Textile supplier Culp Inc., based in High Point, N.C., reported that net sales for its fiscal 2013 second quarter were $65.6 million, up 13% over the second quarter of fiscal 2012. The company’s fiscal second quarter ended Oct. 28.
Mattress fabric sales were $39.7 million, up 12.6% over the prior-year quarter and upholstery fabric sales were $25.9 million, up 13.6% over the same period a year ago.
| BRIEFLY | |
| Recent results | |
| Net sales | $65.6 million |
| Mattress fabric sales | $39.7 million |
| Upholstery fabric sales | $25.9 million |
“We are pleased with our results for the second quarter, which built upon the sales momentum and product successes that we experienced during the first quarter,” said Frank Saxon, Culp president and chief executive officer. “Demand trends have been reasonably solid in both businesses, and we are encouraged by the continued favorable customer response to our exciting designs and wide range of innovative products. We have continued to leverage our efficient global manufacturing platform to create the right product mix that meets the changing style demands of our customers.”
Pretax income was $4.5 million, a gain of 55% over the second quarter of fiscal 2012.
Net income was $8.3 million, or $0.67 per diluted share, compared with net income of $6.3 million, or $0.49 per diluted share, in the prior-year period.
The company said its financial position remains strong. It reported a total cash position of $28.7 million and total debt of $7.7 million, after spending $4.6 million on stock repurchases and making a $2.6 million principal and interest payment during the second quarter.
Culp paid both a special cash dividend of $0.50 per share and a scheduled quarterly cash dividend of $0.03 per share in December 2012.
“We are pleased to report another strong performance in our mattress fabrics business,” said Iv Culp, mattress fabrics division president. “The overall sales growth in the second quarter reflects solid gains in all major product categories. We have continued to capitalize on the growing consumer demand for better bedding products and, therefore, a higher-quality mattress fabric. The mattress industry is continuing to evolve into a more decorative business, and many of our customers are upgrading their fabric choices to achieve a more fashionable look. Culp is well positioned to meet this demand with an extensive manufacturing platform and flexible capacity.”
The company said its new Culp-Lava manufacturing facility in Stokesdale, N.C.—a partnership with Chicago-based A. Lava & Son Co.—began production in November. The cut-and-sew operation produces finished mattress covers.
Culp projects overall sales to increase 3% to 6% during the third quarter of fiscal 2013, compared with the same period a year ago. Pretax income is expected to be $4 million to $4.5 million.
