Culp, Inc. (NYSE:CFI) Q4 2019 Earnings Conference Call - Final Transcript

Jun 13, 2019 • 11:00 am ET


Culp, Inc. (NYSE:CFI) Q4 2019 Earnings Conference Call - Final Transcript


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Good day and welcome to the Culp's Fourth Quarter 2019 Earnings Conference Call. Today's call is being recorded.

At this time for opening remarks and introductions, I would like to turn the call over to Ms. Dru Anderson, please go ahead.

Dru Anderson

Thank you. Good morning and welcome to the Culp conference call to review the company's results for the fourth quarter and fiscal 2019.

As we start, let me state that this morning's call will contain forward-looking statements about the business, financial condition and prospects of the company. Forward-looking statements are statements that include projections, expectations or beliefs about future events or results or otherwise are not statements of historical fact. The actual performance of the company could differ materially from that indicated by the forward-looking statements because of various risks and uncertainties. These risks and uncertainties are described in our regular SEC filings, including the company's most recent filings on Form K and Form 10-Q. You are cautioned not to place undue reliance on forward-looking statements made today and each such statement speaks only as of today. We undertake no obligation to update or to revise forward-looking statements.

In addition, during this call, the company will be discussing non-GAAP financial measurement. A reconciliation of these non-GAAP financial measurements to the most directly comparable GAAP financial measurements is included as a schedule to the company's 8-K filed yesterday and posted on the company's website at

A slide presentation with supporting summary financial information and additional performance charts are also available on the website as part of the webcast of today's call.

With respect to certain forward looking free cash flow information, the comparable GAAP and reconciling information is not available without unreasonable effort. And it's significance is similar to the significance of historical free cash flow information, which is available in the company's 8-K filed yesterday and posted on the company's website.

I will now turn the call over to Frank Saxon, Chairman and CEO of Culp. Please go ahead, sir.

Franklin N. Saxon

Good morning and thank you for joining us today. I would like to welcome you to the Culp quarterly conference call with analysts and investors.

With me on the call today is Iv Culp, our President and Chief Operating Officer; Ken Bowling, CFO and Boyd Chumbley President of our Upholstery Fabrics Business, who will be dialing in remotely. I will begin the call with some brief comments, and Ken will then review the financial results for the quarter. I'll then update you on the strategic actions in each of our segments. After that, Ken will review our first quarter fiscal 2020 outlook. We'll then be happy to take your questions.

We faced a number of significant challenges in the fourth quarter, primarily related to global trade disruption and an overall weaker retail environment. There were continuing headwinds associated with the low priced imported mattresses from China and the excess supply of these mattresses disrupted the market and affected many of our customers. The outcome for Culp was reduced demand