Culp, Inc. (NYSE:CULP) Q2 2020 Earnings Conference Call - Final Transcript

Dec 06, 2019 • 11:00 am ET

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Culp, Inc. (NYSE:CULP) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] We will now take our first question from Bobby Griffin of Raymond James. Please go ahead, your line is open.

Analyst
Alfonso Jimenez

Good morning. This is Alfonso Jimenez [Phonetic] on for Bobby Griffin. Thank you for taking our question.

Executive
Franklin N. Saxon

Good morning.

Analyst
Alfonso Jimenez

Good morning. Can you update us on how the hospitality business is performing within the upholstery segment and how the Read Windows product integration is progressing?

Executive
Boyd Chumbley

Yes, this is Boyd. I'd be happy to update you on that. We remain very pleased with the read window products business and the hospitality business overall. We continue to see growth in that segment within our overall approach to fabrics business and when the products in particular of course that acquisition has expanded our product capability to include window products and additional to the fabrics that we were previously to buying into that segment.

So we are very pleased with that and it continues our strategy to become a more full service provider to the hospitality market. So yes, we remain very positive about hospitality in general in lead in particular, we think in both areas of that, we expect to see further growth and I'm very optimistic for that going forward.

Analyst
Alfonso Jimenez

Okay, that's helpful. And then can you talk about what the growth prospects of the Hospitality business look like, from an M&A standpoint?

Executive
Boyd Chumbley

We certainly are continuing to assess if there are other acquisition, candidates available in this area, that's something that we are certainly staying abreast of and focused on.We are continuing to see and evaluate if there is something further there that would make sense for us. We would like to stay focused in that area and see if there is some candidates.

Executive
Franklin N. Saxon

This is Frank, I'll add to that, as we said on earlier calls, we would be very interested in putting more capital to work in this space. We are -- as Boyd said, we're very pleased with the renewed acquisition and the management team and the opportunities that we see there. And definitely interested in M&A opportunities as we look ahead.

Analyst
Alfonso Jimenez

Okay and then lastly from me, what are your expectations for mattress imports in calendar year '20 and are you concerned with the level of mattress imports that have shifted to other countries.

Executive
Iv Culp

This is Iv, really appreciate that question and something that we are checking on pretty much every day and you are right, the volatility and we speak about it in the press release is continuing and while there was a nice boost certainly China imports have reduced into the nice boost to our sales numbers, but looking forward a lot of that business has been relocated to other countries, primarily in Asia or other places.

So it's something we keep an eye on. It's something we definitely are concerned about the domestic market and we'll watch it very closely, but a little bit different for us looking forward on it is, we have got such a great platform really a robust platform