Exhibit 99(b)
Page 1 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF NET INCOME | |||||||||||||||||||||||
FOR THE THREE MONTHS AND TWELVE MONTHS ENDED May 1, 2011 AND May 2, 2010 | |||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||
(Amounts in Thousands, Except for Per Share Data) | |||||||||||||||||||||||
THREE MONTHS ENDED | |||||||||||||||||||||||
Amounts | Percent of Sales | ||||||||||||||||||||||
May 1, | May 2, | % Over | May 1, | May 2, | |||||||||||||||||||
2011 | 2010 | (Under) | 2011 | 2010 | |||||||||||||||||||
Net sales | $ | 60,363 | 57,243 | 5.5 | % | 100.0 | % | 100.0 | % | ||||||||||||||
Cost of sales | 49,080 | 45,843 | 7.1 | % | 81.3 | % | 80.1 | % | |||||||||||||||
Gross profit | 11,283 | 11,400 | (1.0 | ) | % | 18.7 | % | 19.9 | % | ||||||||||||||
Selling, general and | |||||||||||||||||||||||
administrative expenses | 6,525 | 6,090 | 7.1 | % | 10.8 | % | 10.6 | % | |||||||||||||||
Restructuring expense (credit) | 28 | (52 | ) | N.M. | 0.0 | % | (0.1 | ) | % | ||||||||||||||
Income from operations | 4,730 | 5,362 | (11.8 | ) | % | 7.8 | % | 9.4 | % | ||||||||||||||
Interest expense | 222 | 288 | (22.9 | ) | % | 0.4 | % | 0.5 | % | ||||||||||||||
Interest income | (96 | ) | (36 | ) | 166.7 | % | (0.2 | ) | % | (0.1 | ) | % | |||||||||||
Other (income) expense | (71 | ) | 114 | N.M. | (0.1 | ) | % | 0.2 | % | ||||||||||||||
Income before income taxes | 4,675 | 4,996 | (6.4 | ) | % | 7.7 | % | 8.7 | % | ||||||||||||||
Income taxes* | (1,315 | ) | (436 | ) | 201.6 | % | (28.1 | ) | % | (8.7 | ) | % | |||||||||||
Net income | $ | 5,990 | 5,432 | 10.3 | % | 9.9 | % | 9.5 | % | ||||||||||||||
Net income per share-basic | $ | 0.46 | $ | 0.42 | 9.5 | % | |||||||||||||||||
Net income per share-diluted | $ | 0.45 | $ | 0.41 | 9.8 | % | |||||||||||||||||
Average shares outstanding-basic | 13,030 | 12,801 | 1.8 | % | |||||||||||||||||||
Average shares outstanding-diluted | 13,217 | 13,200 | 0.1 | % |
TWELVE MONTHS ENDED | |||||||||||||||||||||||
Amounts | Percent of Sales | ||||||||||||||||||||||
May 1, | May 2, | % Over | May 1, | May 2, | |||||||||||||||||||
2011 | 2010 | (Under) | 2011 | 2010 | |||||||||||||||||||
Net sales | $ | 216,806 | 206,416 | 5.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
Cost of sales | 179,966 | 167,639 | 7.4 | % | 83.0 | % | 81.2 | % | |||||||||||||||
Gross profit | 36,840 | 38,777 | (5.0 | ) | % | 17.0 | % | 18.8 | % | ||||||||||||||
Selling, general and | |||||||||||||||||||||||
administrative expenses | 21,069 | 22,805 | (7.6 | ) | % | 9.7 | % | 11.0 | % | ||||||||||||||
Restructuring expense (credit) | 28 | (370 | ) | N.M. | 0.0 | % | (0.2 | ) | % | ||||||||||||||
Income from operations | 15,743 | 16,342 | (3.7 | ) | % | 7.3 | % | 7.9 | % | ||||||||||||||
Interest expense | 881 | 1,314 | (33.0 | ) | % | 0.4 | % | 0.6 | % | ||||||||||||||
Interest income | (240 | ) | (116 | ) | 106.9 | % | (0.1 | ) | % | (0.1 | ) | % | |||||||||||
Other expense | 40 | 828 | (95.2 | ) | % | 0.0 | % | 0.4 | % | ||||||||||||||
Income before income taxes | 15,062 | 14,316 | 5.2 | % | 6.9 | % | 6.9 | % | |||||||||||||||
Income taxes* | (1,102 | ) | 1,128 | N.M. | (7.3 | ) | % | 7.9 | % | ||||||||||||||
Net income | $ | 16,164 | 13,188 | 22.6 | % | 7.5 | % | 6.4 | % | ||||||||||||||
Net income per share-basic | $ | 1.25 | $ | 1.04 | 20.2 | % | |||||||||||||||||
Net income per share-diluted | $ | 1.22 | $ | 1.01 | 20.8 | % | |||||||||||||||||
Average shares outstanding-basic | 12,959 | 12,709 | 2.0 | % | |||||||||||||||||||
Average shares outstanding-diluted | 13,218 | 13,057 | 1.2 | % |
* Percent of sales column for income taxes is calculated as a % of income before income taxes. |
Page 2 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||||||
MAY 1, 2011 AND MAY 2, 2010 | ||||||||||||||||
Unaudited | ||||||||||||||||
(Amounts in Thousands) | ||||||||||||||||
Amounts | Increase | |||||||||||||||
May 1, | * May 2, | (Decrease) | ||||||||||||||
2011 | 2010 | Dollars | Percent | |||||||||||||
Current assets | ||||||||||||||||
Cash and cash equivalents | $ | 23,181 | $ | 18,295 | 4,886 | 26.7 | % | |||||||||
Short-term investments | 7,699 | 3,023 | 4,676 | 154.7 | % | |||||||||||
Accounts receivable | 20,209 | 19,822 | 387 | 2.0 | % | |||||||||||
Inventories | 28,723 | 26,002 | 2,721 | 10.5 | % | |||||||||||
Deferred income taxes | 293 | 150 | 143 | 95.3 | % | |||||||||||
Assets held for sale | 75 | 123 | (48 | ) | (39.0 | ) % | ||||||||||
Income taxes receivable | 79 | 728 | (649 | ) | (89.1 | ) % | ||||||||||
Other current assets | 2,376 | 1,698 | 678 | 39.9 | % | |||||||||||
Total current assets | 82,635 | 69,841 | 12,794 | 18.3 | % | |||||||||||
Property, plant and equipment, net | 30,296 | 28,403 | 1,893 | 6.7 | % | |||||||||||
Goodwill | 11,462 | 11,462 | - | 0.0 | % | |||||||||||
Deferred income taxes | 3,606 | 324 | 3,282 | 1,013.0 | % | |||||||||||
Other assets | 2,052 | 2,568 | (516 | ) | (20.1 | ) % | ||||||||||
Total assets | $ | 130,051 | $ | 112,598 | 17,453 | 15.5 | % | |||||||||
Current liabilities | ||||||||||||||||
Current maturities of long-term debt | $ | 2,412 | $ | 196 | 2,216 | 1,130.6 | % | |||||||||
Accounts payable - trade | 24,871 | 22,278 | 2,593 | 11.6 | % | |||||||||||
Accounts payable - capital expenditures | 140 | 567 | (427 | ) | (75.3 | ) % | ||||||||||
Accrued expenses | 7,617 | 9,613 | (1,996 | ) | (20.8 | ) % | ||||||||||
Accrued restructuring | 44 | 324 | (280 | ) | (86.4 | ) % | ||||||||||
Deferred income taxes | 82 | - | 82 | 100.0 | % | |||||||||||
Income taxes payable - current | 646 | 224 | 422 | 188.4 | % | |||||||||||
Total current liabilities | 35,812 | 33,202 | 2,610 | 7.9 | % | |||||||||||
Income taxes payable - long-term | 4,167 | 3,876 | 291 | 7.5 | % | |||||||||||
Deferred income taxes | 596 | 982 | (386 | ) | (39.3 | ) % | ||||||||||
Long-term debt , less current maturities | 9,135 | 11,491 | (2,356 | ) | (20.5 | ) % | ||||||||||
Total liabilities | 49,710 | 49,551 | 159 | 0.3 | % | |||||||||||
Shareholders' equity | 80,341 | 63,047 | 17,294 | 27.4 | % | |||||||||||
Total liabilities and | ||||||||||||||||
shareholders' equity | $ | 130,051 | $ | 112,598 | 17,453 | 15.5 | % | |||||||||
Shares outstanding | 13,264 | 13,052 | 212 | 1.6 | % | |||||||||||
* 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 1, 2011 AND MAY 2, 2010 | |||||
Unaudited | |||||
(Amounts in Thousands) |
TWELVE MONTHS ENDED | ||||||||
Amounts | ||||||||
May 1, | May 2, | |||||||
2011 | 2010 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 16,164 | 13,188 | |||||
Adjustments to reconcile net income to net cash | ||||||||
provided by operating activities: | ||||||||
Depreciation | 4,372 | 4,010 | ||||||
Amortization of other assets | 442 | 548 | ||||||
Stock-based compensation | 360 | 834 | ||||||
Deferred income taxes | (3,390 | ) | (148 | ) | ||||
Restructuring expenses, net of gain on sale of related assets | 28 | (170 | ) | |||||
Gain on sale of equipment | (22 | ) | (65 | ) | ||||
Excess tax benefits related to stock-based compensation | (339 | ) | (429 | ) | ||||
Foreign currency exchange (gains) losses | (115 | ) | 688 | |||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | (199 | ) | (1,684 | ) | ||||
Inventories | (2,579 | ) | (2,020 | ) | ||||
Other current assets | (621 | ) | (418 | ) | ||||
Other assets | (3 | ) | (67 | ) | ||||
Accounts payable | 2,110 | 5,157 | ||||||
Accrued expenses | (2,286 | ) | 2,853 | |||||
Accrued restructuring | (280 | ) | (529 | ) | ||||
Income taxes | 1,179 | (171 | ) | |||||
Net cash provided by operating activities | 14,821 | 21,577 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (6,352 | ) | (7,431 | ) | ||||
Purchase of short-term investments | (6,713 | ) | (3,023 | ) | ||||
Proceeds from the sale of short-term investments | 2,037 | - | ||||||
Proceeds from the sale of equipment | 79 | 583 | ||||||
Net cash used in investing activities | (10,949 | ) | (9,871 | ) | ||||
Cash flows from financing activities: | ||||||||
Payments on vendor-financed capital expenditures | (377 | ) | (985 | ) | ||||
Payments on capital lease obligation | - | (626 | ) | |||||
Payments on long-term debt | (179 | ) | (4,789 | ) | ||||
Debt issuance costs | (27 | ) | (15 | ) | ||||
Excess tax benefits related to stock-based compensation | 339 | 429 | ||||||
Proceeds from common stock issued | 769 | 673 | ||||||
Net cash provided by (used in) financing activities | 525 | (5,313 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | 489 | 105 | ||||||
Increase in cash and cash equivalents | 4,886 | 6,498 | ||||||
Cash and cash equivalents at beginning of period | 18,295 | 11,797 | ||||||
Cash and cash equivalents at end of period | $ | 23,181 | 18,295 | |||||
Free Cash Flow (1) | $ | 8,999 | 13,652 |
(1) Free Cash Flow reconciliation is as follows: | |||||||||||
FY 2011 | FY 2010 | ||||||||||
A | ) | Net cash provided by operating activities | $ | 14,821 | 21,577 | ||||||
B | ) | Minus: Capital Expenditures | (6,352 | ) | (7,431 | ) | |||||
C | ) | Add: Proceeds from the sale of equipment | 79 | 583 | |||||||
D | ) | Minus: Payments on vendor-financed capital expenditures | (377 | ) | (985 | ) | |||||
E | ) | Minus: Payments on capital lease obligation | - | (626 | ) | ||||||
F | ) | Add: Excess tax benefits related to stock-based compensation | 339 | 429 | |||||||
G | ) | Effects of exchange rate changes on cash and cash equivalents | 489 | 105 | |||||||
$ | 8,999 | 13,652 | |||||||||
Page 4 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
STATEMENTS OF OPERATIONS BY SEGMENT | ||||||||||||||||||||
FOR THE THREE MONTHS ENDED MAY 1, 2011 AND MAY 2, 2010 | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(Amounts in thousands) |
THREE MONTHS ENDED | ||||||||||||||||||||||||||
Amounts | Percent of Total Sales | |||||||||||||||||||||||||
May 1, | May 2, | % Over | May 1, | May 2, | ||||||||||||||||||||||
Net Sales by Segment | 2011 | 2010 | (Under) | 2011 | 2010 | |||||||||||||||||||||
Mattress Fabrics | $ | 35,187 | 33,418 | 5.3 | % | 58.3 | % | 58.4 | % | |||||||||||||||||
Upholstery Fabrics | 25,176 | 23,825 | 5.7 | % | 41.7 | % | 41.6 | % | ||||||||||||||||||
Net Sales | $ | 60,363 | 57,243 | 5.5 | % | 100.0 | % | 100.0 | % | |||||||||||||||||
Gross Profit by Segment | Gross Profit Margin | |||||||||||||||||||||||||
Mattress Fabrics | $ | 7,632 | 7,407 | 3.0 | % | 21.7 | % | 22.2 | % | |||||||||||||||||
Upholstery Fabrics | 3,651 | 4,008 | (8.9 | ) % | 14.5 | % | 16.8 | % | ||||||||||||||||||
Subtotal | 11,283 | 11,415 | (1.2 | ) % | 18.7 | % | 19.9 | % | ||||||||||||||||||
Restructuring related charges | - | (15 | ) | (2 | ) | (100.0 | ) % | 0.0 | % | (0.0 | ) % | |||||||||||||||
Gross Profit | $ | 11,283 | 11,400 | (1.0 | ) % | 18.7 | % | 19.9 | % | |||||||||||||||||
Selling, General and Administrative expenses by Segment | Percent of Sales | |||||||||||||||||||||||||
Mattress Fabrics | $ | 2,395 | 2,482 | (3.5 | ) % | 6.8 | % | 7.4 | % | |||||||||||||||||
Upholstery Fabrics | 2,839 | 2,385 | 19.0 | % | 11.3 | % | 10.0 | % | ||||||||||||||||||
Unallocated Corporate expenses | 1,291 | 1,223 | 5.6 | % | 2.1 | % | 2.1 | % | ||||||||||||||||||
Selling, General and Administrative expenses | 6,525 | 6,090 | 7.1 | % | 10.8 | % | 10.6 | % | ||||||||||||||||||
Operating Income (loss) by Segment | Operating Income (Loss) Margin | |||||||||||||||||||||||||
Mattress Fabrics | $ | 5,236 | 4,925 | 6.3 | % | 14.9 | % | 14.7 | % | |||||||||||||||||
Upholstery Fabrics | 813 | 1,623 | (49.9 | ) % | 3.2 | % | 6.8 | % | ||||||||||||||||||
Unallocated corporate expenses | (1,291 | ) | (1,223 | ) | 5.6 | % | (2.1 | ) % | (2.1 | ) % | ||||||||||||||||
Subtotal | 4,758 | 5,325 | (10.6 | ) % | 7.9 | % | 9.3 | % | ||||||||||||||||||
Restructuring and related (charges) credit | (28 | ) | (1 | ) | 37 | (2 | ) | N.M. | (0.0 | ) % | 0.1 | % | ||||||||||||||
Operating income | $ | 4,730 | 5,362 | (11.8 | ) % | 7.8 | % | 9.4 | % | |||||||||||||||||
Depreciation by Segment | ||||||||||||||||||||||||||
Mattress Fabrics | $ | 1,024 | 838 | 22.2 | % | |||||||||||||||||||||
Upholstery Fabrics | 143 | 130 | 10.0 | % | ||||||||||||||||||||||
Subtotal | 1,167 | 968 | 20.6 | % |
Notes:
(1) | The $28 represents an impairment charge related to equipment associated with the upholstery fabrics segment that are classified as held for sale. |
(2) | The $15 restructuring related charge represents other operating costs associated with closed plant facilities. The $37 restructuring and related credit represents a credit of $43 for sales proceeds received on equipment with no carrying value, a credit of $16 for employee termination benefits, offset by a charge of $15 for other operating costs associated with closed plant facilities and a charge of $7 for lease termination and other exit costs. |
Page 5 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||||
STATEMENTS OF OPERATIONS BY SEGMENT | |||||||||||
FOR THE TWELVE MONTHS ENDED MAY 1, 2011 AND MAY 2, 2010 | |||||||||||
(Unaudited) | |||||||||||
(Amounts in thousands) |
TWELVE MONTHS ENDED | ||||||||||||||||||||||||||
Amounts | Percent of Total Sales | |||||||||||||||||||||||||
May 1, | May 2, | % Over | May 1, | May 2, | ||||||||||||||||||||||
Net Sales by Segment | 2011 | 2010 | (Under) | 2011 | 2010 | |||||||||||||||||||||
Mattress Fabrics | $ | 122,431 | 114,848 | 6.6 | % | 56.5 | % | 55.6 | % | |||||||||||||||||
Upholstery Fabrics | 94,375 | 91,568 | 3.1 | % | 43.5 | % | 44.4 | % | ||||||||||||||||||
Net Sales | $ | 216,806 | 206,416 | 5.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||||
Gross Profit by Segment | Gross Profit Margin | |||||||||||||||||||||||||
Mattress Fabrics | $ | 23,248 | 23,652 | (1.7 | ) % | 19.0 | % | 20.6 | % | |||||||||||||||||
Upholstery Fabrics | 13,592 | 15,183 | (10.5 | ) % | 14.4 | % | 16.6 | % | ||||||||||||||||||
Subtotal | 36,840 | 38,835 | (5.1 | ) % | 17.0 | % | 18.8 | % | ||||||||||||||||||
Restructuring related charges | - | (58 | ) | (2 | ) | (100.0 | ) % | 0.0 | % | (0.0 | ) % | |||||||||||||||
Gross Profit | $ | 36,840 | 38,777 | (5.0 | ) % | 17.0 | % | 18.8 | % | |||||||||||||||||
Selling, General and Administrative expenses by Segment | Percent of Sales | |||||||||||||||||||||||||
Mattress Fabrics | $ | 7,875 | 8,178 | (3.7 | ) % | 6.4 | % | 7.1 | % | |||||||||||||||||
Upholstery Fabrics | 9,233 | 9,227 | 0.1 | % | 9.8 | % | 10.1 | % | ||||||||||||||||||
Unallocated Corporate expenses | 3,961 | 5,400 | (26.6 | ) % | 1.8 | % | 2.6 | % | ||||||||||||||||||
Subtotal | 21,069 | 22,805 | (7.6 | ) % | 9.7 | % | 11.0 | % | ||||||||||||||||||
Operating Income (loss) by Segment | Operating Income (Loss) Margin | |||||||||||||||||||||||||
Mattress Fabrics | $ | 15,373 | 15,474 | (0.7 | ) % | 12.6 | % | 13.5 | % | |||||||||||||||||
Upholstery Fabrics | 4,359 | 5,956 | (26.8 | ) % | 4.6 | % | 6.5 | % | ||||||||||||||||||
Unallocated corporate expenses | (3,961 | ) | (5,400 | ) | (26.6 | ) % | (1.8 | ) % | (2.6 | ) % | ||||||||||||||||
Subtotal | 15,771 | 16,030 | (1.6 | ) % | 7.3 | % | 7.8 | % | ||||||||||||||||||
Restructuring and related (charges) credit | (28 | ) | (1 | ) | 312 | (2 | ) | N.A | (0.0 | ) % | 0.2 | % | ||||||||||||||
Operating income | $ | 15,743 | 16,342 | (3.7 | ) % | 7.3 | % | 7.9 | % | |||||||||||||||||
Return on Capital (3) | ||||||||||||||||||||||||||
Mattress Fabrics | 29.5 | % | 32.7 | % | ||||||||||||||||||||||
Upholstery Fabrics | 36.3 | % | 56.3 | % | ||||||||||||||||||||||
Unallocated Corporate | N/A | N/A | ||||||||||||||||||||||||
Consolidated | 24.9 | % | 28.3 | % | ||||||||||||||||||||||
Capital Employed (3) | ||||||||||||||||||||||||||
Mattress Fabrics | 52,632 | 47,202 | 11.5 | % | ||||||||||||||||||||||
Upholstery Fabrics | 10,317 | 11,861 | (13.0 | ) % | ||||||||||||||||||||||
Unallocated Corporate | (428 | ) | (1,767 | ) | N/A | |||||||||||||||||||||
Consolidated | 62,521 | 57,296 | 9.1 | % | ||||||||||||||||||||||
Depreciation by Segment | ||||||||||||||||||||||||||
Mattress Fabrics | $ | 3,820 | 3,458 | 10.5 | % | |||||||||||||||||||||
Upholstery Fabrics | 552 | 552 | 0.0 | % | ||||||||||||||||||||||
Subtotal | 4,372 | 4,010 | 9.0 | % |
Notes: | |
(1) | This $28 represents an impairment charge of $28 related to equipment associated with the upholstery fabrics segment that are classified as held for sale, a charge of $10 for lease termination and other exit costs, offset by a credit of $10 for sales proceeds received on equipment with no carrying value. |
(2) | The $58 restructuring related charge represents a charge of $108 for other operating costs associated with closed plant facilities,offset by a credit of $50 for the sale of inventory previously reserved for. The $312 restructuring and related creditrepresents a credit of $186 for employee termination benefits, a credit of $170 for sales proceeds received on equipmentwith no carrying value, a credit of $50 for the sale of inventory previously reserved for, a credit of $14 for lease termination and other exit costs, offset by a charge of $108 for other operating costs associated with closed plant facilities. |
(3) | The capital employed balances are as of May 1, 2011 and May 2, 2010. See pages 6 and 7 of this financial information releasefor calculations. |
Page 6 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE |
RETURN ON CAPITAL EMPLOYED BY SEGMENT |
FOR THE TWELVE MONTHS ENDED MAY 1, 2011 |
(Amounts in Thousands) |
(Unaudited) |
Operating | ||||||||||||||||||||||||||||||||||||||||||||||||
Income | ||||||||||||||||||||||||||||||||||||||||||||||||
Twelve | Return on | |||||||||||||||||||||||||||||||||||||||||||||||
Months | Average | Avg. | ||||||||||||||||||||||||||||||||||||||||||||||
Ended | Capital | Capital | ||||||||||||||||||||||||||||||||||||||||||||||
May 1, | Employed | Employed | ||||||||||||||||||||||||||||||||||||||||||||||
2011 (1) | (3) | (2) | ||||||||||||||||||||||||||||||||||||||||||||||
Mattress Fabrics | $ | 15,373 | $ | 52,131 | 29.5 | % | ||||||||||||||||||||||||||||||||||||||||||
Upholstery Fabrics | 4,359 | 11,995 | 36.3 | % | ||||||||||||||||||||||||||||||||||||||||||||
(less: Unallocated Corporate) | (3,961 | ) | (848 | ) | N/A | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 15,771 | $ | 63,278 | 24.9 | % | ||||||||||||||||||||||||||||||||||||||||||
Average Capital Employed | As of the three Months Ended May 1, 2011 | As of the three Months Ended January 30, 2011 | As of the three Months Ended October 31, 2010 | |||||||||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||||||||||
Total assets | 66,637 | 25,929 | 37,485 | 130,051 | 63,830 | 22,623 | 27,424 | 113,877 | 65,485 | 22,277 | 24,146 | 111,908 | ||||||||||||||||||||||||||||||||||||
Total liabilities | (14,005 | ) | (15,612 | ) | (20,093 | ) | (49,710 | ) | (9,876 | ) | (10,117 | ) | (19,784 | ) | (39,777 | ) | (10,634 | ) | (10,275 | ) | (19,495 | ) | (40,404 | ) | ||||||||||||||||||||||||
Subtotal | $ | 52,632 | $ | 10,317 | $ | 17,392 | $ | 80,341 | $ | 53,954 | $ | 12,506 | $ | 7,640 | $ | 74,100 | $ | 54,851 | $ | 12,002 | $ | 4,651 | $ | 71,504 | ||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | (23,181 | ) | (23,181 | ) | - | - | (17,259 | ) | (17,259 | ) | - | - | (15,262 | ) | (15,262 | ) | ||||||||||||||||||||||||||||||
Short-term investments | - | - | (7,699 | ) | (7,699 | ) | - | - | (5,518 | ) | (5,518 | ) | - | - | (4,035 | ) | (4,035 | ) | ||||||||||||||||||||||||||||||
Deferred income taxes - current | - | - | (293 | ) | (293 | ) | - | - | (296 | ) | (296 | ) | - | - | (176 | ) | (176 | ) | ||||||||||||||||||||||||||||||
Income taxes receivable | - | - | (79 | ) | (79 | ) | - | - | (407 | ) | (407 | ) | - | - | (477 | ) | (477 | ) | ||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | (3,606 | ) | (3,606 | ) | - | - | (1,322 | ) | (1,322 | ) | - | - | (1,391 | ) | (1,391 | ) | ||||||||||||||||||||||||||||||
Current maturities of long-term debt | - | - | 2,412 | 2,412 | - | - | 2,400 | 2,400 | - | - | 2,396 | 2,396 | ||||||||||||||||||||||||||||||||||||
Deferred income taxes - current | 82 | 82 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||
Income taxes payable - current | - | - | 646 | 646 | - | - | 289 | 289 | - | - | 90 | 90 | ||||||||||||||||||||||||||||||||||||
Income taxes payable - long-term | - | - | 4,167 | 4,167 | - | - | 3,934 | 3,934 | - | - | 3,890 | 3,890 | ||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | 596 | 596 | - | - | 622 | 622 | - | - | 622 | 622 | ||||||||||||||||||||||||||||||||||||
Long-term debt, less current maturities | - | - | 9,135 | 9,135 | - | - | 9,166 | 9,166 | - | - | 9,209 | 9,209 | ||||||||||||||||||||||||||||||||||||
Total Capital Employed | $ | 52,632 | $ | 10,317 | $ | (428 | ) | $ | 62,521 | $ | 53,954 | $ | 12,506 | $ | (751 | ) | $ | 65,709 | $ | 54,851 | $ | 12,002 | $ | (483 | ) | $ | 66,370 | |||||||||||||||||||||
As of the three Months Ended August 1, 2010 | As of the three Months Ended May 2, 2010 | ||||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | ||||||||||||||||||||||||||
Total assets | 66,919 | 24,415 | 21,763 | 113,097 | 61,922 | 25,420 | 25,256 | 112,598 | |||||||||||||||||||||||||
Total liabilities | (14,902 | ) | (11,126 | ) | (19,943 | ) | (45,971 | ) | (14,720 | ) | (13,559 | ) | (21,272 | ) | (49,551 | ) | |||||||||||||||||
Subtotal | $ | 52,017 | $ | 13,289 | $ | 1,820 | $ | 67,126 | $ | 47,202 | $ | 11,861 | $ | 3,984 | $ | 63,047 | |||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | (14,045 | ) | (14,045 | ) | - | - | (18,295 | ) | (18,295 | ) | |||||||||||||||||||||
Short-term investments | - | - | (4,009 | ) | (4,009 | ) | (3,023 | ) | (3,023 | ) | |||||||||||||||||||||||
Deferred income taxes - current | - | - | (138 | ) | (138 | ) | - | - | (150 | ) | (150 | ) | |||||||||||||||||||||
Income taxes receivable | - | - | (568 | ) | (568 | ) | - | - | (728 | ) | (728 | ) | |||||||||||||||||||||
Deferred income taxes - non-current | - | - | (245 | ) | (245 | ) | - | - | (324 | ) | (324 | ) | |||||||||||||||||||||
Current maturities of long-term debt | - | - | 194 | 194 | - | - | 196 | 196 | |||||||||||||||||||||||||
Deferred income taxes - current | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Income taxes payable - current | - | - | 182 | 182 | - | - | 224 | 224 | |||||||||||||||||||||||||
Income taxes payable - long-term | - | - | 3,877 | 3,877 | - | - | 3,876 | 3,876 | |||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | 666 | 666 | - | - | 982 | 982 | |||||||||||||||||||||||||
Long-term debt, less current maturities | - | - | 11,453 | 11,453 | - | - | 11,491 | 11,491 | |||||||||||||||||||||||||
Total Capital Employed | $ | 52,017 | $ | 13,289 | $ | (813 | ) | $ | 64,493 | $ | 47,202 | $ | 11,861 | $ | (1,767 | ) | $ | 57,296 | |||||||||||||||
Mattress | Upholstery | Unallocated | |||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | ||||||||||||||||||||||||||||||
Average Capital Employed (3) | $ | 52,131 | $ | 11,995 | $ | (848 | ) | $ | 63,278 | ||||||||||||||||||||||||
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 fiscal 2011 divided by average capital employed. Average capital employed does not include cash and cash equivalents, short-term investments, long-term debt, including current maturities, current and noncurrent deferred tax assets and liabilities, income taxes payable, and income taxes receivable. |
(3) | Average capital employed computed using the five periods ending May 2,2010, August 1,2010, October 31, 2010, January 30, 2011, and May 1, 2011. |
Page 7 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||||||||||||||||||||||||||||||
RETURN ON CAPITAL EMPLOYED BY SEGMENT | ||||||||||||||||||||||||||||||||||||||||||||||||
FOR THE TWELVE MONTHS ENDED MAY 2, 2010 | ||||||||||||||||||||||||||||||||||||||||||||||||
(Amounts in Thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating | ||||||||||||||||||||||||||||||||||||||||||||||||
Income | ||||||||||||||||||||||||||||||||||||||||||||||||
Twelve | Return on | |||||||||||||||||||||||||||||||||||||||||||||||
Months | Average | Avg. | ||||||||||||||||||||||||||||||||||||||||||||||
Ended | Capital | Capital | ||||||||||||||||||||||||||||||||||||||||||||||
May 2, 2010 (1) | Employed (3) | Employed (2) | ||||||||||||||||||||||||||||||||||||||||||||||
Mattress Fabrics | $ | 15,474 | $ | 47,339 | 32.7 | % | ||||||||||||||||||||||||||||||||||||||||||
Upholstery Fabrics | 5,956 | 10,587 | 56.3 | % | ||||||||||||||||||||||||||||||||||||||||||||
(less: Unallocated Corporate) | (5,400 | ) | (1,349 | ) | N/A | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 16,030 | $ | 56,577 | 28.3 | % | ||||||||||||||||||||||||||||||||||||||||||
Average Capital Employed | As of the three Months Ended May 2, 2010 | As of the three Months Ended January 31, 2010 | As of the three Months Ended November 1, 2009 | |||||||||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||||||||||
Total assets | 61,922 | 25,420 | 25,256 | 112,598 | 58,609 | 25,928 | 21,971 | 106,508 | 56,686 | 19,598 | 22,496 | 98,780 | ||||||||||||||||||||||||||||||||||||
Total liabilities | (14,720 | ) | (13,559 | ) | (21,272 | ) | (49,551 | ) | (10,066 | ) | (13,527 | ) | (25,991 | ) | (49,584 | ) | (10,625 | ) | (10,461 | ) | (24,416 | ) | (45,502 | ) | ||||||||||||||||||||||||
Subtotal | $ | 47,202 | $ | 11,861 | $ | 3,984 | $ | 63,047 | $ | 48,543 | $ | 12,401 | $ | (4,020 | ) | $ | 56,924 | $ | 46,061 | $ | 9,137 | $ | (1,920 | ) | $ | 53,278 | ||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | (18,295 | ) | (18,295 | ) | - | - | (15,994 | ) | (15,994 | ) | - | - | (19,575 | ) | (19,575 | ) | ||||||||||||||||||||||||||||||
Short-term investments | - | - | (3,023 | ) | (3,023 | ) | - | - | (3,021 | ) | (3,021 | ) | - | - | - | - | ||||||||||||||||||||||||||||||||
Deferred income taxes - current | - | - | (150 | ) | (150 | ) | - | - | (57 | ) | (57 | ) | - | - | (58 | ) | (58 | ) | ||||||||||||||||||||||||||||||
Income taxes receivable | - | - | (728 | ) | (728 | ) | - | - | (331 | ) | (331 | ) | - | - | (384 | ) | (384 | ) | ||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | (324 | ) | (324 | ) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Current maturities of long-term debt | - | - | 196 | 196 | - | - | 4,880 | 4,880 | - | - | 4,863 | 4,863 | ||||||||||||||||||||||||||||||||||||
Income taxes payable - current | - | - | 224 | 224 | - | - | 153 | 153 | - | - | 329 | 329 | ||||||||||||||||||||||||||||||||||||
Income taxes payable - long-term | - | - | 3,876 | 3,876 | - | - | 3,690 | 3,690 | - | - | 3,603 | 3,603 | ||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | 982 | 982 | - | - | 1,092 | 1,092 | - | - | 1,078 | 1,078 | ||||||||||||||||||||||||||||||||||||
Long-term debt, less current maturities | - | - | 11,491 | 11,491 | - | - | 11,529 | 11,529 | - | - | 11,568 | 11,568 | ||||||||||||||||||||||||||||||||||||
Total Capital Employed | $ | 47,202 | $ | 11,861 | $ | (1,767 | ) | $ | 57,296 | $ | 48,543 | $ | 12,401 | $ | (2,079 | ) | $ | 58,865 | $ | 46,061 | $ | 9,137 | $ | (496 | ) | $ | 54,702 | |||||||||||||||||||||
As of the three Months Ended August 2, 2009 | As of the three Months Ended May 3, 2009 | |||||||||||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | |||||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||
Total assets | 57,772 | 16,128 | 18,511 | 92,411 | 58,626 | 22,078 | 14,590 | 95,294 | ||||||||||||||||||||||||||||||||||||||||
Total liabilities | (10,138 | ) | (7,670 | ) | (24,427 | ) | (42,235 | ) | (11,372 | ) | (10,999 | ) | (24,892 | ) | (47,263 | ) | ||||||||||||||||||||||||||||||||
Subtotal | $ | 47,634 | $ | 8,458 | $ | (5,916 | ) | $ | 50,176 | $ | 47,254 | $ | 11,079 | $ | (10,302 | ) | $ | 48,031 | ||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | (15,481 | ) | (15,481 | ) | - | - | (11,797 | ) | (11,797 | ) | ||||||||||||||||||||||||||||||||||||
Short-term investments | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Deferred income taxes - current | - | - | (52 | ) | (52 | ) | - | - | (54 | ) | (54 | ) | ||||||||||||||||||||||||||||||||||||
Income taxes receivable | - | - | (396 | ) | (396 | ) | - | - | (210 | ) | (210 | ) | ||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Current maturities of long-term debt | - | - | 4,817 | 4,817 | - | - | 4,764 | 4,764 | ||||||||||||||||||||||||||||||||||||||||
Income taxes payable - current | - | - | 72 | 72 | - | - | 83 | 83 | ||||||||||||||||||||||||||||||||||||||||
Income taxes payable - long-term | - | - | 3,538 | 3,538 | - | - | 3,264 | 3,264 | ||||||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | 1,072 | 1,072 | - | - | 974 | 974 | ||||||||||||||||||||||||||||||||||||||||
Long-term debt, less current maturities | - | - | 11,618 | 11,618 | - | - | 11,604 | 11,604 | ||||||||||||||||||||||||||||||||||||||||
Total Capital Employed | $ | 47,634 | $ | 8,458 | $ | (728 | ) | $ | 55,364 | $ | 47,254 | $ | 11,079 | $ | (1,674 | ) | $ | 56,659 | ||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||
Average Capital Employed (3) | $ | 47,339 | $ | 10,587 | $ | (1,349 | ) | $ | 56,577 |
Notes:
(1) | Operating income excludes restructuring and related charges and credits--see reconciliation per page 5 of this financial information release. |
(2) | Return on average capital employed represents operating income for fiscal 2010 then divided by average capital employed. Average capital employed does not include cash and cash equivalents, short-term investments, long-term debt, including current maturities, current and noncurrent deferred tax assets and liabilities, current and long-term income taxes payable, and income taxes receivable. |
(3) | Average capital employed computed using the five periods ending May 3,2009, August 2,2009, November 1, 2009, January 31, 2010, and May 2, 2010. |