Attached files
| file | filename |
|---|---|
| 8-K - CULP, INC. 8-K - CULP INC | a51719356.htm |
| EX-99.(A) - EXHIBIT 99(A) - CULP INC | a51719356_ex99a.htm |
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF NET INCOME
|
||||||||||||||||||||
|
FOR THREE AND SIX MONTHS ENDED OCTOBER 29, 2017 AND OCTOBER 30, 2016
|
||||||||||||||||||||
|
(UNAUDITED)
|
||||||||||||||||||||
|
(Amounts in Thousands, Except for Per Share Data)
|
||||||||||||||||||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
October 29,
|
October 30,
|
% Over
|
October 29,
|
October 30,
|
||||||||||||||||
|
2017
|
2016
|
(Under)
|
2017
|
2016
|
||||||||||||||||
|
Net sales
|
$
|
80,698
|
75,343
|
7.1
|
%
|
100.0
|
%
|
100.0
|
%
|
|||||||||||
|
Cost of sales
|
64,894
|
58,442
|
11.0
|
%
|
80.4
|
%
|
77.6
|
%
|
||||||||||||
|
Gross profit
|
15,804
|
16,901
|
(6.5
|
)%
|
19.6
|
%
|
22.4
|
%
|
||||||||||||
|
Selling, general and
|
||||||||||||||||||||
|
administrative expenses
|
9,415
|
9,602
|
(1.9
|
)%
|
11.7
|
%
|
12.7
|
%
|
||||||||||||
|
Income from operations
|
6,389
|
7,299
|
(12.5
|
)%
|
7.9
|
%
|
9.7
|
%
|
||||||||||||
|
Interest expense
|
37
|
-
|
100.0
|
%
|
0.0
|
%
|
0.0
|
%
|
||||||||||||
|
Interest income
|
(128
|
)
|
(15
|
)
|
753.3
|
%
|
(0.2
|
)%
|
(0.0
|
)%
|
||||||||||
|
Other expense
|
321
|
155
|
107.1
|
%
|
0.4
|
%
|
0.2
|
%
|
||||||||||||
|
Income before income taxes
|
6,159
|
7,159
|
(14.0
|
)%
|
7.6
|
%
|
9.5
|
%
|
||||||||||||
|
Income taxes*
|
2,108
|
2,684
|
(21.5
|
)%
|
34.2
|
%
|
37.5
|
%
|
||||||||||||
|
Loss from investment in unconsolidated joint venture
|
75
|
-
|
100.0
|
%
|
0.1
|
%
|
0.0
|
%
|
||||||||||||
|
Net income
|
$
|
3,976
|
4,475
|
(11.2
|
)%
|
4.9
|
%
|
5.9
|
%
|
|||||||||||
|
Net income per share-basic
|
$
|
0.32
|
$
|
0.36
|
(11.1
|
)%
|
||||||||||||||
|
Net income per share-diluted
|
$
|
0.32
|
$
|
0.36
|
(11.1
|
)%
|
||||||||||||||
|
Average shares outstanding-basic
|
12,440
|
12,308
|
1.1
|
%
|
||||||||||||||||
|
Average shares outstanding-diluted
|
12,580
|
12,507
|
0.6
|
%
|
||||||||||||||||
|
SIX MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Sales
|
|||||||||||||||||||
|
October 29,
|
October 30,
|
% Over
|
October 29,
|
October 30,
|
||||||||||||||||
|
2017
|
2016
|
(Under)
|
2017
|
2016
|
||||||||||||||||
|
Net sales
|
$
|
160,230
|
156,026
|
2.7
|
%
|
100.0
|
%
|
100.0
|
%
|
|||||||||||
|
Cost of sales
|
127,962
|
120,705
|
6.0
|
%
|
79.9
|
%
|
77.4
|
%
|
||||||||||||
|
Gross profit
|
32,268
|
35,321
|
(8.6
|
)%
|
20.1
|
%
|
22.6
|
%
|
||||||||||||
|
Selling, general and
|
||||||||||||||||||||
|
administrative expenses
|
18,916
|
19,348
|
(2.2
|
)%
|
11.8
|
%
|
12.4
|
%
|
||||||||||||
|
Income from operations
|
13,352
|
15,973
|
(16.4
|
)%
|
8.3
|
%
|
10.2
|
%
|
||||||||||||
|
Interest expense
|
37
|
-
|
100.0
|
%
|
0.0
|
%
|
0.0
|
%
|
||||||||||||
|
Interest income
|
(259
|
)
|
(40
|
)
|
547.5
|
%
|
(0.2
|
)%
|
(0.0
|
)%
|
||||||||||
|
Other expense
|
674
|
307
|
119.5
|
%
|
0.4
|
%
|
0.2
|
%
|
||||||||||||
|
Income before income taxes
|
12,900
|
15,706
|
(17.9
|
)%
|
8.1
|
%
|
10.1
|
%
|
||||||||||||
|
Income taxes*
|
3,748
|
5,917
|
(36.7
|
)%
|
29.1
|
%
|
37.7
|
%
|
||||||||||||
|
Loss from investment in unconsolidated joint venture
|
193
|
-
|
100.0
|
%
|
0.1
|
%
|
0.0
|
%
|
||||||||||||
|
Net income
|
$
|
8,959
|
9,789
|
(8.5
|
)%
|
5.6
|
%
|
6.3
|
%
|
|||||||||||
|
Net income per share-basic
|
$
|
0.72
|
$
|
0.80
|
(10.0
|
)%
|
||||||||||||||
|
Net income per share-diluted
|
$
|
0.71
|
$
|
0.78
|
(9.0
|
)%
|
||||||||||||||
|
Average shares outstanding-basic
|
12,420
|
12,297
|
1.0
|
%
|
||||||||||||||||
|
Average shares outstanding-diluted
|
12,613
|
12,495
|
0.9
|
%
|
||||||||||||||||
|
* 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 BALANCE SHEETS
|
||||||||||||||||||||
|
OCTOBER 29, 2017, OCTOBER 30, 2016, AND APRIL 30, 2017
|
||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||
|
(Amounts in Thousands)
|
||||||||||||||||||||
|
Amounts
|
Increase
|
|||||||||||||||||||
|
October 29,
|
October 30,
|
(Decrease)
|
* April 30,
|
|||||||||||||||||
|
2017
|
2016
|
Dollars
|
Percent
|
2017
|
||||||||||||||||
|
Current assets
|
||||||||||||||||||||
|
Cash and cash equivalents
|
$
|
15,739
|
13,910
|
1,829
|
13.1
|
%
|
20,795
|
|||||||||||||
|
Short-term investments - Available for Sale
|
2,478
|
2,430
|
48
|
2.0
|
%
|
2,443
|
||||||||||||||
|
Short-term investments - Held-To-Maturity
|
4,015
|
-
|
4,015
|
100.0
|
%
|
-
|
||||||||||||||
|
Accounts receivable
|
24,220
|
19,039
|
5,181
|
27.2
|
%
|
24,577
|
||||||||||||||
|
Inventories
|
50,209
|
45,954
|
4,255
|
9.3
|
%
|
51,482
|
||||||||||||||
|
Other current assets
|
2,263
|
1,675
|
588
|
35.1
|
%
|
2,894
|
||||||||||||||
|
Total current assets
|
98,924
|
83,008
|
15,916
|
19.2
|
%
|
102,191
|
||||||||||||||
|
Property, plant & equipment, net
|
52,530
|
45,537
|
6,993
|
15.4
|
%
|
51,651
|
||||||||||||||
|
Goodwill
|
11,462
|
11,462
|
-
|
0.0
|
%
|
11,462
|
||||||||||||||
|
Deferred income taxes
|
491
|
581
|
(90
|
)
|
(15.5
|
)%
|
419
|
|||||||||||||
|
Long-term Investments - Held-To-Maturity
|
26,853
|
31,050
|
(4,197
|
)
|
(13.5
|
)%
|
30,945
|
|||||||||||||
|
Long-term Investments - Rabbi Trust
|
6,921
|
4,994
|
1,927
|
38.6
|
%
|
5,466
|
||||||||||||||
|
Investment in unconsolidated joint venture
|
1,522
|
-
|
1,522
|
100.0
|
%
|
1,106
|
||||||||||||||
|
Other assets
|
2,340
|
2,495
|
(155
|
)
|
(6.2
|
)%
|
2,394
|
|||||||||||||
|
Total assets
|
$
|
201,043
|
179,127
|
21,916
|
12.2
|
%
|
205,634
|
|||||||||||||
|
Current liabilities
|
||||||||||||||||||||
|
Accounts payable - trade
|
$
|
24,600
|
20,183
|
4,417
|
21.9
|
%
|
29,101
|
|||||||||||||
|
Accounts payable - capital expenditures
|
3,209
|
3,000
|
209
|
7.0
|
%
|
4,767
|
||||||||||||||
|
Accrued expenses
|
7,364
|
8,878
|
(1,514
|
)
|
(17.1
|
)%
|
11,947
|
|||||||||||||
|
Income taxes payable - current
|
692
|
513
|
179
|
34.9
|
%
|
287
|
||||||||||||||
|
Total current liabilities
|
35,865
|
32,574
|
3,291
|
10.1
|
%
|
46,102
|
||||||||||||||
|
Accounts payable - capital expenditures
|
-
|
-
|
-
|
0.0
|
%
|
1,322
|
||||||||||||||
|
Income taxes payable - long-term
|
487
|
3,734
|
(3,247
|
)
|
(87.0
|
)%
|
467
|
|||||||||||||
|
Deferred income taxes
|
4,641
|
1,699
|
2,942
|
173.2
|
%
|
3,593
|
||||||||||||||
|
Deferred compensation
|
6,970
|
5,171
|
1,799
|
34.8
|
%
|
5,520
|
||||||||||||||
|
Total liabilities
|
47,963
|
43,178
|
4,785
|
11.1
|
%
|
57,004
|
||||||||||||||
|
Shareholders' equity
|
153,080
|
135,949
|
17,131
|
12.6
|
%
|
148,630
|
||||||||||||||
|
Total liabilities and
|
||||||||||||||||||||
|
shareholders' equity
|
$
|
201,043
|
179,127
|
21,916
|
12.2
|
%
|
205,634
|
|||||||||||||
|
Shares outstanding
|
12,435
|
12,312
|
123
|
1.0
|
%
|
12,357
|
||||||||||||||
|
* Derived from audited financial statements.
|
||||||||||||||||||||
Page 3 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||
|
SUMMARY OF CASH AND INVESTMENTS
|
||||||||||||
|
OCTOBER 29, 2017 AND OCTOBER 30, 2016, AND APRIL 30, 2017
|
||||||||||||
|
Unaudited
|
||||||||||||
|
(Amounts in Thousands)
|
||||||||||||
| Amounts | ||||||||||||
|
October 29,
|
October 30,
|
April 30,
|
||||||||||
|
2017
|
2016
|
2017* |
|
|||||||||
|
Cash and cash equivalents
|
$
|
15,739
|
$
|
13,910
|
$
|
20,795
|
||||||
|
Short-term investments - Available for Sale
|
2,478
|
2,430
|
2,443
|
|||||||||
|
Short-term investments - Held-To-Maturity
|
4,015
|
-
|
-
|
|||||||||
|
Long-term investments - Held-To-Maturity
|
26,853
|
31,050
|
30,945
|
|||||||||
|
Total Cash and Investments
|
$
|
49,085
|
$
|
47,390
|
$
|
54,183
|
||||||
* 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 29, 2017 AND OCTOBER 30, 2016
|
|||||||||
|
Unaudited
|
|||||||||
|
(Amounts in Thousands)
|
|||||||||
|
SIX MONTHS ENDED
|
|||||||||
|
Amounts
|
|||||||||
|
October 29,
|
October 30,
|
||||||||
|
2017
|
2016
|
||||||||
|
Cash flows from operating activities:
|
|||||||||
|
Net income
|
$
|
8,959
|
9,789
|
||||||
|
Adjustments to reconcile net income to net cash
|
|||||||||
|
provided by operating activities:
|
|||||||||
|
Depreciation
|
3,713
|
3,511
|
|||||||
|
Amortization of assets
|
166
|
80
|
|||||||
|
Stock-based compensation
|
1,558
|
1,657
|
|||||||
|
Deferred income taxes
|
976
|
2,121
|
|||||||
|
Realized loss on sale of short-term investments (Available for Sale)
|
-
|
12
|
|||||||
|
Loss on sale of equipment
|
-
|
9
|
|||||||
|
Loss from investment in unconsolidated joint venture
|
193
|
-
|
|||||||
|
Foreign currency exchange loss (gain)
|
42
|
(53
|
)
|
||||||
|
Changes in assets and liabilities:
|
|||||||||
|
Accounts receivable
|
561
|
4,142
|
|||||||
|
Inventories
|
1,597
|
219
|
|||||||
|
Other current assets
|
723
|
751
|
|||||||
|
Other assets
|
(35
|
)
|
-
|
||||||
|
Accounts payable
|
(5,074
|
)
|
(3,274
|
)
|
|||||
|
Accrued expenses and deferrred compensation
|
(3,607
|
)
|
(2,469
|
)
|
|||||
|
Income taxes
|
406
|
554
|
|||||||
|
Net cash provided by operating activities
|
10,178
|
17,049
|
|
(2) | |||||
|
Cash flows from investing activities:
|
|||||||||
|
Capital expenditures
|
(4,978
|
)
|
(6,308
|
)
|
|||||
|
Investment in unconsolidated joint venture
|
(609
|
)
|
-
|
||||||
|
Proceeds from the sale of short-term investments (Available for Sale)
|
-
|
2,000
|
|||||||
|
Purchase of short-term investments (Available for Sale)
|
(24
|
)
|
(23
|
)
|
|||||
|
Purchase of long-term investments (Held-To-Maturity)
|
-
|
(31,050
|
)
|
||||||
|
Proceeds from the sale of long-term investments (Rabbi Trust)
|
54
|
-
|
|||||||
|
Purchase of long-term investments (Rabbi Trust)
|
(1,457
|
)
|
(929
|
)
|
|||||
|
Proceeds from the sale of equipment
|
6
|
-
|
|||||||
|
Net cash used in investing activities
|
(7,008
|
)
|
(36,310
|
)
|
|||||
|
Cash flows from financing activities:
|
|||||||||
|
Proceeds from line of credit
|
10,000
|
7,000
|
|||||||
|
Payments on line of credit
|
(10,000
|
)
|
(7,000
|
)
|
|||||
|
Payments on vendor-financed capital expenditures
|
(2,500
|
)
|
-
|
||||||
|
Dividends paid
|
(4,603
|
)
|
(4,307
|
)
|
|||||
|
Common stock surrendered for withholding taxes payable
|
(1,147
|
)
|
(280
|
)
|
|||||
|
Payments of debt issuance costs
|
-
|
(2
|
)
|
||||||
|
Proceeds from common stock issued
|
5
|
11
|
|||||||
|
Net cash used in financing activities
|
(8,245
|
)
|
(4,578
|
)
|
(2) | ||||
|
Effect of exchange rate changes on cash and cash equivalents
|
19
|
(38
|
)
|
||||||
|
Decrease in cash and cash equivalents
|
(5,056
|
)
|
(23,877
|
)
|
|||||
|
Cash and cash equivalents at beginning of period
|
20,795
|
37,787
|
|||||||
|
Cash and cash equivalents at end of period
|
$
|
15,739
|
13,910
|
||||||
|
Free Cash Flow (1)
|
$
|
713
|
9,774
|
|
(2) | ||||
|
(1) Free Cash Flow reconciliation is as follows:
|
||||||||||
|
FY 2018
|
FY 2017
|
|||||||||
|
A)
|
Net cash provided by operating activities
|
$
|
10,178
|
17,049
|
||||||
|
B)
|
Minus: Capital Expenditures
|
(4,978
|
)
|
(6,308
|
)
|
|||||
|
C)
|
Minus: Investment in unconsolidated joint venture
|
(609
|
)
|
-
|
||||||
|
D)
|
Plus: Proceeds from the sale of equipment
|
6
|
-
|
|||||||
|
E)
|
Minus: Payments on vendor-financed capital expenditures
|
(2,500
|
)
|
-
|
||||||
|
F)
|
Plus: Proceeds from the sale of long-term investments (Rabbi Trust)
|
54
|
-
|
|||||||
|
G)
|
Minus: Purchase of long-term investments (Rabbi Trust)
|
(1,457
|
)
|
(929
|
)
|
|||||
|
H)
|
Effects of exchange rate changes on cash and cash equivalents
|
19
|
(38
|
)
|
||||||
|
$
|
713
|
9,774
|
||||||||
| (2) | During the first quarter of fiscal 2018, we adopted ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." Accordingly, we reclassified certain amounts on our Statement of Cash Flows for the six months ended October 30, 2016 to conform to the current year's presentation. As a result, our net cash provided by operating activities increased by $447 which was fully offset by a corresponding decrease of $447 to our net cash provided by financing activities. Additionally, our free cash flow increased $280. |
Page 5 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
STATEMENTS OF OPERATIONS BY SEGMENT
|
||||||||||||||||||||
|
FOR THE THREE MONTHS ENDED OCTOBER 29, 2017 AND OCTOBER 30, 2016
|
||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||
|
(Amounts in thousands)
|
||||||||||||||||||||
|
THREE MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Total Sales
|
|||||||||||||||||||
|
October 29,
|
October 30,
|
% Over
|
October 29,
|
October 30,
|
||||||||||||||||
|
Net Sales by Segment
|
2017
|
2016
|
(Under)
|
2017
|
2016
|
|||||||||||||||
|
Mattress Fabrics
|
$
|
48,601
|
45,527
|
6.8
|
%
|
60.2
|
%
|
60.4
|
%
|
|||||||||||
|
Upholstery Fabrics
|
32,097
|
29,816
|
7.7
|
%
|
39.8
|
%
|
39.6
|
%
|
||||||||||||
|
Net Sales
|
$
|
80,698
|
75,343
|
7.1
|
%
|
100.0
|
%
|
100.0
|
%
|
|||||||||||
|
Gross Profit by Segment
|
Gross Profit Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$
|
9,730
|
10,756
|
(9.5
|
)%
|
20.0
|
%
|
23.6
|
%
|
|||||||||||
|
Upholstery Fabrics
|
6,074
|
6,145
|
(1.2
|
)%
|
18.9
|
%
|
20.6
|
%
|
||||||||||||
|
Gross Profit
|
$
|
15,804
|
16,901
|
(6.5
|
)%
|
19.6
|
%
|
22.4
|
%
|
|||||||||||
|
Selling, General and Administrative Expenses by Segment
|
Percent of Sales
|
|||||||||||||||||||
|
Mattress Fabrics
|
$
|
3,168
|
3,296
|
(3.9
|
)%
|
6.5
|
%
|
7.2
|
%
|
|||||||||||
|
Upholstery Fabrics
|
3,700
|
3,652
|
1.3
|
%
|
11.5
|
%
|
12.2
|
%
|
||||||||||||
|
Unallocated Corporate expenses
|
2,547
|
2,654
|
(4.0
|
)%
|
3.2
|
%
|
3.5
|
%
|
||||||||||||
|
Selling, General and Administrative Expenses
|
$
|
9,415
|
9,602
|
(1.9
|
)%
|
11.7
|
%
|
12.7
|
%
|
|||||||||||
|
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$
|
6,562
|
7,460
|
(12.0
|
)%
|
13.5
|
%
|
16.4
|
%
|
|||||||||||
|
Upholstery Fabrics
|
2,374
|
2,493
|
(4.8
|
)%
|
7.4
|
%
|
8.4
|
%
|
||||||||||||
|
Unallocated corporate expenses
|
(2,547
|
)
|
(2,654
|
)
|
(4.0
|
)%
|
(3.2
|
)%
|
(3.5
|
)%
|
||||||||||
|
Operating income
|
$
|
6,389
|
7,299
|
(12.5
|
)%
|
7.9
|
%
|
9.7
|
%
|
|||||||||||
|
Depreciation by Segment
|
||||||||||||||||||||
|
Mattress Fabrics
|
$
|
1,698
|
1,545
|
9.9
|
%
|
|||||||||||||||
|
Upholstery Fabrics
|
207
|
206
|
0.5
|
%
|
||||||||||||||||
|
Depreciation
|
$
|
1,905
|
1,751
|
8.8
|
%
|
|||||||||||||||
Page 6 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
STATEMENTS OF OPERATIONS BY SEGMENT
|
||||||||||||||||||||
|
FOR THE SIX MONTHS ENDED OCTOBER 29, 2017 AND OCTOBER 30, 2016
|
||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||
|
(Amounts in thousands)
|
||||||||||||||||||||
|
SIX MONTHS ENDED
|
||||||||||||||||||||
|
Amounts
|
Percent of Total Sales
|
|||||||||||||||||||
|
October 29,
|
October 30,
|
% Over
|
October 29,
|
October 30,
|
||||||||||||||||
|
Net Sales by Segment
|
2017
|
2016
|
(Under)
|
2017
|
2016
|
|||||||||||||||
|
Mattress Fabrics
|
$
|
97,030
|
96,057
|
1.0
|
%
|
60.6
|
%
|
61.6
|
%
|
|||||||||||
|
Upholstery Fabrics
|
63,200
|
59,969
|
5.4
|
%
|
39.4
|
%
|
38.4
|
%
|
||||||||||||
|
Net Sales
|
$
|
160,230
|
156,026
|
2.7
|
%
|
100.0
|
%
|
100.0
|
%
|
|||||||||||
|
Gross Profit by Segment
|
Gross Profit Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$
|
19,495
|
22,657
|
(14.0
|
)%
|
20.1
|
%
|
23.6
|
%
|
|||||||||||
|
Upholstery Fabrics
|
12,773
|
12,664
|
0.9
|
%
|
20.2
|
%
|
21.1
|
%
|
||||||||||||
|
Gross Profit
|
$
|
32,268
|
35,321
|
(8.6
|
)%
|
20.1
|
%
|
22.6
|
%
|
|||||||||||
|
Selling, General and Administrative Expenses by Segment
|
Percent of Sales
|
|||||||||||||||||||
|
Mattress Fabrics
|
$
|
6,559
|
6,795
|
(3.5
|
)%
|
6.8
|
%
|
7.1
|
%
|
|||||||||||
|
Upholstery Fabrics
|
7,511
|
7,185
|
4.5
|
%
|
11.9
|
%
|
12.0
|
%
|
||||||||||||
|
Unallocated Corporate expenses
|
4,846
|
5,368
|
(9.7
|
)%
|
3.0
|
%
|
3.4
|
%
|
||||||||||||
|
Selling, General, and Administrative Expenses
|
$
|
18,916
|
19,348
|
(2.2
|
)%
|
11.8
|
%
|
12.4
|
%
|
|||||||||||
|
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
|||||||||||||||||||
|
Mattress Fabrics
|
$
|
12,936
|
15,862
|
(18.4
|
)%
|
13.3
|
%
|
16.5
|
%
|
|||||||||||
|
Upholstery Fabrics
|
5,262
|
5,479
|
(4.0
|
)%
|
8.3
|
%
|
9.1
|
%
|
||||||||||||
|
Unallocated corporate expenses
|
(4,846
|
)
|
(5,368
|
)
|
(9.7
|
)%
|
(3.0
|
)%
|
(3.4
|
)%
|
||||||||||
|
Operating income
|
$
|
13,352
|
15,973
|
(16.4
|
)%
|
8.3
|
%
|
10.2
|
%
|
|||||||||||
|
Return on Capital (1)
|
||||||||||||||||||||
|
Mattress Fabrics
|
29.6
|
%
|
41.8
|
%
|
||||||||||||||||
|
Upholstery Fabrics
|
59.3
|
%
|
62.7
|
%
|
||||||||||||||||
|
Unallocated Corporate
|
N/A
|
N/A
|
||||||||||||||||||
|
Consolidated
|
25.3
|
%
|
34.3
|
%
|
||||||||||||||||
|
Capital Employed (2)
|
||||||||||||||||||||
|
Mattress Fabrics
|
$
|
91,367
|
76,201
|
19.9
|
%
|
|||||||||||||||
|
Upholstery Fabrics
|
17,749
|
18,181
|
(2.4
|
)%
|
||||||||||||||||
|
Unallocated Corporate
|
257
|
(281
|
)
|
N/A
|
||||||||||||||||
|
Consolidated
|
$
|
109,373
|
94,101
|
16.2
|
%
|
|||||||||||||||
|
Depreciation by Segment
|
||||||||||||||||||||
|
Mattress Fabrics
|
$
|
3,310
|
3,101
|
6.7
|
%
|
|||||||||||||||
|
Upholstery Fabrics
|
403
|
410
|
(1.7
|
)%
|
||||||||||||||||
|
Depreciation
|
$
|
3,713
|
3,511
|
5.8
|
%
|
|||||||||||||||
|
Notes:
|
||||||||||||||||||||
|
(1) See pages 8 and 9 of this financial information release for calculations.
|
||||||||||||||||||||
|
(2) The capital employed balances are as of October 29, 2017 and October 30, 2016.
|
||||||||||||||||||||
Page 7 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA
|
||||||||||||||||||||
|
FOR THE TWELVE MONTHS ENDED OCTOBER 29, 2017 AND OCTOBER 30, 2016
|
||||||||||||||||||||
|
(UNAUDITED)
|
||||||||||||||||||||
|
(AMOUNTS IN THOUSANDS)
|
||||||||||||||||||||
|
Quarter Ended
|
||||||||||||||||||||
|
Trailing 12
|
||||||||||||||||||||
|
Months
|
||||||||||||||||||||
|
1/29/2017
|
4/30/2017
|
7/30/2017
|
10/29/2017
|
10/29/2017
|
||||||||||||||||
|
Net income
|
$
|
6,347
|
$
|
6,198
|
$
|
4,984
|
$
|
3,976
|
$
|
21,505
|
||||||||||
|
Income taxes
|
643
|
778
|
1,640
|
2,108
|
5,169
|
|||||||||||||||
|
Interest income, net
|
(124
|
)
|
(134
|
)
|
(131
|
)
|
(91
|
)
|
(480
|
)
|
||||||||||
|
Depreciation and amortization expense
|
1,875
|
1,863
|
1,889
|
1,990
|
7,617
|
|||||||||||||||
|
Stock based compensation
|
962
|
739
|
757
|
801
|
3,259
|
|||||||||||||||
|
Adjusted EBITDA
|
$
|
9,703
|
$
|
9,444
|
$
|
9,139
|
$
|
8,784
|
$
|
37,070
|
||||||||||
|
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
|
||||||||||
|
% Over (Under)
|
2.1
|
%
|
-3.1
|
%
|
-17.6
|
%
|
-10.5
|
%
|
-7.7
|
%
|
||||||||||
Page 8 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||
|
RETURN ON CAPITAL EMPLOYED BY SEGMENT
|
||||||||||||
|
FOR THE SIX MONTHS ENDED OCTOBER 29, 2017
|
||||||||||||
|
(Amounts in Thousands)
|
||||||||||||
|
(Unaudited)
|
||||||||||||
| Operating | ||||||||||||
|
Income
|
||||||||||||
|
Six Months
|
Average
|
Return on
|
||||||||||
|
Ended
|
Capital
|
Avg. Capital
|
||||||||||
|
October 29, 2017 (1)
|
Employed (3)
|
Employed (2)
|
||||||||||
|
Mattress Fabrics
|
$
|
12,936
|
$
|
87,541
|
29.6
|
%
|
||||||
|
Upholstery Fabrics
|
5,262
|
17,754
|
59.3
|
%
|
||||||||
|
(less: Unallocated Corporate)
|
(4,846
|
)
|
46
|
N/A
|
||||||||
|
Total
|
$
|
13,352
|
$
|
105,341
|
25.3
|
%
|
||||||
|
Average Capital Employed
|
As of the three Months Ended October 29, 2017
|
As of the three Months Ended July 30, 2017
|
As of the three Months Ended April 30, 2017
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||
|
Total assets
|
$
|
107,517
|
34,974
|
58,552
|
201,043
|
$
|
112,112
|
34,491
|
61,301
|
207,904
|
$
|
111,041
|
32,255
|
62,338
|
205,634
|
|||||||||||||||||||||||||||||||||
|
Total liabilities
|
(16,150
|
)
|
(17,225
|
)
|
(14,588
|
)
|
(47,963
|
)
|
(24,277
|
)
|
(14,983
|
)
|
(18,967
|
)
|
(58,227
|
)
|
(27,619
|
)
|
(16,249
|
)
|
(13,136
|
)
|
(57,004
|
)
|
||||||||||||||||||||||||
|
Subtotal
|
$
|
91,367
|
$
|
17,749
|
$
|
43,964
|
$
|
153,080
|
$
|
87,835
|
$
|
19,508
|
$
|
42,334
|
$
|
149,677
|
$
|
83,422
|
$
|
16,006
|
$
|
49,202
|
$
|
148,630
|
||||||||||||||||||||||||
|
Less:
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Cash and cash equivalents
|
-
|
-
|
(15,739
|
)
|
(15,739
|
)
|
-
|
-
|
(18,322
|
)
|
(18,322
|
)
|
-
|
-
|
(20,795
|
)
|
(20,795
|
)
|
||||||||||||||||||||||||||||||
|
Short-term investments - Available for Sale
|
-
|
-
|
(2,478
|
)
|
(2,478
|
)
|
-
|
-
|
(2,469
|
)
|
(2,469
|
)
|
-
|
-
|
(2,443
|
)
|
(2,443
|
)
|
||||||||||||||||||||||||||||||
|
Short-term investments - Held-To-Maturity
|
-
|
-
|
(4,015
|
)
|
(4,015
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||
|
Long-term investments - Held-To-Maturity
|
-
|
-
|
(26,853
|
)
|
(26,853
|
)
|
-
|
-
|
(30,907
|
)
|
(30,907
|
)
|
-
|
-
|
(30,945
|
)
|
(30,945
|
)
|
||||||||||||||||||||||||||||||
|
Long-term investments - Rabbi Trust
|
-
|
-
|
(6,921
|
)
|
(6,921
|
)
|
-
|
-
|
(6,714
|
)
|
(6,714
|
)
|
-
|
-
|
(5,466
|
)
|
(5,466
|
)
|
||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
(491
|
)
|
(491
|
)
|
-
|
-
|
(436
|
)
|
(436
|
)
|
-
|
-
|
(419
|
)
|
(419
|
)
|
||||||||||||||||||||||||||||||
|
Income taxes payable - current
|
-
|
-
|
692
|
692
|
-
|
-
|
884
|
884
|
-
|
-
|
287
|
287
|
||||||||||||||||||||||||||||||||||||
|
Income taxes payable - long-term
|
-
|
-
|
487
|
487
|
-
|
-
|
487
|
487
|
-
|
-
|
467
|
467
|
||||||||||||||||||||||||||||||||||||
|
Deferred income taxes - non-current
|
-
|
-
|
4,641
|
4,641
|
-
|
-
|
4,253
|
4,253
|
-
|
-
|
3,593
|
3,593
|
||||||||||||||||||||||||||||||||||||
|
Line of credit
|
-
|
-
|
-
|
-
|
-
|
-
|
5,000
|
5,000
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||||||
|
Deferred compensation
|
-
|
-
|
6,970
|
6,970
|
-
|
-
|
6,769
|
6,769
|
-
|
-
|
5,520
|
5,520
|
||||||||||||||||||||||||||||||||||||
|
Total Capital Employed
|
$
|
91,367
|
$
|
17,749
|
$
|
257
|
$
|
109,373
|
$
|
87,835
|
$
|
19,508
|
$
|
879
|
$
|
108,222
|
$
|
83,422
|
$
|
16,006
|
$
|
(999
|
)
|
$
|
98,429
|
|||||||||||||||||||||||
|
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||||||||||||||||||||||||||||||||||
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Average Capital Employed (3)
|
$
|
87,541
|
$
|
17,754
|
$
|
46
|
$
|
105,341
|
||||||||||||||||||||||||||||||||||||||||
|
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 29, 2017 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 - Available for Sale, short-term investments - Held-To-Maturity, long-term investments - Held-To-Maturity, long-term investments - Rabbi Trust, noncurrent deferred income tax assets and liabilities, income taxes receivable and payable, line of credit, and deferred compensation. |
| (3) | Average capital employed was computed using the quarterly three periods ending October 29, 2017, July 30, 2017 and April 30, 2017. |
Page 9 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 - Available for Sale
|
-
|
-
|
(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 - available for sale, 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 quarterly periods ending October 30, 2016, July 31, 2016 and May 1, 2016. |
Page 10 of 10
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||
|
CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE
|
||||||||||||
|
FOR THE SIX MONTHS ENDED OCTOBER 29, 2017 AND OCTOBER 30, 2016
|
||||||||||||
|
Unaudited
|
||||||||||||
|
(Amounts in Thousands)
|
||||||||||||
|
SIX MONTHS ENDED
|
||||||||||||
| Amounts | ||||||||||||
|
October 29,
|
October 30,
|
|||||||||||
|
2017
|
2016
|
|||||||||||
|
Consolidated Effective GAAP Income Tax Rate
|
(1)
|
|
29.1
|
%
|
37.7
|
%
|
||||||
|
Non-Cash U.S. Income Tax Expense
|
(19.1
|
)%
|
(19.6
|
)%
|
||||||||
|
Excess Income Tax Benefits Related To Stock-Based
|
||||||||||||
|
Compensation
|
4.3
|
%
|
-
|
|||||||||
|
Other Non-Cash Foreign Income Tax Expense
|
(0.1
|
)%
|
(0.3
|
)%
|
||||||||
|
Consolidated Adjusted Effective Income Tax Rate
|
(2)
|
|
14.2
|
%
|
17.8
|
%
|
||||||
| (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. |