Exhibit 99(b)
Page 1 of 7
| CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
| FOR THE THREE MONTHS AND NINE MONTHS ENDED FEBRUARY 1, 2009 AND JANUARY 27, 2008 | |||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||
| (Amounts in Thousands, Except for Per Share Data) | |||||||||||||||||||||
| THREE MONTHS ENDED | |||||||||||||||||||||
| Amounts | Percent of Sales | ||||||||||||||||||||
| February 1, | January 27, | % Over | February 1, | January 27, | |||||||||||||||||
| 2009 | 2008 | (Under) | 2009 | 2008 | |||||||||||||||||
| Net sales | $ | 44,592 | 60,482 | (26.3 | ) | % | 100.0 | % | 100.0 | % | |||||||||||
| Cost of sales | 38,843 | 53,706 | (27.7 | ) | % | 87.1 | % | 88.8 | % | ||||||||||||
| Gross profit | 5,749 | 6,776 | (15.2 | ) | % | 12.9 | % | 11.2 | % | ||||||||||||
| Selling, general and | |||||||||||||||||||||
| administrative expenses | 4,676 | 5,117 | (8.6 | ) | % | 10.5 | % | 8.5 | % | ||||||||||||
| Restructuring expense | 402 | 412 | (2.4 | ) | % | 0.9 | % | 0.7 | % | ||||||||||||
| Income from operations | 671 | 1,247 | (46.2 | ) | % | 1.5 | % | 2.1 | % | ||||||||||||
| Interest expense | 646 | 753 | (14.2 | ) | % | 1.4 | % | 1.2 | % | ||||||||||||
| Interest income | (20 | ) | (77 | ) | (74.0 | ) | % | (0.0 | ) | % | (0.1 | ) | % | ||||||||
| Other expense (income) | 28 | (72 | ) | 138.9 | % | 0.1 | % | (0.1 | ) | % | |||||||||||
| Income before income taxes | 17 | 643 | (97.4 | ) | % | 0.0 | % | 1.1 | % | ||||||||||||
| Income taxes* | 467 | (260 | ) | N.M. | N.M. | (40.4 | ) | % | |||||||||||||
| Net (loss) income | $ | (450 | ) | 903 | N.M. | (1.0 | ) | % | 1.5 | % | |||||||||||
| Net (loss) income per share-basic | ($0.04 | ) | $ | 0.07 | N.M. | ||||||||||||||||
| Net (loss) income per share-diluted | ($0.04 | ) | $ | 0.07 | N.M. | ||||||||||||||||
| Average shares outstanding-basic | 12,653 | 12,635 | 0.1 | % | |||||||||||||||||
| Average shares outstanding-diluted | 12,653 | 12,738 | (0.7 | ) | % | ||||||||||||||||
| NINE MONTHS ENDED | |||||||||||||||||||||
| Amounts | Percent of Sales | ||||||||||||||||||||
| February 1, | January 27, | % Over | February 1, | January 27, | |||||||||||||||||
| 2009 | 2008 | (Under) | 2009 | 2008 | |||||||||||||||||
| Net sales | $ | 156,176 | 190,048 | (17.8 | ) | % | 100.0 | % | 100.0 | % | |||||||||||
| Cost of sales | 139,879 | 165,794 | (15.6 | ) | % | 89.6 | % | 87.2 | % | ||||||||||||
| Gross profit | 16,297 | 24,254 | (32.8 | ) | % | 10.4 | % | 12.8 | % | ||||||||||||
| Selling, general and | |||||||||||||||||||||
| administrative expenses | 14,498 | 17,275 | (16.1 | ) | % | 9.3 | % | 9.1 | % | ||||||||||||
| Restructuring expense | 9,438 | 759 | N.M. | 6.0 | % | 0.4 | % | ||||||||||||||
| (Loss) income from operations | (7,639 | ) | 6,220 | N.M. | (4.9 | ) | % | 3.3 | % | ||||||||||||
| Interest expense | 1,739 | 2,380 | (26.9 | ) | % | 1.1 | % | 1.3 | % | ||||||||||||
| Interest income | (75 | ) | (197 | ) | (61.9 | ) | % | (0.0 | ) | % | (0.1 | ) | % | ||||||||
| Other (income) expense | (207 | ) | 625 | N.M. | (0.1 | ) | % | 0.3 | % | ||||||||||||
| (Loss) income before income taxes | (9,096 | ) | 3,412 | N.M. | (5.8 | ) | % | 1.8 | % | ||||||||||||
| Income taxes* | 31,442 | 105 | N.M. | N.M. | 3.1 | % | |||||||||||||||
| Net (loss) income | $ | (40,538 | ) | 3,307 | N.M. | (26.0 | ) | % | 1.7 | % | |||||||||||
| Net (loss) income per share-basic | ($3.20 | ) | $ | 0.26 | N.M. | ||||||||||||||||
| Net (loss) income per share-diluted | ($3.20 | ) | $ | 0.26 | N.M. | ||||||||||||||||
| Average shares outstanding-basic | 12,650 | 12,617 | 0.3 | % | |||||||||||||||||
| Average shares outstanding-diluted | 12,650 | 12,770 | (0.9 | ) | % | ||||||||||||||||
* Percent of sales column for income taxes is calculated as a % of (loss) income before income taxes.
Page 2 of 7
| CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||||||
| FEBRUARY 1, 2009, JANUARY 27, 2008 AND APRIL 27, 2008 | ||||||||||||||||
| Unaudited | ||||||||||||||||
| (Amounts in Thousands) | ||||||||||||||||
| Amounts | Increase | |||||||||||||||
| February 1, | January 27, | (Decrease) | * April 27, | |||||||||||||
| 2009 | 2008 | Dollars | Percent | 2008 | ||||||||||||
| Current assets | ||||||||||||||||
| Cash and cash equivalents | $ | 15,809 | 15,500 | 309 | 2.0 | % | 4,914 | |||||||||
| Accounts receivable | 14,219 | 23,370 | (9,151 | ) | (39.2 | ) | % | 27,073 | ||||||||
| Inventories | 25,376 | 37,923 | (12,547 | ) | (33.1 | ) | % | 35,394 | ||||||||
| Deferred income taxes | - | 5,376 | (5,376 | ) | (100.0 | ) | % | 4,380 | ||||||||
| Assets held for sale | 1,681 | 4,972 | (3,291 | ) | (66.2 | ) | % | 5,610 | ||||||||
| Income taxes receivable | - | 423 | (423 | ) | (100.0 | ) | % | 438 | ||||||||
| Other current assets | 1,493 | 995 | 498 | 50.1 | % | 1,328 | ||||||||||
| Total current assets | 58,578 | 88,559 | (29,981 | ) | (33.9 | ) | % | 79,137 | ||||||||
| Property, plant & equipment, net | 24,763 | 32,218 | (7,455 | ) | (23.1 | ) | % | 32,939 | ||||||||
| Goodwill | 11,593 | 4,114 | 7,479 | 181.8 | % | 4,114 | ||||||||||
| Deferred income taxes | - | 25,993 | (25,993 | ) | (100.0 | ) | % | 29,430 | ||||||||
| Other assets | 2,922 | 2,442 | 480 | 19.7 | % | 2,409 | ||||||||||
| Total assets | $ | 97,856 | 153,326 | (55,470 | ) | (36.2 | ) | % | 148,029 | |||||||
| Current liabilities | ||||||||||||||||
| Current maturities of long-term debt | $ | 7,180 | 8,569 | (1,389 | ) | (16.2 | ) | % | 7,375 | |||||||
| Current portion of obligation under a capital lease | 692 | - | 692 | 100.0 | % | - | ||||||||||
| Lines of credit | - | 2,783 | (2,783 | ) | (100.0 | ) | % | - | ||||||||
| Accounts payable - trade | 10,947 | 18,312 | (7,365 | ) | (40.2 | ) | % | 21,103 | ||||||||
| Accounts payable - capital expenditures | 725 | 724 | 1 | 0.1 | % | 1,547 | ||||||||||
| Accrued expenses | 5,592 | 10,422 | (4,830 | ) | (46.3 | ) | % | 8,300 | ||||||||
| Accrued restructuring | 1,215 | 1,875 | (660 | ) | (35.2 | ) | % | 1,432 | ||||||||
| Income taxes payable - current | 1,469 | - | 1,469 | 100.0 | % | 150 | ||||||||||
| Total current liabilities | 27,820 | 42,685 | (14,865 | ) | (34.8 | ) | % | 39,907 | ||||||||
| Accounts payable - capital expenditures | 912 | - | 912 | 100.0 | % | 1,449 | ||||||||||
| Income taxes payable - long-term | 747 | 4,497 | (3,750 | ) | (83.4 | ) | % | 4,802 | ||||||||
| Deferred income taxes | 1,213 | - | 1,213 | 100.0 | % | 1,464 | ||||||||||
| Obligation under capital lease | 107 | - | 107 | 100.0 | % | - | ||||||||||
Long-term debt, less current maturities | 20,933 | 22,026 | (1,093 | ) | (5.0 | ) | % | 14,048 | ||||||||
| Total liabilities | 51,732 | 69,208 | (17,476 | ) | (25.3 | ) | % | 61,670 | ||||||||
| Shareholders' equity | 46,124 | 84,118 | (37,994 | ) | (45.2 | ) | % | 86,359 | ||||||||
| Total liabilities and | ||||||||||||||||
| shareholders' equity | $ | 97,856 | 153,326 | (55,470 | ) | (36.2 | ) | % | 148,029 | |||||||
| Shares outstanding | 12,768 | 12,635 | 133 | 1.1 | % | 12,648 | ||||||||||
* Derived from audited financial statements.
Page 3 of 7
| CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
| FOR THE NINE MONTHS ENDED FEBRUARY 1, 2009 AND JANUARY 27, 2008 | ||||||||||||
| Unaudited | ||||||||||||
| (Amounts in Thousands) | ||||||||||||
| NINE MONTHS ENDED | ||||||||||||
| Amounts | ||||||||||||
| February 1, | January 27, | |||||||||||
| 2009 | 2008 | |||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net (loss) income | $ | (40,538 | ) | 3,307 | ||||||||
Adjustments to reconcile net (loss) income to net cash | ||||||||||||
provided by operating activities: | ||||||||||||
| Depreciation | 5,756 | 4,264 | ||||||||||
| Amortization of other assets | 350 | 280 | ||||||||||
| Stock-based compensation | 306 | 520 | ||||||||||
| Excess tax benefit related to stock options exercised | - | (21 | ) | |||||||||
| Deferred income taxes | 33,573 | 73 | ||||||||||
| (Gain) loss on sale of equipment | (51 | ) | 256 | |||||||||
| Restructuring expenses, net of gain on sale of related assets | 7,960 | 123 | ||||||||||
| Changes in assets and liabilities, net of effects of acquisition of business: | ||||||||||||
| Accounts receivable | 12,854 | 6,140 | ||||||||||
| Inventories | 11,457 | 2,707 | ||||||||||
| Other current assets | (183 | ) | 829 | |||||||||
| Other assets | 26 | (128 | ) | |||||||||
| Accounts payable | (11,448 | ) | (3,716 | ) | ||||||||
| Accrued expenses | (2,746 | ) | 1,651 | |||||||||
| Accrued restructuring | (217 | ) | (1,483 | ) | ||||||||
| Income taxes | (2,298 | ) | 16 | |||||||||
| Net cash provided by operating activities | 14,801 | 14,818 | ||||||||||
| Cash flows from investing activities: | ||||||||||||
| Capital expenditures | (1,719 | ) | (4,303 | ) | ||||||||
| Net cash paid for acquisition of business | (11,365 | ) | - | |||||||||
| Proceeds from the sale of buildings and equipment | 4,148 | 2,336 | ||||||||||
| Net cash used in investing activities | (8,936 | ) | (1,967 | ) | ||||||||
| Cash flows from financing activities: | ||||||||||||
| Proceeds from lines of credit | - | 1,339 | ||||||||||
| Payments on lines of credit | - | (1,149 | ) | |||||||||
| Proceeds from the issuance of long-term debt | 11,000 | - | ||||||||||
| Payments on vendor-financed capital expenditures | (962 | ) | (571 | ) | ||||||||
| Payments on capital lease obligation | (586 | ) | - | |||||||||
| Payments on long-term debt | (4,310 | ) | (7,565 | ) | ||||||||
| Debt issuance costs | (133 | ) | - | |||||||||
| Proceeds from common stock issued | 21 | 405 | ||||||||||
| Excess tax benefit related to stock options exercised | - | 21 | ||||||||||
| Net cash provided by (used in) financing activities | 5,030 | (7,520 | ) | |||||||||
| Increase in cash and cash equivalents | 10,895 | 5,331 | ||||||||||
| Cash and cash equivalents at beginning of period | 4,914 | 10,169 | ||||||||||
| Cash and cash equivalents at end of period | $ | 15,809 | 15,500 | |||||||||
| Free Cash Flow (1) | $ | 15,682 | 12,301 | |||||||||
(1) | Free Cash Flow reconciliation is as follows: | 3rd Qtr | 3rd Qtr | |||||||||
| FY 2009 | FY 2008 | |||||||||||
| A) | Net cash provided by operating activities | $ | 14,801 | 14,818 | ||||||||
| B) | Minus: Capital Expenditures | (1,719 | ) | (4,303 | ) | |||||||
C) | Add: Proceeds from the sale of buildings and equipment | 4,148 | 2,336 | |||||||||
D) | Minus: Payments on vendor-financed capital expenditures | (962 | ) | (571 | ) | |||||||
E) | Minus: Payments on capital lease obligation | (586 | ) | - | ||||||||
F) | Add: Excess tax benefit related to stock options exercised | - | 21 | |||||||||
| $ | 15,682 | 12,301 | ||||||||||
Page 4 of 7
| CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
| STATEMENTS OF OPERATIONS BY SEGMENT | ||||||||||||||||||||
| FOR THE THREE MONTHS ENDED FEBRUARY 1, 2009 AND JANUARY 27, 2008 | ||||||||||||||||||||
| (Amounts in thousands) | ||||||||||||||||||||
| THREE MONTHS ENDED (UNAUDITED) | ||||||||||||||||||||
| Amounts | Percent of Total Sales | |||||||||||||||||||
| February 1, | January 27, | % Over | February 1, | January 27, | ||||||||||||||||
Net Sales by Segment | 2009 | 2008 | (Under) | 2009 | 2008 | |||||||||||||||
| Mattress Fabrics | $ | 25,198 | 30,880 | (18.4 | ) | % | 56.5 | % | 51.1 | % | ||||||||||
| Upholstery Fabrics | 19,394 | 29,602 | (34.5 | ) | % | 43.5 | % | 48.9 | % | |||||||||||
| Net Sales | $ | 44,592 | 60,482 | (26.3 | ) | % | 100.0 | % | 100.0 | % | ||||||||||
Gross Profit by Segment | Gross Profit Margin | |||||||||||||||||||
| Mattress Fabrics | $ | 4,176 | 4,200 | (0.6 | ) | % | 16.6 | % | 13.6 | % | ||||||||||
| Upholstery Fabrics | 1,931 | 3,181 | (39.3 | ) | % | 10.0 | % | 10.7 | % | |||||||||||
| Subtotal | 6,107 | 7,381 | (17.3 | ) | % | 13.7 | % | 12.2 | % | |||||||||||
| Loss on impairment of equipment | - | (256 | ) |
|
| (100.0 | ) | % | 0.0 | % | (0.4 | ) | % | |||||||
| Restructuring related charges | (358 | ) |
|
| (349 | ) |
|
| 2.6 | % | (0.8 | ) | % | (0.6 | ) | % | ||||
| Gross Profit | $ | 5,749 | 6,776 | (15.2 | ) | % | 12.9 | % | 11.2 | % | ||||||||||
| Selling, General and Administrative expenses by Segment | Percent of Sales | |||||||||||||||||||
| Mattress Fabrics | $ | 1,941 | 1,571 | 23.6 | % | 7.7 | % | 5.1 | % | |||||||||||
| Upholstery Fabrics | 1,880 | 2,787 | (32.5 | ) | % | 9.7 | % | 9.4 | % | |||||||||||
| Unallocated Corporate | 838 | 746 | 12.3 | % | 1.9 | % | 1.2 | % | ||||||||||||
| 4,659 | 5,104 | (8.7 | ) | % | 10.4 | % | 8.4 | % | ||||||||||||
| Restructuring related charges | 17 |
|
| 13 |
|
| 30.8 | % | 0.0 | % | 0.0 | % | ||||||||
| Selling, General and Administrative expenses | $ | 4,676 | 5,117 | (8.6 | ) | % | 10.5 | % | 8.5 | % | ||||||||||
| Operating Income (loss) by Segment | Operating Income (Loss) Margin | |||||||||||||||||||
| Mattress Fabrics | $ | 2,235 | 2,628 | (15.0 | ) | % | 8.9 | % | 8.5 | % | ||||||||||
| Upholstery Fabrics | 51 | 395 | (87.1 | ) | % | 0.3 | % | 1.3 | % | |||||||||||
| Unallocated Corporate | (838 | ) | (746 | ) | 12.3 | % | (1.9 | ) | % | (1.2 | ) | % | ||||||||
| Subtotal | 1,448 | 2,277 | (36.4 | ) | % | 3.2 | % | 3.8 | % | |||||||||||
| Loss on impairment of equipment | - | (256 | ) |
|
| (100.0 | ) | % | 0.0 | % | (0.4 | ) | % | |||||||
| Restructuring expense and restructuring related charges | (777 | ) |
|
| (774 | ) |
|
| 0.4 | % | (1.7 | ) | % | (1.3 | ) | % | ||||
| Operating income | $ | 671 | 1,247 | 46.2 | % | 1.5 | % | 2.1 | % | |||||||||||
| Depreciation by Segment | ||||||||||||||||||||
| Mattress Fabrics | $ | 941 | 874 | 7.7 | % | |||||||||||||||
| Upholstery Fabrics | 92 | 497 | (81.5 | ) | % | |||||||||||||||
| Total Depreciation | 1,033 | 1,371 | (24.7 | ) | % | |||||||||||||||
| Notes: | |
See Page 6 for detailed explanations of restructuring and related charges and loss on impairment of equipment. | |
Page 5 of 7
| CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
| STATEMENTS OF OPERATIONS BY SEGMENT | ||||||||||||||||||||
| FOR THE NINE MONTHS ENDED FEBRUARY 1, 2009 AND JANUARY 27, 2008 | ||||||||||||||||||||
| (Amounts in thousands) | ||||||||||||||||||||
| NINE MONTHS ENDED (UNAUDITED) | ||||||||||||||||||||
| Amounts | Percent of Total Sales | |||||||||||||||||||
| February 1, | January 27, | % Over | February 1, | January 27, | ||||||||||||||||
| Net Sales by Segment | 2009 | 2008 | (Under) | 2009 | 2008 | |||||||||||||||
| Mattress Fabrics | $ | 88,808 | 103,426 | (14.1 | ) | % | 56.9 | % | 54.4 | % | ||||||||||
| Upholstery Fabrics | 67,368 | 86,622 | (22.2 | ) | % | 43.1 | % | 45.6 | % | |||||||||||
| Net Sales | $ | 156,176 | 190,048 | (17.8 | ) | % | 100.0 | % | 100.0 | % | ||||||||||
| Gross Profit by Segment | Gross Profit Margin | |||||||||||||||||||
| Mattress Fabrics | $ | 15,603 | 16,043 | (2.7 | ) | % | 17.6 | % | 15.5 | % | ||||||||||
| Upholstery Fabrics | 4,277 | 9,922 | (56.9 | ) | % | 6.3 | % | 11.5 | % | |||||||||||
| Subtotal | 19,880 | 25,965 | (23.4 | ) | % | 12.7 | % | 13.7 | % | |||||||||||
| Loss on impairment of equipment | - | (256 | ) |
|
| (100.0 | ) | % | 0.0 | % | (0.1 | ) | % | |||||||
| Restructuring related charges | (3,583 | ) |
|
| (1,455 | ) |
|
| 146.3 | % | (2.3 | ) | % | (0.8 | ) | % | ||||
| Gross Profit | $ | 16,297 | 24,254 | (32.8 | ) | % | 10.4 | % | 12.8 | % | ||||||||||
| Selling, General and Administrative expenses by Segment | Percent of Sales | |||||||||||||||||||
| Mattress Fabrics | $ | 5,902 | 5,779 | 2.1 | % | 6.6 | % | 5.6 | % | |||||||||||
| Upholstery Fabrics | 6,444 | 8,877 | (27.4 | ) | % | 9.6 | % | 10.2 | % | |||||||||||
| Unallocated Corporate | 2,131 | 2,554 | (16.6 | ) | % | 1.4 | % | 1.3 | % | |||||||||||
| Subtotal | 14,477 | 17,210 | (15.9 | ) | % | 9.3 | % | 9.1 | % | |||||||||||
| Restructuring related charges | 21 |
|
| 65 |
|
| (67.7 | ) | % | 0.0 | % | 0.0 | % | |||||||
| Selling, General and Administrative expenses | $ | 14,498 | 17,275 | (16.1 | ) | % | 9.3 | % | 9.1 | % | ||||||||||
| Operating Income (loss) by Segment | Operating Income (Loss) Margin | |||||||||||||||||||
| Mattress Fabrics | $ | 9,702 | 10,264 | (5.5 | ) | % | 10.9 | % | 9.9 | % | ||||||||||
| Upholstery Fabrics | (2,168 | ) | 1,045 | (307.5 | ) | % | (3.2 | ) | % | 1.2 | % | |||||||||
| Unallocated Corporate | (2,131 | ) | (2,554 | ) | (16.6 | ) | % | (1.4 | ) | % | (1.3 | ) | % | |||||||
| Subtotal | 5,403 | 8,755 | (38.3 | ) | % | 3.5 | % | 4.6 | % | |||||||||||
| Loss on impairment of equipment | - | (256 | ) |
|
| (100.0 | ) | % | 0.0 | % | (0.1 | ) | % | |||||||
| Restructuring expense and restructuring related charges | (13,042 | ) |
|
| (2,279 | ) |
|
| 472.3 | % | (8.4 | ) | % | (1.2 | ) | % | ||||
| Operating (loss) income | $ | (7,639 | ) | 6,220 | N.M. | (4.9 | ) | % | 3.3 | % | ||||||||||
| Depreciation by Segment | ||||||||||||||||||||
| Mattress Fabrics | $ | 2,617 | 2,668 | (1.9 | ) | % | ||||||||||||||
| Upholstery Fabrics | 1,049 | 1,596 | (34.3 | ) | % | |||||||||||||||
| Subtotal | 3,666 | 4,264 | (14.0 | ) | % | |||||||||||||||
| Accelerated Depreciation | 2,090 | - | 100.0 | % | ||||||||||||||||
| Total Depreciation | 5,756 | 4,264 | 35.0 | % | ||||||||||||||||
| Notes: | |
See page 7 for detailed explanations of restructuring and related charges and loss on impairment of equipment. |
Page 6 of 7
| CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||||||||||||||||||
| PROFORMA CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||||||||||||
| FOR THE THREE MONTHS ENDED FEBRUARY 1, 2009 AND JANUARY 27, 2008 | ||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||
| (Amounts in Thousands, Except for Per Share Data) | ||||||||||||||||||||||||||||||||||||
| THREE MONTHS ENDED | ||||||||||||||||||||||||||||||||||||
As Reported February 1, 2009 | % of Sales | Adjustments | % of Sales | February 1, 2009 Proforma Net of Adjustments | % of Sales | As Reported January 27, 2008 | % of Sales | Adjustments | % of Sales | January 27, 2008 Proforma Net of Adjustments | % of Sales | Proforma % Over (Under) | ||||||||||||||||||||||||
| Net sales | $ | 44,592 | 100.0 | % | - | 44,592 | 100.0 | % | 60,482 | 100.0 | % | - | 60,482 | 100.0 | % | -26.3 | % | |||||||||||||||||||
| Cost of sales | 38,843 | 87.1 | % | (358 | ) | -0.8 | % | (1 | ) | 38,485 | 86.3 | % | 53,706 | 88.8 | % | (349 | ) | -0.6 | % | (3 | ) | 53,357 | 88.2 | % | -27.9 | % | ||||||||||
| Gross profit | 5,749 | 12.9 | % | (358 | ) | -0.8 | % | 6,107 | 13.7 | % | 6,776 | 11.2 | % | (349 | ) | -0.6 | % | 7,125 | 11.8 | % | -14.3 | % | ||||||||||||||
Selling, general and | ||||||||||||||||||||||||||||||||||||
administrative expenses | 4,676 | 10.5 | % | (17 | ) | 0.0 | % | (1 | ) | 4,659 | 10.4 | % | 5,117 | 8.5 | % | (13 | ) | 0.0 | % | (3 | ) | 5,104 | 8.4 | % | -8.7 | % | ||||||||||
| Restructuring expense | 402 | 0.9 | % | (402 | ) | -0.9 | % | (2 | ) | - | 0.0 | % | 412 | 0.7 | % | (412 | ) | -0.7 | % | (4 | ) | - | 0.0 | % | 0.0 | % | ||||||||||
| Income from operations | 671 | 1.5 | % | (777 | ) | -1.7 | % | 1,448 | 3.2 | % | 1,247 | 2.1 | % | (774 | ) | -1.3 | % | 2,021 | 3.3 | % | -28.4 | % | ||||||||||||||
| Interest expense | 646 | 1.4 | % | - | 0.0 | % | 646 | 1.4 | % | 753 | 1.2 | % | - | 0.0 | % | 753 | 1.2 | % | -14.2 | % | ||||||||||||||||
| Interest income | (20 | ) | 0.0 | % | - | 0.0 | % | (20 | ) | 0.0 | % | (77 | ) | -0.1 | % | - | 0.0 | % | (77 | ) | -0.1 | % | -74.0 | % | ||||||||||||
| Other expense (income) | 28 | 0.1 | % | - | 0.0 | % | 28 | 0.1 | % | (72 | ) | -0.1 | % | - | 0.0 | % | (72 | ) | -0.1 | % | -138.9 | % | ||||||||||||||
| Income before income taxes | $ | 17 | 0.0 | % | (777 | ) | -1.7 | % | (5 | ) | 794 | 1.8 | % | 643 | 1.1 | % | (774 | ) | -1.3 | % | (6 | ) | 1,417 | 2.3 | % | -44.0 | % | |||||||||
| Notes: | |
(1) | The $358 restructuring related charge represents $322 for inventory markdowns and $36 for other operating costs associated with closed plant facilities. The $17 restructuring related charge represents other operating costs associated with closed plant facilities. |
(2) | The $402 restructuring charge represents $234 for lease termination and other exit costs, $148 for write-downs of equipment, and $20 for employee termination benefits. The lease termination and other exit costs of $234 primarily relate to the sale of the company's corporate headquarters. |
(3) | 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. |
(4) | The $412 restructuring charge represents $238 for employee termination benefits, $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. |
(5) | Of this total charge, $273 and $504 represent cash and non-cash charges, respectively. |
(6) | Of this total charge, $550 and $224 represent cash and non-cash charges, respectively. |
Page 7 of 7
| CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||||||||||||||||||
| PROFORMA CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||||||||||||
| FOR THE NINE MONTHS ENDED FEBRUARY 1, 2009 AND JANUARY 27, 2008 | ||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||
| (Amounts in Thousands, Except for Per Share Data) | ||||||||||||||||||||||||||||||||||||
| NINE MONTHS ENDED | ||||||||||||||||||||||||||||||||||||
|
|
|
|
| ||||||||||||||||||||||||||||||||
As Reported February 1, 2009 | % of Sales | Adjustments | % of Sales | February 1, 2009 Proforma Net of Adjustments | % of Sales | As Reported January 27, 2008 | % of Sales | Adjustments | % of Sales | January 27, 2008 Proforma Net of Adjustments | % of Sales | Proforma % Over (Under) | ||||||||||||||||||||||||
| Net sales | $ | 156,176 | 100.0 | % | - | 156,176 | 100.0 | % | 190,048 | 100.0 | % | - | 190,048 | 100.0 | % | -17.8 | % | |||||||||||||||||||
| Cost of sales | 139,879 | 89.6 | % | (3,583 | ) | -2.3 | % | (1 | ) | 136,296 | 87.3 | % | 165,794 | 87.2 | % | (1,455 | ) | -0.8 | % | (3 | ) | 164,339 | 86.5 | % | -17.1 | % | ||||||||||
| Gross profit | 16,297 | 10.4 | % | (3,583 | ) | -2.3 | % | 19,880 | 12.7 | % | 24,254 | 12.8 | % | (1,455 | ) | -0.8 | % | 25,709 | 13.5 | % | -22.7 | % | ||||||||||||||
Selling, general and | ||||||||||||||||||||||||||||||||||||
| administrative expenses | 14,498 | 9.3 | % | (21 | ) | 0.0 | % | (1 | ) | 14,477 | 9.3 | % | 17,275 | 9.1 | % | (65 | ) | 0.0 | % | (3 | ) | 17,210 | 9.1 | % | -15.9 | % | ||||||||||
| Restructuring expense | 9,438 | 6.0 | % | (9,438 | ) | -6.0 | % | (2 | ) | - | 0.0 | % | 759 | 0.4 | % | (759 | ) | -0.4 | % | (4 | ) | - | 0.0 | % | 0.0 | % | ||||||||||
| (Loss) income from operations | (7,639 | ) | -4.9 | % | (13,042 | ) | -8.4 | % | 5,403 | 3.5 | % | 6,220 | 3.3 | % | (2,279 | ) | -1.2 | % | 8,499 | 4.5 | % | -36.4 | % | |||||||||||||
| Interest expense | 1,739 | 1.1 | % | - | 0.0 | % | 1,739 | 1.1 | % | 2,380 | 1.3 | % | - | 0.0 | % | 2,380 | 1.3 | % | -26.9 | % | ||||||||||||||||
| Interest income | (75 | ) | 0.0 | % | - | 0.0 | % | (75 | ) | 0.0 | % | (197 | ) | -0.1 | % | - | 0.0 | % | (197 | ) | -0.1 | % | -61.9 | % | ||||||||||||
| Other (income) expense | (207 | ) | -0.1 | % | - | 0.0 | % | (207 | ) | -0.1 | % | 625 | 0.3 | % | - | 0.0 | % | 625 | 0.3 | % | -133.1 | % | ||||||||||||||
(Loss) income before income taxes | $ | (9,096 | ) | -5.8 | % | (13,042 | ) | -8.4 | % | (5 | ) | 3,946 | 2.5 | % | 3,412 | 1.8 | % | (2,279 | ) | -1.2 | % | (6 | ) | 5,691 | 3.0 | % | -30.7 | % | ||||||||
Notes: | |
(1) | The $3.6 million restructuring related charge represents $2.1 million for accelerated depreciation, $1.4 million for inventory markdowns, and $63 for other operating costs associated with closed plant facilities. The $21 restructuring related charge represents other operating costs associated with closed plant facilities. |
(2) | The $9.4 million restructuring charge represents $8.0 million for write-downs of equipment and buildings, $797 for employee termination benefits, and $681 for lease termination and other exit costs. |
(3) | 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. |
(4) | 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. |
(5) | Of this total charge, $1.5 million and $11.5 million represent cash and non-cash charges, respectively. |
(6) | Of this total charge, $1.3 million and $1.0 million represent cash and non-cash charges, respectively. |