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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
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Date of Report (Date of earliest event reported) May 12, 2003
CULP, INC.
(Exact name of registrant as specified in its charter)
North Carolina 0-12781 56-1001967
(State or other jurisdiction of (Commission File No.) (IRS Employer
incorporation) Identification No.)
101 South Main Street
High Point, North Carolina 27260
(Address of principal executive offices)
(336) 889-5161
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
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Item 7 - Exhibits
Exhibit 99 - Press Release dated May 6, 2003
Item 9 - Regulation FD Disclosure (also disclosing information pursuant to Item
12, Results of Operations and Financial Condition)
On May 6, 2003, the Registrant issued a press release to disclose management's
estimates of its earnings for the fourth quarter of the Registrant's fiscal year
that ended April 27, 2003. The press release is attached hereto as Exhibit 99
and is incorporated herein by reference.
The press release contains management's estimate of earnings per share excluding
restructuring and related charges that will be reported in early June, which is
a non-GAAP performance measure that management believes provides investors with
a more accurate picture of the results of the Registrant's operations for
comparative purposes. In addition, management had earlier expressed an opinion
about analysts' estimates of earnings excluding restructuring and related
charges, and it concluded that it would be useful to investors for management to
update its opinion as of May 6, 2003. Management uses this performance
measurement to assess its progress toward internal operating goals. Also,
earnings per share excluding restructuring and related charges is the
performance measure used internally by the Registrant to set benchmarks to
determine the payment and levels of bonuses for senior management.
Foward Looking Information
This report contains statements that may be deemed "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 27A of the Securities and Exchange Act of 1934). Such
statements are inherently subject to risks and uncertainties. Further,
forward-looking statements are intended to speak only as of the date on which
they are made. Forward-looking statements are statements that include
projections, expectations or beliefs about future events or results or otherwise
are not statements of historical fact. Such statements are often but not always
characterized by qualifying words such as "expect," "believe," "estimate,"
"plan" and "project" and their derivatives, and include but are not limited to
statements about expectations for the company's future operations, production
levels, sales, expenses and other performance measures. Factors that could
influence the matters discussed in such statements include the level of housing
starts and sales of existing homes, consumer confidence, trends in disposable
income, and general economic conditions. Decreases in these economic indicators
could have a negative effect on the company's business and prospects. Likewise,
increases in interest rates, particularly home mortgage rates, and increases in
consumer debt or the general rate of inflation, could affect the company
adversely. Because of the significant percentage of the company's sales derived
from international shipments, strengthening of the U. S. dollar against other
currencies could make the company's products less competitive on the basis of
price in markets outside the United States. Additionally, economic and political
instability in international areas could affect the demand for the company's
products. Other risk factors that could have an impact on the company's
activities in China include uncertainties in connection with operating in a
geographic area and business culture where the company does not have extensive
experience, foreign language barriers, potential delays caused by the distance
between the China operations and the company's traditional geographic base and
similar risks associated with establishing business operations in a remote and
unfamiliar location. Other factors that could affect the matters discussed in
forward-looking statements are included in the company's periodic reports filed
with the Securities and Exchange Commission.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CULP, INC.
(Registrant)
By: Franklin N. Saxon
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Executive Vice President and
Chief Financial Officer
Dated : May 12, 2003
Exhibit Index
Exhibit No. Description of Exhibit
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99 Press Release dated May 6, 2003
Exhibit 99
NEWS RELEASE
Investor Contact: Kathy J. Hardy Media Contact: Kenneth M. Ludwig
Corporate Secretary Senior Vice President,
336-888-6209 Human Resources
336-889-5161
CULP ANNOUNCES PRELIMINARY FOURTH QUARTER 2003 RESULTS
HIGH POINT, NC (May 6, 2003) - Culp, Inc. (NYSE:CFI) today announced that, based
on preliminary information and estimates, it expects earnings for the fourth
fiscal quarter ended April 27, 2003, to be approximately $0.26 to $0.30 per
diluted share. The company will incur approximately $0.04 per diluted share in
restructuring and related charges during the fourth fiscal quarter, which are
related to the previously announced Chattanooga, Tennessee, restructuring
initiative. Excluding these charges, the company expects earnings to be
approximately $0.30 to $0.34 per diluted share. These anticipated results are
lower than the company's previously announced guidance of $0.41 to $0.44 per
diluted share, excluding restructuring and related charges. Final results for
the fourth quarter and fiscal year 2003 will be announced in early June.
Robert G. Culp, III, chairman and chief executive officer of Culp, said, "Like
most companies in our industry, our sales efforts over the past year have been
significantly affected by the overall softness in consumer spending for home
furnishings. Beginning in March, concerns over the Iraqi war created further
challenges for furniture retailers already burdened by a slow economy and
extreme winter weather conditions. As a result, Culp's sales for the fourth
quarter were lower than anticipated.
"In spite of the challenging business conditions, our results for fiscal 2003
will reflect excellent progress in meeting our objectives to strengthen our
balance sheet, increase margins and improve the profitability of our sales mix,"
added Culp. "During the fourth quarter we pre-paid an additional $20 million
in debt and, as a result, we have reduced our long-term debt by over $32 million
in fiscal 2003. Notably, over the past three years we have reduced our debt by a
total of $61 million, and have increased our cash position by $23 million for a
total of $84 million. We believe this is a significant accomplishment during a
difficult period for our industry and provides Culp with a strong foundation and
considerable financial flexibility for the future.
"In addition, we are encouraged by the positive feedback from our customers to
our recently announced initiative to establish manufacturing and distribution
operations in China. While it is difficult to predict when overall market
conditions will improve, we remain confident that Culp has the right strategy in
place to further enhance our competitive position when our sales regain
momentum."
Culp, Inc. is one of the world's largest marketers of upholstery fabrics for
furniture and is a leading marketer of mattress ticking for bedding. The
company's fabrics are used principally in the production of residential and
commercial furniture and bedding products.
This release contains statements that may be deemed "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 27A of the Securities and Exchange Act of 1934). Such
statements are inherently subject to risks and uncertainties. Further,
forward-looking statements are intended to speak only as of the date on which
they are made. Forward-looking statements are statements that include
projections, expectations or beliefs about future events or results or otherwise
are not statements of historical fact. Such statements are often but not always
characterized by qualifying words such as "expect," "believe," "estimate,"
"plan" and "project" and their derivatives, and include but are not limited to
statements about expectations for the company's future operations, production
levels, sales, expenses and other performance measures. Factors that could
influence the matters discussed in such statements include the level of housing
starts and sales of existing homes, consumer confidence, trends in disposable
income, and general economic conditions. Decreases in these economic indicators
could have a negative effect on the company's business and prospects. Likewise,
increases in interest rates, particularly home mortgage rates, and increases in
consumer debt or the general rate of inflation, could affect the company
adversely. Because of the significant percentage of the company's sales derived
from international shipments, strengthening of the U. S. dollar against other
currencies could make the company's products less competitive on the basis of
price in markets outside the United States. Additionally, economic and political
instability in international areas could affect the demand for the company's
products. Other risk factors that could have an impact on the company's
activities in China include uncertainties in connection with operating in a
geographic area and business culture where the company does not have extensive
experience, foreign language barriers, potential delays caused by the distance
between the China operations and the company's traditional geographic base and
similar risks associated with establishing business operations in a remote and
unfamiliar location. Other factors that could affect the matters discussed in
forward-looking statements are included in the company's periodic reports filed
with the Securities and Exchange Commission.
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