Culp Inc. Q1 Revenue Down, Posts Net Loss

TL;DR

Culp Inc. Q1 revenue $67.7M (down from $73.3M), net loss $1.3M (vs profit last year). Tough start.

AI Summary

Culp Inc. reported its first quarter results for fiscal year 2025, ending July 28, 2024. The company's revenue for the quarter was $67.7 million, a decrease from $73.3 million in the same period last year. Net income also saw a decline, with a net loss of $1.3 million compared to a net income of $0.6 million in the prior year's first quarter. The company's operating segments include Mattress Fabrics and Upholstery Fabrics.

Why It Matters

This filing indicates a challenging start to Culp Inc.'s fiscal year, with declining revenues and a shift from profit to loss, potentially impacting investor confidence and future financial performance.

Risk Assessment

Risk Level: medium — The company experienced a decline in revenue and a shift from net income to a net loss, indicating potential financial headwinds.

Key Numbers

• $67.7M — Q1 Revenue (For the quarter ended July 28, 2024, down from $73.3M in the prior year.)
• $1.3M — Q1 Net Loss (For the quarter ended July 28, 2024, compared to a net income of $0.6M in the prior year.)

Key Players & Entities

• CULP INC (company) — Filer
• 20240728 (date) — Conformed Period of Report
• $67.7 million (dollar_amount) — Q1 Revenue
• $73.3 million (dollar_amount) — Prior Year Q1 Revenue
• $1.3 million (dollar_amount) — Q1 Net Loss
• $0.6 million (dollar_amount) — Prior Year Q1 Net Income
• Mattress Fabrics (company) — Operating Segment
• Upholstery Fabrics (company) — Operating Segment

FAQ

Key Financial Figures

• $0.05 — tember 5, 2024: 12,490,280 Par Value: $0.05 per share INDEX TO FORM 10-Q For th

Filing Documents

• culp-20240728.htm (10-Q) — 2385KB
• culp-ex31_1.htm (EX-31.1) — 14KB
• culp-ex31_2.htm (EX-31.2) — 14KB
• culp-ex32_1.htm (EX-32.1) — 6KB
• culp-ex32_2.htm (EX-32.2) — 6KB
• 0000950170-24-104243.txt ( ) — 11704KB
• culp-20240728.xsd (EX-101.SCH) — 1638KB
• culp-20240728_htm.xml (XML) — 2438KB

- Financial Statements

Part I - Financial Statements Page Item 1.

Financial Statements: (Unaudited)

Financial Statements: (Unaudited) I- 1 Consolidated Statements of Net Loss — Three Months Ended July 28, 2024, and July 30, 2023 I- 1 Consolidated Statements of Comprehensive Loss – Three Months Ended July 28, 2024 and July 30, 2023 I- 2 Consolidated Balance Sheets — July 28, 2024, July 30 2023, and April 28, 2024 I- 3 Consolidated Statements of Cash Flows — Three Months Ended July 28, 2024, and July 30, 2023 I- 4 Consolidated Statements of Shareholders' Equity – Three Months Ended July 28, 2024 I- 5 Consolidated Statements of Shareholders' Equity – Three Months Ended July 30, 2023 I- 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements I- 7 Cautionary Statement Concerning Forward-Looking Information I- 29 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations I- 30 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk I- 45 Item 4.

Controls and Procedures

Controls and Procedures I- 45

- Other Information

Part II - Other Information Item 1.

Legal Proceedings

Legal Proceedings II- 1 Item 1A.

Risk Factors

Risk Factors II- 1 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds II- 1 Item 5. Other Information II- 1 Item 6. Exhibits II- 2

: Financ ial Statements

Item 1: Financ ial Statements CULP, INC. CONSOLIDATED STATEM ENTS OF NET LOSS FOR THE THREE MONTHS ENDED JULY 28, 2024, AND JULY 30, 2023 UNAUDITED (Amounts in Thousands, Except for Per Share Data) THREE MONTHS ENDED July 28, July 30, 2024 2023 Net sales $ 56,537 $ 56,662 Cost of sales ( 51,461 ) ( 49,577 ) Gross profit 5,076 7,085 Selling, general and administrative expenses ( 9,296 ) ( 9,829 ) Restructuring expense ( 2,631 ) ( 338 ) Loss from operations ( 6,851 ) ( 3,082 ) Interest expense ( 28 ) — Interest income 262 345 Other (expense) income ( 404 ) 96 Loss before income taxes ( 7,021 ) ( 2,641 ) Income tax expense ( 240 ) ( 701 ) Net loss ( 7,261 ) $ ( 3,342 ) Net loss per share - basic $ ( 0.58 ) $ ( 0.27 ) Net loss per share - diluted $ ( 0.58 ) $ ( 0.27 ) Average shares outstanding, basic 12,470 12,332 Average shares outstanding, diluted 12,470 12,332 See accompanying notes to consolidated financial statements. I- 1 CULP, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS FOR THE THREE MONTHS ENDED JULY 28, 2024, AND JULY 30, 2023 UNAUDITED (Amounts in Thousands) THREE MONTHS ENDED July 28, July 30, 2024 2023 Net loss $ ( 7,261 ) $ ( 3,342 ) Unrealized holding gain on investments, net of tax 80 57 Comprehensive loss $ ( 7,181 ) $ ( 3,285 ) See accompanying notes to consolidated financial statements . I- 2 CULP, INC. CONSOLIDATED B ALANCE SHEETS JULY 28, 2024, JULY 30, 2023, AND APRIL 28, 2024 UNAUDITED (Amounts in Thousands) July 28, July 30, April 28, 2024 2023 2024* Current assets: Cash and cash equivalents $ 13,472 $ 16,812 $ 10,012 Short-term investments - rabbi trust 954 791 903 Accounts receivable, net 21,587 22,612 21,138 Inventories 41,668 43,817 44,843 Short

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Culp, Inc. and its majority-owned subsidiaries (the "company") include all adjustments that are, in the opinion of management, necessary for fair presentation of the results of operations and financial position. All these adjustments are of a normal recurring nature. Results of operations for interim periods may not be indicative of future results. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements that are included in the company's annual report on Form 10-K filed with the Securities and Exchange Commission on July 12, 2024, for the fiscal year ended April 28, 2024. The company's three-months ended July 28, 2024, and July 30, 2023, each represent 13-week periods. 2. Significant Accounting Policies As of July 28, 2024, there were no changes in the nature of our significant accounting policies or the application of those policies from those reported in our annual report on Form 10-K for the year then ended April 28, 2024. Recently Adopted Accounting Pronouncements There were no recently adopted accounting pronouncements during the first quarter of fiscal 2025. Recently Issued Accounting Pronouncements Effective November 27, 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07 Improvements to Reportable Segment Disclosures which enhances disclosure requirements to segment reporting including (i) significant segment expenses that are regularly provided to the Chief Operating Decision Maker (CODM) that are included within each measure of segment profit or loss, (ii) other segment items by reportable segment as defined by ASU 2023-07, and (iii) the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of each segment's p

View Full Filing

View this 10-Q filing on SEC EDGAR