Exhibit 99(b)
Page 1 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||||||
CONSOLIDATED STATEMENTS OF NET INCOME | |||||||||||||
FOR THE THREE MONTHS ENDED JULY 28, 2013 AND JULY 29, 2012 | |||||||||||||
(UNAUDITED) | |||||||||||||
(Amounts in Thousands, Except for Per Share Data) | |||||||||||||
THREE MONTHS ENDED | |||||||||||||
Amounts | Percent of Sales | ||||||||||||
July 28, | July 29, | % Over | July 28, | July 29, | |||||||||
2013 | 2012 | (Under) | 2013 | 2012 | |||||||||
Net sales | $ | 70,141 | 69,184 | 1.4 | % | 100.0 | % | 100.0 | % | ||||
Cost of sales | 57,067 | 56,064 | 1.8 | % | 81.4 | % | 81.0 | % | |||||
Gross profit | 13,074 | 13,120 | (0.4) | % | 18.6 | % | 19.0 | % | |||||
Selling, general and | |||||||||||||
administrative expenses | 7,100 | 7,641 | (7.1) | % | 10.1 | % | 11.0 | % | |||||
Income from operations | 5,974 | 5,479 | 9.0 | % | 8.5 | % | 7.9 | % | |||||
Interest expense | 140 | 190 | (26.3) | % | 0.2 | % | 0.3 | % | |||||
Interest income | (92) | (127) | (27.6) | % | (0.1) | % | (0.2) | % | |||||
Other expense | 391 | 44 | 788.6 | % | 0.6 | % | 0.1 | % | |||||
Income before income taxes | 5,535 | 5,372 | 3.0 | % | 7.9 | % | 7.8 | % | |||||
Income taxes* | 2,305 | 1,848 | 24.7 | % | 41.6 | % | 34.4 | % | |||||
Net income | $ | 3,230 | 3,524 | (8.3) | % | 4.6 | % | 5.1 | % | ||||
Net income per share-basic | $0.27 | $0.28 | (3.6) | % | |||||||||
Net income per share-diluted | $0.26 | $0.28 | (7.1) | % | |||||||||
Average shares outstanding-basic | 12,148 | 12,551 | (3.2) | % | |||||||||
Average shares outstanding-diluted | 12,366 | 12,711 | (2.7) | % | |||||||||
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1) | |||||||||||||
THREE MONTHS ENDED | |||||||||||||
Amounts | Percent of Sales | ||||||||||||
July 28 | July 29, | % Over | July 28 | July 29, | |||||||||
2013 | 2012 | (Under) | 2013 | 2012 | |||||||||
Income before income taxes (see above) | $ | 5,535 | 5,372 | 3.0 | % | 7.9 | % | 7.8 | % | ||||
Adjusted Income taxes (2)* | 786 | 1,031 | (23.8) | % | 14.2 | % | 19.2 | % | |||||
Adjusted net income | 4,749 | 4,341 | 9.4 | % | 6.8 | % | 6.3 | % | |||||
Adjusted net income per share-basic | $0.39 | $0.35 | 11.4 | % | |||||||||
Adjusted net income per share-diluted | $0.38 | $0.34 | 11.8 | % | |||||||||
Average shares outstanding-basic | 12,148 | 12,551 | (3.2) | % | |||||||||
Average shares outstanding-diluted | 12,366 | 12,711 | (2.7) | % | |||||||||
(1) Culp, Inc. currently does not incur cash income tax expense in the US due to its $50.7 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 8 of 8. | |||||||||||||
(2) Represents estimated income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 8 of 8. | |||||||||||||
* Percent of sales column for income taxes is calculated as a % of income before income taxes. |
Page 2 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
JULY 28, 2013, JULY 29, 2012 AND APRIL 28, 2013 | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
(Amounts in Thousands) | ||||||||||||||||||||
Amounts | Increase | |||||||||||||||||||
July 28, | July 29, | (Decrease) | * April 28, | |||||||||||||||||
2013 | 2012 | Dollars | Percent | 2013 | ||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 21,423 | 21,889 | (466 | ) | (2.1 | ) % | 23,530 | ||||||||||||
Short-term investments | 6,174 | 5,200 | 974 | 18.7 | % | 5,286 | ||||||||||||||
Accounts receivable | 24,493 | 20,021 | 4,472 | 22.3 | % | 23,392 | ||||||||||||||
Inventories | 41,770 | 44,052 | (2,282 | ) | (5.2 | ) % | 38,418 | |||||||||||||
Deferred income taxes | 7,747 | 2,337 | 5,410 | 231.5 | % | 7,709 | ||||||||||||||
Assets held for sale | - | 15 | (15 | ) | (100.0 | ) % | - | |||||||||||||
Income taxes receivable | 292 | - | 292 | 100.0 | % | 318 | ||||||||||||||
Other current assets | 3,408 | 2,563 | 845 | 33.0 | % | 2,093 | ||||||||||||||
Total current assets | 105,307 | 96,077 | 9,230 | 9.6 | % | 100,746 | ||||||||||||||
Property, plant & equipment, net | 30,808 | 31,016 | (208 | ) | (0.7 | ) % | 30,594 | |||||||||||||
Goodwill | 11,462 | 11,462 | - | 0.0 | % | 11,462 | ||||||||||||||
Deferred income taxes | 651 | 2,715 | (2,064 | ) | (76.0 | ) % | 753 | |||||||||||||
Other assets | 2,873 | 1,890 | 983 | 52.0 | % | 1,151 | ||||||||||||||
Total assets | $ | 151,101 | 143,160 | 7,941 | 5.5 | % | 144,706 | |||||||||||||
Current liabilities | ||||||||||||||||||||
Current maturities of long-term debt | $ | 2,200 | 2,400 | (200 | ) | (8.3 | ) % | 2,200 | ||||||||||||
Line of credit | - | 834 | (834 | ) | (100.0 | ) % | 561 | |||||||||||||
Accounts payable - trade | 27,821 | 27,284 | 537 | 2.0 | % | 22,357 | ||||||||||||||
Accounts payable - capital expenditures | - | 152 | (152 | ) | (100.0 | ) % | 225 | |||||||||||||
Accrued expenses | 8,704 | 8,366 | 338 | 4.0 | % | 11,829 | ||||||||||||||
Accrued restructuring | - | 40 | (40 | ) | (100.0 | ) % | - | |||||||||||||
Income taxes payable - current | 320 | 751 | (431 | ) | (57.4 | ) % | 285 | |||||||||||||
Total current liabilities | 39,045 | 39,827 | (782 | ) | (2.0 | ) % | 37,457 | |||||||||||||
Income taxes payable - long-term | 4,176 | 4,131 | 45 | 1.1 | % | 4,191 | ||||||||||||||
Deferred income taxes | 4,335 | 705 | 3,630 | 514.9 | % | 3,075 | ||||||||||||||
Line of credit | 560 | - | 560 | 100.0 | % | - | ||||||||||||||
Long-term debt , less current maturities | 4,400 | 6,666 | (2,266 | ) | (34.0 | ) % | 4,400 | |||||||||||||
Total liabilities | 52,516 | 51,329 | 1,187 | 2.3 | % | 49,123 | ||||||||||||||
Shareholders' equity | 98,585 | 91,831 | 6,754 | 7.4 | % | 95,583 | ||||||||||||||
Total liabilities and | ||||||||||||||||||||
shareholders' equity | $ | 151,101 | 143,160 | 7,941 | 5.5 | % | 144,706 | |||||||||||||
Shares outstanding | 12,241 | 12,656 | (415 | ) | (3.3 | ) % | 12,225 | |||||||||||||
* Derived from audited financial statements. |
Page 3 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
FOR THE THREE MONTHS ENDED JULY 28, 2013 AND JULY 29, 2012 |
Unaudited |
(Amounts in Thousands) |
THREE MONTHS ENDED | |||||||||
Amounts | |||||||||
July 28, | July 29, | ||||||||
2013 | 2012 | ||||||||
Cash flows from operating activities: | |||||||||
Net income | $ | 3,230 | 3,524 | ||||||
Adjustments to reconcile net income to net cash | |||||||||
provided by (used in) operating activities: | |||||||||
Depreciation | 1,305 | 1,254 | |||||||
Amortization of other assets | 39 | 60 | |||||||
Stock-based compensation | 152 | 70 | |||||||
Deferred income taxes | 1,438 | 675 | |||||||
Gain on sale of equipment | (74 | ) | - | ||||||
Excess tax benefits related to stock-based compensation | (114 | ) | (55 | ) | |||||
Foreign currency exchange losses (gains) | 96 | (80 | ) | ||||||
Changes in assets and liabilities, net of effects of acquisition of assets: | |||||||||
Accounts receivable | (1,049 | ) | 4,985 | ||||||
Inventories | (3,271 | ) | (7,710 | ) | |||||
Other current assets | (1,300 | ) | (572 | ) | |||||
Other assets | (11 | ) | (43 | ) | |||||
Accounts payable | 5,284 | (3,288 | ) | ||||||
Accrued expenses | (3,131 | ) | (930 | ) | |||||
Income taxes | 81 | 148 | |||||||
Net cash provided by (used in) operating activities | 2,675 | (1,962 | ) | ||||||
Cash flows from investing activities: | |||||||||
Capital expenditures | (884 | ) | (1,008 | ) | |||||
Net cash paid for acquisition of assets | (2,640 | ) | - | ||||||
Purchase of short-term investments | (1,023 | ) | (25 | ) | |||||
Proceeds from the sale of short-term investments | - | 795 | |||||||
Proceeds from the sale of equipment | 104 | - | |||||||
Net cash used in investing activities | (4,443 | ) | (238 | ) | |||||
Cash flows from financing activities: | |||||||||
Payments on long-term debt | - | (50 | ) | ||||||
Excess tax benefits related to stock-based compensation | 114 | 55 | |||||||
Repurchase of common stock | - | (470 | ) | ||||||
Dividends paid | (489 | ) | (381 | ) | |||||
Proceeds from common stock issued | 145 | - | |||||||
Net cash used in financing activities | (230 | ) | (846 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (109 | ) | (88 | ) | |||||
Decrease in cash and cash equivalents | (2,107 | ) | (3,134 | ) | |||||
Cash and cash equivalents at beginning of period | 23,530 | 25,023 | |||||||
Cash and cash equivalents at end of period | $ | 21,423 | 21,889 | ||||||
Free Cash Flow (1) | $ | 1,900 | (3,003 | ) |
(1) Free Cash Flow reconciliation is as follows: | |||||||||
FY 2014 | FY 2013 | ||||||||
A) | Net cash provided by operating activities | $ | 2,675 | (1,962 | ) | ||||
B) | Minus: Capital Expenditures | (884 | ) | (1,008 | ) | ||||
C) | Add: Proceeds from the sale of equipment | 104 | - | ||||||
D) | Add: Excess tax benefits related to stock-based compensation | 114 | 55 | ||||||
E) | Effects of exchange rate changes on cash and cash equivalents | (109 | ) | (88 | ) | ||||
$ | 1,900 | (3,003 | ) | ||||||
Page 4 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
STATEMENTS OF OPERATIONS BY SEGMENT | ||||||||||||||||||||
FOR THE THREE MONTHS ENDED JULY 28, 2013 AND JULY 29, 2012 | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||
Amounts | Percent of Total Sales | |||||||||||||||||||
July 28, | July 29, | % Over | July 28, | July 29, | ||||||||||||||||
Net Sales by Segment | 2013 | 2012 | (Under) | 2013 | 2012 | |||||||||||||||
Mattress Fabrics | $ | 38,164 | 37,964 | 0.5 | % | 54.4 | % | 54.9 | % | |||||||||||
Upholstery Fabrics | 31,977 | 31,220 | 2.4 | % | 45.6 | % | 45.1 | % | ||||||||||||
Net Sales | $ | 70,141 | 69,184 | 1.4 | % | 100.0 | % | 100.0 | % | |||||||||||
Gross Profit by Segment | Gross Profit Margin | |||||||||||||||||||
Mattress Fabrics | $ | 7,392 | 7,622 | (3.0 | ) % | 19.4 | % | 20.1 | % | |||||||||||
Upholstery Fabrics | 5,682 | 5,498 | 3.3 | % | 17.8 | % | 17.6 | % | ||||||||||||
Gross Profit | 13,074 | 13,120 | (0.4 | ) % | 18.6 | % | 19.0 | % | ||||||||||||
Selling, General and Administrative expenses by Segment | Percent of Sales | |||||||||||||||||||
Mattress Fabrics | $ | 2,374 | 2,391 | (0.7 | ) % | 6.2 | % | 6.3 | % | |||||||||||
Upholstery Fabrics | 3,266 | 3,340 | (2.2 | ) % | 10.2 | % | 10.7 | % | ||||||||||||
Unallocated Corporate expenses | 1,460 | 1,910 | (23.6 | ) % | 2.1 | % | 2.8 | % | ||||||||||||
Selling, General and Administrative Expenses | 7,100 | 7,641 | (7.1 | ) % | 10.1 | % | 11.0 | % | ||||||||||||
Operating Income (loss) by Segment | Operating Income (Loss) Margin | |||||||||||||||||||
Mattress Fabrics | $ | 5,018 | 5,230 | (4.1 | ) % | 13.1 | % | 13.8 | % | |||||||||||
Upholstery Fabrics | 2,416 | 2,159 | 11.9 | % | 7.6 | % | 6.9 | % | ||||||||||||
Unallocated corporate expenses | (1,460 | ) | (1,910 | ) | (23.6 | ) % | (2.1 | ) % | (2.8 | ) % | ||||||||||
Operating Income | 5,974 | 5,479 | 9.0 | % | 8.5 | % | 7.9 | % | ||||||||||||
Return on Capital (1) | ||||||||||||||||||||
Mattress Fabrics | 34.2 | % | 37.8 | % | ||||||||||||||||
Upholstery Fabrics | 51.5 | % | 51.6 | % | ||||||||||||||||
Unallocated Corporate | N/A | N/A | ||||||||||||||||||
Consolidated | 31.7 | % | 30.6 | % | ||||||||||||||||
Capital Employed (2) | ||||||||||||||||||||
Mattress Fabrics | 59,590 | 56,803 | 4.9 | % | ||||||||||||||||
Upholstery Fabrics | 20,209 | 18,967 | 6.5 | % | ||||||||||||||||
Unallocated Corporate | (1,510 | ) | (593 | ) | N/A | |||||||||||||||
Consolidated | 78,289 | 75,177 | 4.1 | % | ||||||||||||||||
Depreciation expense by Segment | ||||||||||||||||||||
Mattress Fabrics | $ | 1,149 | 1,092 | 5.2 | % | |||||||||||||||
Upholstery Fabrics | 156 | 162 | (3.7 | ) % | ||||||||||||||||
Depreciation expense | 1,305 | 1,254 | 4.1 | % | ||||||||||||||||
Notes: | ||||||||||||||||||||
(1) See pages 6 and 7 of this financial information release for calculations. | ||||||||||||||||||||
(2) The capital employed balances are as of July 28, 2013 and July 29, 2012 |
Page 5 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||
CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA | |||||||||
FOR THE TWELVE MONTHS ENDED JULY 28, 2013 AND JULY 29, 2012 | |||||||||
(UNAUDITED) | |||||||||
(AMOUNTS IN THOUSANDS) | |||||||||
Quarter Ended | ||||||||||||||||||||
Trailing 12 | ||||||||||||||||||||
Months | ||||||||||||||||||||
10/28/12 | 1/27/13 | 4/28/2013 | 7/28/2013 | 7/28/2013 | ||||||||||||||||
Net income | $ | 8,268 | $ | 2,823 | $ | 3,702 | $ | 3,230 | $ | 18,023 | ||||||||||
Income taxes | (3,736 | ) | 1,700 | 2,161 | 2,305 | 2,430 | ||||||||||||||
Interest expense, net | 60 | 40 | 50 | 48 | 198 | |||||||||||||||
Depreciation and amortization expense | 1,344 | 1,338 | 1,354 | 1,344 | 5,380 | |||||||||||||||
Stock based compensation | 127 | 111 | 254 | 152 | 644 | |||||||||||||||
Adjusted EBITDA | $ | 6,063 | $ | 6,012 | $ | 7,521 | $ | 7,079 | $ | 26,675 | ||||||||||
Quarter Ended | ||||||||||||||||||||
Trailing 12 | ||||||||||||||||||||
Months | ||||||||||||||||||||
10/30/11 | 1/29/12 | 4/29/2012 | 7/29/2012 | 7/29/2012 | ||||||||||||||||
Net income | $ | 6,252 | $ | 1,802 | $ | 3,423 | $ | 3,524 | $ | 15,001 | ||||||||||
Income taxes | (3,389 | ) | 1,075 | 2,071 | 1,848 | 1,605 | ||||||||||||||
Interest expense, net | 78 | 33 | 69 | 63 | 243 | |||||||||||||||
Depreciation and amortization expense | 1,270 | 1,270 | 1,325 | 1,314 | 5,179 | |||||||||||||||
Stock based compensation | 101 | 80 | 91 | 70 | 342 | |||||||||||||||
Adjusted EBITDA | $ | 4,312 | $ | 4,260 | $ | 6,979 | $ | 6,819 | $ | 22,370 |
Page 6 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||||||||||||||
RETURN ON CAPITAL EMPLOYED BY SEGMENT | ||||||||||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED JULY 28, 2013 | ||||||||||||||||||||||||||||||||
(Amounts in Thousands) | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Operating Income | ||||||||||||||||||||||||||||||||
Three Months | Average | Return on | ||||||||||||||||||||||||||||||
Ended | Capital | Avg. Capital | ||||||||||||||||||||||||||||||
July 28, 2013 (1) | Employed (3) | Employed (2) | ||||||||||||||||||||||||||||||
Mattress Fabrics | $ | 5,018 | $ | 58,770 | 34.2 | % | ||||||||||||||||||||||||||
Upholstery Fabrics | 2,416 | 18,761 | 51.5 | % | ||||||||||||||||||||||||||||
(less: Unallocated Corporate) | (1,460 | ) | (2,037 | ) | N/A | |||||||||||||||||||||||||||
Total | $ | 5,974 | $ | 75,494 | 31.7 | % | ||||||||||||||||||||||||||
Average Capital Employed | As of the three Months Ended July 28, 2013 | As of the three Months Ended April 28, 2013 | ||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | |||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||
Total assets | 78,217 | 34,381 | 38,503 | 151,101 | 73,954 | 30,995 | 39,757 | 144,706 | ||||||||||||||||||||||||
Total liabilities | (18,627 | ) | (14,172 | ) | (19,717 | ) | (52,516 | ) | (16,004 | ) | (13,682 | ) | (19,437 | ) | (49,123 | ) | ||||||||||||||||
Subtotal | $ | 59,590 | $ | 20,209 | $ | 18,786 | $ | 98,585 | $ | 57,950 | $ | 17,313 | $ | 20,320 | $ | 95,583 | ||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | (21,423 | ) | (21,423 | ) | - | - | (23,530 | ) | (23,530 | ) | ||||||||||||||||||||
Short-term investments | - | - | (6,174 | ) | (6,174 | ) | - | - | (5,286 | ) | (5,286 | ) | ||||||||||||||||||||
Income taxes receivable | - | - | (292 | ) | (292 | ) | - | - | (318 | ) | (318 | ) | ||||||||||||||||||||
Deferred income taxes - current | - | - | (7,747 | ) | (7,747 | ) | - | - | (7,709 | ) | (7,709 | ) | ||||||||||||||||||||
Deferred income taxes - non-current | - | - | (651 | ) | (651 | ) | - | - | (753 | ) | (753 | ) | ||||||||||||||||||||
Current maturities of long-term debt | - | - | 2,200 | 2,200 | - | - | 2,200 | 2,200 | ||||||||||||||||||||||||
Line of credit | - | - | 560 | 560 | 561 | 561 | ||||||||||||||||||||||||||
Income taxes payable - current | - | - | 320 | 320 | - | - | 285 | 285 | ||||||||||||||||||||||||
Income taxes payable - long-term | - | - | 4,176 | 4,176 | - | - | 4,191 | 4,191 | ||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | 4,335 | 4,335 | - | - | 3,075 | 3,075 | ||||||||||||||||||||||||
Long-term debt, less current maturities | - | - | 4,400 | 4,400 | - | - | 4,400 | 4,400 | ||||||||||||||||||||||||
Total Capital Employed | $ | 59,590 | $ | 20,209 | $ | (1,510 | ) | $ | 78,289 | $ | 57,950 | $ | 17,313 | $ | (2,564 | ) | $ | 72,699 | ||||||||||||||
Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||
Average Capital Employed (3) | $ | 58,770 | $ | 18,761 | $ | (2,037 | ) | $ | 75,494 |
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 28, 2013 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 receivable and payable. | |||||||||||||||||||||||||||||||||
(3) | Average capital employed was computed using the two periods ending July 28, 2013 and April 28, 2013. |
Page 7 of 8
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 | Average | Return on | ||||||||||||||||||||||||||||||
Ended | Capital | Avg. Capital | ||||||||||||||||||||||||||||||
July 29, 2012 (1) | Employed (3) | 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 8 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||||||||||
CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE, NET INCOME AND EARNINGS PER SHARE | ||||||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED JULY 28, 2013 AND JULY 29, 2012 | ||||||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||||
(Amounts in Thousands) | ||||||||||||||||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||||||||||
Amounts | ||||||||||||||||||||||||||||
July 28, | July 29, | |||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||
Consolidated Effective GAAP Income Tax Rate | (1) | 41.6 | % | 34.4 | % | |||||||||||||||||||||||
Non-Cash U.S. Income Tax Expense | (27.0 | )% | (15.0 | )% | ||||||||||||||||||||||||
Non-Cash Foreign Income Tax Expense | (0.4 | )% | (0.2 | )% | ||||||||||||||||||||||||
Consolidated Adjusted Effective Income Tax Rate | (2) | 14.2 | % | 19.2 | % | |||||||||||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||||||||||
As reported | As adjusted | As reported | As adjusted | |||||||||||||||||||||||||
July 28, | July 28, | July 29, | July 29, | |||||||||||||||||||||||||
2013 | Adjustments | 2013 | 2012 | Adjustments | 2012 | |||||||||||||||||||||||
Income before income taxes | $ | 5,535 | $ | 5,535 | $ | 5,372 | $ | 5,372 | ||||||||||||||||||||
Income taxes (3) | 2,305 | $ | (1,519 | ) | 786 | 1,848 | $ | (817 | ) | 1,031 | ||||||||||||||||||
Net income | $ | 3,230 | $ | 1,519 | $ | 4,749 | $ | 3,524 | $ | 817 | $ | 4,341 | ||||||||||||||||
Net income per share-basic | $ | 0.27 | $ | (0.13 | ) | $ | 0.39 | $ | 0.28 | $ | (0.07 | ) | $ | 0.35 | ||||||||||||||
Net income per share-diluted | $ | 0.26 | $ | (0.12 | ) | $ | 0.38 | $ | 0.28 | $ | (0.06 | ) | $ | 0.34 | ||||||||||||||
Average shares outstanding-basic | 12,148 | 12,148 | 12,148 | 12,551 | 12,551 | 12,551 | ||||||||||||||||||||||
Average shares outstanding-diluted | 12,366 | 12,366 | 12,366 | 12,711 | 12,711 | 12,711 | ||||||||||||||||||||||
(1) Calculated by dividing consolidated income tax 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. |