First Quarter Fiscal 2022 Summary Financial Information
September 1, 2021
FIRST QUARTER FISCAL 2022 FINANCIAL SUMMARY
Net sales were $83.0 million, up 28.8 percent over the pandemic-impactedprior-year period, with mattress fabrics sales up 19.3 percent and upholstery fabrics sales up 41.0 percent compared with the first quarter of last year.
Income from operations (operating income) was $3.3 million, up 76.2 percent compared with income from operations of $1.9 million for the prior-year period.
Net income was $2.3 million, or $0.18 per diluted share, compared with a net loss of $(2.7) million, or $(0.22) per diluted share, for the prior-year period, which included a $3.7 million non-cash net income tax charge. Excluding this net income tax charge, adjusted net income (non-GAAP) for the first quarter of last year was $1.0 million, or $0.08 per diluted share (see reconciliation table at the back of this presentation).
The Company's financial position reflected total cash and investments of $44.0 million and no outstanding borrowings as of August 1, 2021 (see summary of cash and investments table at the back of this presentation).
FIRST QUARTER FISCAL 2022 FINANCIAL SUMMARY (cont'd)
Cash flow from operations and free cash flow were $1.6 million and negative $(782,000), respectively, for the first quarter of fiscal 2022 (see reconciliation table at the back of this presentation).
The company announced its regular quarterly cash dividend of 11 cents per share, payable in October 2021. At an annual indicated dividend of $0.44 per share, the yield is 3.34 percent, based upon a closing stock price of $13.17 per share on August 31, 2021.
The company repurchased 48,686 shares of Culp common stock during the first quarter of fiscal 2022, and has subsequently repurchased an additional 47,767 shares through August 31, 2021, leaving approximately $3.6 million available under the company's recently reinstated share repurchase program.
Although subject to uncertainties, the company is encouraged by the execution of its product-driven strategy and the resilience of its global platform, as well as its expanding market reach. The financial outlook provided for the second quarter of fiscal 2022 is a sequential comparison to the first quarter of fiscal 2022 due to the current inflationary pressures and volatility that were not present during the prior-year period.
The company's net sales and consolidated operating income (income from operations) for the second quarter of fiscal 2022 are expected to be comparable to the first quarter of fiscal 2022.
For the full fiscal 2022 year, the company reaffirms its expectations for net sales to continue increasing moderately, with a projected increase between 8 to 10 percent, and for consolidated operating income to increase significantly, with a projected increase between 20 to 25 percent, in each case as compared to fiscal 2021.
The company's expectations for the second quarter and the full fiscal 2022 year are based on information available at the time of this press release and reflect certain assumptions by management regarding the company's business and trends. The outlook assumes there will be no further pandemic-related shutdowns and no greater-than-expected changes in freight and raw material costs, foreign currency exchange rates, labor availability, recent consumer trends, world events, or other circumstances beyond the company's control.
FIRST QUARTER 2022 HIGHLIGHTS
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Operating income margin
Net income (loss)
Net income (loss) per diluted share
Refer also to the Reconciliation of Selected Income Statement Information to Adjusted Results for the three-month period ending August 2, 2020, at the back of this presentation.
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