Attached files
| file | filename |
|---|---|
| EX-99.(A) - EXHIBIT 99(A) - CULP INC | a50488382ex99a.htm |
| 8-K - CULP, INC. 8-K - CULP INC | a50488382.htm |
Exhibit 99(b)
Page 1 of 9
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
|
CONSOLIDATED STATEMENTS OF NET INCOME
|
|
FOR THREE MONTHS ENDED OCTOBER 28, 2012 AND OCTOBER 30, 2011
|
|
(UNAUDITED)
|
|
(Amounts in Thousands, Except for Per Share Data)
|
|
THREE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
October 28,
|
October 30,
|
% Over
|
October 28,
|
October 30,
|
||||||||||||||||
|
2012
|
2011
|
(Under)
|
2012
|
2011
|
||||||||||||||||
|
Net sales
|
$ | 65,560 | 58,013 | 13.0 |
%
|
100.0 |
%
|
100.0 |
%
|
|||||||||||
|
Cost of sales
|
53,683 | 49,367 | 8.7 |
%
|
81.9 |
%
|
85.1 |
%
|
||||||||||||
|
Gross profit
|
11,877 | 8,646 | 37.4 |
%
|
18.1 |
%
|
14.9 |
%
|
||||||||||||
|
Selling, general and
|
||||||||||||||||||||
|
administrative expenses
|
7,209 | 5,720 | 26.0 |
%
|
11.0 |
%
|
9.9 |
%
|
||||||||||||
|
Income from operations
|
4,668 | 2,926 | 59.5 |
%
|
7.1 |
%
|
5.0 |
%
|
||||||||||||
|
Interest expense
|
156 | 188 | (17.0 | ) |
%
|
0.2 |
%
|
0.3 |
%
|
|||||||||||
|
Interest income
|
(96 | ) | (110 | ) | (12.7 | ) |
%
|
(0.1 | ) |
%
|
(0.2 | ) |
%
|
|||||||
|
Other expense (income)
|
76 | (15 | ) |
N.M.
|
0.1 |
%
|
(0.0 | ) |
%
|
|||||||||||
|
Income before income taxes
|
4,532 | 2,863 | 58.3 |
%
|
6.9 |
%
|
4.9 |
%
|
||||||||||||
|
Income taxes*
|
(3,736 | ) | (3,389 | ) | 10.2 |
%
|
(82.4 | ) |
%
|
(118.4 | ) |
%
|
||||||||
|
Net income
|
$ | 8,268 | 6,252 | 32.2 |
%
|
12.6 |
%
|
10.8 |
%
|
|||||||||||
|
Net income per share-basic
|
$ | 0.68 | $ | 0.49 | 38.8 |
%
|
||||||||||||||
|
Net income per share-diluted
|
$ | 0.67 | $ | 0.49 | 36.7 |
%
|
||||||||||||||
|
Average shares outstanding-basic
|
12,191 | 12,733 | (4.3 | ) |
%
|
|||||||||||||||
|
Average shares outstanding-diluted
|
12,348 | 12,871 | (4.1 | ) |
%
|
|||||||||||||||
|
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)
|
|||||||||||||||||||||||
|
THREE MONTHS ENDED
|
|||||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
||||||||||||||||||||||
|
October 28,
|
October 30,
|
% Over
|
October 28,
|
October 30,
|
|||||||||||||||||||
|
2012
|
2011
|
(Under)
|
2012
|
2011
|
|||||||||||||||||||
|
Income before income taxes (see above)
|
$ | 4,532 | 2,863 | 58.3 |
%
|
6.9 |
%
|
4.9 |
%
|
||||||||||||||
|
Adjusted Income taxes (2)*
|
680 | 515 | 32.0 |
%
|
15.0 |
%
|
18.0 |
%
|
|||||||||||||||
|
Adjusted net income
|
3,852 | 2,348 | 64.1 |
%
|
5.9 |
%
|
4.0 |
%
|
|||||||||||||||
|
Adjusted net income per share-basic
|
$ | 0.32 | $ | 0.18 | 77.8 |
%
|
|||||||||||||||||
|
Adjusted net income per share-diluted
|
$ | 0.31 | $ | 0.18 | 72.2 |
%
|
|||||||||||||||||
|
Average shares outstanding-basic
|
12,191 | 12,733 | (4.3 | ) |
%
|
||||||||||||||||||
|
Average shares outstanding-diluted
|
12,348 | 12,871 | (4.1 | ) |
%
|
||||||||||||||||||
|
(1) Culp, Inc. currently does not incur cash income tax expense in the US due to its $59.9 million in net operating loss carryforwards. Therefore,
|
|||||||||||||||||||||||
|
adjusted net income is calculated using only income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 9 of 9.
|
|||||||||||||||||||||||
|
(2) Represents estimated income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 9 of 9.
|
|||||||||||||||||||||||
|
* Percent of sales column for income taxes is calculated as a % of income before income taxes.
|
|||||||||||||||||||||||
Page 2 of 9
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
|
CONSOLIDATED STATEMENTS OF NET INCOME
|
|
FOR THE SIX MONTHS ENDED OCTOBER 28, 2012 AND OCTOBER 30, 2011
|
|
(UNAUDITED)
|
|
(Amounts in Thousands, Except for Per Share Data)
|
|
SIX MONTHS ENDED
|
|||||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
||||||||||||||||||||||
|
October 28,
|
October 30,
|
% Over
|
October 28,
|
October 30,
|
|||||||||||||||||||
|
2012
|
2011
|
(Under)
|
2012
|
2011
|
|||||||||||||||||||
|
Net sales
|
$ | 134,744 | 118,283 | 13.9 |
%
|
100.0 |
%
|
100.0 |
%
|
||||||||||||||
|
Cost of sales
|
109,746 | 100,759 | 8.9 |
%
|
81.4 |
%
|
85.2 |
%
|
|||||||||||||||
|
Gross profit
|
24,998 | 17,524 | 42.7 |
%
|
18.6 |
%
|
14.8 |
%
|
|||||||||||||||
|
Selling, general and
|
|||||||||||||||||||||||
|
administrative expenses
|
14,850 | 11,477 | 29.4 |
%
|
11.0 |
%
|
9.7 |
%
|
|||||||||||||||
|
Income from operations
|
10,148 | 6,047 | 67.8 |
%
|
7.5 |
%
|
5.1 |
%
|
|||||||||||||||
|
Interest expense
|
346 | 409 | (15.4 | ) |
%
|
0.3 |
%
|
0.3 |
%
|
||||||||||||||
|
Interest income
|
(222 | ) | (238 | ) | (6.7 | ) |
%
|
(0.2 | ) |
%
|
(0.2 | ) |
%
|
||||||||||
|
Other expense
|
121 | 49 | 146.9 |
%
|
0.1 |
%
|
0.0 |
%
|
|||||||||||||||
|
Income before income taxes
|
9,903 | 5,827 | 70.0 |
%
|
7.3 |
%
|
4.9 |
%
|
|||||||||||||||
|
Income taxes*
|
(1,889 | ) | (2,244 | ) | (15.8 | ) |
%
|
(19.1 | ) |
%
|
(38.5 | ) |
%
|
||||||||||
|
Net income
|
$ | 11,792 | 8,071 | 46.1 |
%
|
8.8 |
%
|
6.8 |
%
|
||||||||||||||
|
Net income per share-basic
|
$ | 0.95 | $ | 0.63 | 50.8 |
%
|
|||||||||||||||||
|
Net income per share-diluted
|
$ | 0.94 | $ | 0.62 | 51.6 |
%
|
|||||||||||||||||
|
Average shares outstanding-basic
|
12,371 | 12,898 | (4.1 | ) |
%
|
||||||||||||||||||
|
Average shares outstanding-diluted
|
12,541 | 13,025 | (3.7 | ) |
%
|
||||||||||||||||||
|
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)
|
|||||||||||||||||||||||
|
SIX MONTHS ENDED
|
|||||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
||||||||||||||||||||||
|
October 28,
|
October 30,
|
% Over
|
October 28,
|
October 30,
|
|||||||||||||||||||
| 2012 | 2011 |
(Under)
|
2012 | 2011 | |||||||||||||||||||
|
Income before income taxes (see above)
|
$ | 9,903 | 5,827 | 70.0 |
%
|
7.3 |
%
|
4.9 |
%
|
||||||||||||||
|
Adjusted Income taxes (2)*
|
1,485 | 1,049 | 41.6 |
%
|
15.0 |
%
|
18.0 |
%
|
|||||||||||||||
|
Adjusted net income
|
8,418 | 4,778 | 76.2 |
%
|
6.2 |
%
|
4.0 |
%
|
|||||||||||||||
|
Adjusted net income per share-basic
|
$ | 0.68 | $ | 0.37 | 83.8 |
%
|
|||||||||||||||||
|
Adjusted net income per share-diluted
|
$ | 0.67 | $ | 0.37 | 81.1 |
%
|
|||||||||||||||||
|
Average shares outstanding-basic
|
12,371 | 12,898 | (4.1 | ) |
%
|
||||||||||||||||||
|
Average shares outstanding-diluted
|
12,541 | 13,025 | (3.7 | ) |
%
|
||||||||||||||||||
|
(1) Culp, Inc. currently does not incur cash income tax expense in the US due to its $59.9 million in net operating loss carryforwards. Therefore,
|
|||||||||||||||||||||||
|
adjusted net income is calculated using only income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 9 of 9.
|
|||||||||||||||||||||||
|
|
|||||||||||||||||||||||
|
(2) Represents estimated income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 9 of 9.
|
|||||||||||||||||||||||
|
* Percent of sales column for income taxes is calculated as a % of income before income taxes.
|
|||||||||||||||||||||||
Page 3 of 9
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||||||
|
OCTOBER 28, 2012, OCTOBER 30, 2011 AND APRIL 29, 2012
|
||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||
|
(Amounts in Thousands)
|
||||||||||||||||||||
|
Amounts
|
Increase
|
|||||||||||||||||||
|
October 28,
|
October 30,
|
(Decrease)
|
* April 29,
|
|||||||||||||||||
|
2012
|
2011
|
Dollars
|
Percent
|
2012
|
||||||||||||||||
|
Current assets
|
||||||||||||||||||||
|
Cash and cash equivalents
|
$ | 23,464 | 13,795 | 9,669 | 70.1 | % | 25,023 | |||||||||||||
|
Short-term investments
|
5,241 | 10,482 | (5,241 | ) | (50.0 | ) % | 5,941 | |||||||||||||
|
Accounts receivable
|
20,678 | 16,241 | 4,437 | 27.3 | % | 25,055 | ||||||||||||||
|
Inventories
|
38,261 | 33,776 | 4,485 | 13.3 | % | 36,373 | ||||||||||||||
|
Deferred income taxes
|
4,470 | 2,659 | 1,811 | 68.1 | % | 2,467 | ||||||||||||||
|
Assets held for sale
|
- | 75 | (75 | ) | (100.0 | ) % | 15 | |||||||||||||
|
Income taxes receivable
|
- | 79 | (79 | ) | (100.0 | ) % | - | |||||||||||||
|
Other current assets
|
1,640 | 1,602 | 38 | 2.4 | % | 1,989 | ||||||||||||||
|
Total current assets
|
93,754 | 78,709 | 15,045 | 19.1 | % | 96,863 | ||||||||||||||
|
Property, plant & equipment, net
|
30,621 | 30,431 | 190 | 0.6 | % | 31,279 | ||||||||||||||
|
Goodwill
|
11,462 | 11,462 | - | 0.0 | % | 11,462 | ||||||||||||||
|
Deferred income taxes
|
4,738 | 4,540 | 198 | 4.4 | % | 3,205 | ||||||||||||||
|
Other assets
|
1,868 | 1,982 | (114 | ) | (5.8 | ) % | 1,907 | |||||||||||||
|
Total assets
|
$ | 142,443 | 127,124 | 15,319 | 12.1 | % | 144,716 | |||||||||||||
|
Current liabilities
|
||||||||||||||||||||
|
Current maturities of long-term debt
|
$ | 2,401 | 2,401 | - | 0.0 | % | 2,404 | |||||||||||||
|
Line of credit
|
875 | - | 875 | 100.0 | % | 889 | ||||||||||||||
|
Accounts payable - trade
|
23,219 | 21,689 | 1,530 | 7.1 | % | 30,663 | ||||||||||||||
|
Accounts payable - capital expenditures
|
104 | 112 | (8 | ) | (7.1 | ) % | 169 | |||||||||||||
|
Accrued expenses
|
10,611 | 6,839 | 3,772 | 55.2 | % | 9,321 | ||||||||||||||
|
Accrued restructuring
|
- | 40 | (40 | ) | (100.0 | ) % | 40 | |||||||||||||
|
Income taxes payable - current
|
385 | 373 | 12 | 3.2 | % | 642 | ||||||||||||||
|
Total current liabilities
|
37,595 | 31,454 | 6,141 | 19.5 | % | 44,128 | ||||||||||||||
|
Income taxes payable - long-term
|
4,188 | 4,096 | 92 | 2.2 | % | 4,164 | ||||||||||||||
|
Deferred income taxes
|
856 | 659 | 197 | 29.9 | % | 705 | ||||||||||||||
|
Long-term debt , less current maturities
|
4,416 | 6,818 | (2,402 | ) | (35.2 | ) % | 6,719 | |||||||||||||
|
Total liabilities
|
47,055 | 43,027 | 4,028 | 9.4 | % | 55,716 | ||||||||||||||
|
Shareholders' equity
|
95,388 | 84,097 | 11,291 | 13.4 | % | 89,000 | ||||||||||||||
|
Total liabilities and
|
||||||||||||||||||||
|
shareholders' equity
|
$ | 142,443 | 127,124 | 15,319 | 12.1 | % | 144,716 | |||||||||||||
|
Shares outstanding
|
12,209 | 12,767 | (558 | ) | (4.4 | ) % | 12,703 | |||||||||||||
|
* Derived from audited financial statements.
|
||||||||||||||||||||
Page 4 of 9
| CULP, INC. FINANCIAL INFORMATION RELEASE |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
FOR THE SIX MONTHS ENDED OCTOBER 28, 2012 AND OCTOBER 30, 2011
|
| Unaudited |
|
(Amounts in Thousands)
|
|
SIX MONTHS ENDED
|
||||||||
|
Amounts
|
||||||||
|
October 28,
|
October 30,
|
|||||||
|
2012
|
2011
|
|||||||
|
Cash flows from operating activities:
|
|
|||||||
| Net income | $ | 11,792 | $ | 8,071 | ||||
| Adjustments to reconcile net income to net cash | ||||||||
| provided by operating activities: | ||||||||
| Depreciation | 2,539 | 2,386 | ||||||
| Amortization of other assets | 119 | 127 | ||||||
| Stock-based compensation | 197 | 178 | ||||||
| Excess tax benefit related to stock-based compensation | (60 | ) | (39 | ) | ||||
| Deferred income taxes | (3,325 | ) | (3,280 | ) | ||||
| Gain on sale of equipment | - | (128 | ) | |||||
| Foreign currency exchange gains | (66 | ) | (164 | ) | ||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | 4,353 | 4,004 | ||||||
| Inventories | (1,882 | ) | (4,964 | ) | ||||
| Other current assets | 373 | 750 | ||||||
| Other assets | (80 | ) | (31 | ) | ||||
| Accounts payable-trade | (7,397 | ) | (3,382 | ) | ||||
| Accrued expenses | 1,310 | (754 | ) | |||||
| Accrued restructuring | (40 | ) | (4 | ) | ||||
| Income taxes | (183 | ) | (189 | ) | ||||
| Net cash provided by operating activities | 7,650 | 2,581 | ||||||
|
Cash flows from investing activities:
|
||||||||
| Capital expenditures | (1,946 | ) | (2,551 | ) | ||||
| Proceeds from the sale of equipment | - | 130 | ||||||
| Purchase of short-term investments | (54 | ) | (4,789 | ) | ||||
| Proceeds from the sale of short-term investments | 795 | 2,032 | ||||||
| Net cash used in investing activities | (1,205 | ) | (5,178 | ) | ||||
|
Cash flows from financing activities:
|
||||||||
| Proceeds from lines of credit | 1,000 | 3,500 | ||||||
| Payments on lines of credit | (1,000 | ) | (3,500 | ) | ||||
| Payments on long-term debt | (2,300 | ) | (2,305 | ) | ||||
| Proceeds from common stock issued | 64 | 237 | ||||||
| Common stock shares repurchased | (5,022 | ) | (4,776 | ) | ||||
| Dividends paid | (747 | ) | - | |||||
| Debt issance costs | - | (26 | ) | |||||
| Excess tax benefit related to stock-based compensation | 60 | 39 | ||||||
| Net cash used in financing activities | (7,945 | ) | (6,831 | ) | ||||
|
Effect of exchange rate changes on cash and cash equivalents
|
(59 | ) | 42 | |||||
|
Decrease in cash and cash equivalents
|
(1,559 | ) | (9,386 | ) | ||||
|
Cash and cash equivalents at beginning of period
|
25,023 | 23,181 | ||||||
|
Cash and cash equivalents at end of period
|
$ | 23,464 | $ | 13,795 | ||||
|
Free Cash Flow (1)
|
$ | 5,705 | $ | 241 | ||||
| (1) |
Free Cash Flow reconciliation is as follows:
|
||||||||
|
FY 2013
|
FY 2012
|
||||||||
| A) | Net cash provided by operating activities | $ | 7,650 | $ | 2,581 | ||||
| B) | Minus: Capital Expenditures | (1,946 | ) | (2,551 | ) | ||||
| C) | Add: Proceeds from the sale of equipment | - | 130 | ||||||
| D) | Add: Excess tax benefit related to stock-based compensation | 60 | 39 | ||||||
| E) | Effect of exchange rate changes on cash and cash equivalents | (59 | ) | 42 | |||||
| $ | 5,705 | $ | 241 | ||||||
Page 5 of 9
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
|
STATEMENTS OF OPERATIONS BY SEGMENT
|
|
FOR THE THREE MONTHS ENDED OCTOBER 28, 2012 AND OCTOBER 30, 2011
|
|
(Unaudited)
|
|
(Amounts in thousands)
|
|
THREE MONTHS ENDED
|
||||||||||||||||||||||
|
Amounts
|
Percent of Total Sales
|
|||||||||||||||||||||
|
October 28,
|
October 30,
|
% Over
|
October 28,
|
October 30,
|
||||||||||||||||||
|
Net Sales by Segment
|
2012
|
2011
|
(Under)
|
2012
|
2011
|
|||||||||||||||||
|
Mattress Fabrics
|
$ | 39,697 | 35,242 | 12.6 | % | 60.6 |
%
|
60.7 | % | |||||||||||||
|
Upholstery Fabrics
|
25,863 | 22,771 | 13.6 | % | 39.4 |
%
|
39.3 | % | ||||||||||||||
|
Net Sales
|
$ | 65,560 | 58,013 | 13.0 | % | 100.0 |
%
|
100.0 | % | |||||||||||||
|
Gross Profit by Segment
|
Gross Profit Margin
|
|||||||||||||||||||||
|
Mattress Fabrics
|
$ | 7,539 | 5,938 | 27.0 | % | 19.0 |
%
|
16.8 | % | |||||||||||||
|
Upholstery Fabrics
|
4,338 | 2,785 | 55.8 | % | 16.8 |
%
|
12.2 | % | ||||||||||||||
|
Subtotal
|
11,877 | 8,723 | 36.2 | % | 18.1 |
%
|
15.0 | % | ||||||||||||||
|
Other non-recurring charges
|
- | (77 | ) | (1) | (100.0 | ) % | 0.0 |
%
|
(0.1 | ) % | ||||||||||||
|
Gross Profit
|
$ | 11,877 | 8,646 | 37.4 | % | 18.1 |
%
|
14.9 | % | |||||||||||||
| Selling, General and Administrative expenses by Segment |
Percent of Sales
|
|||||||||||||||||||||
|
Mattress Fabrics
|
$ | 2,424 | 2,132 | 13.7 | % | 6.1 |
%
|
6.0 | % | |||||||||||||
|
Upholstery Fabrics
|
3,157 | 2,766 | 14.1 | % | 12.2 |
%
|
12.1 | % | ||||||||||||||
|
Unallocated Corporate expenses
|
1,628 | 822 | 98.1 | % | 2.5 |
%
|
1.4 | % | ||||||||||||||
|
Selling, General and Administrative expenses
|
7,209 | 5,720 | 26.0 | % | 11.0 |
%
|
9.9 | % | ||||||||||||||
|
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
|||||||||||||||||||||
|
Mattress Fabrics
|
$ | 5,115 | 3,806 | 34.4 | % | 12.9 |
%
|
10.8 | % | |||||||||||||
|
Upholstery Fabrics
|
1,181 | 19 |
N.M.
|
4.6 |
%
|
0.1 | % | |||||||||||||||
|
Unallocated corporate expenses
|
(1,628 | ) | (822 | ) | 98.1 | % | (2.5 | ) |
%
|
(1.4 | ) % | |||||||||||
|
Subtotal
|
4,668 | 3,003 | 55.4 | % | 7.1 |
%
|
5.2 | % | ||||||||||||||
|
Other non-recurring charges
|
- | (77 | ) | (1) | (100.0 | ) % | 0.0 |
%
|
(0.1 | ) % | ||||||||||||
|
Operating income
|
$ | 4,668 | 2,926 | 59.5 | % | 7.1 |
%
|
5.0 | % | |||||||||||||
|
Depreciation by Segment
|
||||||||||||||||||||||
|
Mattress Fabrics
|
$ | 1,127 | 1,054 | 6.9 | % | |||||||||||||||||
|
Upholstery Fabrics
|
158 | 146 | 8.2 | % | ||||||||||||||||||
|
Subtotal
|
1,285 | 1,200 | 7.1 | % | ||||||||||||||||||
|
Notes:
|
||||||||||||||||||||||
|
(1) The $77 represents employee termination benefits associated with our Anderson, SC plant facility.
|
||||||||||||||||||||||
Page 6 of 9
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||||||||
|
STATEMENTS OF OPERATIONS BY SEGMENT
|
||||||||||||||||||||||||||
|
FOR THE SIX MONTHS ENDED OCTOBER 28, 2012 AND OCTOBER 30, 2011
|
||||||||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||||||||
|
(Amounts in thousands)
|
||||||||||||||||||||||||||
|
SIX MONTHS ENDED
|
||||||||||||||||||||||||||
|
Amounts
|
Percent of Total Sales
|
|||||||||||||||||||||||||
|
October 28,
|
October 30,
|
% Over
|
October 28,
|
October 30,
|
||||||||||||||||||||||
|
Net Sales by Segment
|
2012
|
2011
|
(Under)
|
2012
|
2011
|
|||||||||||||||||||||
|
Mattress Fabrics
|
$ | 77,662 | 67,412 | 15.2 | % | 57.6 | % | 57.0 | % | |||||||||||||||||
|
Upholstery Fabrics
|
57,082 | 50,871 | 12.2 | % | 42.4 | % | 43.0 | % | ||||||||||||||||||
|
Net Sales
|
$ | 134,744 | 118,283 | 13.9 | % | 100.0 | % | 100.0 | % | |||||||||||||||||
|
Gross Profit by Segment
|
Gross Profit Margin
|
|||||||||||||||||||||||||
|
Mattress Fabrics
|
$ | 15,161 | 11,076 | 36.9 | % | 19.5 | % | 16.4 | % | |||||||||||||||||
|
Upholstery Fabrics
|
9,837 | 6,525 | 50.8 | % | 17.2 | % | 12.8 | % | ||||||||||||||||||
|
Subtotal
|
24,998 | 17,601 | 42.0 | % | 18.6 | % | 14.9 | % | ||||||||||||||||||
|
Other non-recurring charges
|
- | (77 | ) | (1 | ) | (100.0 | ) % | 0.0 | % | (0.0 | ) % | |||||||||||||||
|
Gross Profit
|
24,998 | 17,524 | 42.7 | % | 18.6 | % | 14.8 | % | ||||||||||||||||||
|
Selling, General and Administrative expenses by Segment
|
Percent of Sales
|
|||||||||||||||||||||||||
|
Mattress Fabrics
|
$ | 4,814 | 4,123 | 16.8 | % | 6.2 | % | 6.1 | % | |||||||||||||||||
|
Upholstery Fabrics
|
6,498 | 5,534 | 17.4 | % | 11.4 | % | 10.9 | % | ||||||||||||||||||
|
Unallocated Corporate expenses
|
3,538 | 1,820 | 94.4 | % | 2.6 | % | 1.5 | % | ||||||||||||||||||
|
Subtotal
|
14,850 | 11,477 | 29.4 | % | 11.0 | % | 9.7 | % | ||||||||||||||||||
|
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
|||||||||||||||||||||||||
|
Mattress Fabrics
|
$ | 10,347 | 6,953 | 48.8 | % | 13.3 | % | 10.3 | % | |||||||||||||||||
|
Upholstery Fabrics
|
3,339 | 991 | 236.9 | % | 5.8 | % | 1.9 | % | ||||||||||||||||||
|
Unallocated corporate expenses
|
(3,538 | ) | (1,820 | ) | 94.4 | % | (2.6 | ) % | (1.5 | ) % | ||||||||||||||||
|
Subtotal
|
10,148 | 6,124 | 65.7 | % | 7.5 | % | 5.2 | % | ||||||||||||||||||
|
Other non-recurring charges
|
- | (1 | ) | (77 | ) | (1 | ) | (100.0 | ) % | 0.0 | % | (0.1 | ) % | |||||||||||||
|
Operating income
|
$ | 10,148 | 6,047 | 67.8 | % | 7.5 | % | 5.1 | % | |||||||||||||||||
|
Return on Capital (2)
|
||||||||||||||||||||||||||
|
Mattress Fabrics
|
37.4 | % | 25.8 | % | ||||||||||||||||||||||
|
Upholstery Fabrics
|
39.9 | % | 16.2 | % | ||||||||||||||||||||||
|
Unallocated Corporate
|
N/A | N/A | ||||||||||||||||||||||||
|
Consolidated
|
28.5 | % | 18.5 | % | ||||||||||||||||||||||
|
Capital Employed (3)
|
||||||||||||||||||||||||||
|
Mattress Fabrics
|
55,102 | 53,215 | 3.5 | % | ||||||||||||||||||||||
|
Upholstery Fabrics
|
16,728 | 13,209 | 26.6 | % | ||||||||||||||||||||||
|
Unallocated Corporate
|
(1,234 | ) | 465 | N/A | ||||||||||||||||||||||
|
Consolidated
|
70,596 | 66,889 | 5.5 | % | ||||||||||||||||||||||
|
Depreciation by Segment
|
||||||||||||||||||||||||||
|
Mattress Fabrics
|
$ | 2,219 | 2,082 | 6.6 | % | |||||||||||||||||||||
|
Upholstery Fabrics
|
320 | 304 | 5.3 | % | ||||||||||||||||||||||
|
Subtotal
|
2,539 | 2,386 | 6.4 | % | ||||||||||||||||||||||
|
Notes:
|
|
(1) The $77 represents employee termination benefits associated with our Anderson, SC plant facility.
|
|
(2) See pages 7 and 8 of this financial information release for calculations.
|
|
(3) The capital employed balances are as of October 28, 2012 and October 30, 2011.
|
Page 7 of 9
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
|
RETURN ON CAPITAL EMPLOYED BY SEGMENT
|
|
FOR THE SIX MONTHS ENDED OCTOBER 28, 2012
|
|
(Amounts in Thousands)
|
|
(Unaudited)
|
|
Operating Income
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Six Months
|
Return | |||||||||||||||||||||||||||||||||||||||||||||||
|
Ended
|
Average
|
on Avg.
|
||||||||||||||||||||||||||||||||||||||||||||||
|
October 28, 2012 (1)
|
Capital
Employed (3) |
Capital
Employed (2) |
||||||||||||||||||||||||||||||||||||||||||||||
|
Mattress Fabrics
|
$ | 10,347 | $ | 55,272 | 37.4 | % | ||||||||||||||||||||||||||||||||||||||||||
|
Upholstery Fabrics
|
3,339 | 16,738 | 39.9 | % | ||||||||||||||||||||||||||||||||||||||||||||
|
(less: Unallocated Corporate)
|
(3,538 | ) | (789 | ) | N/A | |||||||||||||||||||||||||||||||||||||||||||
|
Total
|
$ | 10,148 | $ | 71,220 | 28.5 | % | ||||||||||||||||||||||||||||||||||||||||||
|
Average Capital Employed
|
As of the three Months Ended October 28, 2012
|
As of the three Months Ended July 29, 2012
|
As of the three Months Ended April 29, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||
|
Total assets
|
74,342 | 27,240 | 40,861 | 142,443 | 78,098 | 29,973 | 35,089 | 143,160 | 71,563 | 33,641 | 39,512 | 144,716 | ||||||||||||||||||||||||||||||||||||
|
Total liabilities
|
(19,240 | ) | (10,512 | ) | (17,303 | ) | (47,055 | ) | (21,295 | ) | (11,006 | ) | (19,028 | ) | (51,329 | ) | (17,653 | ) | (19,123 | ) | (18,940 | ) | (55,716 | ) | ||||||||||||||||||||||||
|
Subtotal
|
$ | 55,102 | $ | 16,728 | $ | 23,558 | $ | 95,388 | $ | 56,803 | $ | 18,967 | $ | 16,061 | $ | 91,831 | $ | 53,910 | $ | 14,518 | $ | 20,572 | $ | 89,000 | ||||||||||||||||||||||||
|
Less:
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Cash and cash equivalents
|
- | - | (23,464 | ) | (23,464 | ) | - | - | (21,889 | ) | (21,889 | ) | - | - | (25,023 | ) | (25,023 | ) | ||||||||||||||||||||||||||||||
|
Short-term investments
|
- | - | (5,241 | ) | (5,241 | ) | - | - | (5,200 | ) | (5,200 | ) | - | - | (5,941 | ) | (5,941 | ) | ||||||||||||||||||||||||||||||
|
Deferred income taxes - current
|
- | - | (4,470 | ) | (4,470 | ) | - | - | (2,337 | ) | (2,337 | ) | - | - | (2,467 | ) | (2,467 | ) | ||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
- | - | (4,738 | ) | (4,738 | ) | - | - | (2,715 | ) | (2,715 | ) | - | - | (3,205 | ) | (3,205 | ) | ||||||||||||||||||||||||||||||
|
Current maturities of long-term debt
|
- | - | 2,401 | 2,401 | - | - | 2,400 | 2,400 | - | - | 2,404 | 2,404 | ||||||||||||||||||||||||||||||||||||
|
Line of credit
|
- | - | 875 | 875 | - | - | 834 | 834 | 889 | 889 | ||||||||||||||||||||||||||||||||||||||
|
Income taxes payable - current
|
- | - | 385 | 385 | - | - | 751 | 751 | - | - | 642 | 642 | ||||||||||||||||||||||||||||||||||||
|
Income taxes payable - long-term
|
- | - | 4,188 | 4,188 | - | - | 4,131 | 4,131 | - | - | 4,164 | 4,164 | ||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
- | - | 856 | 856 | - | - | 705 | 705 | - | - | 705 | 705 | ||||||||||||||||||||||||||||||||||||
|
Long-term debt, less current maturities
|
- | - | 4,416 | 4,416 | - | - | 6,666 | 6,666 | - | - | 6,719 | 6,719 | ||||||||||||||||||||||||||||||||||||
|
Total Capital Employed
|
$ | 55,102 | $ | 16,728 | $ | (1,234 | ) | $ | 70,596 | $ | 56,803 | $ | 18,967 | $ | (593 | ) | $ | 75,177 | $ | 53,910 | $ | 14,518 | $ | (541 | ) | $ | 67,887 | |||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Average Capital Employed (3)
|
$ | 55,272 | $ | 16,738 | $ | (789 | ) | $ | 71,220 | |||||||||||||||||||||||||||||||||||||||
|
Notes:
|
|
(1) See reconciliation per page 6 of this financial information release.
|
|
(2) Return on average capital employed represents operating income for the six month period ending October 28, 2012 times two quarters
|
|
to arrive at an annualized value then divided by average capital employed. Average capital employed does not include cash and cash equivalents,
|
|
short-term investments, long-term debt, including current maturities, line of credit, current and noncurrent deferred tax assets and liabilities, and
|
|
income taxes payable.
|
|
(3) Average capital employed was computed using the three periods ending October 28, 2012, July 29, 2012 and April 29, 2012.
|
Page 8 of 9
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
|
RETURN ON CAPITAL EMPLOYED BY SEGMENT
|
|
FOR THE SIX MONTHS ENDED OCTOBER 30, 2011
|
|
(Amounts in Thousands)
|
|
(Unaudited)
|
|
Operating Income
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Six Months
|
Return | |||||||||||||||||||||||||||||||||||||||||||||||
|
Ended
|
Average
|
on Avg.
|
||||||||||||||||||||||||||||||||||||||||||||||
|
October 30, 2011 (1)
|
Capital
Employed (3) |
Capital
Employed (2) |
||||||||||||||||||||||||||||||||||||||||||||||
|
Mattress Fabrics
|
$ | 6,953 | $ | 53,947 | 25.8 | % | ||||||||||||||||||||||||||||||||||||||||||
|
Upholstery Fabrics
|
991 | 12,234 | 16.2 | % | ||||||||||||||||||||||||||||||||||||||||||||
|
(less: Unallocated Corporate)
|
(1,820 | ) | 129 | N/A | ||||||||||||||||||||||||||||||||||||||||||||
|
Total
|
$ | 6,124 | $ | 66,310 | 18.5 | % | ||||||||||||||||||||||||||||||||||||||||||
|
Average Capital Employed
|
As of the three Months Ended October 30, 2011
|
As of the three Months Ended July 31, 2011
|
As of the three Months Ended May 1, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||
|
Total assets
|
68,568 | 24,462 | 34,094 | 127,124 | 71,325 | 26,683 | 31,299 | 129,307 | 66,637 | 25,929 | 37,485 | 130,051 | ||||||||||||||||||||||||||||||||||||
|
Total liabilities
|
(15,353 | ) | (11,253 | ) | (16,421 | ) | (43,027 | ) | (15,331 | ) | (13,507 | ) | (19,118 | ) | (47,956 | ) | (14,005 | ) | (15,612 | ) | (20,093 | ) | (49,710 | ) | ||||||||||||||||||||||||
|
Subtotal
|
$ | 53,215 | $ | 13,209 | $ | 17,673 | $ | 84,097 | $ | 55,994 | $ | 13,176 | $ | 12,181 | $ | 81,351 | $ | 52,632 | $ | 10,317 | $ | 17,392 | $ | 80,341 | ||||||||||||||||||||||||
|
Less:
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Cash and cash equivalents
|
- | - | (13,795 | ) | (13,795 | ) | - | - | (14,570 | ) | (14,570 | ) | - | - | (23,181 | ) | (23,181 | ) | ||||||||||||||||||||||||||||||
|
Short-term investments
|
- | - | (10,482 | ) | (10,482 | ) | - | - | (10,443 | ) | (10,443 | ) | - | - | (7,699 | ) | (7,699 | ) | ||||||||||||||||||||||||||||||
|
Deferred income taxes - current
|
- | - | (2,659 | ) | (2,659 | ) | - | - | (1,237 | ) | (1,237 | ) | - | - | (293 | ) | (293 | ) | ||||||||||||||||||||||||||||||
|
Income taxes receivable
|
- | - | (79 | ) | (79 | ) | - | - | (79 | ) | (79 | ) | - | - | (79 | ) | (79 | ) | ||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
- | - | (4,540 | ) | (4,540 | ) | - | - | (2,191 | ) | (2,191 | ) | - | - | (3,606 | ) | (3,606 | ) | ||||||||||||||||||||||||||||||
|
Current maturities of long-term debt
|
- | - | 2,401 | 2,401 | - | - | 2,409 | 2,409 | - | - | 2,412 | 2,412 | ||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - current
|
- | - | 82 | 82 | 82 | 82 | ||||||||||||||||||||||||||||||||||||||||||
|
Income taxes payable - current
|
- | - | 373 | 373 | - | - | 345 | 345 | - | - | 646 | 646 | ||||||||||||||||||||||||||||||||||||
|
Income taxes payable - long-term
|
- | - | 4,096 | 4,096 | - | - | 4,178 | 4,178 | - | - | 4,167 | 4,167 | ||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
- | - | 659 | 659 | - | - | 596 | 596 | - | - | 596 | 596 | ||||||||||||||||||||||||||||||||||||
|
Long-term debt, less current maturities
|
- | - | 6,818 | 6,818 | - | - | 9,079 | 9,079 | - | - | 9,135 | 9,135 | ||||||||||||||||||||||||||||||||||||
|
Total Capital Employed
|
$ | 53,215 | $ | 13,209 | $ | 465 | $ | 66,889 | $ | 55,994 | $ | 13,176 | $ | 350 | $ | 69,520 | $ | 52,632 | $ | 10,317 | $ | (428 | ) | $ | 62,521 | |||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Average Capital Employed (3)
|
$ | 53,947 | $ | 12,234 | $ | 129 | $ | 66,310 | ||||||||||||||||||||||||||||||||||||||||
|
Notes:
|
|
(1) See reconciliation per page 6 of this financial information release.
|
|
(2) Return on average capital employed represents operating income for the six month period ending October 30, 2011 times 2
|
|
to arrive at an annualized value then divided by average capital employed. Average capital employed does not include cash and cash equivalents,
|
|
short-term investments, long-term debt, including current maturities, current and noncurrent deferred tax assets and liabilities, income taxes payable,
|
|
and income taxes receivable.
|
|
(3) Average capital employed was computed using the three periods ending May 1, 2011, July 31, 2011, and October 30, 2011.
|
Page 9 of 9
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
|
CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE, NET INCOME AND EARNINGS PER SHARE
|
|
FOR THE SIX MONTHS ENDED OCTOBER 28, 2012 AND OCTOBER 30, 2011
|
| Unaudited |
|
(Amounts in Thousands)
|
|
SIX MONTHS ENDED
|
||||||||||||||||||||||
| Amounts | ||||||||||||||||||||||
|
October 28,
|
October 30,
|
|||||||||||||||||||||
|
2012
|
2011
|
|||||||||||||||||||||
|
Consolidated Effective GAAP Income Tax Rate
|
(1 | ) | (19.1 | )% | (38.5 | )% | ||||||||||||||||
|
Reduction of U.S. Valuation Allowance
|
123.0 | % | 74.9 | % | ||||||||||||||||||
|
Undistributed earnings from foreign subsidiaries
|
|
(66.5 | )% | - | ||||||||||||||||||
|
Non-Cash U.S. Income Tax Expense
|
(20.4 | )% | (17.3 | )% | ||||||||||||||||||
|
Non-Cash Foreign Income Tax Expense
|
(2.0 | )% | (1.1 | )% | ||||||||||||||||||
|
Consolidated Adjusted Effective Income Tax Rate
|
(2 | ) | 15.0 | % | 18.0 | % | ||||||||||||||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||||||||
|
As reported
|
October 28, 2012
|
As reported
|
October 30, 2011
|
|||||||||||||||||||||||
|
October 28,
|
Proforma Net
|
October 30,
|
Proforma Net
|
|||||||||||||||||||||||
| 2012 |
Adjustments
|
of Adjustments
|
2011 |
Adjustments
|
of Adjustments
|
|||||||||||||||||||||
|
Income before income taxes
|
$ | 4,532 | $ | - | $ | 4,532 | $ | 2,863 | $ | 2,863 | ||||||||||||||||
|
Income taxes (3)
|
(3,736 | ) | $ | 4,416 | 680 | (3,389 | ) | $ | 3,904 | 515 | ||||||||||||||||
|
Net income
|
$ | 8,268 | $ | (4,416 | ) | $ | 3,852 | $ | 6,252 | $ | (3,904 | ) | $ | 2,348 | ||||||||||||
|
Net income per share-basic
|
$ | 0.68 | $ | 0.36 | $ | 0.32 | $ | 0.49 | $ | 0.31 | $ | 0.18 | ||||||||||||||
|
Net income per share-diluted
|
$ | 0.67 | $ | 0.36 | $ | 0.31 | $ | 0.49 | $ | 0.30 | $ | 0.18 | ||||||||||||||
|
Average shares outstanding-basic
|
12,191 | 12,191 | 12,191 | 12,733 | 12,733 | 12,733 | ||||||||||||||||||||
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Average shares outstanding-diluted
|
12,348 | 12,348 | 12,348 | 12,871 | 12,871 | 12,871 | ||||||||||||||||||||
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SIX MONTHS ENDED
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As reported
|
October 28, 2012
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As reported
|
October 30, 2011
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October 28,
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Proforma Net
|
October 30,
|
Proforma Net
|
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| 2012 |
Adjustments
|
of Adjustments
|
2011 |
Adjustments
|
of Adjustments
|
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Income before income taxes
|
$ | 9,903 | $ | - | $ | 9,903 | $ | 5,827 | $ | - | $ | 5,827 | ||||||||||||||
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Income taxes (3)
|
(1,889 | ) | $ | 3,374 | 1,485 | (2,244 | ) | $ | 3,293 | 1,049 | ||||||||||||||||
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Net income
|
$ | 11,792 | $ | (3,374 | ) | $ | 8,418 | $ | 8,071 | $ | (3,293 | ) | $ | 4,778 | ||||||||||||
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Net income per share-basic
|
$ | 0.95 | $ | 0.27 | $ | 0.68 | $ | 0.63 | $ | 0.26 | $ | 0.37 | ||||||||||||||
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Net income per share-diluted
|
$ | 0.94 | $ | 0.27 | $ | 0.67 | $ | 0.62 | $ | 0.25 | $ | 0.37 | ||||||||||||||
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Average shares outstanding-basic
|
12,371 | 12,371 | 12,371 | 12,898 | 12,898 | 12,898 | ||||||||||||||||||||
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Average shares outstanding-diluted
|
12,541 | 12,541 | 12,541 | 13,025 | 13,025 | 13,025 | ||||||||||||||||||||
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(1) Calculated by dividing consolidated income benefit expense by consolidated income before income taxes.
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(2) Represents estimated cash income tax expense for our subsidiaries located in Canada and China divided by consolidated income before income taxes.
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(3) Proforma taxes calculated using the Consolidated Adjusted Effective Income Tax Rate as reflected above.
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