CULP INC - FORM 8-K - EX-99.(B) - EXHIBIT 99(B)

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EX-99.(A) - EXHIBIT 99(A) - CULP INC	a50573669ex99a.htm
8-K - CULP, INC. 8-K - CULP INC	a50573669.htm

Exhibit 99(b)

Page 1 of 9

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF NET INCOME
FOR THREE MONTHS ENDED JANUARY 27, 2013 AND JANUARY 29, 2012
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)


	THREE MONTHS ENDED

	Amounts										Percent of Sales
	January 27,			January 29,			% Over				January 27,				January 29,
	2013			2012			(Under)				2013				2012

Net sales	$	63,695			60,450			5.4		%		100.0		%		100.0		%
Cost of sales		52,010			51,939			0.1		%		81.7		%		85.9		%
Gross profit		11,685			8,511			37.3		%		18.3		%		14.1		%

Selling, general and
administrative expenses		6,822			5,518			23.6		%		10.7		%		9.1		%
Income from operations		4,863			2,993			62.5		%		7.6		%		5.0		%

Interest expense		145			181			(19.9	)	%		0.2		%		0.3		%
Interest income		(105	)		(148	)		(29.1	)	%		(0.2	)	%		(0.2	)	%
Other expense		300			83			261.4		%		0.5		%		0.1		%
Income before income taxes		4,523			2,877			57.2		%		7.1		%		4.8		%

Income taxes*		1,700			1,075			58.1		%		37.6		%		37.4		%
Net income	$	2,823			1,802			56.7		%		4.4		%		3.0		%

Net income per share-basic	$	0.23		$	0.14			64.3		%
Net income per share-diluted	$	0.23		$	0.14			64.3		%
Average shares outstanding-basic		12,095			12,536			(3.5	)	%
Average shares outstanding-diluted		12,290			12,677			(3.1	)	%

PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)


	THREE MONTHS ENDED

	Amounts								Percent of Sales
	January 27,		January 29,		% Over				January 27,			January 29,
	2013		2012		(Under)				2013			2012


Income before income taxes (see above)	$	4,523		2,877		57.2		%		7.1	%		4.8	%

Adjusted Income taxes (2)*		651		524		24.2		%		14.4	%		18.2	%
Adjusted net income		3,872		2,353		64.6		%		6.1	%		3.9	%

Adjusted net income per share-basic	$	0.32	$	0.19		68.4		%
Adjusted net income per share-diluted	$	0.32	$	0.19		68.4		%
Average shares outstanding-basic		12,095		12,536		(3.5	)	%
Average shares outstanding-diluted		12,290		12,677		(3.1	)	%

(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 cash income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 9 of 9.

(2) Represents estimated cash 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 NINE MONTHS ENDED JANUARY 27, 2013 AND JANUARY 29, 2012
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)


	NINE MONTHS ENDED

	Amounts										Percent of Sales
	January 27,			January 29,			% Over				January 27,				January 29,
	2013			2012			(Under)				2013				2012

Net sales	$	198,439			178,733			11.0		%		100.0		%		100.0		%
Cost of sales		161,757			152,698			5.9		%		81.5		%		85.4		%
Gross profit		36,682			26,035			40.9		%		18.5		%		14.6		%

Selling, general and
administrative expenses		21,672			16,995			27.5		%		10.9		%		9.5		%
Income from operations		15,010			9,040			66.0		%		7.6		%		5.1		%

Interest expense		491			590			(16.8	)	%		0.2		%		0.3		%
Interest income		(328	)		(387	)		(15.2	)	%		(0.2	)	%		(0.2	)	%
Other expense		421			132			218.9		%		0.2		%		0.1		%
Income before income taxes		14,426			8,705			65.7		%		7.3		%		4.9		%

Income taxes*		(188	)		(1,168	)		(83.9	)	%		(1.3	)	%		(13.4	)	%
Net income	$	14,614			9,873			48.0		%		7.4		%		5.5		%

Net income per share-basic	$	1.19		$	0.77			54.5		%
Net income per share-diluted	$	1.17		$	0.76			53.9		%
Average shares outstanding-basic		12,279			12,777			(3.9	)	%
Average shares outstanding-diluted		12,467			12,918			(3.5	)	%

PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)


	NINE MONTHS ENDED

	Amounts								Percent of Sales
	January 27,		January 29,		% Over				January 27,			January 29,
	2013		2012		(Under)				2013			2012


Income before income taxes (see above)	$	14,426		8,705		65.7		%		7.3	%		4.9	%

Adjusted Income taxes (2)*		2,077		1,584		31.1		%		14.4	%		18.2	%
Adjusted net income		12,349		7,121		73.4		%		6.2	%		4.0	%

Adjusted net income per share-basic	$	1.01	$	0.56		80.4		%
Adjusted net income per share-diluted	$	0.99	$	0.55		80.0		%
Average shares outstanding-basic		12,279		12,777		(3.9	)	%
Average shares outstanding-diluted		12,467		12,918		(3.5	)	%

(2) Represents estimated cash 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
JANUARY 27, 2013, JANUARY 29, 2012, AND APRIL 29, 2012
Unaudited
(Amounts in Thousands)


	Amounts				Increase
	January 27,		January 29,		(Decrease)							* April 29,
	2013		2012		Dollars			Percent				2012

Current assets
Cash and cash equivalents	$	19,489		15,096		4,393			29.1		%		25,023
Short-term investments		5,237		8,511		(3,274	)		(38.5	)	%		5,941
Accounts receivable		24,257		22,012		2,245			10.2		%		25,055
Inventories		42,177		32,910		9,267			28.2		%		36,373
Deferred income taxes		4,098		2,767		1,331			48.1		%		2,467
Assets held for sale		-		45		(45	)		(100.0	)	%		15
Other current assets		1,655		2,522		(867	)		(34.4	)	%		1,989
Total current assets		96,913		83,863		13,050			15.6		%		96,863

Property, plant & equipment, net		30,055		30,285		(230	)		(0.8	)	%		31,279
Goodwill		11,462		11,462		-			0.0		%		11,462
Deferred income taxes		4,172		3,903		269			6.9		%		3,205
Other assets		1,195		1,944		(749	)		(38.5	)	%		1,907

Total assets	$	143,797		131,457		12,340			9.4		%		144,716



Current liabilities
Current maturities of long-term debt	$	2,366		2,400		(34	)		(1.4	)	%		2,404
Line of credit		576		875		(299	)		(34.2	)	%		889
Accounts payable - trade		26,220		23,489		2,731			11.6		%		30,663
Accounts payable - capital expenditures		-		15		(15	)		(100.0	)	%		169
Accrued expenses		12,823		7,594		5,229			68.9		%		9,321
Accrued restructuring		-		40		(40	)		(100.0	)	%		40
Income taxes payable - current		395		208		187			89.9		%		642
Total current liabilities		42,380		34,621		7,759			22.4		%		44,128

Income taxes payable - long-term		4,195		4,040		155			3.8		%		4,164
Deferred income taxes		856		659		197			29.9		%		705
Long-term debt , less current maturities		4,400		6,766		(2,366	)		(35.0	)	%		6,719

Total liabilities		51,831		46,086		5,745			12.5		%		55,716

Shareholders' equity		91,966		85,371		6,595			7.7		%		89,000

Total liabilities and
shareholders' equity	$	143,797		131,457		12,340			9.4		%		144,716

Shares outstanding		12,225		12,693		(468	)		(3.7	)	%		12,703



* Derived from audited financial statements.

Page 4 of 9

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED JANUARY 27, 2013 AND JANUARY 29, 2012
Unaudited
(Amounts in Thousands)


	NINE MONTHS ENDED

	Amounts
	January 27,			January 29,
	2013			2012

Cash flows from operating activities:
Net income	$	14,614		$	9,873
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation		3,818			3,600
Amortization of other assets		178			183
Stock-based compensation		308			258
Excess tax benefit related to stock-based compensation		(77	)		(39	)
Deferred income taxes		(2,370	)		(2,751	)
Gain on sale of equipment		-			(157	)
Foreign currency exchange losses (gains)		153			(196	)
Changes in assets and liabilities:
Accounts receivable		776			(1,769	)
Inventories		(5,794	)		(4,045	)
Other current assets		353			(159	)
Other assets		(92	)		(49	)
Accounts payable-trade		(4,395	)		(1,709	)
Accrued expenses		3,526			(1	)
Accrued restructuring		(40	)		(4	)
Income taxes		(141	)		(305	)
Net cash provided by operating activities		10,817			2,730

Cash flows from investing activities:
Capital expenditures		(2,763	)		(3,715	)
Proceeds from the sale of equipment		-			188
Proceeds from life insurance policies		626			-
Purchase of short-term investments		(84	)		(4,821	)
Proceeds from the sale of short-term investments		795			4,096
Net cash used in investing activities		(1,426	)		(4,252	)

Cash flows from financing activities:
Proceeds from lines of credit		1,000			6,323
Payments on lines of credit		(1,325	)		(5,500	)
Payments on long-term debt		(2,350	)		(2,354	)
Proceeds from common stock issued		205			237
Common stock shares repurchased		(5,022	)		(5,384	)
Dividends paid		(7,226	)		-
Debt issance costs		-			(26	)
Excess tax benefit related to stock-based compensation		77			39
Net cash used in financing activities		(14,641	)		(6,665	)

Effect of exchange rate changes on cash and cash equivalents		(284	)		102

Decrease in cash and cash equivalents		(5,534	)		(8,085	)

Cash and cash equivalents at beginning of period		25,023			23,181

Cash and cash equivalents at end of period	$	19,489		$	15,096


Free Cash Flow (1)	$	8,473		$	(656	)


(1) Free Cash Flow reconciliation is as follows:
		FY 2013			FY 2012
A)	Net cash provided by operating activities	$	10,817		$	2,730
B)	Minus: Capital Expenditures		(2,763	)		(3,715	)
C)	Add: Proceeds from the sale of equipment		-			188
D)	Add: Proceeds from life insurance policies		626			-
E)	Add: Excess tax benefit related to stock-based compensation		77			39
F)	Effect of exchange rate changes on cash and cash equivalents		(284	)		102
		$	8,473		$	(656	)

Page 5 of 9

CULP, INC. FINANCIAL INFORMATION RELEASE
STATEMENTS OF OPERATIONS BY SEGMENT
FOR THE THREE MONTHS ENDED JANUARY 27, 2013 AND JANUARY 29, 2012
(Unaudited)
(Amounts in thousands)


	THREE MONTHS ENDED

	Amounts									Percent of Total Sales
	January 27,			January 29,			% Over			January 27,				January 29,
Net Sales by Segment	2013			2012			(Under)			2013				2012

Mattress Fabrics	$	35,513			34,719			2.3	%		55.8		%		57.4		%
Upholstery Fabrics		28,182			25,731			9.5	%		44.2		%		42.6		%

Net Sales	$	63,695			60,450			5.4	%		100.0		%		100.0		%


Gross Profit by Segment										Gross Profit Margin

Mattress Fabrics	$	6,548			5,104			28.3	%		18.4		%		14.7		%
Upholstery Fabrics		5,137			3,407			50.8	%		18.2		%		13.2		%
Gross Profit	$	11,685			8,511			37.3	%		18.3		%		14.1		%



Selling, General and Administrative expenses by Segment											Percent of Sales

Mattress Fabrics	$	2,382			1,970			20.9	%		6.7		%		5.7		%
Upholstery Fabrics		3,360			2,653			26.6	%		11.9		%		10.3		%
Unallocated Corporate expenses		1,080			895			20.7	%		1.7		%		1.5		%
Selling, General and Administrative expenses		6,822			5,518			23.6	%		10.7		%		9.1		%


Operating Income (loss) by Segment										Operating Income (Loss) Margin

Mattress Fabrics	$	4,166			3,134			32.9	%		11.7		%		9.0		%
Upholstery Fabrics		1,777			754			135.7	%		6.3		%		2.9		%
Unallocated corporate expenses		(1,080	)		(895	)		20.7	%		(1.7	)	%		(1.5	)	%

Operating income	$	4,863			2,993			62.5	%		7.6		%		5.0		%


Depreciation by Segment

Mattress Fabrics	$	1,125			1,081			4.1	%
Upholstery Fabrics		154			133			15.8	%
Consolidated		1,279			1,214			5.4	%

Page 6 of 9

CULP, INC. FINANCIAL INFORMATION RELEASE
STATEMENTS OF OPERATIONS BY SEGMENT
FOR THE NINE MONTHS ENDED JANUARY 27, 2013 AND JANUARY 29, 2012
(Unaudited)

(Amounts in thousands)


	NINE MONTHS ENDED

	Amounts												Percent of Total Sales
	January 27,				January 29,					% Over			January 27,			January 29,
Net Sales by Segment	2013				2012					(Under)			2013			2012

Mattress Fabrics	$	113,175			102,130					10.8		%	57.0		%	57.1		%
Upholstery Fabrics		85,264			76,603					11.3		%	43.0		%	42.9		%

Net Sales	$	198,439			178,733					11.0		%	100.0		%	100.0		%


Gross Profit by Segment													Gross Profit Margin

Mattress Fabrics	$	21,708			16,180					34.2		%	19.2		%	15.8		%
Upholstery Fabrics		14,974			9,932					50.8		%	17.6		%	13.0		%
Subtotal		36,682			26,112					40.5		%	18.5		%	14.6		%

Other non-recurring charges		-			(77	)		(1	)	(100.0	)	%	0.0		%	(0.0	)	%

Gross Profit		36,682			26,035					40.9		%	18.5		%	14.6		%


Selling, General and Administrative expenses by Segment													Percent of Sales

Mattress Fabrics	$	7,197			6,094					18.1		%	6.4		%	6.0		%
Upholstery Fabrics		9,857			8,186					20.4		%	11.6		%	10.7		%
Unallocated Corporate expenses		4,618			2,715					70.1		%	2.3		%	1.5		%
Consolidated		21,672			16,995					27.5		%	10.9		%	9.5		%


Operating Income (loss) by Segment													Operating Income (Loss) Margin

Mattress Fabrics	$	14,512			10,087					43.9		%	12.8		%	9.9		%
Upholstery Fabrics		5,116			1,745					193.2		%	6.0		%	2.3		%
Unallocated corporate expenses		(4,618	)		(2,715	)				70.1		%	(2.3	)	%	(1.5	)	%
Subtotal		15,010			9,117					64.6		%	7.6		%	5.1		%

Other non-recurring charges		-			(77	)		(1	)	(100.0	)	%	0.0		%	(0.0	)	%

Operating income	$	15,010			9,040					66.0		%	7.6		%	5.1		%


Return on Capital (2)

Mattress Fabrics		34.9		%	25.1		%
Upholstery Fabrics		39.7		%	17.1		%
Unallocated Corporate		N/A			N/A
Consolidated		28.0		%	17.9		%

Capital Employed (3)

Mattress Fabrics		55,970			52,595					6.4		%
Upholstery Fabrics		18,474			17,572					5.1		%
Unallocated Corporate		(2,686	)		(125	)				N/A
Consolidated		71,758			70,042					2.4		%


Depreciation by Segment

Mattress Fabrics	$	3,344			3,163					5.7		%
Upholstery Fabrics		474			437					8.5		%
Consolidated		3,818			3,600					6.1		%

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 January 27, 2013 and January 29, 2012.

Page 7 of 9

CULP, INC. FINANCIAL INFORMATION RELEASE
RETURN ON CAPITAL EMPLOYED BY SEGMENT
FOR THE NINE MONTHS ENDED JANUARY 27,2013
(Amounts in Thousands)
(Unaudited)

	Operating Income
	Nine Months			Average			Return on
	Ended			Capital			Avg. Capital
	January 27, 2013 (1)			Employed (3)			Employed (2)

Mattress Fabrics	$	14,512		$	55,446			34.9	%
Upholstery Fabrics		5,116			17,172			39.7	%
(less: Unallocated Corporate)		(4,618	)		(1,264	)		N/A
Total	$	15,010		$	71,355			28.0	%




Average Capital Employed	As of the three Months Ended January 27, 2013												As of the three Months Ended October 28, 2012												As of the three Months Ended July 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		74,794			33,773			35,230			143,797			74,342			27,240			40,861			142,443			78,098			29,973			35,089			143,160
Total liabilities		(18,824	)		(15,299	)		(17,708	)		(51,831	)		(19,240	)		(10,512	)		(17,303	)		(47,055	)		(21,295	)		(11,006	)		(19,028	)		(51,329	)

Subtotal	$	55,970		$	18,474		$	17,522		$	91,966		$	55,102		$	16,728		$	23,558		$	95,388		$	56,803		$	18,967		$	16,061		$	91,831
Less:
Cash and cash equivalents		-			-			(19,489	)		(19,489	)		-			-			(23,464	)		(23,464	)		-			-			(21,889	)		(21,889	)
Short-term investments		-			-			(5,237	)		(5,237	)		-			-			(5,241	)		(5,241	)		-			-			(5,200	)		(5,200	)
Deferred income taxes - current		-			-			(4,098	)		(4,098	)		-			-			(4,470	)		(4,470	)		-			-			(2,337	)		(2,337	)
Deferred income taxes - non-current		-			-			(4,172	)		(4,172	)		-			-			(4,738	)		(4,738	)		-			-			(2,715	)		(2,715	)
Current maturities of long-term debt		-			-			2,366			2,366			-			-			2,401			2,401			-			-			2,400			2,400
Line of credit		-			-			576			576			-			-			875			875			-			-			834			834
Income taxes payable - current		-			-			395			395			-			-			385			385			-			-			751			751
Income taxes payable - long-term		-			-			4,195			4,195			-			-			4,188			4,188			-			-			4,131			4,131
Deferred income taxes - non-current		-			-			856			856			-			-			856			856			-			-			705			705
Long-term debt, less current maturities		-			-			4,400			4,400			-			-			4,416			4,416			-			-			6,666			6,666

Total Capital Employed	$	55,970		$	18,474		$	(2,686	)	$	71,758		$	55,102		$	16,728		$	(1,234	)	$	70,596		$	56,803		$	18,967		$	(593	)	$	75,177


	As of the three Months Ended April 29, 2012
	Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total

Total assets		71,563			33,641			39,512			144,716
Total liabilities		(17,653	)		(19,123	)		(18,940	)		(55,716	)

Subtotal	$	53,910		$	14,518		$	20,572		$	89,000
Less:
Cash and cash equivalents		-			-			(25,023	)		(25,023	)
Short-term investments		-			-			(5,941	)		(5,941	)
Deferred income taxes - current		-			-			(2,467	)		(2,467	)
Deferred income taxes - non-current		-			-			(3,205	)		(3,205	)
Current maturities of long-term debt		-			-			2,404			2,404
Line of credit		-			-			889			889
Income taxes payable - current		-			-			642			642
Income taxes payable - long-term		-			-			4,164			4,164
Deferred income taxes - non-current		-			-			705			705
Long-term debt, less current maturities		-			-			6,719			6,719

Total Capital Employed	$	53,910		$	14,518		$	(541	)	$	67,887



	Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total

Average Capital Employed (3)	$	55,446		$	17,172		$	(1,264	)	$	71,355

Notes:
(1)	See reconciliation per page 6 of this financial information release.

(2)	Return on average capital employed represents operating income for the nine month period ending January 27, 2013 divided by 3 quarters times 4 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 four periods ending April 29, 2012, July 29, 2012, October 28, 2012, and January 27, 2013.

Page 8 of 9

CULP, INC. FINANCIAL INFORMATION RELEASE
RETURN ON CAPITAL EMPLOYED BY SEGMENT
FOR THE NINE MONTHS ENDED JANUARY 29,2012
(Amounts in Thousands)
(Unaudited)

	Operating Income
	Nine Months			Average		Return on
	Ended			Capital		Avg. Capital
	January 29, 2012 (1)			Employed (3)		Employed (2)

Mattress Fabrics	$	10,087		$	53,609		25.1	%
Upholstery Fabrics		1,745			13,569		17.1	%
(less: Unallocated Corporate)		(2,792	)		66		N/A
Total	$	9,040		$	67,243		17.9	%




Average Capital Employed	As of the three Months Ended January 29, 2012												As of the three Months Ended October 30, 2011												As of the three Months Ended July 31, 2011
	Mattress			Upholstery			Unallocated						Mattress			Upholstery			Unallocated						Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total			Fabrics			Fabrics			Corporate			Total			Fabrics			Fabrics			Corporate			Total

Total assets		69,063			29,501			32,893			131,457			68,568			24,462			34,094			127,124			71,325			26,683			31,299			129,307
Total liabilities		(16,468	)		(11,929	)		(17,689	)		(46,086	)		(15,353	)		(11,253	)		(16,421	)		(43,027	)		(15,331	)		(13,507	)		(19,118	)		(47,956	)

Subtotal	$	52,595		$	17,572		$	15,204		$	85,371		$	53,215		$	13,209		$	17,673		$	84,097		$	55,994		$	13,176		$	12,181		$	81,351
Less:
Cash and cash equivalents		-			-			(15,096	)		(15,096	)		-			-			(13,795	)		(13,795	)		-			-			(14,570	)		(14,570	)
Short-term investments		-			-			(8,511	)		(8,511	)		-			-			(10,482	)		(10,482	)		-			-			(10,443	)		(10,443	)
Deferred income taxes - current		-			-			(2,767	)		(2,767	)		-			-			(2,659	)		(2,659	)		-			-			(1,237	)		(1,237	)
Income taxes receivable		-			-			-			-			-			-			(79	)		(79	)		-			-			(79	)		(79	)
Deferred income taxes - non-current		-			-			(3,903	)		(3,903	)		-			-			(4,540	)		(4,540	)		-			-			(2,191	)		(2,191	)
Current maturities of long-term debt		-			-			2,400			2,400			-			-			2,401			2,401			-			-			2,409			2,409
Line of credit		-			-			875			875			-			-			-			-			-			-			-			-
Deferred income taxes - current		-			-			-			-			-			-			-			-			-			-			82			82
Income taxes payable - current		-			-			208			208			-			-			373			373			-			-			345			345
Income taxes payable - long-term		-			-			4,040			4,040			-			-			4,096			4,096			-			-			4,178			4,178
Deferred income taxes - non-current		-			-			659			659			-			-			659			659			-			-			596			596
Long-term debt, less current maturities		-			-			6,766			6,766			-			-			6,818			6,818			-			-			9,079			9,079

Total Capital Employed	$	52,595		$	17,572		$	(125	)	$	70,042		$	53,215		$	13,209		$	465		$	66,889		$	55,994		$	13,176		$	350		$	69,520


	As of the three Months Ended May 1, 2011
	Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total

Total assets		66,637			25,929			37,485			130,051
Total liabilities		(14,005	)		(15,612	)		(20,093	)		(49,710	)

Subtotal	$	52,632		$	10,317		$	17,392		$	80,341
Less:
Cash and cash equivalents		-			-			(23,181	)		(23,181	)
Short-term investments		-			-			(7,699	)		(7,699	)
Deferred income taxes - current		-			-			(293	)		(293	)
Income taxes receivable		-			-			(79	)		(79	)
Deferred income taxes - non-current		-			-			(3,606	)		(3,606	)
Current maturities of long-term debt		-			-			2,412			2,412
Line of credit		-			-			-			-
Deferred income taxes - current		-			-			82			82
Income taxes payable - current		-			-			646			646
Income taxes payable - long-term		-			-			4,167			4,167
Deferred income taxes - non-current		-			-			596			596
Long-term debt, less current maturities		-			-			9,135			9,135

Total Capital Employed	$	52,632		$	10,317		$	(428	)	$	62,521



	Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total

Average Capital Employed (3)	$	53,609		$	13,569		$	66		$	67,243

Notes:
(1)	See reconciliation per page 6 of this financial information release.

(2)	Return on average capital employed represents operating income for the nine month period ending January 29, 2012 divided by 3 quarters times 4 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, income taxes payable, and income taxes receivable.

(3)	Average capital employed was computed using the four periods ending May 1, 2011, July 31, 2011, October 30, 2011, and January 29, 2012.

Page 9 of 9

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE, NET INCOME AND EARNINGS PER SHARE
FOR THE NINE MONTHS ENDED JANUARY 27, 2013 AND JANUARY 29, 2012
Unaudited
(Amounts in Thousands)





		NINE MONTHS ENDED

		Amounts
		January 27,		January 29,
		2013		2012


Consolidated Effective GAAP Income Tax Rate	(1)	(1.3	)%	(13.4	)%

Reduction of U.S. Valuation Allowance		83.7%		50.2	%

Undistributed earnings from foreign subsidiaries		(46.3	)%	-

Non-Cash U.S. Income Tax Expense		(20.2	)%	(18.1	)%

Non-Cash Foreign Income Tax Expense		(1.5	)%	(0.5	)%

Consolidated Adjusted Effective Income Tax Rate	(2)	14.4	%	18.2	%



	THREE MONTHS ENDED
	As reported				January 27, 2013		As reported						January 29, 2012
	January 27,				Proforma Net		January 29,						Proforma Net
	2013		Adjustments		of Adjustments		2012			Adjustments			of Adjustments

Income before income taxes	4,523		-		$	4,523	$	2,877					$	2,877

Income taxes (3)	1,700		(1,049	)		651		1,075		$	(551	)		524
Net income	2,823		1,049		$	3,872	$	1,802		$	551		$	2,353

Net income per share-basic	0.23		(0.09	)	$	0.32	$	0.14		$	(0.04	)	$	0.19
Net income per share-diluted	0.23		(0.09	)	$	0.32	$	0.14		$	(0.04	)	$	0.19
Average shares outstanding-basic	12,095		12,095			12,095		12,536			12,536			12,536
Average shares outstanding-diluted	12,290		12,290			12,290		12,677			12,677			12,677



	NINE MONTHS ENDED
	As reported				January 27, 2013		As reported						January 29, 2012
	January 27,				Proforma Net		January 29,						Proforma Net
	2013		Adjustments		of Adjustments		2012			Adjustments			of Adjustments

Income before income taxes	14,426		-		$	14,426	$	8,705		$	-		$	8,705

Income taxes (3)	(188	)	2,265			2,077		(1,168	)	$	2,752			1,584
Net income	14,614		(2,265	)	$	12,349	$	9,873		$	(2,752	)	$	7,121

Net income per share-basic	1.19		0.18		$	1.01	$	0.77		$	0.22		$	0.56
Net income per share-diluted	1.17		0.18		$	0.99	$	0.76		$	0.21		$	0.55
Average shares outstanding-basic	12,279		12,279			12,279		12,777			12,777			12,777
Average shares outstanding-diluted	12,467		12,467			12,467		12,918			12,918			12,918

(1) Calculated by dividing consolidated income tax benefit by consolidated income before income taxes.

(2) Represents estimated cash income tax expense for our subsidiaries located

(3) Proforma taxes calculated using the Consolidated Adjusted Effective Income Tax Rate as reflected above.

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