Culp Posts Year-End Income of $16.2M

June 16, 2011  by in UnCategorized   

By Home Furnishings Business in Financial Reports on June 17, 2011 Upholstery fabric  and mattress ticking supplier (NYSE: CFI) reported net income of $6 million for the fourth quarter ended May 1, compared with net income of $5.4 million in the same quarter last year.

Net sales for the quarter were $60.4 million, up 5.5 percent from sales of $57.2 million in the fourth quarter last year.

During the quarter, Culp began its upholstery fabric sales through Culp Europe, its subsidiary established in Poland to sell and distribute fabrics.

Net income for fiscal 2011 was $16.2 million, compared with $13.2 million posted for fiscal 2010. Net income for this year included a $1.1 million income tax benefit, and net income for fiscal 2010 included an income tax expense of $1.1 million.

Annual sales for the company were $216.8 million, a 5 percent increase from net sales of $206.4 million posted in fiscal 2010.

In addition to the financial results, the company's board of directors approved the expenditure of up to $5 million under a stock repurchase program. Based on the current market value of the common stock, the company could buy about 5 percent of the 13.3 million outstanding shares.

"This share repurchase program reflects the company's strong financial position and confidence in our long-term prospects," said Frank Saxon, chief executive officer. "Our healthy balance sheet and ample liquidity provide us the opportunity to continue to invest in growing our businesses, while also creating value for our shareholders through share repurchases."

Saxon said the company was pleased with its fourth quarter and year-end performance.

"Overall, our solid performance reflects the benefits of a lean and agile global operating platform and a strong competitive position in both businesses," he said. "Our financial position continues to be the strongest in the company's history. This represents an important competitive advantage in these highly uncertain times, and provides us not only with greater flexibility to pursue our growth initiatives, but also an opportunity to enhance shareholder value through the share repurchase program announced today. Above all, Culp represents a stable and trusted supplier for our customers with a proven ability to execute."

The entire earnings release can be found online.