UPDATE: Culp Tops Q3 Estimates

reported better-than-expected results for the fiscal third quarter. The High Point, North Carolina-based company posted quarterly net income of $3.8 million, or $0.31 per share, compared to $8.4 million, or $0.68 per share, in the year-ago period. Excluding non-recurring items, the company's adjusted earnings climbed to $0.40 per share from $0.31 per share. Its revenue rose 12.3% to $81.3 million. However, analysts were expecting earnings of $0.35 per share on revenue of $74.13 million. Mattress fabric sales climbed 18.5% to $45.7 million, while upholstery fabric sales gained 5.1% to $35.6 million in the quarter. At the end of the quarter, the company had $37.2 million in cash and cash equivalents and short-term investments. Total debt at the end of the quarter was $2.2 million. During the first nine months of fiscal 2015, Culp purchased 43,014 shares of common stock for $745,000. Frank Saxon, president and chief executive officer of Culp, Inc., said, "Our success to date in 2015 has positioned Culp for another outstanding year of solid sales growth, improving profitability and excellent free cash flow. Importantly, we also have the financial strength to make the capital investments to support our growth strategy as well as to provide added value to shareholders through dividends and share repurchases." Saxon added, "At this time, we expect overall sales to be up 4 percent to 8 percent as compared with the fourth quarter of last fiscal year. For the year, we expect overall fiscal 2015 annual sales to exceed last year's annual sales by approximately 8 percent." Culp shares dropped 0.90% to close at $20.81 today.