Culp, Inc (CFI) has reported 72.12 percent jump in profit for the quarter ended Apr. 30, 2017. The company has earned $6.20 million, or $0.49 a share in the quarter, compared with $3.60 million, or $0.29 a share for the same period last year. Revenue during the quarter went up marginally by 0.13 percent to $77.35 million from $77.25 million in the previous year period. Gross margin for the quarter expanded 68 basis points over the previous year period to 22.18 percent. Total expenses were 90.73 percent of quarterly revenues, up from 90.48 percent for the same period last year. That has resulted in a contraction of 25 basis points in operating margin to 9.27 percent.
Operating income for the quarter was $7.17 million, compared with $7.35 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $9.44 million compared with $9.75 million in the prior year period. At the same time, adjusted EBITDA margin contracted 41 basis points in the quarter to 12.21 percent from 12.62 percent in the last year period.
Commenting on the results, Frank Saxon, president and chief executive officer of Culp, Inc., said, “Our results for the fourth quarter were in line with expectations, capping off an outstanding performance for Culp in fiscal 2017 in spite of a more challenging retail environment for home furnishings. While our overall annual sales were slightly lower than the prior year, our mattress fabric segment had another record performance with total annual sales surpassing the previous year’s level. Notably, our pre-tax income for the year was the highest in the company’s history. Further, we achieved excellent cash flow from operations and free cash flow and continued high returns on capital for the year. Finally, we ended the year with no debt and $54.2 million in total cash and investments, which is the highest level achieved in the company’s history.
Operating cash flow improves
Culp, Inc has generated cash of $32.98 million from operating activities during the year, up 23.09 percent or $6.19 million, when compared with the last year. The company has spent $43.28 million cash to meet investing activities during the year as against cash outgo of $7.40 million in the last year. It has incurred net capital expenditure of $11.72 million on net basis during the year, up 4.23 percent or $0.48 million from year ago.
The company has spent $6.64 million cash to carry out financing activities during the year as against cash outgo of $11.83 million in the last year period.
Cash and cash equivalents stood at $20.80 million as on Apr. 30, 2017, down 44.97 percent or $16.99 million from $37.79 million on May 01, 2016.
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