CULP INC - FORM 8-K - EX-99.(B) - EXHIBIT 99(B) - August 30, 2017

Attached files

file filename
EX-99.(A) - EXHIBIT 99(A) - CULP INCa51673893ex99_a.htm
8-K - CULP, INC. 8-K - CULP INCa51673893.htm
Exhibit 99(b)
Page 1 of 9 
 
CULP, INC. FINANCIAL INFORMATION RELEASE
  
CONSOLIDATED STATEMENTS OF NET INCOME
  
FOR THREE MONTHS ENDED JULY 30, 2017 AND JULY 31, 2016
  
(UNAUDITED)
  
(Amounts in Thousands, Except for Per Share Data)
  
                               
                               
   
THREE MONTHS ENDED
                               
   
Amounts
        
Percent of Sales
   
July 30,
  
July 31,
  
% Over
  
July 30,
  
July 31,
   
2017
  
2016
  
(Under)
  
2017
  
2016
                               
Net sales
  
$
79,533
      
80,682
      
(1.4
)%
    
100.0
%
    
100.0
%
Cost of sales
    
63,068
      
62,263
      
1.3
%
    
79.3
%
    
77.2
%
Gross profit
    
16,465
      
18,419
      
(10.6
)%
    
20.7
%
    
22.8
%
                                         
Selling, general and
                                        
administrative expenses
    
9,501
      
9,746
      
(2.5
)%
    
11.9
%
    
12.1
%
Income from operations
    
6,964
      
8,673
      
(19.7
)%
    
8.8
%
    
10.7
%
                                         
Interest income
    
(131
)
    
(25
)
    
424.0
%
    
(0.2
)%
    
(0.0
)%
Other expense
    
353
      
152
      
132.2
%
    
0.4
%
    
0.2
%
Income before income taxes
    
6,742
      
8,546
      
(21.1
)%
    
8.5
%
    
10.6
%
                                         
Income taxes
    
1,640
      
3,233
      
(49.3
)%
    
24.3
%
    
37.8
%
                                         
Loss from investment in unconsolidated joint venture
    
118
      
-
      
100.0
%
    
0.1
%
    
0.0
%
Net income
  
$
4,984
      
5,313
      
(6.2
)%
    
6.3
%
    
6.6
%
                                         
Net income per share-basic
  
$
0.40
    
$
0.43
      
(7.0
)%
                
Net income per share-diluted
  
$
0.40
    
$
0.43
      
(7.0
)%
                
Average shares outstanding-basic
    
12,399
      
12,286
      
0.9
%
                
Average shares outstanding-diluted
    
12,590
      
12,463
      
1.0
%
                
 
 
Page 2 of 9
 
CULP, INC. FINANCIAL INFORMATION RELEASE
  
CONSOLIDATED BALANCE SHEETS
  
JULY 30, 2017, JULY 31, 2016, AND APRIL 30, 2017
  
Unaudited
  
(Amounts in Thousands)
  
 
                              
                               
   
Amounts
  
Increase
      
   
July 30,
  
July 31,
  
(Decrease)
  
* April 30,
   
2017
  
2016
  
Dollars
  
Percent
  
2017
                               
Current assets
                              
Cash and cash equivalents
  
$
18,322
      
45,549
      
(27,227
)
    
(59.8
)%
    
20,795
  
Short-term investments
    
2,469
      
2,434
      
35
      
1.4
%
    
2,443
  
Accounts receivable
    
22,140
      
22,690
      
(550
)
    
(2.4
)%
    
24,577
  
Inventories
    
55,227
      
48,131
      
7,096
      
14.7
%
    
51,482
  
Other current assets
    
3,441
      
2,294
      
1,147
      
50.0
%
    
2,894
  
Total current assets
    
101,599
      
121,098
      
(19,499
)
    
(16.1
)%
    
102,191
  
                                         
Property, plant & equipment, net
    
52,912
      
41,745
      
11,167
      
26.8
%
    
51,651
  
Goodwill
    
11,462
      
11,462
      
-
      
0.0
%
    
11,462
  
Deferred income taxes
    
436
      
1,942
      
(1,506
)
    
(77.5
)%
    
419
  
Long-term Investments - Held-To-Maturity
    
30,907
      
-
      
30,907
      
100.0
%
    
30,945
  
Long-term Investments - Rabbi Trust
    
6,714
      
4,611
      
2,103
      
45.6
%
    
5,466
  
Investment in unconsolidated joint venture
    
1,477
      
-
      
1,477
      
100.0
%
    
1,106
  
Other assets
    
2,397
      
2,502
      
(105
)
    
(4.2
)%
    
2,394
  
                                         
Total assets
  
$
207,904
      
183,360
      
24,544
      
13.4
%
    
205,634
  
                                         
                                         
                                         
Current liabilities
                                        
Accounts payable - trade
  
$
29,112
      
26,708
      
2,404
      
9.0
%
    
29,101
  
Accounts payable - capital expenditures
    
5,647
      
627
      
5,020
      
800.6
%
    
4,767
  
Accrued expenses
    
6,075
      
6,890
      
(815
)
    
(11.8
)%
    
11,947
  
Income taxes payable - current
    
884
      
358
      
526
      
146.9
%
    
287
  
Total current liabilities
    
41,718
      
34,583
      
7,135
      
20.6
%
    
46,102
  
                                         
Line of credit
    
5,000
      
7,000
      
(2,000
)
    
(28.6
)%
    
-
  
Accounts payable - capital expenditures
    
-
      
-
      
-
      
0.0
%
    
1,322
  
Income taxes payable - long-term
    
487
      
3,779
      
(3,292
)
    
(87.1
)%
    
467
  
Deferred income taxes
    
4,253
      
1,532
      
2,721
      
177.6
%
    
3,593
  
Deferred compensation
    
6,769
      
5,031
      
1,738
      
34.5
%
    
5,520
  
                                         
Total liabilities
    
58,227
      
51,925
      
6,302
      
12.1
%
    
57,004
  
                                         
Shareholders' equity
    
149,677
      
131,435
      
18,242
      
13.9
%
    
148,630
  
                                         
Total liabilities and
                                        
shareholders' equity
  
$
207,904
      
183,360
      
24,544
      
13.4
%
    
205,634
  
                                         
Shares outstanding
    
12,441
      
12,307
      
134
      
1.1
%
    
12,357
  
 
* Derived from audited financial statements.
 
 
Page 3 of 9
 
CULP, INC. FINANCIAL INFORMATION RELEASE
  
SUMMARY OF CASH AND INVESTMENTS  
JULY 30, 2017 AND JULY 31, 2016, AND APRIL 30, 2017
  
Unaudited
  
(Amounts in Thousands)
  
                   
                   
                   
                   
         
Amounts
        
   
July 30,
  
July 31,
  
April 30,
   
2017
  
2016
   2017*
                    
                    
Cash and cash equivalents
  
$ 
18,322
    
$ 
45,549
    
$ 
20,795
  
                         
Short-term investments
    
2,469
      
2,434
      
2,443
  
                         
Long-term investments (Held-To-Maturity)
    
30,907
      
-
      
30,945
  
                         
Total Cash and Investments
  
$ 
51,698
    
$ 
47,983
    
$ 
54,183
  
 
* Derived from audited financial statements.
 
Page 4 of 9
 
CULP, INC. FINANCIAL INFORMATION RELEASE  
CONSOLIDATED STATEMENTS OF CASH FLOWS
  
FOR THE THREE MONTHS ENDED JULY 30, 2017 AND JULY 31, 2016
  
Unaudited
  
(Amounts in Thousands)
  
                 
                 
   
THREE MONTHS ENDED
    
                 
   
Amounts
    
   
July 30,
  
July 31,
    
   
2017
  
2016
    
                 
Cash flows from operating activities:
                
Net income
  
$
4,984
      
5,313
      
Adjustments to reconcile net income to net cash
                    
provided by operating activities:
                    
Depreciation
    
1,807
      
1,761
      
Amortization of assets
    
82
      
52
      
Stock-based compensation
    
757
      
761
      
Deferred income taxes
    
643
      
593
      
Realized loss on sale of short-term investments
    
-
      
12
      
Loss on sale of equipment
    
-
      
9
      
Loss from investment in unconsolidated joint venture
    
118
      
-
      
Foreign currency exchange loss (gain)
    
35
      
(62
)
    
Changes in assets and liabilities:
                    
Accounts receivable
    
2,524
      
611
      
Inventories
    
(3,539
)
    
(1,808
)
    
Other current assets
    
(467
)
    
158
      
Other assets
    
(47
)
    
19
      
Accounts payable
    
(397
)
    
3,036
      
Accrued expenses and deferrred compensation
    
(4,704
)
    
(4,631
)
    
Income taxes
    
608
      
375
      
Net cash provided by operating activities
    
2,404
      
6,199
  
(2
)
                     
Cash flows from investing activities:
                    
Capital expenditures
    
(2,260
)
    
(3,139
)
    
Investment in unconsolidated joint venture
    
(489
)
    
-
      
Proceeds from the sale of short-term investments
    
-
      
2,000
      
Purchase of short-term investments
    
(12
)
    
(21
)
    
Proceeds from the sale of long-term investments (Rabbi Trust)
    
49
      
-
      
Purchase of long-term investments (Rabbi Trust)
    
(1,267
)
    
(559
)
    
Net cash used in investing activities
    
(3,979
)
    
(1,719
)
    
                     
Cash flows from financing activities:
                    
Proceeds from line of credit
    
5,000
      
7,000
      
Payments on vendor-financed capital expenditures
    
(1,250
)
    
-
      
Dividends paid
    
(3,608
)
    
(3,445
)
    
Common stock surrendered for withholding taxes payable
    
(1,135
)
    
(280
)
    
Proceeds from common stock issued
    
5
      
11
      
Net cash (used in) provided by financing activities
    
(988
)
    
3,286
  
(2
)
                     
Effect of exchange rate changes on cash and cash equivalents
    
90
      
(4
)
    
                     
(Decrease) increase in cash and cash equivalents
    
(2,473
)
    
7,762
      
                     
Cash and cash equivalents at beginning of period
    
20,795
      
37,787
      
                     
Cash and cash equivalents at end of period
  
$
18,322
      
45,549
      
                     
                     
Free Cash Flow (1)
  
$
(2,723
)
    
2,497
  
(2
)
                     
                     
                     
(1)  Free Cash Flow reconciliation is as follows:
                    
   
FY 2018
    
FY 2017
      
A) Net cash provided by operating activities
  
$
2,404
      
6,199
      
B)  Minus:   Capital Expenditures
    
(2,260
)
    
(3,139
)
    
C)  Minus:   Investment in unconsolidated joint venture
    
(489
)
    
-
      
D)  Minus:   Payments on vendor-financed capital expenditures
    
(1,250
)
    
-
      
E)   Plus:       Proceeds from the sale of long-term investments (Rabbi Trust)
    
49
      
-
      
F)   Minus:   Purchase of long-term investments (Rabbi Trust)
    
(1,267
)
    
(559
)
    
G)   Effects of exchange rate changes on cash and cash equivalents
    
90
      
(4
)
    
   
$
(2,723
)
    
2,497
      
                     
 
(2)
During the first quarter of fiscal 2018, we adopted ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." Accordingly, we reclassified certain amounts on our Statement of Cash Flows for the three months ended July 31, 2016 to conform to the current year's presentation. As a result, our net cash provided by operating activities increased by $447 which was fully offset by a corresponding decrease of $447 to our net cash provided by financing activities. Additionally, our free cash flow increased $280.
 
 
Page 5 of 9
 
CULP, INC. FINANCIAL INFORMATION RELEASE
  
STATEMENTS OF OPERATIONS BY SEGMENT
  
FOR THE THREE MONTHS ENDED JULY 30, 2017 AND JULY 31, 2016
  
(Unaudited)
  
(Amounts in thousands)
  
                               
                               
   
THREE MONTHS ENDED
                    
   
Amounts
        
Percent of Total Sales
   
July 30,
  
July 31,
  
% Over
  
July 30,
  
July 31,
Net Sales by Segment
  
2017
  
2016
  
(Under)
  
2017
  
2016
                               
Mattress Fabrics
  
$
48,429
      
50,530
      
(4.2
)%
    
60.9
%
    
62.6
%
Upholstery Fabrics
    
31,104
      
30,152
      
3.2
%
    
39.1
%
    
37.4
%
                                         
Net Sales
  
$
79,533
      
80,682
      
(1.4
)%
    
100.0
%
    
100.0
%
                                         
                                         
Gross Profit by Segment
                          
Gross Profit Margin
                                         
Mattress Fabrics
  
$
9,760
      
11,901
      
(18.0
)%
    
20.2
%
    
23.6
%
Upholstery Fabrics
    
6,705
      
6,518
      
2.9
%
    
21.6
%
    
21.6
%
Gross Profit
  
$ 
16,465
      
18,419
      
(10.6
)%
    
20.7
%
    
22.8
%
                                         
                                         
Selling, General and Administrative expenses by Segment
                          
Percent of Sales
                                         
Mattress Fabrics
  
$
3,391
      
3,499
      
(3.1
)%
    
7.0
%
    
6.9
%
Upholstery Fabrics
    
3,811
      
3,534
      
7.8
%
    
12.3
%
    
11.7
%
Unallocated Corporate expenses
    
2,299
      
2,713
      
(15.3
)%
    
2.9
%
    
3.4
%
Selling, General and Administrative Expenses
  
$ 
9,501
      
9,746
      
(2.5
)%
    
11.9
%
    
12.1
%
                                         
                                         
Operating Income (loss) by Segment
                          
Operating Income (Loss) Margin
                                         
Mattress Fabrics
  
$
6,368
      
8,402
      
(24.2
)%
    
13.1
%
    
16.6
%
Upholstery Fabrics
    
2,895
      
2,984
      
(3.0
)%
    
9.3
%
    
9.9
%
Unallocated corporate expenses
    
(2,299
)
    
(2,713
)
    
(15.3
)%
    
(2.9
)%
    
(3.4
)%
Operating Income
  
$ 
6,964
      
8,673
      
(19.7
)%
    
8.8
%
    
10.7
%
                                         
                                         
Return on Capital (1)
                                        
                                         
Mattress Fabrics
    
29.7
%
    
44.4
%
                        
Upholstery Fabrics
    
65.2
%
    
69.7
%
                        
Unallocated Corporate
    
N/A
      
N/A
                          
Consolidated
    
27.0
%
    
37.5
%
                        
                                         
                                         
Capital Employed (2)
                                        
                                         
Mattress Fabrics
  
$ 
87,835
      
76,646
      
14.6
%
                
Upholstery Fabrics
    
19,508
      
17,221
      
13.3
%
                
Unallocated Corporate
    
879
      
732
      
N/A
                  
Consolidated
  
$ 
108,222
      
94,599
      
14.4
%
                
                                         
                                         
Depreciation expense by Segment
                                        
                                         
Mattress Fabrics
  
$
1,612
      
1,556
      
3.6
%
                
Upholstery Fabrics
    
195
      
205
      
(4.9
)%
                
Depreciation expense
  
$ 
1,807
      
1,761
      
2.6
%
                
 
 
Notes:
 
 
(1)
 See pages 7 and 8 of this financial information release for calculations.
 
 
(2)
The capital employed balances are as of July 30, 2017 and July 31, 2016.
 
 
Page 6 of 9
 
CULP, INC. FINANCIAL INFORMATION RELEASE  
CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA 
  
FOR THE TWELVE MONTHS ENDED JULY 30, 2017 AND JULY 31, 2016 
  
(UNAUDITED) 
  
(AMOUNTS IN THOUSANDS) 
  
                               
                               
                               
                               
   
Quarter Ended
      
                           
Trailing 12
                           
Months
   
10/30/2016
  
1/29/2017
  
4/30/2017
  
7/30/2017
  
7/30/2017
                               
Net income
  
$
4,475
    
$
6,347
    
$
6,198
    
$
4,984
    
$
22,004
  
Income taxes
    
2,684
      
643
      
778
      
1,640
      
5,745
  
Interest income, net
    
(15
)
    
(124
)
    
(134
)
    
(131
)
    
(404
)
Depreciation and amortization expense
    
1,778
      
1,875
      
1,863
      
1,889
      
7,405
  
Stock based compensation
    
896
      
962
      
739
      
757
      
3,354
  
Adjusted EBITDA
  
$
9,818
    
$
9,703
    
$
9,444
    
$
9,139
    
$
38,104
  
                                         
                                         
                                         
   
Quarter Ended
        
                                   
Trailing 12
                                   
Months
   
11/1/2015
  
1/31/2016
  
5/1/2016
  
7/31/2016
  
7/31/2016
                                         
Net income
  
$
3,771
    
$
4,862
    
$
3,601
    
$
5,313
    
$
17,547
  
Income taxes
    
2,373
      
2,317
      
3,566
      
3,233
      
11,489
  
Interest income, net
    
(69
)
    
(38
)
    
(26
)
    
(25
)
    
(158
)
Depreciation and amortization expense
    
1,668
      
1,741
      
1,830
      
1,813
      
7,052
  
Stock based compensation
    
1,074
      
625
      
778
      
761
      
3,238
  
Adjusted EBITDA
  
$
8,817
    
$
9,507
    
$
9,749
    
$
11,095
    
$
39,168
  
                                         
% Over (Under)
    
11.4
%
    
2.1
%
    
-3.1
%
    
-17.6
%
    
-2.7
%
 
 
Page 7 of 9
 
CULP, INC. FINANCIAL INFORMATION RELEASE  
RETURN ON CAPITAL EMPLOYED BY SEGMENT 
  
FOR THE THREE MONTHS ENDED JULY 30, 2017 
  
(Amounts in Thousands) 
  
(Unaudited) 
  
                                                 
                                                 
   
Operating Income
                                           
   
Three
Months
  
Average
  
Return
on
                              
   
Ended
  
Capital
  
Avg. Capital
                              
   
July 30,
2017 (1)
  
Employed
(3)
  
Employed
(2)
                              
                                                 
Mattress Fabrics
  
$
6,368
    
$
85,629
      
29.7
%
                              
Upholstery Fabrics
    
2,895
      
17,757
      
65.2
%
                              
(less: Unallocated Corporate)
    
(2,299
)
    
(60
)
    
N/A
                                
Total
  
$
6,964
    
$
103,326
      
27.0
%
                              
                                                       
                                                       
                                                       
                                                       
Average Capital Employed
  
As of the three Months Ended July 30, 2017
  
As of the three Months Ended April 30, 2017
   
Mattress
  
Upholstery
  
Unallocated
        
Mattress
  
Upholstery
  
Unallocated
      
   
Fabrics
  
Fabrics
  
Corporate
  
Total
  
Fabrics
  
Fabrics
  
Corporate
  
Total
                                                       
Total assets
  
$ 
112,112
    
$ 
34,491
    
$ 
61,301
    
$ 
207,904
    
$ 
111,041
    
$ 
32,255
    
$ 
62,338
    
$ 
205,634
  
Total liabilities
    
(24,277
)
    
(14,983
)
    
(18,967
)
    
(58,227
)
    
(27,619
)
    
(16,249
)
    
(13,136
)
    
(57,004
)
                                                                 
Subtotal
  
$
87,835
    
$
19,508
    
$
42,334
    
$
149,677
    
$
83,422
    
$
16,006
    
$
49,202
    
$
148,630
  
Less:
                                                                
Cash and cash equivalents
    
-
      
-
      
(18,322
)
    
(18,322
)
    
-
      
-
      
(20,795
)
    
(20,795
)
Short-term investments
    
-
      
-
      
(2,469
)
    
(2,469
)
    
-
      
-
      
(2,443
)
    
(2,443
)
Long-term investments (Held-To-Maturity)
                    
(30,907
)
    
(30,907
)
                    
(30,945
)
    
(30,945
)
Long-term investments (Rabbi Trust)
    
-
      
-
      
(6,714
)
    
(6,714
)
    
-
      
-
      
(5,466
)
    
(5,466
)
Deferred income taxes - non-current
    
-
      
-
      
(436
)
    
(436
)
    
-
      
-
      
(419
)
    
(419
)
Income taxes payable - current
    
-
      
-
      
884
      
884
      
-
      
-
      
287
      
287
  
Income taxes payable - long-term
    
-
      
-
      
487
      
487
      
-
      
-
      
467
      
467
  
Deferred income taxes - non-current
    
-
      
-
      
4,253
      
4,253
      
-
      
-
      
3,593
      
3,593
  
Line of credit
    
-
      
-
      
5,000
      
5,000
      
-
      
-
      
-
      
-
  
Deferred compensation
    
-
      
-
      
6,769
      
6,769
      
-
      
-
      
5,520
      
5,520
  
                                                                 
Total Capital Employed
  
$
87,835
    
$
19,508
    
$
879
    
$
108,222
    
$
83,422
    
$
16,006
    
$
(999
)
  
$
98,429
  
                                                                 
                                                                 
                                                                 
   
Mattress
  
Upholstery
  
Unallocated
                                        
   
Fabrics
  
Fabrics
  
Corporate
  
Total
                                
                                                                 
Average Capital Employed (3)
  
$
85,629
    
$
17,757
    
$
(60
)
  
$
103,326
                                  
 
 
Notes:
 
 
(1)
 See reconciliation per page 5 of this financial information release.
 
 
(2)
Return on average capital employed represents operating income for the three month period ending July 30, 2017 times four 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 investments (Held-To-Maturity), long-term investments (Rabbi Trust), noncurrent deferred income tax assets and liabilities, income taxes receivable and payable, line of credit, and deferred compensation.
 
 
(3)
Average capital employed was computed using the two periods ending July 30, 2017 and April 30, 2017.
 
 
Page 8 of 9
 
CULP, INC. FINANCIAL INFORMATION RELEASE  
RETURN ON CAPITAL EMPLOYED BY SEGMENT 
  
FOR THE THREE MONTHS ENDED JULY 31, 2016 
  
(Amounts in Thousands) 
  
(Unaudited) 
  
                                                 
                                                 
   
Operating Income
                                           
   
Three
Months
  
Average
  
Return
on
                              
   
Ended
  
Capital
  
Avg. Capital
                              
   
July 31,
2016 (1)
  
Employed
(3)
  
Employed
(2)
                              
                                                 
Mattress Fabrics
  
$
8,402
    
$
75,642
      
44.4
%
                              
Upholstery Fabrics
    
2,984
      
17,123
      
69.7
%
                              
(less: Unallocated Corporate)
    
(2,713
)
    
(287
)
    
N/A
                                
Total
  
$
8,673
    
$
92,478
      
37.5
%
                              
                                                       
                                                       
                                                       
                                                       
Average Capital Employed
  
As of the three Months Ended July 31, 2016
  
As of the three Months Ended May 1, 2016
   
Mattress
  
Upholstery
  
Unallocated
        
Mattress
  
Upholstery
  
Unallocated
      
   
Fabrics
  
Fabrics
  
Corporate
  
Total
  
Fabrics
  
Fabrics
  
Corporate
  
Total
                                                       
Total assets
  
$ 
92,959
    
$ 
33,550
    
$ 
56,851
    
$ 
183,360
    
$ 
94,878
    
$ 
29,463
    
$ 
50,801
    
$ 
175,142
  
Total liabilities
    
(16,313
)
    
(16,329
)
    
(19,283
)
    
(51,925
)
    
(20,241
)
    
(12,438
)
    
(13,651
)
    
(46,330
)
                                                                 
Subtotal
  
$
76,646
    
$
17,221
    
$
37,568
    
$
131,435
    
$
74,637
    
$
17,025
    
$
37,150
    
$
128,812
  
Less:
                                                                
Cash and cash equivalents
    
-
      
-
      
(45,549
)
    
(45,549
)
    
-
      
-
      
(37,787
)
    
(37,787
)
Short-term investments
    
-
      
-
      
(2,434
)
    
(2,434
)
    
-
      
-
      
(4,359
)
    
(4,359
)
Long-term investments (Rabbi Trust)
    
-
      
-
      
(4,611
)
    
(4,611
)
    
-
      
-
      
(4,025
)
    
(4,025
)
Income taxes receivable
    
-
      
-
      
-
      
-
      
-
      
-
      
(155
)
    
(155
)
Deferred income taxes - non-current
    
-
      
-
      
(1,942
)
    
(1,942
)
    
-
      
-
      
(2,319
)
    
(2,319
)
Income taxes payable - current
    
-
      
-
      
358
      
358
      
-
      
-
      
180
      
180
  
Income taxes payable - long-term
    
-
      
-
      
3,779
      
3,779
      
-
      
-
      
3,841
      
3,841
  
Deferred income taxes - non-current
    
-
      
-
      
1,532
      
1,532
      
-
      
-
      
1,483
      
1,483
  
Line of credit
    
-
      
-
      
7,000
      
7,000
      
-
      
-
      
-
      
-
  
Deferred compensation
    
-
      
-
      
5,031
      
5,031
      
-
      
-
      
4,686
      
4,686
  
                                                                 
Total Capital Employed
  
$
76,646
    
$
17,221
    
$
732
    
$
94,599
    
$
74,637
    
$
17,025
    
$
(1,305
)
  
$
90,357
  
                                                                 
                                                                 
                                                                 
   
Mattress
  
Upholstery
  
Unallocated
                                        
   
Fabrics
  
Fabrics
  
Corporate
  
Total
                                
                                                                 
Average Capital Employed (3)
  
$
75,642
    
$
17,123
    
$
(287
)
  
$
92,478
                                  
 
 
Notes:
 
 
(1)
 See reconciliation per page 5 of this financial information release.
 
 
(2)
Return on average capital employed represents operating income for the three month period ending July 31, 2016 times four 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 investments (Rabbi Trust), noncurrent deferred income tax assets and liabilities, income taxes receivable and payable,
line of credit, and deferred compensation.
 
 
(3)
Average capital employed was computed using the two periods ending July 31, 2016 and May 1, 2016.
 
 
Page 9 of 9
 
CULP, INC. FINANCIAL INFORMATION RELEASE  
CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE
  
FOR THE THREE MONTHS ENDED JULY 30, 2017 AND JULY 31, 2016
  
Unaudited  
(Amounts in Thousands)
  
                 
                 
                 
                 
       
THREE MONTHS ENDED
                 
        Amounts  
       
July 30,
  
July 31,
       
2017
  
2016
                 
                 
Consolidated Effective GAAP Income Tax Rate
  
(1)
 
  
24.3
%
    
37.8
%
                     
Non-Cash U.S. Income Tax Expense
        
(17.0
)%
    
(19.6
)%
                     
Excess income tax benefits related to stock-based compensation
        
8.2
%
    
-
  
                     
Other Non-Cash Foreign Income Tax Expense
        
-
      
(0.4
)%
                     
Consolidated Adjusted Effective Income Tax Rate
  
(2)
 
  
15.5
%
    
17.8
%
 
 
(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.
 

Stock widget

Investing forum

CULP INC Reports