Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Jan. 26, 2014 | |
Document Information [Line Items] | ' |
Document Type | '10-Q |
Amendment Flag | 'false |
Document Period End Date | 26-Jan-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q3 |
Trading Symbol | 'CFI |
Entity Registrant Name | 'CULP INC |
Entity Central Index Key | '0000723603 |
Current Fiscal Year End Date | '--04-27 |
Entity Filer Category | 'Accelerated Filer |
Entity Common Stock, Shares Outstanding | 12,250,030 |
CONSOLIDATED_STATEMENTS_OF_NET
CONSOLIDATED STATEMENTS OF NET INCOME (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 26, 2014 | Jan. 27, 2013 | Jan. 26, 2014 | Jan. 27, 2013 |
Net sales | $72,389 | $63,695 | $213,119 | $198,439 |
Cost of sales | 60,552 | 52,010 | 175,974 | 161,757 |
Gross profit | 11,837 | 11,685 | 37,145 | 36,682 |
Selling, general and administrative expenses | 7,041 | 6,822 | 21,340 | 21,672 |
Income from operations | 4,796 | 4,863 | 15,805 | 15,010 |
Interest expense | 91 | 145 | 330 | 491 |
Interest income | -148 | -105 | -343 | -328 |
Other expense | 279 | 300 | 895 | 421 |
Income before income taxes | 4,574 | 4,523 | 14,923 | 14,426 |
Income taxes | -3,807 | 1,700 | 216 | -188 |
Net income | $8,381 | $2,823 | $14,707 | $14,614 |
Net income per share, basic | $0.69 | $0.23 | $1.21 | $1.19 |
Net income per share, diluted | $0.68 | $0.23 | $1.19 | $1.17 |
Average shares outstanding, basic | 12,188 | 12,095 | 12,173 | 12,279 |
Average shares outstanding, diluted | 12,405 | 12,290 | 12,405 | 12,467 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 26, 2014 | Jan. 27, 2013 | Jan. 26, 2014 | Jan. 27, 2013 |
Net income | $8,381 | $2,823 | $14,707 | $14,614 |
Other comprehensive (loss) income | ' | ' | ' | ' |
Unrealized (losses) gains on short-term investments | -14 | -34 | -128 | 10 |
Total other comprehensive (loss) income | -14 | -34 | -128 | 10 |
Comprehensive income | $8,367 | $2,789 | $14,579 | $14,624 |
CONSOLIDATED_BALANCE_SHEETS_UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $) | Jan. 26, 2014 | Apr. 28, 2013 | Jan. 27, 2013 | |
In Thousands, unless otherwise specified | ||||
Current assets: | ' | ' | ' | |
Cash and cash equivalents | $23,293 | $23,530 | [1] | $19,489 |
Short-term investments | 7,077 | 5,286 | [1] | 5,237 |
Accounts receivable, net | 26,392 | 23,392 | [1] | 24,257 |
Inventories | 43,687 | 38,418 | [1] | 42,177 |
Deferred income taxes | 7,503 | 7,709 | [1] | 4,098 |
Income taxes receivable | ' | 318 | [1] | ' |
Other current assets | 2,999 | 2,093 | [1] | 1,655 |
Total current assets | 110,951 | 100,746 | [1] | 96,913 |
Property, plant and equipment, net | 30,115 | 30,594 | [1] | 30,055 |
Goodwill | 11,462 | 11,462 | [1] | 11,462 |
Deferred income taxes | 1,227 | 753 | [1] | 4,172 |
Other assets | 2,923 | 1,151 | [1] | 1,195 |
Total assets | 156,678 | 144,706 | [1] | 143,797 |
Current liabilities: | ' | ' | ' | |
Current maturities of long-term debt | 2,200 | 2,200 | [1] | 2,366 |
Line of credit | ' | 561 | [1] | 576 |
Accounts payable-trade | 25,187 | 22,357 | [1] | 26,220 |
Accounts payable - capital expenditures | 235 | 225 | [1] | ' |
Accrued expenses | 11,812 | 11,829 | [1] | 12,823 |
Income taxes payable - current | 130 | 285 | [1] | 395 |
Total current liabilities | 39,564 | 37,457 | [1] | 42,380 |
Income taxes payable - long-term | 3,953 | 4,191 | [1] | 4,195 |
Deferred income taxes | 945 | 3,075 | [1] | 856 |
Line of credit | 573 | ' | ' | |
Long-term debt, less current maturities | 2,200 | 4,400 | [1] | 4,400 |
Total liabilities | 47,235 | 49,123 | [1] | 51,831 |
Commitments and Contingencies (Note 16) | ' | ' | [1] | ' |
Shareholders' equity | 109,443 | 95,583 | [1] | 91,966 |
Total liabilities and shareholders' equity | $156,678 | $144,706 | [1] | $143,797 |
Shares outstanding | 12,250 | 12,225 | [1] | 12,225 |
[1] | Derived from audited financial statements. |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 26, 2014 | Jan. 27, 2013 | |
Cash flows from operating activities: | ' | ' | |
Net income | $14,707 | $14,614 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | |
Depreciation | 3,964 | 3,818 | |
Amortization of other assets | 123 | 178 | |
Stock-based compensation | 551 | 308 | |
Excess tax benefit related to stock-based compensation | -143 | -77 | |
Deferred income taxes | -2,255 | -2,370 | |
Gain on sale of equipment | -108 | ' | |
Foreign currency exchange losses | 353 | 153 | |
Changes in assets and liabilities, net of effects of acquisition of assets: | ' | ' | |
Accounts receivable | -2,844 | 776 | |
Inventories | -5,081 | -5,794 | |
Other current assets | -882 | 353 | |
Other assets | -53 | -92 | |
Accounts payable - trade | 2,487 | -4,395 | |
Accrued expenses | 13 | 3,526 | |
Accrued restructuring | ' | -40 | |
Income taxes | 162 | -141 | |
Net cash provided by operating activities | 10,994 | 10,817 | |
Cash flows from investing activities: | ' | ' | |
Capital expenditures | -2,656 | -2,763 | |
Net cash paid for acquisition of assets | -2,640 | ' | |
Proceeds from the sale of equipment | 188 | ' | |
Proceeds from life insurance policies | ' | 626 | |
Payments on life insurance policies | -30 | ' | |
Purchase of short-term investments | -1,916 | -84 | |
Proceeds from the sale of short-term investments | ' | 795 | |
Net cash used in investing activities | -7,054 | -1,426 | |
Cash flows from financing activities: | ' | ' | |
Proceeds from lines of credit | ' | 1,000 | |
Payments on lines of credit | ' | -1,325 | |
Payments on long-term debt | -2,200 | -2,350 | |
Proceeds from common stock issued | 194 | 205 | |
Common stock repurchased | ' | -5,022 | |
Dividends paid | -1,592 | -7,226 | |
Debt issuance costs | -62 | ' | |
Excess tax benefit related to stock-based compensation | 143 | 77 | |
Net cash used in financing activities | -3,517 | -14,641 | |
Effect of exchange rate changes on cash and cash equivalents | -660 | -284 | |
Decrease in cash and cash equivalents | -237 | -5,534 | |
Cash and cash equivalents at beginning of period | 23,530 | [1] | 25,023 |
Cash and cash equivalents at end of period | $23,293 | $19,489 | |
[1] | Derived from audited financial statements. |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) (USD $) | Total | Common Stock | Capital Contributed in Excess of Par Value | Accumulated Earnings | Accumulated Other Comprehensive Income (Loss) | |
In Thousands, except Share data | ||||||
Balance at Apr. 29, 2012 | $89,000 | $635 | $46,056 | $42,293 | $16 | |
Balance (in shares) at Apr. 29, 2012 | ' | 12,702,806 | ' | ' | ' | |
Net income | 18,317 | ' | ' | 18,317 | ' | |
Stock-based compensation | 562 | ' | 562 | ' | ' | |
Unrealized gain (loss) on short-term investments | 38 | ' | ' | ' | 38 | |
Excess tax benefit related to stock based compensation | 76 | ' | 76 | ' | ' | |
Common stock repurchased (in shares) | ' | -502,595 | ' | ' | ' | |
Common stock repurchased | -5,022 | -25 | -4,997 | ' | ' | |
Fully vested common stock award | ' | 1,658 | ' | ' | ' | |
Common stock issued in connection with stock option plans (in shares) | ' | 23,025 | ' | ' | ' | |
Common stock issued in connection with stock option plans | 205 | 1 | 204 | ' | ' | |
Dividends paid | -7,593 | ' | ' | -7,593 | ' | |
Balance at Apr. 28, 2013 | [1] | 95,583 | 611 | 41,901 | 53,017 | 54 |
Balance (in shares) at Apr. 28, 2013 | [1] | ' | 12,224,894 | ' | ' | ' |
Net income | 14,707 | ' | ' | 14,707 | ' | |
Stock-based compensation | 551 | ' | 551 | ' | ' | |
Unrealized gain (loss) on short-term investments | -128 | ' | ' | ' | -128 | |
Excess tax benefit related to stock based compensation | 143 | ' | 143 | ' | ' | |
Fully vested common stock award | ' | 3,000 | ' | ' | ' | |
Common stock issued in connection with stock option plans (in shares) | ' | 23,125 | ' | ' | ' | |
Common stock issued in connection with stock option plans | 194 | 1 | 193 | ' | ' | |
Common stock surrendered for withholding taxes payable (in shares) | ' | -989 | ' | ' | ' | |
Common stock surrendered for withholding taxes payable | -15 | ' | -15 | ' | ' | |
Dividends paid | -1,592 | ' | ' | -1,592 | ' | |
Balance at Jan. 26, 2014 | $109,443 | $612 | $42,773 | $66,132 | ($74) | |
Balance (in shares) at Jan. 26, 2014 | ' | 12,250,030 | ' | ' | ' | |
[1] | Derived from audited financial statements. |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Jan. 26, 2014 | |
Basis of Presentation | ' |
1. Basis of Presentation | |
The accompanying unaudited consolidated financial statements of Culp, Inc. and subsidiaries (the “company”) include all adjustments, which are, in the opinion of management, necessary for fair presentation of the results of operations and financial position. All of these adjustments are of a normal recurring nature except as disclosed in notes 3 and 14 to the consolidated financial statements. Results of operations for interim periods may not be indicative of future results. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements, which are included in the company’s annual report on Form 10-K filed with the Securities and Exchange Commission on July 12, 2013 for the fiscal year ended April 28, 2013. | |
The company’s nine months ended January 26, 2014 and January 27, 2013, represent 39 week periods, respectively. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended |
Jan. 26, 2014 | |
Significant Accounting Policies | ' |
2. Significant Accounting Policies | |
As of January 26, 2014, there were no changes in the nature of our significant accounting policies or the application of those policies from those reported in our annual report on Form 10-K for the year then ended April 28, 2013. | |
Recently Adopted Accounting Pronouncements | |
None | |
Recently Issued Accounting Pronouncements | |
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update which requires an unrecognized tax benefit to be presented as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward that the entity intends to use and is available for settlement at the reporting date. This update will be effective for us in the fourth quarter of fiscal 2014 and will not have an impact on our financial position, results of operations, or cash flows. |
Business_Combination_Mattress_
Business Combination - Mattress Fabric Segment | 9 Months Ended | ||||||||
Jan. 26, 2014 | |||||||||
Business Combination - Mattress Fabric Segment | ' | ||||||||
3. Business Combination – Mattress Fabric Segment | |||||||||
On May 8, 2013, we entered into an asset purchase and consulting agreement with Bodet & Horst GMBH & Co. KG and certain affiliates (“Bodet & Horst”) that provides for, among other things, the purchase of equipment and certain other assets from Bodet & Horst and the restructuring of prior consulting and non-compete agreements pursuant to an earlier asset purchase and consulting agreement with Bodet & Horst dated August 11, 2008. This agreement was accounted for as a business combination in accordance with ASC Topic 805, Business Combinations. We agreed with Bodet & Horst to replace the prior non-compete agreement that prevented us from selling certain mattress fabrics and products to a leading manufacturer, which now allows us to make such sales. In addition, the prior consulting and non-compete agreement, under which Bodet & Horst agreed not to sell most mattress fabrics in North America, was replaced, expanded, and extended pursuant to the new asset purchase and consulting agreement. | |||||||||
The purchase price for the equipment and the other certain assets noted below was $2.6 million in cash. | |||||||||
Direct acquisition costs related to this business combination totaled $83,000. | |||||||||
The following table presents the allocation of the acquisition cost to the assets acquired based on their fair values: | |||||||||
(dollars in thousands) | Fair Value | ||||||||
Equipment | $ | 890 | |||||||
Non-compete agreement (Notes 7 and 10) | 882 | ||||||||
Customer relationships (Notes 7 and 10) | 868 | ||||||||
$ | 2,640 | ||||||||
The company recorded its non-compete at its fair value based on a discounted cash flow valuation model. The company recorded its customer relationships at its fair value based on a multi-period excess earnings valuation model. This non-compete agreement will be amortized on a straight line basis over the fifteen year life of the agreement. The customer relationships will be amortized on a straight line basis over their useful life of seventeen years. The equipment will be amortized on a straight line basis over their useful life of seven years. | |||||||||
The following unaudited pro forma consolidated results of operations for the three and nine month periods ending January 26, 2014 and January 27, 2013 have been prepared as if the acquisition of Bodet & Horst had occurred on April 30, 2012: | |||||||||
Three months ended | |||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | |||||||
Net Sales | $ | 72,389 | $ | 66,162 | |||||
Income from operations | 4,796 | 4,854 | |||||||
Net income | 8,381 | 2,858 | |||||||
Net income per share, basic | 0.69 | 0.24 | |||||||
Net income per share, diluted | 0.68 | 0.23 | |||||||
Nine months ended | |||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | |||||||
Net Sales | $ | 213,119 | $ | 205,839 | |||||
Income from operations | 15,805 | 14,982 | |||||||
Net income | 14,707 | 14,532 | |||||||
Net income per share, basic | 1.21 | 1.18 | |||||||
Net income per share, diluted | 1.19 | 1.17 | |||||||
The unaudited pro forma information is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have been achieved had the acquisition been consummated as of that time, nor is it intended to be a projection of future results. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended |
Jan. 26, 2014 | |
Stock-Based Compensation | ' |
4. Stock-Based Compensation | |
Incentive Stock Option Awards | |
We did not grant any incentive stock option awards during the nine month period ending January 26, 2014. | |
At January 26, 2014, options to purchase 153,950 shares of common stock were outstanding and exercisable, had a weighted average exercise price of $6.70 per share, and a weighted average contractual term of 3.9 years. At January 26, 2014, the aggregate intrinsic value for options outstanding was $2.1 million. | |
The aggregate intrinsic value for options exercised for the nine months ending January 26, 2014 and January 27, 2013, was $224,000 and $90,000, respectively. | |
There was no unrecognized compensation cost related to incentive stock option awards at January 26, 2014. | |
We recorded $10,000 and $53,000 of compensation expense on incentive stock option grants within selling, general, and administrative expense for the nine months ended January 26, 2014, and January 27, 2013, respectively. | |
Common Stock Awards | |
On October 1, 2013, we granted a total of 3,000 shares of common stock to our outside directors. These shares of common stock vested immediately and were measured at $18.84 per share, which represents the closing price of the company’s common stock at the date of grant. | |
On October 8, 2012, we granted a total of 1,658 shares of common stock to certain outside directors. | |
These shares of common stock vested immediately and were measured at $12.13 per share, which represents the closing price of the company’s common stock at the date of grant. | |
We recorded $57,000 and $20,000 of compensation expense within selling, general, and administrative expense for these common stock awards for the nine month periods ending January 26, 2014, and January 27, 2013, respectively. | |
Time Vested Restricted Stock Awards | |
We did not grant any time vested restricted stock awards during the nine month period ended January 26, 2014. | |
We recorded $52,000 and $116,000 of compensation expense within selling, general, and administrative expense for time vested restricted stock awards for the nine month periods ending January 26, 2014, and January 27, 2013, respectively. | |
At January 26, 2014, there were 61,667 shares of time vested restricted stock outstanding and unvested. Of the 61,667 shares outstanding and unvested, 35,000 shares (granted on January 7, 2009) will vest on May 1, 2014. The remaining 26,667 shares (granted on July 1, 2009) will vest on July 1, 2014. At January 26, 2014, the weighted average fair value of these outstanding and unvested shares was $4.25 per share. | |
During the nine month period ended January 26, 2014, 61,667 shares of time vested restricted stock vested and had a weighted average fair value of $249,000 or $4.04 per share. During the nine month period ended January 27, 2013, 61,665 shares of time vested restricted stock vested and had a weighted average fair value of $232,000 or $3.76 per share. | |
At January 26, 2014, the remaining unrecognized compensation cost related to the unvested restricted stock awards was $19,000, which is expected to be recognized over a weighted average vesting period of 0.4 years. | |
Performance Based Restricted Stock Units | |
Fiscal 2014 Grant | |
On June 25, 2013, certain key members of management were granted performance based restricted common stock units which could earn up to 72,380 shares of common stock if certain performance targets are met as defined in the related restricted stock unit agreements. These awards were valued based on the fair market value on the date of grant. The fair value of these awards was $17.12, which represents the closing price of our common stock on the date of grant. The vesting of these awards is over the requisite service period of three years. | |
Fiscal 2013 Grant | |
On July 11, 2012, certain key members of management were granted performance based restricted common stock units which could earn up to 120,000 shares of common stock if certain performance targets are met as defined in the related restricted stock unit agreements. These awards were valued based on the fair market value on the date of grant. The fair value of these awards was $10.21, which represents the closing price of our common stock on the date of grant. The vesting of these awards is over the requisite service period of three years. | |
Overall | |
The company recorded compensation expense of $432,000 and $119,000 within selling, general, and administrative expense for performance based restricted stock units for the nine month periods ending January 26, 2014 and January 27, 2013, respectively. Compensation cost is recorded based on an assessment each reporting period of the probability that certain performance goals will be met during the vesting period. If performance goals are not probable of occurrence, no compensation cost will be recognized and any recognized compensation cost would be reversed. | |
As of January 26, 2014, the remaining unrecognized compensation cost related to the performance based restricted stock units was $1.1 million, which is expected to be recognized over a weighted average vesting period of 1.9 years. |
Accounts_Receivable
Accounts Receivable | 9 Months Ended | ||||||||||||
Jan. 26, 2014 | |||||||||||||
Accounts Receivable | ' | ||||||||||||
5. Accounts Receivable | |||||||||||||
A summary of accounts receivable follows: | |||||||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | 28-Apr-13 | ||||||||||
Customers | $ | 27,424 | $ | 25,533 | $ | 24,715 | |||||||
Allowance for doubtful accounts | (484 | ) | (696 | ) | (780 | ) | |||||||
Reserve for returns and allowances and discounts | (548 | ) | (580 | ) | (543 | ) | |||||||
$ | 26,392 | $ | 24,257 | $ | 23,392 | ||||||||
A summary of the activity in the allowance for doubtful accounts follows: | |||||||||||||
Nine months ended | |||||||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | |||||||||||
Beginning balance | $ | (780 | ) | $ | (567 | ) | |||||||
Provision for bad debts | 235 | (193 | ) | ||||||||||
Net write-offs, net of recoveries | 61 | 64 | |||||||||||
Ending balance | $ | (484 | ) | $ | (696 | ) | |||||||
A summary of the activity in the allowance for returns and allowances and discounts accounts follows: | |||||||||||||
Nine months ended | |||||||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | |||||||||||
Beginning balance | $ | (543 | ) | $ | (478 | ) | |||||||
Provision for returns, allowances and discounts | (1,579 | ) | (2,146 | ) | |||||||||
Credits issued | 1,574 | 2,044 | |||||||||||
Ending balance | $ | (548 | ) | $ | (580 | ) |
Inventories
Inventories | 9 Months Ended | ||||||||||||
Jan. 26, 2014 | |||||||||||||
Inventories | ' | ||||||||||||
6. Inventories | |||||||||||||
Inventories are carried at the lower of cost or market. Cost is determined using the FIFO (first-in, first-out) method. | |||||||||||||
A summary of inventories follows: | |||||||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | 28-Apr-13 | ||||||||||
Raw materials | $ | 6,177 | $ | 6,037 | $ | 5,311 | |||||||
Work-in-process | 2,177 | 2,772 | 2,539 | ||||||||||
Finished goods | 35,333 | 33,368 | 30,568 | ||||||||||
$ | 43,687 | $ | 42,177 | $ | 38,418 |
Other_Assets
Other Assets | 9 Months Ended | ||||||||||||
Jan. 26, 2014 | |||||||||||||
Other Assets | ' | ||||||||||||
7. Other Assets | |||||||||||||
A summary of other assets follows: | |||||||||||||
(dollars in thousands) | January 26, 2014 | 27-Jan-13 | 28-Apr-13 | ||||||||||
Cash surrender value – life insurance | $ | 647 | $ | 700 | $ | 625 | |||||||
Non-compete agreement | 1,047 | 222 | 185 | ||||||||||
Customer relationships | 830 | - | - | ||||||||||
Other | 399 | 273 | 341 | ||||||||||
$ | 2,923 | $ | 1,195 | $ | 1,151 | ||||||||
Non-Compete Agreement | |||||||||||||
In connection with the asset purchase and consulting agreement with Bodet & Horst on May 8, 2013 (see note 3), we restructured our prior non-compete agreement pursuant to our asset purchase and consulting agreement dated August 11, 2008. We agreed with Bodet & Horst to replace the prior non-compete agreement that prevented us from selling certain mattress fabrics and products to a leading manufacturer that will now allow us to make such sales. In addition, the prior consulting and non-compete agreement, under which Bodet & Horst agreed not to sell mattress fabrics in North America, was replaced, expanded, and extended pursuant to the new asset purchase consulting agreement. We recorded this non-compete agreement at its fair value based on a discounted cash flow valuation model. This non-compete agreement is amortized on a straight-line basis over the fifteen year life of the agreement and requires quarterly payments of $12,500 through May 2014. As of January 26, 2014, the total remaining non-compete payments were $25,000. | |||||||||||||
The gross carrying amount of this non-compete agreement was $2.0 million, $1.1 million, and $1.1 million at January 26, 2014, January 27, 2013, and April 28, 2013, respectively. At January 26, 2014, January 27, 2013, and April 28, 2013, accumulated amortization for the non-compete agreement was $996,000, $890,000 and $940,000, respectively. | |||||||||||||
Of the $1.0 million non-compete agreement carrying amount at January 26, 2014, $209,000 pertains to the non-compete agreement that was in place as part of the asset purchase agreement dated August 11, 2008, and $838,000 pertains to the non-compete agreement pursuant to the asset purchase agreement dated May 8, 2013 that restructured and expanded the non-compete agreement that was in place effective August 11, 2008. | |||||||||||||
Amortization expense for the non-compete agreement was $56,000 and $148,000 for the nine month periods ended January 26, 2014 and January 27, 2013, respectively. The remaining amortization expense (which includes the total remaining Bodet & Horst non-compete payments of $25,000) for the next five fiscal years and thereafter follows: FY 2014 - $18,000; FY 2015 - $75,000; FY 2016 - $75,000; FY 2017 - $75,000; FY 2018 - $75,000; and Thereafter - $754,000. | |||||||||||||
The weighted average amortization period for the non-compete agreement is 14.3 years as of January 26, 2014. | |||||||||||||
Customer Relationships | |||||||||||||
In connection with the asset purchase and consulting agreement with Bodet & Horst noted above, we purchased certain customer relationships. We recorded the customer relationships at their fair value based on a multi-period excess earnings valuation model. The gross carrying amount of these customer relationships was $868,000 at January 26, 2014. Accumulated amortization for these customer relationships was $38,000 at January 26, 2014. | |||||||||||||
The customer relationships are amortized on a straight-line basis over their seventeen year useful life. Amortization expense for the customer relationships was $38,000 for the nine months ending January 26, 2014. The remaining amortization expense for the next five fiscal years and thereafter follows: FY 2014 - $13,000; FY 2015 - $51,000; FY 2016 - $51,000; FY 2017 - $51,000; FY 2018 - $51,000; and Thereafter - $613,000. | |||||||||||||
The weighted average amortization period for our customer relationships is 16.3 years as of January 26, 2014. | |||||||||||||
Cash Surrender Value – Life Insurance | |||||||||||||
We had two life insurance contracts with death benefits to the respective insured totaling $4.4 million at January 26, 2014, and April 28, 2013, respectively. At January 27, 2013, we had three life insurance contracts with death benefits to the respective insured totaling $4.9 million. Our cash surrender value – life insurance balances of $647,000, $700,000, and $625,000 at January 26, 2014, January 27, 2013, and April 28, 2013, respectively, are collectible upon death of the respective insured. |
Accrued_Expenses
Accrued Expenses | 9 Months Ended | ||||||||||||
Jan. 26, 2014 | |||||||||||||
Accrued Expenses | ' | ||||||||||||
8. Accrued Expenses | |||||||||||||
A summary of accrued expenses follows: | |||||||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | 28-Apr-13 | ||||||||||
Compensation, commissions and related benefits | $ | 8,747 | $ | 9,417 | $ | 9,831 | |||||||
Interest | 158 | 243 | 111 | ||||||||||
Other accrued expenses | 2,907 | 3,163 | 1,887 | ||||||||||
$ | 11,812 | $ | 12,823 | $ | 11,829 |
LongTerm_Debt_and_Lines_of_Cre
Long-Term Debt and Lines of Credit | 9 Months Ended | ||||||||||||
Jan. 26, 2014 | |||||||||||||
Long-Term Debt and Lines of Credit | ' | ||||||||||||
9. Long-Term Debt and Lines of Credit | |||||||||||||
A summary of long-term debt follows: | |||||||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | 28-Apr-13 | ||||||||||
Unsecured senior term notes | $ | 4,400 | $ | 6,600 | $ | 6,600 | |||||||
Canadian government loan | - | 166 | - | ||||||||||
4,400 | 6,766 | 6,600 | |||||||||||
Current maturities of long-term debt | (2,200 | ) | (2,366 | ) | (2,200 | ) | |||||||
Long-term debt, less current maturities of long-term debt | $ | 2,200 | $ | 4,400 | $ | 4,400 | |||||||
Unsecured Term Notes | |||||||||||||
We entered into a note agreement dated August 11, 2008 that provided for the issuance of $11.0 million of unsecured term notes with a fixed interest rate of 8.01% and a term of seven years. Principal payments of $2.2 million per year are due on the notes beginning August 11, 2011. The remaining principal payments are payable over an average term 1.5 years through August 11, 2015. Any principal pre-payments would be assessed a penalty as defined in the agreement. The agreement contains customary financial and other covenants as defined in the agreement. | |||||||||||||
Revolving Credit Agreement – United States | |||||||||||||
At April 28, 2013, we had an unsecured Amended and Restated Credit Agreement with Wells Fargo Bank, N.A. (“Wells Fargo”) that provided for a revolving loan commitment of $7.6 million that was due to expire on August 25, 2013. This agreement provided for a pricing matrix to determine the interest rate payable on loans made under this agreement. | |||||||||||||
Effective August 13, 2013, we entered into a Credit Agreement (“Credit Agreement”) with Wells Fargo that replaced the agreement noted above. This Credit Agreement contains terms and covenants similar to the previous agreement and extends the term of the credit facility through August 31, 2015. Interest is charged at a rate equal to the one-month LIBOR rate plus a spread based on our ratio of debt to EBITDA as defined in the agreement (applicable interest rate of 1.76% at January 26, 2014). | |||||||||||||
This Credit Agreement provides for an unsecured revolving loan commitment of $10.0 million to be used to finance working capital and for general corporate purposes. The amount of borrowings that are outstanding under the revolving credit agreement with Culp Europe noted below decrease the $10.0 million available under this Credit Agreement. | |||||||||||||
At January 26, 2014, January 27, 2013, and April 28, 2013, there was a $195,000 outstanding letter of credit (all of which related to workers compensation) provided by the Credit Agreement. There were no borrowings outstanding under the agreement at January 26, 2014, January 27, 2013, and April 28, 2013. | |||||||||||||
Revolving Credit Agreement – China | |||||||||||||
We have an unsecured credit agreement associated with our operations in China that provides for a line of credit of up to 40 million RMB (approximately $6.6 million USD at January 26, 2014), expiring on June 8, 2014. This agreement has an interest rate determined by the Chinese government. There were no borrowings outstanding under the agreement as of January 26, 2014, January 27, 2013, and April 28, 2013, respectively. | |||||||||||||
Revolving Credit Agreement – Europe | |||||||||||||
Prior to August 13, 2013, we had an unsecured credit agreement associated with our operations in Poland that provided for a line of credit of up to 6.8 million Polish Zloty (approximately $2.2 million USD). This agreement bears interest at WIBOR (Warsaw Interbank Offered Rate) plus 2% (applicable interest rate of 4.5% at January 26, 2014). There were $573,000, $576,000 and $561,000 (1.8 million Polish Zloty) in borrowings outstanding under this agreement at January 26, 2014, January 27, 2013, and April 28, 2013, respectively. | |||||||||||||
In connection with the Credit Agreement effective August 13, 2013 noted above, the outstanding borrowings, totaling $573,000 at January 26, 2014, are due on August 31, 2015 and decrease the $10.0 million available under the Credit Agreement. | |||||||||||||
Overall | |||||||||||||
Our loan agreements require, among other things, that we maintain compliance with certain financial covenants. At January 26, 2014, the company was in compliance with these financial covenants. | |||||||||||||
At January 26, 2014, the principal payment requirements of long-term debt during the next two years are: Year 1 – $2.2 million; and Year 2 - $2.2 million. | |||||||||||||
The fair value of the company’s long-term debt is estimated by discounting the future cash flows at rates currently offered to the company for similar debt instruments of comparable maturities. At January 26, 2014, the carrying value of the company’s long-term debt was $4.4 million and the fair value was $4.7 million. At January 27, 2013, the carrying value of the company’s long-term debt was $6.8 million and the fair value as $7.1 million. At April 28, 2013, the carrying value of the company’s long-term debt was $6.6 million and the fair value was $7.0 million. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | ||||||||||||||||
Jan. 26, 2014 | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
10. Fair Value of Financial Instruments | |||||||||||||||||
ASC Topic 820 establishes a fair value hierarchy that distinguishes between assumptions based on market data (observable inputs) and the company’s assumptions (unobservable inputs). Determining where an asset or liability falls within that hierarchy depends on the lowest level input that is significant to the fair value measurement as a whole. An adjustment to the pricing method used within either level 1 or level 2 inputs could generate a fair value measurement that effectively falls in a lower level in the hierarchy. The hierarchy consists of three broad levels as follows: | |||||||||||||||||
Level 1 – Quoted market prices in active markets for identical assets or liabilities; | |||||||||||||||||
Level 2 – Inputs other than level 1 inputs that are either directly or indirectly observable, and | |||||||||||||||||
Level 3 – Unobservable inputs developed using the company’s estimates and assumptions, which reflect those that market participants would use. | |||||||||||||||||
Recurring Basis | |||||||||||||||||
The following table presents information about assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||
Fair value measurements at January 26, 2014 using: | |||||||||||||||||
Quoted prices in | Significant other | Significant | |||||||||||||||
active markets | observable inputs | unobservable | |||||||||||||||
for identical | inputs | ||||||||||||||||
assets | |||||||||||||||||
(amounts in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Low Duration Bond Fund | $ | 2,069 | N/A | N/A | $ | 2,069 | |||||||||||
Limited Term Bond Fund | 2,570 | N/A | N/A | 2,570 | |||||||||||||
Intermediate Term Bond Fund | 1,612 | N/A | N/A | 1,612 | |||||||||||||
Fair value measurements at January 27, 2013 using: | |||||||||||||||||
Quoted prices in | Significant other | Significant | |||||||||||||||
active markets | observable inputs | unobservable | |||||||||||||||
for identical | inputs | ||||||||||||||||
assets | |||||||||||||||||
(amounts in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Low Duration Bond Fund | $ | 2,066 | N/A | N/A | $ | 2,066 | |||||||||||
Limited Term Bond Fund | 2,070 | N/A | N/A | 2,070 | |||||||||||||
Intermediate Term Bond Fund | 1,101 | N/A | N/A | 1,101 | |||||||||||||
Fair value measurements at April 28, 2013 using: | |||||||||||||||||
Quoted prices in | Significant other | Significant | |||||||||||||||
active markets | observable inputs | unobservable | |||||||||||||||
for identical | inputs | ||||||||||||||||
assets | |||||||||||||||||
(amounts in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Low Duration Bond Fund | $ | 2,076 | N/A | N/A | $ | 2,076 | |||||||||||
Limited Term Bond Fund | 2,092 | N/A | N/A | 2,092 | |||||||||||||
Intermediate Term Bond Fund | 1,118 | N/A | N/A | 1,118 | |||||||||||||
The determination of where an asset or liability falls in the hierarchy requires significant judgment. We evaluate our hierarchy disclosures each quarter based on various factors and it is possible that an asset or liability may be classified differently from quarter to quarter. However, we expect that changes in classifications between different levels will be rare. | |||||||||||||||||
Our short-term investments include short-term bond funds, are classified as available-for-sale, and their unrealized gains or losses are included in other comprehensive income (loss). Our short-term bond funds were recorded at their fair value of $6.3 million, $5.2 million, and $5.3 million at January 26, 2014, January 27, 2013, and April 28, 2013, respectively. Our short-term bond funds had an accumulated unrealized loss totaling $74,000 at January 26, 2014, an accumulated unrealized gain totaling $26,000 at January 27, 2013, and an accumulated unrealized gain totaling $54,000 at April 28, 2013. At January 26, 2014, January 27, 2013, and April 28, 2013 the fair value of our short-term bond funds approximated its cost basis. | |||||||||||||||||
The carrying amount of cash and cash equivalents, a deposit account included in short-term investments, accounts receivable, other current assets, accounts payable, accrued expenses, and a line of credit approximates fair value because of the short maturity of these financial instruments. | |||||||||||||||||
Nonrecurring Basis | |||||||||||||||||
As of January 26, 2014, we had no assets that are required to be measured at fair value on a nonrecurring basis other than the assets acquired from Bodet & Horst (see note 3) that were acquired at fair value. | |||||||||||||||||
Fair value measurements at January 26, 2014 using: | |||||||||||||||||
Quoted prices in | Significant other | Significant | |||||||||||||||
active markets | observable inputs | unobservable | |||||||||||||||
for identical | inputs | ||||||||||||||||
assets | |||||||||||||||||
(amounts in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Equipment | $ | - | $ | 890 | $ | - | $ | 890 | |||||||||
Non-compete Agreement | - | - | 882 | 882 | |||||||||||||
Customer Relationships | - | - | 868 | 868 | |||||||||||||
The equipment was classified as level 2 as the fair value was determined using quoted market prices from a third party. The non-compete was recorded at its fair value using a discounted cash flow valuation model that used significant unobservable inputs and was classified as level 3. The customer relationships were recorded at fair value using a multi-period excess earnings valuation model that used significant unobservable inputs and was classified as level 3. |
Cash_Flow_Information
Cash Flow Information | 9 Months Ended | ||||||||
Jan. 26, 2014 | |||||||||
Cash Flow Information | ' | ||||||||
11. Cash Flow Information | |||||||||
Payments for interest and income taxes follows: | |||||||||
Nine months ended | |||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | |||||||
Interest | $ | 283 | $ | 395 | |||||
Net income tax payments | 2,312 | 2,305 |
Net_Income_Per_Share
Net Income Per Share | 9 Months Ended | ||||||||
Jan. 26, 2014 | |||||||||
Net Income Per Share | ' | ||||||||
12. Net Income Per Share | |||||||||
Basic net income per share is computed using the weighted-average number of shares outstanding during the period. Diluted net income per share uses the weighted-average number of shares outstanding during the period plus the dilutive effect of stock-based compensation calculated using the treasury stock method. Weighted average shares used in the computation of basic and diluted net income per share follows: | |||||||||
Three months ended | |||||||||
(amounts in thousands) | 26-Jan-14 | 27-Jan-13 | |||||||
Weighted average common shares outstanding, basic | 12,188 | 12,095 | |||||||
Dilutive effect of stock-based compensation | 217 | 195 | |||||||
Weighted average common shares outstanding, diluted | 12,405 | 12,290 | |||||||
All options to purchase shares of common stock were included in the computation of diluted net income for the three months ended January 26, 2014 and January 27, 2013, respectively, as the exercise prices of the options were less that the average market price of the common shares. | |||||||||
The computations of basic net income per share did not include 61,667 and 123,335 shares of time vested restricted common stock as these shares were unvested for the three months ending January 26, 2014 and January 27, 2013, respectively. | |||||||||
Nine months ended | |||||||||
(amounts in thousands) | 26-Jan-14 | 27-Jan-13 | |||||||
Weighted average common shares outstanding, basic | 12,173 | 12,279 | |||||||
Dilutive effect of stock-based compensation | 232 | 188 | |||||||
Weighted average common shares outstanding, diluted | 12,405 | 12,467 | |||||||
All options to purchase shares of common stock were included in the computation of diluted net income for the nine months ended January 26, 2014, as the exercise prices of the options were less than the average market price of the common shares. Options to purchase 2,000 shares of common stock were not included in the computation of diluted net income per share for the nine months ended January 27, 2013, as the exercise price of the options was greater than the average market price of the common shares. | |||||||||
The computations of basic net income per share did not include 61,667 and 123,335 shares of time vested restricted common stock as these shares were unvested for the nine months ending January 26, 2014 and January 27, 2013, respectively. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||
Jan. 26, 2014 | |||||||||||||
Segment Information | ' | ||||||||||||
13. Segment Information | |||||||||||||
Our operations are classified into two business segments: mattress fabrics and upholstery fabrics. The mattress fabrics segment manufactures and sells fabrics and mattress covers to bedding manufacturers. The upholstery fabrics segment manufactures and sells fabrics primarily to residential furniture manufacturers. | |||||||||||||
We evaluate the operating performance of our segments based upon income from operations before certain unallocated corporate expenses, and other non-recurring items. Cost of sales in both segments include costs to manufacture or source our products, including costs such as raw material and finished goods purchases, direct and indirect labor, overhead and incoming freight charges. Unallocated corporate expenses primarily represent compensation and benefits for certain executive officers and all costs related to being a public company. Segment assets include assets used in the operations of each segment and primarily consist of accounts receivable, inventories, and property, plant and equipment. The mattress fabrics segment also includes in segment assets, goodwill, a non-compete agreement, and customer relationships associated with an acquisition. | |||||||||||||
Financial information for the company’s operating segments follows: | |||||||||||||
Three months ended | |||||||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | |||||||||||
Net sales: | |||||||||||||
Mattress Fabrics | $ | 38,541 | $ | 35,513 | |||||||||
Upholstery Fabrics | 33,848 | 28,182 | |||||||||||
$ | 72,389 | $ | 63,695 | ||||||||||
Gross profit: | |||||||||||||
Mattress Fabrics | $ | 5,599 | $ | 6,548 | |||||||||
Upholstery Fabrics | 6,238 | 5,137 | |||||||||||
$ | 11,837 | $ | 11,685 | ||||||||||
Selling, general, and administrative expenses: | |||||||||||||
Mattress Fabrics | $ | 2,286 | $ | 2,382 | |||||||||
Upholstery Fabrics | 3,572 | 3,360 | |||||||||||
Total segment selling, general, and administrative expenses | 5,858 | 5,742 | |||||||||||
Unallocated corporate expenses | 1,183 | 1,080 | |||||||||||
$ | 7,041 | $ | 6,822 | ||||||||||
Income from operations: | |||||||||||||
Mattress Fabrics | $ | 3,313 | $ | 4,166 | |||||||||
Upholstery Fabrics | 2,666 | 1,777 | |||||||||||
Total segment income from operations | 5,979 | 5,943 | |||||||||||
Unallocated corporate expenses | (1,183 | ) | (1,080 | ) | |||||||||
Total income from operations | 4,796 | 4,863 | |||||||||||
Interest expense | (91 | ) | (145 | ) | |||||||||
Interest income | 148 | 105 | |||||||||||
Other expense | (279 | ) | (300 | ) | |||||||||
Income before income taxes | $ | 4,574 | $ | 4,523 | |||||||||
Nine months ended | |||||||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | |||||||||||
Net sales: | |||||||||||||
Mattress Fabrics | $ | 117,035 | $ | 113,175 | |||||||||
Upholstery Fabrics | 96,084 | 85,264 | |||||||||||
$ | 213,119 | $ | 198,439 | ||||||||||
Gross profit: | |||||||||||||
Mattress Fabrics | $ | 20,312 | $ | 21,708 | |||||||||
Upholstery Fabrics | 16,833 | 14,974 | |||||||||||
$ | 37,145 | $ | 36,682 | ||||||||||
Selling, general, and administrative expenses: | |||||||||||||
Mattress Fabrics | $ | 7,280 | $ | 7,197 | |||||||||
Upholstery Fabrics | 10,007 | 9,857 | |||||||||||
Total segment selling, general, and | |||||||||||||
administrative expenses | 17,287 | 17,054 | |||||||||||
Unallocated corporate expenses | 4,053 | 4,618 | |||||||||||
$ | 21,340 | $ | 21,672 | ||||||||||
Income from operations: | |||||||||||||
Mattress Fabrics | $ | 13,033 | $ | 14,512 | |||||||||
Upholstery Fabrics | 6,825 | 5,116 | |||||||||||
Total segment income from operations | 19,858 | 19,628 | |||||||||||
Unallocated corporate expenses | (4,053 | ) | (4,618 | ) | |||||||||
Total income from operations | 15,805 | 15,010 | |||||||||||
Interest expense | (330 | ) | (491 | ) | |||||||||
Interest income | 343 | 328 | |||||||||||
Other expense | (895 | ) | (421 | ) | |||||||||
Income before income taxes | $ | 14,923 | $ | 14,426 | |||||||||
Balance sheet information for the company’s operating segments follow: | |||||||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | 28-Apr-13 | ||||||||||
Segment assets: | |||||||||||||
Mattress Fabrics | |||||||||||||
Current assets (1) | $ | 36,818 | $ | 34,595 | $ | 33,323 | |||||||
Non-compete agreement | 1,047 | 222 | 185 | ||||||||||
Customer relationships | 830 | - | - | ||||||||||
Goodwill | 11,462 | 11,462 | 11,462 | ||||||||||
Property, plant and equipment (2) | 27,822 | 28,116 | 28,578 | ||||||||||
Total mattress fabrics assets | 77,979 | 74,395 | 73,548 | ||||||||||
Upholstery Fabrics | |||||||||||||
Current assets (1) | 33,261 | 31,839 | 28,487 | ||||||||||
Property, plant and equipment (3) | 1,649 | 1,147 | 1,230 | ||||||||||
Total upholstery fabrics assets | 34,910 | 32,986 | 29,717 | ||||||||||
Total segment assets | 112,889 | 107,381 | 103,265 | ||||||||||
Non-segment assets: | |||||||||||||
Cash and cash equivalents | 23,293 | 19,489 | 23,530 | ||||||||||
Short-term investments | 7,077 | 5,237 | 5,286 | ||||||||||
Deferred income taxes | 8,730 | 8,270 | 8,462 | ||||||||||
Income taxes receivable | - | - | 318 | ||||||||||
Other current assets | 2,999 | 1,655 | 2,093 | ||||||||||
Property, plant and equipment (4) | 644 | 792 | 786 | ||||||||||
Other assets | 1,046 | 973 | 966 | ||||||||||
Total assets | $ | 156,678 | $ | 143,797 | $ | 144,706 | |||||||
Nine months ended | |||||||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | |||||||||||
Capital expenditures (5): | |||||||||||||
Mattress Fabrics | $ | 1,936 | $ | 2,223 | |||||||||
Upholstery Fabrics | 694 | 222 | |||||||||||
Unallocated Corporate | 37 | 149 | |||||||||||
Total capital expenditures | $ | 2,667 | $ | 2,594 | |||||||||
Depreciation expense: | |||||||||||||
Mattress Fabrics | $ | 3,510 | $ | 3,344 | |||||||||
Upholstery Fabrics | 454 | 474 | |||||||||||
Total depreciation expense | $ | 3,964 | $ | 3,818 | |||||||||
-1 | Current assets represent accounts receivable and inventory for the respective segment. | ||||||||||||
-2 | The $27.8 million at January 26, 2014, represents property, plant, and equipment of $20.1 million and $7.7 million located in the U.S. and Canada, respectively. The $28.1 million at January 27, 2013, represents property, plant, and equipment of $20.6 million and $7.5 million located in the U.S. and Canada, respectively. The $28.6 million at April 28, 2013, represents property, plant, and equipment of $20.4 million and $8.2 million located in the U.S. and Canada, respectively. | ||||||||||||
-3 | The $1.6 million at January 26, 2014, represents property, plant, and equipment located in the U.S. of $1.0 million, located in China of $561, and located in Poland of $47. The $1.1 million at January 27, 2013, represents property, plant, and equipment located in the U.S. of $906, located in China of $155, and located in Poland of $86. The $1.2 million at April 28, 2013, represents property, plant, and equipment located in the U.S. of $908, located in China of $265, and located in Poland of $57. | ||||||||||||
-4 | The $644, $792, and $786 at January 26, 2014, January 27, 2013, and April 28, 2013, respectively, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by both the mattress and upholstery fabric segments. Property, plant, and equipment associated with corporate are located in the U.S. | ||||||||||||
-5 | Capital expenditure amounts are stated on the accrual basis. See Consolidated Statement of Cash Flows for capital expenditure amounts on a cash basis. |
Income_Taxes
Income Taxes | 9 Months Ended | |
Jan. 26, 2014 | ||
Income Taxes | ' | |
14. Income Taxes | ||
Effective Income Tax Rate | ||
We recorded income tax expense of $216,000, or 1.4% of income before income tax expense, for the nine month period ended January 26, 2014, compared to an income tax benefit of $188,000, or (1.3)% of income before income tax expense, for the nine month period ended January 27, 2013. Our effective income tax rates for the nine month periods ended January 26, 2014 and January 27, 2013 were based upon the estimated effective income tax rate applicable for the full year after giving effect to any significant items related specifically to interim periods. The effective income tax rate can be affected over the fiscal year by the mix and timing of actual earnings from our U.S. operations and foreign sources versus annual projections and changes in foreign currencies in relation to the U.S. dollar. | ||
The income tax expense for the nine month period ended January 26, 2014 is different from the amount obtained by applying our statutory rate of 34% to income before income taxes for the following reasons: | ||
· | The income tax rate decreased 36% for an income tax benefit of $5.4 million to record the U.S. income tax effects of the undistributed earnings from our foreign subsidiaries located in China. The $5.4 million income tax benefit recognized U.S. foreign income tax credits of $9.9 million offset by the U.S. income tax effects of the undistributed earnings from our China operations and foreign withholding taxes of $4.5 million. This $5.4 million income tax benefit was treated as a discrete event in which the full income tax effects of this adjustment were recorded in the three and nine month periods ended January 26, 2014, as it pertained to a change in judgment on prior periods' accumulated earnings and profits associated with our subsidiaries located in China (see below undistributed earnings section for further details). | |
· | The income tax rate increased 2% for adjustments primarily made to our state of North Carolina loss carryforwards for the decrease in future North Carolina corporate income tax rates commencing in fiscal 2015 and beyond. These adjustments were recorded in the first quarter, totaled $273,000, and represented a discrete event in which the full tax effects were recorded in the nine month period ending January 26, 2014. | |
· | The income tax rate decreased by 7% for taxable income subject to lower statutory income tax rates in foreign jurisdictions (Canada and China) compared with the statutory income tax rate of 34% for the United States. | |
· | The income tax rate increased by 4% for an increase in unrecognized tax benefits. | |
· | The income tax rate increased by 4.4% for stock-based compensation and other miscellaneous items. | |
The income tax expense for the nine month period ended January 27, 2013 is different from the amount obtained by applying our statutory rate of 34% to income before income taxes for the following reasons: | ||
· | The income tax rate was reduced by 84% for a reduction in our valuation allowance associated with our U.S. net deferred tax assets. This 84% reduction in our income tax rate is due to a change in judgment about the realization of our U.S. net deferred income tax assets in future years. Since the realization of our U.S. net deferred income tax assets is a result of a change in judgment about future years we recorded an income tax benefit of $12.1 million that represents a discrete event in which the full tax effects were recorded for the nine month period ending January 27, 2013. | |
· | The income tax rate was increased by 46% for the establishment of a deferred tax liability for U.S. income taxes that will be paid upon repatriation of undistributed earnings from our foreign subsidiaries located in Canada and China. This 46% increase in our income tax rate is due to a change in judgment in which our prior years’ accumulated earnings and profits associated with our subsidiaries located in Canada and China are no longer considered indefinitely reinvested. Since the establishment of our deferred tax liability is a result of a change in judgment about prior years’ accumulated earnings and profits, we recorded an income tax charge of $6.6 million that represents a discrete event in which the full tax effects were recorded for the nine month period ending January 27, 2013. | |
· | The income tax rate increased 5% for an increase in unrecognized tax benefits. | |
· | The income tax rate was reduced by 6% for taxable income subject to lower statutory income tax rates in foreign jurisdictions (Canada and China) compared with the statutory income tax rate of 34% for the United States. | |
· | The income tax rate was increased by 1% for the establishment of a valuation allowance against our net deferred tax assets associated with our Culp Europe operation located in Poland. | |
· | The income tax rate was increased by 2.7% for stock-based compensation and other miscellaneous items. | |
Deferred Income Taxes | ||
Valuation Allowance | ||
In accordance with ASC Topic 740, we evaluate our deferred income taxes to determine if a valuation allowance is required. ASC Topic 740 requires that companies assess whether a valuation allowance should be established based on the consideration of all available evidence using a “more likely than not” standard, with significant weight being given to evidence that can be objectively verified. Since the company operates in multiple jurisdictions, we assess the need for a valuation allowance on a jurisdiction-by-jurisdiction basis, taking into account the effects of local tax law. Based on our assessment at January 26, 2014, we recorded a partial valuation allowance of $1.0 million, of which $715,000 pertained to certain U.S. state net operating loss carryforwards and credits and $291,000 pertained to loss carryfowards associated with our Culp Europe operation located in Poland. Based on our assessment at January 27, 2013, we recorded a partial valuation allowance of $926,000, of which $719,000 pertained to certain U.S. state net operating loss carryforwards and credits and $207,000 pertained to loss carryforwards associated with our Culp Europe operation located in Poland. Based on our assessment at April 28, 2013, we recorded a partial valuation allowance of $963,000, of which $722,000 pertained to certain U.S. state net operating loss carryforwards and credits and $241,000 pertained to loss carryfowards associated with our Culp Europe operation located in Poland. | ||
No valuation allowance was recorded against our net deferred tax assets associated with our operations located in China and Canada at January 26, 2014, January 27, 2013, and April 28, 2013, respectively. | ||
The recorded valuation allowance of $1.0 million at January 26, 2014, has no effect on our operations, loan covenant compliance, or the possible realization of certain U.S. state net operating loss carryforwards and credits and our loss carryforwards associated with our Culp Europe operation located in Poland. If it is determined that it is more-likely-than-not that we will realize any of these deferred tax assets, an income tax benefit will be recognized at that time. | ||
Undistributed Earnings | ||
In accordance with ASC Topic 740, we assess whether the undistributed earnings from our foreign subsidiaries will be reinvested indefinitely or eventually distributed to our U.S. parent company. ASC Topic 740 requires that a deferred tax liability should be recorded for undistributed earnings from foreign subsidiaries that will not be reinvested indefinitely. Based on our assessment of the financial requirements of our U.S. parent company and foreign subsidiaries, we determined that our undistributed earnings from our foreign subsidiaries will not be reinvested indefinitely and will be eventually distributed to our U.S. parent company. The financial requirements of the U.S. parent company have changed over the past year due to a decision to return cash to its shareholders through dividend payments and common stock repurchases. Also, in order to keep up with the growth in consumer demand for our mattress fabric products, it is our intention to continue our investment in our domestic mattress fabric operations. | ||
In accordance with ASC Topic 740, we assess the recognition of U.S. foreign income tax credits associated with foreign withholding and income tax payments and whether it is more-likely-than-not that our foreign income tax credits will not be realized. If it is determined that any foreign income tax credits need to be recognized or it is more-likely-than-not that our foreign income tax credits will not be realized, an adjustment to our provision for income taxes will be recognized at that time. | ||
During the third quarter of fiscal 2014, our operations located in China achieved positive accumulated earnings and profits for both U.S. income tax and financial reporting purposes for the first time since we determined our undistributed earnings from our foreign subsidiaries would not be reinvested indefinitely in the second quarter of fiscal 2013. As a result, we recorded an income tax benefit of $5.4 million to recognize U.S. foreign income tax credits of $9.9 million offset by the U.S. income tax effects of the undistributed earnings from our China operations and foreign withholding taxes totaling $4.5 million. This $5.4 million income tax benefit was treated as a discrete event in which the full income tax effects of this adjustment were recorded in the three and nine month periods ended January 26, 2014, as it pertained to a change in judgment on prior periods' accumulated earnings and profits associated with our subsidiaries located in China. | ||
We had accumulated earnings from our foreign subsidiaries totaling $69.8 million, $56.3 million, and $56.7 million at January 26, 2014, January 27, 2013, and April 28, 2013, respectively. | ||
At January 26, 2014, the deferred tax liability associated with our undistributed earnings from our foreign subsidiaries totaled $1.7 million, which included U.S. income and foreign withholding taxes totaling $26.9 million, offset by U.S. foreign income tax credits of $25.2 million. At January 27, 2013, the deferred tax liability associated with our undistributed earnings from our foreign subsidiaries totaled $6.8 million, which included U.S. income and foreign withholding taxes totaling $21.9 million offset by U.S. foreign income tax credits of $15.1 million. At April 28, 2013, the deferred tax liability associated with our undistributed earnings from our foreign subsidiaries totaled $7.0 million, which included U.S. income and foreign withholding taxes totaling $22.0 million, offset by U.S. foreign income tax credits of $15.0 million. | ||
Overall | ||
At January 26, 2014, the current deferred tax asset of $7.5 million represents $7.3 million and $217,000 from our operations located in the U.S. and China, respectively. At January 26, 2014, the non-current deferred tax asset of $1.2 million represents $600,000 and $627,000 from our operations located in the U.S. and China, respectively. At January 26, 2014, the non-current deferred tax liability of $945,000 pertains to our operations located in Canada. | ||
At January 27, 2013, the current deferred tax asset of $4.1 million represents $3.8 million and $329,000 from our operations located in the U.S. and China, respectively. At January 27, 2013, the non-current deferred tax asset of $4.2 million represents $3.4 million and $793,000 from our operations located in the U.S. and China, respectively. At January 27, 2013, the non-current deferred tax liability of $856,000 pertains to our operation located in Canada. | ||
At April 28, 2013, the current deferred tax asset of $7.7 million represents $7.4 million and $325,000 from our operations located in the U.S. and China, respectively. At April 28, 2013, the non-current deferred tax asset of $753,000 pertains to our operations located in China. At April 28, 2013, the non-current deferred tax liability of $3.1 million represents $2.0 million and $1.1 million from our operations located in the U.S. and Canada, respectively. | ||
Uncertainty In Income Taxes | ||
At January 26, 2014, we had $13.6 million of total gross unrecognized tax benefits, of which $4.0 million represents the amount of gross unrecognized tax benefits that, if recognized, would favorably affect the income tax rate in future periods. At January 27, 2013, we had $13.1 million of total gross unrecognized tax benefits, of which $4.2 million represents the amount of gross unrecognized tax benefits that, if recognized, would favorably affect the income tax rate in future periods. At April 28, 2013, we had $13.1 million of total gross unrecognized tax benefits, of which $4.2 million would favorably affect the income tax rate in future periods. | ||
As of January 26, 2014, we had $13.6 million in gross unrecognized tax benefits, of which $9.6 million were classified as net non-current deferred income tax liability and $4.0 million were classified as income taxes payable –long-term in the accompanying consolidated balance sheets. As of January 27, 2013, we had $13.1 million in gross unrecognized tax benefits, of which $8.9 million were classified as net non-current deferred income tax assets and $4.2 million were classified as income taxes payable long-term in the accompanying consolidated balance sheets. As of April 28, 2013, we had $13.1 million in gross unrecognized tax benefits, of which $8.9 million were classified as net non-current deferred income tax liability and $4.2 million were classified as income taxes payable – long-term in the accompanying consolidated balance sheets. | ||
We estimate that the amount of gross unrecognized tax benefits will increase by approximately $808,000 for fiscal 2014. This increase primarily relates to double taxation under applicable tax treaties with foreign tax jurisdictions. |
Statutory_Reserves
Statutory Reserves | 9 Months Ended |
Jan. 26, 2014 | |
Statutory Reserves | ' |
15. Statutory Reserves | |
Our subsidiaries located in China are required to transfer 10% of their net income, as determined in accordance with the People’s Republic of China (PRC) accounting rules and regulations, to a statutory surplus reserve fund until such reserve balance reaches 50% of the company’s registered capital. | |
The transfer to this reserve must be made before distributions of any dividend to shareholders. As of January 26, 2014, the company’s statutory surplus reserve was $4.5 million, representing 10% of accumulated earnings and profits determined in accordance with PRC accounting rules and regulations. The surplus reserve fund is non-distributable other than during liquidation and can be used to fund previous years’ losses, if any, and may be utilized for business expansion or converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them provided that the remaining reserve balance after such issue is not less than 25% of the registered capital. | |
Our subsidiaries located in China can transfer funds to the parent company with the exception of the statutory surplus reserve of $4.5 million to assist with debt repayment, capital expenditures, and other expenses of the company’s business. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Jan. 26, 2014 | |
Commitments and Contingencies | ' |
16. Commitments and Contingencies | |
Chromatex Environmental Claim | |
A lawsuit was filed against us and other defendants (Chromatex, Inc., Rossville Industries, Inc., Rossville Companies, Inc. and Rossville Investments, Inc.) on February 5, 2008 in the United States District Court for the Middle District of Pennsylvania. The plaintiffs are Alan Shulman, Stanley Siegel, Ruth Cherenson as Personal Representative of Estate of Alan Cherenson, and Adrienne Rolla and M.F. Rolla as Executors of the Estate of Joseph Byrnes. The plaintiffs were partners in a general partnership that formerly owned a manufacturing plant in West Hazleton, Pennsylvania (the “Site”). Approximately two years after this general partnership sold the Site to defendants Chromatex, Inc. and Rossville Industries, Inc., we leased and operated the Site as part of our Rossville/Chromatex division. The lawsuit involves court judgments that have been entered against the plaintiffs and against defendant Chromatex, Inc. requiring them to pay costs incurred by the United States Environmental Protection Agency (“USEPA”) responding to environmental contamination at the Site, in amounts approximating $8.6 million, plus unspecified future environmental costs. We understand that the USEPA’s costs have exceeded $13 million, but are not expected to increase significantly in the future. Neither USEPA nor any other governmental authority has asserted any claim against us on account of these matters. The plaintiffs seek contribution from us and other defendants and a declaration that the company and the other defendants are responsible for environmental response costs under environmental laws and certain agreements. The plaintiffs also asserted that we tortiously interfered with contracts between them and other defendants in the case and diverted assets to prevent the plaintiffs from being paid monies owed to them. We have defended ourselves vigorously with regards to the matters described in this litigation. In addition, we have an indemnification agreement with certain other defendants in the litigation pursuant to which the other defendants agreed to indemnify us for any damages we incur as a result of the environmental matters that are the subject of this litigation, although it is unclear whether the indemnitors have significant assets at this time. | |
In the first quarter of fiscal 2014, the parties to this lawsuit reached a tentative settlement of all matters, which would require us to contribute cash to a global settlement fund. Consequently, we recorded a charge of $206,000 for this tentative settlement. This charge was recorded in other expense in the Consolidated Statement of Net Income for the nine month period ending January 26, 2014. The corresponding liability was recorded in accrued expenses in the Consolidated Balance Sheet dated January 26, 2014. As of the date of this report, the settlement remains subject to government review procedures and approval by the court of the final agreement by the parties. | |
Other Litigation | |
The company is periodically involved in legal proceedings and claims which have arisen in the ordinary course of business. These actions, when ultimately concluded and settled, will not, in the opinion of management, have a material adverse effect upon the financial position, results of operations or cash flows of the company. | |
Purchase Commitments | |
At January 26, 2014, January 27, 2013, and April 28, 2013, we had open purchase commitments to acquire equipment for our mattress fabrics segment totaling $3.8 million, $1.1 million, and $170,000, respectively. |
Common_Stock_Repurchase_Progra
Common Stock Repurchase Program | 9 Months Ended |
Jan. 26, 2014 | |
Common Stock Repurchase Program | ' |
17. Common Stock Repurchase Program | |
On February 25, 2014, we announced that our board of directors approved an increase to $5.0 million in the authorization for us to acquire our common stock, an increase from the $2.0 million authorization that was approved by our board of directors on August 29, 2012. | |
Under the common stock repurchase program, shares may be purchased from time to time in open market transactions, block trades, through plans established under the Securities Exchange Act Rule 10b5-1, or otherwise. The amount of shares purchased and the timing of such purchases will be based on working capital requirements, market and general business conditions, and other factors including alternative investment opportunities. | |
As of January 26, 2014, there have been no repurchases of common stock on the $2.0 million limit that was authorized on August 29, 2012. |
Dividend_Program
Dividend Program | 9 Months Ended |
Jan. 26, 2014 | |
Dividend Program | ' |
18. Dividend Program | |
On June 12, 2013, we announced that our board of directors approved a 33% increase in payment of a quarterly cash dividend from $0.03 to $0.04 per share, commencing in the first quarter of fiscal 2014. On November 25, 2013, we announced that our board of directors approved a 25% increase in payment of a quarterly cash dividend from $0.04 to $0.05 per share, commencing in the third quarter of fiscal 2014. On February 25, 2014, we announced that our board of directors approved a quarterly cash dividend of $0.05 per share to be paid on or about April 15, 2014, to shareholders of record as of the close of business on April 1, 2014. | |
Future dividend payments are subject to board approval and may be adjusted at the board’s discretion as business needs or market conditions change. | |
Dividend payments totaled $1.6 million and $7.2 million for the nine month periods ending January 26, 2014, and January 27, 2013, respectively. The dividend payments totaling $1.6 million for the nine month period ending January 26, 2014, represented quarterly dividend payments ranging from $0.04 to $0.05 per share. The dividend payments totaling $7.2 million for the nine month period ending January 27, 2013, represented a $6.1 million special cash dividend payment of $0.50 per share in the third quarter of fiscal 2013, and $1.1 million of quarterly dividend payments of $0.03 per share, respectively. |
Deferred_Compensation_Agreemen
Deferred Compensation Agreement | 9 Months Ended |
Jan. 26, 2014 | |
Deferred Compensation Agreement | ' |
19. Deferred Compensation Agreement | |
We have a nonqualified deferred compensation plan (the “Plan”) covering officers and certain key members of management. The plan provides for participant deferrals on a pre-tax basis that are subject to annual deferral limits by the IRS and non-elective contributions made by the company. Participant deferrals and non-elective contributions made by the company are immediately vested. | |
Effective January 1, 2014, we established a Rabbi Trust (the “Trust”) to set aside funds for the participants of the Plan and enable the participants to credit their contributions to various investment options in the Plan. The funds set aside in the Trust are subject to the claims of our general creditors in the event the company’s insolvency as defined in the Plan. Commencing February 2014, the company will disburse funds to the Trust during the 2014 calendar year to fund existing participant account balances as of December 31, 2013. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended |
Jan. 26, 2014 | |
Recently Adopted and Issued Accounting Pronouncements | ' |
Recently Adopted Accounting Pronouncements | |
None | |
Recently Issued Accounting Pronouncements | |
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update which requires an unrecognized tax benefit to be presented as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward that the entity intends to use and is available for settlement at the reporting date. This update will be effective for us in the fourth quarter of fiscal 2014 and will not have an impact on our financial position, results of operations, or cash flows. |
Business_Combination_Mattress_1
Business Combination - Mattress Fabric Segment (Tables) | 9 Months Ended | ||||||||
Jan. 26, 2014 | |||||||||
Schedule of Allocation of Acquisition Cost to Assets Acquired Based on Fair Values | ' | ||||||||
The following table presents the allocation of the acquisition cost to the assets acquired based on their fair values: | |||||||||
(dollars in thousands) | Fair Value | ||||||||
Equipment | $ | 890 | |||||||
Non-compete agreement (Notes 7 and 10) | 882 | ||||||||
Customer relationships (Notes 7 and 10) | 868 | ||||||||
$ | 2,640 | ||||||||
Schedule of Unaudited Pro Forma Consolidated Results of Operations | ' | ||||||||
The following unaudited pro forma consolidated results of operations for the three and nine month periods ending January 26, 2014 and January 27, 2013 have been prepared as if the acquisition of Bodet & Horst had occurred on April 30, 2012: | |||||||||
Three months ended | |||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | |||||||
Net Sales | $ | 72,389 | $ | 66,162 | |||||
Income from operations | 4,796 | 4,854 | |||||||
Net income | 8,381 | 2,858 | |||||||
Net income per share, basic | 0.69 | 0.24 | |||||||
Net income per share, diluted | 0.68 | 0.23 | |||||||
Nine months ended | |||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | |||||||
Net Sales | $ | 213,119 | $ | 205,839 | |||||
Income from operations | 15,805 | 14,982 | |||||||
Net income | 14,707 | 14,532 | |||||||
Net income per share, basic | 1.21 | 1.18 | |||||||
Net income per share, diluted | 1.19 | 1.17 |
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 9 Months Ended | ||||||||||||
Jan. 26, 2014 | |||||||||||||
Summary of Accounts Receivable | ' | ||||||||||||
A summary of accounts receivable follows: | |||||||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | 28-Apr-13 | ||||||||||
Customers | $ | 27,424 | $ | 25,533 | $ | 24,715 | |||||||
Allowance for doubtful accounts | (484 | ) | (696 | ) | (780 | ) | |||||||
Reserve for returns and allowances and discounts | (548 | ) | (580 | ) | (543 | ) | |||||||
$ | 26,392 | $ | 24,257 | $ | 23,392 | ||||||||
Summary of the Activity in the Allowance for Doubtful Accounts | ' | ||||||||||||
A summary of the activity in the allowance for doubtful accounts follows: | |||||||||||||
Nine months ended | |||||||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | |||||||||||
Beginning balance | $ | (780 | ) | $ | (567 | ) | |||||||
Provision for bad debts | 235 | (193 | ) | ||||||||||
Net write-offs, net of recoveries | 61 | 64 | |||||||||||
Ending balance | $ | (484 | ) | $ | (696 | ) | |||||||
Summary of the Activity in the Allowance for Returns and Allowances and Discounts Accounts | ' | ||||||||||||
A summary of the activity in the allowance for returns and allowances and discounts accounts follows: | |||||||||||||
Nine months ended | |||||||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | |||||||||||
Beginning balance | $ | (543 | ) | $ | (478 | ) | |||||||
Provision for returns, allowances and discounts | (1,579 | ) | (2,146 | ) | |||||||||
Credits issued | 1,574 | 2,044 | |||||||||||
Ending balance | $ | (548 | ) | $ | (580 | ) |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||||||
Jan. 26, 2014 | |||||||||||||
Summary of Inventories | ' | ||||||||||||
A summary of inventories follows: | |||||||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | 28-Apr-13 | ||||||||||
Raw materials | $ | 6,177 | $ | 6,037 | $ | 5,311 | |||||||
Work-in-process | 2,177 | 2,772 | 2,539 | ||||||||||
Finished goods | 35,333 | 33,368 | 30,568 | ||||||||||
$ | 43,687 | $ | 42,177 | $ | 38,418 |
Other_Assets_Tables
Other Assets (Tables) | 9 Months Ended | ||||||||||||
Jan. 26, 2014 | |||||||||||||
Summary of Other Assets | ' | ||||||||||||
A summary of other assets follows: | |||||||||||||
(dollars in thousands) | January 26, 2014 | 27-Jan-13 | 28-Apr-13 | ||||||||||
Cash surrender value – life insurance | $ | 647 | $ | 700 | $ | 625 | |||||||
Non-compete agreement | 1,047 | 222 | 185 | ||||||||||
Customer relationships | 830 | - | - | ||||||||||
Other | 399 | 273 | 341 | ||||||||||
$ | 2,923 | $ | 1,195 | $ | 1,151 |
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 9 Months Ended | ||||||||||||
Jan. 26, 2014 | |||||||||||||
Summary of Accrued Expenses | ' | ||||||||||||
A summary of accrued expenses follows: | |||||||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | 28-Apr-13 | ||||||||||
Compensation, commissions and related benefits | $ | 8,747 | $ | 9,417 | $ | 9,831 | |||||||
Interest | 158 | 243 | 111 | ||||||||||
Other accrued expenses | 2,907 | 3,163 | 1,887 | ||||||||||
$ | 11,812 | $ | 12,823 | $ | 11,829 |
LongTerm_Debt_and_Lines_of_Cre1
Long-Term Debt and Lines of Credit (Tables) | 9 Months Ended | ||||||||||||
Jan. 26, 2014 | |||||||||||||
Summary of Long-Term Debt | ' | ||||||||||||
A summary of long-term debt follows: | |||||||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | 28-Apr-13 | ||||||||||
Unsecured senior term notes | $ | 4,400 | $ | 6,600 | $ | 6,600 | |||||||
Canadian government loan | - | 166 | - | ||||||||||
4,400 | 6,766 | 6,600 | |||||||||||
Current maturities of long-term debt | (2,200 | ) | (2,366 | ) | (2,200 | ) | |||||||
Long-term debt, less current maturities of long-term debt | $ | 2,200 | $ | 4,400 | $ | 4,400 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Jan. 26, 2014 | |||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | ' | ||||||||||||||||
The following table presents information about assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||
Fair value measurements at January 26, 2014 using: | |||||||||||||||||
Quoted prices in | Significant other | Significant | |||||||||||||||
active markets | observable inputs | unobservable | |||||||||||||||
for identical | inputs | ||||||||||||||||
assets | |||||||||||||||||
(amounts in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Low Duration Bond Fund | $ | 2,069 | N/A | N/A | $ | 2,069 | |||||||||||
Limited Term Bond Fund | 2,570 | N/A | N/A | 2,570 | |||||||||||||
Intermediate Term Bond Fund | 1,612 | N/A | N/A | 1,612 | |||||||||||||
Fair value measurements at January 27, 2013 using: | |||||||||||||||||
Quoted prices in | Significant other | Significant | |||||||||||||||
active markets | observable inputs | unobservable | |||||||||||||||
for identical | inputs | ||||||||||||||||
assets | |||||||||||||||||
(amounts in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Low Duration Bond Fund | $ | 2,066 | N/A | N/A | $ | 2,066 | |||||||||||
Limited Term Bond Fund | 2,070 | N/A | N/A | 2,070 | |||||||||||||
Intermediate Term Bond Fund | 1,101 | N/A | N/A | 1,101 | |||||||||||||
Fair value measurements at April 28, 2013 using: | |||||||||||||||||
Quoted prices in | Significant other | Significant | |||||||||||||||
active markets | observable inputs | unobservable | |||||||||||||||
for identical | inputs | ||||||||||||||||
assets | |||||||||||||||||
(amounts in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Low Duration Bond Fund | $ | 2,076 | N/A | N/A | $ | 2,076 | |||||||||||
Limited Term Bond Fund | 2,092 | N/A | N/A | 2,092 | |||||||||||||
Intermediate Term Bond Fund | 1,118 | N/A | N/A | 1,118 | |||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ' | ||||||||||||||||
Fair value measurements at January 26, 2014 using: | |||||||||||||||||
Quoted prices in | Significant other | Significant | |||||||||||||||
active markets | observable inputs | unobservable | |||||||||||||||
for identical | inputs | ||||||||||||||||
assets | |||||||||||||||||
(amounts in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Equipment | $ | - | $ | 890 | $ | - | $ | 890 | |||||||||
Non-compete Agreement | - | - | 882 | 882 | |||||||||||||
Customer Relationships | - | - | 868 | 868 |
Cash_Flow_Information_Tables
Cash Flow Information (Tables) | 9 Months Ended | ||||||||
Jan. 26, 2014 | |||||||||
Schedule of Payments for Interest and Income Taxes | ' | ||||||||
Payments for interest and income taxes follows: | |||||||||
Nine months ended | |||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | |||||||
Interest | $ | 283 | $ | 395 | |||||
Net income tax payments | 2,312 | 2,305 |
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 9 Months Ended | ||||||||
Jan. 26, 2014 | |||||||||
Schedule of Weighted Average Shares Used in the Computation of Basic and Diluted Net Income Per Share | ' | ||||||||
Weighted average shares used in the computation of basic and diluted net income per share follows: | |||||||||
Three months ended | |||||||||
(amounts in thousands) | 26-Jan-14 | 27-Jan-13 | |||||||
Weighted average common shares outstanding, basic | 12,188 | 12,095 | |||||||
Dilutive effect of stock-based compensation | 217 | 195 | |||||||
Weighted average common shares outstanding, diluted | 12,405 | 12,290 | |||||||
Nine months ended | |||||||||
(amounts in thousands) | 26-Jan-14 | 27-Jan-13 | |||||||
Weighted average common shares outstanding, basic | 12,173 | 12,279 | |||||||
Dilutive effect of stock-based compensation | 232 | 188 | |||||||
Weighted average common shares outstanding, diluted | 12,405 | 12,467 |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||
Jan. 26, 2014 | |||||||||||||
Schedule of Operating Segments Information | ' | ||||||||||||
Financial information for the company’s operating segments follows: | |||||||||||||
Three months ended | |||||||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | |||||||||||
Net sales: | |||||||||||||
Mattress Fabrics | $ | 38,541 | $ | 35,513 | |||||||||
Upholstery Fabrics | 33,848 | 28,182 | |||||||||||
$ | 72,389 | $ | 63,695 | ||||||||||
Gross profit: | |||||||||||||
Mattress Fabrics | $ | 5,599 | $ | 6,548 | |||||||||
Upholstery Fabrics | 6,238 | 5,137 | |||||||||||
$ | 11,837 | $ | 11,685 | ||||||||||
Selling, general, and administrative expenses: | |||||||||||||
Mattress Fabrics | $ | 2,286 | $ | 2,382 | |||||||||
Upholstery Fabrics | 3,572 | 3,360 | |||||||||||
Total segment selling, general, and administrative expenses | 5,858 | 5,742 | |||||||||||
Unallocated corporate expenses | 1,183 | 1,080 | |||||||||||
$ | 7,041 | $ | 6,822 | ||||||||||
Income from operations: | |||||||||||||
Mattress Fabrics | $ | 3,313 | $ | 4,166 | |||||||||
Upholstery Fabrics | 2,666 | 1,777 | |||||||||||
Total segment income from operations | 5,979 | 5,943 | |||||||||||
Unallocated corporate expenses | (1,183 | ) | (1,080 | ) | |||||||||
Total income from operations | 4,796 | 4,863 | |||||||||||
Interest expense | (91 | ) | (145 | ) | |||||||||
Interest income | 148 | 105 | |||||||||||
Other expense | (279 | ) | (300 | ) | |||||||||
Income before income taxes | $ | 4,574 | $ | 4,523 | |||||||||
Nine months ended | |||||||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | |||||||||||
Net sales: | |||||||||||||
Mattress Fabrics | $ | 117,035 | $ | 113,175 | |||||||||
Upholstery Fabrics | 96,084 | 85,264 | |||||||||||
$ | 213,119 | $ | 198,439 | ||||||||||
Gross profit: | |||||||||||||
Mattress Fabrics | $ | 20,312 | $ | 21,708 | |||||||||
Upholstery Fabrics | 16,833 | 14,974 | |||||||||||
$ | 37,145 | $ | 36,682 | ||||||||||
Selling, general, and administrative expenses: | |||||||||||||
Mattress Fabrics | $ | 7,280 | $ | 7,197 | |||||||||
Upholstery Fabrics | 10,007 | 9,857 | |||||||||||
Total segment selling, general, and | |||||||||||||
administrative expenses | 17,287 | 17,054 | |||||||||||
Unallocated corporate expenses | 4,053 | 4,618 | |||||||||||
$ | 21,340 | $ | 21,672 | ||||||||||
Income from operations: | |||||||||||||
Mattress Fabrics | $ | 13,033 | $ | 14,512 | |||||||||
Upholstery Fabrics | 6,825 | 5,116 | |||||||||||
Total segment income from operations | 19,858 | 19,628 | |||||||||||
Unallocated corporate expenses | (4,053 | ) | (4,618 | ) | |||||||||
Total income from operations | 15,805 | 15,010 | |||||||||||
Interest expense | (330 | ) | (491 | ) | |||||||||
Interest income | 343 | 328 | |||||||||||
Other expense | (895 | ) | (421 | ) | |||||||||
Income before income taxes | $ | 14,923 | $ | 14,426 | |||||||||
Balance sheet information for the company’s operating segments follow: | |||||||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | 28-Apr-13 | ||||||||||
Segment assets: | |||||||||||||
Mattress Fabrics | |||||||||||||
Current assets (1) | $ | 36,818 | $ | 34,595 | $ | 33,323 | |||||||
Non-compete agreement | 1,047 | 222 | 185 | ||||||||||
Customer relationships | 830 | - | - | ||||||||||
Goodwill | 11,462 | 11,462 | 11,462 | ||||||||||
Property, plant and equipment (2) | 27,822 | 28,116 | 28,578 | ||||||||||
Total mattress fabrics assets | 77,979 | 74,395 | 73,548 | ||||||||||
Upholstery Fabrics | |||||||||||||
Current assets (1) | 33,261 | 31,839 | 28,487 | ||||||||||
Property, plant and equipment (3) | 1,649 | 1,147 | 1,230 | ||||||||||
Total upholstery fabrics assets | 34,910 | 32,986 | 29,717 | ||||||||||
Total segment assets | 112,889 | 107,381 | 103,265 | ||||||||||
Non-segment assets: | |||||||||||||
Cash and cash equivalents | 23,293 | 19,489 | 23,530 | ||||||||||
Short-term investments | 7,077 | 5,237 | 5,286 | ||||||||||
Deferred income taxes | 8,730 | 8,270 | 8,462 | ||||||||||
Income taxes receivable | - | - | 318 | ||||||||||
Other current assets | 2,999 | 1,655 | 2,093 | ||||||||||
Property, plant and equipment (4) | 644 | 792 | 786 | ||||||||||
Other assets | 1,046 | 973 | 966 | ||||||||||
Total assets | $ | 156,678 | $ | 143,797 | $ | 144,706 | |||||||
Nine months ended | |||||||||||||
(dollars in thousands) | 26-Jan-14 | 27-Jan-13 | |||||||||||
Capital expenditures (5): | |||||||||||||
Mattress Fabrics | $ | 1,936 | $ | 2,223 | |||||||||
Upholstery Fabrics | 694 | 222 | |||||||||||
Unallocated Corporate | 37 | 149 | |||||||||||
Total capital expenditures | $ | 2,667 | $ | 2,594 | |||||||||
Depreciation expense: | |||||||||||||
Mattress Fabrics | $ | 3,510 | $ | 3,344 | |||||||||
Upholstery Fabrics | 454 | 474 | |||||||||||
Total depreciation expense | $ | 3,964 | $ | 3,818 | |||||||||
-1 | Current assets represent accounts receivable and inventory for the respective segment. | ||||||||||||
-2 | The $27.8 million at January 26, 2014, represents property, plant, and equipment of $20.1 million and $7.7 million located in the U.S. and Canada, respectively. The $28.1 million at January 27, 2013, represents property, plant, and equipment of $20.6 million and $7.5 million located in the U.S. and Canada, respectively. The $28.6 million at April 28, 2013, represents property, plant, and equipment of $20.4 million and $8.2 million located in the U.S. and Canada, respectively. | ||||||||||||
-3 | The $1.6 million at January 26, 2014, represents property, plant, and equipment located in the U.S. of $1.0 million, located in China of $561, and located in Poland of $47. The $1.1 million at January 27, 2013, represents property, plant, and equipment located in the U.S. of $906, located in China of $155, and located in Poland of $86. The $1.2 million at April 28, 2013, represents property, plant, and equipment located in the U.S. of $908, located in China of $265, and located in Poland of $57. | ||||||||||||
-4 | The $644, $792, and $786 at January 26, 2014, January 27, 2013, and April 28, 2013, respectively, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by both the mattress and upholstery fabric segments. Property, plant, and equipment associated with corporate are located in the U.S. | ||||||||||||
-5 | Capital expenditure amounts are stated on the accrual basis. See Consolidated Statement of Cash Flows for capital expenditure amounts on a cash basis. |
Business_Combination_Mattress_2
Business Combination - Mattress Fabric Segment - Narrative (Detail) (Bodet And Horst [Member], USD $) | 9 Months Ended |
Jan. 26, 2014 | |
Business Acquisition [Line Items] | ' |
Direct acquisition costs related to business combination | $83,000 |
Equipment [Member] | ' |
Business Acquisition [Line Items] | ' |
Tangible asset, useful life | '7 years |
Non-compete Agreement [Member] | ' |
Business Acquisition [Line Items] | ' |
Intangible asset, useful life | '15 years |
Customer Relationships [Member] | ' |
Business Acquisition [Line Items] | ' |
Intangible asset, useful life | '17 years |
Business_Combination_Mattress_3
Business Combination - Mattress Fabric Segment - Allocation of Acquisition Cost to Assets Acquired Based on Fair Values (Detail) (Bodet And Horst [Member], USD $) | 8-May-13 |
In Thousands, unless otherwise specified | |
Business Acquisition [Line Items] | ' |
Equipment | $890 |
Purchase price for equipment and other certain assets | 2,640 |
Non-compete Agreement [Member] | ' |
Business Acquisition [Line Items] | ' |
Intangible assets | 882 |
Customer Relationships [Member] | ' |
Business Acquisition [Line Items] | ' |
Intangible assets | $868 |
Business_Combination_Mattress_4
Business Combination - Mattress Fabric Segment - Unaudited Pro Forma Consolidated Results of Operations (Detail) (Bodet And Horst [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jan. 26, 2014 | Jan. 27, 2013 | Jan. 26, 2014 | Jan. 27, 2013 |
Bodet And Horst [Member] | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Net Sales | $72,389 | $66,162 | $213,119 | $205,839 |
Income from operations | 4,796 | 4,854 | 15,805 | 14,982 |
Net income | $8,381 | $2,858 | $14,707 | $14,532 |
Net income per share, basic | $0.69 | $0.24 | $1.21 | $1.18 |
Net income per share, diluted | $0.68 | $0.23 | $1.19 | $1.17 |
StockBased_Compensation_Detail
Stock-Based Compensation (Detail) (USD $) | Jan. 26, 2014 | Jan. 26, 2014 | Jan. 27, 2013 | Jan. 26, 2014 | Jan. 27, 2013 | Jan. 26, 2014 | Jan. 26, 2014 | Jan. 27, 2013 | Jan. 26, 2014 | Jan. 27, 2013 | Jan. 26, 2014 | Jan. 27, 2013 | Jan. 26, 2014 | Jan. 26, 2014 | Jan. 26, 2014 | Jan. 27, 2013 | Jan. 26, 2014 | Jan. 26, 2014 | Jan. 26, 2014 | Jan. 26, 2014 | Apr. 28, 2013 | Apr. 28, 2013 | Jan. 26, 2014 | Jan. 27, 2013 |
Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Stock Compensation Plan [Member] | Stock Compensation Plan [Member] | Stock Compensation Plan [Member] | Stock Compensation Plan [Member] | Stock Compensation Plan [Member] | Time Vested Restricted Stock Awards [Member] | Time Vested Restricted Stock Awards [Member] | Time Vested Restricted Stock Awards [Member] | Time Vested Restricted Stock Awards [Member] | Time Vested Restricted Stock Awards [Member] | Time Vested Restricted Stock Awards [Member] | Performance Based Restricted Stock Units [Member] | Performance Based Restricted Stock Units [Member] | Performance Based Restricted Stock Units [Member] | Performance Based Restricted Stock Units [Member] | Performance Based Restricted Stock Units [Member] | Performance Based Restricted Stock Units [Member] | Performance Based Restricted Stock Units [Member] | Performance Based Restricted Stock Units [Member] | ||
Selling, general and administrative expense [Member] | Selling, general and administrative expense [Member] | Granted on October 1, 2013 [Member] | Granted on October 8, 2012 [Member] | Granted on October 8, 2012 [Member] | Selling, general and administrative expense [Member] | Selling, general and administrative expense [Member] | Granted on January 7, 2009 [Member] | Granted on July 1, 2009 [Member] | Selling, general and administrative expense [Member] | Selling, general and administrative expense [Member] | Granted on June 25, 2013 [Member] | Granted on June 25, 2013 [Member] | Granted on July 11, 2012 [Member] | Granted on July 11, 2012 [Member] | Granted on July 11, 2012 [Member] | Selling, general and administrative expense [Member] | Selling, general and administrative expense [Member] | |||||||
Outside Director [Member] | Outside Director [Member] | Outside Director [Member] | Outside Director [Member] | Outside Director [Member] | Vesting on May 1, 2014 [Member] | Vesting on July 1, 2014 [Member] | Maximum [Member] | Maximum [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of options granted | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of options to purchase common stock outstanding | ' | 153,950 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of options exercisable | ' | 153,950 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price for options outstanding | ' | $6.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price for options exercisable | ' | $6.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average contractual term for options outstanding | ' | '3 years 10 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average contractual term for options exercisable | ' | '3 years 10 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value for options outstanding | ' | $2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value for options exercised | ' | 224,000 | 90,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized stock based compensation cost | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | ' | 10,000 | 53,000 | ' | ' | ' | 57,000 | 20,000 | ' | ' | ' | ' | 52,000 | 116,000 | ' | ' | ' | ' | ' | ' | 432,000 | 119,000 |
Number of shares granted | ' | ' | ' | ' | ' | 3,000 | ' | 1,658 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | 72,380 | ' | ' | 120,000 | ' | ' |
Vesting period | ' | ' | ' | ' | ' | '0 days | '0 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | '3 years | ' | ' | ' | ' |
Closing price of common stock at the date of grant | ' | ' | ' | ' | ' | $18.84 | ' | $12.13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $17.12 | ' | ' | $10.21 | ' | ' | ' |
Number of shares outstanding and unvested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 61,667 | ' | 35,000 | 26,667 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average fair value of outstanding and unvested shares, per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares vested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 61,667 | 61,665 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average fair value of vested shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 249,000 | 232,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average fair value of vested shares, per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.04 | $3.76 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining unrecognized compensation cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $19,000 | ' | ' | ' | ' | ' | $1,100,000 | ' | ' | ' | ' | ' | ' | ' |
Weighted average period over which unrecognized compensation cost is expected to be recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 months 24 days | ' | ' | ' | ' | ' | '1 year 10 months 24 days | ' | ' | ' | ' | ' | ' | ' |
Accounts_Receivable_Detail
Accounts Receivable (Detail) (USD $) | Jan. 26, 2014 | Apr. 28, 2013 | Jan. 27, 2013 | Apr. 29, 2012 | |
In Thousands, unless otherwise specified | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | |
Customers | $27,424 | $24,715 | $25,533 | ' | |
Accounts receivable, net | 26,392 | 23,392 | [1] | 24,257 | ' |
Allowance for doubtful accounts [Member] | ' | ' | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | |
Valuation allowance, balance | -484 | -780 | -696 | -567 | |
Reserve for returns and allowances and discounts [Member] | ' | ' | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | |
Valuation allowance, balance | ($548) | ($543) | ($580) | ($478) | |
[1] | Derived from audited financial statements. |
Accounts_Receivable_Allowance_
Accounts Receivable - Allowance for Doubtful Accounts (Detail) (Allowance for doubtful accounts [Member], USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jan. 26, 2014 | Jan. 27, 2013 |
Allowance for doubtful accounts [Member] | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' |
Beginning balance | ($780) | ($567) |
Provision for bad debts | 235 | -193 |
Net write-offs, net of recoveries | 61 | 64 |
Ending balance | ($484) | ($696) |
Accounts_Receivable_Allowance_1
Accounts Receivable - Allowance for Returns and Allowances and Discounts (Detail) (Reserve for returns and allowances and discounts [Member], USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jan. 26, 2014 | Jan. 27, 2013 |
Reserve for returns and allowances and discounts [Member] | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' |
Beginning balance | ($543) | ($478) |
Provision for returns, allowances and discounts | -1,579 | -2,146 |
Credits issued | 1,574 | 2,044 |
Ending balance | ($548) | ($580) |
Inventories_Detail
Inventories (Detail) (USD $) | Jan. 26, 2014 | Apr. 28, 2013 | Jan. 27, 2013 | |
In Thousands, unless otherwise specified | ||||
Inventory [Line Items] | ' | ' | ' | |
Raw materials | $6,177 | $5,311 | $6,037 | |
Work-in-process | 2,177 | 2,539 | 2,772 | |
Finished goods | 35,333 | 30,568 | 33,368 | |
Inventories | $43,687 | $38,418 | [1] | $42,177 |
[1] | Derived from audited financial statements. |
Other_Assets_Detail
Other Assets (Detail) (USD $) | Jan. 26, 2014 | Apr. 28, 2013 | Jan. 27, 2013 | |
In Thousands, unless otherwise specified | ||||
Other Assets Noncurrent [Line Items] | ' | ' | ' | |
Cash surrender value - life insurance | $647 | $625 | $700 | |
Non-compete agreement | 1,047 | 185 | 222 | |
Customer relationships | 830 | ' | ' | |
Other | 399 | 341 | 273 | |
Other assets | $2,923 | $1,151 | [1] | $1,195 |
[1] | Derived from audited financial statements. |
Other_Assets_Narrative_Detail
Other Assets - Narrative (Detail) (USD $) | 9 Months Ended | ||
Jan. 26, 2014 | Jan. 27, 2013 | Apr. 28, 2013 | |
Other Assets Noncurrent [Line Items] | ' | ' | ' |
Non-compete agreement carrying amount | $1,047,000 | $222,000 | $185,000 |
Other assets [Member] | ' | ' | ' |
Other Assets Noncurrent [Line Items] | ' | ' | ' |
Gross carrying amount of non-compete agreement | 2,000,000 | 1,100,000 | 1,100,000 |
Gross carrying amount of customer relationships | 868,000 | ' | ' |
Number of life insurance contracts owned | 2 | 3 | 2 |
Life insurance contracts, death benefits to insured | 4,400,000 | 4,900,000 | 4,400,000 |
Other assets [Member] | Non-compete Agreement [Member] | ' | ' | ' |
Other Assets Noncurrent [Line Items] | ' | ' | ' |
Useful life | '15 years | ' | ' |
Quarterly payments | 12,500 | ' | ' |
Total remaining non-compete payments | 25,000 | ' | ' |
Final payment date | '2014-05 | ' | ' |
Accumulated amortization | 996,000 | 890,000 | 940,000 |
Amortization expense | 56,000 | 148,000 | ' |
Remaining amortization expense for the remaining fiscal year | 18,000 | ' | ' |
Remaining amortization expense for the second fiscal year | 75,000 | ' | ' |
Remaining amortization expense for the third fiscal year | 75,000 | ' | ' |
Remaining amortization expense for the fourth fiscal year | 75,000 | ' | ' |
Remaining amortization expense for the fifth fiscal year | 75,000 | ' | ' |
Remaining amortization expense for the fiscal year thereafter | 754,000 | ' | ' |
Weighted average remaining amortization period | '14 years 3 months 18 days | ' | ' |
Other assets [Member] | Asset Purchase Agreement Dated August 11, 2008 [Member] | ' | ' | ' |
Other Assets Noncurrent [Line Items] | ' | ' | ' |
Non-compete agreement carrying amount | 209,000 | ' | ' |
Other assets [Member] | Asset Purchase Agreement Dated May 8, 2013 [Member] | ' | ' | ' |
Other Assets Noncurrent [Line Items] | ' | ' | ' |
Non-compete agreement carrying amount | 838,000 | ' | ' |
Other assets [Member] | Customer Relationships [Member] | ' | ' | ' |
Other Assets Noncurrent [Line Items] | ' | ' | ' |
Useful life | '17 years | ' | ' |
Accumulated amortization | 38,000 | ' | ' |
Amortization expense | 38,000 | ' | ' |
Remaining amortization expense for the remaining fiscal year | 13,000 | ' | ' |
Remaining amortization expense for the second fiscal year | 51,000 | ' | ' |
Remaining amortization expense for the third fiscal year | 51,000 | ' | ' |
Remaining amortization expense for the fourth fiscal year | 51,000 | ' | ' |
Remaining amortization expense for the fifth fiscal year | 51,000 | ' | ' |
Remaining amortization expense for the fiscal year thereafter | $613,000 | ' | ' |
Weighted average remaining amortization period | '16 years 3 months 18 days | ' | ' |
Accrued_Expenses_Detail
Accrued Expenses (Detail) (USD $) | Jan. 26, 2014 | Apr. 28, 2013 | Jan. 27, 2013 | |
In Thousands, unless otherwise specified | ||||
Schedule of Accrued Liabilities [Line Items] | ' | ' | ' | |
Compensation, commissions and related benefits | $8,747 | $9,831 | $9,417 | |
Interest | 158 | 111 | 243 | |
Other accrued expenses | 2,907 | 1,887 | 3,163 | |
Accrued expenses | $11,812 | $11,829 | [1] | $12,823 |
[1] | Derived from audited financial statements. |
LongTerm_Debt_and_Lines_of_Cre2
Long-Term Debt and Lines of Credit (Detail) (USD $) | Jan. 26, 2014 | Apr. 28, 2013 | Jan. 27, 2013 | |
In Thousands, unless otherwise specified | ||||
Debt Instrument [Line Items] | ' | ' | ' | |
Long-term debt | $4,400 | $6,600 | $6,766 | |
Current maturities of long-term debt | -2,200 | -2,200 | [1] | -2,366 |
Long-term debt, less current maturities of long-term debt | 2,200 | 4,400 | [1] | 4,400 |
Unsecured senior term notes [Member] | ' | ' | ' | |
Debt Instrument [Line Items] | ' | ' | ' | |
Long-term debt | 4,400 | 6,600 | 6,600 | |
Canadian government loan [Member] | ' | ' | ' | |
Debt Instrument [Line Items] | ' | ' | ' | |
Long-term debt | ' | ' | $166 | |
[1] | Derived from audited financial statements. |
LongTerm_Debt_and_Lines_of_Cre3
Long-Term Debt and Lines of Credit - Long-Term Debt Narrative (Detail) (USD $) | 9 Months Ended | |||
Jan. 26, 2014 | Apr. 28, 2013 | Jan. 27, 2013 | Aug. 11, 2008 | |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Principal payment requirements of long-term debt for the first year | $2,200,000 | ' | ' | ' |
Principal payment requirements of long-term debt for the second year | 2,200,000 | ' | ' | ' |
Long-term debt | 4,400,000 | 6,600,000 | 6,766,000 | ' |
Long-term debt, fair value | 4,700,000 | 7,000,000 | 7,100,000 | ' |
Unsecured senior term notes [Member] | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Issuance of unsecured term notes | ' | ' | ' | 11,000,000 |
Fixed interest rate | ' | ' | ' | 8.01% |
Term of the note agreement | '7 years | ' | ' | ' |
Required amount of principal payment installments | 2,200,000 | ' | ' | ' |
Date of first required principal payment | 11-Aug-11 | ' | ' | ' |
Required debt payment frequency | 'Annual | ' | ' | ' |
Average term period for remaining principal payments, in years | '1 year 6 months | ' | ' | ' |
Maturity date | 11-Aug-15 | ' | ' | ' |
Long-term debt | $4,400,000 | $6,600,000 | $6,600,000 | ' |
LongTerm_Debt_and_Lines_of_Cre4
Long-Term Debt and Lines of Credit - Lines of Credit Narrative (Detail) | Jan. 26, 2014 | Apr. 28, 2013 | Jan. 27, 2013 | Jan. 26, 2014 | Aug. 13, 2013 | Apr. 28, 2013 | Jan. 26, 2014 | Jan. 26, 2014 | Jan. 26, 2014 | Apr. 28, 2013 | Jan. 27, 2013 | Jan. 26, 2014 | Jan. 26, 2014 | Aug. 13, 2013 | Aug. 13, 2013 | Apr. 28, 2013 | Apr. 28, 2013 | Jan. 27, 2013 | Jan. 27, 2013 |
United States [Member] | United States [Member] | United States [Member] | United States [Member] | United States [Member] | United States [Member] | United States [Member] | China [Member] | China [Member] | China [Member] | China [Member] | Poland [Member] | Poland [Member] | Poland [Member] | Poland [Member] | Poland [Member] | Poland [Member] | Poland [Member] | Poland [Member] | |
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving credit agreement [Member] | Revolving credit agreement [Member] | Revolving credit agreement [Member] | Revolving credit agreement [Member] | Revolving credit agreement [Member] | Revolving credit agreement [Member] | Revolving credit agreement [Member] | Revolving credit agreement [Member] | Revolving credit agreement [Member] | Revolving credit agreement [Member] | Revolving credit agreement [Member] | Revolving credit agreement [Member] | |
USD ($) | USD ($) | USD ($) | New Credit Agreement [Member] | New Credit Agreement [Member] | Amended and Restated Credit Agreement on April 28, 2013 [Member] | Amended and Restated Credit Agreement on April 28, 2013 [Member] | USD ($) | CNY | USD ($) | USD ($) | USD ($) | PLN | USD ($) | PLN | USD ($) | PLN | USD ($) | PLN | |
USD ($) | USD ($) | ||||||||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | $10,000,000 | $7,600,000 | ' | $6,600,000 | 40,000,000 | ' | ' | ' | ' | $2,200,000 | 6,800,000 | ' | ' | ' | ' |
Expiration date | ' | ' | ' | 31-Aug-15 | ' | 25-Aug-13 | ' | 8-Jun-14 | 8-Jun-14 | ' | ' | 31-Aug-15 | 31-Aug-15 | ' | ' | ' | ' | ' | ' |
Interest rate description | ' | ' | ' | 'Interest is charged at a rate equal to the one-month LIBOR rate plus a spread based on our ratio of debt to EBITDA as defined in the agreement | ' | ' | 'This agreement provided for a pricing matrix to determine the interest rate payable on loans made under this agreement. | 'This agreement has an interest rate determined by the Chinese government | 'This agreement has an interest rate determined by the Chinese government | ' | ' | 'This agreement bears interest at WIBOR (Warsaw Interbank Offered Rate) plus 2% | 'This agreement bears interest at WIBOR (Warsaw Interbank Offered Rate) plus 2% | ' | ' | ' | ' | ' | ' |
Reference rate on which the interest rate is based | ' | ' | ' | 'One-month LIBOR rate | ' | ' | ' | ' | ' | ' | ' | 'Warsaw Interbank Offered Rate | 'Warsaw Interbank Offered Rate | ' | ' | ' | ' | ' | ' |
Applicable interest rate at end of period | ' | ' | ' | 1.76% | ' | ' | ' | ' | ' | ' | ' | 4.50% | 4.50% | ' | ' | ' | ' | ' | ' |
Letter of credit, outstanding amount | 195,000 | 195,000 | 195,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding amount | $0 | $0 | $0 | ' | ' | ' | ' | $0 | 0 | $0 | $0 | $573,000 | 1,800,000 | ' | ' | $561,000 | 1,800,000 | $576,000 | 1,800,000 |
Percent added to reference rate in effect from time to time to set the interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | 2.00% | ' | ' | ' | ' | ' | ' |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Recurring Basis (Detail) (USD $) | Jan. 26, 2014 | Apr. 28, 2013 | Jan. 27, 2013 |
In Thousands, unless otherwise specified | |||
Low Duration Bond Fund [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Assets measured at fair value on a recurring basis | $2,069 | $2,076 | $2,066 |
Limited Term Bond Fund [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Assets measured at fair value on a recurring basis | 2,570 | 2,092 | 2,070 |
Intermediate Term Bond Fund [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Assets measured at fair value on a recurring basis | 1,612 | 1,118 | 1,101 |
Quoted prices in active markets for identical assets - Level 1 [Member] | Low Duration Bond Fund [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Assets measured at fair value on a recurring basis | 2,069 | 2,076 | 2,066 |
Quoted prices in active markets for identical assets - Level 1 [Member] | Limited Term Bond Fund [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Assets measured at fair value on a recurring basis | 2,570 | 2,092 | 2,070 |
Quoted prices in active markets for identical assets - Level 1 [Member] | Intermediate Term Bond Fund [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Assets measured at fair value on a recurring basis | $1,612 | $1,118 | $1,101 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Narrative (Detail) (Short-term investments [Member], USD $) | Jan. 26, 2014 | Apr. 28, 2013 | Jan. 27, 2013 |
Short-term investments [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Short-term bond funds | $6,300,000 | $5,300,000 | $5,200,000 |
Unrealized gain (loss) on short-term bond funds | ($74,000) | $54,000 | $26,000 |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments - Nonrecurring Basis (Detail) (USD $) | Jan. 26, 2014 |
In Thousands, unless otherwise specified | |
Equipment [Member] | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Assets measured at fair value on a nonrecurring basis | $890 |
Non-compete Agreement [Member] | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Assets measured at fair value on a nonrecurring basis | 882 |
Customer Relationships [Member] | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Assets measured at fair value on a nonrecurring basis | 868 |
Significant other observable inputs - Level 2 [Member] | Equipment [Member] | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Assets measured at fair value on a nonrecurring basis | 890 |
Significant unobservable inputs - Level 3 [Member] | Non-compete Agreement [Member] | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Assets measured at fair value on a nonrecurring basis | 882 |
Significant unobservable inputs - Level 3 [Member] | Customer Relationships [Member] | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' |
Assets measured at fair value on a nonrecurring basis | $868 |
Cash_Flow_Information_Detail
Cash Flow Information (Detail) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Jan. 26, 2014 | Jan. 27, 2013 |
Cash Flow Supplemental Disclosures [Line Items] | ' | ' |
Interest | $283 | $395 |
Net income tax payments | $2,312 | $2,305 |
Net_Income_Per_Share_Weighted_
Net Income Per Share - Weighted Average Shares (Detail) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 26, 2014 | Jan. 27, 2013 | Jan. 26, 2014 | Jan. 27, 2013 |
Schedule of Weighted Average Number of Diluted Shares Outstanding [Line Items] | ' | ' | ' | ' |
Weighted average common shares outstanding, basic | 12,188 | 12,095 | 12,173 | 12,279 |
Dilutive effect of stock-based compensation | 217 | 195 | 232 | 188 |
Weighted average common shares outstanding, diluted | 12,405 | 12,290 | 12,405 | 12,467 |
Net_Income_Per_Share_Narrative
Net Income Per Share - Narrative (Detail) | 3 Months Ended | 9 Months Ended | ||
Jan. 26, 2014 | Jan. 27, 2013 | Jan. 26, 2014 | Jan. 27, 2013 | |
Earnings Per Share Disclosure [Line Items] | ' | ' | ' | ' |
Number of shares of common stock excluded from the computation of basic net income | 61,667 | 123,335 | 61,667 | 123,335 |
Stock Options [Member] | ' | ' | ' | ' |
Earnings Per Share Disclosure [Line Items] | ' | ' | ' | ' |
Number of common stock options excluded from the computation of diluted net income per share | ' | ' | ' | 2,000 |
Segment_Information_Narrative_
Segment Information - Narrative (Detail) | 9 Months Ended |
Jan. 26, 2014 | |
Segment | |
Segment Reporting Information [Line Items] | ' |
Number of business segments | 2 |
Segment_Information_Financial_
Segment Information - Financial Information for Operating Segments (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 26, 2014 | Jan. 27, 2013 | Jan. 26, 2014 | Jan. 27, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | $72,389 | $63,695 | $213,119 | $198,439 |
Gross profit | 11,837 | 11,685 | 37,145 | 36,682 |
Selling, general, and administrative expenses | 7,041 | 6,822 | 21,340 | 21,672 |
Income from operations | 4,796 | 4,863 | 15,805 | 15,010 |
Interest expense | -91 | -145 | -330 | -491 |
Interest income | 148 | 105 | 343 | 328 |
Other expense | -279 | -300 | -895 | -421 |
Income before income taxes | 4,574 | 4,523 | 14,923 | 14,426 |
Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Selling, general, and administrative expenses | 5,858 | 5,742 | 17,287 | 17,054 |
Income from operations | 5,979 | 5,943 | 19,858 | 19,628 |
Operating Segments [Member] | Mattress Fabrics [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | 38,541 | 35,513 | 117,035 | 113,175 |
Gross profit | 5,599 | 6,548 | 20,312 | 21,708 |
Selling, general, and administrative expenses | 2,286 | 2,382 | 7,280 | 7,197 |
Income from operations | 3,313 | 4,166 | 13,033 | 14,512 |
Operating Segments [Member] | Upholstery Fabrics [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | 33,848 | 28,182 | 96,084 | 85,264 |
Gross profit | 6,238 | 5,137 | 16,833 | 14,974 |
Selling, general, and administrative expenses | 3,572 | 3,360 | 10,007 | 9,857 |
Income from operations | 2,666 | 1,777 | 6,825 | 5,116 |
Unallocated corporate [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Selling, general, and administrative expenses | 1,183 | 1,080 | 4,053 | 4,618 |
Income from operations | ($1,183) | ($1,080) | ($4,053) | ($4,618) |
Segment_Information_Balance_Sh
Segment Information - Balance Sheet Information by Operating Segments (Detail) (USD $) | Jan. 26, 2014 | Apr. 28, 2013 | Jan. 27, 2013 | Apr. 29, 2012 | |||
In Thousands, unless otherwise specified | |||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |||
Customer relationships | $830 | ' | ' | ' | |||
Goodwill | 11,462 | 11,462 | [1] | 11,462 | ' | ||
Property, plant and equipment | 30,115 | 30,594 | [1] | 30,055 | ' | ||
Total assets | 156,678 | 144,706 | [1] | 143,797 | ' | ||
Cash and cash equivalents | 23,293 | 23,530 | [1] | 19,489 | 25,023 | ||
Short-term investments | 7,077 | 5,286 | [1] | 5,237 | ' | ||
Income taxes receivable | ' | 318 | [1] | ' | ' | ||
Other current assets | 2,999 | 2,093 | [1] | 1,655 | ' | ||
Other assets | 2,923 | 1,151 | [1] | 1,195 | ' | ||
Operating Segments [Member] | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |||
Total assets | 112,889 | 103,265 | 107,381 | ' | |||
Operating Segments [Member] | Mattress Fabrics [Member] | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |||
Current assets | 36,818 | [2] | 33,323 | [2] | 34,595 | [2] | ' |
Non-compete agreement | 1,047 | 185 | 222 | ' | |||
Customer relationships | 830 | ' | ' | ' | |||
Goodwill | 11,462 | 11,462 | 11,462 | ' | |||
Property, plant and equipment | 27,822 | [3] | 28,578 | [3] | 28,116 | [3] | ' |
Total assets | 77,979 | 73,548 | 74,395 | ' | |||
Operating Segments [Member] | Upholstery Fabrics [Member] | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |||
Current assets | 33,261 | [2] | 28,487 | [2] | 31,839 | [2] | ' |
Property, plant and equipment | 1,649 | [4] | 1,230 | [4] | 1,147 | [4] | ' |
Total assets | 34,910 | 29,717 | 32,986 | ' | |||
Unallocated corporate [Member] | ' | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |||
Property, plant and equipment | 644 | [5] | 786 | [5] | 792 | [5] | ' |
Cash and cash equivalents | 23,293 | 23,530 | 19,489 | ' | |||
Short-term investments | 7,077 | 5,286 | 5,237 | ' | |||
Deferred income taxes | 8,730 | 8,462 | 8,270 | ' | |||
Income taxes receivable | ' | 318 | ' | ' | |||
Other current assets | 2,999 | 2,093 | 1,655 | ' | |||
Other assets | $1,046 | $966 | $973 | ' | |||
[1] | Derived from audited financial statements. | ||||||
[2] | Current assets represent accounts receivable and inventory for the respective segment. | ||||||
[3] | The $27.8 million at January 26, 2014, represents property, plant, and equipment of $20.1 million and $7.7 million located in the U.S. and Canada, respectively. The $28.1 million at January 27, 2013, represents property, plant, and equipment of $20.6 million and $7.5 million located in the U.S. and Canada, respectively. The $28.6 million at April 28, 2013, represents property, plant, and equipment of $20.4 million and $8.2 million located in the U.S. and Canada, respectively. | ||||||
[4] | The $1.6 million at January 26, 2014, represents property, plant, and equipment located in the U.S. of $1.0 million, located in China of $561, and located in Poland of $47. The $1.1 million at January 27, 2013, represents property, plant, and equipment located in the U.S. of $906, located in China of $155, and located in Poland of $86. The $1.2 million at April 28, 2013, represents property, plant, and equipment located in the U.S. of $908, located in China of $265, and located in Poland of $57. | ||||||
[5] | The $644, $792, and $786 at January 26, 2014, January 27, 2013, and April 28, 2013, respectively, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by both the mattress and upholstery fabric segments. Property, plant, and equipment associated with corporate are located in the U.S. |
Segment_Information_Capital_Ex
Segment Information - Capital Expenditures and Depreciation Expense By Operating Segments (Detail) (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Jan. 26, 2014 | Jan. 27, 2013 | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Capital expenditures | $2,667 | [1] | $2,594 | [1] |
Depreciation expense | 3,964 | 3,818 | ||
Operating Segments [Member] | Mattress Fabrics [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Capital expenditures | 1,936 | 2,223 | ||
Depreciation expense | 3,510 | 3,344 | ||
Operating Segments [Member] | Upholstery Fabrics [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Capital expenditures | 694 | 222 | ||
Depreciation expense | 454 | 474 | ||
Unallocated corporate [Member] | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ||
Capital expenditures | $37 | $149 | ||
[1] | Capital expenditure amounts are stated on the accrual basis. See Consolidated Statement of Cash Flows for capital expenditure amounts on a cash basis. |
Segment_Information_Balance_Sh1
Segment Information - Balance Sheet Information by Operating Segments (Parenthetical) (Detail) (USD $) | Jan. 26, 2014 | Apr. 28, 2013 | Jan. 27, 2013 | |||
In Thousands, unless otherwise specified | ||||||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Property, plant and equipment | $30,115 | $30,594 | [1] | $30,055 | ||
Unallocated corporate [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Property, plant and equipment | 644 | [2] | 786 | [2] | 792 | [2] |
Unallocated corporate [Member] | United States [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Property, plant and equipment | 644 | 786 | 792 | |||
Mattress Fabrics [Member] | United States [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Property, plant and equipment | 20,100 | 20,400 | 20,600 | |||
Mattress Fabrics [Member] | Canada [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Property, plant and equipment | 7,700 | 8,200 | 7,500 | |||
Upholstery Fabrics [Member] | United States [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Property, plant and equipment | 1,000 | 908 | 906 | |||
Upholstery Fabrics [Member] | China [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Property, plant and equipment | 561 | 265 | 155 | |||
Upholstery Fabrics [Member] | Poland [Member] | ' | ' | ' | |||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Property, plant and equipment | $47 | $57 | $86 | |||
[1] | Derived from audited financial statements. | |||||
[2] | The $644, $792, and $786 at January 26, 2014, January 27, 2013, and April 28, 2013, respectively, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by both the mattress and upholstery fabric segments. Property, plant, and equipment associated with corporate are located in the U.S. |
Income_Taxes_Detail
Income Taxes (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jan. 26, 2014 | Jan. 27, 2013 | Jan. 26, 2014 | Jan. 27, 2013 | Apr. 28, 2013 | ||
Income Taxes [Line Items] | ' | ' | ' | ' | ' | |
Income taxes | ($3,807,000) | $1,700,000 | $216,000 | ($188,000) | ' | |
Income tax rate | ' | ' | 1.40% | -1.30% | ' | |
Statutory rate | ' | ' | 34.00% | 34.00% | ' | |
Decrease in effective income tax rate from undistributed earnings from foreign subsidiaries | ' | ' | -36.00% | ' | ' | |
Income tax expense (benefit) from income tax effects on undistributed earnings from foreign subsidiaries | ' | ' | -5,400,000 | ' | ' | |
U.S. income and foreign withholding taxes | ' | ' | 26,900,000 | 21,900,000 | 22,000,000 | |
Increase in income tax rate from adjustments to the state of North Carolina loss carryforwards for the decrease in future North Carolina corporate income tax rates | ' | ' | 2.00% | ' | ' | |
Income tax expense related to the adjustments of the state of North Carolina loss carryforwards from the decrease in future North Carolina corporate income tax rates | ' | ' | 273,000 | ' | ' | |
Decrease in income tax rate from the lower statutory income tax rates in foreign jurisdictions compared with the U.S statutory income tax rate | ' | ' | -7.00% | -6.00% | ' | |
Increase in income tax rate from an increase in unrecognized tax benefits | ' | ' | 4.00% | 5.00% | ' | |
Increase in income tax rate for stock-based compensation and other miscellaneous items | ' | ' | 4.40% | 2.70% | ' | |
Increase in effective income tax rate from the establishment of a deferred tax liability for undistributed earnings | ' | ' | ' | 46.00% | ' | |
Income tax expense (benefit) from change in treatment of undistributed earnings | ' | ' | ' | 6,600,000 | ' | |
Undistributed earnings from our foreign subsidiaries that will be distributed to the parent company | 69,800,000 | 56,300,000 | 69,800,000 | 56,300,000 | 56,700,000 | |
Deferred tax liability, undistributed earnings from foreign subsidiaries | 1,700,000 | 6,800,000 | 1,700,000 | 6,800,000 | 7,000,000 | |
U.S. foreign income tax credits | ' | ' | 25,200,000 | 15,100,000 | 15,000,000 | |
Current deferred tax asset | 7,503,000 | 4,098,000 | 7,503,000 | 4,098,000 | 7,709,000 | [1] |
Non-current deferred tax asset | 1,227,000 | 4,172,000 | 1,227,000 | 4,172,000 | 753,000 | [1] |
Non-current deferred tax liability | 945,000 | 856,000 | 945,000 | 856,000 | 3,075,000 | [1] |
Unrecognized tax benefits | 13,600,000 | 13,100,000 | 13,600,000 | 13,100,000 | 13,100,000 | |
Unrecognized tax benefits that would favorably impact effective income tax rate if recognized | 4,000,000 | 4,200,000 | 4,000,000 | 4,200,000 | 4,200,000 | |
Expected increase in unrecognized tax benefits related to double taxation under applicable tax treaties with foreign tax jurisdictions | 808,000 | ' | 808,000 | ' | ' | |
Net Non-current Deferred Income Tax Liability [Member] | ' | ' | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | |
Unrecognized tax benefits | 9,600,000 | ' | 9,600,000 | ' | 8,900,000 | |
Net Non-current Deferred Income Tax Assets [Member] | ' | ' | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | |
Unrecognized tax benefits | ' | 8,900,000 | ' | 8,900,000 | ' | |
Income Taxes Payable - Long-Term [Member] | ' | ' | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | |
Unrecognized tax benefits | 4,000,000 | 4,200,000 | 4,000,000 | 4,200,000 | 4,200,000 | |
U.S. Tax Authorities [Member] | ' | ' | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | |
Increase (decrease) in effective income tax rate from the change of valuation allowance for net deferred income tax assets | ' | ' | ' | -84.00% | ' | |
Income tax expense (benefit) related to changes in the valuation allowance for deferred tax assets | ' | ' | ' | -12,100,000 | ' | |
Current deferred tax asset | 7,300,000 | 3,800,000 | 7,300,000 | 3,800,000 | 7,400,000 | |
Non-current deferred tax asset | 600,000 | 3,400,000 | 600,000 | 3,400,000 | ' | |
Non-current deferred tax liability | ' | ' | ' | ' | 2,000,000 | |
U.S. Tax Authorities [Member] | Foreign Subsidiaries in Canada and China [Member] | ' | ' | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | |
Increase in effective income tax rate from the establishment of a deferred tax liability for undistributed earnings | ' | ' | ' | 46.00% | ' | |
Income tax expense (benefit) from change in treatment of undistributed earnings | ' | ' | ' | 6,600,000 | ' | |
U.S. Tax Authorities [Member] | Foreign Subsidiaries in China [Member] | ' | ' | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | |
Decrease in effective income tax rate from undistributed earnings from foreign subsidiaries | ' | ' | -36.00% | ' | ' | |
Income tax expense (benefit) from income tax effects on undistributed earnings from foreign subsidiaries | -5,400,000 | ' | -5,400,000 | ' | ' | |
U.S. foreign income tax credits | 9,900,000 | ' | 9,900,000 | ' | ' | |
U.S. income and foreign withholding taxes | 4,500,000 | ' | 4,500,000 | ' | ' | |
China [Member] | ' | ' | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | |
Current deferred tax asset | 217,000 | 329,000 | 217,000 | 329,000 | 325,000 | |
Non-current deferred tax asset | 627,000 | 793,000 | 627,000 | 793,000 | 753,000 | |
Canada [Member] | ' | ' | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | |
Non-current deferred tax liability | 945,000 | 856,000 | 945,000 | 856,000 | 1,100,000 | |
U.S. Tax Authorities and Poland Tax Authorities [Member] | Deferred Tax Asset Loss Carryforwards [Member] | ' | ' | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | |
Valuation allowance | 1,000,000 | 926,000 | 1,000,000 | 926,000 | 963,000 | |
U.S. State Tax [Member] | Deferred Tax Asset Loss Carryforwards [Member] | ' | ' | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | |
Valuation allowance | 715,000 | 719,000 | 715,000 | 719,000 | 722,000 | |
Poland [Member] | Culp Europe [Member] | ' | ' | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | |
Increase (decrease) in effective income tax rate from the change of valuation allowance for net deferred income tax assets | ' | ' | ' | 1.00% | ' | |
Poland [Member] | Culp Europe [Member] | Deferred Tax Asset Loss Carryforwards [Member] | ' | ' | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | |
Valuation allowance | 291,000 | 207,000 | 291,000 | 207,000 | 241,000 | |
Canada and China [Member] | ' | ' | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | |
Decrease in income tax rate from the lower statutory income tax rates in foreign jurisdictions compared with the U.S statutory income tax rate | ' | ' | -7.00% | -6.00% | ' | |
Valuation allowance | 0 | 0 | 0 | 0 | 0 | |
North Carolina [Member] | ' | ' | ' | ' | ' | |
Income Taxes [Line Items] | ' | ' | ' | ' | ' | |
Increase in income tax rate from adjustments to the state of North Carolina loss carryforwards for the decrease in future North Carolina corporate income tax rates | ' | ' | 2.00% | ' | ' | |
Income tax expense related to the adjustments of the state of North Carolina loss carryforwards from the decrease in future North Carolina corporate income tax rates | ' | ' | $273,000 | ' | ' | |
[1] | Derived from audited financial statements. |
Statutory_Reserves_Detail
Statutory Reserves (Detail) (Subsidiaries [Member], China [Member], USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Jan. 26, 2014 |
Subsidiaries [Member] | China [Member] | ' |
Statutory Reserve [Line Items] | ' |
Percentage of net income required to be transferred to a statutory surplus reserve fund | 10.00% |
Maximum required percentage of statutory surplus reserve fund to registered capital | 50.00% |
Statutory surplus reserve fund balance | $4.50 |
Percentage of accumulated earnings and profits determined in accordance with PRC accounting rules and regulations | 10.00% |
Minimum threshold percentage for statutory surplus reserve fund as percentage of registered capital, below which certain capital transactions are prohibited | 25.00% |
Commitments_and_Contingencies_
Commitments and Contingencies (Detail) (USD $) | Jan. 26, 2014 | Apr. 28, 2013 | Jan. 27, 2013 | Jan. 26, 2014 | Jan. 26, 2014 | Jan. 26, 2014 |
Mattress Fabrics [Member] | Mattress Fabrics [Member] | Mattress Fabrics [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | |
Capital Addition Purchase Commitments [Member] | Capital Addition Purchase Commitments [Member] | Capital Addition Purchase Commitments [Member] | Environmental Issue [Member] | Environmental Issue [Member] | Environmental Issue [Member] | |
Site of former manufacturing plant in West Hazleton, Pennsylvania [Member] | Other Expense [Member] | |||||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' | ' | ' | ' |
Lawsuit filing date | ' | ' | ' | 'February 5, 2008 | ' | ' |
Actions taken by court which impacted the lawsuit | ' | ' | ' | ' | 'The lawsuit involves court judgments that have been entered against the plaintiffs and against defendant Chromatex, Inc. requiring them to pay costs incurred by the United States Environmental Protection Agency ("USEPA") responding to environmental contamination at the Site, in amounts approximating $8.6 million, plus unspecified future environmental costs. | ' |
Amount of judgment against plaintiffs for which recovery is being sought from defendants | ' | ' | ' | ' | $8,600,000 | ' |
Site maximum loss exposure representing contamination clean up costs incurred by the United States Environmental Protection Agency | ' | ' | ' | ' | 13,000,000 | ' |
Damages sought by plaintiffs | ' | ' | ' | ' | 'Costs incurred by the United States Environmental Protection Agency ("USEPA") responding to environmental contamination at the Site, in amounts approximating $8.6 million, plus unspecified future environmental costs | ' |
Charge resulted from tentative settlement of lawsuit | ' | ' | ' | ' | ' | 206,000 |
Open purchase commitments | $3,800,000 | $170,000 | $1,100,000 | ' | ' | ' |
Common_Stock_Repurchase_Progra1
Common Stock Repurchase Program (Detail) (Common Stock, USD $) | 12 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended |
In Millions, except Share data, unless otherwise specified | Apr. 28, 2013 | Aug. 29, 2012 | Jan. 26, 2014 | Feb. 25, 2014 |
Common Stock Repurchase Program August 2012 [Member] | Common Stock Repurchase Program August 2012 [Member] | Common Stock Repurchase Program February 2014 [Member] | ||
Subsequent Event [Member] | ||||
Stockholders Equity Note [Line Items] | ' | ' | ' | ' |
Authorization amount for repurchase of common stock | ' | $2 | ' | $5 |
Common stock repurchased | 502,595 | ' | 0 | ' |
Dividend_Program_Detail
Dividend Program (Detail) (USD $) | 9 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 0 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Jan. 26, 2014 | Jan. 27, 2013 | Jan. 26, 2014 | Oct. 27, 2013 | Jan. 26, 2014 | Jan. 27, 2013 | Apr. 28, 2013 | Nov. 25, 2013 | Jun. 12, 2013 | Jan. 27, 2013 | Feb. 25, 2014 |
Quarterly Dividend [Member] | Quarterly Dividend [Member] | Quarterly Dividend [Member] | Quarterly Dividend [Member] | Quarterly Dividend [Member] | Quarterly Dividend [Member] | Quarterly Dividend [Member] | Special Dividend [Member] | Subsequent Event [Member] | |||
Quarterly Dividend [Member] | |||||||||||
Dividends [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage increase in payment of quarterly cash dividend | ' | ' | ' | ' | ' | ' | ' | 25.00% | 33.00% | ' | ' |
Cash dividend payment, per share | ' | ' | $0.05 | $0.04 | ' | $0.03 | $0.03 | ' | ' | $0.50 | ' |
Cash dividend declared, per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.05 |
Date of payment to shareholders entitled to dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15-Apr-14 |
Date of record of shareholders entitled to dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1-Apr-14 |
Cash dividends paid | $1,592 | $7,226 | ' | ' | $1,592 | $1,100 | ' | ' | ' | $6,100 | ' |