Culp Inc. Files Q2 FY25 10-Q Report

TL;DR

Culp Inc. Q2 FY25 10-Q filed. Financials out.

AI Summary

Culp Inc. reported its second-quarter results for fiscal year 2025, ending October 27, 2024. The company's financial performance for the quarter and year-to-date is detailed in this 10-Q filing. Specific financial figures, segment performance, and operational details are provided.

Why It Matters

This filing provides investors and stakeholders with the latest financial performance data for Culp Inc., crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: medium — The filing contains detailed financial information, including segment performance and credit facilities, which are key indicators of financial health and potential risks.

Key Numbers

• 2025 — Fiscal Year (Reporting period)
• 2024-10-27 — Quarter End Date (End of the reporting period)
• 2023-04-30 — Prior Year Period End (Comparison period)

Key Players & Entities

• CULP INC (company) — Filer
• 2024-10-27 (date) — Fiscal year end date
• 20241206 (date) — Filing date
• Bank Of China (company) — Lender
• High Point, NC (location) — Company headquarters

FAQ

Key Financial Figures

• $0.05 — cember 6, 2024: 12,559,129 Par Value: $0.05 per share INDEX TO FORM 10-Q For th

Filing Documents

• culp-20241027.htm (10-Q) — 3329KB
• culp-ex10_1.htm (EX-10.1) — 65KB
• culp-ex10_2.htm (EX-10.2) — 76KB
• culp-ex31_1.htm (EX-31.1) — 15KB
• culp-ex31_2.htm (EX-31.2) — 15KB
• culp-ex32_1.htm (EX-32.1) — 6KB
• culp-ex32_2.htm (EX-32.2) — 6KB
• 0000950170-24-133885.txt ( ) — 15973KB
• culp-20241027.xsd (EX-101.SCH) — 1749KB
• culp-20241027_htm.xml (XML) — 3286KB

- 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 October 27, 2024, and October 29, 2023 I- 1 Consolidated Statements of Net Loss — Six Months Ended October 27, 2024, and October 29, 2023 I- 2 Consolidated Statements of Comprehensive Loss – Three Months and Six Months Ended October 27, 2024, and October 29, 2023 I- 3 Consolidated Balance Sheets — October 27, 2024, October 29 2023, and April 28, 2024 I- 4 Consolidated Statements of Cash Flows — Six Months Ended October 27, 2024, and October 29, 2023 I- 5 Consolidated Statements of Shareholders' Equity – Six Months Ended October 27, 2024 I- 6 Consolidated Statements of Shareholders' Equity – Six Months Ended October 29, 2023 I- 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements I- 8 Cautionary Statement Concerning Forward-Looking Information I- 33 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- 34 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk I- 51 Item 4.

Controls and Procedures

Controls and Procedures I- 51

- 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 OCTOBER 27, 2024, AND OCTOBER 29, 2023 UNAUDITED (Amounts in Thousands, Except for Per Share Data) THREE MONTHS ENDED October 27, October 29, 2024 2023 Net sales $ 55,674 $ 58,725 Cost of sales ( 49,684 ) ( 50,775 ) Gross profit 5,990 7,950 Selling, general and administrative expenses ( 9,359 ) ( 10,045 ) Restructuring expense ( 2,031 ) ( 144 ) Loss from operations ( 5,400 ) ( 2,239 ) Interest expense ( 30 ) — Interest income 244 282 Other (expense) income ( 508 ) 49 Loss before income taxes ( 5,694 ) ( 1,908 ) Income tax benefit (expense) 50 ( 516 ) Net loss ( 5,644 ) $ ( 2,424 ) Net loss per share - basic $ ( 0.45 ) $ ( 0.19 ) Net loss per share - diluted $ ( 0.45 ) $ ( 0.19 ) Average shares outstanding, basic 12,513 12,456 Average shares outstanding, diluted 12,513 12,456 See accompanying notes to consolidated financial statements. I- 1 CULP, INC. CONSOLIDATED STAT EMENTS OF NET LOSS FOR THE SIX MONTHS ENDED OCTOBER 27, 2024, AND OCTOBER 29, 2023 UNAUDITED (Amounts in Thousands, Except for Per Share Data) SIX MONTHS ENDED October 27, October 29, 2024 2023 Net sales $ 112,211 $ 115,387 Cost of sales ( 101,145 ) ( 100,352 ) Gross profit 11,066 15,035 Selling, general and administrative expenses ( 18,655 ) ( 19,874 ) Restructuring expense ( 4,662 ) ( 482 ) Loss from operations ( 12,251 ) ( 5,321 ) Interest expense ( 58 ) — Interest income 507 627 Other (expense) income ( 913 ) 145 Loss before income taxes ( 12,715 ) ( 4,549 ) Income tax expense ( 190 ) ( 1,217 ) Net loss $ ( 12,905 ) $ ( 5,766 ) Net loss per share - basic $ ( 1.03 ) $ ( 0.47 ) Net l

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 six-months ended October 27, 2024, and October 29, 2023, each represent 26-week periods. 2. Significant Accounting Policies As of October 27, 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 through the second quarter of fiscal 2025. Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2023-07 ("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 segme

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View this 10-Q filing on SEC EDGAR