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

Exhibit 99(b)

Page 1 of 9

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF NET INCOME
FOR THE THREE MONTHS ENDED APRIL 29, 2012 AND MAY 1, 2011
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
		THREE MONTHS ENDED
		Amounts					Percent of Sales
		April 29,		May 1,	% Over		April 29,		May 1,
		2012		2011	(Under)		2012		2011
Net sales	$	75,711		60,363	25.4	%	100.0	%	100.0	%
Cost of sales		62,013		49,080	26.4	%	81.9	%	81.3	%
Gross profit		13,698		11,283	21.4	%	18.1	%	18.7	%
Selling, general and
administrative expenses		8,031		6,525	23.1	%	10.6	%	10.8	%
Restructuring expense		-		28	(100.0	) %	0.0	%	0.0	%
Income from operations		5,667		4,730	19.8	%	7.5	%	7.8	%
Interest expense		190		222	(14.4	) %	0.3	%	0.4	%
Interest income		(121)		(96)	26.0	%	(0.2)	%	(0.2	) %
Other expense (income)		104		(71)	N.M.		0.1	%	(0.1	) %
Income before income taxes		5,494		4,675	17.5	%	7.3	%	7.7	%
Income taxes*		2,071		(1,315)	N.M.		37.7	%	(28.1	) %
Net income	$	3,423		5,990	(42.9	) %	4.5	%	9.9	%
Net income per share-basic	$	0.27	$	0.46	(41.3	) %
Net income per share-diluted	$	0.27	$	0.45	(40.0	) %
Average shares outstanding-basic		12,513		13,030	(4.0	) %
Average shares outstanding-diluted		12,695		13,217	(3.9	) %

PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)
	THREE MONTHS ENDED
	Amounts							Percent of Sales
	April 29,		May 1,		% Over			April 29,			May 1,
	2012		2011		(Under)			2012			2011
Income before income taxes (see above)	$	5,494		4,675		17.5	%		7.3	%		7.7	%
Adjusted Income taxes (2)*		1,016		753		34.9	%		18.5	%		16.1	%
Adjusted net income		4,478		3,922		14.2	%		5.9	%		6.5	%
												A
Adjusted net income per share-basic	$	0.36	$	0.30		20.0	%
Adjusted net income per share-diluted	$	0.35	$	0.30		16.7	%
Average shares outstanding-basic		12,513		13,030		(4.0	) %
Average shares outstanding-diluted		12,695		13,217		(3.9	) %

(1) Culp, Inc. currently does not incur cash income tax expense in the US due to its $59.9 million in net operating loss carryforwards. Therefore, adjusted net income is calculated using only income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 9 of 9.

(2) Represents estimated income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 9 of 9.

* Percent of sales column for income taxes is calculated as a % of income before income taxes.

Page 2 of 9

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF NET INCOME
FOR THE TWELVE MONTHS ENDED APRIL 29, 2012 AND MAY 1, 2011
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
	TWELVE MONTHS ENDED
	Amounts										Percent of Sales
	April 29,			May 1,			% Over				April 29,			May 1,
	2012			2011			(Under)				2012			2011
Net sales	$	254,443			216,806			17.4		%		100.0	%		100.0	%
Cost of sales		214,711			179,966			19.3		%		84.4	%		83.0	%
Gross profit		39,732			36,840			7.9		%		15.6	%		17.0	%
Selling, general and
administrative expenses		25,026			21,069			18.8		%		9.8	%		9.7	%
Restructuring expense		-			28		N.M.					0.0	%		0.0	%
Income from operations		14,706			15,743			(6.6	)	%		5.8	%		7.3	%
Interest expense		780			881			(11.5	)	%		0.3	%		0.4	%
Interest income		(508	)		(240	)		111.7		%		(0.2	) %		(0.1	) %
Other expense		236			40			490.0		%		0.1	%		0.0	%
Income before income taxes		14,198			15,062			(5.7	)	%		5.6	%		6.9	%
Income taxes*		902			(1,102	)	N.M.					6.4	%		(7.3	) %
Net income	$	13,296			16,164			(17.7	)	%		5.2	%		7.5	%
Net income per share-basic	$	1.05		$	1.25			(16.0	)	%
Net income per share-diluted	$	1.03		$	1.22			(15.6	)	%
Average shares outstanding-basic		12,711			12,959			(1.9	)	%
Average shares outstanding-diluted		12,866			13,218			(2.7	)	%
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)
	TWELVE MONTHS ENDED
	Amounts										Percent of Sales
	April 29,			May 1,			% Over				April 29,			May 1,
	2012			2011			(Under)				2012			2011
Income before income taxes (see above)	$	14,198			15,062			(5.7	)	%		5.6	%		6.9	%
Adjusted Income taxes (2)*		2,627			2,425			8.3		%		18.5	%		16.1	%
Adjusted net income		11,571			12,637			(8.4	)	%		4.5	%		5.8	%
Adjusted net income per share-basic	$	0.91		$	0.98			(7.1	)	%
Adjusted net income per share-diluted	$	0.90		$	0.96			(6.2	)	%
Average shares outstanding-basic		12,711			12,959			(1.9	)	%
Average shares outstanding-diluted		12,866			13,218			(2.7	)	%
(1) Culp, Inc. currently does not incur cash income tax expense in the US due to its $59.9 million in net operating loss carryforwards. Therefore, adjusted net income is calculated using only income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 9 of 9.
(2) Represents estimated income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 9 of 9.
* Percent of sales column for income taxes is calculated as a % of income before income taxes.

Page 3 of 9

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED BALANCE SHEETS
APRIL 29, 2012 AND MAY 1, 2011
Unaudited
(Amounts in Thousands)
	Amounts				Increase
	Aprl 29,		* May 1,		(Decrease)
	2012		2011		Dollars			Percent
Current assets
Cash and cash equivalents	$	25,023	$	23,181		1,842			7.9	%
Short-term investments		5,941		7,699		(1,758	)		(22.8	) %
Accounts receivable		25,055		20,209		4,846			24.0	%
Inventories		36,373		28,723		7,650			26.6	%
Deferred income taxes		2,467		293		2,174			742.0	%
Assets held for sale		15		75		(60	)		(80.0	) %
Income taxes receivable		-		79		(79	)		(100.0	) %
Other current assets		1,989		2,376		(387	)		(16.3	) %
Total current assets		96,863		82,635		14,228			17.2	%
Property, plant and equipment, net		31,279		30,296		983			3.2	%
Goodwill		11,462		11,462		-			0.0	%
Deferred income taxes		3,205		3,606		(401	)		(11.1	) %
Other assets		1,907		2,052		(145	)		(7.1	) %
Total assets	$	144,716	$	130,051		14,665			11.3	%
Current liabilities
Current maturities of long-term debt	$	2,404	$	2,412		(8	)		(0.3	) %
Line of credit		889		-		889			100.0	%
Accounts payable - trade		30,663		24,871		5,792			23.3	%
Accounts payable - capital expenditures		169		140		29			20.7	%
Accrued expenses		9,321		7,617		1,704			22.4	%
Accrued restructuring		40		44		(4	)		(9.1	) %
Deferred income taxes		-		82		(82	)		(100.0	) %
Income taxes payable - current		642		646		(4	)		(0.6	) %
Total current liabilities		44,128		35,812		8,316			23.2	%
Income taxes payable - long-term		4,164		4,167		(3	)		(0.1	) %
Deferred income taxes		705		596		109			18.3	%
Long-term debt , less current maturities		6,719		9,135		(2,416	)		(26.4	) %
Total liabilities		55,716		49,710		6,006			12.1	%
Shareholders' equity		89,000		80,341		8,659			10.8	%
Total liabilities and
shareholders' equity	$	144,716	$	130,051		14,665			11.3	%
Shares outstanding		12,703		13,264		(561	)		(4.2	) %
* Derived from audited financial statements

Page 4 of 9

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED APRIL 29, 2012 AND MAY 1, 2011
Unaudited
(Amounts in Thousands)
	TWELVE MONTHS ENDED
	Amounts
	April 29,			May 1,
	2012			2011
Cash flows from operating activities:
Net income	$	13,296			16,164
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation		4,865			4,372
Amortization of other assets		243			442
Stock-based compensation		349			360
Deferred income taxes		(1,682	)		(3,390	)
Restructuring expenses, net of gain on sale of related assets		-			28
Gain on sale of equipment		(168	)		(22	)
Excess tax benefits related to stock-based compensation		(64	)		(339	)
Foreign currency exchange gains		(215	)		(115	)
Changes in assets and liabilities:
Accounts receivable		(4,792	)		(199	)
Inventories		(7,497	)		(2,579	)
Other current assets		395			(621	)
Other assets		(61	)		(3	)
Accounts payable		5,426			2,110
Accrued expenses		1,710			(2,286	)
Accrued restructuring		(4	)		(280	)
Income taxes		202			1,179
Net cash provided by operating activities		12,003			14,821
Cash flows from investing activities:
Capital expenditures		(5,890	)		(6,352	)
Purchase of short-term investments		(4,797	)		(6,713	)
Proceeds from the sale of short-term investments		6,707			2,037
Proceeds from the sale of equipment		299			79
Net cash used in investing activities		(3,681	)		(10,949	)
Cash flows from financing activities:
Proceeds from lines of credit		6,323			-
Payments on lines of credit		(5,500	)		-
Payments on vendor-financed capital expenditures		-			(377	)
Payments on long-term debt		(2,404	)		(179	)
Debt issuance costs		(37	)		(27	)
Excess tax benefits related to stock-based compensation		64			339
Repurchase of common stock		(5,384	)		-
Proceeds from common stock issued		318			769
Net cash (used in) provided by financing activities		(6,620	)		525
Effect of exchange rate changes on cash and cash equivalents		140			489
Increase in cash and cash equivalents		1,842			4,886
Cash and cash equivalents at beginning of period		23,181			18,295
Cash and cash equivalents at end of period	$	25,023			23,181
Free Cash Flow (1)	$	6,616			8,999

(1)	Free Cash Flow reconciliation is as follows:
		FY 2012			FY 2011
A)	Net cash provided by operating activities	$	12,003			14,821
B)	Minus:  Capital Expenditures		(5,890	)		(6,352	)
C)	Add:      Proceeds from the sale of equipment		299			79
D)	Minus:  Payments on vendor-financed capital expenditures		-			(377	)
E)	Add:      Excess tax benefits related to stock-based compensation		64			339
F)	Effects of exchange rate changes on cash and cash equivalents		140			489
		$	6,616			8,999

Page 5 of 9

CULP, INC. FINANCIAL INFORMATION RELEASE
STATEMENTS OF OPERATIONS BY SEGMENT
FOR THE THREE MONTHS ENDED APRIL 29, 2012 AND MAY 1, 2011
(Unaudited)
(Amounts in thousands)
	THREE MONTHS ENDED
	Amounts										Percent of Total Sales
	April 29,			May 1,				% Over			April 29,			May 1,
Net Sales by Segment	2012			2011				(Under)			2012			2011
Mattress Fabrics	$	43,389			35,187				23.3	%		57.3	%		58.3	%
Upholstery Fabrics		32,322			25,176				28.4	%		42.7	%		41.7	%
Net Sales	$	75,711			60,363				25.4	%		100.0	%		100.0	%
Gross Profit by Segment											Gross Profit Margin
Mattress Fabrics	$	8,645			7,632				13.3	%		19.9	%		21.7	%
Upholstery Fabrics		5,053			3,651				38.4	%		15.6	%		14.5	%
Gross Profit	$	13,698			11,283				21.4	%		18.1	%		18.7	%
Selling, General and Administrative expenses by Segment											Percent of Sales
Mattress Fabrics	$	2,967			2,395				23.9	%		6.8	%		6.8	%
Upholstery Fabrics		3,267			2,839				15.1	%		10.1	%		11.3	%
Unallocated Corporate expenses		1,797			1,291				39.2	%		2.4	%		2.1	%
Selling, General and Administrative expenses		8,031			6,525				23.1	%		10.6	%		10.8	%
Operating Income (loss) by Segment											Operating Income (Loss) Margin
Mattress Fabrics	$	5,678			5,236				8.4	%		13.1	%		14.9	%
Upholstery Fabrics		1,786			813				119.7	%		5.5	%		3.2	%
Unallocated corporate expenses		(1,797	)		(1,291	)			39.2	%		(2.4	) %		(2.1	) %
Subtotal		5,667			4,758				19.1	%		7.5	%		7.9	%
Restructuring expense		-			(28	)	(1)		(100.0	) %		0.0	%		(0.0	) %
Operating income	$	5,667			4,730				19.8	%		7.5	%		7.8	%
Depreciation by Segment
Mattress Fabrics	$	1,112			1,024				8.6	%
Upholstery Fabrics		152			143				6.3	%
Subtotal		1,264			1,167				8.3	%
Notes:
(1) The $28 represents an impairment charge related to equipment associated with the upholstery fabrics segment that is classified as held for sale.

Page 6 of 9

CULP, INC. FINANCIAL INFORMATION RELEASE
STATEMENTS OF OPERATIONS BY SEGMENT
FOR THE TWELVE MONTHS ENDED APRIL 29, 2012 AND MAY 1, 2011
(Unaudited)
(Amounts in thousands)
	TWELVE MONTHS ENDED
	Amounts											Percent of Total Sales
	April 29,				May 1,				% Over			April 29,			May 1,
Net Sales by Segment	2012				2011				(Under)			2012			2011
Mattress Fabrics	$	145,519				122,431				18.9	%		57.2	%		56.5	%
Upholstery Fabrics		108,924				94,375				15.4	%		42.8	%		43.5	%
Net Sales	$	254,443				216,806				17.4	%		100.0	%		100.0	%
Gross Profit by Segment												Gross Profit Margin
Mattress Fabrics	$	24,825				23,248				6.8	%		17.1	%		19.0	%
Upholstery Fabrics		14,984				13,592				10.2	%		13.8	%		14.4	%
Subtotal		39,809				36,840				8.1	%		15.6	%		17.0	%
Other non-recurring charges		(77	)	(1)		-				100.0	%		(0.0	) %		0.0	%
Gross Profit		39,732				36,840				7.9	%		15.6	%		17.0	%
Selling, General and Administrative expenses by Segment												Percent of Sales
Mattress Fabrics	$	9,061				7,875				15.1	%		6.2	%		6.4	%
Upholstery Fabrics		11,453				9,233				24.0	%		10.5	%		9.8	%
Unallocated Corporate expenses		4,512				3,961				13.9	%		1.8	%		1.8	%
Subtotal		25,026				21,069				18.8	%		9.8	%		9.7	%
Operating Income (loss) by Segment												Operating Income (Loss) Margin
Mattress Fabrics	$	15,764				15,373				2.5	%		10.8	%		12.6	%
Upholstery Fabrics		3,531				4,359				(19.0	) %		3.2	%		4.6	%
Unallocated corporate expenses		(4,512	)			(3,961	)			13.9	%		(1.8	) %		(1.8	) %
Subtotal		14,783				15,771				(6.3	) %		5.8	%		7.3	%
Other non-recurring charges		(77	)	(1)		(28	)	(2)		175.0	%		(0.0	) %		(0.0	) %
Operating income	$	14,706				15,743				(6.6	) %		5.8	%		7.3	%
Return on Capital (3)
Mattress Fabrics		29.4	%			29.5	%
Upholstery Fabrics		25.7	%			36.3	%
Unallocated Corporate		N/A				N/A
Consolidated		21.9	%			24.9	%
Capital Employed (4)
Mattress Fabrics		53,910				52,632				2.4	%
Upholstery Fabrics		14,518				10,317				40.7	%
Unallocated Corporate		(541	)			(428	)			N/A
Consolidated		67,887				62,521				8.6	%
Depreciation by Segment
Mattress Fabrics	$	4,275				3,820				11.9	%
Upholstery Fabrics		590				552				6.9	%
Subtotal		4,865				4,372				11.3	%

Notes:
(1)	The $77 represents employee termination benefits associated with our Anderson, SC plant facility.
(2)	This $28 represents an impairment charge of $28 related to equipment associated with the upholstery fabrics segment that is classified as held for sale, a charge of $24 for lease termination and other exit costs, offset by a credit of $14 for employee termination benefits, and credit of $10 for sales proceeds received on equipment with no carrying value.
(3)	See pages 7 and 8 of this financial information release for calculations.
(4)	The capital employed balances are as of April 29, 2012 and May 1, 2011.

Page 7 of 9

CULP, INC. FINANCIAL INFORMATION RELEASE

RETURN ON CAPITAL EMPLOYED BY SEGMENT

FOR THE TWELVE MONTHS ENDED APRIL 29, 2012

(Amounts in Thousands)

(Unaudited)

	Operating
	Income						Return
	Twelve Months			Average			on Avg.
	Ended			Capital			Capital
	April 29,			Employed			Employed
	2012 (1)			(3)			(2)
Mattress Fabrics	$	15,764		$	53,669			29.4	%
Upholstery Fabrics		3,531			13,758			25.7	%
(less: Unallocated Corporate)		(4,512	)		(56	)		N/A
Total	$	14,783		$	67,372			21.9	%
Average Capital Employed	As of the three Months Ended April 29, 2012												As of the three Months Ended January 29, 2012												As of the three Months Ended October 30, 2011
	Mattress			Upholstery			Unallocated						Mattress			Upholstery			Unallocated						Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total			Fabrics			Fabrics			Corporate			Total			Fabrics			Fabrics			Corporate			Total
Total assets		71,563			33,641			39,512			144,716			69,063			29,501			32,893			131,457			68,568			24,462			34,094			127,124
Total liabilities		(17,653	)		(19,123	)		(18,940	)		(55,716	)		(16,468	)		(11,929	)		(17,689	)		(46,086	)		(15,353	)		(11,253	)		(16,421	)		(43,027	)
Subtotal	$	53,910		$	14,518		$	20,572		$	89,000		$	52,595		$	17,572		$	15,204		$	85,371		$	53,215		$	13,209		$	17,673		$	84,097
Less:
Cash and cash equivalents		-			-			(25,023	)		(25,023	)		-			-			(15,096	)		(15,096	)		-			-			(13,795	)		(13,795	)
Short-term investments		-			-			(5,941	)		(5,941	)		-			-			(8,511	)		(8,511	)		-			-			(10,482	)		(10,482	)
Deferred income taxes - current		-			-			(2,467	)		(2,467	)		-			-			(2,767	)		(2,767	)		-			-			(2,659	)		(2,659	)
Income taxes receivable		-			-			-			-			-			-			-			-			-			-			(79	)		(79	)
Deferred income taxes - non-current		-			-			(3,205	)		(3,205	)		-			-			(3,903	)		(3,903	)		-			-			(4,540	)		(4,540	)
Current maturities of long-term debt		-			-			2,404			2,404			-			-			2,400			2,400			-			-			2,401			2,401
Line of credit		-			-			889			889			-			-			875			875			-			-			-			-
Deferred income taxes - current		-			-			-			-			-			-			-			-			-			-			-			-
Income taxes payable - current		-			-			642			642			-			-			208			208			-			-			373			373
Income taxes payable - long-term		-			-			4,164			4,164			-			-			4,040			4,040			-			-			4,096			4,096
Deferred income taxes - non-current		-			-			705			705			-			-			659			659			-			-			659			659
Long-term debt, less current maturities		-			-			6,719			6,719			-			-			6,766			6,766			-			-			6,818			6,818
Total Capital Employed	$	53,910		$	14,518		$	(541	)	$	67,887		$	52,595		$	17,572		$	(125	)	$	70,042		$	53,215		$	13,209		$	465		$	66,889
	As of the three Months Ended July 31, 2011												As of the three Months Ended May 1, 2011
	Mattress			Upholstery			Unallocated						Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total			Fabrics			Fabrics			Corporate			Total
Total assets		71,325			26,683			31,299			129,307			66,637			25,929			37,485			130,051
Total liabilities		(15,331	)		(13,507	)		(19,118	)		(47,956	)		(14,005	)		(15,612	)		(20,093	)		(49,710	)
Subtotal	$	55,994		$	13,176		$	12,181		$	81,351		$	52,632		$	10,317		$	17,392		$	80,341
Less:
Cash and cash equivalents		-			-			(14,570	)		(14,570	)		-			-			(23,181	)		(23,181	)
Short-term investments		-			-			(10,443	)		(10,443	)								(7,699	)		(7,699	)
Deferred income taxes - current		-			-			(1,237	)		(1,237	)		-			-			(293	)		(293	)
Income taxes receivable		-			-			(79	)		(79	)		-			-			(79	)		(79	)
Deferred income taxes - non-current		-			-			(2,191	)		(2,191	)		-			-			(3,606	)		(3,606	)
Current maturities of long-term debt		-			-			2,409			2,409			-			-			2,412			2,412
Line of credit		-			-			-			-			-			-			-			-
Deferred income taxes - current		-			-			82			82			-			-			82			82
Income taxes payable - current		-			-			345			345			-			-			646			646
Income taxes payable - long-term		-			-			4,178			4,178			-			-			4,167			4,167
Deferred income taxes - non-current		-			-			596			596			-			-			596			596
Long-term debt, less current maturities		-			-			9,079			9,079			-			-			9,135			9,135
Total Capital Employed	$	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)	$	53,669		$	13,758		$	(56	)	$	67,372

Notes:

(1) Operating income excludes restructuring and related charges--see reconciliation per page 6 of this financial information release.

(2) Return on average capital employed represents operating income for fiscal 2012 divided by average capital employed. Average capital employed does not include cash and cash equivalents, short-term investments, long-term debt, including current maturities, line of credit, 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 1,2011, July 31, 2011, October 30, 2011, January 29, 2012, and April 29, 2012.

Page 8 of 9

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						Return
	Twelve Months			Average			on 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 6 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 9 of 9

CULP, INC. FINANCIAL INFORMATION RELEASE

CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE, NET INCOME AND EARNINGS PER SHARE

FOR THE TWELVE MONTHS ENDED APRIL 29, 2012 AND MAY 1, 2011

Unaudited

(Amounts in Thousands)

		TWELVE MONTHS ENDED
		Amounts
		April 29,			May 1,
		2012			2011
Consolidated Effective GAAP Income Tax Rate	(1)		6.4	%	(7.3	)%
Reduction of U.S. Valuation Allowance			26.1	%	33.7	%
Reduction of China Valuation Allowance			-		8.4	%
Non-Cash U.S. Income Tax Expense			(13.8	)%	(20.6	)%
Non-Cash Foreign Income Tax Expense			(0.2	)%	1.9	%
Consolidated Adjusted Effective Income Tax Rate	(2)		18.5	%	16.1	%

	THREE MONTHS ENDED
	As reported					April 29, 2012		As reported						May 1, 2011
	April 29,					Proforma Net		May 1,						Proforma Net
	2012		Adjustments			of Adjustments		2011			Adjustments			of Adjustments
Income before income taxes	$	5,494				$	5,494	$	4,675					$	4,675
Income taxes (3)		2,071	$	(1,055	)		1,016		(1,315	)	$	2,068			753
Net income	$	3,423	$	1,055		$	4,478	$	5,990		$	(2,068	)	$	3,922
Net income per share-basic	$	0.27	$	(0.08	)	$	0.36	$	0.46		$	0.16		$	0.30
Net income per share-diluted	$	0.27	$	(0.08	)	$	0.35	$	0.45		$	0.16		$	0.30
Average shares outstanding-basic		12,513		12,513			12,513		13,030			13,030			13,030
Average shares outstanding-diluted		12,695		12,695			12,695		13,217			13,217			13,217

	TWELVE MONTHS ENDED
	As reported					April 29, 2012		As reported						May 1, 2011
	April 29,					Proforma Net		May 1,						Proforma Net
		2012	Adjustments			of Adjustments			2011		Adjustments			of Adjustments
Income before income taxes	$	14,198				$	14,198	$	15,062					$	15,062
Income taxes (3)		902	$	1,725			2,627		(1,102	)	$	3,527			2,425
Net income	$	13,296	$	(1,725	)	$	11,571	$	16,164		$	(3,527	)	$	12,637
Net income per share-basic	$	1.05	$	0.14		$	0.91	$	1.25		$	0.27		$	0.98
Net income per share-diluted	$	1.03	$	0.13		$	0.90	$	1.22		$	0.27		$	0.96
Average shares outstanding-basic		12,711		12,711			12,711		12,959			12,959			12,959
Average shares outstanding-diluted		12,866		12,866			12,866		13,218			13,218			13,218

(1) Calculated by dividing consolidated income tax (benefit) expense by consolidated income before income taxes.

(2) Represents estimated cash income tax expense for our subsidiaries located in Canada and China divided by consolidated income before income taxes.

(3) Proforma taxes calculated using the Consolidated Adjusted Effective Income Tax Rate as reflected above.