Exhibit 99(b)
Page 1 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 31, 2010 AND FEBRUARY 1, 2009 | ||||||||||
(UNAUDITED) | ||||||||||
(Amounts in Thousands, Except for Per Share Data) |
THREE MONTHS ENDED | |||||||||||||||||||||||
Amounts | Percent of Sales | ||||||||||||||||||||||
January 31, | February 1, | % Over | January 31, | February 1, | |||||||||||||||||||
2010 | 2009 | (Under) | 2010 | 2009 | |||||||||||||||||||
Net sales | $ | 53,980 | 44,592 | 21.1 | % | 100.0 | % | 100.0 | % | ||||||||||||||
Cost of sales | 43,323 | 38,843 | 11.5 | % | 80.3 | % | 87.1 | % | |||||||||||||||
Gross Profit | 10,657 | 5,749 | 85.4 | % | 19.7 | % | 12.9 | % | |||||||||||||||
Selling, general and | |||||||||||||||||||||||
administrative expenses | 6,435 | 4,676 | 37.6 | % | 11.9 | % | 10.5 | % | |||||||||||||||
Restructuring expense | 26 | 402 | (93.5 | ) | % | 0.0 | % | 0.9 | % | ||||||||||||||
Income from operations | 4,196 | 671 | N.M. | 7.8 | % | 1.5 | % | ||||||||||||||||
Interest expense | 327 | 646 | (49.4 | ) | % | 0.6 | % | 1.4 | % | ||||||||||||||
Interest income | (52 | ) | (20 | ) | 160.0 | % | (0.1 | ) | % | (0.0 | ) | % | |||||||||||
Other expense | 96 | 28 | 242.9 | % | 0.2 | % | 0.1 | % | |||||||||||||||
Income before income taxes | 3,825 | 17 | N.M. | 7.1 | % | 0.0 | % | ||||||||||||||||
Income taxes* | 825 | 467 | 76.7 | % | 21.6 | % | N.M. | ||||||||||||||||
Net income (loss) | $ | 3,000 | (450 | ) | N.M. | 5.6 | % | (1.0 | ) | % | |||||||||||||
Net income (loss) per share-basic | $ | 0.24 | $ | (0.04 | ) | N.M. | |||||||||||||||||
Net income (loss) per share-diluted | $ | 0.23 | $ | (0.04 | ) | N.M. | |||||||||||||||||
Average shares outstanding-basic | 12,713 | 12,653 | 0.5 | % | |||||||||||||||||||
Average shares outstanding-diluted | 13,074 | 12,653 | 3.3 | % | |||||||||||||||||||
NINE MONTHS ENDED | |||||||||||||||||||||||
Amounts | Percent of Sales | ||||||||||||||||||||||
January 31, | February 1, | % Over | January 31, | February 1, | |||||||||||||||||||
2010 | 2009 | (Under) | 2010 | 2009 | |||||||||||||||||||
Net sales | $ | 149,173 | 156,176 | (4.5 | ) | % | 100.0 | % | 100.0 | % | |||||||||||||
Cost of sales | 121,795 | 139,879 | (12.9 | ) | % | 81.6 | % | 89.6 | % | ||||||||||||||
Gross Profit | 27,378 | 16,297 | 68.0 | % | 18.4 | % | 10.4 | % | |||||||||||||||
Selling, general and | |||||||||||||||||||||||
administrative expenses | 16,716 | 14,498 | 15.3 | % | 11.2 | % | 9.3 | % | |||||||||||||||
Restructuring (credit) expense | (317 | ) | 9,438 | N.M. | (0.2 | ) | % | 6.0 | % | ||||||||||||||
Income (loss) from operations | 10,979 | (7,639 | ) | N.M. | 7.4 | % | (4.9 | ) | % | ||||||||||||||
Interest expense | 1,026 | 1,739 | (41.0 | ) | % | 0.7 | % | 1.1 | % | ||||||||||||||
Interest income | (81 | ) | (75 | ) | 8.0 | % | (0.1 | ) | % | (0.0 | ) | % | |||||||||||
Other expense (income) | 714 | (207 | ) | N.M. | 0.5 | % | (0.1 | ) | % | ||||||||||||||
Income (loss) before income taxes | 9,320 | (9,096 | ) | N.M. | 6.2 | % | (5.8 | ) | % | ||||||||||||||
Income taxes* | 1,565 | 31,442 | N.M. | 16.8 | % | N.M. | |||||||||||||||||
Net income (loss) | $ | 7,755 | (40,538 | ) | N.M. | 5.2 | % | (26.0 | ) | % | |||||||||||||
Net income (loss) per share-basic | $ | 0.61 | $ | (3.20 | ) | N.M. | |||||||||||||||||
Net income (loss) per share-diluted | $ | 0.60 | $ | (3.20 | ) | N.M. | |||||||||||||||||
Average shares outstanding-basic | 12,679 | 12,650 | 0.2 | % | |||||||||||||||||||
Average shares outstanding-diluted | 12,960 | 12,650 | 2.5 | % | |||||||||||||||||||
* Percent of sales column for income taxes is calculated as a % of income (loss) before income taxes. |
Page 2 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE |
CONSOLIDATED BALANCE SHEETS |
JANUARY 31, 2010, FEBRUARY 1, 2009 AND MAY 3, 2009 |
Unaudited |
(Amounts in Thousands) |
Amounts | Increase | |||||||||||||||||||
January 31, | February 1, | (Decrease) | * May 3, | |||||||||||||||||
2010 | 2009 | Dollars | Percent | 2009 | ||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 19,015 | 15,809 | 3,206 | 20.3 | % | 11,797 | |||||||||||||
Accounts receivable | 20,871 | 14,219 | 6,652 | 46.8 | % | 18,116 | ||||||||||||||
Inventories | 24,366 | 25,376 | (1,010 | ) | (4.0 | ) % | 23,978 | |||||||||||||
Deferred income taxes | 57 | - | 57 | 100.0 | % | 54 | ||||||||||||||
Assets held for sale | 98 | 1,681 | (1,583 | ) | (94.2 | ) % | 1,209 | |||||||||||||
Income taxes receivable | 331 | - | 331 | 100.0 | % | 210 | ||||||||||||||
Other current assets | 1,217 | 1,493 | (276 | ) | (18.5 | ) % | 1,264 | |||||||||||||
Total current assets | 65,955 | 58,578 | 7,377 | 12.6 | % | 56,628 | ||||||||||||||
Property, plant & equipment, net | 26,431 | 24,763 | 1,668 | 6.7 | % | 24,253 | ||||||||||||||
Goodwill | 11,462 | 11,593 | (131 | ) | (1.1 | ) % | 11,593 | |||||||||||||
Other assets | 2,660 | 2,922 | (262 | ) | (9.0 | ) % | 2,820 | |||||||||||||
Total assets | $ | 106,508 | 97,856 | 8,652 | 8.8 | % | 95,294 | |||||||||||||
Current liabilities | ||||||||||||||||||||
Current maturities of long-term debt | $ | 4,880 | 7,180 | (2,300 | ) | (32.0 | ) % | 4,764 | ||||||||||||
Current portion of obligation under a capital lease | 107 | 692 | (585 | ) | (84.5 | ) % | 626 | |||||||||||||
Accounts payable - trade | 18,649 | 10,947 | 7,702 | 70.4 | % | 17,030 | ||||||||||||||
Accounts payable - capital expenditures | 790 | 725 | 65 | 9.0 | % | 923 | ||||||||||||||
Accrued expenses | 8,144 | 5,592 | 2,552 | 45.6 | % | 6,504 | ||||||||||||||
Accrued restructuring | 362 | 1,215 | (853 | ) | (70.2 | ) % | 853 | |||||||||||||
Income taxes payable - current | 153 | 1,469 | (1,316 | ) | (89.6 | ) % | 83 | |||||||||||||
Total current liabilities | 33,085 | 27,820 | 5,265 | 18.9 | % | 30,783 | ||||||||||||||
Accounts payable - capital expenditures | 188 | 912 | (724 | ) | (79.4 | ) % | 638 | |||||||||||||
Income taxes payable - long-term | 3,690 | 747 | 2,943 | 394.0 | % | 3,264 | ||||||||||||||
Deferred income taxes | 1,092 | 1,213 | (121 | ) | (10.0 | ) % | 974 | |||||||||||||
Obligation under capital lease | - | 107 | (107 | ) | (100.0 | ) % | - | |||||||||||||
Long-term debt , less current maturities | 11,529 | 20,933 | (9,404 | ) | (44.9 | ) % | 11,604 | |||||||||||||
Total liabilities | 49,584 | 51,732 | (2,148 | ) | (4.2 | ) % | 47,263 | |||||||||||||
Shareholders' equity | 56,924 | 46,124 | 10,800 | 23.4 | % | 48,031 | ||||||||||||||
Total liabilities and | ||||||||||||||||||||
shareholders' equity | $ | 106,508 | 97,856 | 8,652 | 8.8 | % | 95,294 | |||||||||||||
Shares outstanding | 12,935 | 12,768 | 167 | 1.3 | % | 12,768 | ||||||||||||||
* Derived from audited financial statements. |
Page 3 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
FOR THE NINE MONTHS ENDED JANUARY 31, 2010 AND FEBRUARY 1, 2009 |
Unaudited |
(Amounts in Thousands) |
NINE MONTHS ENDED | |||||||||||
Amounts | |||||||||||
January 31, | February 1, | ||||||||||
2010 | 2009 (2) | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 7,755 | (40,538 | ) | |||||||
Adjustments to reconcile net income (loss) to net cash | |||||||||||
provided by operating activities: | |||||||||||
Depreciation | 3,042 | 5,756 | |||||||||
Amortization of other assets | 416 | 350 | |||||||||
Stock-based compensation | 695 | 306 | |||||||||
Excess tax benefits related to stock-based compensation | (182 | ) | - | ||||||||
Deferred income taxes | 190 | 33,816 | |||||||||
Gain on sale of equipment | (72 | ) | (51 | ) | |||||||
Restructuring expenses, net of gain on sale of related assets | (127 | ) | 7,960 | ||||||||
Foreign currency exchange losses (gains) | 613 | (313 | ) | ||||||||
Changes in assets and liabilities, net of effects of acquisition of business: | |||||||||||
Accounts receivable | (2,742 | ) | 12,820 | ||||||||
Inventories | (385 | ) | 11,452 | ||||||||
Other current assets | 46 | (200 | ) | ||||||||
Other assets | (48 | ) | 26 | ||||||||
Accounts payable | 1,558 | (11,347 | ) | ||||||||
Accrued expenses | 1,555 | (2,668 | ) | ||||||||
Accrued restructuring | (491 | ) | (217 | ) | |||||||
Income taxes | 109 | (2,289 | ) | ||||||||
Net cash provided by operating activities | 11,932 | 14,863 | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (4,209 | ) | (1,719 | ) | |||||||
Net cash paid for acquisition of business | - | (11,365 | ) | ||||||||
Proceeds from the sale of buildings and equipment | 513 | 4,148 | |||||||||
Net cash used in investing activities | (3,696 | ) | (8,936 | ) | |||||||
Cash flows from financing activities: | |||||||||||
Proceeds from the issuance of long-term debt | - | 11,000 | |||||||||
Payments on vendor-financed capital expenditures | (797 | ) | (962 | ) | |||||||
Payments on capital lease obligation | (519 | ) | (586 | ) | |||||||
Payments on long-term debt | (32 | ) | (4,310 | ) | |||||||
Debt issuance costs | (15 | ) | (133 | ) | |||||||
Proceeds from common stock issued | 250 | 21 | |||||||||
Excess tax benefits related to stock-based compensation | 182 | - | |||||||||
Net cash (used in) provided by financing activities | (931 | ) | 5,030 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (87 | ) | (62 | ) | |||||||
Increase in cash and cash equivalents | 7,218 | 10,895 | |||||||||
Cash and cash equivalents at beginning of period | 11,797 | 4,914 | |||||||||
Cash and cash equivalents at end of period | $ | 19,015 | 15,809 | ||||||||
Free Cash Flow (1) | $ | 7,015 | 15,682 | ||||||||
(1) Free Cash Flow reconciliation is as follows: | 3rd Qtr | 3rd Qtr | |||||||||
FY 2010 | FY 2009 | ||||||||||
A) | Net cash provided by operating activities | $ | 11,932 | 14,863 | |||||||
B) | Minus: Capital Expenditures | (4,209 | ) | (1,719 | ) | ||||||
C) | Add: Proceeds from the sale of buildings and equipment | 513 | 4,148 | ||||||||
D) | Minus: Payments on vendor-financed capital expenditures | (797 | ) | (962 | ) | ||||||
E) | Minus: Payments on capital lease obligation | (519 | ) | (586 | ) | ||||||
F) | Add: Excess tax benefits related to stock-based compensation | 182 | - | ||||||||
G) | Effects of exchange rate changes on cash and cash equivalents | (87 | ) | (62 | ) | ||||||
$ | 7,015 | 15,682 | |||||||||
(2) | Certain prior year amounts have been reclassified to conform to current year presentation to reflect the effects of foreign exchange losses and gains on operating cash flows and cash and cash equivalents held as of February 1, 2009. Reclassifications are not material to total net cash provided by operating activities, total net cash used in investing activities, and total net cash provided by financing activities. |
Page 4 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE |
STATEMENTS OF OPERATIONS BY SEGMENT |
FOR THE THREE MONTHS ENDED JANUARY 31, 2010 AND FEBRUARY 1, 2009 |
(Amounts in thousands) |
THREE MONTHS ENDED (UNAUDITED) | |||||||||||||||||||||||
Amounts | Percent of Total Sales | ||||||||||||||||||||||
January 31, | February 1, | % Over | January 31, | February 1, | |||||||||||||||||||
Net Sales by Segment | 2010 | 2009 | (Under) | 2010 | 2009 | ||||||||||||||||||
Mattress Fabrics | $ | 26,953 | 25,198 | 7.0 | % | 49.9 | % | 56.5 | % | ||||||||||||||
Upholstery Fabrics | 27,027 | 19,394 | 39.4 | % | 50.1 | % | 43.5 | % | |||||||||||||||
Net Sales | $ | 53,980 | 44,592 | 21.1 | % | 100.0 | % | 100.0 | % | ||||||||||||||
Gross Profit by Segment | Gross Profit Margin | ||||||||||||||||||||||
Mattress Fabrics | $ | 5,587 | 4,176 | 33.8 | % | 20.7 | % | 16.6 | % | ||||||||||||||
Upholstery Fabrics | 5,098 | 1,931 | 164.0 | % | 18.9 | % | 10.0 | % | |||||||||||||||
Subtotal | 10,685 | 6,107 | 75.0 | % | 19.8 | % | 13.7 | % | |||||||||||||||
Restructuring related charges | (28 | ) | (358 | ) | (92.2 | ) | % | (0.1 | ) | % | (0.8 | ) | % | ||||||||||
Gross Profit | $ | 10,657 | 5,749 | 85.4 | % | 19.7 | % | 12.9 | % | ||||||||||||||
Selling, General and Administrative expenses by Segment | Percent of Sales | ||||||||||||||||||||||
Mattress Fabrics | $ | 2,031 | 1,941 | 4.6 | % | 7.5 | % | 7.7 | % | ||||||||||||||
Upholstery Fabrics | 2,627 | 1,880 | 39.7 | % | 9.7 | % | 9.7 | % | |||||||||||||||
Unallocated Corporate | 1,777 | 838 | 112.1 | % | 3.3 | % | 1.9 | % | |||||||||||||||
6,435 | 4,659 | 38.1 | % | 11.9 | % | 10.4 | % | ||||||||||||||||
Restructuring related charges | - | 17 | (100.0 | ) | % | 0.0 | % | 0.0 | % | ||||||||||||||
Selling, General and Administrative expenses | $ | 6,435 | 4,676 | 37.6 | % | 11.9 | % | 10.5 | % | ||||||||||||||
Operating Income (loss) by Segment | Operating Income (Loss) Margin | ||||||||||||||||||||||
Mattress Fabrics | $ | 3,556 | 2,235 | 59.1 | % | 13.2 | % | 8.9 | % | ||||||||||||||
Upholstery Fabrics | 2,471 | 51 | N.M. | 9.1 | % | 0.3 | % | ||||||||||||||||
Unallocated Corporate | (1,777 | ) | (838 | ) | 112.1 | % | (3.3 | ) | % | (1.9 | ) | % | |||||||||||
Subtotal | 4,250 | 1,448 | 193.5 | % | 7.9 | % | 3.2 | % | |||||||||||||||
Restructuring expense and restructuring related charges | (54 | ) | (777 | ) | (93.1 | ) | % | (0.1 | ) | % | (1.7 | ) | % | ||||||||||
Income from operations | $ | 4,196 | 671 | N.M. | 7.8 | % | 1.5 | % | |||||||||||||||
Depreciation by Segment | |||||||||||||||||||||||
Mattress Fabrics | $ | 842 | 941 | (10.5 | ) | % | |||||||||||||||||
Upholstery Fabrics | 149 | 92 | 62.0 | % | |||||||||||||||||||
Total Depreciation | 991 | 1,033 | (4.1 | ) | % | ||||||||||||||||||
Notes: | |||||||||||||||||||||||
See page 6 for detailed explanations of restructuring expense and restructuring related charges. |
Page 5 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE |
STATEMENTS OF OPERATIONS BY SEGMENT |
FOR THE NINE MONTHS ENDED JANUARY 31, 2010 AND FEBRUARY 1, 2009 |
(Amounts in thousands) |
NINE MONTHS ENDED (UNAUDITED) | |||||||||||||||||||||||
Amounts | Percent of Total Sales | ||||||||||||||||||||||
January 31, | February 1, | % Over | January 31, | February 1, | |||||||||||||||||||
Net Sales by Segment | 2010 | 2009 | (Under) | 2010 | 2009 | ||||||||||||||||||
Mattress Fabrics | $ | 81,429 | 88,808 | (8.3 | ) | % | 54.6 | % | 56.9 | % | |||||||||||||
Upholstery Fabrics | 67,744 | 67,368 | 0.6 | % | 45.4 | % | 43.1 | % | |||||||||||||||
Net Sales | $ | 149,173 | 156,176 | (4.5 | ) | % | 100.0 | % | 100.0 | % | |||||||||||||
Gross Profit by Segment | Gross Profit Margin | ||||||||||||||||||||||
Mattress Fabrics | $ | 16,245 | 15,603 | 4.1 | % | 19.9 | % | 17.6 | % | ||||||||||||||
Upholstery Fabrics | 11,175 | 4,277 | 161.3 | % | 16.5 | % | 6.3 | % | |||||||||||||||
Subtotal | 27,420 | 19,880 | 37.9 | % | 18.4 | % | 12.7 | % | |||||||||||||||
Restructuring related charges | (42 | ) | (3,583 | ) | (98.8 | ) | % | (0.0 | ) | % | (2.3 | ) | % | ||||||||||
Gross Profit | $ | 27,378 | 16,297 | 68.0 | % | 18.4 | % | 10.4 | % | ||||||||||||||
Selling, General and Administrative expenses by Segment | Percent of Sales | ||||||||||||||||||||||
Mattress Fabrics | $ | 5,696 | 5,902 | (3.5 | ) | % | 7.0 | % | 6.6 | % | |||||||||||||
Upholstery Fabrics | 6,843 | 6,444 | 6.2 | % | 10.1 | % | 9.6 | % | |||||||||||||||
Unallocated Corporate | 4,177 | 2,131 | 96.0 | % | 2.8 | % | 1.4 | % | |||||||||||||||
Subtotal | 16,716 | 14,477 | 15.5 | % | 11.2 | % | 9.3 | % | |||||||||||||||
Restructuring related charges | - | 21 | (100.0 | ) | % | 0.0 | % | 0.0 | % | ||||||||||||||
Selling, General and Administrative expenses | $ | 16,716 | 14,498 | 15.3 | % | 11.2 | % | 9.3 | % | ||||||||||||||
Operating Income (loss) by Segment | Operating Income (Loss) Margin | ||||||||||||||||||||||
Mattress Fabrics | $ | 10,549 | 9,702 | 8.7 | % | 13.0 | % | 10.9 | % | ||||||||||||||
Upholstery Fabrics | 4,332 | (2,168 | ) | N.M. | 6.4 | % | (3.2 | ) | % | ||||||||||||||
Unallocated Corporate | (4,177 | ) | (2,131 | ) | 96.0 | % | (2.8 | ) | % | (1.4 | ) | % | |||||||||||
Subtotal | 10,704 | 5,403 | 98.1 | % | 7.2 | % | 3.5 | % | |||||||||||||||
Restructuring (credit) expense and restructuring related charges | 275 | (13,042 | ) | N.M. | 0.2 | % | (8.4 | ) | % | ||||||||||||||
Income (loss) from operations | $ | 10,979 | (7,639 | ) | N.M. | 7.4 | % | (4.9 | ) | % | |||||||||||||
Depreciation by Segment | |||||||||||||||||||||||
Mattress Fabrics | $ | 2,620 | 2,617 | 0.1 | % | ||||||||||||||||||
Upholstery Fabrics | 422 | 1,049 | (59.8 | ) | % | ||||||||||||||||||
Subtotal | 3,042 | 3,666 | (17.0 | ) | % | ||||||||||||||||||
Accelerated Depreciation | - | 2,090 | 100.0 | % | |||||||||||||||||||
Total Depreciation | 3,042 | 5,756 | (47.2 | ) | % | ||||||||||||||||||
Notes: | |||||||||||||||||||||||
See page 7 for detailed explanations of restructuring (credit) expense and restructuring related charges. |
Page 6 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE |
ADJUSTED CONSOLIDATED STATEMENTS OF OPERATIONS |
FOR THE THREE MONTHS ENDED JANUARY 31, 2010 AND FEBRUARY 1, 2009 |
(Unaudited) |
(Amounts in Thousands, Except for Per Share Data) |
THREE MONTHS ENDED | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
As Reported | January 31, 2010 | As Reported | February 1, 2009 | Adjusted | ||||||||||||||||||||||||||||||||||||||||||||||||||
January 31, | % of | % of | Adjusted | % of | February 1, | % of | % of | Adjusted | % of | % Over | ||||||||||||||||||||||||||||||||||||||||||||
2010 | Sales | Adjustments | Sales | Results | Sales | 2009 | Sales | Adjustments | Sales | Results | Sales | (Under) | ||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 53,980 | 100.0 | % | - | 53,980 | 100.0 | % | 44,592 | 100.0 | % | - | 44,592 | 100.0 | % | 21.1 | % | |||||||||||||||||||||||||||||||||||||
Cost of sales | 43,323 | 80.3 | % | (28 | ) | -0.1 | % | (1) | 43,295 | 80.2 | % | 38,843 | 87.1 | % | (358 | ) | -0.8 | % | (3) | 38,485 | 86.3 | % | 12.5 | % | ||||||||||||||||||||||||||||||
Gross Profit | 10,657 | 19.7 | % | (28 | ) | -0.1 | % | 10,685 | 19.8 | % | 5,749 | 12.9 | % | (358 | ) | -0.8 | % | 6,107 | 13.7 | % | 75.0 | % | ||||||||||||||||||||||||||||||||
Selling, general and | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
administrative expenses | 6,435 | 11.9 | % | - | 0.0 | % | 6,435 | 11.9 | % | 4,676 | 10.5 | % | (17 | ) | 0.0 | % | (3) | 4,659 | 10.4 | % | 38.1 | % | ||||||||||||||||||||||||||||||||
Restructuring expense | 26 | 0.0 | % | (26 | ) | 0.0 | % | (2) | - | 0.0 | % | 402 | 0.9 | % | (402 | ) | -0.9 | % | (4) | - | 0.0 | % | 0.0 | % | ||||||||||||||||||||||||||||||
Income from operations | 4,196 | 7.8 | % | (54 | ) | -0.1 | % | 4,250 | 7.9 | % | 671 | 1.5 | % | (777 | ) | -1.7 | % | 1,448 | 3.2 | % | 193.5 | % | ||||||||||||||||||||||||||||||||
Interest expense | 327 | 0.6 | % | - | 0.0 | % | 327 | 0.6 | % | 646 | 1.4 | % | - | 0.0 | % | 646 | 1.4 | % | -49.4 | % | ||||||||||||||||||||||||||||||||||
Interest income | (52 | ) | -0.1 | % | - | 0.0 | % | (52 | ) | -0.1 | % | (20 | ) | 0.0 | % | - | 0.0 | % | (20 | ) | 0.0 | % | 160.0 | % | ||||||||||||||||||||||||||||||
Other expense | 96 | 0.2 | % | - | 0.0 | % | 96 | 0.2 | % | 28 | 0.1 | % | - | 0.0 | % | 28 | 0.1 | % | 242.9 | % | ||||||||||||||||||||||||||||||||||
Income before income taxes | $ | 3,825 | 7.1 | % | (54 | ) | -0.1 | % | (5) | 3,879 | 7.2 | % | 17 | 0.0 | % | (777 | ) | -1.7 | % | (6) | 794 | 1.8 | % | 388.5 | % |
Notes: |
(1) The $28 restructuring related charge represents other operating costs associated with closed plant facilities. |
(2) The $26 restructuring charge represents $40 for lease termination and other exit costs offset by a credit of $14 for sales proceeds received on equipment with no carrying value. |
(3) 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. |
(4) 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. |
(5) The $54 represents a cash charge. |
(6) Of this total charge, $273 and $504 represent cash and non-cash charges, respectively. |
Page 7 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE |
ADJUSTED CONSOLIDATED STATEMENTS OF OPERATIONS |
FOR THE NINE MONTHS ENDED JANUARY 31, 2010 AND FEBRUARY 1, 2009 |
(Unaudited) |
(Amounts in Thousands, Except for Per Share Data) |
NINE MONTHS ENDED | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
As Reported | January 31, 2010 | As Reported | February 1, 2009 | Adjusted | ||||||||||||||||||||||||||||||||||||||||||||||||||
January 31, | % of | % of | Adjusted | % of | February 1, | % of | % of | Adjusted | % of | % Over | ||||||||||||||||||||||||||||||||||||||||||||
2010 | Sales | Adjustments | Sales | Results | Sales | 2009 | Sales | Adjustments | Sales | Results | Sales | (Under) | ||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 149,173 | 100.0 | % | - | 149,173 | 100.0 | % | 156,176 | 100.0 | % | - | 156,176 | 100.0 | % | -4.5 | % | |||||||||||||||||||||||||||||||||||||
Cost of sales | 121,795 | 81.6 | % | (42 | ) | 0.0 | % | (1) | 121,753 | 81.6 | % | 139,879 | 89.6 | % | (3,583 | ) | -2.3 | % | (3) | 136,296 | 87.3 | % | -10.7 | % | ||||||||||||||||||||||||||||||
Gross Profit | 27,378 | 18.4 | % | (42 | ) | 0.0 | % | 27,420 | 18.4 | % | 16,297 | 10.4 | % | (3,583 | ) | -2.3 | % | 19,880 | 12.7 | % | 37.9 | % | ||||||||||||||||||||||||||||||||
Selling, general and | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
administrative expenses | 16,716 | 11.2 | % | - | 0.0 | % | 16,716 | 11.2 | % | 14,498 | 9.3 | % | (21 | ) | 0.0 | % | (3) | 14,477 | 9.3 | % | 15.5 | % | ||||||||||||||||||||||||||||||||
Restructuring (credit) expense | (317 | ) | -0.2 | % | 317 | 0.2 | % | (2) | - | 0.0 | % | 9,438 | 6.0 | % | (9,438 | ) | -6.0 | % | (4) | - | 0.0 | % | 0.0 | % | ||||||||||||||||||||||||||||||
Income (loss) from operations | 10,979 | 7.4 | % | 275 | 0.2 | % | 10,704 | 7.2 | % | (7,639 | ) | -4.9 | % | (13,042 | ) | -8.4 | % | 5,403 | 3.5 | % | 98.1 | % | ||||||||||||||||||||||||||||||||
Interest expense | 1,026 | 0.7 | % | - | 0.0 | % | 1,026 | 0.7 | % | 1,739 | 1.1 | % | - | 0.0 | % | 1,739 | 1.1 | % | -41.0 | % | ||||||||||||||||||||||||||||||||||
Interest income | (81 | ) | -0.1 | % | - | 0.0 | % | (81 | ) | -0.1 | % | (75 | ) | 0.0 | % | - | 0.0 | % | (75 | ) | 0.0 | % | 8.0 | % | ||||||||||||||||||||||||||||||
Other expense (income) | 714 | 0.5 | % | - | 0.0 | % | 714 | 0.5 | % | (207 | ) | -0.1 | % | - | 0.0 | % | (207 | ) | -0.1 | % | - | 444.9 | % | |||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 9,320 | 6.2 | % | 275 | 0.2 | % | (5) | 9,045 | 6.1 | % | (9,096 | ) | -5.8 | % | (13,042 | ) | -8.4 | % | (6) | 3,946 | 2.5 | % | 129.2 | % |
Notes: |
(1) The $42 restructuring related charge represents $92 for other operating costs associated with closed plant facilities offset by a credit of $50 for inventory markdowns. |
(2) The $317 restructuring credit represents a credit of $169 for employee termination benefits, a credit of $127 for sales proceeds recevied on equipment with no carrying value, and a credit of $21 for lease termination and other exit costs. |
(3) 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. |
(4) 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. |
(5) Of this total credit, $225 and $50 represent cash and non-cash credits, respectively. |
(6) Of this total charge, $1.5 million and $11.5 million represent cash and non-cash charges, respectively. |
Page 8 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||||||||||||||||||||||||||||||
RETURN ON CAPITAL EMPLOYED BY SEGMENT | ||||||||||||||||||||||||||||||||||||||||||||||||
FOR THE NINE MONTHS ENDED JANUARY 31, 2010 | ||||||||||||||||||||||||||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating | ||||||||||||||||||||||||||||||||||||||||||||||||
Income | Return on | |||||||||||||||||||||||||||||||||||||||||||||||
Nine Months | Average | Avg. | ||||||||||||||||||||||||||||||||||||||||||||||
Ended | Capital | Capital | ||||||||||||||||||||||||||||||||||||||||||||||
January 31, | Employed | Employed | ||||||||||||||||||||||||||||||||||||||||||||||
2010 (1) | (3) | (2) | ||||||||||||||||||||||||||||||||||||||||||||||
Mattress Fabrics | $ | 10,549 | $ | 47,373 | 29.7 | % | ||||||||||||||||||||||||||||||||||||||||||
Upholstery Fabrics | 4,332 | 10,269 | 56.2 | % | ||||||||||||||||||||||||||||||||||||||||||||
(less: Unallocated Corporate) | (4,177 | ) | (5,596 | ) | N/A | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 10,704 | $ | 52,046 | 27.4 | % | ||||||||||||||||||||||||||||||||||||||||||
Average Capital Employed | As of the three Months Ended January 31, 2010 | As of the three Months Ended November 1, 2009 | As of the three Months Ended August 2, 2009 | |||||||||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||||||||||
Total assets | 58,609 | 25,928 | 21,971 | 106,508 | 56,686 | 19,598 | 22,496 | 98,780 | 57,772 | 16,128 | 18,511 | 92,411 | ||||||||||||||||||||||||||||||||||||
Total liabilities | (10,066 | ) | (13,527 | ) | (25,991 | ) | (49,584 | ) | (10,625 | ) | (10,461 | ) | (24,416 | ) | (45,502 | ) | (10,138 | ) | (7,670 | ) | (24,427 | ) | (42,235 | ) | ||||||||||||||||||||||||
Subtotal | $ | 48,543 | $ | 12,401 | $ | (4,020 | ) | $ | 56,924 | $ | 46,061 | $ | 9,137 | $ | (1,920 | ) | $ | 53,278 | $ | 47,634 | $ | 8,458 | $ | (5,916 | ) | $ | 50,176 | |||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | (19,015 | ) | $ | (19,015 | ) | - | - | (19,575 | ) | (19,575 | ) | - | (15,481 | ) | $ | (15,481 | ) | ||||||||||||||||||||||||||||||
Current maturities of long-term debt | - | 4,880 | 4,880 | - | - | 4,863 | 4,863 | - | 4,817 | 4,817 | ||||||||||||||||||||||||||||||||||||||
Long-term debt, less current maturities | 11,529 | 11,529 | - | 11,568 | 11,568 | 11,618 | 11,618 | |||||||||||||||||||||||||||||||||||||||||
Total Capital Employed | $ | 48,543 | $ | 12,401 | $ | (6,626 | ) | $ | 54,318 | $ | 46,061 | $ | 9,137 | $ | (5,064 | ) | $ | 50,134 | $ | 47,634 | $ | 8,458 | $ | (4,962 | ) | $ | 51,130 | |||||||||||||||||||||
As of the three Months Ended May 3, 2009 | ||||||||||||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||
Total assets | 58,626 | 22,078 | 14,590 | 95,294 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | (11,372 | ) | (10,999 | ) | (24,892 | ) | (47,263 | ) | ||||||||||||||||||||||||||||||||||||||||
Subtotal | $ | 47,254 | $ | 11,079 | $ | (10,302 | ) | $ | 48,031 | |||||||||||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | (11,797 | ) | $ | (11,797 | ) | ||||||||||||||||||||||||||||||||||||||||||
Current maturities of long-term debt | - | 4,764 | 4,764 | |||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, less current maturities | 11,604 | 11,604 | ||||||||||||||||||||||||||||||||||||||||||||||
Total Capital Employed | $ | 47,254 | $ | 11,079 | $ | (5,731 | ) | $ | 52,602 | |||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||
Average Capital Employed (3) | $ | 47,373 | $ | 10,269 | $ | (5,596 | ) | $ | 52,046 | |||||||||||||||||||||||||||||||||||||||
Notes: | ||||||||||||
(1) Operating income excludes restructuring and related charges--see reconciliation per page 5 of this financial information release. | ||||||||||||
(2) Return on average capital employed represents operating income for the 9 month period ending January 31, 2010 divided by 3 quarters times 4 quarters to arrive at an annualized value then divided by average capital employed. Average capital employed does not include cash and cash equivalents, long-term debt, including current maturities and shareholders' equity. | ||||||||||||
(3) Average capital employed computed using the four periods ending May 3,2009, August 2,2009, November 1, 2009, and January 31, 2010. |