Attached files
| file | filename |
|---|---|
| EX-99.A - EXHIBIT 99(A) - CULP INC | a51359691ex99a.htm |
| 8-K - CULP, INC. 8-K - CULP INC | a51359691.htm |
Exhibit 99(b)
Page 1 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF NET INCOME
|
||||||||||||||||||||
|
FOR THREE MONTHS ENDED MAY 1, 2016 AND MAY 3, 2015
|
||||||||||||||||||||
|
(UNAUDITED)
|
||||||||||||||||||||
|
(Amounts in Thousands, Except for Per Share Data)
|
||||||||||||||||||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
May 1,
|
May 3,
|
% Over
|
May 1,
|
May 3,
|
||||||||||||||||
|
2016
|
2015
|
(Under)
|
2016
|
2015
|
||||||||||||||||
|
Net sales
|
$
|
77,253
|
78,846
|
(2.0
|
)%
|
100.0
|
%
|
100.0
|
%
|
|||||||||||
|
Cost of sales
|
60,640
|
62,674
|
(3.2
|
)%
|
78.5
|
%
|
79.5
|
%
|
||||||||||||
|
Gross profit
|
16,613
|
16,172
|
2.7
|
%
|
21.5
|
%
|
20.5
|
%
|
||||||||||||
|
Selling, general and
|
||||||||||||||||||||
|
administrative expenses
|
9,261
|
9,605
|
(3.6
|
)%
|
12.0
|
%
|
12.2
|
%
|
||||||||||||
|
Income from operations
|
7,352
|
6,567
|
12.0
|
%
|
9.5
|
%
|
8.3
|
%
|
||||||||||||
|
Interest expense
|
-
|
15
|
(100.0
|
)%
|
0.0
|
%
|
0.0
|
%
|
||||||||||||
|
Interest income
|
(26
|
)
|
(143
|
)
|
(81.8
|
)%
|
(0.0
|
)%
|
(0.2
|
)%
|
||||||||||
|
Other expense
|
211
|
10
|
N.M.
|
0.3
|
%
|
0.0
|
%
|
|||||||||||||
|
Income before income taxes
|
7,167
|
6,685
|
7.2
|
%
|
9.3
|
%
|
8.5
|
%
|
||||||||||||
|
Income taxes*
|
3,566
|
1,772
|
101.2
|
%
|
49.8
|
%
|
26.5
|
%
|
||||||||||||
|
Net income
|
$
|
3,601
|
4,913
|
(26.7
|
)%
|
4.7
|
%
|
6.2
|
%
|
|||||||||||
|
Net income per share-basic
|
$
|
0.29
|
$
|
0.40
|
(27.5
|
)%
|
||||||||||||||
|
Net income per share-diluted
|
$
|
0.29
|
$
|
0.39
|
(25.6
|
)%
|
||||||||||||||
|
Average shares outstanding-basic
|
12,257
|
12,219
|
0.3
|
%
|
||||||||||||||||
|
Average shares outstanding-diluted
|
12,434
|
12,440
|
(0.0
|
)%
|
||||||||||||||||
|
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)
|
||||||||||||||||||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
May 1,
|
May 3,
|
% Over
|
May 1,
|
May 3,
|
||||||||||||||||
|
2016
|
2015
|
(Under)
|
2016
|
2015
|
||||||||||||||||
|
Income before income taxes (see above)
|
$
|
7,167
|
6,685
|
7.2
|
%
|
9.3
|
%
|
8.5
|
%
|
|||||||||||
|
Adjusted Income taxes (2)*
|
1,333
|
1,050
|
27.0
|
%
|
18.6
|
%
|
15.7
|
%
|
||||||||||||
|
Adjusted net income
|
5,834
|
5,635
|
3.5
|
%
|
7.6
|
%
|
7.1
|
%
|
||||||||||||
|
Adjusted net income per share-basic
|
$
|
0.48
|
$
|
0.46
|
4.3
|
%
|
||||||||||||||
|
Adjusted net income per share-diluted
|
$
|
0.47
|
$
|
0.45
|
4.4
|
%
|
||||||||||||||
|
Average shares outstanding-basic
|
12,257
|
12,219
|
0.3
|
%
|
||||||||||||||||
|
Average shares outstanding-diluted
|
12,434
|
12,440 | (0.0 | )% | ||||||||||||||||
|
(1) Culp, Inc. currently does not incur cash income tax expense in the US and has an estimated $18.0 million in net operating loss carryforwards as of May 1, 2016.
|
||||||||||||||||||||
|
Therefore, adjusted net income is calculated using only income tax expense for our subsidiaries located in Canada and China. See reconciliation on
|
||||||||||||||||||||
|
page 10 of 10.
|
||||||||||||||||||||
|
(2) Represents estimated income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 10 of 10.
|
||||||||||||||||||||
|
* Percent of sales column for income taxes is calculated as a % of income before income taxes.
|
||||||||||||||||||||
Page 2 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF NET INCOME
|
||||||||||||||||||||
|
FOR THE TWELVE MONTHS ENDED MAY 1, 2016 AND MAY 3, 2015
|
||||||||||||||||||||
|
(UNAUDITED)
|
||||||||||||||||||||
|
(Amounts in Thousands, Except for Per Share Data)
|
||||||||||||||||||||
|
TWELVE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
May 1,
|
May 3,
|
% Over
|
May 1,
|
May 3,
|
||||||||||||||||
|
2016
|
2015
|
(Under)
|
2016
|
2015
|
||||||||||||||||
|
Net sales
|
$
|
312,860
|
310,166
|
0.9
|
%
|
100.0
|
%
|
100.0
|
%
|
|||||||||||
|
Cost of sales
|
247,749
|
254,599
|
(2.7
|
)%
|
79.2
|
%
|
82.1
|
%
|
||||||||||||
|
Gross profit
|
65,111
|
55,567
|
17.2
|
%
|
20.8
|
%
|
17.9
|
%
|
||||||||||||
|
Selling, general and
|
||||||||||||||||||||
|
administrative expenses
|
36,773
|
32,778
|
12.2
|
%
|
11.8
|
%
|
10.6
|
%
|
||||||||||||
|
Income from operations
|
28,338
|
22,789
|
24.3
|
%
|
9.1
|
%
|
7.3
|
%
|
||||||||||||
|
Interest expense
|
-
|
64
|
(100.0
|
)%
|
0.0
|
%
|
0.0
|
%
|
||||||||||||
|
Interest income
|
(176
|
)
|
(622
|
)
|
(71.7
|
)%
|
(0.1
|
)%
|
(0.2
|
)%
|
||||||||||
|
Other expense
|
616
|
391
|
57.5
|
%
|
0.2
|
%
|
0.1
|
%
|
||||||||||||
|
Income before income taxes
|
27,898
|
22,956
|
21.5
|
%
|
8.9
|
%
|
7.4
|
%
|
||||||||||||
|
Income taxes*
|
10,963
|
7,885
|
39.0
|
%
|
39.3
|
%
|
34.3
|
%
|
||||||||||||
|
Net income
|
$
|
16,935
|
15,071
|
12.4
|
%
|
5.4
|
%
|
4.9
|
%
|
|||||||||||
|
Net income per share-basic
|
$
|
1.38
|
$
|
1.23
|
12.2
|
%
|
||||||||||||||
|
Net income per share-diluted
|
$
|
1.36
|
$
|
1.21
|
12.4
|
%
|
||||||||||||||
|
Average shares outstanding-basic
|
12,302
|
12,217
|
0.7
|
%
|
||||||||||||||||
|
Average shares outstanding-diluted
|
12,475
|
12,422
|
0.4
|
%
|
||||||||||||||||
|
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)
|
||||||||||||||||||||
|
TWELVE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
May 1,
|
May 3,
|
% Over
|
May 1,
|
May 3,
|
||||||||||||||||
|
2016
|
2015
|
(Under)
|
2016
|
2015
|
||||||||||||||||
|
Income before income taxes (see above)
|
$
|
27,898
|
22,956
|
21.5
|
%
|
8.9
|
%
|
7.4
|
%
|
|||||||||||
|
Adjusted Income taxes (2)*
|
5,189
|
3,604
|
44.0
|
%
|
18.6
|
%
|
15.7
|
%
|
||||||||||||
|
Adjusted net income
|
22,709
|
19,352
|
17.3
|
%
|
7.3
|
%
|
6.2
|
%
|
||||||||||||
|
Adjusted net income per share-basic
|
$
|
1.85
|
$
|
1.58
|
17.1
|
%
|
||||||||||||||
|
Adjusted net income per share-diluted
|
$
|
1.82
|
$
|
1.56
|
16.7
|
%
|
||||||||||||||
|
Average shares outstanding-basic
|
12,302
|
12,217
|
0.7
|
%
|
||||||||||||||||
|
Average shares outstanding-diluted
|
12,475
|
12,422
|
0.4
|
%
|
||||||||||||||||
|
(1) Culp, Inc. currently does not incur cash income tax expense in the US and has an estimated $18.0 million in net operating loss carryforwards as of May 1, 2016.
|
||||||||||||||||||||
|
Therefore, adjusted net income is calculated using only income tax expense for our subsidiaries located in Canada and China. See reconciliation on
|
||||||||||||||||||||
|
page 10 of 10.
|
||||||||||||||||||||
|
(2) Represents estimated income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 10 of 10.
|
||||||||||||||||||||
|
* Percent of sales column for income taxes is calculated as a % of income before income taxes.
|
||||||||||||||||||||
Page 3 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||
|
CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||
|
MAY 1, 2016 AND MAY 3, 2015
|
||||||||||||||||
|
Unaudited
|
||||||||||||||||
|
(Amounts in Thousands)
|
||||||||||||||||
|
Amounts
|
Increase
|
|||||||||||||||
|
May 1,
|
* May 3,
|
(Decrease)
|
||||||||||||||
|
2016
|
2015
|
Dollars
|
Percent
|
|||||||||||||
|
Current assets
|
||||||||||||||||
|
Cash and cash equivalents
|
$
|
37,787
|
29,725
|
8,062
|
27.1
|
%
|
||||||||||
|
Short-term investments
|
4,359
|
10,004
|
(5,645
|
)
|
(56.4
|
)%
|
||||||||||
|
Accounts receivable
|
23,481
|
28,749
|
(5,268
|
)
|
(18.3
|
)%
|
||||||||||
|
Inventories
|
46,531
|
42,484
|
4,047
|
9.5
|
%
|
|||||||||||
|
Income taxes receivable
|
155
|
229
|
(74
|
)
|
(32.3
|
)%
|
||||||||||
|
Other current assets
|
2,477
|
2,440
|
37
|
1.5
|
%
|
|||||||||||
|
Total current assets
|
114,790
|
113,631
|
1,159
|
1.0
|
%
|
|||||||||||
|
Property, plant & equipment, net
|
39,973
|
36,078
|
3,895
|
10.8
|
%
|
|||||||||||
|
Goodwill
|
11,462
|
11,462
|
-
|
0.0
|
%
|
|||||||||||
|
Deferred income taxes
|
2,319
|
5,169
|
(2,850
|
)
|
(55.1
|
)%
|
||||||||||
|
Long-term Investments
|
4,025
|
2,415
|
1,610
|
66.7
|
%
|
|||||||||||
|
Other assets
|
2,573
|
2,545
|
28
|
1.1
|
%
|
|||||||||||
|
Total assets
|
$
|
175,142
|
171,300
|
3,842
|
2.2
|
%
|
||||||||||
|
Current liabilities
|
||||||||||||||||
|
Current maturities of long-term debt
|
$
|
-
|
2,200
|
(2,200
|
)
|
(100.0
|
)%
|
|||||||||
|
Accounts payable - trade
|
23,994
|
28,414
|
(4,420
|
)
|
(15.6
|
)%
|
||||||||||
|
Accounts payable - capital expenditures
|
224
|
990
|
(766
|
)
|
(77.4
|
)%
|
||||||||||
|
Accrued expenses
|
11,922
|
11,129
|
793
|
7.1
|
%
|
|||||||||||
|
Income taxes payable - current
|
180
|
325
|
(145
|
)
|
(44.6
|
)%
|
||||||||||
|
Total current liabilities
|
36,320
|
43,058
|
(6,738
|
)
|
(15.6
|
)%
|
||||||||||
|
Income taxes payable - long-term
|
3,841
|
3,792
|
49
|
1.3
|
%
|
|||||||||||
|
Deferred income taxes
|
1,483
|
982
|
501
|
51.0
|
%
|
|||||||||||
|
Deferred compensation
|
4,686
|
4,041
|
645
|
16.0
|
%
|
|||||||||||
|
Total liabilities
|
46,330
|
51,873
|
(5,543
|
)
|
(10.7
|
)%
|
||||||||||
|
Shareholders' equity
|
128,812
|
119,427
|
9,385
|
7.9
|
%
|
|||||||||||
|
Total liabilities and
|
||||||||||||||||
|
shareholders' equity
|
$
|
175,142
|
171,300
|
3,842
|
2.2
|
%
|
||||||||||
|
Shares outstanding
|
12,265
|
12,219
|
46
|
0.4
|
%
|
|||||||||||
|
* Derived from audited financial statements.
|
||||||||||||||||
Page 4 of 10
| CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||||
|
FOR THE TWELVE MONTHS ENDED MAY 1, 2016 AND MAY 3, 2015
|
|||||||||
|
Unaudited
|
|||||||||
|
(Amounts in Thousands)
|
|||||||||
|
TWELVE MONTHS ENDED
|
|||||||||
|
Amounts
|
|||||||||
|
May 1,
|
May 3,
|
||||||||
|
2016
|
2015
|
||||||||
|
Cash flows from operating activities:
|
|||||||||
|
Net income
|
$
|
16,935
|
15,071
|
||||||
|
Adjustments to reconcile net income to net cash
|
|||||||||
|
provided by operating activities:
|
|||||||||
|
Depreciation
|
6,671
|
5,773
|
|||||||
|
Amortization of other assets
|
170
|
187
|
|||||||
|
Stock-based compensation
|
2,742
|
786
|
|||||||
|
Deferred income taxes
|
4,192
|
3,179
|
|||||||
|
Gain on sale of equipment
|
(35
|
)
|
(78
|
)
|
|||||
|
Realized loss on sale of short-term investments
|
127
|
-
|
|||||||
|
Excess tax benefits related to stock-based compensation
|
(841
|
)
|
(109
|
)
|
|||||
|
Foreign currency exchange gains
|
(40
|
)
|
(84
|
)
|
|||||
|
Changes in assets and liabilities:
|
|||||||||
|
Accounts receivable
|
4,476
|
(1,636
|
)
|
||||||
|
Inventories
|
(4,407
|
)
|
(1,883
|
)
|
|||||
|
Other current assets
|
(206
|
)
|
(151
|
)
|
|||||
|
Other assets
|
(46
|
)
|
(117
|
)
|
|||||
|
Accounts payable-trade
|
(3,785
|
)
|
1,964
|
||||||
|
Accrued expenses and deferrred compensation
|
751
|
3,372
|
|||||||
|
Income taxes
|
91
|
(163
|
)
|
||||||
|
Net cash provided by operating activities
|
26,795
|
26,111
|
|||||||
|
Cash flows from investing activities:
|
|||||||||
|
Capital expenditures
|
(11,475
|
)
|
(10,461
|
)
|
|||||
|
Proceeds from the sale of equipment
|
233
|
727
|
|||||||
|
Proceeds from life insurance policies
|
-
|
320
|
|||||||
|
Payments on life insurance policies
|
(18
|
)
|
(18
|
)
|
|||||
|
Proceeds from the sale of short-term investments
|
5,612
|
1,628
|
|||||||
|
Purchase of short-term investments
|
(104
|
)
|
(5,355
|
)
|
|||||
|
Purchase of long-term investments
|
(1,649
|
)
|
(1,650
|
)
|
|||||
|
Net cash used in investing activities
|
(7,401
|
)
|
(14,809
|
)
|
|||||
|
Cash flows from financing activities:
|
|||||||||
|
Proceeds from line of credit
|
7,000
|
-
|
|||||||
|
Payments on line of credit
|
(7,000
|
)
|
(538
|
)
|
|||||
|
Payments on long-term debt
|
(2,200
|
)
|
(2,200
|
)
|
|||||
|
Repurchase of common stock
|
(2,397
|
)
|
(745
|
)
|
|||||
|
Dividends paid
|
(8,140
|
)
|
(7,579
|
)
|
|||||
|
Payments on debt issuance costs
|
(134
|
)
|
-
|
||||||
|
Proceeds from common stock issued
|
200
|
94
|
|||||||
|
Excess tax benefits related to stock-based compensation
|
841
|
109
|
|||||||
|
Net cash used in financing activities
|
(11,830
|
)
|
(10,859
|
)
|
|||||
|
Effect of exchange rate changes on cash and cash equivalents
|
498
|
(21
|
)
|
||||||
|
Increase in cash and cash equivalents
|
8,062
|
422
|
|||||||
|
Cash and cash equivalents at beginning of period
|
29,725
|
29,303
|
|||||||
|
Cash and cash equivalents at end of period
|
$
|
37,787
|
29,725
|
||||||
|
Free Cash Flow (1)
|
$
|
15,225
|
15,117
|
||||||
|
(1) Free Cash Flow reconciliation is as follows:
|
|||||||||
|
FY 2016
|
FY 2015
|
||||||||
|
A)
|
Net cash provided by operating activities
|
$
|
26,795
|
26,111
|
|||||
|
B)
|
Minus: Capital Expenditures
|
(11,475
|
)
|
(10,461
|
)
|
||||
|
C)
|
Add: Proceeds from the sale of equipment
|
233
|
727
|
||||||
|
D)
|
Add: Proceeds from life insurance policies
|
-
|
320
|
||||||
|
E)
|
Minus: Payments on life insurance policies
|
(18
|
)
|
(18
|
)
|
||||
|
F)
|
Add: Excess tax benefits related to stock-based compensation
|
841
|
109
|
||||||
|
G)
|
Minus: Purchase of long-term investments
|
(1,649
|
)
|
(1,650
|
)
|
||||
|
H)
|
Effects of exchange rate changes on cash and cash equivalents
|
498
|
(21
|
)
|
|||||
|
$
|
15,225
|
15,117
|
|||||||
Page 5 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
STATEMENTS OF OPERATIONS BY SEGMENT
|
||||||||||||||||||||
|
FOR THE THREE MONTHS ENDED MAY 1, 2016 AND MAY 3, 2015
|
||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||
|
(Amounts in thousands)
|
||||||||||||||||||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Total Sales
|
|||||||||||||||||||
|
May 1,
|
May 3,
|
% Over
|
May 1,
|
May 3,
|
||||||||||||||||
|
Net Sales by Segment
|
2016
|
2015
|
(Under)
|
2016
|
2015
|
|||||||||||||||
|
Mattress Fabrics
|
$
|
48,897
|
48,196
|
1.5
|
%
|
63.3
|
%
|
61.1
|
%
|
|||||||||||
|
Upholstery Fabrics
|
28,356
|
30,650
|
(7.5
|
)%
|
36.7
|
%
|
38.9
|
%
|
||||||||||||
|
Net Sales
|
$
|
77,253
|
78,846
|
(2.0
|
)%
|
100.0
|
%
|
100.0
|
%
|
|||||||||||
| Gross Profit by Segment |
Gross Profit Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$
|
10,585
|
10,274
|
3.0
|
%
|
21.6
|
%
|
21.3
|
%
|
|||||||||||
|
Upholstery Fabrics
|
6,028
|
5,898
|
2.2
|
%
|
21.3
|
%
|
19.2
|
%
|
||||||||||||
|
Gross Profit
|
$
|
16,613
|
16,172
|
2.7
|
%
|
21.5
|
%
|
20.5
|
%
|
|||||||||||
| Selling, General and Administrative Expenses by Segment |
Percent of Sales
|
|||||||||||||||||||
|
Mattress Fabrics
|
$
|
3,357
|
3,187
|
5.3
|
%
|
6.9
|
%
|
6.6
|
%
|
|||||||||||
|
Upholstery Fabrics
|
3,723
|
4,044
|
(7.9
|
)%
|
13.1
|
%
|
13.2
|
%
|
||||||||||||
|
Unallocated Corporate expenses
|
2,181
|
2,374
|
(8.1
|
)%
|
2.8
|
%
|
3.0
|
%
|
||||||||||||
|
Selling, General and Administrative Expenses
|
$
|
9,261
|
9,605
|
(3.6
|
)%
|
12.0
|
%
|
12.2
|
%
|
|||||||||||
|
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$
|
7,228
|
7,087
|
2.0
|
%
|
14.8
|
%
|
14.7
|
%
|
|||||||||||
|
Upholstery Fabrics
|
2,305
|
1,854
|
24.3
|
%
|
8.1
|
%
|
6.0
|
%
|
||||||||||||
|
Unallocated corporate expenses
|
(2,181
|
)
|
(2,374
|
)
|
(8.1
|
)%
|
(2.8
|
)%
|
(3.0
|
)%
|
||||||||||
|
Operating income
|
$
|
7,352
|
6,567
|
12.0
|
%
|
9.5
|
%
|
8.3
|
%
|
|||||||||||
|
Depreciation by Segment
|
||||||||||||||||||||
|
Mattress Fabrics
|
$
|
1,564
|
1,341
|
16.6
|
%
|
|||||||||||||||
|
Upholstery Fabrics
|
219
|
187
|
17.1
|
%
|
||||||||||||||||
|
Depreciation
|
$
|
1,783
|
1,528
|
16.7
|
%
|
|||||||||||||||
Page 6 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
STATEMENTS OF OPERATIONS BY SEGMENT
|
||||||||||||||||||||
|
FOR THE TWELVE MONTHS ENDED MAY 1, 2016 AND MAY 3, 2015
|
||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||
|
(Amounts in thousands)
|
||||||||||||||||||||
|
TWELVE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Total Sales
|
|||||||||||||||||||
|
May 1,
|
May 3,
|
% Over
|
May 1,
|
May 3,
|
||||||||||||||||
|
Net Sales by Segment
|
2016
|
2015
|
(Under)
|
2016
|
2015
|
|||||||||||||||
|
Mattress Fabrics
|
$
|
186,419
|
179,739
|
3.7
|
%
|
59.6
|
%
|
57.9
|
%
|
|||||||||||
|
Upholstery Fabrics
|
126,441
|
130,427
|
(3.1
|
))%
|
40.4
|
%
|
42.1
|
%
|
||||||||||||
|
Net Sales
|
$
|
312,860
|
310,166
|
0.9
|
%
|
100.0
|
%
|
100.0
|
%
|
|||||||||||
|
Gross Profit by Segment
|
Gross Profit Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$
|
38,718
|
32,877
|
17.8
|
%
|
20.8
|
%
|
18.3
|
%
|
|||||||||||
|
Upholstery Fabrics
|
26,393
|
22,690
|
16.3
|
%
|
20.9
|
%
|
17.4
|
%
|
||||||||||||
|
Gross Profit
|
$
|
65,111
|
55,567
|
17.2
|
%
|
20.8
|
%
|
17.9
|
%
|
|||||||||||
| Selling, General and Administrative Expenses by Segment |
Percent of Sales
|
|||||||||||||||||||
|
Mattress Fabrics
|
$
|
12,223
|
11,206
|
9.1
|
%
|
6.6
|
%
|
6.2
|
%
|
|||||||||||
|
Upholstery Fabrics
|
15,094
|
14,562
|
3.7
|
%
|
11.9
|
%
|
11.2
|
%
|
||||||||||||
|
Unallocated Corporate expenses
|
9,456
|
7,010
|
34.9
|
%
|
3.0
|
%
|
2.3
|
%
|
||||||||||||
|
Selling, General, and Administrative Expenses
|
$
|
36,773
|
32,778
|
12.2
|
%
|
11.8
|
%
|
10.6
|
%
|
|||||||||||
|
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$
|
26,496
|
21,671
|
22.3
|
%
|
14.2
|
%
|
12.1
|
%
|
|||||||||||
|
Upholstery Fabrics
|
11,298
|
8,128
|
39.0
|
%
|
8.9
|
%
|
6.2
|
%
|
||||||||||||
|
Unallocated corporate expenses
|
(9,456
|
)
|
(7,010
|
)
|
34.9
|
%
|
(3.0
|
)%
|
(2.3
|
)%
|
||||||||||
|
Operating income
|
$
|
28,338
|
22,789
|
24.3
|
%
|
9.1
|
%
|
7.3
|
%
|
|||||||||||
|
Return on Capital (1)
|
||||||||||||||||||||
|
Mattress Fabrics
|
36.7
|
%
|
33.5
|
%
|
||||||||||||||||
|
Upholstery Fabrics
|
65.2
|
%
|
48.7
|
%
|
||||||||||||||||
|
Unallocated Corporate
|
N/
|
A
|
N/
|
A
|
||||||||||||||||
|
Consolidated
|
32.0
|
%
|
28.0
|
%
|
||||||||||||||||
|
Capital Employed (2)
|
||||||||||||||||||||
|
Mattress Fabrics
|
74,637
|
70,472
|
5.9
|
%
|
||||||||||||||||
|
Upholstery Fabrics
|
17,025
|
14,026
|
21.4
|
%
|
||||||||||||||||
|
Unallocated Corporate
|
(1,305
|
)
|
(1,273
|
)
|
N/
|
A
|
||||||||||||||
|
Consolidated
|
90,357
|
83,225
|
8.6
|
%
|
||||||||||||||||
|
Depreciation by Segment
|
||||||||||||||||||||
|
Mattress Fabrics
|
$
|
5,837
|
5,034
|
16.0
|
%
|
|||||||||||||||
|
Upholstery Fabrics
|
834
|
739
|
12.9
|
%
|
||||||||||||||||
|
Depreciation
|
$
|
6,671
|
5,773
|
15.6
|
%
|
|||||||||||||||
|
Notes:
|
||||||||||||||||||||
|
(1) See pages 8 and 9 of this financial information release for calculations.
|
||||||||||||||||||||
|
(2) The capital employed balances are as of May 1, 2016 and May 3, 2015.
|
||||||||||||||||||||
Page 7 of 10
| CULP, INC. FINANCIAL INFORMATION RELEASE |
| CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA |
| FOR THE TWELVE MONTHS ENDED MAY 1, 2016 AND MAY 3, 2015 |
| (UNAUDITED) |
| (AMOUNTS IN THOUSANDS) |
|
Quarter Ended
|
|||||||||||||||||||||
|
Trailing 12
|
|||||||||||||||||||||
|
Months
|
|||||||||||||||||||||
|
8/2/2015
|
11/1/2015
|
1/31/2016
|
5/1/2016
|
5/1/2016
|
|||||||||||||||||
|
Net income
|
$
|
4,701
|
$
|
3,771
|
$
|
4,862
|
$
|
3,601
|
$
|
16,935
|
|||||||||||
|
Income taxes
|
2,707
|
2,373
|
2,317
|
3,566
|
10,963
|
||||||||||||||||
|
Interest income, net
|
(43
|
)
|
(69
|
)
|
(38
|
)
|
(26
|
)
|
(176
|
)
|
|||||||||||
|
Depreciation and amortization expense
|
1,602
|
1,668
|
1,741
|
1,830
|
6,841
|
||||||||||||||||
|
Stock based compensation
|
265
|
1,074
|
625
|
778
|
2,742
|
||||||||||||||||
|
Adjusted EBITDA
|
$
|
9,232
|
$
|
8,817
|
$
|
9,507
|
$
|
9,749
|
$
|
37,305
|
|||||||||||
|
Quarter Ended
|
|||||||||||||||||||||
|
Trailing 12
|
|||||||||||||||||||||
|
Months
|
|||||||||||||||||||||
|
8/3/2014
|
11/2/2014
|
2/1/2015
|
5/3/2015
|
5/3/2015 | |||||||||||||||||
|
Net income
|
$
|
3,345
|
$
|
3,001
|
$
|
3,812
|
$
|
4,913
|
$
|
15,071
|
|||||||||||
|
Income taxes
|
2,114
|
1,889
|
2,110
|
1,772
|
7,885
|
||||||||||||||||
|
Interest income, net
|
(75
|
)
|
(153
|
)
|
(202
|
)
|
(128
|
)
|
(558
|
)
|
|||||||||||
|
Depreciation and amortization expense
|
1,446
|
1,460
|
1,478
|
1,576
|
5,960
|
||||||||||||||||
|
Stock based compensation
|
46
|
245
|
191
|
304
|
786
|
||||||||||||||||
|
Adjusted EBITDA
|
$
|
6,876
|
$
|
6,442
|
$
|
7,389
|
$
|
8,437
|
$
|
29,144
|
|||||||||||
|
% Over (Under)
|
34.3
|
%
|
36.9
|
%
|
28.7
|
%
|
15.6
|
%
|
28.0
|
%
|
|||||||||||
Page 8 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
RETURN ON CAPITAL EMPLOYED BY SEGMENT
FOR THE TWELVE MONTHS ENDED MAY 1, 2016
|
||||||||||||||||||||||||||||||||||||||||||||||||
| (Amounts in Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Operating Income
Twelve Months |
Average
Capital |
Return on
Avg. Capital |
||||||||||||||||||||||||||||||||||||||||||||||
|
Mattress Fabrics
|
$
|
26,496
|
$
|
72,121
|
36.7
|
%
|
||||||||||||||||||||||||||||||||||||||||||
|
Upholstery Fabrics
|
11,298
|
17,336
|
65.2
|
%
|
||||||||||||||||||||||||||||||||||||||||||||
|
(less: Unallocated Corporate)
|
(9,456
|
)
|
(765
|
)
|
N/
|
A
|
||||||||||||||||||||||||||||||||||||||||||
|
Total
|
$
|
28,338
|
$
|
88,691
|
32.0
|
%
|
||||||||||||||||||||||||||||||||||||||||||
|
Average Capital Employed
|
As of the three Months Ended May 1, 2016
|
As of the three Months Ended January 31, 2016
|
As of the three Months Ended November 1, 2015
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||
|
Total assets
|
94,878
|
29,463
|
50,801
|
175,142
|
93,779
|
33,975
|
45,797
|
173,551
|
90,730
|
32,187
|
46,030
|
168,947
|
||||||||||||||||||||||||||||||||||||
|
Total liabilities
|
(20,241
|
)
|
(12,438
|
)
|
(13,651
|
)
|
(46,330
|
)
|
(21,135
|
)
|
(14,352
|
)
|
(12,990
|
)
|
(48,477
|
)
|
(19,228
|
)
|
(15,129
|
)
|
(11,615
|
)
|
(45,972
|
)
|
||||||||||||||||||||||||
|
Subtotal
|
$
|
74,637
|
$
|
17,025
|
$
|
37,150
|
$
|
128,812
|
$
|
72,644
|
$
|
19,623
|
$
|
32,807
|
$
|
125,074
|
$
|
71,502
|
$
|
17,058
|
$
|
34,415
|
$
|
122,975
|
||||||||||||||||||||||||
|
Less:
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Cash and cash equivalents
|
-
|
-
|
(37,787
|
)
|
(37,787
|
)
|
-
|
-
|
(31,713
|
)
|
(31,713
|
)
|
-
|
-
|
(31,176
|
)
|
(31,176
|
)
|
||||||||||||||||||||||||||||||
|
Short-term investments
|
-
|
-
|
(4,359
|
)
|
(4,359
|
)
|
-
|
-
|
(4,259
|
)
|
(4,259
|
)
|
-
|
-
|
(6,320
|
)
|
(6,320
|
)
|
||||||||||||||||||||||||||||||
|
Long-term investments
|
-
|
-
|
(4,025
|
)
|
(4,025
|
)
|
-
|
-
|
(3,590
|
)
|
(3,590
|
)
|
-
|
-
|
(3,279
|
)
|
(3,279
|
)
|
||||||||||||||||||||||||||||||
|
Income taxes receivable
|
-
|
-
|
(155
|
)
|
(155
|
)
|
-
|
-
|
(23
|
)
|
(23
|
)
|
-
|
-
|
(75
|
)
|
(75
|
)
|
||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
(2,319
|
)
|
(2,319
|
)
|
-
|
-
|
(4,312
|
)
|
(4,312
|
)
|
-
|
-
|
(3,415
|
)
|
(3,415
|
)
|
||||||||||||||||||||||||||||||
|
Current maturities of long-term debt
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||
|
Income taxes payable - current
|
-
|
-
|
180
|
180
|
-
|
-
|
622
|
622
|
-
|
-
|
305
|
305
|
||||||||||||||||||||||||||||||||||||
|
Income taxes payable - long-term
|
-
|
-
|
3,841
|
3,841
|
-
|
-
|
3,480
|
3,480
|
-
|
-
|
3,655
|
3,655
|
||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
1,483
|
1,483
|
-
|
-
|
1,209
|
1,209
|
-
|
-
|
1,206
|
1,206
|
||||||||||||||||||||||||||||||||||||
|
Deferred compensation
|
-
|
-
|
4,686
|
4,686
|
-
|
-
|
4,495
|
4,495
|
-
|
-
|
4,421
|
4,421
|
||||||||||||||||||||||||||||||||||||
|
Total Capital Employed
|
$
|
74,637
|
$
|
17,025
|
$
|
(1,305
|
)
|
$
|
90,357
|
$
|
72,644
|
$
|
19,623
|
$
|
(1,284
|
)
|
$
|
90,983
|
$
|
71,502
|
$
|
17,058
|
$
|
(263
|
)
|
$
|
88,297
|
|||||||||||||||||||||
|
As of the three Months Ended August 2, 2015
|
As of the three Months Ended May 3, 2015
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
|||||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||||||
|
Total assets
|
91,614
|
33,795
|
41,470
|
166,879
|
89,066
|
32,838
|
49,396
|
171,300
|
||||||||||||||||||||||||||||||||||||||||
|
Total liabilities
|
(20,265
|
)
|
(14,849
|
)
|
(13,040
|
)
|
(48,154
|
)
|
(18,594
|
)
|
(18,812
|
)
|
(14,467
|
)
|
(51,873
|
)
|
||||||||||||||||||||||||||||||||
|
Subtotal
|
$
|
71,349
|
$
|
18,946
|
$
|
28,430
|
$
|
118,725
|
$
|
70,472
|
$
|
14,026
|
$
|
34,929
|
$
|
119,427
|
||||||||||||||||||||||||||||||||
|
Less:
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Cash and cash equivalents
|
-
|
-
|
(25,933
|
)
|
(25,933
|
)
|
-
|
-
|
(29,725
|
)
|
(29,725
|
)
|
||||||||||||||||||||||||||||||||||||
|
Short-term investments
|
-
|
-
|
(6,336
|
)
|
(6,336
|
)
|
-
|
-
|
(10,004
|
)
|
(10,004
|
)
|
||||||||||||||||||||||||||||||||||||
|
Long-term investments
|
-
|
-
|
(2,893
|
)
|
(2,893
|
)
|
-
|
-
|
(2,415
|
)
|
(2,415
|
)
|
||||||||||||||||||||||||||||||||||||
|
Income taxes receivable
|
-
|
-
|
(142
|
)
|
(142
|
)
|
-
|
-
|
(229
|
)
|
(229
|
)
|
||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
(4,405
|
)
|
(4,405
|
)
|
-
|
-
|
(5,169
|
)
|
(5,169
|
)
|
||||||||||||||||||||||||||||||||||||
|
Current maturities of long-term debt
|
-
|
-
|
2,200
|
2,200
|
-
|
-
|
2,200
|
2,200
|
||||||||||||||||||||||||||||||||||||||||
|
Income taxes payable - current
|
-
|
-
|
392
|
392
|
-
|
-
|
325
|
325
|
||||||||||||||||||||||||||||||||||||||||
|
Income taxes payable - long-term
|
-
|
-
|
3,634
|
3,634
|
-
|
-
|
3,792
|
3,792
|
||||||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
1,071
|
1,071
|
-
|
-
|
982
|
982
|
||||||||||||||||||||||||||||||||||||||||
|
Deferred compensation
|
-
|
-
|
4,280
|
4,280
|
-
|
-
|
4,041
|
4,041
|
||||||||||||||||||||||||||||||||||||||||
|
Total Capital Employed
|
$
|
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)
|
$
|
72,121
|
$
|
17,336
|
$
|
(765
|
)
|
$
|
88,691
|
|||||||||||||||||||||||||||||||||||||||
|
Notes:
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
(1) See reconciliation per page 6 of this financial information release.
|
||||||||||||||||||||||||||||||||||||||||||||||||
| (2) Return on average capital employed represents operating income for fiscal 2016 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, noncurrent deferred tax assets and liabilities, income taxes receivable and payable, and deferred compensation. | ||||||||||||||||||||||||||||||||||||||||||||||||
|
(3) Average capital employed was computed using the five quarterly periods ending May 1, 2016 January 31, 2016, 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 TWELVE MONTHS ENDED MAY 3, 2015
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
(Amounts in Thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Operating Income
Twelve Months |
Average
Capital |
Return on
Avg. Capital |
||||||||||||||||||||||||||||||||||||||||||||||
|
Mattress Fabrics
|
$
|
21,671
|
$
|
64,783
|
33.5
|
%
|
||||||||||||||||||||||||||||||||||||||||||
|
Upholstery Fabrics
|
8,128
|
16,680
|
48.7
|
%
|
||||||||||||||||||||||||||||||||||||||||||||
|
(less: Unallocated Corporate)
|
(7,010
|
)
|
34
|
N/
|
A
|
|||||||||||||||||||||||||||||||||||||||||||
|
Total
|
$
|
22,789
|
$
|
81,497
|
28.0
|
%
|
||||||||||||||||||||||||||||||||||||||||||
|
Average Capital Employed
|
As of the three Months Ended May 3, 2015
|
As of the three Months Ended February 1, 2015
|
As of the three Months Ended November 2, 2014
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||
|
Total assets
|
89,066
|
32,838
|
49,396
|
171,300
|
83,648
|
35,761
|
45,949
|
165,358
|
80,121
|
30,916
|
45,126
|
156,163
|
||||||||||||||||||||||||||||||||||||
|
Total liabilities
|
(18,594
|
)
|
(18,812
|
)
|
(14,467
|
)
|
(51,873
|
)
|
(18,470
|
)
|
(18,927
|
)
|
(12,989
|
)
|
(50,386
|
)
|
(17,247
|
)
|
(14,847
|
)
|
(12,395
|
)
|
(44,489
|
)
|
||||||||||||||||||||||||
|
Subtotal
|
$
|
70,472
|
$
|
14,026
|
$
|
34,929
|
$
|
119,427
|
$
|
65,178
|
$
|
16,834
|
$
|
32,960
|
$
|
114,972
|
$
|
62,874
|
$
|
16,069
|
$
|
32,731
|
$
|
111,674
|
||||||||||||||||||||||||
|
Less:
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Cash and cash equivalents
|
-
|
-
|
(29,725
|
)
|
(29,725
|
)
|
-
|
-
|
(28,772
|
)
|
(28,772
|
)
|
-
|
-
|
(28,953
|
)
|
(28,953
|
)
|
||||||||||||||||||||||||||||||
|
Short-term investments
|
-
|
-
|
(10,004
|
)
|
(10,004
|
)
|
-
|
-
|
(8,384
|
)
|
(8,384
|
)
|
-
|
-
|
(6,318
|
)
|
(6,318
|
)
|
||||||||||||||||||||||||||||||
|
Long-term investments
|
-
|
-
|
(2,415
|
)
|
(2,415
|
)
|
-
|
-
|
(2,063
|
)
|
(2,063
|
)
|
(1,911
|
)
|
(1,911
|
)
|
||||||||||||||||||||||||||||||||
|
Income taxes receivable
|
-
|
-
|
(229
|
)
|
(229
|
)
|
-
|
-
|
(104
|
)
|
(104
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
(5,169
|
)
|
(5,169
|
)
|
-
|
-
|
(5,020
|
)
|
(5,020
|
)
|
-
|
-
|
(6,200
|
)
|
(6,200
|
)
|
||||||||||||||||||||||||||||||
|
Current maturities of long-term debt
|
-
|
-
|
2,200
|
2,200
|
-
|
-
|
2,200
|
2,200
|
-
|
-
|
2,200
|
2,200
|
||||||||||||||||||||||||||||||||||||
|
Line of credit
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||
|
Income taxes payable - current
|
-
|
-
|
325
|
325
|
-
|
-
|
325
|
325
|
-
|
-
|
268
|
268
|
||||||||||||||||||||||||||||||||||||
|
Income taxes payable - long-term
|
-
|
-
|
3,792
|
3,792
|
-
|
-
|
3,630
|
3,630
|
-
|
-
|
3,980
|
3,980
|
||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
982
|
982
|
-
|
-
|
927
|
927
|
-
|
-
|
896
|
896
|
||||||||||||||||||||||||||||||||||||
|
Long-term debt, less current maturities
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||
|
Deferred compensation
|
-
|
-
|
4,041
|
4,041
|
-
|
-
|
3,934
|
3,934
|
-
|
-
|
3,794
|
3,794
|
||||||||||||||||||||||||||||||||||||
|
Total Capital Employed
|
$
|
70,472
|
$
|
14,026
|
$
|
(1,273
|
)
|
$
|
83,225
|
$
|
65,178
|
$
|
16,834
|
$
|
(367
|
)
|
$
|
81,645
|
$
|
62,874
|
$
|
16,069
|
$
|
487
|
$
|
79,430
|
||||||||||||||||||||||
|
As of the three Months Ended August 3, 2014
|
As of the three Months Ended April 27, 2014
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
|||||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||||||
|
Total assets
|
81,400
|
30,520
|
42,298
|
154,218
|
79,055
|
34,987
|
46,886
|
160,928
|
||||||||||||||||||||||||||||||||||||||||
|
Total liabilities
|
(18,464
|
)
|
(11,468
|
)
|
(15,139
|
)
|
(45,071
|
)
|
(16,598
|
)
|
(17,568
|
)
|
(15,018
|
)
|
(49,184
|
)
|
||||||||||||||||||||||||||||||||
|
Subtotal
|
$
|
62,936
|
$
|
19,052
|
$
|
27,159
|
$
|
109,147
|
$
|
62,457
|
$
|
17,419
|
$
|
31,868
|
$
|
111,744
|
||||||||||||||||||||||||||||||||
|
Less:
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Cash and cash equivalents
|
-
|
-
|
(24,665
|
)
|
(24,665
|
)
|
-
|
-
|
(29,303
|
)
|
(29,303
|
)
|
||||||||||||||||||||||||||||||||||||
|
Short-term investments
|
-
|
-
|
(6,311
|
)
|
(6,311
|
)
|
-
|
-
|
(6,294
|
)
|
(6,294
|
)
|
||||||||||||||||||||||||||||||||||||
|
Long-term investments
|
(1,749
|
)
|
(1,749
|
)
|
(765
|
)
|
(765
|
)
|
||||||||||||||||||||||||||||||||||||||||
|
Income taxes receivable
|
-
|
-
|
(136
|
)
|
(136
|
)
|
-
|
-
|
(121
|
)
|
(121
|
)
|
||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
(7,182
|
)
|
(7,182
|
)
|
-
|
-
|
(8,263
|
)
|
(8,263
|
)
|
||||||||||||||||||||||||||||||||||||
|
Current maturities of long-term debt
|
-
|
-
|
2,200
|
2,200
|
-
|
-
|
2,200
|
2,200
|
||||||||||||||||||||||||||||||||||||||||
|
Line of credit
|
-
|
-
|
569
|
569
|
586
|
586
|
||||||||||||||||||||||||||||||||||||||||||
|
Income taxes payable - current
|
-
|
-
|
387
|
387
|
-
|
-
|
442
|
442
|
||||||||||||||||||||||||||||||||||||||||
|
Income taxes payable - long-term
|
-
|
-
|
4,037
|
4,037
|
-
|
-
|
3,962
|
3,962
|
||||||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
1,019
|
1,019
|
-
|
-
|
1,006
|
1,006
|
||||||||||||||||||||||||||||||||||||||||
|
Long-term debt, less current maturities
|
-
|
-
|
2,200
|
2,200
|
-
|
-
|
2,200
|
2,200
|
||||||||||||||||||||||||||||||||||||||||
|
Deferred compensation
|
-
|
-
|
3,632
|
3,632
|
-
|
-
|
2,644
|
2,644
|
||||||||||||||||||||||||||||||||||||||||
|
Total Capital Employed
|
$
|
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)
|
$
|
64,783
|
$
|
16,680
|
$
|
34
|
$
|
81,497
|
||||||||||||||||||||||||||||||||||||||||
|
Notes:
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
(1) See reconciliation per page 6 of this financial information release.
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
(2) Return on average capital employed represents operating income for fiscal 2015 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, noncurrent deferred tax assets and liabilities, income taxes payable and receivable, and deferred compensation.
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
(3) Average capital employed was computed using the five quarterly periods ending May 3, 2015, February 1, 2015, 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 PER SHARE
FOR THE TWELVE MONTHS ENDED MAY 1, 2016 AND MAY 3, 2015
|
| Unaudited |
| (Amounts in Thousands) |
|
|
|
TWELVE MONTHS ENDED
|
||||||||
|
Amounts
|
||||||||
|
May 1,
|
May 3,
|
|||||||
|
2016
|
2015
|
|||||||
|
Consolidated Effective GAAP Income Tax Rate (1)
|
39.3
|
%
|
34.3
|
%
|
||||
|
Non-Cash U.S. Income Tax Expense
|
(20.3)
|
%
|
(18.2)
|
%
|
||||
|
Non-Cash Foreign Income Tax Expense
|
(0.4)
|
%
|
(0.4)
|
%
|
||||
|
Consolidated Adjusted Effective Income Tax Rate (2)
|
18.6
|
%
|
15.7
|
%
|
||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||||||
|
As reported
|
May 1, 2016
|
As reported
|
May 3, 2015
|
|||||||||||||||||||||
|
May 1,
|
Proforma Net
|
May 3,
|
Proforma Net
|
|||||||||||||||||||||
|
2016
|
Adjustments
|
of Adjustments
|
2015
|
Adjustments
|
of Adjustments
|
|||||||||||||||||||
|
Income before income taxes
|
$
|
7,167
|
$
|
-
|
$
|
7,167
|
$
|
6,685
|
$
|
6,685
|
||||||||||||||
|
Income taxes (3)
|
3,566
|
$
|
(2,233
|
)
|
1,333
|
1,772
|
$
|
(722
|
)
|
1,050
|
||||||||||||||
|
Net income
|
$
|
3,601
|
$
|
2,233
|
$
|
5,834
|
$
|
4,913
|
$
|
722
|
$
|
5,635
|
||||||||||||
|
Net income per share-basic
|
$
|
0.29
|
$
|
0.18
|
$
|
0.48
|
$
|
0.40
|
$
|
0.06
|
$
|
0.46
|
||||||||||||
|
Net income per share-diluted
|
$
|
0.29
|
$
|
0.18
|
$
|
0.47
|
$
|
0.39
|
$
|
0.06
|
$
|
0.45
|
||||||||||||
|
Average shares outstanding-basic
|
12,257
|
12,257
|
12,257
|
12,219
|
12,219
|
12,219
|
||||||||||||||||||
|
Average shares outstanding-diluted
|
12,434
|
12,434
|
12,434
|
12,440
|
12,440
|
12,440
|
||||||||||||||||||
|
TWELVE MONTHS ENDED
|
||||||||||||||||||||||||
|
As reported
|
May 1, 2016
|
As reported
|
May 3, 2015
|
|||||||||||||||||||||
|
May 1,
|
Proforma Net
|
May 3,
|
Proforma Net
|
|||||||||||||||||||||
| 2016 |
Adjustments
|
of Adjustments
|
2015 |
Adjustments
|
of Adjustments
|
|||||||||||||||||||
|
Income before income taxes
|
$
|
27,898
|
$
|
-
|
$
|
27,898
|
$
|
22,956
|
$
|
-
|
$
|
22,956
|
||||||||||||
|
Income taxes (3)
|
10,963
|
$
|
(5,774
|
)
|
5,189
|
7,885
|
$
|
(4,281
|
)
|
3,604
|
||||||||||||||
|
Net income
|
$
|
16,935
|
$
|
5,774
|
$
|
22,709
|
$
|
15,071
|
$
|
4,281
|
$
|
19,352
|
||||||||||||
|
Net income per share-basic
|
$
|
1.38
|
$
|
0.47
|
$
|
1.85
|
$
|
1.23
|
$
|
0.35
|
$
|
1.58
|
||||||||||||
|
Net income per share-diluted
|
$
|
1.36
|
$
|
0.46
|
$
|
1.82
|
$
|
1.21
|
$
|
0.34
|
$
|
1.56
|
||||||||||||
|
Average shares outstanding-basic
|
12,302
|
12,302
|
12,302
|
12,217
|
12,217
|
12,217
|
||||||||||||||||||
|
Average shares outstanding-diluted
|
12,475
|
12,475
|
12,475
|
12,422
|
12,422
|
12,422
|
||||||||||||||||||
|
(1) Calculated by dividing consolidated income tax expense 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.
|
||||||||||||||||||||||||