Culp, Inc. (NYSE: CFI) today announced that on December 11, 2008, the
New York Stock Exchange ("NYSE”) provided formal notice to the company
that it is not in compliance with the NYSE’s continued listing standards
because over a consecutive 30 trading-day period the company’s average
market capitalization was less than $75 million ($32.8 million as of
December 11, 2008), and its most recently reported shareholders’ equity
was below $75 million ($46.5 million as of November 2, 2008, the most
recently reported date).
Under applicable NYSE procedures, unless the NYSE determines otherwise,
the company has 45 days from the date of its receipt of the notice to
submit a plan to the NYSE to demonstrate its ability to achieve
compliance with the continued listing standards within 18 months. The
company intends to submit a plan to demonstrate compliance with the
listing standards within the required time frame. If the plan is
accepted, the NYSE will monitor the company on a quarterly basis and can
deem the plan period over prior to the end of the 18 months if a company
is able to demonstrate returning to compliance with the applicable
continued listing standards (which would mean the company would have to
either increase its shareholders’ equity to $75 million or demonstrate
market capitalization of at least $75 million), or achieving the ability
to qualify under an original listing standard, for a period of two
consecutive quarters. Regardless of this plan, if the company’s average
market capitalization over a 30 trading-day period falls below $25
million, the NYSE is expected to start immediate delisting procedures.
Beginning on or about December 18, 2008, the NYSE will make available on
its consolidated tape an indicator, "BC,” to indicate that the company
is below the NYSE’s quantitative listing standards. The indicator will
be removed at such time as the company is deemed compliant with the
NYSE’s continued listing standards.
About the Company
Culp, Inc. is one of the world’s largest marketers of mattress fabrics
for bedding and upholstery fabrics for furniture. The company’s fabrics
are used principally in the production of bedding products and
residential and commercial upholstered furniture.
This release contains statements that may be deemed "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 27A of the Securities and Exchange
Act of 1934).
Such statements are inherently subject to risks and
uncertainties.
Further, forward looking statements are intended
to speak only as of the date on which they are made.
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,”
"estimate,” "plan” and "project” and their derivatives, and include but
are not limited to statements about expectations for the company’s
future operations or success, sales, gross profit margins, operating
income, SG&A or other expenses, and earnings, as well as any statements
regarding future economic or industry trends or future developments.
Factors that could influence the matters discussed in such statements
include the level of housing starts and sales of existing homes,
consumer confidence, trends in disposable income, and general economic
conditions.
Decreases in these economic indicators could have a
negative effect on the company’s business and prospects.
Likewise,
increases in interest rates, particularly home mortgage rates, increases
in utility and energy costs, and increases in consumer debt or the
general rate of inflation, could affect the company adversely.
In
addition, changes in consumer preferences for various categories of
furniture and bedding coverings, as well as changes in costs to produce
such products (including import duties and quotas or other import costs)
can have a significant effect on demand for the company’s products.
Changes
in the value of the U.S. Dollar versus other currencies can affect the
company’s financial results because a significant portion of the
company’s operations are located outside the United States.
Strengthening of the U.S. dollar against other currencies could make the
company’s products less competitive on the basis of price in markets
outside the United States, and strengthening of currencies in Canada and
China can have a negative impact on the company’s sales of products
produced in those countries. Further, economic and political instability
in international areas could affect the company’s operations or sources
of goods in those areas, as well as demand for the company’s products in
international markets. Also, the level of success in integrating the
acquisition of assets from Bodet & Horst could affect the company’s
ability to meet its profitability goals. Finally, unanticipated delays
or costs in executing restructuring actions could cause the cumulative
effect of restructuring actions to fail to meet the objectives set forth
by management.
Further information about these factors, as well
as other factors that could affect the company’s future operations or
financial results and the matters discussed in forward-looking
statements are included in Part II, Item 1A "Risk Factors” in the
company’s Form 10-Q for the period ended November 2, 2008 filed with the
Securities and Exchange Commission on December 12, 2008, and in Item 1A
"Risk Factors” in the company’s Form 10-K filed with the Securities and
Exchange Commission on July 9, 2008 for the fiscal year ended April 27,
2008.
