Attached files
| file | filename |
|---|---|
| EX-99.A - EXHIBIT 99(A) - CULP INC | a51408568ex99a.htm |
| 8-K - CULP, INC. 8-K - CULP INC | a51408568.htm |
Exhibit 99(b)
Page 1 of 8
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF NET INCOME
|
||||||||||||||||||||
|
FOR THE THREE MONTHS ENDED JULY 31, 2016, AND AUGUST 2, 2015
|
||||||||||||||||||||
|
(UNAUDITED)
|
||||||||||||||||||||
|
(Amounts in Thousands, Except for Per Share Data)
|
||||||||||||||||||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
July 31,
|
August 2,
|
% Over
|
July 31,
|
August 2,
|
||||||||||||||||
|
2016
|
2015
|
(Under)
|
2016
|
2015
|
||||||||||||||||
|
Net sales
|
$
|
80,682
|
80,185
|
0.6
|
%
|
100.0
|
%
|
100.0
|
%
|
|||||||||||
|
Cost of sales
|
62,263
|
63,983
|
(2.7
|
)%
|
77.2
|
%
|
79.8
|
%
|
||||||||||||
|
Gross profit
|
18,419
|
16,202
|
13.7
|
%
|
22.8
|
%
|
20.2
|
%
|
||||||||||||
|
Selling, general and
|
||||||||||||||||||||
|
administrative expenses
|
9,746
|
8,741
|
11.5
|
%
|
12.1
|
%
|
10.9
|
%
|
||||||||||||
|
Income from operations
|
8,673
|
7,461
|
16.2
|
%
|
10.7
|
%
|
9.3
|
%
|
||||||||||||
|
Interest expense
|
-
|
24
|
(100.0
|
)%
|
0.0
|
%
|
0.0
|
%
|
||||||||||||
|
Interest income
|
(25
|
)
|
(66
|
)
|
(62.1
|
)%
|
(0.0
|
)%
|
(0.1
|
)%
|
||||||||||
|
Other expense
|
152
|
95
|
60.0
|
%
|
0.2
|
%
|
0.1
|
%
|
||||||||||||
|
Income before income taxes
|
8,546
|
7,408
|
15.4
|
%
|
10.6
|
%
|
9.2
|
%
|
||||||||||||
|
Income taxes*
|
3,233
|
2,707
|
19.4
|
%
|
37.8
|
%
|
36.5
|
%
|
||||||||||||
|
Net income
|
$
|
5,313
|
4,701
|
13.0
|
%
|
6.6
|
%
|
5.9
|
%
|
|||||||||||
|
Net income per share-basic
|
$
|
0.43
|
$
|
0.38
|
13.2
|
%
|
||||||||||||||
|
Net income per share-diluted
|
$
|
0.43
|
$
|
0.38
|
13.2
|
%
|
||||||||||||||
|
Average shares outstanding-basic
|
12,286
|
12,277
|
0.1
|
%
|
||||||||||||||||
|
Average shares outstanding-diluted
|
12,463
|
12,456
|
0.1
|
%
|
||||||||||||||||
|
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)
|
||||||||||||||||||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
July 31,
|
August 2,
|
% Over
|
July 31,
|
August 2,
|
||||||||||||||||
|
2016
|
2015
|
(Under)
|
2016
|
2015
|
||||||||||||||||
|
Income before income taxes (see above)
|
$
|
8,546
|
7,408
|
15.4
|
%
|
10.6
|
%
|
9.2
|
%
|
|||||||||||
|
Adjusted Income taxes (2)*
|
1,521
|
1,163
|
30.8
|
%
|
17.8
|
%
|
15.7
|
%
|
||||||||||||
|
Adjusted net income
|
7,025
|
6,245
|
12.5
|
%
|
8.7
|
%
|
7.8
|
%
|
||||||||||||
|
Adjusted net income per share-basic
|
$
|
0.57
|
$
|
0.51
|
11.8
|
%
|
||||||||||||||
|
Adjusted net income per share-diluted
|
$
|
0.56
|
$
|
0.50
|
12.0
|
%
|
||||||||||||||
|
Average shares outstanding-basic
|
12,286
|
12,277
|
0.1
|
%
|
||||||||||||||||
|
Average shares outstanding-diluted
|
12,463
|
12,456
|
0.1
|
%
|
||||||||||||||||
| (1) |
Culp, Inc. currently does not incur cash income tax expense in the U.S. due to its 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 8 of 8.
|
|
| (2) |
Represents estimated income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 8 of 8.
|
| * |
Percent of sales column for income taxes is calculated as a % of income before income taxes.
|
Page 2 of 8
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
CONSOLIDATED BALANCE SHEETS
|
||||||||||||||||||||
|
JULY 31, 2016, AUGUST 2, 2015, AND MAY 1, 2016
|
||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||
|
(Amounts in Thousands)
|
||||||||||||||||||||
|
Amounts
|
Increase
|
|||||||||||||||||||
|
July 31,
|
August 2,
|
(Decrease)
|
* May 1,
|
|||||||||||||||||
|
2016
|
2015
|
Dollars
|
Percent
|
2016
|
||||||||||||||||
|
Current assets
|
||||||||||||||||||||
|
Cash and cash equivalents
|
$
|
45,549
|
25,933
|
19,616
|
75.6
|
%
|
37,787
|
|||||||||||||
|
Short-term investments
|
2,434
|
6,336
|
(3,902
|
)
|
(61.6
|
)%
|
4,359
|
|||||||||||||
|
Accounts receivable
|
22,690
|
25,707
|
(3,017
|
)
|
(11.7
|
)%
|
23,481
|
|||||||||||||
|
Inventories
|
48,131
|
46,544
|
1,587
|
3.4
|
%
|
46,531
|
||||||||||||||
|
Income taxes receivable
|
-
|
142
|
(142
|
)
|
(100.0
|
)%
|
155
|
|||||||||||||
|
Other current assets
|
2,294
|
3,502
|
(1,208
|
)
|
(34.5
|
)%
|
2,477
|
|||||||||||||
|
Total current assets
|
121,098
|
108,164
|
12,934
|
12.0
|
%
|
114,790
|
||||||||||||||
|
Property, plant & equipment, net
|
41,745
|
37,480
|
4,265
|
11.4
|
%
|
39,973
|
||||||||||||||
|
Goodwill
|
11,462
|
11,462
|
-
|
0.0
|
%
|
11,462
|
||||||||||||||
|
Deferred income taxes
|
1,942
|
4,406
|
(2,464
|
)
|
(55.9
|
)%
|
2,319
|
|||||||||||||
|
Long-term Investments
|
4,611
|
2,893
|
1,718
|
59.4
|
%
|
4,025
|
||||||||||||||
|
Other assets
|
2,502
|
2,475
|
27
|
1.1
|
%
|
2,573
|
||||||||||||||
|
Total assets
|
$
|
183,360
|
166,880
|
16,480
|
9.9
|
%
|
175,142
|
|||||||||||||
|
Current liabilities
|
||||||||||||||||||||
|
Current maturities of long-term debt
|
$
|
-
|
2,200
|
(2,200
|
)
|
(100.0
|
)%
|
-
|
||||||||||||
|
Accounts payable - trade
|
26,708
|
28,233
|
(1,525
|
)
|
(5.4
|
)%
|
23,994
|
|||||||||||||
|
Accounts payable - capital expenditures
|
627
|
613
|
14
|
2.3
|
%
|
224
|
||||||||||||||
|
Accrued expenses
|
6,890
|
7,731
|
(841
|
)
|
(10.9
|
)%
|
11,922
|
|||||||||||||
|
Income taxes payable - current
|
358
|
392
|
(34
|
)
|
(8.7
|
)%
|
180
|
|||||||||||||
|
Total current liabilities
|
34,583
|
39,169
|
(4,586
|
)
|
(11.7
|
)%
|
36,320
|
|||||||||||||
|
Income taxes payable - long-term
|
3,779
|
3,634
|
145
|
4.0
|
%
|
3,841
|
||||||||||||||
|
Deferred income taxes
|
1,532
|
1,072
|
460
|
42.9
|
%
|
1,483
|
||||||||||||||
|
Line of credit
|
7,000
|
-
|
7,000
|
100.0
|
%
|
-
|
||||||||||||||
|
Deferred compensation
|
5,031
|
4,280
|
751
|
17.5
|
%
|
4,686
|
||||||||||||||
|
Total liabilities
|
51,925
|
48,155
|
3,770
|
7.8
|
%
|
46,330
|
||||||||||||||
|
Shareholders' equity
|
131,435
|
118,725
|
12,710
|
10.7
|
%
|
128,812
|
||||||||||||||
|
Total liabilities and
|
||||||||||||||||||||
|
shareholders' equity
|
$
|
183,360
|
166,880
|
16,480
|
9.9
|
%
|
175,142
|
|||||||||||||
|
Shares outstanding
|
12,307
|
12,339
|
(32
|
)
|
(0.3
|
)%
|
12,265
|
|||||||||||||
* Derived from audited financial statements.
Page 3 of 8
| CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||||
|
FOR THE THREE MONTHS ENDED JULY 31, 2016 AND AUGUST 2, 2015
|
|||||||||
|
Unaudited
|
|||||||||
|
(Amounts in Thousands)
|
|||||||||
|
THREE MONTHS ENDED
|
|||||||||
|
Amounts
|
|||||||||
|
July 31,
|
August 2,
|
||||||||
|
2016
|
2015
|
||||||||
|
Cash flows from operating activities:
|
|||||||||
|
Net income
|
$
|
5,313
|
4,701
|
||||||
|
Adjustments to reconcile net income to net cash
|
|||||||||
|
provided by operating activities:
|
|||||||||
|
Depreciation
|
1,761
|
1,555
|
|||||||
|
Amortization of other assets
|
52
|
47
|
|||||||
|
Stock-based compensation
|
761
|
265
|
|||||||
|
Deferred income taxes
|
593
|
1,641
|
|||||||
|
Realized loss on sale of short-term investments
|
12
|
-
|
|||||||
|
Loss (gain) on sale of equipment
|
9
|
(46
|
)
|
||||||
|
Excess tax benefits related to stock-based compensation
|
(167
|
)
|
(788
|
)
|
|||||
|
Foreign currency exchange gains
|
(62
|
)
|
(57
|
)
|
|||||
|
Changes in assets and liabilities:
|
|||||||||
|
Accounts receivable
|
611
|
2,774
|
|||||||
|
Inventories
|
(1,808
|
)
|
(4,068
|
)
|
|||||
|
Other current assets
|
158
|
(1,149
|
)
|
||||||
|
Other assets
|
19
|
23
|
|||||||
|
Accounts payable
|
3,036
|
(132
|
)
|
||||||
|
Accrued expenses and deferrred compensation
|
(4,911
|
)
|
(3,870
|
)
|
|||||
|
Income taxes
|
375
|
159
|
|||||||
|
Net cash provided by operating activities
|
5,752
|
1,055
|
|||||||
|
Cash flows from investing activities:
|
|||||||||
|
Capital expenditures
|
(3,139
|
)
|
(3,336
|
)
|
|||||
|
Proceeds from the sale of equipment
|
-
|
104
|
|||||||
|
Proceeds from the sale of short-term investments
|
2,000
|
3,612
|
|||||||
|
Purchase of short-term investments
|
(21
|
)
|
(33
|
)
|
|||||
|
Purchase of long-term investments
|
(559
|
)
|
(478
|
)
|
|||||
|
Net cash used in investing activities
|
(1,719
|
)
|
(131
|
)
|
|||||
|
Cash flows from financing activities:
|
|||||||||
|
Proceeds from line of credit
|
7,000
|
-
|
|||||||
|
Excess tax benefits related to stock-based compensation
|
167
|
788
|
|||||||
|
Dividends paid
|
(3,445
|
)
|
(5,676
|
)
|
|||||
|
Proceeds from common stock issued
|
11
|
56
|
|||||||
|
Net cash provided by (used in) financing activities
|
3,733
|
(4,832
|
)
|
||||||
|
Effect of exchange rate changes on cash and cash equivalents
|
(4
|
)
|
116
|
||||||
|
Increase (decrease) in cash and cash equivalents
|
7,762
|
(3,792
|
)
|
||||||
|
Cash and cash equivalents at beginning of period
|
37,787
|
29,725
|
|||||||
|
Cash and cash equivalents at end of period
|
$
|
45,549
|
25,933
|
||||||
|
Free Cash Flow (1)
|
$
|
2,217
|
(1,751
|
)
|
|||||
|
(1) Free Cash Flow reconciliation is as follows:
|
|||||||||
|
FY 2017
|
FY 2016
|
||||||||
|
A)
|
Net cash provided by operating activities
|
$
|
5,752
|
1,055
|
|||||
|
B)
|
Minus: Capital Expenditures
|
(3,139
|
)
|
(3,336
|
)
|
||||
|
C)
|
Add: Proceeds from the sale of equipment
|
-
|
104
|
||||||
|
D)
|
Add: Excess tax benefits related to stock-based compensation
|
167
|
788
|
||||||
|
E)
|
Minus: Purchase of long-term investments
|
(559
|
)
|
(478
|
)
|
||||
|
F)
|
Effects of exchange rate changes on cash and cash equivalents
|
(4
|
)
|
116
|
|||||
|
$
|
2,217
|
(1,751
|
)
|
||||||
Page 4 of 8
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
STATEMENTS OF OPERATIONS BY SEGMENT
|
||||||||||||||||||||
|
FOR THE THREE MONTHS ENDED JULY 31, 2016 AND AUGUST 2, 2015
|
||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||
|
(Amounts in thousands)
|
||||||||||||||||||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Total Sales
|
|||||||||||||||||||
|
July 31,
|
August 2,
|
% Over
|
July 31,
|
August 2,
|
||||||||||||||||
|
Net Sales by Segment
|
2016
|
2015
|
(Under)
|
2016
|
2015
|
|||||||||||||||
|
Mattress Fabrics
|
$
|
50,530
|
47,808
|
5.7
|
%
|
62.6
|
%
|
59.6
|
%
|
|||||||||||
|
Upholstery Fabrics
|
30,152
|
32,377
|
(6.9
|
)%
|
37.4
|
%
|
40.4
|
%
|
||||||||||||
|
Net Sales
|
$
|
80,682
|
80,185
|
0.6
|
%
|
100.0
|
%
|
100.0
|
%
|
|||||||||||
|
Gross Profit by Segment
|
Gross Profit Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$
|
11,901
|
9,925
|
19.9
|
%
|
23.6
|
%
|
20.8
|
%
|
|||||||||||
|
Upholstery Fabrics
|
6,518
|
6,277
|
3.8
|
%
|
21.6
|
%
|
19.4
|
%
|
||||||||||||
|
Gross Profit
|
18,419
|
16,202
|
13.7
|
%
|
22.8
|
%
|
20.2
|
%
|
||||||||||||
|
Selling, General and Administrative expenses by Segment
|
Percent of Sales
|
|||||||||||||||||||
|
Mattress Fabrics
|
$
|
3,499
|
2,923
|
19.7
|
%
|
6.9
|
%
|
6.1
|
%
|
|||||||||||
|
Upholstery Fabrics
|
3,534
|
3,595
|
(1.7
|
)%
|
11.7
|
%
|
11.1
|
%
|
||||||||||||
|
Unallocated Corporate expenses
|
2,713
|
2,223
|
22.0
|
%
|
3.4
|
%
|
2.8
|
%
|
||||||||||||
|
Selling, General and Administrative Expenses
|
9,746
|
8,741
|
11.5
|
%
|
12.1
|
%
|
10.9
|
%
|
||||||||||||
|
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$
|
8,402
|
7,003
|
20.0
|
%
|
16.6
|
%
|
14.6
|
%
|
|||||||||||
|
Upholstery Fabrics
|
2,984
|
2,681
|
11.3
|
%
|
9.9
|
%
|
8.3
|
%
|
||||||||||||
|
Unallocated corporate expenses
|
(2,713
|
)
|
(2,223
|
)
|
22.0
|
%
|
(3.4
|
)%
|
(2.8
|
)%
|
||||||||||
|
Operating Income
|
8,673
|
7,461
|
16.2
|
%
|
10.7
|
%
|
9.3
|
%
|
||||||||||||
|
Return on Capital (1)
|
||||||||||||||||||||
|
Mattress Fabrics
|
44.4
|
%
|
39.5
|
%
|
||||||||||||||||
|
Upholstery Fabrics
|
69.7
|
%
|
65.0
|
%
|
||||||||||||||||
|
Unallocated Corporate
|
N/A
|
N/A
|
||||||||||||||||||
|
Consolidated
|
37.5
|
%
|
34.3
|
%
|
||||||||||||||||
|
Capital Employed (2)
|
||||||||||||||||||||
|
Mattress Fabrics
|
76,646
|
71,349
|
7.4
|
%
|
||||||||||||||||
|
Upholstery Fabrics
|
17,221
|
18,946
|
(9.1
|
)%
|
||||||||||||||||
|
Unallocated Corporate
|
732
|
298
|
N/A
|
|||||||||||||||||
|
Consolidated
|
94,599
|
90,593
|
4.4
|
%
|
||||||||||||||||
|
Depreciation expense by Segment
|
||||||||||||||||||||
|
Mattress Fabrics
|
$
|
1,556
|
1,359
|
14.5
|
%
|
|||||||||||||||
|
Upholstery Fabrics
|
205
|
196
|
4.6
|
%
|
||||||||||||||||
|
Depreciation expense
|
1,761
|
1,555
|
13.2
|
%
|
||||||||||||||||
|
Notes:
|
|
| (1) |
See pages 6 and 7 of this financial information release for calculations.
|
| (2) |
The capital employed balances are as of July 31, 2016 and August 2, 2015.
|
Page 5 of 8
| CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA | ||||||||||||||||||||
| FOR THE TWELVE MONTHS ENDED JULY 31, 2016 AND AUGUST 2, 2015 | ||||||||||||||||||||
| (UNAUDITED) | ||||||||||||||||||||
| (AMOUNTS IN THOUSANDS) | ||||||||||||||||||||
|
Quarter Ended
|
||||||||||||||||||||
|
Trailing 12
|
||||||||||||||||||||
|
Months
|
||||||||||||||||||||
|
11/1/2015
|
1/31/2016
|
5/1/2016
|
7/31/2016
|
7/31/2016
|
||||||||||||||||
|
Net income
|
$
|
3,771
|
$
|
4,862
|
$
|
3,601
|
$
|
5,313
|
$
|
17,547
|
||||||||||
|
Income taxes
|
2,373
|
2,317
|
3,566
|
3,233
|
11,489
|
|||||||||||||||
|
Interest income, net
|
(69
|
)
|
(38
|
)
|
(26
|
)
|
(25
|
)
|
(158
|
)
|
||||||||||
|
Depreciation and amortization expense
|
1,668
|
1,741
|
1,830
|
1,813
|
7,052
|
|||||||||||||||
|
Stock based compensation
|
1,074
|
625
|
778
|
761
|
3,238
|
|||||||||||||||
|
Adjusted EBITDA
|
$
|
8,817
|
$
|
9,507
|
$
|
9,749
|
$
|
11,095
|
$
|
39,168
|
||||||||||
|
Quarter Ended
|
||||||||||||||||||||
|
Trailing 12
|
||||||||||||||||||||
|
Months
|
||||||||||||||||||||
|
11/2/2014
|
2/1/2015
|
5/3/2015
|
8/2/2015
|
8/2/2015
|
||||||||||||||||
|
Net income
|
$
|
3,001
|
$
|
3,812
|
$
|
4,913
|
$
|
4,701
|
$
|
16,427
|
||||||||||
|
Income taxes
|
1,889
|
2,110
|
1,772
|
2,707
|
8,478
|
|||||||||||||||
|
Interest income, net
|
(153
|
)
|
(202
|
)
|
(128
|
)
|
(42
|
)
|
(525
|
)
|
||||||||||
|
Depreciation and amortization expense
|
1,460
|
1,478
|
1,576
|
1,602
|
6,116
|
|||||||||||||||
|
Stock based compensation
|
245
|
191
|
304
|
265
|
1,005
|
|||||||||||||||
|
Adjusted EBITDA
|
$
|
6,442
|
$
|
7,389
|
$
|
8,437
|
$
|
9,233
|
$
|
31,501
|
||||||||||
|
% Over (Under)
|
36.9
|
%
|
28.7
|
%
|
15.6
|
%
|
20.2
|
%
|
24.3
|
%
|
||||||||||
Page 6 of 8
| CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||||||||||||||
| RETURN ON CAPITAL EMPLOYED BY SEGMENT | ||||||||||||||||||||||||||||||||
| FOR THE THREE MONTHS ENDED JULY 31, 2016 | ||||||||||||||||||||||||||||||||
| (Amounts in Thousands) | ||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||
|
Operating Income
|
||||||||||||||||||||||||||||||||
|
Three Months
|
Average
|
Return on
|
||||||||||||||||||||||||||||||
|
Ended
|
Capital
|
Avg. Capital
|
||||||||||||||||||||||||||||||
|
July 31,
2016 (1)
|
Employed
(3)
|
Employed
(2)
|
||||||||||||||||||||||||||||||
|
Mattress Fabrics
|
$
|
8,402
|
$
|
75,642
|
44.4
|
%
|
||||||||||||||||||||||||||
|
Upholstery Fabrics
|
2,984
|
17,123
|
69.7
|
%
|
||||||||||||||||||||||||||||
|
(less: Unallocated Corporate)
|
(2,713
|
)
|
(287
|
)
|
N/A
|
|||||||||||||||||||||||||||
|
Total
|
$
|
8,673
|
$
|
92,478
|
37.5
|
%
|
||||||||||||||||||||||||||
|
Average Capital Employed
|
As of the three Months Ended July 31, 2016
|
As of the three Months Ended May 1, 2016
|
||||||||||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
|||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||
|
Total assets
|
92,959
|
33,550
|
56,851
|
183,360
|
94,878
|
29,463
|
50,801
|
175,142
|
||||||||||||||||||||||||
|
Total liabilities
|
(16,313
|
)
|
(16,329
|
)
|
(19,283
|
)
|
(51,925
|
)
|
(20,241
|
)
|
(12,438
|
)
|
(13,651
|
)
|
(46,330
|
)
|
||||||||||||||||
|
Subtotal
|
$
|
76,646
|
$
|
17,221
|
$
|
37,568
|
$
|
131,435
|
$
|
74,637
|
$
|
17,025
|
$
|
37,150
|
$
|
128,812
|
||||||||||||||||
|
Less:
|
||||||||||||||||||||||||||||||||
|
Cash and cash equivalents
|
-
|
-
|
(45,549
|
)
|
(45,549
|
)
|
-
|
-
|
(37,787
|
)
|
(37,787
|
)
|
||||||||||||||||||||
|
Short-term investments
|
-
|
-
|
(2,434
|
)
|
(2,434
|
)
|
-
|
-
|
(4,359
|
)
|
(4,359
|
)
|
||||||||||||||||||||
|
Long-term investments
|
-
|
-
|
(4,611
|
)
|
(4,611
|
)
|
-
|
-
|
(4,025
|
)
|
(4,025
|
)
|
||||||||||||||||||||
|
Income taxes receivable
|
-
|
-
|
-
|
-
|
-
|
-
|
(155
|
)
|
(155
|
)
|
||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
(1,942
|
)
|
(1,942
|
)
|
-
|
-
|
(2,319
|
)
|
(2,319
|
)
|
||||||||||||||||||||
|
Income taxes payable - current
|
-
|
-
|
358
|
358
|
-
|
-
|
180
|
180
|
||||||||||||||||||||||||
|
Income taxes payable - long-term
|
-
|
-
|
3,779
|
3,779
|
-
|
-
|
3,841
|
3,841
|
||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
1,532
|
1,532
|
-
|
-
|
1,483
|
1,483
|
||||||||||||||||||||||||
|
Line of credit
|
-
|
-
|
7,000
|
7,000
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
|
Deferred compensation
|
-
|
-
|
5,031
|
5,031
|
-
|
-
|
4,686
|
4,686
|
||||||||||||||||||||||||
|
Total Capital Employed
|
$
|
76,646
|
$
|
17,221
|
$
|
732
|
$
|
94,599
|
$
|
74,637
|
$
|
17,025
|
$
|
(1,305
|
)
|
$
|
90,357
|
|||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||
|
Average Capital
Employed (3)
|
$
|
75,642
|
$
|
17,123
|
$
|
(287
|
)
|
$
|
92,478
|
|||||||||||||||||||||||
| Notes: | |
| (1) |
See reconciliation per page 4 of this financial information release.
|
| (2) |
Return on average capital employed represents operating income for the three month period ending July 31, 2016 times four 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, noncurrent deferred tax assets and liabilities, income taxes receivable and payable,
|
|
|
line of credit, and deferred compensation.
|
|
| (3) |
Average capital employed was computed using the two periods ending July 31, 2016 and May 1, 2016.
|
Page 7 of 8
| CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||||||||||||||
| RETURN ON CAPITAL EMPLOYED BY SEGMENT | ||||||||||||||||||||||||||||||||
| FOR THE THREE MONTHS ENDED AUGUST 2, 2015 | ||||||||||||||||||||||||||||||||
| (Amounts in Thousands) | ||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||
|
Operating Income
|
||||||||||||||||||||||||||||||||
|
Three Months
|
Average
|
Return on
|
||||||||||||||||||||||||||||||
|
Ended
|
Capital
|
Avg. Capital
|
||||||||||||||||||||||||||||||
|
August 2,
2015 (1)
|
Employed
(3)
|
Employed
(2)
|
||||||||||||||||||||||||||||||
|
Mattress Fabrics
|
$
|
7,003
|
$
|
70,911
|
39.5
|
%
|
||||||||||||||||||||||||||
|
Upholstery Fabrics
|
2,681
|
16,486
|
65.0
|
%
|
||||||||||||||||||||||||||||
|
(less: Unallocated Corporate)
|
(2,223
|
)
|
(488
|
)
|
N/A
|
|||||||||||||||||||||||||||
|
Total
|
$
|
7,461
|
$
|
86,909
|
34.3
|
%
|
||||||||||||||||||||||||||
|
Average Capital Employed
|
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
|
41,471
|
166,880
|
89,066
|
32,838
|
49,396
|
171,300
|
||||||||||||||||||||||||
|
Total liabilities
|
(20,265
|
)
|
(14,849
|
)
|
(13,041
|
)
|
(48,155
|
)
|
(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
|
-
|
-
|
(4,406
|
)
|
(4,406
|
)
|
-
|
-
|
(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
|
-
|
-
|
1,072
|
1,072
|
-
|
-
|
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)
|
$
|
70,911
|
$
|
16,486
|
$
|
(488
|
)
|
$
|
86,909
|
|||||||||||||||||||||||
| Notes: | |
| (1) |
See reconciliation per page 4 of this financial information release.
|
| (2) |
Return on average capital employed represents operating income for the three month period ending August 2, 2015 times four 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, noncurrent deferred tax assets and liabilities,
|
|
|
income taxes receivable and payable, and deferred compensation.
|
|
| (3) |
Average capital employed was computed using the two periods ending August 2, 2015 and May 3, 2015.
|
Page 8 of 8
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
|||||||||||
|
CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE,
NET INCOME AND EARNINGS PER SHARE
|
|||||||||||
|
FOR THE THREE MONTHS ENDED JULY 31, 2016 AND AUGUST 2, 2015
|
|||||||||||
|
Unaudited
|
|||||||||||
|
(Amounts in Thousands)
|
|||||||||||
|
THREE MONTHS ENDED
|
|||||||||||
| Amounts | |||||||||||
|
July 31,
|
August 2,
|
||||||||||
|
2016
|
2015
|
||||||||||
|
Consolidated Effective GAAP Income Tax Rate
|
(1)
|
|
37.8
|
%
|
36.5
|
%
|
|||||
|
Non-Cash U.S. Income Tax Expense
|
(19.6
|
)%
|
(20.5
|
)%
|
|||||||
|
Non-Cash Foreign Income Tax Expense
|
(0.4
|
)%
|
(0.3
|
)%
|
|||||||
|
Consolidated Adjusted Effective Income Tax Rate
|
(2)
|
|
17.8
|
%
|
15.7
|
%
|
|||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||||||
|
As reported
|
As Adjusted
|
As reported
|
As Adjusted
|
|||||||||||||||||||||
|
July 31,
|
July 31,
|
August 2,
|
August 2,
|
|||||||||||||||||||||
| 2016 |
Adjustments
|
2016 | 2015 |
Adjustments
|
2015 | |||||||||||||||||||
|
Income before income taxes
|
$
|
8,546
|
$
|
8,546
|
$
|
7,408
|
$
|
7,408
|
||||||||||||||||
|
Income taxes (3)
|
3,233
|
$
|
(1,712
|
)
|
1,521
|
2,707
|
$
|
(1,544
|
)
|
1,163
|
||||||||||||||
|
Net income
|
$
|
5,313
|
$
|
1,712
|
$
|
7,025
|
$
|
4,701
|
$
|
1,544
|
$
|
6,245
|
||||||||||||
|
Net income per share-basic
|
$
|
0.43
|
$
|
0.14
|
$
|
0.57
|
$
|
0.38
|
$
|
0.13
|
$
|
0.51
|
||||||||||||
|
Net income per share-diluted
|
$
|
0.43
|
$
|
0.14
|
$
|
0.56
|
$
|
0.38
|
$
|
0.12
|
$
|
0.50
|
||||||||||||
|
Average shares outstanding-basic
|
12,286
|
12,286
|
12,286
|
12,277
|
12,277
|
12,277
|
||||||||||||||||||
|
Average shares outstanding-diluted
|
12,463
|
12,463
|
12,463
|
12,456
|
12,456
|
12,456
|
||||||||||||||||||
| (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) |
Adjusted income taxes calculated using the Consolidated Adjusted Effective Income Tax Rate as reflected above.
|