In its fourth fiscal quarter of 2021, which ended May 2, Culp Inc. leapt to a profit with net income of $1.5 million, compared with a net loss of $27.8 million (including $11.6 million in discontinued operations) for the final quarter of fiscal 2020.
Net sales in the fourth quarter jumped to $79.1 million, a 67% increase compared with the prior-year period. Mattress fabric sales were up 84% and upholstery fabric sales rose 50% in the quarter.
RESULTS
Net income
$1.5 million
Net sales
$79.1 million
Ticking sales
+84%
Upholstery sales
+50%
Culp’s full year
Net income
$3.2 million
Net sales
$299.7 million
Ticking sales
+20%
Upholstery sales
+14%
The High Point, North Carolina-based company’s financial position at the close of fiscal 2021 reflected total cash and investments of $46.9 million and no outstanding borrowings. This compares with a net cash position of $38.7 million as of the end of the prior year.
Culp announced a quarterly cash dividend of $0.11 per share, payable in July.
For the full year, net income was $3.2 million, compared with a net loss of $28.7 million in fiscal 2020.
Fiscal 2021 net sales totaled $299.7 million, up 17% compared with fiscal 2020. Mattress fabric and upholstery sales rose 20% and 14%, respectively.
“Despite some ongoing headwinds, we ended a tumultuous year with strength and momentum,” said Iv Culp, president and chief executive officer. “For the full year, we overcame tremendous adversity to deliver strong growth in sales and operating performance compared to the prior year.
“Our existing Haiti operations have performed well for our mattress fabrics segment. … We are also happy to announce an additional expansion to our Haiti operations to include a third facility … dedicated to production of cut and sewn upholstery kits. We believe this move will enhance our speed to market, provide growth opportunities, and mitigate some risk for our upholstery fabrics business with near-shore capabilities that complement our strong Asian platform.”
Sandy Brown, president of the company’s mattress fabrics division, added: “We were energized by the significant growth for the mattress fabric segment during the fourth quarter. Our increase in sales was driven by the ongoing consumer focus on the home environment, combined with our relentless focus on product innovation, creative designs and our ability to service the increased demand through our strong global platform. We benefited from market share gains across a diversified group of new and existing customers, including further growth in our sewn mattress cover business.”
