Exhibit 99(b)
Page 1 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF NET INCOME | ||||||||||||||||||||||||
FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 30, 2011 AND OCTOBER 31, 2010 | ||||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||
(Amounts in Thousands, Except for Per Share Data) | ||||||||||||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||||||
Amounts | Percent of Sales | |||||||||||||||||||||||
October 30, | October 31, | % Over | October 30, | October 31, | ||||||||||||||||||||
2011 | 2010 | (Under) | 2011 | 2010 | ||||||||||||||||||||
Net sales | $ | 58,013 | 48,879 | 18.7 | % | 100.0 | % | 100.0 | % | |||||||||||||||
Cost of sales | 49,367 | 41,270 | 19.6 | % | 85.1 | % | 84.4 | % | ||||||||||||||||
Gross profit | 8,646 | 7,609 | 13.6 | % | 14.9 | % | 15.6 | % | ||||||||||||||||
Selling, general and | ||||||||||||||||||||||||
administrative expenses | 5,720 | 4,202 | 36.1 | % | 9.9 | % | 8.6 | % | ||||||||||||||||
Income from operations | 2,926 | 3,407 | (14.1 | ) | % | 5.0 | % | 7.0 | % | |||||||||||||||
Interest expense | 188 | 225 | (16.4 | ) | % | 0.3 | % | 0.5 | % | |||||||||||||||
Interest income | (110 | ) | (49 | ) | 124.5 | % | (0.2 | ) | % | (0.1 | ) | % | ||||||||||||
Other (income) expense | (15 | ) | 30 | 150.0 | % | (0.0 | ) | % | 0.1 | % | ||||||||||||||
Income before income taxes | 2,863 | 3,201 | (10.6 | ) | % | 4.9 | % | 6.5 | % | |||||||||||||||
Income taxes* | (3,389 | ) | (801 | ) | N.M. | (118.4 | ) | % | (25.0 | ) | % | |||||||||||||
Net income | $ | 6,252 | 4,002 | 56.2 | % | 10.8 | % | 8.2 | % | |||||||||||||||
Net income per share-basic | $0.49 | $0.31 | 58.1 | % | ||||||||||||||||||||
Net income per share-diluted | $0.49 | $0.30 | 63.3 | % | ||||||||||||||||||||
Average shares outstanding-basic | 12,733 | 12,932 | (1.5 | ) | % | |||||||||||||||||||
Average shares outstanding-diluted | 12,871 | 13,167 | (2.2 | ) | % |
SIX MONTHS ENDED | ||||||||||||||||||||||||
Amounts | Percent of Sales | |||||||||||||||||||||||
October 30, | October 31, | % Over | October 30, | October 31, | ||||||||||||||||||||
2011 | 2010 | (Under) | 2011 | 2010 | ||||||||||||||||||||
Net sales | $ | 118,283 | 104,791 | 12.9 | % | 100.0 | % | 100.0 | % | |||||||||||||||
Cost of sales | 100,759 | 87,473 | 15.2 | % | 85.2 | % | 83.5 | % | ||||||||||||||||
Gross profit | 17,524 | 17,318 | 1.2 | % | 14.8 | % | 16.5 | % | ||||||||||||||||
Selling, general and | ||||||||||||||||||||||||
administrative expenses | 11,477 | 9,416 | 21.9 | % | 9.7 | % | 9.0 | % | ||||||||||||||||
Restructuring credit | - | (8 | ) | (100.0 | ) | % | 0.0 | % | (0.0 | ) | % | |||||||||||||
Income from operations | 6,047 | 7,910 | (23.6 | ) | % | 5.1 | % | 7.5 | % | |||||||||||||||
Interest expense | 409 | 435 | (6.0 | ) | % | 0.3 | % | 0.4 | % | |||||||||||||||
Interest income | (238 | ) | (87 | ) | 173.6 | % | (0.2 | ) | % | (0.1 | ) | % | ||||||||||||
Other expense | 49 | 83 | (41.0 | ) | % | 0.0 | % | 0.1 | % | |||||||||||||||
Income before income taxes | 5,827 | 7,479 | (22.1 | ) | % | 4.9 | % | 7.1 | % | |||||||||||||||
Income taxes* | (2,244 | ) | (270 | ) | N.M. | (38.5 | ) | % | (3.6 | ) | % | |||||||||||||
Net income | $ | 8,071 | 7,749 | 4.2 | % | 6.8 | % | 7.4 | % | |||||||||||||||
Net income per share-basic | $0.63 | $0.60 | 5.0 | % | ||||||||||||||||||||
Net income per share-diluted | $0.62 | $0.59 | 5.1 | % | ||||||||||||||||||||
Average shares outstanding-basic | 12,898 | 12,901 | (0.0 | ) | % | |||||||||||||||||||
Average shares outstanding-diluted | 13,025 | 13,186 | (1.2 | ) | % | |||||||||||||||||||
Adjusted Effective Income Tax Rate (1) | 18.0 | % | 15.4 | % | 16.9 | % | ||||||||||||||||||
* Percent of sales column for income taxes is calculated as a % of income before income taxes. |
(1) See page 8 for reconciliation to the GAAP effective income tax rate. |
Page 2 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE |
CONSOLIDATED BALANCE SHEETS |
OCTOBER 30, 2011, OCTOBER 31, 2010 AND MAY 1, 2011 |
Unaudited |
(Amounts in Thousands) |
Amounts | Increase | |||||||||||||||||||
October 30, | October 31, | (Decrease) | * May 1, | |||||||||||||||||
2011 | 2010 | Dollars | Percent | 2011 | ||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 13,795 | 15,262 | (1,467 | ) | (9.6 | ) % | 23,181 | ||||||||||||
Short-term investments | 10,482 | 4,035 | 6,447 | 159.8 | % | 7,699 | ||||||||||||||
Accounts receivable | 16,241 | 14,810 | 1,431 | 9.7 | % | 20,209 | ||||||||||||||
Inventories | 33,776 | 29,435 | 4,341 | 14.7 | % | 28,723 | ||||||||||||||
Deferred income taxes | 2,659 | 176 | 2,483 | 1,410.8 | % | 293 | ||||||||||||||
Assets held for sale | 75 | 123 | (48 | ) | (39.0 | ) % | 75 | |||||||||||||
Income taxes receivable | 79 | 477 | (398 | ) | (83.4 | ) % | 79 | |||||||||||||
Other current assets | 1,602 | 1,234 | 368 | 29.8 | % | 2,376 | ||||||||||||||
Total current assets | 78,709 | 65,552 | 13,157 | 20.1 | % | 82,635 | ||||||||||||||
Property, plant & equipment, net | 30,431 | 31,225 | (794 | ) | (2.5 | ) % | 30,296 | |||||||||||||
Goodwill | 11,462 | 11,462 | - | 0.0 | % | 11,462 | ||||||||||||||
Deferred income taxes | 4,540 | 1,391 | 3,149 | 226.4 | % | 3,606 | ||||||||||||||
Other assets | 1,982 | 2,278 | (296 | ) | (13.0 | ) % | 2,052 | |||||||||||||
Total assets | $ | 127,124 | 111,908 | 15,216 | 13.6 | % | 130,051 | |||||||||||||
Current liabilities | ||||||||||||||||||||
Current maturities of long-term debt | $ | 2,401 | 2,396 | 5 | 0.2 | % | 2,412 | |||||||||||||
Accounts payable - trade | 21,689 | 17,992 | 3,697 | 20.5 | % | 24,871 | ||||||||||||||
Accounts payable - capital expenditures | 112 | 253 | (141 | ) | (55.7 | ) % | 140 | |||||||||||||
Accrued expenses | 6,839 | 5,665 | 1,174 | 20.7 | % | 7,617 | ||||||||||||||
Accrued restructuring | 40 | 287 | (247 | ) | (86.1 | ) % | 44 | |||||||||||||
Deferred income taxes | - | - | - | 0.0 | % | 82 | ||||||||||||||
Income taxes payable - current | 373 | 90 | 283 | 314.4 | % | 646 | ||||||||||||||
Total current liabilities | 31,454 | 26,683 | 4,771 | 17.9 | % | 35,812 | ||||||||||||||
Income taxes payable - long-term | 4,096 | 3,890 | 206 | 5.3 | % | 4,167 | ||||||||||||||
Deferred income taxes | 659 | 622 | 37 | 5.9 | % | 596 | ||||||||||||||
Long-term debt , less current maturities | 6,818 | 9,209 | (2,391 | ) | (26.0 | ) % | 9,135 | |||||||||||||
Total liabilities | 43,027 | 40,404 | 2,623 | 6.5 | % | 49,710 | ||||||||||||||
Shareholders' equity | 84,097 | 71,504 | 12,593 | 17.6 | % | 80,341 | ||||||||||||||
Total liabilities and | ||||||||||||||||||||
shareholders' equity | $ | 127,124 | 111,908 | 15,216 | 13.6 | % | 130,051 | |||||||||||||
Shares outstanding | 12,767 | 13,199 | (432 | ) | (3.3 | ) % | 13,264 | |||||||||||||
* Derived from audited financial statements. |
Page 3 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
FOR THE SIX MONTHS ENDED OCTOBER 30, 2011 AND OCTOBER 31, 2010 |
Unaudited |
(Amounts in Thousands) |
SIX MONTHS ENDED | ||||||||
Amounts | ||||||||
October 30, | October 31, | |||||||
2011 | 2010 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 8,071 | $ | 7,749 | ||||
Adjustments to reconcile net income to net cash | ||||||||
provided by operating activities: | ||||||||
Depreciation | 2,386 | 2,097 | ||||||
Amortization of other assets | 127 | 258 | ||||||
Stock-based compensation | 178 | 204 | ||||||
Excess tax benefit related to stock-based compensation | (39 | ) | (270 | ) | ||||
Deferred income taxes | (3,280 | ) | (1,183 | ) | ||||
(Gain) loss on sale of equipment | (128 | ) | 4 | |||||
Foreign currency exchange (gains) losses | (164 | ) | 60 | |||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | 4,004 | 5,110 | ||||||
Inventories | (4,964 | ) | (3,363 | ) | ||||
Other current assets | 750 | 477 | ||||||
Other assets | (31 | ) | (45 | ) | ||||
Accounts payable-trade | (3,382 | ) | (4,493 | ) | ||||
Accrued expenses | (754 | ) | (4,112 | ) | ||||
Accrued restructuring | (4 | ) | (37 | ) | ||||
Income taxes | (189 | ) | 121 | |||||
Net cash provided by operating activities | 2,581 | 2,577 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (2,551 | ) | (5,076 | ) | ||||
Proceeds from the sale of equipment | 130 | 27 | ||||||
Purchase of short-term investments | (4,789 | ) | (1,012 | ) | ||||
Proceeds from the sale of short-term investments | 2,032 | - | ||||||
Net cash used in investing activities | (5,178 | ) | (6,061 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from lines of credit | 3,500 | - | ||||||
Payments on lines of credit | (3,500 | ) | - | |||||
Payments on long-term debt | (2,305 | ) | (80 | ) | ||||
Payments on vendor-financed capital expenditures | - | (188 | ) | |||||
Proceeds from common stock issued | 237 | 511 | ||||||
Common stock shares repurchased | (4,776 | ) | - | |||||
Debt issance costs | (26 | ) | (27 | ) | ||||
Excess tax benefit related to stock-based compensation | 39 | 270 | ||||||
Net cash (used in) provided by financing activities | (6,831 | ) | 486 | |||||
Effect of exchange rate changes on cash and cash equivalents | 42 | (35 | ) | |||||
Decrease in cash and cash equivalents | (9,386 | ) | (3,033 | ) | ||||
Cash and cash equivalents at beginning of period | 23,181 | 18,295 | ||||||
Cash and cash equivalents at end of period | $ | 13,795 | $ | 15,262 | ||||
Free Cash Flow (1) | $ | 241 | $ | (2,425 | ) |
(1) Free Cash Flow reconciliation is as follows: | |||||||||||
FY 2012 | FY 2011 | ||||||||||
A | ) | Net cash used in operating activities | $ | 2,581 | $ | 2,577 | |||||
B | ) | Minus: Capital Expenditures | (2,551 | ) | (5,076 | ) | |||||
C | ) | Add: Proceeds from the sale of equipment | 130 | 27 | |||||||
D | ) | Minus: Payments on vendor-financed capital expenditures | - | (188 | ) | ||||||
E | ) | Add: Excess tax benefit related to stock-based compensation | 39 | 270 | |||||||
F | ) | Effects of exchange rate changes on cash and cash equivalents | 42 | (35 | ) | ||||||
$ | 241 | $ | (2,425 | ) | |||||||
Page 4 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE |
STATEMENTS OF OPERATIONS BY SEGMENT |
FOR THE THREE MONTHS ENDED OCTOBER 30, 2011 AND OCTOBER 31, 2010 |
(Unaudited) |
(Amounts in thousands) |
THREE MONTHS ENDED | |||||||||||||||||||||||
Amounts | Percent of Total Sales | ||||||||||||||||||||||
October 30, | October 31, | % Over | October 30, | October 31, | |||||||||||||||||||
Net Sales by Segment | 2011 | 2010 | (Under) | 2011 | 2010 | ||||||||||||||||||
Mattress Fabrics | $ | 35,242 | 28,335 | 24.4 | % | 60.7 | % | 58.0 | % | ||||||||||||||
Upholstery Fabrics | 22,771 | 20,544 | 10.8 | % | 39.3 | % | 42.0 | % | |||||||||||||||
Net Sales | $ | 58,013 | 48,879 | 18.7 | % | 100.0 | % | 100.0 | % | ||||||||||||||
Gross Profit by Segment | Gross Profit Margin | ||||||||||||||||||||||
Mattress Fabrics | $ | 5,938 | 5,030 | 18.1 | % | 16.8 | % | 17.8 | % | ||||||||||||||
Upholstery Fabrics | 2,785 | 2,579 | 8.0 | % | 12.2 | % | 12.6 | % | |||||||||||||||
Subtotal | 8,723 | 7,609 | 14.6 | % | 15.0 | % | 15.6 | % | |||||||||||||||
Other non-recurring charges | (77 | ) | (1 | ) | - | 100.0 | % | (0.1 | ) | % | 0.0 | % | |||||||||||
Gross Profit | $ | 8,646 | 7,609 | 13.6 | % | 14.9 | % | 15.6 | % | ||||||||||||||
Selling, General and Administrative expenses by Segment | Percent of Sales | ||||||||||||||||||||||
Mattress Fabrics | $ | 2,132 | 1,704 | 25.1 | % | 6.0 | % | 6.0 | % | ||||||||||||||
Upholstery Fabrics | 2,766 | 1,777 | 55.7 | % | 12.1 | % | 8.6 | % | |||||||||||||||
Unallocated Corporate expenses | 822 | 721 | 14.0 | % | 1.4 | % | 1.5 | % | |||||||||||||||
Selling, General and Administrative expenses | 5,720 | 4,202 | 36.1 | % | 9.9 | % | 8.6 | % | |||||||||||||||
Operating Income (loss) by Segment | Operating Income (Loss) Margin | ||||||||||||||||||||||
Mattress Fabrics | $ | 3,806 | 3,326 | 14.4 | % | 10.8 | % | 11.7 | % | ||||||||||||||
Upholstery Fabrics | 19 | 802 | (97.6 | ) % | 0.1 | % | 3.9 | % | |||||||||||||||
Unallocated corporate expenses | (822 | ) | (721 | ) | 14.0 | % | (1.4 | ) | % | (1.5 | ) % | ||||||||||||
Subtotal | 3,003 | 3,407 | (11.9 | ) % | 5.2 | % | 7.0 | % | |||||||||||||||
Other non-recurring charges | (77 | ) | (1 | ) | - | 100.0 | % | (0.1 | ) | % | 0.0 | % | |||||||||||
Operating income | $ | 2,926 | 3,407 | (14.1 | ) % | 5.0 | % | 7.0 | % | ||||||||||||||
Depreciation by Segment | |||||||||||||||||||||||
Mattress Fabrics | $ | 1,054 | 944 | 11.7 | % | ||||||||||||||||||
Upholstery Fabrics | 146 | 139 | 5.0 | % | |||||||||||||||||||
Subtotal | $ | 1,200 | 1,083 | 10.8 | % |
(1) Our other non-recurring charges represent employee termination benefits associated with our Anderson, SC plant facility.
Page 5 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE |
STATEMENTS OF OPERATIONS BY SEGMENT |
FOR THE SIX MONTHS ENDED OCTOBER 30, 2011 AND OCTOBER 31, 2010 |
(Unaudited) |
(Amounts in thousands) |
SIX MONTHS ENDED | ||||||||||||||||||||||||
Amounts | Percent of Total Sales | |||||||||||||||||||||||
October 30, | October 31, | % Over | October 30, | October 31, | ||||||||||||||||||||
Net Sales by Segment | 2011 | 2010 | (Under) | 2011 | 2010 | |||||||||||||||||||
Mattress Fabrics | $ | 67,412 | 59,253 | 13.8 | % | 57.0 | % | 56.5 | % | |||||||||||||||
Upholstery Fabrics | 50,871 | 45,538 | 11.7 | % | 43.0 | % | 43.5 | % | ||||||||||||||||
�� | ||||||||||||||||||||||||
Net Sales | $ | 118,283 | 104,791 | 12.9 | % | 100.0 | % | 100.0 | % | |||||||||||||||
Gross Profit by Segment | Gross Profit Margin | |||||||||||||||||||||||
Mattress Fabrics | $ | 11,076 | 11,020 | 0.5 | % | 16.4 | % | 18.6 | % | |||||||||||||||
Upholstery Fabrics | 6,525 | 6,298 | 3.6 | % | 12.8 | % | 13.8 | % | ||||||||||||||||
Subtotal | 17,601 | 17,318 | 1.6 | % | 14.9 | % | 16.5 | % | ||||||||||||||||
Other non-recurring charges | (77 | ) | (1 | ) | - | 100.0 | % | (0.1 | ) | 0.0 | % | |||||||||||||
Gross Profit | $ | 17,524 | 17,318 | 1.2 | % | 14.8 | % | 16.5 | % | |||||||||||||||
Selling, General and Administrative expenses by Segment | Percent of Sales | |||||||||||||||||||||||
Mattress Fabrics | $ | 4,123 | 3,701 | 11.4 | % | 6.1 | % | 6.2 | % | |||||||||||||||
Upholstery Fabrics | 5,534 | 3,878 | 42.7 | % | 10.9 | % | 8.5 | % | ||||||||||||||||
Unallocated Corporate expenses | 1,820 | 1,837 | (0.9 | ) % | 1.5 | % | 1.8 | % | ||||||||||||||||
Subtotal | 11,477 | 9,416 | 21.9 | % | 9.7 | % | 9.0 | % | ||||||||||||||||
Operating Income (loss) by Segment | Operating Income (Loss) Margin | |||||||||||||||||||||||
Mattress Fabrics | $ | 6,953 | 7,319 | (5.0 | ) % | 10.3 | % | 12.4 | % | |||||||||||||||
Upholstery Fabrics | 991 | 2,420 | (59.0 | ) % | 1.9 | % | 5.3 | % | ||||||||||||||||
Unallocated corporate expenses | (1,820 | ) | (1,837 | ) | (0.9 | ) % | (1.5 | ) % | (1.8 | ) % | ||||||||||||||
Subtotal | 6,124 | 7,902 | (22.5 | ) % | 5.2 | % | 7.5 | % | ||||||||||||||||
Other non-recurring charges | (77 | ) | (1 | ) | - | 100.0 | % | (0.1 | ) % | 0.0 | % | |||||||||||||
Restructuring and related credit | - | 8 | (2 | ) | (100.0 | ) % | 0.0 | % | 0.0 | % | ||||||||||||||
Operating income | $ | 6,047 | 7,910 | (23.6 | ) % | 5.1 | % | 7.5 | % | |||||||||||||||
Return on Capital (3) | ||||||||||||||||||||||||
Mattress Fabrics | 25.8 | % | 28.5 | % | ||||||||||||||||||||
Upholstery Fabrics | 16.2 | % | 39.1 | % | ||||||||||||||||||||
Unallocated Corporate | N/A | N/A | ||||||||||||||||||||||
Consolidated | 18.5 | % | 25.2 | % | ||||||||||||||||||||
Capital Employed (3) (4) | ||||||||||||||||||||||||
Mattress Fabrics | 53,215 | 54,851 | (3.0 | ) % | ||||||||||||||||||||
Upholstery Fabrics | 13,209 | 12,002 | 10.1 | % | ||||||||||||||||||||
Unallocated Corporate | 465 | (483 | ) | N/A | ||||||||||||||||||||
Consolidated | 66,889 | 66,370 | 0.8 | % | ||||||||||||||||||||
Depreciation by Segment | ||||||||||||||||||||||||
Mattress Fabrics | $ | 2,082 | 1,822 | 14.3 | % | |||||||||||||||||||
Upholstery Fabrics | 304 | 275 | 10.5 | % | ||||||||||||||||||||
Subtotal | 2,386 | 2,097 | 13.8 | % | ||||||||||||||||||||
Notes:
(1) Our other non-recurring charges represent employee termination benefits associated with our Anderson, SC plant facility.
(2) The $8 restructuring credit primarily represents a credit of $15 for employee termination benefits and a charge of $7 for lease termination and other exit costs.
(3) See pages 6 and 7 of this financial information release for calculations.
(4) The capital employed balances are as of October 30, 2011 and October 31, 2010.
Page 6 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE |
RETURN ON CAPITAL EMPLOYED BY SEGMENT |
FOR THE SIX MONTHS ENDED OCTOBER 30, 2011 |
(Amounts in Thousands) |
(Unaudited) |
Operating | |||||||||||||
Income | |||||||||||||
Six Months | Average | Return on | |||||||||||
Ended | Capital | Avg. Capital | |||||||||||
October 30, | Employed | Employed | |||||||||||
2011 (1) | (3) | (2) | |||||||||||
Mattress Fabrics | $ | 6,953 | $ | 53,947 | 25.8 | % | |||||||
Upholstery Fabrics | 991 | 12,234 | 16.2 | % | |||||||||
(less: Unallocated Corporate) | (1,820 | ) | 129 | N/A | |||||||||
Total | $ | 6,124 | $ | 66,310 | 18.5 | % | |||||||
Average Capital Employed | As of the three Months Ended October 30, 2011 | As of the three Months Ended July 31, 2011 | As of the three Months Ended May 1, 2011 | |||||||||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||||||||||
Total assets | 68,568 | 24,462 | 34,094 | 127,124 | 71,325 | 26,683 | 31,299 | 129,307 | 66,637 | 25,929 | 37,485 | 130,051 | ||||||||||||||||||||||||||||||||||||
Total liabilities | (15,353 | ) | (11,253 | ) | (16,421 | ) | (43,027 | ) | (15,331 | ) | (13,507 | ) | (19,118 | ) | (47,956 | ) | (14,005 | ) | (15,612 | ) | (20,093 | ) | (49,710 | ) | ||||||||||||||||||||||||
Subtotal | $ | 53,215 | $ | 13,209 | $ | 17,673 | $ | 84,097 | $ | 55,994 | $ | 13,176 | $ | 12,181 | $ | 81,351 | $ | 52,632 | $ | 10,317 | $ | 17,392 | $ | 80,341 | ||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | (13,795 | ) | (13,795 | ) | - | - | (14,570 | ) | (14,570 | ) | - | - | (23,181 | ) | (23,181 | ) | ||||||||||||||||||||||||||||||
Short-term investments | - | - | (10,482 | ) | (10,482 | ) | - | - | (10,443 | ) | (10,443 | ) | - | - | (7,699 | ) | (7,699 | ) | ||||||||||||||||||||||||||||||
Deferred income taxes - current | - | - | (2,659 | ) | (2,659 | ) | - | - | (1,237 | ) | (1,237 | ) | - | - | (293 | ) | (293 | ) | ||||||||||||||||||||||||||||||
Income taxes receivable | - | - | (79 | ) | (79 | ) | - | - | (79 | ) | (79 | ) | - | - | (79 | ) | (79 | ) | ||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | (4,540 | ) | (4,540 | ) | - | - | (2,191 | ) | (2,191 | ) | - | - | (3,606 | ) | (3,606 | ) | ||||||||||||||||||||||||||||||
Current maturities of long-term debt | - | - | 2,401 | 2,401 | - | - | 2,409 | 2,409 | - | - | 2,412 | 2,412 | ||||||||||||||||||||||||||||||||||||
Deferred income taxes - current | - | - | 82 | 82 | 82 | 82 | ||||||||||||||||||||||||||||||||||||||||||
Income taxes payable - current | - | - | 373 | 373 | - | - | 345 | 345 | - | - | 646 | 646 | ||||||||||||||||||||||||||||||||||||
Income taxes payable - long-term | - | - | 4,096 | 4,096 | - | - | 4,178 | 4,178 | - | - | 4,167 | 4,167 | ||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | 659 | 659 | - | - | 596 | 596 | - | - | 596 | 596 | ||||||||||||||||||||||||||||||||||||
Long-term debt, less current maturities | - | - | 6,818 | 6,818 | - | - | 9,079 | 9,079 | - | - | 9,135 | 9,135 | ||||||||||||||||||||||||||||||||||||
Total Capital Employed | $ | 53,215 | $ | 13,209 | $ | 465 | $ | 66,889 | $ | 55,994 | $ | 13,176 | $ | 350 | $ | 69,520 | $ | 52,632 | $ | 10,317 | $ | (428 | ) | $ | 62,521 | |||||||||||||||||||||||
Mattress | Upholstery | Unallocated | |||||||||||||||
Fabrics | Fabrics | Corporate | Total | ||||||||||||||
Average Capital Employed (3) | $ | 53,947 | $ | 12,234 | $ | 129 | $ | 66,310 |
Notes: |
(1) See reconciliation per page 5 of this financial information release. |
(2) Return on average capital employed represents operating income for the six month period ending October 30, 2011 times 2 to arrive at an annualized value 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, income taxes payable, and income taxes receivable. |
(3) Average capital employed was computed using the three periods ending May 1, 2011, July 31, 2011, and October 30, 2011. |
Page 7 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE |
RETURN ON CAPITAL EMPLOYED BY SEGMENT |
FOR THE SIX MONTHS ENDED OCTOBER 31, 2010 |
(UNAUDITED) |
Operating | ||||||||||||||||||||||||||||||||||||||||||||||||
Income | Return on | |||||||||||||||||||||||||||||||||||||||||||||||
Six Months | Average | Avg. | ||||||||||||||||||||||||||||||||||||||||||||||
Ended | Capital | Capital | ||||||||||||||||||||||||||||||||||||||||||||||
October 31, | Employed | Employed | ||||||||||||||||||||||||||||||||||||||||||||||
2010 (1) | (3) | (2) | ||||||||||||||||||||||||||||||||||||||||||||||
Mattress Fabrics | $ | 7,319 | $ | 51,357 | 28.5 | % | ||||||||||||||||||||||||||||||||||||||||||
Upholstery Fabrics | 2,420 | 12,384 | 39.1 | % | ||||||||||||||||||||||||||||||||||||||||||||
(less: Unallocated Corporate) | (1,837 | ) | (1,021 | ) | N/A | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 7,902 | $ | 62,720 | 25.2 | % | ||||||||||||||||||||||||||||||||||||||||||
Average Capital Employed | As of the three Months Ended October 31, 2010 | As of the three Months Ended August 1, 2010 | As of the three Months Ended May 2, 2010 | |||||||||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||||||||||
Total assets | 65,485 | 22,277 | 24,146 | 111,908 | 66,919 | 24,415 | 21,763 | 113,097 | 61,922 | 25,420 | 25,256 | 112,598 | ||||||||||||||||||||||||||||||||||||
Total liabilities | (10,634 | ) | (10,275 | ) | (19,495 | ) | (40,404 | ) | (14,902 | ) | (11,126 | ) | (19,943 | ) | (45,971 | ) | (14,720 | ) | (13,559 | ) | (21,272 | ) | (49,551 | ) | ||||||||||||||||||||||||
Subtotal | $ | 54,851 | $ | 12,002 | $ | 4,651 | $ | 71,504 | $ | 52,017 | $ | 13,289 | $ | 1,820 | $ | 67,126 | $ | 47,202 | $ | 11,861 | $ | 3,984 | $ | 63,047 | ||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | (15,262 | ) | (15,262 | ) | - | - | (14,045 | ) | (14,045 | ) | - | - | (18,295 | ) | (18,295 | ) | ||||||||||||||||||||||||||||||
Short-term investments | - | - | (4,035 | ) | (4,035 | ) | - | - | (4,009 | ) | (4,009 | ) | (3,023 | ) | (3,023 | ) | ||||||||||||||||||||||||||||||||
Deferred income taxes - current | - | - | (176 | ) | (176 | ) | - | - | (138 | ) | (138 | ) | - | - | (150 | ) | (150 | ) | ||||||||||||||||||||||||||||||
Income taxes receivable | - | - | (477 | ) | (477 | ) | - | - | (568 | ) | (568 | ) | - | - | (728 | ) | (728 | ) | ||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | (1,391 | ) | (1,391 | ) | - | - | (245 | ) | (245 | ) | - | - | (324 | ) | (324 | ) | ||||||||||||||||||||||||||||||
Current maturities of long-term debt | - | - | 2,396 | 2,396 | - | - | 194 | 194 | - | - | 196 | 196 | ||||||||||||||||||||||||||||||||||||
Income taxes payable - current | - | - | 90 | 90 | - | - | 182 | 182 | - | - | 224 | 224 | ||||||||||||||||||||||||||||||||||||
Income taxes payable - long-term | - | - | 3,890 | 3,890 | - | - | 3,877 | 3,877 | - | - | 3,876 | 3,876 | ||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | 622 | 622 | - | - | 666 | 666 | - | - | 982 | 982 | ||||||||||||||||||||||||||||||||||||
Long-term debt, less current maturities | - | - | 9,209 | 9,209 | - | - | 11,453 | 11,453 | - | - | 11,491 | 11,491 | ||||||||||||||||||||||||||||||||||||
Total Capital Employed | $ | 54,851 | $ | 12,002 | $ | (483 | ) | $ | 66,370 | $ | 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) | $ | 51,357 | $ | 12,384 | $ | (1,021 | ) | $ | 62,720 | |||||||||||||||||||||||||||||||||||||||
Notes: | ||||||||||||||||||||||||||||||||||||||||||||||||
(1) Operating income excludes restructuring and related credits--see reconciliation per page 5 of this financial information release. | ||||||||||||||||||||||||||||||||||||||||||||||||
(2) Return on average capital employed represents operating income for the 6 month period ending October 31, 2010 times 2 to arrive at an annualized value 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 three periods ending May 2,2010, August 1,2010, October 31, 2010. |
Page 8 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE |
CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE |
FOR THE SIX MONTHS ENDED OCTOBER 30, 2011 AND OCTOBER 31, 2010 |
Unaudited |
(Amounts in Thousands) |
SIX MONTHS ENDED | |||||||||||
Amounts | |||||||||||
October 30, | October 31, | ||||||||||
2011 | 2010 | ||||||||||
Consolidated Effective GAAP Income Tax Rate | (1) | (38.5 | )% | (3.6 | )% | ||||||
Reduction of U.S. Valuation Allowance | 74.9 | % | - | ||||||||
Reduction of China Valuation Allowance | - | 17.0 | % | ||||||||
Fiscal 2012 Non-Cash U.S. Income Tax Expense | (17.3 | )% | (1.9 | )% | |||||||
Fiscal 2012 Non-Cash Foreign Income Tax Expense | (1.1 | )% | 3.9 | % | |||||||
Consolidated Adjusted Effective Income Tax Rate | (2) | 18.0 | % | 15.4 | % |
(1) Calculated by dividing consolidated income tax expense by consolidated income before income taxes. | ||||||||
(2) Represents income tax expense for our subsidiaries located in Canada, China, and Poland divided by consolidated income before income taxes. |