SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
SCHEDULE 13D
(RULE 13D-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULES 13d-1(a) AND AMENDMENTS THERETO FILED
PURSUANT TO RULE 13d-2(a)
(Amendment No. ___)(1)
CULP INC.
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(Name of Issuer)
COMMON STOCK
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(TITLE OF CLASS OF SECURITIES)
230215105
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(CUSIP NUMBER)
PRAESIDIUM INVESTMENT MANAGEMENT COMPANY, LLC
747 THIRD AVENUE, 35TH FLOOR
NEW YORK, NY 10017
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(NAME, ADDRESS AND TELEPHONE NUMBER OF PERSON AUTHORIZED
TO RECEIVE NOTICE AND COMMUNICATIONS)
MAY 13, 2005
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(Date of Event Which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G
to report the acquisition that is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the
following box.
Note: Schedules filed in paper format shall include a signed original and five
copies of the Schedule, including all exhibits. SEE Rule 13d-7(b) for other
parties to whom copies are to be sent.
CUSIP No. 230215105 13D Page 2 of 9 Pages
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1.
NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Praesidium Investment Management Company, LLC
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2.
CHECK THE APPROPRIATE BOX IF A GROUP* (a) |X|
(b)
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3. SEC USE ONLY
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4.
SOURCES OF FUNDS
OO (Funds from Investment Advisory Clients).
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5.
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) OR 2(e)
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6.
CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF 7.
SHARES SOLE VOTING POWER 607,053
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BENEFICIALLY 8.
OWNED BY SHARED VOTING POWER 0
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EACH 9.
REPORTING SOLE DISPOSITIVE POWER 607,053
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PERSON WITH 10.
SHARED DISPOSITIVE POWER 0
----- ------------------------------------------------------
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11.
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 607,053
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12.
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES *
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13.
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 5.26%
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14.
TYPE OF REPORTING PERSON*
IA
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* SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 230215105 13D Page 3 of 9 Pages
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1.
NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Praesidium Partners Fund, LP
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2.
CHECK THE APPROPRIATE BOX IF A GROUP* (a) |X|
(b)
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3. SEC USE ONLY
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4.
SOURCES OF FUNDS
WC
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5.
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e)
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6.
CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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- ------------------- ----- ------------------------------------------------------
NUMBER OF 7.
SHARES SOLE VOTING POWER 43,336
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BENEFICIALLY 8.
OWNED BY SHARED VOTING POWER 0
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EACH 9.
REPORTING SOLE DISPOSITIVE POWER 43,336
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PERSON WITH 10.
SHARED DISPOSITIVE POWER 0
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11.
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 43,336
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12.
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES *
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13.
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 .38%
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14.
TYPE OF REPORTING PERSON*
PN
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* SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 230215105 13D Page 4 of 9 Pages
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1.
NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Praesidium Partners QP Fund, LP
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2.
CHECK THE APPROPRIATE BOX IF A GROUP* (a) |X|
(b)
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3. SEC USE ONLY
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4.
SOURCES OF FUNDS
WC
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5.
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e)
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6.
CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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- ------------------- ----- ------------------------------------------------------
NUMBER OF 7.
SHARES SOLE VOTING POWER 301,967
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BENEFICIALLY 8.
OWNED BY SHARED VOTING POWER 0
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EACH 9.
REPORTING SOLE DISPOSITIVE POWER 301,967
----- ------------------------------------------------------
PERSON WITH 10.
SHARED DISPOSITIVE POWER 0
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11.
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 301,967
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12.
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES *
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13.
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 2.61 %
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14.
TYPE OF REPORTING PERSON*
PN
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* SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 230215105 13D Page 5 of 9 Pages
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1.
NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Praesidium Offshore Master Fund, Ltd.
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2.
CHECK THE APPROPRIATE BOX IF A GROUP* (a) |X|
(b)
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3. SEC USE ONLY
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4.
SOURCES OF FUNDS
WC
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5.
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEM 2(d) OR 2(e)
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6.
CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
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NUMBER OF 7.
SHARES SOLE VOTING POWER 261,750
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BENEFICIALLY 8.
OWNED BY SHARED VOTING POWER 0
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EACH 9.
REPORTING SOLE DISPOSITIVE POWER 261,750
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PERSON WITH 10.
SHARED DISPOSITIVE POWER 0
----- ------------------------------------------------------
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11.
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 261,750
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12.
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES *
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13.
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 11 2.27%
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14.
TYPE OF REPORTING PERSON*
C0
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* SEE INSTRUCTIONS BEFORE FILLING OUT!
CUSIP No. 230215105 13D Page 6 of 9 Pages
ITEM 1 SECURITY AND ISSUER
This Schedule 13D relates to the common stock, par value $0.05 per
share ("Common Stock"), of Culp Inc., a North Carolina corporation (the
"Issuer"). The address of the principal executive offices of the Issuer is 101
S. Main Street, High Point, NC 27261.
ITEM 2 IDENTITY AND BACKGROUND
(a) The names of the persons filing this Schedule 13D (the "Schedule") are
Praesidium Investment Management Company, LLC (the "Investment Manager"),
Praesidium Partners Fund, LP ("Partners"); Praesidium Partners QP Fund, LP
("Partners QP"); and Praesidium Offshore Master Fund, Ltd. ("International" and,
together with Partners and Partners QP, the "Funds"). (Such entities are
collectively referred to herein as the "Reporting Persons").
The Investment Manager, in its capacity as investment manager of the
Funds, has sole power to vote and dispose of the shares of Common Stock owned by
the Funds. The Investment Manager disclaims any economic interest in or
beneficial ownership of the Shares covered by this Statement.
(b) The business address of the Reporting Persons is 747 Third Avenue,
35th Floor, New York, New York 10017
(c) This Schedule is filed on behalf of the Investment Manager and the
Funds. Each of the Fund's is the record and direct beneficial owner of the
shares of Common Stock reported herein. The Investment Manager is the investment
manager to each Fund. The principal business of the Investment Manager is
purchasing, holding and selling securities for investment purposes. The
principal business of each of the Fund's is to invest in securities.
(d) During the past five years none of the Reporting Persons has been
convicted in a criminal proceeding.
(e) During the past five years none of the Reporting Persons has been a
party to a civil proceeding as a result of which it is subject to a judgment,
decree or final order enjoining it from or mandating activities subject to
federal or state securities laws, or finding it in violation of such laws.
(f) All of the Reporting Persons other than International were
organized under the laws of Delaware, USA. International was organized under the
laws of Cayman.
ITEM 3 SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
Each Fund acquired their respective shares, as set forth herein, in
open market transactions for an aggregate purchase price of approximately
$3,898,000 using working capital.
ITEM 4 PURPOSE OF TRANSACTION
The Reporting Persons have acquired the shares of Common Stock for
investment purposes. The Reporting Persons from time to time intend to review
their investment in the Issuer on the basis of
CUSIP No. 230215105 13D Page 7 of 9 Pages
various factors, including the Issuer's business, financial condition, results
of operations and prospects, general economic and industry conditions, the
securities markets in general and those for the Issuer's stock in particular, as
well as other developments and other investment opportunities. Based upon such
review, the Reporting Persons will take such actions in the future as the
Reporting Persons may deem appropriate in light of the circumstances existing,
from time to time, which may include further acquisitions of shares of Common
Stock or disposal of some or all of the shares of Common Stock currently owned
by the Reporting Persons or otherwise acquired by the Reporting Persons.
In addition, the Reporting Persons may engage in communications with
one or more shareholders, officers or directors of the Issuer, including
discussions regarding the Issuer's operations and strategic direction that, if
effected, could result in, among other things: (a) the acquisition by the
Reporting Persons of additional securities of the Issuer, or the disposition of
securities of the Issuer; (b) an extraordinary corporate transaction, such as a
merger, reorganization or liquidation, involving the Issuer or any of its
subsidiaries; (c) a sale or transfer of a material amount of assets of the
Issuer or any of its subsidiaries; (d) any change in the present board of
directors or management of the Issuer, including any plans or proposals to
change the number or term of directors or to fill any vacancies on the board;
(e) any material change in the present capitalization or dividend policy of the
Issuer; (f) any other material change in the Issuer's business or corporate
structure; (g) changes in the Issuer's charter, by-laws or instruments
corresponding thereto or other actions which may impede the acquisition of
control of the Issuer by any person; (h) causing a class of securities of the
Issuer to be delisted from a national securities exchange or to cease to be
authorized to be quoted in an interdealer quotation system of a registered
national securities association; (i) a class of equity securities of the issuer
becoming eligible for termination of registration pursuant to Section 12(g)(4)
of the Act; or (j) any action similar to any of those enumerated above. Except
to the extent that the foregoing may be deemed to be a plan or proposal, none of
the Reporting Persons currently has any plans or proposals that relate to or
would result in any of the actions specified in clause (a) through (j) of Item 4
of Schedule 13D. The Reporting Persons reserve the right, based on all relevant
factors and subject to applicable law, at any time and from time to time, to
review or reconsider their position, change their purpose, take other actions
(including actions that could involve one or more of the types of transactions
or have one or more of the results described in paragraphs (a) through (j) of
Item 4 of the Schedule 13D) or formulate and implement plans or proposal with
respect to any of the foregoing.
ITEM 5 INTEREST IN SECURITIES OF THE ISSUER
(a)-(b) The Reporting Persons may be deemed, for purposes of Rule 13d-3
under the Securities Exchange Act of 1934, as amended, to be the beneficial
owner of an aggregate of 607,053 Shares of Common Stock, which represent 5.26%
of the Issuer's outstanding shares of Common Stock. The percentage calculation
was based on the number of Shares the Issuer reported as outstanding on its
Quarterly Report on Form 10-Q for the period ended January 30, 2005 as filed
with the Commission on March 10, 2005.
CUSIP No. 230215105 13D Page 8 of 9 Pages
Sole Voting Shared Sole Shared
Power Voting Dispositive Dispositive
Power Power Power
------------- ------------ --------------- -------------
Praesidium Investment Management Company, LLC 607,053 0 607,053 0
Praesidium Partners Fund, LP 43,336 0 43,336 0
Praesidium Partners QP Fund, LP 301,967 0 301,967 0
Praesidium Offshore Master Fund, Ltd. 261,750 0 261,750 0
The aggregate amount of shares owned by the Reporting Persons is 607,053.
(c) Except as set forth below, there have been no transactions in the
Common Stock by any of the Reporting Persons during the past sixty days.
During the past sixty days, the Reporting Persons effected the
following purchases of shares of Common Stock in open market transactions:
- --------------------- ------------------ ------------------- ------------------ ------------------- ------------------
Date Price Investment Manager Partners Partners QP International
- --------------------- ------------------ ------------------- ------------------ ------------------- ------------------
- --------------------- ------------------ ------------------- ------------------ ------------------- ------------------
4/28/05 $4.76 0 714 4,974 4,312
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- --------------------- ------------------ ------------------- ------------------ ------------------- ------------------
5/2/05 $4.74 0 714 4,974 4,312
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5/3/05 $4.74 0 850 5,919 5,131
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5/4/05 $4.85 0 6,875 47,902 41,523
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5/4/05 $5.03 0 814 5,671 4,915
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5/5/05 $4.99 0 792 5,522 4,786
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- --------------------- ------------------ ------------------- ------------------ ------------------- ------------------
5/6/05 $4.77 0 36 248 216
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5/9/05 $4.65 0 443 3,084 2,673
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- --------------------- ------------------ ------------------- ------------------ ------------------- ------------------
5/10/05 $4.64 0 928 6,467 5,605
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- --------------------- ------------------ ------------------- ------------------ ------------------- ------------------
5/11/05 $4.49 0 750 5,223 4,527
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- --------------------- ------------------ ------------------- ------------------ ------------------- ------------------
5/12/05 $4.39 0 1,071 7,461 6,468
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- --------------------- ------------------ ------------------- ------------------ ------------------- ------------------
5/13/05 $4.23 0 1,806 12,585 10,909
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- --------------------- ------------------ ------------------- ------------------ ------------------- ------------------
5/16/05 $4.18 0 236 1,641 1,423
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- --------------------- ------------------ ------------------- ------------------ ------------------- ------------------
5/17/05 $4.12 0 314 2,189 1,897
- --------------------- ------------------ ------------------- ------------------ ------------------- ------------------
(d) - (e): Not applicable.
ITEM 6 CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER None.
ITEM 7 MATERIAL TO BE FILED AS EXHIBITS
Joint Filing Agreement, dated as of May 20, 2005, by and among
Praesidium Investment Management Company, LLC, Praesidium Partners Fund, LP,
Praesidium Partners QP Fund, LP, and Praesidium Offshore Master Fund, Ltd.
CUSIP No. 230215105 13D Page 9 of 9 Pages
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
MAY 23, 2005
--------------------
Dated
/S/ KEVIN ORAM
--------------------
Signature
KEVIN ORAM
--------------------
Name/Title
As authorized signatory for each of
Praesidium Investment Management
Company, LLC, Praesidium Partners Fund,
LP, Praesidium Partners QP, LP and
Praesidium Offshore Master Fund, Ltd.
The original statement shall be signed by each person on whose behalf
the statement is filed or his authorized representative. If the statement is
signed on behalf of a person by his authorized representative other than an
executive officer or general partner of the filing person, evidence of the
representative's authority to sign on behalf of such person shall be filed with
the statement, provided, however, that a power of attorney for this purpose
which is already on file with the Commission may be incorporated by reference.
The name and any title of each person who signs the statement shall be typed or
printed beneath his signature.
NOTE: Schedules filed in paper format shall include a signed original
and five copies of the schedule, including all exhibits. SEE ss.240.13d-7 for
other parties for whom copies are to be sent.
INDEX TO EXHIBITS
Exhibit 1 Joint Filing Agreement dated as of May 20, 2005, by and
among Praesidium Investment Management Company, LLC,
Praesidium Partners Fund, LP, Praesidium Partners QP Fund, LP,
and Praesidium Offshore Master Fund, Ltd.
EXHIBIT 1
JOINT FILING AGREEMENT
In accordance with Rule 13d-1(k) promulgated under the Securities Exchange
Act of 1934, as amended, the persons named below agree to the joint filing on
behalf of each of them a Statement on Schedule 13D (including amendments
thereto) with regard to the common stock of Culp Inc., and further agree that
this Joint Filing Agreement be included as an Exhibit to such joint filings. In
evidence thereof, the undersigned, being duly authorized, hereby execute this
Agreement as of May 20, 2005
PRAESIDIUM INVESTMENT MANAGEMENT COMPANY, LLC
By: /S/ KEVIN ORAM
--------------------------------------------
Name: Kevin Oram
Title: Managing Member
PRAESIDIUM PARTNERS FUND, LP
By: Praesidium Advisors, LLC, its general partner
By: /S/ KEVIN ORAM
--------------------------------------------
Name: Kevin Oram
Title: Managing Member
PRAESIDIUM PARTNERS QP FUND, LP
By Praesidium Advisors, LLC, its general partner
By: /S/ KEVIN ORAM
--------------------------------------------
Name: Kevin Oram
Title: Managing Member
PRAESIDIUM OFFSHORE MASTER FUND, LTD.
By: /S/ KEVIN ORAM
--------------------------------------------
Name: Kevin Oram
Title: Director
(1) The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, SEE the
NOTES).