Culp, Inc. Files 8-K on Financials and Exit Costs

TL;DR

Culp Inc. dropped an 8-K detailing financials and exit costs. Check it out.

AI Summary

Culp, Inc. filed an 8-K on April 29, 2024, reporting on its results of operations and financial condition. The filing also details costs associated with exit or disposal activities and includes financial statements and exhibits. The company is based in High Point, North Carolina.

Why It Matters

This filing provides crucial updates on Culp, Inc.'s financial performance and any restructuring or disposal activities, which can significantly impact investor outlook and stock valuation.

Risk Assessment

Risk Level: low — This is a routine financial filing (8-K) and does not inherently indicate new or elevated risks for the company.

Key Players & Entities

• CULP INC (company) — Registrant
• North Carolina (location) — State of Incorporation
• High Point (location) — Principal Executive Offices City
• April 29, 2024 (date) — Date of Report

FAQ

Key Financial Figures

• $0.05 — ch registered Common stock, par value $0.05 per share CULP The New York Stock E
• $8.0 m — ated costs and charges of approximately $8.0 million, of which approximately $2.5 mill
• $2.5 million — ly $8.0 million, of which approximately $2.5 million is expected to be cash expenditures. Th
• $1.1 million — s include cash charges of approximately $1.1 million associated with expected ongoing operat
• $1.4 million — c Canada; cash charges of approximately $1.4 million for employee termination costs; a non-c
• $2.3 million — sts; a non-cash charge of approximately $2.3 million associated with accelerated depreciatio
• $2.1 million — ent; a non-cash charge of approximately $2.1 million associated with write-downs and other i
• $650,000 — and a non-cash charge of approximately $650,000 associated with accelerated rent amorti
• $10.0 million — issions) to be in the range of at least $10.0 million - $12.0 million; however, we are curren
• $12.0 million — n the range of at least $10.0 million - $12.0 million; however, we are currently working with

Filing Documents

• culp-20240429.htm (8-K) — 51KB
• culp-ex99_1.htm (EX-99.1) — 35KB
• img29555247_0.jpg (GRAPHIC) — 4KB
• 0000950170-24-051289.txt ( ) — 211KB
• culp-20240429.xsd (EX-101.SCH) — 23KB
• culp-20240429_htm.xml (XML) — 4KB

02 Results of Operations and Financial Condition

Item 2.02 Results of Operations and Financial Condition. The information set forth in this Item 2.02 of this Current Report, and in Exhibit 99.1, is intended to be "furnished" under Item 2.02 of Form 8-K. Such information shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing. On May 1, 2024, Culp, Inc. (the "Company") issued a news release regarding revised expectations about its financial results for the fourth quarter of the Company's fiscal 2024 ended April 28, 2024. A copy of the news release is attached hereto as Exhibit 99.1.

05 Costs Associated with Exit or Disposal Activities

Item 2.05 Costs Associated with Exit or Disposal Activities. On April 29, 2024, our board of directors made a decision to (1) consolidate the company's North American mattress fabrics operations, including a phased wind-down and closure of the company's manufacturing plant in Quebec, Canada, and moving a portion of the knitting and finishing capacity from this plant to the company's manufacturing facility in Stokesdale, North Carolina; and (2) consolidate the company's sewn mattress cover operation in Haiti into one building and significantly reduce other operating expenses at that location. These actions are being taken to align capacity and cost structure with demand, which has continued to decline due to macro-economic headwinds pressuring the mattress and home furnishings industries. These events were disclosed to the public on May 1, 2024 pursuant to the news release attached hereto as Exhibit 99.1. We expect the phased wind-down and closure of the facility in Quebec, Canada to be completed by December 31, 2024. We expect the consolidation activity associated with the sewn mattress cover operation in Haiti will be completed during the first quarter of fiscal 2025. These actions are expected to result in estimated restructuring and restructuring-related costs and charges of approximately $8.0 million, of which approximately $2.5 million is expected to be cash expenditures. The costs include cash charges of approximately $1.1 million associated with expected ongoing operating losses and other exit and wind-down expenses related to the company's manufacturing plant in Quebec Canada; cash charges of approximately $1.4 million for employee termination costs; a non-cash charge of approximately $2.3 million associated with accelerated depreciation and losses on the sale of equipment; a non-cash charge of approximately $2.1 million associated with write-downs and other inventory related adjustments; and a non-cash charge of approximately $650,000 associated with ac

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. EXHIBIT INDEX Exhibit Number Exhibit 99.1 News Release dated May 1, 2024 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Culp, Inc. Date: May 1, 2024 By: /s/ Kenneth R. Bowling Kenneth R. Bowling Chief Financial Officer (principal financial officer and principal accounting officer)

View Full Filing

View this 8-K filing on SEC EDGAR