Culp 3Q Sales Drop 26.3%, Posts $450,000 Loss
March 4, 2009
Fabric supplier Culp, Inc. (CFI) reported net sales of $44.6 million for the third quarter ended Feb. 1, down 26.3 percent compared with $60.5 million in the third quarter last year.
The company reported a net loss of $450,000 compared with net income of $903,000, for the third quarter of fiscal 2008. On a pre-tax basis, the company reported income of $17,000, compared with pre-tax income of 643,000 for the third quarter of fiscal 2008. The pre-tax results for the third quarter of fiscal 2009 included non-cash restructuring and related charges of approximately $504,000 related to fixed assets and inventories, and cash charges of $273,000 in restructuring and related charges pertaining to asset disposal costs and lease and employee terminations, both in the upholstery fabrics segment.
Excluding these charges in both periods, the company reported pre-tax income of $794,000 for the third quarter of fiscal 2009, compared with pre-tax income of $1.4 million for the third quarter of fiscal 2008.
For the nine months ended Feb. 1, the company reported net sales of $ 156.2 million compared with $190 million for the same period a year ago. Net loss for the first nine months of fiscal 2009 was $40.5 million compared with net income of $3.3 million for the same period last year. The loss included a $30.5 million non-cash charge through the third quarter for the establishment of a valuation allowance against all of the company's deferred tax assets. On a pre-tax basis, the company reported a loss of $9.1 million, compared with pre-tax income of $3.4 million for the first nine months of fiscal 2008. The pre-tax results for the first nine months of fiscal 2009 included non-cash restructuring and related charges of approximately $11.5 million related to fixed assets and inventories and cash charges of $1.5 million in restructuring and related charges pertaining to asset disposal costs and lease and employee terminations, both in the upholstery fabrics segment.
Excluding these charges in both periods, pre-tax income for the first nine months of fiscal 2009 was $3.9 million, compared with pre-tax income of $5.7 million for the first nine months of fiscal 2008.
“We are pleased with our solid execution through what has been and continues to be an extremely challenging business environment,” said Frank Saxon, chief executive officer. “While our sales reflect the sharp decline in discretionary consumer spending, especially for furniture, we believe we have effectively managed our operations with a leaner and more agile operating platform. Our upholstery fabrics sales have been the hardest hit by the economic downturn, but this segment was still profitable in the third quarter as a result of the successful implementation of our profit improvement plan. The mattress fabrics business has been much steadier through the economic downturn, and we had continued margin improvement compared with the prior year period.”
The company reported a net loss of $450,000 compared with net income of $903,000, for the third quarter of fiscal 2008. On a pre-tax basis, the company reported income of $17,000, compared with pre-tax income of 643,000 for the third quarter of fiscal 2008. The pre-tax results for the third quarter of fiscal 2009 included non-cash restructuring and related charges of approximately $504,000 related to fixed assets and inventories, and cash charges of $273,000 in restructuring and related charges pertaining to asset disposal costs and lease and employee terminations, both in the upholstery fabrics segment.
Excluding these charges in both periods, the company reported pre-tax income of $794,000 for the third quarter of fiscal 2009, compared with pre-tax income of $1.4 million for the third quarter of fiscal 2008.
For the nine months ended Feb. 1, the company reported net sales of $ 156.2 million compared with $190 million for the same period a year ago. Net loss for the first nine months of fiscal 2009 was $40.5 million compared with net income of $3.3 million for the same period last year. The loss included a $30.5 million non-cash charge through the third quarter for the establishment of a valuation allowance against all of the company's deferred tax assets. On a pre-tax basis, the company reported a loss of $9.1 million, compared with pre-tax income of $3.4 million for the first nine months of fiscal 2008. The pre-tax results for the first nine months of fiscal 2009 included non-cash restructuring and related charges of approximately $11.5 million related to fixed assets and inventories and cash charges of $1.5 million in restructuring and related charges pertaining to asset disposal costs and lease and employee terminations, both in the upholstery fabrics segment.
Excluding these charges in both periods, pre-tax income for the first nine months of fiscal 2009 was $3.9 million, compared with pre-tax income of $5.7 million for the first nine months of fiscal 2008.
“We are pleased with our solid execution through what has been and continues to be an extremely challenging business environment,” said Frank Saxon, chief executive officer. “While our sales reflect the sharp decline in discretionary consumer spending, especially for furniture, we believe we have effectively managed our operations with a leaner and more agile operating platform. Our upholstery fabrics sales have been the hardest hit by the economic downturn, but this segment was still profitable in the third quarter as a result of the successful implementation of our profit improvement plan. The mattress fabrics business has been much steadier through the economic downturn, and we had continued margin improvement compared with the prior year period.”
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