Exhibit 99(b)
Page 1 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF NET INCOME | ||||||||||||||||||||
FOR THREE MONTHS ENDED OCTOBER 27, 2013 AND OCTOBER 28, 2012 | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
(Amounts in Thousands, Except for Per Share Data) | ||||||||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||
Amounts | Percent of Sales | |||||||||||||||||||
October 27, | October 28, | % Over | October 27, | October 28, | ||||||||||||||||
2013 | 2012 | (Under) | 2013 | 2012 | ||||||||||||||||
Net sales | $ | 70,589 | 65,560 | 7.7 | % | 100.0 | % | 100.0 | % | |||||||||||
Cost of sales | 58,354 | 53,683 | 8.7 | % | 82.7 | % | 81.9 | % | ||||||||||||
Gross profit | 12,235 | 11,877 | 3.0 | % | 17.3 | % | 18.1 | % | ||||||||||||
Selling, general and | ||||||||||||||||||||
administrative expenses | 7,200 | 7,209 | (0.1 | ) % | 10.2 | % | 11.0 | % | ||||||||||||
Income from operations | 5,035 | 4,668 | 7.9 | % | 7.1 | % | 7.1 | % | ||||||||||||
Interest expense | 99 | 156 | (36.5 | ) % | 0.1 | % | 0.2 | % | ||||||||||||
Interest income | (102 | ) | (96 | ) | 6.3 | % | (0.1 | ) % | (0.1 | ) % | ||||||||||
Other expense | 224 | 76 | 194.7 | % | 0.3 | % | 0.1 | % | ||||||||||||
Income before income taxes | 4,814 | 4,532 | 6.2 | % | 6.8 | % | 6.9 | % | ||||||||||||
Income taxes* | 1,718 | (3,736 | ) | N.M. | 35.7 | % | (82.4 | ) % | ||||||||||||
Net income | $ | 3,096 | 8,268 | (62.6 | ) % | 4.4 | % | 12.6 | % | |||||||||||
Net income per share-basic | $ | 0.25 | $ | 0.68 | (63.2 | ) % | ||||||||||||||
Net income per share-diluted | $ | 0.25 | $ | 0.67 | (62.7 | ) % | ||||||||||||||
Average shares outstanding-basic | 12,183 | 12,191 | (0.1 | ) % | ||||||||||||||||
Average shares outstanding-diluted | 12,389 | 12,348 | 0.3 | % |
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1) | ||||||||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||
Amounts | Percent of Sales | |||||||||||||||||||
October 27, | October 28, | % Over | October 27, | October 28, | ||||||||||||||||
2013 | 2012 | (Under) | 2013 | 2012 | ||||||||||||||||
Income before income taxes (see above) | $ | 4,814 | 4,532 | 6.2 | % | 6.8 | % | 6.9 | % | |||||||||||
Adjusted Income taxes (2)* | 751 | 680 | 10.4 | % | 15.6 | % | 15.0 | % | ||||||||||||
Adjusted net income | 4,063 | 3,852 | 5.5 | % | 5.8 | % | 5.9 | % | ||||||||||||
Adjusted net income per share-basic | $ | 0.33 | $ | 0.32 | 3.1 | % | ||||||||||||||
Adjusted net income per share-diluted | $ | 0.33 | $ | 0.31 | 6.5 | % | ||||||||||||||
Average shares outstanding-basic | 12,183 | 12,191 | (0.1 | ) % | ||||||||||||||||
Average shares outstanding-diluted | 12,389 | 12,348 | 0.3 | % |
(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 10 of 10. |
(2) Represents estimated income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 10 of 10. |
* Percent of sales column for income taxes is calculated as a % of income before income taxes. |
Page 2 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF NET INCOME | ||||||||||||||||||||
FOR THE SIX MONTHS ENDED OCTOBER 27, 2013 AND OCTOBER 28, 2012 | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
(Amounts in Thousands, Except for Per Share Data) | ||||||||||||||||||||
SIX MONTHS ENDED | ||||||||||||||||||||
Amounts | Percent of Sales | |||||||||||||||||||
October 27, | October 28, | % Over | October 27, | October 28, | ||||||||||||||||
2013 | 2012 | (Under) | 2013 | 2012 | ||||||||||||||||
Net sales | $ | 140,730 | 134,744 | 4.4 | % | 100.0 | % | 100.0 | % | |||||||||||
Cost of sales | 115,422 | 109,746 | 5.2 | % | 82.0 | % | 81.4 | % | ||||||||||||
Gross profit | 25,308 | 24,998 | 1.2 | % | 18.0 | % | 18.6 | % | ||||||||||||
Selling, general and | ||||||||||||||||||||
administrative expenses | 14,299 | 14,850 | (3.7 | ) % | 10.2 | % | 11.0 | % | ||||||||||||
Income from operations | 11,009 | 10,148 | 8.5 | % | 7.8 | % | 7.5 | % | ||||||||||||
Interest expense | 239 | 346 | (30.9 | ) % | 0.2 | % | 0.3 | % | ||||||||||||
Interest income | (195 | ) | (222 | ) | (12.2 | ) % | (0.1 | ) % | (0.2 | ) % | ||||||||||
Other expense | 616 | 121 | 409.1 | % | 0.4 | % | 0.1 | % | ||||||||||||
Income before income taxes | 10,349 | 9,903 | 4.5 | % | 7.4 | % | 7.3 | % | ||||||||||||
Income taxes* | 4,023 | (1,889 | ) | N.M. | 38.9 | % | (19.1 | ) % | ||||||||||||
Net income | $ | 6,326 | 11,792 | (46.4 | ) % | 4.5 | % | 8.8 | % | |||||||||||
Net income per share-basic | $ | 0.52 | $ | 0.95 | (45.3 | ) % | ||||||||||||||
Net income per share-diluted | $ | 0.51 | $ | 0.94 | (45.7 | ) % | ||||||||||||||
Average shares outstanding-basic | 12,165 | 12,371 | (1.7 | ) % | ||||||||||||||||
Average shares outstanding-diluted | 12,391 | 12,541 | (1.2 | ) % |
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1) | ||||||||||||||||||||
SIX MONTHS ENDED | ||||||||||||||||||||
Amounts | Percent of Sales | |||||||||||||||||||
October 27, | October 28, | % Over | October 27, | October 28, | ||||||||||||||||
2013 | 2012 | (Under) | 2013 | 2012 | ||||||||||||||||
Income before income taxes (see above) | $ | 10,349 | 9,903 | 4.5 | % | 7.4 | % | 7.3 | % | |||||||||||
Adjusted Income taxes (2)* | 1,614 | 1,485 | 8.7 | % | 15.6 | % | 15.0 | % | ||||||||||||
Adjusted net income | 8,735 | 8,418 | 3.8 | % | 6.2 | % | 6.2 | % | ||||||||||||
Adjusted net income per share-basic | $ | 0.72 | $ | 0.68 | 5.9 | % | ||||||||||||||
Adjusted net income per share-diluted | $ | 0.70 | $ | 0.67 | 4.5 | % | ||||||||||||||
Average shares outstanding-basic | 12,165 | 12,371 | (1.7 | ) % | ||||||||||||||||
Average shares outstanding-diluted | 12,391 | 12,541 | (1.2 | ) % |
(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 10 of 10. |
(2) Represents estimated income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 10 of 10. |
* Percent of sales column for income taxes is calculated as a % of income before income taxes. |
Page 3 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
OCTOBER 27, 2013, OCTOBER 28, 2012 AND APRIL 28, 2013 | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
(Amounts in Thousands) | ||||||||||||||||||||
Amounts | Increase | |||||||||||||||||||
October 27, | October 28, | (Decrease) | * April 28, | |||||||||||||||||
2013 | 2012 | Dollars | Percent | 2013 | ||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 24,267 | 23,464 | 803 | 3.4 | % | 23,530 | |||||||||||||
Short-term investments | 6,220 | 5,241 | 979 | 18.7 | % | 5,286 | ||||||||||||||
Accounts receivable | 24,937 | 20,678 | 4,259 | 20.6 | % | 23,392 | ||||||||||||||
Inventories | 44,882 | 38,261 | 6,621 | 17.3 | % | 38,418 | ||||||||||||||
Deferred income taxes | 7,745 | 4,470 | 3,275 | 73.3 | % | 7,709 | ||||||||||||||
Income taxes receivable | - | - | - | 0.0 | % | 318 | ||||||||||||||
Other current assets | 2,550 | 1,640 | 910 | 55.5 | % | 2,093 | ||||||||||||||
Total current assets | 110,601 | 93,754 | 16,847 | 18.0 | % | 100,746 | ||||||||||||||
Property, plant & equipment, net | 30,559 | 30,621 | (62 | ) | (0.2 | ) % | 30,594 | |||||||||||||
Goodwill | 11,462 | 11,462 | - | 0.0 | % | 11,462 | ||||||||||||||
Deferred income taxes | 661 | 4,738 | (4,077 | ) | (86.0 | ) % | 753 | |||||||||||||
Other assets | 2,959 | 1,868 | 1,091 | 58.4 | % | 1,151 | ||||||||||||||
Total assets | $ | 156,242 | 142,443 | 13,799 | 9.7 | % | 144,706 | |||||||||||||
Current liabilities | ||||||||||||||||||||
Current maturities of long-term debt | $ | 2,200 | 2,401 | (201 | ) | (8.4 | ) % | 2,200 | ||||||||||||
Line of credit | - | 875 | (875 | ) | (100.0 | ) % | 561 | |||||||||||||
Accounts payable - trade | 28,543 | 23,219 | 5,324 | 22.9 | % | 22,357 | ||||||||||||||
Accounts payable - capital expenditures | 66 | 104 | (38 | ) | (36.5 | ) % | 225 | |||||||||||||
Accrued expenses | 11,672 | 10,611 | 1,061 | 10.0 | % | 11,829 | ||||||||||||||
Income taxes payable - current | 304 | 385 | (81 | ) | (21.0 | ) % | 285 | |||||||||||||
Total current liabilities | 42,785 | 37,595 | 5,190 | 13.8 | % | 37,457 | ||||||||||||||
Income taxes payable - long-term | 4,141 | 4,188 | (47 | ) | (1.1 | ) % | 4,191 | |||||||||||||
Deferred income taxes | 5,016 | 856 | 4,160 | 486.0 | % | 3,075 | ||||||||||||||
Line of credit | 585 | - | 585 | 100.0 | % | - | ||||||||||||||
Long-term debt , less current maturities | 2,200 | 4,416 | (2,216 | ) | (50.2 | ) % | 4,400 | |||||||||||||
Total liabilities | 54,727 | 47,055 | 7,672 | 16.3 | % | 49,123 | ||||||||||||||
Shareholders' equity | 101,515 | 95,388 | 6,127 | 6.4 | % | 95,583 | ||||||||||||||
Total liabilities and | ||||||||||||||||||||
shareholders' equity | $ | 156,242 | 142,443 | 13,799 | 9.7 | % | 144,706 | |||||||||||||
Shares outstanding | 12,250 | 12,209 | 41 | 0.3 | % | 12,225 | ||||||||||||||
* Derived from audited financial statements. |
Page 4 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
FOR THE SIX MONTHS ENDED OCTOBER 27, 2013 AND OCTOBER 28, 2012 | ||||||||
Unaudited | ||||||||
(Amounts in Thousands) | ||||||||
SIX MONTHS ENDED | ||||||||
Amounts | ||||||||
October 27, | October 28, | |||||||
2013 | 2012 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 6,326 | $ | 11,792 | ||||
Adjustments to reconcile net income to net cash | ||||||||
provided by operating activities: | ||||||||
Depreciation | 2,636 | 2,539 | ||||||
Amortization of other assets | 81 | 119 | ||||||
Stock-based compensation | 376 | 197 | ||||||
Excess tax benefit related to stock-based compensation | (143 | ) | (60 | ) | ||||
Deferred income taxes | 2,140 | (3,325 | ) | |||||
Gain on sale of equipment | (74 | ) | - | |||||
Foreign currency exchange losses (gains) | 203 | (66 | ) | |||||
Changes in assets and liabilities, net of effects of acquisition of assets: | ||||||||
Accounts receivable | (1,419 | ) | 4,353 | |||||
Inventories | (6,331 | ) | (1,882 | ) | ||||
Other current assets | (437 | ) | 373 | |||||
Other assets | (47 | ) | (80 | ) | ||||
Accounts payable-trade | 5,923 | (7,397 | ) | |||||
Accrued expenses | (158 | ) | 1,310 | |||||
Accrued restructuring | - | (40 | ) | |||||
Income taxes | 367 | (183 | ) | |||||
Net cash provided by operating activities | 9,443 | 7,650 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (1,900 | ) | (1,946 | ) | ||||
Net cash paid for acquisition of assets | (2,640 | ) | - | |||||
Proceeds from the sale of equipment | 113 | - | ||||||
Payments on life insurance policies | (30 | ) | - | |||||
Purchase of short-term investments | (1,047 | ) | (54 | ) | ||||
Proceeds from the sale of short-term investments | - | 795 | ||||||
Net cash used in investing activities | (5,504 | ) | (1,205 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from lines of credit | - | 1,000 | ||||||
Payments on lines of credit | - | (1,000 | ) | |||||
Payments on long-term debt | (2,200 | ) | (2,300 | ) | ||||
Proceeds from common stock issued | 194 | 64 | ||||||
Common stock shares repurchased | - | (5,022 | ) | |||||
Dividends paid | (979 | ) | (747 | ) | ||||
Debt issance costs | (62 | ) | - | |||||
Excess tax benefit related to stock-based compensation | 143 | 60 | ||||||
Net cash used in financing activities | (2,904 | ) | (7,945 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (298 | ) | (59 | ) | ||||
Increase (decrease) in cash and cash equivalents | 737 | (1,559 | ) | |||||
Cash and cash equivalents at beginning of period | 23,530 | 25,023 | ||||||
Cash and cash equivalents at end of period | $ | 24,267 | $ | 23,464 | ||||
Free Cash Flow (1) | $ | 7,471 | $ | 5,705 |
(1) Free Cash Flow reconciliation is as follows: | ||||||||||
FY 2014 | FY 2013 | |||||||||
A) | Net cash provided by operating activities | $ | 9,443 | $ | 7,650 | |||||
B) | Minus: Capital Expenditures | (1,900 | ) | (1,946 | ) | |||||
C) | Add: Proceeds from the sale of equipment | 113 | - | |||||||
D) | Minus: Payments on life insurance policies | (30 | ) | - | ||||||
E) | Add: Excess tax benefit related to stock-based compensation | 143 | 60 | |||||||
F) | Effect of exchange rate changes on cash and cash equivalents | (298 | ) | (59 | ) | |||||
$ | 7,471 | $ | 5,705 | |||||||
Page 5 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
STATEMENTS OF OPERATIONS BY SEGMENT | ||||||||||||||||||||
FOR THE THREE MONTHS ENDED OCTOBER 27, 2013 AND OCTOBER 28, 2012 | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||
Amounts | Percent of Total Sales | |||||||||||||||||||
October 27, | October 28, | % Over | October 27, | October 28, | ||||||||||||||||
Net Sales by Segment | 2013 | 2012 | (Under) | 2013 | 2012 | |||||||||||||||
Mattress Fabrics | $ | 40,331 | 39,697 | 1.6 | % | 57.1 | % | 60.6 | % | |||||||||||
Upholstery Fabrics | 30,258 | 25,863 | 17.0 | % | 42.9 | % | 39.4 | % | ||||||||||||
Net Sales | $ | 70,589 | 65,560 | 7.7 | % | 100.0 | % | 100.0 | % | |||||||||||
Gross Profit by Segment | Gross Profit Margin | |||||||||||||||||||
Mattress Fabrics | $ | 7,322 | 7,539 | (2.9 | ) % | 18.2 | % | 19.0 | % | |||||||||||
Upholstery Fabrics | 4,913 | 4,338 | 13.3 | % | 16.2 | % | 16.8 | % | ||||||||||||
Gross Profit | $ | 12,235 | 11,877 | 3.0 | % | 17.3 | % | 18.1 | % | |||||||||||
Selling, General and Administrative Expenses by Segment | Percent of Sales | |||||||||||||||||||
Mattress Fabrics | $ | 2,620 | 2,424 | 8.1 | % | 6.5 | % | 6.1 | % | |||||||||||
Upholstery Fabrics | 3,170 | 3,157 | 0.4 | % | 10.5 | % | 12.2 | % | ||||||||||||
Unallocated Corporate expenses | 1,410 | 1,628 | (13.4 | ) % | 2.0 | % | 2.5 | % | ||||||||||||
Selling, General and Administrative Expenses | $ | 7,200 | 7,209 | (0.1 | ) % | 10.2 | % | 11.0 | % | |||||||||||
Operating Income (loss) by Segment | Operating Income (Loss) Margin | |||||||||||||||||||
Mattress Fabrics | $ | 4,702 | 5,115 | (8.1 | ) % | 11.7 | % | 12.9 | % | |||||||||||
Upholstery Fabrics | 1,743 | 1,181 | 47.6 | % | 5.8 | % | 4.6 | % | ||||||||||||
Unallocated corporate expenses | (1,410 | ) | (1,628 | ) | (13.4 | ) % | (2.0 | ) % | (2.5 | ) % | ||||||||||
Operating income | $ | 5,035 | 4,668 | 7.9 | % | 7.1 | % | 7.1 | % | |||||||||||
Depreciation by Segment | ||||||||||||||||||||
Mattress Fabrics | $ | 1,181 | 1,127 | 4.8 | % | |||||||||||||||
Upholstery Fabrics | 150 | 158 | (5.1 | ) % | ||||||||||||||||
Depreciation | $ | 1,331 | 1,285 | 3.6 | % |
Page 6 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
STATEMENTS OF OPERATIONS BY SEGMENT | ||||||||||||||||||||
FOR THE SIX MONTHS ENDED OCTOBER 27, 2013 AND OCTOBER 28, 2012 | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
SIX MONTHS ENDED | ||||||||||||||||||||
Amounts | Percent of Total Sales | |||||||||||||||||||
October 27, | October 28, | % Over | October 27, | October 28, | ||||||||||||||||
Net Sales by Segment | 2013 | 2012 | (Under) | 2013 | 2012 | |||||||||||||||
Mattress Fabrics | $ | 78,494 | 77,662 | 1.1 | % | 55.8 | % | 57.6 | % | |||||||||||
Upholstery Fabrics | 62,236 | 57,082 | 9.0 | % | 44.2 | % | 42.4 | % | ||||||||||||
Net Sales | $ | 140,730 | 134,744 | 4.4 | % | 100.0 | % | 100.0 | % | |||||||||||
Gross Profit by Segment | Gross Profit Margin | |||||||||||||||||||
Mattress Fabrics | $ | 14,713 | 15,161 | (3.0 | ) % | 18.7 | % | 19.5 | % | |||||||||||
Upholstery Fabrics | 10,595 | 9,837 | 7.7 | % | 17.0 | % | 17.2 | % | ||||||||||||
Gross Profit | $ | 25,308 | 24,998 | 1.2 | % | 18.0 | % | 18.6 | % | |||||||||||
Selling, General and Administrative Expenses by Segment | Percent of Sales | |||||||||||||||||||
Mattress Fabrics | $ | 4,994 | 4,814 | 3.7 | % | 6.4 | % | 6.2 | % | |||||||||||
Upholstery Fabrics | 6,436 | 6,498 | (1.0 | ) % | 10.3 | % | 11.4 | % | ||||||||||||
Unallocated Corporate expenses | 2,869 | 3,538 | (18.9 | ) % | 2.0 | % | 2.6 | % | ||||||||||||
Selling, General, and Administrative Expenses | $ | 14,299 | 14,850 | (3.7 | ) % | 10.2 | % | 11.0 | % | |||||||||||
Operating Income (loss) by Segment | Operating Income (Loss) Margin | |||||||||||||||||||
Mattress Fabrics | $ | 9,719 | 10,347 | (6.1 | ) % | 12.4 | % | 13.3 | % | |||||||||||
Upholstery Fabrics | 4,159 | 3,339 | 24.6 | % | 6.7 | % | 5.8 | % | ||||||||||||
Unallocated corporate expenses | (2,869 | ) | (3,538 | ) | (18.9 | ) % | (2.0 | ) % | (2.6 | ) % | ||||||||||
Operating income | $ | 11,009 | 10,148 | 8.5 | % | 7.8 | % | 7.5 | % | |||||||||||
Return on Capital (1) | ||||||||||||||||||||
Mattress Fabrics | 33.0 | % | 37.4 | % | ||||||||||||||||
Upholstery Fabrics | 43.2 | % | 39.9 | % | ||||||||||||||||
Unallocated Corporate | N/A | N/A | ||||||||||||||||||
Consolidated | 29.0 | % | 28.5 | % | ||||||||||||||||
Capital Employed (2) | ||||||||||||||||||||
Mattress Fabrics | 58,944 | 55,102 | 7.0 | % | ||||||||||||||||
Upholstery Fabrics | 20,300 | 16,728 | 21.4 | % | ||||||||||||||||
Unallocated Corporate | (2,176 | ) | (1,234 | ) | N/A | |||||||||||||||
Consolidated | 77,068 | 70,596 | 9.2 | % | ||||||||||||||||
Depreciation by Segment | ||||||||||||||||||||
Mattress Fabrics | $ | 2,331 | 2,219 | 5.0 | % | |||||||||||||||
Upholstery Fabrics | 305 | 320 | (4.7 | ) % | ||||||||||||||||
Depreciation | $ | 2,636 | 2,539 | 3.8 | % | |||||||||||||||
Notes: | ||||||||||||||||||||
(1) See pages 8 and 9 of this financial information release for calculations. |
(2) The capital employed balances are as of October 27, 2013 and October 28, 2012. |
Page 7 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA | ||||||||||||||||||||
FOR THE TWELVE MONTHS ENDED OCTOBER 27, 2013 AND OCTOBER 28, 2012 | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
(AMOUNTS IN THOUSANDS) | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||
Trailing 12 | ||||||||||||||||||||
Months | ||||||||||||||||||||
1/27/13 | 4/28/2013 | 7/28/2013 | 10/27/2013 | 10/27/2013 | ||||||||||||||||
Net income | $ | 2,823 | $ | 3,702 | $ | 3,230 | $ | 3,096 | $ | 12,851 | ||||||||||
Income taxes | 1,700 | 2,161 | 2,305 | 1,718 | 7,884 | |||||||||||||||
Interest expense (income), net | 40 | 50 | 48 | (3 | ) | 135 | ||||||||||||||
Depreciation and amortization expense | 1,338 | 1,354 | 1,344 | 1,373 | 5,409 | |||||||||||||||
Stock based compensation | 111 | 254 | 152 | 224 | 741 | |||||||||||||||
Adjusted EBITDA | $ | 6,012 | $ | 7,521 | $ | 7,079 | $ | 6,408 | $ | 27,020 | ||||||||||
Quarter Ended | ||||||||||||||||||||
Trailing 12 | ||||||||||||||||||||
Months | ||||||||||||||||||||
1/29/12 | 4/29/2012 | 7/29/2012 | 10/28/2012 | 10/28/2012 | ||||||||||||||||
Net income | $ | 1,802 | $ | 3,423 | $ | 3,524 | $ | 8,268 | $ | 17,017 | ||||||||||
Income taxes | 1,075 | 2,071 | 1,848 | (3,736 | ) | 1,258 | ||||||||||||||
Interest expense, net | 33 | 69 | 63 | 60 | 225 | |||||||||||||||
Depreciation and amortization expense | 1,270 | 1,325 | 1,314 | 1,344 | 5,253 | |||||||||||||||
Stock based compensation | 80 | 91 | 70 | 127 | 368 | |||||||||||||||
Adjusted EBITDA | $ | 4,260 | $ | 6,979 | $ | 6,819 | $ | 6,063 | $ | 24,121 |
Page 8 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||||||
RETURN ON CAPITAL EMPLOYED BY SEGMENT | |||||||||||||
FOR THE SIX MONTHS ENDED OCTOBER 27, 2013 | |||||||||||||
(Amounts in Thousands) | |||||||||||||
(Unaudited) | |||||||||||||
Operating Income | |||||||||||||
Six Months | Average | Return on | |||||||||||
Ended | Capital | Avg. Capital | |||||||||||
October 27, 2013 (1) | Employed (3) | Employed (2) | |||||||||||
Mattress Fabrics | $ | 9,719 | $ | 58,828 | 33.0 | % | |||||||
Upholstery Fabrics | 4,159 | 19,274 | 43.2 | % | |||||||||
(less: Unallocated Corporate) | (2,869 | ) | (2,083 | ) | N/A | ||||||||
Total | $ | 11,009 | $ | 76,019 | 29.0 | % |
Average Capital Employed | As of the three Months Ended October 27, 2013 | As of the three Months Ended July 28, 2013 | As of the three Months Ended April 28, 2013 | |||||||||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||||||||||
Total assets | 79,444 | 35,881 | 40,917 | 156,242 | 78,217 | 34,381 | 38,503 | 151,101 | 73,954 | 30,995 | 39,757 | 144,706 | ||||||||||||||||||||||||||||||||||||
Total liabilities | (20,500 | ) | (15,581 | ) | (18,646 | ) | (54,727 | ) | (18,627 | ) | (14,172 | ) | (19,717 | ) | (52,516 | ) | (16,004 | ) | �� | (13,682 | ) | (19,437 | ) | (49,123 | ) | |||||||||||||||||||||||
Subtotal | $ | 58,944 | $ | 20,300 | $ | 22,271 | $ | 101,515 | $ | 59,590 | $ | 20,209 | $ | 18,786 | $ | 98,585 | $ | 57,950 | $ | 17,313 | $ | 20,320 | $ | 95,583 | ||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | (24,267 | ) | (24,267 | ) | - | - | (21,423 | ) | (21,423 | ) | - | - | (23,530 | ) | (23,530 | ) | ||||||||||||||||||||||||||||||
Short-term investments | - | - | (6,220 | ) | (6,220 | ) | - | - | (6,174 | ) | (6,174 | ) | - | - | (5,286 | ) | (5,286 | ) | ||||||||||||||||||||||||||||||
Income taxes receivable | - | - | - | - | - | - | (292 | ) | (292 | ) | - | - | (318 | ) | (318 | ) | ||||||||||||||||||||||||||||||||
Deferred income taxes - current | - | - | (7,745 | ) | (7,745 | ) | - | - | (7,747 | ) | (7,747 | ) | - | - | (7,709 | ) | (7,709 | ) | ||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | (661 | ) | (661 | ) | - | - | (651 | ) | (651 | ) | - | - | (753 | ) | (753 | ) | ||||||||||||||||||||||||||||||
Current maturities of long-term debt | - | - | 2,200 | 2,200 | - | - | 2,200 | 2,200 | - | - | 2,200 | 2,200 | ||||||||||||||||||||||||||||||||||||
Line of credit | - | - | 585 | 585 | - | - | 560 | 560 | 561 | 561 | ||||||||||||||||||||||||||||||||||||||
Income taxes payable - current | - | - | 304 | 304 | - | - | 320 | 320 | - | - | 285 | 285 | ||||||||||||||||||||||||||||||||||||
Income taxes payable - long-term | - | - | 4,141 | 4,141 | - | - | 4,176 | 4,176 | - | - | 4,191 | 4,191 | ||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | 5,016 | 5,016 | - | - | 4,335 | 4,335 | - | - | 3,075 | 3,075 | ||||||||||||||||||||||||||||||||||||
Long-term debt, less current maturities | - | - | 2,200 | 2,200 | - | - | 4,400 | 4,400 | - | - | 4,400 | 4,400 | ||||||||||||||||||||||||||||||||||||
Total Capital Employed | $ | 58,944 | $ | 20,300 | $ | (2,176 | ) | $ | 77,068 | $ | 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) | $ | 58,828 | $ | 19,274 | $ | (2,083 | ) | $ | 76,019 |
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 27, 2013 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 and receivable. |
(3) Average capital employed was computed using the three periods ending October 27, 2013, July 28, 2013 and April 28, 2013. |
Page 9 of 10
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 | Average | Return on | |||||||||||
Ended | Capital | Avg. Capital | |||||||||||
October 28, 2012 (1) | Employed (3) | 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 10 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||
CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE, NET INCOME AND EARNINGS PER SHARE | ||||||||||||
FOR THE SIX MONTHS ENDED OCTOBER 27, 2013 AND OCTOBER 28, 2012 | ||||||||||||
Unaudited | ||||||||||||
(Amounts in Thousands) | ||||||||||||
SIX MONTHS ENDED | ||||||||||||
Amounts | ||||||||||||
October 27, | October 28, | |||||||||||
2013 | 2012 | |||||||||||
Consolidated Effective GAAP Income Tax Rate | (1) | 38.9 | % | (19.1 | )% | |||||||
Reduction of U.S. Valuation Allowance | - | 123.0 | % | |||||||||
Undistributed earnings from foreign subsidiaries | - | (66.5 | )% | |||||||||
Non-Cash U.S. Income Tax Expense | (23.0 | )% | (20.4 | )% | ||||||||
Non-Cash Foreign Income Tax Expense | (0.3 | )% | (2.0 | )% | ||||||||
Consolidated Adjusted Effective Income Tax Rate | (2) | 15.6 | % | 15.0 | % |
THREE MONTHS ENDED | ||||||||||||||||||||||||
As reported | October 27, 2013 | As reported | October 28, 2012 | |||||||||||||||||||||
October 27, | Proforma Net | October 28, | Proforma Net | |||||||||||||||||||||
2013 | Adjustments | of Adjustments | 2012 | Adjustments | of Adjustments | |||||||||||||||||||
Income before income taxes | $ | 4,814 | $ | - | $ | 4,814 | $ | 4,532 | $ | 4,532 | ||||||||||||||
Income taxes (3) | 1,718 | $ | (967 | ) | 751 | (3,736 | ) | $ | 4,416 | 680 | ||||||||||||||
Net income | $ | 3,096 | $ | 967 | $ | 4,063 | $ | 8,268 | $ | (4,416 | ) | $ | 3,852 | |||||||||||
Net income per share-basic | $ | 0.25 | $ | (0.08 | ) | $ | 0.33 | $ | 0.68 | $ | 0.36 | $ | 0.32 | |||||||||||
Net income per share-diluted | $ | 0.25 | $ | (0.08 | ) | $ | 0.33 | $ | 0.67 | $ | 0.36 | $ | 0.31 | |||||||||||
Average shares outstanding-basic | 12,183 | 12,183 | 12,183 | 12,191 | 12,191 | 12,191 | ||||||||||||||||||
Average shares outstanding-diluted | 12,389 | 12,389 | 12,389 | 12,348 | 12,348 | 12,348 |
SIX MONTHS ENDED | ||||||||||||||||||||||||
As reported | October 27, 2013 | As reported | October 28, 2012 | |||||||||||||||||||||
October 27, | Proforma Net | October 28, | Proforma Net | |||||||||||||||||||||
2013 | Adjustments | of Adjustments | 2012 | Adjustments | of Adjustments | |||||||||||||||||||
Income before income taxes | $ | 10,349 | $ | - | $ | 10,349 | $ | 9,903 | $ | - | $ | 9,903 | ||||||||||||
Income taxes (3) | 4,023 | $ | (2,409 | ) | 1,614 | (1,889 | ) | $ | 3,374 | 1,485 | ||||||||||||||
Net income | $ | 6,326 | $ | 2,409 | $ | 8,735 | $ | 11,792 | $ | (3,374 | ) | $ | 8,418 | |||||||||||
Net income per share-basic | $ | 0.52 | $ | (0.20 | ) | $ | 0.72 | $ | 0.95 | $ | 0.27 | $ | 0.68 | |||||||||||
Net income per share-diluted | $ | 0.51 | $ | (0.19 | ) | $ | 0.70 | $ | 0.94 | $ | 0.27 | $ | 0.67 | |||||||||||
Average shares outstanding-basic | 12,165 | 12,165 | 12,165 | 12,371 | 12,371 | 12,371 | ||||||||||||||||||
Average shares outstanding-diluted | 12,391 | 12,391 | 12,391 | 12,541 | 12,541 | 12,541 |
(1) Calculated by dividing consolidated income tax expense (benefit) 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 income taxes calculated using the Consolidated Adjusted Effective Income Tax Rate as reflected above. |