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

Attached files

file	filename
8-K - CULP, INC. 8-K - CULP INC	a50650710.htm
EX-99.(A) - EXHIBIT 99(A) - CULP INC	a50650710ex99a.htm

Exhibit 99(b)

Page 1 of 9

CULP, INC. FINANCIAL INFORMATION RELEASE

CONSOLIDATED STATEMENTS OF NET INCOME

FOR THE THREE MONTHS ENDED APRIL 28, 2013 AND APRIL 29, 2012

(UNAUDITED)

(Amounts in Thousands, Except for Per Share Data)

	THREE MONTHS ENDED

	Amounts										Percent of Sales
	April 28,			April 29,			% Over				April 28,				April 29,
	2013			2012			(Under)				2013				2012

Net sales	$	70,375			75,711			(7.0	)	%		100.0		%		100.0		%
Cost of sales		57,527			62,013			(7.2	)	%		81.7		%		81.9		%
Gross profit		12,848			13,698			(6.2	)	%		18.3		%		18.1		%

Selling, general and
administrative expenses		6,772			8,031			(15.7	)	%		9.6		%		10.6		%
Income from operations		6,076			5,667			7.2		%		8.6		%		7.5		%

Interest expense		140			190			(26.3	)	%		0.2		%		0.3		%
Interest income		(90	)		(121	)		(25.6	)	%		(0.1	)	%		(0.2	)	%
Other expense		163			104			56.7		%		0.2		%		0.1		%
Income before income taxes		5,863			5,494			6.7		%		8.3		%		7.3		%

Income taxes*		2,161			2,071			4.3		%		36.9		%		37.7		%
Net income	$	3,702			3,423			8.2		%		5.3		%		4.5		%

Net income per share-basic	$	0.31		$	0.27			14.8		%
Net income per share-diluted	$	0.30		$	0.27			11.1		%
Average shares outstanding-basic		12,102			12,513			(3.3	)	%
Average shares outstanding-diluted		12,323			12,695			(2.9	)	%

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

	THREE MONTHS ENDED

	Amounts								Percent of Sales
	April 28,		April 29,		% Over				April 28,			April 29,
	2013		2012		(Under)				2013			2012


Income before income taxes (see above)	$	5,863		5,494		6.7		%		8.3	%		7.3	%

Adjusted Income taxes (2)*		833		1,016		(18.0	)	%		14.2	%		18.5	%
Adjusted net income		5,030		4,478		12.3		%		7.1	%		5.9	%

Adjusted net income per share-basic	$	0.42	$	0.36		16.7		%
Adjusted net income per share-diluted	$	0.41	$	0.35		17.1		%
Average shares outstanding-basic		12,102		12,513		(3.3	)	%
Average shares outstanding-diluted		12,323		12,695		(2.9	)	%

(1) Culp, Inc. currently does not incur cash income tax expense in the US due to its $50.7 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 TWELVE MONTHS ENDED APRIL 28, 2013 AND APRIL 29, 2012
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)


	TWELVE MONTHS ENDED

	Amounts										Percent of Sales
	April 28,			April 29,			% Over				April 28,				April 29,
	2013			2012			(Under)				2013				2012

Net sales	$	268,814			254,443			5.6		%		100.0		%		100.0	%
Cost of sales		219,284			214,711			2.1		%		81.6		%		84.4	%
Gross profit		49,530			39,732			24.7		%		18.4		%		15.6	%

Selling, general and
administrative expenses		28,445			25,026			13.7		%		10.6		%		9.8	%
Income from operations		21,085			14,706			43.4		%		7.8		%		5.8	%

Interest expense		632			780			(19.0	)	%		0.2		%		0.3	%
Interest income		(419	)		(508	)		(17.5	)	%		(0.2	)	%		(0.2	) %
Other expense		583			236			147.0		%		0.2		%		0.1	%
Income before income taxes		20,289			14,198			42.9		%		7.5		%		5.6	%

Income taxes*		1,972			902			118.6		%		9.7		%		6.4	%
Net income	$	18,317			13,296			37.8		%		6.8		%		5.2	%

Net income per share-basic	$	1.50		$	1.05			42.9		%
Net income per share-diluted	$	1.47		$	1.03			42.7		%
Average shares outstanding-basic		12,235			12,711			(3.7	)	%
Average shares outstanding-diluted		12,450			12,866			(3.2	)	%









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


	TWELVE MONTHS ENDED

	Amounts										Percent of Sales
	April 28,			April 29,			% Over				April 28,				April 29,
		2013			2012		(Under)					2013				2012


Income before income taxes (see above)	$	20,289			14,198			42.9		%		7.5	%			5.6	%

Adjusted Income taxes (2)*		2,881			2,627			9.7		%		14.2	%			18.5	%
Adjusted net income		17,408			11,571			50.4		%		6.5	%			4.5	%

Adjusted net income per share-basic	$	1.42		$	0.91			56.0		%
Adjusted net income per share-diluted	$	1.40		$	0.90			55.6		%
Average shares outstanding-basic		12,235			12,711			(3.7	)	%
Average shares outstanding-diluted		12,450			12,866			(3.2	)	%



(1) Culp, Inc. currently does not incur cash income tax expense in the US due to its $50.7 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
APRIL 28, 2013 AND April 29, 2012
Unaudited
(Amounts in Thousands)

	Amounts				Increase
	Aprl 28,		* April 29,		(Decrease)
	2013		2012		Dollars			Percent

Current assets
Cash and cash equivalents	$	23,530	$	25,023		(1,493	)		(6.0	) %
Short-term investments		5,286		5,941		(655	)		(11.0	) %
Accounts receivable		23,392		25,055		(1,663	)		(6.6	) %
Inventories		38,418		36,373		2,045			5.6	%
Deferred income taxes		7,709		2,467		5,242			212.5	%
Assets held for sale		-		15		(15	)		(100.0	) %
Income taxes receivable		318		-		318			100.0	%
Other current assets		2,093		1,989		104			5.2	%
Total current assets		100,746		96,863		3,883			4.0	%

Property, plant and equipment, net		30,594		31,279		(685	)		(2.2	) %
Goodwill		11,462		11,462		-			0.0	%
Deferred income taxes		753		3,205		(2,452	)		(76.5	) %
Other assets		1,151		1,907		(756	)		(39.6	) %

Total assets	$	144,706	$	144,716		(10	)		(0.0	) %



Current liabilities
Current maturities of long-term debt	$	2,200	$	2,404		(204	)		(8.5	) %
Line of credit		561		889		(328	)		(36.9	) %
Accounts payable - trade		22,357		30,663		(8,306	)		(27.1	) %
Accounts payable - capital expenditures		225		169		56			33.1	%
Accrued expenses		11,829		9,321		2,508			26.9	%
Accrued restructuring		-		40		(40	)		(100.0	) %
Income taxes payable - current		285		642		(357	)		(55.6	) %
Total current liabilities		37,457		44,128		(6,671	)		(15.1	) %

Income taxes payable - long-term		4,191		4,164		27			0.6	%
Deferred income taxes		3,075		705		2,370			336.2	%
Long-term debt , less current maturities		4,400		6,719		(2,319	)		(34.5	) %

Total liabilities		49,123		55,716		(6,593	)		(11.8	) %

Shareholders' equity		95,583		89,000		6,583			7.4	%

Total liabilities and
shareholders' equity	$	144,706	$	144,716		(10	)		(0.0	) %

Shares outstanding		12,225		12,703		(478	)		(3.8	) %


* Derived from audited financial statements

Page 4 of 9

CULP, INC. FINANCIAL INFORMATION RELEASE

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE TWELVE MONTHS ENDED APRIL 28, 2013 AND APRIL 29, 2012

Unaudited

(Amounts in Thousands)


		TWELVE MONTHS ENDED

		Amounts
		April 28,			April 29,
		2013			2012

Cash flows from operating activities:
	Net income	$	18,317			13,296
	Adjustments to reconcile net income to net cash
	provided by operating activities:
	Depreciation		5,115			4,865
	Amortization of other assets		235			243
	Stock-based compensation		562			349
	Deferred income taxes		(344	)		(1,682	)
	Gain on sale of equipment		-			(168	)
	Excess tax benefits related to stock-based compensation		(76	)		(64	)
	Foreign currency exchange losses (gains)		222			(215	)
	Changes in assets and liabilities:
	Accounts receivable		1,667			(4,792	)
	Inventories		(1,979	)		(7,497	)
	Other current assets		(49	)		395
	Other assets		(176	)		(61	)
	Accounts payable		(8,384	)		5,426
	Accrued expenses		2,531			1,710
	Accrued restructuring		(40	)		(4	)
	Income taxes		(526	)		202
	Net cash provided by operating activities		17,075			12,003

Cash flows from investing activities:
	Capital expenditures		(4,400	)		(5,890	)
	Purchase of short-term investments		(105	)		(4,797	)
	Proceeds from the sale of short-term investments		795			6,707
	Proceeds from life insurance policies		716			-
	Payments on life insurance policies		(19	)		-
	Proceeds from the sale of equipment		-			299
	Net cash used in investing activities		(3,013	)		(3,681	)

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		(2,515	)		(2,404	)
	Debt issuance costs		-			(37	)
	Excess tax benefits related to stock-based compensation		76			64
	Repurchase of common stock		(5,022	)		(5,384	)
	Dividends paid		(7,593	)		-
	Proceeds from common stock issued		205			318
	Net cash used in financing activities		(15,174	)		(6,620	)

Effect of exchange rate changes on cash and cash equivalents			(381	)		140

(Decrease) increase in cash and cash equivalents			(1,493	)		1,842

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

Cash and cash equivalents at end of period		$	23,530			25,023


Free Cash Flow (1)		$	13,067			6,616



(1) Free Cash Flow reconciliation is as follows:
		FY 2013			FY 2012
A)	Net cash provided by operating activities	$	17,075			12,003
B)	Minus: Capital Expenditures		(4,400	)		(5,890	)
C)	Add: Proceeds from the sale of equipment		-			299
D)	Add: Proceeds from life insurance policies		716			-
E)	Minus: Payments on life insurance policies		(19	)		-
F)	Add: Excess tax benefits related to stock-based compensation		76			64
G)	Effects of exchange rate changes on cash and cash equivalents		(381	)		140
		$	13,067			6,616

Page 5 of 9

CULP, INC. FINANCIAL INFORMATION RELEASE
STATEMENTS OF OPERATIONS BY SEGMENT
FOR THE THREE MONTHS ENDED APRIL 28, 2013 AND APRIL 29, 2012
(Unaudited)

(Amounts in thousands)


	THREE MONTHS ENDED

	Amounts									Percent of Total Sales
	April 28,			April 29,			% Over			April 28,			April 29,
Net Sales by Segment	2013			2012			(Under)			2013			2012

Mattress Fabrics	$	40,839			43,389			(5.9	) %		58.0	%		57.3	%
Upholstery Fabrics		29,536			32,322			(8.6	) %		42.0	%		42.7	%

Net Sales	$	70,375			75,711			(7.0	) %		100.0	%		100.0	%


Gross Profit by Segment										Gross Profit Margin

Mattress Fabrics	$	7,837			8,645			(9.3	) %		19.2	%		19.9	%
Upholstery Fabrics		5,011			5,053			(0.8	) %		17.0	%		15.6	%
Gross Profit	$	12,848			13,698			(6.2	) %		18.3	%		18.1	%




Selling, General and Administrative expenses by Segment											Percent of Sales

Mattress Fabrics	$	2,449			2,967			(17.5	) %		6.0	%		6.8	%
Upholstery Fabrics		3,173			3,267			(2.9	) %		10.7	%		10.1	%
Unallocated Corporate expenses		1,150			1,797			(36.0	) %		1.6	%		2.4	%
Selling, General and Administrative expenses		6,772			8,031			(15.7	) %		9.6	%		10.6	%


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

Mattress Fabrics	$	5,388			5,678			(5.1	) %		13.2	%		13.1	%
Upholstery Fabrics		1,838			1,786			2.9	%		6.2	%		5.5	%
Unallocated corporate expenses		(1,150	)		(1,797	)		(36.0	) %		(1.6)	%		(2.4	) %
Operating income		6,076			5,667			7.2	%		8.6	%		7.5	%


Depreciation expense by Segment

Mattress Fabrics	$	1,143			1,112			2.8	%
Upholstery Fabrics		154			152			1.3	%
Depreciation expense		1,297			1,264			2.6	%

Page 6 of 9

CULP, INC. FINANCIAL INFORMATION RELEASE

STATEMENTS OF OPERATIONS BY SEGMENT

FOR THE TWELVE MONTHS ENDED APRIL 28, 2013 AND April 29, 2012

(Unaudited)

(Amounts in thousands)


	TWELVE MONTHS ENDED

	Amounts										Percent of Total Sales
	April 28,			April 29,				% Over			April 28,			April 29,
Net Sales by Segment	2013			2012				(Under)			2013			2012

Mattress Fabrics	$	154,014			145,519				5.8	%		57.3	%		57.2	%
Upholstery Fabrics		114,800			108,924				5.4	%		42.7	%		42.8	%

Net Sales	$	268,814			254,443				5.6	%		100.0	%		100.0	%


Gross Profit by Segment											Gross Profit Margin

Mattress Fabrics	$	29,546			24,825				19.0	%		19.2	%		17.1	%
Upholstery Fabrics		19,984			14,984				33.4	%		17.4	%		13.8	%
Subtotal		49,530			39,809				24.4	%		18.4	%		15.6	%

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

Gross Profit		49,530			39,732				24.7	%		18.4	%		15.6	%


Selling, General and Administrative expenses by Segment											Percent of Sales

Mattress Fabrics	$	9,646			9,061				6.5	%		6.3	%		6.2	%
Upholstery Fabrics		13,031			11,453				13.8	%		11.4	%		10.5	%
Unallocated Corporate expenses		5,768			4,512				27.8	%		2.1	%		1.8	%
Selling, General and Administrative Expenses		28,445			25,026				13.7	%		10.6	%		9.8	%


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

Mattress Fabrics	$	19,900			15,764				26.2	%		12.9	%		10.8	%
Upholstery Fabrics		6,953			3,531				96.9	%		6.1	%		3.2	%
Unallocated corporate expenses		(5,768	)		(4,512	)			27.8	%		(2.1	) %		(1.8	) %
Subtotal		21,085			14,783				42.6	%		7.8	%		5.8	%

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

Operating Income	$	21,085			14,706				43.4	%		7.8	%		5.8	%


Return on Capital (2)

Mattress Fabrics		35.6	%		29.4	%
Upholstery Fabrics		40.4	%		25.7	%
Unallocated Corporate		N/A			N/A
Consolidated		29.4	%		21.9	%

Capital Employed (3)

Mattress Fabrics		57,950			53,910				7.5	%
Upholstery Fabrics		17,313			14,518				19.3	%
Unallocated Corporate		(2,564	)		(541	)			N/A
Consolidated		72,699			67,887				7.1	%


Depreciation expense by Segment

Mattress Fabrics	$	4,487			4,275				5.0	%
Upholstery Fabrics		628			590				6.4	%
Depreciation expense		5,115			4,865				5.1	%

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 April 28, 2013 and April 29, 2012

Page 7 of 9

	CULP, INC. FINANCIAL INFORMATION RELEASE
	RETURN ON CAPITAL EMPLOYED BY SEGMENT
	FOR THE TWELVE MONTHS ENDED APRIL 28, 2013
	(Amounts in Thousands)
	(Unaudited)

	Operating Income
	Twelve Months			Average			Return on
	Ended			Capital			Avg. Capital
	April 28, 2013 (1)			Employed (3)			Employed (2)

Mattress Fabrics	$	19,900		$	55,947			35.6	%
Upholstery Fabrics		6,953			17,200			40.4	%
(less: Unallocated Corporate)		(5,768	)		(1,524	)		N/A
Total	$	21,085		$	71,623			29.4	%


Average Capital Employed	As of the three Months Ended April 28, 2013												As of the three Months Ended January 27, 2013												As of the three Months Ended October 28, 2012
	Mattress			Upholstery			Unallocated						Mattress			Upholstery			Unallocated						Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total			Fabrics			Fabrics			Corporate			Total			Fabrics			Fabrics			Corporate			Total

Total assets		73,954			30,995			39,757			144,706			74,794			33,773			35,230			143,797			74,342			27,240			40,861			142,443
Total liabilities		(16,004	)		(13,682	)		(19,437	)		(49,123	)		(18,824	)		(15,299	)		(17,708	)		(51,831	)		(19,240	)		(10,512	)		(17,303	)		(47,055	)

Subtotal	$	57,950		$	17,313		$	20,320		$	95,583		$	55,970		$	18,474		$	17,522		$	91,966		$	55,102		$	16,728		$	23,558		$	95,388
Less:
Cash and cash equivalents		-			-			(23,530	)		(23,530	)		-			-			(19,489	)		(19,489	)		-			-			(23,464	)		(23,464	)
Short-term investments		-			-			(5,286	)		(5,286	)		-			-			(5,237	)		(5,237	)		-			-			(5,241	)		(5,241	)
Deferred income taxes - current		-			-			(7,709	)		(7,709	)		-			-			(4,098	)		(4,098	)		-			-			(4,470	)		(4,470	)
Income taxes receivable		-			-			(318	)		(318	)		-			-			-			-			-			-			-			-
Deferred income taxes - non-current		-			-			(753	)		(753	)		-			-			(4,172	)		(4,172	)		-			-			(4,738	)		(4,738	)
Current maturities of long-term debt		-			-			2,200			2,200			-			-			2,366			2,366			-			-			2,401			2,401
Line of credit		-			-			561			561			-			-			576			576			-			-			875			875
Income taxes payable - current		-			-			285			285			-			-			395			395			-			-			385			385
Income taxes payable - long-term		-			-			4,191			4,191			-			-			4,195			4,195			-			-			4,188			4,188
Deferred income taxes - non-current		-			-			3,075			3,075			-			-			856			856			-			-			856			856
Long-term debt, less current maturities		-			-			4,400			4,400			-			-			4,400			4,400			-			-			4,416			4,416

Total Capital Employed	$	57,950		$	17,313		$	(2,564	)	$	72,699		$	55,970		$	18,474		$	(2,686	)	$	71,758		$	55,102		$	16,728		$	(1,234	)	$	70,596



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

Total assets		78,098			29,973			35,089			143,160			71,563			33,641			39,512			144,716
Total liabilities		(21,295	)		(11,006	)		(19,028	)		(51,329	)		(17,653	)		(19,123	)		(18,940	)		(55,716	)

Subtotal	$	56,803		$	18,967		$	16,061		$	91,831		$	53,910		$	14,518		$	20,572		$	89,000
Less:
Cash and cash equivalents		-			-			(21,889	)		(21,889	)		-			-			(25,023	)		(25,023	)
Short-term investments		-			-			(5,200	)		(5,200	)								(5,941	)		(5,941	)
Deferred income taxes - current		-			-			(2,337	)		(2,337	)		-			-			(2,467	)		(2,467	)
Deferred income taxes - non-current		-			-			(2,715	)		(2,715	)		-			-			(3,205	)		(3,205	)
Current maturities of long-term debt		-			-			2,400			2,400			-			-			2,404			2,404
Line of credit		-			-			834			834			-			-			889			889
Income taxes payable - current		-			-			751			751			-			-			642			642
Income taxes payable - long-term		-			-			4,131			4,131			-			-			4,164			4,164
Deferred income taxes - non-current		-			-			705			705			-			-			705			705
Long-term debt, less current maturities		-			-			6,666			6,666			-			-			6,719			6,719

Total Capital Employed	$	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)	$	55,947		$	17,200		$	(1,524	)	$	71,623

Notes:
(1) Operating income excludes restructuring and related charges--see reconciliation per page 6 of this financial information release.

(2) Return on average capital employed represents operating income for fiscal 2013 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 computed using the five periods ending April 29, 2012, July 29, 2012, October 28, 2012, January 27, 2013, and April 28, 2013.

Page 8 of 9

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

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

Mattress Fabrics	$	15,764		$	53,669			29.4	%
Upholstery Fabrics		3,531			13,758			25.7	%
(less: Unallocated Corporate)		(4,512	)		(56	)		N/A
Total	$	14,783		$	67,372			21.9	%



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

Total assets		71,563			33,641			39,512			144,716			69,063			29,501			32,893			131,457			68,568			24,462			34,094			127,124
Total liabilities		(17,653	)		(19,123	)		(18,940	)		(55,716	)		(16,468	)		(11,929	)		(17,689	)		(46,086	)		(15,353	)		(11,253	)		(16,421	)		(43,027	)

Subtotal	$	53,910		$	14,518		$	20,572		$	89,000		$	52,595		$	17,572		$	15,204		$	85,371		$	53,215		$	13,209		$	17,673		$	84,097
Less:
Cash and cash equivalents		-			-			(25,023	)		(25,023	)		-			-			(15,096	)		(15,096	)		-			-			(13,795	)		(13,795	)
Short-term investments		-			-			(5,941	)		(5,941	)		-			-			(8,511	)		(8,511	)		-			-			(10,482	)		(10,482	)
Deferred income taxes - current		-			-			(2,467	)		(2,467	)		-			-			(2,767	)		(2,767	)		-			-			(2,659	)		(2,659	)
Income taxes receivable		-			-			-			-			-			-			-			-			-			-			(79	)		(79	)
Deferred income taxes - non-current		-			-			(3,205	)		(3,205	)		-			-			(3,903	)		(3,903	)		-			-			(4,540	)		(4,540	)
Current maturities of long-term debt		-			-			2,404			2,404			-			-			2,400			2,400			-			-			2,401			2,401
Line of credit		-			-			889			889			-			-			875			875			-			-			-			-
Deferred income taxes - current		-			-			-			-			-			-			-			-			-			-			-			-
Income taxes payable - current		-			-			642			642			-			-			208			208			-			-			373			373
Income taxes payable - long-term		-			-			4,164			4,164			-			-			4,040			4,040			-			-			4,096			4,096
Deferred income taxes - non-current		-			-			705			705			-			-			659			659			-			-			659			659
Long-term debt, less current maturities		-			-			6,719			6,719			-			-			6,766			6,766			-			-			6,818			6,818

Total Capital Employed	$	53,910		$	14,518		$	(541	)	$	67,887		$	52,595		$	17,572		$	(125	)	$	70,042		$	53,215		$	13,209		$	465		$	66,889



	As of the three Months Ended July 31, 2011												As of the three Months Ended May 1, 2011
	Mattress			Upholstery			Unallocated						Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total			Fabrics			Fabrics			Corporate			Total

Total assets		71,325			26,683			31,299			129,307			66,637			25,929			37,485			130,051
Total liabilities		(15,331	)		(13,507	)		(19,118	)		(47,956	)		(14,005	)		(15,612	)		(20,093	)		(49,710	)

Subtotal	$	55,994		$	13,176		$	12,181		$	81,351		$	52,632		$	10,317		$	17,392		$	80,341
Less:
Cash and cash equivalents		-			-			(14,570	)		(14,570	)		-			-			(23,181	)		(23,181	)
Short-term investments		-			-			(10,443	)		(10,443	)								(7,699	)		(7,699	)
Deferred income taxes - current		-			-			(1,237	)		(1,237	)		-			-			(293	)		(293	)
Income taxes receivable		-			-			(79	)		(79	)		-			-			(79	)		(79	)
Deferred income taxes - non-current		-			-			(2,191	)		(2,191	)		-			-			(3,606	)		(3,606	)
Current maturities of long-term debt		-			-			2,409			2,409			-			-			2,412			2,412
Line of credit		-			-			-			-			-			-			-			-
Deferred income taxes - current		-			-			82			82			-			-			82			82
Income taxes payable - current		-			-			345			345			-			-			646			646
Income taxes payable - long-term		-			-			4,178			4,178			-			-			4,167			4,167
Deferred income taxes - non-current		-			-			596			596			-			-			596			596
Long-term debt, less current maturities		-			-			9,079			9,079			-			-			9,135			9,135

Total Capital Employed	$	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)	$	53,669		$	13,758		$	(56	)	$	67,372

Notes:
(1) Operating income excludes restructuring and related charges--see reconciliation per page 6 of this financial information release.

(2) Return on average capital employed represents operating income for fiscal 2012 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 computed using the five periods ending May 1,2011, July 31, 2011, October 30, 2011, January 29, 2012, and April 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 TWELVE MONTHS ENDED APRIL 28, 2013 AND APRIL 29, 2012
	Unaudited
	(Amounts in Thousands)




			TWELVE MONTHS ENDED
			Amounts
			April 28,			April 29,
			2013			2012


Consolidated Effective GAAP Income Tax Rate	(1	)		9.7	%		6.4		%

Reduction of U.S. Valuation Allowance				59.7	%		26.1		%

Undistributed Earnings from Foreign Subsidiaries				(34.6	)%		-

Non-Cash U.S. Income Tax Expense				(19.3	)%		(13.8	)	%

Non-Cash Foreign Income Tax Expense				(1.3	)%		(0.2	)	%

Consolidated Adjusted Effective Income Tax Rate	(2	)		14.2	%		18.5		%


	THREE MONTHS ENDED
	As reported					April 28, 2013		As reported					April 29, 2012
	April 28,					Proforma Net		April 29,					Proforma Net
	2013		Adjustments			of Adjustments		2012		Adjustments			of Adjustments

Income before income taxes	$	5,863				$	5,863	$	5,494				$	5,494

Income taxes (3)		2,161	$	(1,328	)		833		2,071	$	(1,055	)		1,016
Net income	$	3,702	$	1,328		$	5,030	$	3,423	$	1,055		$	4,478

Net income per share-basic	$	0.31	$	(0.11	)	$	0.42	$	0.27	$	(0.08	)	$	0.36
Net income per share-diluted	$	0.30	$	(0.11	)	$	0.41	$	0.27	$	(0.08	)	$	0.35
Average shares outstanding-basic		12,102		12,102			12,102		12,513		12,513			12,513
Average shares outstanding-diluted		12,323		12,323			12,323		12,695		12,695			12,695



	TWELVE MONTHS ENDED
	As reported					April 28, 2013		As reported					April 29, 2012
	April 28,					Proforma Net		April 29,					Proforma Net
	2013		Adjustments			of Adjustments		2012		Adjustments			of Adjustments

Income before income taxes	$	20,289				$	20,289	$	14,198				$	14,198

Income taxes (3)		1,972	$	909			2,881		902	$	1,725			2,627
Net income	$	18,317	$	(909	)	$	17,408	$	13,296	$	(1,725	)	$	11,571

Net income per share-basic	$	1.50	$	0.07		$	1.42	$	1.05	$	0.14		$	0.91
Net income per share-diluted	$	1.47	$	0.07		$	1.40	$	1.03	$	0.13		$	0.90
Average shares outstanding-basic		12,235		12,235			12,235		12,711		12,711			12,711
Average shares outstanding-diluted		12,450		12,450			12,450		12,866		12,866			12,866



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

(2) Represents estimated cash income tax expense for our subsidiaries located
in Canada and China divided by consolidated income before income taxes.

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

Attached files

Stock widget

Investing forum

CULP INC Reports