Culp (CULP) 30 Jun 222022 Q4 Earnings call transcript

Good morning and welcome to the Culp, Inc. Fourth Quarter Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I’d now like to turn the conference over to Dru Anderson. Please go ahead.

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

call about start, contain company. and we let state the this As me prospects of forward-looking business, the morning’s statements financial condition that will

of the events various uncertainties of company are Form statements historical because that actual of and the future recent fact. by uncertainties. our differ include and statements indicated or Form materially the on risks otherwise or risks are beliefs projections, The Forward-looking regular results These expectations are could forward-looking XX-Q. from that about statements or not statements filings and XX-K SEC company’s in described filings, including most performance

undue and made place as statements. forward-looking You to speaks no only forward-looking not reliance each today. statement or are today We undertake update of obligation to statements such revise on to cautioned

will Officer with at financial press call, company’s In the yesterday is as over to financial non-GAAP filed part these the Iv Culp, supporting financial the the website GAAP slide company Culp. addition, included to exhibit an now on measurements. and available call go included this and the X-K of of measurement in of be tables Executive during measurements directly posted discussing will comparable Please to turn reconciliation the financial culp.com. non-GAAP company’s today’s release also the most the A to A webcast company’s information is the of ahead, summary as presentation on website call. sir. Chief I President

of Boyd quarterly and call you business. our us on begin President our Ken Fabrics the I and you business we the actions call with to we'll briefly our today will segments then will and the review our take Officer pleased that full with today, will of the questions. analysts Good operating to then financial then the I'd XXXX some any each like for quarter opening and quarter results investors and thank update review Ken after you Financial to to fiscal Chief joining outlook call morning year. and comments Bowling, strategic are Chumbley, the for the Upholstery first on me with I be and our specific welcome conference Culp and Ken

were businesses As by previously our by the sales. quarter announced, industry further China shutdown affecting mattress of fourth due results of restrictions unexpected significantly our to and COVID domestic weakening the for facilities related our challenged both in

was of a return as were capacity. the anticipated at operating our last quarter. segment shipments April somewhat quarter small expected employees product the locations two for our in of a sales number fabric Culp better the our higher China loss to than the of able and also We previously However, mattress slightly facilitate weeks end experienced during than to limited

in have have and both the service we our our as our strong competitive despite Much diversified customer businesses. relationships maintained we effort gone disruption, delivery Importantly, importance of in chains balanced into has platforms understand and fully supply industry. this customer we

ended with in with position higher also and We cash expected cash and outstanding the a than quarter borrowings. no $XX.X investments million

ongoing sufficient company's the of headwinds. to our financial secured we facility, announce closing pleased enhances to which and liquidity In navigate with us new are provide credit addition, to expected the is flexibility the

Our disruption. on pressure with of chain our fiscal strong supply profitability moderate for businesses last both year and off year started

help These liquidity. other demand equipment, needed current to the and pressures, ongoing other taking related reduction the eliminating match and additional actions making disruption materially manage rise mitigate now inventory, and However, production volatility, spending, the pricing inflation, measures geopolitical spending adjustments reducing performance but to capital as include businesses. limiting these our align in trends cost underutilized took consumer the reducing to patterns, year year several our business, progressed, of affected COVID meet are to the workforce and as throughout rapid events, schedules measures We changing other our we expenditures with diligently discretionary and demands.

are also action to first We pricing planning during announce the additional quarter.

We are these both our conditions challenges taking the near-term to we adapt that to normalize. strategically the and to meet needs remain continue when of while well positioned steps customers ensuring to now

the expected difficult In company's cash environment, addition suspend the current the has Directors considering of these actions business Board quarterly dividend. decision and to and our to made

decision Although interest is controlling the and and on we for capital believe in priority we capital the of reducing and and of we our shareholders. limiting of the our and challenges will unknown, our key emphasis to our future We business inventories, growth understand continue strategy, confident cash interest continue company this dividend our the top our the are opportunities on policy expenditures managing best stabilizing of in reassess overhead quarter. A a is emphasis preserving long that will objective importance position duration and each shareholders, the we support our to current costs. is and solid term

sheet. Our to maintain intent always is our strong balance

persevere, Our products, and customers. creative to our world service exceptional the delivering associates designs innovative for around continue

and energetically shutdowns weeks We operations normalized product ship tremendous China of are diligently returned resilience proud of at to to especially of eight associates the work are have capacity. resume working our and who following

associates demonstrating for these the the with been residential sales the and our for during notably dedicated extent, our this their affected stable supply material fiscal XXXX of dramatically Asia a has chain a years, strength to fiscal has platform fabrics Throughout and XXXX, our our business upholstery COVID cover business and our quarter began. reliable instance partners any pandemic meet month to related business, since first first few fourth lesser for been the Although of shutdowns the demand. past our disruption capacity operations China mattress of

gives we supply to potential specially reactivity, with better. improve value provided we operation Haiti. are service our shifts are and us and to developments benefit diversify pleased to continuing excellent focused chain the our we customers our to in While through platform, demand Asia This near-shore on our

our American in platforms, production believe and compliment serve and Our onshore, is future. our will us in to we the shore well Asian Haiti platform balance offshore near an as North excellent in

Looking affect ahead, our at expect conditions remains position prevailing with we plan our macroeconomic business will and as the product new half materialize and continue market believe opportunities pressures expect market the retail improve. development fiscal through softness We to first least to we that of XXXX. solid placements

in touched mentioned many previously call, specifically in investor our expect to revenue that our fabrics. we quarter on As accretive points to mattress be third I

of business product rewarded. segment. being projected delayed design expenses stunted by see line believe weaker But brand Growth keeping tools, cash, the focus, upholstery being our to continue remain We in as product return as on expertise, and our conditions retail and generating our management remain LiveSmart trends with on steady hospitality with fabric pleased digital new presentation improvements sales is a experiences, liquidity. we opportunity eventually We we have rollouts. generated that of reorganized of the campus. adequate focus well will focused and be our In innovation innovation, sales we core these brands, portfolio from innovation ensuring in growth from fabrics, our demand

for all to me call year. Importantly, the the Culp's and that, With future. turn we will full over who remain quarter about Ken financial review let optimistic the results the

Thanks Iv.

Relations that posted have posted key We've measures. capital we call, fly our website presentations the our on through earlier cover mentioned allocation performance As strategy. Investor also

more from $X.X a Here Net period. $X.XX loss fourth was net prior per the I'll comment Net the financial income diluted The detail million for prior or $X.X million or for quarter. prior sales the with per million the on in and reported moment. operating year diluted $XX.X for share highlights in fourth million XX% compared company a for loss are of the year compared of $X income million $X.X divisional share operations the $X.XX operations quarter down performance with were period. period. sales compared from with of

continues inefficiencies revenues, locations performance exchange unfavorable lower in Haiti planned and sales, total pressured rapid and additional full Our our and as lower offset fluctuations quarter, was expense pressures inefficiencies foreign primarily to partially were the upholstery compensation at and the by its and to it significantly SG&A to material capacity for These rate our US new training level. due operating cut by expense. operating overall a incentive fourth scale the costs at output in decline employee for facility, operating quarter due China sewn Canadian lower

in net for due of lower in the related down from year period year. sales operations compared These product the $XX.X The for For last with well Consolidated current Net income labor of total the year diluted other sewn offset or expense tax year. Operating Haiti operations fiscal for as cost. full the and for fourth by upholstery effective this factors the segment US million or partially income X.X% mattress the share full operating for per year raw and segment's noted ago. of the this were was net the fiscal year income per year compared rate was affected was this with for was cut or was to shortages million the XXXX the for our quarter the freight, fiscal capital $XXX,XXX XX.X% with return previous million the compared affecting XX.X% year. fiscal pressures earlier negative $X.XX for income X.X%. full lower for prior compared million were year Canada and quarter, X.X% Other in expense. year compared year compensation costs fiscal rate Income as with the primarily the the for $X start-up labor X.X% compared The material higher a to mix new fourth sales year. and million $X.XX fiscal diluted for incentive pressures loss Adjusted the year. prior full XXX% a tax factors. negative to of as prior year with the fiscal global performance platform I fabric facility, $XXX.X by fiscal among sales same on for SG&A within the $X.X the net were a inefficiencies was share year from EBITDA for for year, was or of $X.X million effective $XX.X X.X%

full incurred the income the losses company's our from these fourth the a and pre-tax Our for US. US the fiscal tax our from as exceeded foreign jurisdictions. during the of and the encouraged stems taxable the year that jurisdictions consolidated effective quarter periods we income rates mix by affected its in US were and loss foreign expense, in income income tax result, significant operations taxable between for We

higher our rate income adversely effective expected US loss fourth that this from fiscal quarter compared the fiscal the third this actual by adjustments pre-tax the change of estimates for by the was estimate affected end the year. operations as tax than incurred Additionally, in to stem quarter, year of

total currently Our for $X.X this payments, million cash the income income for million tax expect approximately and year $X.X we payments fiscal year. XXXX of fiscal tax

projections payments current the over foreign versus estimated earnings Canada annual foreign be year for projections, factors. our XXXX in rates exchange and cash our located only Importantly, management's and operations China associated fiscal from with China, in can actual are income tax by affected subsidiaries other our the changes

business Now a our at segments. let's take look

consumer is lower was our affecting which production for pressures to price due mattress For income curtailing million China. covers down that of inflationary particularly year's surcharge million affected million softness which points. operating last were primarily quarter, quarter for the $XX.X COVID the spending, to mattress in industry for in quarter. fourth by the sales and compare mattress Sales actions fabric pricing were with and shutdowns platform, year of domestic in the for product our the included segment, fourth Sales inventory loss XX.X% products this industry were quarter mid-range related demand. of during compared mattress distribution Operating response $X.X sales and and effect also reflected purchases of Culp ago. to retail China customers slow and in timing with $X.X new delaying sewn believe produced halted We weakness the a rollouts to the the period

inefficiencies fourth performance significantly related lower lockdowns for and fiscal at this for material facilities. China. decline COVID also the quarter the Canadian was Our cover due revenues mattress by sales affected US operating quarter in for our were in to Results the operating the by pressured causing the rapid year quarter

extent, over China a XX.X% of residential furnishings fabric Sales the slowdown in fourth due quarter, lesser sales related a upholstery For the down were for were fabric the shutdowns upholstery for facilities significantly during business and to quarter industry. segment, expected products million the for the year. prior fourth in our to $XX.X the home COVID primarily new

fourth business in sales both from to our the performance fiscal business with hospitality Sales business year. results in prior to was higher pricing products year. for hospitality million line income the and compared recover ago. effect quarter quarter the actions our the quarter as surcharge with the related period supplemented that during pandemic contract in continue last during to year of and was for the quarter our the $XXX,XXX Operating a compared top impacts by $X.X However, in loss windows fourth were compared

scale Our the lower cut year and unfavorable fiscal Haiti and they sales, costs as operating this additional foreign at well primarily employee realization new and actions implemented fourth fluctuations effect training our for by currency facility, the sewn the continue performance offset in to increased the period. operating fourth price for quarter additional of during as freight helped capacity new as quarter pressured was China year, full increase orders output and full that during surcharge cost the its throughout to level. including was and pricing material in raw of this The the plan inefficiencies

Cash of fiscal free fiscal and cash negative operations to total and in outstanding million cash flow million million compares this turning the debt end fiscal negative this the and year. reported the cash and debt $XX.X year. flow end as of This the last respectively investments sheet; no of and as with million total year. for $XX.X $XX.X $XX.X in Now we balance no outstanding of investments and were from

and of cash operations uses flow chain flow help free to disruption support from by during our navigate year affected the cash. were Higher cash this inventory following levels valued fiscal and customers. Our supply

sewn and including the inventory, inventory raw new of and of as through result in expenditures, lease, million increase in machinery, costs equipment of XX% expenditures IT expenditures in to with payments Haiti well million $X.X the our terms response credit normal building and our new a up innovation and extended as capital investment $X.X accounts for other investments, increased related previously, higher related operation our for campus. to new in pandemic. infrastructure costs to associated security expenses and start-up the the approximately granted terms, payments to was Importantly, cut our ramping as payable returns material opposed upholstery COVID-XX to revaluation

of current $X.X paid back our current do approximately agreement. Despite we for we repurchase million during share dividends during not in The shares authorization, this not fiscal the Additionally, our that company million fiscal under $X.X repurchase million Iv. the I'll of stock. of common to regular fourth year, a first during over any With quarter repurchase XXXX. available did quarterly fiscal expect $X.X and this share repurchases turn call quarter the shares leaving share repurchase any to year,

taking continued fabric customer design comments maintained driven innovation, and Thanks, strategy a emphasis creativity, on focus Ken. response segment. a with service. the has business, mattress about Culp with I'll the product of efficiencies Home an just reduce be quality the Despite further quarter during ongoing to for annual decisive quarter management headwinds, action We're fiscal operating $X the with expenses savings also planning announce cost million. XXXX. targeted is will first that second and to approximately effective additional of pricing the more on give division few personalized headwinds In each in this the Fashions beginning action its to improve

new rollouts. the mattress cover programs may but continue demand product of new is of Looking and products time, ahead, period some are for reduce to optimistic fiscal and we about fabrics timing product plan weakness expected industry and XXXX, for for delay opportunities development which

six be to an manufacturing to and at platform demand our where countries. with our have customers service meet remained and operations Customer respond sourcing we across reactivity to want within CHF And core. supply prepared and will serviced. be chain excellent We scenarios they changing

in our to and on Now creative China, significant COVID-related design. turn upholstery due in over I'll segment. fourth focus shutdowns during to fabrics sustained innovation business the quarter Despite the residential we the disruption the

expanded and for and global options We in within new our our during greater at quarter. and resiliency Haiti development the ramp up supply platform. fabric our we upholstery diversification And sew also continued chain the production offering sourcing, facility cut

throughout also are pleased lifted May operations and our curtailed are China operating capacity. We have significantly currently the April been at normal have we shutdowns now and

note during from we shutdowns However, continue may the constraints the XXXX. that lingering quarter of fiscal first

Looking ahead, our of including we well innovative believe global with for its sustained focus product and products its portfolio popular on platform performance LiveSmart our fabric upholstery positioned fabrics and business the offerings, business. growing is hospitality long-term a scalable

retail Ken for demand and to XXXX expect of a business fiscal business affect the period. the for in for questions. for furnishings However, residential now discuss may we the residential industry first take the going outlook any home general new slowdown then is we'll quarter some

of navigate convergence disruption headwinds, We other in that are including consumer events. pressures challenging a affecting continue labor significant to inflationary geopolitical COVID-related a spending, China and market,

Although the positioned the time. company only financial limited half XXXX. likely conditions flexible at this for are the global to over first providing well of current the through environment, are quarter continue results Due volatility long-term and guidance the fiscal XXXX continued at fiscal this platform, we strategy product-driven with sequential of remains pressure to the in the first macro least

the quarter last We be fiscal to for fiscal to of XXXX of expect the sales comparable first year. fourth net quarter

the quarter year. While we we still moderate as to of loss first XXXX, during fourth incurred a quarter a of fiscal loss material the last fiscal improvement consolidated do expect the operating expect for compared

year. be fiscal with with working sheet, regard In end strong that, to in the your end first the always position strategic to of conclusion, a of weather goal quarter cash the focused as continue also our we'll management as to of balance we laser to we fiscal comparable We as balance capital. expect With will our financial challenges, especially on ensuring of of be maintaining position questions. take cash of XXXX the prudent a current last the our

[Operator Instructions] Budd Bugatch from Water Our today question go Tower. ahead. first comes of Please

question could to inventory inventory, current health both the some mattresses. manufacturing that about customers, in Maybe us I'm the you in is upholstery and and the really about extent without your color their assess talking of to guess, I financial the I and customers can customers? have capacity. you their give individual talking

nice Budd, you. hearing from

would or specific I really period customers. any cash we don't has receivables. about last in for the management say want position of details sure, time For our generally, strengths our to one But of solid talk been

we're So What we've level are place with they're limiting think high a on they some lot customer are they're still working have their backlogs, customers also while that market, from in orders shipped been that. what have that we pleased facing that off is using them have inventory in probably -- slowness have, is a and of I fill which us. bringing to maybe in seeing our

So touched job, we delivering really many demand. we've on have previous as done nice of a in calls,

So large really customer. we just the of never even a our shipping We surge, kept up. backlog through built we kept kind and

new some now least they're with think of some products are sides of we that out and And I pulling and -- our so of on the things faced have other backlogs at our their us inventories from customers finishing currently. not and things both business

on product to as offset growing, we're new Boyd, to we customer? not the that's quite as wins do yet. that's you new moving. So gain stuff things We're able about get excited anything to to all total product we talk getting the the add want about and not

assessment our pretty those are that while position residential have having good just I there does remains today. there, But what Iv, and down, that shape still than have is working it's That lot a backlogs our have would And coming of are number where furniture that where been industry them work echo are in backlogs think think is, of backlogs to further a they're a the some vary through. of you just I in backlogs still they the brought I customers of manufacturing a which within said it down still picture down. of base customer general been others.

take come mind and the to that. better will their their rate there long Is difference inventories normalcy? before in or upholstery any between questions are at So how mattress? on -- And reached it two of sales current better work and balanced down,

there's always Generally, mattress upholstery between the bit think delivery more a cycle. know, business, a difference I of has maybe as Budd, a and customers little us. you of been just-in-time mattress for

you is you weaker maybe mattress just out that, conditions in So of a carve probably backlogs, side, products not like on but it feeling. business, bed-in-a-box everyone mattress-in-a-box And higher inventory I or side, mattress on large timeline? varies of we're type Boyd, traditional know if has the probably system maybe idea on backlogs the of upholstery And customers. think lot a There most it's sure, don't I then customer. the I'm than for experienced. an by it's sure have

I looking times. before to and think still at months start pre-COVID type backlogs minimum there see to we several we're at lead out more normalization

So of some there's still out number think months I to go. run of

end of it end a So working not in sizable what QX? primarily get thoughts guess as a, you're receivables reduction significant the down to or going loss, be a your some comparable Is could a well. at cash b, means I source capital Where is of of you're the lot you're have you at position from? whole capital QX, if Ken, the But if spend that, inventory to a there quantify to And depreciation. coming going cash be of advance operating to to going that so, working will of are?

be progress think will significant mean, on QX. in Well, good I our I inventory. well, obvious -- we made focus

down QX. was X% effort from Our continue QX. inventory want We in that to almost

there not that you and But to to said, get for going limit material carefully we're I contribution from think it. going looking before a opportunities we're yeah, as as it, spending inventory Of CapEx we're monitor with need course, presented to have balance we spend the just very us. you unless well absolutely

receipts management continuing accounts as accounts course, on as receivable laser payable well our focused accounts -- to or on receivable focus keep prudent it's and performance. So of

there, but is kind in So for it's of focus sure. all to be a major inventory going play

it's And or get number reduction that again, of do a end you kind X% you at of to QX? the think what's the

Budd, have I cover material. sure. course, of will to focus to it be going I quantify material make really -- you I for don't as losses, to that. on to the we're We're going And said, It's to contribution mean, can't want just to that. have a

Budd, I'll on calls. part quick We a just part specifically make material. this is our have raw comment previous the and maybe inventory CHF inventory, we in on of that the touched side, to still [Technical Difficulty] significant on

So It's not about timeline it. that product we've is moving to to worried of a move volume that we're moving. then the generate got and

to have down to see And can to stock the work for yarns been to hard reduce that so that new little inventory. get fabrics down we the taken both schedules we purchased. So a moving number focus significant to, customers it in better on there that run we'll well and is are opportunities be but getting on have will a opportunities the it as customers already as pin just

there's So tailwinds in some there.

and And have did savings kind in million are a hear where you that an see And right, that, what taking? you which cost actions And do number? I $X program? of you you annual is divisions

salaried and of hourly. product side all it's business. the for I some those areas. of right-sized actions have It's aspects reductions, taken both of Most the mattress on been several coming the those from and fabrics certain or mean, business it's labor generally shifting actions cost

global of to may not as performing quantities, so a yarn of of scale where There's these just as cost be the business segments It's that's terms. going and some efficiency -- the the to our volume little new we're on We're potentially some lot those our the side. have dropping managing relief better, most material products, advantageous we're And such back platform SKUs, current items. there. flex then business announced the We to a just going to efficient improvement some complement production we make mostly order being the others, products if with see in actions improvements of spot. in pricing to on more that get do maybe we being going need mattress in

And you been And them? can quantify the they announced? actions, pricing have

we to QX. be No, QX quarter haven't those for effective in announcing be announced our in yet. those We'll

going balance luck what's Good on I'm afraid. us, to the all a of period be of difficult for

[Operator ahead. next Lebiedzinski Instructions] & from Please Sidoti Our Anthony from Company. question comes go

guess, looking as on at to I that just million the far savings, program. Budd, cost previous as just follow-up the from question So $X savings first,

As I far should of evenly help expect that thinking about out kind as we of like, me of year as the can or timing you savings? the that, those the as far mean, timing maybe Ken, throughout expense

Good question, Anthony.

that I think the end back where spread. you QX of at and the that would is primarily, look QX maybe would -- is way would but we QX, QX,

out there. I that because all the uncertainty -- then is you of But the products. as an And be delayed being said, a innovating guys as eye focus far far as I know of that high on know keeping some new for product that's could rollouts as just

be your some things examples that in exciting of share the hope to that you bring to us can are new of to market segments? in fiscal What 'XX? able So with to hope the rollout some you you

different about maybe look think in here of details. I Well, let's parts our about Boyd, you I'm let for I'll it, there the there's you we thinking missing if start if the I'm LiveSmart and comment business, excitement fill with let products. upholstery And I'll two something side.

fit. optimistic the applications Evolve. recovery we of specifically LiveSmart can think I And products, with pretty fabric on new the about see in we're the sustainability I those our to strong think business, placements potential fabric hospitality continue side where

fabrics both Boyd, I'll do and mattress parts. those there's don't opportunity you on think why in it I you? touch after

the have we I'd umbrella offer, is, of of the strength done. And that has of a while we a the us. yes, that And Evolve, to are introduction sustainability seasons introduced LiveSmart there a was market couple that it not And been new for reality available the lot marketplace. the these that product say, certainly markets, the of for where strength being couple especially remains of in a core products

as season certainly again, to and fabric most our we gaining we of these traction. And here most seen recent have receptance market out furniture the the a products. additional lot So and April in renewed interest showing of May, especially recent really is came Evolve LiveSmart really Evolve,

a We going in need much introductions is the We're of October. a to expecting people be in in and new are in from that that is products. environment retail there for the need hearing a more market and significant late lot

category entire So we for very remain of product that optimistic our offering.

you on what And Anthony, point it I is talked gets excited and touch about if QX side, me mattress want, a that release QX. and the with about we can add in -- just

We have of lot presentation a national service lot placed. experience both of process, development we being sophisticated made Meaning digital covers changes. technology, very and brands seeing and and lot are sales customer a brand just projects significant fabrics Boyd the of a rollouts scheduled management, for on It's product for surge. really year. a not is touched new current COVID the that floor this going it are view, and What's as on on, come fiscal have just of of in they've our put much, lot so out retailers, and

We they be will not that's know yet and where control able we see on drive position little because products a things to lies And challenging bit things when to weaker, floor so And our that on optimism to are physically push more better get new actually retailers launched. business excitement. are and we placement wanting as now a launch. to the won gets starts scheduled just optimism customer for to we've

also timeline, color some a to optimistic future. So what we're we're but the pretty and why that we're gives hopefully hard about estimating having time the seeing as why

new as here. product come past in sounds is far recovery innovation margin initiatives of So that once guys just we're this these tough LiveSmart because for as on for a follow-up sustainable help that that versus that higher you like to also type out product Generally, should you faster a Evolve. product of it others? focus And period the

have somewhat margins. category the higher does typically, Anthony, performance

grow for that So impact yes, as should that category continues there. some us, to have

of lot sustainability he performance is able think cleanability. product When features that talks it's ways. to having along with about performance, to Boyd Remember, a and Anthony, two do that, a we

is product really it is an So excellent demanded. that

a ways. can have. have multiple but have we to sustainability pretty is offer product we doesn't and offering Now It special performance both, it

sense the hospitality of the And the to -- Can you in years impact know then talked any you that business, within much recovery top-line know just now business. business, a as versus year guys just big give I you ago versus as sort you overall quantify us like -- of color is, that kind that is I as about but how on where two ago? that of specifically don't terms can far a how

Anthony, this glad and that. to be Boyd, address is I'll

than saw on year, we've side residential COVID talked hospitality about order certainly before, hospitality the from And during increase the residential. XXXX As lags we focus period, time stay-at-home more typically during from that side. initially we the in did demand what's happening with the the

you're did have now right, hospitality coming that is again disclose growth of those started place. I will in to and we put take but traveling -- our again, We it back more as this and seen certainly percentages to We business, normally the perspective. don't more has flip where

business this that as seeing not we're declined year, certainly, came levels levels percent business. to continued normal the business to our pre-COVID, grown fiscal overall far segment or but FY we're saw a back, that Our into hospitality our as 'XX, of quite of the that in strength our moving we significantly. that quite had off. not FY 'XX And In

it to return So I what business was think our a prior overall we COVID. of a to will percent to being similar see

And color. expect wanted you did follow-up then CapEx. to very I number Ken, the just guys you or that year I for your give have are you a may on with this, but that? for CapEx helpful very missed focused I That's know managing

said, No, -- not. did right we're every single like We're Anthony, now, just I and we just closely. at managing very that expenditure looking

for And give go limited, be we so at as did point. will this but a time, total through this not it we sure,

a Best weekend. of luck, have holiday and great

Our next Water Please Tower. go question comes ahead. from Budd of Bugatch

wanted have that there we was there going a receivables to or ask the if to that -- Sorry a or -- side of reserved notable been make for just appropriately sure notable be there for mattress issue address is I in forward? bankruptcy an the But that will the business. is the have follow-up.

that's just Budd, we something good question, learned about morning. on and Saturday

we to not it. data the the That just major pretty really learn, to there's feel to and good we're around feel are we're to still a impact more restructure. to gathering managing we for Culp. opportunity see. and now going the to good a be and no I'm customer kind QX, been like to impact business us support our our of certainly going for and So for us tell that's with has pleased customer you But we now, impact

would conference back to question-and-answer our Culp like Iv to closing any session. I for over concludes now remarks. turn This the

July operator. and you Culp. and to your quarter. again, happy Thank on our so look Xth much, participation your all in thank Have holiday, forward interest for we you progress of a next updating And you

conference Thank attending today's presentation. The has for now you concluded.

You may now disconnect.