Attached files
| file | filename |
|---|---|
| EX-99 - EXHIBIT 99(A) - CULP INC | a52181564ex99a.htm |
| 8-K - CULP, INC. 8-K - CULP INC | a52181564.htm |
|
|
Exhibit 99(b)
|
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Page 1 of 13
|
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF NET (LOSS) INCOME
|
||||||||||||||||||||||||||
|
FOR THREE MONTHS ENDED FEBRUARY 2, 2020 AND JANUARY 27, 2019
|
||||||||||||||||||||||||||
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(UNAUDITED)
|
||||||||||||||||||||||||||
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(Amounts in Thousands, Except for Per Share Data)
|
||||||||||||||||||||||||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||||||||
|
(9)
|
|
Amounts
|
(9)
|
|
Percent of Sales
|
|||||||||||||||||||||
|
February 2,
|
January 27,
|
% Over
|
February 2,
|
January 27,
|
||||||||||||||||||||||
|
2020
|
2019
|
(Under)
|
2020
|
2019
|
||||||||||||||||||||||
|
Net sales
|
$
|
71,998
|
77,226
|
(6.8
|
)%
|
100.0
|
%
|
100.0
|
%
|
|||||||||||||||||
|
Cost of sales
|
59,614
|
(4)
|
63,103
|
(5.5
|
)%
|
82.8
|
%
|
81.7
|
%
|
|||||||||||||||||
|
Gross profit
|
12,384
|
14,123
|
(12.3
|
)%
|
17.2
|
%
|
18.3
|
%
|
||||||||||||||||||
|
Selling, general and
|
||||||||||||||||||||||||||
|
administrative expenses
|
9,952
|
(5)
|
10,038
|
(0.9
|
)%
|
13.8
|
%
|
13.0
|
%
|
|||||||||||||||||
|
Asset impairments
|
(1)
|
13,639
|
-
|
100.0
|
%
|
18.9
|
%
|
0.0
|
%
|
|||||||||||||||||
|
Reversal of contingent consideration - earn-out obligation
|
(2)
|
(6,081
|
)
|
-
|
100.0
|
%
|
(8.4
|
)%
|
0.0
|
%
|
||||||||||||||||
|
Restructuring credit
|
(3)
|
(35
|
)
|
(6)
|
(214
|
)
|
(83.6
|
)%
|
(0.0
|
)%
|
(0.3
|
)%
|
||||||||||||||
|
(Loss) income from operations
|
(5,091
|
)
|
4,299
|
(218.4
|
)%
|
(7.1
|
)%
|
5.6
|
%
|
|||||||||||||||||
|
Interest expense
|
8
|
-
|
100.0
|
%
|
0.0
|
%
|
0.0
|
%
|
||||||||||||||||||
|
Interest income
|
(242
|
)
|
(251
|
)
|
(3.6
|
)%
|
(0.3
|
)%
|
(0.3
|
)%
|
||||||||||||||||
|
Other expense
|
267
|
288
|
(7.3
|
)%
|
0.4
|
%
|
0.4
|
%
|
||||||||||||||||||
|
(Loss) income before income taxes
|
(5,124
|
)
|
4,262
|
(220.2
|
)%
|
(7.1
|
)%
|
5.5
|
%
|
|||||||||||||||||
|
Income tax (benefit) expense *
|
(973
|
)
|
(7)
|
1,225
|
(179.4
|
)%
|
19.0
|
%
|
28.7
|
%
|
||||||||||||||||
|
Loss (income) from investment in unconsolidated joint venture
|
56
|
(23
|
)
|
(343.5
|
)%
|
0.1
|
%
|
(0.0
|
)%
|
|||||||||||||||||
|
Net (loss) income
|
(4,207
|
)
|
3,060
|
(237.5
|
)%
|
(5.8
|
)%
|
4.0
|
%
|
|||||||||||||||||
|
Net loss attributable to non-controlling interest
|
4,149
|
(8)
|
94
|
N.M
|
5.8
|
%
|
0.1
|
%
|
||||||||||||||||||
|
Net (loss) income attributable to Culp Inc. common shareholders
|
$
|
(58
|
)
|
3,154
|
(101.8
|
)%
|
(0.1
|
)%
|
4.1
|
%
|
||||||||||||||||
|
Net (loss) income attributable to Culp Inc. common shareholders per share - basic
|
$
|
0.00
|
$
|
0.25
|
(100.0
|
)%
|
||||||||||||||||||||
|
Net (loss) income attributable to Culp Inc. common shareholders per share - diluted
|
$
|
0.00
|
$
|
0.25
|
(100.0
|
)%
|
||||||||||||||||||||
|
Average shares outstanding-basic
|
12,409
|
12,438
|
(0.2
|
)%
|
||||||||||||||||||||||
|
Average shares outstanding-diluted
|
12,409
|
12,465
|
(0.4
|
)%
|
||||||||||||||||||||||
* Percent of sales column for income tax (benefit) expense is calculated as a % of income before income taxes.
|
Notes
|
|
| (1) |
During the three-month period ending February 2, 2020, our home accessories segment incurred asset impairment charges totaling $13.6 million of which $11.2 million and $2.4 million pertained to this segment's goodwill
and tradename, respectively.
|
| (2) |
During the three-month period ending February 2, 2020, we recorded a reversal of $6.1 million that pertained to a contingent earn-out obligation associated with the purchase of our 80% ownership interest in eLuxury,
LLC.
|
| (3) |
The $35 restructuring credit pertains to employee termination benefits associated with the closure of our Anderson, SC upholstery fabrics facility.
|
| (4) |
Cost of sales for the three-month period ending January 27, 2019, includes a $514 restructuring related charge for operating costs associated with our closed upholstery fabrics facility located in Anderson, SC.
|
| (5) |
Selling, general, and administrative expenses for the three-months ending January 27, 2019, includes a $469 non-recurring charge associated with the accelerated vesting of certain stock-based compensation agreements.
Of this $469 non-recurring charge, $429 and $40 pertain to unallocated corporate expenses and a restructuring related charge associated with our closed Anderson, SC upholstery fabrics facility.
|
| (6) |
The $214 restructuring credit represents a $362 gain on sale of the building and land associated with our closed Anderson, SC upholstery fabrics facility, partially offset by a $148 charge for employee termination
benefits.
|
| (7) |
During the three-months ending January 27, 2019, we recorded an income tax benefit of $593 related to provisional adjustments in connection with the Tax Cuts and Jobs Act (TCJA) enacted on December 22, 2017.
|
| (8) |
During the three-month period ending February 2, 2020, the net loss attributable to non-controlling interest included its proportionate share of asset impairments totaling $4.1 million.
|
| (9) |
See page 8 for our Reconciliation of Selected Income Statement Information to Adjusted Results for the three-month periods February 2, 2020 and January 27, 2019, which exclude certain charges and credits.
|
|
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Page 2 of 13
|
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF NET (LOSS) INCOME
|
||||||||||||||||||||||||||
|
FOR NINE MONTHS ENDED FEBRUARY 2, 2020 AND JANUARY 27, 2019
|
||||||||||||||||||||||||||
|
(UNAUDITED)
|
||||||||||||||||||||||||||
|
(Amounts in Thousands, Except for Per Share Data)
|
||||||||||||||||||||||||||
|
NINE MONTHS ENDED
|
||||||||||||||||||||||||||
|
(10)
|
Amounts
|
(10)
|
Percent of Sales
|
|||||||||||||||||||||||
|
February 2,
|
January 27,
|
% Over
|
February 2,
|
January 27,
|
||||||||||||||||||||||
|
2020
|
2019
|
(Under)
|
2020
|
2019
|
||||||||||||||||||||||
|
Net sales
|
$
|
219,465
|
225,705
|
(2.8
|
)%
|
100.0
|
%
|
100.0
|
%
|
|||||||||||||||||
|
Cost of sales
|
179,612
|
(4) (5)
|
187,697
|
(4.3
|
)%
|
81.8
|
%
|
83.2
|
%
|
|||||||||||||||||
|
Gross profit
|
39,853
|
38,008
|
4.9
|
%
|
18.2
|
%
|
16.8
|
%
|
||||||||||||||||||
|
Selling, general and
|
||||||||||||||||||||||||||
|
administrative expenses
|
30,783
|
(5) (6)
|
28,174
|
9.3
|
%
|
14.0
|
%
|
12.5
|
%
|
|||||||||||||||||
|
Asset impairments
|
(1)
|
13,639
|
-
|
100.0
|
%
|
6.2
|
%
|
0.0
|
%
|
|||||||||||||||||
|
Reversal of contingent consideration - earn-out obligation
|
(2)
|
(6,081
|
)
|
-
|
100.0
|
%
|
(2.8
|
)%
|
0.0
|
%
|
||||||||||||||||
|
Restructuring credit
|
(3)
|
(70
|
)
|
(7)
|
(825
|
)
|
(91.5
|
)%
|
(0.0
|
)%
|
(0.4
|
)%
|
||||||||||||||
|
Income from operations
|
1,582
|
10,659
|
(85.2
|
)%
|
0.7
|
%
|
4.7
|
%
|
||||||||||||||||||
|
Interest expense
|
47
|
38
|
23.7
|
%
|
0.0
|
%
|
0.0
|
%
|
||||||||||||||||||
|
Interest income
|
(732
|
)
|
(552
|
)
|
32.6
|
%
|
(0.3
|
)%
|
(0.2
|
)%
|
||||||||||||||||
|
Other expense
|
441
|
688
|
(35.9
|
)%
|
0.2
|
%
|
0.3
|
%
|
||||||||||||||||||
|
Income before income taxes
|
1,826
|
10,485
|
(82.6
|
)%
|
0.8
|
%
|
4.6
|
%
|
||||||||||||||||||
|
Income tax expense *
|
2,607
|
(8)
|
3,407
|
(23.5
|
)%
|
142.8
|
%
|
32.5
|
%
|
|||||||||||||||||
|
Loss from investment in unconsolidated joint venture
|
60
|
109
|
(45.0
|
)%
|
0.0
|
%
|
0.0
|
%
|
||||||||||||||||||
|
Net (loss) income
|
(841
|
)
|
6,969
|
(112.1
|
)%
|
(0.4
|
)%
|
3.1
|
%
|
|||||||||||||||||
|
Net loss attributable to non-controlling interest
|
4,421
|
(9)
|
75
|
N.M.
|
2.0
|
%
|
0.0
|
%
|
||||||||||||||||||
|
Net income attributable to Culp Inc. common shareholders
|
$
|
3,580
|
7,044
|
(49.2
|
)%
|
1.6
|
%
|
3.1
|
%
|
|||||||||||||||||
|
Net income attributable to Culp Inc. common shareholders per share - basic
|
$
|
0.29
|
$
|
0.56
|
(48.2
|
)%
|
||||||||||||||||||||
|
Net income attributable to Culp Inc. common shareholders per share - diluted
|
$
|
0.29
|
$
|
0.56
|
(48.2
|
)%
|
||||||||||||||||||||
|
Average shares outstanding-basic
|
12,405
|
12,488
|
(0.7
|
)%
|
||||||||||||||||||||||
|
Average shares outstanding-diluted
|
12,421
|
12,593
|
(1.4
|
)%
|
||||||||||||||||||||||
|
* Percent of sales column for income tax expense is calculated as a % of income before income taxes.
|
|
|
Notes
|
|
| (1) |
During the nine-month period ending February 2, 2020, our home accessories segment incurred asset impairment charges totaling $13.6 million of which $11.2 million and $2.4 million pertained to this segment's goodwill
and tradename, respectively.
|
| (2) |
During the nine-month period ending February 2, 2020, we recorded a reversal of $6.1 million that pertained to a contingent earn-out obligation associated with the purchase of our 80% ownership interest in eLuxury,
LLC.
|
| (3) |
The $70 restructuring credit pertains to employee termination benefits associated with the closure of our Anderson, SC upholstery fabrics facility.
|
| (4) |
Cost of sales for the nine-month period ending January 27, 2019, includes restructuring related charges totaling $2.3 million, of which $1.6 million pertains to inventory markdowns and $784 pertains to operating costs
associated with our closed upholstery fabrics facility located in Anderson, SC.
|
| (5) |
During the nine-month period ending January 27, 2019, our mattress fabrics segment incurred non-recurring charges totaling $248 that pertained to employee termination benefits and other operational reorganization
costs. Of the $248 total non-recurring charge, $159 and $89 were recorded in cost of sales and selling, general, and administrative expenses, respectively.
|
| (6) |
Selling, general, and administrative expenses for the nine-months ending January 27, 2019, includes a $469 non-recurring charge associated with the accelerated vesting of certain stock-based compensation agreements.
Of this $469 non-recurring charge, $429 and $40 pertain to unallocated corporate expenses and a restructuring related charge, respectively, associated with our closed Anderson, SC upholstery fabrics facility.
|
| (7) |
The $825 restructuring credit represents a $1.5 million gain on sale of property, plant, and equipment associated with our closed Anderson, SC upholstery fabrics facility, partially offset by a charge of $661 for
employee termination benefits.
|
| (8) |
During the nine-month period ending January 27, 2019, we recorded an income tax benefit of $593 related to provisional adjustments in connection with the Tax Cuts and Jobs Act (TCJA) enacted on December 22, 2017.
|
| (9) |
During the three-month period ending February 2, 2020, the net loss attributable to non-controlling interest included its proportionate share of asset impairments totaling $4.1 million.
|
| (10) |
See page 9 for our Reconciliation of Selected Income Statement Information to Adjusted Results for the nine-month periods February 2, 2020 and January 27, 2019, which exclude certain charges and credits.
|
Page 3 of 13
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||||||
|
FEBRUARY 2, 2020, JANUARY 27, 2019, AND APRIL 28, 2019
|
||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||
|
(Amounts in Thousands)
|
||||||||||||||||||||
|
Amounts
|
||||||||||||||||||||
|
(Condensed)
|
Increase
|
|||||||||||||||||||
|
February 2,
|
January 27,
|
(Decrease)
|
* April 28,
|
|||||||||||||||||
|
2020
|
2019
|
Dollars
|
Percent
|
2019
|
||||||||||||||||
|
Current assets
|
||||||||||||||||||||
|
Cash and cash equivalents
|
$
|
21,872
|
26,418
|
(4,546
|
)
|
(17.2
|
)%
|
40,008
|
||||||||||||
|
Short-term investments - Held-To-Maturity
|
3,171
|
13,544
|
(10,373
|
)
|
(76.6
|
)%
|
5,001
|
|||||||||||||
|
Short-term investments - Available for Sale
|
7,580
|
-
|
7,580
|
100.0
|
%
|
-
|
||||||||||||||
|
Accounts receivable
|
26,614
|
26,142
|
472
|
1.8
|
%
|
23,751
|
||||||||||||||
|
Inventories
|
57,575
|
55,415
|
2,160
|
3.9
|
%
|
50,860
|
||||||||||||||
|
Current income taxes receivable
|
776
|
-
|
776
|
100.0
|
%
|
776
|
||||||||||||||
|
Assets held for sale
|
67
|
-
|
67
|
100.0
|
%
|
-
|
||||||||||||||
|
Other current assets
|
3,219
|
2,954
|
265
|
9.0
|
%
|
2,849
|
||||||||||||||
|
Total current assets
|
120,874
|
124,473
|
(3,599
|
)
|
(2.9
|
)%
|
123,245
|
|||||||||||||
|
Property, plant & equipment, net
|
46,380
|
50,129
|
(3,749
|
)
|
(7.5
|
)%
|
48,389
|
|||||||||||||
|
Goodwill
|
16,011
|
27,222
|
(11,211
|
)
|
(41.2
|
)%
|
27,222
|
|||||||||||||
|
Intangible assets
|
7,738
|
10,542
|
(2,804
|
)
|
(26.6
|
)%
|
10,448
|
|||||||||||||
|
Long-term investments - Rabbi Trust
|
7,804
|
6,834
|
970
|
14.2
|
%
|
7,081
|
||||||||||||||
|
Long-term investments - Held-To-Maturity
|
2,224
|
-
|
2,224
|
100.0
|
%
|
-
|
||||||||||||||
|
Right of use asset
|
5,524
|
-
|
5,524
|
100.0
|
%
|
-
|
||||||||||||||
|
Noncurrent income taxes receivable
|
733
|
-
|
733
|
100.0
|
%
|
733
|
||||||||||||||
|
Deferred income taxes
|
920
|
3,224
|
(2,304
|
)
|
(71.5
|
)%
|
457
|
|||||||||||||
|
Investment in unconsolidated joint venture
|
1,668
|
1,512
|
156
|
10.3
|
%
|
1,508
|
||||||||||||||
|
Other assets
|
464
|
972
|
(508
|
)
|
(52.3
|
)%
|
643
|
|||||||||||||
|
Total assets
|
$
|
210,340
|
224,908
|
(14,568
|
)
|
(6.5
|
)%
|
219,726
|
||||||||||||
|
Current liabilities
|
||||||||||||||||||||
|
Accounts payable - trade
|
$
|
21,835
|
28,401
|
(6,566
|
)
|
(23.1
|
)%
|
24,377
|
||||||||||||
|
Accounts payable - capital expenditures
|
177
|
91
|
86
|
94.5
|
%
|
78
|
||||||||||||||
|
Operating lease liability - current
|
2,227
|
-
|
2,227
|
100.0
|
%
|
-
|
||||||||||||||
|
Deferred revenue
|
398
|
492
|
(94
|
)
|
(19.1
|
)%
|
399
|
|||||||||||||
|
Accrued expenses
|
7,742
|
9,740
|
(1,998
|
)
|
(20.5
|
)%
|
9,192
|
|||||||||||||
|
Accrued restructuring costs
|
-
|
228
|
(228
|
)
|
(100.0
|
)%
|
124
|
|||||||||||||
|
Income taxes payable - current
|
455
|
642
|
(187
|
)
|
(29.1
|
)%
|
1,022
|
|||||||||||||
|
Total current liabilities
|
32,834
|
39,594
|
(6,760
|
)
|
(17.1
|
)%
|
35,192
|
|||||||||||||
|
Accrued expenses - long-term
|
233
|
-
|
233
|
100.0
|
%
|
333
|
||||||||||||||
|
Subordinated loan payable
|
925
|
-
|
925
|
100.0
|
%
|
675
|
||||||||||||||
|
Operating lease liability - long-term
|
3,160
|
-
|
3,160
|
100.0
|
%
|
-
|
||||||||||||||
|
Contingent consideration - Earn-Out Obligation
|
-
|
5,781
|
(5,781
|
)
|
(100.0
|
)%
|
5,856
|
|||||||||||||
|
Income taxes payable - long-term
|
3,442
|
3,294
|
148
|
4.5
|
%
|
3,249
|
||||||||||||||
|
Deferred income taxes
|
2,013
|
2,225
|
(212
|
)
|
(9.5
|
)%
|
3,176
|
|||||||||||||
|
Deferred compensation
|
7,637
|
6,782
|
855
|
12.6
|
%
|
6,998
|
||||||||||||||
|
Total liabilities
|
50,244
|
57,676
|
(7,432
|
)
|
(12.9
|
)%
|
55,479
|
|||||||||||||
|
Shareholders' equity
|
||||||||||||||||||||
|
Shareholders' equity attributable to Culp Inc.
|
159,843
|
162,775
|
(2,932
|
)
|
(1.8
|
)%
|
159,933
|
|||||||||||||
|
Non-controlling interest
|
253
|
4,457
|
(4,204
|
)
|
(94.3
|
)%
|
4,314
|
|||||||||||||
|
160,096
|
167,232
|
(7,136
|
)
|
(4.3
|
)%
|
164,247
|
||||||||||||||
|
Total liabilities and
|
||||||||||||||||||||
|
shareholders' equity
|
$
|
210,340
|
224,908
|
(14,568
|
)
|
(6.5
|
)%
|
219,726
|
||||||||||||
|
Shares outstanding
|
12,361
|
12,368
|
(7
|
)
|
(0.1
|
)%
|
12,391
|
|||||||||||||
|
* Derived from audited financial statements.
|
||||||||||||||||||||
Page 4 of 13
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||
|
SUMMARY OF CASH AND INVESTMENTS
|
||||||||||||
|
FEBRUARY 2, 2020, JANUARY 27, 2019, AND APRIL 28, 2019
|
||||||||||||
|
Unaudited
|
||||||||||||
|
(Amounts in Thousands)
|
||||||||||||
|
Amounts
|
||||||||||||
|
February 2,
|
January 27,
|
April 28,
|
||||||||||
|
2020
|
2019
|
2019*
|
|
|||||||||
|
Cash and cash equivalents
|
$
|
21,872
|
$
|
26,418
|
$
|
40,008
|
||||||
|
Short-term investments - Available for Sale
|
7,580
|
-
|
-
|
|||||||||
|
Short-term investments - Held-To-Maturity
|
3,171
|
13,544
|
5,001
|
|||||||||
|
Long-term investments - Held-To-Maturity
|
2,224
|
-
|
-
|
|||||||||
|
Total Cash and Investments
|
$
|
34,847
|
$
|
39,962
|
$
|
45,009
|
||||||
|
* Derived from audited financial statements.
|
||||||||||||
Page 5 of 13
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
|
FOR THE NINE MONTHS ENDED FEBRUARY 2, 2020 AND JANUARY 27, 2019
|
||||||||
|
Unaudited
|
||||||||
|
(Amounts in Thousands)
|
||||||||
|
NINE MONTHS ENDED
|
||||||||
|
Amounts
|
||||||||
|
February 2,
|
January 27,
|
|||||||
|
2020
|
2019
|
|||||||
|
Cash flows from operating activities:
|
||||||||
|
Net (loss) income
|
$
|
(841
|
)
|
6,969
|
||||
|
Adjustments to reconcile net (loss) income to net cash (used in)
|
||||||||
|
provided by operating activities:
|
||||||||
|
Depreciation
|
5,880
|
6,087
|
||||||
|
Amortization
|
530
|
592
|
||||||
|
Asset impairments
|
13,639
|
-
|
||||||
|
Reversal of contingent consideration - earn-out obligation
|
(6,081
|
)
|
-
|
|||||
|
Stock-based compensation
|
831
|
373
|
||||||
|
Deferred income taxes
|
(1,626
|
)
|
(1,691
|
)
|
||||
|
Realized loss on sale of short-term investments (Available for Sale)
|
-
|
94
|
||||||
|
Gain on sale of equipment
|
(276
|
)
|
(1,456
|
)
|
||||
|
Loss from investment in unconsolidated joint venture
|
60
|
109
|
||||||
|
Foreign currency exchange (gain) loss
|
(15
|
)
|
12
|
|||||
|
Changes in assets and liabilities, net of effects of acquisition of businesses:
|
||||||||
|
Accounts receivable
|
(2,885
|
)
|
(38
|
)
|
||||
|
Inventories
|
(7,016
|
)
|
(658
|
)
|
||||
|
Other current assets
|
(527
|
)
|
(43
|
)
|
||||
|
Other assets
|
159
|
6
|
||||||
|
Accounts payable
|
(2,475
|
)
|
486
|
|||||
|
Deferred revenue
|
(1
|
)
|
(317
|
)
|
||||
|
Accrued expenses and deferred compensation
|
542
|
(1,513
|
)
|
|||||
|
Accrued restructuring costs
|
(124
|
)
|
228
|
|||||
|
Income taxes
|
(293
|
)
|
(1,155
|
)
|
||||
|
Net cash (used in) provided by operating activities
|
(519
|
)
|
8,085
|
|||||
|
Cash flows from investing activities:
|
||||||||
|
Net cash paid for acquisition of businesses
|
-
|
(12,096
|
)
|
|||||
|
Capital expenditures
|
(4,072
|
)
|
(2,954
|
)
|
||||
|
Proceeds from the sale of property, plant, and equipment
|
672
|
1,894
|
||||||
|
Investment in unconsolidated joint venture
|
-
|
(120
|
)
|
|||||
|
Proceeds from the sale of short-term investments (Held to Maturity)
|
5,000
|
17,150
|
||||||
|
Purchase of short-term and long-term investments (Held to Maturity)
|
(5,397
|
)
|
-
|
|||||
|
Proceeds from the sale of short-term investments (Available for Sale)
|
-
|
2,458
|
||||||
|
Purchase of short-term investments (Available for Sale)
|
(7,532
|
)
|
(10
|
)
|
||||
|
Proceeds from the sale of long-term investments (Rabbi Trust)
|
-
|
1,233
|
||||||
|
Purchase of long-term investments (Rabbi Trust)
|
(707
|
)
|
(795
|
)
|
||||
|
Net cash (used in) provided by investing activities
|
(12,036
|
)
|
6,760
|
|||||
|
Cash flows from financing activities:
|
||||||||
|
Proceeds from line of credit
|
-
|
12,000
|
||||||
|
Payments on line of credit
|
-
|
(12,000
|
)
|
|||||
|
Payments on vendor-financed capital expenditures
|
-
|
(1,412
|
)
|
|||||
|
Proceeds from subordinated loan payable
|
250
|
-
|
||||||
|
Cash paid for acquisition of businesses
|
(1,532
|
)
|
-
|
|||||
|
Dividends paid
|
(3,786
|
)
|
(3,493
|
)
|
||||
|
Common stock surrendered for withholding taxes payable
|
(51
|
)
|
(1,303
|
)
|
||||
|
Capital contribution from non-controlling interest
|
360
|
-
|
||||||
|
Common stock repurchased
|
(728
|
)
|
(3,316
|
)
|
||||
|
Payments of debt issuance costs
|
-
|
(50
|
)
|
|||||
|
Net cash used in financing activities
|
(5,487
|
)
|
(9,574
|
)
|
||||
|
Effect of exchange rate changes on cash and cash equivalents
|
(94
|
)
|
(81
|
)
|
||||
|
Increase (decrease) in cash and cash equivalents
|
(18,136
|
)
|
5,190
|
|||||
|
Cash and cash equivalents at beginning of period
|
40,008
|
21,228
|
||||||
|
Cash and cash equivalents at end of period
|
$
|
21,872
|
26,418
|
|||||
|
Free Cash Flow (1)
|
$
|
(4,720
|
)
|
5,850
|
||||
|
(1) Free Cash Flow reconciliation is as follows:
|
|||||||||
|
FY 2020
|
FY 2019
|
||||||||
|
A)
|
Net cash (used in) provided by operating activities
|
$
|
(519
|
)
|
8,085
|
||||
|
B)
|
Minus: Capital Expenditures
|
(4,072
|
)
|
(2,954
|
)
|
||||
|
C)
|
Plus: Proceeds from the sale of property, plant, and equipment
|
672
|
1,894
|
||||||
|
D)
|
Minus: Investment in unconsolidated joint venture
|
-
|
(120
|
)
|
|||||
|
E)
|
Minus: Payments on vendor-financed capital expenditures
|
-
|
(1,412
|
)
|
|||||
|
F)
|
Plus: Proceeds from the sale of long-term investments (Rabbi Trust)
|
-
|
1,233
|
||||||
|
G)
|
Minus: Purchase of long-term investments (Rabbi Trust)
|
(707
|
)
|
(795
|
)
|
||||
|
H)
|
Effects of exchange rate changes on cash and cash equivalents
|
(94
|
)
|
(81
|
)
|
||||
|
Free Cash Flow
|
$
|
(4,720
|
)
|
5,850
|
|||||
Page 6 of 13
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
|||||||||||||||||||||||
|
STATEMENTS OF OPERATIONS BY SEGMENT
|
|||||||||||||||||||||||
|
FOR THE THREE MONTHS ENDED FEBRUARY 2, 2020 AND JANUARY 27, 2019
|
|||||||||||||||||||||||
|
(Unaudited)
|
|||||||||||||||||||||||
|
(Amounts in thousands)
|
|||||||||||||||||||||||
|
THREE MONTHS ENDED
|
|||||||||||||||||||||||
|
Amounts
|
Percent of Total Sales
|
||||||||||||||||||||||
|
February 2,
|
January 27,
|
% Over
|
February 2,
|
January 27,
|
|||||||||||||||||||
|
Net Sales by Segment
|
2020
|
2019
|
(Under)
|
2020
|
2019
|
||||||||||||||||||
|
Mattress Fabrics
|
|
$
|
33,105
|
35,732
|
(7.4
|
)%
|
46.0
|
%
|
46.3
|
%
|
|||||||||||||
|
Upholstery Fabrics
|
34,987
|
37,104
|
(5.7
|
)%
|
48.6
|
%
|
48.0
|
%
|
|||||||||||||||
|
Home Accessories
|
3,906
|
4,390
|
(11.0
|
)%
|
5.4
|
%
|
5.7
|
%
|
|||||||||||||||
|
Net Sales
|
|
$
|
71,998
|
77,226
|
(6.8
|
)%
|
100.0
|
%
|
100.0
|
%
|
|||||||||||||
|
Gross Profit by Segment
|
Gross Profit Margin
|
||||||||||||||||||||||
|
Mattress Fabrics
|
|
$
|
4,614
|
5,963
|
(22.6
|
)%
|
13.9
|
%
|
16.7
|
%
|
|||||||||||||
|
Upholstery Fabrics
|
6,906
|
7,624
|
(9.4
|
)%
|
19.7
|
%
|
20.5
|
%
|
|||||||||||||||
|
Home Accessories
|
864
|
1,050
|
(17.7
|
)%
|
22.1
|
%
|
23.9
|
%
|
|||||||||||||||
|
Subtotal
|
12,384
|
14,637
|
(15.4
|
)%
|
17.2
|
%
|
19.0
|
%
|
|||||||||||||||
|
Restructuring related charges
|
|
-
|
(1)
|
(514
|
)
|
(100.0
|
)%
|
0.0
|
%
|
(0.7
|
)%
|
||||||||||||
|
Gross Profit
|
$
|
12,384
|
14,123
|
(12.3
|
)%
|
17.2
|
%
|
18.3
|
%
|
||||||||||||||
|
Selling, General and Administrative Expenses by Segment
|
Percent of Sales
|
||||||||||||||||||||||
|
Mattress Fabrics
|
$
|
2,836
|
2,755
|
2.9
|
%
|
8.6
|
%
|
7.7
|
%
|
||||||||||||||
|
Upholstery Fabrics
|
3,876
|
3,825
|
1.3
|
%
|
11.1
|
%
|
10.3
|
%
|
|||||||||||||||
|
Home Accessories
|
1,046
|
1,361
|
(23.1
|
)%
|
26.8
|
%
|
31.0
|
%
|
|||||||||||||||
|
Unallocated Corporate expenses
|
2,194
|
1,628
|
34.8
|
%
|
3.0
|
%
|
2.1
|
%
|
|||||||||||||||
|
Subtotal
|
9,952
|
9,569
|
4.0
|
%
|
13.8
|
%
|
12.4
|
%
|
|||||||||||||||
|
Other non-recurring charges
|
|
-
|
(1)
|
429
|
(100.0
|
)%
|
0.0
|
%
|
0.6
|
%
|
|||||||||||||
|
Restructuring related charges
|
|
-
|
(1)
|
40
|
(100.0
|
)%
|
0.0
|
%
|
0.1
|
%
|
|||||||||||||
|
Selling, General and Administrative Expenses
|
$
|
9,952
|
10,038
|
(0.9
|
)%
|
13.8
|
%
|
13.0
|
%
|
||||||||||||||
|
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
||||||||||||||||||||||
|
Mattress Fabrics
|
$ |
1,777
|
3,208
|
(44.6
|
)%
|
5.4
|
%
|
9.0
|
%
|
||||||||||||||
|
Upholstery Fabrics
|
3,030
|
3,799
|
(20.2
|
)%
|
8.7
|
%
|
10.2
|
%
|
|||||||||||||||
|
Home Accessories
|
(181
|
)
|
(311
|
)
|
(41.8
|
)%
|
(4.6
|
)%
|
(7.1
|
)%
|
|||||||||||||
|
Unallocated corporate expenses
|
(2,194
|
)
|
(1,628
|
)
|
34.8
|
%
|
(3.0
|
)%
|
(2.1
|
)%
|
|||||||||||||
|
Subtotal
|
2,432
|
5,068
|
(52.0
|
)%
|
3.4
|
%
|
6.6
|
%
|
|||||||||||||||
|
Asset Impairments
|
(1)
|
(13,639
|
)
|
|
-
|
100.0
|
%
|
(18.9
|
)%
|
0.0
|
%
|
||||||||||||
|
Reversal of contingent consideration - earn-out obligation
|
(1)
|
6,081
|
|
-
|
100.0
|
%
|
8.4
|
%
|
0.0
|
%
|
|||||||||||||
|
Restructuring credit (expense) and related charges
|
(1)
|
35
|
(1)
|
(340
|
)
|
(110.3
|
)%
|
0.0
|
%
|
(0.4
|
)%
|
||||||||||||
|
Other non-recurring items
|
|
-
|
(1)
|
(429
|
)
|
(100.0
|
)%
|
0.0
|
%
|
(0.6
|
)%
|
||||||||||||
|
Operating (loss) income
|
$
|
(5,091
|
)
|
4,299
|
(218.4
|
)%
|
(7.1
|
)%
|
5.6
|
%
|
|||||||||||||
|
Depreciation Expense by Segment
|
|||||||||||||||||||||||
|
Mattress Fabrics
|
$
|
1,696
|
1,752
|
(3.2
|
)%
|
||||||||||||||||||
|
Upholstery Fabrics
|
195
|
182
|
7.1
|
%
|
|||||||||||||||||||
|
Home Accessories
|
96
|
97
|
(1.0
|
)%
|
|||||||||||||||||||
|
Depreciation Expense
|
$
|
1,987
|
2,031
|
(2.2
|
)%
|
||||||||||||||||||
|
Notes
|
|
| (1) |
See page 8 for our Reconciliation of Selected Income Statement Information to Adjusted Results for the three-month periods February 2, 2020 and January 27, 2019 for
|
|
descriptions of these charges and credits.
|
|
|
|
Page 7 of 13
|
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
|||||||||||||||||||||||||
|
STATEMENTS OF OPERATIONS BY SEGMENT
|
|||||||||||||||||||||||||
|
FOR THE NINE MONTHS ENDED FEBRUARY 2, 2020 AND JANUARY 27, 2019
|
|||||||||||||||||||||||||
|
(Unaudited)
|
|||||||||||||||||||||||||
|
(Amounts in thousands)
|
|||||||||||||||||||||||||
|
NINE MONTHS ENDED
|
|||||||||||||||||||||||||
|
Amounts
|
Percent of Total Sales
|
||||||||||||||||||||||||
|
February 2,
|
January 27,
|
% Over
|
February 2,
|
January 27,
|
|||||||||||||||||||||
|
Net Sales by Segment
|
2020
|
2019
|
(Under)
|
2020
|
2019
|
||||||||||||||||||||
|
Mattress Fabrics
|
|
$
|
107,250
|
107,335
|
(0.1
|
)%
|
48.9
|
%
|
47.6
|
%
|
|||||||||||||||
|
Upholstery Fabrics
|
100,730
|
106,611
|
(5.5
|
)%
|
45.9
|
%
|
47.2
|
%
|
|||||||||||||||||
|
Home Accessories
|
11,485
|
11,759
|
(2.3
|
)%
|
5.2
|
%
|
5.2
|
%
|
|||||||||||||||||
|
Net Sales
|
|
$
|
219,465
|
225,705
|
(2.8
|
)%
|
100.0
|
%
|
100.0
|
%
|
|||||||||||||||
|
Gross Profit by Segment
|
Gross Profit Margin
|
||||||||||||||||||||||||
|
Mattress Fabrics
|
|
$
|
16,553
|
17,050
|
(2.9
|
)%
|
15.4
|
%
|
15.9
|
%
|
|||||||||||||||
|
Upholstery Fabrics
|
20,905
|
20,031
|
4.4
|
%
|
20.8
|
%
|
18.8
|
%
|
|||||||||||||||||
|
Home Accessories
|
2,395
|
3,435
|
(30.3
|
)%
|
20.9
|
%
|
29.2
|
%
|
|||||||||||||||||
|
Subtotal
|
39,853
|
40,516
|
(1.6
|
)%
|
18.2
|
%
|
18.0
|
%
|
|||||||||||||||||
|
Other non-recurring charges
|
|
-
|
(1)
|
(159
|
)
|
(100.0
|
)%
|
0.0
|
%
|
(0.1
|
)%
|
||||||||||||||
|
Restructuring related charges
|
|
-
|
(1)
|
(2,349
|
)
|
(100.0
|
)%
|
0.0
|
%
|
(1.0
|
)%
|
||||||||||||||
|
Gross Profit
|
$
|
39,853
|
38,008
|
4.9
|
%
|
18.2
|
%
|
16.8
|
%
|
||||||||||||||||
|
Selling, General and Administrative Expenses by Segment
|
Percent of Sales
|
||||||||||||||||||||||||
|
Mattress Fabrics
|
$
|
8,860
|
8,141
|
8.8
|
%
|
8.3
|
%
|
7.6
|
%
|
||||||||||||||||
|
Upholstery Fabrics
|
11,528
|
10,985
|
4.9
|
%
|
11.4
|
%
|
10.3
|
%
|
|||||||||||||||||
|
Home Accessories
|
3,462
|
3,690
|
(6.2
|
)%
|
30.1
|
%
|
31.4
|
%
|
|||||||||||||||||
|
Unallocated Corporate expenses
|
6,933
|
4,800
|
44.4
|
%
|
3.2
|
%
|
2.1
|
%
|
|||||||||||||||||
|
Subtotal
|
30,783
|
27,616
|
11.5
|
%
|
14.0
|
%
|
12.2
|
%
|
|||||||||||||||||
|
Other non-recurring charges
|
|
-
|
(1)
|
518
|
(100.0
|
)%
|
0.0
|
%
|
0.2
|
%
|
|||||||||||||||
|
Restructuring related charges
|
|
-
|
(1)
|
40
|
(100.0
|
)%
|
0.0
|
%
|
0.0
|
%
|
|||||||||||||||
|
Selling, General and Administrative Expenses
|
$
|
30,783
|
28,174
|
9.3
|
%
|
14.0
|
%
|
12.5
|
%
|
||||||||||||||||
|
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
||||||||||||||||||||||||
|
Mattress Fabrics
|
$
|
7,693
|
8,910
|
(13.7
|
)%
|
7.2
|
%
|
8.3
|
%
|
||||||||||||||||
|
Upholstery Fabrics
|
9,378
|
9,044
|
3.7
|
%
|
9.3
|
%
|
8.5
|
%
|
|||||||||||||||||
|
Home Accessories
|
(1,068
|
)
|
(254
|
)
|
320.5
|
%
|
(9.3
|
)%
|
(2.2
|
)%
|
|||||||||||||||
|
Unallocated corporate expenses
|
(6,933
|
)
|
(4,800
|
)
|
44.4
|
%
|
(3.2
|
)%
|
(2.1
|
)%
|
|||||||||||||||
|
Subtotal
|
$
|
9,070
|
12,900
|
(29.7
|
)%
|
4.1
|
%
|
5.7
|
%
|
||||||||||||||||
|
Asset Impairments
|
(1)
|
(13,639
|
)
|
|
-
|
100.0
|
%
|
(6.2
|
)%
|
0.0
|
%
|
||||||||||||||
|
Reversal of contingent consideration - earn-out obligation
|
(1)
|
6,081
|
|
-
|
100.0
|
%
|
2.8
|
%
|
0.0
|
%
|
|||||||||||||||
|
Other non-recurring charges
|
|
-
|
(1)
|
(678
|
)
|
(100.0
|
)%
|
0.0
|
%
|
(0.3
|
)%
|
||||||||||||||
|
Restructuring credit (expense) and related charges
|
(1)
|
70
|
(1)
|
(1,563
|
)
|
(104.5
|
)%
|
0.0
|
%
|
(0.7
|
)%
|
||||||||||||||
|
Operating income
|
1,582
|
10,659
|
(85.2
|
)%
|
0.7
|
%
|
4.7
|
%
|
|||||||||||||||||
|
Return on Capital (2)
|
|||||||||||||||||||||||||
|
Mattress Fabrics
|
14.1
|
%
|
19.4
|
%
|
|||||||||||||||||||||
|
Upholstery Fabrics
|
53.8
|
%
|
56.3
|
%
|
|||||||||||||||||||||
|
Home Accessories
|
N.M.
|
N.M.
|
|||||||||||||||||||||||
|
Unallocated Corporate
|
N.M.
|
N.M.
|
|||||||||||||||||||||||
|
Consolidated
|
8.7
|
%
|
15.7
|
%
|
|||||||||||||||||||||
|
Capital Employed (2) (3)
|
|||||||||||||||||||||||||
|
Mattress Fabrics
|
$
|
78,177
|
75,103
|
4.1
|
%
|
||||||||||||||||||||
|
Upholstery Fabrics
|
24,151
|
20,614
|
17.2
|
%
|
|||||||||||||||||||||
|
Home Accessories
|
3,109
|
3,439
|
(9.6
|
)%
|
|||||||||||||||||||||
|
Unallocated Corporate
|
24,051
|
30,999
|
(22.4
|
)%
|
|||||||||||||||||||||
|
Consolidated
|
$
|
129,488
|
130,155
|
(0.5
|
)%
|
||||||||||||||||||||
|
Depreciation Expense by Segment
|
|||||||||||||||||||||||||
|
Mattress Fabrics
|
$
|
5,017
|
5,265
|
(4.7
|
)%
|
||||||||||||||||||||
|
Upholstery Fabrics
|
577
|
595
|
(3.0
|
)%
|
|||||||||||||||||||||
|
Home Accessories
|
286
|
227
|
26.0
|
%
|
|||||||||||||||||||||
|
Depreciation Expense
|
$
|
5,880
|
6,087
|
(3.4
|
)%
|
||||||||||||||||||||
|
Notes
|
|
| (1) |
See page 9 for our Reconciliation of Selected Income Statement Information to Adjusted Results for the nine-month periods February 2, 2020 and January 27, 2019 for descriptions of these charges and credits.
|
| (2) |
See pages 11 and 12 of this financial information release for calculations.
|
| (3) |
The capital employed balances are as of February 2, 2020 and January 27, 2019.
|
|
|
Page 8 of 13
|
CULP, INC.
RECONCILIATION OF SELECTED INCOME STATEMENT INFORMATION TO ADJUSTED RESULTS
FOR THE THREE MONTHS ENDED FEBRUARY 2, 2020 AND JANUARY 27, 2019
RECONCILIATION OF SELECTED INCOME STATEMENT INFORMATION TO ADJUSTED RESULTS
FOR THE THREE MONTHS ENDED FEBRUARY 2, 2020 AND JANUARY 27, 2019
|
THREE MONTHS ENDED (UNAUDITED)
|
||||||||||||||||||||||||||||||||
| As Reported | February 2, 2020 | As Reported | January 27, 2019 | |||||||||||||||||||||||||||||
| February 2, | Adjusted | January 27, | Adjusted | |||||||||||||||||||||||||||||
|
2020
|
Adjustments
|
Results
|
2019
|
Adjustments
|
Results
|
|||||||||||||||||||||||||||
|
Gross Profit
|
12,384
|
-
|
12,384
|
14,123
|
(4
|
)
|
514
|
14,637
|
||||||||||||||||||||||||
|
Selling, general and
|
||||||||||||||||||||||||||||||||
|
administrative expenses
|
9,952
|
-
|
9,952
|
10,038
|
(5
|
)
|
(469
|
)
|
9,569
|
|||||||||||||||||||||||
|
Asset impairments
|
13,639
|
(1
|
)
|
(13,639
|
)
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||
|
Reversal of contingent consideration - earn-out obligation
|
(6,081
|
)
|
(2
|
)
|
6,081
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||
|
Restructuring credit
|
(35
|
)
|
(3
|
)
|
35
|
-
|
(214
|
)
|
(6
|
)
|
214
|
-
|
||||||||||||||||||||
|
(Loss) income from operations
|
(5,091
|
)
|
7,523
|
2,432
|
4,299
|
769
|
5,068
|
|||||||||||||||||||||||||
|
(Loss) income before income taxes
|
(5,124
|
)
|
7,523
|
2,399
|
4,262
|
769
|
5,031
|
|||||||||||||||||||||||||
|
Notes
|
||||||||||||||||||||||||||||||||
| (1) |
During the three-month period ending February 2, 2020, our home accessories segment incurred asset impairment charges totaling $13.6 million of which $11.2 million and $2.4 million pertained to this
segment's goodwill and tradename, respectively.
|
|
|
|
|
(2)
|
During the three-month period ending February 2, 2020, we recorded a reversal of $6.1 million that pertained to a contingent earn-out obligation associated with the purchase of our 80% ownership interest in
eLuxury, LLC.
|
|
|
|
|
(3)
|
The $35 restructuring credit pertains to employee termination benefits associated with the closure of our Anderson, SC upholstery fabrics facility.
|
|
|
|
|
(4)
|
Cost of sales for the three-month period ending January 27, 2019, includes a $514 restructuring related charge for operating costs associated with our closed upholstery fabrics facility located in Anderson,
SC.
|
|
|
|
|
(5)
|
Selling, general, and administrative expenses for the three-months ending January 27, 2019, includes a $469 non-recurring charge associated with the accelerated vesting of certain stock-based compensation
agreements. Of this $469 non-recurring charge, $429 and $40 pertain to unallocated corporate expenses and a restructuring related charge, respectively, associated with our closed Anderson, SC upholstery fabrics facility.
|
|
|
|
|
(6)
|
The $214 restructuring credit represents a $362 gain on sale of the building and land associated with our closed Anderson, SC upholstery fabrics facility, partially offset by a $148 charge for employee
termination benefits.
|
|
|
Page 9 of 13
|
|
CULP, INC.
|
|
RECONCILIATION OF SELECTED INCOME STATEMENT INFORMATION TO ADJUSTED RESULTS
|
|
FOR THE NINE MONTHS ENDED FEBRUARY 2, 2020 AND JANUARY 27, 2019
|
|
NINE MONTHS ENDED (UNAUDITED)
|
||||||||||||||||||||||||||||||||
| As Reported | February 2, 2020 | As Reported | January 27, 2019 | |||||||||||||||||||||||||||||
| February 2, | Adjusted | January 27, | Adjusted | |||||||||||||||||||||||||||||
|
2020
|
Adjustments
|
Results
|
2019
|
Adjustments
|
Results
|
|||||||||||||||||||||||||||
|
Gross Profit
|
39,853
|
-
|
39,853
|
38,008
|
(4
|
)(5)
|
2,508
|
40,516
|
||||||||||||||||||||||||
|
Selling, general and
|
||||||||||||||||||||||||||||||||
|
administrative expenses
|
30,783
|
-
|
30,783
|
28,174
|
(5
|
)(6)
|
(558
|
)
|
27,616
|
|||||||||||||||||||||||
|
Asset impairments
|
13,639
|
(1
|
)
|
(13,639
|
)
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||
|
Reversal of contingent consideration - earnout obligation
|
(6,081
|
)
|
(2
|
)
|
6,081
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||
|
Restructuring credit
|
(70
|
)
|
(3
|
)
|
70
|
-
|
(825
|
)
|
(7
|
)
|
825
|
-
|
||||||||||||||||||||
|
Income from operations
|
1,582
|
7,488
|
9,070
|
10,659
|
2,241
|
12,900
|
||||||||||||||||||||||||||
|
Income before income taxes
|
1,826
|
7,488
|
9,314
|
10,485
|
2,241
|
12,726
|
||||||||||||||||||||||||||
|
Notes
|
||||||||||||||||||||||||||||||||
|
(1)
|
During the nine-month period ending February 2, 2020, our home accessories segment incurred asset impairment charges totaling $13.6 million of which $11.2 million and $2.4 million pertained to this
segment's goodwill and tradename, respectively.
|
|
(2)
|
During the nine-month period ending February 2, 2020, we recorded a reversal of $6.1 million that pertained to a contingent earn-out obligation associated with the purchase of our 80% ownership interest in
eLuxury, LLC.
|
|
(3)
|
The $70 restructuring credit pertains to employee termination benefits associated with the closure of our Anderson, SC upholstery fabrics facility.
|
|
(4)
|
Cost of sales for the nine-month period ending January 27, 2019, includes restructuring related charges totaling $2.3 million, of which $1.6 million pertains to inventory markdowns and $784 pertains to
operating costs associated with our closed upholstery fabrics facility located in Anderson, SC.
|
|
(5)
|
During the nine-month period ending January 27, 2019, our mattress fabrics segment incurred non-recurring charges totaling $248 that pertained to employee termination benefits and other operational
reorganization costs. Of the $248 total non-recurring charge, $159 and $89 were recorded in cost of sales and selling, general, and administrative expenses, respectively.
|
|
(6)
|
Selling, general, and administrative expenses for the nine-months ending January 27, 2019, includes a $469 non-recurring charge associated with the accelerated vesting of certain stock-based compensation
agreements. Of this $469 non-recurring charge, $429 and $40 pertain to unallocated corporate expenses and a restructuring related charge, respectively, associated with our closed Anderson, SC upholstery fabrics facility.
|
|
(7)
|
The $825 restructuring credit represents a $1.5 million gain on sale of property, plant, and equipment associated with our closed Anderson, SC upholstery fabrics facility, partially offset by a charge of
$661 for employee termination benefits.
|
|
|
Page 10 of 13
|
CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA
FOR THE TWELVE MONTHS ENDED FEBRUARY 2, 2020 AND JANUARY 27, 2019
(UNAUDITED)
(AMOUNTS IN THOUSANDS)
CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA
FOR THE TWELVE MONTHS ENDED FEBRUARY 2, 2020 AND JANUARY 27, 2019
(UNAUDITED)
(AMOUNTS IN THOUSANDS)
| Quarter Ended | ||||||||||||||||||||
|
Trailing 12
|
||||||||||||||||||||
|
Months
|
||||||||||||||||||||
|
4/28/2019
|
8/4/2019
|
11/3/2019
|
2/2/2020
|
2/2/2020
|
||||||||||||||||
|
Net (loss) income
|
$
|
(1,511
|
)
|
$
|
1,174
|
$
|
2,192
|
$
|
(4,207
|
)
|
$
|
(2,352
|
)
|
|||||||
|
Income tax expense (benefit)
|
3,017
|
1,682
|
1,898
|
(973
|
)
|
5,624
|
||||||||||||||
|
Interest income, net
|
(210
|
)
|
(241
|
)
|
(210
|
)
|
(234
|
)
|
(895
|
)
|
||||||||||
|
Other non-recurring charges
|
500
|
-
|
-
|
-
|
500
|
|||||||||||||||
|
Restructuring credit
|
-
|
(35
|
)
|
-
|
(35
|
)
|
(70
|
)
|
||||||||||||
|
Asset impairments
|
-
|
-
|
-
|
13,639
|
13,639
|
|||||||||||||||
|
Reversal of contingent consideration - earn-out obligation
|
-
|
-
|
-
|
(6,081
|
)
|
(6,081
|
)
|
|||||||||||||
|
Depreciation and amortization expense
|
2,218
|
2,081
|
2,165
|
2,164
|
8,628
|
|||||||||||||||
|
Stock based compensation
|
(243
|
)
|
154
|
313
|
364
|
588
|
||||||||||||||
|
Adjusted EBITDA
|
$
|
3,771
|
$
|
4,815
|
$
|
6,358
|
$
|
4,637
|
$
|
19,581
|
||||||||||
|
% Net Sales
|
5.3
|
%
|
6.4
|
%
|
8.8
|
%
|
6.4
|
%
|
6.7
|
%
|
||||||||||
|
Quarter Ended
|
||||||||||||||||||||
|
Trailing 12
|
||||||||||||||||||||
|
Months
|
||||||||||||||||||||
|
4/29/2018
|
7/29/2018
|
10/28/2018
|
1/27/2019
|
1/27/2019
|
||||||||||||||||
|
Net income
|
$
|
12,666
|
$
|
965
|
$
|
2,944
|
$
|
3,060
|
$
|
19,635
|
||||||||||
|
Income tax (benefit) expense
|
(6,217
|
)
|
906
|
1,276
|
1,225
|
(2,810
|
)
|
|||||||||||||
|
Interest income, net
|
(117
|
)
|
(130
|
)
|
(133
|
)
|
(251
|
)
|
(631
|
)
|
||||||||||
|
Other non-recurring charges
|
-
|
-
|
248
|
429
|
677
|
|||||||||||||||
|
Restructuring expense (credit) and related charges
|
-
|
2,016
|
(791
|
)
|
340
|
1,565
|
||||||||||||||
|
Depreciation and amortization expense
|
2,096
|
2,160
|
2,287
|
2,232
|
8,775
|
|||||||||||||||
|
Stock based compensation
|
(210
|
)
|
(501
|
)
|
395
|
479
|
163
|
|||||||||||||
|
Adjusted EBITDA
|
$
|
8,218
|
$
|
5,416
|
$
|
6,226
|
$
|
7,514
|
$
|
27,374
|
||||||||||
|
% Net Sales
|
10.5
|
%
|
7.6
|
%
|
8.1
|
%
|
9.7
|
%
|
9.0
|
%
|
||||||||||
|
% Over (Under)
|
-54.1
|
%
|
-11.1
|
%
|
2.1
|
%
|
-38.3
|
%
|
-28.5
|
%
|
||||||||||
Page 11 of 13
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
RETURN ON CAPITAL EMPLOYED BY SEGMENT
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
FOR THE TWELVE MONTHS ENDED FEBRUARY 2, 2020
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
(Amounts in Thousands)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
(Unaudited)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating Income | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Twelve Months
|
Average
|
Return on
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ended | Capital | Avg. Capital | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| February 2, 2020 (1) | Employed (2) | Employed (3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Mattress Fabrics
|
$
|
10,391
|
$
|
73,455
|
14.1
|
%
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Upholstery Fabrics
|
11,155
|
20,739
|
53.8
|
%
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Home Accessories
|
(1,548
|
)
|
3,722
|
N.M.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
(less: Unallocated Corporate)
|
(8,970
|
)
|
29,470
|
N.M.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Total
|
$
|
11,028
|
$
|
127,386
|
8.7
|
%
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Average Capital Employed
|
As of the three Months Ended February 2, 2020
|
As of the three Months Ended November 3, 2019
|
As of the three Months Ended August 4, 2019
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Home
|
Unallocated
|
|
Mattress
|
Upholstery
|
Home
|
Unallocated
|
Mattress
|
Upholstery
|
Home
|
Unallocated
|
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Accessories
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Accessories
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Accessories
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
Total assets (4)
|
$
|
88,641
|
42,248
|
7,183
|
72,268
|
210,340
|
$
|
84,473
|
42,122
|
7,280
|
97,847
|
231,722
|
$
|
83,056
|
40,456
|
6,414
|
94,521
|
224,447
|
|||||||||||||||||||||||||||||||||||||||||||
|
Total liabilities (5)
|
(10,464
|
)
|
(18,097
|
)
|
(4,074
|
)
|
(17,609
|
)
|
(50,244
|
)
|
(14,079
|
)
|
(22,711
|
)
|
(2,732
|
)
|
(26,278
|
)
|
(65,800
|
)
|
(11,854
|
)
|
(20,352
|
)
|
(2,301
|
)
|
(25,604
|
)
|
(60,111
|
)
|
|||||||||||||||||||||||||||||||
|
Subtotal
|
$
|
78,177
|
$
|
24,151
|
$
|
3,109
|
$
|
54,659
|
$
|
160,096
|
$
|
70,394
|
$
|
19,411
|
$
|
4,548
|
$
|
71,569
|
$
|
165,922
|
$
|
71,202
|
$
|
20,104
|
$
|
4,113
|
$
|
68,917
|
$
|
164,336
|
|||||||||||||||||||||||||||||||
|
Less:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Cash and cash equivalents
|
-
|
-
|
-
|
(21,872
|
)
|
(21,872
|
)
|
-
|
-
|
-
|
(47,183
|
)
|
(47,183
|
)
|
-
|
-
|
-
|
(44,236
|
)
|
(44,236
|
)
|
||||||||||||||||||||||||||||||||||||||||
|
Short-term investments -
Held-To-Maturity
|
-
|
-
|
-
|
(3,171
|
)
|
(3,171
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||||||||||
|
Short-term investments -
Available for Sale
|
-
|
-
|
-
|
(7,580
|
)
|
(7,580
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||||||||||
|
Current income taxes receivable
|
-
|
-
|
-
|
(776
|
)
|
(776
|
)
|
-
|
-
|
-
|
(776
|
)
|
(776
|
)
|
-
|
-
|
-
|
(776
|
)
|
(776
|
)
|
||||||||||||||||||||||||||||||||||||||||
|
Long-term investments -
Rabbi Trust
|
-
|
-
|
-
|
(7,804
|
)
|
(7,804
|
)
|
-
|
-
|
-
|
(7,575
|
)
|
(7,575
|
)
|
-
|
-
|
-
|
(7,347
|
)
|
(7,347
|
)
|
||||||||||||||||||||||||||||||||||||||||
|
Long-term investments -
Held-to Maturity
|
-
|
-
|
-
|
(2,224
|
)
|
(2,224
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||||||||||
|
Noncurrent income taxes receivable
|
-
|
-
|
-
|
(733
|
)
|
(733
|
)
|
-
|
-
|
-
|
(733
|
)
|
(733
|
)
|
-
|
-
|
-
|
(733
|
)
|
(733
|
)
|
||||||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
-
|
(920
|
)
|
(920
|
)
|
-
|
-
|
-
|
(511
|
)
|
(511
|
)
|
-
|
-
|
-
|
(486
|
)
|
(486
|
)
|
||||||||||||||||||||||||||||||||||||||||
|
Income taxes payable - current
|
-
|
-
|
-
|
455
|
455
|
-
|
-
|
-
|
1,539
|
1,539
|
-
|
-
|
-
|
1,116
|
1,116
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Income taxes payable - long-term
|
-
|
-
|
-
|
3,442
|
3,442
|
-
|
-
|
-
|
3,442
|
3,442
|
-
|
-
|
-
|
3,640
|
3,640
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
-
|
2,013
|
2,013
|
-
|
-
|
-
|
3,283
|
3,283
|
-
|
-
|
-
|
2,543
|
2,543
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Subordinated loan payable
|
-
|
-
|
-
|
925
|
925
|
-
|
-
|
-
|
925
|
925
|
-
|
-
|
-
|
925
|
925
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Deferred compensation - non-current
|
-
|
-
|
-
|
7,637
|
7,637
|
-
|
-
|
-
|
7,429
|
7,429
|
-
|
-
|
-
|
7,232
|
7,232
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Total Capital Employed
|
$
|
78,177
|
$
|
24,151
|
$
|
3,109
|
$
|
24,051
|
$
|
129,488
|
$
|
70,394
|
$
|
19,411
|
$
|
4,548
|
$
|
31,409
|
$
|
125,762
|
$
|
71,202
|
$
|
20,104
|
$
|
4,113
|
$
|
30,795
|
$
|
126,214
|
|||||||||||||||||||||||||||||||
| As of the three Months Ended April 28, 2019 | As of the three Months Ended January 27, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Home
|
Unallocated
|
Mattress
|
Upholstery
|
Home
|
Unallocated
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Accessories
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Accessories
|
Corporate
|
Total
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Total assets (4)
|
$
|
83,393
|
37,529
|
5,618
|
93,186
|
219,726
|
$
|
86,707
|
43,097
|
5,607
|
89,497
|
224,908
|
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Total liabilities (5)
|
(10,996
|
)
|
(18,114
|
)
|
(2,215
|
)
|
(24,154
|
)
|
(55,479
|
)
|
(11,604
|
)
|
(22,483
|
)
|
(2,168
|
)
|
(21,421
|
)
|
(57,676
|
)
|
|||||||||||||||||||||||||||||||||||||||||
|
Subtotal
|
$
|
72,397
|
$
|
19,415
|
$
|
3,403
|
$
|
69,032
|
$
|
164,247
|
$
|
75,103
|
$
|
20,614
|
$
|
3,439
|
$
|
68,076
|
$
|
167,232
|
|||||||||||||||||||||||||||||||||||||||||
|
Less:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Cash and cash equivalents
|
-
|
-
|
-
|
(40,008
|
)
|
(40,008
|
)
|
-
|
-
|
-
|
(26,418
|
)
|
(26,418
|
)
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
Short-term investments -
Held-To-Maturity |
-
|
-
|
-
|
(5,001
|
)
|
(5,001
|
)
|
-
|
-
|
-
|
(13,544
|
)
|
(13,544
|
)
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
Short-term investments -
Available for Sale
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Current income taxes receivable
|
-
|
-
|
-
|
(776
|
)
|
(776
|
)
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Long-term investments -
Rabbi Trust
|
-
|
-
|
-
|
(7,081
|
)
|
(7,081
|
)
|
-
|
-
|
-
|
(6,834
|
)
|
(6,834
|
)
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
Long-term investments -
Held-to Maturity
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Noncurrent income taxes receivable
|
-
|
-
|
-
|
(733
|
)
|
(733
|
)
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
-
|
(457
|
)
|
(457
|
)
|
-
|
-
|
-
|
(3,224
|
)
|
(3,224
|
)
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
Income taxes payable - current
|
-
|
-
|
-
|
1,022
|
1,022
|
-
|
-
|
-
|
642
|
642
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Income taxes payable - long-term
|
-
|
-
|
-
|
3,249
|
3,249
|
-
|
-
|
-
|
3,294
|
3,294
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
-
|
3,176
|
3,176
|
-
|
-
|
-
|
2,225
|
2,225
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Subordinated loan payable
|
-
|
-
|
-
|
675
|
675
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Deferred compensation - non-current
|
-
|
-
|
-
|
6,998
|
6,998
|
-
|
-
|
-
|
6,782
|
6,782
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Total Capital Employed
|
$
|
72,397
|
$
|
19,415
|
$
|
3,403
|
$
|
30,096
|
$
|
125,311
|
$
|
75,103
|
$
|
20,614
|
$
|
3,439
|
$
|
30,999
|
$
|
130,155
|
|||||||||||||||||||||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Home
|
Unallocated
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Accessories
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Average Capital Employed (3)
|
$
|
73,455
|
$
|
20,739
|
$
|
3,722
|
$
|
29,470
|
$
|
127,386
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Notes:
|
|
|
(1)
|
See reconciliation per page 13 of this financial information release.
|
|
(2)
|
Average capital employed was computed using the five quarterly periods ending February 2, 2020, November 3, 2019, August 4, 2019, April 28, 2019, and January 27, 2019.
|
|
(3)
|
Return on average capital employed represents the last twelve months operating income as of February 2, 2020, divided by average capital employed. Average capital employed does
not include cash and cash equivalents, short-term investments - Held-To-Maturity, short-term investments - Available for Sale, long-term investments - Rabbi Trust, long-term investments-Held-To-Maturity, noncurrent deferred
income tax assets and liabilities, income taxes receivable and payable, subordinated loan payable, and noncurrent deferred compensation
|
|
(4)
|
Intangible assets and goodwill are included in unallocated corporate for all periods presented and therefore, have no affect on the capital employed and return on capital
employed for our mattress fabrics, upholstery fabrics, and home accessories segments
|
|
|
|
|
(5)
|
Accrued restructuring costs and certain obligations associated with our acquisitions are included in unallocated corporate for all periods presented and therefore, have no affect
on capital employed and return on capital employed for our mattress fabrics, upholstery fabrics, and home accessories segments.
|
Page 12 of 13
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
RETURN ON CAPITAL EMPLOYED BY SEGMENT
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
FOR THE TWELVE MONTHS ENDED JANUARY 27, 2019
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
(Amounts in Thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Operating Income
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Twelve Months |
Average
|
Return on
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ended | Capital | Avg. Capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
January 27, 2019 (1)
|
Employed (2)
|
Employed (3)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Mattress Fabrics
|
$
|
14,995
|
$
|
77,132
|
19.4
|
%
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Upholstery Fabrics
|
11,229
|
19,945
|
56.3
|
%
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Home Accessories
|
(255
|
)
|
1,887
|
N.M.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
(less: Unallocated Corporate)
|
(6,605
|
)
|
24,653
|
N.M.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Total
|
$
|
19,364
|
$
|
123,617
|
15.7
|
%
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average Capital Employed | As of the three Months Ended January 27, 2019 | As of the three Months Ended October 28, 2018 | As of the three Months Ended July 29, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Home
|
Unallocated
|
Mattress
|
Upholstery
|
Home
|
Unallocated
|
Mattress
|
Upholstery
|
Home
|
Unallocated
|
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Accessories
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Accessories
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Accessories
|
Corporate
|
Total
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Total assets (4)
|
$
|
86,707
|
43,097
|
5,607
|
89,497
|
224,908
|
$
|
86,494
|
37,442
|
5,203
|
93,072
|
222,211
|
$
|
93,601
|
37,386
|
4,463
|
90,922
|
226,372
|
||||||||||||||||||||||||||||||||||||||||||
|
Total liabilities (5)
|
(11,604
|
)
|
(22,483
|
)
|
(2,168
|
)
|
(21,421
|
)
|
(57,676
|
)
|
(9,790
|
)
|
(19,646
|
)
|
(1,960
|
)
|
(23,346
|
)
|
(54,742
|
)
|
(12,883
|
)
|
(17,880
|
)
|
(1,710
|
)
|
(27,869
|
)
|
(60,342
|
)
|
||||||||||||||||||||||||||||||
|
Subtotal
|
$
|
75,103
|
$
|
20,614
|
$
|
3,439
|
$
|
68,076
|
$
|
167,232
|
$
|
76,704
|
$
|
17,796
|
$
|
3,243
|
$
|
69,726
|
$
|
167,469
|
$
|
80,718
|
$
|
19,506
|
$
|
2,753
|
$
|
63,053
|
$
|
166,030
|
||||||||||||||||||||||||||||||
|
Less:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Cash and cash equivalents
|
-
|
-
|
(26,418
|
)
|
(26,418
|
)
|
-
|
-
|
(14,768
|
)
|
(14,768
|
)
|
-
|
-
|
(8,593
|
)
|
(8,593
|
)
|
||||||||||||||||||||||||||||||||||||||||||
|
Short-term investments -
Available-For-Sale
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Short-term investments -
Held-To-Maturity
|
-
|
-
|
(13,544
|
)
|
(13,544
|
)
|
-
|
-
|
(26,719
|
)
|
(26,719
|
)
|
-
|
-
|
(30,756
|
)
|
(30,756
|
)
|
||||||||||||||||||||||||||||||||||||||||||
|
Long-term investments -
Held-To-Maturity
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Long-term investments -
Rabbi Trust
|
-
|
-
|
(6,834
|
)
|
(6,834
|
)
|
-
|
-
|
(7,851
|
)
|
(7,851
|
)
|
-
|
-
|
(7,671
|
)
|
(7,671
|
)
|
||||||||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
(3,224
|
)
|
(3,224
|
)
|
-
|
-
|
(3,614
|
)
|
(3,614
|
)
|
-
|
-
|
(3,721
|
)
|
(3,721
|
)
|
||||||||||||||||||||||||||||||||||||||||||
|
Deferred compensation - current
|
-
|
-
|
-
|
-
|
-
|
-
|
714
|
714
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Income taxes payable - current
|
-
|
-
|
642
|
642
|
-
|
-
|
2,044
|
2,044
|
-
|
-
|
1,244
|
1,244
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Income taxes payable - long-term
|
-
|
-
|
3,294
|
3,294
|
-
|
-
|
3,233
|
3,233
|
-
|
-
|
3,733
|
3,733
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
2,225
|
2,225
|
-
|
-
|
2,225
|
2,225
|
-
|
-
|
2,150
|
2,150
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Line of credit
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
4,000
|
4,000
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Deferred compensation - non-current
|
-
|
-
|
6,782
|
6,782
|
-
|
-
|
7,120
|
7,120
|
-
|
-
|
7,679
|
7,679
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Total Capital Employed
|
$
|
75,103
|
$
|
20,614
|
$
|
3,439
|
$
|
30,999
|
$
|
130,155
|
$
|
76,704
|
$
|
17,796
|
$
|
3,243
|
$
|
32,110
|
$
|
129,853
|
$
|
80,718
|
$
|
19,506
|
$
|
2,753
|
$
|
31,118
|
$
|
134,095
|
||||||||||||||||||||||||||||||
| As of the three Months Ended April 29, 2018 | As of the three Months Ended January 28, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Home
|
Unallocated
|
Mattress
|
Upholstery
|
Home
|
Unallocated
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Accessories
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Accessories
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Total assets (4)
|
$
|
95,061
|
39,812
|
-
|
83,111
|
217,984
|
$
|
93,827
|
43,458
|
-
|
79,559
|
216,844
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Total liabilities (5)
|
(17,335
|
)
|
(18,679
|
)
|
-
|
(18,594
|
)
|
(54,608
|
)
|
(18,418
|
)
|
(22,781
|
)
|
-
|
(23,463
|
)
|
(64,662
|
)
|
||||||||||||||||||||||||||||||||||||||||||
|
Subtotal
|
$
|
77,726
|
$
|
21,133
|
$
|
-
|
$
|
64,517
|
$
|
163,376
|
$
|
75,409
|
$
|
20,677
|
$
|
-
|
$
|
56,096
|
$
|
152,182
|
||||||||||||||||||||||||||||||||||||||||
|
Less:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Cash and cash equivalents
|
-
|
-
|
(21,228
|
)
|
(21,228
|
)
|
-
|
-
|
(22,428
|
)
|
(22,428
|
)
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Short-term investments -
Available-For-Sale
|
-
|
-
|
(2,451
|
)
|
(2,451
|
)
|
-
|
-
|
(2,472
|
)
|
(2,472
|
)
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Short-term investments -
Held-To-Maturity
|
-
|
-
|
(25,759
|
)
|
(25,759
|
)
|
-
|
-
|
(17,206
|
)
|
(17,206
|
)
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Long-term investments -
Held-To-Maturity
|
-
|
-
|
(5,035
|
)
|
(5,035
|
)
|
-
|
-
|
(13,625
|
)
|
(13,625
|
)
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Long-term investments -
Rabbi Trust
|
-
|
-
|
(7,326
|
)
|
(7,326
|
)
|
-
|
-
|
(7,176
|
)
|
(7,176
|
)
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
(1,458
|
)
|
(1,458
|
)
|
-
|
-
|
(1,942
|
)
|
(1,942
|
)
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Deferred compensation - current
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Income taxes payable - current
|
-
|
-
|
1,437
|
1,437
|
-
|
-
|
1,580
|
1,580
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Income taxes payable - long-term
|
-
|
-
|
3,758
|
3,758
|
-
|
-
|
10,940
|
10,940
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
2,150
|
2,150
|
-
|
-
|
2,096
|
2,096
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Line of credit
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Deferred compensation - non-current
|
-
|
-
|
7,353
|
7,353
|
-
|
-
|
7,216
|
7,216
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Total Capital Employed
|
$
|
77,726
|
$
|
21,133
|
$
|
-
|
$
|
15,958
|
$
|
114,817
|
$
|
75,409
|
$
|
20,677
|
$
|
-
|
$
|
13,079
|
$
|
109,165
|
||||||||||||||||||||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Home
|
Unallocated
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Accessories
|
Corporate
|
Total
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Average Capital Employed (3)
|
$
|
77,132
|
$
|
19,945
|
$
|
1,887
|
$
|
24,653
|
$
|
123,617
|
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Notes:
|
|
|
(1)
|
See reconciliation per page 13 of this financial information release.
|
|
(2)
|
Average capital employed was computed using the quarterly five periods ending January 27, 2019, October 28, 2018, July 29, 2018, April 29, 2018, and January 28, 2018.
|
|
(3)
|
Return on average capital employed represents the last twelve months operating income as of January 27, 2019, divided by average capital employed. Average capital employed
does not include cash and cash equivalents, short-term investments - Available- For-Sale, short-term investments Held-To-Maturity, long-term investments Held-To-Maturity, long-term investments - Rabbi Trust, noncurrent
deferred income tax assets and liabilities, income taxes payable, line of credit, and current and noncurrent deferred compensation.
|
|
(4)
|
Intangible assets and goodwill are included in unallocated corporate for all periods presented and therefore, have no affect on the capital employed and return on capital
employed for our mattress fabrics, upholstery fabrics, and home accessories segments.
|
|
(5)
|
Accrued restructuring costs and certain obligations associated with our acquisitions are included in unallocated coporate for all periods presented and therefore, have no
affect on capital employed and return on capital employed for our mattress fabrics, upholstery fabrics, and home accessories segments.
|
Page 13 of 13
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATING INCOME (LOSS)
|
||||||||||||||||||||
|
FOR THE TWELVE MONTHS ENDED FEBRUARY 2, 2020 AND JANUARY 27, 2019
|
||||||||||||||||||||
|
(UNAUDITED)
|
||||||||||||||||||||
|
(AMOUNTS IN THOUSANDS)
|
||||||||||||||||||||
|
Quarter Ended
|
||||||||||||||||||||
|
Trailing 12
|
||||||||||||||||||||
|
Months
|
||||||||||||||||||||
|
4/28/2019
|
8/4/2019
|
11/3/2019
|
2/2/2020
|
2/2/2020
|
||||||||||||||||
|
Mattress Fabrics
|
$
|
2,698
|
$
|
2,623
|
$
|
3,293
|
$
|
1,777
|
$
|
10,391
|
||||||||||
|
Upholstery Fabrics
|
1,777
|
2,875
|
3,473
|
3,030
|
11,155
|
|||||||||||||||
|
Home Accessories
|
(479
|
)
|
(538
|
)
|
(350
|
)
|
(181
|
)
|
(1,548
|
)
|
||||||||||
|
Unallocated Corporate
|
(2,037
|
)
|
(2,306
|
)
|
(2,433
|
)
|
(2,194
|
)
|
(8,970
|
)
|
||||||||||
|
Subtotal
|
1,959
|
2,654
|
3,983
|
2,432
|
11,028
|
|||||||||||||||
|
Asset Impairments
|
-
|
-
|
-
|
(13,639
|
)
|
(13,639
|
)
|
|||||||||||||
|
Reversal of contingent consideration - earn-out obligation
|
-
|
-
|
-
|
6,081
|
6,081
|
|||||||||||||||
|
Restructuring credit
|
-
|
35
|
-
|
35
|
70
|
|||||||||||||||
|
Operating income
|
$
|
1,959
|
$
|
2,689
|
$
|
3,983
|
$
|
(5,091
|
)
|
$
|
3,540
|
|||||||||
|
Quarter Ended
|
||||||||||||||||||||
|
Trailing 12
|
||||||||||||||||||||
|
Months
|
||||||||||||||||||||
|
4/29/2018
|
7/29/2018
|
10/28/2018
|
1/27/2019
|
1/27/2019
|
||||||||||||||||
|
Mattress Fabrics
|
$
|
6,088
|
$
|
2,790
|
$
|
2,909
|
$
|
3,208
|
$
|
14,995
|
||||||||||
|
Upholstery Fabrics
|
2,181
|
2,527
|
2,722
|
3,799
|
11,229
|
|||||||||||||||
|
Home Accessories
|
-
|
33
|
23
|
(311
|
)
|
(255
|
)
|
|||||||||||||
|
Unallocated Corporate
|
(1,805
|
)
|
(1,259
|
)
|
(1,913
|
)
|
(1,628
|
)
|
(6,605
|
)
|
||||||||||
|
Subtotal
|
$
|
6,464
|
$
|
4,091
|
$
|
3,741
|
$
|
5,068
|
$
|
19,364
|
||||||||||
|
Other non-recurring charges
|
-
|
-
|
(248
|
)
|
(429
|
)
|
(677
|
)
|
||||||||||||
|
Restructuring (expense) credit and related charges
|
-
|
(2,016
|
)
|
791
|
(340
|
)
|
(1,565
|
)
|
||||||||||||
|
Operating income
|
$
|
6,464
|
$
|
2,075
|
$
|
4,284
|
$
|
4,299
|
$
|
17,122
|
||||||||||
|
% Over (Under)
|
-69.7
|
%
|
29.6
|
%
|
-7.0
|
%
|
-218.4
|
%
|
-79.3
|
%
|
||||||||||