Have a look at News Release: Culp, Inc. (NYSE: CULP)

Culp, Inc. stock identified change of 46.97% away from 52-week low price and recently located move of -60.46% off 52-week high price. It has market worth of $96.29M and dividend yield of 5.41%. CULP stock has been recorded 14.20% away from 50 day moving average and -36.14% away from 200 day moving average. Moving closer, we can see that shares have been trading 24.45% off 20-day moving average.

Culp, Inc. (CULP) recently stated financial and operating results for the fourth quarter and fiscal year ended May 3, 2020, which were severely affected by the coronavirus (“COVID-19”) pandemic and included non-cash asset impairment charges in connection with the related business disruption. Also, in support of a comprehensive liquidity focus, Culp sold its majority interest in eLuxury, LLC (“eLuxury”) on March 31, 2020, resulting in the elimination of the company’s home accessories section. Accordingly, the financial results for this section are excluded from the stated financial performance of the company’s continuing operations for the fourth quarter and fiscal 2020 year (and for all previous periods of comparison) and presented as a discontinued operation in the company’s consolidated financial statements.

Fiscal 2020 Full Year Financial Summary

  • The company’s financial position as of the end of fiscal 2020 reflected total cash and investments of $77.1M and outstanding borrowings totaling $38.4M, for a net cash position of $38.7M. (See summary of cash and investments table on page 8). This compares with total cash and investments of $34.8M and outstanding borrowings totaling $925,000, for a net cash position of $33.9M, as of the end of the third quarter of fiscal 2020.
  • Net sales were $256.2M, down 8.9 percent contrast with the previousyear, with mattress fabric sales down 9.8 percent and upholstery fabric sales down 8.0 percent.
  • Pre-tax loss from continuing operations (GAAP) for fiscal 2020 was $(7.7)M, contrast with pre-tax income from continuing operations of $12.7M for fiscal 2019.
  • Adjusted pre-tax income from continuing operations (non-GAAP) for fiscal 2020 was $6.0M, not including non-cash asset impairment charges of $13.7M associated with goodwill and certain intangible assets, of which $11.5M related to the mattress fabrics section and $2.2M related to the upholstery fabrics section. Adjusted pre-tax income from continuing operations (non-GAAP) for the previousyear was $15.5M, not including restructuring and related charges and credits and other non-recurring charges resulting in a net charge of about $2.7M. (See reconciliation table on page 11).
  • Net loss for fiscal 2020 was $(28.7)M, or $(2.32) per diluted share (which includes the $13.7M in non-cash asset impairment charges described above as well as a net loss from a discontinued operation of $(17.5)M associated with eLuxury), contrast with net income of $5.5M, or $0.43 per diluted share, in fiscal 2019 (which includes the $2.7M charge resulting from the restructuring and related charges and credits described above and a net loss from a discontinued operation of $(0.6)M associated with eLuxury).
  • The company paid $5.1M in dividends and $1.7M in share repurchases (142,496 shares) during fiscal 2020. In March 2020, the company’s Board of Directors accepted a raise in the company’s share repurchase authorization back up to a total of $5.0M. As before revealed, the company has suspended its share repurchases given the economic uncertainty related to COVID-19.

Fiscal 2020 Fourth Quarter Financial Summary

  • Net sales were $47.4M, down 29.3 percent over the prior-year period, with mattress fabric sales down 38.5 percent and upholstery fabric sales down 17.3 percent contrast with the fourth quarter of last year.
  • Pre-tax loss from continuing operations (GAAP) for the fourth quarter of fiscal 2020 was $(18.4)M, contrast with pre-tax income from continuing operations of $2.0M for the prior-year period.
  • Adjusted pre-tax loss from continuing operations (non-GAAP) for the fourth quarter of fiscal 2020 was $(4.7)M, not including $13.7M in non-cash asset impairment charges associated with goodwill and certain intangible assets as described below. Adjusted pre-tax income from continuing operations (non-GAAP) for the prior-year period was $2.5M, not including a non-recurring charge of $500,000. (See reconciliation table on page 10).
  • Net loss for the fourth quarter of fiscal 2020 was $(27.8)M, or $(2.26) per diluted share (which includes the $13.7M in non-cash asset impairment charges described above as well as a net loss from a discontinued operation of $(8.7)M associated with eLuxury), contrast with a net loss of $(1.5)M, or $(0.12) per diluted share, for the fourth quarter of fiscal 2019 (which includes the non-recurring charge noted above and a net loss from a discontinued operation of $(0.4)M associated with eLuxury).
  • In connection with the company’s yearlyimpairment assessment of its goodwill and certain other intangible assets, the company determined impairment indicators existed as a result of the material impact on the company’s financial performance and the important decline in its stock price and market capitalization arising from the COVID-19 outbreak. This resulted in a $13.7M non-cash asset impairment charge during the fourth quarter, of which $11.5M related to the mattress fabrics section and $2.2M related to the upholstery fabrics section.
  • As before revealed, the company sold its majority ownership interest in eLuxury during the fourth quarter of fiscal 2020, resulting in the elimination of the home accessories section. As a result, this section was presented as a discontinued operation and stated a pre-tax loss of $(8.7)M for the fourth quarter and $(17.6)M for the fiscal 2020 year.
  • The company paid $1.0M in share repurchases (86,746 shares) during the fourth quarter of fiscal 2020.

Consumer Cyclical sector company, Culp, Inc. noticed change of 0.65% to $7.76 along volume of 94098 shares in recent session compared to an average volume of 84.47K. CULP’s shares are at -13.49% for the quarter and driving a -54.96% return over the course of the past year and is now at -43.02% since this point in 2018,

 

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