Culp (CULP) 8-K Results of Operations and Financial Condition

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.