Culp, Inc.

Good day ladies and gentlemen and welcome to Culp's first quarter 2020 earnings conference call. I'd like to remind everyone that this call is being recorded and at this time for opening remarks and introductions, I'd like to turn the floor over to Ms. Drew Anderson.

Thank you. Good morning and welcome to the Culp conference call to review the company's results for the first quarter of fiscal 2020. As we start, Let me state that this morning's call will contain forward-looking statements about the business, financial condition, and prospects of the company. Forward-looking statements are statements that include projections, expectations, or beliefs about future events or results, or otherwise are not statements of historical fact. The actual performance of the company could differ materially from that indicated by the forward-looking statements because of various risks and uncertainties. These risks and uncertainties are described in our regular SEC filings, including the company's most recent filings on Form 10-K and Form 10-Q. You are cautioned not to place undue reliance on forward-looking statements made today, and each such statement speaks only as of today. We undertake no obligation to update or revise forward-looking statements. In addition, during this call, the company will be discussing non-GAAP financial measurements. A reconciliation of these non-GAAP financial measurements to the most directly comparable GAAP financial measurement is included as a schedule to the company's 8-K filed yesterday and posted on the company's website at CULP.com. A slide presentation with supporting summary financial information and additional performance charts are also available on the company's website as part of the webcast of today's call. With respect to certain forward-looking free cash flow information, the comparable gap in reconciling information is not available without unreasonable effort, and its significance is similar to the significance of the historical free cash flow information, which is available in the company's 8-K filed yesterday and posted on the website. With that, I will now turn the call over to Frank Saxon, Chairman and Chief Executive Officer of CULP. Please go ahead, sir.

Thank you, Drew, and good morning, everyone, and thanks for joining us today. I would like to welcome you to the CULP quarterly conference call with analysts and investors. With me on the call today is Yves CULP, President and Chief Operating Officer, and Ken Bolling, Chief Financial Officer. I will begin the call with some brief comments, and Ken will then review the financial results for the quarter. I'll then update you on strategic actions in each of our segments. After that, Ken will review our second quarter business outlook, and then we'll be happy to take your questions. We are pleased to report a solid start to fiscal 2020 with our overall sales in line with expectations. We're especially encouraged to see the higher sales in mattress fabrics, following a difficult year of declining sales related to the influx of low-cost mattress imports from China, as well as retail disruption. The mattress industry appears to be stabilizing, and we are realizing some benefits from the punitive anti-dumping measures announced by the U.S. government early in our first quarter. We are optimistic our business will continue improving with the further reduction of excess inventory of the China mattress imports. We have also faced external challenges in the upholstery fabrics business due to the ongoing international trade disputes and recently imposed additional tariffs. However, we are pleased that in spite of the lower sales and uncertain market conditions, our upholstery fabric business showed improved profitability for the first quarter of fiscal 2020. Additionally, we continue to evaluate and develop our strategy for Culp Home Fashions, our business products business. We're focused on the best way to leverage this new online sales platform and expand our market reach with new products and customers. and expect improving results over the next few quarters. In each of our businesses, we executed our product-driven strategy with a relentless emphasis on design creativity and product innovation. With the support of our flexible and growing global platform, we are confident we can sustain our strong competitive advantage and respond to the changing demand trends of our diverse customer base. Importantly, we have the financial strength to pursue our growth strategy. I'll now turn the call over to Ken, who will review the financial results for the quarter.