Exhibit 99(b)
Page 1 of 9
CULP, INC. FINANCIAL INFORMATION RELEASE |
CONSOLIDATED STATEMENTS OF NET INCOME |
FOR THREE MONTHS ENDED OCTOBER 28, 2012 AND OCTOBER 30, 2011 |
(UNAUDITED) |
(Amounts in Thousands, Except for Per Share Data) |
THREE MONTHS ENDED | ||||||||||||||||||||
Amounts | Percent of Sales | |||||||||||||||||||
October 28, | October 30, | % Over | October 28, | October 30, | ||||||||||||||||
2012 | 2011 | (Under) | 2012 | 2011 | ||||||||||||||||
Net sales | $ | 65,560 | 58,013 | 13.0 | % | 100.0 | % | 100.0 | % | |||||||||||
Cost of sales | 53,683 | 49,367 | 8.7 | % | 81.9 | % | 85.1 | % | ||||||||||||
Gross profit | 11,877 | 8,646 | 37.4 | % | 18.1 | % | 14.9 | % | ||||||||||||
Selling, general and | ||||||||||||||||||||
administrative expenses | 7,209 | 5,720 | 26.0 | % | 11.0 | % | 9.9 | % | ||||||||||||
Income from operations | 4,668 | 2,926 | 59.5 | % | 7.1 | % | 5.0 | % | ||||||||||||
Interest expense | 156 | 188 | (17.0 | ) | % | 0.2 | % | 0.3 | % | |||||||||||
Interest income | (96 | ) | (110 | ) | (12.7 | ) | % | (0.1 | ) | % | (0.2 | ) | % | |||||||
Other expense (income) | 76 | (15 | ) | N.M. | 0.1 | % | (0.0 | ) | % | |||||||||||
Income before income taxes | 4,532 | 2,863 | 58.3 | % | 6.9 | % | 4.9 | % | ||||||||||||
Income taxes* | (3,736 | ) | (3,389 | ) | 10.2 | % | (82.4 | ) | % | (118.4 | ) | % | ||||||||
Net income | $ | 8,268 | 6,252 | 32.2 | % | 12.6 | % | 10.8 | % | |||||||||||
Net income per share-basic | $ | 0.68 | $ | 0.49 | 38.8 | % | ||||||||||||||
Net income per share-diluted | $ | 0.67 | $ | 0.49 | 36.7 | % | ||||||||||||||
Average shares outstanding-basic | 12,191 | 12,733 | (4.3 | ) | % | |||||||||||||||
Average shares outstanding-diluted | 12,348 | 12,871 | (4.1 | ) | % | |||||||||||||||
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1) | |||||||||||||||||||||||
THREE MONTHS ENDED | |||||||||||||||||||||||
Amounts | Percent of Sales | ||||||||||||||||||||||
October 28, | October 30, | % Over | October 28, | October 30, | |||||||||||||||||||
2012 | 2011 | (Under) | 2012 | 2011 | |||||||||||||||||||
Income before income taxes (see above) | $ | 4,532 | 2,863 | 58.3 | % | 6.9 | % | 4.9 | % | ||||||||||||||
Adjusted Income taxes (2)* | 680 | 515 | 32.0 | % | 15.0 | % | 18.0 | % | |||||||||||||||
Adjusted net income | 3,852 | 2,348 | 64.1 | % | 5.9 | % | 4.0 | % | |||||||||||||||
Adjusted net income per share-basic | $ | 0.32 | $ | 0.18 | 77.8 | % | |||||||||||||||||
Adjusted net income per share-diluted | $ | 0.31 | $ | 0.18 | 72.2 | % | |||||||||||||||||
Average shares outstanding-basic | 12,191 | 12,733 | (4.3 | ) | % | ||||||||||||||||||
Average shares outstanding-diluted | 12,348 | 12,871 | (4.1 | ) | % | ||||||||||||||||||
(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 SIX MONTHS ENDED OCTOBER 28, 2012 AND OCTOBER 30, 2011 |
(UNAUDITED) |
(Amounts in Thousands, Except for Per Share Data) |
SIX MONTHS ENDED | |||||||||||||||||||||||
Amounts | Percent of Sales | ||||||||||||||||||||||
October 28, | October 30, | % Over | October 28, | October 30, | |||||||||||||||||||
2012 | 2011 | (Under) | 2012 | 2011 | |||||||||||||||||||
Net sales | $ | 134,744 | 118,283 | 13.9 | % | 100.0 | % | 100.0 | % | ||||||||||||||
Cost of sales | 109,746 | 100,759 | 8.9 | % | 81.4 | % | 85.2 | % | |||||||||||||||
Gross profit | 24,998 | 17,524 | 42.7 | % | 18.6 | % | 14.8 | % | |||||||||||||||
Selling, general and | |||||||||||||||||||||||
administrative expenses | 14,850 | 11,477 | 29.4 | % | 11.0 | % | 9.7 | % | |||||||||||||||
Income from operations | 10,148 | 6,047 | 67.8 | % | 7.5 | % | 5.1 | % | |||||||||||||||
Interest expense | 346 | 409 | (15.4 | ) | % | 0.3 | % | 0.3 | % | ||||||||||||||
Interest income | (222 | ) | (238 | ) | (6.7 | ) | % | (0.2 | ) | % | (0.2 | ) | % | ||||||||||
Other expense | 121 | 49 | 146.9 | % | 0.1 | % | 0.0 | % | |||||||||||||||
Income before income taxes | 9,903 | 5,827 | 70.0 | % | 7.3 | % | 4.9 | % | |||||||||||||||
Income taxes* | (1,889 | ) | (2,244 | ) | (15.8 | ) | % | (19.1 | ) | % | (38.5 | ) | % | ||||||||||
Net income | $ | 11,792 | 8,071 | 46.1 | % | 8.8 | % | 6.8 | % | ||||||||||||||
Net income per share-basic | $ | 0.95 | $ | 0.63 | 50.8 | % | |||||||||||||||||
Net income per share-diluted | $ | 0.94 | $ | 0.62 | 51.6 | % | |||||||||||||||||
Average shares outstanding-basic | 12,371 | 12,898 | (4.1 | ) | % | ||||||||||||||||||
Average shares outstanding-diluted | 12,541 | 13,025 | (3.7 | ) | % | ||||||||||||||||||
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1) | |||||||||||||||||||||||
SIX MONTHS ENDED | |||||||||||||||||||||||
Amounts | Percent of Sales | ||||||||||||||||||||||
October 28, | October 30, | % Over | October 28, | October 30, | |||||||||||||||||||
2012 | 2011 | (Under) | 2012 | 2011 | |||||||||||||||||||
Income before income taxes (see above) | $ | 9,903 | 5,827 | 70.0 | % | 7.3 | % | 4.9 | % | ||||||||||||||
Adjusted Income taxes (2)* | 1,485 | 1,049 | 41.6 | % | 15.0 | % | 18.0 | % | |||||||||||||||
Adjusted net income | 8,418 | 4,778 | 76.2 | % | 6.2 | % | 4.0 | % | |||||||||||||||
Adjusted net income per share-basic | $ | 0.68 | $ | 0.37 | 83.8 | % | |||||||||||||||||
Adjusted net income per share-diluted | $ | 0.67 | $ | 0.37 | 81.1 | % | |||||||||||||||||
Average shares outstanding-basic | 12,371 | 12,898 | (4.1 | ) | % | ||||||||||||||||||
Average shares outstanding-diluted | 12,541 | 13,025 | (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 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 | ||||||||||||||||||||
OCTOBER 28, 2012, OCTOBER 30, 2011 AND APRIL 29, 2012 | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
(Amounts in Thousands) | ||||||||||||||||||||
Amounts | Increase | |||||||||||||||||||
October 28, | October 30, | (Decrease) | * April 29, | |||||||||||||||||
2012 | 2011 | Dollars | Percent | 2012 | ||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 23,464 | 13,795 | 9,669 | 70.1 | % | 25,023 | |||||||||||||
Short-term investments | 5,241 | 10,482 | (5,241 | ) | (50.0 | ) % | 5,941 | |||||||||||||
Accounts receivable | 20,678 | 16,241 | 4,437 | 27.3 | % | 25,055 | ||||||||||||||
Inventories | 38,261 | 33,776 | 4,485 | 13.3 | % | 36,373 | ||||||||||||||
Deferred income taxes | 4,470 | 2,659 | 1,811 | 68.1 | % | 2,467 | ||||||||||||||
Assets held for sale | - | 75 | (75 | ) | (100.0 | ) % | 15 | |||||||||||||
Income taxes receivable | - | 79 | (79 | ) | (100.0 | ) % | - | |||||||||||||
Other current assets | 1,640 | 1,602 | 38 | 2.4 | % | 1,989 | ||||||||||||||
Total current assets | 93,754 | 78,709 | 15,045 | 19.1 | % | 96,863 | ||||||||||||||
�� | ||||||||||||||||||||
Property, plant & equipment, net | 30,621 | 30,431 | 190 | 0.6 | % | 31,279 | ||||||||||||||
Goodwill | 11,462 | 11,462 | - | 0.0 | % | 11,462 | ||||||||||||||
Deferred income taxes | 4,738 | 4,540 | 198 | 4.4 | % | 3,205 | ||||||||||||||
Other assets | 1,868 | 1,982 | (114 | ) | (5.8 | ) % | 1,907 | |||||||||||||
Total assets | $ | 142,443 | 127,124 | 15,319 | 12.1 | % | 144,716 | |||||||||||||
Current liabilities | ||||||||||||||||||||
Current maturities of long-term debt | $ | 2,401 | 2,401 | - | 0.0 | % | 2,404 | |||||||||||||
Line of credit | 875 | - | 875 | 100.0 | % | 889 | ||||||||||||||
Accounts payable - trade | 23,219 | 21,689 | 1,530 | 7.1 | % | 30,663 | ||||||||||||||
Accounts payable - capital expenditures | 104 | 112 | (8 | ) | (7.1 | ) % | 169 | |||||||||||||
Accrued expenses | 10,611 | 6,839 | 3,772 | 55.2 | % | 9,321 | ||||||||||||||
Accrued restructuring | - | 40 | (40 | ) | (100.0 | ) % | 40 | |||||||||||||
Income taxes payable - current | 385 | 373 | 12 | 3.2 | % | 642 | ||||||||||||||
Total current liabilities | 37,595 | 31,454 | 6,141 | 19.5 | % | 44,128 | ||||||||||||||
Income taxes payable - long-term | 4,188 | 4,096 | 92 | 2.2 | % | 4,164 | ||||||||||||||
Deferred income taxes | 856 | 659 | 197 | 29.9 | % | 705 | ||||||||||||||
Long-term debt , less current maturities | 4,416 | 6,818 | (2,402 | ) | (35.2 | ) % | 6,719 | |||||||||||||
Total liabilities | 47,055 | 43,027 | 4,028 | 9.4 | % | 55,716 | ||||||||||||||
Shareholders' equity | 95,388 | 84,097 | 11,291 | 13.4 | % | 89,000 | ||||||||||||||
Total liabilities and | ||||||||||||||||||||
shareholders' equity | $ | 142,443 | 127,124 | 15,319 | 12.1 | % | 144,716 | |||||||||||||
Shares outstanding | 12,209 | 12,767 | (558 | ) | (4.4 | ) % | 12,703 | |||||||||||||
* Derived from audited financial statements. |
Page 4 of 9
CULP, INC. FINANCIAL INFORMATION RELEASE |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
FOR THE SIX MONTHS ENDED OCTOBER 28, 2012 AND OCTOBER 30, 2011 |
Unaudited |
(Amounts in Thousands) |
SIX MONTHS ENDED | ||||||||
Amounts | ||||||||
October 28, | October 30, | |||||||
2012 | 2011 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 11,792 | $ | 8,071 | ||||
Adjustments to reconcile net income to net cash | ||||||||
provided by operating activities: | ||||||||
Depreciation | 2,539 | 2,386 | ||||||
Amortization of other assets | 119 | 127 | ||||||
Stock-based compensation | 197 | 178 | ||||||
Excess tax benefit related to stock-based compensation | (60 | ) | (39 | ) | ||||
Deferred income taxes | (3,325 | ) | (3,280 | ) | ||||
Gain on sale of equipment | - | (128 | ) | |||||
Foreign currency exchange gains | (66 | ) | (164 | ) | ||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | 4,353 | 4,004 | ||||||
Inventories | (1,882 | ) | (4,964 | ) | ||||
Other current assets | 373 | 750 | ||||||
Other assets | (80 | ) | (31 | ) | ||||
Accounts payable-trade | (7,397 | ) | (3,382 | ) | ||||
Accrued expenses | 1,310 | (754 | ) | |||||
Accrued restructuring | (40 | ) | (4 | ) | ||||
Income taxes | (183 | ) | (189 | ) | ||||
Net cash provided by operating activities | 7,650 | 2,581 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (1,946 | ) | (2,551 | ) | ||||
Proceeds from the sale of equipment | - | 130 | ||||||
Purchase of short-term investments | (54 | ) | (4,789 | ) | ||||
Proceeds from the sale of short-term investments | 795 | 2,032 | ||||||
Net cash used in investing activities | (1,205 | ) | (5,178 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from lines of credit | 1,000 | 3,500 | ||||||
Payments on lines of credit | (1,000 | ) | (3,500 | ) | ||||
Payments on long-term debt | (2,300 | ) | (2,305 | ) | ||||
Proceeds from common stock issued | 64 | 237 | ||||||
Common stock shares repurchased | (5,022 | ) | (4,776 | ) | ||||
Dividends paid | (747 | ) | - | |||||
Debt issance costs | - | (26 | ) | |||||
Excess tax benefit related to stock-based compensation | 60 | 39 | ||||||
Net cash used in financing activities | (7,945 | ) | (6,831 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (59 | ) | 42 | |||||
Decrease in cash and cash equivalents | (1,559 | ) | (9,386 | ) | ||||
Cash and cash equivalents at beginning of period | 25,023 | 23,181 | ||||||
Cash and cash equivalents at end of period | $ | 23,464 | $ | 13,795 | ||||
Free Cash Flow (1) | $ | 5,705 | $ | 241 |
(1) | Free Cash Flow reconciliation is as follows: | ||||||||
FY 2013 | FY 2012 | ||||||||
A) | Net cash provided by operating activities | $ | 7,650 | $ | 2,581 | ||||
B) | Minus: Capital Expenditures | (1,946 | ) | (2,551 | ) | ||||
C) | Add: Proceeds from the sale of equipment | - | 130 | ||||||
D) | Add: Excess tax benefit related to stock-based compensation | 60 | 39 | ||||||
E) | Effect of exchange rate changes on cash and cash equivalents | (59 | ) | 42 | |||||
$ | 5,705 | $ | 241 | ||||||
Page 5 of 9
CULP, INC. FINANCIAL INFORMATION RELEASE |
STATEMENTS OF OPERATIONS BY SEGMENT |
FOR THE THREE MONTHS ENDED OCTOBER 28, 2012 AND OCTOBER 30, 2011 |
(Unaudited) |
(Amounts in thousands) |
THREE MONTHS ENDED | ||||||||||||||||||||||
Amounts | Percent of Total Sales | |||||||||||||||||||||
October 28, | October 30, | % Over | October 28, | October 30, | ||||||||||||||||||
Net Sales by Segment | 2012 | 2011 | (Under) | 2012 | 2011 | |||||||||||||||||
Mattress Fabrics | $ | 39,697 | 35,242 | 12.6 | % | 60.6 | % | 60.7 | % | |||||||||||||
Upholstery Fabrics | 25,863 | 22,771 | 13.6 | % | 39.4 | % | 39.3 | % | ||||||||||||||
Net Sales | $ | 65,560 | 58,013 | 13.0 | % | 100.0 | % | 100.0 | % | |||||||||||||
Gross Profit by Segment | Gross Profit Margin | |||||||||||||||||||||
Mattress Fabrics | $ | 7,539 | 5,938 | 27.0 | % | 19.0 | % | 16.8 | % | |||||||||||||
Upholstery Fabrics | 4,338 | 2,785 | 55.8 | % | 16.8 | % | 12.2 | % | ||||||||||||||
Subtotal | 11,877 | 8,723 | 36.2 | % | 18.1 | % | 15.0 | % | ||||||||||||||
Other non-recurring charges | - | (77 | ) | (1) | (100.0 | ) % | 0.0 | % | (0.1 | ) % | ||||||||||||
Gross Profit | $ | 11,877 | 8,646 | 37.4 | % | 18.1 | % | 14.9 | % | |||||||||||||
Selling, General and Administrative expenses by Segment | Percent of Sales | |||||||||||||||||||||
Mattress Fabrics | $ | 2,424 | 2,132 | 13.7 | % | 6.1 | % | 6.0 | % | |||||||||||||
Upholstery Fabrics | 3,157 | 2,766 | 14.1 | % | 12.2 | % | 12.1 | % | ||||||||||||||
Unallocated Corporate expenses | 1,628 | 822 | 98.1 | % | 2.5 | % | 1.4 | % | ||||||||||||||
Selling, General and Administrative expenses | 7,209 | 5,720 | 26.0 | % | 11.0 | % | 9.9 | % | ||||||||||||||
Operating Income (loss) by Segment | Operating Income (Loss) Margin | |||||||||||||||||||||
Mattress Fabrics | $ | 5,115 | 3,806 | 34.4 | % | 12.9 | % | 10.8 | % | |||||||||||||
Upholstery Fabrics | 1,181 | 19 | N.M. | 4.6 | % | 0.1 | % | |||||||||||||||
Unallocated corporate expenses | (1,628 | ) | (822 | ) | 98.1 | % | (2.5 | ) | % | (1.4 | ) % | |||||||||||
Subtotal | 4,668 | 3,003 | 55.4 | % | 7.1 | % | 5.2 | % | ||||||||||||||
Other non-recurring charges | - | (77 | ) | (1) | (100.0 | ) % | 0.0 | % | (0.1 | ) % | ||||||||||||
Operating income | $ | 4,668 | 2,926 | 59.5 | % | 7.1 | % | 5.0 | % | |||||||||||||
Depreciation by Segment | ||||||||||||||||||||||
Mattress Fabrics | $ | 1,127 | 1,054 | 6.9 | % | |||||||||||||||||
Upholstery Fabrics | 158 | 146 | 8.2 | % | ||||||||||||||||||
Subtotal | 1,285 | 1,200 | 7.1 | % | ||||||||||||||||||
Notes: | ||||||||||||||||||||||
(1) The $77 represents employee termination benefits associated with our Anderson, SC plant facility. |
Page 6 of 9
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||||||||
STATEMENTS OF OPERATIONS BY SEGMENT | ||||||||||||||||||||||||||
FOR THE SIX MONTHS ENDED OCTOBER 28, 2012 AND OCTOBER 30, 2011 | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||||
SIX MONTHS ENDED | ||||||||||||||||||||||||||
Amounts | Percent of Total Sales | |||||||||||||||||||||||||
October 28, | October 30, | % Over | October 28, | October 30, | ||||||||||||||||||||||
Net Sales by Segment | 2012 | 2011 | (Under) | 2012 | 2011 | |||||||||||||||||||||
Mattress Fabrics | $ | 77,662 | 67,412 | 15.2 | % | 57.6 | % | 57.0 | % | |||||||||||||||||
Upholstery Fabrics | 57,082 | 50,871 | 12.2 | % | 42.4 | % | 43.0 | % | ||||||||||||||||||
Net Sales | $ | 134,744 | 118,283 | 13.9 | % | 100.0 | % | 100.0 | % | |||||||||||||||||
Gross Profit by Segment | Gross Profit Margin | |||||||||||||||||||||||||
Mattress Fabrics | $ | 15,161 | 11,076 | 36.9 | % | 19.5 | % | 16.4 | % | |||||||||||||||||
Upholstery Fabrics | 9,837 | 6,525 | 50.8 | % | 17.2 | % | 12.8 | % | ||||||||||||||||||
Subtotal | 24,998 | 17,601 | 42.0 | % | 18.6 | % | 14.9 | % | ||||||||||||||||||
Other non-recurring charges | - | (77 | ) | (1 | ) | (100.0 | ) % | 0.0 | % | (0.0 | ) % | |||||||||||||||
Gross Profit | 24,998 | 17,524 | 42.7 | % | 18.6 | % | 14.8 | % | ||||||||||||||||||
Selling, General and Administrative expenses by Segment | Percent of Sales | |||||||||||||||||||||||||
Mattress Fabrics | $ | 4,814 | 4,123 | 16.8 | % | 6.2 | % | 6.1 | % | |||||||||||||||||
Upholstery Fabrics | 6,498 | 5,534 | 17.4 | % | 11.4 | % | 10.9 | % | ||||||||||||||||||
Unallocated Corporate expenses | 3,538 | 1,820 | 94.4 | % | 2.6 | % | 1.5 | % | ||||||||||||||||||
Subtotal | 14,850 | 11,477 | 29.4 | % | 11.0 | % | 9.7 | % | ||||||||||||||||||
Operating Income (loss) by Segment | Operating Income (Loss) Margin | |||||||||||||||||||||||||
Mattress Fabrics | $ | 10,347 | 6,953 | 48.8 | % | 13.3 | % | 10.3 | % | |||||||||||||||||
Upholstery Fabrics | 3,339 | 991 | 236.9 | % | 5.8 | % | 1.9 | % | ||||||||||||||||||
Unallocated corporate expenses | (3,538 | ) | (1,820 | ) | 94.4 | % | (2.6 | ) % | (1.5 | ) % | ||||||||||||||||
Subtotal | 10,148 | 6,124 | 65.7 | % | 7.5 | % | 5.2 | % | ||||||||||||||||||
Other non-recurring charges | - | (1 | ) | (77 | ) | (1 | ) | (100.0 | ) % | 0.0 | % | (0.1 | ) % | |||||||||||||
Operating income | $ | 10,148 | 6,047 | 67.8 | % | 7.5 | % | 5.1 | % | |||||||||||||||||
Return on Capital (2) | ||||||||||||||||||||||||||
Mattress Fabrics | 37.4 | % | 25.8 | % | ||||||||||||||||||||||
Upholstery Fabrics | 39.9 | % | 16.2 | % | ||||||||||||||||||||||
Unallocated Corporate | N/A | N/A | ||||||||||||||||||||||||
Consolidated | 28.5 | % | 18.5 | % | ||||||||||||||||||||||
Capital Employed (3) | ||||||||||||||||||||||||||
Mattress Fabrics | 55,102 | 53,215 | 3.5 | % | ||||||||||||||||||||||
Upholstery Fabrics | 16,728 | 13,209 | 26.6 | % | ||||||||||||||||||||||
Unallocated Corporate | (1,234 | ) | 465 | N/A | ||||||||||||||||||||||
Consolidated | 70,596 | 66,889 | 5.5 | % | ||||||||||||||||||||||
Depreciation by Segment | ||||||||||||||||||||||||||
Mattress Fabrics | $ | 2,219 | 2,082 | 6.6 | % | |||||||||||||||||||||
Upholstery Fabrics | 320 | 304 | 5.3 | % | ||||||||||||||||||||||
Subtotal | 2,539 | 2,386 | 6.4 | % |
Notes: |
(1) The $77 represents employee termination benefits associated with our Anderson, SC plant facility. |
(2) See pages 7 and 8 of this financial information release for calculations. |
(3) The capital employed balances are as of October 28, 2012 and October 30, 2011. |
Page 7 of 9
CULP, INC. FINANCIAL INFORMATION RELEASE |
RETURN ON CAPITAL EMPLOYED BY SEGMENT |
FOR THE SIX MONTHS ENDED OCTOBER 28, 2012 |
(Amounts in Thousands) |
(Unaudited) |
Operating Income | ||||||||||||||||||||||||||||||||||||||||||||||||
Six Months | Return | |||||||||||||||||||||||||||||||||||||||||||||||
Ended | Average | on Avg. | ||||||||||||||||||||||||||||||||||||||||||||||
October 28, 2012 (1) | Capital Employed (3) | Capital Employed (2) | ||||||||||||||||||||||||||||||||||||||||||||||
Mattress Fabrics | $ | 10,347 | $ | 55,272 | 37.4 | % | ||||||||||||||||||||||||||||||||||||||||||
Upholstery Fabrics | 3,339 | 16,738 | 39.9 | % | ||||||||||||||||||||||||||||||||||||||||||||
(less: Unallocated Corporate) | (3,538 | ) | (789 | ) | N/A | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 10,148 | $ | 71,220 | 28.5 | % | ||||||||||||||||||||||||||||||||||||||||||
Average Capital Employed | As of the three Months Ended October 28, 2012 | As of the three Months Ended July 29, 2012 | As of the three Months Ended April 29, 2012 | |||||||||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||||||||||
Total assets | 74,342 | 27,240 | 40,861 | 142,443 | 78,098 | 29,973 | 35,089 | 143,160 | 71,563 | 33,641 | 39,512 | 144,716 | ||||||||||||||||||||||||||||||||||||
Total liabilities | (19,240 | ) | (10,512 | ) | (17,303 | ) | (47,055 | ) | (21,295 | ) | (11,006 | ) | (19,028 | ) | (51,329 | ) | (17,653 | ) | (19,123 | ) | (18,940 | ) | (55,716 | ) | ||||||||||||||||||||||||
Subtotal | $ | 55,102 | $ | 16,728 | $ | 23,558 | $ | 95,388 | $ | 56,803 | $ | 18,967 | $ | 16,061 | $ | 91,831 | $ | 53,910 | $ | 14,518 | $ | 20,572 | $ | 89,000 | ||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | (23,464 | ) | (23,464 | ) | - | - | (21,889 | ) | (21,889 | ) | - | - | (25,023 | ) | (25,023 | ) | ||||||||||||||||||||||||||||||
Short-term investments | - | - | (5,241 | ) | (5,241 | ) | - | - | (5,200 | ) | (5,200 | ) | - | - | (5,941 | ) | (5,941 | ) | ||||||||||||||||||||||||||||||
Deferred income taxes - current | - | - | (4,470 | ) | (4,470 | ) | - | - | (2,337 | ) | (2,337 | ) | - | - | (2,467 | ) | (2,467 | ) | ||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | (4,738 | ) | (4,738 | ) | - | - | (2,715 | ) | (2,715 | ) | - | - | (3,205 | ) | (3,205 | ) | ||||||||||||||||||||||||||||||
Current maturities of long-term debt | - | - | 2,401 | 2,401 | - | - | 2,400 | 2,400 | - | - | 2,404 | 2,404 | ||||||||||||||||||||||||||||||||||||
Line of credit | - | - | 875 | 875 | - | - | 834 | 834 | 889 | 889 | ||||||||||||||||||||||||||||||||||||||
Income taxes payable - current | - | - | 385 | 385 | - | - | 751 | 751 | - | - | 642 | 642 | ||||||||||||||||||||||||||||||||||||
Income taxes payable - long-term | - | - | 4,188 | 4,188 | - | - | 4,131 | 4,131 | - | - | 4,164 | 4,164 | ||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | 856 | 856 | - | - | 705 | 705 | - | - | 705 | 705 | ||||||||||||||||||||||||||||||||||||
Long-term debt, less current maturities | - | - | 4,416 | 4,416 | - | - | 6,666 | 6,666 | - | - | 6,719 | 6,719 | ||||||||||||||||||||||||||||||||||||
Total Capital Employed | $ | 55,102 | $ | 16,728 | $ | (1,234 | ) | $ | 70,596 | $ | 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) | $ | 55,272 | $ | 16,738 | $ | (789 | ) | $ | 71,220 | |||||||||||||||||||||||||||||||||||||||
Notes: |
(1) See reconciliation per page 6 of this financial information release. |
(2) Return on average capital employed represents operating income for the six month period ending October 28, 2012 times two 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 three periods ending October 28, 2012, July 29, 2012 and April 29, 2012. |
Page 8 of 9
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 | Return | |||||||||||||||||||||||||||||||||||||||||||||||
Ended | Average | on Avg. | ||||||||||||||||||||||||||||||||||||||||||||||
October 30, 2011 (1) | Capital Employed (3) | Capital Employed (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 6 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 9 of 9
CULP, INC. FINANCIAL INFORMATION RELEASE |
CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE, NET INCOME AND EARNINGS PER SHARE |
FOR THE SIX MONTHS ENDED OCTOBER 28, 2012 AND OCTOBER 30, 2011 |
Unaudited |
(Amounts in Thousands) |
SIX MONTHS ENDED | ||||||||||||||||||||||
Amounts | ||||||||||||||||||||||
October 28, | October 30, | |||||||||||||||||||||
2012 | 2011 | |||||||||||||||||||||
Consolidated Effective GAAP Income Tax Rate | (1 | ) | (19.1 | )% | (38.5 | )% | ||||||||||||||||
Reduction of U.S. Valuation Allowance | 123.0 | % | 74.9 | % | ||||||||||||||||||
Undistributed earnings from foreign subsidiaries | (66.5 | )% | - | |||||||||||||||||||
Non-Cash U.S. Income Tax Expense | (20.4 | )% | (17.3 | )% | ||||||||||||||||||
Non-Cash Foreign Income Tax Expense | (2.0 | )% | (1.1 | )% | ||||||||||||||||||
Consolidated Adjusted Effective Income Tax Rate | (2 | ) | 15.0 | % | 18.0 | % | ||||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||||||||
As reported | October 28, 2012 | As reported | October 30, 2011 | |||||||||||||||||||||||
October 28, | Proforma Net | October 30, | Proforma Net | |||||||||||||||||||||||
2012 | Adjustments | of Adjustments | 2011 | Adjustments | of Adjustments | |||||||||||||||||||||
Income before income taxes | $ | 4,532 | $ | - | $ | 4,532 | $ | 2,863 | $ | 2,863 | ||||||||||||||||
Income taxes (3) | (3,736 | ) | $ | 4,416 | 680 | (3,389 | ) | $ | 3,904 | 515 | ||||||||||||||||
Net income | $ | 8,268 | $ | (4,416 | ) | $ | 3,852 | $ | 6,252 | $ | (3,904 | ) | $ | 2,348 | ||||||||||||
Net income per share-basic | $ | 0.68 | $ | 0.36 | $ | 0.32 | $ | 0.49 | $ | 0.31 | $ | 0.18 | ||||||||||||||
Net income per share-diluted | $ | 0.67 | $ | 0.36 | $ | 0.31 | $ | 0.49 | $ | 0.30 | $ | 0.18 | ||||||||||||||
Average shares outstanding-basic | 12,191 | 12,191 | 12,191 | 12,733 | 12,733 | 12,733 | ||||||||||||||||||||
Average shares outstanding-diluted | 12,348 | 12,348 | 12,348 | 12,871 | 12,871 | 12,871 | ||||||||||||||||||||
SIX MONTHS ENDED | ||||||||||||||||||||||||||
As reported | October 28, 2012 | As reported | October 30, 2011 | |||||||||||||||||||||||
October 28, | Proforma Net | October 30, | Proforma Net | |||||||||||||||||||||||
2012 | Adjustments | of Adjustments | 2011 | Adjustments | of Adjustments | |||||||||||||||||||||
Income before income taxes | $ | 9,903 | $ | - | $ | 9,903 | $ | 5,827 | $ | - | $ | 5,827 | ||||||||||||||
Income taxes (3) | (1,889 | ) | $ | 3,374 | 1,485 | (2,244 | ) | $ | 3,293 | 1,049 | ||||||||||||||||
Net income | $ | 11,792 | $ | (3,374 | ) | $ | 8,418 | $ | 8,071 | $ | (3,293 | ) | $ | 4,778 | ||||||||||||
Net income per share-basic | $ | 0.95 | $ | 0.27 | $ | 0.68 | $ | 0.63 | $ | 0.26 | $ | 0.37 | ||||||||||||||
Net income per share-diluted | $ | 0.94 | $ | 0.27 | $ | 0.67 | $ | 0.62 | $ | 0.25 | $ | 0.37 | ||||||||||||||
Average shares outstanding-basic | 12,371 | 12,371 | 12,371 | 12,898 | 12,898 | 12,898 | ||||||||||||||||||||
Average shares outstanding-diluted | 12,541 | 12,541 | 12,541 | 13,025 | 13,025 | 13,025 |
(1) Calculated by dividing consolidated income 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. |