Exhibit 99(b)
Page 1 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF NET INCOME | |||||||||||||||||||||||
FOR THE THREE MONTHS ENDED JULY 29, 2012 AND JULY 31, 2011 | |||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||
(Amounts in Thousands, Except for Per Share Data) | |||||||||||||||||||||||
THREE MONTHS ENDED | |||||||||||||||||||||||
Amounts | Percent of Sales | ||||||||||||||||||||||
July 29, | July 31, | % Over | July 29, | July 31, | |||||||||||||||||||
2012 | 2011 | (Under) | 2012 | 2011 | |||||||||||||||||||
Net sales | $ | 69,184 | 60,270 | 14.8 | % | 100.0 | % | 100.0 | % | ||||||||||||||
Cost of sales | 56,064 | 51,392 | 9.1 | % | 81.0 | % | 85.3 | % | |||||||||||||||
Gross profit | 13,120 | 8,878 | 47.8 | % | 19.0 | % | 14.7 | % | |||||||||||||||
Selling, general and | |||||||||||||||||||||||
administrative expenses | 7,641 | 5,757 | 32.7 | % | 11.0 | % | 9.6 | % | |||||||||||||||
Income from operations | 5,479 | 3,121 | 75.6 | % | 7.9 | % | 5.2 | % | |||||||||||||||
Interest expense | 190 | 220 | (13.6 | ) | % | 0.3 | % | 0.4 | % | ||||||||||||||
Interest income | (127 | ) | (129 | ) | (1.6 | ) | % | (0.2 | ) | % | (0.2 | ) | % | ||||||||||
Other expense | 44 | 65 | (32.3 | ) | % | 0.1 | % | 0.1 | % | ||||||||||||||
Income before income taxes | 5,372 | 2,965 | 81.2 | % | 7.8 | % | 4.9 | % | |||||||||||||||
Income taxes* | 1,848 | 1,145 | 61.4 | % | 34.4 | % | 38.6 | % | |||||||||||||||
Net income | $ | 3,524 | 1,820 | 93.6 | % | 5.1 | % | 3.0 | % | ||||||||||||||
Net income per share-basic | $ | 0.28 | $ | 0.14 | 100.0 | % | |||||||||||||||||
Net income per share-diluted | $ | 0.28 | $ | 0.14 | 100.0 | % | |||||||||||||||||
Average shares outstanding-basic | 12,551 | 13,061 | (3.9 | ) | % | ||||||||||||||||||
Average shares outstanding-diluted | 12,711 | 13,205 | (3.7 | ) | % |
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1) | |||||||||||||||||||||
THREE MONTHS ENDED | |||||||||||||||||||||
Amounts | Percent of Sales | ||||||||||||||||||||
July 29, | July 31, | % Over | July 29, | July 31, | |||||||||||||||||
2012 | 2011 | (Under) | 2012 | 2011 | |||||||||||||||||
Income before income taxes (see above) | $ | 5,372 | 2,965 | 81.2 | % | 7.8 | % | 4.9 | % | ||||||||||||
Adjusted Income taxes (2)* | 1,031 | 540 | 90.9 | % | 19.2 | % | 18.2 | % | |||||||||||||
Adjusted net income | 4,341 | 2,425 | 79.0 | % | 6.3 | % | 4.0 | % | |||||||||||||
Adjusted net income per share-basic | $ | 0.35 | $ | 0.19 | 84.2 | % | |||||||||||||||
Adjusted net income per share-diluted | $ | 0.34 | $ | 0.18 | 88.9 | % | |||||||||||||||
Average shares outstanding-basic | 12,551 | 13,061 | (3.9 | ) | % | ||||||||||||||||
Average shares outstanding-diluted | 12,711 | 13,205 | (3.7 | ) | % |
(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 7 of 7.
(2) Represents estimated income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 7 of 7.
* 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 | |||||||||||||||||||||
JULY 29, 2012, JULY 31, 2011 AND APRIL 29, 2012 | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
(Amounts in Thousands) | |||||||||||||||||||||
Amounts | Increase | ||||||||||||||||||||
July 29, | July 31, | (Decrease) | * April 29, | ||||||||||||||||||
2012 | 2011 | Dollars | Percent | 2012 | |||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 21,889 | 14,570 | 7,319 | 50.2 | % | 25,023 | ||||||||||||||
Short-term investments | 5,200 | 10,443 | (5,243 | ) | (50.2 | ) | % | 5,941 | |||||||||||||
Accounts receivable | 20,021 | 18,905 | 1,116 | 5.9 | % | 25,055 | |||||||||||||||
Inventories | 44,052 | 34,858 | 9,194 | 26.4 | % | 36,373 | |||||||||||||||
Deferred income taxes | 2,337 | 1,237 | 1,100 | 88.9 | % | 2,467 | |||||||||||||||
Assets held for sale | 15 | 75 | (60 | ) | (80.0 | ) | % | 15 | |||||||||||||
Income taxes receivable | - | 79 | (79 | ) | (100.0 | ) | % | - | |||||||||||||
Other current assets | 2,563 | 2,862 | (299 | ) | (10.4 | ) | % | 1,989 | |||||||||||||
Total current assets | 96,077 | 83,029 | 13,048 | 15.7 | % | 96,863 | |||||||||||||||
Property, plant & equipment, net | 31,016 | 30,615 | 401 | 1.3 | % | 31,279 | |||||||||||||||
Goodwill | 11,462 | 11,462 | - | 0.0 | % | 11,462 | |||||||||||||||
Deferred income taxes | 2,715 | 2,191 | 524 | 23.9 | % | 3,205 | |||||||||||||||
Other assets | 1,890 | 2,010 | (120 | ) | (6.0 | ) | % | 1,907 | |||||||||||||
Total assets | $ | 143,160 | 129,307 | 13,853 | 10.7 | % | 144,716 | ||||||||||||||
Current liabilities | |||||||||||||||||||||
Current maturities of long-term debt | $ | 2,400 | 2,409 | (9 | ) | (0.4 | ) | % | 2,404 | ||||||||||||
Line of credit | 834 | - | 834 | 100.0 | % | 889 | |||||||||||||||
Accounts payable - trade | 27,284 | 25,022 | 2,262 | 9.0 | % | 30,663 | |||||||||||||||
Accounts payable - capital expenditures | 152 | 342 | (190 | ) | (55.6 | ) | % | 169 | |||||||||||||
Accrued expenses | 8,366 | 5,862 | 2,504 | 42.7 | % | 9,321 | |||||||||||||||
Accrued restructuring | 40 | 41 | (1 | ) | (2.4 | ) | % | 40 | |||||||||||||
Deferred income taxes | - | 82 | (82 | ) | (100.0 | ) | % | - | |||||||||||||
Income taxes payable - current | 751 | 345 | 406 | 117.7 | % | 642 | |||||||||||||||
Total current liabilities | 39,827 | 34,103 | 5,724 | 16.8 | % | 44,128 | |||||||||||||||
Income taxes payable - long-term | 4,131 | 4,178 | (47 | ) | (1.1 | ) | % | 4,164 | |||||||||||||
Deferred income taxes | 705 | 596 | 109 | 18.3 | % | 705 | |||||||||||||||
Long-term debt , less current maturities | 6,666 | 9,079 | (2,413 | ) | (26.6 | ) | % | 6,719 | |||||||||||||
Total liabilities | 51,329 | 47,956 | 3,373 | 7.0 | % | 55,716 | |||||||||||||||
Shareholders' equity | 91,831 | 81,351 | 10,480 | 12.9 | % | 89,000 | |||||||||||||||
Total liabilities and | |||||||||||||||||||||
shareholders' equity | $ | 143,160 | 129,307 | 13,853 | 10.7 | % | 144,716 | ||||||||||||||
Shares outstanding | 12,656 | 13,181 | (525 | ) | (4.0 | ) | % | 12,703 |
* Derived from audited financial statements.
Page 3 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
FOR THE THREE MONTHS ENDED JULY 29, 2012 AND JULY 31, 2011 | ||||||||
Unaudited | ||||||||
(Amounts in Thousands) | ||||||||
THREE MONTHS ENDED | ||||||||
Amounts | ||||||||
July 29, | July 31, | |||||||
2012 | 2011 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 3,524 | $ | 1,820 | ||||
Adjustments to reconcile net income to net cash | ||||||||
used in operating activities: | ||||||||
Depreciation | 1,254 | 1,187 | ||||||
Amortization of other assets | 60 | 56 | ||||||
Stock-based compensation | 70 | 77 | ||||||
Excess tax benefit related to stock-based compensation | (55 | ) | (31 | ) | ||||
Deferred income taxes | 675 | 502 | ||||||
Foreign currency exchange gains | (80 | ) | (39 | ) | ||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | 4,985 | 1,322 | ||||||
Inventories | (7,710 | ) | (6,080 | ) | ||||
Other current assets | (572 | ) | (486 | ) | ||||
Other assets | (43 | ) | (14 | ) | ||||
Accounts payable-trade | (3,288 | ) | 54 | |||||
Accrued expenses | (930 | ) | (1,750 | ) | ||||
Accrued restructuring | - | (3 | ) | |||||
Income taxes | 148 | (257 | ) | |||||
Net cash used in operating activities | (1,962 | ) | (3,642 | ) | ||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (1,008 | ) | (1,304 | ) | ||||
Purchase of short-term investments | (25 | ) | (4,761 | ) | ||||
Proceeds from the sale of short-term investments | 795 | 2,032 | ||||||
Net cash used in investing activities | (238 | ) | (4,033 | ) | ||||
Cash flows from financing activities: | ||||||||
Payments on long-term debt | (50 | ) | (53 | ) | ||||
Proceeds from common stock issued | - | 169 | ||||||
Common stock shares repurchased | (470 | ) | (1,102 | ) | ||||
Dividends paid | (381 | ) | - | |||||
Excess tax benefit related to stock-based compensation | 55 | 31 | ||||||
Net cash used in financing activities | (846 | ) | (955 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (88 | ) | 19 | |||||
Decrease in cash and cash equivalents | (3,134 | ) | (8,611 | ) | ||||
Cash and cash equivalents at beginning of period | 25,023 | 23,181 | ||||||
Cash and cash equivalents at end of period | $ | 21,889 | $ | 14,570 | ||||
Free Cash Flow (1) | $ | (3,003 | ) | $ | (4,896 | ) | ||
(1) Free Cash Flow reconciliation is as follows: | ||||||||
FY 2013 | FY 2012 | |||||||
A) Net cash used in operating activities | $ | (1,962 | ) | $ | (3,642 | ) | ||
B) Minus: Capital Expenditures | (1,008 | ) | (1,304 | ) | ||||
C) Add: Excess tax benefit related to stock-based compensation | 55 | 31 | ||||||
D) Effects of exchange rate changes on cash and cash equivalents | (88 | ) | 19 | |||||
$ | (3,003 | ) | $ | (4,896 | ) | |||
Page 4 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||||
STATEMENTS OF OPERATIONS BY SEGMENT | ||||||||||||||||||||||
FOR THE THREE MONTHS ENDED JULY 29, 2012 AND JULY 31, 2011 | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||||
Amounts | Percent of Total Sales | |||||||||||||||||||||
July 29, | July 31, | % Over | July 29, | July 31, | ||||||||||||||||||
Net Sales by Segment | 2012 | 2011 | (Under) | 2012 | 2011 | |||||||||||||||||
Mattress Fabrics | $ | 37,964 | 32,170 | 18.0 | % | 54.9 | % | 53.4 | % | |||||||||||||
Upholstery Fabrics | 31,220 | 28,100 | 11.1 | % | 45.1 | % | 46.6 | % | ||||||||||||||
Net Sales | $ | 69,184 | 60,270 | 14.8 | % | 100.0 | % | 100.0 | % | |||||||||||||
Gross Profit by Segment | Gross Profit Margin | |||||||||||||||||||||
Mattress Fabrics | $ | 7,622 | 5,137 | 48.4 | % | 20.1 | % | 16.0 | % | |||||||||||||
Upholstery Fabrics | 5,498 | 3,741 | 47.0 | % | 17.6 | % | 13.3 | % | ||||||||||||||
Gross Profit | 13,120 | 8,878 | 47.8 | % | 19.0 | % | 14.7 | % | ||||||||||||||
Selling, General and Administrative expenses by Segment | Percent of Sales | |||||||||||||||||||||
Mattress Fabrics | $ | 2,391 | 1,992 | 20.0 | % | 6.3 | % | 6.2 | % | |||||||||||||
Upholstery Fabrics | 3,340 | 2,766 | 20.8 | % | 10.7 | % | 9.8 | % | ||||||||||||||
Unallocated Corporate expenses | 1,910 | 999 | 91.2 | % | 2.8 | % | 1.7 | % | ||||||||||||||
Selling, general, and administrative expenses | 7,641 | 5,757 | 32.7 | % | 11.0 | % | 9.6 | % | ||||||||||||||
Operating Income (loss) by Segment | Operating Income (Loss) Margin | |||||||||||||||||||||
Mattress Fabrics | $ | 5,230 | 3,146 | 66.2 | % | 13.8 | % | 9.8 | % | |||||||||||||
Upholstery Fabrics | 2,159 | 974 | 121.7 | % | 6.9 | % | 3.5 | % | ||||||||||||||
Unallocated corporate expenses | (1,910 | ) | (999 | ) | 91.2 | % | (2.8 | ) | % | (1.7 | ) | % | ||||||||||
Operating income | 5,479 | 3,121 | 75.6 | % | 7.9 | % | 5.2 | % | ||||||||||||||
Return on Capital (1) | ||||||||||||||||||||||
Mattress Fabrics | 37.8 | % | 23.2 | % | ||||||||||||||||||
Upholstery Fabrics | 51.6 | % | 33.2 | % | ||||||||||||||||||
Unallocated Corporate | N/A | N/A | ||||||||||||||||||||
Consolidated | 30.6 | % | 18.9 | % | ||||||||||||||||||
Capital Employed (2) | ||||||||||||||||||||||
Mattress Fabrics | 56,803 | 55,994 | 1.4 | % | ||||||||||||||||||
Upholstery Fabrics | 18,967 | 13,176 | 44.0 | % | ||||||||||||||||||
Unallocated Corporate | (593 | ) | 350 | N/A | ||||||||||||||||||
Consolidated | 75,177 | 69,520 | 8.1 | % | ||||||||||||||||||
Depreciation by Segment | ||||||||||||||||||||||
Mattress Fabrics | $ | 1,092 | 1,029 | 6.1 | % | |||||||||||||||||
Upholstery Fabrics | 162 | 158 | 2.5 | % | ||||||||||||||||||
Subtotal | 1,254 | 1,187 | 5.6 | % |
Notes:
(1) See pages 5 and 6 of this financial information release for calculations.
(2) The capital employed balances are as of July 29, 2012 and July 31, 2011.
Page 5 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE |
RETURN ON CAPITAL EMPLOYED BY SEGMENT |
FOR THE THREE MONTHS ENDED JULY 29, 2012 |
(Amounts in Thousands) |
(Unaudited) |
Operating Income | ||||||||||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||||||
Ended | Average | Return on | ||||||||||||||||||||||||||||||
July 29, 2012 (1) | Capital Employed (3) | Avg. Capital Employed (2) | ||||||||||||||||||||||||||||||
Mattress Fabrics | $ | 5,230 | $ | 55,357 | 37.8 | % | ||||||||||||||||||||||||||
Upholstery Fabrics | 2,159 | 16,743 | 51.6 | % | ||||||||||||||||||||||||||||
(less: Unallocated Corporate) | (1,910 | ) | (567 | ) | N/A | |||||||||||||||||||||||||||
Total | $ | 5,479 | $ | 71,532 | 30.6 | % | ||||||||||||||||||||||||||
Average Capital Employed | As of the three Months Ended July 29, 2012 | As of the three Months Ended April 29, 2012 | ||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | |||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||
Total assets | 78,098 | 29,973 | 35,089 | 143,160 | 71,563 | 33,641 | 39,512 | 144,716 | ||||||||||||||||||||||||
Total liabilities | (21,295 | ) | (11,006 | ) | (19,028 | ) | (51,329 | ) | (17,653 | ) | (19,123 | ) | (18,940 | ) | (55,716 | ) | ||||||||||||||||
Subtotal | $ | 56,803 | $ | 18,967 | $ | 16,061 | $ | 91,831 | $ | 53,910 | $ | 14,518 | $ | 20,572 | $ | 89,000 | ||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | (21,889 | ) | (21,889 | ) | - | - | (25,023 | ) | (25,023 | ) | ||||||||||||||||||||
Short-term investments | - | - | (5,200 | ) | (5,200 | ) | - | - | (5,941 | ) | (5,941 | ) | ||||||||||||||||||||
Deferred income taxes - current | - | - | (2,337 | ) | (2,337 | ) | - | - | (2,467 | ) | (2,467 | ) | ||||||||||||||||||||
Deferred income taxes - non-current | - | - | (2,715 | ) | (2,715 | ) | - | - | (3,205 | ) | (3,205 | ) | ||||||||||||||||||||
Current maturities of long-term debt | - | - | 2,400 | 2,400 | - | - | 2,404 | 2,404 | ||||||||||||||||||||||||
Line of credit | - | - | 834 | 834 | 889 | 889 | ||||||||||||||||||||||||||
Income taxes payable - current | - | - | 751 | 751 | - | - | 642 | 642 | ||||||||||||||||||||||||
Income taxes payable - long-term | - | - | 4,131 | 4,131 | - | - | 4,164 | 4,164 | ||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | 705 | 705 | - | - | 705 | 705 | ||||||||||||||||||||||||
Long-term debt, less current maturities | - | - | 6,666 | 6,666 | - | - | 6,719 | 6,719 | ||||||||||||||||||||||||
Total Capital Employed | $ | 56,803 | $ | 18,967 | $ | (593 | ) | $ | 75,177 | $ | 53,910 | $ | 14,518 | $ | (541 | ) | $ | 67,887 | ||||||||||||||
Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||
Average Capital Employed (3) | $ | 55,357 | $ | 16,743 | $ | (567 | ) | $ | 71,532 | |||||||||||||||||||||||
Notes: |
(1) Operating income excludes restructuring and related charges--see reconciliation per page 4 of this financial information release. |
(2) Return on average capital employed represents operating income for the three month period ending July 29, 2012 times four quarters |
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, line of credit, current and noncurrent deferred tax assets and liabilities, and |
income taxes payable. |
(3) Average capital employed was computed using the two periods ending July 29, 2012 and April 29, 2012. |
Page 6 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE |
RETURN ON CAPITAL EMPLOYED BY SEGMENT |
FOR THE THREE MONTHS ENDED JULY 31, 2011 |
(Amounts in Thousands) |
(Unaudited) |
Operating Income | ||||||||||||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||||||
Ended | Average | Return on | ||||||||||||||||||||||||||||||
July 31, 2011 (1) | Capital Employed (3) | Avg. Capital Employed (2) | ||||||||||||||||||||||||||||||
Mattress Fabrics | $ | 3,146 | $ | 54,313 | 23.2 | % | ||||||||||||||||||||||||||
Upholstery Fabrics | 974 | 11,747 | 33.2 | % | ||||||||||||||||||||||||||||
(less: Unallocated Corporate) | (999 | ) | (39 | ) | N/A | |||||||||||||||||||||||||||
Total | $ | 3,121 | $ | 66,021 | 18.9 | % | ||||||||||||||||||||||||||
Average Capital Employed | 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 | ) | - | - | (1,381 | ) | (1,381 | ) | ||||||||||||||||||||
Income taxes receivable | - | - | (79 | ) | (79 | ) | - | - | (79 | ) | (79 | ) | ||||||||||||||||||||
Deferred income taxes - non-current | - | - | (2,191 | ) | (2,191 | ) | - | - | (2,518 | ) | (2,518 | ) | ||||||||||||||||||||
Current maturities of long-term debt | - | - | 2,409 | 2,409 | - | - | 2,412 | 2,412 | ||||||||||||||||||||||||
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) | $ | 54,313 | $ | 11,747 | $ | (39 | ) | $ | 66,021 | |||||||||||||||||||||||
Notes: |
(1) Operating income excludes restructuring and related charges--see reconciliation per page 4 of this financial information release. |
(2) Return on average capital employed represents operating income for the three month period ending July 31, 2011 times four quarters |
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 two periods ending July 31, 2011 and May 1, 2011. |
Page 7 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE |
CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE, NET INCOME AND EARNINGS PER SHARE |
FOR THE THREE MONTHS ENDED JULY 29, 2012 AND JULY 31, 2011 |
Unaudited |
(Amounts in Thousands) |
THREE MONTHS ENDED | |||||||||||
Amounts | |||||||||||
July 29, | July 31 | ||||||||||
2012 | 2011 | ||||||||||
Consolidated Effective GAAP Income Tax Rate | (1 | ) | 34.4 | % | 38.6 | % | |||||
Non-Cash U.S. Income Tax Expense | (15.0 | ) % | (18.5 | ) % | |||||||
Non-Cash Foreign Income Tax Expense | (0.2 | ) % | (1.9 | ) % | |||||||
Consolidated Adjusted Effective Income Tax Rate | (2 | ) | 19.2 | % | 18.2 | % |
THREE MONTHS ENDED | ||||||||||||||||||||||||
As reported | July 29, 2012 | As reported | July 31, 2011 | |||||||||||||||||||||
July 29, | Proforma Net | July 31, | Proforma Net | |||||||||||||||||||||
2012 | Adjustments | of Adjustments | 2011 | Adjustments | of Adjustments | |||||||||||||||||||
Income before income taxes | $ | 5,372 | $ | - | $ | 5,372 | $ | 2,965 | $ | - | $ | 2,965 | ||||||||||||
Income taxes (3) | 1,848 | $ | (817 | ) | $ | 1,031 | 1,145 | $ | (605 | ) | 540 | |||||||||||||
Net income | $ | 3,524 | $ | 817 | $ | 4,341 | $ | 1,820 | $ | 605 | $ | 2,425 | ||||||||||||
Net income per share-basic | $ | 0.28 | $ | (0.07 | ) | $ | 0.35 | $ | 0.14 | $ | (0.05 | ) | $ | 0.19 | ||||||||||
Net income per share-diluted | $ | 0.28 | $ | (0.06 | ) | $ | 0.34 | $ | 0.14 | $ | (0.05 | ) | $ | 0.18 | ||||||||||
Average shares outstanding-basic | 12,551 | 12,551 | 12,551 | 13,061 | 13,061 | 13,061 | ||||||||||||||||||
Average shares outstanding-diluted | 12,711 | 12,711 | 12,711 | 13,205 | 13,205 | 13,205 |
(1) Calculated by dividing consolidated income tax expense by consolidated income before income taxes. | |||||||||||||||||
(2) Represents estimated 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. |