Attached files
| file | filename |
|---|---|
| 8-K - CULP, INC. 8-K - CULP INC | a50991326.htm |
| EX-99.(A) - EXHIBIT 99(A) - CULP INC | a50991326ex99a.htm |
Exhibit 99(b)
Page 1 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF NET INCOME
|
||||||||||||||||||||
|
FOR THREE MONTHS ENDED NOVEMBER 2, 2014 AND OCTOBER 27, 2013
|
||||||||||||||||||||
|
(UNAUDITED)
|
||||||||||||||||||||
|
(Amounts in Thousands, Except for Per Share Data)
|
||||||||||||||||||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
November 2,
|
October 27,
|
% Over
|
November 2,
|
October 27,
|
||||||||||||||||
|
2014
|
2013
|
(Under)
|
2014
|
2013
|
||||||||||||||||
|
Net sales
|
$ | 73,991 | 70,589 | 4.8 | % | 100.0 | % | 100.0 | % | |||||||||||
|
Cost of sales
|
61,713 | 58,354 | 5.8 | % | 83.4 | % | 82.7 | % | ||||||||||||
|
Gross profit
|
12,278 | 12,235 | 0.4 | % | 16.6 | % | 17.3 | % | ||||||||||||
|
Selling, general and
|
||||||||||||||||||||
|
administrative expenses
|
7,379 | 7,200 | 2.5 | % | 10.0 | % | 10.2 | % | ||||||||||||
|
Income from operations
|
4,899 | 5,035 | (2.7 | )% | 6.6 | % | 7.1 | % | ||||||||||||
|
Interest expense
|
- | 99 | (100.0 | )% | 0.0 | % | 0.1 | % | ||||||||||||
|
Interest income
|
(153 | ) | (102 | ) | 50.0 | % | (0.2 | )% | (0.1 | )% | ||||||||||
|
Other expense
|
162 | 224 | (27.7 | )% | 0.2 | % | 0.3 | % | ||||||||||||
|
Income before income taxes
|
4,890 | 4,814 | 1.6 | % | 6.6 | % | 6.8 | % | ||||||||||||
|
Income taxes*
|
1,889 | 1,718 | 10.0 | % | 38.6 | % | 35.7 | % | ||||||||||||
|
Net income
|
$ | 3,001 | 3,096 | (3.1 | )% | 4.1 | % | 4.4 | % | |||||||||||
|
Net income per share-basic
|
$ | 0.25 | $ | 0.25 | 0.0 | % | ||||||||||||||
|
Net income per share-diluted
|
$ | 0.24 | $ | 0.25 | (4.0 | )% | ||||||||||||||
|
Average shares outstanding-basic
|
12,218 | 12,183 | 0.3 | % | ||||||||||||||||
|
Average shares outstanding-diluted
|
12,401 | 12,389 | 0.1 | % | ||||||||||||||||
|
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)
|
||||||||||||||||||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
November 2,
|
October 27,
|
% Over
|
November 2,
|
October 27,
|
||||||||||||||||
|
2014
|
2013
|
(Under)
|
2014
|
2013
|
||||||||||||||||
|
Income before income taxes (see above)
|
$ | 4,890 | 4,814 | 1.6 | % | 6.6 | % | 6.8 | % | |||||||||||
|
Adjusted Income taxes (2)*
|
787 | 751 | 4.8 | % | 16.1 | % | 15.6 | % | ||||||||||||
|
Adjusted net income
|
4,103 | 4,063 | 1.0 | % | 5.5 | % | 5.8 | % | ||||||||||||
|
Adjusted net income per share-basic
|
$ | 0.34 | $ | 0.33 | 3.0 | % | ||||||||||||||
|
Adjusted net income per share-diluted
|
$ | 0.33 | $ | 0.33 | 0.0 | % | ||||||||||||||
|
Average shares outstanding-basic
|
12,218 | 12,183 | 0.3 | % | ||||||||||||||||
|
Average shares outstanding-diluted
|
12,401 | 12,389 | 0.1 | % | ||||||||||||||||
|
(1) Culp, Inc. currently does not incur cash income tax expense in the US due to its $45.7 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 SIX MONTHS ENDED NOVEMBER 2, 2014 AND OCTOBER 27, 2013
|
||||||||||||||||||||
|
(UNAUDITED)
|
||||||||||||||||||||
|
(Amounts in Thousands, Except for Per Share Data)
|
||||||||||||||||||||
|
SIX MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
November 2,
|
October 27,
|
% Over
|
November 2,
|
October 27,
|
||||||||||||||||
|
2014
|
2013
|
(Under)
|
2014
|
2013
|
||||||||||||||||
|
Net sales
|
$ | 150,051 | 140,730 | 6.6 | % | 100.0 | % | 100.0 | % | |||||||||||
|
Cost of sales
|
125,058 | 115,422 | 8.3 | % | 83.3 | % | 82.0 | % | ||||||||||||
|
Gross profit
|
24,993 | 25,308 | (1.2 | )% | 16.7 | % | 18.0 | % | ||||||||||||
|
Selling, general and
|
||||||||||||||||||||
|
administrative expenses
|
14,798 | 14,299 | 3.5 | % | 9.9 | % | 10.2 | % | ||||||||||||
|
Income from operations
|
10,195 | 11,009 | (7.4 | )% | 6.8 | % | 7.8 | % | ||||||||||||
|
Interest expense
|
67 | 239 | (72.0 | )% | 0.0 | % | 0.2 | % | ||||||||||||
|
Interest income
|
(294 | ) | (195 | ) | 50.8 | % | (0.2 | )% | (0.1 | )% | ||||||||||
|
Other expense
|
73 | 616 | (88.1 | )% | 0.0 | % | 0.4 | % | ||||||||||||
|
Income before income taxes
|
10,349 | 10,349 | 0.0 | % | 6.9 | % | 7.4 | % | ||||||||||||
|
Income taxes*
|
4,003 | 4,023 | (0.5 | )% | 38.7 | % | 38.9 | % | ||||||||||||
|
Net income
|
$ | 6,346 | 6,326 | 0.3 | % | 4.2 | % | 4.5 | % | |||||||||||
|
Net income per share-basic
|
$ | 0.52 | $ | 0.52 | 0.0 | % | ||||||||||||||
|
Net income per share-diluted
|
$ | 0.51 | $ | 0.51 | 0.0 | % | ||||||||||||||
|
Average shares outstanding-basic
|
12,215 | 12,165 | 0.4 | % | ||||||||||||||||
|
Average shares outstanding-diluted
|
12,403 | 12,391 | 0.1 | % | ||||||||||||||||
|
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)
|
||||||||||||||||||||
|
SIX MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
November 2,
|
October 27,
|
% Over
|
November 2,
|
October 27,
|
||||||||||||||||
|
2014
|
2013
|
(Under)
|
2014
|
2013
|
||||||||||||||||
|
Income before income taxes (see above)
|
$ | 10,349 | 10,349 | 0.0 | % | 6.9 | % | 7.4 | % | |||||||||||
|
Adjusted Income taxes (2)*
|
1,666 | 1,614 | 3.2 | % | 16.1 | % | 15.6 | % | ||||||||||||
|
Adjusted net income
|
8,683 | 8,735 | (0.6 | )% | 5.8 | % | 6.2 | % | ||||||||||||
|
Adjusted net income per share-basic
|
$ | 0.71 | $ | 0.72 | (1.4 | )% | ||||||||||||||
|
Adjusted net income per share-diluted
|
$ | 0.70 | $ | 0.70 | 0.0 | % | ||||||||||||||
|
Average shares outstanding-basic
|
12,215 | 12,165 | 0.4 | % | ||||||||||||||||
|
Average shares outstanding-diluted
|
12,403 | 12,391 | 0.1 | % | ||||||||||||||||
|
(1) Culp, Inc. currently does not incur cash income tax expense in the US due to its $45.7 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
|
||||||||||||||||||||
|
NOVEMBER 2, 2014, OCTOBER 27, 2013, AND APRIL 27, 2014
|
||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| (Amounts in Thousands) | ||||||||||||||||||||
|
Amounts
|
Increase
|
|||||||||||||||||||
|
November 2,
|
October 27,
|
(Decrease)
|
* April 27,
|
|||||||||||||||||
|
2014
|
2013
|
Dollars
|
Percent
|
2014
|
||||||||||||||||
|
Current assets
|
||||||||||||||||||||
|
Cash and cash equivalents
|
$ | 28,953 | 24,267 | 4,686 | 19.3 | % | 29,303 | |||||||||||||
|
Short-term investments
|
6,318 | 6,220 | 98 | 1.6 | % | 6,294 | ||||||||||||||
|
Accounts receivable
|
25,045 | 24,937 | 108 | 0.4 | % | 27,409 | ||||||||||||||
|
Inventories
|
38,228 | 44,882 | (6,654 | ) | (14.8 | )% | 40,674 | |||||||||||||
|
Deferred income taxes
|
6,191 | 7,745 | (1,554 | ) | (20.1 | )% | 6,230 | |||||||||||||
|
Income taxes receivable
|
- | - | - | 0.0 | % | 121 | ||||||||||||||
|
Other current assets
|
2,303 | 2,550 | (247 | ) | (9.7 | )% | 2,344 | |||||||||||||
|
Total current assets
|
107,038 | 110,601 | (3,563 | ) | (3.2 | )% | 112,375 | |||||||||||||
|
Property, plant & equipment, net
|
33,204 | 30,559 | 2,645 | 8.7 | % | 31,376 | ||||||||||||||
| Goodwill | 11,462 | 11,462 | - | 0.0 | % | 11,462 | ||||||||||||||
|
Deferred income taxes
|
508 | 661 | (153 | ) | (23.1 | )% | 2,040 | |||||||||||||
|
Long-term Investments
|
1,911 | - | 1,911 | 100.0 | % | 765 | ||||||||||||||
|
Other assets
|
2,539 | 2,959 | (420 | ) | (14.2 | )% | 2,917 | |||||||||||||
|
Total assets
|
$ | 156,662 | 156,242 | 420 | 0.3 | % | 160,935 | |||||||||||||
|
Current liabilities
|
||||||||||||||||||||
|
Current maturities of long-term debt
|
$ | 2,200 | 2,200 | - | 0.0 | % | 2,200 | |||||||||||||
|
Accounts payable - trade
|
25,450 | 28,543 | (3,093 | ) | (10.8 | )% | 26,686 | |||||||||||||
|
Accounts payable - capital expenditures
|
178 | 66 | 112 | 169.7 | % | 277 | ||||||||||||||
|
Accrued expenses
|
7,723 | 11,672 | (3,949 | ) | (33.8 | )% | 9,181 | |||||||||||||
|
Income taxes payable - current
|
268 | 304 | (36 | ) | (11.8 | )% | 442 | |||||||||||||
|
Total current liabilities
|
35,819 | 42,785 | (6,966 | ) | (16.3 | )% | 38,786 | |||||||||||||
|
Income taxes payable - long-term
|
3,980 | 4,141 | (161 | ) | (3.9 | )% | 3,962 | |||||||||||||
|
Deferred income taxes
|
1,395 | 5,016 | (3,621 | ) | (72.2 | )% | 1,013 | |||||||||||||
|
Line of credit
|
- | 585 | (585 | ) | (100.0 | )% | 586 | |||||||||||||
|
Deferred compensation
|
3,794 | - | 3,794 | 100.0 | % | 2,644 | ||||||||||||||
|
Long-term debt , less current maturities
|
- | 2,200 | (2,200 | ) | (100.0 | )% | 2,200 | |||||||||||||
|
Total liabilities
|
44,988 | 54,727 | (9,739 | ) | (17.8 | )% | 49,191 | |||||||||||||
|
Shareholders' equity
|
111,674 | 101,515 | 10,159 | 10.0 | % | 111,744 | ||||||||||||||
|
Total liabilities and
|
||||||||||||||||||||
|
shareholders' equity
|
$ | 156,662 | 156,242 | 420 | 0.3 | % | 160,935 | |||||||||||||
|
Shares outstanding
|
12,219 | 12,250 | (31 | ) | (0.3 | )% | 12,250 | |||||||||||||
|
* Derived from audited financial statements.
|
||||||||||||||||||||
Exhibit 99(b)
Page 4 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
|
FOR THE SIX MONTHS ENDED NOVEMBER 2, 2014 AND OCTOBER 27, 2013
|
||||||||
| Unaudited | ||||||||
|
(Amounts in Thousands)
|
||||||||
|
SIX MONTHS ENDED
|
||||||||
|
Amounts
|
||||||||
|
November 2,
|
October 27,
|
|||||||
|
2014
|
2013
|
|||||||
|
Cash flows from operating activities:
|
||||||||
|
Net income
|
$ | 6,346 | $ | 6,326 | ||||
|
Adjustments to reconcile net income to net cash
|
||||||||
|
provided by operating activities:
|
||||||||
|
Depreciation
|
2,812 | 2,636 | ||||||
|
Amortization of other assets
|
94 | 81 | ||||||
|
Stock-based compensation
|
291 | 376 | ||||||
|
Excess tax benefit related to stock-based compensation
|
(108 | ) | (143 | ) | ||||
|
Deferred income taxes
|
2,061 | 2,140 | ||||||
|
Gain on sale of equipment
|
(35 | ) | (74 | ) | ||||
|
Foreign currency exchange (gains) losses
|
(171 | ) | 203 | |||||
|
Changes in assets and liabilities, net of effects of acquisition of assets:
|
||||||||
|
Accounts receivable
|
2,360 | (1,419 | ) | |||||
|
Inventories
|
2,467 | (6,331 | ) | |||||
|
Other current assets
|
34 | (437 | ) | |||||
|
Other assets
|
(36 | ) | (47 | ) | ||||
|
Accounts payable-trade
|
(1,275 | ) | 5,923 | |||||
|
Accrued expenses and deferred compensation
|
(324 | ) | (158 | ) | ||||
|
Income taxes
|
22 | 367 | ||||||
|
Net cash provided by operating activities
|
14,538 | 9,443 | ||||||
|
Cash flows from investing activities:
|
||||||||
|
Capital expenditures
|
(5,087 | ) | (1,900 | ) | ||||
|
Net cash paid for acquisition of assets
|
- | (2,640 | ) | |||||
|
Proceeds from the sale of equipment
|
391 | 113 | ||||||
|
Proceeds from life insurance policies
|
320 | - | ||||||
|
Payments on life insurance policies
|
- | (30 | ) | |||||
|
Proceeds from the sale of short-term investments
|
1,628 | - | ||||||
|
Purchase of short-term investments
|
(1,675 | ) | (1,047 | ) | ||||
|
Purchase of long-term investments
|
(1,146 | ) | - | |||||
|
Net cash used in investing activities
|
(5,569 | ) | (5,504 | ) | ||||
|
Cash flows from financing activities:
|
||||||||
|
Payments on lines of credit
|
(538 | ) | - | |||||
|
Payments on long-term debt
|
(2,200 | ) | (2,200 | ) | ||||
|
Proceeds from common stock issued
|
89 | 194 | ||||||
|
Common stock shares repurchased
|
(745 | ) | - | |||||
|
Dividends paid
|
(6,113 | ) | (979 | ) | ||||
|
Debt issance costs
|
- | (62 | ) | |||||
|
Excess tax benefit related to stock-based compensation
|
108 | 143 | ||||||
|
Net cash used in financing activities
|
(9,399 | ) | (2,904 | ) | ||||
|
Effect of exchange rate changes on cash and cash equivalents
|
80 | (298 | ) | |||||
|
(Decrease) increase in cash and cash equivalents
|
(350 | ) | 737 | |||||
|
Cash and cash equivalents at beginning of period
|
29,303 | 23,530 | ||||||
|
Cash and cash equivalents at end of period
|
$ | 28,953 | $ | 24,267 | ||||
|
Free Cash Flow (1)
|
$ | 9,204 | $ | 7,471 | ||||
|
(1) Free Cash Flow reconciliation is as follows:
|
||||||||
|
FY 2015
|
FY 2014
|
|||||||
|
A) Net cash provided by operating activities
|
$ | 14,538 | $ | 9,443 | ||||
|
B) Minus: Capital Expenditures
|
(5,087 | ) | (1,900 | ) | ||||
|
C) Add: Proceeds from the sale of equipment
|
391 | 113 | ||||||
|
D) Add: Proceeds from life insurance policies
|
320 | - | ||||||
|
E) Minus: Payments on life insurance policies
|
- | (30 | ) | |||||
|
F) Minus: Purchase of long-term investments
|
(1,146 | ) | - | |||||
|
G) Add: Excess tax benefit related to stock-based compensation
|
108 | 143 | ||||||
|
H) Effect of exchange rate changes on cash and cash equivalents
|
80 | (298 | ) | |||||
| $ | 9,204 | $ | 7,471 | |||||
Exhibit 99(b)
Page 5 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
STATEMENTS OF OPERATIONS BY SEGMENT
|
||||||||||||||||||||
|
FOR THE THREE MONTHS ENDED NOVEMBER 2, 2014 AND OCTOBER 27, 2013
|
||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||
|
(Amounts in thousands)
|
||||||||||||||||||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Total Sales
|
|
||||||||||||||||||
|
November 2
|
October 27,
|
% Over
|
November 2
|
October 27,
|
||||||||||||||||
|
Net Sales by Segment
|
2014
|
2013
|
(Under)
|
2014
|
2013
|
|||||||||||||||
|
Mattress Fabrics
|
$ | 43,038 | 40,331 | 6.7 | % | 58.2 |
%
|
57.1 | % | |||||||||||
|
Upholstery Fabrics
|
30,953 | 30,258 | 2.3 | % | 41.8 |
%
|
42.9 | % | ||||||||||||
|
Net Sales
|
$ | 73,991 | 70,589 | 4.8 | % | 100.0 |
%
|
100.0 | % | |||||||||||
|
Gross Profit by Segment
|
Gross Profit Margin
|
|
||||||||||||||||||
|
Mattress Fabrics
|
$ | 7,324 | 7,322 | 0.0 | % | 17.0 |
%
|
18.2 | % | |||||||||||
|
Upholstery Fabrics
|
4,954 | 4,913 | 0.8 | % | 16.0 |
%
|
16.2 | % | ||||||||||||
|
Gross Profit
|
$ | 12,278 | 12,235 | 0.4 | % | 16.6 |
%
|
17.3 | % | |||||||||||
|
Selling, General and Administrative Expenses by Segment
|
|
Percent of Sales
|
|
|||||||||||||||||
|
Mattress Fabrics
|
$ | 2,592 | 2,620 | (1.1 | ) % | 6.0 |
%
|
6.5 | % | |||||||||||
|
Upholstery Fabrics
|
3,285 | 3,170 | 3.6 | % | 10.6 |
%
|
10.5 | % | ||||||||||||
|
Unallocated Corporate expenses
|
1,502 | 1,410 | 6.5 | % | 2.0 |
%
|
2.0 | % | ||||||||||||
|
Selling, General and Administrative Expenses
|
$ | 7,379 | 7,200 | 2.5 | % | 10.0 |
%
|
10.2 | % | |||||||||||
|
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
|
||||||||||||||||||
|
Mattress Fabrics
|
$ | 4,733 | 4,702 | 0.7 | % | 11.0 |
%
|
11.7 | % | |||||||||||
|
Upholstery Fabrics
|
1,668 | 1,743 | (4.3 | ) % | 5.4 |
%
|
5.8 | % | ||||||||||||
|
Unallocated corporate expenses
|
(1,502 | ) | (1,410 | ) | 6.5 | % | (2.0 |
)%
|
(2.0 | )% | ||||||||||
|
Operating income
|
$ | 4,899 | 5,035 | (2.7 | ) % | 6.6 |
%
|
7.1 | % | |||||||||||
|
Depreciation by Segment
|
||||||||||||||||||||
|
Mattress Fabrics
|
$ | 1,230 | 1,181 | 4.1 | % | |||||||||||||||
|
Upholstery Fabrics
|
184 | 150 | 22.7 | % | ||||||||||||||||
|
Depreciation
|
$ | 1,414 | 1,331 | 6.2 | % | |||||||||||||||
Exhibit 99(b)
Page 6 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
STATEMENTS OF OPERATIONS BY SEGMENT
|
||||||||||||||||||||
|
FOR THE SIX MONTHS ENDED NOVEMBER 2, 2014 AND OCTOBER 27, 2013
|
||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||
|
(Amounts in thousands)
|
||||||||||||||||||||
|
SIX MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Total Sales
|
|||||||||||||||||||
|
November 2,
|
October 27,
|
% Over
|
November 2,
|
October 27,
|
||||||||||||||||
|
Net Sales by Segment
|
2014
|
2013
|
(Under)
|
2014
|
2013
|
|||||||||||||||
|
Mattress Fabrics
|
$ | 85,860 | 78,494 | 9.4 | % | 57.2 | % | 55.8 | % | |||||||||||
|
Upholstery Fabrics
|
64,191 | 62,236 | 3.1 | % | 42.8 | % | 44.2 | % | ||||||||||||
|
Net Sales
|
$ | 150,051 | 140,730 | 6.6 | % | 100.0 | % | 100.0 | % | |||||||||||
|
Gross Profit by Segment
|
Gross Profit Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$ | 14,527 | 14,713 | (1.3 | )% | 16.9 | % | 18.7 | % | |||||||||||
|
Upholstery Fabrics
|
10,466 | 10,595 | (1.2 | )% | 16.3 | % | 17.0 | % | ||||||||||||
|
Gross Profit
|
$ | 24,993 | 25,308 | (1.2 | )% | 16.7 | % | 18.0 | % | |||||||||||
|
Selling, General and Administrative Expenses by Segment
|
Percent of Sales
|
|||||||||||||||||||
|
Mattress Fabrics
|
$ | 5,166 | 4,994 | 3.4 | % | 6.0 | % | 6.4 | % | |||||||||||
|
Upholstery Fabrics
|
6,737 | 6,436 | 4.7 | % | 10.5 | % | 10.3 | % | ||||||||||||
|
Unallocated Corporate expenses
|
2,895 | 2,869 | 0.9 | % | 1.9 | % | 2.0 | % | ||||||||||||
|
Selling, General, and Administrative Expenses
|
$ | 14,798 | 14,299 | 3.5 | % | 9.9 | % | 10.2 | % | |||||||||||
|
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$ | 9,361 | 9,719 | (3.7 | )% | 10.9 | % | 12.4 | % | |||||||||||
|
Upholstery Fabrics
|
3,729 | 4,159 | (10.3 | )% | 5.8 | % | 6.7 | % | ||||||||||||
|
Unallocated corporate expenses
|
(2,895 | ) | (2,869 | ) | 0.9 | % | (1.9 | )% | (2.0 | )% | ||||||||||
|
Operating income
|
$ | 10,195 | 11,009 | (7.4 | )% | 6.8 | % | 7.8 | % | |||||||||||
|
Return on Capital (1)
|
||||||||||||||||||||
|
Mattress Fabrics
|
29.8 | % | 33.0 | % | ||||||||||||||||
|
Upholstery Fabrics
|
42.6 | % | 43.2 | % | ||||||||||||||||
|
Unallocated Corporate
|
N/A | N/A | ||||||||||||||||||
|
Consolidated
|
26.3 | % | 29.0 | % | ||||||||||||||||
|
Capital Employed (2)
|
||||||||||||||||||||
|
Mattress Fabrics
|
62,874 | 58,944 | 6.7 | % | ||||||||||||||||
|
Upholstery Fabrics
|
16,069 | 20,300 | (20.8 | )% | ||||||||||||||||
|
Unallocated Corporate
|
(3,307 | ) | (2,176 | ) | N/A | |||||||||||||||
|
Consolidated
|
75,636 | 77,068 | (1.9 | )% | ||||||||||||||||
|
Depreciation by Segment
|
||||||||||||||||||||
|
Mattress Fabrics
|
$ | 2,448 | 2,331 | 5.0 | % | |||||||||||||||
|
Upholstery Fabrics
|
364 | 305 | 19.3 | % | ||||||||||||||||
|
Depreciation
|
$ | 2,812 | 2,636 | 6.7 | % | |||||||||||||||
|
Notes:
|
|
(1) See pages 8 and 9 of this financial information release for calculations.
|
|
(2) The capital employed balances are as of November 2, 2014 and October 27, 2013.
|
Exhibit 99(b)
Page 7 of 10
| CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA | ||||||||||||||||||||
| FOR THE TWELVE MONTHS ENDED NOVEMBER 2, 2014 AND OCTOBER 27, 2013 | ||||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||||
| (AMOUNTS IN THOUSANDS) | ||||||||||||||||||||
|
Quarter Ended
|
||||||||||||||||||||
|
Trailing 12
|
||||||||||||||||||||
|
Months
|
||||||||||||||||||||
|
1/26/14
|
4/27/2014
|
8/3/2014
|
11/2/2014
|
11/2/2014
|
||||||||||||||||
|
Net income
|
$ | 8,381 | $ | 2,740 | $ | 3,344 | $ | 3,001 | $ | 17,466 | ||||||||||
|
Income taxes
|
(3,807 | ) | 1,380 | 2,115 | 1,889 | 1,577 | ||||||||||||||
|
Interest income, net
|
(57 | ) | (43 | ) | (74 | ) | (153 | ) | (327 | ) | ||||||||||
|
Depreciation and amortization expense
|
1,370 | 1,394 | 1,446 | 1,460 | 5,670 | |||||||||||||||
|
Stock based compensation
|
175 | 159 | 46 | 245 | 625 | |||||||||||||||
|
Adjusted EBITDA
|
$ | 6,062 | $ | 5,630 | $ | 6,877 | $ | 6,442 | $ | 25,011 | ||||||||||
|
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 | ||||||||||
Exhibit 99(b)
Page 8 of 10
| CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||||||||||||||||||||||||||||||
| RETURN ON CAPITAL EMPLOYED BY SEGMENT | ||||||||||||||||||||||||||||||||||||||||||||||||
| FOR THE SIX MONTHS ENDED NOVEMBER 2, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||
| (Amounts in Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||
|
Operating Income
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Six Months
|
Average
|
Return on
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Ended
|
Capital
|
Avg. Capital
|
||||||||||||||||||||||||||||||||||||||||||||||
|
November 2, 2014 (1)
|
Employed (3)
|
Employed (2)
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Mattress Fabrics
|
$ | 9,361 | $ | 62,756 | 29.8 | % | ||||||||||||||||||||||||||||||||||||||||||
|
Upholstery Fabrics
|
3,729 | 17,513 | 42.6 | % | ||||||||||||||||||||||||||||||||||||||||||||
|
(less: Unallocated Corporate)
|
(2,895 | ) | (2,754 | ) | N/A | |||||||||||||||||||||||||||||||||||||||||||
|
Total
|
$ | 10,195 | $ | 77,515 | 26.3 | % | ||||||||||||||||||||||||||||||||||||||||||
|
Average Capital Employed
|
As of the three Months Ended November 2, 2014
|
As of the three Months Ended August 3, 2014
|
As of the three Months Ended April 27, 2014
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||
|
Total assets
|
80,121 | 30,916 | 45,625 | 156,662 | 81,400 | 30,520 | 42,292 | 154,212 | 79,055 | 34,987 | 46,893 | 160,935 | ||||||||||||||||||||||||||||||||||||
|
Total liabilities
|
(17,247 | ) | (14,847 | ) | (12,894 | ) | (44,988 | ) | (18,464 | ) | (11,468 | ) | (15,133 | ) | (45,065 | ) | (16,598 | ) | (17,568 | ) | (15,025 | ) | (49,191 | ) | ||||||||||||||||||||||||
|
Subtotal
|
$ | 62,874 | $ | 16,069 | $ | 32,731 | $ | 111,674 | $ | 62,936 | $ | 19,052 | $ | 27,159 | $ | 109,147 | $ | 62,457 | $ | 17,419 | $ | 31,868 | $ | 111,744 | ||||||||||||||||||||||||
|
Less:
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Cash and cash equivalents
|
- | - | (28,953 | ) | (28,953 | ) | - | - | (24,665 | ) | (24,665 | ) | - | - | (29,303 | ) | (29,303 | ) | ||||||||||||||||||||||||||||||
|
Short-term investments
|
- | - | (6,318 | ) | (6,318 | ) | - | - | (6,311 | ) | (6,311 | ) | - | - | (6,294 | ) | (6,294 | ) | ||||||||||||||||||||||||||||||
|
Long-term investments
|
- | - | (1,911 | ) | (1,911 | ) | - | - | (1,749 | ) | (1,749 | ) | - | - | (765 | ) | (765 | ) | ||||||||||||||||||||||||||||||
|
Income taxes receivable
|
- | - | - | - | - | - | (136 | ) | (136 | ) | - | - | (121 | ) | (121 | ) | ||||||||||||||||||||||||||||||||
|
Deferred income taxes - current
|
- | - | (6,191 | ) | (6,191 | ) | - | - | (6,203 | ) | (6,203 | ) | - | - | (6,230 | ) | (6,230 | ) | ||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
- | - | (508 | ) | (508 | ) | - | - | (973 | ) | (973 | ) | - | - | (2,040 | ) | (2,040 | ) | ||||||||||||||||||||||||||||||
|
Current maturities of long-term debt
|
- | - | 2,200 | 2,200 | - | - | 2,200 | 2,200 | - | - | 2,200 | 2,200 | ||||||||||||||||||||||||||||||||||||
|
Line of credit
|
- | - | - | - | - | - | 569 | 569 | - | - | 586 | 586 | ||||||||||||||||||||||||||||||||||||
|
Income taxes payable - current
|
- | - | 268 | 268 | - | - | 387 | 387 | - | - | 442 | 442 | ||||||||||||||||||||||||||||||||||||
|
Income taxes payable - long-term
|
- | - | 3,980 | 3,980 | - | - | 4,037 | 4,037 | - | - | 3,962 | 3,962 | ||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
- | - | 1,395 | 1,395 | - | - | 1,013 | 1,013 | - | - | 1,013 | 1,013 | ||||||||||||||||||||||||||||||||||||
|
Long-term debt, less current maturities
|
- | - | - | - | - | - | 2,200 | 2,200 | - | - | 2,200 | 2,200 | ||||||||||||||||||||||||||||||||||||
|
Total Capital Employed
|
$ | 62,874 | $ | 16,069 | $ | (3,307 | ) | $ | 75,636 | $ | 62,936 | $ | 19,052 | $ | (2,472 | ) | $ | 79,516 | $ | 62,457 | $ | 17,419 | $ | (2,482 | ) | $ | 77,394 | |||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Average Capital Employed (3)
|
$ | 62,756 | $ | 17,513 | $ | (2,754 | ) | $ | 77,515 | |||||||||||||||||||||||||||||||||||||||
|
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 November 2, 2014 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 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 November 2, 2014, August 3, 2014 and April 27, 2014.
|
|
Exhibit 99(b)
Page 9 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.
|
|
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 SIX MONTHS ENDED NOVEMBER 2, 2014 AND OCTOBER 27, 2013
Unaudited
(Amounts in Thousands)
|
SIX MONTHS ENDED
|
|||||||||
| Amounts | |||||||||
|
November 2,
|
October 27,
|
||||||||
|
2014
|
2013
|
||||||||
|
Consolidated Effective GAAP Income Tax Rate
|
(1) | 38.7 | % | 38.9 | % | ||||
|
Non-Cash U.S. Income Tax Expense
|
(21.9 | )% | (23.0 | )% | |||||
|
Non-Cash Foreign Income Tax Expense
|
(0.7 | )% | (0.3 | )% | |||||
|
Consolidated Adjusted Effective Income Tax Rate
|
(2) | 16.1 | % | 15.6 | % | ||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||||||
|
As reported
|
November 2, 2014
|
As reported
|
October 27, 2013
|
|||||||||||||||||||||
|
November 2,
|
Proforma Net
|
October 27,
|
Proforma Net
|
|||||||||||||||||||||
|
2014
|
Adjustments |
of Adjustments
|
2013
|
Adjustments
|
of Adjustments
|
|||||||||||||||||||
|
Income before income taxes
|
$ | 4,890 | $ | - | $ | 4,890 | $ | 4,814 | $ | 4,814 | ||||||||||||||
|
Income taxes (3)
|
1,889 | $ | (1,102 | ) | 787 | 1,718 | $ | (967 | ) | 751 | ||||||||||||||
|
Net income
|
$ | 3,001 | $ | 1,102 | $ | 4,103 | $ | 3,096 | $ | 967 | $ | 4,063 | ||||||||||||
|
Net income per share-basic
|
$ | 0.25 | $ | 0.09 | $ | 0.34 | $ | 0.25 | $ | 0.08 | $ | 0.33 | ||||||||||||
|
Net income per share-diluted
|
$ | 0.24 | $ | 0.09 | $ | 0.33 | $ | 0.25 | $ | 0.08 | $ | 0.33 | ||||||||||||
|
Average shares outstanding-basic
|
12,218 | 12,218 | 12,218 | 12,183 | 12,183 | 12,183 | ||||||||||||||||||
|
Average shares outstanding-diluted
|
12,401 | 12,401 | 12,401 | 12,389 | 12,389 | 12,389 | ||||||||||||||||||
|
SIX MONTHS ENDED
|
||||||||||||||||||||||||
|
As reported
|
November 2, 2014
|
As reported
|
October 27, 2013
|
|||||||||||||||||||||
|
November 2,
|
Proforma Net
|
October 27,
|
Proforma Net
|
|||||||||||||||||||||
| 2014 |
Adjustments
|
of Adjustments
|
2013 |
Adjustments
|
of Adjustments
|
|||||||||||||||||||
|
Income before income taxes
|
$ | 10,349 | $ | - | $ | 10,349 | $ | 10,349 | $ | - | $ | 10,349 | ||||||||||||
|
Income taxes (3)
|
4,003 | $ | (2,337 | ) | 1,666 | 4,023 | $ | (2,409 | ) | 1,614 | ||||||||||||||
|
Net income
|
$ | 6,346 | $ | 2,337 | $ | 8,683 | $ | 6,326 | $ | 2,409 | $ | 8,735 | ||||||||||||
|
Net income per share-basic
|
$ | 0.52 | $ | 0.19 | $ | 0.71 | $ | 0.52 | $ | 0.20 | $ | 0.72 | ||||||||||||
|
Net income per share-diluted
|
$ | 0.51 | $ | 0.19 | $ | 0.70 | $ | 0.51 | $ | 0.19 | $ | 0.70 | ||||||||||||
|
Average shares outstanding-basic
|
12,215 | 12,215 | 12,215 | 12,165 | 12,165 | 12,165 | ||||||||||||||||||
|
Average shares outstanding-diluted
|
12,403 | 12,403 | 12,403 | 12,391 | 12,391 | 12,391 | ||||||||||||||||||
|
(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.
|