Improvement in Gross Profit and Operating Income
Achieved substantial double-digit improvement in both gross profit and operating income lines during the quarter, attributed to streamlined bedding segment. Gross profit increased by 530 basis points to 14.3% from 9% in the prior year.
Successful Restructuring in Bedding Segment
Implemented effective restructuring of the Culp Home Fashions mattress fabrics business into the bedding segment, resulting in double-digit gross margins compared to negative gross profit in the prior year period.
Free Cash Flow and Debt Management
Generated a positive free cash flow of $311,000 for the quarter and maintained a stable net debt position of $7.1 million.
Cost and Efficiency Enhancements
Projected to generate at least $6 million in annualized cost and efficiency enhancements from restructuring and integration initiatives, in addition to $10 million to $11 million of annualized benefits from previous restructuring.