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UNITED STATES
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) March 12, 2004
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 9 -- Regulation FD
On March 12, 2004 the registrant issued a press release to disclose an agreement
with Precision Fabrics to distribute flame-resistant fabrics to the bedding
industry. A copy of the press release is attached hereto as Exhibit 99.
Forward Looking Information.
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 sales, gross profit
margins, SG&A or other expenses, and earnings. 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. In
addition, 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. 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: March 12, 2004
Exhibit 99
NEWS RELEASE
Media Contact: Kenneth M. Ludwig
Senior Vice President, Human Resources
336-889-5161
CULP ANNOUNCES AN AGREEMENT WITH PRECISION FABRICS TO DISTRIBUTE
FLAME-RESISTANT FABRICS TO THE BEDDING INDUSTRY
HIGH POINT, NC (March 12, 2004) - Culp, Inc. (NYSE:CFI) today announced that its
Culp Home Fashions division has entered into an agreement with Precision Fabrics
Group to distribute flame-resistant fabrics to Culp's customers in the bedding
industry.
Based in Greensboro, North Carolina, Precision Fabrics Group has been
producing flame-resistant products for 15 years for use in airline seating,
industrial protective apparel and window treatments. After three years of
development, Precision Fabrics Group has recently introduced its SoftGuard TM
MTP line of products for the bedding industry. These fabric products consist of
a proprietary blend of fibers that are treated to provide superior flame
blocking capability. The fabrics are designed to be used between the mattress
foam and the ticking, or beneath "sacrificial" layers of fiber or foam, and can
be used to replace existing fabric and foundation components. When this fabric
is properly integrated into a sleep set, the bedding will meet the State of
California's new open flame mattress flammability standard, currently scheduled
to go into effect on January 1, 2005.
Through this new partnership, Culp will be the exclusive distributor of
SoftGuard TM MTP, marking the first agreement between a mattress ticking
supplier and a producer of flame-resistant fabrics. The Culp sales force has
been extensively trained on the features of SoftGuard TM MTP and will be able to
make specific recommendations to its bedding customers on the appropriate
placement. In addition, Culp plans to devote an entire showroom to the SoftGuard
TM MTP product line at the upcoming International Sleep Products Association
Expo in Indianapolis.
Commenting on the announcement, Robert G. Culp, IV, executive vice
president of Culp Home Fashions, said, "We are very pleased to have this
opportunity to work with Precision Fabrics Group in introducing this important
product line to our bedding customers. As a leading provider of mattress
ticking, we want to help our customers comply with the new safety standards
being imposed on the bedding industry. We believe that adding SoftGuard TM MTP
to Culp's product line complements our mattress ticking offerings and further
enhances our competitive position. We look forward to a successful partnership
for both companies as we distribute SoftGuard TM MTP products on a national
level."
Doug Small, business director for Precision Fabric Group's SoftGuard
Technologies, added, "This partnership with Culp represents a unique opportunity
for Precision Fabrics Group to leverage the success of an established industry
leader and quickly introduce our product to the market. Production of SoftGuard
TM MTP products is already underway at our Greensboro plant and we will have the
ability to meet the bedding industry's foreseeable needs."
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.
Precision Fabrics Group, Inc. ("PFG") is a privately held company
headquartered in Greensboro, North Carolina. The Company develops and
manufactures highly engineered woven and non-woven products for a wide variety
of technical end uses. PFG's products are used primarily in medical, protective
apparel, home furnishing, industrial, military, and consumer product
applications. The Company operates three manufacturing locations in the United
States, and has sales offices in Greensboro and Frankfurt, Germany.
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 sales, gross profit
margins, SG&A or other expenses, and earnings. 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. In
addition, 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. 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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