Attached files
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EX-99.(A) - EXHIBIT 99(A) - CULP INC | a51464775ex99a.htm |
8-K - CULP, INC. 8-K - CULP INC | a51464775.htm |
Exhibit 99(b)
Page 1 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
CONSOLIDATED STATEMENTS OF NET INCOME
|
||||||||||||||||||||
FOR THREE MONTHS ENDED OCTOBER 30, 2016 AND NOVEMBER 1, 2015
|
||||||||||||||||||||
(UNAUDITED)
|
||||||||||||||||||||
(Amounts in Thousands, Except for Per Share Data)
|
||||||||||||||||||||
THREE MONTHS ENDED
|
||||||||||||||||||||
Amounts
|
Percent of Sales
|
|||||||||||||||||||
October 30,
|
November 1,
|
% Over
|
October 30,
|
November 1,
|
||||||||||||||||
2016
|
2015
|
(Under)
|
2016
|
2015
|
||||||||||||||||
Net sales
|
$
|
75,343
|
76,956
|
(2.1
|
)%
|
100.0
|
%
|
100.0
|
%
|
|||||||||||
Cost of sales
|
58,442
|
61,223
|
(4.5
|
)%
|
77.6
|
%
|
79.6
|
%
|
||||||||||||
Gross profit
|
16,901
|
15,733
|
7.4
|
%
|
22.4
|
%
|
20.4
|
%
|
||||||||||||
Selling, general and
|
||||||||||||||||||||
administrative expenses
|
9,602
|
9,433
|
1.8
|
%
|
12.7
|
%
|
12.3
|
%
|
||||||||||||
Income from operations
|
7,299
|
6,300
|
15.9
|
%
|
9.7
|
%
|
8.2
|
%
|
||||||||||||
Interest income
|
(15
|
)
|
(69
|
)
|
(78.3
|
)%
|
(0.0
|
)%
|
(0.1
|
)%
|
||||||||||
Other expense
|
155
|
225
|
(31.1
|
)%
|
0.2
|
%
|
0.3
|
%
|
||||||||||||
Income before income taxes
|
7,159
|
6,144
|
16.5
|
%
|
9.5
|
%
|
8.0
|
%
|
||||||||||||
Income taxes*
|
2,684
|
2,373
|
13.1
|
%
|
37.5
|
%
|
38.6
|
%
|
||||||||||||
Net income
|
$
|
4,475
|
3,771
|
18.7
|
%
|
5.9
|
%
|
4.9
|
%
|
|||||||||||
Net income per share-basic
|
$
|
0.36
|
$
|
0.31
|
16.1
|
%
|
||||||||||||||
Net income per share-diluted
|
$
|
0.36
|
$
|
0.30
|
20.0
|
%
|
||||||||||||||
Average shares outstanding-basic
|
12,308
|
12,343
|
(0.3
|
)%
|
||||||||||||||||
Average shares outstanding-diluted
|
12,507
|
12,484
|
0.2
|
%
|
||||||||||||||||
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)
|
||||||||||||||||||||
THREE MONTHS ENDED
|
||||||||||||||||||||
Amounts
|
Percent of Sales
|
|||||||||||||||||||
October 30,
|
November 1,
|
% Over
|
October 30,
|
November 1,
|
||||||||||||||||
2016
|
2015
|
(Under)
|
2016
|
2015
|
||||||||||||||||
Income before income taxes (see above)
|
$
|
7,159
|
6,144
|
16.5
|
%
|
9.5
|
%
|
8.0
|
%
|
|||||||||||
Adjusted Income taxes (2)*
|
1,274
|
965
|
32.0
|
%
|
17.8
|
%
|
15.7
|
%
|
||||||||||||
Adjusted net income
|
5,885
|
5,179
|
13.6
|
%
|
7.8
|
%
|
6.7
|
%
|
||||||||||||
Adjusted net income per share-basic
|
$
|
0.48
|
$
|
0.42
|
14.3
|
%
|
||||||||||||||
Adjusted net income per share-diluted
|
$
|
0.47
|
$
|
0.41
|
14.6
|
%
|
||||||||||||||
Average shares outstanding-basic
|
12,308
|
12,343
|
(0.3
|
)%
|
||||||||||||||||
Average shares outstanding-diluted
|
12,507
|
12,484
|
0.2
|
%
|
||||||||||||||||
(1) Culp, Inc. currently does not incur cash income tax expense in the US due to its $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 SIX MONTHS ENDED OCTOBER 30, 2016 AND NOVEMBER 1, 2015
|
||||||||||||||||||||
(UNAUDITED)
|
||||||||||||||||||||
(Amounts in Thousands, Except for Per Share Data)
|
||||||||||||||||||||
SIX MONTHS ENDED
|
||||||||||||||||||||
Amounts
|
Percent of Sales
|
|||||||||||||||||||
October 30,
|
November 1,
|
% Over
|
October 30,
|
November 1,
|
||||||||||||||||
2016
|
2015
|
(Under)
|
2016
|
2015
|
||||||||||||||||
Net sales
|
$
|
156,026
|
157,141
|
(0.7
|
)%
|
100.0
|
%
|
100.0
|
%
|
|||||||||||
Cost of sales
|
120,705
|
125,206
|
(3.6
|
)%
|
77.4
|
%
|
79.7
|
%
|
||||||||||||
Gross profit
|
35,321
|
31,935
|
10.6
|
%
|
22.6
|
%
|
20.3
|
%
|
||||||||||||
Selling, general and
|
||||||||||||||||||||
administrative expenses
|
19,348
|
18,175
|
6.5
|
%
|
12.4
|
%
|
11.6
|
%
|
||||||||||||
Income from operations
|
15,973
|
13,760
|
16.1
|
%
|
10.2
|
%
|
8.8
|
%
|
||||||||||||
Interest income
|
(40
|
)
|
(112
|
)
|
(64.3
|
)%
|
(0.0
|
)%
|
(0.1
|
)%
|
||||||||||
Other expense
|
307
|
320
|
(4.1
|
)%
|
0.2
|
%
|
0.2
|
%
|
||||||||||||
Income before income taxes
|
15,706
|
13,552
|
15.9
|
%
|
10.1
|
%
|
8.6
|
%
|
||||||||||||
Income taxes*
|
5,917
|
5,081
|
16.5
|
%
|
37.7
|
%
|
37.5
|
%
|
||||||||||||
Net income
|
$
|
9,789
|
8,471
|
15.6
|
%
|
6.3
|
%
|
5.4
|
%
|
|||||||||||
Net income per share-basic
|
$
|
0.80
|
$
|
0.69
|
15.9
|
%
|
||||||||||||||
Net income per share-diluted
|
$
|
0.78
|
$
|
0.68
|
14.7
|
%
|
||||||||||||||
Average shares outstanding-basic
|
12,297
|
12,310
|
(0.1
|
)%
|
||||||||||||||||
Average shares outstanding-diluted
|
12,495
|
12,481
|
0.1
|
%
|
||||||||||||||||
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)
|
||||||||||||||||||||
SIX MONTHS ENDED
|
||||||||||||||||||||
Amounts
|
Percent of Sales
|
|||||||||||||||||||
October 30,
|
November 1,
|
% Over
|
October 30,
|
November 1,
|
||||||||||||||||
2016
|
2015
|
(Under)
|
2016
|
2015
|
||||||||||||||||
Income before income taxes (see above)
|
$
|
15,706
|
13,552
|
15.9
|
%
|
10.1
|
%
|
8.6
|
%
|
|||||||||||
Adjusted Income taxes (2)*
|
2,796
|
2,128
|
31.4
|
%
|
17.8
|
%
|
15.7
|
%
|
||||||||||||
Adjusted net income
|
12,910
|
11,424
|
13.0
|
%
|
8.3
|
%
|
7.3
|
%
|
||||||||||||
Adjusted net income per share-basic
|
$
|
1.05
|
$
|
0.93
|
12.9
|
%
|
||||||||||||||
Adjusted net income per share-diluted
|
$
|
1.03
|
$
|
0.92
|
12.0
|
%
|
||||||||||||||
Average shares outstanding-basic
|
12,297
|
12,310
|
(0.1
|
)%
|
||||||||||||||||
Average shares outstanding-diluted
|
12,495
|
12,481
|
0.1
|
%
|
||||||||||||||||
(1) Culp, Inc. currently does not incur cash income tax expense in the US due to its $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
|
||||||||||||||||||||
OCTOBER 30, 2016, NOVEMBER 1, 2015, AND MAY 1, 2016
|
||||||||||||||||||||
Unaudited
|
||||||||||||||||||||
(Amounts in Thousands)
|
||||||||||||||||||||
Amounts
|
Increase
|
|||||||||||||||||||
October 30,
|
November 1,
|
(Decrease)
|
* May 1,
|
|||||||||||||||||
2016
|
2015
|
Dollars
|
Percent
|
2016
|
||||||||||||||||
Current assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
13,910
|
31,176
|
(17,266
|
)
|
(55.4
|
)%
|
37,787
|
||||||||||||
Short-term investments
|
2,430
|
6,320
|
(3,890
|
)
|
(61.6
|
)%
|
4,359
|
|||||||||||||
Accounts receivable
|
19,039
|
23,314
|
(4,275
|
)
|
(18.3
|
)%
|
23,481
|
|||||||||||||
Inventories
|
45,954
|
46,479
|
(525
|
)
|
(1.1
|
)%
|
46,531
|
|||||||||||||
Income taxes receivable
|
-
|
75
|
(75
|
)
|
(100.0
|
)%
|
155
|
|||||||||||||
Other current assets
|
1,675
|
2,614
|
(939
|
)
|
(35.9
|
)%
|
2,477
|
|||||||||||||
Total current assets
|
83,008
|
109,978
|
(26,970
|
)
|
(24.5
|
)%
|
114,790
|
|||||||||||||
Property, plant & equipment, net
|
45,537
|
38,319
|
7,218
|
18.8
|
%
|
39,973
|
||||||||||||||
Goodwill
|
11,462
|
11,462
|
-
|
0.0
|
%
|
11,462
|
||||||||||||||
Deferred income taxes
|
581
|
3,415
|
(2,834
|
)
|
(83.0
|
)%
|
2,319
|
|||||||||||||
Long-term Investments - Held-To-Maturity
|
31,050
|
-
|
31,050
|
100.0
|
%
|
-
|
||||||||||||||
Long-term Investments - Rabbi Trust
|
4,994
|
3,279
|
1,715
|
52.3
|
%
|
4,025
|
||||||||||||||
Other assets
|
2,495
|
2,494
|
1
|
0.0
|
%
|
2,573
|
||||||||||||||
Total assets
|
$
|
179,127
|
168,947
|
10,180
|
6.0
|
%
|
175,142
|
|||||||||||||
Current liabilities
|
||||||||||||||||||||
Accounts payable - trade
|
$
|
20,183
|
25,221
|
(5,038
|
)
|
(20.0
|
)%
|
23,994
|
||||||||||||
Accounts payable - capital expenditures
|
3,000
|
1,269
|
1,731
|
136.4
|
%
|
224
|
||||||||||||||
Accrued expenses
|
8,878
|
9,895
|
(1,017
|
)
|
(10.3
|
)%
|
11,922
|
|||||||||||||
Income taxes payable - current
|
513
|
305
|
208
|
68.2
|
%
|
180
|
||||||||||||||
Total current liabilities
|
32,574
|
36,690
|
(4,116
|
)
|
(11.2
|
)%
|
36,320
|
|||||||||||||
Income taxes payable - long-term
|
3,734
|
3,655
|
79
|
2.2
|
%
|
3,841
|
||||||||||||||
Deferred income taxes
|
1,699
|
1,206
|
493
|
40.9
|
%
|
1,483
|
||||||||||||||
Deferred compensation
|
5,171
|
4,421
|
750
|
17.0
|
%
|
4,686
|
||||||||||||||
Total liabilities
|
43,178
|
45,972
|
(2,794
|
)
|
(6.1
|
)%
|
46,330
|
|||||||||||||
Shareholders' equity
|
135,949
|
122,975
|
12,974
|
10.6
|
%
|
128,812
|
||||||||||||||
Total liabilities and
|
||||||||||||||||||||
shareholders' equity
|
$
|
179,127
|
168,947
|
10,180
|
6.0
|
%
|
175,142
|
|||||||||||||
Shares outstanding
|
12,312
|
12,350
|
(38
|
)
|
(0.3
|
)%
|
12,265
|
|||||||||||||
* Derived from audited financial statements.
|
Page 4 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE
|
|||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||||
FOR THE SIX MONTHS ENDED OCTOBER 30, 2016 AND NOVEMBER 1, 2015
|
|||||||||
Unaudited
|
|||||||||
(Amounts in Thousands)
|
|||||||||
SIX MONTHS ENDED
|
|||||||||
Amounts
|
|||||||||
October 30,
|
November 1,
|
||||||||
2016
|
2015
|
||||||||
Cash flows from operating activities:
|
|||||||||
Net income
|
$
|
9,789
|
8,471
|
||||||
Adjustments to reconcile net income to net cash
|
|||||||||
provided by operating activities:
|
|||||||||
Depreciation
|
3,511
|
3,184
|
|||||||
Amortization of other assets
|
80
|
86
|
|||||||
Stock-based compensation
|
1,657
|
1,339
|
|||||||
Deferred income taxes
|
2,121
|
2,816
|
|||||||
Realized loss on sale of short-term investments
|
12
|
56
|
|||||||
Loss (gain) on sale of equipment
|
9
|
(60
|
)
|
||||||
Excess tax benefits related to stock-based compensation
|
(167
|
)
|
(838
|
)
|
|||||
Foreign currency exchange gains
|
(53
|
)
|
(13
|
)
|
|||||
Changes in assets and liabilities:
|
|||||||||
Accounts receivable
|
4,142
|
4,892
|
|||||||
Inventories
|
219
|
(4,135
|
)
|
||||||
Other current assets
|
751
|
(302
|
)
|
||||||
Other assets
|
-
|
8
|
|||||||
Accounts payable
|
(3,274
|
)
|
(2,921
|
)
|
|||||
Accrued expenses and deferrred compensation
|
(2,749
|
)
|
(1,547
|
)
|
|||||
Income taxes
|
554
|
168
|
|||||||
Net cash provided by operating activities
|
16,602
|
11,204
|
|||||||
Cash flows from investing activities:
|
|||||||||
Capital expenditures
|
(6,308
|
)
|
(5,255
|
)
|
|||||
Proceeds from the sale of equipment
|
-
|
225
|
|||||||
Proceeds from the sale of short-term investments
|
2,000
|
3,612
|
|||||||
Purchase of short-term investments
|
(23
|
)
|
(46
|
)
|
|||||
Purchase of long-term investments (Held-To-Maturity)
|
(31,050
|
)
|
-
|
||||||
Purchase of long-term investments (Rabbi Trust)
|
(929
|
)
|
(864
|
)
|
|||||
Net cash used in investing activities
|
(36,310
|
)
|
(2,328
|
)
|
|||||
Cash flows from financing activities:
|
|||||||||
Proceeds from line of credit
|
7,000
|
-
|
|||||||
Payments on line of credit
|
(7,000
|
)
|
-
|
||||||
Payments on long-term debt
|
-
|
(2,200
|
)
|
||||||
Excess tax benefits related to stock-based compensation
|
167
|
838
|
|||||||
Dividends paid
|
(4,307
|
)
|
(6,417
|
)
|
|||||
Payments on debt issuance costs
|
(2
|
)
|
(43
|
)
|
|||||
Proceeds from common stock issued
|
11
|
126
|
|||||||
Net cash used in financing activities
|
(4,131
|
)
|
(7,696
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
(38
|
)
|
271
|
||||||
(Decrease) increase in cash and cash equivalents
|
(23,877
|
)
|
1,451
|
||||||
Cash and cash equivalents at beginning of period
|
37,787
|
29,725
|
|||||||
Cash and cash equivalents at end of period
|
$
|
13,910
|
31,176
|
||||||
Free Cash Flow (1)
|
$
|
9,494
|
6,419
|
(1) Free Cash Flow reconciliation is as follows:
|
|||||||||
FY 2017
|
FY 2016
|
||||||||
A)
|
Net cash provided by operating activities
|
$
|
16,602
|
11,204
|
|||||
B)
|
Minus: Capital Expenditures
|
(6,308
|
)
|
(5,255
|
)
|
||||
C)
|
Add: Proceeds from the sale of equipment
|
-
|
225
|
||||||
D)
|
Add: Excess tax benefits related to stock-based compensation
|
167
|
838
|
||||||
E)
|
Minus: Purchase of long-term investments (Rabbi Trust)
|
(929
|
)
|
(864
|
)
|
||||
F)
|
Effects of exchange rate changes on cash and cash equivalents
|
(38
|
)
|
271
|
|||||
$
|
9,494
|
6,419
|
|||||||
Page 5 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
STATEMENTS OF OPERATIONS BY SEGMENT
|
||||||||||||||||||||
FOR THE THREE MONTHS ENDED OCTOBER 30, 2016 AND NOVEMBER 1, 2015
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||||||
THREE MONTHS ENDED
|
||||||||||||||||||||
Amounts
|
Percent of Total Sales
|
|||||||||||||||||||
October 30,
|
November 1,
|
% Over
|
October 30,
|
November 1,
|
||||||||||||||||
Net Sales by Segment
|
2016
|
2015
|
(Under)
|
2016
|
2015
|
|||||||||||||||
Mattress Fabrics
|
$
|
45,527
|
45,436
|
0.2
|
%
|
60.4
|
%
|
59.0
|
%
|
|||||||||||
Upholstery Fabrics
|
29,816
|
31,520
|
(5.4
|
)%
|
39.6
|
%
|
41.0
|
%
|
||||||||||||
Net Sales
|
$
|
75,343
|
76,956
|
(2.1
|
)%
|
100.0
|
%
|
100.0
|
%
|
|||||||||||
Gross Profit by Segment
|
Gross Profit Margin
|
|||||||||||||||||||
Mattress Fabrics
|
$
|
10,756
|
9,456
|
13.7
|
%
|
23.6
|
%
|
20.8
|
%
|
|||||||||||
Upholstery Fabrics
|
6,145
|
6,277
|
(2.1
|
)%
|
20.6
|
%
|
19.9
|
%
|
||||||||||||
Gross Profit
|
$
|
16,901
|
15,733
|
7.4
|
%
|
22.4
|
%
|
20.4
|
%
|
|||||||||||
Selling, General and Administrative Expenses by Segment |
Percent of Sales
|
|||||||||||||||||||
Mattress Fabrics
|
$
|
3,296
|
2,989
|
10.3
|
%
|
7.2
|
%
|
6.6
|
%
|
|||||||||||
Upholstery Fabrics
|
3,652
|
3,813
|
(4.2
|
)%
|
12.2
|
%
|
12.1
|
%
|
||||||||||||
Unallocated Corporate expenses
|
2,654
|
2,631
|
0.9
|
%
|
3.5
|
%
|
3.4
|
%
|
||||||||||||
Selling, General and Administrative Expenses
|
$
|
9,602
|
9,433
|
1.8
|
%
|
12.7
|
%
|
12.3
|
%
|
|||||||||||
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
|||||||||||||||||||
Mattress Fabrics
|
$
|
7,460
|
6,467
|
15.4
|
%
|
16.4
|
%
|
14.2
|
%
|
|||||||||||
Upholstery Fabrics
|
2,493
|
2,464
|
1.2
|
%
|
8.4
|
%
|
7.8
|
%
|
||||||||||||
Unallocated corporate expenses
|
(2,654
|
)
|
(2,631
|
)
|
0.9
|
%
|
(3.5
|
)%
|
(3.4
|
)%
|
||||||||||
Operating income
|
$
|
7,299
|
6,300
|
15.9
|
%
|
9.7
|
%
|
8.2
|
%
|
|||||||||||
Depreciation by Segment
|
||||||||||||||||||||
Mattress Fabrics
|
$
|
1,545
|
1,424
|
8.5
|
%
|
|||||||||||||||
Upholstery Fabrics
|
206
|
205
|
0.5
|
%
|
||||||||||||||||
Depreciation
|
$
|
1,751
|
1,629
|
7.5
|
%
|
Page 6 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
STATEMENTS OF OPERATIONS BY SEGMENT
|
||||||||||||||||||||
FOR THE SIX MONTHS ENDED OCTOBER 30, 2016 AND NOVEMBER 1, 2015
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||||||
SIX MONTHS ENDED
|
||||||||||||||||||||
Amounts
|
Percent of Total Sales
|
|||||||||||||||||||
October 30,
|
November 1,
|
% Over
|
October 30,
|
November 1,
|
||||||||||||||||
Net Sales by Segment
|
2016
|
2015
|
(Under)
|
2016
|
2015
|
|||||||||||||||
Mattress Fabrics
|
$
|
96,057
|
93,245
|
3.0
|
%
|
61.6
|
%
|
59.3
|
%
|
|||||||||||
Upholstery Fabrics
|
59,969
|
63,896
|
(6.1
|
)%
|
38.4
|
%
|
40.7
|
%
|
||||||||||||
Net Sales
|
$
|
156,026
|
157,141
|
(0.7
|
)%
|
100.0
|
%
|
100.0
|
%
|
|||||||||||
Gross Profit by Segment
|
Gross Profit Margin
|
|||||||||||||||||||
Mattress Fabrics
|
$
|
22,657
|
19,381
|
16.9
|
%
|
23.6
|
%
|
20.8
|
%
|
|||||||||||
Upholstery Fabrics
|
12,664
|
12,554
|
0.9
|
%
|
21.1
|
%
|
19.6
|
%
|
||||||||||||
Gross Profit
|
$
|
35,321
|
31,935
|
10.6
|
%
|
22.6
|
%
|
20.3
|
%
|
|||||||||||
Selling, General and Administrative Expenses by Segment | Percent of Sales | |||||||||||||||||||
Mattress Fabrics
|
$
|
6,795
|
5,912
|
14.9
|
%
|
7.1
|
%
|
6.3
|
%
|
|||||||||||
Upholstery Fabrics
|
7,185
|
7,409
|
(3.0
|
)%
|
12.0
|
%
|
11.6
|
%
|
||||||||||||
Unallocated Corporate expenses
|
5,368
|
4,854
|
10.6
|
%
|
3.4
|
%
|
3.1
|
%
|
||||||||||||
Selling, General, and Administrative Expenses
|
$
|
19,348
|
18,175
|
6.5
|
%
|
12.4
|
%
|
11.6
|
%
|
|||||||||||
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
|||||||||||||||||||
Mattress Fabrics
|
$
|
15,862
|
13,468
|
17.8
|
%
|
16.5
|
%
|
14.4
|
%
|
|||||||||||
Upholstery Fabrics
|
5,479
|
5,146
|
6.5
|
%
|
9.1
|
%
|
8.1
|
%
|
||||||||||||
Unallocated corporate expenses
|
(5,368
|
)
|
(4,854
|
)
|
10.6
|
%
|
(3.4
|
)%
|
(3.1
|
)%
|
||||||||||
Operating income
|
$
|
15,973
|
13,760
|
16.1
|
%
|
10.2
|
%
|
8.8
|
%
|
|||||||||||
Return on Capital (1)
|
||||||||||||||||||||
Mattress Fabrics
|
41.8
|
%
|
37.9
|
%
|
||||||||||||||||
Upholstery Fabrics
|
62.7
|
%
|
61.7
|
%
|
||||||||||||||||
Unallocated Corporate
|
N/A
|
N/A
|
||||||||||||||||||
Consolidated
|
34.3
|
%
|
31.5
|
%
|
||||||||||||||||
Capital Employed (2)
|
||||||||||||||||||||
Mattress Fabrics
|
76,201
|
71,502
|
6.6
|
%
|
||||||||||||||||
Upholstery Fabrics
|
18,181
|
17,058
|
6.6
|
%
|
||||||||||||||||
Unallocated Corporate
|
(281
|
)
|
(263
|
)
|
N/A
|
|||||||||||||||
Consolidated
|
94,101
|
88,297
|
6.6
|
%
|
||||||||||||||||
Depreciation by Segment
|
||||||||||||||||||||
Mattress Fabrics
|
$
|
3,101
|
2,783
|
11.4
|
%
|
|||||||||||||||
Upholstery Fabrics
|
410
|
401
|
2.2
|
%
|
||||||||||||||||
Depreciation
|
$
|
3,511
|
3,184
|
10.3
|
%
|
|||||||||||||||
Notes:
|
||||||||||||||||||||
(1) See pages 8 and 9 of this financial information release for calculations.
|
||||||||||||||||||||
(2) The capital employed balances are as of October 30, 2016 and November 1, 2015.
|
Page 7 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE
|
|
CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA
|
|
FOR THE TWELVE MONTHS ENDED OCTOBER 30, 2016 AND NOVEMBER 1, 2015
|
|
(UNAUDITED)
|
|
(AMOUNTS IN THOUSANDS)
|
Quarter Ended
|
||||||||||||||||||||
Trailing 12
|
||||||||||||||||||||
Months
|
||||||||||||||||||||
1/31/2016
|
5/1/2016
|
7/31/2016
|
10/30/2016
|
10/30/2016
|
||||||||||||||||
Net income
|
$
|
4,862
|
$
|
3,601
|
$
|
5,313
|
$
|
4,475
|
$
|
18,251
|
||||||||||
Income taxes
|
2,317
|
3,566
|
3,233
|
2,684
|
11,800
|
|||||||||||||||
Interest income, net
|
(38
|
)
|
(26
|
)
|
(25
|
)
|
(15
|
)
|
(104
|
)
|
||||||||||
Depreciation and amortization expense
|
1,741
|
1,830
|
1,813
|
1,778
|
7,162
|
|||||||||||||||
Stock based compensation
|
625
|
778
|
761
|
896
|
3,060
|
|||||||||||||||
Adjusted EBITDA
|
$
|
9,507
|
$
|
9,749
|
$
|
11,095
|
$
|
9,818
|
$
|
40,169
|
||||||||||
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
|
||||||||||
% Over (Under)
|
28.7
|
%
|
15.6
|
%
|
20.2
|
%
|
11.4
|
%
|
18.6
|
%
|
Page 8 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||||||||||||||||||||
RETURN ON CAPITAL EMPLOYED BY SEGMENT
|
||||||||||||||||||||||||||||||||||||||
FOR THE SIX MONTHS ENDED OCTOBER 30, 2016
|
||||||||||||||||||||||||||||||||||||||
(Amounts in Thousands)
|
||||||||||||||||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||||||||||||||||
Operating Income | ||||||||||||||||||||||||||||||||||||||
Six Months
|
Average
|
Return on
|
||||||||||||||||||||||||||||||||||||
Ended
|
Capital
|
Avg. Capital
|
||||||||||||||||||||||||||||||||||||
October 30, 2016 (1)
|
Employed
(3)
|
Employed
(2)
|
||||||||||||||||||||||||||||||||||||
Mattress Fabrics
|
$
|
15,862
|
$
|
75,828
|
41.8
|
%
|
||||||||||||||||||||||||||||||||
Upholstery Fabrics
|
5,479
|
17,476
|
62.7
|
%
|
||||||||||||||||||||||||||||||||||
(less: Unallocated Corporate)
|
(5,368
|
)
|
(285
|
)
|
N/A
|
|||||||||||||||||||||||||||||||||
Total
|
$
|
15,973
|
$
|
93,019
|
34.3
|
%
|
||||||||||||||||||||||||||||||||
Average Capital Employed
|
As of the three Months Ended October 30, 2016
|
As of the three Months Ended July 31, 2016
|
As of the three Months Ended May 1, 2016
|
|||||||||||||||||||||||||||||||||||||||||||||
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||||||||||||||||||||||||||||
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||
Total assets
|
94,700
|
29,361
|
55,066
|
179,127
|
92,959
|
33,550
|
56,851
|
183,360
|
94,878
|
29,463
|
50,801
|
175,142
|
||||||||||||||||||||||||||||||||||||
Total liabilities
|
(18,499
|
)
|
(11,180
|
)
|
(13,499
|
)
|
(43,178
|
)
|
(16,313
|
)
|
(16,329
|
)
|
(19,283
|
)
|
(51,925
|
)
|
(20,241
|
)
|
(12,438
|
)
|
(13,651
|
)
|
(46,330
|
)
|
||||||||||||||||||||||||
Subtotal
|
$
|
76,201
|
$
|
18,181
|
$
|
41,567
|
$
|
135,949
|
$
|
76,646
|
$
|
17,221
|
$
|
37,568
|
$
|
131,435
|
$
|
74,637
|
$
|
17,025
|
$
|
37,150
|
$
|
128,812
|
||||||||||||||||||||||||
Less:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents
|
-
|
-
|
(13,910
|
)
|
(13,910
|
)
|
-
|
-
|
(45,549
|
)
|
(45,549
|
)
|
-
|
-
|
(37,787
|
)
|
(37,787
|
)
|
||||||||||||||||||||||||||||||
Short-term investments
|
-
|
-
|
(2,430
|
)
|
(2,430
|
)
|
-
|
-
|
(2,434
|
)
|
(2,434
|
)
|
-
|
-
|
(4,359
|
)
|
(4,359
|
)
|
||||||||||||||||||||||||||||||
Long-term investments - Held-To-Maturity
|
-
|
-
|
(31,050
|
)
|
(31,050
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||
Long-term investments - Rabbi Trust
|
(4,994
|
)
|
(4,994
|
)
|
-
|
-
|
(4,611
|
)
|
(4,611
|
)
|
-
|
-
|
(4,025
|
)
|
(4,025
|
)
|
||||||||||||||||||||||||||||||||
Income taxes receivable
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(155
|
)
|
(155
|
)
|
||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current
|
-
|
-
|
(581
|
)
|
(581
|
)
|
-
|
-
|
(1,942
|
)
|
(1,942
|
)
|
-
|
-
|
(2,319
|
)
|
(2,319
|
)
|
||||||||||||||||||||||||||||||
Income taxes payable - current
|
-
|
-
|
513
|
513
|
-
|
-
|
358
|
358
|
-
|
-
|
180
|
180
|
||||||||||||||||||||||||||||||||||||
Income taxes payable - long-term
|
-
|
-
|
3,734
|
3,734
|
-
|
-
|
3,779
|
3,779
|
-
|
-
|
3,841
|
3,841
|
||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current
|
-
|
-
|
1,699
|
1,699
|
-
|
-
|
1,532
|
1,532
|
-
|
-
|
1,483
|
1,483
|
||||||||||||||||||||||||||||||||||||
Line of credit
|
-
|
-
|
-
|
-
|
-
|
-
|
7,000
|
7,000
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||
Deferred compensation
|
-
|
-
|
5,171
|
5,171
|
-
|
-
|
5,031
|
5,031
|
-
|
-
|
4,686
|
4,686
|
||||||||||||||||||||||||||||||||||||
Total Capital Employed
|
$
|
76,201
|
$
|
18,181
|
$
|
(281
|
)
|
$
|
94,101
|
$
|
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)
|
$
|
75,828
|
$
|
17,476
|
$
|
(285
|
)
|
$
|
93,019
|
|||||||||||||||||||||||||||||||||||||||
Notes:
|
||||||||||||||||||||||||||||||||||||||||||||||||
(1) See reconciliation per page 6 of this financial information release.
|
||||||||||||||||||||||||||||||||||||||||||||||||
(2) Return on average capital employed represents operating income for the six month period ending October 30, 2016 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 - Held-To-Maturity, long-term investments - Rabbi Trust, 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 three periods ending October 30, 2016, July 31, 2016 and May 1, 2016.
|
Page 9 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
|
46,030
|
168,947
|
91,614
|
33,795
|
41,471
|
166,880
|
89,066
|
32,838
|
49,396
|
171,300
|
||||||||||||||||||||||||||||||||||||
Total liabilities
|
(19,228
|
)
|
(15,129
|
)
|
(11,615
|
)
|
(45,972
|
)
|
(20,265
|
)
|
(14,849
|
)
|
(13,041
|
)
|
(48,155
|
)
|
(18,594
|
)
|
(18,812
|
)
|
(14,467
|
)
|
(51,873
|
)
|
||||||||||||||||||||||||
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- Rabbi Trust
|
-
|
-
|
(3,279
|
)
|
(3,279
|
)
|
-
|
-
|
(2,893
|
)
|
(2,893
|
)
|
-
|
-
|
(2,415
|
)
|
(2,415
|
)
|
||||||||||||||||||||||||||||||
Income taxes receivable
|
-
|
-
|
(75
|
)
|
(75
|
)
|
-
|
-
|
(142
|
)
|
(142
|
)
|
-
|
-
|
(229
|
)
|
(229
|
)
|
||||||||||||||||||||||||||||||
Deferred income taxes - non-current
|
-
|
-
|
(3,415
|
)
|
(3,415
|
)
|
-
|
-
|
(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
|
-
|
-
|
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
|
-
|
-
|
1,206
|
1,206
|
-
|
-
|
1,072
|
1,072
|
-
|
-
|
982
|
982
|
||||||||||||||||||||||||||||||||||||
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 - Rabbi Trust, 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 three periods ending November 1, 2015, August 2, 2015 and May 3, 2015.
|
Page 10 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||||||
CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE, NET INCOME AND EARNINGS PER SHARE
|
|||||||||||||
FOR THE SIX MONTHS ENDED OCTOBER 30, 2016 AND NOVEMBER 1, 2015
|
|||||||||||||
Unaudited | |||||||||||||
(Amounts in Thousands)
|
|||||||||||||
SIX MONTHS ENDED
|
|||||||||||||
Amounts | |||||||||||||
October 30, | November 1, | ||||||||||||
2016
|
2015
|
||||||||||||
Consolidated Effective GAAP Income Tax Rate
|
(1 | ) |
37.7
|
%
|
37.5
|
%
|
|||||||
Non-Cash U.S. Income Tax Expense
|
(19.6
|
)%
|
(21.5
|
)%
|
|||||||||
Non-Cash Foreign Income Tax Expense
|
(0.3
|
)%
|
(0.3
|
)%
|
|||||||||
Consolidated Adjusted Effective Income Tax Rate
|
(2 | ) |
17.8
|
%
|
15.7
|
%
|
THREE MONTHS ENDED
|
||||||||||||||||||||||||
As reported | October 30, 2016 | As reported | November 1, 2015 | |||||||||||||||||||||
October 30,
|
Proforma Net
|
November 1,
|
Proforma Net
|
|||||||||||||||||||||
2016
|
Adjustments
|
of Adjustments
|
2015
|
Adjustments
|
of Adjustments
|
|||||||||||||||||||
Income before income taxes
|
$
|
7,159
|
$
|
-
|
$
|
7,159
|
$
|
6,144
|
$
|
6,144
|
||||||||||||||
Income taxes (3)
|
2,684
|
$
|
(1,410
|
)
|
1,274
|
2,373
|
$
|
(1,408
|
)
|
965
|
||||||||||||||
Net income
|
$
|
4,475
|
$
|
1,410
|
$
|
5,885
|
$
|
3,771
|
$
|
1,408
|
$
|
5,179
|
||||||||||||
Net income per share-basic
|
$
|
0.36
|
$
|
0.11
|
$
|
0.48
|
$
|
0.31
|
$
|
0.11
|
$
|
0.42
|
||||||||||||
Net income per share-diluted
|
$
|
0.36
|
$
|
0.11
|
$
|
0.47
|
$
|
0.30
|
$
|
0.11
|
$
|
0.41
|
||||||||||||
Average shares outstanding-basic
|
12,308
|
12,308
|
12,308
|
12,343
|
12,343
|
12,343
|
||||||||||||||||||
Average shares outstanding-diluted
|
12,507
|
12,507
|
12,507
|
12,484
|
12,484
|
12,484
|
||||||||||||||||||
SIX MONTHS ENDED
|
||||||||||||||||||||||||
As reported | October 30, 2016 | As reported | November 1, 2015 | |||||||||||||||||||||
October 30,
|
Proforma Net
|
November 1,
|
Proforma Net
|
|||||||||||||||||||||
2016
|
Adjustments
|
of Adjustments
|
2015
|
Adjustments
|
of Adjustments
|
|||||||||||||||||||
Income before income taxes
|
$
|
15,706
|
$
|
-
|
$
|
15,706
|
$
|
13,552
|
$
|
-
|
$
|
13,552
|
||||||||||||
Income taxes (3)
|
5,917
|
$
|
(3,121
|
)
|
2,796
|
5,081
|
$
|
(2,953
|
)
|
2,128
|
||||||||||||||
Net income
|
$
|
9,789
|
$
|
3,121
|
$
|
12,910
|
$
|
8,471
|
$
|
2,953
|
$
|
11,424
|
||||||||||||
Net income per share-basic
|
$
|
0.80
|
$
|
0.25
|
$
|
1.05
|
$
|
0.69
|
$
|
0.24
|
$
|
0.93
|
||||||||||||
Net income per share-diluted
|
$
|
0.78
|
$
|
0.25
|
$
|
1.03
|
$
|
0.68
|
$
|
0.24
|
$
|
0.92
|
||||||||||||
Average shares outstanding-basic
|
12,297
|
12,297
|
12,297
|
12,310
|
12,310
|
12,310
|
||||||||||||||||||
Average shares outstanding-diluted
|
12,495
|
12,495
|
12,495
|
12,481
|
12,481
|
12,481
|
||||||||||||||||||
(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.
|