Exhibit 99(b)
Page 1 of 9
CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF NET INCOME | |||||||||||||||||||||||
FOR THREE MONTHS ENDED JANUARY 27, 2013 AND JANUARY 29, 2012 | |||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||
(Amounts in Thousands, Except for Per Share Data) | |||||||||||||||||||||||
THREE MONTHS ENDED | |||||||||||||||||||||||
Amounts | Percent of Sales | ||||||||||||||||||||||
January 27, | January 29, | % Over | January 27, | January 29, | |||||||||||||||||||
2013 | 2012 | (Under) | 2013 | 2012 | |||||||||||||||||||
Net sales | $ | 63,695 | 60,450 | 5.4 | % | 100.0 | % | 100.0 | % | ||||||||||||||
Cost of sales | 52,010 | 51,939 | 0.1 | % | 81.7 | % | 85.9 | % | |||||||||||||||
Gross profit | 11,685 | 8,511 | 37.3 | % | 18.3 | % | 14.1 | % | |||||||||||||||
Selling, general and | |||||||||||||||||||||||
administrative expenses | 6,822 | 5,518 | 23.6 | % | 10.7 | % | 9.1 | % | |||||||||||||||
Income from operations | 4,863 | 2,993 | 62.5 | % | 7.6 | % | 5.0 | % | |||||||||||||||
Interest expense | 145 | 181 | (19.9 | ) | % | 0.2 | % | 0.3 | % | ||||||||||||||
Interest income | (105 | ) | (148 | ) | (29.1 | ) | % | (0.2 | ) | % | (0.2 | ) | % | ||||||||||
Other expense | 300 | 83 | 261.4 | % | 0.5 | % | 0.1 | % | |||||||||||||||
Income before income taxes | 4,523 | 2,877 | 57.2 | % | 7.1 | % | 4.8 | % | |||||||||||||||
Income taxes* | 1,700 | 1,075 | 58.1 | % | 37.6 | % | 37.4 | % | |||||||||||||||
Net income | $ | 2,823 | 1,802 | 56.7 | % | 4.4 | % | 3.0 | % | ||||||||||||||
Net income per share-basic | $ | 0.23 | $ | 0.14 | 64.3 | % | |||||||||||||||||
Net income per share-diluted | $ | 0.23 | $ | 0.14 | 64.3 | % | |||||||||||||||||
Average shares outstanding-basic | 12,095 | 12,536 | (3.5 | ) | % | ||||||||||||||||||
Average shares outstanding-diluted | 12,290 | 12,677 | (3.1 | ) | % |
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1) | |||||||||||||||||||||||
THREE MONTHS ENDED | |||||||||||||||||||||||
Amounts | Percent of Sales | ||||||||||||||||||||||
January 27, | January 29, | % Over | January 27, | January 29, | |||||||||||||||||||
2013 | 2012 | (Under) | 2013 | 2012 | |||||||||||||||||||
Income before income taxes (see above) | $ | 4,523 | 2,877 | 57.2 | % | 7.1 | % | 4.8 | % | ||||||||||||||
Adjusted Income taxes (2)* | 651 | 524 | 24.2 | % | 14.4 | % | 18.2 | % | |||||||||||||||
Adjusted net income | 3,872 | 2,353 | 64.6 | % | 6.1 | % | 3.9 | % | |||||||||||||||
Adjusted net income per share-basic | $ | 0.32 | $ | 0.19 | 68.4 | % | |||||||||||||||||
Adjusted net income per share-diluted | $ | 0.32 | $ | 0.19 | 68.4 | % | |||||||||||||||||
Average shares outstanding-basic | 12,095 | 12,536 | (3.5 | ) | % | ||||||||||||||||||
Average shares outstanding-diluted | 12,290 | 12,677 | (3.1 | ) | % |
(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 cash income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 9 of 9.
(2) Represents estimated cash 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 NINE MONTHS ENDED JANUARY 27, 2013 AND JANUARY 29, 2012 | |||||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||||
(Amounts in Thousands, Except for Per Share Data) | |||||||||||||||||||||||
NINE MONTHS ENDED | |||||||||||||||||||||||
Amounts | Percent of Sales | ||||||||||||||||||||||
January 27, | January 29, | % Over | January 27, | January 29, | |||||||||||||||||||
2013 | 2012 | (Under) | 2013 | 2012 | |||||||||||||||||||
Net sales | $ | 198,439 | 178,733 | 11.0 | % | 100.0 | % | 100.0 | % | ||||||||||||||
Cost of sales | 161,757 | 152,698 | 5.9 | % | 81.5 | % | 85.4 | % | |||||||||||||||
Gross profit | 36,682 | 26,035 | 40.9 | % | 18.5 | % | 14.6 | % | |||||||||||||||
Selling, general and | |||||||||||||||||||||||
administrative expenses | 21,672 | 16,995 | 27.5 | % | 10.9 | % | 9.5 | % | |||||||||||||||
Income from operations | 15,010 | 9,040 | 66.0 | % | 7.6 | % | 5.1 | % | |||||||||||||||
Interest expense | 491 | 590 | (16.8 | ) | % | 0.2 | % | 0.3 | % | ||||||||||||||
Interest income | (328 | ) | (387 | ) | (15.2 | ) | % | (0.2 | ) | % | (0.2 | ) | % | ||||||||||
Other expense | 421 | 132 | 218.9 | % | 0.2 | % | 0.1 | % | |||||||||||||||
Income before income taxes | 14,426 | 8,705 | 65.7 | % | 7.3 | % | 4.9 | % | |||||||||||||||
Income taxes* | (188 | ) | (1,168 | ) | (83.9 | ) | % | (1.3 | ) | % | (13.4 | ) | % | ||||||||||
Net income | $ | 14,614 | 9,873 | 48.0 | % | 7.4 | % | 5.5 | % | ||||||||||||||
Net income per share-basic | $ | 1.19 | $ | 0.77 | 54.5 | % | |||||||||||||||||
Net income per share-diluted | $ | 1.17 | $ | 0.76 | 53.9 | % | |||||||||||||||||
Average shares outstanding-basic | 12,279 | 12,777 | (3.9 | ) | % | ||||||||||||||||||
Average shares outstanding-diluted | 12,467 | 12,918 | (3.5 | ) | % |
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1) | |||||||||||||||||||||||
NINE MONTHS ENDED | |||||||||||||||||||||||
Amounts | Percent of Sales | ||||||||||||||||||||||
January 27, | January 29, | % Over | January 27, | January 29, | |||||||||||||||||||
2013 | 2012 | (Under) | 2013 | 2012 | |||||||||||||||||||
Income before income taxes (see above) | $ | 14,426 | 8,705 | 65.7 | % | 7.3 | % | 4.9 | % | ||||||||||||||
Adjusted Income taxes (2)* | 2,077 | 1,584 | 31.1 | % | 14.4 | % | 18.2 | % | |||||||||||||||
Adjusted net income | 12,349 | 7,121 | 73.4 | % | 6.2 | % | 4.0 | % | |||||||||||||||
Adjusted net income per share-basic | $ | 1.01 | $ | 0.56 | 80.4 | % | |||||||||||||||||
Adjusted net income per share-diluted | $ | 0.99 | $ | 0.55 | 80.0 | % | |||||||||||||||||
Average shares outstanding-basic | 12,279 | 12,777 | (3.9 | ) | % | ||||||||||||||||||
Average shares outstanding-diluted | 12,467 | 12,918 | (3.5 | ) | % |
(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 cash income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 9 of 9.
(2) Represents estimated cash 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 | |||||||||||||||||||||
JANUARY 27, 2013, JANUARY 29, 2012, AND APRIL 29, 2012 | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
(Amounts in Thousands) | |||||||||||||||||||||
Amounts | Increase | ||||||||||||||||||||
January 27, | January 29, | (Decrease) | * April 29, | ||||||||||||||||||
2013 | 2012 | Dollars | Percent | 2012 | |||||||||||||||||
Current assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 19,489 | 15,096 | 4,393 | 29.1 | % | 25,023 | ||||||||||||||
Short-term investments | 5,237 | 8,511 | (3,274 | ) | (38.5 | ) | % | 5,941 | |||||||||||||
Accounts receivable | 24,257 | 22,012 | 2,245 | 10.2 | % | 25,055 | |||||||||||||||
Inventories | 42,177 | 32,910 | 9,267 | 28.2 | % | 36,373 | |||||||||||||||
Deferred income taxes | 4,098 | 2,767 | 1,331 | 48.1 | % | 2,467 | |||||||||||||||
Assets held for sale | - | 45 | (45 | ) | (100.0 | ) | % | 15 | |||||||||||||
Other current assets | 1,655 | 2,522 | (867 | ) | (34.4 | ) | % | 1,989 | |||||||||||||
Total current assets | 96,913 | 83,863 | 13,050 | 15.6 | % | 96,863 | |||||||||||||||
Property, plant & equipment, net | 30,055 | 30,285 | (230 | ) | (0.8 | ) | % | 31,279 | |||||||||||||
Goodwill | 11,462 | 11,462 | - | 0.0 | % | 11,462 | |||||||||||||||
Deferred income taxes | 4,172 | 3,903 | 269 | 6.9 | % | 3,205 | |||||||||||||||
Other assets | 1,195 | 1,944 | (749 | ) | (38.5 | ) | % | 1,907 | |||||||||||||
Total assets | $ | 143,797 | 131,457 | 12,340 | 9.4 | % | 144,716 | ||||||||||||||
Current liabilities | |||||||||||||||||||||
Current maturities of long-term debt | $ | 2,366 | 2,400 | (34 | ) | (1.4 | ) | % | 2,404 | ||||||||||||
Line of credit | 576 | 875 | (299 | ) | (34.2 | ) | % | 889 | |||||||||||||
Accounts payable - trade | 26,220 | 23,489 | 2,731 | 11.6 | % | 30,663 | |||||||||||||||
Accounts payable - capital expenditures | - | 15 | (15 | ) | (100.0 | ) | % | 169 | |||||||||||||
Accrued expenses | 12,823 | 7,594 | 5,229 | 68.9 | % | 9,321 | |||||||||||||||
Accrued restructuring | - | 40 | (40 | ) | (100.0 | ) | % | 40 | |||||||||||||
Income taxes payable - current | 395 | 208 | 187 | 89.9 | % | 642 | |||||||||||||||
Total current liabilities | 42,380 | 34,621 | 7,759 | 22.4 | % | 44,128 | |||||||||||||||
Income taxes payable - long-term | 4,195 | 4,040 | 155 | 3.8 | % | 4,164 | |||||||||||||||
Deferred income taxes | 856 | 659 | 197 | 29.9 | % | 705 | |||||||||||||||
Long-term debt , less current maturities | 4,400 | 6,766 | (2,366 | ) | (35.0 | ) | % | 6,719 | |||||||||||||
Total liabilities | 51,831 | 46,086 | 5,745 | 12.5 | % | 55,716 | |||||||||||||||
Shareholders' equity | 91,966 | 85,371 | 6,595 | 7.7 | % | 89,000 | |||||||||||||||
Total liabilities and | |||||||||||||||||||||
shareholders' equity | $ | 143,797 | 131,457 | 12,340 | 9.4 | % | 144,716 | ||||||||||||||
Shares outstanding | 12,225 | 12,693 | (468 | ) | (3.7 | ) | % | 12,703 | |||||||||||||
* Derived from audited financial statements. |
Page 4 of 9
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
FOR THE NINE MONTHS ENDED JANUARY 27, 2013 AND JANUARY 29, 2012 | ||||||||
Unaudited | ||||||||
(Amounts in Thousands) | ||||||||
NINE MONTHS ENDED | ||||||||
Amounts | ||||||||
January 27, | January 29, | |||||||
2013 | 2012 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 14,614 | $ | 9,873 | ||||
Adjustments to reconcile net income to net cash | ||||||||
provided by operating activities: | ||||||||
Depreciation | 3,818 | 3,600 | ||||||
Amortization of other assets | 178 | 183 | ||||||
Stock-based compensation | 308 | 258 | ||||||
Excess tax benefit related to stock-based compensation | (77 | ) | (39 | ) | ||||
Deferred income taxes | (2,370 | ) | (2,751 | ) | ||||
Gain on sale of equipment | - | (157 | ) | |||||
Foreign currency exchange losses (gains) | 153 | (196 | ) | |||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | 776 | (1,769 | ) | |||||
Inventories | (5,794 | ) | (4,045 | ) | ||||
Other current assets | 353 | (159 | ) | |||||
Other assets | (92 | ) | (49 | ) | ||||
Accounts payable-trade | (4,395 | ) | (1,709 | ) | ||||
Accrued expenses | 3,526 | (1 | ) | |||||
Accrued restructuring | (40 | ) | (4 | ) | ||||
Income taxes | (141 | ) | (305 | ) | ||||
Net cash provided by operating activities | 10,817 | 2,730 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (2,763 | ) | (3,715 | ) | ||||
Proceeds from the sale of equipment | - | 188 | ||||||
Proceeds from life insurance policies | 626 | - | ||||||
Purchase of short-term investments | (84 | ) | (4,821 | ) | ||||
Proceeds from the sale of short-term investments | 795 | 4,096 | ||||||
Net cash used in investing activities | (1,426 | ) | (4,252 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from lines of credit | 1,000 | 6,323 | ||||||
Payments on lines of credit | (1,325 | ) | (5,500 | ) | ||||
Payments on long-term debt | (2,350 | ) | (2,354 | ) | ||||
Proceeds from common stock issued | 205 | 237 | ||||||
Common stock shares repurchased | (5,022 | ) | (5,384 | ) | ||||
Dividends paid | (7,226 | ) | - | |||||
Debt issance costs | - | (26 | ) | |||||
Excess tax benefit related to stock-based compensation | 77 | 39 | ||||||
Net cash used in financing activities | (14,641 | ) | (6,665 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (284 | ) | 102 | |||||
Decrease in cash and cash equivalents | (5,534 | ) | (8,085 | ) | ||||
Cash and cash equivalents at beginning of period | 25,023 | 23,181 | ||||||
Cash and cash equivalents at end of period | $ | 19,489 | $ | 15,096 | ||||
Free Cash Flow (1) | $ | 8,473 | $ | (656 | ) |
(1) Free Cash Flow reconciliation is as follows: | |||||||||
FY 2013 | FY 2012 | ||||||||
A) | Net cash provided by operating activities | $ | 10,817 | $ | 2,730 | ||||
B) | Minus: Capital Expenditures | (2,763 | ) | (3,715 | ) | ||||
C) | Add: Proceeds from the sale of equipment | - | 188 | ||||||
D) | Add: Proceeds from life insurance policies | 626 | - | ||||||
E) | Add: Excess tax benefit related to stock-based compensation | 77 | 39 | ||||||
F) | Effect of exchange rate changes on cash and cash equivalents | (284 | ) | 102 | |||||
$ | 8,473 | $ | (656 | ) | |||||
Page 5 of 9
CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||||||||||||||||
STATEMENTS OF OPERATIONS BY SEGMENT | |||||||||||||||||||||||
FOR THE THREE MONTHS ENDED JANUARY 27, 2013 AND JANUARY 29, 2012 | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||
THREE MONTHS ENDED | |||||||||||||||||||||||
Amounts | Percent of Total Sales | ||||||||||||||||||||||
January 27, | January 29, | % Over | January 27, | January 29, | |||||||||||||||||||
Net Sales by Segment | 2013 | 2012 | (Under) | 2013 | 2012 | ||||||||||||||||||
Mattress Fabrics | $ | 35,513 | 34,719 | 2.3 | % | 55.8 | % | 57.4 | % | ||||||||||||||
Upholstery Fabrics | 28,182 | 25,731 | 9.5 | % | 44.2 | % | 42.6 | % | |||||||||||||||
Net Sales | $ | 63,695 | 60,450 | 5.4 | % | 100.0 | % | 100.0 | % | ||||||||||||||
Gross Profit by Segment | Gross Profit Margin | ||||||||||||||||||||||
Mattress Fabrics | $ | 6,548 | 5,104 | 28.3 | % | 18.4 | % | 14.7 | % | ||||||||||||||
Upholstery Fabrics | 5,137 | 3,407 | 50.8 | % | 18.2 | % | 13.2 | % | |||||||||||||||
Gross Profit | $ | 11,685 | 8,511 | 37.3 | % | 18.3 | % | 14.1 | % | ||||||||||||||
Selling, General and Administrative expenses by Segment | Percent of Sales | ||||||||||||||||||||||
�� | |||||||||||||||||||||||
Mattress Fabrics | $ | 2,382 | 1,970 | 20.9 | % | 6.7 | % | 5.7 | % | ||||||||||||||
Upholstery Fabrics | 3,360 | 2,653 | 26.6 | % | 11.9 | % | 10.3 | % | |||||||||||||||
Unallocated Corporate expenses | 1,080 | 895 | 20.7 | % | 1.7 | % | 1.5 | % | |||||||||||||||
Selling, General and Administrative expenses | 6,822 | 5,518 | 23.6 | % | 10.7 | % | 9.1 | % | |||||||||||||||
Operating Income (loss) by Segment | Operating Income (Loss) Margin | ||||||||||||||||||||||
Mattress Fabrics | $ | 4,166 | 3,134 | 32.9 | % | 11.7 | % | 9.0 | % | ||||||||||||||
Upholstery Fabrics | 1,777 | 754 | 135.7 | % | 6.3 | % | 2.9 | % | |||||||||||||||
Unallocated corporate expenses | (1,080 | ) | (895 | ) | 20.7 | % | (1.7 | ) | % | (1.5 | ) | % | |||||||||||
Operating income | $ | 4,863 | 2,993 | 62.5 | % | 7.6 | % | 5.0 | % | ||||||||||||||
Depreciation by Segment | |||||||||||||||||||||||
Mattress Fabrics | $ | 1,125 | 1,081 | 4.1 | % | ||||||||||||||||||
Upholstery Fabrics | 154 | 133 | 15.8 | % | |||||||||||||||||||
Consolidated | 1,279 | 1,214 | 5.4 | % |
Page 6 of 9
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||||||
STATEMENTS OF OPERATIONS BY SEGMENT | ||||||||||||||||||||||||
FOR THE NINE MONTHS ENDED JANUARY 27, 2013 AND JANUARY 29, 2012 | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
NINE MONTHS ENDED | ||||||||||||||||||||||||
Amounts | Percent of Total Sales | |||||||||||||||||||||||
January 27, | January 29, | % Over | January 27, | January 29, | ||||||||||||||||||||
Net Sales by Segment | 2013 | 2012 | (Under) | 2013 | 2012 | |||||||||||||||||||
Mattress Fabrics | $ | 113,175 | 102,130 | 10.8 | % | 57.0 | % | 57.1 | % | |||||||||||||||
Upholstery Fabrics | 85,264 | 76,603 | 11.3 | % | 43.0 | % | 42.9 | % | ||||||||||||||||
Net Sales | $ | 198,439 | 178,733 | 11.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||
Gross Profit by Segment | Gross Profit Margin | |||||||||||||||||||||||
Mattress Fabrics | $ | 21,708 | 16,180 | 34.2 | % | 19.2 | % | 15.8 | % | |||||||||||||||
Upholstery Fabrics | 14,974 | 9,932 | 50.8 | % | 17.6 | % | 13.0 | % | ||||||||||||||||
Subtotal | 36,682 | 26,112 | 40.5 | % | 18.5 | % | 14.6 | % | ||||||||||||||||
Other non-recurring charges | - | (77 | ) | (1 | ) | (100.0 | ) | % | 0.0 | % | (0.0 | ) | % | |||||||||||
Gross Profit | 36,682 | 26,035 | 40.9 | % | 18.5 | % | 14.6 | % | ||||||||||||||||
Selling, General and Administrative expenses by Segment | Percent of Sales | |||||||||||||||||||||||
Mattress Fabrics | $ | 7,197 | 6,094 | 18.1 | % | 6.4 | % | 6.0 | % | |||||||||||||||
Upholstery Fabrics | 9,857 | 8,186 | 20.4 | % | 11.6 | % | 10.7 | % | ||||||||||||||||
Unallocated Corporate expenses | 4,618 | 2,715 | 70.1 | % | 2.3 | % | 1.5 | % | ||||||||||||||||
Consolidated | 21,672 | 16,995 | 27.5 | % | 10.9 | % | 9.5 | % | ||||||||||||||||
Operating Income (loss) by Segment | Operating Income (Loss) Margin | |||||||||||||||||||||||
Mattress Fabrics | $ | 14,512 | 10,087 | 43.9 | % | 12.8 | % | 9.9 | % | |||||||||||||||
Upholstery Fabrics | 5,116 | 1,745 | 193.2 | % | 6.0 | % | 2.3 | % | ||||||||||||||||
Unallocated corporate expenses | �� | (4,618 | ) | (2,715 | ) | 70.1 | % | (2.3 | ) | % | (1.5 | ) | % | |||||||||||
Subtotal | 15,010 | 9,117 | 64.6 | % | 7.6 | % | 5.1 | % | ||||||||||||||||
Other non-recurring charges | - | (77 | ) | (1 | ) | (100.0 | ) | % | 0.0 | % | (0.0 | ) | % | |||||||||||
Operating income | $ | 15,010 | 9,040 | 66.0 | % | 7.6 | % | 5.1 | % | |||||||||||||||
Return on Capital (2) | ||||||||||||||||||||||||
Mattress Fabrics | 34.9 | % | 25.1 | % | ||||||||||||||||||||
Upholstery Fabrics | 39.7 | % | 17.1 | % | ||||||||||||||||||||
Unallocated Corporate | N/A | N/A | ||||||||||||||||||||||
Consolidated | 28.0 | % | 17.9 | % | ||||||||||||||||||||
Capital Employed (3) | ||||||||||||||||||||||||
Mattress Fabrics | 55,970 | 52,595 | 6.4 | % | ||||||||||||||||||||
Upholstery Fabrics | 18,474 | 17,572 | 5.1 | % | ||||||||||||||||||||
Unallocated Corporate | (2,686 | ) | (125 | ) | N/A | |||||||||||||||||||
Consolidated | 71,758 | 70,042 | 2.4 | % | ||||||||||||||||||||
Depreciation by Segment | ||||||||||||||||||||||||
Mattress Fabrics | $ | 3,344 | 3,163 | 5.7 | % | |||||||||||||||||||
Upholstery Fabrics | 474 | 437 | 8.5 | % | ||||||||||||||||||||
Consolidated | 3,818 | 3,600 | 6.1 | % |
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 January 27, 2013 and January 29, 2012. |
Page 7 of 9
CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||||||||||||||||||||||||||||||||
RETURN ON CAPITAL EMPLOYED BY SEGMENT | |||||||||||||||||||||||||||||||||||||||
FOR THE NINE MONTHS ENDED JANUARY 27,2013 | |||||||||||||||||||||||||||||||||||||||
(Amounts in Thousands) | |||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||
Operating Income | |||||||||||||||||||||||||||||||||||||||
Nine Months | Average | Return on | |||||||||||||||||||||||||||||||||||||
Ended | Capital | Avg. Capital | |||||||||||||||||||||||||||||||||||||
January 27, 2013 (1) | Employed (3) | Employed (2) | |||||||||||||||||||||||||||||||||||||
Mattress Fabrics | $ | 14,512 | $ | 55,446 | 34.9 | % | |||||||||||||||||||||||||||||||||
Upholstery Fabrics | 5,116 | 17,172 | 39.7 | % | |||||||||||||||||||||||||||||||||||
(less: Unallocated Corporate) | (4,618 | ) | (1,264 | ) | N/A | ||||||||||||||||||||||||||||||||||
Total | $ | 15,010 | $ | 71,355 | 28.0 | % | |||||||||||||||||||||||||||||||||
Average Capital Employed | As of the three Months Ended January 27, 2013 | As of the three Months Ended October 28, 2012 | As of the three Months Ended July 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 | 74,794 | 33,773 | 35,230 | 143,797 | 74,342 | 27,240 | 40,861 | 142,443 | 78,098 | 29,973 | 35,089 | 143,160 | ||||||||||||||||||||||||||||||||||||
Total liabilities | (18,824 | ) | (15,299 | ) | (17,708 | ) | (51,831 | ) | (19,240 | ) | (10,512 | ) | (17,303 | ) | (47,055 | ) | (21,295 | ) | (11,006 | ) | (19,028 | ) | (51,329 | ) | ||||||||||||||||||||||||
Subtotal | $ | 55,970 | $ | 18,474 | $ | 17,522 | $ | 91,966 | $ | 55,102 | $ | 16,728 | $ | 23,558 | $ | 95,388 | $ | 56,803 | $ | 18,967 | $ | 16,061 | $ | 91,831 | ||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | (19,489 | ) | (19,489 | ) | - | - | (23,464 | ) | (23,464 | ) | - | - | (21,889 | ) | (21,889 | ) | ||||||||||||||||||||||||||||||
Short-term investments | - | - | (5,237 | ) | (5,237 | ) | - | - | (5,241 | ) | (5,241 | ) | - | - | (5,200 | ) | (5,200 | ) | ||||||||||||||||||||||||||||||
Deferred income taxes - current | - | - | (4,098 | ) | (4,098 | ) | - | - | (4,470 | ) | (4,470 | ) | - | - | (2,337 | ) | (2,337 | ) | ||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | (4,172 | ) | (4,172 | ) | - | - | (4,738 | ) | (4,738 | ) | - | - | (2,715 | ) | (2,715 | ) | ||||||||||||||||||||||||||||||
Current maturities of long-term debt | - | - | 2,366 | 2,366 | - | - | 2,401 | 2,401 | - | - | 2,400 | 2,400 | ||||||||||||||||||||||||||||||||||||
Line of credit | - | - | 576 | 576 | - | - | 875 | 875 | - | - | 834 | 834 | ||||||||||||||||||||||||||||||||||||
Income taxes payable - current | - | - | 395 | 395 | - | - | 385 | 385 | - | - | 751 | 751 | ||||||||||||||||||||||||||||||||||||
Income taxes payable - long-term | - | - | 4,195 | 4,195 | - | - | 4,188 | 4,188 | - | - | 4,131 | 4,131 | ||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | 856 | 856 | - | - | 856 | 856 | - | - | 705 | 705 | ||||||||||||||||||||||||||||||||||||
Long-term debt, less current maturities | - | - | 4,400 | 4,400 | - | - | 4,416 | 4,416 | - | - | 6,666 | 6,666 | ||||||||||||||||||||||||||||||||||||
Total Capital Employed | $ | 55,970 | $ | 18,474 | $ | (2,686 | ) | $ | 71,758 | $ | 55,102 | $ | 16,728 | $ | (1,234 | ) | $ | 70,596 | $ | 56,803 | $ | 18,967 | $ | (593 | ) | $ | 75,177 | |||||||||||||||||||||
As of the three Months Ended April 29, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||
Total assets | 71,563 | 33,641 | 39,512 | 144,716 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | (17,653 | ) | (19,123 | ) | (18,940 | ) | (55,716 | ) | ||||||||||||||||||||||||||||||||||||||||
Subtotal | $ | 53,910 | $ | 14,518 | $ | 20,572 | $ | 89,000 | ||||||||||||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | (25,023 | ) | (25,023 | ) | ||||||||||||||||||||||||||||||||||||||||||
Short-term investments | - | - | (5,941 | ) | (5,941 | ) | ||||||||||||||||||||||||||||||||||||||||||
Deferred income taxes - current | - | - | (2,467 | ) | (2,467 | ) | ||||||||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | (3,205 | ) | (3,205 | ) | ||||||||||||||||||||||||||||||||||||||||||
Current maturities of long-term debt | - | - | 2,404 | 2,404 | ||||||||||||||||||||||||||||||||||||||||||||
Line of credit | - | - | 889 | 889 | ||||||||||||||||||||||||||||||||||||||||||||
Income taxes payable - current | - | - | 642 | 642 | ||||||||||||||||||||||||||||||||||||||||||||
Income taxes payable - long-term | - | - | 4,164 | 4,164 | ||||||||||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | 705 | 705 | ||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, less current maturities | - | - | 6,719 | 6,719 | ||||||||||||||||||||||||||||||||||||||||||||
Total Capital Employed | $ | 53,910 | $ | 14,518 | $ | (541 | ) | $ | 67,887 | |||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||
Average Capital Employed (3) | $ | 55,446 | $ | 17,172 | $ | (1,264 | ) | $ | 71,355 |
Notes: | |
(1) | See reconciliation per page 6 of this financial information release. |
(2) | Return on average capital employed represents operating income for the nine month period ending January 27, 2013 divided by 3 quarters times 4 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 four periods ending April 29, 2012, July 29, 2012, October 28, 2012, and January 27, 2013. |
Page 8 of 9
CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||||||||||||||||||||||||||||||||
RETURN ON CAPITAL EMPLOYED BY SEGMENT | |||||||||||||||||||||||||||||||||||||||
FOR THE NINE MONTHS ENDED JANUARY 29,2012 | |||||||||||||||||||||||||||||||||||||||
(Amounts in Thousands) | |||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||
Operating Income | |||||||||||||||||||||||||||||||||||||||
Nine Months | Average | Return on | |||||||||||||||||||||||||||||||||||||
Ended | Capital | Avg. Capital | |||||||||||||||||||||||||||||||||||||
January 29, 2012 (1) | Employed (3) | Employed (2) | |||||||||||||||||||||||||||||||||||||
Mattress Fabrics | $ | 10,087 | $ | 53,609 | 25.1 | % | |||||||||||||||||||||||||||||||||
Upholstery Fabrics | 1,745 | 13,569 | 17.1 | % | |||||||||||||||||||||||||||||||||||
(less: Unallocated Corporate) | (2,792 | ) | 66 | N/A | |||||||||||||||||||||||||||||||||||
Total | $ | 9,040 | $ | 67,243 | 17.9 | % | |||||||||||||||||||||||||||||||||
Average Capital Employed | As of the three Months Ended January 29, 2012 | As of the three Months Ended October 30, 2011 | As of the three Months Ended July 31, 2011 | |||||||||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||||||||||
Total assets | 69,063 | 29,501 | 32,893 | 131,457 | 68,568 | 24,462 | 34,094 | 127,124 | 71,325 | 26,683 | 31,299 | 129,307 | ||||||||||||||||||||||||||||||||||||
Total liabilities | (16,468 | ) | (11,929 | ) | (17,689 | ) | (46,086 | ) | (15,353 | ) | (11,253 | ) | (16,421 | ) | (43,027 | ) | (15,331 | ) | (13,507 | ) | (19,118 | ) | (47,956 | ) | ||||||||||||||||||||||||
Subtotal | $ | 52,595 | $ | 17,572 | $ | 15,204 | $ | 85,371 | $ | 53,215 | $ | 13,209 | $ | 17,673 | $ | 84,097 | $ | 55,994 | $ | 13,176 | $ | 12,181 | $ | 81,351 | ||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | (15,096 | ) | (15,096 | ) | - | - | (13,795 | ) | (13,795 | ) | - | - | (14,570 | ) | (14,570 | ) | ||||||||||||||||||||||||||||||
Short-term investments | - | - | (8,511 | ) | (8,511 | ) | - | - | (10,482 | ) | (10,482 | ) | - | - | (10,443 | ) | (10,443 | ) | ||||||||||||||||||||||||||||||
Deferred income taxes - current | - | - | (2,767 | ) | (2,767 | ) | - | - | (2,659 | ) | (2,659 | ) | - | - | (1,237 | ) | (1,237 | ) | ||||||||||||||||||||||||||||||
Income taxes receivable | - | - | - | - | - | - | (79 | ) | (79 | ) | - | - | (79 | ) | (79 | ) | ||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | (3,903 | ) | (3,903 | ) | - | - | (4,540 | ) | (4,540 | ) | - | - | (2,191 | ) | (2,191 | ) | ||||||||||||||||||||||||||||||
Current maturities of long-term debt | - | - | 2,400 | 2,400 | - | - | 2,401 | 2,401 | - | - | 2,409 | 2,409 | ||||||||||||||||||||||||||||||||||||
Line of credit | - | - | 875 | 875 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||
Deferred income taxes - current | - | - | - | - | - | - | - | - | - | - | 82 | 82 | ||||||||||||||||||||||||||||||||||||
Income taxes payable - current | - | - | 208 | 208 | - | - | 373 | 373 | - | - | 345 | 345 | ||||||||||||||||||||||||||||||||||||
Income taxes payable - long-term | - | - | 4,040 | 4,040 | - | - | 4,096 | 4,096 | - | - | 4,178 | 4,178 | ||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | 659 | 659 | - | - | 659 | 659 | - | - | 596 | 596 | ||||||||||||||||||||||||||||||||||||
Long-term debt, less current maturities | - | - | 6,766 | 6,766 | - | - | 6,818 | 6,818 | - | - | 9,079 | 9,079 | ||||||||||||||||||||||||||||||||||||
Total Capital Employed | $ | 52,595 | $ | 17,572 | $ | (125 | ) | $ | 70,042 | $ | 53,215 | $ | 13,209 | $ | 465 | $ | 66,889 | $ | 55,994 | $ | 13,176 | $ | 350 | $ | 69,520 | |||||||||||||||||||||||
As of the three Months Ended May 1, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||
Total assets | 66,637 | 25,929 | 37,485 | 130,051 | ||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | (14,005 | ) | (15,612 | ) | (20,093 | ) | (49,710 | ) | ||||||||||||||||||||||||||||||||||||||||
Subtotal | $ | 52,632 | $ | 10,317 | $ | 17,392 | $ | 80,341 | ||||||||||||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | (23,181 | ) | (23,181 | ) | ||||||||||||||||||||||||||||||||||||||||||
Short-term investments | - | - | (7,699 | ) | (7,699 | ) | ||||||||||||||||||||||||||||||||||||||||||
Deferred income taxes - current | - | - | (293 | ) | (293 | ) | ||||||||||||||||||||||||||||||||||||||||||
Income taxes receivable | - | - | (79 | ) | (79 | ) | ||||||||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | (3,606 | ) | (3,606 | ) | ||||||||||||||||||||||||||||||||||||||||||
Current maturities of long-term debt | - | - | 2,412 | 2,412 | ||||||||||||||||||||||||||||||||||||||||||||
Line of credit | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||
Deferred income taxes - current | - | - | 82 | 82 | ||||||||||||||||||||||||||||||||||||||||||||
Income taxes payable - current | - | - | 646 | 646 | ||||||||||||||||||||||||||||||||||||||||||||
Income taxes payable - long-term | - | - | 4,167 | 4,167 | ||||||||||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | 596 | 596 | ||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, less current maturities | - | - | 9,135 | 9,135 | ||||||||||||||||||||||||||||||||||||||||||||
Total Capital Employed | $ | 52,632 | $ | 10,317 | $ | (428 | ) | $ | 62,521 | |||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||
Average Capital Employed (3) | $ | 53,609 | $ | 13,569 | $ | 66 | $ | 67,243 |
Notes: | |
(1) | See reconciliation per page 6 of this financial information release. |
(2) | Return on average capital employed represents operating income for the nine month period ending January 29, 2012 divided by 3 quarters times 4 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, income taxes payable, and income taxes receivable. |
(3) | Average capital employed was computed using the four periods ending May 1, 2011, July 31, 2011, October 30, 2011, and January 29, 2012. |
Page 9 of 9
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE, NET INCOME AND EARNINGS PER SHARE | ||||||||||||||||||||
FOR THE NINE MONTHS ENDED JANUARY 27, 2013 AND JANUARY 29, 2012 | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
(Amounts in Thousands) | ||||||||||||||||||||
NINE MONTHS ENDED | ||||||||||||||||||||
Amounts | ||||||||||||||||||||
January 27, | January 29, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Consolidated Effective GAAP Income Tax Rate | (1) | (1.3 | )% | (13.4 | )% | |||||||||||||||
Reduction of U.S. Valuation Allowance | 83.7% | 50.2 | % | |||||||||||||||||
Undistributed earnings from foreign subsidiaries | (46.3 | )% | - | |||||||||||||||||
Non-Cash U.S. Income Tax Expense | (20.2 | )% | (18.1 | )% | ||||||||||||||||
Non-Cash Foreign Income Tax Expense | (1.5 | )% | (0.5 | )% | ||||||||||||||||
Consolidated Adjusted Effective Income Tax Rate | (2) | 14.4 | % | 18.2 | % | |||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||||
As reported | January 27, 2013 | As reported | January 29, 2012 | |||||||||||||||||||
January 27, | Proforma Net | January 29, | Proforma Net | |||||||||||||||||||
2013 | Adjustments | of Adjustments | 2012 | Adjustments | of Adjustments | |||||||||||||||||
Income before income taxes | 4,523 | - | $ | 4,523 | $ | 2,877 | $ | 2,877 | ||||||||||||||
Income taxes (3) | 1,700 | (1,049 | ) | 651 | 1,075 | $ | (551 | ) | 524 | |||||||||||||
Net income | 2,823 | 1,049 | $ | 3,872 | $ | 1,802 | $ | 551 | $ | 2,353 | ||||||||||||
Net income per share-basic | 0.23 | (0.09 | ) | $ | 0.32 | $ | 0.14 | $ | (0.04 | ) | $ | 0.19 | ||||||||||
Net income per share-diluted | 0.23 | (0.09 | ) | $ | 0.32 | $ | 0.14 | $ | (0.04 | ) | $ | 0.19 | ||||||||||
Average shares outstanding-basic | 12,095 | 12,095 | 12,095 | 12,536 | 12,536 | 12,536 | ||||||||||||||||
Average shares outstanding-diluted | 12,290 | 12,290 | 12,290 | 12,677 | 12,677 | 12,677 | ||||||||||||||||
NINE MONTHS ENDED | ||||||||||||||||||||||
As reported | January 27, 2013 | As reported | January 29, 2012 | |||||||||||||||||||
January 27, | Proforma Net | January 29, | Proforma Net | |||||||||||||||||||
2013 | Adjustments | of Adjustments | 2012 | Adjustments | of Adjustments | |||||||||||||||||
Income before income taxes | 14,426 | - | $ | 14,426 | $ | 8,705 | $ | - | $ | 8,705 | ||||||||||||
Income taxes (3) | (188 | ) | 2,265 | 2,077 | (1,168 | ) | $ | 2,752 | 1,584 | |||||||||||||
Net income | 14,614 | (2,265 | ) | $ | 12,349 | $ | 9,873 | $ | (2,752 | ) | $ | 7,121 | ||||||||||
Net income per share-basic | 1.19 | 0.18 | $ | 1.01 | $ | 0.77 | $ | 0.22 | $ | 0.56 | ||||||||||||
Net income per share-diluted | 1.17 | 0.18 | $ | 0.99 | $ | 0.76 | $ | 0.21 | $ | 0.55 | ||||||||||||
Average shares outstanding-basic | 12,279 | 12,279 | 12,279 | 12,777 | 12,777 | 12,777 | ||||||||||||||||
Average shares outstanding-diluted | 12,467 | 12,467 | 12,467 | 12,918 | 12,918 | 12,918 |
(1) Calculated by dividing consolidated income tax benefit by consolidated income before income taxes. |
(2) Represents estimated cash income tax expense for our subsidiaries located |
(3) Proforma taxes calculated using the Consolidated Adjusted Effective Income Tax Rate as reflected above. |