Data Center Poll: Operators Cite Higher-Efficiency Cooling Systems as Top Strategy for Reducing Power Consumption
AUSTIN, Texas--(BUSINESS WIRE)-- Infinitum today announced poll results from the GBI Better Buildings: Data Centers Seminar, an event bringing data center leaders together to discuss strategies to improve sustainability and resilience at a time of unprecedented demand.
With U.S. power consumption from data centers expected to nearly double by decade's end, there is growing urgency to optimize energy consumption and increase operational efficiency.
According to Infinitum's poll results, 70% of respondents have an initiative to reduce or optimize data center power consumption, and implementing cooling equipment with higher-efficiency motors or fan systems is the top strategy to support this goal. Cost savings, reducing strain on the electric grid and the reallocation of power for revenue-generating workloads are the top three reasons data centers are optimizing power consumption.
Cooling systems currently consume roughly 30% of the total power usage within a data center, according to Science Direct. With U.S. power consumption from data centers expected to nearly double by decade's end, there is growing urgency to optimize energy consumption and increase operational efficiency. This is especially critical in order to meet the growth in AI workloads, which are projected to represent 50% to 70% of data center demand by 2030.
Event speakers outlined innovative cooling approaches, such as ultra-efficient chillers employing advanced motors, as well as waterless cooling and air-cooled heat rejection strategies that support mixed and variable rack densities across the same row, offering flexibility as demand shifts.
Speakers also discussed adapting to power availability by rethinking data center design and location, including sourcing 100% renewable energy, leveraging natural gas or considering secondary and emerging markets where energy is more available or affordable.
'The poll results confirm what we're hearing across the industry — power optimization is now a strategic lever for data centers,' said Anthony Lou, Director of Mission Critical Systems for Infinitum. 'As the AI revolution marches on and power consumption from data centers nearly doubling over the next decade, efficiency isn't just an option — it's essential for resilience, profitability and sustainability.'
To learn more about how Infinitum's advanced, high-efficiency motor systems are helping data centers optimize power consumption, click here.
About Infinitum
Infinitum has raised the bar for a new generation of motor that is better for the planet and people. The company's patented air-core motors offer superior performance in half the weight and size, at a fraction of the carbon footprint of traditional motors, making them pound for pound the most efficient in the world. Infinitum motors open up sustainable design possibilities for the machines we rely on to be smaller, lighter and quieter, improving our quality of life while also saving energy and reducing waste. Based in Austin, Texas, Infinitum is led by a team of industry experts and pioneers. To learn more, visit goinfinitum.com.
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The Company anticipates year-over-year sales growth in its mattress fabrics business and for the sales pressure on the residential side of its upholstery business to continue. The cost and efficiency benefits of the recently completed restructuring plan are expected to continue to drive meaningful operating improvement as the year progresses, particularly as the Company moves beyond the tariff-related sales and margin pressure impacting the first quarter. In addition, the fiscal 2026 division integration initiative and related facility consolidation activity, along with tariff-related price increases, should further bolster operating performance, particularly as the Company progresses beyond the first quarter. While the Company intends to continue utilizing borrowings as necessary under its domestic and foreign credit facilities during fiscal 2026 in connection with funding working capital needs and growth, integration and efficiency initiatives, it will continue to aggressively manage liquidity and capital expenditures and prioritize free cash flow. The Company's expectations are based on information available at the time of this press release and reflect certain assumptions by management regarding the Company's business and industry trends, the projected impact of restructuring and integration initiatives, and ongoing tariff and market headwinds. The Company's expectations also assume no further meaningful impacts from tariffs and trade negotiations. Conference Call Culp, Inc. will hold a conference call to discuss financial results for the fourth quarter and full fiscal year 2025 on Thursday, June 26, 2025, at 9:00 a.m. Eastern Time. A live webcast of this call can be accessed on the 'Upcoming Events' section on the 'Investor Relations' page of the Company's website, A replay of the webcast will be available for 30 days under the 'Past Events' section on the 'Investor Relations' page of the Company's website. About the Company Culp, Inc. is one of the largest marketers of mattress fabrics for bedding and upholstery fabrics for residential and commercial furniture in North America. The Company markets a variety of fabrics to its global customer base of leading bedding and furniture companies, including fabrics produced at Culp's manufacturing facilities and fabrics sourced through other suppliers. Culp has manufacturing and sourcing capabilities located in the United States, China, Haiti, Turkey, and Vietnam. Forward Looking Statements This release contains '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 21E of the Securities and Exchange Act of 1934). Such statements are inherently subject to risks and uncertainties that may cause actual events and results to differ materially from such statements. 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,' 'will,' 'may,' 'should,' 'could,' 'potential,' 'continue,' 'target,' 'predict', 'seek,' 'anticipate,' 'estimate,' 'intend,' 'plan,' 'project,' and their derivatives, and include but are not limited to statements about expectations, projections, or trends for our future operations, strategic initiatives and plans, restructuring and integration actions, production levels, new product launches, sales, profit margins, profitability, operating (loss) income, capital expenditures, working capital levels, cost savings (including, without limitation, anticipated cost savings from restructuring and integration actions), income taxes, SG&A or other expenses, pre-tax (loss) income, earnings, cash flow, and other performance or liquidity measures, as well as any statements regarding dividends, share repurchases, liquidity, use of cash and cash requirements, ending cash balances and cash positions, borrowing capacity, investments, potential acquisitions, cash and non-cash restructuring and restructuring-related charges, expenses, and/or credits, net proceeds from restructuring related asset dispositions, future economic or industry trends, public health epidemics, or future developments. There can be no assurance that we will realize these expectations or meet our guidance, or that these beliefs will prove correct. Factors that could influence the matters discussed in such statements include the level of housing starts and sales of existing homes, demand for home furnishings products, consumer confidence, trends in disposable income, and general economic conditions. Decreases in these economic indicators could have a negative effect on our 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 us adversely. The future performance of our business depends in part on our success in conducting and finalizing acquisition negotiations and integrating acquired businesses into our existing operations. Changes in consumer tastes or preferences toward products not produced by us could erode demand for our products. Changes in tariffs or trade policy, including changes in U.S. trade enforcement priorities, or changes in the value of the U.S. dollar versus other currencies, could affect our financial results because a significant portion of our operations are located outside the United States. Strengthening of the U.S. dollar against other currencies could make our products less competitive on the basis of price in markets outside the United States, and strengthening of currency in China can have a negative impact on our sales of products produced there. In addition, because our foreign operations use the U.S. dollar as their functional currency, changes in the exchange rate between the local currency of those operations and the U.S dollar can affect our reported profits from those foreign operations. Also, economic or political instability in international areas could affect our operations or sources of goods in those areas, as well as demand for our products in international markets. The impact of public health epidemics on employees, customers, suppliers, and the global economy, such as the coronavirus pandemic, could also adversely affect our operations and financial performance. In addition, the impact of potential asset impairments, including impairments of property, plant, and equipment, inventory, or intangible assets, as well as the impact of valuation allowances applied against our net deferred income tax assets, could affect our financial results. Increases in freight costs, labor costs, and raw material prices, including increases in market prices for petrochemical products, can also significantly affect the prices we pay for shipping, labor, and raw materials, respectively, and in turn, increase our operating costs and decrease our profitability. Also, our success in diversifying our supply chain with reliable partners to effectively service our global platform could affect our operations and adversely affect our financial results. Finally, the future performance of our business also depends on our ability to successfully restructure our mattress fabric operations and return the segment to profitability as well as successfully integrate our mattress fabrics and upholstery fabrics segments and realize the expected benefits of that integration effort, which may not meet our expectations. Further information about these factors, as well as other factors that could affect our future operations or financial results and the matters discussed in forward-looking statements, is included in Item 1A 'Risk Factors' in our most recent Form 10-K and Form 10-Q reports filed with the Securities and Exchange Commission. Many of these factors are macroeconomic in nature and are, therefore, beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results, performance or achievements may vary materially from those described in this release as anticipated, believed, estimated, expected, intended, planned or projected. The forward-looking statements included in this release are made only as of the date of this report. Unless required by United States federal securities laws, we neither intend nor assume any obligation to update these forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Additional risks and uncertainties that we do not presently know about or that we currently consider to be immaterial may also affect our business operations or financial results. Notes (1) See page 15 for a Reconciliation of Selected Income Statement Information to Adjusted Results for the three months ending April 27, 2025, and April 28, 2024. (2) See page 17 for a Summary of Restructuring Expense for the three months ending April 27, 2025, and April 28, 2024. Expand CULP, INC. 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Expand CULP, INC. SUMMARY OF CASH AND DEBT APRIL 27, 2025, AND APRIL 28, 2024 Unaudited (Amounts in Thousands) Amounts April 27, April 28, 2025 2024* Cash: Cash and cash equivalents $ 5,629 $ 10,012 Less Debt: Lines of credit - current 8,114 — Lines of credit - long-term 4,600 — Net (debt) cash position $ (7,085 ) $ 10,012 * Derived from audited financial statements. Expand CULP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE TWELVE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024 Unaudited (Amounts in Thousands) TWELVE MONTHS ENDED Amounts April 27, April 28, 2025 2024* Cash flows from operating activities: Net loss $ (19,103 ) $ (13,819 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 5,440 6,521 Non-cash inventory credit (2,423 ) (1,628 ) Amortization 405 390 Stock-based compensation 650 915 Deferred income taxes (1,343 ) 387 Gain on sale of equipment (27 ) (299 ) Non-cash restructuring expense 2,708 330 Foreign currency exchange gain (145 ) (593 ) Changes in assets and liabilities: Accounts receivable (722 ) 3,559 Inventories (2,059 ) 1,593 Other current assets 384 (329 ) Other assets 114 (115 ) Accounts payable - trade 1,852 (2,926 ) Deferred revenue (1,073 ) 303 Accrued restructuring 633 — Accrued expenses and deferred compensation (2,456 ) (1,870 ) Income taxes (485 ) (643 ) Net cash used in operating activities (17,650 ) (8,224 ) Cash flows from investing activities: Capital expenditures (2,947 ) (3,711 ) Proceeds from the sale of property, plant and equipment 1,945 385 Proceeds from note receivable 610 330 Proceeds from the sale of investments (rabbi trust) 1,725 1,449 Purchase of investments (rabbi trust) (735 ) (884 ) Net cash provided by (used in) investing activities 598 (2,431 ) Cash flows from financing activities: Proceeds from lines of credit 21,648 4,166 Payments on lines of credit (8,907 ) (4,146 ) Common stock surrendered for withholding taxes payable (68 ) (146 ) Net cash provided by (used in) financing activities 12,673 (126 ) Effect of foreign currency exchange rate changes on cash and cash equivalents (4 ) (171 ) Decrease in cash and cash equivalents (4,383 ) (10,952 ) Cash and cash equivalents at beginning of year 10,012 20,964 Cash and cash equivalents at end of year $ 5,629 $ 10,012 Free Cash Flow (1) $ (17,056 ) $ (10,826 ) (1) See next page for Reconciliation of Free Cash Flow for the twelve months ending April 27, 2025, and April 28, 2024. Expand CULP, INC. FOR THE TWELVE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024 Unaudited (Amounts in Thousands) TWELVE MONTHS ENDED Amounts April 27, April 28, 2025 2024 A) Net cash used in operating activities $ (17,650 ) $ (8,224 ) B) Minus: Capital expenditures (2,947 ) (3,711 ) C) Plus: Proceeds from the sale of buildings and equipment 1,945 385 D) Plus: Proceeds from note receivable 610 330 E) Plus: Proceeds from the sale of investments (rabbi trust) 1,725 1,449 F) Minus: Purchase of investments (rabbi trust) (735 ) (884 ) G) Effects of foreign currency exchange rate changes on cash and cash equivalents (4 ) (171 ) Free Cash Flow $ (17,056 ) $ (10,826 ) Expand CULP, INC. STATEMENTS OF OPERATIONS BY SEGMENT Unaudited (Amounts in Thousands) THREE MONTHS ENDED April 27, April 28, % Over April 27, April 28, Net Sales by Segment 2025 2024 (Under) 2025 2024 Mattress Fabrics $ 27,114 $ 25,750 5.3 % 55.6 % 52.0 % Upholstery Fabrics 21,659 23,778 (8.9 )% 44.4 % 48.0 % Net Sales $ 48,773 $ 49,528 (1.5 )% 100.0 % 100.0 % Gross Profit by Segment Gross Margin Mattress Fabrics $ 3,075 $ 292 N.M. 11.3 % 1.1 % Upholstery Fabrics 4,691 4,909 (4.4 )% 21.7 % 20.6 % Total Segment Gross Profit 7,766 5,201 49.3 % 15.9 % 10.5 % Restructuring Related Charge (1) (113 ) — 100.0 % (0.2 )% — Gross Profit $ 7,653 $ 5,201 47.1 % 15.7 % 10.5 % Selling, General and Administrative Expenses by Segment Percent of Sales Mattress Fabrics $ 3,292 $ 3,221 2.2 % 12.1 % 12.5 % Upholstery Fabrics 3,638 3,934 (7.5 )% 16.8 % 16.5 % Unallocated Corporate Expenses 1,540 2,090 (26.3 )% 3.2 % 4.2 % Selling, General and Administrative Expenses $ 8,470 $ 9,245 (8.4 )% 17.4 % 18.7 % (Loss) Income from Operations by Segment Operating Margin Mattress Fabrics $ (217 ) $ (2,929 ) (92.6 )% (0.8 )% (11.4 )% Upholstery Fabrics $ 1,053 $ 975 8.0 % 4.9 % 4.1 % Unallocated Corporate Expenses $ (1,540 ) $ (2,090 ) (26.3 )% (3.2 )% (4.2 )% Total Segment Loss from Operations (704 ) (4,044 ) (82.6 )% (1.4 )% (8.2 )% Restructuring Related Charge (1) (113 ) — 100.0 % (0.2 )% — Restructuring Expense (2) (1,422 ) (204 ) N.M. (2.9 )% (0.4 )% Loss from Operations $ (2,239 ) $ (4,248 ) (47.3 )% (4.6 )% (8.6 )% Depreciation Expense by Segment Mattress Fabrics $ 1,015 $ 1,461 (30.5 )% Upholstery Fabrics 137 162 (15.4 )% Depreciation Expense $ 1,152 $ 1,623 (29.0 )% Expand Notes (1) See page 15 for a Reconciliation of Selected Income Statement Information to Adjusted Results for the three months ending April 27, 2025, and April 28, 2024. (2) See page 17 for a Summary of Restructuring Expense for the three months ending April 27, 2025, and April 28, 2024. Expand CULP, INC. STATEMENTS OF OPERATIONS BY SEGMENT FOR THE TWELVE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024 Unaudited (Amounts in Thousands) TWELVE MONTHS ENDED Amounts Percent of Total Sales April 27, April 28, % Over April 27, April 28, Net Sales by Segment 2025 2024 (Under) 2025 2024 Mattress Fabrics $ 113,906 $ 116,370 (2.1 )% 53.4 % 51.6 % Upholstery Fabrics 99,331 108,963 (8.8 )% 46.6 % 48.4 % Net Sales $ 213,237 $ 225,333 (5.4 )% 100.0 % 100.0 % Gross Profit by Segment Gross Margin Mattress Fabrics $ 7,936 $ 6,289 26.2 % 7.0 % 5.4 % Upholstery Fabrics 18,752 21,690 (13.5 )% 18.9 % 19.9 % Total Segment Gross Profit 26,688 27,979 (4.6 )% 12.5 % 12.4 % Restructuring Related Charge (1) (1,621 ) (40 ) N.M. (0.8 )% (0.0 )% Gross Profit $ 25,067 $ 27,939 (10.3 )% 11.8 % 12.4 % Selling, General and Administrative Expenses by Segment Percent of Sales Mattress Fabrics $ 13,171 $ 13,134 0.3 % 11.6 % 11.3 % Upholstery Fabrics 14,695 15,903 (7.6 )% 14.8 % 14.6 % Unallocated Corporate Expenses 7,839 9,574 (18.1 )% 3.7 % 4.2 % Selling, General and Administrative Expenses $ 35,705 $ 38,611 (7.5 )% 16.7 % 17.1 % (Loss) Income from Operations by Segment Operating Margin Mattress Fabrics $ (5,235 ) $ (6,845 ) (23.5 )% (4.6 )% (5.9 )% Upholstery Fabrics $ 4,057 5,787 (29.9 )% 4.1 % 5.3 % Unallocated Corporate Expenses $ (7,839 ) (9,574 ) (18.1 )% (3.7 )% (4.2 )% Total Segment Loss from Operations (9,017 ) (10,632 ) (15.2 )% (4.2 )% (4.7 )% Restructuring Related Charge (1) (1,621 ) (40 ) N.M. (0.8 )% (0.0 )% Restructuring Expense (2) (7,739 ) (636 ) N.M. (3.6 )% (0.3 )% Loss from Operations $ (18,377 ) $ (11,308 ) 62.5 % (8.6 )% (5.0 )% Return on Capital Employed (ttm) (3) Mattress Fabrics (9.5 )% (10.8 )% (12.0 )% Upholstery Fabrics 40.5 % 62.5 % (35.2 )% Unallocated Corporate N.M. N.M. N.M. Consolidated (13.0 )% (13.9 )% (6.5 )% Capital Employed (3) Mattress Fabrics $ 52,331 $ 62,257 (15.9 )% Upholstery Fabrics 16,751 7,259 130.8 % Unallocated Corporate 2,945 4,999 (41.1 )% Consolidated $ 72,027 $ 74,515 (3.3 )% Depreciation Expense by Segment Mattress Fabrics (4) $ 6,178 $ 5,883 5.0 % Upholstery Fabrics 601 638 (5.8 )% Depreciation Expense $ 6,779 $ 6,521 4.0 % Expand Notes (1) See page 16 for a Reconciliation of Selected Income Statement Information to Adjusted Results for the twelve months ending April 27, 2025, and April 28, 2024. (2) See page 18 for a Summary of Restructuring Expense for the twelve months ending April 27, 2025, and April 28, 2024. (3) See pages 20 through 23 for calculation of Return on Capital Employed by Segment for the trailing twelve months ending April 27, 2025, and April 28, 2024, and a reconciliation to information from our U.S. GAAP financial statements. The capital employed balances are as of April 27, 2025, and April 28, 2024. (4) During the twelve-month period ending April 27, 2025, depreciation expense for the mattress fabrics segment included additional depreciation expense related to the shortening of useful lives of equipment associated with the closure of operations at our manufacturing facility located in Quebec, Canada. The amount of additional depreciation expense totaling $1.3 million was classified as restructuring expense in our fiscal 2025 Consolidated Statements of Net Loss. Expand FOR THE THREE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024 Unaudited (Amounts in Thousands) As Reported Adjusted Results April 27, April 27, 2025 Adjustments 2025 Net sales $ 48,773 — $ 48,773 Cost of sales (1) (41,120 ) 113 (41,007 ) Gross profit 7,653 113 7,766 Selling, general and administrative expenses (8,470 ) — (8,470 ) Restructuring expense (2) (1,422 ) 1,422 — Loss from operations $ (2,239 ) 1,535 $ (704 ) Expand Notes (1) During the three months ending April 27, 2025, cost of sales included a restructuring related charge of $113,000 for losses on the disposal of inventory related to the closure of operations at the company's manufacturing facility located in Quebec, Canada. (2) See page 17 for a Summary of Restructuring Expense for the three months ending April 27, 2025. Expand As Reported Adjusted Results April 28, April 28, 2024 Adjustments 2024 Net sales $ 49,528 — $ 49,528 Cost of sales (44,327 ) — (44,327 ) Gross profit 5,201 — 5,201 Selling, general and administrative expenses (9,245 ) — (9,245 ) Restructuring expense (1) (204 ) 204 — Loss from operations $ (4,248 ) 204 $ (4,044 ) Expand Notes (1) See page 17 for a Summary of Restructuring Expense for the three months ending April 28, 2024. Expand CULP, INC. Unaudited (Amounts in Thousands) As Reported Adjusted Results April 27, April 27, 2025 Adjustments 2025 Net sales $ 213,237 — $ 213,237 Cost of sales (1) (188,170 ) 1,621 (186,549 ) Gross profit 25,067 1,621 26,688 Selling, general and administrative expenses (35,705 ) — (35,705 ) Restructuring expense (2) (7,739 ) 7,739 — Loss from operations $ (18,377 ) 9,360 $ (9,017 ) Expand Notes (1) During the twelve months ending April 27, 2025, cost of sales included a restructuring related charge of $1.6 million for losses on the disposal, valuation, and markdowns of inventory related to the closure of the company's manufacturing facility located in Quebec, Canada. (2) See page 18 for a Summary of Restructuring Expense for the twelve months ending April 27, 2025. Expand As Reported Adjusted Results April 28, April 28, 2024 Adjustments 2024 Net sales $ 225,333 — $ 225,333 Cost of sales (1) (197,394 ) 40 (197,354 ) Gross profit 27,939 40 27,979 Selling, general and administrative expenses (38,611 ) — (38,611 ) Restructuring expense (2) (636 ) 636 — Loss from operations $ (11,308 ) 676 $ (10,632 ) Expand Notes (1) During the twelve months ending April 27, 2024, cost of sales included a restructuring related charge of $40,000 for markdowns of inventory related to the discontinuance of production of cut and sewn upholstery kits at the company's facility in Ouanaminthe, Haiti. (2) See page 18 for a Summary of Restructuring Expense for the twelve months ending April 28, 2024. Expand CULP, INC. SUMMARY OF RESTRUCTURING EXPENSE FOR THE THREE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024 Unaudited (Amounts in Thousands) The following summarizes restructuring expense for three-month period ending April 27, 2025: Upholstery Mattress Unallocated Description Fabrics Fabrics Corporate Total Employee termination benefits $ 112 $ 12 $ — $ 124 Impairment charge related to intangible asset — — 540 540 Loss on the sale and disposal of equipment 24 2 — 26 Facility consolidation and relocation expenses — 322 — 322 Cost incurred to ready a closed facility for sale — 360 — 360 Other associated costs — 50 — 50 Total restructuring expense (1) $ 136 $ 746 $ 540 $ 1,422 Expand (1) During the three months ending April 27, 2025, restructuring expense of $1.4 million represents costs associated with (i) the closure of the company's mattress fabrics manufacturing facility located in Quebec, Canada; (ii) initial costs related to consolidating production and distribution activities from the company's upholstery fabrics distribution center located in Burlington, N.C. to the company's mattress fabrics manufacturing and distribution center located in Stokesdale, N.C.; and (iii) other expenses incurred as part of the company's strategic plan to transform its operating model as announced on April 24, 2025. Expand The following summarizes restructuring expense for three-month period ending April 28, 2024: Upholstery Description Fabrics Employee termination benefits 204 Total restructuring expense (1) $ 204 Expand (1) During the three months ending April 28, 2024, restructuring expense of $204,000 represents employee termination benefits associated with the rationalization of the upholstery fabrics finishing operation located in Shanghai, China. Expand CULP, INC. SUMMARY OF RESTRUCTURING EXPENSE FOR THE TWELVE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024 Unaudited (Amounts in Thousands) The following summarizes restructuring expense for twelve-month period ending April 27, 2025: Upholstery Mattress Unallocated Description Fabrics Fabrics Corporate Total Employee termination benefits $ 214 $ 1,338 $ — $ 1,552 Impairment charge related to intangible asset $ — $ — $ 540 $ 540 Accelerated depreciation — 1,339 — 1,339 Impairment charges related to fixed assets — 131 — 131 Loss (gain) on the sale of equipment 24 (171 ) — (147 ) Lease termination costs — 849 — 849 Facility consolidation and relocation expenses 53 2,384 — 2,437 Cost incurred to ready a closed facility for sale — 788 — 788 Other associated costs 14 236 — 250 Total restructuring expense (1) $ 305 $ 6,894 $ 540 $ 7,739 Expand (1) During the twelve months ending April 27, 2025, restructuring expense of $7.7 million represents costs associated with (i) consolidating the company's North American mattress fabrics operations, including the closure of the company's mattress fabrics manufacturing facility located in Quebec, Canada; (ii) consolidating two leased facilities related to the sewn mattress cover operation located in Ouanaminthe, Haiti, into one facility and reducing other operating expenses at this location; (iii) initial costs related to consolidating production and distribution activities from the upholstery fabrics distribution center located in Burlington, N.C. to the mattress fabrics manufacturing and distribution center located in Stokesdale, N.C.; and (v) other expenses incurred as part of the company's strategic plan to transform its operating model as announced on April 24, 2025. Expand (1) During the twelve months ending April 28, 2024, restructuring expense of $636,000 represents impairment charges related to equipment of $329,000 and employee termination benefits of $103,000 related to the discontinuance of production of cut and sewn upholstery kits at the company's facility located in Ouanaminthe, Haiti and employee termination benefits of $204,000 related to the rationalization of the upholstery fabrics finishing operation located in Shanghai, China. Expand CULP, INC. FOR THE TWELVE MONTHS ENDED APRIL 27, 2025 Unaudited (Amounts in Thousands) Adjusted Operating (Loss) Income Twelve Months Ended Average Capital Return on Avg. Capital April 27, 2025 Employed (1) Employed (2) Mattress Fabrics $ (5,235 ) $ 55,170 (9.5 )% Upholstery Fabrics 4,057 10,027 40.5 % Unallocated Corporate (7,839 ) 4,427 N.M. Consolidated $ (9,017 ) $ 69,624 (13.0 )% Average Capital Employed As of the Three Months Ended April 27, 2025 As of the Three Months Ended January 26, 2025 As of the Three Months Ended October 27, 2024 Mattress Upholstery Unallocated Mattress Upholstery Unallocated Mattress Upholstery Unallocated Fabrics Fabrics Corporate Total Fabrics Fabrics Corporate Total Fabrics Fabrics Corporate Total Total assets (3) $ 70,825 $ 32,082 $ 20,463 $ 123,370 $ 70,877 $ 33,697 $ 22,981 $ 127,555 $ 69,261 $ 31,385 $ 28,341 $ 128,987 Total liabilities (18,494 ) (15,331 ) (31,905 ) (65,730 ) (20,337 ) (21,081 ) (26,487 ) (67,905 ) (14,948 ) (24,783 ) (25,633 ) (65,364 ) Subtotal $ 52,331 $ 16,751 $ (11,442 ) $ 57,640 $ 50,540 $ 12,616 $ (3,506 ) $ 59,650 $ 54,313 $ 6,602 $ 2,708 $ 63,623 Cash and cash equivalents — — (5,629 ) (5,629 ) — — (5,279 ) (5,279 ) — — (10,531 ) (10,531 ) Short-term investments - Rabbi Trust — — (1,325 ) (1,325 ) — — (1,753 ) (1,753 ) — — (919 ) (919 ) Current income taxes receivable — — — — — — (1,137 ) (1,137 ) — — (979 ) (979 ) Long-term investments - Rabbi Trust — — (5,722 ) (5,722 ) — — (6,250 ) (6,250 ) — — (7,105 ) (7,105 ) Deferred income taxes - non-current — — (637 ) (637 ) — — (490 ) (490 ) — — (559 ) (559 ) Lines of credit - current — — 8,114 8,114 — — 5,384 5,384 — — 4,074 4,074 Deferred compensation - current — — 1,325 1,325 — — 1,753 1,753 — — 919 919 Accrued restructuring 610 610 723 723 863 863 Income taxes payable - current — — 1,420 1,420 — — 828 828 — — 1,165 1,165 Lines of credit - long-term 4,600 4,600 Income taxes payable - long-term — — 790 790 — — 1,400 1,400 — — 1,378 1,378 Deferred income taxes - non-current — — 5,155 5,155 — — 6,582 6,582 — — 6,624 6,624 Deferred compensation - long-term — — 5,686 5,686 — — 6,151 6,151 — — 6,975 6,975 Total Capital Employed $ 52,331 $ 16,751 $ 2,945 $ 72,027 $ 50,540 $ 12,616 $ 4,406 $ 67,562 $ 54,313 $ 6,602 $ 4,613 $ 65,528 Expand CULP, INC. RETURN ON CAPITAL EMPLOYED BY SEGMENT - CONTINUED FOR THE TWELVE MONTHS ENDED APRIL 27, 2025 Unaudited (Amounts in Thousands) As of the Three Months Ended July 28, 2024 As of the Three Months Ended April 28, 2024 Mattress Upholstery Unallocated Mattress Upholstery Unallocated Fabrics Fabrics Corporate Total Fabrics Fabrics Corporate Total Total assets (3) $ 66,713 $ 31,763 $ 30,663 $ 129,139 $ 72,060 $ 32,629 $ 27,365 $ 132,054 Total liabilities (10,303 ) (24,857 ) (24,855 ) (60,015 ) (9,803 ) (25,370 ) (20,752 ) (55,925 ) Subtotal $ 56,410 $ 6,906 $ 5,808 $ 69,124 $ 62,257 $ 7,259 $ 6,613 $ 76,129 Cash and cash equivalents — — (13,472 ) (13,472 ) — — (10,012 ) (10,012 ) Short-term investments - Rabbi Trust — — (954 ) (954 ) — — (903 ) (903 ) Current income taxes receivable — — (532 ) (532 ) — — (350 ) (350 ) Long-term investments - Rabbi Trust — — (7,089 ) (7,089 ) — — (7,102 ) (7,102 ) Deferred income taxes - non-current — — (528 ) (528 ) — — (518 ) (518 ) Lines of credit — — 4,017 4,017 — — — — Deferred compensation - current — — 954 954 — — 903 903 Accrued Restructuring 633 633 — — — — Income taxes payable - current — — 759 759 — — 972 972 Income taxes payable - long-term — — 2,180 2,180 — — 2,088 2,088 Deferred income taxes - non-current — — 6,449 6,449 — — 6,379 6,379 Deferred compensation - long-term — — 6,946 6,946 — — 6,929 6,929 Total Capital Employed $ 56,410 $ 6,906 $ 5,171 $ 68,487 $ 62,257 $ 7,259 $ 4,999 $ 74,515 Mattress Upholstery Unallocated Fabrics Fabrics Corporate Consolidated Average Capital Employed (2) $ 55,170 $ 10,027 $ 4,427 $ 69,624 Expand Notes (1) Average capital employed is calculated independently for each segment and on a consolidated basis using the five quarterly periods ending April 27, 2025, January 26, 2025, October 27, 2024, July 28, 2024, and April 28, 2024. (2) Return on average capital employed represents the twelve months adjusted operating (loss) income as of April 27, 2025, divided by average capital employed. Average capital employed does not include cash and cash equivalents, short-term and long-term investments – rabbi trust, income taxes receivable and payable, accrued restructuring, current and long-term lines of credit, non-current deferred income tax assets and liabilities, and current and non-current deferred compensation. (3) Intangible assets are included in unallocated corporate for all periods presented and therefore, have no effect on capital employed and return on capital employed for our mattress fabrics and upholstery fabrics segments. Expand CULP INC. RETURN ON CAPITAL EMPLOYED BY SEGMENT FOR THE TWELVE MONTHS ENDED April 28, 2024 Unaudited (Amounts in Thousands) Adjusted Operating (Loss) Income Twelve Months Ended Average Capital Return on Avg. Capital April 28, 2024 Employed (1) Employed (2) Mattress Fabrics $ (6,845 ) $ 63,189 (10.8 )% Upholstery Fabrics 5,787 9,263 62.5 % Unallocated Corporate (9,574 ) 3,784 N.M. Consolidated $ (10,632 ) $ 76,235 (13.9 )% Average Capital Employed As of the Three months ended April 28, 2024 As of the Three months ended January 28, 2024 As of the Three months ended October 29, 2023 Mattress Upholstery Unallocated Mattress Upholstery Unallocated Mattress Upholstery Unallocated Fabrics Fabrics Corporate Total Fabrics Fabrics Corporate Total Fabrics Fabrics Corporate Total Total assets (3) $ 72,060 $ 32,629 $ 27,365 $ 132,054 $ 75,572 $ 38,085 $ 28,341 $ 141,998 $ 75,924 $ 35,082 $ 31,154 $ 142,160 Total liabilities (9,803 ) (25,370 ) (20,752 ) (55,925 ) (8,234 ) (32,201 ) (20,767 ) (61,202 ) (14,739 ) (23,758 ) (20,035 ) (58,532 ) Subtotal $ 62,257 $ 7,259 $ 6,613 $ 76,129 $ 67,338 $ 5,884 $ 7,574 $ 80,796 $ 61,185 $ 11,324 $ 11,119 $ 83,628 Cash and cash equivalents — — (10,012 ) (10,012 ) — — (12,585 ) (12,585 ) — — (15,214 ) (15,214 ) Short-term investments - Rabbi Trust — — (903 ) (903 ) — — (937 ) (937 ) — — (937 ) (937 ) Current income taxes receivable — — (350 ) (350 ) — — (476 ) (476 ) — — (340 ) (340 ) Long-term investments - Rabbi Trust — — (7,102 ) (7,102 ) — — (7,083 ) (7,083 ) — — (6,995 ) (6,995 ) Deferred income taxes - non-current — — (518 ) (518 ) — — (531 ) (531 ) — — (472 ) (472 ) Deferred compensation - current — — 903 903 — — 937 937 — — 937 937 Income taxes payable - current — — 972 972 — — 1,070 1,070 — — 998 998 Income taxes payable - long-term — — 2,088 2,088 — — 2,072 2,072 — — 2,055 2,055 Deferred income taxes - non-current — — 6,379 6,379 — — 6,177 6,177 — — 5,663 5,663 Deferred compensation - long-term — — 6,929 6,929 — — 6,856 6,856 — — 6,748 6,748 Total Capital Employed $ 62,257 $ 7,259 $ 4,999 $ 74,515 $ 67,338 $ 5,884 $ 3,074 $ 76,296 $ 61,185 $ 11,324 $ 3,562 $ 76,071 Expand CULP INC. RETURN ON CAPITAL EMPLOYED BY SEGMENT - CONTINUED FOR THE TWELVE MONTHS ENDED APRIL 28, 2024 Unaudited (Amounts in Thousands) As of the Three Months Ended July 30, 2023 As of the Three Months Ended April 30, 2023 Mattress Upholstery Unallocated Mattress Upholstery Unallocated Fabrics Fabrics Corporate Total Fabrics Fabrics Corporate Total Total assets (3) $ 72,286 $ 37,592 $ 33,024 $ 142,902 $ 75,494 $ 39,127
Business Wire
17 minutes ago
- Business Wire
Trex Company Announces Departure of Chief Financial Officer
WINCHESTER, Va.--(BUSINESS WIRE)--Trex Company, Inc. (NYSE:TREX), the world's largest manufacturer of wood-alternative decking and railing and a leader in high-performance, low-maintenance outdoor living products, today announced that Brenda Lovcik has resigned as Senior Vice President and Chief Financial Officer (CFO) to accept a position in Minnesota, near to her family. 'We appreciate Brenda's contributions to the Trex Company and the financial experience she brought to our organization. Brenda has been a valuable member of our executive leadership team, and we wish her the very best in her future endeavors,' said Bryan Fairbanks, President and Chief Executive Officer (CEO). Ms. Lovcik will continue to serve as CFO through August 5, 2025, at which time the CFO responsibilities at Trex will be assumed on an interim basis by Bryan Fairbanks. Mr. Fairbanks served as CFO from August 2015 until being named CEO and a member of the Board in April 2020. Trex is pleased to reiterate its guidance for full year 2025 revenue growth of 5%-7% and Adjusted EBITDA margin to exceed 31% and is on track to achieve its second quarter revenue guidance of $370 million to $380 million. The company has begun a search to identify the next CFO. About Trex Company For more than 30 years, Trex Company [NYSE: TREX] has invented, reinvented and defined the composite decking category. Today, the company is the world's #1 brand of sustainably made wood-alternative decking, and residential railing, as well as a leader in high performance, low-maintenance outdoor living products. Trex boasts the industry's strongest distribution network with products sold through more than 6,700 retail outlets across six continents. Through strategic licensing agreements, the company offers a comprehensive outdoor living portfolio that includes deck drainage, flashing tapes, LED lighting, outdoor kitchen components, pergolas, spiral stairs, fencing, lattice, cornhole and outdoor furniture – all marketed under the Trex ® brand. Based in Winchester, Va., Trex is proud to have been named America's Most Trusted ® Outdoor Decking ^ 5 Years in a Row (2021-2025). The company also holds a place on Barron's list of the 100 Most Sustainable U.S. Companies (2024 and 2025), was named one of America's Most Responsible Companies 2024 by Newsweek, ranked as one of the 100 Best ESG Companies by Investor's Business Daily, and named the Sustainable Brand Leader in the decking category by Green Builder Media for the 15 th consecutive year. For more information, visit You may also follow Trex on Facebook (trexcompany), Instagram (trexcompany), X (Trex_Company), LinkedIn (trex-company), TikTok (trexcompany), Pinterest (trexcompany) and Houzz (trex-company-inc), or view product and demonstration videos on the brand's YouTube channel (TheTrexCo). Forward-Looking Statements The statements in this press release regarding the Company's expected future performance and condition constitute 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are subject to risks and uncertainties that could cause the Company's actual operating results to differ materially. Such risks and uncertainties include, but are not limited to: the extent of market acceptance of the Company's current and newly developed products; the costs associated with the development and launch of new products and the market acceptance of such new products; the sensitivity of the Company's business to general economic conditions; the impact of seasonal and weather-related demand fluctuations on inventory levels in the distribution channel and sales of the Company's products; the availability and cost of third-party transportation services for the Company's products and raw materials; the Company's ability to obtain raw materials, including scrap polyethylene, wood fiber, and other materials used in making our products, at acceptable prices; increasing inflation and tariffs in the macro-economic environment; the Company's ability to maintain product quality and product performance at an acceptable cost; the Company's ability to increase throughput and capacity to adequately match supply with demand; the level of expenses associated with warranty claims, product replacement and consumer relations expenses related to product quality; the highly competitive markets in which the Company operates; cyber-attacks, security breaches or other security vulnerabilities; the impact of current and upcoming data privacy laws and the EU General Data Protection Regulation and the related actual or potential costs and consequences; material adverse impacts from global public health pandemics and geopolitical conflicts; and material adverse impacts related to labor shortages or increases in labor costs. Documents filed with the U.S. Securities and Exchange Commission by the Company, including in particular its latest annual report on Form 10-K and quarterly reports on Form 10-Q, discuss some of the important factors that could cause the Company's actual results to differ materially from those expressed or implied in these forward-looking statements. The Company expressly disclaims any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
