Attached files
| file | filename |
|---|---|
| 8-K - CULP, INC. 8-K - CULP INC | a51230787.htm |
| EX-99.(A) - EXHIBIT 99 (A) - CULP INC | a51230787ex99a.htm |
| Exhibit 99(b) | ||
| Page 1 of 10 |
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
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CONSOLIDATED STATEMENTS OF NET INCOME
|
||||||||||||||||||||
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FOR THREE MONTHS ENDED NOVEMBER 1, 2015 AND NOVEMBER 2, 2014
|
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(UNAUDITED)
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||||||||||||||||||||
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(Amounts in Thousands, Except for Per Share Data)
|
||||||||||||||||||||
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THREE MONTHS ENDED
|
||||||||||||||||||||
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Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
November 1,
|
November 2,
|
% Over
|
November 1,
|
November 2,
|
||||||||||||||||
|
2015
|
2014
|
(Under)
|
2015
|
2014
|
||||||||||||||||
|
Net sales
|
$ | 76,956 | 73,991 | 4.0 | % | 100.0 | % | 100.0 | % | |||||||||||
|
Cost of sales
|
61,223 | 61,713 | (0.8 | )% | 79.6 | % | 83.4 | % | ||||||||||||
|
Gross profit
|
15,733 | 12,278 | 28.1 | % | 20.4 | % | 16.6 | % | ||||||||||||
|
Selling, general and
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||||||||||||||||||||
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administrative expenses
|
9,433 | 7,379 | 27.8 | % | 12.3 | % | 10.0 | % | ||||||||||||
|
Income from operations
|
6,300 | 4,899 | 28.6 | % | 8.2 | % | 6.6 | % | ||||||||||||
|
Interest income
|
(69 | ) | (153 | ) | (54.9 | )% | (0.1 | )% | (0.2 | )% | ||||||||||
|
Other expense
|
225 | 162 | 38.9 | % | 0.3 | % | 0.2 | % | ||||||||||||
|
Income before income taxes
|
6,144 | 4,890 | 25.6 | % | 8.0 | % | 6.6 | % | ||||||||||||
|
Income taxes*
|
2,373 | 1,889 | 25.6 | % | 38.6 | % | 38.6 | % | ||||||||||||
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Net income
|
$ | 3,771 | 3,001 | 25.7 | % | 4.9 | % | 4.1 | % | |||||||||||
|
Net income per share-basic
|
$ | 0.31 | $ | 0.25 | 24.0 | % | ||||||||||||||
|
Net income per share-diluted
|
$ | 0.30 | $ | 0.24 | 25.0 | % | ||||||||||||||
|
Average shares outstanding-basic
|
12,343 | 12,218 | 1.0 | % | ||||||||||||||||
|
Average shares outstanding-diluted
|
12,484 | 12,401 | 0.7 | % | ||||||||||||||||
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PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)
|
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|
THREE MONTHS ENDED
|
||||||||||||||||||||
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Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
November 1,
|
November 2,
|
% Over
|
November 1,
|
November 2,
|
||||||||||||||||
|
2015
|
2014
|
(Under)
|
2015
|
2014
|
||||||||||||||||
|
Income before income taxes (see above)
|
$ | 6,144 | 4,890 | 25.6 | % | 8.0 | % | 6.6 | % | |||||||||||
|
Adjusted Income taxes (2)*
|
965 | 787 | 22.6 | % | 15.7 | % | 16.1 | % | ||||||||||||
|
Adjusted net income
|
5,179 | 4,103 | 26.2 | % | 6.7 | % | 5.5 | % | ||||||||||||
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Adjusted net income per share-basic
|
$ | 0.42 | $ | 0.34 | 23.5 | % | ||||||||||||||
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Adjusted net income per share-diluted
|
$ | 0.41 | $ | 0.33 | 24.2 | % | ||||||||||||||
|
Average shares outstanding-basic
|
12,343 | 12,218 | 1.0 | % | ||||||||||||||||
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Average shares outstanding-diluted
|
12,484 | 12,401 | 0.7 | % | ||||||||||||||||
|
(1) Culp, Inc. currently does not incur cash income tax expense in the US due to its $32.2 million in net operating loss carryforwards as of May 3, 2015. Therefore,
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adjusted net income is calculated using only income tax expense for our subsidiaries located in Canada and China. See reconciliation on
|
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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.
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| Page 2 of 10 |
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
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|
CONSOLIDATED STATEMENTS OF NET INCOME
|
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|
FOR THE SIX MONTHS ENDED NOVEMBER 1, 2015 AND NOVEMBER 2, 2014
|
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|
(UNAUDITED)
|
||||||||||||||||||||
|
(Amounts in Thousands, Except for Per Share Data)
|
||||||||||||||||||||
|
SIX MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
November 1,
|
November 2,
|
% Over
|
November 1,
|
November 2,
|
||||||||||||||||
|
2015
|
2014
|
(Under)
|
2015
|
2014
|
||||||||||||||||
|
Net sales
|
$ | 157,141 | 150,051 | 4.7 | % | 100.0 | % | 100.0 | % | |||||||||||
|
Cost of sales
|
125,206 | 125,058 | 0.1 | % | 79.7 | % | 83.3 | % | ||||||||||||
|
Gross profit
|
31,935 | 24,993 | 27.8 | % | 20.3 | % | 16.7 | % | ||||||||||||
|
Selling, general and
|
||||||||||||||||||||
|
administrative expenses
|
18,175 | 14,798 | 22.8 | % | 11.6 | % | 9.9 | % | ||||||||||||
|
Income from operations
|
13,760 | 10,195 | 35.0 | % | 8.8 | % | 6.8 | % | ||||||||||||
|
Interest expense
|
- | 67 | (100.0 | )% | 0.0 | % | 0.0 | % | ||||||||||||
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Interest income
|
(112 | ) | (294 | ) | (61.9 | )% | (0.1 | )% | (0.2 | )% | ||||||||||
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Other expense
|
320 | 73 | 338.4 | % | 0.2 | % | 0.0 | % | ||||||||||||
|
Income before income taxes
|
13,552 | 10,349 | 30.9 | % | 8.6 | % | 6.9 | % | ||||||||||||
|
Income taxes*
|
5,081 | 4,003 | 26.9 | % | 37.5 | % | 38.7 | % | ||||||||||||
|
Net income
|
$ | 8,471 | 6,346 | 33.5 | % | 5.4 | % | 4.2 | % | |||||||||||
|
Net income per share-basic
|
$ | 0.69 | $ | 0.52 | 32.7 | % | ||||||||||||||
|
Net income per share-diluted
|
$ | 0.68 | $ | 0.51 | 33.3 | % | ||||||||||||||
|
Average shares outstanding-basic
|
12,310 | 12,215 | 0.8 | % | ||||||||||||||||
|
Average shares outstanding-diluted
|
12,481 | 12,403 | 0.6 | % | ||||||||||||||||
|
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)
|
||||||||||||||||||||
|
SIX MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
November 1,
|
November 2,
|
% Over
|
November 1,
|
November 2,
|
||||||||||||||||
|
2015
|
2014
|
(Under)
|
2015
|
2014
|
||||||||||||||||
|
Income before income taxes (see above)
|
$ | 13,552 | 10,349 | 30.9 | % | 8.6 | % | 6.9 | % | |||||||||||
|
Adjusted Income taxes (2)*
|
2,128 | 1,666 | 27.7 | % | 15.7 | % | 16.1 | % | ||||||||||||
|
Adjusted net income
|
11,424 | 8,683 | 31.6 | % | 7.3 | % | 5.8 | % | ||||||||||||
|
Adjusted net income per share-basic
|
$ | 0.93 | $ | 0.71 | 31.0 | % | ||||||||||||||
|
Adjusted net income per share-diluted
|
$ | 0.92 | $ | 0.70 | 31.4 | % | ||||||||||||||
|
Average shares outstanding-basic
|
12,310 | 12,215 | 0.8 | % | ||||||||||||||||
|
Average shares outstanding-diluted
|
12,481 | 12,403 | 0.6 | % | ||||||||||||||||
|
(1) Culp, Inc. currently does not incur cash income tax expense in the US due to its $32.2 million in net operating loss carryforwards as of May 3, 2015. Therefore,
|
||||||||||||||||||||
|
adjusted net income is calculated using only income tax expense for our subsidiaries located in Canada and China. See reconciliation on
|
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|
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.
|
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|
* Percent of sales column for income taxes is calculated as a % of income before income taxes.
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| Page 3 of 10 |
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
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CONSOLIDATED BALANCE SHEETS
|
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NOVEMBER 1, 2015, NOVEMBER 2, 2014, AND MAY 3, 2015
|
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|
Unaudited
|
||||||||||||||||||||
|
(Amounts in Thousands)
|
||||||||||||||||||||
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Amounts
|
Increase
|
|||||||||||||||||||
|
November 1,
|
November 2,
|
(Decrease)
|
* May 3,
|
|||||||||||||||||
|
2015
|
2014
|
Dollars
|
Percent
|
2015
|
||||||||||||||||
|
Current assets
|
||||||||||||||||||||
|
Cash and cash equivalents
|
$ | 31,176 | 28,953 | 2,223 | 7.7 | % | 29,725 | |||||||||||||
|
Short-term investments
|
6,320 | 6,318 | 2 | 0.0 | % | 10,004 | ||||||||||||||
|
Accounts receivable
|
23,314 | 25,045 | (1,731 | ) | (6.9 | )% | 28,749 | |||||||||||||
|
Inventories
|
46,479 | 38,228 | 8,251 | 21.6 | % | 42,484 | ||||||||||||||
|
Deferred income taxes
|
7,754 | 6,191 | 1,563 | 25.2 | % | 4,790 | ||||||||||||||
|
Income taxes receivable
|
75 | - | 75 | 100.0 | % | 229 | ||||||||||||||
|
Other current assets
|
2,614 | 2,303 | 311 | 13.5 | % | 2,440 | ||||||||||||||
|
Total current assets
|
117,732 | 107,038 | 10,694 | 10.0 | % | 118,421 | ||||||||||||||
|
Property, plant & equipment, net
|
38,319 | 33,204 | 5,115 | 15.4 | % | 36,078 | ||||||||||||||
|
Goodwill
|
11,462 | 11,462 | - | 0.0 | % | 11,462 | ||||||||||||||
|
Deferred income taxes
|
382 | 508 | (126 | ) | (24.8 | )% | 447 | |||||||||||||
|
Long-term Investments
|
3,279 | 1,911 | 1,368 | 71.6 | % | 2,415 | ||||||||||||||
|
Other assets
|
2,494 | 2,539 | (45 | ) | (1.8 | )% | 2,545 | |||||||||||||
|
Total assets
|
$ | 173,668 | 156,662 | 17,006 | 10.9 | % | 171,368 | |||||||||||||
|
Current liabilities
|
||||||||||||||||||||
|
Current maturities of long-term debt
|
$ | - | 2,200 | (2,200 | ) | (100.0 | )% | 2,200 | ||||||||||||
|
Accounts payable - trade
|
25,221 | 25,450 | (229 | ) | (0.9 | )% | 28,414 | |||||||||||||
|
Accounts payable - capital expenditures
|
1,269 | 178 | 1,091 | 612.9 | % | 990 | ||||||||||||||
|
Accrued expenses
|
9,895 | 7,723 | 2,172 | 28.1 | % | 11,129 | ||||||||||||||
|
Income taxes payable - current
|
305 | 268 | 37 | 13.8 | % | 325 | ||||||||||||||
|
Total current liabilities
|
36,690 | 35,819 | 871 | 2.4 | % | 43,058 | ||||||||||||||
|
Income taxes payable - long-term
|
3,655 | 3,980 | (325 | ) | (8.2 | )% | 3,792 | |||||||||||||
|
Deferred income taxes
|
5,927 | 1,395 | 4,532 | 324.9 | % | 1,050 | ||||||||||||||
|
Deferred compensation
|
4,421 | 3,794 | 627 | 16.5 | % | 4,041 | ||||||||||||||
|
Total liabilities
|
50,693 | 44,988 | 5,705 | 12.7 | % | 51,941 | ||||||||||||||
|
Shareholders' equity
|
122,975 | 111,674 | 11,301 | 10.1 | % | 119,427 | ||||||||||||||
|
Total liabilities and
|
||||||||||||||||||||
|
shareholders' equity
|
$ | 173,668 | 156,662 | 17,006 | 10.9 | % | 171,368 | |||||||||||||
|
Shares outstanding
|
12,350 | 12,219 | 131 | 1.1 | % | 12,219 | ||||||||||||||
|
* Derived from audited financial statements.
|
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| Page 4 of 10 |
| CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
|
FOR THE SIX MONTHS ENDED NOVEMBER 1, 2015 AND NOVEMBER 2, 2014
|
||||||||
|
Unaudited
|
||||||||
|
(Amounts in Thousands)
|
||||||||
|
SIX MONTHS ENDED
|
||||||||
|
Amounts
|
||||||||
|
November 1,
|
November 2,
|
|||||||
|
2015
|
2014
|
|||||||
|
Cash flows from operating activities:
|
|
|||||||
|
Net income
|
$ | 8,471 | 6,346 | |||||
|
Adjustments to reconcile net income to net cash
|
||||||||
|
provided by operating activities:
|
||||||||
|
Depreciation
|
3,184 | 2,812 | ||||||
|
Amortization of other assets
|
86 | 94 | ||||||
|
Stock-based compensation
|
1,339 | 291 | ||||||
|
Deferred income taxes
|
2,816 | 2,061 | ||||||
|
Gain on sale of equipment
|
(60 | ) | (35 | ) | ||||
|
Realized loss on sale of short-term investments
|
56 | - | ||||||
|
Excess tax benefits related to stock-based compensation
|
(838 | ) | (108 | ) | ||||
|
Foreign currency exchange gains
|
(13 | ) | (171 | ) | ||||
|
Changes in assets and liabilities:
|
||||||||
|
Accounts receivable
|
4,892 | 2,360 | ||||||
|
Inventories
|
(4,135 | ) | 2,467 | |||||
|
Other current assets
|
(302 | ) | 34 | |||||
|
Other assets
|
8 | (36 | ) | |||||
|
Accounts payable
|
(2,921 | ) | (1,275 | ) | ||||
|
Accrued expenses and deferrred compensation
|
(1,547 | ) | (324 | ) | ||||
|
Income taxes
|
168 | 22 | ||||||
|
Net cash provided by operating activities
|
11,204 | 14,538 | ||||||
|
Cash flows from investing activities:
|
||||||||
|
Capital expenditures
|
(5,255 | ) | (5,087 | ) | ||||
|
Proceeds from the sale of equipment
|
225 | 391 | ||||||
|
Proceeds from life insurance policies
|
- | 320 | ||||||
|
Proceeds from the sale of short-term investments
|
3,612 | 1,628 | ||||||
|
Purchase of short-term investments
|
(46 | ) | (1,675 | ) | ||||
|
Purchase of long-term investments
|
(864 | ) | (1,146 | ) | ||||
|
Net cash used in investing activities
|
(2,328 | ) | (5,569 | ) | ||||
|
Cash flows from financing activities:
|
||||||||
|
Payments on line of credit
|
- | (538 | ) | |||||
|
Payments on long-term debt
|
(2,200 | ) | (2,200 | ) | ||||
|
Repurchase of common stock
|
- | (745 | ) | |||||
|
Dividends paid
|
(6,417 | ) | (6,113 | ) | ||||
|
Payments on debt issuance costs
|
(43 | ) | - | |||||
|
Proceeds from common stock issued
|
126 | 89 | ||||||
|
Excess tax benefits related to stock-based compensation
|
838 | 108 | ||||||
|
Net cash used in financing activities
|
(7,696 | ) | (9,399 | ) | ||||
|
Effect of exchange rate changes on cash and cash equivalents
|
271 | 80 | ||||||
|
Increase (decrease) in cash and cash equivalents
|
1,451 | (350 | ) | |||||
|
Cash and cash equivalents at beginning of period
|
29,725 | 29,303 | ||||||
|
Cash and cash equivalents at end of period
|
$ | 31,176 | 28,953 | |||||
|
Free Cash Flow (1)
|
$ | 6,419 | 9,204 | |||||
|
(1) Free Cash Flow reconciliation is as follows:
|
||||||||||
|
FY 2016
|
FY 2015
|
|||||||||
| A | ) |
Net cash provided by operating activities
|
$ | 11,204 | 14,538 | |||||
| B | ) |
Minus: Capital Expenditures
|
(5,255 | ) | (5,087 | ) | ||||
| C | ) |
Add: Proceeds from the sale of equipment
|
225 | 391 | ||||||
| D | ) |
Add: Proceeds from life insurance policies
|
- | 320 | ||||||
| E | ) |
Add: Excess tax benefits related to stock-based compensation
|
838 | 108 | ||||||
| F | ) |
Minus: Purchase of long-term investments
|
(864 | ) | (1,146 | ) | ||||
| G | ) |
Effects of exchange rate changes on cash and cash equivalents
|
271 | 80 | ||||||
| $ | 6,419 | 9,204 | ||||||||
| Page 5 of 10 |
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
STATEMENTS OF OPERATIONS BY SEGMENT
|
||||||||||||||||||||
|
FOR THE THREE MONTHS ENDED NOVEMBER 1, 2015 AND NOVEMBER 2, 2014
|
||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||
|
(Amounts in thousands)
|
||||||||||||||||||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Total Sales
|
|||||||||||||||||||
|
November 1,
|
November 2,
|
% Over
|
November 1,
|
November 2,
|
||||||||||||||||
|
Net Sales by Segment
|
2015
|
2014
|
(Under)
|
2015
|
2014
|
|||||||||||||||
|
Mattress Fabrics
|
$ | 45,436 | 43,038 | 5.6 | % | 59.0 | % | 58.2 | % | |||||||||||
|
Upholstery Fabrics
|
31,520 | 30,953 | 1.8 | % | 41.0 | % | 41.8 | % | ||||||||||||
|
Net Sales
|
$ | 76,956 | 73,991 | 4.0 | % | 100.0 | % | 100.0 | % | |||||||||||
|
Gross Profit by Segment
|
Gross Profit Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$ | 9,456 | 7,324 | 29.1 | % | 20.8 | % | 17.0 | % | |||||||||||
|
Upholstery Fabrics
|
6,277 | 4,954 | 26.7 | % | 19.9 | % | 16.0 | % | ||||||||||||
|
Gross Profit
|
$ | 15,733 | 12,278 | 28.1 | % | 20.4 | % | 16.6 | % | |||||||||||
| Selling, General and Administrative Expenses by Segment |
Percent of Sales
|
|||||||||||||||||||
|
Mattress Fabrics
|
$ | 2,989 | 2,592 | 15.3 | % | 6.6 | % | 6.0 | % | |||||||||||
|
Upholstery Fabrics
|
3,813 | 3,285 | 16.1 | % | 12.1 | % | 10.6 | % | ||||||||||||
|
Unallocated Corporate expenses
|
2,631 | 1,502 | 75.2 | % | 3.4 | % | 2.0 | % | ||||||||||||
|
Selling, General and Administrative Expenses
|
$ | 9,433 | 7,379 | 27.8 | % | 12.3 | % | 10.0 | % | |||||||||||
|
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$ | 6,467 | 4,733 | 36.6 | % | 14.2 | % | 11.0 | % | |||||||||||
|
Upholstery Fabrics
|
2,464 | 1,668 | 47.7 | % | 7.8 | % | 5.4 | % | ||||||||||||
|
Unallocated corporate expenses
|
(2,631 | ) | (1,502 | ) | 75.2 | % | (3.4 | ) % | (2.0 | ) % | ||||||||||
|
Operating income
|
$ | 6,300 | 4,899 | 28.6 | % | 8.2 | % | 6.6 | % | |||||||||||
|
Depreciation by Segment
|
||||||||||||||||||||
|
Mattress Fabrics
|
$ | 1,424 | 1,230 | 15.8 | % | |||||||||||||||
|
Upholstery Fabrics
|
205 | 184 | 11.4 | % | ||||||||||||||||
|
Depreciation
|
$ | 1,629 | 1,414 | 15.2 | % | |||||||||||||||
| Page 6 of 10 |
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
STATEMENTS OF OPERATIONS BY SEGMENT
|
||||||||||||||||||||
|
FOR THE SIX MONTHS ENDED NOVEMBER 1, 2015 AND NOVEMBER 2, 2014
|
||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||
|
(Amounts in thousands)
|
||||||||||||||||||||
|
SIX MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Total Sales
|
|||||||||||||||||||
|
November 1,
|
November 2,
|
% Over
|
November 1,
|
November 2,
|
||||||||||||||||
|
Net Sales by Segment
|
2015
|
2014
|
(Under)
|
2015
|
2014
|
|||||||||||||||
|
Mattress Fabrics
|
$ | 93,245 | 85,860 | 8.6 | % | 59.3 | % | 57.2 | % | |||||||||||
|
Upholstery Fabrics
|
63,896 | 64,191 | (0.5 | ) % | 40.7 | % | 42.8 | % | ||||||||||||
|
Net Sales
|
$ | 157,141 | 150,051 | 4.7 | % | 100.0 | % | 100.0 | % | |||||||||||
|
Gross Profit by Segment
|
Gross Profit Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$ | 19,381 | 14,527 | 33.4 | % | 20.8 | % | 16.9 | % | |||||||||||
|
Upholstery Fabrics
|
12,554 | 10,466 | 20.0 | % | 19.6 | % | 16.3 | % | ||||||||||||
|
Gross Profit
|
$ | 31,935 | 24,993 | 27.8 | % | 20.3 | % | 16.7 | % | |||||||||||
| Selling, General and Administrative Expenses by Segment | Percent of Sales | |||||||||||||||||||
|
Mattress Fabrics
|
$ | 5,912 | 5,166 | 14.4 | % | 6.3 | % | 6.0 | % | |||||||||||
|
Upholstery Fabrics
|
7,409 | 6,737 | 10.0 | % | 11.6 | % | 10.5 | % | ||||||||||||
|
Unallocated Corporate expenses
|
4,854 | 2,895 | 67.7 | % | 3.1 | % | 1.9 | % | ||||||||||||
|
Selling, General, and Administrative Expenses
|
$ | 18,175 | 14,798 | 22.8 | % | 11.6 | % | 9.9 | % | |||||||||||
|
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$ | 13,468 | 9,361 | 43.9 | % | 14.4 | % | 10.9 | % | |||||||||||
|
Upholstery Fabrics
|
5,146 | 3,729 | 38.0 | % | 8.1 | % | 5.8 | % | ||||||||||||
|
Unallocated corporate expenses
|
(4,854 | ) | (2,895 | ) | 67.7 | % | (3.1 | ) % | (1.9 | )% | ||||||||||
|
Operating income
|
$ | 13,760 | 10,195 | 35.0 | % | 8.8 | % | 6.8 | % | |||||||||||
|
Return on Capital (1)
|
||||||||||||||||||||
|
Mattress Fabrics
|
37.9 | % | 29.8 | % | ||||||||||||||||
|
Upholstery Fabrics
|
61.7 | % | 42.6 | % | ||||||||||||||||
|
Unallocated Corporate
|
N/A | N/A | ||||||||||||||||||
|
Consolidated
|
31.5 | % | 25.2 | % | ||||||||||||||||
|
Capital Employed (2)
|
||||||||||||||||||||
|
Mattress Fabrics
|
71,502 | 62,874 | 13.7 | % | ||||||||||||||||
|
Upholstery Fabrics
|
17,058 | 16,069 | 6.2 | % | ||||||||||||||||
|
Unallocated Corporate
|
(263 | ) | 487 | N/A | ||||||||||||||||
|
Consolidated
|
88,297 | 79,430 | 11.2 | % | ||||||||||||||||
|
Depreciation by Segment
|
||||||||||||||||||||
|
Mattress Fabrics
|
$ | 2,783 | 2,448 | 13.7 | % | |||||||||||||||
|
Upholstery Fabrics
|
401 | 364 | 10.2 | % | ||||||||||||||||
|
Depreciation
|
$ | 3,184 | 2,812 | 13.2 | % | |||||||||||||||
|
Notes:
|
||||||||||||||||||||
|
(1) See pages 8 and 9 of this financial information release for calculations.
|
||||||||||||||||||||
|
(2) The capital employed balances are as of November 1, 2015 and November 2, 2014.
|
||||||||||||||||||||
| Page 7 of 10 |
| CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA | ||||||||||||||||||||
| FOR THE TWELVE MONTHS ENDED NOVEMBER 1, 2015 AND NOVEMBER 2, 2014 | ||||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||||
| (AMOUNTS IN THOUSANDS) | ||||||||||||||||||||
|
Quarter Ended
|
||||||||||||||||||||
|
Trailing 12
|
||||||||||||||||||||
|
Months
|
||||||||||||||||||||
|
2/1/2015
|
5/3/2015
|
8/2/2015
|
11/1/2015
|
11/1/2015
|
||||||||||||||||
|
Net income
|
$ | 3,812 | $ | 4,913 | $ | 4,701 | $ | 3,771 | $ | 17,197 | ||||||||||
|
Income taxes
|
2,110 | 1,772 | 2,707 | 2,373 | 8,962 | |||||||||||||||
|
Interest income, net
|
(202 | ) | (128 | ) | (42 | ) | (69 | ) | (441 | ) | ||||||||||
|
Depreciation and amortization expense
|
1,478 | 1,576 | 1,602 | 1,668 | 6,324 | |||||||||||||||
|
Stock based compensation
|
191 | 304 | 265 | 1,074 | 1,834 | |||||||||||||||
|
Adjusted EBITDA
|
$ | 7,389 | $ | 8,437 | $ | 9,233 | $ | 8,817 | $ | 33,876 | ||||||||||
|
Quarter Ended
|
||||||||||||||||||||
|
Trailing 12
|
||||||||||||||||||||
|
Months
|
||||||||||||||||||||
|
1/26/2014
|
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 | ||||||||||
|
% Over (Under)
|
21.9 | % | 49.9 | % | 34.3 | % | 36.9 | % | 35.4 | % | ||||||||||
| Page 8 of 10 |
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
|
|
RETURN ON CAPITAL EMPLOYED BY SEGMENT
|
|
|
FOR THE SIX MONTHS ENDED NOVEMBER 1, 2015
|
|
|
(Amounts in Thousands)
|
|
|
(Unaudited)
|
| Operating Income | ||||||||||||||||||||||||||||||||||||||
|
Six Months
|
Average
|
Return on
|
||||||||||||||||||||||||||||||||||||
|
Ended
|
Capital
|
Avg. Capital
|
||||||||||||||||||||||||||||||||||||
|
November 1, 2015 (1)
|
Employed (3)
|
Employed (2)
|
||||||||||||||||||||||||||||||||||||
|
Mattress Fabrics
|
$ | 13,468 | $ | 71,108 | 37.9 | % | ||||||||||||||||||||||||||||||||
|
Upholstery Fabrics
|
5,146 | 16,677 | 61.7 | % | ||||||||||||||||||||||||||||||||||
|
(less: Unallocated Corporate)
|
(4,854 | ) | (413 | ) | N/A | |||||||||||||||||||||||||||||||||
|
Total
|
$ | 13,760 | $ | 87,372 | 31.5 | % | ||||||||||||||||||||||||||||||||
|
Average Capital Employed
|
As of the three Months Ended November 1, 2015
|
As of the three Months Ended August 2, 2015
|
As of the three Months Ended May 3, 2015
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||
|
Total assets
|
90,730 | 32,187 | 50,751 | 173,668 | 91,614 | 33,795 | 44,463 | 169,872 | 89,066 | 32,838 | 49,464 | 171,368 | ||||||||||||||||||||||||||||||||||||
|
Total liabilities
|
(19,228 | ) | (15,129 | ) | (16,336 | ) | (50,693 | ) | (20,265 | ) | (14,849 | ) | (16,033 | ) | (51,147 | ) | (18,594 | ) | (18,812 | ) | (14,535 | ) | (51,941 | ) | ||||||||||||||||||||||||
|
Subtotal
|
$ | 71,502 | $ | 17,058 | $ | 34,415 | $ | 122,975 | $ | 71,349 | $ | 18,946 | $ | 28,430 | $ | 118,725 | $ | 70,472 | $ | 14,026 | $ | 34,929 | $ | 119,427 | ||||||||||||||||||||||||
|
Less:
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Cash and cash equivalents
|
- | - | (31,176 | ) | (31,176 | ) | - | - | (25,933 | ) | (25,933 | ) | - | - | (29,725 | ) | (29,725 | ) | ||||||||||||||||||||||||||||||
|
Short-term investments
|
- | - | (6,320 | ) | (6,320 | ) | - | - | (6,336 | ) | (6,336 | ) | - | - | (10,004 | ) | (10,004 | ) | ||||||||||||||||||||||||||||||
|
Long-term investments
|
- | - | (3,279 | ) | (3,279 | ) | - | - | (2,893 | ) | (2,893 | ) | - | - | (2,415 | ) | (2,415 | ) | ||||||||||||||||||||||||||||||
|
Income taxes receivable
|
- | - | (75 | ) | (75 | ) | - | - | (142 | ) | (142 | ) | - | - | (229 | ) | (229 | ) | ||||||||||||||||||||||||||||||
|
Deferred income taxes - current
|
- | - | (7,754 | ) | (7,754 | ) | - | - | (6,986 | ) | (6,986 | ) | - | - | (4,790 | ) | (4,790 | ) | ||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
- | - | (382 | ) | (382 | ) | - | - | (412 | ) | (412 | ) | - | - | (447 | ) | (447 | ) | ||||||||||||||||||||||||||||||
|
Current maturities of long-term debt
|
- | - | - | - | - | - | 2,200 | 2,200 | - | - | 2,200 | 2,200 | ||||||||||||||||||||||||||||||||||||
|
Income taxes payable - current
|
- | - | 305 | 305 | - | - | 392 | 392 | - | - | 325 | 325 | ||||||||||||||||||||||||||||||||||||
|
Income taxes payable - long-term
|
- | - | 3,655 | 3,655 | - | - | 3,634 | 3,634 | - | - | 3,792 | 3,792 | ||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
- | - | 5,927 | 5,927 | - | - | 4,064 | 4,064 | - | - | 1,050 | 1,050 | ||||||||||||||||||||||||||||||||||||
|
Deferred compensation
|
- | - | 4,421 | 4,421 | - | - | 4,280 | 4,280 | - | - | 4,041 | 4,041 | ||||||||||||||||||||||||||||||||||||
|
Total Capital Employed
|
$ | 71,502 | $ | 17,058 | $ | (263 | ) | $ | 88,297 | $ | 71,349 | $ | 18,946 | $ | 298 | $ | 90,593 | $ | 70,472 | $ | 14,026 | $ | (1,273 | ) | $ | 83,225 | ||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Average Capital Employed (3)
|
$ | 71,108 | $ | 16,677 | $ | (413 | ) | $ | 87,372 | |||||||||||||||||||||||||||||||||||||||
|
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 1, 2015 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, current maturities of long-term debt, current and noncurrent deferred tax assets and liabilities,
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
income taxes receivable and payable, and deferred compensation.
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
(3) Average capital employed was computed using the three periods ending November 1, 2015, August 2, 2015 and May 3, 2015.
|
||||||||||||||||||||||||||||||||||||||||||||||||
| Page 9 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 | ) | 603 | N/A | |||||||||
|
Total
|
$ | 10,195 | $ | 80,872 | 25.2 | % | |||||||
|
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 | ||||||||||||||||||||||||||||||||||||
|
Deferred compensation
|
- | - | 3,794 | 3,794 | - | - | 3,632 | 3,632 | - | - | 2,644 | 2,644 | ||||||||||||||||||||||||||||||||||||
|
Long-term debt, less current maturities
|
- | - | - | - | - | - | 2,200 | 2,200 | - | - | 2,200 | 2,200 | ||||||||||||||||||||||||||||||||||||
|
Total Capital Employed
|
$ | 62,874 | $ | 16,069 | $ | 487 | $ | 79,430 | $ | 62,936 | $ | 19,052 | $ | 1,160 | $ | 83,148 | $ | 62,457 | $ | 17,419 | $ | 162 | $ | 80,038 | ||||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Average Capital Employed (3)
|
$ | 62,756 | $ | 17,513 | $ | 603 | $ | 80,872 | ||||||||||||||||||||||||||||||||||||||||
|
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,
|
||||||||
|
income taxes payable and receivable, and deferred compensation.
|
||||||||
|
(3) Average capital employed was computed using the three periods ending November 2, 2014, August 3, 2014 and April 27, 2014.
|
||||||||
| Page 10 of 10 |
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
|
|
CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE, NET INCOME AND EARNINGS PERSHARE
|
|
|
FOR THE SIX MONTHS ENDED NOVEMBER 1, 2015 AND NOVEMBER 2, 2014
|
|
|
(Unaudited)
|
|
|
(Amounts in Thousands)
|
|
SIX MONTHS ENDED
|
||||||||||
| Amounts | ||||||||||
|
November 1,
|
November 2,
|
|||||||||
|
2015
|
2014
|
|||||||||
|
Consolidated Effective GAAP Income Tax Rate
|
(1 | ) | 37.5 | % | 38.7 | % | ||||
|
Non-Cash U.S. Income Tax Expense
|
(21.5 | )% | (21.9 | )% | ||||||
|
Non-Cash Foreign Income Tax Expense
|
(0.3 | )% | (0.7 | )% | ||||||
|
Consolidated Adjusted Effective Income Tax Rate
|
(2 | ) | 15.7 | % | 16.1 | % | ||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||||||
| As reported |
|
November 1, 2015
|
As reported |
November 2, 2014
|
||||||||||||||||||||
|
November 1,
|
Proforma Net
|
November 2,
|
Proforma Net
|
|||||||||||||||||||||
|
2015
|
Adjustments
|
of Adjustments
|
2014
|
Adjustments
|
of Adjustments
|
|||||||||||||||||||
|
Income before income taxes
|
$ | 6,144 | $ | - | $ | 6,144 | $ | 4,890 | $ | 4,890 | ||||||||||||||
|
Income taxes (3)
|
2,373 | $ | (1,408 | ) | 965 | 1,889 | $ | (1,102 | ) | 787 | ||||||||||||||
|
Net income
|
$ | 3,771 | $ | 1,408 | $ | 5,179 | $ | 3,001 | $ | 1,102 | $ | 4,103 | ||||||||||||
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Net income per share-basic
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$ | 0.31 | $ | 0.11 | $ | 0.42 | $ | 0.25 | $ | 0.09 | $ | 0.34 | ||||||||||||
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Net income per share-diluted
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$ | 0.30 | $ | 0.11 | $ | 0.41 | $ | 0.24 | $ | 0.09 | $ | 0.33 | ||||||||||||
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Average shares outstanding-basic
|
12,343 | 12,343 | 12,343 | 12,218 | 12,218 | 12,218 | ||||||||||||||||||
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Average shares outstanding-diluted
|
12,484 | 12,484 | 12,484 | 12,401 | 12,401 | 12,401 | ||||||||||||||||||
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SIX MONTHS ENDED
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| As reported |
|
November 1, 2015
|
As reported |
|
November 2, 2014
|
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|
November 1,
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Proforma Net
|
November 2,
|
Proforma Net
|
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| 2015 |
Adjustments
|
of Adjustments
|
2014 |
Adjustments
|
of Adjustments
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Income before income taxes
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$ | 13,552 | $ | - | $ | 13,552 | $ | 10,349 | $ | - | $ | 10,349 | ||||||||||||
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Income taxes (3)
|
5,081 | $ | (2,953 | ) | 2,128 | 4,003 | $ | (2,337 | ) | 1,666 | ||||||||||||||
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Net income
|
$ | 8,471 | $ | 2,953 | $ | 11,424 | $ | 6,346 | $ | 2,337 | $ | 8,683 | ||||||||||||
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Net income per share-basic
|
$ | 0.69 | $ | 0.24 | $ | 0.93 | $ | 0.52 | $ | 0.19 | $ | 0.71 | ||||||||||||
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Net income per share-diluted
|
$ | 0.68 | $ | 0.24 | $ | 0.92 | $ | 0.51 | $ | 0.19 | $ | 0.70 | ||||||||||||
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Average shares outstanding-basic
|
12,310 | 12,310 | 12,310 | 12,215 | 12,215 | 12,215 | ||||||||||||||||||
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Average shares outstanding-diluted
|
12,481 | 12,481 | 12,481 | 12,403 | 12,403 | 12,403 | ||||||||||||||||||
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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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