Culp 8K Results of Operations and Financial Condition | CULP 3 Dec 14

Exhibit 99(b)

Page 1 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF NET INCOME
FOR THREE MONTHS ENDED NOVEMBER 2, 2014 AND OCTOBER 27, 2013
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)


	THREE MONTHS ENDED

	Amounts									Percent of Sales
	November 2,			October 27,			% Over			November 2,			October 27,
	2014			2013			(Under)			2014			2013

Net sales	$	73,991			70,589			4.8	%		100.0	%		100.0	%
Cost of sales		61,713			58,354			5.8	%		83.4	%		82.7	%
Gross profit		12,278			12,235			0.4	%		16.6	%		17.3	%

Selling, general and
administrative expenses		7,379			7,200			2.5	%		10.0	%		10.2	%
Income from operations		4,899			5,035			(2.7	)%		6.6	%		7.1	%

Interest expense		-			99			(100.0	)%		0.0	%		0.1	%
Interest income		(153	)		(102	)		50.0	%		(0.2	)%		(0.1	)%
Other expense		162			224			(27.7	)%		0.2	%		0.3	%
Income before income taxes		4,890			4,814			1.6	%		6.6	%		6.8	%

Income taxes*		1,889			1,718			10.0	%		38.6	%		35.7	%
Net income	$	3,001			3,096			(3.1	)%		4.1	%		4.4	%

Net income per share-basic	$	0.25		$	0.25			0.0	%
Net income per share-diluted	$	0.24		$	0.25			(4.0	)%
Average shares outstanding-basic		12,218			12,183			0.3	%
Average shares outstanding-diluted		12,401			12,389			0.1	%

PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)


		THREE MONTHS ENDED

		Amounts							Percent of Sales
		November 2,		October 27,		% Over			November 2,			October 27,
		2014		2013		(Under)			2014			2013


Income before income taxes (see above)		$	4,890		4,814		1.6	%		6.6	%		6.8	%
	��
Adjusted Income taxes (2)*			787		751		4.8	%		16.1	%		15.6	%
Adjusted net income			4,103		4,063		1.0	%		5.5	%		5.8	%

Adjusted net income per share-basic		$	0.34	$	0.33		3.0	%
Adjusted net income per share-diluted		$	0.33	$	0.33		0.0	%
Average shares outstanding-basic			12,218		12,183		0.3	%
Average shares outstanding-diluted			12,401		12,389		0.1	%

(1) Culp, Inc. currently does not incur cash income tax expense in the US 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 SIX MONTHS ENDED NOVEMBER 2, 2014 AND OCTOBER 27, 2013
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)


	SIX MONTHS ENDED

	Amounts									Percent of Sales
	November 2,			October 27,			% Over			November 2,			October 27,
	2014			2013			(Under)			2014			2013

Net sales	$	150,051			140,730			6.6	%		100.0	%		100.0	%
Cost of sales		125,058			115,422			8.3	%		83.3	%		82.0	%
Gross profit		24,993			25,308			(1.2	)%		16.7	%		18.0	%

Selling, general and
administrative expenses		14,798			14,299			3.5	%		9.9	%		10.2	%
Income from operations		10,195			11,009			(7.4	)%		6.8	%		7.8	%

Interest expense		67			239			(72.0	)%		0.0	%		0.2	%
Interest income		(294	)		(195	)		50.8	%		(0.2	)%		(0.1	)%
Other expense		73			616			(88.1	)%		0.0	%		0.4	%
Income before income taxes		10,349			10,349			0.0	%		6.9	%		7.4	%

Income taxes*		4,003			4,023			(0.5	)%		38.7	%		38.9	%
Net income	$	6,346			6,326			0.3	%		4.2	%		4.5	%

Net income per share-basic	$	0.52		$	0.52			0.0	%
Net income per share-diluted	$	0.51		$	0.51			0.0	%
Average shares outstanding-basic		12,215			12,165			0.4	%
Average shares outstanding-diluted		12,403			12,391			0.1	%

PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)


	SIX MONTHS ENDED

	Amounts							Percent of Sales
	November 2,		October 27,		% Over			November 2,			October 27,
	2014		2013		(Under)			2014			2013


Income before income taxes (see above)	$	10,349		10,349		0.0	%		6.9	%		7.4	%

Adjusted Income taxes (2)*		1,666		1,614		3.2	%		16.1	%		15.6	%
Adjusted net income		8,683		8,735		(0.6	)%		5.8	%	��	6.2	%

Adjusted net income per share-basic	$	0.71	$	0.72		(1.4	)%
Adjusted net income per share-diluted	$	0.70	$	0.70		0.0	%
Average shares outstanding-basic		12,215		12,165		0.4	%
Average shares outstanding-diluted		12,403		12,391		0.1	%

(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
NOVEMBER 2, 2014, OCTOBER 27, 2013, AND APRIL 27, 2014
(Unaudited)
(Amounts in Thousands)


	Amounts				Increase
	November 2,		October 27,		(Decrease)						* April 27,
	2014		2013		Dollars			Percent			2014

Current assets
Cash and cash equivalents	$	28,953		24,267		4,686			19.3	%		29,303
Short-term investments		6,318		6,220		98			1.6	%		6,294
Accounts receivable		25,045		24,937		108			0.4	%		27,409
Inventories		38,228		44,882		(6,654	)		(14.8	)%		40,674
Deferred income taxes		6,191		7,745		(1,554	)		(20.1	)%		6,230
Income taxes receivable		-		-		-			0.0	%		121
Other current assets		2,303		2,550		(247	)		(9.7	)%		2,344
Total current assets		107,038		110,601		(3,563	)		(3.2	)%		112,375

Property, plant & equipment, net		33,204		30,559		2,645			8.7	%		31,376
Goodwill		11,462		11,462		-			0.0	%		11,462
Deferred income taxes		508		661		(153	)		(23.1	)%		2,040
Long-term Investments		1,911		-		1,911			100.0	%		765
Other assets		2,539		2,959		(420	)		(14.2	)%		2,917

Total assets	$	156,662		156,242		420			0.3	%		160,935



Current liabilities
Current maturities of long-term debt	$	2,200		2,200		-			0.0	%		2,200
Accounts payable - trade		25,450		28,543		(3,093	)		(10.8	)%		26,686
Accounts payable - capital expenditures		178		66		112			169.7	%		277
Accrued expenses		7,723		11,672		(3,949	)		(33.8	)%		9,181
Income taxes payable - current		268		304		(36	)		(11.8	)%		442
Total current liabilities		35,819		42,785		(6,966	)		(16.3	)%		38,786

Income taxes payable - long-term		3,980		4,141		(161	)		(3.9	)%		3,962
Deferred income taxes		1,395		5,016		(3,621	)		(72.2	)%		1,013
Line of credit		-		585		(585	)		(100.0	)%		586
Deferred compensation		3,794		-		3,794			100.0	%		2,644
Long-term debt , less current maturities		-		2,200		(2,200	)		(100.0	)%		2,200

Total liabilities		44,988		54,727		(9,739	)		(17.8	)%		49,191

Shareholders' equity		111,674		101,515		10,159			10.0	%		111,744

Total liabilities and
shareholders' equity	$	156,662		156,242		420			0.3	%		160,935

Shares outstanding		12,219		12,250		(31	)		(0.3	)%		12,250



* Derived from audited financial statements.

Exhibit 99(b)

Page 4 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED NOVEMBER 2, 2014 AND OCTOBER 27, 2013
Unaudited
(Amounts in Thousands)


	SIX MONTHS ENDED

	Amounts
	November 2,			October 27,
	2014			2013

Cash flows from operating activities:
Net income	$	6,346		$	6,326
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation		2,812			2,636
Amortization of other assets		94			81
Stock-based compensation		291			376
Excess tax benefit related to stock-based compensation		(108	)		(143	)
Deferred income taxes		2,061			2,140
Gain on sale of equipment		(35	)		(74	)
Foreign currency exchange (gains) losses		(171	)		203
Changes in assets and liabilities, net of effects of acquisition of assets:
Accounts receivable		2,360			(1,419	)
Inventories		2,467			(6,331	)
Other current assets		34			(437	)
Other assets		(36	)		(47	)
Accounts payable-trade		(1,275	)		5,923
Accrued expenses and deferred compensation		(324	)		(158	)
Income taxes		22			367
Net cash provided by operating activities		14,538			9,443

Cash flows from investing activities:
Capital expenditures		(5,087	)		(1,900	)
Net cash paid for acquisition of assets		-			(2,640	)
Proceeds from the sale of equipment		391			113
Proceeds from life insurance policies		320			-
Payments on life insurance policies		-			(30	)
Proceeds from the sale of short-term investments		1,628			-
Purchase of short-term investments		(1,675	)		(1,047	)
Purchase of long-term investments		(1,146	)		-
Net cash used in investing activities		(5,569	)		(5,504	)

Cash flows from financing activities:
Payments on lines of credit		(538	)		-
Payments on long-term debt		(2,200	)		(2,200	)
Proceeds from common stock issued		89			194
Common stock shares repurchased		(745	)		-
Dividends paid		(6,113	)		(979	)
Debt issance costs		-			(62	)
Excess tax benefit related to stock-based compensation		108			143
Net cash used in financing activities		(9,399	)		(2,904	)

Effect of exchange rate changes on cash and cash equivalents		80			(298	)

(Decrease) increase in cash and cash equivalents		(350	)		737

Cash and cash equivalents at beginning of period		29,303			23,530

Cash and cash equivalents at end of period	$	28,953		$	24,267


Free Cash Flow (1)	$	9,204		$	7,471



(1) Free Cash Flow reconciliation is as follows:
	FY 2015			FY 2014
A) Net cash provided by operating activities	$	14,538		$	9,443
B) Minus: Capital Expenditures		(5,087	)		(1,900	)
C) Add: Proceeds from the sale of equipment		391			113
D) Add: Proceeds from life insurance policies		320			-
E) Minus: Payments on life insurance policies		-			(30	)
F) Minus: Purchase of long-term investments		(1,146	)		-
G) Add: Excess tax benefit related to stock-based compensation		108			143
H) Effect of exchange rate changes on cash and cash equivalents		80			(298	)
	$	9,204		$	7,471

Exhibit 99(b)

Page 5 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
STATEMENTS OF OPERATIONS BY SEGMENT
FOR THE THREE MONTHS ENDED NOVEMBER 2, 2014 AND OCTOBER 27, 2013
(Unaudited)
(Amounts in thousands)


	THREE MONTHS ENDED

	Amounts									Percent of Total Sales
	November 2			October 27,			% Over			November 2			October 27,
Net Sales by Segment	2014			2013			(Under)			2014			2013

Mattress Fabrics	$	43,038			40,331			6.7	%		58.2	%		57.1	%
Upholstery Fabrics		30,953			30,258			2.3	%		41.8	%		42.9	%

Net Sales	$	73,991			70,589			4.8	%		100.0	%		100.0	%


Gross Profit by Segment										Gross Profit Margin

Mattress Fabrics	$	7,324			7,322			0.0	%		17.0	%		18.2	%
Upholstery Fabrics		4,954			4,913			0.8	%		16.0	%		16.2	%
Gross Profit	$	12,278			12,235			0.4	%		16.6	%		17.3	%



Selling, General and Administrative Expenses by Segment										Percent of Sales

Mattress Fabrics	$	2,592			2,620			(1.1	) %		6.0	%		6.5	%
Upholstery Fabrics		3,285			3,170			3.6	%		10.6	%		10.5	%
Unallocated Corporate expenses		1,502			1,410			6.5	%		2.0	%		2.0	%
Selling, General and Administrative Expenses	$	7,379			7,200			2.5	%		10.0	%		10.2	%


Operating Income (loss) by Segment										Operating Income (Loss) Margin

Mattress Fabrics	$	4,733			4,702			0.7	%		11.0	%		11.7	%
Upholstery Fabrics		1,668			1,743			(4.3	) %		5.4	%		5.8	%
Unallocated corporate expenses		(1,502	)		(1,410	)		6.5	%		(2.0	)%		(2.0	)%
Operating income	$	4,899			5,035			(2.7	) %		6.6	%		7.1	%


Depreciation by Segment

Mattress Fabrics	$	1,230			1,181			4.1	%
Upholstery Fabrics		184			150			22.7	%
Depreciation	$	1,414			1,331			6.2	%

Exhibit 99(b)

Page 6 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
STATEMENTS OF OPERATIONS BY SEGMENT
FOR THE SIX MONTHS ENDED NOVEMBER 2, 2014 AND OCTOBER 27, 2013
(Unaudited)
(Amounts in thousands)


	SIX MONTHS ENDED

	Amounts									Percent of Total Sales
	November 2,			October 27,			% Over			November 2,			October 27,
Net Sales by Segment	2014			2013			(Under)			2014			2013

Mattress Fabrics	$	85,860			78,494			9.4	%		57.2	%		55.8	%
Upholstery Fabrics		64,191			62,236			3.1	%		42.8	%		44.2	%

Net Sales	$	150,051			140,730			6.6	%		100.0	%		100.0	%


Gross Profit by Segment										Gross Profit Margin

Mattress Fabrics	$	14,527			14,713			(1.3	)%		16.9	%		18.7	%
Upholstery Fabrics		10,466			10,595			(1.2	)%		16.3	%		17.0	%
Gross Profit	$	24,993			25,308			(1.2	)%		16.7	%		18.0	%


Selling, General and Administrative Expenses by Segment										Percent of Sales

Mattress Fabrics	$	5,166			4,994			3.4	%		6.0	%		6.4	%
Upholstery Fabrics		6,737			6,436			4.7	%		10.5	%		10.3	%
Unallocated Corporate expenses		2,895			2,869			0.9	%		1.9	%		2.0	%
Selling, General, and Administrative Expenses	$	14,798			14,299			3.5	%		9.9	%		10.2	%


Operating Income (loss) by Segment										Operating Income (Loss) Margin

Mattress Fabrics	$	9,361			9,719			(3.7	)%		10.9	%		12.4	%
Upholstery Fabrics		3,729			4,159			(10.3	)%		5.8	%		6.7	%
Unallocated corporate expenses		(2,895	)		(2,869	)		0.9	%		(1.9	)%		(2.0	)%
Operating income	$	10,195			11,009			(7.4	)%		6.8	%		7.8	%


Return on Capital (1)

Mattress Fabrics		29.8	%		33.0	%
Upholstery Fabrics		42.6	%		43.2	%
Unallocated Corporate		N/A			N/A
Consolidated		26.3	%		29.0	%

Capital Employed (2)

Mattress Fabrics		62,874			58,944			6.7	%
Upholstery Fabrics		16,069			20,300			(20.8	)%
Unallocated Corporate		(3,307	)		(2,176	)		N/A
Consolidated		75,636			77,068			(1.9	)%


Depreciation by Segment

Mattress Fabrics	$	2,448			2,331			5.0	%
Upholstery Fabrics		364			305			19.3	%
Depreciation	$	2,812			2,636			6.7	%

Notes:

(1) See pages 8 and 9 of this financial information release for calculations.

(2) The capital employed balances are as of November 2, 2014 and October 27, 2013.

Exhibit 99(b)

Page 7 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA
FOR THE TWELVE MONTHS ENDED NOVEMBER 2, 2014 AND OCTOBER 27, 2013
(UNAUDITED)
(AMOUNTS IN THOUSANDS)



	Quarter Ended
													Trailing 12
													Months
	1/26/14			4/27/2014			8/3/2014			11/2/2014			11/2/2014

Net income	$	8,381		$	2,740		$	3,344		$	3,001		$	17,466
Income taxes		(3,807	)		1,380			2,115			1,889			1,577
Interest income, net		(57	)		(43	)		(74	)		(153	)		(327	)
Depreciation and amortization expense		1,370			1,394			1,446			1,460			5,670
Stock based compensation		175			159			46			245			625
Adjusted EBITDA	$	6,062		$	5,630		$	6,877		$	6,442		$	25,011



	Quarter Ended
													Trailing 12
													Months
	1/27/13			4/28/2013			7/28/2013			10/27/2013			10/27/2013

Net income	$	2,823		$	3,702		$	3,230		$	3,096		$	12,851
Income taxes		1,700			2,161			2,305			1,718			7,884
Interest expense (income), net		40			50			48			(3	)		135
Depreciation and amortization expense		1,338			1,354			1,344			1,373			5,409
Stock based compensation		111			254			152			224			741
Adjusted EBITDA	$	6,012		$	7,521		$	7,079		$	6,408		$	27,020

Exhibit 99(b)

Page 8 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
RETURN ON CAPITAL EMPLOYED BY SEGMENT
FOR THE SIX MONTHS ENDED NOVEMBER 2, 2014
(Amounts in Thousands)
(Unaudited)


	Operating Income
	Six Months			Average			Return on
	Ended			Capital			Avg. Capital
	November 2, 2014 (1)			Employed (3)			Employed (2)

Mattress Fabrics	$	9,361		$	62,756			29.8	%
Upholstery Fabrics		3,729			17,513			42.6	%
(less: Unallocated Corporate)		(2,895	)		(2,754	)		N/A
Total	$	10,195		$	77,515			26.3	%




Average Capital Employed	As of the three Months Ended November 2, 2014												As of the three Months Ended August 3, 2014												As of the three Months Ended April 27, 2014
	Mattress			Upholstery			Unallocated						Mattress			Upholstery			Unallocated						Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total			Fabrics			Fabrics			Corporate			Total			Fabrics			Fabrics			Corporate			Total

Total assets		80,121			30,916			45,625			156,662			81,400			30,520			42,292			154,212			79,055			34,987			46,893			160,935
Total liabilities		(17,247	)		(14,847	)		(12,894	)		(44,988	)		(18,464	)		(11,468	)		(15,133	)		(45,065	)		(16,598	)		(17,568	)		(15,025	)		(49,191	)

Subtotal	$	62,874		$	16,069		$	32,731		$	111,674		$	62,936		$	19,052		$	27,159		$	109,147		$	62,457		$	17,419		$	31,868		$	111,744
Less:
Cash and cash equivalents		-			-			(28,953	)		(28,953	)		-			-			(24,665	)		(24,665	)		-			-			(29,303	)		(29,303	)
Short-term investments		-			-			(6,318	)		(6,318	)		-			-			(6,311	)		(6,311	)		-			-			(6,294	)		(6,294	)
Long-term investments		-			-			(1,911	)		(1,911	)		-			-			(1,749	)		(1,749	)		-			-			(765	)		(765	)
Income taxes receivable		-			-			-			-			-			-			(136	)		(136	)		-			-			(121	)		(121	)
Deferred income taxes - current		-			-			(6,191	)		(6,191	)		-			-			(6,203	)		(6,203	)		-			-			(6,230	)		(6,230	)
Deferred income taxes - non-current		-			-			(508	)		(508	)		-			-			(973	)		(973	)		-			-			(2,040	)		(2,040	)
Current maturities of long-term debt		-			-			2,200			2,200			-			-			2,200			2,200			-			-			2,200			2,200
Line of credit		-			-			-			-			-			-			569			569			-			-			586			586
Income taxes payable - current		-			-			268			268			-			-			387			387			-			-			442			442
Income taxes payable - long-term		-			-			3,980			3,980			-			-			4,037			4,037			-			-			3,962			3,962
Deferred income taxes - non-current		-			-			1,395			1,395			-			-			1,013			1,013			-			-			1,013			1,013
Long-term debt, less current maturities		-			-			-			-			-			-			2,200			2,200			-			-			2,200			2,200

Total Capital Employed	$	62,874		$	16,069		$	(3,307	)	$	75,636		$	62,936		$	19,052		$	(2,472	)	$	79,516		$	62,457		$	17,419		$	(2,482	)	$	77,394



	Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total

Average Capital Employed (3)	$	62,756		$	17,513		$	(2,754	)	$	77,515

Notes:
(1) See reconciliation per page 6 of this financial information release.

(2) Return on average capital employed represents operating income for the six month period ending November 2, 2014 times two quarters
to arrive at an annualized value then divided by average capital employed. Average capital employed does not include cash and cash equivalents,
short-term investments, long-term investments, long-term debt, including current maturities, line of credit, current and noncurrent deferred tax assets and liabilities,
and income taxes payable and receivable.

(3) Average capital employed was computed using the three periods ending November 2, 2014, August 3, 2014 and April 27, 2014.

Exhibit 99(b)

Page 9 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
RETURN ON CAPITAL EMPLOYED BY SEGMENT
FOR THE SIX MONTHS ENDED OCTOBER 27, 2013
(Amounts in Thousands)
(Unaudited)

	Operating Income
	Six Months			Average			Return on
	Ended			Capital			Avg. Capital
	October 27, 2013 (1)			Employed (3)			Employed (2)

Mattress Fabrics	$	9,719		$	58,828			33.0	%
Upholstery Fabrics		4,159			19,274			43.2	%
(less: Unallocated Corporate)		(2,869	)		(2,083	)		N/A
Total	$	11,009		$	76,019			29.0	%




Average Capital Employed	As of the three Months Ended October 27, 2013												As of the three Months Ended July 28, 2013												As of the three Months Ended April 28, 2013
	Mattress			Upholstery			Unallocated						Mattress			Upholstery			Unallocated						Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total			Fabrics			Fabrics			Corporate			Total			Fabrics			Fabrics			Corporate			Total

Total assets		79,444			35,881			40,917			156,242			78,217			34,381			38,503			151,101			73,954			30,995			39,757			144,706
Total liabilities		(20,500	)		(15,581	)		(18,646	)		(54,727	)		(18,627	)		(14,172	)		(19,717	)		(52,516	)		(16,004	)		(13,682	)		(19,437	)		(49,123	)

Subtotal	$	58,944		$	20,300		$	22,271		$	101,515		$	59,590		$	20,209		$	18,786		$	98,585		$	57,950		$	17,313		$	20,320		$	95,583
Less:
Cash and cash equivalents		-			-			(24,267	)		(24,267	)		-			-			(21,423	)		(21,423	)		-			-			(23,530	)		(23,530	)
Short-term investments		-			-			(6,220	)		(6,220	)		-			-			(6,174	)		(6,174	)		-			-			(5,286	)		(5,286	)
Income taxes receivable		-			-			-			-			-			-			(292	)		(292	)		-			-			(318	)		(318	)
Deferred income taxes - current		-			-			(7,745	)		(7,745	)		-			-			(7,747	)		(7,747	)		-			-			(7,709	)		(7,709	)
Deferred income taxes - non-current		-			-			(661	)		(661	)		-			-			(651	)		(651	)		-			-			(753	)		(753	)
Current maturities of long-term debt		-			-			2,200			2,200			-			-			2,200			2,200			-			-			2,200			2,200
Line of credit		-			-			585			585			-			-			560			560			-			-			561			561
Income taxes payable - current		-			-			304			304			-			-			320			320			-			-			285			285
Income taxes payable - long-term		-			-			4,141			4,141			-			-			4,176			4,176			-			-			4,191			4,191
Deferred income taxes - non-current		-			-			5,016			5,016			-			-			4,335			4,335			-			-			3,075			3,075
Long-term debt, less current maturities		-			-			2,200			2,200			-			-			4,400			4,400			-			-			4,400			4,400

Total Capital Employed	$	58,944		$	20,300		$	(2,176	)	$	77,068		$	59,590		$	20,209		$	(1,510	)	$	78,289		$	57,950		$	17,313		$	(2,564	)	$	72,699



	Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total

Average Capital Employed (3)	$	58,828		$	19,274		$	(2,083	)	$	76,019

Notes:
(1) See reconciliation per page 6 of this financial information release.

(2) Return on average capital employed represents operating income for the six month period ending October 27, 2013 times two quarters
to arrive at an annualized value then divided by average capital employed. Average capital employed does not include cash and cash equivalents,
short-term investments, long-term debt, including current maturities, line of credit, current and noncurrent deferred tax assets and liabilities, and
income taxes payable and receivable.

(3) Average capital employed was computed using the three periods ending October 27, 2013, July 28, 2013 and April 28, 2013.

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 SIX MONTHS ENDED NOVEMBER 2, 2014 AND OCTOBER 27, 2013

Unaudited

(Amounts in Thousands)




		SIX MONTHS ENDED

		Amounts
		November 2,			October 27,
		2014			2013


Consolidated Effective GAAP Income Tax Rate	(1)		38.7	%		38.9	%

Non-Cash U.S. Income Tax Expense			(21.9	)%		(23.0	)%

Non-Cash Foreign Income Tax Expense			(0.7	)%		(0.3	)%

Consolidated Adjusted Effective Income Tax Rate	(2)		16.1	%		15.6	%

	THREE MONTHS ENDED
	As reported					November 2, 2014		As reported					October 27, 2013
	November 2,					Proforma Net		October 27,					Proforma Net
	2014		Adjustments			of Adjustments		2013		Adjustments			of Adjustments

Income before income taxes	$	4,890	$	-		$	4,890	$	4,814				$	4,814

Income taxes (3)		1,889	$	(1,102	)		787		1,718	$	(967	)		751
Net income	$	3,001	$	1,102		$	4,103	$	3,096	$	967		$	4,063

Net income per share-basic	$	0.25	$	0.09		$	0.34	$	0.25	$	0.08		$	0.33
Net income per share-diluted	$	0.24	$	0.09		$	0.33	$	0.25	$	0.08		$	0.33
Average shares outstanding-basic		12,218		12,218			12,218		12,183		12,183			12,183
Average shares outstanding-diluted		12,401		12,401			12,401		12,389		12,389			12,389



	SIX MONTHS ENDED
	As reported					November 2, 2014		As reported					October 27, 2013
	November 2,					Proforma Net		October 27,					Proforma Net
	2014		Adjustments			of Adjustments		2013		Adjustments			of Adjustments

Income before income taxes	$	10,349	$	-		$	10,349	$	10,349	$	-		$	10,349

Income taxes (3)		4,003	$	(2,337	)		1,666		4,023	$	(2,409	)		1,614
Net income	$	6,346	$	2,337		$	8,683	$	6,326	$	2,409		$	8,735

Net income per share-basic	$	0.52	$	0.19		$	0.71	$	0.52	$	0.20		$	0.72
Net income per share-diluted	$	0.51	$	0.19		$	0.70	$	0.51	$	0.19		$	0.70
Average shares outstanding-basic		12,215		12,215			12,215		12,165		12,165			12,165
Average shares outstanding-diluted		12,403		12,403			12,403		12,391		12,391			12,391

(1) Calculated by dividing consolidated income tax expense (benefit) by

consolidated income before income taxes.

(2) Represents estimated cash income tax expense for our subsidiaries located

in Canada and China divided by consolidated income before income taxes.

(3) Proforma income taxes calculated using the Consolidated Adjusted Effective Income Tax Rate as reflected above.

Culp (CULP) 8-KResults of Operations and Financial Condition