Attached files
| file | filename |
|---|---|
| EX-99.(A) - EXHIBIT 99(A) - CULP INC | a50082175ex99_a.htm |
| 8-K - CULP, INC. 8-K - CULP INC | a50082175.htm |
Exhibit 99(b)
Page 1 of 8
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||||||
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CONSOLIDATED STATEMENTS OF NET INCOME
|
||||||||||||||||||||||||
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FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 30, 2011 AND OCTOBER 31, 2010
|
||||||||||||||||||||||||
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(UNAUDITED)
|
||||||||||||||||||||||||
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(Amounts in Thousands, Except for Per Share Data)
|
||||||||||||||||||||||||
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THREE MONTHS ENDED
|
||||||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||||||
|
October 30,
|
October 31,
|
% Over
|
October 30,
|
October 31,
|
||||||||||||||||||||
|
2011
|
2010
|
(Under)
|
2011
|
2010
|
||||||||||||||||||||
|
Net sales
|
$ | 58,013 | 48,879 | 18.7 | % | 100.0 | % | 100.0 | % | |||||||||||||||
|
Cost of sales
|
49,367 | 41,270 | 19.6 | % | 85.1 | % | 84.4 | % | ||||||||||||||||
|
Gross profit
|
8,646 | 7,609 | 13.6 | % | 14.9 | % | 15.6 | % | ||||||||||||||||
|
Selling, general and
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||||||||||||||||||||||||
|
administrative expenses
|
5,720 | 4,202 | 36.1 | % | 9.9 | % | 8.6 | % | ||||||||||||||||
|
Income from operations
|
2,926 | 3,407 | (14.1 | ) | % | 5.0 | % | 7.0 | % | |||||||||||||||
|
Interest expense
|
188 | 225 | (16.4 | ) | % | 0.3 | % | 0.5 | % | |||||||||||||||
|
Interest income
|
(110 | ) | (49 | ) | 124.5 | % | (0.2 | ) | % | (0.1 | ) | % | ||||||||||||
|
Other (income) expense
|
(15 | ) | 30 | 150.0 | % | (0.0 | ) | % | 0.1 | % | ||||||||||||||
|
Income before income taxes
|
2,863 | 3,201 | (10.6 | ) | % | 4.9 | % | 6.5 | % | |||||||||||||||
|
Income taxes*
|
(3,389 | ) | (801 | ) |
N.M.
|
(118.4 | ) | % | (25.0 | ) | % | |||||||||||||
|
Net income
|
$ | 6,252 | 4,002 | 56.2 | % | 10.8 | % | 8.2 | % | |||||||||||||||
|
Net income per share-basic
|
$0.49 | $0.31 | 58.1 | % | ||||||||||||||||||||
|
Net income per share-diluted
|
$0.49 | $0.30 | 63.3 | % | ||||||||||||||||||||
|
Average shares outstanding-basic
|
12,733 | 12,932 | (1.5 | ) | % | |||||||||||||||||||
|
Average shares outstanding-diluted
|
12,871 | 13,167 | (2.2 | ) | % | |||||||||||||||||||
|
SIX MONTHS ENDED
|
||||||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||||||
|
October 30,
|
October 31,
|
% Over
|
October 30,
|
October 31,
|
||||||||||||||||||||
|
2011
|
2010
|
(Under)
|
2011
|
2010
|
||||||||||||||||||||
|
Net sales
|
$ | 118,283 | 104,791 | 12.9 | % | 100.0 | % | 100.0 | % | |||||||||||||||
|
Cost of sales
|
100,759 | 87,473 | 15.2 | % | 85.2 | % | 83.5 | % | ||||||||||||||||
|
Gross profit
|
17,524 | 17,318 | 1.2 | % | 14.8 | % | 16.5 | % | ||||||||||||||||
|
Selling, general and
|
||||||||||||||||||||||||
|
administrative expenses
|
11,477 | 9,416 | 21.9 | % | 9.7 | % | 9.0 | % | ||||||||||||||||
|
Restructuring credit
|
- | (8 | ) | (100.0 | ) | % | 0.0 | % | (0.0 | ) | % | |||||||||||||
|
Income from operations
|
6,047 | 7,910 | (23.6 | ) | % | 5.1 | % | 7.5 | % | |||||||||||||||
|
Interest expense
|
409 | 435 | (6.0 | ) | % | 0.3 | % | 0.4 | % | |||||||||||||||
|
Interest income
|
(238 | ) | (87 | ) | 173.6 | % | (0.2 | ) | % | (0.1 | ) | % | ||||||||||||
|
Other expense
|
49 | 83 | (41.0 | ) | % | 0.0 | % | 0.1 | % | |||||||||||||||
|
Income before income taxes
|
5,827 | 7,479 | (22.1 | ) | % | 4.9 | % | 7.1 | % | |||||||||||||||
|
Income taxes*
|
(2,244 | ) | (270 | ) |
N.M.
|
(38.5 | ) | % | (3.6 | ) | % | |||||||||||||
|
Net income
|
$ | 8,071 | 7,749 | 4.2 | % | 6.8 | % | 7.4 | % | |||||||||||||||
|
Net income per share-basic
|
$0.63 | $0.60 | 5.0 | % | ||||||||||||||||||||
|
Net income per share-diluted
|
$0.62 | $0.59 | 5.1 | % | ||||||||||||||||||||
|
Average shares outstanding-basic
|
12,898 | 12,901 | (0.0 | ) | % | |||||||||||||||||||
|
Average shares outstanding-diluted
|
13,025 | 13,186 | (1.2 | ) | % | |||||||||||||||||||
|
Adjusted Effective Income Tax Rate (1)
|
18.0 | % | 15.4 | % | 16.9 | % | ||||||||||||||||||
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* Percent of sales column for income taxes is calculated as a % of income before income taxes.
|
|
(1) See page 8 for reconciliation to the GAAP effective income tax rate.
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Page 2 of 8
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CULP, INC. FINANCIAL INFORMATION RELEASE
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CONSOLIDATED BALANCE SHEETS
|
|
OCTOBER 30, 2011, OCTOBER 31, 2010 AND MAY 1, 2011
|
|
Unaudited
|
|
(Amounts in Thousands)
|
|
Amounts
|
Increase
|
|||||||||||||||||||
|
October 30,
|
October 31,
|
(Decrease)
|
* May 1,
|
|||||||||||||||||
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2011
|
2010
|
Dollars
|
Percent
|
2011
|
||||||||||||||||
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Current assets
|
||||||||||||||||||||
|
Cash and cash equivalents
|
$ | 13,795 | 15,262 | (1,467 | ) | (9.6 | ) % | 23,181 | ||||||||||||
|
Short-term investments
|
10,482 | 4,035 | 6,447 | 159.8 | % | 7,699 | ||||||||||||||
|
Accounts receivable
|
16,241 | 14,810 | 1,431 | 9.7 | % | 20,209 | ||||||||||||||
|
Inventories
|
33,776 | 29,435 | 4,341 | 14.7 | % | 28,723 | ||||||||||||||
|
Deferred income taxes
|
2,659 | 176 | 2,483 | 1,410.8 | % | 293 | ||||||||||||||
|
Assets held for sale
|
75 | 123 | (48 | ) | (39.0 | ) % | 75 | |||||||||||||
|
Income taxes receivable
|
79 | 477 | (398 | ) | (83.4 | ) % | 79 | |||||||||||||
|
Other current assets
|
1,602 | 1,234 | 368 | 29.8 | % | 2,376 | ||||||||||||||
|
Total current assets
|
78,709 | 65,552 | 13,157 | 20.1 | % | 82,635 | ||||||||||||||
|
Property, plant & equipment, net
|
30,431 | 31,225 | (794 | ) | (2.5 | ) % | 30,296 | |||||||||||||
|
Goodwill
|
11,462 | 11,462 | - | 0.0 | % | 11,462 | ||||||||||||||
|
Deferred income taxes
|
4,540 | 1,391 | 3,149 | 226.4 | % | 3,606 | ||||||||||||||
|
Other assets
|
1,982 | 2,278 | (296 | ) | (13.0 | ) % | 2,052 | |||||||||||||
|
Total assets
|
$ | 127,124 | 111,908 | 15,216 | 13.6 | % | 130,051 | |||||||||||||
|
Current liabilities
|
||||||||||||||||||||
|
Current maturities of long-term debt
|
$ | 2,401 | 2,396 | 5 | 0.2 | % | 2,412 | |||||||||||||
|
Accounts payable - trade
|
21,689 | 17,992 | 3,697 | 20.5 | % | 24,871 | ||||||||||||||
|
Accounts payable - capital expenditures
|
112 | 253 | (141 | ) | (55.7 | ) % | 140 | |||||||||||||
|
Accrued expenses
|
6,839 | 5,665 | 1,174 | 20.7 | % | 7,617 | ||||||||||||||
|
Accrued restructuring
|
40 | 287 | (247 | ) | (86.1 | ) % | 44 | |||||||||||||
|
Deferred income taxes
|
- | - | - | 0.0 | % | 82 | ||||||||||||||
|
Income taxes payable - current
|
373 | 90 | 283 | 314.4 | % | 646 | ||||||||||||||
|
Total current liabilities
|
31,454 | 26,683 | 4,771 | 17.9 | % | 35,812 | ||||||||||||||
|
Income taxes payable - long-term
|
4,096 | 3,890 | 206 | 5.3 | % | 4,167 | ||||||||||||||
|
Deferred income taxes
|
659 | 622 | 37 | 5.9 | % | 596 | ||||||||||||||
|
Long-term debt , less current maturities
|
6,818 | 9,209 | (2,391 | ) | (26.0 | ) % | 9,135 | |||||||||||||
|
Total liabilities
|
43,027 | 40,404 | 2,623 | 6.5 | % | 49,710 | ||||||||||||||
|
Shareholders' equity
|
84,097 | 71,504 | 12,593 | 17.6 | % | 80,341 | ||||||||||||||
|
Total liabilities and
|
||||||||||||||||||||
|
shareholders' equity
|
$ | 127,124 | 111,908 | 15,216 | 13.6 | % | 130,051 | |||||||||||||
|
Shares outstanding
|
12,767 | 13,199 | (432 | ) | (3.3 | ) % | 13,264 | |||||||||||||
|
* Derived from audited financial statements.
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||||||||||||||||||||
Page 3 of 8
| CULP, INC. FINANCIAL INFORMATION RELEASE |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
FOR THE SIX MONTHS ENDED OCTOBER 30, 2011 AND OCTOBER 31, 2010
|
| Unaudited |
|
(Amounts in Thousands)
|
|
SIX MONTHS ENDED
|
||||||||
|
Amounts
|
||||||||
|
October 30,
|
October 31,
|
|||||||
|
2011
|
2010
|
|||||||
|
Cash flows from operating activities:
|
|
|||||||
|
Net income
|
$ | 8,071 | $ | 7,749 | ||||
|
Adjustments to reconcile net income to net cash
|
||||||||
|
provided by operating activities:
|
||||||||
|
Depreciation
|
2,386 | 2,097 | ||||||
|
Amortization of other assets
|
127 | 258 | ||||||
|
Stock-based compensation
|
178 | 204 | ||||||
|
Excess tax benefit related to stock-based compensation
|
(39 | ) | (270 | ) | ||||
|
Deferred income taxes
|
(3,280 | ) | (1,183 | ) | ||||
|
(Gain) loss on sale of equipment
|
(128 | ) | 4 | |||||
|
Foreign currency exchange (gains) losses
|
(164 | ) | 60 | |||||
|
Changes in assets and liabilities:
|
||||||||
|
Accounts receivable
|
4,004 | 5,110 | ||||||
|
Inventories
|
(4,964 | ) | (3,363 | ) | ||||
|
Other current assets
|
750 | 477 | ||||||
|
Other assets
|
(31 | ) | (45 | ) | ||||
|
Accounts payable-trade
|
(3,382 | ) | (4,493 | ) | ||||
|
Accrued expenses
|
(754 | ) | (4,112 | ) | ||||
|
Accrued restructuring
|
(4 | ) | (37 | ) | ||||
|
Income taxes
|
(189 | ) | 121 | |||||
|
Net cash provided by operating activities
|
2,581 | 2,577 | ||||||
|
Cash flows from investing activities:
|
||||||||
|
Capital expenditures
|
(2,551 | ) | (5,076 | ) | ||||
|
Proceeds from the sale of equipment
|
130 | 27 | ||||||
|
Purchase of short-term investments
|
(4,789 | ) | (1,012 | ) | ||||
|
Proceeds from the sale of short-term investments
|
2,032 | - | ||||||
|
Net cash used in investing activities
|
(5,178 | ) | (6,061 | ) | ||||
|
Cash flows from financing activities:
|
||||||||
|
Proceeds from lines of credit
|
3,500 | - | ||||||
|
Payments on lines of credit
|
(3,500 | ) | - | |||||
|
Payments on long-term debt
|
(2,305 | ) | (80 | ) | ||||
|
Payments on vendor-financed capital expenditures
|
- | (188 | ) | |||||
|
Proceeds from common stock issued
|
237 | 511 | ||||||
|
Common stock shares repurchased
|
(4,776 | ) | - | |||||
|
Debt issance costs
|
(26 | ) | (27 | ) | ||||
|
Excess tax benefit related to stock-based compensation
|
39 | 270 | ||||||
|
Net cash (used in) provided by financing activities
|
(6,831 | ) | 486 | |||||
|
Effect of exchange rate changes on cash and cash equivalents
|
42 | (35 | ) | |||||
|
Decrease in cash and cash equivalents
|
(9,386 | ) | (3,033 | ) | ||||
|
Cash and cash equivalents at beginning of period
|
23,181 | 18,295 | ||||||
|
Cash and cash equivalents at end of period
|
$ | 13,795 | $ | 15,262 | ||||
|
Free Cash Flow (1)
|
$ | 241 | $ | (2,425 | ) | |||
|
(1) Free Cash Flow reconciliation is as follows:
|
|||||||||||
|
FY 2012
|
FY 2011
|
||||||||||
| A | ) |
Net cash used in operating activities
|
$ | 2,581 | $ | 2,577 | |||||
| B | ) |
Minus: Capital Expenditures
|
(2,551 | ) | (5,076 | ) | |||||
| C | ) |
Add: Proceeds from the sale of equipment
|
130 | 27 | |||||||
| D | ) |
Minus: Payments on vendor-financed capital expenditures
|
- | (188 | ) | ||||||
| E | ) |
Add: Excess tax benefit related to stock-based compensation
|
39 | 270 | |||||||
| F | ) |
Effects of exchange rate changes on cash and cash equivalents
|
42 | (35 | ) | ||||||
| $ | 241 | $ | (2,425 | ) | |||||||
Page 4 of 8
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
|
STATEMENTS OF OPERATIONS BY SEGMENT
|
|
FOR THE THREE MONTHS ENDED OCTOBER 30, 2011 AND OCTOBER 31, 2010
|
|
(Unaudited)
|
|
(Amounts in thousands)
|
| THREE MONTHS ENDED | |||||||||||||||||||||||
|
Amounts
|
Percent of Total Sales
|
||||||||||||||||||||||
|
October 30,
|
October 31,
|
% Over
|
October 30,
|
October 31,
|
|||||||||||||||||||
|
Net Sales by Segment
|
2011
|
2010
|
(Under)
|
2011
|
2010
|
||||||||||||||||||
|
Mattress Fabrics
|
$ | 35,242 | 28,335 | 24.4 | % | 60.7 |
%
|
58.0 | % | ||||||||||||||
|
Upholstery Fabrics
|
22,771 | 20,544 | 10.8 | % | 39.3 |
%
|
42.0 | % | |||||||||||||||
|
Net Sales
|
$ | 58,013 | 48,879 | 18.7 | % | 100.0 |
%
|
100.0 | % | ||||||||||||||
|
Gross Profit by Segment
|
Gross Profit Margin
|
||||||||||||||||||||||
|
Mattress Fabrics
|
$ | 5,938 | 5,030 | 18.1 | % | 16.8 |
%
|
17.8 | % | ||||||||||||||
|
Upholstery Fabrics
|
2,785 | 2,579 | 8.0 | % | 12.2 |
%
|
12.6 | % | |||||||||||||||
|
Subtotal
|
8,723 | 7,609 | 14.6 | % | 15.0 |
%
|
15.6 | % | |||||||||||||||
|
Other non-recurring charges
|
(77 | ) | (1 | ) | - | 100.0 | % | (0.1 | ) |
%
|
0.0 | % | |||||||||||
|
Gross Profit
|
$ | 8,646 | 7,609 | 13.6 | % | 14.9 |
%
|
15.6 | % | ||||||||||||||
|
Selling, General and Administrative expenses by Segment
|
|
Percent of Sales
|
|||||||||||||||||||||
|
Mattress Fabrics
|
$ | 2,132 | 1,704 | 25.1 | % | 6.0 |
%
|
6.0 | % | ||||||||||||||
|
Upholstery Fabrics
|
2,766 | 1,777 | 55.7 | % | 12.1 |
%
|
8.6 | % | |||||||||||||||
|
Unallocated Corporate expenses
|
822 | 721 | 14.0 | % | 1.4 |
%
|
1.5 | % | |||||||||||||||
|
Selling, General and Administrative expenses
|
5,720 | 4,202 | 36.1 | % | 9.9 |
%
|
8.6 | % | |||||||||||||||
|
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
||||||||||||||||||||||
|
Mattress Fabrics
|
$ | 3,806 | 3,326 | 14.4 | % | 10.8 |
%
|
11.7 | % | ||||||||||||||
|
Upholstery Fabrics
|
19 | 802 | (97.6 | ) % | 0.1 |
%
|
3.9 | % | |||||||||||||||
|
Unallocated corporate expenses
|
(822 | ) | (721 | ) | 14.0 | % | (1.4 | ) |
%
|
(1.5 | ) % | ||||||||||||
|
Subtotal
|
3,003 | 3,407 | (11.9 | ) % | 5.2 |
%
|
7.0 | % | |||||||||||||||
|
Other non-recurring charges
|
(77 | ) | (1 | ) | - | 100.0 | % | (0.1 | ) |
%
|
0.0 | % | |||||||||||
|
Operating income
|
$ | 2,926 | 3,407 | (14.1 | ) % | 5.0 |
%
|
7.0 | % | ||||||||||||||
|
Depreciation by Segment
|
|||||||||||||||||||||||
|
Mattress Fabrics
|
$ | 1,054 | 944 | 11.7 | % | ||||||||||||||||||
|
Upholstery Fabrics
|
146 | 139 | 5.0 | % | |||||||||||||||||||
|
Subtotal
|
$ | 1,200 | 1,083 | 10.8 | % | ||||||||||||||||||
(1) Our other non-recurring charges represent employee termination benefits associated with our Anderson, SC plant facility.
Page 5 of 8
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
|
STATEMENTS OF OPERATIONS BY SEGMENT
|
|
FOR THE SIX MONTHS ENDED OCTOBER 30, 2011 AND OCTOBER 31, 2010
|
|
(Unaudited)
|
|
(Amounts in thousands)
|
| SIX MONTHS ENDED | ||||||||||||||||||||||||
|
Amounts
|
Percent of Total Sales
|
|||||||||||||||||||||||
|
October 30,
|
October 31,
|
% Over
|
October 30,
|
October 31,
|
||||||||||||||||||||
|
Net Sales by Segment
|
2011
|
2010
|
(Under)
|
2011
|
2010
|
|||||||||||||||||||
|
Mattress Fabrics
|
$ | 67,412 | 59,253 | 13.8 | % | 57.0 | % | 56.5 | % | |||||||||||||||
|
Upholstery Fabrics
|
50,871 | 45,538 | 11.7 | % | 43.0 | % | 43.5 | % | ||||||||||||||||
|
Net Sales
|
$ | 118,283 | 104,791 | 12.9 | % | 100.0 | % | 100.0 | % | |||||||||||||||
|
Gross Profit by Segment
|
Gross Profit Margin
|
|||||||||||||||||||||||
|
Mattress Fabrics
|
$ | 11,076 | 11,020 | 0.5 | % | 16.4 | % | 18.6 | % | |||||||||||||||
|
Upholstery Fabrics
|
6,525 | 6,298 | 3.6 | % | 12.8 | % | 13.8 | % | ||||||||||||||||
|
Subtotal
|
17,601 | 17,318 | 1.6 | % | 14.9 | % | 16.5 | % | ||||||||||||||||
|
Other non-recurring charges
|
(77 | ) | (1 | ) | - | 100.0 | % | (0.1 | ) | 0.0 | % | |||||||||||||
|
Gross Profit
|
$ | 17,524 | 17,318 | 1.2 | % | 14.8 | % | 16.5 | % | |||||||||||||||
|
Selling, General and Administrative expenses by Segment
|
Percent of Sales
|
|||||||||||||||||||||||
|
Mattress Fabrics
|
$ | 4,123 | 3,701 | 11.4 | % | 6.1 | % | 6.2 | % | |||||||||||||||
|
Upholstery Fabrics
|
5,534 | 3,878 | 42.7 | % | 10.9 | % | 8.5 | % | ||||||||||||||||
|
Unallocated Corporate expenses
|
1,820 | 1,837 | (0.9 | ) % | 1.5 | % | 1.8 | % | ||||||||||||||||
|
Subtotal
|
11,477 | 9,416 | 21.9 | % | 9.7 | % | 9.0 | % | ||||||||||||||||
|
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
|||||||||||||||||||||||
|
Mattress Fabrics
|
$ | 6,953 | 7,319 | (5.0 | ) % | 10.3 | % | 12.4 | % | |||||||||||||||
|
Upholstery Fabrics
|
991 | 2,420 | (59.0 | ) % | 1.9 | % | 5.3 | % | ||||||||||||||||
|
Unallocated corporate expenses
|
(1,820 | ) | (1,837 | ) | (0.9 | ) % | (1.5 | ) % | (1.8 | ) % | ||||||||||||||
|
Subtotal
|
6,124 | 7,902 | (22.5 | ) % | 5.2 | % | 7.5 | % | ||||||||||||||||
|
Other non-recurring charges
|
(77 | ) | (1 | ) | - | 100.0 | % | (0.1 | ) % | 0.0 | % | |||||||||||||
|
Restructuring and related credit
|
- | 8 | (2 | ) | (100.0 | ) % | 0.0 | % | 0.0 | % | ||||||||||||||
|
Operating income
|
$ | 6,047 | 7,910 | (23.6 | ) % | 5.1 | % | 7.5 | % | |||||||||||||||
|
Return on Capital (3)
|
||||||||||||||||||||||||
|
Mattress Fabrics
|
25.8 | % | 28.5 | % | ||||||||||||||||||||
|
Upholstery Fabrics
|
16.2 | % | 39.1 | % | ||||||||||||||||||||
|
Unallocated Corporate
|
N/A | N/A | ||||||||||||||||||||||
|
Consolidated
|
18.5 | % | 25.2 | % | ||||||||||||||||||||
|
Capital Employed (3) (4)
|
||||||||||||||||||||||||
|
Mattress Fabrics
|
53,215 | 54,851 | (3.0 | ) % | ||||||||||||||||||||
|
Upholstery Fabrics
|
13,209 | 12,002 | 10.1 | % | ||||||||||||||||||||
|
Unallocated Corporate
|
465 | (483 | ) | N/A | ||||||||||||||||||||
|
Consolidated
|
66,889 | 66,370 | 0.8 | % | ||||||||||||||||||||
|
Depreciation by Segment
|
||||||||||||||||||||||||
|
Mattress Fabrics
|
$ | 2,082 | 1,822 | 14.3 | % | |||||||||||||||||||
|
Upholstery Fabrics
|
304 | 275 | 10.5 | % | ||||||||||||||||||||
|
Subtotal
|
2,386 | 2,097 | 13.8 | % | ||||||||||||||||||||
Notes:
(1) Our other non-recurring charges represent employee termination benefits associated with our Anderson, SC plant facility.
(2) The $8 restructuring credit primarily represents a credit of $15 for employee termination benefits and a charge of $7 for lease termination and other exit costs.
(3) See pages 6 and 7 of this financial information release for calculations.
(4) The capital employed balances are as of October 30, 2011 and October 31, 2010.
Page 6 of 8
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
|
RETURN ON CAPITAL EMPLOYED BY SEGMENT
|
|
FOR THE SIX MONTHS ENDED OCTOBER 30, 2011
|
|
(Amounts in Thousands)
|
|
(Unaudited)
|
| Operating | |||||||||||||
|
Income
|
|
||||||||||||
|
Six Months
|
Average
|
Return on
|
|||||||||||
|
Ended
|
Capital
|
Avg. Capital
|
|||||||||||
| October 30, | Employed | Employed | |||||||||||
|
2011 (1)
|
(3)
|
(2)
|
|||||||||||
|
Mattress Fabrics
|
$ | 6,953 | $ | 53,947 | 25.8 | % | |||||||
|
Upholstery Fabrics
|
991 | 12,234 | 16.2 | % | |||||||||
|
(less: Unallocated Corporate)
|
(1,820 | ) | 129 | N/A | |||||||||
|
Total
|
$ | 6,124 | $ | 66,310 | 18.5 | % | |||||||
|
Average Capital Employed
|
As of the three Months Ended October 30, 2011
|
As of the three Months Ended July 31, 2011
|
As of the three Months Ended May 1, 2011
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
|
Mattress
|
Upholstery
|
Unallocated
|
|
Mattress
|
Upholstery
|
Unallocated
|
|
|||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||
|
Total assets
|
68,568 | 24,462 | 34,094 | 127,124 | 71,325 | 26,683 | 31,299 | 129,307 | 66,637 | 25,929 | 37,485 | 130,051 | ||||||||||||||||||||||||||||||||||||
|
Total liabilities
|
(15,353 | ) | (11,253 | ) | (16,421 | ) | (43,027 | ) | (15,331 | ) | (13,507 | ) | (19,118 | ) | (47,956 | ) | (14,005 | ) | (15,612 | ) | (20,093 | ) | (49,710 | ) | ||||||||||||||||||||||||
|
Subtotal
|
$ | 53,215 | $ | 13,209 | $ | 17,673 | $ | 84,097 | $ | 55,994 | $ | 13,176 | $ | 12,181 | $ | 81,351 | $ | 52,632 | $ | 10,317 | $ | 17,392 | $ | 80,341 | ||||||||||||||||||||||||
|
Less:
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Cash and cash equivalents
|
- | - | (13,795 | ) | (13,795 | ) | - | - | (14,570 | ) | (14,570 | ) | - | - | (23,181 | ) | (23,181 | ) | ||||||||||||||||||||||||||||||
|
Short-term investments
|
- | - | (10,482 | ) | (10,482 | ) | - | - | (10,443 | ) | (10,443 | ) | - | - | (7,699 | ) | (7,699 | ) | ||||||||||||||||||||||||||||||
|
Deferred income taxes - current
|
- | - | (2,659 | ) | (2,659 | ) | - | - | (1,237 | ) | (1,237 | ) | - | - | (293 | ) | (293 | ) | ||||||||||||||||||||||||||||||
|
Income taxes receivable
|
- | - | (79 | ) | (79 | ) | - | - | (79 | ) | (79 | ) | - | - | (79 | ) | (79 | ) | ||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
- | - | (4,540 | ) | (4,540 | ) | - | - | (2,191 | ) | (2,191 | ) | - | - | (3,606 | ) | (3,606 | ) | ||||||||||||||||||||||||||||||
|
Current maturities of long-term debt
|
- | - | 2,401 | 2,401 | - | - | 2,409 | 2,409 | - | - | 2,412 | 2,412 | ||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - current
|
- | - | 82 | 82 | 82 | 82 | ||||||||||||||||||||||||||||||||||||||||||
|
Income taxes payable - current
|
- | - | 373 | 373 | - | - | 345 | 345 | - | - | 646 | 646 | ||||||||||||||||||||||||||||||||||||
|
Income taxes payable - long-term
|
- | - | 4,096 | 4,096 | - | - | 4,178 | 4,178 | - | - | 4,167 | 4,167 | ||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
- | - | 659 | 659 | - | - | 596 | 596 | - | - | 596 | 596 | ||||||||||||||||||||||||||||||||||||
|
Long-term debt, less current maturities
|
- | - | 6,818 | 6,818 | - | - | 9,079 | 9,079 | - | - | 9,135 | 9,135 | ||||||||||||||||||||||||||||||||||||
|
Total Capital Employed
|
$ | 53,215 | $ | 13,209 | $ | 465 | $ | 66,889 | $ | 55,994 | $ | 13,176 | $ | 350 | $ | 69,520 | $ | 52,632 | $ | 10,317 | $ | (428 | ) | $ | 62,521 | |||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
|
||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
||||||||||||||
|
Average Capital Employed (3)
|
$ | 53,947 | $ | 12,234 | $ | 129 | $ | 66,310 | |||||||||
|
Notes:
|
|
(1) See reconciliation per page 5 of this financial information release.
|
|
(2) Return on average capital employed represents operating income for the six month period ending October 30, 2011 times 2 to arrive at an annualized value then divided by average capital employed. Average capital employed does not include cash and cash equivalents, short-term investments, long-term debt, including current maturities, current and noncurrent deferred tax assets and liabilities, income taxes payable, and income taxes receivable.
|
|
|
|
(3) Average capital employed was computed using the three periods ending May 1, 2011, July 31, 2011, and October 30, 2011.
|
Page 7 of 8
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
|
RETURN ON CAPITAL EMPLOYED BY SEGMENT
|
|
FOR THE SIX MONTHS ENDED OCTOBER 31, 2010
|
| (UNAUDITED) |
|
Operating
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Income
|
|
Return on
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Six Months
|
Average
|
Avg. | ||||||||||||||||||||||||||||||||||||||||||||||
|
Ended
|
Capital
|
Capital
|
|
|||||||||||||||||||||||||||||||||||||||||||||
| October 31, | Employed | Employed | ||||||||||||||||||||||||||||||||||||||||||||||
|
2010 (1)
|
(3)
|
(2)
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Mattress Fabrics
|
$ | 7,319 | $ | 51,357 | 28.5 | % | ||||||||||||||||||||||||||||||||||||||||||
|
Upholstery Fabrics
|
2,420 | 12,384 | 39.1 | % | ||||||||||||||||||||||||||||||||||||||||||||
|
(less: Unallocated Corporate)
|
(1,837 | ) | (1,021 | ) | N/A | |||||||||||||||||||||||||||||||||||||||||||
|
Total
|
$ | 7,902 | $ | 62,720 | 25.2 | % | ||||||||||||||||||||||||||||||||||||||||||
|
Average Capital Employed
|
As of the three Months Ended October 31, 2010
|
As of the three Months Ended August 1, 2010
|
As of the three Months Ended May 2, 2010
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
|
Mattress
|
Upholstery
|
Unallocated
|
|
Mattress
|
Upholstery
|
Unallocated
|
|
|||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||
|
Total assets
|
65,485 | 22,277 | 24,146 | 111,908 | 66,919 | 24,415 | 21,763 | 113,097 | 61,922 | 25,420 | 25,256 | 112,598 | ||||||||||||||||||||||||||||||||||||
|
Total liabilities
|
(10,634 | ) | (10,275 | ) | (19,495 | ) | (40,404 | ) | (14,902 | ) | (11,126 | ) | (19,943 | ) | (45,971 | ) | (14,720 | ) | (13,559 | ) | (21,272 | ) | (49,551 | ) | ||||||||||||||||||||||||
|
Subtotal
|
$ | 54,851 | $ | 12,002 | $ | 4,651 | $ | 71,504 | $ | 52,017 | $ | 13,289 | $ | 1,820 | $ | 67,126 | $ | 47,202 | $ | 11,861 | $ | 3,984 | $ | 63,047 | ||||||||||||||||||||||||
|
Less:
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Cash and cash equivalents
|
- | - | (15,262 | ) | (15,262 | ) | - | - | (14,045 | ) | (14,045 | ) | - | - | (18,295 | ) | (18,295 | ) | ||||||||||||||||||||||||||||||
|
Short-term investments
|
- | - | (4,035 | ) | (4,035 | ) | - | - | (4,009 | ) | (4,009 | ) | (3,023 | ) | (3,023 | ) | ||||||||||||||||||||||||||||||||
|
Deferred income taxes - current
|
- | - | (176 | ) | (176 | ) | - | - | (138 | ) | (138 | ) | - | - | (150 | ) | (150 | ) | ||||||||||||||||||||||||||||||
|
Income taxes receivable
|
- | - | (477 | ) | (477 | ) | - | - | (568 | ) | (568 | ) | - | - | (728 | ) | (728 | ) | ||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
- | - | (1,391 | ) | (1,391 | ) | - | - | (245 | ) | (245 | ) | - | - | (324 | ) | (324 | ) | ||||||||||||||||||||||||||||||
|
Current maturities of long-term debt
|
- | - | 2,396 | 2,396 | - | - | 194 | 194 | - | - | 196 | 196 | ||||||||||||||||||||||||||||||||||||
|
Income taxes payable - current
|
- | - | 90 | 90 | - | - | 182 | 182 | - | - | 224 | 224 | ||||||||||||||||||||||||||||||||||||
|
Income taxes payable - long-term
|
- | - | 3,890 | 3,890 | - | - | 3,877 | 3,877 | - | - | 3,876 | 3,876 | ||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
- | - | 622 | 622 | - | - | 666 | 666 | - | - | 982 | 982 | ||||||||||||||||||||||||||||||||||||
|
Long-term debt, less current maturities
|
- | - | 9,209 | 9,209 | - | - | 11,453 | 11,453 | - | - | 11,491 | 11,491 | ||||||||||||||||||||||||||||||||||||
|
Total Capital Employed
|
$ | 54,851 | $ | 12,002 | $ | (483 | ) | $ | 66,370 | $ | 52,017 | $ | 13,289 | $ | (813 | ) | $ | 64,493 | $ | 47,202 | $ | 11,861 | $ | (1,767 | ) | $ | 57,296 | |||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Average Capital Employed (3)
|
$ | 51,357 | $ | 12,384 | $ | (1,021 | ) | $ | 62,720 | |||||||||||||||||||||||||||||||||||||||
|
Notes:
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
(1) Operating income excludes restructuring and related credits--see reconciliation per page 5 of this financial information release.
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
(2) Return on average capital employed represents operating income for the 6 month period ending October 31, 2010 times 2 to arrive at an annualized value then divided by average capital employed. Average capital employed does not include cash and cash equivalents, short-term investments, long-term debt, including current maturities, current and noncurrent deferred tax assets and liabilities, current and long-term income taxes payable, and income taxes receivable.
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
(3) Average capital employed computed using the three periods ending May 2,2010, August 1,2010, October 31, 2010.
|
||||||||||||||||||||||||||||||||||||||||||||||||
Page 8 of 8
| CULP, INC. FINANCIAL INFORMATION RELEASE |
|
CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE
|
|
FOR THE SIX MONTHS ENDED OCTOBER 30, 2011 AND OCTOBER 31, 2010
|
| Unaudited |
|
(Amounts in Thousands)
|
|
SIX MONTHS ENDED
|
|||||||||||
|
Amounts
|
|||||||||||
|
October 30,
|
October 31,
|
||||||||||
|
2011
|
2010
|
||||||||||
|
Consolidated Effective GAAP Income Tax Rate
|
(1) | (38.5 | )% | (3.6 | )% | ||||||
|
Reduction of U.S. Valuation Allowance
|
74.9 | % | - | ||||||||
|
Reduction of China Valuation Allowance
|
- | 17.0 | % | ||||||||
|
Fiscal 2012 Non-Cash U.S. Income Tax Expense
|
(17.3 | )% | (1.9 | )% | |||||||
|
Fiscal 2012 Non-Cash Foreign Income Tax Expense
|
(1.1 | )% | 3.9 | % | |||||||
|
Consolidated Adjusted Effective Income Tax Rate
|
(2) | 18.0 | % | 15.4 | % | ||||||
|
(1) Calculated by dividing consolidated income tax expense by consolidated income before income taxes.
|
||||||||
|
|
||||||||
|
(2) Represents income tax expense for our subsidiaries located in Canada, China, and Poland divided by consolidated income before income taxes.
|
||||||||