Exhibit 99(b)
Page 1 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE |
CONSOLIDATED STATEMENTS OF NET INCOME |
FOR THE THREE MONTHS ENDED APRIL 27, 2014 AND APRIL 28, 2013 |
(UNAUDITED) |
(Amounts in Thousands, Except for Per Share Data) |
THREE MONTHS ENDED | ||||||||||||||||||||
Amounts | Percent of Sales | |||||||||||||||||||
April 27, | April 28, | % Over | April 27, | April 28, | ||||||||||||||||
2014 | 2013 | (Under) | 2014 | 2013 | ||||||||||||||||
Net sales | $ | 74,043 | 70,375 | 5.2 | % | 100.0 | % | 100.0 | % | |||||||||||
Cost of sales | 62,282 | 57,527 | 8.3 | % | 84.1 | % | 81.7 | % | ||||||||||||
Gross profit | 11,761 | 12,848 | (8.5 | ) | % | 15.9 | % | 18.3 | % | |||||||||||
Selling, general and | ||||||||||||||||||||
administrative expenses | 7,317 | 6,772 | 8.0 | % | 9.9 | % | 9.6 | % | ||||||||||||
Income from operations | 4,444 | 6,076 | (26.9 | ) | % | 6.0 | % | 8.6 | % | |||||||||||
Interest expense | 97 | 140 | (30.7 | ) | % | 0.1 | % | 0.2 | % | |||||||||||
Interest income | (139 | ) | (90 | ) | 54.4 | % | (0.2 | ) | % | (0.1 | ) | % | ||||||||
Other expense | 366 | 163 | 124.5 | % | 0.5 | % | 0.2 | % | ||||||||||||
Income before income taxes | 4,120 | 5,863 | (29.7 | ) | % | 5.6 | % | 8.3 | % | |||||||||||
Income taxes* | 1,380 | 2,161 | (36.1 | ) | % | 33.5 | % | 36.9 | % | |||||||||||
Net income | $ | 2,740 | 3,702 | (26.0 | ) | % | 3.7 | % | 5.3 | % | ||||||||||
Net income per share-basic | $ | 0.22 | $ | 0.31 | (29.0 | ) | % | |||||||||||||
Net income per share-diluted | $ | 0.22 | $ | 0.30 | (26.7 | ) | % | |||||||||||||
Average shares outstanding-basic | 12,188 | 12,102 | 0.7 | % | ||||||||||||||||
Average shares outstanding-diluted | 12,413 | 12,323 | 0.7 | % | ||||||||||||||||
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1) | ||||||||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||
Amounts | Percent of Sales | |||||||||||||||||||
April 27, | April 28, | % Over | April 27, | April 28, | ||||||||||||||||
2014 | 2013 | (Under) | 2014 | 2013 | ||||||||||||||||
Income before income taxes (see above) | $ | 4,120 | 5,863 | (29.7 | ) | % | 5.6 | % | 8.3 | % | ||||||||||
Adjusted Income taxes (2)* | 725 | 833 | (13.0 | ) | % | 17.6 | % | 14.2 | % | |||||||||||
Adjusted net income | 3,395 | 5,030 | (32.5 | ) | % | 4.6 | % | 7.1 | % | |||||||||||
Adjusted net income per share-basic | $ | 0.28 | $ | 0.42 | (33.3 | ) | % | |||||||||||||
Adjusted net income per share-diluted | $ | 0.27 | $ | 0.41 | (34.1 | ) | % | |||||||||||||
Average shares outstanding-basic | 12,188 | 12,102 | 0.7 | % | ||||||||||||||||
Average shares outstanding-diluted | 12,413 | 12,323 | 0.7 | % |
(1) Culp, Inc. currently does not incur cash income tax expense in the U.S. due to its $45.7 million in net operating loss carryforwards. Therefore, |
adjusted net income is calculated using only income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 10 of 10. |
(2) Represents estimated income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 10 of 10. |
* Percent of sales column for income taxes is calculated as a % of income before income taxes. |
Exhibit 99(b)
Page 2 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE |
CONSOLIDATED STATEMENTS OF NET INCOME |
FOR THE TWELVE MONTHS ENDED APRIL 27, 2014 AND APRIL 28, 2013 |
(UNAUDITED) |
(Amounts in Thousands, Except for Per Share Data) |
TWELVE MONTHS ENDED | ||||||||||||||||||||
Amounts | Percent of Sales | |||||||||||||||||||
April 27, | April 28, | % Over | April 27, | April 28, | ||||||||||||||||
2014 | 2013 | (Under) | 2014 | 2013 | ||||||||||||||||
Net sales | $ | 287,162 | 268,814 | 6.8 | % | 100.0 | % | 100.0 | % | |||||||||||
Cost of sales | 238,256 | 219,284 | 8.7 | % | 83.0 | % | 81.6 | % | ||||||||||||
Gross profit | 48,906 | 49,530 | (1.3 | ) | % | 17.0 | % | 18.4 | % | |||||||||||
Selling, general and | ||||||||||||||||||||
administrative expenses | 28,657 | 28,445 | 0.7 | % | 10.0 | % | 10.6 | % | ||||||||||||
Income from operations | 20,249 | 21,085 | (4.0 | ) | % | 7.1 | % | 7.8 | % | |||||||||||
Interest expense | 427 | 632 | (32.4 | ) | % | 0.1 | % | 0.2 | % | |||||||||||
Interest income | (482 | ) | (419 | ) | 15.0 | % | (0.2 | ) | % | (0.2 | ) | % | ||||||||
Other expense | 1,261 | 583 | 116.3 | % | 0.4 | % | 0.2 | % | ||||||||||||
Income before income taxes | 19,043 | 20,289 | (6.1 | ) | % | 6.6 | % | 7.5 | % | |||||||||||
Income taxes* | 1,596 | 1,972 | (19.1 | ) | % | 8.4 | % | 9.7 | % | |||||||||||
Net income | $ | 17,447 | 18,317 | (4.7 | ) | % | 6.1 | % | 6.8 | % | ||||||||||
Net income per share-basic | $ | 1.43 | $ | 1.50 | (4.7 | ) | % | |||||||||||||
Net income per share-diluted | $ | 1.41 | $ | 1.47 | (4.1 | ) | % | |||||||||||||
Average shares outstanding-basic | 12,177 | 12,235 | (0.5 | ) | % | |||||||||||||||
Average shares outstanding-diluted | 12,414 | 12,450 | (0.3 | ) | % | |||||||||||||||
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1) | ||||||||||||||||||||
TWELVE MONTHS ENDED | ||||||||||||||||||||
Amounts | Percent of Sales | |||||||||||||||||||
April 27, | April 28, | % Over | April 27, | April 28, | ||||||||||||||||
2014 | 2013 | (Under) | 2014 | 2013 | ||||||||||||||||
Income before income taxes (see above) | $ | 19,043 | 20,289 | (6.1 | ) | % | 6.6 | % | 7.5 | % | ||||||||||
Adjusted Income taxes (2)* | 3,352 | 2,881 | 16.3 | % | 17.6 | % | 14.2 | % | ||||||||||||
Adjusted net income | 15,691 | 17,408 | (9.9 | ) | % | 5.5 | % | 6.5 | % | |||||||||||
Adjusted net income per share-basic | $ | 1.29 | $ | 1.42 | (9.2 | ) | % | |||||||||||||
Adjusted net income per share-diluted | $ | 1.26 | $ | 1.40 | (10.0 | ) | % | |||||||||||||
Average shares outstanding-basic | 12,177 | 12,235 | (0.5 | ) | % | |||||||||||||||
Average shares outstanding-diluted | 12,414 | 12,450 | (0.3 | ) | % | |||||||||||||||
(1) Culp, Inc. currently does not incur cash income tax expense in the U.S. due to its $45.7 million in net operating loss carryforwards. Therefore, | |||||||
adjusted net income is calculated using only income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 10 of 10. | |||||||
(2) Represents estimated income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 10 of 10. | |||||||
* Percent of sales column for income taxes is calculated as a % of income before income taxes. |
Exhibit 99(b)
Page 3 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE |
CONSOLIDATED BALANCE SHEETS |
APRIL 27, 2014 AND April 28, 2013 |
Unaudited |
(Amounts in Thousands) |
Amounts | Increase | ||||||||||||||||
April 27, | * April 28, | (Decrease) | |||||||||||||||
2014 | 2013 | Dollars | Percent | ||||||||||||||
Current assets | |||||||||||||||||
Cash and cash equivalents | $ | 29,303 | $ | 23,530 | 5,773 | 24.5 | % | ||||||||||
Short-term investments | 6,294 | 5,286 | 1,008 | 19.1 | % | ||||||||||||
Accounts receivable | 27,409 | 23,392 | 4,017 | 17.2 | % | ||||||||||||
Inventories | 40,674 | 38,418 | 2,256 | 5.9 | % | ||||||||||||
Deferred income taxes | 6,230 | 7,709 | (1,479 | ) | (19.2 | ) | % | ||||||||||
Income taxes receivable | 121 | 318 | (197 | ) | (61.9 | ) | % | ||||||||||
Other current assets | 2,344 | 2,093 | 251 | 12.0 | % | ||||||||||||
Total current assets | 112,375 | 100,746 | 11,629 | 11.5 | % | ||||||||||||
Property, plant and equipment, net | 31,376 | 30,594 | 782 | 2.6 | % | ||||||||||||
Goodwill | 11,462 | 11,462 | - | 0.0 | % | ||||||||||||
Deferred income taxes | 2,040 | 753 | 1,287 | 170.9 | % | ||||||||||||
Long-term investments | 765 | - | 765 | 100.0 | % | ||||||||||||
Other assets | 2,917 | 1,151 | 1,766 | 153.4 | % | ||||||||||||
Total assets | $ | 160,935 | $ | 144,706 | 16,229 | 11.2 | % | ||||||||||
Current liabilities | |||||||||||||||||
Current maturities of long-term debt | $ | 2,200 | $ | 2,200 | - | 0.0 | % | ||||||||||
Line of credit | - | 561 | (561 | ) | (100.0 | ) | % | ||||||||||
Accounts payable - trade | 26,686 | 22,357 | 4,329 | 19.4 | % | ||||||||||||
Accounts payable - capital expenditures | 277 | 225 | 52 | 23.1 | % | ||||||||||||
Accrued expenses | 9,181 | 11,829 | (2,648 | ) | (22.4 | ) | % | ||||||||||
Income taxes payable - current | 442 | 285 | 157 | 55.1 | % | ||||||||||||
Total current liabilities | 38,786 | 37,457 | 1,329 | 3.5 | % | ||||||||||||
Income taxes payable - long-term | 3,962 | 4,191 | (229 | ) | (5.5 | ) | % | ||||||||||
Deferred income taxes | 1,013 | 3,075 | (2,062 | ) | (67.1 | ) | % | ||||||||||
Line of credit | 586 | - | 586 | 100.0 | % | ||||||||||||
Deferred compensation | 2,644 | - | 2,644 | 100.0 | % | ||||||||||||
Long-term debt, less current maturities | 2,200 | 4,400 | (2,200 | ) | (50.0 | ) | % | ||||||||||
Total liabilities | 49,191 | 49,123 | 68 | 0.1 | % | ||||||||||||
Shareholders' equity | 111,744 | 95,583 | 16,161 | 16.9 | % | ||||||||||||
Total liabilities and shareholders' equity | $ | 160,935 | $ | 144,706 | 16,229 | 11.2 | % | ||||||||||
Shares outstanding | 12,250 | 12,225 | 25 | 0.2 | % | ||||||||||||
* Derived from audited financial statements |
Exhibit 99(b)
Page 4 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
FOR THE TWELVE MONTHS ENDED APRIL 27, 2014 AND APRIL 28, 2013 |
Unaudited |
(Amounts in Thousands) |
TWELVE MONTHS ENDED | ||||||||
Amounts | ||||||||
April 27, | April 28, | |||||||
2014 | 2013 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 17,447 | $ | 18,317 | ||||
Adjustments to reconcile net income to net cash | ||||||||
provided by operating activities: | ||||||||
Depreciation | 5,312 | 5,115 | ||||||
Amortization of other assets | 169 | 235 | ||||||
Stock-based compensation | 710 | 562 | ||||||
Excess tax benefit related to stock-based compensation | (143 | ) | (76 | ) | ||||
Deferred income taxes | (1,727 | ) | (344 | ) | ||||
Gain on sale of equipment | (283 | ) | - | |||||
Foreign currency exchange losses | 626 | 222 | ||||||
Changes in assets and liabilities, net of effects of acquisition of assets: | ||||||||
Accounts receivable | (3,857 | ) | 1,667 | |||||
Inventories | (2,200 | ) | (1,979 | ) | ||||
Other current assets | (270 | ) | (49 | ) | ||||
Other assets | (72 | ) | (176 | ) | ||||
Accounts payable-trade | 4,131 | (8,384 | ) | |||||
Accrued expenses and deferred compensation | 34 | 2,531 | ||||||
Accrued restructuring | - | (40 | ) | |||||
Income taxes | 342 | (526 | ) | |||||
Net cash provided by operating activities | 20,219 | 17,075 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (5,258 | ) | (4,400 | ) | ||||
Net cash paid for acquisition of assets | (2,640 | ) | - | |||||
Proceeds from the sale of equipment | 407 | - | ||||||
Proceeds from life insurance policies | - | 716 | ||||||
Payments on life insurance policies | (30 | ) | (19 | ) | ||||
Purchase of short-term investments | (1,945 | ) | (105 | ) | ||||
Purchase of long-term investments | (765 | ) | - | |||||
Proceeds from the sale of short-term investments | 810 | 795 | ||||||
Net cash used in investing activities | (9,421 | ) | (3,013 | ) | ||||
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 | ) | (2,515 | ) | ||||
Proceeds from common stock issued | 194 | 205 | ||||||
Common stock shares repurchased | - | (5,022 | ) | |||||
Dividends paid | (2,204 | ) | (7,593 | ) | ||||
Debt issance costs | (83 | ) | - | |||||
Excess tax benefit related to stock-based compensation | 143 | 76 | ||||||
Net cash used in financing activities | (4,150 | ) | (15,174 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (875 | ) | (381 | ) | ||||
Increase (decrease) in cash and cash equivalents | 5,773 | (1,493 | ) | |||||
Cash and cash equivalents at beginning of period | 23,530 | 25,023 | ||||||
Cash and cash equivalents at end of period | $ | 29,303 | $ | 23,530 | ||||
Free Cash Flow (1) | $ | 13,841 | $ | 13,067 |
(1) | Free Cash Flow reconciliation is as follows: | |||||||||
FY 2014 | FY 2013 | |||||||||
A | ) | Net cash provided by operating activities | $ | 20,219 | $ | 17,075 | ||||
B | ) | Minus: Capital Expenditures | (5,258 | ) | (4,400 | ) | ||||
C | ) | Add: Proceeds from the sale of equipment | 407 | - | ||||||
D | ) | Add: Proceeds from life insurance policies | - | 716 | ||||||
E | ) | Minus: Payments on life insurance policies | (30 | ) | (19 | ) | ||||
F | ) | Add: Excess tax benefit related to stock-based compensation | 143 | 76 | ||||||
G | ) | Minus: Purchase of long-term investments | (765 | ) | - | |||||
H | ) | Effect of exchange rate changes on cash and cash equivalents | (875 | ) | (381 | ) | ||||
$ | 13,841 | $ | 13,067 | |||||||
Exhibit 99(b)
Page 5 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE |
STATEMENTS OF OPERATIONS BY SEGMENT |
FOR THE THREE MONTHS ENDED APRIL 27, 2014 AND APRIL 28, 2013 |
(Unaudited) |
(Amounts in thousands) |
THREE MONTHS ENDED | ||||||||||||||||||||
Amounts | Percent of Total Sales | |||||||||||||||||||
April 27, | April 28, | % Over | April 27, | April 28, | ||||||||||||||||
Net Sales by Segment | 2014 | 2013 | (Under) | 2014 | 2013 | |||||||||||||||
Mattress Fabrics | $ | 43,669 | 40,839 | 6.9 | % | 59.0 | % | 58.0 | % | |||||||||||
Upholstery Fabrics | 30,374 | 29,536 | 2.8 | % | 41.0 | % | 42.0 | % | ||||||||||||
Net Sales | $ | 74,043 | 70,375 | 5.2 | % | 100.0 | % | 100.0 | % | |||||||||||
Gross Profit by Segment | Gross Profit Margin | |||||||||||||||||||
Mattress Fabrics | $ | 7,165 | 7,837 | (8.6 | ) | % | 16.4 | % | 19.2 | % | ||||||||||
Upholstery Fabrics | 4,596 | 5,011 | (8.3 | ) | % | 15.1 | % | 17.0 | % | |||||||||||
Gross Profit | $ | 11,761 | 12,848 | (8.5 | ) | % | 15.9 | % | 18.3 | % | ||||||||||
Selling, General and Administrative Expenses by Segment | Percent of Sales | |||||||||||||||||||
Mattress Fabrics | $ | 2,683 | 2,449 | 9.6 | % | 6.1 | % | 6.0 | % | |||||||||||
Upholstery Fabrics | 3,385 | 3,173 | 6.7 | % | 11.1 | % | 10.7 | % | ||||||||||||
Unallocated Corporate expenses | 1,249 | 1,150 | 8.6 | % | 1.7 | % | 1.6 | % | ||||||||||||
Selling, General and Administrative Expenses | $ | 7,317 | 6,772 | 8.0 | % | 9.9 | % | 9.6 | % | |||||||||||
Operating Income (loss) by Segment | Operating Income (Loss) Margin | |||||||||||||||||||
Mattress Fabrics | $ | 4,482 | 5,388 | (16.8 | ) | % | 10.3 | % | 13.2 | % | ||||||||||
Upholstery Fabrics | 1,211 | 1,838 | (34.1 | ) | % | 4.0 | % | 6.2 | % | |||||||||||
Unallocated corporate expenses | (1,249 | ) | (1,150 | ) | 8.6 | % | (1.7 | ) | % | (1.6 | ) | % | ||||||||
Operating income | $ | 4,444 | 6,076 | (26.9 | ) | % | 6.0 | % | 8.6 | % | ||||||||||
Depreciation by Segment | ||||||||||||||||||||
Mattress Fabrics | $ | 1,184 | 1,143 | 3.6 | % | |||||||||||||||
Upholstery Fabrics | 164 | 154 | 6.5 | % | ||||||||||||||||
Depreciation | $ | 1,348 | 1,297 | 3.9 | % |
Exhibit 99(b)
Page 6 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE |
STATEMENTS OF OPERATIONS BY SEGMENT |
FOR THE TWELVE MONTHS ENDED APRIL 27, 2014 AND APRIL 28, 2013 |
(Unaudited) |
(Amounts in thousands) |
TWELVE MONTHS ENDED | |||||||||||||||||||||||
Amounts | Percent of Total Sales | ||||||||||||||||||||||
April 27, | April 28, | % Over | April 27, | April 28, | |||||||||||||||||||
Net Sales by Segment | 2014 | 2013 | (Under) | 2014 | 2013 | ||||||||||||||||||
Mattress Fabrics | $ | 160,705 | 154,014 | 4.3 | % | 56.0 | % | 57.3 | % | ||||||||||||||
Upholstery Fabrics | 126,457 | 114,800 | 10.2 | % | 44.0 | % | 42.7 | % | |||||||||||||||
Net Sales | $ | 287,162 | 268,814 | 6.8 | % | 100.0 | % | 100.0 | % | ||||||||||||||
Gross Profit by Segment | Gross Profit Margin | ||||||||||||||||||||||
Mattress Fabrics | $ | 27,477 | 29,546 | (7.0 | ) | % | 17.1 | % | 19.2 | % | |||||||||||||
Upholstery Fabrics | 21,429 | 19,984 | 7.2 | % | 16.9 | % | 17.4 | % | |||||||||||||||
Gross Profit | $ | 48,906 | 49,530 | (1.3 | ) | % | 17.0 | % | 18.4 | % | |||||||||||||
Selling, General and Administrative Expenses by Segment | Percent of Sales | ||||||||||||||||||||||
Mattress Fabrics | $ | 9,962 | 9,646 | 3.3 | % | 6.2 | % | 6.3 | % | ||||||||||||||
Upholstery Fabrics | 13,393 | 13,031 | 2.8 | % | 10.6 | % | 11.4 | % | |||||||||||||||
Unallocated Corporate expenses | 5,302 | 5,768 | (8.1 | ) | % | 1.8 | % | 2.1 | % | ||||||||||||||
Selling, General, and Administrative Expenses | $ | 28,657 | 28,445 | 0.7 | % | 10.0 | % | 10.6 | % | ||||||||||||||
Operating Income (loss) by Segment | Operating Income (Loss) Margin | ||||||||||||||||||||||
Mattress Fabrics | $ | 17,515 | 19,900 | (12.0 | ) | % | 10.9 | % | 12.9 | % | |||||||||||||
Upholstery Fabrics | 8,036 | 6,953 | 15.6 | % | 6.4 | % | 6.1 | % | |||||||||||||||
Unallocated corporate expenses | (5,302 | ) | (5,768 | ) | (8.1 | ) | % | (1.8 | ) | % | (2.1 | ) | % | ||||||||||
Operating income | $ | 20,249 | 21,085 | (4.0 | ) | % | 7.1 | % | 7.8 | % | |||||||||||||
Return on Capital (1) | |||||||||||||||||||||||
Mattress Fabrics | 29.3 | % | 35.6 | % | |||||||||||||||||||
Upholstery Fabrics | 40.7 | % | 40.4 | % | |||||||||||||||||||
Unallocated Corporate | N/A | N/A | |||||||||||||||||||||
Consolidated | 26.2 | % | 29.4 | % | |||||||||||||||||||
Capital Employed (2) | |||||||||||||||||||||||
Mattress Fabrics | 62,457 | 57,950 | 7.8 | % | |||||||||||||||||||
Upholstery Fabrics | 17,419 | 17,313 | 0.6 | % | |||||||||||||||||||
Unallocated Corporate | (2,482 | ) | (2,564 | ) | N/A | ||||||||||||||||||
Consolidated | 77,394 | 72,699 | 6.5 | % | |||||||||||||||||||
Depreciation by Segment | |||||||||||||||||||||||
Mattress Fabrics | $ | 4,694 | 4,487 | 4.6 | % | ||||||||||||||||||
Upholstery Fabrics | 618 | 628 | (1.6 | ) | % | ||||||||||||||||||
Depreciation | $ | 5,312 | 5,115 | 3.9 | % | ||||||||||||||||||
Notes: | |||||||||||||||||||||||
(1) See pages 8 and 9 of this financial information release for calculations. | |||||||||||||||||||||||
(2) The capital employed balances are as of April 27, 2014 and April 28, 2013. |
Exhibit 99(b)
Page 7 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE |
CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA |
FOR THE TWELVE MONTHS ENDED APRIL 27, 2014 AND APRIL 28, 2013 |
(UNAUDITED) |
(AMOUNTS IN THOUSANDS) |
Quarter Ended | ||||||||||||||||||||
Trailing 12 | ||||||||||||||||||||
Months | ||||||||||||||||||||
7/28/2013 | 10/27/2013 | 1/26/2014 | 4/27/2014 | 4/27/2014 | ||||||||||||||||
Net income | $ | 3,230 | $ | 3,096 | $ | 8,381 | $ | 2,740 | $ | 17,447 | ||||||||||
Income taxes | 2,305 | 1,718 | (3,807 | ) | 1,380 | 1,596 | ||||||||||||||
Interest expense (income), net | 48 | (3 | ) | (57 | ) | (43 | ) | (55 | ) | |||||||||||
Depreciation and amortization expense | 1,344 | 1,373 | 1,370 | 1,394 | 5,481 | |||||||||||||||
Stock based compensation | 152 | 224 | 175 | 159 | 710 | |||||||||||||||
Adjusted EBITDA | $ | 7,079 | $ | 6,408 | $ | 6,062 | $ | 5,630 | $ | 25,179 | ||||||||||
Quarter Ended | ||||||||||||||||||||
Trailing 12 | ||||||||||||||||||||
Months | ||||||||||||||||||||
7/29/2012 | 10/28/2012 | 1/27/2013 | 4/28/2013 | 4/28/2013 | ||||||||||||||||
Net income | $ | 3,524 | $ | 8,268 | $ | 2,823 | $ | 3,702 | $ | 18,317 | ||||||||||
Income taxes | 1,848 | (3,736 | ) | 1,700 | 2,160 | 1,972 | ||||||||||||||
Interest expense, net | 63 | 60 | 40 | 50 | 213 | |||||||||||||||
Depreciation and amortization expense | 1,314 | 1,344 | 1,338 | 1,354 | 5,350 | |||||||||||||||
Stock based compensation | 70 | 127 | 111 | 254 | 562 | |||||||||||||||
Adjusted EBITDA | $ | 6,819 | $ | 6,063 | $ | 6,012 | $ | 7,520 | $ | 26,414 |
Exhibit 99(b)
Page 8 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||||||
RETURN ON CAPITAL EMPLOYED BY SEGMENT | |||||||||||||
FOR THE TWELVE MONTHS ENDED APRIL 27, 2014 | |||||||||||||
(Amounts in Thousands) | |||||||||||||
(Unaudited) | |||||||||||||
Operating Income | |||||||||||||
Twelve Months | Average | Return on | |||||||||||
Ended | Capital | Avg. Capital | |||||||||||
April 27, 2014 (1) | Employed (3) | Employed (2) | |||||||||||
Mattress Fabrics | $ | 17,515 | $ | 59,728 | 29.3 | % | |||||||
Upholstery Fabrics | 8,036 | 19,760 | 40.7 | % | |||||||||
(less: Unallocated Corporate) | (5,302 | ) | (2,329 | ) | N/A | ||||||||
Total | $ | 20,249 | $ | 77,159 | 26.2 | % | |||||||
Average Capital Employed | As of the three Months Ended April 27, 2014 | As of the three Months Ended January 26, 2014 | As of the three Months Ended October 27, 2013 | |||||||||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||||||||||
Total assets | 79,055 | 34,987 | 46,893 | 160,935 | 78,503 | 37,147 | 41,028 | 156,678 | 79,444 | 35,881 | 40,917 | 156,242 | ||||||||||||||||||||||||||||||||||||
Total liabilities | (16,598 | ) | (17,568 | ) | (15,025 | ) | (49,191 | ) | (18,804 | ) | (13,589 | ) | (14,842 | ) | (47,235 | ) | (20,500 | ) | (15,581 | ) | (18,646 | ) | (54,727 | ) | ||||||||||||||||||||||||
Subtotal | $ | 62,457 | $ | 17,419 | $ | 31,868 | $ | 111,744 | $ | 59,699 | $ | 23,558 | $ | 26,186 | $ | 109,443 | $ | 58,944 | $ | 20,300 | $ | 22,271 | $ | 101,515 | ||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | (29,303 | ) | (29,303 | ) | - | - | (23,293 | ) | (23,293 | ) | - | - | (24,267 | ) | (24,267 | ) | ||||||||||||||||||||||||||||||
Short-term investments | - | - | (6,294 | ) | (6,294 | ) | - | - | (7,077 | ) | (7,077 | ) | - | - | (6,220 | ) | (6,220 | ) | ||||||||||||||||||||||||||||||
Long-term investments | - | - | (765 | ) | (765 | ) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Income taxes receivable | - | - | (121 | ) | (121 | ) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Deferred income taxes - current | - | - | (6,230 | ) | (6,230 | ) | - | - | (7,503 | ) | (7,503 | ) | - | - | (7,745 | ) | (7,745 | ) | ||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | (2,040 | ) | (2,040 | ) | - | - | (1,227 | ) | (1,227 | ) | - | - | (661 | ) | (661 | ) | ||||||||||||||||||||||||||||||
Current maturities of long-term debt | - | - | 2,200 | 2,200 | - | - | 2,200 | 2,200 | - | - | 2,200 | 2,200 | ||||||||||||||||||||||||||||||||||||
Line of credit | - | - | 586 | 586 | - | - | 573 | 573 | - | - | 585 | 585 | ||||||||||||||||||||||||||||||||||||
Income taxes payable - current | - | - | 442 | 442 | - | - | 130 | 130 | - | - | 304 | 304 | ||||||||||||||||||||||||||||||||||||
Income taxes payable - long-term | - | - | 3,962 | 3,962 | - | - | 3,953 | 3,953 | - | - | 4,141 | 4,141 | ||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | 1,013 | 1,013 | - | - | 945 | 945 | - | - | 5,016 | 5,016 | ||||||||||||||||||||||||||||||||||||
Long-term debt, less current maturities | - | - | 2,200 | 2,200 | - | - | 2,200 | 2,200 | - | - | 2,200 | 2,200 | ||||||||||||||||||||||||||||||||||||
Total Capital Employed | $ | 62,457 | $ | 17,419 | $ | (2,482 | ) | $ | 77,394 | $ | 59,699 | $ | 23,558 | $ | (2,913 | ) | $ | 80,344 | $ | 58,944 | $ | 20,300 | $ | (2,176 | ) | $ | 77,068 | |||||||||||||||||||||
As of the three Months Ended July 28, 2013 | As of the three Months Ended April 28, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | |||||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||
Total assets | 78,217 | 34,381 | 38,503 | 151,101 | 73,954 | 30,995 | 39,757 | 144,706 | ||||||||||||||||||||||||||||||||||||||||
Total liabilities | (18,627 | ) | (14,172 | ) | (19,717 | ) | (52,516 | ) | (16,004 | ) | (13,682 | ) | (19,437 | ) | (49,123 | ) | ||||||||||||||||||||||||||||||||
Subtotal | $ | 59,590 | $ | 20,209 | $ | 18,786 | $ | 98,585 | $ | 57,950 | $ | 17,313 | $ | 20,320 | $ | 95,583 | ||||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | (21,423 | ) | (21,423 | ) | - | - | (23,530 | ) | (23,530 | ) | ||||||||||||||||||||||||||||||||||||
Short-term investments | - | - | (6,174 | ) | (6,174 | ) | - | - | (5,286 | ) | (5,286 | ) | ||||||||||||||||||||||||||||||||||||
Long-term investments | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Income taxes receivable | - | - | (292 | ) | (292 | ) | - | - | (318 | ) | (318 | ) | ||||||||||||||||||||||||||||||||||||
Deferred income taxes - current | - | - | (7,747 | ) | (7,747 | ) | - | - | (7,709 | ) | (7,709 | ) | ||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | (651 | ) | (651 | ) | - | - | (753 | ) | (753 | ) | ||||||||||||||||||||||||||||||||||||
Current maturities of long-term debt | - | - | 2,200 | 2,200 | - | - | 2,200 | 2,200 | ||||||||||||||||||||||||||||||||||||||||
Line of credit | - | - | 560 | 560 | 561 | 561 | ||||||||||||||||||||||||||||||||||||||||||
Income taxes payable - current | - | - | 320 | 320 | - | - | 285 | 285 | ||||||||||||||||||||||||||||||||||||||||
Income taxes payable - long-term | - | - | 4,176 | 4,176 | - | - | 4,191 | 4,191 | ||||||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | 4,335 | 4,335 | - | - | 3,075 | 3,075 | ||||||||||||||||||||||||||||||||||||||||
Long-term debt, less current maturities | - | - | 4,400 | 4,400 | - | - | 4,400 | 4,400 | ||||||||||||||||||||||||||||||||||||||||
Total Capital Employed | $ | 59,590 | $ | 20,209 | $ | (1,510 | ) | $ | 78,289 | $ | 57,950 | $ | 17,313 | $ | (2,564 | ) | $ | 72,699 | ||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||
Average Capital Employed (3) | $ | 59,728 | $ | 19,760 | $ | (2,329 | ) | $ | 77,159 | |||||||||||||||||||||||||||||||||||||||
Notes: | ||||||||||||||||||||||||||||||||||||||||||||||||
(1) See reconciliation per page 6 of this financial information release. | ||||||||||||||||||||||||||||||||||||||||||||||||
(2) Return on average capital employed represents operating income for fiscal 2014 divided by average capital employed. | ||||||||||||||||||||||||||||||||||||||||||||||||
Average capital employed does not include cash and cash equivalents, short-term investments, long-term investments, long-term debt, | ||||||||||||||||||||||||||||||||||||||||||||||||
including current maturities, line of credit, current and noncurrent deferred tax assets and liabilities, income taxes payable and income taxes receivable. | ||||||||||||||||||||||||||||||||||||||||||||||||
(3) Average capital employed was computed using the five periods ending April 27, 2014, January 26, 2014, October 27, 2013, July 28, 2013 and April 28, 2013. |
Exhibit 99(b)
Page 9 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||||||
RETURN ON CAPITAL EMPLOYED BY SEGMENT | |||||||||||||
FOR THE TWELVE MONTHS ENDED APRIL 28, 2013 | |||||||||||||
(Amounts in Thousands) | |||||||||||||
(Unaudited) | |||||||||||||
Operating Income | |||||||||||||
Twelve Months | Average | Return on | |||||||||||
Ended | Capital | Avg. Capital | |||||||||||
April 28, 2013 (1) | Employed (3) | Employed (2) | |||||||||||
Mattress Fabrics | $ | 19,900 | $ | 55,947 | 35.6 | % | |||||||
Upholstery Fabrics | 6,953 | 17,200 | 40.4 | % | |||||||||
(less: Unallocated Corporate) | (5,768 | ) | (1,524 | ) | N/A | ||||||||
Total | $ | 21,085 | $ | 71,623 | 29.4 | % | |||||||
Average Capital Employed | As of the three Months Ended April 28, 2013 | As of the three Months Ended January 27, 2013 | As of the three Months Ended October 28, 2012 | |||||||||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||||||||||
Total assets | 73,954 | 30,995 | 39,757 | 144,706 | 74,794 | 33,773 | 35,230 | 143,797 | 74,342 | 27,240 | 40,861 | 142,443 | ||||||||||||||||||||||||||||||||||||
Total liabilities | (16,004 | ) | (13,682 | ) | (19,437 | ) | (49,123 | ) | (18,824 | ) | (15,299 | ) | (17,708 | ) | (51,831 | ) | (19,240 | ) | (10,512 | ) | (17,303 | ) | (47,055 | ) | ||||||||||||||||||||||||
Subtotal | $ | 57,950 | $ | 17,313 | $ | 20,320 | $ | 95,583 | $ | 55,970 | $ | 18,474 | $ | 17,522 | $ | 91,966 | $ | 55,102 | $ | 16,728 | $ | 23,558 | $ | 95,388 | ||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | (23,530 | ) | (23,530 | ) | - | - | (19,489 | ) | (19,489 | ) | - | - | (23,464 | ) | (23,464 | ) | ||||||||||||||||||||||||||||||
Short-term investments | - | - | (5,286 | ) | (5,286 | ) | - | - | (5,237 | ) | (5,237 | ) | - | - | (5,241 | ) | (5,241 | ) | ||||||||||||||||||||||||||||||
Deferred income taxes - current | - | - | (7,709 | ) | (7,709 | ) | - | - | (4,098 | ) | (4,098 | ) | - | - | (4,470 | ) | (4,470 | ) | ||||||||||||||||||||||||||||||
Income taxes receivable | - | - | (318 | ) | (318 | ) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | (753 | ) | (753 | ) | - | - | (4,172 | ) | (4,172 | ) | - | - | (4,738 | ) | (4,738 | ) | ||||||||||||||||||||||||||||||
Current maturities of long-term debt | - | - | 2,200 | 2,200 | - | - | 2,366 | 2,366 | - | - | 2,401 | 2,401 | ||||||||||||||||||||||||||||||||||||
Line of credit | - | - | 561 | 561 | - | - | 576 | 576 | - | - | 875 | 875 | ||||||||||||||||||||||||||||||||||||
Income taxes payable - current | - | - | 285 | 285 | - | - | 395 | 395 | - | - | 385 | 385 | ||||||||||||||||||||||||||||||||||||
Income taxes payable - long-term | - | - | 4,191 | 4,191 | - | - | 4,195 | 4,195 | - | - | 4,188 | 4,188 | ||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | 3,075 | 3,075 | - | - | 856 | 856 | - | - | 856 | 856 | ||||||||||||||||||||||||||||||||||||
Long-term debt, less current maturities | - | - | 4,400 | 4,400 | - | - | 4,400 | 4,400 | - | - | 4,416 | 4,416 | ||||||||||||||||||||||||||||||||||||
Total Capital Employed | $ | 57,950 | $ | 17,313 | $ | (2,564 | ) | $ | 72,699 | $ | 55,970 | $ | 18,474 | $ | (2,686 | ) | $ | 71,758 | $ | 55,102 | $ | 16,728 | $ | (1,234 | ) | $ | 70,596 | |||||||||||||||||||||
As of the three Months Ended July 29, 2012 | As of the three Months Ended April 29, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | |||||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||
Total assets | 78,098 | 29,973 | 35,089 | 143,160 | 71,563 | 33,641 | 39,512 | 144,716 | ||||||||||||||||||||||||||||||||||||||||
Total liabilities | (21,295 | ) | (11,006 | ) | (19,028 | ) | (51,329 | ) | (17,653 | ) | (19,123 | ) | (18,940 | ) | (55,716 | ) | ||||||||||||||||||||||||||||||||
Subtotal | $ | 56,803 | $ | 18,967 | $ | 16,061 | $ | 91,831 | $ | 53,910 | $ | 14,518 | $ | 20,572 | $ | 89,000 | ||||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | (21,889 | ) | (21,889 | ) | - | - | (25,023 | ) | (25,023 | ) | ||||||||||||||||||||||||||||||||||||
Short-term investments | - | - | (5,200 | ) | (5,200 | ) | (5,941 | ) | (5,941 | ) | ||||||||||||||||||||||||||||||||||||||
Deferred income taxes - current | - | - | (2,337 | ) | (2,337 | ) | - | - | (2,467 | ) | (2,467 | ) | ||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | (2,715 | ) | (2,715 | ) | - | - | (3,205 | ) | (3,205 | ) | ||||||||||||||||||||||||||||||||||||
Current maturities of long-term debt | - | - | 2,400 | 2,400 | - | - | 2,404 | 2,404 | ||||||||||||||||||||||||||||||||||||||||
Line of credit | - | - | 834 | 834 | - | - | 889 | 889 | ||||||||||||||||||||||||||||||||||||||||
Income taxes payable - current | - | - | 751 | 751 | - | - | 642 | 642 | ||||||||||||||||||||||||||||||||||||||||
Income taxes payable - long-term | - | - | 4,131 | 4,131 | - | - | 4,164 | 4,164 | ||||||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | 705 | 705 | - | - | 705 | 705 | ||||||||||||||||||||||||||||||||||||||||
Long-term debt, less current maturities | - | - | 6,666 | 6,666 | - | - | 6,719 | 6,719 | ||||||||||||||||||||||||||||||||||||||||
Total Capital Employed | $ | 56,803 | $ | 18,967 | $ | (593 | ) | $ | 75,177 | $ | 53,910 | $ | 14,518 | $ | (541 | ) | $ | 67,887 | ||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||
Average Capital Employed (3) | $ | 55,947 | $ | 17,200 | $ | (1,524 | ) | $ | 71,623 | |||||||||||||||||||||||||||||||||||||||
Notes: | ||||||||||||||||||||||||||||||||||||||||||||||||
(1) Operating income excludes restructuring and related charges--see reconciliation per page 6 of this financial information release. | ||||||||||||||||||||||||||||||||||||||||||||||||
(2) Return on average capital employed represents operating income for fiscal 2013 divided by average capital employed. | ||||||||||||||||||||||||||||||||||||||||||||||||
Average capital employed does not include cash and cash equivalents, short-term investments, long-term debt, including current maturities, | ||||||||||||||||||||||||||||||||||||||||||||||||
line of credit, current and noncurrent deferred tax assets and liabilities, income taxes payable, and income taxes receivable. | ||||||||||||||||||||||||||||||||||||||||||||||||
(3) Average capital employed was computed using the five periods ending April 28, 2013, January 27, 2013, October 28, 2012, July 29, 2012, and April 29, 2012. |
Exhibit 99(b)
Page 10 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE |
CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE, NET INCOME AND EARNINGS PER SHARE |
FOR THE TWELVE MONTHS ENDED APRIL 27, 2014 AND APRIL 28, 2013 |
Unaudited |
(Amounts in Thousands) |
TWELVE MONTHS ENDED | |||||||||
Amounts | |||||||||
April 27, | April 28, | ||||||||
2014 | 2013 | ||||||||
Consolidated Effective GAAP Income Tax Rate | (1) | 8.4 | % | 9.7 | % | ||||
Reduction of U.S. Valuation Allowance | - | 59.7 | % | ||||||
Undistributed earnings from foreign subsidiaries | 26.3 | % | (34.6) | % | |||||
Non-Cash U.S. Income Tax Expense | (17.1) | % | (19.3) | % | |||||
Non-Cash Foreign Income Tax Expense | - | (1.3) | % | ||||||
Consolidated Adjusted Effective Income Tax Rate | (2) | 17.6 | % | 14.2 | % | ||||
THREE MONTHS ENDED | ||||||||||||||||||||||||
As reported | April 27, 2014 | As reported | April 28, 2013 | |||||||||||||||||||||
April 27, | Proforma Net | April 28, | Proforma Net | |||||||||||||||||||||
2014 | Adjustments | of Adjustments | 2013 | Adjustments | of Adjustments | |||||||||||||||||||
Income before income taxes | $ | 4,120 | $ | - | $ | 4,120 | $ | 5,863 | $ | 5,863 | ||||||||||||||
Income taxes (3) | 1,380 | $ | (655 | ) | 725 | 2,161 | $ | (1,328 | ) | 833 | ||||||||||||||
Net income | $ | 2,740 | $ | 655 | $ | 3,395 | $ | 3,702 | $ | 1,328 | $ | 5,030 | ||||||||||||
Net income per share-basic | $ | 0.22 | $ | (0.05 | ) | $ | 0.28 | $ | 0.31 | $ | (0.11 | ) | $ | 0.42 | ||||||||||
Net income per share-diluted | $ | 0.22 | $ | (0.05 | ) | $ | 0.27 | $ | 0.30 | $ | (0.11 | ) | $ | 0.41 | ||||||||||
Average shares outstanding-basic | 12,188 | 12,188 | 12,188 | 12,102 | 12,102 | 12,102 | ||||||||||||||||||
Average shares outstanding-diluted | 12,413 | 12,413 | 12,413 | 12,323 | 12,323 | 12,323 | ||||||||||||||||||
TWELVE MONTHS ENDED | ||||||||||||||||||||||||
As reported | April 27, 2014 | As reported | April 28, 2013 | |||||||||||||||||||||
April 27, | Proforma Net | April 28, | Proforma Net | |||||||||||||||||||||
2014 | Adjustments | of Adjustments | 2013 | Adjustments | of Adjustments | |||||||||||||||||||
Income before income taxes | $ | 19,043 | $ | - | $ | 19,043 | $ | 20,289 | $ | - | $ | 20,289 | ||||||||||||
Income taxes (3) | 1,596 | $ | 1,756 | 3,352 | 1,972 | $ | 909 | 2,881 | ||||||||||||||||
Net income | $ | 17,447 | $ | (1,756 | ) | $ | 15,691 | $ | 18,317 | $ | (909 | ) | $ | 17,408 | ||||||||||
Net income per share-basic | $ | 1.43 | $ | 0.14 | $ | 1.29 | $ | 1.50 | $ | 0.07 | $ | 1.42 | ||||||||||||
Net income per share-diluted | $ | 1.41 | $ | 0.14 | $ | 1.26 | $ | 1.47 | $ | 0.07 | $ | 1.40 | ||||||||||||
Average shares outstanding-basic | 12,177 | 12,177 | 12,177 | 12,235 | 12,235 | 12,235 | ||||||||||||||||||
Average shares outstanding-diluted | 12,414 | 12,414 | 12,414 | 12,450 | 12,450 | 12,450 | ||||||||||||||||||
(1) Calculated by dividing consolidated income tax expense by | ||||||||||||||||||||||||
consolidated income before income taxes. | ||||||||||||||||||||||||
(2) Represents estimated cash income tax expense for our subsidiaries located | ||||||||||||||||||||||||
in Canada and China divided by consolidated income before income taxes. | ||||||||||||||||||||||||
(3) Proforma income taxes calculated using the Consolidated Adjusted Effective Income Tax Rate as reflected above. | ||||||||||||||||||||||||