Culp 8K Results of Operations and Financial Condition | CULP 27 Feb 08

Exhibit 99(b)
Page 1 of 7

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF NET INCOME (LOSS)
FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 27, 2008 AND JANUARY 28, 2007
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)

		THREE MONTHS ENDED

		Amounts				Percent of Sales
		January 27,	January 28,	% Over		January 27,		January 28,
		2008	2007	(Under)		2008		2007

Net sales	$	60,482	55,712	8.6	%	100.0	%	100.0	%
Cost of sales		53,706	51,001	5.3	%	88.8	%	91.5	%
Gross profit		6,776	4,711	43.8	%	11.2	%	8.5	%

Selling, general and
administrative expenses		5,117	6,394	(20.0)	%	8.5	%	11.5	%
Restructuring expense		412	1,275	(67.7)	%	0.7	%	2.3	%
Income (loss) from operations		1,247	(2,958)	142.2	%	2.1	%	(5.3)	%

Interest expense		753	952	(20.9)	%	1.2	%	1.7	%
Interest income		(77)	(50)	54.0	%	(0.1)	%	(0.1)	%
Other income		(72)	(157)	(54.1)	%	(0.1)	%	(0.3)	%
Income (loss) before income taxes		643	(3,703)	117.4	%	1.1	%	(6.6)	%

Income taxes*		(260)	(1,482)	(82.5)	%	(40.4)	%	40.0	%
Net income (loss)	$	903	(2,221)	140.7	%	1.5	%	(4.0)	%

Net income (loss) per share-basic		$0.07	($0.19)	136.8	%
Net income (loss) per share-diluted		$0.07	($0.19)	136.8	%
Net income (loss) per share, diluted, excluding restructuring
and related charges (see proforma statement on page 6)		$0.11	($0.01)	N.M.
Average shares outstanding-basic		12,635	11,773	7.3	%
Average shares outstanding-diluted		12,738	11,773	8.2	%



		NINE MONTHS ENDED

		Amounts				Percent of Sales
		January 27,	January 28,	% Over		January 27,		January 28,
		2008	2007	(Under)		2008		2007

Net sales	$	190,048	177,337	7.2	%	100.0	%	100.0	%
Cost of sales		165,794	156,575	5.9	%	87.2	%	88.3	%
Gross profit		24,254	20,762	16.8	%	12.8	%	11.7	%

Selling, general and
administrative expenses		17,275	19,240	(10.2)	%	9.1	%	10.8	%
Restructuring expense		759	1,742	(56.4)	%	0.4	%	1.0	%
Income (loss) from operations		6,220	(220)	N.M.		3.3	%	(0.1)	%

Interest expense		2,380	2,841	(16.2)	%	1.3	%	1.6	%
Interest income		(197)	(147)	34.0	%	(0.1)	%	(0.1)	%
Other expense (income)		625	(98)	N.M.		0.3	%	(0.1)	%
Income (loss) before income taxes		3,412	(2,816)	221.2	%	1.8	%	(1.6)	%

Income taxes*		105	(1,540)	(106.8)	%	3.1	%	54.7	%
Net income (loss)	$	3,307	(1,276)	359.2	%	1.7	%	(0.7)	%

Net income (loss) per share-basic		$0.26	($0.11)	336.4	%
Net income (loss) per share-diluted		$0.26	($0.11)	336.4	%
Net income per share, diluted, excluding restructuring
and related charges (see proforma statement on page 7)		$0.39	$0.18	116.7	%
Average shares outstanding-basic		12,617	11,710	7.7	%
Average shares outstanding-diluted		12,770	11,710	9.1	%

* Percent of sales column for income taxes is calculated as a % of income (loss) before income taxes.

Page 2 of 7

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED BALANCE SHEETS
JANUARY 27, 2008, JANUARY 28, 2007 AND APRIL 29, 2007
Unaudited
(Amounts in Thousands)

				Amounts		Increase
				January 27,	January 28,	(Decrease)			* April 29,
				2008	2007	Dollars	Percent		2007

Current assets
	Cash and cash equivalents		$	15,500	10,675	4,825	45.2	%	10,169
	Accounts receivable			23,370	23,755	(385)	(1.6)	%	29,290
	Inventories			37,923	42,717	(4,794)	(11.2)	%	40,630
	Deferred income taxes			5,376	7,120	(1,744)	(24.5)	%	5,376
	Assets held for sale			4,972	1,231	3,741	303.9	%	2,499
	Income taxes receivable			423	-	423	100.0	%	-
	Other current assets			995	2,710	(1,715)	(63.3)	%	1,824
		Total current assets		88,559	88,208	351	0.4	%	89,788

Property, plant and equipment, net				32,218	40,784	(8,566)	(21.0)	%	37,773
Goodwill				4,114	4,114	-	0.0	%	4,114
Deferred income taxes				25,993	23,232	2,761	11.9	%	25,683
Other assets				2,442	2,683	(241)	(9.0)	%	2,588

		Total assets	$	153,326	159,021	(5,695)	(3.6)	%	159,946



Current liabilities
	Current maturities of long-term debt		$	8,569	4,744	3,825	80.6	%	16,046
	Lines of credit			2,783	-	2,783	100.0	%	2,593
	Accounts payable			19,036	18,051	985	5.5	%	23,585
	Accrued expenses			10,422	7,704	2,718	35.3	%	8,670
	Accrued restructuring			1,875	3,490	(1,615)	(46.3)	%	3,282
	Income taxes payable - current (1)			-	4,136	(4,136)	(100.0)	%	4,579
		Total current liabilities		42,685	38,125	4,560	12.0	%	58,755

Income taxes payable - long-term (1)				4,497	-	4,497	100.0	%	-
Long-term debt , less current maturities				22,026	41,965	(19,939)	(47.5)	%	22,114

		Total liabilities		69,208	80,090	(10,882)	(13.6)	%	80,869

Shareholders' equity				84,118	78,931	5,187	6.6	%	79,077

		Total liabilities and
		shareholders' equity	$	153,326	159,021	(5,695)	(3.6)	%	159,946

Shares outstanding				12,635	12,555	80	0.6	%	12,569


* Derived from audited financial statements

(1) Amounts as of January 27, 2008 reflect the adoption of Financial Accounting Standards Board (FASB)
Interpretation No. 48, Accounting for Uncertainty in Income Taxes" during the first quarter of fiscal 2008.

Page 3 of 7

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED JANUARY 27, 2008 AND JANUARY 28, 2007
Unaudited
(Amounts in Thousands)


							NINE MONTHS ENDED

							Amounts
							January 27,	January 28,
							2008	2007

Cash flows from operating activities:
	Net income (loss)					$	3,307	(1,276)
	Adjustments to reconcile net income (loss) to net cash
		provided by operating activities:
			Depreciation				4,264	5,651
			Amortization of other assets				280	59
			Stock-based compensation				520	406
			Excess tax benefit related to stock options exercised				(21)	-
			Deferred income taxes				73	(3,056)
			Loss on impairment of equipment				256	-
			Restructuring expenses, net of gain on sale of related assets				123	(546)
			Changes in assets and liabilities:
				Accounts receivable			6,140	5,294
				Inventories			2,707	(1,270)
				Other current assets			829	787
				Other assets			(128)	(46)
				Accounts payable			(3,716)	(2,507)
				Accrued expenses			1,651	(141)
				Accrued restructuring			(1,483)	(564)
				Income taxes			16	1,648
					Net cash provided by operating activities		14,818	4,439

Cash flows from investing activities:
	Capital expenditures						(4,303)	(2,492)
	Acquisition of assets						-	(2,500)
	Proceeds from the sale of buildings and equipment						2,336	3,260
					Net cash used in investing activities		(1,967)	(1,732)

Cash flows from financing activities:
	Net proceeds from lines of credit						190	-
	Payments on vendor-financed capital expenditures						(571)	(927)
	Payments on long-term debt						(7,565)	(3,513)
	Proceeds from the issuance of long-term debt						-	2,500
	Proceeds from common stock issued						405	194
	Excess tax benefit related to stock options exercised						21	-
					Net cash used in financing activities		(7,520)	(1,746)

Increase in cash and cash equivalents							5,331	961

Cash and cash equivalents at beginning of period							10,169	9,714

Cash and cash equivalents at end of period						$	15,500	10,675


Free Cash Flow (1)						$	12,301	4,280



(1) Free Cash Flow reconciliation is as follows:							3rd Qtr	3rd Qtr
							FY 2008	FY 2007
A)	Net cash provided by operating activities					$	14,818	4,439
B)	Minus: Capital Expenditures						(4,303)	(2,492)
C)	Add: Proceeds from the sale of buildings and equipment						2,336	3,260
D)	Minus: Payments on vendor-financed capital expenditures						(571)	(927)
E)	Add: Excess tax benefit related to stock options exercised						21	-
						$	12,301	4,280

Page 4 of 7

CULP, INC. FINANCIAL INFORMATION RELEASE
SALES, GROSS PROFIT AND OPERATING INCOME (LOSS) BY SEGMENT
FOR THE THREE MONTHS ENDED JANUARY 27, 2008 AND JANUARY 28, 2007


(Amounts in thousands)


		THREE MONTHS ENDED (UNAUDITED)

		Amounts						Percent of Total Sales
		January 27,		January 28,		% Over		January 27,		January 28,
Net Sales by Segment		2008		2007		(Under)		2008		2007

Mattress Fabrics	$	30,880		24,396		26.6	%	51.1	%	43.8	%
Upholstery Fabrics		29,602		31,316		(5.5)	%	48.9	%	56.2	%

Net Sales	$	60,482		55,712		8.6	%	100.0	%	100.0	%


Gross Profit by Segment								Gross Profit Margin

Mattress Fabrics	$	4,200		4,215		(0.4)	%	13.6	%	17.3	%
Upholstery Fabrics		3,181		3,269		(2.7)	%	10.7	%	10.4	%
Subtotal		7,381		7,484		(1.4)	%	12.2	%	13.4	%

Loss on impairment of equipment		(256)	(1)	-		(100.0)	%	(0.4)	%	0.0	%
Restructuring related charges		(349)	(2)	(2,773)	(4)	(87.4)	%	(0.6)	%	(5.0)	%

Gross Profit	$	6,776		4,711		43.8	%	11.2	%	8.5	%


Selling, General and Administrative expenses by Segment								Percent of Sales

Mattress Fabrics	$	1,571		1,706		(7.9)	%	5.1	%	7.0	%
Upholstery Fabrics		2,787		3,765		(26.0)	%	9.4	%	12.0	%
Unallocated Corporate expenses		746		895		(16.6)	%	1.2	%	1.6	%
		5,104		6,366		(19.8)	%	8.4	%	11.4	%

Restructuring related charges		13	(2)	28	(4)	(53.6)	%	0.0	%	0.1	%

Selling, General and Administrative expenses	$	5,117		6,394		(20.0)	%	8.5	%	11.5	%


Operating Income (loss) by Segment								Operating Income (Loss) Margin

Mattress Fabrics	$	2,628		2,509		4.7	%	8.5	%	10.3	%
Upholstery Fabrics		395		(496)		179.6	%	1.3	%	(1.6)	%
Unallocated corporate expenses		(746)		(895)		(16.6)	%	(1.2)	%	(1.6)	%
Subtotal		2,277		1,118		103.7	%	3.8	%	2.0	%


Loss on impairment of equipment		(256)	(1)	-		(100.0)	%	(0.4)	%	0.0	%
Restructuring expense and restructuring related charges		(774)	(3)	(4,076)	(5)	(81.0)	%	(1.3)	%	(7.3)	%

Operating income (loss)	$	1,247		(2,958)		142.2	%	2.1	%	(5.3)	%


Depreciation by Segment

Mattress Fabrics	$	874		912		(4.2)	%
Upholstery Fabrics		497		710		(30.0)	%
Subtotal		1,371		1,622		(15.5)	%
Accelerated Depreciation		-		665		(100.0)	%
Total Depreciation		1,371		2,287		(40.1)	%


Notes:
(1) The $256 represents an impairment loss on older and existing equipment that was sold after
January 27, 2008 and is being replaced by newer and more efficient equipment. This impairment
loss pertains to the mattress fabrics segment.
(2) The $349 restructuring related charge represents $218 for other operating costs associated
with closed plant facilities and $131 for inventory markdowns. The $13 restructuring related
charge represents other operating costs associated with closed plant facilities.
(3) The $774 restructuring and related charge represents $238 for employee termination benefits,
$231 for other operating costs associated with closed plant facilities, $131 for inventory
markdowns, $93 for a write-down of a building, $68 for lease termination and other exit costs,
$57 for asset movement costs, and a credit of $44 for sales proceeds received on equipment
with no carrying value. Of this total charge, $349 was recorded in cost of sales, $13 was
recorded in selling, general, and administrative expenses, and $412 was recorded in
restructuring expense. The total $774 restructuring and related charge pertains to the
upholstery fabrics segment.
(4) The $2.8 million represents restructuring related charges of $2.2 million for inventory markdowns,
$665 for accelerated depreciation, and a credit of $52 for other operating costs associated with
closed plant facilities. The $28 restructuring related charge represents other operating costs
associated with closed plant facilities.
(5) The $4.1 million restructuring and related charge represents $2.2 million for inventory markdowns,
$1.2 million for employee termination benefits, $665 for accelerated depreciation, $272 for
write-downs of equipment, $181 for asset movement costs, $61 for lease termination and other
exit costs, a credit of $24 for other operating costs associated with closed plant facilities, and a credit
of $455 for sales proceeds received on equipment with no carrying value. Of this total charge, $2.8
million was recorded in cost of sales, $28 was recorded in selling, general, and administrative
expenses and $1.3 million was recorded in restructuring expense. The total $4.1 million
restructuring and related charge pertains to the upholstery fabrics segment.

Page 5 of 7

CULP, INC. FINANCIAL INFORMATION RELEASE
SALES, GROSS PROFIT AND OPERATING INCOME (LOSS) BY SEGMENT
FOR THE NINE MONTHS ENDED JANUARY 27, 2008 AND JANUARY 28, 2007


(Amounts in thousands)


		NINE MONTHS ENDED (UNAUDITED)

		Amounts						Percent of Total Sales
		January 27,		January 28,		% Over		January 27,		January 28,
Net Sales by Segment		2008		2007		(Under)		2008		2007

Mattress Fabrics	$	103,426		69,734		48.3	%	54.4	%	39.3	%
Upholstery Fabrics		86,622		107,603		(19.5)	%	45.6	%	60.7	%

Net Sales	$	190,048		177,337		7.2	%	100.0	%	100.0	%


Gross Profit by Segment								Gross Profit Margin

Mattress Fabrics	$	16,043		11,880		35.0	%	15.5	%	17.0	%
Upholstery Fabrics		9,922		12,691		(21.8)	%	11.5	%	11.8	%
Subtotal		25,965		24,571		5.7	%	13.7	%	13.9	%

Loss on impairment of equipment		(256)	(1)	-		(100.0)	%	(0.1)	%	0.0	%
Restructuring related charges		(1,455)	(2)	(3,809)	(4)	(61.8)	%	(0.8)	%	(2.1)	%

Gross Profit	$	24,254		20,762		16.8	%	12.8	%	11.7	%


Selling, General and Administrative expenses by Segment								Percent of Sales

Mattress Fabrics	$	5,779		5,043		14.6	%	5.6	%	7.2	%
Upholstery Fabrics		8,877		11,219		(20.9)	%	10.2	%	10.4	%
Unallocated Corporate expenses		2,554		2,920		(12.5)	%	1.3	%	1.6	%
Subtotal		17,210		19,182		(10.3)	%	9.1	%	10.8	%

Restructuring related charges		65	(2)	58	(4)	12.1	%	0.0	%	0.0	%

Selling, General and Administrative expenses	$	17,275		19,240		(10.2)	%	9.1	%	10.8	%


Operating Income (loss) by Segment								Operating Income (Loss) Margin

Mattress Fabrics	$	10,264		6,837		50.1	%	9.9	%	9.8	%
Upholstery Fabrics		1,045		1,472		(29.0)	%	1.2	%	1.4	%
Unallocated corporate expenses		(2,554)		(2,920)		(12.5)	%	(1.3)	%	(1.6)	%
Subtotal		8,755		5,389		62.5	%	4.6	%	3.0	%

Loss on impairment of equipment		(256)	(1)	-		(100.0)	%	(0.1)	%	0.0	%
Restructuring expense and restructuring related charges		(2,279)	(3)	(5,609)	(5)	(59.4)	%	(1.2)	%	(3.2)	%

Operating income (loss)	$	6,220		(220)		N.M.		3.3	%	(0.1)	%


Depreciation by Segment

Mattress Fabrics	$	2,668		2,771		(3.7)	%
Upholstery Fabrics		1,596		2,215		(27.9)	%
Subtotal		4,264		4,986		(14.5)	%
Accelerated Depreciation		-		665		(100.0)	%
Total Depreciation		4,264		5,651		(24.5)	%

Notes:

(1) The $256 represents an impairment loss on older and existing equipment that was sold after January 27, 2008 and is being

replaced by newer and more efficient equipment. This impairment loss pertains to the mattress fabrics segment.

(2) The $1.4 million restructuring related charge represents $920 for other operating costs associated with closed plant

facilities and $535 for inventory markdowns. The $65 restructuring related charge represents other operating costs

associated with plant facilities.

(3) The $2.3 million represents $985 for other operating costs associated with closed plant facilities, $612 for lease

termination and other exit costs, $535 for inventory markdowns, $482 for write-downs of buildings and equipment,

$184 for asset movement costs, a credit of $160 for employee termination benefits, and a credit of $359 for sales

proceeds received on equipment with no carrying value. Of this total charge, $1.4 million was recorded in cost of sales,

$65 was recorded in selling, general, and administrative expenses, and $759 was recorded in restructuring expense.

The total $2.3 million restructuring and related charge pertains to the upholstery fabrics segment.

(4) The $3.8 million represents restructuring related charges of $2.3 million for inventory markdowns, $744 for other operating costs

associated with the closed plant facilities, and $665 for accelerated depreciation. The $58 restructuring related charge represents

other operating costs associated with closed plant facilities.

(5) The $5.6 million represents restructuring and related charges of $2.3 million for inventory markdowns, $990 for employee termination

benefits, $914 for asset movement costs, $802 for other operating costs associated with closed plant facilities, $665 for

accelerated deprecation, $395 for lease termination and other exit costs, $334 for write-downs of buildings and equipment,

and a credit of $890 for sales proceeds received on equipment with no carrying value. Of this total charge, $3.8 million was recorded

in cost of sales, $58 was recorded in selling, general, and administrative expenses, and $1.7 million was recorded in restructuring

expense. The total $5.6 million restructuring and related charge pertains to the upholstery fabrics segment.

Page 6 of 7

CULP, INC. FINANCIAL INFORMATION RELEASE
PROFORMA CONSOLIDATED STATEMENTS OF NET INCOME (LOSS)
FOR THE THREE MONTHS ENDED JANUARY 27, 2008 AND JANUARY 28, 2007
(Unaudited)
(Amounts in Thousands, Except for Per Share Data)

			THREE MONTHS ENDED

			As Reported					January 27, 2008		As Reported					January 28, 2007		Proforma
			January 27,	% of		% of		Proforma Net	% of	January 28,	% of		% of		Proforma Net	% of	% Over
			2008	Sales	Adjustments	Sales		of Adjustments	Sales	2007	Sales	Adjustments	Sales		of Adjustments	Sales	(Under)

Net sales		$	60,482	100.0%	-			60,482	100.0%	55,712	100.0%	-			55,712	100.0%	8.6%
Cost of sales			53,706	88.8%	(349)	-0.6%	(1)	53,357	88.2%	51,001	91.5%	(2,773)	-5.0%	(3)	48,228	86.6%	10.6%
	Gross profit		6,776	11.2%	(349)	-0.6%		7,125	11.8%	4,711	8.5%	(2,773)	-5.0%		7,484	13.4%	-4.8%

Selling, general and
administrative expenses			5,117	8.5%	(13)	0.0%	(1)	5,104	8.4%	6,394	11.5%	(28)	-0.1%	(3)	6,366	11.4%	-19.8%
Restructuring expense			412	0.7%	(412)	-0.7%	(2)	-	0.0%	1,275	2.3%	(1,275)	-2.3%	(4)	-	0.0%	0.0%
	Income (loss) from operations		1,247	2.1%	(774)	-1.3%		2,021	3.3%	(2,958)	-5.3%	(4,076)	-7.3%		1,118	2.0%	80.8%

Interest expense			753	1.2%	-	0.0%		753	1.2%	952	1.7%	-	0.0%		952	1.7%	-20.9%
Interest income			(77)	-0.1%	-	0.0%		(77)	-0.1%	(50)	-0.1%	-	0.0%		(50)	-0.1%	54.0%
Other income			(72)	-0.1%	-	0.0%		(72)	-0.1%	(157)	-0.3%	-	0.0%		(157)	-0.3%	-54.1%
	Income (loss) before income taxes		643	1.1%	(774)	-1.3%	(5)	1,417	2.3%	(3,703)	-6.6%	(4,076)	-7.3%	(6)	373	0.7%	279.9%

Income taxes (7)			(260)	-40.4%	(223)	28.8%		(37)	-2.6%	(1,482)	40.0%	(1,954)	47.9%		472	126.5%	107.8%
Net income (loss)		$	903	1.5%	(551)	-0.9%		1,454	2.4%	(2,221)	-4.0%	(2,122)	-3.8%		(99)	-0.2%	1568.7%

Net income (loss) per share-basic			$0.07		($0.04)			$0.11		($0.19)		($0.18)			($0.01)
Net income (loss) per share-diluted			$0.07		($0.04)			$0.11		($0.19)		($0.18)			($0.01)
Average shares outstanding-basic			12,635		12,635			12,635		11,773		11,773			11,773
Average shares outstanding-diluted			12,738		12,635			12,738		11,773		11,773			11,773

Notes:
(1) The $349 restructuring related charge represents $218 for other operating costs associated with closed plant facilities
and $131 for inventory markdowns. The $13 restructuring related charge represents other operating costs
associated with closed plant facilities.
(2) The $412 restructuring charge represents $238 for employee termination benefits, $93 for fixed asset write-downs,
$68 for lease termination and other exit costs, $57 for asset movement costs, and a credit of $44 for sales proceeds
received on equipment with no carrying value.
(3) The $2.8 million represents restructuring related charges of $2.2 million for inventory markdowns, $665 for accelerated
depreciation, and a credit of $52 for other operating costs associated with closed plant facilities. The $28 restructuring
related charge represents other operating costs associated with closed plant facilities.
(4) The $1.3 million restructuring charge represents $1.2 million for employee termination benefits, $272 for write-downs of
equipment, $181 for asset movement costs, $61 for lease termination and other exit costs, and a credit of $455 for sales
proceeds received on equipment with no carrying value.
(5) Of this total charge, $550 and $224 represent cash and non-cash charges, respectively.
(6) Of this total charge, $3.1 million and $1.0 million represent cash charges and non-cash charges, respectively.
(7)The percent of net sales column for income taxes is calculated as a % of income (loss) before income taxes.

Page 7 of 7



CULP, INC. FINANCIAL INFORMATION RELEASE
PROFORMA CONSOLIDATED STATEMENTS OF NET INCOME (LOSS)
FOR THE NINE MONTHS ENDED JANUARY 27, 2008 AND JANUARY 28, 2007
(Unaudited)
(Amounts in Thousands, Except for Per Share Data)

			NINE MONTHS ENDED

			As Reported					January 27, 2008		As Reported					January 28, 2007		Proforma
			January 27,	% of		% of		Proforma Net	% of	January 28,	% of		% of		Proforma Net	% of	% Over
			2008	Sales	Adjustments	Sales		of Adjustments	Sales	2007	Sales	Adjustments	Sales		of Adjustments	Sales	(Under)

Net sales		$	190,048	100.0%	-			190,048	100.0%	177,337	100.0%	-			177,337	100.0%	7.2%
Cost of sales			165,794	87.2%	(1,455)	-0.8%	(1)	164,339	86.5%	156,575	88.3%	(3,809)	-2.1%	(3)	152,766	86.1%	7.6%
	Gross profit		24,254	12.8%	(1,455)	-0.8%		25,709	13.5%	20,762	11.7%	(3,809)	-2.1%		24,571	13.9%	4.6%

Selling, general and
administrative expenses			17,275	9.1%	(65)	0.0%	(1)	17,210	9.1%	19,240	10.8%	(58)	0.0%	(3)	19,182	10.8%	-10.3%
Restructuring expense			759	0.4%	(759)	-0.4%	(2)	-	0.0%	1,742	1.0%	(1,742)	-1.0%	(4)	-	0.0%	0.0%
	Income (loss) from operations		6,220	3.3%	(2,279)	-1.2%		8,499	4.5%	(220)	-0.1%	(5,609)	-3.2%		5,389	3.0%	57.7%

Interest expense			2,380	1.3%	-	0.0%		2,380	1.3%	2,841	1.6%	-	0.0%		2,841	1.6%	-16.2%
Interest income			(197)	-0.1%	-	0.0%		(197)	-0.1%	(147)	-0.1%	-	0.0%		(147)	-0.1%	34.0%
Other expense (income)			625	0.3%	-	0.0%		625	0.3%	(98)	-0.1%	-	0.0%		(98)	-0.1%	-737.8%
	Income (loss) before income taxes		3,412	1.8%	(2,279)	-1.2%	(5)	5,691	3.0%	(2,816)	-1.6%	(5,609)	-3.2%	(6)	2,793	1.6%	103.8%

Income taxes (7)			105	3.1%	(603)	26.5%		708	12.4%	(1,540)	54.7%	(2,269)	40.5%		729	26.1%	-2.9%
Net income (loss)		$	3,307	1.7%	(1,676)	-0.9%		4,983	2.6%	(1,276)	-0.7%	(3,340)	-1.9%		2,064	1.2%	141.4%

Net income (loss) per share-basic			$0.26		($0.13)			$0.39		($0.11)		($0.29)			$0.18
Net income (loss) per share-diluted			$0.26		($0.13)			$0.39		($0.11)		($0.29)			$0.18
Average shares outstanding-basic			12,617		12,617			12,617		11,710		11,710			11,710
Average shares outstanding-diluted			12,770		12,617			12,770		11,710		11,710			11,713

Notes:
(1) The $1.4 million restructuring related charge represents $920 for other operating costs associated with closed plant facilities
and $535 for inventory markdowns. The $65 restructuring related charge represents other operating costs associated with
closed plant facilities.
(2) The $759 restructuring charge represents $612 for lease termination and other exit costs, $482 for write-downs of buildings
and equipment, $184 for asset movement costs, a credit of $160 for employee termination benefits, and a credit of $359
for sales proceeds received on equipment with no carrying value.
(3) The $3.8 million represents restructuring related charges of $2.3 million for inventory markdowns, $744 for other operating
costs associated with closed plant facilities, and $665 for accelerated depreciation. The $58 restructuring related charge
represents other operating costs associated with closed plant facilities.
(4) The $1.7 million restructuring charge represents $990 for employee termination benefits, $913 for asset movement costs,
$395 for lease termination and other exit costs, $334 for write-downs of buildings and equipment, and a credit of $890 for
sales proceeds received on equipment with no carrying value.
(5) Of this total charge, $1.3 million and $1.0 million represent cash and non-cash charges, respectively.
(6) Of this total charge, $2.3 million and $3.3 million represent cash and non-cash charges, respectively.
(7) The percent of net sales column for income taxes is calculated as a % of income (loss) before income taxes.

Culp (CULP) 8-KResults of Operations and Financial Condition