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

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8-K - CULP, INC. 8-K - CULP INC	a50809670.htm
EX-99.(A) - EXHIBIT 99(A) - CULP INC	a50809670ex99_a.htm

Exhibit 99(b)

Page 1 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF NET INCOME
FOR THE THREE MONTHS ENDED JANUARY 26, 2014 AND JANUARY 27, 2013
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)


	THREE MONTHS ENDED

	Amounts									Percent of Sales
	January 26,			January 27,			% Over			January 26,			January 27,
	2014			2013			(Under)			2014			2013

Net sales	$	72,389			63,695		13.6		%	100.0		%		100.0	%
Cost of sales		60,552			52,010		16.4		%	83.6		%		81.7	%
Gross profit		11,837			11,685		1.3		%	16.4		%		18.3	%

Selling, general and
administrative expenses		7,041			6,822		3.2		%	9.7		%		10.7	%
Income from operations		4,796			4,863		(1.4	)	%	6.6		%		7.6	%

Interest expense		91			145		(37.2	)	%	0.1		%		0.2	%
Interest income		(148	)		(105	)	41.0		%	(0.2	)	%		(0.2	) %
Other expense		279			300		(7.0	)	%	0.4		%		0.5	%
Income before income taxes		4,574			4,523		1.1		%	6.3		%		7.1	%

Income taxes*		(3,807	)		1,700		N.M.			(83.2	)	%		37.6	%
Net income	$	8,381			2,823		196.9		%	11.6		%		4.4	%

Net income per share-basic	$	0.69		$	0.23		200.0		%
Net income per share-diluted	$	0.68		$	0.23		195.7		%
Average shares outstanding-basic		12,188			12,095		0.8		%
Average shares outstanding-diluted		12,405			12,290		0.9		%

PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)


	THREE MONTHS ENDED

	Amounts								Percent of Sales
	January 26,		January 27,		% Over				January 26,			January 27,
	2014		2013		(Under)				2014			2013


Income before income taxes (see above)	$	4,574		4,523		1.1		%		6.3	%		7.1	%

Adjusted Income taxes (2)*		709		651		8.9		%		15.5	%		14.4	%
Adjusted net income		3,865		3,872		(0.2	)	%		5.3	%		6.1	%

Adjusted net income per share-basic	$	0.32	$	0.32		0.0		%
Adjusted net income per share-diluted	$	0.31	$	0.32		(3.1	)	%
Average shares outstanding-basic		12,188		12,095		0.8		%
Average shares outstanding-diluted		12,405		12,290		0.9		%



(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.

Exhibit 99(b)

Page 2 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF NET INCOME
FOR THE NINE MONTHS ENDED JANUARY 26, 2014 AND JANUARY 27, 2013
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)


	NINE MONTHS ENDED

	Amounts										Percent of Sales
	January 26,			January 27,			% Over				January 26,				January 27,
	2014			2013			(Under)				2014				2013

Net sales	$	213,119			198,439			7.4		%		100.0		%		100.0		%
Cost of sales		175,974			161,757			8.8		%		82.6		%		81.5		%
Gross profit		37,145			36,682			1.3		%		17.4		%		18.5		%

Selling, general and
administrative expenses		21,340			21,672			(1.5	)	%		10.0		%		10.9		%
Income from operations		15,805			15,010			5.3		%		7.4		%		7.6		%

Interest expense		330			491			(32.8	)	%		0.2		%		0.2		%
Interest income		(343	)		(328	)		4.6		%		(0.2	)	%		(0.2	)	%
Other expense		895			421			112.6		%		0.4		%		0.2		%
Income before income taxes		14,923			14,426			3.4		%		7.0		%		7.3		%

Income taxes*		216			(188	)	N.M.					1.4		%		(1.3	)	%
Net income	$	14,707			14,614			0.6		%		6.9		%		7.4		%

Net income per share-basic	$	1.21		$	1.19			1.7		%
Net income per share-diluted	$	1.19		$	1.17			1.7		%
Average shares outstanding-basic		12,173			12,279			(0.9	)	%
Average shares outstanding-diluted		12,405			12,467			(0.5	)	%

PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)


	NINE MONTHS ENDED

	Amounts								Percent of Sales
	January 26,		January 27,		% Over				January 26,			January 27,
	2014		2013		(Under)				2014			2013


Income before income taxes (see above)	$	14,923		14,426		3.4		%		7.0	%		7.3	%

Adjusted Income taxes (2)*		2,313		2,077		11.4		%		15.5	%		14.4	%
Adjusted net income		12,610		12,349		2.1		%		5.9	%		6.2	%

Adjusted net income per share-basic	$	1.04	$	1.01		3.0		%
Adjusted net income per share-diluted	$	1.02	$	0.99		3.0		%
Average shares outstanding-basic		12,173		12,279		(0.9	)	%
Average shares outstanding-diluted		12,405		12,467		(0.5	)	%



(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.

Exhibit 99(b)

Page 3 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED BALANCE SHEETS
JANUARY 26, 2014, JANUARY 27, 2013 AND APRIL 28, 2013
Unaudited
(Amounts in Thousands)


	Amounts				Increase
	January 26,		January 27,		(Decrease)						* April 28,
	2014		2013		Dollars			Percent			2013

Current assets
Cash and cash equivalents	$	23,293		19,489		3,804			19.5	%		23,530
Short-term investments		7,077		5,237		1,840			35.1	%		5,286
Accounts receivable		26,392		24,257		2,135			8.8	%		23,392
Inventories		43,687		42,177		1,510			3.6	%		38,418
Deferred income taxes		7,503		4,098		3,405			83.1	%		7,709
Income taxes receivable		-		-		-			0.0	%		318
Other current assets		2,999		1,655		1,344			81.2	%		2,093
Total current assets		110,951		96,913		14,038			14.5	%		100,746

Property, plant & equipment, net		30,115		30,055		60			0.2	%		30,594
Goodwill		11,462		11,462		-			0.0	%		11,462
Deferred income taxes		1,227		4,172		(2,945	)		(70.6	) %		753
Other assets		2,923		1,195		1,728			144.6	%		1,151

Total assets	$	156,678		143,797		12,881			9.0	%		144,706



Current liabilities
Current maturities of long-term debt	$	2,200		2,366		(166	)		(7.0	) %		2,200
Line of credit		-		576		(576	)		(100.0	) %		561
Accounts payable - trade		25,187		26,220		(1,033	)		(3.9	) %		22,357
Accounts payable - capital expenditures		235		-		235			100.0	%		225
Accrued expenses		11,812		12,823		(1,011	)		(7.9	) %		11,829
Income taxes payable - current		130		395		(265	)		(67.1	) %		285
Total current liabilities		39,564		42,380		(2,816	)		(6.6	) %		37,457

Income taxes payable - long-term		3,953		4,195		(242	)		(5.8	) %		4,191
Deferred income taxes		945		856		89			10.4	%		3,075
Line of credit		573		-		573			100.0	%		-
Long-term debt , less current maturities		2,200		4,400		(2,200	)		(50.0	) %		4,400

Total liabilities		47,235		51,831		(4,596	)		(8.9	) %		49,123

Shareholders' equity		109,443		91,966		17,477			19.0	%		95,583

Total liabilities and
shareholders' equity	$	156,678		143,797		12,881			9.0	%		144,706

Shares outstanding		12,250		12,225		25			0.2	%		12,225


* Derived from audited financial statements.

Exhibit 99(b)

Page 4 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED JANUARY 26, 2014 AND JANUARY 27, 2013
Unaudited
(Amounts in Thousands)


	NINE MONTHS ENDED

	Amounts
	January 26,			January 27,
	2014			2013

Cash flows from operating activities:
Net income	$	14,707		$	14,614
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation		3,964			3,818
Amortization of other assets		123			178
Stock-based compensation		551			308
Excess tax benefit related to stock-based compensation		(143	)		(77	)
Deferred income taxes		(2,255	)		(2,370	)
Gain on sale of equipment		(108	)		-
Foreign currency exchange losses		353			153
Changes in assets and liabilities, net of effects of acquisition of assets:
Accounts receivable		(2,844	)		776
Inventories		(5,081	)		(5,794	)
Other current assets		(882	)		353
Other assets		(53	)		(92	)
Accounts payable-trade		2,487			(4,395	)
Accrued expenses		13			3,526
Accrued restructuring		-			(40	)
Income taxes		162			(141	)
Net cash provided by operating activities		10,994			10,817

Cash flows from investing activities:
Capital expenditures		(2,656	)		(2,763	)
Net cash paid for acquisition of assets		(2,640	)		-
Proceeds from the sale of equipment		188			-
Proceeds from life insurance policies		-			626
Payments on life insurance policies		(30	)		-
Purchase of short-term investments		(1,916	)		(84	)
Proceeds from the sale of short-term investments		-			795
Net cash used in investing activities		(7,054	)		(1,426	)

Cash flows from financing activities:
Proceeds from lines of credit		-			1,000
Payments on lines of credit		-			(1,325	)
Payments on long-term debt		(2,200	)		(2,350	)
Proceeds from common stock issued		194			205
Common stock shares repurchased		-			(5,022	)
Dividends paid		(1,592	)		(7,226	)
Debt issance costs		(62	)		-
Excess tax benefit related to stock-based compensation		143			77
Net cash used in financing activities		(3,517	)		(14,641	)

Effect of exchange rate changes on cash and cash equivalents		(660	)		(284	)

Decrease in cash and cash equivalents		(237	)		(5,534	)

Cash and cash equivalents at beginning of period		23,530			25,023

Cash and cash equivalents at end of period	$	23,293		$	19,489


Free Cash Flow (1)	$	7,979		$	8,473


(1	)	Free Cash Flow reconciliation is as follows:
			FY 2014			FY 2013
A	)	Net cash provided by operating activities	$	10,994		$	10,817
B	)	Minus: Capital Expenditures		(2,656	)		(2,763	)
C	)	Add: Proceeds from the sale of equipment		188			-
D	)	Add: Proceeds from life insurance policies		-			626
E	)	Minus: Payments on life insurance policies		(30	)		-
F	)	Add: Excess tax benefit related to stock-based compensation		143			77
G	)	Effect of exchange rate changes on cash and cash equivalents		(660	)		(284	)
			$	7,979		$	8,473

Exhibit 99(b)

Page 5 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
STATEMENTS OF OPERATIONS BY SEGMENT
FOR THE THREE MONTHS ENDED JANUARY 26, 2014 AND JANUARY 27, 2013
(Unaudited)
(Amounts in thousands)

	THREE MONTHS ENDED

	Amounts										Percent of Total Sales
	January 26,			January 27,			% Over				January 26,				January 27,
Net Sales by Segment	2014			2013			(Under)				2014				2013

Mattress Fabrics	$	38,541			35,513			8.5		%		53.2		%		55.8		%
Upholstery Fabrics		33,848			28,182			20.1		%		46.8		%		44.2		%

Net Sales	$	72,389			63,695			13.6		%		100.0		%		100.0		%


Gross Profit by Segment											Gross Profit Margin

Mattress Fabrics	$	5,599			6,548			(14.5	)	%		14.5		%		18.4		%
Upholstery Fabrics		6,238			5,137			21.4		%		18.4		%		18.2		%
Gross Profit	$	11,837			11,685			1.3		%		16.4		%		18.3		%



Selling, General and Administrative Expenses by Segment											Percent of Sales

Mattress Fabrics	$	2,286			2,382			(4.0	)	%		5.9		%		6.7		%
Upholstery Fabrics		3,572			3,360			6.3		%		10.6		%		11.9		%
Unallocated Corporate expenses		1,183			1,080			9.5		%		1.6		%		1.7		%
Selling, General and Administrative Expenses	$	7,041			6,822			3.2		%		9.7		%		10.7		%


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

Mattress Fabrics	$	3,313			4,166			(20.5	)	%		8.6		%		11.7		%
Upholstery Fabrics		2,666			1,777			50.0		%		7.9		%		6.3		%
Unallocated corporate expenses		(1,183	)		(1,080	)		9.5		%		(1.6	)	%		(1.7	)	%
Operating income	$	4,796			4,863			(1.4	)	%		6.6		%		7.6		%


Depreciation by Segment

Mattress Fabrics	$	1,180			1,125			4.9		%
Upholstery Fabrics		149			154			(3.2	)	%
Depreciation	$	1,329			1,279			3.9		%

Exhibit 99(b)

Page 6 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
STATEMENTS OF OPERATIONS BY SEGMENT
FOR THE NINE MONTHS ENDED JANUARY 26, 2014 AND JANUARY 27, 2013
(Unaudited)
(Amounts in thousands)


	NINE MONTHS ENDED

	Amounts										Percent of Total Sales
	January 26,			January 27,			% Over				January 26,				January 27,
Net Sales by Segment	2014			2013			(Under)				2014				2013

Mattress Fabrics	$	117,035			113,175			3.4		%		54.9		%		57.0		%
Upholstery Fabrics		96,084			85,264			12.7		%		45.1		%		43.0		%

Net Sales	$	213,119			198,439			7.4		%		100.0		%		100.0		%


Gross Profit by Segment											Gross Profit Margin

Mattress Fabrics	$	20,312			21,708			(6.4	)	%		17.4		%		19.2		%
Upholstery Fabrics		16,833			14,974			12.4		%		17.5		%		17.6		%
Gross Profit	$	37,145			36,682			1.3		%		17.4		%		18.5		%


Selling, General and Administrative Expenses by Segment											Percent of Sales

Mattress Fabrics	$	7,280			7,197			1.2		%		6.2		%		6.4		%
Upholstery Fabrics		10,007			9,857			1.5		%		10.4		%		11.6		%
Unallocated Corporate expenses		4,053			4,618			(12.2	)	%		1.9		%		2.3		%
Selling, General, and Administrative Expenses	$	21,340			21,672			(1.5	)	%		10.0		%		10.9		%


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

Mattress Fabrics	$	13,033			14,512			(10.2	)	%		11.1		%		12.8		%
Upholstery Fabrics		6,825			5,116			33.4		%		7.1		%		6.0		%
Unallocated corporate expenses		(4,053	)		(4,618	)		(12.2	)	%		(1.9	)	%		(2.3	)	%
Operating income	$	15,805			15,010			5.3		%		7.4		%		7.6		%


Return on Capital (1)

Mattress Fabrics		29.4	%		34.9	%
Upholstery Fabrics		44.7	%		39.7	%
Unallocated Corporate		N/A			N/A
Consolidated		27.3	%		28.0	%

Capital Employed (2)

Mattress Fabrics		59,699			55,970			6.7		%
Upholstery Fabrics		23,558			18,474			27.5		%
Unallocated Corporate		(2,913	)		(2,686	)		N/A
Consolidated		80,344			71,758			12.0		%


Depreciation by Segment

Mattress Fabrics	$	3,510			3,344			5.0		%
Upholstery Fabrics		454			474			(4.2	)	%
Depreciation	$	3,964			3,818			3.8		%


Notes:

(1) See pages 8 and 9 of this financial information release for calculations.

(2) The capital employed balances are as of January 26, 2014 and January 27, 2013.

Exhibit 99(b)

Page 7 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA
FOR THE TWELVE MONTHS ENDED JANUARY 26, 2014 AND JANUARY 27, 2013
(UNAUDITED)
(AMOUNTS IN THOUSANDS)



	Quarter Ended
											Trailing 12
											Months
	4/28/2013		7/28/2013		10/27/2013			1/26/2014			1/26/2014

Net income	$	3,702	$	3,230	$	3,096		$	8,381		$	18,409
Income taxes		2,161		2,305		1,718			(3,807	)		2,377
Interest expense (income), net		50		48		(3	)		(57	)		38
Depreciation and amortization expense		1,354		1,344		1,373			1,370			5,441
Stock based compensation		254		152		224			175			805
Adjusted EBITDA	$	7,521	$	7,079	$	6,408		$	6,062		$	27,070



	Quarter Ended
											Trailing 12
											Months
	4/29/2012		7/29/2012		10/28/2012			1/27/2013			1/27/2013

Net income	$	3,423	$	3,524	$	8,268		$	2,823		$	18,038
Income taxes		2,071		1,848		(3,736	)		1,700			1,883
Interest expense, net		69		63		60			40			232
Depreciation and amortization expense		1,325		1,314		1,344			1,338			5,321
Stock based compensation		91		70		127			111			399
Adjusted EBITDA	$	6,979	$	6,819	$	6,063		$	6,012		$	25,873

Exhibit 99(b)

Page 8 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
RETURN ON CAPITAL EMPLOYED BY SEGMENT
FOR THE NINE MONTHS ENDED JANUARY 26, 2014
(Amounts in Thousands)
(Unaudited)

	Operating Income
	Nine Months			Average			Return on
	Ended			Capital			Avg. Capital
	January 26, 2014 (1)			Employed (3)			Employed (2)

Mattress Fabrics	$	13,033		$	59,046			29.4	%
Upholstery Fabrics		6,825			20,345			44.7	%
(less: Unallocated Corporate)		(4,053	)		(2,291	)		N/A
Total	$	15,805		$	77,100			27.3	%




Average Capital Employed	As of the three Months Ended January 26, 2014												As of the three Months Ended October 27, 2013												As of the three Months Ended July 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		78,503			37,147			41,028			156,678			79,444			35,881			40,917			156,242			78,217			34,381			38,503			151,101
Total liabilities		(18,804	)		(13,589	)		(14,842	)		(47,235	)		(20,500	)		(15,581	)		(18,646	)		(54,727	)		(18,627	)		(14,172	)		(19,717	)		(52,516	)

Subtotal	$	59,699		$	23,558		$	26,186		$	109,443		$	58,944		$	20,300		$	22,271		$	101,515		$	59,590		$	20,209		$	18,786		$	98,585
Less:
Cash and cash equivalents		-			-			(23,293	)		(23,293	)		-			-			(24,267	)		(24,267	)		-			-			(21,423	)		(21,423	)
Short-term investments		-			-			(7,077	)		(7,077	)		-			-			(6,220	)		(6,220	)		-			-			(6,174	)		(6,174	)
Income taxes receivable		-			-			-			-			-			-			-			-			-			-			(292	)		(292	)
Deferred income taxes - current		-			-			(7,503	)		(7,503	)		-			-			(7,745	)		(7,745	)		-			-			(7,747	)		(7,747	)
Deferred income taxes - non-current		-			-			(1,227	)		(1,227	)		-			-			(661	)		(661	)		-			-			(651	)		(651	)
Current maturities of long-term debt		-			-			2,200			2,200			-			-			2,200			2,200			-			-			2,200			2,200
Line of credit		-			-			573			573			-			-			585			585			-			-			560			560
Income taxes payable - current		-			-			130			130			-			-			304			304			-			-			320			320
Income taxes payable - long-term		-			-			3,953			3,953			-			-			4,141			4,141			-			-			4,176			4,176
Deferred income taxes - non-current		-			-			945			945			-			-			5,016			5,016			-			-			4,335			4,335
Long-term debt, less current maturities		-			-			2,200			2,200			-			-			2,200			2,200			-			-			4,400			4,400

Total Capital Employed	$	59,699		$	23,558		$	(2,913	)	$	80,344		$	58,944		$	20,300		$	(2,176	)	$	77,068		$	59,590		$	20,209		$	(1,510	)	$	78,289


	As of the three Months Ended April 28, 2013
	Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total

Total assets		73,954			30,995			39,757			144,706
Total liabilities		(16,004	)		(13,682	)		(19,437	)		(49,123	)

Subtotal	$	57,950		$	17,313		$	20,320		$	95,583
Less:
Cash and cash equivalents		-			-			(23,530	)		(23,530	)
Short-term investments		-			-			(5,286	)		(5,286	)
Income taxes receivable		-			-			(318	)		(318	)
Deferred income taxes - current		-			-			(7,709	)		(7,709	)
Deferred income taxes - non-current		-			-			(753	)		(753	)
Current maturities of long-term debt		-			-			2,200			2,200
Line of credit								561			561
Income taxes payable - current		-			-			285			285
Income taxes payable - long-term		-			-			4,191			4,191
Deferred income taxes - non-current		-			-			3,075			3,075
Long-term debt, less current maturities		-			-			4,400			4,400

Total Capital Employed	$	57,950		$	17,313		$	(2,564	)	$	72,699

	Mattress		Upholstery		Unallocated
	Fabrics		Fabrics		Corporate			Total

Average Capital Employed (3)	$	59,046	$	20,345	$	(2,291	)	$	77,100

Notes:

(1) See reconciliation per page 6 of this financial information release.

(2) Return on average capital employed represents operating income for the nine month period ending January 26, 2014 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, and

income taxes payable and receivable.

(3) Average capital employed was computed using the four periods ending January 26, 2014, October 27, 2013, July 28, 2013 and April 28, 2013.

Exhibit 99(b)

Page 9 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
RETURN ON CAPITAL EMPLOYED BY SEGMENT
FOR THE NINE MONTHS ENDED JANUARY 27,2013
(Amounts in Thousands)
(Unaudited)

	Operating Income
	Nine Months			Average			Return on
	Ended			Capital			Avg. Capital
	January 27, 2013 (1)			Employed (3)			Employed (2)

Mattress Fabrics	$	14,512		$	55,446			34.9	%
Upholstery Fabrics		5,116			17,172			39.7	%
(less: Unallocated Corporate)		(4,618	)		(1,264	)		N/A
Total	$	15,010		$	71,355			28.0	%

Average Capital Employed	As of the three Months Ended January 27, 2013												As of the three Months Ended October 28, 2012												As of the three Months Ended July 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		74,794			33,773			35,230			143,797			74,342			27,240			40,861			142,443			78,098			29,973			35,089			143,160
Total liabilities		(18,824	)		(15,299	)		(17,708	)		(51,831	)		(19,240	)		(10,512	)		(17,303	)		(47,055	)		(21,295	)		(11,006	)		(19,028	)		(51,329	)

Subtotal	$	55,970		$	18,474		$	17,522		$	91,966		$	55,102		$	16,728		$	23,558		$	95,388		$	56,803		$	18,967		$	16,061		$	91,831
Less:
Cash and cash equivalents		-			-			(19,489	)		(19,489	)		-			-			(23,464	)		(23,464	)		-			-			(21,889	)		(21,889	)
Short-term investments		-			-			(5,237	)		(5,237	)		-			-			(5,241	)		(5,241	)		-			-			(5,200	)		(5,200	)
Deferred income taxes - current		-			-			(4,098	)		(4,098	)		-			-			(4,470	)		(4,470	)		-			-			(2,337	)		(2,337	)
Deferred income taxes - non-current		-			-			(4,172	)		(4,172	)		-			-			(4,738	)		(4,738	)		-			-			(2,715	)		(2,715	)
Current maturities of long-term debt		-			-			2,366			2,366			-			-			2,401			2,401			-			-			2,400			2,400
Line of credit		-			-			576			576			-			-			875			875			-			-			834			834
Income taxes payable - current		-			-			395			395			-			-			385			385			-			-			751			751
Income taxes payable - long-term		-			-			4,195			4,195			-			-			4,188			4,188			-			-			4,131			4,131
Deferred income taxes - non-current		-			-			856			856			-			-			856			856			-			-			705			705
Long-term debt, less current maturities		-			-			4,400			4,400			-			-			4,416			4,416			-			-			6,666			6,666

Total Capital Employed	$	55,970		$	18,474		$	(2,686	)	$	71,758		$	55,102		$	16,728		$	(1,234	)	$	70,596		$	56,803		$	18,967		$	(593	)	$	75,177


	As of the three Months Ended April 29, 2012
	Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total

Total assets		71,563			33,641			39,512			144,716
Total liabilities		(17,653	)		(19,123	)		(18,940	)		(55,716	)

Subtotal	$	53,910		$	14,518		$	20,572		$	89,000
Less:
Cash and cash equivalents		-			-			(25,023	)		(25,023	)
Short-term investments		-			-			(5,941	)		(5,941	)
Deferred income taxes - current		-			-			(2,467	)		(2,467	)
Deferred income taxes - non-current		-			-			(3,205	)		(3,205	)
Current maturities of long-term debt		-			-			2,404			2,404
Line of credit		-			-			889			889
Income taxes payable - current		-			-			642			642
Income taxes payable - long-term		-			-			4,164			4,164
Deferred income taxes - non-current		-			-			705			705
Long-term debt, less current maturities		-			-			6,719			6,719

Total Capital Employed	$	53,910		$	14,518		$	(541	)	$	67,887

	Mattress		Upholstery		Unallocated
	Fabrics		Fabrics		Corporate			Total

Average Capital Employed (3)	$	55,446	$	17,172	$	(1,264	)	$	71,355

Notes:

(1) See reconciliation per page 6 of this financial information release.

(2) Return on average capital employed represents operating income for the nine month period ending January 27, 2013 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,

and income taxes payable.

(3) Average capital employed was computed using the four periods ending April 29, 2012, July 29, 2012, October 28, 2012, and January 27, 2013.

Exhibit 99(b)

Page 10 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE, NET INCOME AND EARNINGS PER SHARE
FOR THE NINE MONTHS ENDED JANUARY 26, 2014 AND JANUARY 27, 2013
Unaudited
(Amounts in Thousands)


			NINE MONTHS ENDED

			Amounts
			January 26,				January 27.
			2014				2013


Consolidated Effective GAAP Income Tax Rate	(1	)		1.4		%		(1.3	)	%

Reduction of U.S. Valuation Allowance				-				83.7		%

Undistributed earnings from foreign subsidiaries				34.2		%		(46.3	)	%

Non-Cash U.S. Income Tax Expense				(20.0	)	%		(20.2	)	%

Non-Cash Foreign Income Tax Expense				(0.1	)	%		(1.5	)	%

Consolidated Adjusted Effective Income Tax Rate	(2	)		15.5		%		14.4		%

	THREE MONTHS ENDED
	As reported						January 26, 2014		As reported						January 27, 2013
	January 26,						Proforma Net		January 27,						Proforma Net
	2014			Adjustments			of Adjustments		2013			Adjustments			of Adjustments

Income before income taxes	$	4,574		$	-		$	4,574	$	4,523					$	4,523

Income taxes (3)		(3,807	)	$	4,516			709		1,700		$	(1,049	)		651
Net income	$	8,381		$	(4,516	)	$	3,865	$	2,823		$	1,049		$	3,872

Net income per share-basic	$	0.69		$	0.37		$	0.32	$	0.23		$	(0.09	)	$	0.32
Net income per share-diluted	$	0.68		$	0.36		$	0.31	$	0.23		$	(0.09	)	$	0.32
Average shares outstanding-basic		12,188			12,188			12,188		12,095			12,095			12,095
Average shares outstanding-diluted		12,405			12,405			12,405		12,290			12,290			12,290



	NINE MONTHS ENDED
	As reported						January 26, 2014		As reported						January 27, 2013
	January 26,						Proforma Net		January 27,						Proforma Net
		2014		Adjustments			of Adjustments			2013		Adjustments			of Adjustments

Income before income taxes	$	14,923		$	-		$	14,923	$	14,426		$	-		$	14,426

Income taxes (3)		216		$	2,097			2,313		(188	)	$	2,265			2,077
Net income	$	14,707		$	(2,097	)	$	12,610	$	14,614		$	(2,265	)	$	12,349

Net income per share-basic	$	1.21		$	0.17		$	1.04	$	1.19		$	0.18		$	1.01
Net income per share-diluted	$	1.19		$	0.17		$	1.02	$	1.17		$	0.18		$	0.99
Average shares outstanding-basic		12,173			12,173			12,173		12,279			12,279			12,279
Average shares outstanding-diluted		12,405			12,405			12,405		12,467			12,467			12,467

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

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

(3) Proforma income taxes calculated using the Consolidated Adjusted Effective Income Tax Rate as reflected above.

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