Exhibit 99(b)
Page 1 of 7
| CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
| FOR THE THREE MONTHS AND TWELVE MONTHS ENDED MAY 3, 2009 AND APRIL 27, 2008 | |||||||||||||||||||||||
| (UNAUDITED) | |||||||||||||||||||||||
| (Amounts in Thousands, Except for Per Share Data) | |||||||||||||||||||||||
| THREE MONTHS ENDED | |||||||||||||||||||||||
| Amounts | Percent of Sales | ||||||||||||||||||||||
| May 3, | April 27, | % Over | May 3, | April 27, | |||||||||||||||||||
| 2009 | 2008 | (Under) | 2009 | 2008 | |||||||||||||||||||
| Net sales | $ | 47,762 | $ | 63,998 | (25.4 | ) | % | 100.0 | % | 100.0 | % | ||||||||||||
| Cost of sales | 39,408 | 55,093 | (28.5 | ) | % | 82.5 | % | 86.1 | % | ||||||||||||||
| Gross profit | 8,354 | 8,905 | (6.2 | ) | % | 17.5 | % | 13.9 | % | ||||||||||||||
| Selling, general and | |||||||||||||||||||||||
| administrative expenses | 5,252 | 6,698 | (21.6 | ) | % | 11.0 | % | 10.5 | % | ||||||||||||||
| Restructuring expense | 33 | 127 | (74.0 | ) | % | 0.1 | % | 0.2 | % | ||||||||||||||
| Income from operations | 3,069 | 2,080 | 47.5 | % | 6.4 | % | 3.3 | % | |||||||||||||||
| Interest expense | 620 | 595 | 4.2 | % | 1.3 | % | 0.9 | % | |||||||||||||||
| Interest income | (14 | ) | (57 | ) | (75.4 | ) | % | (0.0 | ) | % | (0.1 | ) | % | ||||||||||
| Other expense | 251 | 112 | 124.1 | % | 0.5 | % | 0.2 | % | |||||||||||||||
| Income before income taxes | 2,212 | 1,430 | 54.7 | % | 4.6 | % | 2.2 | % | |||||||||||||||
| Income taxes* | 517 | (647 | ) | N.M. | 23.4 | % | (45.2 | ) | % | ||||||||||||||
| Net income | $ | 1,695 | $ | 2,077 | (18.4 | ) | % | 3.5 | % | 3.2 | % | ||||||||||||
| Net income per share-basic |
| $0.13 |
| $0.16 | (18.8 | ) | % | ||||||||||||||||
| Net income per share-diluted |
| $0.13 |
| $0.16 | (18.8 | ) | % | ||||||||||||||||
| Average shares outstanding-basic | 12,653 | 12,642 | 0.1 | % | |||||||||||||||||||
| Average shares outstanding-diluted | 12,694 | 12,729 | (0.3 | ) | % | ||||||||||||||||||
| TWELVE MONTHS ENDED | |||||||||||||||||||||||
| Amounts | Percent of Sales | ||||||||||||||||||||||
| May 3, | April 27, | % Over | May 3, | April 27, | |||||||||||||||||||
| 2009 | 2008 (1) | (Under) | 2009 | 2008 | |||||||||||||||||||
| Net sales | $ | 203,938 | $ | 254,046 | (19.7 | ) | % | 100.0 | % | 100.0 | % | ||||||||||||
| Cost of sales | 179,286 | 220,887 | (18.8 | ) | % | 87.9 | % | 86.9 | % | ||||||||||||||
| Gross profit | 24,652 | 33,159 | (25.7 | ) | % | 12.1 | % | 13.1 | % | ||||||||||||||
| Selling, general and | |||||||||||||||||||||||
| administrative expenses | 19,751 | 23,973 | (17.6 | ) | % | 9.7 | % | 9.4 | % | ||||||||||||||
| Restructuring expense | 9,471 | 886 | N.M. | 4.6 | % | 0.3 | % | ||||||||||||||||
| (Loss) income from operations | (4,570 | ) | 8,300 | N.M. | (2.2 | ) | % | 3.3 | % | ||||||||||||||
| Interest expense | 2,359 | 2,975 | (20.7 | ) | % | 1.2 | % | 1.2 | % | ||||||||||||||
| Interest income | (89 | ) | (254 | ) | (65.0 | ) | % | (0.0 | ) | % | (0.1 | ) | % | ||||||||||
| Other expense | 43 | 736 | (94.2 | ) | % | 0.0 | % | 0.3 | % | ||||||||||||||
| (Loss) income before income taxes | (6,883 | ) | 4,843 | N.M. | (3.4 | ) | % | 1.9 | % | ||||||||||||||
| Income taxes* | 31,959 | (542 | ) | N.M. | N.M. | (11.2 | ) | % | |||||||||||||||
| Net (loss) income | $ | (38,842 | ) | $ | 5,385 | N.M. | (19.0 | ) | % | 2.1 | % | ||||||||||||
| Net loss) income per share-basic | ($3.07 | ) |
| $0.43 | N.M. | ||||||||||||||||||
| Net (loss) income per share-diluted | ($3.07 | ) |
| $0.42 | N.M. | ||||||||||||||||||
| Average shares outstanding-basic | 12,651 | 12,624 | 0.2 | % | |||||||||||||||||||
| Average shares outstanding-diluted | 12,651 | 12,765 | (0.9 | ) | % | ||||||||||||||||||
| * Percent of sales column for income taxes is calculated as a % of income (loss) before income taxes. | |||||||||||||||||||||||
| (1) Derived from audited financial statements. | |||||||||||||||||||||||
Page 2 of 7
| CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||||
| MAY 3, 2009 AND APRIL 27, 2008 | ||||||||||||||
| Unaudited | ||||||||||||||
| (Amounts in Thousands) | ||||||||||||||
| Amounts | Increase | |||||||||||||
| May 3, | * April 27, | (Decrease) | ||||||||||||
| 2009 | 2008 | Dollars | Percent | |||||||||||
| Current assets | ||||||||||||||
| Cash and cash equivalents | $ | 11,797 | $ | 4,914 | 6,883 | 140.1 | % | |||||||
| Accounts receivable | 18,116 | 27,073 | (8,957 | ) | (33.1 | ) | % | |||||||
| Inventories | 23,978 | 35,394 | (11,416 | ) | (32.3 | ) | % | |||||||
| Deferred income taxes | 54 | 4,380 | (4,326 | ) | (98.8 | ) | % | |||||||
| Assets held for sale | 1,209 | 5,610 | (4,401 | ) | (78.4 | ) | % | |||||||
| Income taxes receivable | 210 | 438 | (228 | ) | (52.1 | ) | % | |||||||
| Other current assets | 1,264 | 1,328 | (64 | ) | (4.8 | ) | % | |||||||
| Total current assets | 56,628 | 79,137 | (22,509 | ) | (28.4 | ) | % | |||||||
| Property, plant and equipment, net | 24,253 | 32,939 | (8,686 | ) | (26.4 | ) | % | |||||||
| Goodwill | 11,593 | 4,114 | 7,479 | 181.8 | % | |||||||||
| Deferred income taxes | - | 29,430 | (29,430 | ) | (100.0 | ) | % | |||||||
| Other assets | 2,820 | 2,409 | 411 | 17.1 | % | |||||||||
| Total assets | $ | 95,294 | $ | 148,029 | (52,735 | ) | (35.6 | ) | % | |||||
| Current liabilities | ||||||||||||||
| Current maturities of long-term debt | $ | 4,764 | $ | 7,375 | (2,611 | ) | (35.4 | ) | % | |||||
Current portion of a obligation under capital lease | 626 | - | 626 | 100.0 | % | |||||||||
| Accounts payable - trade | 17,030 | 21,103 | (4,073 | ) | (19.3 | ) | % | |||||||
| Accounts payable - capital expenditures | 923 | 1,547 | (624 | ) | (40.3 | ) | % | |||||||
| Accrued expenses | 6,504 | 8,300 | (1,796 | ) | (21.6 | ) | % | |||||||
| Accrued restructuring | 853 | 1,432 | (579 | ) | (40.4 | ) | % | |||||||
| Income taxes payable - current | 83 | 150 | (67 | ) | (44.7 | ) | % | |||||||
| Total current liabilities | 30,783 | 39,907 | (9,124 | ) | (22.9 | ) | % | |||||||
| Accounts payable - capital expenditures | 638 | 1,449 | (811 | ) | (56.0 | ) | % | |||||||
| Income taxes payable - long-term | 3,264 | 4,802 | (1,538 | ) | (32.0 | ) | % | |||||||
| Deferred income taxes | 974 | 1,464 | (490 | ) | (33.5 | ) | % | |||||||
| Long-term debt , less current maturities | 11,604 | 14,048 | (2,444 | ) | (17.4 | ) | % | |||||||
| Total liabilities | 47,263 | 61,670 | (14,407 | ) | (23.4 | ) | % | |||||||
| Shareholders' equity | 48,031 | 86,359 | (38,328 | ) | (44.4 | ) | % | |||||||
| Total liabilities and | ||||||||||||||
| shareholders' equity | $ | 95,294 | $ | 148,029 | (52,735 | ) | (35.6 | ) | % | |||||
| Shares outstanding | 12,768 | 12,648 | 120 | 0.9 | % | |||||||||
| * Derived from audited financial statements | ||||||||||||||
Page 3 of 7
| CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||
| FOR THE TWELVE MONTHS ENDED MAY 3, 2009 AND APRIL 27, 2008 | |||||||||||||
| Unaudited | |||||||||||||
| (Amounts in Thousands) | |||||||||||||
| TWELVE MONTHS ENDED | |||||||||||||
| Amounts | |||||||||||||
| May 3, | * April 27, | ||||||||||||
| 2009 | 2008 | ||||||||||||
| Cash flows from operating activities: | |||||||||||||
| Net (loss) income | $ | (38,842 | ) | $ | 5,385 | ||||||||
| Adjustments to reconcile net (loss) income to net cash | |||||||||||||
| provided by operating activities: | |||||||||||||
| Depreciation | 6,712 | 5,548 | |||||||||||
| Amortization of other assets | 488 | 373 | |||||||||||
| Stock-based compensation | 425 | 618 | |||||||||||
| Excess tax benefit related to stock options exercised | - | (17 | ) | ||||||||||
| Deferred income taxes | 33,231 | (919 | ) | ||||||||||
| (Gain) loss on impairment of equipment | (32 | ) | 289 | ||||||||||
| Restructuring expenses, net of gain on sale of related assets | 7,960 | 140 | |||||||||||
| Changes in assets and liabilities, net of effects of acquisition of assets: | |||||||||||||
| Accounts receivable | 8,957 | 2,242 | |||||||||||
| Inventories | 12,855 | 5,236 | |||||||||||
| Other current assets | 46 | 496 | |||||||||||
| Other assets | 10 | (188 | ) | ||||||||||
| Accounts payable-trade | (5,365 | ) | (924 | ) | |||||||||
| Accrued expenses | (1,721 | ) | (445 | ) | |||||||||
| Accrued restructuring | (579 | ) | (1,926 | ) | |||||||||
| Income taxes | (1,377 | ) | 456 | ||||||||||
| Net cash provided by operating activities | 22,768 | 16,364 | |||||||||||
| Cash flows from investing activities: | |||||||||||||
| Capital expenditures | (1,970 | ) | (4,846 | ) | |||||||||
| Net cash paid for acquisition of assets | (11,365 | ) | - | ||||||||||
| Proceeds from the sale of buildings and equipment | 4,607 | 2,723 | |||||||||||
| Net cash used in investing activities | (8,728 | ) | (2,123 | ) | |||||||||
| Cash flows from financing activities: | |||||||||||||
| Proceeds from lines of credit | - | 1,339 | |||||||||||
| Payments on lines of credit | - | (3,932 | ) | ||||||||||
| Proceeds from the issuance of long-term debt | 11,000 | - | |||||||||||
| Payments on vendor-financed capital expenditures | (1,236 | ) | (642 | ) | |||||||||
| Payments on capital lease obligation | (754 | ) | - | ||||||||||
| Payments on long-term debt | (16,055 | ) | (16,737 | ) | |||||||||
| Debt issuance costs | (133 | ) | - | ||||||||||
| Proceeds from common stock issued | 21 | 459 | |||||||||||
| Excess tax benefit related to stock options exercised | - | 17 | |||||||||||
| Net cash used in financing activities | (7,157 | ) | (19,496 | ) | |||||||||
| Increase (decrease) in cash and cash equivalents | 6,883 | (5,255 | ) | ||||||||||
| Cash and cash equivalents at beginning of year | 4,914 | 10,169 | |||||||||||
| Cash and cash equivalents at end of year | $ | 11,797 | $ | 4,914 | |||||||||
| Free Cash Flow (1) | $ | 23,415 | $ | 13,616 | |||||||||
| (1) Free Cash Flow reconciliation is as follows: | |||||||||||||
| FY 2009 | FY 2008 | ||||||||||||
| A) | Net cash provided by operating activities | $ | 22,768 | $ | 16,364 | ||||||||
| B) | Minus: Capital Expenditures | (1,970 | ) | (4,846 | ) | ||||||||
| C) | Add: Proceeds from the sale of buildings and equipment | 4,607 | 2,723 | ||||||||||
| D) | Minus: Payments on vendor-financed capital expenditures | (1,236 | ) | (642 | ) | ||||||||
| E) | Minus: Payments on capital lease obligation | (754 | ) | - | |||||||||
| F) | Add: Excess tax benefit related to stock options exercised | - | 17 | ||||||||||
| $ | 23,415 | $ | 13,616 | ||||||||||
| * Derived from audited financial statements. | |||||||||||||
Page 4 of 7
| CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||
| STATEMENTS OF OPERATIONS BY SEGMENT | ||||||||||||||||||
| FOR THE THREE MONTHS ENDED MAY 3, 2009 AND APRIL 27, 2008 | ||||||||||||||||||
| (Amounts in thousands) | ||||||||||||||||||
| THREE MONTHS ENDED (UNAUDITED) | ||||||||||||||||||
| Amounts | Percent of Total Sales | |||||||||||||||||
| May 3, | April 27, | % Over | May 3, | April 27, | ||||||||||||||
| Net Sales by Segment | 2009 | 2008 | (Under) | 2009 | 2008 | |||||||||||||
| Mattress Fabrics | $ | 26,588 | 34,638 | (23.2 | ) | % | 55.7 | % | 54.1 | % | ||||||||
| Upholstery Fabrics | 21,174 | 29,360 | (27.9 | ) | % | 44.3 | % | 45.9 | % | |||||||||
| Net Sales | $ | 47,762 | 63,998 | (25.4 | ) | % | 100.0 | % | 100.0 | % | ||||||||
| Gross Profit by Segment | Gross Profit Margin | |||||||||||||||||
| Mattress Fabrics | $ | 5,392 | 6,533 | (17.5 | ) | % | 20.3 | % | 18.9 | % | ||||||||
| Upholstery Fabrics | 2,977 | 2,907 | 2.4 | % | 14.1 | % | 9.9 | % | ||||||||||
| Subtotal | 8,369 | 9,440 | (11.3 | ) | % | 17.5 | % | 14.8 | % | |||||||||
| Loss on impairment of equipment | - | (33 | ) | (2) | (100.0 | ) | % | 0.0 | % | (0.1 | ) | % | ||||||
| Restructuring related charges | (15 | ) | (1) | (502 | ) | (1) | (97.0 | ) | % | (0.0 | ) | % | (0.8 | ) | % | |||
| Gross Profit | $ | 8,354 | 8,905 | (6.2 | ) | % | 17.5 | % | 13.9 | % | ||||||||
| Selling, General and Administrative expenses by Segment | Percent of Sales | |||||||||||||||||
| Mattress Fabrics | $ | 1,848 | 2,679 | (31.0 | ) | % | 7.0 | % | 7.7 | % | ||||||||
| Upholstery Fabrics | 2,310 | 2,773 | (16.7 | ) | % | 10.9 | % | 9.4 | % | |||||||||
| Unallocated Corporate | 1,094 | 1,242 | (11.9 | ) | % | 2.3 | % | 1.9 | % | |||||||||
| 5,252 | 6,694 | (21.5 | ) | % | 11.0 | % | 10.5 | % | ||||||||||
| Restructuring related charges | - | (1) | 4 | (1) | (100.0 | ) | % | 0.0 | % | 0.0 | % | |||||||
| Selling, General and Administrative expenses | $ | 5,252 | 6,698 | (21.6 | ) | % | 11.0 | % | 10.5 | % | ||||||||
| Operating Income (loss) by Segment | Operating Income (Loss) Margin | |||||||||||||||||
| Mattress Fabrics | $ | 3,545 | 3,854 | (8.0 | ) | % | 13.3 | % | 11.1 | % | ||||||||
| Upholstery Fabrics | 666 | 134 | 397.0 | % | 3.1 | % | 0.5 | % | ||||||||||
| Unallocated Corporate | (1,094 | ) | (1,242 | ) | (11.9 | ) | % | (2.3 | ) | % | (1.9 | ) | % | |||||
| Subtotal | 3,117 | 2,746 | 13.5 | % | 6.5 | % | 4.3 | % | ||||||||||
| Loss on impairment of equipment | - | (33 | ) | (2) | (100.0 | ) | % | 0.0 | % | (0.1 | ) | % | ||||||
| Restructuring expense and restructuring related charges | (48 | ) | (1) | (633 | ) | (1) | (92.4 | ) | % | (0.1 | ) | % | (1.0 | ) | % | |||
| Operating income | $ | 3,069 | 2,080 | 47.5 | % | 6.4 | % | 3.3 | % | |||||||||
| Depreciation by Segment | ||||||||||||||||||
| Mattress Fabrics | $ | 925 | 776 | 19.2 | % | |||||||||||||
| Upholstery Fabrics | 32 | (3) | 507 | (93.7 | ) | % | ||||||||||||
| Total Depreciation | 957 | 1,283 | (25.4 | ) | % | |||||||||||||
| Notes: | ||||||||||||||||||
| (1) See page 6 for detailed explanations of restructuring expense and restructuring related charges. | ||||||||||||||||||
(2) The $33 represents an impairment loss on older and existing equipment that is being replaced by newer and more efficient equipment. This impairment loss pertains to the mattress fabrics segment. | ||||||||||||||||||
| (3) Upholstery fabrics depreciation expense represents allocation of corporate departments shared by both the mattress and upholstery fabric segments. | ||||||||||||||||||
Page 5 of 7
| CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||
| STATEMENTS OF OPERATIONS BY SEGMENT | ||||||||||||||||||
| FOR THE TWELVE MONTHS ENDED MAY 3, 2009 AND APRIL 27, 2008 | ||||||||||||||||||
| (Amounts in thousands) | ||||||||||||||||||
| TWELVE MONTHS ENDED (UNAUDITED) | ||||||||||||||||||
| Amounts | Percent of Total Sales | |||||||||||||||||
| May 3, | April 27, | % Over | May 3, | April 27, | ||||||||||||||
| Net Sales by Segment | 2009 | 2008 | (Under) | 2009 | 2008 | |||||||||||||
| Mattress Fabrics | $ | 115,396 | 138,064 | (16.4 | ) | % | 56.6 | % | 54.3 | % | ||||||||
| Upholstery Fabrics | 88,542 | 115,982 | (23.7 | ) | % | 43.4 | % | 45.7 | % | |||||||||
| Net Sales | $ | 203,938 | 254,046 | (19.7 | ) | % | 100.0 | % | 100.0 | % | ||||||||
| Gross Profit by Segment | Gross Profit Margin | |||||||||||||||||
| Mattress Fabrics | $ | 20,996 | 22,576 | (7.0 | ) | % | 18.2 | % | 16.4 | % | ||||||||
| Upholstery Fabrics | 7,253 | 12,829 | (43.5 | ) | % | 8.2 | % | 11.1 | % | |||||||||
| Subtotal | 28,249 | 35,405 | (20.2 | ) | % | 13.9 | % | 13.9 | % | |||||||||
| Loss on impairment of equipment | - | (289 | ) | (2) | (100.0 | ) | % | 0.0 | % | (0.1 | ) | % | ||||||
| Restructuring related charges | (3,597 | ) | (1) | (1,957 | ) | (1) | 83.8 | % | (1.8 | ) | % | (0.8 | ) | % | ||||
| Gross Profit | $ | 24,652 | 33,159 | (25.7 | ) | % | 12.1 | % | 13.1 | % | ||||||||
| Selling, General and Administrative expenses by Segment | Percent of Sales | |||||||||||||||||
| Mattress Fabrics | $ | 7,749 | 8,457 | (8.4 | ) | % | 6.7 | % | 6.1 | % | ||||||||
| Upholstery Fabrics | 8,756 | 11,650 | (24.8 | ) | % | 9.9 | % | 10.0 | % | |||||||||
| Unallocated Corporate | 3,225 | 3,797 | (15.1 | ) | % | 1.6 | % | 1.5 | % | |||||||||
| Subtotal | 19,730 | 23,904 | (17.5 | ) | % | 9.7 | % | 9.4 | % | |||||||||
| Restructuring related charges | 21 | (1) | 69 | (1) | (69.6 | ) | % | 0.0 | % | 0.0 | % | |||||||
| Selling, General and Administrative expenses | $ | 19,751 | 23,973 | (17.6 | ) | % | 9.7 | % | 9.4 | % | ||||||||
| Operating Income (loss) by Segment | Operating Income (Loss) Margin | |||||||||||||||||
| Mattress Fabrics | $ | 13,247 | 14,118 | (6.2 | ) | % | 11.5 | % | 10.2 | % | ||||||||
| Upholstery Fabrics | (1,503 | ) | 1,180 | N.M. | (1.7 | ) | % | 1.0 | % | |||||||||
| Unallocated Corporate | (3,225 | ) | (3,797 | ) | (15.1 | ) | % | (1.6 | ) | % | (1.5 | ) | % | |||||
| Subtotal | 8,519 | 11,501 | (25.9 | ) | % | 4.2 | % | 4.5 | % | |||||||||
| Loss on impairment of equipment | - | (289 | ) | (2) | (100.0 | ) | % | 0.0 | % | (0.1 | ) | % | ||||||
| Restructuring expense and restructuring related charges | (13,089 | ) | (1) | (2,912 | ) | (1) | N.M. | (6.4 | ) | % | (1.1 | ) | % | |||||
| Operating (loss) income | $ | (4,570 | ) | 8,300 | N.M. | (2.2 | ) | % | 3.3 | % | ||||||||
| Depreciation by Segment | ||||||||||||||||||
| Mattress Fabrics | $ | 3,542 | 3,443 | 2.9 | % | |||||||||||||
| Upholstery Fabrics | 1,080 | 2,105 | (48.7 | ) | % | |||||||||||||
| Subtotal | 4,622 | 5,548 | (16.7 | ) | % | |||||||||||||
| Accelerated Depreciation | 2,090 | - | 100.0 | % | ||||||||||||||
| Total Depreciation | 6,712 | 5,548 | 21.0 | % | ||||||||||||||
| Notes: | ||||||||||||||||||
| (1) See page 7 for detailed explanations of restructuring expense and restructuring related charges. | ||||||||||||||||||
| (2) The $289 represents an impairment loss on older and existing equipment that is being replaced by newer and more efficient equipment. This impairment loss pertains to the mattress fabrics segment. | ||||||||||||||||||
Page 6 of 7
| CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||||||||||||||||||||||||||||||||
ADJUSTED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||||||||||||||||||
| FOR THE THREE MONTHS ENDED MAY 3, 2009 AND APRIL 27, 2008 | |||||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||||
| (Amounts in Thousands, Except for Per Share Data) | |||||||||||||||||||||||||||||||||||||||
| THREE MONTHS ENDED | |||||||||||||||||||||||||||||||||||||||
| As Reported | May 3, 2009 | As Reported | April 27, 2008 | Proforma | |||||||||||||||||||||||||||||||||||
| May 3, | % of | % of | Adjusted | % of | April 27, | % of | % of | Adjusted | % of | % Over | |||||||||||||||||||||||||||||
| 2009 | Sales | Adjustments | Sales | Results | Sales | 2008 | Sales | Adjustments | Sales | Results | Sales | (Under) | |||||||||||||||||||||||||||
| Net sales | $ | 47,762 | 100.0 | % | - | 47,762 | 100.0 | % | 63,998 | 100.0 | % | - | 63,998 | 100.0 | % | -25.4 | % | ||||||||||||||||||||||
| Cost of sales | 39,408 | 82.5 | % | (15 | ) | 0.0 | % | (1) | 39,393 | 82.5 | % | 55,093 | 86.1 | % | (502 | ) | -0.8 | % | (3) | 54,591 | 85.3 | % | -27.8 | % | |||||||||||||||
| Gross profit | 8,354 | 17.5 | % | (15 | ) | 0.0 | % | 8,369 | 17.5 | % | 8,905 | 13.9 | % | (502 | ) | -0.8 | % | 9,407 | 14.7 | % | -11.0 | % | |||||||||||||||||
| Selling, general and | |||||||||||||||||||||||||||||||||||||||
| administrative expenses | 5,252 | 11.0 | % | - | 0.0 | % | 5,252 | 11.0 | % | 6,698 | 10.5 | % | (4 | ) | 0.0 | % | (3) | 6,694 | 10.5 | % | -21.5 | % | |||||||||||||||||
| Restructuring expense | 33 | 0.1 | % | (33 | ) | -0.1 | % | (2) | - | 0.0 | % | 127 | 0.2 | % | (127 | ) | -0.2 | % | (4) | - | 0.0 | % | 0.0 | % | |||||||||||||||
| Income from operations | 3,069 | 6.4 | % | (48 | ) | -0.1 | % | 3,117 | 6.5 | % | 2,080 | 3.3 | % | (633 | ) | -1.0 | % | 2,713 | 4.2 | % | 14.9 | % | |||||||||||||||||
| Interest expense | 620 | 1.3 | % | - | 0.0 | % | 620 | 1.3 | % | 595 | 0.9 | % | - | 0.0 | % | 595 | 0.9 | % | 4.2 | % | |||||||||||||||||||
| Interest income | (14 | ) | 0.0 | % | - | 0.0 | % | (14 | ) | 0.0 | % | (57 | ) | -0.1 | % | - | 0.0 | % | (57 | ) | -0.1 | % | -75.4 | % | |||||||||||||||
| Other expense | 251 | 0.5 | % | - | 0.0 | % | 251 | 0.5 | % | 112 | 0.2 | % | - | 0.0 | % | 112 | 0.2 | % | 124.1 | % | |||||||||||||||||||
| Income before income taxes | 2,212 | 4.6 | % | (48 | ) | -0.1 | % | (5) | 2,260 | 4.7 | % | 1,430 | 2.2 | % | (633 | ) | -1.0 | % | (6) | 2,063 | 3.2 | % | 9.5 | % | |||||||||||||||
| Notes: | |||||||||||||||||||||||||||||||||||||||
| (1) The $15 restructuring related charge represents $57 for other operating costs associated with closed plant facilities and a credit of $42 for inventory markdowns. | |||||||||||||||||||||||||||||||||||||||
| (2) The $33 restructuring charge represents $43 for lease termination and other exit costs and a credit of $10 for employee termination benefits. | |||||||||||||||||||||||||||||||||||||||
| (3) The $502 restructuring related charge represents $469 for inventory markdowns and $33 for other operating costs associated with closed plant facilities. The $4 restructuring related charge represents other operating costs associated with closed plant facilties. | |||||||||||||||||||||||||||||||||||||||
| (4) The $127 restructuring charge represents $183 for employee termination benefits, $21 for a write-down of equipment, $5 for asset movement costs, a credit of $3 for sales proceeds received on equipment with no carrying value, and a credit of $79 for lease termination and other exit costs. | |||||||||||||||||||||||||||||||||||||||
| (5) Of this total charge, $90 and $42 represent a cash charge and a non-cash credit, respectively. | |||||||||||||||||||||||||||||||||||||||
| (6) Of this total charge, $143 and $490 represent cash and non-cash charges, respectively. | |||||||||||||||||||||||||||||||||||||||
Page 7 of 7
| CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||||||||||||||||||||||||||||||||
ADJUSTED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||||||||||||||||||
| FOR THE TWELVE MONTHS ENDED MAY 3, 2009 AND APRIL 27, 2008 | |||||||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||||||
| (Amounts in Thousands, Except for Per Share Data) | |||||||||||||||||||||||||||||||||||||||
| TWELVE MONTHS ENDED | |||||||||||||||||||||||||||||||||||||||
| As Reported | May 3, 2009 | As Reported | April 27, 2008 | Proforma | |||||||||||||||||||||||||||||||||||
| May 3, | % of | % of | Adjusted | % of | April 27, | % of | % of | Adjusted | % of | % Over | |||||||||||||||||||||||||||||
| 2009 | Sales | Adjustments | Sales | Results | Sales | 2008 | Sales | Adjustments | Sales | Results | Sales | (Under) | |||||||||||||||||||||||||||
| Net sales | $ | 203,938 | 100.0 | % | - | 203,938 | 100.0 | % | 254,046 | 100.0 | % | - | 254,046 | 100.0 | % | -19.7 | % | ||||||||||||||||||||||
| Cost of sales | 179,286 | 87.9 | % | (3,597 | ) | -1.8 | % | (1) | 175,689 | 86.1 | % | 220,887 | 86.9 | % | (1,957 | ) | -0.8 | % | (3) | 218,930 | 86.2 | % | -19.8 | % | |||||||||||||||
| Gross profit | 24,652 | 12.1 | % | (3,597 | ) | -1.8 | % | 28,249 | 13.9 | % | 33,159 | 13.1 | % | (1,957 | ) | -0.8 | % | 35,116 | 13.8 | % | -19.6 | % | |||||||||||||||||
| Selling, general and | |||||||||||||||||||||||||||||||||||||||
| administrative expenses | 19,751 | 9.7 | % | (21 | ) | 0.0 | % | (1) | 19,730 | 9.7 | % | 23,973 | 9.4 | % | (69 | ) | 0.0 | % | (3) | 23,904 | 9.4 | % | -17.5 | % | |||||||||||||||
| Restructuring expense | 9,471 | 4.6 | % | (9,471 | ) | -4.6 | % | (2) | - | 0.0 | % | 886 | 0.3 | % | (886 | ) | -0.3 | % | (4) | - | 0.0 | % | 0.0 | % | |||||||||||||||
| (Loss) income from operations | (4,570 | ) | -2.2 | % | (13,089 | ) | -6.4 | % | 8,519 | 4.2 | % | 8,300 | 3.3 | % | (2,912 | ) | -1.1 | % | 11,212 | 4.4 | % | -24.0 | % | ||||||||||||||||
| Interest expense | 2,359 | 1.2 | % | - | 0.0 | % | 2,359 | 1.2 | % | 2,975 | 1.2 | % | - | 0.0 | % | 2,975 | 1.2 | % | -20.7 | % | |||||||||||||||||||
| Interest income | (89 | ) | 0.0 | % | - | 0.0 | % | (89 | ) | 0.0 | % | (254 | ) | -0.1 | % | - | 0.0 | % | (254 | ) | -0.1 | % | -65.0 | % | |||||||||||||||
| Other expense | 43 | 0.0 | % | - | 0.0 | % | 43 | 0.0 | % | 736 | 0.3 | % | - | 0.0 | % | 736 | 0.3 | % | -94.2 | % | |||||||||||||||||||
| (Loss) income before income taxes | (6,883 | ) | -3.4 | % | (13,089 | ) | -6.4 | % | (5) | 6,206 | 3.0 | % | 4,843 | 1.9 | % | (2,912 | ) | -1.1 | % | (6) | 7,755 | 3.1 | % | -20.0 | % | ||||||||||||||
| Notes: | |||||||||||||||||||||||||||||||||||||||
| (1) The $3.6 million restructuring related charge represents $3.5 million for inventory markdowns and $119 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 $9.5 million restructuring charge represents $8.0 million for write-downs of equipment and buildings, $786 for employee termination benefits, and $728 for lease termination and other exit costs. | |||||||||||||||||||||||||||||||||||||||
| (3) The $1.9 million restructuring related charge represents $1.0 million for inventory markdowns and $954 for other operating costs associated with closed plant facilities. The $69 restructuring related charge represents other operating costs associated with closed plant facilities. | |||||||||||||||||||||||||||||||||||||||
| (4) The $886 restructuring charge represents $533 for lease termination and other exit costs, $503 for write-downs of buildings and equipment, $189 for asset movement costs, $23 for employee termination benefits, and a credit of $362 for sales proceeds received on equipment with no carrying value. | |||||||||||||||||||||||||||||||||||||||
| (5) Of this total charge, $1.6 million and $11.5 million represent cash and non-cash charges, respectively. | |||||||||||||||||||||||||||||||||||||||
| (6) Of this total charge, $1.4 million and $1.5 million represent cash and non-cash charges, respectively. | |||||||||||||||||||||||||||||||||||||||