Culp, Inc.

fourth quarter 2020 earnings results. Today's conference is being recorded at this time for the opening remarks. Please go ahead.

Thank you. Good morning and welcome to the CULT conference call to review the company's results for the fourth quarter and fiscal 2020 year. 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 facts. 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 measurements is included as a schedule to the company's 8K file 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 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 8K file yesterday and posted on the company's website. With that, I will now turn the call over to Yves Culp, Chief Executive Officer of Culp. Please go ahead, sir.

Thank you, Drew. 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 Ken Bowling, Chief Financial Officer of Colt, and Boyd Chumley, President of our Upholstery Fabrics business. We also have Frank Saxon, Executive Chairman of the company, dialing in remotely. I will begin the call with some brief comments, and Ken will then review the financial results for the quarter and the full year. I will then update you on the strategic actions in each of our operating segments. After that, Ken will review our first quarter fiscal 2021 business outlook, and we will then be happy to take your questions. The broad economic disruption caused by the COVID-19 pandemic significantly affected our performance for the fourth quarter and fiscal 2020. As the fourth quarter began, we were executing well on our strategic initiatives and generating momentum in our businesses. However, the impact of the COVID-19 pandemic began to materialize in the second half of March as retail stores across the country closed and many of our customers shut down or limited their operations for several weeks. Despite the challenging conditions, all of our employees around the world have done an outstanding job servicing our customers and supporting essential services throughout this pandemic. I am extremely proud of their hard work and dedication, especially in their efforts to work cross-functionally to meet critical needs and ensure we are well positioned as the economy continues to recover. The measures we've taken in recent weeks, combined with our team's agility, innovation, and resilience, give me confidence in our ability to navigate the environment we're facing, to increase our market share, and to emerge stronger as our business conditions improve, which we are already experiencing. We cannot thank our 1400 plus health associates enough for their courage and effort during this time. The safety of our employees remains our top priority. We entered this period with a sound balance sheet and acted swiftly and decisively to adjust our plans and enhance our cash position, including the strategic sale of our ownership interest in luxury. This sale allowed us to focus on our core businesses during this unprecedented environment, while also maintaining a strong working relationship with eLuxury going forward that allows us to preserve a beneficial sales channel for our core products. At the same time, we continued to execute our product-driven strategy and focus on innovation and design creativity in both of our business segments, despite the challenging conditions. As a result of the measures we have taken, we ended the fourth quarter with a net cash position that was stronger than the end of the third quarter, even with these limited operations. Although the ongoing impact and duration of this health and economic crisis remains unknown, our business has improved materially since the end of fiscal 2020, and we are encouraged by positive sales trends and reports of consumer spending in the home furnishing sector. Our mattress fabric segment and our wholesale fabric segment have both seen better than expected increases in orders, shipments, and output for the first eight weeks of fiscal 2021. We have also continued our intense focus on liquidity and outperformed our expectations for the first eight weeks of fiscal 2021 without incurring any cash burn during this period. It is likely that the COVID-19 pandemic will continue to have some impact on our business, through at least the first half of fiscal 2021. Barring additional shutdowns as a result of the virus, we believe business will continue its solid return through the first and second quarters of fiscal 2021, and we will benefit from pent-up demand and increased consumer attention to the home environment and overall comfort. Our cash position is strong, and as a result of these factors, we recently repaid all outstanding borrowings we had previously drawn down under our credit facilities during the fourth quarter. We're also pleased to announce that our Board of Directors declared a quarterly cash dividend of 10.5 cents per share payable in July. Importantly, the Board will continue to evaluate the appropriateness of the current dividend rate going forward in light of economic conditions and the company's performance in the upcoming quarters. With the strength of the company's balance sheet, we are confident in our ability to weather the ongoing disruption over the near term and emerge from this crisis in a preferred position. We're excited about the significant improvement we expect for the first quarter of fiscal 2021 as we continue to execute our product-driven strategy and demonstrate the resilience and strategic advantage of our global platform and stable supply chain. I'll now turn the call over to Kim, who will review the financial results for the quarter and also the full year.