CULP REPORTS 15% HIGHER THIRD QUARTER NET INCOME; NINE-MONTHS RESULTS REFLECT INCREASED SALES AND EARNINGS.HIGH POINT, N.C.--(BUSINESS WIRE)--Feb. 9, 1996--Culp, Inc. (Nasdaq/NM:CULP CULP Caribbean University Level Programme ) today reported higher sales and earnings for the third fiscal quarter ended January January: see month. 28, 1996. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the quarter increased 11% to $86.5 million compared with $77.8 million a year ago. Net income for the quarter rose 15% to $2.4 million, or $0.22 per share, compared with $2.1 million, or $0.19 per share, in the third quarter of fiscal 1995. The gains for the third quarter brought net sales for the first nine months to $249.5 million, up 12% from $222.6 million in the first nine months of fiscal 1995. Net income for the first nine months rose 9% to $6.9 million, or $0.62 per share, up from $6.4 million, or $0.57 per share, in the year-earlier period. Commenting on the results, Robert G. Culp, III, Chief Executive Officer, said, "The growth reflected in Culp's results for the third quarter clearly indicate the value of our strategic initiatives to broaden the company's customer base. In particular, the success of our accelerated marketing plan to increase exports has complemented the moderate growth we have experienced thus far this fiscal year in demand from U.S.-based manufacturers of home furnishings furnishings the extra type or quantity of hair on the head, tail, ears or legs, specified for a particular breed. For example, the feathers in setters, the beard in Bearded collies, the eyebrows in Schnauzers. . As in the first half, a contribution from Rayonese Textile, which was acquired during the fourth quarter of fiscal 1995, helped our overall corporate results during the third quarter." Culp remarked, "Based on the trends at mid-year, we had expected to face a tough environment for growth during the third and fourth quarters. Continuing uncertainty about the outlook for consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. remains a factor affecting our business because of the caution with which retailers and manufacturers are controlling inventories. The current level of interest rates certainly presents an encouraging sign regarding purchases of furniture over the next several quarters, but the more important factors driving demand will be consumer sentiment and confidence in the economy." "Our ability to capture an increasing share of business from overseas customers reflects the appeal of our designs as well as the cost competitiveness of our fabrics. European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. manufacturers account for the largest share of Culp's exports, but we are experiencing rapid growth in shipments to other geographic areas including the Middle East and Asia. We are finding increasing interest from manufacturers outside the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. in our entire product line, but shipments of upholstery upholstery, general term for household fittings, hangings, curtains, cushions, and covers. It refers to stuffed, padded, and spring-cushioned furniture, such as chairs and sofas, or to the usually decorative materials and fabrics that cover them. fabrics to overseas accounts have been the primary factor accounting for our growth in exports this fiscal year." Culp, Inc. is a leading manufacturer and marketer of fabrics for the furniture, bedding, and institutional furnishings markets. The company's common shares are traded on The Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. (National Market) under the symbol CULP. -0-
CULP, INC.
Condensed Financial Highlights
(Unaudited)
Three Months Ended
January 28, January 29,
1996 1995
Net sales $86,476,000 $77,791,000 Net income 2,415,000 2,100,000 Earnings per share $ 0.22 $ 0.19
Nine Months Ended
January 28, January 29,
1996 1995
Net sales $249,505,000 $222,585,000 Net income 6,930,000 6,350,000 Earnings per share $ 0.62 $ 0.57 CONTACT: Culp, Inc., High Point Frank Saxon Saxon Any member of a Germanic people who lived along the Baltic coast in ancient times and later migrated west as far as the British Isles. The Saxons became pirates in the North Sea during the decline of the Roman empire, and in the early 5th century they spread through , 910/888-6266 |
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