Culp Q2 sales up more than 10%
HIGH POINT — Mattress fabrics led the sales increase for Culp in its second quarter for fiscal year 2021, ended Nov. 1.
Net sales were $76.9 million, up 10.5% year-over-year, with mattress fabric sales up 12.2% and upholstery fabric sales up 8.7%.
“Overall, we are very pleased with the top line performance for both our mattress fabrics and upholstery fabrics segments,” said Iv Culp, president and CEO. “This faster-than-expected recovery indicates an increased consumer focus on the home environment, as well as our ability to service this increase in demand through our strong global platform and stable supply chain.”
Sales for the mattress fabrics segment was $40 million, compared with $35.7 million in the fiscal 2020 quarter. For the upholstery fabrics segment, sales were $36.8 million for the period, compared with $33.9 million YOY.
Net income for the period was $2.4 million, 19 cents per diluted share, up slightly from $2.2 million, or 18 cents per diluted share, for the prior-year period.
The company’s financial position reflects total cash and investments of $56.5 million and no outstanding borrowings at the end of the quarter, compared with a net cash position of $38.7 million six months ago.
Cash flow from operations and free cash flow for the first half of fiscal 2021 were $22.7 million and $20.5 million respectively, both up from the year-ago period.
“Based on this strong financial performance, we are pleased to announce that our board of directors approved a 5% increase in our quarterly dividend,” said Culp. This is the eighth consecutive year the company has increased its annual dividend.
Culp continues to provide only limited financial guidance for fiscal 2021, citing the continued economic impact of the pandemic and uncertainty as to its duration.
“Looking ahead, our customers’ ability to meet their demand is being challenged by supply chain constraints related primarily to non-fabric components, as well as labor shortages, which could temporarily delay their scheduled delivery of fabric orders from both our mattress and upholstery fabrics segments,” said Culp.
He added that the company is prepared for a range of macroeconomic scenarios and confident in its ability to weather these near-term headwinds.