CULP REPORTS HIGHER QUARTERLY SALES AND EARNINGS; EARNINGS PER SHARE UP 43% FOR FIRST NINE MONTHS OF FISCAL 1995.HIGH POINT, N.C.--(BUSINESS WIRE)--Feb. 13, 1995--Culp, Inc. (Nasdaq/NM:CULP CULP Caribbean University Level Programme ) today reported higher sales and earnings for the third fiscal quarter ended January 29, 1995. 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 16% to $77.8 million compared with $67.0 million a year ago. Net income for the quarter rose 18% to $2.1 million, or $0.19 per share, compared with $1.8 million, or $0.16 per share, in the third quarter of fiscal 1994. The gains for the third quarter brought net sales for the first nine months to $222.6 million, up 33% from $167.6 million in the first nine months of fiscal 1994. Net income for the first nine months rose 42% to $6.4 million, or $0.57 per share, up from $4.5 million, or $0.40 per share, in the year-earlier period. "These results mark the highest third-quarter sales and net income ever for Culp," said Robert G. Culp, III, chief executive officer. "We have benefited throughout the current fiscal year from favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. year-to-year comparisons at each of the Company's business units. Mattress ticking ticking a coat color pigmentation pattern in which hairs of one color are distributed in small groups throughout the background color, e.g. Australian cattle dog. Called also speckling. and exports 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 have shown particularly sharp growth, and each of those categories remained very strong in the third quarter. Since the Rossville/Chromatex division was included in most of the third quarter a year ago, we are particularly pleased with the 16% gain recorded in sales." Culp remarked, "We did not receive any contribution in the quarter from the acquisition of Rayonese Textile since that acquisition is not expected to close until next month. We have progressed in plans for a significant capital expansion program at Rayonese to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the increasing global demand for wide jacquard fabrics. That incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. spending should bring the Company's total capital expenditures for fiscal 1995 to approximately $21 million, up from $16.8 million in fiscal 1994. "We have been aided thus far in fiscal 1995 by a favorable underlying trend in 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. on 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. . Although there is concern about the possible impact of the higher prevailing interest rates on demand for residential furniture, our focus remains on building Culp's fundamental competitive position. The acquisition of Rossville/Chromatex a year ago and the most recent announcement regarding the purchase of Rayonese Textile represent only the latest in a series of strategic steps over the last several years to strengthen the Company's market stance in an industry which is continuing to consolidate. We are finding Culp's expanded resources to be a definite asset in working with large furniture and bedding manufacturers which are accounting for an ever-increasing percentage of total shipments." Culp concluded, "We recognize the ongoing importance of containing operating costs operating costs npl → gastos mpl operacionales and achieving higher manufacturing productivity. We also must maintain a sound financial position in order to have modern equipment and facilities and to have the flexibility to seize seize v. To exhibit symptoms of seizure activity, usually with convulsions. additional opportunities to expand our existing operations." Culp, Inc. is a leading manufacturer and marketer of fabrics for the furniture, bedding and institutional furnishings markets. -0-
CULP, INC.
Condensed Financial Highlights
(Unaudited)
Three Months Ended
January 29, January 30,
1995 1994
Net sales $ 77,791,000 $ 67,031,000
Net income 2,100,000 1,775,000
Earnings per share $ 0.19 $ 0.16
Nine Months Ended
January 29, January 30,
1995 1994
Net sales $222,585,000 $167,600,000
Net income 6,350,000 4,465,000
Earnings per share $ 0.57 $ 0.40
CONTACT: Culp Inc., High Point Frank Saxon, 910/888-6266 |
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