The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Doug Lane - Water Tower Research - Analyst
: Yes, thank you. Good morning everybody. Thank you for the commentary on tariffs. It's obviously been front and center in the news, particularly
in your industry. Are you at the point now where all the known information on tariffs is out there and your initiatives, both from the cost side and
the pricing side have captured that? Or is there still more actions to be taken based on the current news?
Question: Doug Lane - Water Tower Research - Analyst
: That's good news. You mentioned part of your initiatives of pricing. What is the elasticity these days? Are you able to put the pricing through? Or
is it too early to tell?
Question: Doug Lane - Water Tower Research - Analyst
: No. And the margin story is looking really good, that chart on slide 9 showing the steady improvement in gross profits. Maybe could you give us
a feel you have on slide 11, a list of all the initiatives you've taken. And the total is $18 million. How far along are we in realizing that $18 million?
And when do you think we'll fully realize that $18 million annual run rate?
Question: Doug Lane - Water Tower Research - Analyst
: Okay. That's helpful. I'm looking also at some of the market commentary that you referenced here. And I'm new to the company here, so I just
maybe need a little bit of background on how would you compare this dip here post COVID, if you will, versus, say, The Great Recession back in
the 2000s?
Question: Doug Lane - Water Tower Research - Analyst
: No, you can't forecast when things turn. I mean you have the commentary from the research that you cited showing significant pent-up demand,
people calling a turn in 2026, which, of course, may or may not happen. But what does that mean for Culp? Are you able to satisfy a turn in demand
with your existing cost structure? Or will you have to begin to spend and chase the demand when it does come, assuming it does come in the next
year or so?
Question: Doug Lane - Water Tower Research - Analyst
: That sounds encouraging for sure. And again, new to the story, I'm fascinated by some of these hidden assets that you have here, Ken. You mentioned
a market value of real estate of $40 million to $45 million, and you've got federal NOLs of $88 million. How much of that real estate is on the books
and how much of that is really not on the books? And then how are the NOLs going to play out going forward?
Question: Doug Lane - Water Tower Research - Analyst
: Interesting. Okay, thank you very much.
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SEPTEMBER 11, 2025 / 1:00PM, CULP.N - Q1 2026 Culp Inc Earnings Call
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