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

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EX-99.(A) - EXHIBIT 99(A) - CULP INC	a50183378ex99_a.htm
8-K - CULP, INC. 8-K - CULP INC	a50183378.htm

Exhibit 99(b)

Page 1 of 8

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF NET INCOME
FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 29, 2012 AND JANUARY 30, 2011
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)

		THREE MONTHS ENDED

		Amounts										Percent of Sales
		January 29,			January 30,			% Over				January 29,				January 30,
		2012			2011			(Under)				2012				2011

Net sales		$	60,450			51,652			17.0		%		100.0		%		100.0	%
Cost of sales			51,939			43,413			19.6		%		85.9		%		84.0	%
	Gross profit		8,511			8,239			3.3		%		14.1		%		16.0	%

Selling, general and
administrative expenses			5,518			5,129			7.6		%		9.1		%		9.9	%
Restructuring expense			-			7			(100.0	)	%		0.0		%		0.0	%
	Income from operations		2,993			3,103			(3.5	)	%		5.0		%		6.0	%

Interest expense			181			224			(19.2	)	%		0.3		%		0.4	%
Interest income			(148	)		(57	)		159.6		%		(0.2	)	%		(0.1	) %
Other expense			83			28			196.4		%		0.1		%		0.1	%
	Income before income taxes		2,877			2,908			(1.1	)	%		4.8		%		5.6	%

Income taxes*			1,075			483			122.6		%		37.4		%		16.6	%
	Net income	$	1,802			2,425			(25.7	)	%		3.0		%		4.7	%

Net income per share-basic		$	0.14		$	0.19			(26.3	)	%
Net income per share-diluted		$	0.14		$	0.18			(22.2	)	%
Average shares outstanding-basic			12,536			13,005			(3.6	)	%
Average shares outstanding-diluted			12,677			13,228			(4.2	)	%



		NINE MONTHS ENDED

		Amounts										Percent of Sales
		January 29,			January 30,			% Over				January 29,				January 30,
			2012			2011		(Under)					2012				2011

Net sales		$	178,733			156,443			14.2		%		100.0		%		100.0	%
Cost of sales			152,698			130,886			16.7		%		85.4		%		83.7	%
	Gross profit		26,035			25,557			1.9		%		14.6		%		16.3	%

Selling, general and
administrative expenses			16,995			14,544			16.9		%		9.5		%		9.3	%
	Income from operations		9,040			11,013			(17.9	)	%		5.1		%		7.0	%

Interest expense			590			659			(10.5	)	%		0.3		%		0.4	%
Interest income			(387	)		(144	)		168.8		%		(0.2	)	%		(0.1	) %
Other expense			132			111			18.9		%		0.1		%		0.1	%
	Income before income taxes		8,705			10,387			(16.2	)	%		4.9		%		6.6	%

Income taxes*			(1,168	)		213		N.M.					(13.4	)	%		2.1	%
	Net income	$	9,873			10,174			(3.0	)	%		5.5		%		6.5	%

Net income per share-basic		$	0.77		$	0.79			(2.5	)	%
Net income per share-diluted		$	0.76		$	0.77			(1.3	)	%
Average shares outstanding-basic			12,777			12,936			(1.2	)	%
Average shares outstanding-diluted			12,918			13,218			(2.3	)	%


Adjusted Effective Income Tax Rate (1)			18.2	%		15.3	%


* 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.

Page 2 of 8

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED BALANCE SHEETS
JANUARY 29, 2012, JANUARY 30, 2011 AND MAY 1, 2011
Unaudited
(Amounts in Thousands)


	Amounts				Increase
	January 29,		January 30,		(Decrease)						* May 1,
	2012		2011		Dollars			Percent			2011

Current assets
Cash and cash equivalents	$	15,096		17,259		(2,163	)		(12.5	) %		23,181
Short-term investments		8,511		5,518		2,993			54.2	%		7,699
Accounts receivable		22,012		16,909		5,103			30.2	%		20,209
Inventories		32,910		26,407		6,503			24.6	%		28,723
Deferred income taxes		2,767		296		2,471			834.8	%		293
Assets held for sale		45		112		(67	)		(59.8	) %		75
Income taxes receivable		-		407		(407	)		(100.0	) %		79
Other current assets		2,522		1,521		1,001			65.8	%		2,376
Total current assets		83,863		68,429		15,434			22.6	%		82,635

Property, plant & equipment, net		30,285		30,571		(286	)		(0.9	) %		30,296
Goodwill		11,462		11,462		-			0.0	%		11,462
Deferred income taxes		3,903		1,322		2,581			195.2	%		3,606
Other assets		1,944		2,093		(149	)		(7.1	) %		2,052

Total assets	$	131,457		113,877		17,580			15.4	%		130,051



Current liabilities
Current maturities of long-term debt	$	2,400		2,400		-			0.0	%		2,412
Line of credit		875		-		875			100.0	%		-
Accounts payable - trade		23,489		17,121		6,368			37.2	%		24,871
Accounts payable - capital expenditures		15		203		(188	)		(92.6	) %		140
Accrued expenses		7,594		5,971		1,623			27.2	%		7,617
Accrued restructuring		40		71		(31	)		(43.7	) %		44
Deferred income taxes		-		-		-			0.0	%		82
Income taxes payable - current		208		289		(81	)		(28.0	) %		646
Total current liabilities		34,621		26,055		8,566			32.9	%		35,812

Income taxes payable - long-term		4,040		3,934		106			2.7	%		4,167
Deferred income taxes		659		622		37			5.9	%		596
Long-term debt , less current maturities		6,766		9,166		(2,400	)		(26.2	) %		9,135

Total liabilities		46,086		39,777		6,309			15.9	%		49,710

Shareholders' equity		85,371		74,100		11,271			15.2	%		80,341

Total liabilities and
shareholders' equity	$	131,457		113,877		17,580			15.4	%		130,051

Shares outstanding		12,693		13,214		(521	)		(3.9	) %		13,264



* Derived from audited financial statements.

Page 3 of 8

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED JANUARY 29, 2012 AND JANUARY 30, 2011
Unaudited
(Amounts in Thousands)


		NINE MONTHS ENDED

		Amounts
		January 29,			January 30,
		2012			2011

Cash flows from operating activities:
	Net income	$	9,873		$	10,174
	Adjustments to reconcile net income to net cash
	provided by operating activities:
	Depreciation		3,600			3,205
	Amortization of other assets		183			385
	Stock-based compensation		258			280
	Excess tax benefit related to stock-based compensation		(39	)		(285	)
	Deferred income taxes		(2,751	)		(1,219	)
	(Gain) loss on sale of equipment		(157	)		15
	Foreign currency exchange (gains) losses		(196	)		33
	Changes in assets and liabilities:
	Accounts receivable		(1,769	)		3,053
	Inventories		(4,045	)		(291	)
	Other current assets		(159	)		204
	Other assets		(49	)		13
	Accounts payable-trade		(1,709	)		(5,459	)
	Accrued expenses		(1	)		(3,822	)
	Accrued restructuring		(4	)		(253	)
	Income taxes		(305	)		379
	Net cash provided by operating activities		2,730			6,412

Cash flows from investing activities:
	Capital expenditures		(3,715	)		(5,580	)
	Proceeds from the sale of equipment		188			27
	Purchase of short-term investments		(4,821	)		(4,532	)
	Proceeds from the sale of short-term investments		4,096			2,037
	Net cash used in investing activities		(4,252	)		(8,048	)

Cash flows from financing activities:
	Proceeds from lines of credit		6,323			-
	Payments on lines of credit		(5,500	)		-
	Payments on long-term debt		(2,354	)		(129	)
	Payments on vendor-financed capital expenditures		-			(188	)
	Proceeds from common stock issued		237			591
	Common stock shares repurchased		(5,384	)		-
	Debt issance costs		(26	)		(27	)
	Excess tax benefit related to stock-based compensation		39			285
	Net cash (used in) provided by financing activities		(6,665	)		532

Effect of exchange rate changes on cash and cash equivalents			102			68

Decrease in cash and cash equivalents			(8,085	)		(1,036	)

Cash and cash equivalents at beginning of period			23,181			18,295

Cash and cash equivalents at end of period		$	15,096		$	17,259


Free Cash Flow (1)		$	(656	)	$	1,024


(1) Free Cash Flow reconciliation is as follows:
		FY 2012			FY 2011
A)	Net cash provided by operating activities	$	2,730		$	6,412
B)	Minus: Capital Expenditures		(3,715	)		(5,580	)
C)	Add: Proceeds from the sale of equipment		188			27
D)	Minus: Payments on vendor-financed capital expenditures		-			(188	)
E)	Add: Excess tax benefit related to stock-based compensation		39			285
F)	Effects of exchange rate changes on cash and cash equivalents		102			68
		$	(656	)	$	1,024

Page 4 of 8

CULP, INC. FINANCIAL INFORMATION RELEASE
STATEMENTS OF OPERATIONS BY SEGMENT
FOR THE THREE MONTHS ENDED JANUARY 29, 2012 AND JANUARY 30, 2011
(Unaudited)

(Amounts in thousands)




	THREE MONTHS ENDED

	Amounts												Percent of Total Sales
	January 29,			January 30,					% Over				January 29,				January 30,
Net Sales by Segment	2012			2011					(Under)				2012				2011

Mattress Fabrics	$	34,719			27,991					24.0		%		57.4		%		54.2		%
Upholstery Fabrics		25,731			23,661					8.7		%		42.6		%		45.8		%

Net Sales	$	60,450			51,652					17.0		%		100.0		%		100.0		%




Gross Profit by Segment													Gross Profit Margin

Mattress Fabrics	$	5,104			4,596					11.1		%		14.7		%		16.4		%
Upholstery Fabrics		3,407			3,643					(6.5	)	%		13.2		%		15.4		%

Subtotal		8,511			8,239					3.3		%		14.1		%		16.0		%


Selling, General and Administrative expenses by Segment													Percent of Sales

Mattress Fabrics	$	1,970			1,780					10.7		%		5.7		%		6.4		%
Upholstery Fabrics		2,653			2,517					5.4		%		10.3		%		10.6		%
Unallocated Corporate expenses		895			832					7.6		%		1.5		%		1.6		%
Selling, General and Administrative expenses		5,518			5,129					7.6		%		9.1		%		9.9		%



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

Mattress Fabrics	$	3,134			2,816					11.3		%		9.0		%		10.1		%
Upholstery Fabrics		754			1,126					(33.0	)	%		2.9		%		4.8		%
Unallocated corporate expenses		(895	)		(832	)				7.6		%		(1.5	)	%		(1.6	)	%

Subtotal		2,993			3,110					(3.8	)	%		5.0		%		6.0		%

Restructuring and related charges		-			(7	)	(1	)		(100.0	)	%		0.0		%		(0.0	)	%

Operating income		2,993			3,103					(3.5	)	%		5.0		%		6.0		%

Depreciation by Segment

Mattress Fabrics	$	1,081			974					11.0		%
Upholstery Fabrics		133			134					(0.7	)	%
Subtotal	$	1,214			1,108					9.6		%

Notes:

(1)	The $7 restructuring charge represents $17 for lease termination and other exit
	costs offset by a credit of $10 for sales proceeds received on equipment with
	no carrying value.

Page 5 of 8

CULP, INC. FINANCIAL INFORMATION RELEASE

STATEMENTS OF OPERATIONS BY SEGMENT

FOR THE NINE MONTHS ENDED JANUARY 29, 2012 AND JANUARY 30, 2011

(Unaudited)

(Amounts in thousands)

	NINE MONTHS ENDED

	Amounts												Percent of Total Sales
	January 29,					January 30,			% Over				January 29,				January 30,
Net Sales by Segment	2012					2011			(Under)				2012				2011

Mattress Fabrics	$	102,130					87,244			17.1		%		57.1		%		55.8		%
Upholstery Fabrics		76,603					69,199			10.7		%		42.9		%		44.2		%

Net Sales	$	178,733					156,443			14.2		%		100.0		%		100.0		%


Gross Profit by Segment													Gross Profit Margin

Mattress Fabrics	$	16,180					15,616			3.6		%		15.8		%		17.9		%
Upholstery Fabrics		9,932					9,941			(0.1	)	%		13.0		%		14.4		%
Subtotal		26,112					25,557			2.2		%		14.6		%		16.3		%

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

Gross Profit		26,035					25,557			1.9		%		14.6		%		16.3		%


Selling, General and Administrative expenses by Segment													Percent of Sales

Mattress Fabrics	$	6,094					5,480			11.2		%		6.0		%		6.3		%
Upholstery Fabrics		8,186					6,394			28.0		%		10.7		%		9.2		%
Unallocated Corporate expenses		2,715					2,670			1.7		%		1.5		%		1.7		%
Selling, General, and Administrative expenses		16,995					14,544			16.9		%		9.5		%		9.3		%


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

Mattress Fabrics	$	10,087					10,136			(0.5	)	%		9.9		%		11.6		%
Upholstery Fabrics		1,745					3,547			(50.8	)	%		2.3		%		5.1		%
Unallocated corporate expenses		(2,715	)				(2,670	)		1.7		%		(1.5	)	%		(1.7	)	%
Subtotal		9,117					11,013			(17.2	)	%		5.1		%		7.0		%

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

Operating income		9,040					11,013			(17.9	)	%		5.1		%		7.0		%


Return on Capital (2)

Mattress Fabrics		25.1	%				26.0	%
Upholstery Fabrics		17.1	%				38.1	%
Unallocated Corporate		N/A					N/A
Consolidated		17.9	%				23.1	%

Capital Employed (2) (3)

Mattress Fabrics		52,595					53,954			(2.5	) %
Upholstery Fabrics		17,572					12,506			40.5	%
Unallocated Corporate		(125	)				(751	)		N/A
Consolidated		70,042					65,709			6.6	%


Depreciation by Segment

Mattress Fabrics	$	3,163					2,795			13.2	%
Upholstery Fabrics		437					410			6.6	%
Subtotal		3,600					3,205			12.3	%

Notes:

(1)	Our other non-recurring charges represent employee termination benefits associated
	with our Anderson, SC plant facility.

(2)	See pages 6 and 7 of this financial information release for calculations.

(3)	The capital employed balances are as of January 29, 2012 and January 30, 2011.

Page 6 of 8

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

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

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




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

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

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

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


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

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

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

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



	Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total

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

Notes:

(1)	See reconciliation per page 5 of this financial information release.

(2)	Return on average capital employed represents operating income for the nine month period ending January 29, 2012 divided by 3 quarters times 4 quarters to arrive at an annualized value then divided by average capital employed. Average capital employed does not include cash and cash equivalents, short-term investments, long-term debt, including current maturities, line of credit, current and noncurrent deferred tax assets and liabilities, income taxes payable, and income taxes receivable.

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

Page 7 of 8

CULP, INC. FINANCIAL INFORMATION RELEASE

RETURN ON CAPITAL EMPLOYED BY SEGMENT

FOR THE NINE MONTHS ENDED JANUARY 30, 2011

(UNAUDITED)

	Operating Income Nine Months Ended January 30, 2011 (1)			Average Capital Employed (3)			Return on Avg. Capital Employed (2)

Mattress Fabrics	$	10,136		$	52,006			26.0	%
Upholstery Fabrics		3,547			12,415			38.1	%
(less: Unallocated Corporate)		(2,670	)		(954	)		N/A
Total	$	11,013		$	63,467			23.1	%




Average Capital Employed	As of the three Months Ended January 30, 2011												As of the three Months Ended October 31, 2010												As of the three Months Ended August 1, 2010
	Mattress			Upholstery			Unallocated						Mattress			Upholstery			Unallocated						Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total			Fabrics			Fabrics			Corporate			Total			Fabrics			Fabrics			Corporate			Total

Total assets		63,830			22,623			27,424			113,877			65,485			22,277			24,146			111,908			66,919			24,415			21,763			113,097
Total liabilities		(9,876	)		(10,117	)		(19,784	)		(39,777	)		(10,634	)		(10,275	)		(19,495	)		(40,404	)		(14,902	)		(11,126	)		(19,943	)		(45,971	)

Subtotal	$	53,954		$	12,506		$	7,640		$	74,100		$	54,851		$	12,002		$	4,651		$	71,504		$	52,017		$	13,289		$	1,820		$	67,126
Less:
Cash and cash equivalents		-			-			(17,259	)		(17,259	)		-			-			(15,262	)		(15,262	)		-			-			(14,045	)		(14,045	)
Short-term investments		-			-			(5,518	)		(5,518	)		-			-			(4,035	)		(4,035	)		-			-			(4,009	)		(4,009	)
Deferred income taxes - current		-			-			(296	)		(296	)		-			-			(176	)		(176	)		-			-			(138	)		(138	)
Income taxes receivable		-			-			(407	)		(407	)		-			-			(477	)		(477	)		-			-			(568	)		(568	)
Deferred income taxes - non-current		-			-			(1,322	)		(1,322	)		-			-			(1,391	)		(1,391	)		-			-			(245	)		(245	)
Current maturities of long-term debt		-			-			2,400			2,400			-			-			2,396			2,396			-			-			194			194
Income taxes payable - current		-			-			289			289			-			-			90			90			-			-			182			182
Income taxes payable - long-term		-			-			3,934			3,934			-			-			3,890			3,890			-			-			3,877			3,877
Deferred income taxes - non-current		-			-			622			622			-			-			622			622			-			-			666			666
Long-term debt, less current maturities		-			-			9,166			9,166			-			-			9,209			9,209			-			-			11,453			11,453

Total Capital Employed	$	53,954		$	12,506		$	(751	)	$	65,709		$	54,851		$	12,002		$	(483	)	$	66,370		$	52,017		$	13,289		$	(813	)	$	64,493



	As of the three Months Ended May 2, 2010
	Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total

Total assets		61,922			25,420			25,256			112,598
Total liabilities		(14,720	)		(13,559	)		(21,272	)		(49,551	)

Subtotal	$	47,202		$	11,861		$	3,984		$	63,047
Less:
Cash and cash equivalents		-			-			(18,295	)		(18,295	)
Short-term investments								(3,023	)		(3,023	)
Deferred income taxes - current		-			-			(150	)		(150	)
Income taxes receivable		-			-			(728	)		(728	)
Deferred income taxes - non-current		-			-			(324	)		(324	)
Current maturities of long-term debt		-			-			196			196
Income taxes payable - current		-			-			224			224
Income taxes payable - long-term		-			-			3,876			3,876
Deferred income taxes - non-current		-			-			982			982
Long-term debt, less current maturities		-			-			11,491			11,491

Total Capital Employed	$	47,202		$	11,861		$	(1,767	)	$	57,296


	Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total

Average Capital Employed (3)	$	52,006		$	12,415		$	(954	)	$	63,467

Notes:

(1)	Operating income excludes restructuring and related charges--see reconciliation per page 5 of this financial information release.

(2)	Return on average capital employed represents operating income for the 9 month period ending January 30, 2011 divided by 3 quarters times 4 quarters to arrive at an annualized value then divided by average capital employed. Average capital employed does not include cash and cash equivalents, short-term investments, long-term debt, including current maturities, 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 four periods ending May 2,2010, August 1,2010, October 31, 2010, and January 30, 2011.

Page 8 of 8

CULP, INC. FINANCIAL INFORMATION RELEASE

CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE

FOR THE NINE MONTHS ENDED JANUARY 29, 2012 AND JANUARY 30, 2011

Unaudited

(Amounts in Thousands)


		NINE MONTHS ENDED

		Amounts
		January 29,				January 30,
		2012				2011


Consolidated Effective GAAP Income Tax Rate	(1)		(13.4	)	%		2.1		%

Reduction of U.S. Valuation Allowance			50.2		%		-

Reduction of China Valuation Allowance			-				12.2		%

Fiscal 2012 Non-Cash U.S. Income Tax Expense			(18.1	)	%		(2.0	)	%

Fiscal 2012 Non-Cash Foreign Income Tax Expense			(0.5	)	%		3.0		%

Consolidated Adjusted Effective Income Tax Rate	(2)		18.2		%		15.3		%

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

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

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