UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 29, 2023 Commission File No. 1-12597 CULP, INC. (Exact name of registrant as specified in its charter) NORTH CAROLINA 56-1001967 (State or other jurisdiction of incorporation or other organization) 1823 Eastchester Drive | Large accelerated | filer | ☐ | Accelerated | filer | ☐ | | --- | --- | --- | -- ...

Culp, Inc. (NYSE:CULP) Q2 2024 Results Conference Call December 5, 2023 11:00 AM ET Company Participants Dru Anderson - Investor Relations Iv Culp - President and Chief Executive Officer Ken Bowling - Chief Financial Officer Boyd Chumbley - President of Upholstery Fabrics Tommy Bruno - President of Mattress Fabrics Conference Call Participants Budd Bugatch - Water Tower Research Anthony Lebiedzinski - Sidoti Operator Good day. And welcome to the Culp, Inc. Second Quarter Fiscal 2024 Earnings Conference Call ...

Part I - Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Culp, Inc. reported a Q1 FY24 net loss of $3.3 million on $56.7 million net sales, showing improved profitability despite reduced assets and negative operating cash flow [Consolidated Statements of Net Loss](index=3&type=section&id=Consolidated%20Statements%20of%20Net%20Loss) Q1 FY24 saw a 9.5% decrease in net sales, but gross profit increased by 71.6% to $7.1 million, narrowing the net loss to $(3.3) million and improving EPS to $(0.27) Consolidated Statements of Net Loss (Q1 FY24 vs Q1 FY23) | Metric | Three Months Ended July 30, 2023 (in thousands) | Three Months Ended July 31, 2022 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Net sales | $56,662 | $62,604 | -9.5% | | Gross profit | $7,085 | $4,128 | +71.6% | | Loss from operations | $(3,082) | $(4,738) | -35.0% | | Net loss | $(3,342) | $(5,699) | -41.4% | | Net loss per share - diluted | $(0.27) | $(0.47) | -42.6% | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of July 30, 2023, total assets decreased to $142.9 million, primarily due to reduced inventories, while total liabilities and shareholders' equity also declined Key Balance Sheet Items (in thousands) | Account | July 30, 2023 | July 31, 2022 | April 30, 2023 | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $16,812 | $18,874 | $20,964 | | Inventories | $43,817 | $63,749 | $45,080 | | Total current assets | $88,064 | $112,073 | $95,516 | | Total assets | $142,902 | $180,490 | $152,183 | | Total current liabilities | $38,251 | $41,682 | $44,020 | | Total liabilities | $56,785 | $66,495 | $63,103 | | Total shareholders' equity | $86,117 | $113,995 | $89,080 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 FY24 saw $4.4 million cash used in operating activities, a reversal from prior year, with investing activities providing $0.4 million, resulting in a $4.2 million decrease in cash Cash Flow Summary (in thousands) | Activity | Three Months Ended July 30, 2023 | Three Months Ended July 31, 2022 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(4,435) | $5,309 | | Net cash provided by (used in) investing activities | $374 | $(758) | | Net cash used in financing activities | $0 | $(161) | | (Decrease) increase in cash and cash equivalents | $(4,152) | $4,324 | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue by segment, significant inventory reduction, upholstery fabrics restructuring, credit facility status, and a full valuation allowance on U.S. deferred tax assets - The company's operations are classified into two segments: **mattress fabrics** and **upholstery fabrics**. Revenue is primarily recognized from the sale of products at a point in time[32](index=32&type=chunk)[34](index=34&type=chunk) - In Q1 FY24, the company initiated a restructuring to discontinue the production of upholstery cut and sew kits in Haiti, resulting in a total charge of **$517,000**, comprising **$338,000** in restructuring expenses and **$179,000** in inventory markdowns recorded in cost of sales[62](index=62&type=chunk)[63](index=63&type=chunk) - As of July 30, 2023, the company had a **$35.0 million** asset-based revolving credit facility with **no outstanding borrowings** and **$25.5 million** in available borrowing capacity[67](index=67&type=chunk)[76](index=76&type=chunk) - Due to a recent history of significant cumulative U.S. pre-tax losses, the company maintained a **full valuation allowance of $19.6 million** against its U.S. net deferred income tax assets as of July 30, 2023[108](index=108&type=chunk)[109](index=109&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 FY24 sales decline to industry softness, improving operating loss to $(3.1) million, and maintains solid liquidity despite negative operating cash flow Overall Results of Operations (in thousands) | Metric | Q1 FY2024 | Q1 FY2023 | Change | | :--- | :--- | :--- | :--- | | Net sales | $56,662 | $62,604 | (9.5)% | | Gross profit | $7,085 | $4,128 | 71.6% | | Gross margin | 12.5% | 6.6% | +591bp | | Loss from operations | $(3,082) | $(4,738) | (35.0)% | | Net loss | $(3,342) | $(5,699) | (41.4)% | - The decrease in net sales was driven by a **17.4% decline** in the upholstery fabrics segment, while the mattress fabrics segment's sales were nearly flat (**-0.5%**)[160](index=160&type=chunk) - Cash and cash equivalents decreased by **$4.2 million** during the quarter to **$16.8 million**, primarily due to **$4.4 million** in cash used for operating activities[171](index=171&type=chunk) [Segment Analysis](index=45&type=section&id=Segment%20Analysis) Mattress Fabrics improved profitability with operating loss narrowing to $(1.4) million despite flat sales, while Upholstery Fabrics' sales declined 17.4% but operating income more than doubled to $1.3 million Segment Performance (in thousands) | Segment | Metric | Q1 FY2024 | Q1 FY2023 | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Mattress Fabrics** | Net Sales | $29,222 | $29,371 | (0.5)% | | | Loss from Operations | $(1,398) | $(2,921) | (52.1)% | | **Upholstery Fabrics** | Net Sales | $27,440 | $33,233 | (17.4)% | | | Income from Operations | $1,328 | $542 | 145.0% | [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) The company ended Q1 FY24 with $16.8 million cash and $31.1 million available credit, no outstanding borrowings, and a significant inventory reduction, with no stock repurchases or dividends expected - The company believes its current cash of **$16.8 million** and available credit of **$31.1 million** are sufficient to fund foreseeable business needs[238](index=238&type=chunk) - Inventory decreased significantly by **$19.9 million (31.3%)** compared to the prior year, reflecting management's efforts to align stock levels with demand and promotional programs[252](index=252&type=chunk) - The company did not repurchase any shares in Q1 FY24 and has **$3.2 million** remaining under its authorization. No repurchases are expected through at least Q2 FY24[246](index=246&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=63&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces minimal interest rate risk due to no outstanding borrowings and manages foreign currency risk from Canadian and Chinese subsidiaries with no material impact expected - The company is exposed to interest rate risk on its U.S. revolving credit facility, which is based on the SOFR rate. As of July 30, 2023, there were **no outstanding borrowings**[271](index=271&type=chunk)[272](index=272&type=chunk) - Foreign currency risk exists for subsidiaries in Canada and China. The company uses the U.S. dollar as the functional currency for these operations and believes a **10% change** in exchange rates would not materially affect results[274](index=274&type=chunk) [Controls and Procedures](index=63&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded disclosure controls were effective as of July 30, 2023, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of July 30, 2023[275](index=275&type=chunk) - No changes occurred during the quarter that have **materially affected**, or are reasonably likely to materially affect, the company's internal control over financial reporting[276](index=276&type=chunk) Part II - Other Information [Legal Proceedings](index=64&type=section&id=Item%201.%20Legal%20Proceedings) No material changes to legal proceedings were reported for the three months ended July 30, 2023, compared to the prior Annual Report - No **material changes** to legal proceedings were reported for the quarter[278](index=278&type=chunk) [Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported for the three months ended July 30, 2023, compared to the prior Annual Report - No **material changes** to risk factors were reported for the quarter[279](index=279&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any equity securities in Q1 FY24, with approximately $3.2 million remaining available for future repurchases Issuer Purchases of Equity Securities | Period | Total Number of Shares Purchased | Approximate Dollar Value of Shares that May Yet Be Purchased | | :--- | :--- | :--- | | May 1, 2023 to July 30, 2023 | 0 | $3,248,094 | [Exhibits](index=65&type=section&id=Item%206.%20Exhibits) The report includes various exhibits, notably CEO and CFO certifications and Inline XBRL data files - Exhibits filed with the report include CEO and CFO certifications (**31.1, 31.2, 32.1, 32.2**) and the Cover Page Interactive Data File (**104**)[283](index=283&type=chunk)[285](index=285&type=chunk)

CHIP 2 This presentation contains "forward-looking statements" within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934). Such statements are inherently subject to risks and uncertainties that may cause actual events and results to differ materially from such statements. Further, forward looking statements are intended to speak only as of the date on ...

Culp, Inc. (NYSE:CULP) Q1 2024 Earnings Conference Call August 31, 2023 11:00 AM ET Company Participants Dru Anderson - IR Robert Culp - President & CEO Ken Bowling - CFO Tommy Bruno - President, Mattress Fabrics Boyd Chumbley - President, Upholstery Fabrics Conference Call Participants Anthony Lebiedzinski - Sidoti & Company Budd Bugatch - Water Tower Research Operator Good morning, and welcome to the Culp, Inc. First Quarter Fiscal 2024 Earnings Conference Call. [Operator Instructions] Please note, this e ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 1O-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended April 30, 2023 Commission File No. 1-12597 1823 Eastchester Drive, High Point, North Carolina (Address of principal executive offices) 27265 (zip code) (336) 889-5161 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: connection with its Annual Meeting of S ...

This presentation contains adjusted income statement information for the three-month period ending April 30, 2023, which discloses adjusted loss from operations, a non-GAAP performance measure that eliminates items which are not expected to occur on a recurring or regular basis. These include, for the period presented, restructuring expense associated with the consolidation of certain leased facilities in Ouanaminthe, Haiti, during the fourth quarter of fiscal 2023. The company has included this adjusted in ...

Culp, Inc. (NYSE:CULP) Q4 2023 Earnings Conference Call June 29, 2023 11:00 AM ET Company Participants Dru Anderson - IR Iv Culp - President & CEO Ken Bowling - CFO Tommy Bruno - President, Mattress Fabrics Boyd Chumbley - President, Upholstery Fabrics Conference Call Participants Anthony Lebiedzinski - Sidoti & Company Rexford Henderson - Water Tower Research Operator Good day, and welcome to the Culp, Inc. Fourth Quarter Fiscal 2023 Earnings Conference Call. All participants will be in listen-only mode. [ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 29, 2023 Commission File No. 1-12597 CULP, INC. (Exact name of registrant as specified in its charter) NORTH CAROLINA 56-1001967 (State or other jurisdiction of incorporation or other organization) 1823 Eastchester Drive High Point, North Carolina 27265-1402 (Address of principal executive offices) (zi ...

Culp, Inc. (NYSE:CULP) Q3 2023 Earnings Conference Call March 2, 2023 11:00 AM ET Company Participants Dru Anderson - Investor Relations Iv Culp - President and Chief Executive Officer Ken Bowling - Chief Financial Officer Boyd Chumbley - President, Upholstery Fabrics Conference Call Participants Anthony Lebiedzinski - Sidoti & Company Rexford Henderson - Water Tower Research Operator Good morning, and welcome to the Culp, Inc. Third Quarter Fiscal Year 2023 Earnings Conference Call. All participants will b ...