Attached files
| file | filename |
|---|---|
| 8-K - CULP, INC. 8-K - CULP INC | a50756837.htm |
| EX-99.(A) - EXHIBIT 99(A) - CULP INC | a50756837ex99_a.htm |
Exhibit 99(b)
Page 1 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF NET INCOME
|
||||||||||||||||||||
|
FOR THREE MONTHS ENDED OCTOBER 27, 2013 AND OCTOBER 28, 2012
|
||||||||||||||||||||
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(UNAUDITED)
|
||||||||||||||||||||
|
(Amounts in Thousands, Except for Per Share Data)
|
||||||||||||||||||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
October 27,
|
October 28,
|
% Over
|
October 27,
|
October 28,
|
||||||||||||||||
|
2013
|
2012
|
(Under)
|
2013
|
2012
|
||||||||||||||||
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Net sales
|
$ | 70,589 | 65,560 | 7.7 | % | 100.0 | % | 100.0 | % | |||||||||||
|
Cost of sales
|
58,354 | 53,683 | 8.7 | % | 82.7 | % | 81.9 | % | ||||||||||||
|
Gross profit
|
12,235 | 11,877 | 3.0 | % | 17.3 | % | 18.1 | % | ||||||||||||
|
Selling, general and
|
||||||||||||||||||||
|
administrative expenses
|
7,200 | 7,209 | (0.1 | ) % | 10.2 | % | 11.0 | % | ||||||||||||
|
Income from operations
|
5,035 | 4,668 | 7.9 | % | 7.1 | % | 7.1 | % | ||||||||||||
|
Interest expense
|
99 | 156 | (36.5 | ) % | 0.1 | % | 0.2 | % | ||||||||||||
|
Interest income
|
(102 | ) | (96 | ) | 6.3 | % | (0.1 | ) % | (0.1 | ) % | ||||||||||
|
Other expense
|
224 | 76 | 194.7 | % | 0.3 | % | 0.1 | % | ||||||||||||
|
Income before income taxes
|
4,814 | 4,532 | 6.2 | % | 6.8 | % | 6.9 | % | ||||||||||||
|
Income taxes*
|
1,718 | (3,736 | ) |
N.M.
|
35.7 | % | (82.4 | ) % | ||||||||||||
|
Net income
|
$ | 3,096 | 8,268 | (62.6 | ) % | 4.4 | % | 12.6 | % | |||||||||||
|
Net income per share-basic
|
$ | 0.25 | $ | 0.68 | (63.2 | ) % | ||||||||||||||
|
Net income per share-diluted
|
$ | 0.25 | $ | 0.67 | (62.7 | ) % | ||||||||||||||
|
Average shares outstanding-basic
|
12,183 | 12,191 | (0.1 | ) % | ||||||||||||||||
|
Average shares outstanding-diluted
|
12,389 | 12,348 | 0.3 | % | ||||||||||||||||
|
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)
|
||||||||||||||||||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
October 27,
|
October 28,
|
% Over
|
October 27,
|
October 28,
|
||||||||||||||||
|
2013
|
2012
|
(Under)
|
2013
|
2012
|
||||||||||||||||
|
Income before income taxes (see above)
|
$ | 4,814 | 4,532 | 6.2 | % | 6.8 | % | 6.9 | % | |||||||||||
|
Adjusted Income taxes (2)*
|
751 | 680 | 10.4 | % | 15.6 | % | 15.0 | % | ||||||||||||
|
Adjusted net income
|
4,063 | 3,852 | 5.5 | % | 5.8 | % | 5.9 | % | ||||||||||||
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Adjusted net income per share-basic
|
$ | 0.33 | $ | 0.32 | 3.1 | % | ||||||||||||||
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Adjusted net income per share-diluted
|
$ | 0.33 | $ | 0.31 | 6.5 | % | ||||||||||||||
|
Average shares outstanding-basic
|
12,183 | 12,191 | (0.1 | ) % | ||||||||||||||||
|
Average shares outstanding-diluted
|
12,389 | 12,348 | 0.3 | % | ||||||||||||||||
|
(1) Culp, Inc. currently does not incur cash income tax expense in the US due to its $50.7 million in net operating loss carryforwards. Therefore,
|
|
adjusted net income is calculated using only income tax expense for our subsidiaries located in Canada and China. See reconciliation on
|
|
page 10 of 10.
|
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(2) Represents estimated income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 10 of 10.
|
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* Percent of sales column for income taxes is calculated as a % of income before income taxes.
|
Page 2 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF NET INCOME
|
||||||||||||||||||||
|
FOR THE SIX MONTHS ENDED OCTOBER 27, 2013 AND OCTOBER 28, 2012
|
||||||||||||||||||||
|
(UNAUDITED)
|
||||||||||||||||||||
|
(Amounts in Thousands, Except for Per Share Data)
|
||||||||||||||||||||
|
SIX MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
October 27,
|
October 28,
|
% Over
|
October 27,
|
October 28,
|
||||||||||||||||
|
2013
|
2012
|
(Under)
|
2013
|
2012
|
||||||||||||||||
|
Net sales
|
$ | 140,730 | 134,744 | 4.4 | % | 100.0 | % | 100.0 | % | |||||||||||
|
Cost of sales
|
115,422 | 109,746 | 5.2 | % | 82.0 | % | 81.4 | % | ||||||||||||
|
Gross profit
|
25,308 | 24,998 | 1.2 | % | 18.0 | % | 18.6 | % | ||||||||||||
|
Selling, general and
|
||||||||||||||||||||
|
administrative expenses
|
14,299 | 14,850 | (3.7 | ) % | 10.2 | % | 11.0 | % | ||||||||||||
|
Income from operations
|
11,009 | 10,148 | 8.5 | % | 7.8 | % | 7.5 | % | ||||||||||||
|
Interest expense
|
239 | 346 | (30.9 | ) % | 0.2 | % | 0.3 | % | ||||||||||||
|
Interest income
|
(195 | ) | (222 | ) | (12.2 | ) % | (0.1 | ) % | (0.2 | ) % | ||||||||||
|
Other expense
|
616 | 121 | 409.1 | % | 0.4 | % | 0.1 | % | ||||||||||||
|
Income before income taxes
|
10,349 | 9,903 | 4.5 | % | 7.4 | % | 7.3 | % | ||||||||||||
|
Income taxes*
|
4,023 | (1,889 | ) |
N.M.
|
38.9 | % | (19.1 | ) % | ||||||||||||
|
Net income
|
$ | 6,326 | 11,792 | (46.4 | ) % | 4.5 | % | 8.8 | % | |||||||||||
|
Net income per share-basic
|
$ | 0.52 | $ | 0.95 | (45.3 | ) % | ||||||||||||||
|
Net income per share-diluted
|
$ | 0.51 | $ | 0.94 | (45.7 | ) % | ||||||||||||||
|
Average shares outstanding-basic
|
12,165 | 12,371 | (1.7 | ) % | ||||||||||||||||
|
Average shares outstanding-diluted
|
12,391 | 12,541 | (1.2 | ) % | ||||||||||||||||
|
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)
|
||||||||||||||||||||
|
SIX MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
October 27,
|
October 28,
|
% Over
|
October 27,
|
October 28,
|
||||||||||||||||
|
2013
|
2012
|
(Under)
|
2013
|
2012
|
||||||||||||||||
|
Income before income taxes (see above)
|
$ | 10,349 | 9,903 | 4.5 | % | 7.4 | % | 7.3 | % | |||||||||||
|
Adjusted Income taxes (2)*
|
1,614 | 1,485 | 8.7 | % | 15.6 | % | 15.0 | % | ||||||||||||
|
Adjusted net income
|
8,735 | 8,418 | 3.8 | % | 6.2 | % | 6.2 | % | ||||||||||||
|
Adjusted net income per share-basic
|
$ | 0.72 | $ | 0.68 | 5.9 | % | ||||||||||||||
|
Adjusted net income per share-diluted
|
$ | 0.70 | $ | 0.67 | 4.5 | % | ||||||||||||||
|
Average shares outstanding-basic
|
12,165 | 12,371 | (1.7 | ) % | ||||||||||||||||
|
Average shares outstanding-diluted
|
12,391 | 12,541 | (1.2 | ) % | ||||||||||||||||
|
(1) Culp, Inc. currently does not incur cash income tax expense in the US due to its $50.7 million in net operating loss carryforwards. Therefore,
|
|
adjusted net income is calculated using only income tax expense for our subsidiaries located in Canada and China. See reconciliation on
|
|
page 10 of 10.
|
|
(2) Represents estimated income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 10 of 10.
|
|
* Percent of sales column for income taxes is calculated as a % of income before income taxes.
|
Page 3 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
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CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||||||
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OCTOBER 27, 2013, OCTOBER 28, 2012 AND APRIL 28, 2013
|
||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||
|
(Amounts in Thousands)
|
||||||||||||||||||||
|
Amounts
|
Increase
|
|||||||||||||||||||
|
October 27,
|
October 28,
|
(Decrease)
|
* April 28,
|
|||||||||||||||||
|
2013
|
2012
|
Dollars
|
Percent
|
2013
|
||||||||||||||||
|
Current assets
|
||||||||||||||||||||
|
Cash and cash equivalents
|
$ | 24,267 | 23,464 | 803 | 3.4 | % | 23,530 | |||||||||||||
|
Short-term investments
|
6,220 | 5,241 | 979 | 18.7 | % | 5,286 | ||||||||||||||
|
Accounts receivable
|
24,937 | 20,678 | 4,259 | 20.6 | % | 23,392 | ||||||||||||||
|
Inventories
|
44,882 | 38,261 | 6,621 | 17.3 | % | 38,418 | ||||||||||||||
|
Deferred income taxes
|
7,745 | 4,470 | 3,275 | 73.3 | % | 7,709 | ||||||||||||||
|
Income taxes receivable
|
- | - | - | 0.0 | % | 318 | ||||||||||||||
|
Other current assets
|
2,550 | 1,640 | 910 | 55.5 | % | 2,093 | ||||||||||||||
|
Total current assets
|
110,601 | 93,754 | 16,847 | 18.0 | % | 100,746 | ||||||||||||||
|
Property, plant & equipment, net
|
30,559 | 30,621 | (62 | ) | (0.2 | ) % | 30,594 | |||||||||||||
|
Goodwill
|
11,462 | 11,462 | - | 0.0 | % | 11,462 | ||||||||||||||
|
Deferred income taxes
|
661 | 4,738 | (4,077 | ) | (86.0 | ) % | 753 | |||||||||||||
|
Other assets
|
2,959 | 1,868 | 1,091 | 58.4 | % | 1,151 | ||||||||||||||
|
Total assets
|
$ | 156,242 | 142,443 | 13,799 | 9.7 | % | 144,706 | |||||||||||||
|
Current liabilities
|
||||||||||||||||||||
|
Current maturities of long-term debt
|
$ | 2,200 | 2,401 | (201 | ) | (8.4 | ) % | 2,200 | ||||||||||||
|
Line of credit
|
- | 875 | (875 | ) | (100.0 | ) % | 561 | |||||||||||||
|
Accounts payable - trade
|
28,543 | 23,219 | 5,324 | 22.9 | % | 22,357 | ||||||||||||||
|
Accounts payable - capital expenditures
|
66 | 104 | (38 | ) | (36.5 | ) % | 225 | |||||||||||||
|
Accrued expenses
|
11,672 | 10,611 | 1,061 | 10.0 | % | 11,829 | ||||||||||||||
|
Income taxes payable - current
|
304 | 385 | (81 | ) | (21.0 | ) % | 285 | |||||||||||||
|
Total current liabilities
|
42,785 | 37,595 | 5,190 | 13.8 | % | 37,457 | ||||||||||||||
|
Income taxes payable - long-term
|
4,141 | 4,188 | (47 | ) | (1.1 | ) % | 4,191 | |||||||||||||
|
Deferred income taxes
|
5,016 | 856 | 4,160 | 486.0 | % | 3,075 | ||||||||||||||
|
Line of credit
|
585 | - | 585 | 100.0 | % | - | ||||||||||||||
|
Long-term debt , less current maturities
|
2,200 | 4,416 | (2,216 | ) | (50.2 | ) % | 4,400 | |||||||||||||
|
Total liabilities
|
54,727 | 47,055 | 7,672 | 16.3 | % | 49,123 | ||||||||||||||
|
Shareholders' equity
|
101,515 | 95,388 | 6,127 | 6.4 | % | 95,583 | ||||||||||||||
|
Total liabilities and
|
||||||||||||||||||||
|
shareholders' equity
|
$ | 156,242 | 142,443 | 13,799 | 9.7 | % | 144,706 | |||||||||||||
|
Shares outstanding
|
12,250 | 12,209 | 41 | 0.3 | % | 12,225 | ||||||||||||||
|
* Derived from audited financial statements.
|
||||||||||||||||||||
Page 4 of 10
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CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
|
FOR THE SIX MONTHS ENDED OCTOBER 27, 2013 AND OCTOBER 28, 2012
|
||||||||
|
Unaudited
|
||||||||
|
(Amounts in Thousands)
|
||||||||
|
SIX MONTHS ENDED
|
||||||||
|
Amounts
|
||||||||
|
October 27,
|
October 28,
|
|||||||
|
2013
|
2012
|
|||||||
|
Cash flows from operating activities:
|
|
|||||||
|
Net income
|
$ | 6,326 | $ | 11,792 | ||||
|
Adjustments to reconcile net income to net cash
|
||||||||
|
provided by operating activities:
|
||||||||
|
Depreciation
|
2,636 | 2,539 | ||||||
|
Amortization of other assets
|
81 | 119 | ||||||
|
Stock-based compensation
|
376 | 197 | ||||||
|
Excess tax benefit related to stock-based compensation
|
(143 | ) | (60 | ) | ||||
|
Deferred income taxes
|
2,140 | (3,325 | ) | |||||
|
Gain on sale of equipment
|
(74 | ) | - | |||||
|
Foreign currency exchange losses (gains)
|
203 | (66 | ) | |||||
|
Changes in assets and liabilities, net of effects of acquisition of assets:
|
||||||||
|
Accounts receivable
|
(1,419 | ) | 4,353 | |||||
|
Inventories
|
(6,331 | ) | (1,882 | ) | ||||
|
Other current assets
|
(437 | ) | 373 | |||||
|
Other assets
|
(47 | ) | (80 | ) | ||||
|
Accounts payable-trade
|
5,923 | (7,397 | ) | |||||
|
Accrued expenses
|
(158 | ) | 1,310 | |||||
|
Accrued restructuring
|
- | (40 | ) | |||||
|
Income taxes
|
367 | (183 | ) | |||||
|
Net cash provided by operating activities
|
9,443 | 7,650 | ||||||
|
Cash flows from investing activities:
|
||||||||
|
Capital expenditures
|
(1,900 | ) | (1,946 | ) | ||||
|
Net cash paid for acquisition of assets
|
(2,640 | ) | - | |||||
|
Proceeds from the sale of equipment
|
113 | - | ||||||
|
Payments on life insurance policies
|
(30 | ) | - | |||||
|
Purchase of short-term investments
|
(1,047 | ) | (54 | ) | ||||
|
Proceeds from the sale of short-term investments
|
- | 795 | ||||||
|
Net cash used in investing activities
|
(5,504 | ) | (1,205 | ) | ||||
|
Cash flows from financing activities:
|
||||||||
|
Proceeds from lines of credit
|
- | 1,000 | ||||||
|
Payments on lines of credit
|
- | (1,000 | ) | |||||
|
Payments on long-term debt
|
(2,200 | ) | (2,300 | ) | ||||
|
Proceeds from common stock issued
|
194 | 64 | ||||||
|
Common stock shares repurchased
|
- | (5,022 | ) | |||||
|
Dividends paid
|
(979 | ) | (747 | ) | ||||
|
Debt issance costs
|
(62 | ) | - | |||||
|
Excess tax benefit related to stock-based compensation
|
143 | 60 | ||||||
|
Net cash used in financing activities
|
(2,904 | ) | (7,945 | ) | ||||
|
Effect of exchange rate changes on cash and cash equivalents
|
(298 | ) | (59 | ) | ||||
|
Increase (decrease) in cash and cash equivalents
|
737 | (1,559 | ) | |||||
|
Cash and cash equivalents at beginning of period
|
23,530 | 25,023 | ||||||
|
Cash and cash equivalents at end of period
|
$ | 24,267 | $ | 23,464 | ||||
|
Free Cash Flow (1)
|
$ | 7,471 | $ | 5,705 | ||||
|
(1) Free Cash Flow reconciliation is as follows:
|
||||||||||
|
FY 2014
|
FY 2013
|
|||||||||
| A) |
Net cash provided by operating activities
|
$ | 9,443 | $ | 7,650 | |||||
| B) |
Minus: Capital Expenditures
|
(1,900 | ) | (1,946 | ) | |||||
| C) |
Add: Proceeds from the sale of equipment
|
113 | - | |||||||
| D) |
Minus: Payments on life insurance policies
|
(30 | ) | - | ||||||
| E) |
Add: Excess tax benefit related to stock-based compensation
|
143 | 60 | |||||||
| F) |
Effect of exchange rate changes on cash and cash equivalents
|
(298 | ) | (59 | ) | |||||
| $ | 7,471 | $ | 5,705 | |||||||
Page 5 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
STATEMENTS OF OPERATIONS BY SEGMENT
|
||||||||||||||||||||
|
FOR THE THREE MONTHS ENDED OCTOBER 27, 2013 AND OCTOBER 28, 2012
|
||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||
|
(Amounts in thousands)
|
||||||||||||||||||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Total Sales
|
|||||||||||||||||||
|
October 27,
|
October 28,
|
% Over
|
October 27,
|
October 28,
|
||||||||||||||||
|
Net Sales by Segment
|
2013
|
2012
|
(Under)
|
2013
|
2012
|
|||||||||||||||
|
Mattress Fabrics
|
$ | 40,331 | 39,697 | 1.6 | % | 57.1 | % | 60.6 | % | |||||||||||
|
Upholstery Fabrics
|
30,258 | 25,863 | 17.0 | % | 42.9 | % | 39.4 | % | ||||||||||||
|
Net Sales
|
$ | 70,589 | 65,560 | 7.7 | % | 100.0 | % | 100.0 | % | |||||||||||
|
Gross Profit by Segment
|
Gross Profit Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$ | 7,322 | 7,539 | (2.9 | ) % | 18.2 | % | 19.0 | % | |||||||||||
|
Upholstery Fabrics
|
4,913 | 4,338 | 13.3 | % | 16.2 | % | 16.8 | % | ||||||||||||
|
Gross Profit
|
$ | 12,235 | 11,877 | 3.0 | % | 17.3 | % | 18.1 | % | |||||||||||
|
Selling, General and Administrative Expenses by Segment
|
Percent of Sales
|
|||||||||||||||||||
|
Mattress Fabrics
|
$ | 2,620 | 2,424 | 8.1 | % | 6.5 | % | 6.1 | % | |||||||||||
|
Upholstery Fabrics
|
3,170 | 3,157 | 0.4 | % | 10.5 | % | 12.2 | % | ||||||||||||
|
Unallocated Corporate expenses
|
1,410 | 1,628 | (13.4 | ) % | 2.0 | % | 2.5 | % | ||||||||||||
|
Selling, General and Administrative Expenses
|
$ | 7,200 | 7,209 | (0.1 | ) % | 10.2 | % | 11.0 | % | |||||||||||
|
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$ | 4,702 | 5,115 | (8.1 | ) % | 11.7 | % | 12.9 | % | |||||||||||
|
Upholstery Fabrics
|
1,743 | 1,181 | 47.6 | % | 5.8 | % | 4.6 | % | ||||||||||||
|
Unallocated corporate expenses
|
(1,410 | ) | (1,628 | ) | (13.4 | ) % | (2.0 | ) % | (2.5 | ) % | ||||||||||
|
Operating income
|
$ | 5,035 | 4,668 | 7.9 | % | 7.1 | % | 7.1 | % | |||||||||||
|
Depreciation by Segment
|
||||||||||||||||||||
|
Mattress Fabrics
|
$ | 1,181 | 1,127 | 4.8 | % | |||||||||||||||
|
Upholstery Fabrics
|
150 | 158 | (5.1 | ) % | ||||||||||||||||
|
Depreciation
|
$ | 1,331 | 1,285 | 3.6 | % | |||||||||||||||
Page 6 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
STATEMENTS OF OPERATIONS BY SEGMENT
|
||||||||||||||||||||
|
FOR THE SIX MONTHS ENDED OCTOBER 27, 2013 AND OCTOBER 28, 2012
|
||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||
|
(Amounts in thousands)
|
||||||||||||||||||||
|
SIX MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Total Sales
|
|||||||||||||||||||
|
October 27,
|
October 28,
|
% Over
|
October 27,
|
October 28,
|
||||||||||||||||
|
Net Sales by Segment
|
2013
|
2012
|
(Under)
|
2013
|
2012
|
|||||||||||||||
|
Mattress Fabrics
|
$ | 78,494 | 77,662 | 1.1 | % | 55.8 | % | 57.6 | % | |||||||||||
|
Upholstery Fabrics
|
62,236 | 57,082 | 9.0 | % | 44.2 | % | 42.4 | % | ||||||||||||
|
Net Sales
|
$ | 140,730 | 134,744 | 4.4 | % | 100.0 | % | 100.0 | % | |||||||||||
|
Gross Profit by Segment
|
Gross Profit Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$ | 14,713 | 15,161 | (3.0 | ) % | 18.7 | % | 19.5 | % | |||||||||||
|
Upholstery Fabrics
|
10,595 | 9,837 | 7.7 | % | 17.0 | % | 17.2 | % | ||||||||||||
|
Gross Profit
|
$ | 25,308 | 24,998 | 1.2 | % | 18.0 | % | 18.6 | % | |||||||||||
|
Selling, General and Administrative Expenses by Segment
|
Percent of Sales | |||||||||||||||||||
|
Mattress Fabrics
|
$ | 4,994 | 4,814 | 3.7 | % | 6.4 | % | 6.2 | % | |||||||||||
|
Upholstery Fabrics
|
6,436 | 6,498 | (1.0 | ) % | 10.3 | % | 11.4 | % | ||||||||||||
|
Unallocated Corporate expenses
|
2,869 | 3,538 | (18.9 | ) % | 2.0 | % | 2.6 | % | ||||||||||||
|
Selling, General, and Administrative Expenses
|
$ | 14,299 | 14,850 | (3.7 | ) % | 10.2 | % | 11.0 | % | |||||||||||
|
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$ | 9,719 | 10,347 | (6.1 | ) % | 12.4 | % | 13.3 | % | |||||||||||
|
Upholstery Fabrics
|
4,159 | 3,339 | 24.6 | % | 6.7 | % | 5.8 | % | ||||||||||||
|
Unallocated corporate expenses
|
(2,869 | ) | (3,538 | ) | (18.9 | ) % | (2.0 | ) % | (2.6 | ) % | ||||||||||
|
Operating income
|
$ | 11,009 | 10,148 | 8.5 | % | 7.8 | % | 7.5 | % | |||||||||||
|
Return on Capital (1)
|
||||||||||||||||||||
|
Mattress Fabrics
|
33.0 | % | 37.4 | % | ||||||||||||||||
|
Upholstery Fabrics
|
43.2 | % | 39.9 | % | ||||||||||||||||
|
Unallocated Corporate
|
N/A | N/A | ||||||||||||||||||
|
Consolidated
|
29.0 | % | 28.5 | % | ||||||||||||||||
|
Capital Employed (2)
|
||||||||||||||||||||
|
Mattress Fabrics
|
58,944 | 55,102 | 7.0 | % | ||||||||||||||||
|
Upholstery Fabrics
|
20,300 | 16,728 | 21.4 | % | ||||||||||||||||
|
Unallocated Corporate
|
(2,176 | ) | (1,234 | ) | N/A | |||||||||||||||
|
Consolidated
|
77,068 | 70,596 | 9.2 | % | ||||||||||||||||
|
Depreciation by Segment
|
||||||||||||||||||||
|
Mattress Fabrics
|
$ | 2,331 | 2,219 | 5.0 | % | |||||||||||||||
|
Upholstery Fabrics
|
305 | 320 | (4.7 | ) % | ||||||||||||||||
|
Depreciation
|
$ | 2,636 | 2,539 | 3.8 | % | |||||||||||||||
|
Notes:
|
||||||||||||||||||||
|
(1) See pages 8 and 9 of this financial information release for calculations.
|
||||||||||||||||||||
|
(2) The capital employed balances are as of October 27, 2013 and October 28, 2012.
|
Page 7 of 10
| CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA | ||||||||||||||||||||
| FOR THE TWELVE MONTHS ENDED OCTOBER 27, 2013 AND OCTOBER 28, 2012 | ||||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||||
| (AMOUNTS IN THOUSANDS) | ||||||||||||||||||||
|
Quarter Ended
|
||||||||||||||||||||
|
Trailing 12
|
||||||||||||||||||||
|
Months
|
||||||||||||||||||||
|
1/27/13
|
4/28/2013
|
7/28/2013
|
10/27/2013
|
10/27/2013
|
||||||||||||||||
|
Net income
|
$ | 2,823 | $ | 3,702 | $ | 3,230 | $ | 3,096 | $ | 12,851 | ||||||||||
|
Income taxes
|
1,700 | 2,161 | 2,305 | 1,718 | 7,884 | |||||||||||||||
|
Interest expense (income), net
|
40 | 50 | 48 | (3 | ) | 135 | ||||||||||||||
|
Depreciation and amortization expense
|
1,338 | 1,354 | 1,344 | 1,373 | 5,409 | |||||||||||||||
|
Stock based compensation
|
111 | 254 | 152 | 224 | 741 | |||||||||||||||
|
Adjusted EBITDA
|
$ | 6,012 | $ | 7,521 | $ | 7,079 | $ | 6,408 | $ | 27,020 | ||||||||||
|
Quarter Ended
|
||||||||||||||||||||
|
Trailing 12
|
||||||||||||||||||||
|
Months
|
||||||||||||||||||||
|
1/29/12
|
4/29/2012
|
7/29/2012
|
10/28/2012
|
10/28/2012
|
||||||||||||||||
|
Net income
|
$ | 1,802 | $ | 3,423 | $ | 3,524 | $ | 8,268 | $ | 17,017 | ||||||||||
|
Income taxes
|
1,075 | 2,071 | 1,848 | (3,736 | ) | 1,258 | ||||||||||||||
|
Interest expense, net
|
33 | 69 | 63 | 60 | 225 | |||||||||||||||
|
Depreciation and amortization expense
|
1,270 | 1,325 | 1,314 | 1,344 | 5,253 | |||||||||||||||
|
Stock based compensation
|
80 | 91 | 70 | 127 | 368 | |||||||||||||||
|
Adjusted EBITDA
|
$ | 4,260 | $ | 6,979 | $ | 6,819 | $ | 6,063 | $ | 24,121 | ||||||||||
Page 8 of 10
| CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||||||
| RETURN ON CAPITAL EMPLOYED BY SEGMENT | |||||||||||||
| FOR THE SIX MONTHS ENDED OCTOBER 27, 2013 | |||||||||||||
| (Amounts in Thousands) | |||||||||||||
| (Unaudited) | |||||||||||||
|
Operating Income
|
|||||||||||||
|
Six Months
|
Average
|
Return on
|
|||||||||||
|
Ended
|
Capital
|
Avg. Capital
|
|||||||||||
|
October 27, 2013 (1)
|
Employed (3)
|
Employed (2)
|
|||||||||||
|
Mattress Fabrics
|
$ | 9,719 | $ | 58,828 | 33.0 | % | |||||||
|
Upholstery Fabrics
|
4,159 | 19,274 | 43.2 | % | |||||||||
|
(less: Unallocated Corporate)
|
(2,869 | ) | (2,083 | ) | N/A | ||||||||
|
Total
|
$ | 11,009 | $ | 76,019 | 29.0 | % | |||||||
|
Average Capital Employed
|
As of the three Months Ended October 27, 2013
|
As of the three Months Ended July 28, 2013
|
As of the three Months Ended April 28, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||
| Mattress |
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||
|
Total assets
|
79,444 | 35,881 | 40,917 | 156,242 | 78,217 | 34,381 | 38,503 | 151,101 | 73,954 | 30,995 | 39,757 | 144,706 | ||||||||||||||||||||||||||||||||||||
|
Total liabilities
|
(20,500 | ) | (15,581 | ) | (18,646 | ) | (54,727 | ) | (18,627 | ) | (14,172 | ) | (19,717 | ) | (52,516 | ) | (16,004 | ) | (13,682 | ) | (19,437 | ) | (49,123 | ) | ||||||||||||||||||||||||
|
Subtotal
|
$ | 58,944 | $ | 20,300 | $ | 22,271 | $ | 101,515 | $ | 59,590 | $ | 20,209 | $ | 18,786 | $ | 98,585 | $ | 57,950 | $ | 17,313 | $ | 20,320 | $ | 95,583 | ||||||||||||||||||||||||
|
Less:
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Cash and cash equivalents
|
- | - | (24,267 | ) | (24,267 | ) | - | - | (21,423 | ) | (21,423 | ) | - | - | (23,530 | ) | (23,530 | ) | ||||||||||||||||||||||||||||||
|
Short-term investments
|
- | - | (6,220 | ) | (6,220 | ) | - | - | (6,174 | ) | (6,174 | ) | - | - | (5,286 | ) | (5,286 | ) | ||||||||||||||||||||||||||||||
|
Income taxes receivable
|
- | - | - | - | - | - | (292 | ) | (292 | ) | - | - | (318 | ) | (318 | ) | ||||||||||||||||||||||||||||||||
|
Deferred income taxes - current
|
- | - | (7,745 | ) | (7,745 | ) | - | - | (7,747 | ) | (7,747 | ) | - | - | (7,709 | ) | (7,709 | ) | ||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
- | - | (661 | ) | (661 | ) | - | - | (651 | ) | (651 | ) | - | - | (753 | ) | (753 | ) | ||||||||||||||||||||||||||||||
|
Current maturities of long-term debt
|
- | - | 2,200 | 2,200 | - | - | 2,200 | 2,200 | - | - | 2,200 | 2,200 | ||||||||||||||||||||||||||||||||||||
|
Line of credit
|
- | - | 585 | 585 | - | - | 560 | 560 | 561 | 561 | ||||||||||||||||||||||||||||||||||||||
|
Income taxes payable - current
|
- | - | 304 | 304 | - | - | 320 | 320 | - | - | 285 | 285 | ||||||||||||||||||||||||||||||||||||
|
Income taxes payable - long-term
|
- | - | 4,141 | 4,141 | - | - | 4,176 | 4,176 | - | - | 4,191 | 4,191 | ||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
- | - | 5,016 | 5,016 | - | - | 4,335 | 4,335 | - | - | 3,075 | 3,075 | ||||||||||||||||||||||||||||||||||||
|
Long-term debt, less current maturities
|
- | - | 2,200 | 2,200 | - | - | 4,400 | 4,400 | - | - | 4,400 | 4,400 | ||||||||||||||||||||||||||||||||||||
|
Total Capital Employed
|
$ | 58,944 | $ | 20,300 | $ | (2,176 | ) | $ | 77,068 | $ | 59,590 | $ | 20,209 | $ | (1,510 | ) | $ | 78,289 | $ | 57,950 | $ | 17,313 | $ | (2,564 | ) | $ | 72,699 | |||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
|||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
||||||||||||||
|
Average Capital Employed (3)
|
$ | 58,828 | $ | 19,274 | $ | (2,083 | ) | $ | 76,019 | ||||||||
|
Notes:
|
|
(1) See reconciliation per page 6 of this financial information release.
|
|
(2) Return on average capital employed represents operating income for the six month period ending October 27, 2013 times two 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, and
|
|
income taxes payable and receivable.
|
|
(3) Average capital employed was computed using the three periods ending October 27, 2013, July 28, 2013 and April 28, 2013.
|
Page 9 of 10
| CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||||||
| RETURN ON CAPITAL EMPLOYED BY SEGMENT | |||||||||||||
| FOR THE SIX MONTHS ENDED OCTOBER 28, 2012 | |||||||||||||
| (Amounts in Thousands) | |||||||||||||
| (Unaudited) | |||||||||||||
|
Operating Income
|
|||||||||||||
|
Six Months
|
Average
|
Return on
|
|||||||||||
|
Ended
|
Capital
|
Avg. Capital
|
|||||||||||
|
October 28, 2012 (1)
|
Employed (3)
|
Employed (2)
|
|||||||||||
|
Mattress Fabrics
|
$ | 10,347 | $ | 55,272 | 37.4 | % | |||||||
|
Upholstery Fabrics
|
3,339 | 16,738 | 39.9 | % | |||||||||
|
(less: Unallocated Corporate)
|
(3,538 | ) | (789 | ) | N/A | ||||||||
|
Total
|
$ | 10,148 | $ | 71,220 | 28.5 | % | |||||||
|
Average Capital Employed
|
As of the three Months Ended October 28, 2012
|
As of the three Months Ended July 29, 2012
|
As of the three Months Ended April 29, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||
|
Total assets
|
74,342 | 27,240 | 40,861 | 142,443 | 78,098 | 29,973 | 35,089 | 143,160 | 71,563 | 33,641 | 39,512 | 144,716 | ||||||||||||||||||||||||||||||||||||
|
Total liabilities
|
(19,240 | ) | (10,512 | ) | (17,303 | ) | (47,055 | ) | (21,295 | ) | (11,006 | ) | (19,028 | ) | (51,329 | ) | (17,653 | ) | (19,123 | ) | (18,940 | ) | (55,716 | ) | ||||||||||||||||||||||||
|
Subtotal
|
$ | 55,102 | $ | 16,728 | $ | 23,558 | $ | 95,388 | $ | 56,803 | $ | 18,967 | $ | 16,061 | $ | 91,831 | $ | 53,910 | $ | 14,518 | $ | 20,572 | $ | 89,000 | ||||||||||||||||||||||||
|
Less:
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Cash and cash equivalents
|
- | - | (23,464 | ) | (23,464 | ) | - | - | (21,889 | ) | (21,889 | ) | - | - | (25,023 | ) | (25,023 | ) | ||||||||||||||||||||||||||||||
|
Short-term investments
|
- | - | (5,241 | ) | (5,241 | ) | - | - | (5,200 | ) | (5,200 | ) | - | - | (5,941 | ) | (5,941 | ) | ||||||||||||||||||||||||||||||
|
Deferred income taxes - current
|
- | - | (4,470 | ) | (4,470 | ) | - | - | (2,337 | ) | (2,337 | ) | - | - | (2,467 | ) | (2,467 | ) | ||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
- | - | (4,738 | ) | (4,738 | ) | - | - | (2,715 | ) | (2,715 | ) | - | - | (3,205 | ) | (3,205 | ) | ||||||||||||||||||||||||||||||
|
Current maturities of long-term debt
|
- | - | 2,401 | 2,401 | - | - | 2,400 | 2,400 | - | - | 2,404 | 2,404 | ||||||||||||||||||||||||||||||||||||
|
Line of credit
|
- | - | 875 | 875 | - | - | 834 | 834 | 889 | 889 | ||||||||||||||||||||||||||||||||||||||
|
Income taxes payable - current
|
- | - | 385 | 385 | - | - | 751 | 751 | - | - | 642 | 642 | ||||||||||||||||||||||||||||||||||||
|
Income taxes payable - long-term
|
- | - | 4,188 | 4,188 | - | - | 4,131 | 4,131 | - | - | 4,164 | 4,164 | ||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
- | - | 856 | 856 | - | - | 705 | 705 | - | - | 705 | 705 | ||||||||||||||||||||||||||||||||||||
|
Long-term debt, less current maturities
|
- | - | 4,416 | 4,416 | - | - | 6,666 | 6,666 | - | - | 6,719 | 6,719 | ||||||||||||||||||||||||||||||||||||
|
Total Capital Employed
|
$ | 55,102 | $ | 16,728 | $ | (1,234 | ) | $ | 70,596 | $ | 56,803 | $ | 18,967 | $ | (593 | ) | $ | 75,177 | $ | 53,910 | $ | 14,518 | $ | (541 | ) | $ | 67,887 | |||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
|||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
||||||||||||||
|
Average Capital Employed (3)
|
$ | 55,272 | $ | 16,738 | $ | (789 | ) | $ | 71,220 | ||||||||
|
Notes:
|
|
(1) See reconciliation per page 6 of this financial information release.
|
|
(2) Return on average capital employed represents operating income for the six month period ending October 28, 2012 times two 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, and
|
|
income taxes payable.
|
|
(3) Average capital employed was computed using the three periods ending October 28, 2012, July 29, 2012 and April 29, 2012.
|
Page 10 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||
|
CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE, NET INCOME AND EARNINGS PER SHARE
|
||||||||||||
|
FOR THE SIX MONTHS ENDED OCTOBER 27, 2013 AND OCTOBER 28, 2012
|
||||||||||||
|
Unaudited
|
||||||||||||
|
(Amounts in Thousands)
|
||||||||||||
|
SIX MONTHS ENDED
|
||||||||||||
| Amounts | ||||||||||||
|
October 27,
|
October 28,
|
|||||||||||
|
2013
|
2012
|
|||||||||||
|
Consolidated Effective GAAP Income Tax Rate
|
(1) | 38.9 | % | (19.1 | )% | |||||||
|
Reduction of U.S. Valuation Allowance
|
- | 123.0 | % | |||||||||
|
Undistributed earnings from foreign subsidiaries
|
- | (66.5 | )% | |||||||||
|
Non-Cash U.S. Income Tax Expense
|
(23.0 | )% | (20.4 | )% | ||||||||
|
Non-Cash Foreign Income Tax Expense
|
(0.3 | )% | (2.0 | )% | ||||||||
|
Consolidated Adjusted Effective Income Tax Rate
|
(2) | 15.6 | % | 15.0 | % | |||||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||||||
|
As reported
|
October 27, 2013
|
As reported
|
October 28, 2012
|
|||||||||||||||||||||
|
October 27,
|
Proforma Net
|
October 28,
|
Proforma Net
|
|||||||||||||||||||||
|
2013
|
Adjustments
|
of Adjustments
|
2012
|
Adjustments
|
of Adjustments
|
|||||||||||||||||||
|
Income before income taxes
|
$ | 4,814 | $ | - | $ | 4,814 | $ | 4,532 | $ | 4,532 | ||||||||||||||
|
Income taxes (3)
|
1,718 | $ | (967 | ) | 751 | (3,736 | ) | $ | 4,416 | 680 | ||||||||||||||
|
Net income
|
$ | 3,096 | $ | 967 | $ | 4,063 | $ | 8,268 | $ | (4,416 | ) | $ | 3,852 | |||||||||||
|
Net income per share-basic
|
$ | 0.25 | $ | (0.08 | ) | $ | 0.33 | $ | 0.68 | $ | 0.36 | $ | 0.32 | |||||||||||
|
Net income per share-diluted
|
$ | 0.25 | $ | (0.08 | ) | $ | 0.33 | $ | 0.67 | $ | 0.36 | $ | 0.31 | |||||||||||
|
Average shares outstanding-basic
|
12,183 | 12,183 | 12,183 | 12,191 | 12,191 | 12,191 | ||||||||||||||||||
|
Average shares outstanding-diluted
|
12,389 | 12,389 | 12,389 | 12,348 | 12,348 | 12,348 | ||||||||||||||||||
|
SIX MONTHS ENDED
|
||||||||||||||||||||||||
|
As reported
|
October 27, 2013
|
As reported
|
October 28, 2012
|
|||||||||||||||||||||
|
October 27,
|
Proforma Net
|
October 28,
|
Proforma Net
|
|||||||||||||||||||||
|
2013
|
Adjustments
|
of Adjustments
|
2012
|
Adjustments
|
of Adjustments
|
|||||||||||||||||||
|
Income before income taxes
|
$ | 10,349 | $ | - | $ | 10,349 | $ | 9,903 | $ | - | $ | 9,903 | ||||||||||||
|
Income taxes (3)
|
4,023 | $ | (2,409 | ) | 1,614 | (1,889 | ) | $ | 3,374 | 1,485 | ||||||||||||||
|
Net income
|
$ | 6,326 | $ | 2,409 | $ | 8,735 | $ | 11,792 | $ | (3,374 | ) | $ | 8,418 | |||||||||||
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Net income per share-basic
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$ | 0.52 | $ | (0.20 | ) | $ | 0.72 | $ | 0.95 | $ | 0.27 | $ | 0.68 | |||||||||||
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Net income per share-diluted
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$ | 0.51 | $ | (0.19 | ) | $ | 0.70 | $ | 0.94 | $ | 0.27 | $ | 0.67 | |||||||||||
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Average shares outstanding-basic
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12,165 | 12,165 | 12,165 | 12,371 | 12,371 | 12,371 | ||||||||||||||||||
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Average shares outstanding-diluted
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12,391 | 12,391 | 12,391 | 12,541 | 12,541 | 12,541 | ||||||||||||||||||
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(1) Calculated by dividing consolidated income tax expense (benefit) by
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consolidated income before income taxes.
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(2) Represents estimated cash income tax expense for our subsidiaries located
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| in Canada and China divided by consolidated income before income taxes. |
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(3) Proforma income taxes calculated using the Consolidated Adjusted Effective Income Tax Rate as reflected above.
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