Culp, Inc.

Good day and welcome to CULP's third quarter 2020 earnings conference call. Today's call is being recorded. At this time, for opening remarks and introductions, I'd like to turn the call over to Ms. Drew Anderson. Please go ahead.

Thank you. Good morning and welcome to the CULP conference call to review the company's results for the third 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 to 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 8K filed yesterday and posted on the company's website at Culp.com. A slide presentation with supporting summary financial information is also available on the company's website as part of the webcast today. 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 8K filed yesterday and posted on the company's website. I will now turn the call over to Yves Culp, Chief Executive Officer. Please go ahead, sir.

Good morning, and thank you 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 are Kim Bowling, Chief Financial Officer of Culp, and Boyd Chumley, President of our upholstery fabrics business. We also have Frank Saxon, executive chairman of the company, who's dialing in remotely. I will now bring in the call with some brief comments, and Ken will then review the financial results for the quarter. I will then update you on the strategic actions in each of our training segments, and then after that, Ken will review our fourth quarter fiscal 2020 business outlook. We will then be happy to take any questions. Before I begin my comments on our third quarter results, I'd like to first address our thoughts regarding the coronavirus and any impact to our current supply chain. Currently, Culp has not seen significant impacts from the virus in any of our businesses. In our upholstery fabrics business, our Culp China location is operating at normal levels with virtually all employees reporting to work. We've also built a stable, long-term supply base in China, and we work with vendors who favor Culp due to our strong, trusted relationship. We have experienced minimal delays as most of our suppliers have backed nearly full output and continue to prioritize our production. We have also relocated a considerable amount of our cut and sew production to two facilities we work with in Vietnam. Likewise, in both our mattress fabrics and home accessories business, we are not currently experiencing any delays in Asia, and we also have significant alternative locations for production as needed. This includes production or sourcing capabilities in the U.S., Canada, Haiti, Vietnam, and Turkey. While we cannot predict whether the virus will have any negative impact on consumer confidence in the U.S. consumer market, we believe our solid and stable supply chain and our global platform supports our ability to manage any disruption created by the outbreak. Now I'll turn to the third quarter results. As previously announced, our results for the quarter reflected unexpected sales, particularly in our core business segments. While several external factors affected our results for the third quarter, we believe Culp is well positioned for the medium and long term. Our global platform is reactive and is a distinct competitive advantage for the company, providing the ability to quickly respond to changing market dynamics. We also benefit from significant synergies across our business segments that are fostering collaboration and product development and allow us to better serve our customers in all markets. Above all, we remain focused on innovation and creative designs in all of our businesses, and we are confident in our product-driven strategy and the ability to meet the changing demands of a diverse customer base. Throughout fiscal 2020, we have maintained our position as a trusted supplier of fabrics for a global marketplace. Importantly, We have the financial strength to support and execute our strategies and continue returning funds to our shareholders. We look forward to the opportunities ahead for the remainder of fiscal 2020 and beyond. I'll now turn the call over to Ken, who will review financial results for the quarter.