Attached files
| file | filename |
|---|---|
| 8-K - CULP, INC. 8-K - CULP INC | a51515974.htm |
| EX-99.(A) - EXHIBIT 99(A) - CULP INC | a51515974ex99a.htm |
Exhibit 99 (b)
Page 1 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF NET INCOME
|
||||||||||||||||||||
|
FOR THREE MONTHS ENDED JANUARY 29, 2017 AND JANUARY 31, 2016
|
||||||||||||||||||||
|
(UNAUDITED)
|
||||||||||||||||||||
|
(Amounts in Thousands, Except for Per Share Data)
|
||||||||||||||||||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
January 29,
|
January 31,
|
% Over
|
January 29,
|
January 31,
|
||||||||||||||||
|
2017
|
2016
|
(Under)
|
2017
|
2016
|
||||||||||||||||
|
Net sales
|
$
|
76,169
|
78,466
|
(2.9
|
)%
|
100.0
|
%
|
100.0
|
%
|
|||||||||||
|
Cost of sales
|
59,410
|
61,903
|
(4.0
|
)%
|
78.0
|
%
|
78.9
|
%
|
||||||||||||
|
Gross profit
|
16,759
|
16,563
|
1.2
|
%
|
22.0
|
%
|
21.1
|
%
|
||||||||||||
|
Selling, general and
|
||||||||||||||||||||
|
administrative expenses
|
9,824
|
9,337
|
5.2
|
%
|
12.9
|
%
|
11.9
|
%
|
||||||||||||
|
Income from operations
|
6,935
|
7,226
|
(4.0
|
)%
|
9.1
|
%
|
9.2
|
%
|
||||||||||||
|
Interest income
|
(124
|
)
|
(38
|
)
|
226.3
|
%
|
(0.2
|
)%
|
(0.0
|
)%
|
||||||||||
|
Other expense
|
69
|
85
|
(18.8
|
)%
|
0.1
|
%
|
0.1
|
%
|
||||||||||||
|
Income before income taxes
|
6,990
|
7,179
|
(2.6
|
)%
|
9.2
|
%
|
9.1
|
%
|
||||||||||||
|
Income taxes*
|
643
|
2,317
|
(72.2
|
)%
|
9.2
|
%
|
32.3
|
%
|
||||||||||||
|
Net income
|
$
|
6,347
|
4,862
|
30.5
|
%
|
8.3
|
%
|
6.2
|
%
|
|||||||||||
|
Net income per share-basic
|
$
|
0.52
|
$
|
0.39
|
33.3
|
%
|
||||||||||||||
|
Net income per share-diluted
|
$
|
0.51
|
$
|
0.39
|
30.8
|
%
|
||||||||||||||
|
Average shares outstanding-basic
|
12,313
|
12,331
|
(0.1
|
)%
|
||||||||||||||||
|
Average shares outstanding-diluted
|
12,544
|
12,486
|
0.5
|
%
|
||||||||||||||||
|
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)
|
||||||||||||||||||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
January 29,
|
January 31,
|
% Over
|
January 29,
|
January 31,
|
||||||||||||||||
|
2017
|
2016
|
(Under)
|
2017
|
2016
|
||||||||||||||||
|
Income before income taxes (see above)
|
$
|
6,990
|
7,179
|
(2.6
|
)%
|
9.2
|
%
|
9.1
|
%
|
|||||||||||
|
Adjusted Income taxes (2)*
|
1,160
|
1,278
|
(9.2
|
)%
|
16.6
|
%
|
17.8
|
%
|
||||||||||||
|
Adjusted net income
|
$ |
5,830
|
5,901
|
(1.2
|
)%
|
7.7
|
%
|
7.5
|
%
|
|||||||||||
|
Adjusted net income per share-basic
|
$
|
0.47
|
$
|
0.48
|
(2.1
|
)%
|
||||||||||||||
|
Adjusted net income per share-diluted
|
$
|
0.47
|
$
|
0.47
|
0.0
|
%
|
||||||||||||||
|
Average shares outstanding-basic
|
12,313
|
12,331
|
(0.1
|
)%
|
||||||||||||||||
|
Average shares outstanding-diluted
|
12,544
|
12,486
|
0.5
|
%
|
||||||||||||||||
(1) Culp, Inc. currently does not incur cash income tax expense in the US due to its $19.2 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 NINE MONTHS ENDED JANUARY 29, 2017 AND JANUARY 31, 2016
|
||||||||||||||||||||
|
(UNAUDITED)
|
||||||||||||||||||||
|
(Amounts in Thousands, Except for Per Share Data)
|
||||||||||||||||||||
|
NINE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
January 29,
|
January 31,
|
% Over
|
January 29,
|
January 31,
|
||||||||||||||||
|
2017
|
2016
|
(Under)
|
2017
|
2016
|
||||||||||||||||
|
Net sales
|
$
|
232,194
|
235,607
|
(1.4
|
)%
|
100.0
|
%
|
100.0
|
%
|
|||||||||||
|
Cost of sales
|
180,115
|
187,109
|
(3.7
|
)%
|
77.6
|
%
|
79.4
|
%
|
||||||||||||
|
Gross profit
|
52,079
|
48,498
|
7.4
|
%
|
22.4
|
%
|
20.6
|
%
|
||||||||||||
|
Selling, general and
|
||||||||||||||||||||
|
administrative expenses
|
29,171
|
27,512
|
6.0
|
%
|
12.6
|
%
|
11.7
|
%
|
||||||||||||
|
Income from operations
|
22,908
|
20,986
|
9.2
|
%
|
9.9
|
%
|
8.9
|
%
|
||||||||||||
|
Interest income
|
(164
|
)
|
(150
|
)
|
9.3
|
%
|
(0.1
|
)%
|
(0.1
|
)%
|
||||||||||
|
Other expense
|
376
|
405
|
(7.2
|
)%
|
0.2
|
%
|
0.2
|
%
|
||||||||||||
|
Income before income taxes
|
22,696
|
20,731
|
9.5
|
%
|
9.8
|
%
|
8.8
|
%
|
||||||||||||
|
Income taxes*
|
6,560
|
7,398
|
(11.3
|
)%
|
28.9
|
%
|
35.7
|
%
|
||||||||||||
|
Net income
|
$
|
16,136
|
13,333
|
21.0
|
%
|
6.9
|
%
|
5.7
|
%
|
|||||||||||
|
Net income per share-basic
|
$
|
1.31
|
$
|
1.08
|
21.3
|
%
|
||||||||||||||
|
Net income per share-diluted
|
$
|
1.29
|
$
|
1.07
|
20.6
|
%
|
||||||||||||||
|
Average shares outstanding-basic
|
12,302
|
12,317
|
(0.1
|
)%
|
||||||||||||||||
|
Average shares outstanding-diluted
|
12,517
|
12,488
|
0.2
|
%
|
||||||||||||||||
|
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)
|
||||||||||||||||||||
|
NINE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
January 29,
|
January 31,
|
% Over
|
January 29,
|
January 31,
|
||||||||||||||||
|
2017
|
2016
|
(Under)
|
2017
|
2016
|
||||||||||||||||
|
Income before income taxes (see above)
|
$
|
22,696
|
20,731
|
9.5
|
%
|
9.8
|
%
|
8.8
|
%
|
|||||||||||
|
Adjusted Income taxes (2)*
|
3,768
|
3,690
|
2.1
|
%
|
16.6
|
%
|
17.8
|
%
|
||||||||||||
|
Adjusted net income
|
$ |
18,928
|
17,041
|
11.1
|
%
|
8.2
|
%
|
7.2
|
%
|
|||||||||||
|
Adjusted net income per share-basic
|
$
|
1.54
|
$
|
1.38
|
11.6
|
%
|
||||||||||||||
|
Adjusted net income per share-diluted
|
$
|
1.51
|
$
|
1.36
|
11.0
|
%
|
||||||||||||||
|
Average shares outstanding-basic
|
12,302
|
12,317
|
(0.1
|
)%
|
||||||||||||||||
|
Average shares outstanding-diluted
|
12,517
|
12,488
|
0.2
|
%
|
||||||||||||||||
(1) Culp, Inc. currently does not incur cash income tax expense in the US due to its $19.2 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
|
||||||||||||||||||||
|
JANUARY 29, 2017, JANUARY 31, 2016, AND MAY 1, 2016
|
||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||
|
(Amounts in Thousands)
|
||||||||||||||||||||
|
Amounts
|
Increase
|
|||||||||||||||||||
|
January 29,
|
January 31,
|
(Decrease)
|
* May 1,
|
|||||||||||||||||
|
2017
|
2016
|
Dollars
|
Percent
|
2016
|
||||||||||||||||
|
Current assets
|
||||||||||||||||||||
|
Cash and cash equivalents
|
$
|
15,659
|
31,713
|
(16,054
|
)
|
(50.6
|
)%
|
37,787
|
||||||||||||
|
Short-term investments
|
2,410
|
4,259
|
(1,849
|
)
|
(43.4
|
)%
|
4,359
|
|||||||||||||
|
Accounts receivable
|
22,726
|
26,784
|
(4,058
|
)
|
(15.2
|
)%
|
23,481
|
|||||||||||||
|
Inventories
|
46,193
|
48,485
|
(2,292
|
)
|
(4.7
|
)%
|
46,531
|
|||||||||||||
|
Income taxes receivable
|
-
|
23
|
(23
|
)
|
(100.0
|
)%
|
155
|
|||||||||||||
|
Other current assets
|
2,514
|
2,331
|
183
|
7.9
|
%
|
2,477
|
||||||||||||||
|
Total current assets
|
89,502
|
113,595
|
(24,093
|
)
|
(21.2
|
)%
|
114,790
|
|||||||||||||
|
Property, plant & equipment, net
|
50,333
|
38,157
|
12,176
|
31.9
|
%
|
39,973
|
||||||||||||||
|
Goodwill
|
11,462
|
11,462
|
-
|
0.0
|
%
|
11,462
|
||||||||||||||
|
Deferred income taxes
|
422
|
4,312
|
(3,890
|
)
|
(90.2
|
)%
|
2,319
|
|||||||||||||
|
Long-term Investments - Held-To-Maturity
|
30,832
|
-
|
30,832
|
100.0
|
%
|
-
|
||||||||||||||
|
Long-term Investments - Rabbi Trust
|
5,488
|
3,590
|
1,898
|
52.9
|
%
|
4,025
|
||||||||||||||
|
Investment in unconsolidated joint venture
|
600
|
-
|
600
|
100.0
|
%
|
-
|
||||||||||||||
|
Other assets
|
2,417
|
2,435
|
(18
|
)
|
(0.7
|
)%
|
2,573
|
|||||||||||||
|
Total assets
|
$
|
191,056
|
173,551
|
17,505
|
10.1
|
%
|
175,142
|
|||||||||||||
|
Current liabilities
|
||||||||||||||||||||
|
Accounts payable - trade
|
$
|
22,352
|
25,601
|
(3,249
|
)
|
(12.7
|
)%
|
23,994
|
||||||||||||
|
Accounts payable - capital expenditures
|
4,886
|
380
|
4,506
|
1,185.8
|
%
|
224
|
||||||||||||||
|
Accrued expenses
|
10,511
|
12,690
|
(2,179
|
)
|
(17.2
|
)%
|
11,922
|
|||||||||||||
|
Income taxes payable - current
|
217
|
622
|
(405
|
)
|
(65.1
|
)%
|
180
|
|||||||||||||
|
Total current liabilities
|
37,966
|
39,293
|
(1,327
|
)
|
(3.4
|
)%
|
36,320
|
|||||||||||||
|
Accounts payable - capital expenditures
|
708
|
-
|
708
|
100.0
|
%
|
-
|
||||||||||||||
|
Income taxes payable - long-term
|
1,817
|
3,480
|
(1,663
|
)
|
(47.8
|
)%
|
3,841
|
|||||||||||||
|
Deferred income taxes
|
2,924
|
1,209
|
1,715
|
141.9
|
%
|
1,483
|
||||||||||||||
|
Deferred compensation
|
5,327
|
4,495
|
832
|
18.5
|
%
|
4,686
|
||||||||||||||
|
Total liabilities
|
48,742
|
48,477
|
265
|
0.5
|
%
|
46,330
|
||||||||||||||
|
Shareholders' equity
|
142,314
|
125,074
|
17,240
|
13.8
|
%
|
128,812
|
||||||||||||||
|
Total liabilities and
|
||||||||||||||||||||
|
shareholders' equity
|
$
|
191,056
|
173,551
|
17,505
|
10.1
|
%
|
175,142
|
|||||||||||||
|
Shares outstanding
|
12,315
|
12,250
|
65
|
0.5
|
%
|
12,265
|
||||||||||||||
|
* Derived from audited financial statements.
|
||||||||||||||||||||
Page 4 to 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
|
FOR THE NINE MONTHS ENDED JANUARY 29, 2017 AND JANUARY 31, 2016
|
||||||||
|
Unaudited
|
||||||||
|
(Amounts in Thousands)
|
||||||||
|
NINE MONTHS ENDED
|
||||||||
|
Amounts
|
||||||||
|
January 29,
|
January 31,
|
|||||||
|
2017
|
2016
|
|||||||
|
Cash flows from operating activities:
|
||||||||
|
Net income
|
$
|
16,136
|
13,333
|
|||||
|
Adjustments to reconcile net income to net cash
|
||||||||
|
provided by operating activities:
|
||||||||
|
Depreciation
|
5,304
|
4,888
|
||||||
|
Amortization of assets
|
162
|
123
|
||||||
|
Stock-based compensation
|
2,619
|
1,964
|
||||||
|
Deferred income taxes
|
3,533
|
1,906
|
||||||
|
Realized loss on sale of short-term investments
|
12
|
127
|
||||||
|
Gain on sale of equipment
|
(71
|
)
|
(66
|
)
|
||||
|
Excess tax benefits related to stock-based compensation
|
(195
|
)
|
(822
|
)
|
||||
|
Foreign currency exchange gains
|
(18
|
)
|
(85
|
)
|
||||
|
Changes in assets and liabilities:
|
||||||||
|
Accounts receivable
|
340
|
1,091
|
||||||
|
Inventories
|
(137
|
)
|
(6,485
|
)
|
||||
|
Other current assets
|
90
|
(108
|
)
|
|||||
|
Other assets
|
51
|
48
|
||||||
|
Accounts payable
|
(946
|
)
|
(1,979
|
)
|
||||
|
Accrued expenses and deferrred compensation
|
(948
|
)
|
1,406
|
|||||
|
Income taxes
|
(1,695
|
)
|
535
|
|||||
|
Net cash provided by operating activities
|
24,237
|
15,876
|
||||||
|
Cash flows from investing activities:
|
||||||||
|
Capital expenditures
|
(9,253
|
)
|
(7,686
|
)
|
||||
|
Investment in unconsolidated joint venture
|
(600
|
)
|
-
|
|||||
|
Proceeds from the sale of equipment
|
80
|
230
|
||||||
|
Payment on life insurance policy
|
(18
|
)
|
(18
|
)
|
||||
|
Proceeds from the sale of short-term investments
|
2,000
|
5,612
|
||||||
|
Purchase of short-term investments
|
(8
|
)
|
(86
|
)
|
||||
|
Purchase of long-term investments (Held-To-Maturity)
|
(31,050
|
)
|
-
|
|||||
|
Purchase of long-term investments (Rabbi Trust)
|
(1,431
|
)
|
(1,268
|
)
|
||||
|
Net cash used in investing activities
|
(40,280
|
)
|
(3,216
|
)
|
||||
|
Cash flows from financing activities:
|
||||||||
|
Proceeds from line of credit
|
7,000
|
7,000
|
||||||
|
Payments on line of credit
|
(7,000
|
)
|
(7,000
|
)
|
||||
|
Payments on vendor-financed capital expenditures
|
(1,050
|
)
|
-
|
|||||
|
Payments on long-term debt
|
-
|
(2,200
|
)
|
|||||
|
Excess tax benefits related to stock-based compensation
|
195
|
822
|
||||||
|
Repurchase of common stock
|
-
|
(2,397
|
)
|
|||||
|
Dividends paid
|
(5,292
|
)
|
(7,281
|
)
|
||||
|
Proceeds from common stock issued
|
37
|
138
|
||||||
|
Payments on debt issuance costs
|
(2
|
)
|
(43
|
)
|
||||
|
Net cash used in financing activities
|
(6,112
|
)
|
(10,961
|
)
|
||||
|
Effect of exchange rate changes on cash and cash equivalents
|
27
|
289
|
||||||
|
(Decrease) increase in cash and cash equivalents
|
(22,128
|
)
|
1,988
|
|||||
|
Cash and cash equivalents at beginning of period
|
37,787
|
29,725
|
||||||
|
Cash and cash equivalents at end of period
|
$
|
15,659
|
31,713
|
|||||
|
Free Cash Flow (1)
|
$
|
12,187
|
8,245
|
|||||
|
(1) Free Cash Flow reconciliation is as follows:
|
|||||||||
|
FY 2017
|
FY 2016
|
||||||||
|
A)
|
Net cash provided by operating activities
|
$
|
24,237
|
15,876
|
|||||
|
B)
|
Minus: Capital Expenditures
|
(9,253
|
)
|
(7,686
|
)
|
||||
|
C)
|
Minus: Investment in unconsolidated joint venture
|
(600
|
)
|
-
|
|||||
|
D)
|
Add: Proceeds from the sale of equipment
|
80
|
230
|
||||||
|
E)
|
Minus: Payment on life insurance policy
|
(18
|
)
|
(18
|
)
|
||||
|
F)
|
Minus: Payments on vendor-financed capital expenditures
|
(1,050
|
)
|
-
|
|||||
|
G)
|
Minus: Purchase of long-term investments (Rabbi Trust)
|
(1,431
|
)
|
(1,268
|
)
|
||||
|
H)
|
Add: Excess tax benefits related to stock-based compensation
|
195
|
822
|
||||||
|
I)
|
Effects of exchange rate changes on cash and cash equivalents
|
27
|
289
|
||||||
|
$
|
12,187
|
8,245
|
|||||||
Page 5 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
STATEMENTS OF OPERATIONS BY SEGMENT
|
||||||||||||||||||||
|
FOR THE THREE MONTHS ENDED JANUARY 29, 2017 AND JANUARY 31, 2016
|
||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||
|
(Amounts in thousands)
|
||||||||||||||||||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Total Sales
|
|||||||||||||||||||
|
January 29,
|
January 31,
|
% Over
|
January 29,
|
January 31,
|
||||||||||||||||
|
Net Sales by Segment
|
2017
|
2016
|
(Under)
|
2017
|
2016
|
|||||||||||||||
|
Mattress Fabrics
|
$
|
45,920
|
44,277
|
3.7
|
%
|
60.3
|
%
|
56.4
|
%
|
|||||||||||
|
Upholstery Fabrics
|
30,249
|
34,189
|
(11.5
|
)%
|
39.7
|
%
|
43.6
|
%
|
||||||||||||
|
Net Sales
|
$
|
76,169
|
78,466
|
(2.9
|
)%
|
100.0
|
%
|
100.0
|
%
|
|||||||||||
|
Gross Profit by Segment
|
Gross Profit Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$
|
9,758
|
8,751
|
11.5
|
%
|
21.3
|
%
|
19.8
|
%
|
|||||||||||
|
Upholstery Fabrics
|
7,001
|
7,812
|
(10.4
|
)%
|
23.1
|
%
|
22.8
|
%
|
||||||||||||
|
Gross Profit
|
$
|
16,759
|
16,563
|
1.2
|
%
|
22.0
|
%
|
21.1
|
%
|
|||||||||||
|
Selling, General and Administrative Expenses by Segment
|
Percent of Sales
|
|||||||||||||||||||
|
Mattress Fabrics
|
$
|
3,391
|
2,953
|
14.8
|
%
|
7.4
|
%
|
6.7
|
%
|
|||||||||||
|
Upholstery Fabrics
|
3,901
|
3,963
|
(1.6
|
)%
|
12.9
|
%
|
11.6
|
%
|
||||||||||||
|
Unallocated Corporate expenses
|
2,532
|
2,421
|
4.6
|
%
|
3.3
|
%
|
3.1
|
%
|
||||||||||||
|
Selling, General and Administrative Expenses
|
$
|
9,824
|
9,337
|
5.2
|
%
|
12.9
|
%
|
11.9
|
%
|
|||||||||||
|
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$
|
6,367
|
5,798
|
9.8
|
%
|
13.9
|
%
|
13.1
|
%
|
|||||||||||
|
Upholstery Fabrics
|
3,100
|
3,849
|
(19.5
|
)%
|
10.2
|
%
|
11.3
|
%
|
||||||||||||
|
Unallocated corporate expenses
|
(2,532
|
)
|
(2,421
|
)
|
4.6
|
%
|
(3.3
|
)%
|
(3.1
|
)%
|
||||||||||
|
Operating income
|
$
|
6,935
|
7,226
|
(4.0
|
)%
|
9.1
|
%
|
9.2
|
%
|
|||||||||||
|
Depreciation by Segment
|
||||||||||||||||||||
|
Mattress Fabrics
|
$
|
1,573
|
1,490
|
5.6
|
%
|
|||||||||||||||
|
Upholstery Fabrics
|
220
|
215
|
2.3
|
%
|
||||||||||||||||
|
Depreciation
|
$
|
1,793
|
1,705
|
5.2
|
%
|
|||||||||||||||
Page 6 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
STATEMENTS OF OPERATIONS BY SEGMENT
|
||||||||||||||||||||
|
FOR THE NINE MONTHS ENDED JANUARY 29, 2017 AND JANUARY 31, 2016
|
||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||
|
(Amounts in thousands)
|
||||||||||||||||||||
|
NINE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Total Sales
|
|||||||||||||||||||
|
January 29,
|
January 31,
|
% Over
|
January 29,
|
January 31,
|
||||||||||||||||
|
Net Sales by Segment
|
2017
|
2016
|
(Under)
|
2017
|
2016
|
|||||||||||||||
|
Mattress Fabrics
|
$
|
141,977
|
137,522
|
3.2
|
%
|
61.1
|
%
|
58.4
|
%
|
|||||||||||
|
Upholstery Fabrics
|
90,217
|
98,085
|
(8.0
|
)%
|
38.9
|
%
|
41.6
|
%
|
||||||||||||
|
Net Sales
|
$
|
232,194
|
235,607
|
(1.4
|
)%
|
100.0
|
%
|
100.0
|
%
|
|||||||||||
|
Gross Profit by Segment
|
Gross Profit Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$
|
32,414
|
28,133
|
15.2
|
%
|
22.8
|
%
|
20.5
|
%
|
|||||||||||
|
Upholstery Fabrics
|
19,665
|
20,365
|
(3.4
|
)%
|
21.8
|
%
|
20.8
|
%
|
||||||||||||
|
Gross Profit
|
$
|
52,079
|
48,498
|
7.4
|
%
|
22.4
|
%
|
20.6
|
%
|
|||||||||||
|
Selling, General and Administrative Expenses by Segment
|
Percent of Sales
|
|||||||||||||||||||
|
Mattress Fabrics
|
$
|
10,185
|
8,865
|
14.9
|
%
|
7.2
|
%
|
6.4
|
%
|
|||||||||||
|
Upholstery Fabrics
|
11,086
|
11,372
|
(2.5
|
)%
|
12.3
|
%
|
11.6
|
%
|
||||||||||||
|
Unallocated Corporate expenses
|
7,900
|
7,275
|
8.6
|
%
|
3.4
|
%
|
3.1
|
%
|
||||||||||||
|
Selling, General, and Administrative Expenses
|
$
|
29,171
|
27,512
|
6.0
|
%
|
12.6
|
%
|
11.7
|
%
|
|||||||||||
|
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$
|
22,229
|
19,267
|
15.4
|
%
|
15.7
|
%
|
14.0
|
%
|
|||||||||||
|
Upholstery Fabrics
|
8,579
|
8,994
|
(4.6
|
)%
|
9.5
|
%
|
9.2
|
%
|
||||||||||||
|
Unallocated corporate expenses
|
(7,900
|
)
|
(7,275
|
)
|
8.6
|
%
|
(3.4
|
)%
|
(3.1
|
)%
|
||||||||||
|
Operating income
|
$
|
22,908
|
20,986
|
9.2
|
%
|
9.9
|
%
|
8.9
|
%
|
|||||||||||
|
Return on Capital (1)
|
||||||||||||||||||||
|
Mattress Fabrics
|
38.5
|
%
|
35.9
|
%
|
||||||||||||||||
|
Upholstery Fabrics
|
64.6
|
%
|
68.9
|
%
|
||||||||||||||||
|
Unallocated Corporate
|
N/A
|
N/A
|
||||||||||||||||||
|
Consolidated
|
32.4
|
%
|
31.7
|
%
|
||||||||||||||||
|
Capital Employed (2)
|
||||||||||||||||||||
|
Mattress Fabrics
|
80,656
|
72,644
|
11.0
|
%
|
||||||||||||||||
|
Upholstery Fabrics
|
18,420
|
19,623
|
(6.1
|
)%
|
||||||||||||||||
|
Unallocated Corporate
|
(1,288
|
)
|
(1,284
|
)
|
N/A
|
|||||||||||||||
|
Consolidated
|
97,788
|
90,983
|
7.5
|
%
|
||||||||||||||||
|
Depreciation by Segment
|
||||||||||||||||||||
|
Mattress Fabrics
|
$
|
4,673
|
4,273
|
9.4
|
%
|
|||||||||||||||
|
Upholstery Fabrics
|
631
|
615
|
2.6
|
%
|
||||||||||||||||
|
Depreciation
|
$
|
5,304
|
4,888
|
8.5
|
%
|
|||||||||||||||
|
Notes:
|
||||||||||||||||||||
|
(1) See pages 8 and 9 of this financial information release for calculations.
|
||||||||||||||||||||
|
(2) The capital employed balances are as of January 29, 2017 and January 31, 2016.
|
||||||||||||||||||||
Page 7 to 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
|||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA
|
|||||||||||||||||||||
| FOR THE TWELVE MONTHS ENDED JANUARY 29, 2017 AND JANUARY 31, 2016 | |||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||
| (AMOUNTS IN THOUSANDS) | |||||||||||||||||||||
|
Quarter Ended
|
|||||||||||||||||||||
|
Trailing 12
|
|||||||||||||||||||||
|
Months
|
|||||||||||||||||||||
|
5/1/2016
|
7/31/2016
|
10/30/2016
|
1/29/2017
|
1/29/2017
|
|||||||||||||||||
|
Net income
|
$
|
3,601
|
$
|
5,313
|
$
|
4,475
|
$
|
6,347
|
$
|
19,736
|
|||||||||||
|
Income taxes
|
3,566
|
3,233
|
2,684
|
643
|
10,126
|
||||||||||||||||
|
Interest income, net
|
(26
|
)
|
(25
|
)
|
(15
|
)
|
(124
|
)
|
(190
|
)
|
|||||||||||
|
Depreciation and amortization expense
|
1,830
|
1,813
|
1,778
|
1,875
|
7,296
|
||||||||||||||||
|
Stock based compensation
|
778
|
761
|
896
|
962
|
3,397
|
||||||||||||||||
|
Adjusted EBITDA
|
$
|
9,749
|
$
|
11,095
|
$
|
9,818
|
$
|
9,703
|
$
|
40,365
|
|||||||||||
|
Quarter Ended
|
|||||||||||||||||||||
|
Trailing 12
|
|||||||||||||||||||||
|
Months
|
|||||||||||||||||||||
|
5/3/2015
|
8/2/2015
|
11/1/2015
|
01/31/16
|
1/31/2016
|
|||||||||||||||||
|
Net income
|
$
|
4,913
|
$
|
4,701
|
$
|
3,771
|
$
|
4,862
|
$
|
18,247
|
|||||||||||
|
Income taxes
|
1,772
|
2,707
|
2,373
|
2,317
|
9,169
|
||||||||||||||||
|
Interest income, net
|
(128
|
)
|
(42
|
)
|
(69
|
)
|
(38
|
)
|
(277
|
)
|
|||||||||||
|
Depreciation and amortization expense
|
1,576
|
1,602
|
1,668
|
1,741
|
6,587
|
||||||||||||||||
|
Stock based compensation
|
304
|
265
|
1,074
|
625
|
2,268
|
||||||||||||||||
|
Adjusted EBITDA
|
$
|
8,437
|
$
|
9,233
|
$
|
8,817
|
$
|
9,507
|
$
|
35,994
|
|||||||||||
|
% Over (Under)
|
15.6
|
%
|
20.2
|
%
|
11.4
|
%
|
2.1
|
%
|
12.1
|
%
|
|||||||||||
Page 8 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||
|
RETURN ON CAPITAL EMPLOYED BY SEGMENT
|
||||||||||||
|
FOR THE NINE MONTHS ENDED JANUARY 29, 2017
|
||||||||||||
|
(Amounts in Thousands)
|
||||||||||||
|
(Unaudited)
|
||||||||||||
|
Operating Income
|
||||||||||||
|
Nine Months
|
Average
|
Return on
|
||||||||||
|
Ended
|
Capital
|
Avg. Capital
|
||||||||||
|
January 29, 2017 (1)
|
Employed (3)
|
Employed (2)
|
||||||||||
|
Mattress Fabrics
|
$
|
22,229
|
$
|
77,035
|
38.5
|
%
|
||||||
|
Upholstery Fabrics
|
8,579
|
17,712
|
64.6
|
%
|
||||||||
|
(less: Unallocated Corporate)
|
(7,900
|
)
|
(536
|
)
|
N/A
|
|||||||
|
Total
|
$
|
22,908
|
$
|
94,211
|
32.4
|
%
|
||||||
|
Average Capital Employed
|
As of the three Months Ended January 29, 2017
|
As of the three Months Ended October 30, 2016
|
As of the three Months Ended July 31, 2016
|
|||||||||||||||||||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||
|
Total assets
|
$ |
103,782
|
$ |
30,380
|
$ |
56,894
|
$ |
191,056
|
$ |
94,700
|
$ |
29,361
|
$ |
55,066
|
$ |
179,127
|
$ |
92,959
|
$ |
33,550
|
$ |
56,851
|
$ |
183,360
|
||||||||||||||||||
|
Total liabilities
|
(23,126
|
)
|
(11,960
|
)
|
(13,656
|
)
|
(48,742
|
)
|
(18,499
|
) |
(11,180
|
)
|
(13,499
|
)
|
(43,178
|
)
|
(16,313
|
)
|
(16,329
|
)
|
(19,283
|
)
|
(51,925
|
)
|
||||||||||||||||||
|
Subtotal
|
$
|
80,656
|
$
|
18,420
|
$
|
43,238
|
$
|
142,314
|
$
|
76,201
|
$
|
18,181
|
$
|
41,567
|
$
|
135,949
|
$
|
76,646
|
$
|
17,221
|
$
|
37,568
|
$
|
131,435
|
||||||||||||||||||
|
Less:
|
||||||||||||||||||||||||||||||||||||||||||
|
Cash and cash equivalents
|
-
|
-
|
(15,659
|
)
|
(15,659
|
)
|
-
|
-
|
(13,910
|
)
|
(13,910
|
)
|
-
|
-
|
(45,549
|
)
|
(45,549
|
)
|
||||||||||||||||||||||||
|
Short-term investments
|
-
|
-
|
(2,410
|
)
|
(2,410
|
)
|
-
|
-
|
(2,430
|
)
|
(2,430
|
)
|
-
|
-
|
(2,434
|
)
|
(2,434
|
)
|
||||||||||||||||||||||||
|
Long-term investments - Held-To-Maturity
|
-
|
-
|
(30,832
|
)
|
(30,832
|
)
|
-
|
-
|
(31,050
|
)
|
(31,050
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||
|
Long-term investments - Rabbi Trust
|
-
|
-
|
(5,488
|
)
|
(5,488
|
)
|
-
|
-
|
(4,994
|
)
|
(4,994
|
)
|
-
|
-
|
(4,611
|
)
|
(4,611
|
)
|
||||||||||||||||||||||||
|
Income taxes receivable
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
(422
|
)
|
(422
|
)
|
-
|
-
|
(581
|
)
|
(581
|
)
|
-
|
-
|
(1,942
|
)
|
(1,942
|
)
|
||||||||||||||||||||||||
|
Income taxes payable - current
|
-
|
-
|
217
|
217
|
-
|
-
|
513
|
513
|
-
|
-
|
358
|
358
|
||||||||||||||||||||||||||||||
|
Income taxes payable - long-term
|
-
|
-
|
1,817
|
1,817
|
-
|
-
|
3,734
|
3,734
|
-
|
-
|
3,779
|
3,779
|
||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
2,924
|
2,924
|
-
|
-
|
1,699
|
1,699
|
-
|
-
|
1,532
|
1,532
|
||||||||||||||||||||||||||||||
|
Line of credit
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
7,000
|
7,000
|
||||||||||||||||||||||||||||||
|
Deferred compensation
|
-
|
-
|
5,327
|
5,327
|
-
|
-
|
5,171
|
5,171
|
-
|
-
|
5,031
|
5,031
|
||||||||||||||||||||||||||||||
|
Total Capital Employed
|
$
|
80,656
|
$
|
18,420
|
$
|
(1,288
|
)
|
$
|
97,788
|
$
|
76,201
|
$
|
18,181
|
$
|
(281
|
)
|
$
|
94,101
|
$
|
76,646
|
$
|
17,221
|
$
|
732
|
$
|
94,599
|
||||||||||||||||
|
As of the three Months Ended May 1, 2016
|
||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||
|
Total assets
|
$ |
94,878
|
$ |
29,463
|
$ |
50,801
|
$ |
175,142
|
||||||||
|
Total liabilities
|
(20,241
|
)
|
(12,438
|
)
|
(13,651
|
)
|
(46,330
|
)
|
||||||||
|
Subtotal
|
$
|
74,637
|
$
|
17,025
|
$
|
37,150
|
$
|
128,812
|
||||||||
|
Less:
|
||||||||||||||||
|
Cash and cash equivalents
|
-
|
-
|
(37,787
|
)
|
(37,787
|
)
|
||||||||||
|
Short-term investments
|
-
|
-
|
(4,359
|
)
|
(4,359
|
)
|
||||||||||
|
Long-term investments - Held-To-Maturity
|
-
|
-
|
-
|
-
|
||||||||||||
|
Long-term investments - Rabbi Trust
|
-
|
-
|
(4,025
|
)
|
(4,025
|
)
|
||||||||||
|
Income taxes receivable
|
-
|
-
|
(155
|
)
|
(155
|
)
|
||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
(2,319
|
)
|
(2,319
|
)
|
||||||||||
|
Income taxes payable - current
|
-
|
-
|
180
|
180
|
||||||||||||
|
Income taxes payable - long-term
|
-
|
-
|
3,841
|
3,841
|
||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
1,483
|
1,483
|
||||||||||||
|
Line of credit
|
-
|
-
|
-
|
-
|
||||||||||||
|
Deferred compensation
|
-
|
-
|
4,686
|
4,686
|
||||||||||||
|
Total Capital Employed
|
$
|
74,637
|
$
|
17,025
|
$
|
(1,305
|
)
|
$
|
90,357
|
|||||||
|
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||
|
Average Capital Employed (3)
|
$
|
77,035
|
$
|
17,712
|
$
|
(536
|
)
|
$
|
94,211
|
|||||||
|
Notes:
|
|
|
|
|
|
(1)
|
See reconciliation per page 6 of this financial information release.
|
|
|
|
|
(2)
|
Return on average capital employed represents operating income for the nine month period ending January 29, 2017 divided by three quarters 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 - 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 four periods ending January 29, 2017, 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 NINE MONTHS ENDED JANUARY 31, 2016
|
||||||||||||
|
(Amounts in Thousands)
|
||||||||||||
|
(Unaudited)
|
||||||||||||
|
Operating Income
|
||||||||||||
|
Nine Months
|
Average
|
Return on
|
||||||||||
|
Ended
|
Capital
|
Avg. Capital
|
||||||||||
|
January 31, 2016 (1)
|
Employed (3)
|
Employed (2)
|
||||||||||
|
Mattress Fabrics
|
$
|
19,267
|
$
|
71,492
|
35.9
|
%
|
||||||
|
Upholstery Fabrics
|
8,994
|
17,413
|
68.9
|
%
|
||||||||
|
(less: Unallocated Corporate)
|
(7,275
|
)
|
(631
|
)
|
N/A
|
|||||||
|
Total
|
$
|
20,986
|
$
|
88,275
|
31.7
|
%
|
||||||
|
Average Capital Employed
|
As of the three Months Ended January 31, 2016
|
As of the three Months Ended November 1, 2015
|
As of the three Months Ended August 2, 2015
|
||||||||||||||||||||||||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
|||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
||||||||||||||||||||||||||||||||||||
|
Total assets
|
$ |
93,779
|
$ |
33,975
|
$ |
45,797
|
$ |
173,551
|
$ |
90,730
|
$ |
32,187
|
$ |
46,030
|
$ |
168,947
|
$ |
91,614
|
$ |
33,795
|
$ |
41,470
|
$ |
166,879
|
|||||||||||||||||||||||
|
Total liabilities
|
(21,135
|
)
|
(14,352
|
)
|
(12,990
|
)
|
(48,477
|
)
|
(19,228
|
)
|
(15,129
|
)
|
(11,615
|
)
|
(45,972
|
)
|
(20,265
|
)
|
(14,849
|
)
|
(13,040
|
)
|
(48,154
|
)
|
|||||||||||||||||||||||
|
Subtotal
|
$
|
72,644
|
$
|
19,623
|
$
|
32,807
|
$
|
125,074
|
$
|
71,502
|
$
|
17,058
|
$
|
34,415
|
$
|
122,975
|
$
|
71,349
|
$
|
18,946
|
$
|
28,430
|
$
|
118,725
|
|||||||||||||||||||||||
|
Less:
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
Cash and cash equivalents
|
-
|
-
|
(31,713
|
)
|
(31,713
|
)
|
-
|
-
|
(31,176
|
)
|
(31,176
|
)
|
-
|
-
|
(25,933
|
)
|
(25,933
|
)
|
|||||||||||||||||||||||||||||
|
Short-term investments
|
-
|
-
|
(4,259
|
)
|
(4,259
|
)
|
-
|
-
|
(6,320
|
)
|
(6,320
|
)
|
-
|
-
|
(6,336
|
)
|
(6,336
|
)
|
|||||||||||||||||||||||||||||
|
Long-term investments - Rabbi Trust
|
-
|
-
|
(3,590
|
)
|
(3,590
|
)
|
-
|
-
|
(3,279
|
)
|
(3,279
|
)
|
-
|
-
|
(2,893
|
)
|
(2,893
|
)
|
|||||||||||||||||||||||||||||
|
Income taxes receivable
|
-
|
-
|
(23
|
)
|
(23
|
)
|
-
|
-
|
(75
|
)
|
(75
|
)
|
-
|
-
|
(142
|
)
|
(142
|
)
|
|||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
(4,312
|
)
|
(4,312
|
)
|
-
|
-
|
(3,415
|
)
|
(3,415
|
)
|
-
|
-
|
(4,405
|
)
|
(4,405
|
)
|
|||||||||||||||||||||||||||||
|
Current maturities of long-term debt
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2,200
|
2,200
|
|||||||||||||||||||||||||||||||||||
|
Income taxes payable - current
|
-
|
-
|
622
|
622
|
-
|
-
|
305
|
305
|
-
|
-
|
392
|
392
|
|||||||||||||||||||||||||||||||||||
|
Income taxes payable - long-term
|
-
|
-
|
3,480
|
3,480
|
-
|
-
|
3,655
|
3,655
|
-
|
-
|
3,634
|
3,634
|
|||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
1,209
|
1,209
|
-
|
-
|
1,206
|
1,206
|
-
|
-
|
1,071
|
1,071
|
|||||||||||||||||||||||||||||||||||
|
Deferred compensation
|
-
|
-
|
4,495
|
4,495
|
-
|
-
|
4,421
|
4,421
|
-
|
-
|
4,280
|
4,280
|
|||||||||||||||||||||||||||||||||||
|
Total Capital Employed
|
$
|
72,644
|
$
|
19,623
|
$
|
(1,284
|
)
|
$
|
90,983
|
$
|
71,502
|
$
|
17,058
|
$
|
(263
|
)
|
$
|
88,297
|
$
|
71,349
|
$
|
18,946
|
$
|
298
|
$
|
90,593
|
|||||||||||||||||||||
|
As of the three Months Ended May 3, 2015
|
||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||
|
Total assets
|
$ |
89,066
|
$ |
32,838
|
$ |
49,396
|
$ |
171,300
|
||||||||
|
Total liabilities
|
(18,594
|
)
|
(18,812
|
)
|
(14,467
|
)
|
(51,873
|
)
|
||||||||
|
Subtotal
|
$
|
70,472
|
$
|
14,026
|
$
|
34,929
|
$
|
119,427
|
||||||||
|
Less:
|
||||||||||||||||
|
Cash and cash equivalents
|
-
|
-
|
(29,725
|
)
|
(29,725
|
)
|
||||||||||
|
Short-term investments
|
-
|
-
|
(10,004
|
)
|
(10,004
|
)
|
||||||||||
|
Long-term investments - Rabbi Trust
|
-
|
-
|
(2,415
|
)
|
(2,415
|
)
|
||||||||||
|
Income taxes receivable
|
-
|
-
|
(229
|
)
|
(229
|
)
|
||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
(5,169
|
)
|
(5,169
|
)
|
||||||||||
|
Current maturities of long-term debt
|
-
|
-
|
2,200
|
2,200
|
||||||||||||
|
Income taxes payable - current
|
-
|
-
|
325
|
325
|
||||||||||||
|
Income taxes payable - long-term
|
-
|
-
|
3,792
|
3,792
|
||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
982
|
982
|
||||||||||||
|
Deferred compensation
|
-
|
-
|
4,041
|
4,041
|
||||||||||||
|
Total Capital Employed
|
$
|
70,472
|
$
|
14,026
|
$
|
(1,273
|
)
|
$
|
83,225
|
|||||||
|
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||
|
Average Capital Employed (3)
|
$
|
71,492
|
$
|
17,413
|
$
|
(631
|
)
|
$
|
88,275
|
|||||||
|
Notes:
|
|
|
|
|
|
(1)
|
See reconciliation per page 6 of this financial information release.
|
|
|
|
|
(2)
|
Return on average capital employed represents operating income for the nine month period ending January 31, 2016 divided by three quarters 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 - 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 four periods ending January 31, 2016, 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 NINE MONTHS ENDED JANUARY 29, 2017 AND JANUARY 31, 2016
|
||||||||||
|
Unaudited
|
||||||||||
|
(Amounts in Thousands)
|
||||||||||
|
NINE MONTHS ENDED
|
||||||||||
|
Amounts
|
||||||||||
|
January 29,
|
January 31,
|
|||||||||
|
2017
|
2016
|
|||||||||
|
Consolidated Effective GAAP Income Tax Rate
|
(1)
|
|
28.9
|
%
|
35.7
|
%
|
||||
|
Non-Cash U.S. Income Tax Expense
|
(20.9
|
)%
|
(17.9
|
)%
|
||||||
|
Reversal of Foreign Uncertain Income Tax Position
|
9.1
|
%
|
0.0
|
%
|
||||||
|
Other Non-Cash Foreign Income Tax Expense
|
(0.5
|
)%
|
0.0
|
%
|
||||||
|
Consolidated Adjusted Effective Income Tax Rate
|
(2)
|
|
16.6
|
%
|
17.8
|
%
|
||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||||||
|
As reported
|
January 29, 2017
|
As reported
|
January 31, 2016
|
|||||||||||||||||||||
|
January 29,
|
Proforma Net
|
January 31,
|
Proforma Net
|
|||||||||||||||||||||
|
2017
|
Adjustments
|
of Adjustments
|
2016
|
Adjustments
|
of Adjustments
|
|||||||||||||||||||
|
Income before income taxes
|
$
|
6,990
|
$
|
-
|
$
|
6,990
|
$
|
7,179
|
$
|
7,179
|
||||||||||||||
|
Income taxes (3)
|
643
|
$
|
517
|
1,160
|
2,317
|
$
|
(1,039
|
)
|
1,278
|
|||||||||||||||
|
Net income
|
$
|
6,347
|
$
|
(517
|
)
|
$
|
5,830
|
$
|
4,862
|
$
|
1,039
|
$
|
5,901
|
|||||||||||
|
Net income per share-basic
|
$
|
0.52
|
$
|
(0.04
|
)
|
$ |
0.47
|
$
|
0.39
|
$
|
0.08
|
$
|
0.48
|
|||||||||||
|
Net income per share-diluted
|
$
|
0.51
|
$
|
(0.04
|
)
|
$ |
0.47
|
$
|
0.39
|
$
|
0.08
|
$
|
0.47
|
|||||||||||
|
Average shares outstanding-basic
|
12,313
|
12,313
|
12,313
|
12,331
|
12,331
|
12,331
|
||||||||||||||||||
|
Average shares outstanding-diluted
|
12,544
|
12,544
|
12,544
|
12,486
|
12,486
|
12,486
|
||||||||||||||||||
|
NINE MONTHS ENDED
|
||||||||||||||||||||||||
|
As reported
|
January 29, 2017
|
As reported
|
January 31, 2016
|
|||||||||||||||||||||
|
January 29,
|
Proforma Net
|
January 31,
|
Proforma Net
|
|||||||||||||||||||||
|
2017
|
Adjustments
|
of Adjustments
|
2016
|
Adjustments
|
of Adjustments
|
|||||||||||||||||||
|
Income before income taxes
|
$
|
22,696
|
$
|
-
|
$
|
22,696
|
$
|
20,731
|
$
|
-
|
$
|
20,731
|
||||||||||||
|
Income taxes (3)
|
6,560
|
$
|
(2,792
|
)
|
3,768
|
7,398
|
$
|
(3,708
|
)
|
3,690
|
||||||||||||||
|
Net income
|
$
|
16,136
|
$
|
2,792
|
$
|
18,928
|
$
|
13,333
|
$
|
3,708
|
$
|
17,041
|
||||||||||||
|
Net income per share-basic
|
$
|
1.31
|
$
|
0.23
|
$
|
1.54
|
$
|
1.08
|
$
|
0.30
|
$
|
1.38
|
||||||||||||
|
Net income per share-diluted
|
$
|
1.29
|
$
|
0.22
|
$
|
1.51
|
$
|
1.07
|
$
|
0.30
|
$
|
1.36
|
||||||||||||
|
Average shares outstanding-basic
|
12,302
|
12,302
|
12,302
|
12,317
|
12,317
|
12,317
|
||||||||||||||||||
|
Average shares outstanding-diluted
|
12,517
|
12,517
|
12,517
|
12,488
|
12,488
|
12,488
|
||||||||||||||||||
|
(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.
|