Good day, welcome to the CULP, Inc. fourth quarter fiscal 2023 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on a touchtone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Dru Anderson. Please go ahead. Thank you. Good morning, welcome to the CULP conference call to review the company's results for the fourth quarter and fiscal 2023 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 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. Additional risks and uncertainties that we do not presently know about or that we currently consider to be immaterial may also affect our business operations and financial results. You are cautioned not to place undue reliance on forward-looking statements made today. 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 in the tables to the press release, included as an exhibit to the company's Form 8-K 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 of today's call. I will now turn the call over to Mr. Iv Culp, President and Chief Executive Officer of CULP. Please go ahead, sir. Thank you, Dru. Good morning, and thank you for joining us today. I'd like to welcome everyone to the CULP quarterly conference call with analysts and investors. With me on the call are Ken Bowling, our Chief Financial Officer, Boyd Chumbley, President of our Upholstery Fabrics business, and Tommy Bruno, President of our Mattress Fabrics business. I will begin the call with some opening comments, including a discussion of key points and topics for the quarter and priorities as we look ahead. After that, Ken will review the financial results for the quarter and the full year. I will review our business outlook for the first quarter of fiscal 2024. We will then take your questions. When we think about the current state of our business, we are furthering the themes we discussed last quarter and expanding them with a few important points that illustrate where CULP, Inc. is today. First, we are encouraged by our sequential and year-over-year improvement for the quarter, despite ongoing demand softness within the two industries we service. Second, we reemphasize our unwavering focus on maintaining a strong balance sheet and managing our cash position. Third, we are excited by the ongoing comprehensive transformation within our CHF Mattress Fabrics business. Regarding our quarterly results, our sales and operating performance reflected solid improvement, both sequentially and year-over-year in both dollars and units, even as demand remained soft in the mattress and residential home furnishings industries. The strong sequential improvement in our mattress fabrics segment was driven by the rollout of new customer programs during the period. As we have been commenting for some time now, these new programs are priced in line with current costs and are expected to grow this segment's market position in fiscal 2024. The CULP Home Fashions business is also seeing some benefit from improvement in operational efficiencies and cost reduction initiatives across our locations, I will expand on this more shortly. For the Upholstery Fabrics segment, demand remains solid in our hospitality contract business. Our residential fabrics business also improved in Q4 due to a seasonal pickup following third quarter shutdowns for the Chinese New Year holiday, as well as a $1 million non-recurring payment related to newly negotiated terms with a cut-and-sew customer. These new terms are in connection with reduced market demand for cut-and-sewn upholstery kits and the related rationalization of our international upholstery cut-and-sew platforms to align with current demand levels. Importantly, we believe this is a positive outcome for both CULP and for our customer. Our ongoing business relationship remains solid. Fiscal 2023 was a tough year, with much volatility in the macro environment that pressured demand in both of our business segments. The shift in consumer spending trends following the pandemic stay-at-home surge, inflationary pressures affecting consumer spending, and high inventory levels at residential furniture manufacturers and retailers are all factors that are out of our control. We are pleased to have ended the year with sequential and year-over-year improvement in our quarterly sales and operating results. This reflects some of the initiatives we've undertaken internally to manage our business and control what we can control. We believe we have recovered from the bottom and repositioned our business towards stabilization and an early recovery next fiscal year, especially in our mattress fabric segment. We do understand the pace of our improvement could be affected by recovery in the overall macro environment. Even in an ongoing tough demand backdrop, we expect continued and sustainable progress in improving our operating results. Our market position is solid, and we believe macro conditions will stabilize and excess inventory will fully flush through the supply chain at some point. As that occurs, we are extremely well positioned, and we expect stronger results. I'll shift to the second point, which is our unwavering commitment to maintain a strong balance sheet and to manage our cash position. This is one of the main things we have some control over, regardless of business conditions, and I'm very pleased with the management team for its diligence in maintaining our solid financial position this year. We ended the year with a higher cash position than the prior year, with $21 million in cash and no outstanding borrowings. We did an excellent job with inventory reductions throughout the year, with a favorable cash impact of $21.1 million since the end of the third quarter of last fiscal year. We also managed accounts receivable effectively by improving our terms with key customers and navigating three major bankruptcies without any impact. Additionally, we generated positive cash flow from operations and free cash flow for the fiscal year of $7.8 million and $6.9 million, respectively, a significant improvement compared to last year's negative cash flow from operations of -$17.4 million and negative free cash flow of -$24.3 million. This is a $31 million turnaround in free cash flow. Outstanding cash management during challenging times. I can't thank our associates enough. Importantly, we continue to have no outstanding debt. Our recent asset-based revolving credit facility enhances our liquidity position should we ever need it. We fully recognize that management of CULP's strong balance sheet is a critical initiative and allows us to focus on investing in and optimizing our global manufacturing platform and to support our focus on growing profitable sales. The third important point, both for the quarter and as we look ahead, is the ongoing business transformation underway in CULP Home Fashions, which is our mattress fabric segment. As we've commented before, this certainly falls within the scope of areas we can control, and we believe CHF improvement is our best opportunity for growth from current levels. Our CULP Home Fashions business is executing a comprehensive business transformation plan, laying the foundation for steady, sequential improvement under the leadership of Division President Tommy Bruno, along with a restructured management team. This transformation plan focuses on long-term improvement in every facet of the business, including quality, sales, marketing, and operational processes, supply chain optimization, employee engagement, and organizational management structure. Tommy and the CHF management team are relentlessly focused on operational excellence, leading the team in improving production efficiency and quality management, as well as balancing our product mix to proper volumes and steady run schedules. We have made excellent progress with getting the right personnel in the right places and laying the building blocks for sustainable improvement in fiscal 2024. The bedding industry is soft, and this slowness may remain for some period, but we can still improve our performance through improved operations. Assuming our sales volumes in the upcoming fiscal year do not fall materially below last year, we would expect to see significant progress with steady, sustainable improvement in CHF. We are planting seeds for the future of this business, and as macro conditions strengthen, we will further see the benefit of this transformation. Our CHF market position is solid, and we are growing with new program placements. We are also optimistic about additional planned program launches during this calendar year, although the timing of those launches could swing among quarters. Pivoting now to CULP Upholstery Fabrics. Despite industry softness, this segment remains well positioned for the long term with our scalable global platform and innovative product offerings, including our popular portfolio of LiveSmart performance products and some new product technologies. We also expect this segment will benefit in fiscal 2024 from improved inventory management, a solid hospitality contract business, improvement in our Read Window business, and a rationalized cut and sew platform. We are also diligently managing our global platform within CULP Upholstery Fabrics as we look to provide options within our supply chain for both fabrics and cut-and-sewn kits. Customer service is a hallmark for CULP. A diversified platform provides improved risk management and a more stable supply base. Of note, our hospitality contract business accounted for 32% of segment sales for the fourth quarter. While this percentage is higher than normal due to lower residential sales, it does reflect the ongoing solid performance of our hospitality contract business, as well as its importance to our overall strategy of product diversification for the segment. I'll now turn the call over to Ken, who will review the financial results for the quarter, and then I'll come back and review the outlook for the fourth quarter of this fiscal year. Thanks, Iv. As mentioned earlier on the call, we have posted a slide presentation to our investor relations website that covers certain summary financial information. We've also posted our updated investor presentation. Here are the financial highlights for the fourth quarter. Net sales were $61.4 million, up 7.9% compared with the prior year period. The company reported a loss from operations of $4 million, as compared with a loss of operations of $5.4 million for the prior year period, and a loss from operations of $7.8 million for the third quarter of this fiscal year, which included $711,000 in restructuring expense. I'll comment more detail on divisional sales and operating performance in a moment. Net loss for the fourth quarter was $4.7 million, or $0.38 per diluted share, compared with a net loss of $6 million, or $0.49 per diluted share for the prior year period. Our overall operating performance for the fourth quarter, as compared to the prior year period, was positively affected by higher sales in both divisions. It was also affected by improved margins on new products, improvement in operating efficiencies, and lower overhead costs in our mattress fabric segment during the quarter, as well as receipt of a nonrecurring customer payment, as Iv discussed earlier, lower inventory markdowns, lower overhead costs in our Upholstery Fabric segment during the quarter, and a favorable product mix. The lower overhead costs in our mattress fabric segment during the quarter related to the restructuring or rationalization of this segment's cut-and-sew mattress cover platform in North Carolina, initiated during the second quarter of this fiscal year. The lower overhead costs in our Upholstery Fabric segment during the quarter related to the restructuring and rationalization of this segment's cut-and-sew platforms, initiated earlier in this fiscal year. The improvement in operating performance for the fourth quarter, as compared to the prior year period, was partially offset by higher SG&A expense in the Upholstery Fabric segment and unallocated corporate, due mostly to higher incentive compensation expense during the period. For the full fiscal year, net sales were $234.9 million, down 20.3% compared to the previous year. Loss from operations for the full fiscal year was $28.5 million, compared with income from operations of $678,000 for the prior year. The loss from operation of this fiscal year includes $9.9 million relating to certain inventory impairment charges, losses from inventory closeout sales, inventory markdowns, and restructuring expense and related charges during the period. Net loss for the full fiscal year was $31.5 million, or $2.57 per diluted share, compared with a net loss of $3.2 million, or $0.26 per diluted share for the prior year. The effective income tax rate for the fourth quarter of this fiscal year was a -20.6%, compared with a -4.4% for the same period a year ago. The effective income tax rate for the full fiscal year of 2023 was a - 11%, compared with a - 888% for the prior fiscal year. Our effective income tax rate for the fourth quarter and for the full fiscal year was impacted by the company's mix of earnings between our U.S. and foreign subsidiaries, with an operating loss in the U.S., whilst China and Canada generated income that was taxed at higher rates as compared to the U.S. Our cash income tax payments totaled $2.3 million for this fiscal year. We currently expect cash income tax payments of $2.5 million for the next fiscal year. Importantly, our estimated cash income tax payments for fiscal 2024 are management's current projections only and can be affected by a variety of factors over the course of the year. Let's take a look at our business segments. For the mattress fabric segment, sales for the fourth quarter were $30.7 million, up 3.1% compared with last year's fourth quarter and up 24.3% compared sequentially with the third quarter of this fiscal year. The improvement in sales was driven mostly by the rollout of new customer programs, despite a difficult industry demand environment during the quarter. Importantly, these new programs are priced in line with current costs, and we expect they benefit as they expand across more sales channels and retail floors, and as additional new product rollout launches during the calendar year. Operating loss for the quarter was $2.5 million, compared with an operating loss of $2.9 million a year ago, an operating loss of $4.2 million the previous quarter. Our operating performance for the fourth quarter this year, as compared both sequentially and to the prior year period, was favorably affected by higher sales, better margins on new products, improvement in operating efficiencies, and lower costs resulting from the restructuring and rationalization of the segment's mattress cover platform in North Carolina, initiated during the second quarter of this fiscal year. For our Upholstery Fabric segment, sales for the fourth quarter were $30.7 million, up 13.1% over the prior year period, which was adversely affected by COVID-related shutdowns in China during the quarter. Sequentially, sales were up 10.4% compared to the third quarter of this fiscal year. Sales for our residential products improved sequentially as compared to the third quarter, due to a seasonal pickup in demand following shutdowns in the Chinese New Year holiday, which fell entirely within the third quarter this year. Sales were also positively affected by receipt of the $1 million nonrecurring payment Iv mentioned earlier, relating to the newly negotiated terms with a cut-and-sew customer. Demand remained solid in our hospitality contract business during the fourth quarter, with sales for this business accounting for approximately 32% of the Upholstery Fabrics segment's total sales. Income from operations for the quarter was $1.6 million, compared with a loss of operations of $116,000 a year ago. Our operating performance for the fourth quarter this year, as compared both sequentially and to the prior year period, was positively affected by higher sales, including the $1 million nonrecurring payment mentioned above, as well as favorable product mix, lower inventory markdowns, and lower overhead costs resulting from the restructuring of this segment's cut-and-sew platforms during earlier periods. These factors were partially offset by higher incentive compensation expense during the period due to this segment's significant contribution to the company's free cash flow for this fiscal year. Now I'll turn to the balance sheet. We reported $21 million in total cash and no outstanding debt as of the end of this fiscal year. This compares with $14.6 million in total cash and no outstanding debt as of the end of last fiscal year. Cash flow from operations and free cash flow were $7.8 million and $6.9 million, respectively, for this fiscal year, as compared with cash flow from operations and free cash flow of a - $17.4 million and - $24.3 million, respectively, for last fiscal year. Our cash flow from operations and free cash flow during the fiscal year were favorably affected by working capital management, namely reductions in inventory. Importantly, since the end of the third quarter of last fiscal year, inventory reduction has contributed $21.1 million to the company's cash position. Additionally, consistent with our focus on inventory, we tightly managed our capital spending during the year, with an emphasis on business-critical projects only. Capital expenditures were $2.1 million for the year, compared with $5.7 million for last fiscal year. Based on current expectations, capital spending for fiscal 2024 is expected to be in the range of $4 million-$6 million and will center mostly on maintenance CapEx and projects focused on improving quality and efficiency in our mattress fabrics business. Depreciation for fiscal 2024 is expected to be approximately $7 million. With respect to liquidity, as of the end of fiscal 2023, we had $47.8 million, consisting of $21 million in total cash and $26.8 million in borrowing availability under our asset-based domestic credit facility. Borrowing availability under this facility is based on a calculation using certain of the company's accounts receivable and inventory, determined on a monthly basis. The company did not pay any dividends during this fiscal year, following the suspension of our quarterly cash dividend on our common stock early in the year. The company also did not repurchase any shares during this fiscal year, leaving $3.2 million available under our current share repurchase program. Despite the current share repurchase authorization, we do not expect any activity during the first quarter of fiscal 2024, as we remain focused on preserving liquidity and being positioned to support future growth opportunities. With that, I'll turn the call back over to Iv. Thanks, Ken. Due to the continued volatility in the macro environment, we have provided only limited financial guidance for the first quarter of fiscal 2024. We expect consolidated net sales for the first quarter to be slightly lower compared to the first quarter of fiscal 2023, due mostly to current softness in the residential home furnishings industry, as well as some slowing of demand and the timing of additional new program launches in the mattress fabric segment. We expect a consolidated operating loss for the first quarter of fiscal 2024 within the range of - $3.5 million to - $4 million, a solid improvement compared to the $4.7 million operating loss for the prior year period. I know there are some questions about the expected slight decline in sales for the first quarter. Here's how we would discuss that. There continues to be weakness in the residential home furnishings industry, which makes it a challenging revenue environment. Yes, our hospitality contract business continues to look favorable, but the residential slowness is overweighing that. Remember that our fourth quarter sales for our residential Upholstery Fabrics business were positively affected by seasonality and a one-time payment that won't recur in the first quarter. On the mattress fabric side, while there is still overall malaise in the industry, we expect to continue to benefit from the launch of planned new programs for our customers. This is business that we have won and that is scheduled to launch during calendar 2023, but the timing of those launches could swing between quarters, and we try to account for that in our quarterly guidance. Importantly, and I want to highlight this once more, even with the forecasted decline in sales for the first quarter, we are still expecting a solid improvement in operating performance, reflecting the internal operational improvements we are making. As we commented, we expect to improve our business sequentially and organically via market position during fiscal 2024, with a return to quarterly operating profit during the year. The pace of our improvement is dictated by the recovery in the macro environment, and we need some macro tailwinds for recovery to happen quicker. Lastly, as we weather the current challenges, we will continue to be laser focused on prudent financial management, with the goal of always maintaining a strong balance sheet, especially with regard to ensuring a strategic balance in our working capital. We are optimistic about CULP's future, and we know that financial stability is paramount to our success. With that, we'll be happy to take some questions. We will now begin the question-and-answer session. To ask a question, you may press star, then one on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star and then two. At this time, we will pause momentarily to assemble our roster. Our first question comes from Anthony Lebiedzinski with Sidoti & Company. Please go ahead. Good morning, and thank you for taking the questions. First, congratulations on being able to maintain a strong balance sheet despite the difficulties in the business. I guess, you know, first question here. You talked about the comprehensive transformation and operational improvements that are underway at the CHF. You know, I guess, if you could put this in baseball terms, you know, what inning are we in actually, as far as these operational improvements? Yeah. Thank you, Anthony. I'm gonna let Tommy speak to that a little bit because he's executing this plan with a speed as fast as we can go. I just wanna thank you for say hello, first of all, and thank you for the comments on the balance sheet. That is a big deal to us, and I'm glad you recognize that improvement. I'm really happy with how the CHF transformation is going. It would be going better if the market was better. Tommy, I'll let you comment some, if you want to, where you see you are in the process and where you have left to execute. Yeah, sure. Thanks for the question, Anthony Lebiedzinski. From my point of view, I would say that we're in the middle innings, getting towards the later innings. We've established a good foundation. We've brought in a really good team to manage the transformation plan, and we have a good structure that is gonna inform all of our activities and how we execute them. I think now it's just a matter of getting through them as quickly as possible and in a way that drives the most financial benefit and long-term benefit. Anthony, it is interesting that you started with the comments on the balance sheet, because some of what Tommy needs to do is do some maintenance CapEx and be sure that we have equipment that's up to par for the speed we wanna run and the techniques we wanna operate through our platform. The fact that our balance sheet's in a position to do some capital spending to support his transformation, they do go hand in hand. Gotcha. Okay. Understood. Okay. I know you guys also talked about in the past about the increased collaboration with the new innovation center. Have you been able to see that, or is there, do you think there's more to come, you know, in terms of just the, you know, having the two segments to do more? I certainly believe, Anthony, you know, for most of CULP's history or recent history, we've intentionally operated those two businesses separately, and they have two very strong leadership teams. We are recognizing all the time that there are technologies and strategies and platform locations that work for both businesses. We don't ever wanna lose the personalities of the business, but we do wanna share ideas and best practices where we can. The innovation center was sort of step one, and having our teams operate there concurrently with customers and watching our customers realize the different product lines that we're in, whether it be bedding, furniture, residential, commercial, it's been fantastic. I think our people enjoy being together. Our customers like the atmosphere it provides. That's been a nice, as expected, a nice boost to the business. Terrific. Okay. Sounds great. Switching gears to the upholstery side. You called out the demand being solid in the hospitality and contract business. I guess, you know, two-part question there: First, are you getting more business from current clients, or are you actually getting new client wins, or maybe both? Then the second part of that question is, are you seeing any signs of any slowdown in that subsegment of the business? Yes, Anthony, this is Boyd. As to the first question, I'd say the strength of the business, there's some contribution both from existing customers, as the, you know, continuing to benefit from the shift in consumer spending to travel and experiences. It's certainly benefiting that segment, and really all customers in that segment. A lot of the strength and the solid incoming order and backlog position we have is related to existing customers, but we certainly are seeing new customer contributions in that as well. It's really both fronts are contributing overall. Okay. To this point, no, for your second part of your question, we're really not seeing any signs of any downturns in that segment yet. As you know, those orders and backlogs do have a longer timeframe for completion and installation. We've got a pretty good backlog carrying out over a number of months at this point and really not seeing yet any signs of slowdown there. Remains very solid. Okay, gotcha. Okay, thanks a lot. You know, last question, you know, in terms of product pricing, you know, what is your confidence level, in terms of being able to continue to price products properly to reflect your own current costs? I feel very confident in that, Anthony. It's just maybe it's confidence compared to where we were. We did talk a lot in this last fiscal year, which was a tough year, about always being behind the eight ball in terms of catching the cost. We just, things were going up on us faster than we could pass them through. Upholstery did a better job than mattress fabrics on that, and it's not a management thing, it just, the industry allowed us a different outcome. We just didn't keep pace on the mattress side. As we've gotten to the point now where so much of our business feels like it needs to be re-merchandised, and that's coming from retailers and customers wanting to freshen floors, we're able to have a lot of new introduction that's set at proper margin. It sounds obvious, but we just were in a period where we weren't getting fair margins on some of the business that was lingering. Now as we launch new things, it comes at a better prospect. I don't feel. It's always a competitive business. We're used to that for our entire history. We have improving costs, and we have new products with new technologies that we can price fairly. I don't, it's a competitive business, but I'm not worried about price pressure for us. That's great to hear. Well, thank you very much, and best of luck. Thank you, Anthony. Thank you. The next question comes from Rex Henderson, with Water Tower Research. Please go ahead. Good morning. Thanks for taking my call, I wanna offer my congratulations to the whole executive team and to Tommy in particular, for showing some progress in CHF. That's encouraging, but particularly focused on the gross margin line, which turned positive for the first time in a while. My question start there, I think. You know, the gross margin was positive this quarter, but not very strongly yet. I'm just wondering kind of where you are in the process of getting, you know, how many SKUs are there that are still negative margin products, and how long is it gonna take to get to the point where the entire lineup is making money for you? Yeah, thank you for the question, Rex. For us, we are working diligently on the SKU rationalization process that we've talked about previously. I would estimate that over the next quarter or two, that we would be worked through on all of the SKUs that aren't productive for us. We're having those conversations daily. As Iv mentioned, a lot of the new programs that we're launching and as they phase in and become a larger part of our mix, as we rationalize out the lower profitability items and get the newer programs launched, we expect steady improvement in not only our top line, but we expect that to fall through on the bottom line as well. Okay, great. A couple of quarters to get to a more reasonable number. That's really, that's encouraging. you know. Rex, just to make a point, I'm sure you're fully aware of this. I mean, it would be, an option would be just to stop selling those items, but That's not a responsible supplier. We need to phase these out through the right process with our customers and support our customer for the long term, which we always will do, and make that transition on the most expedient way we can. We can't rush it. We just need to make it happen over, hopefully, a short period. The press release and in your comments, you also mentioned operating efficiencies. Can you quantify that a little bit? What's going on in terms of operating efficiencies in CHF? Yeah, Rex, this is Ken. I think that, you know, that's obviously, you know, one of the focuses that we've had. You know, we've had issues with labor, you know, getting the right mix of labor. You know, that part of the challenge has calmed down, we're getting more consistent labor there. I mean, that's been a focus. Obviously, the, you know, right sizing the business, getting the right run rates and, you know, getting the cost in line there. Those have all been concurrent, high priorities as we've gone through the last several months. I know, Tommy, that's been your focus or is your focus now going forward. It's hard to quantify. It's just, we've got a number of initiatives that we're working on, as Iv said, you know, we're confident that over time, our operating performance will reflect those. Rex, if we were ranking the most important things to us to return profitability, the new volume at proper margin is first. That's the first thing. Then the operational improvements are right behind it, and that's inclusive also of improved costing of materials, freight costs, and things like that are starting to help. It's operating better in addition to better costing, but really, the main driver is gonna be volume and new programs. Okay. actually, Ken touched on another question I had, and that is, earlier you talked about you had some labor turnover and labor inefficiencies. Do you feel like that's fully behind you, or is there still progress to be made on that front? I think Rex, it's certainly better than it was. We went through a period of time where it was just difficult to retain anyone. I would say today, Tommy can comment because he has the most U.S. employees, we aren't having a problem finding workers anymore, but there is still some challenge in retaining workers. I mean, we aren't the jobs we offer are. They're hard jobs, you know? They're long hours, and there's gotta be some skilled labor there. Much better. Now we've got a lot of attention focused on retaining those people. Is that fair, Tommy, is what you're seeing? Yeah. Yeah, we're able to recruit effectively, and we're working very hard on employee engagement and retention. Okay. All right. Finally, I wanna turn my attention to CUF, you know, in the home furnishings business. You know, you mentioned that there's I think you mentioned this, that some downstream inventory issues. Can you give us any color on how you where that stands and how long you think that's gonna take to clear? Do you have any visibility on that? Yeah, Rex, this is Boyd. I would say, to a large degree, those downstream inventories have been cleared and addressed, certainly in much lower levels of inventory in the pipeline at the retail and manufacturer level than there has been over the course of the last number of months and year. That situation has greatly improved. We are, you know, now seeing more of the true consumer purchases at retail are now triggering ordering of fabrics to us on a more, you know, regular basis there. A lot of that inventory position has been addressed. There's probably still some pockets, in some various areas, but to, on a macro level, that's been significantly reduced and, not as big a factor to our incoming pace of orders as it has been in the past couple of quarters. Okay. Sounds a little bit of encouragement there. Okay, thank you for taking my questions, and I'll pass it on to the next guy. Thank you, Rex. Thanks, Rex. This concludes our question-and-answer session. I would like to turn the conference over to Iv Culp for any closing remarks. Thank you, operator, and again, thanks for everyone for your participation and your interest in CULP. We look forward to updating you on our progress next quarter. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.