-quality mattress fabric. As the mattress industry continues to evolve into a more decorative business, Culp’s many years of planned capital investments have positioned us to meet this demand with an extensive manufacturing platform and flexible capacity to produce an innovative and diverse line of products.
Culp recently inked a partnership agreement with Chicago-based A. Lava & Son Co. to design, produce and market cut-and-sewn mattress covers. Production at a new Culp-Lava manufacturing facility in Stokesdale, N.C., is expected to begin production late in Culp’s fiscal 2013 second quarter.
Culp projects overall sales to increase 2% to 6% during the second quarter of fiscal 2013, compared with the same period last year. Pretax income is expected to be $3 million to $3.7 million.