Culp (CULP) 8-K Results of Operations and Financial Condition

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.