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

Exhibit 99(b)

Page 1 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF NET INCOME
FOR THREE MONTHS ENDED FEBRUARY 1, 2015 AND JANUARY 26, 2014
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
	THREE MONTHS ENDED
	Amounts									Percent of Sales
	February 1,			January 26,			% Over			February 1,			January 26,
	2015			2014			(Under)			2015			2014
Net sales	$	81,269			72,389		12.3		%	100.0		%	100.0		%
Cost of sales		66,867			60,552		10.4		%	82.3		%	83.6		%
Gross profit		14,402			11,837		21.7		%	17.7		%	16.4		%
Selling, general and
administrative expenses		8,375			7,041		18.9		%	10.3		%	9.7		%
Income from operations		6,027			4,796		25.7		%	7.4		%	6.6		%
Interest expense		-			91		(100.0	)	%	0.0		%	0.1		%
Interest income		(202	)		(148	)	36.5		%	(0.2	)	%	(0.2	)	%
Other expense		307			279		10.0		%	0.4		%	0.4		%
Income before income taxes		5,922			4,574		29.5		%	7.3		%	6.3		%
Income taxes*		2,110			(3,807	)	N.M.			35.6		%	(83.2	)	%
Net income	$	3,812			8,381		(54.5	)	%	4.7		%	11.6		%
Net income per share-basic	$	0.31		$	0.69		(55.1	)	%
Net income per share-diluted	$	0.31		$	0.68		(54.4	)	%
Average shares outstanding-basic		12,219			12,188		0.3		%
Average shares outstanding-diluted		12,417			12,405		0.1		%
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)
	THREE MONTHS ENDED
	Amounts									Percent of Sales
	February 1,			January 26,			% Over			February 1,			January 26,
	2015				2014		(Under)			2015			2014
Income before income taxes (see above)	$	5,922			4,574		29.5		%	7.3		%	6.3		%
Adjusted Income taxes (2)*		906			709		27.8		%	15.3		%	15.5		%
Adjusted net income		5,016			3,865		29.8		%	6.2		%	5.3		%
Adjusted net income per share-basic	$	0.41		$	0.32		28.1		%
Adjusted net income per share-diluted	$	0.40		$	0.31		29.0		%
Average shares outstanding-basic		12,219			12,188		0.3		%
Average shares outstanding-diluted		12,417			12,405		0.1		%
(1) Culp, Inc. currently does not incur cash income tax expense in the US due to its $44.6 million in net operating loss carryforwards. Therefore, adjusted net income is calculated using only income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 10 of 10.
(2) Represents estimated income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 10 of 10.
* Percent of sales column for income taxes is calculated as a % of income before income taxes.

Page 2 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF NET INCOME
FOR THE NINE MONTHS ENDED FEBRUARY 1, 2015 AND JANUARY 26, 2014
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
	NINE MONTHS ENDED
	Amounts										Percent of Sales
	February 1,			January 26,			% Over				February 1,				January 26,
	2015			2014			(Under)				2015				2014
Net sales	$	231,320			213,119			8.5		%		100.0		%		100.0		%
Cost of sales		191,925			175,974			9.1		%		83.0		%		82.6		%
Gross profit		39,395			37,145			6.1		%		17.0		%		17.4		%
Selling, general and
administrative expenses		23,173			21,340			8.6		%		10.0		%		10.0		%
Income from operations		16,222			15,805			2.6		%		7.0		%		7.4		%
Interest expense		50			330			(84.8	)	%		0.0		%		0.2		%
Interest income		(478	)		(343	)		39.4		%		(0.2	)	%		(0.2	)	%
Other expense		380			895			(57.5	)	%		0.2		%		0.4		%
Income before income taxes		16,270			14,923			9.0		%		7.0		%		7.0		%
Income taxes*		6,113			216		N.M.					37.6		%		1.4		%
Net income	$	10,157			14,707			(30.9	)	%		4.4		%		6.9		%
Net income per share-basic	$	0.83		$	1.21			(31.4	)	%
Net income per share-diluted	$	0.82		$	1.19			(31.1	)	%
Average shares outstanding-basic		12,216			12,173			0.4		%
Average shares outstanding-diluted		12,410			12,405			0.0		%
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)
	NINE MONTHS ENDED
	Amounts										Percent of Sales
	February 1,			January 26,			% Over				February 1,				January 26,
	2015			2014			(Under)				2015				2014
Income before income taxes (see above)	$	16,270			14,923			9.0		%		7.0		%		7.0		%
Adjusted Income taxes (2)*		2,489			2,313			7.6		%		15.3		%		15.5		%
Adjusted net income		13,781			12,610			9.3		%		6.0		%		5.9		%
Adjusted net income per share-basic	$	1.13		$	1.04			8.7		%
Adjusted net income per share-diluted	$	1.11		$	1.02			8.8		%
Average shares outstanding-basic		12,216			12,173			0.4		%
Average shares outstanding-diluted		12,410			12,405			0.0		%
(1) Culp, Inc. currently does not incur cash income tax expense in the US due to its $44.6 million in net operating loss carryforwards. Therefore,  adjusted net income is calculated using only income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 10 of 10.
(2) Represents estimated income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 10 of 10.
* Percent of sales column for income taxes is calculated as a % of income before income taxes.

Page 3 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED BALANCE SHEETS
FEBRUARY 1, 2015, JANUARY 26, 2014, AND APRIL 27, 2014
Unaudited
(Amounts in Thousands)
	Amounts				Increase
	February 1,		January 26,		(Decrease)						* April 27,
	2015		2014		Dollars			Percent			2014
Current assets
Cash and cash equivalents	$	28,772		23,293		5,479			23.5	%		29,303
Short-term investments		8,384		7,077		1,307			18.5	%		6,294
Accounts receivable		30,774		26,392		4,382			16.6	%		27,409
Inventories		38,013		43,687		(5,674	)		(13.0	) %		40,674
Deferred income taxes		6,995		7,503		(508	)		(6.8	) %		6,230
Income taxes receivable		104		-		104			100.0	%		121
Other current assets		2,992		2,999		(7	)		(0.2	) %		2,344
Total current assets		116,034		110,951		5,083			4.6	%		112,375
Property, plant & equipment, net		35,269		30,115		5,154			17.1	%		31,376
Goodwill		11,462		11,462		-			0.0	%		11,462
Deferred income taxes		482		1,227		(745	)		(60.7	) %		2,040
Long-term Investments		2,063		-		2,063			100.0	%		765
Other assets		2,505		2,923		(418	)		(14.3	) %		2,917
Total assets	$	167,815		156,678		11,137			7.1	%		160,935
Current liabilities
Current maturities of long-term debt	$	2,200		2,200		-			0.0	%		2,200
Accounts payable - trade		28,644		25,187		3,457			13.7	%		26,686
Accounts payable - capital expenditures		772		235		537			228.5	%		277
Accrued expenses		9,954		11,812		(1,858	)		(15.7	) %		9,181
Income taxes payable - current		325		130		195			150.0	%		442
Total current liabilities		41,895		39,564		2,331			5.9	%		38,786
Income taxes payable - long-term		3,630		3,953		(323	)		(8.2	) %		3,962
Deferred income taxes		3,384		945		2,439			258.1	%		1,013
Line of credit		-		573		(573	)		(100.0	) %		586
Deferred compensation		3,934		-		3,934			100.0	%		2,644
Long-term debt , less current maturities		-		2,200		(2,200	)		(100.0	) %		2,200
Total liabilities		52,843		47,235		5,608			11.9	%		49,191
Shareholders' equity		114,972		109,443		5,529			5.1	%		111,744
Total liabilities and
shareholders' equity	$	167,815		156,678		11,137			7.1	%		160,935
Shares outstanding		12,219		12,250		(31	)		(0.3	) %		12,250
* Derived from audited financial statements.

Page 4 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE  MONTHS ENDED FEBRUARY 1, 2015 AND JANUARY 26, 2014
Unaudited
(Amounts in Thousands)
		NINE MONTHS ENDED
		Amounts
		February 1,			January 26,
		2015			2014
Cash flows from operating activities:
	Net income	$	10,157		$	14,707
	Adjustments to reconcile net income  to net cash
	provided by operating activities:
	Depreciation		4,244			3,964
	Amortization of other assets		140			123
	Stock-based compensation		482			551
	Excess tax benefit related to stock-based compensation		(110	)		(143	)
	Deferred income taxes		3,274			(2,255	)
	Gain on sale of equipment		(74	)		(108	)
	Foreign currency exchange (gains) losses		(6	)		353
	Changes in assets and liabilities, net of effects of acquisition of assets:
	Accounts receivable		(3,455	)		(2,844	)
	Inventories		2,536			(5,081	)
	Other current assets		(739	)		(882	)
	Other assets		(30	)		(53	)
	Accounts payable-trade		2,267			2,487
	Accrued expenses and deferred compensation		2,121			13
	Income taxes		(108	)		162
	Net cash provided by operating activities		20,699			10,994
Cash flows from investing activities:
	Capital expenditures		(8,185	)		(2,656	)
	Net cash paid for acquisition of assets		-			(2,640	)
	Proceeds from the sale of equipment		625			188
	Proceeds from life insurance policies		320			-
	Payments on life insurance policies		(18	)		(30	)
	Proceeds from the sale of short-term investments		1,628			-
	Purchase of short-term investments		(3,719	)		(1,916	)
	Purchase of long-term investments		(1,298	)		-
	Net cash used in investing activities		(10,647	)		(7,054	)
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		94			194
	Common stock shares repurchased		(745	)		-
	Dividends paid		(6,846	)		(1,592	)
	Debt issance costs		-			(62	)
	Excess tax benefit related to stock-based compensation		110			143
	Net cash used in financing activities		(10,125	)		(3,517	)
Effect of exchange rate changes on cash and cash equivalents			(458	)		(660	)
Decrease in cash and cash equivalents			(531	)		(237	)
Cash and cash equivalents at beginning of period			29,303			23,530
Cash and cash equivalents at end of period		$	28,772		$	23,293
Free Cash Flow (1)		$	11,795		$	7,979

(1)	Free Cash Flow reconciliation is as follows:
		FY 2015			FY 2014
A)	Net cash provided by operating activities	$	20,699		$	10,994
B)	Minus:  Capital Expenditures		(8,185	)		(2,656	)
C)	Add: Proceeds from the sale of equipment		625			188
D)	Add: Proceeds from life insurance policies		320			-
E)	Minus:  Payments on life insurance policies		(18	)		(30	)
F)	Minus:  Purchase of long-term investments		(1,298	)		-
G)	Add: Excess tax benefit related to stock-based compensation		110			143
H)	Effect of exchange rate changes on cash and cash equivalents		(458	)		(660	)
		$	11,795		$	7,979

Page 5 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
STATEMENTS OF OPERATIONS BY SEGMENT
FOR THE THREE MONTHS ENDED FEBRUARY 1, 2015 AND JANUARY 26, 2014
(Unaudited)
(Amounts in thousands)
	THREE MONTHS ENDED
	Amounts										Percent of Total Sales
	February 1,			January 26,			% Over				February 1,				January 26,
Net Sales by Segment	2015			2014			(Under)				2015				2014
Mattress Fabrics	$	45,683			38,541			18.5		%		56.2		%		53.2		%
Upholstery Fabrics		35,586			33,848			5.1		%		43.8		%		46.8		%
Net Sales	$	81,269			72,389			12.3		%		100.0		%		100.0		%
Gross Profit by Segment											Gross Profit Margin
Mattress Fabrics	$	8,076			5,599			44.2		%		17.7		%		14.5		%
Upholstery Fabrics		6,326			6,238			1.4		%		17.8		%		18.4		%
Gross Profit	$	14,402			11,837			21.7		%		17.7		%		16.4		%
Selling, General and Administrative Expenses by Segment											Percent of Sales
Mattress Fabrics	$	2,853			2,286			24.8		%		6.2		%		5.9		%
Upholstery Fabrics		3,781			3,572			5.9		%		10.6		%		10.6		%
Unallocated Corporate expenses		1,741			1,183			47.2		%		2.1		%		1.6		%
Selling, General and Administrative Expenses	$	8,375			7,041			18.9		%		10.3		%		9.7		%
Operating Income (loss) by Segment											Operating Income (Loss) Margin
Mattress Fabrics	$	5,223			3,313			57.7		%		11.4		%		8.6		%
Upholstery Fabrics		2,545			2,666			(4.5	)	%		7.2		%		7.9		%
Unallocated corporate expenses		(1,741	)		(1,183	)		47.2		%		(2.1	)	%		(1.6	)	%
Operating income	$	6,027			4,796			25.7		%		7.4		%		6.6		%
Depreciation by Segment
Mattress Fabrics	$	1,244			1,180			5.4		%
Upholstery Fabrics		188			149			26.2		%
Depreciation	$	1,432			1,329			7.8		%

Page 6 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
STATEMENTS OF OPERATIONS BY SEGMENT
FOR THE NINE MONTHS ENDED FEBRUARY 1, 2015 AND JANUARY 26, 2014
(Unaudited)
(Amounts in thousands)
	NINE MONTHS ENDED
	Amounts										Percent of Total Sales
	February 1,			January 26,			% Over				February 1,				January 26,
Net Sales by Segment	2015			2014			(Under)				2015				2014
Mattress Fabrics	$	131,543			117,035			12.4		%		56.9		%		54.9		%
Upholstery Fabrics		99,777			96,084			3.8		%		43.1		%		45.1		%
Net Sales	$	231,320			213,119			8.5		%		100.0		%		100.0		%
Gross Profit by Segment											Gross Profit Margin
Mattress Fabrics	$	22,603			20,312			11.3		%		17.2		%		17.4		%
Upholstery Fabrics		16,792			16,833			(0.2	)	%		16.8		%		17.5		%
Gross Profit	$	39,395			37,145			6.1		%		17.0		%		17.4		%
Selling, General and Administrative Expenses by Segment											Percent of Sales
Mattress Fabrics	$	8,019			7,280			10.2		%		6.1		%		6.2		%
Upholstery Fabrics		10,518			10,007			5.1		%		10.5		%		10.4		%
Unallocated Corporate expenses		4,636			4,053			14.4		%		2.0		%		1.9		%
Selling, General, and Administrative Expenses	$	23,173			21,340			8.6		%		10.0		%		10.0		%
Operating Income (loss)  by Segment											Operating Income (Loss) Margin
Mattress Fabrics	$	14,584			13,033			11.9		%		11.1		%		11.1		%
Upholstery Fabrics		6,274			6,825			(8.1	)	%		6.3		%		7.1		%
Unallocated corporate expenses		(4,636	)		(4,053	)		14.4		%		(2.0	)	%		(1.9	)	%
Operating income	$	16,222			15,805			2.6		%		7.0		%		7.4		%
Return on Capital (1)
Mattress Fabrics		30.7	%		29.4	%
Upholstery Fabrics		48.2	%		44.7	%
Unallocated Corporate		N/A			N/A
Consolidated		27.9	%		27.3	%
Capital Employed (2)
Mattress Fabrics		65,178			59,699			9.2		%
Upholstery Fabrics		16,834			23,558			(28.5	)	%
Unallocated Corporate		(4,301	)		(2,913	)		N/A
Consolidated		77,711			80,344			(3.3	)	%
Depreciation by Segment
Mattress Fabrics	$	3,692			3,510			5.2		%
Upholstery Fabrics		552			454			21.6		%
Depreciation	$	4,244			3,964			7.1		%
Notes:
(1) See pages 8 and 9 of this financial information release for calculations.
(2) The capital employed balances are as of February 1, 2015 and January 26, 2014.

Page 7 of 10

CULP, INC.  FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA
FOR THE TWELVE MONTHS ENDED FEBRUARY 1, 2015 AND JANUARY 26, 2014
(UNAUDITED)
(AMOUNTS IN THOUSANDS)
	Quarter Ended
													Trailing 12
													Months
	4/27/2014			8/3/2014			11/2/2014			2/1/2015			2/1/2015
Net income	$	2,740		$	3,344		$	3,001		$	3,812		$	12,897
Income taxes		1,380			2,115			1,889			2,110			7,494
Interest income, net		(43	)		(74	)		(153	)		(202	)		(472	)
Depreciation and amortization expense		1,394			1,446			1,460			1,478			5,778
Stock based compensation		159			46			245			191			641
Adjusted EBITDA	$	5,630		$	6,877		$	6,442		$	7,389		$	26,338
	Quarter Ended
													Trailing 12
													Months
	4/28/2013			7/28/2013			10/27/2013			1/26/2014			1/26/2014
Net income	$	3,702		$	3,230		$	3,096		$	8,381		$	18,409
Income taxes		2,161			2,305			1,718			(3,807	)		2,377
Interest expense (income), net		50			48			(3	)		(57	)		38
Depreciation and amortization expense		1,354			1,344			1,373			1,370			5,441
Stock based compensation		254			152			224			175			805
Adjusted EBITDA	$	7,521		$	7,079		$	6,408		$	6,062		$	27,070
% Over (Under)		-25.1	%		-2.9	%		0.5	%		21.9	%		-2.7	%

Page 8 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE

RETURN ON CAPITAL EMPLOYED BY SEGMENT

FOR THE NINE MONTHS ENDED FEBRUARY 1, 2015

(Amounts in Thousands)

(Unaudited)

	Operating Income
	Nine Months			Average			Return on
	Ended			Capital			Avg. Capital
	February 1, 2015 (1)			Employed (3)			Employed (2)
Mattress Fabrics	$	14,584		$	63,361			30.7	%
Upholstery Fabrics		6,274			17,344			48.2	%
(less: Unallocated Corporate)		(4,636	)		(3,141	)		N/A
Total	$	16,222		$	77,564			27.9	%
Average Capital Employed	As of the three Months Ended February 1, 2015												As of the three Months Ended November 2, 2014												As of the three Months Ended August 3, 2014
	Mattress			Upholstery			Unallocated						Mattress			Upholstery			Unallocated						Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total			Fabrics			Fabrics			Corporate			Total			Fabrics			Fabrics			Corporate			Total
Total assets		83,648			35,761			48,406			167,815			80,121			30,916			45,625			156,662			81,400			30,520			42,292			154,212
Total liabilities		(18,470	)		(18,927	)		(15,446	)		(52,843	)		(17,247	)		(14,847	)		(12,894	)		(44,988	)		(18,464	)		(11,468	)		(15,133	)		(45,065	)
Subtotal	$	65,178		$	16,834		$	32,960		$	114,972		$	62,874		$	16,069		$	32,731		$	111,674		$	62,936		$	19,052		$	27,159		$	109,147
Less:
Cash and cash equivalents		-			-			(28,772	)		(28,772	)		-			-			(28,953	)		(28,953	)		-			-			(24,665	)		(24,665	)
Short-term investments		-			-			(8,384	)		(8,384	)		-			-			(6,318	)		(6,318	)		-			-			(6,311	)		(6,311	)
Long-term investments		-			-			(2,063	)		(2,063	)								(1,911	)		(1,911	)								(1,749	)		(1,749	)
Income taxes receivable		-			-			(104	)		(104	)		-			-			-			-			-			-			(136	)		(136	)
Deferred income taxes - current		-			-			(6,995	)		(6,995	)		-			-			(6,191	)		(6,191	)		-			-			(6,203	)		(6,203	)
Deferred income taxes - non-current		-			-			(482	)		(482	)		-			-			(508	)		(508	)		-			-			(973	)		(973	)
Current maturities of long-term debt		-			-			2,200			2,200			-			-			2,200			2,200			-			-			2,200			2,200
Line of credit		-			-			-			-			-			-			-			-			-			-			569			569
Income taxes payable - current		-			-			325			325			-			-			268			268			-			-			387			387
Income taxes payable - long-term		-			-			3,630			3,630			-			-			3,980			3,980			-			-			4,037			4,037
Deferred income taxes - non-current		-			-			3,384			3,384			-			-			1,395			1,395			-			-			1,013			1,013
Long-term debt, less current maturities		-			-			-			-			-			-			-			-			-			-			2,200			2,200
Total Capital Employed	$	65,178		$	16,834		$	(4,301	)	$	77,711		$	62,874		$	16,069		$	(3,307	)	$	75,636		$	62,936		$	19,052		$	(2,472	)	$	79,516
	As of the three Months Ended April 27, 2014
	Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total
Total assets		79,055			34,987			46,893			160,935
Total liabilities		(16,598	)		(17,568	)		(15,025	)		(49,191	)
Subtotal	$	62,457		$	17,419		$	31,868		$	111,744
Less:
Cash and cash equivalents		-			-			(29,303	)		(29,303	)
Short-term investments		-			-			(6,294	)		(6,294	)
Long-term investments								(765	)		(765	)
Income taxes receivable		-			-			(121	)		(121	)
Deferred income taxes - current		-			-			(6,230	)		(6,230	)
Deferred income taxes - non-current		-			-			(2,040	)		(2,040	)
Current maturities of long-term debt		-			-			2,200			2,200
Line of credit								586			586
Income taxes payable - current		-			-			442			442
Income taxes payable - long-term		-			-			3,962			3,962
Deferred income taxes - non-current		-			-			1,013			1,013
Long-term debt, less current maturities		-			-			2,200			2,200
Total Capital Employed	$	62,457		$	17,419		$	(2,482	)	$	77,394
	Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total
Average Capital Employed (3)	$	63,361		$	17,344		$	(3,141	)	$	77,564

Notes:
(1)	See reconciliation per page 6 of this financial information release.
(2)	Return on average capital employed represents operating income for the nine month period ending February 1, 2015 divided by 3 quarters times 4 quartersto 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 four periods ending February 1, 2015, November 2, 2014, August 3, 2014 and April 27, 2014.

Page 9 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE

RETURN ON CAPITAL EMPLOYED BY SEGMENT

FOR THE NINE MONTHS ENDED JANUARY 26, 2014

(Amounts in Thousands)

(Unaudited)

	Operating Income
	Nine Months			Average			Return on
	Ended			Capital			Avg. Capital
	January 26, 2014 (1)			Employed (3)			Employed (2)
Mattress Fabrics	$	13,033		$	59,046			29.4	%
Upholstery Fabrics		6,825			20,345			44.7	%
(less: Unallocated Corporate)		(4,053	)		(2,291	)		N/A
Total	$	15,805		$	77,100			27.3	%
Average Capital Employed	As of the three Months Ended January 26, 2014												As of the three Months Ended October 27, 2013												As of the three Months Ended July 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		78,503			37,147			41,028			156,678			79,444			35,881			40,917			156,242			78,217			34,381			38,503			151,101
Total liabilities		(18,804	)		(13,589	)		(14,842	)		(47,235	)		(20,500	)		(15,581	)		(18,646	)		(54,727	)		(18,627	)		(14,172	)		(19,717	)		(52,516	)
Subtotal	$	59,699		$	23,558		$	26,186		$	109,443		$	58,944		$	20,300		$	22,271		$	101,515		$	59,590		$	20,209		$	18,786		$	98,585
Less:
Cash and cash equivalents		-			-			(23,293	)		(23,293	)		-			-			(24,267	)		(24,267	)		-			-			(21,423	)		(21,423	)
Short-term investments		-			-			(7,077	)		(7,077	)		-			-			(6,220	)		(6,220	)		-			-			(6,174	)		(6,174	)
Income taxes receivable		-			-			-			-			-			-			-			-			-			-			(292	)		(292	)
Deferred income taxes - current		-			-			(7,503	)		(7,503	)		-			-			(7,745	)		(7,745	)		-			-			(7,747	)		(7,747	)
Deferred income taxes - non-current		-			-			(1,227	)		(1,227	)		-			-			(661	)		(661	)		-			-			(651	)		(651	)
Current maturities of long-term debt		-			-			2,200			2,200			-			-			2,200			2,200			-			-			2,200			2,200
Line of credit		-			-			573			573			-			-			585			585			-			-			560			560
Income taxes payable - current		-			-			130			130			-			-			304			304			-			-			320			320
Income taxes payable - long-term		-			-			3,953			3,953			-			-			4,141			4,141			-			-			4,176			4,176
Deferred income taxes - non-current		-			-			945			945			-			-			5,016			5,016			-			-			4,335			4,335
Long-term debt, less current maturities		-			-			2,200			2,200			-			-			2,200			2,200			-			-			4,400			4,400
Total Capital Employed	$	59,699		$	23,558		$	(2,913	)	$	80,344		$	58,944		$	20,300		$	(2,176	)	$	77,068		$	59,590		$	20,209		$	(1,510	)	$	78,289
	As of the three Months Ended April 28, 2013
	Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total
Total assets		73,954			30,995			39,757			144,706
Total liabilities		(16,004	)		(13,682	)		(19,437	)		(49,123	)
Subtotal	$	57,950		$	17,313		$	20,320		$	95,583
Less:
Cash and cash equivalents		-			-			(23,530	)		(23,530	)
Short-term investments		-			-			(5,286	)		(5,286	)
Income taxes receivable		-			-			(318	)		(318	)
Deferred income taxes - current		-			-			(7,709	)		(7,709	)
Deferred income taxes - non-current		-			-			(753	)		(753	)
Current maturities of long-term debt		-			-			2,200			2,200
Line of credit								561			561
Income taxes payable - current		-			-			285			285
Income taxes payable - long-term		-			-			4,191			4,191
Deferred income taxes - non-current		-			-			3,075			3,075
Long-term debt, less current maturities		-			-			4,400			4,400
Total Capital Employed	$	57,950		$	17,313		$	(2,564	)	$	72,699
	Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total
Average Capital Employed (3)	$	59,046		$	20,345		$	(2,291	)	$	77,100

Notes:
(1)	See reconciliation per page 6 of this financial information release.
(2)	Return on average capital employed represents operating income for the nine month period ending January 26, 2014 divided by 3 quarters times 4 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 four periods ending January 26, 2014, October 27, 2013, July 28, 2013 and April 28, 2013.

Page 10 of 10

CULP FINANCIAL INFORMATION RELEASE

CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE, NET INCOME AND EARNINGS PER SHARE

FOR THE NINE MONTHS ENDED FEBRUARY 1, 2015 AND JANUARY 26, 2014

Unaudited

(Amounts in Thousands)

		NINE MONTHS ENDED
		Amounts
		February 1,			January 26,
		2015			2014
Consolidated Effective GAAP Income Tax Rate	(1)		37.6	%		1.4	%
Undistributed Earnings From Foreign Subsidiaries			-			34.2	%
Non-Cash U.S. Income Tax Expense			(22.1	)%		(20.0	)%
Non-Cash Foreign Income Tax Expense			(0.2	)%		(0.1	)%
Consolidated Adjusted Effective Income Tax Rate	(2)		15.3	%		15.5	%

	THREE MONTHS ENDED
	As reported					February 1, 2015		As reported						January 26, 2014
	February 1,					Proforma Net		January 26,						Proforma Net
	2015		Adjustments			of Adjustments		2014			Adjustments			of Adjustments
Income before income taxes	$	5,922	$	-		$	5,922	$	4,574					$	4,574
Income taxes (3)		2,110	$	(1,204	)		906		(3,807	)	$	4,516			709
Net income	$	3,812	$	1,204		$	5,016	$	8,381		$	(4,516	)	$	3,865
Net income per share-basic	$	0.31	$	0.10		$	0.41	$	0.69		$	(0.37	)	$	0.32
Net income per share-diluted	$	0.31	$	0.10		$	0.40	$	0.68		$	(0.36	)	$	0.31
Average shares outstanding-basic		12,219		12,219			12,219		12,188			12,188			12,188
Average shares outstanding-diluted		12,417		12,417			12,417		12,405			12,405			12,405
	NINE MONTHS ENDED
	As reported					February 1, 2015		As reported						January 26, 2014
	February 1,					Proforma Net		January 26,						Proforma Net
	2015		Adjustments			of Adjustments		2014			Adjustments			of Adjustments
Income before income taxes	$	16,270	$	-		$	16,270	$	14,923		$	-		$	14,923
Income taxes (3)		6,113	$	(3,624	)		2,489		216		$	2,097			2,313
Net income	$	10,157	$	3,624		$	13,781	$	14,707		$	(2,097	)	$	12,610
Net income per share-basic	$	0.83	$	0.30		$	1.13	$	1.21		$	(0.17	)	$	1.04
Net income per share-diluted	$	0.82	$	0.29		$	1.11	$	1.19		$	(0.17	)	$	1.02
Average shares outstanding-basic		12,216		12,216			12,216		12,173			12,173			12,173
Average shares outstanding-diluted		12,410		12,410			12,410		12,405			12,405			12,405

(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.