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 MAY 3, 2015 AND APRIL 27, 2014
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
	THREE MONTHS ENDED
	Amounts									Percent of Sales
	May 3,			April 27,			% Over			May 3,			April 27,
	2015			2014			(Under)			2015			2014
Net sales	$	78,846			74,043			6.5	%		100.0	%		100.0	%
Cost of sales		62,674			62,282			0.6	%		79.5	%		84.1	%
Gross profit		16,172			11,761			37.5	%		20.5	%		15.9	%
Selling, general and
administrative expenses		9,605			7,317			31.3	%		12.2	%		9.9	%
Income from operations		6,567			4,444			47.8	%		8.3	%		6.0	%
Interest expense		15			97			(84.5	)%		0.0	%		0.1	%
Interest income		(143	)		(139	)		2.9	%		(0.2	)%		(0.2	)%
Other expense		10			366			(97.3	)%		0.0	%		0.5	%
Income before income taxes		6,685			4,120			62.3	%		8.5	%		5.6	%
Income taxes*		1,772			1,380			28.4	%		26.5	%		33.5	%
Net income	$	4,913			2,740			79.3	%		6.2	%		3.7	%
Net income per share-basic	$	0.40		$	0.22			81.8	%
Net income per share-diluted	$	0.39		$	0.22			77.3	%
Average shares outstanding-basic		12,219			12,188			0.3	%
Average shares outstanding-diluted		12,440			12,413			0.2	%

PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)
	THREE MONTHS ENDED
	Amounts							Percent of Sales
	May 3,		April 27,		% Over			May 3,			April 27,
	2015		2014		(Under)			2015			2014
Income before income taxes (see above)	$	6,685		4,120		62.3	%		8.5	%		5.6	%
Adjusted Income taxes (2)*		1,050		725		44.8	%		15.7	%		17.6	%
Adjusted net income		5,635		3,395		66.0	%		7.1	%		4.6	%
Adjusted net income per share-basic	$	0.46	$	0.28		64.3	%
Adjusted net income per share-diluted	$	0.45	$	0.27		66.7	%
Average shares outstanding-basic		12,219		12,188		0.3	%
Average shares outstanding-diluted		12,440		12,413		0.2	%
(1) Culp, Inc. currently does not incur cash income tax expense in the US due to its $32.2 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 TWELVE MONTHS ENDED MAY 3, 2015 AND APRIL 27, 2014
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
	TWELVE MONTHS ENDED
	Amounts									Percent of Sales
	May 3,			April 27,			% Over			May 3,			April 27,
	2015			2014			(Under)			2015			2014
Net sales	$	310,166			287,162			8.0	%		100.0	%		100.0	%
Cost of sales		254,599			238,256			6.9	%		82.1	%		83.0	%
Gross profit		55,567			48,906			13.6	%		17.9	%		17.0	%
Selling, general and
administrative expenses		32,778			28,657			14.4	%		10.6	%		10.0	%
Income from operations		22,789			20,249			12.5	%		7.3	%		7.1	%
Interest expense		64			427			(85.0	)%		0.0	%		0.1	%
Interest income		(622	)		(482	)		29.0	%		(0.2	)%		(0.2	)%
Other expense		391			1,261			(69.0	)%		0.1	%		0.4	%
Income before income taxes		22,956			19,043			20.5	%		7.4	%		6.6	%
Income taxes*		7,885			1,596			394.0	%		34.3	%		8.4	%
Net income	$	15,071			17,447			(13.6	)%		4.9	%		6.1	%
Net income per share-basic	$	1.23		$	1.43			(14.0	)%
Net income per share-diluted	$	1.21		$	1.41			(14.2	)%
Average shares outstanding-basic		12,217			12,177			0.3	%
Average shares outstanding-diluted		12,422			12,414			0.1	%

PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)
	TWELVE MONTHS ENDED
	Amounts							Percent of Sales
	May 3,		April 27,		% Over			May 3,			April 27,
	2015		2014		(Under)			2015			2014
Income before income taxes (see above)	$	22,956		19,043		20.5	%		7.4	%		6.6	%
Adjusted Income taxes (2)*		3,604		3,352		7.5	%		15.7	%		17.6	%
Adjusted net income		19,352		15,691		23.3	%		6.2	%		5.5	%
Adjusted net income per share-basic	$	1.58	$	1.29		22.5	%
Adjusted net income per share-diluted	$	1.56	$	1.26		23.8	%
Average shares outstanding-basic		12,217		12,177		0.3	%
Average shares outstanding-diluted		12,422		12,414		0.1	%

(1) Culp, Inc. currently does not incur cash income tax expense in the US due to its $32.2 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
MAY 3, 2015 AND APRIL 27, 2014
Unaudited
(Amounts in Thousands)
	Amounts				Increase
	May 3,		* April 27,		(Decrease)
	2015		2014		Dollars			Percent
Current assets
Cash and cash equivalents	$	29,725	$	29,303		422			1.4	%
Short-term investments		10,004		6,294		3,710			58.9	%
Accounts receivable		28,749		27,409		1,340			4.9	%
Inventories		42,484		40,674		1,810			4.5	%
Deferred income taxes		4,790		6,230		(1,440	)		(23.1	)%
Income taxes receivable		229		121		108			89.3	%
Other current assets		2,440		2,344		96			4.1	%
Total current assets		118,421		112,375		6,046			5.4	%
Property, plant and equipment, net		36,078		31,376		4,702			15.0	%
Goodwill		11,462		11,462		-			0.0	%
Deferred income taxes		447		2,040		(1,593	)		(78.1	)%
Long-term investments		2,415		765		1,650			215.7	%
Other assets		2,545		2,917		(372	)		(12.8	)%
Total assets	$	171,368	$	160,935		10,433			6.5	%
Current liabilities
Current maturities of long-term debt	$	2,200	$	2,200		-			0.0	%
Accounts payable - trade		28,414		26,686		1,728			6.5	%
Accounts payable - capital expenditures		990		277		713			257.4	%
Accrued expenses		11,129		9,181		1,948			21.2	%
Income taxes payable - current		325		442		(117	)		(26.5	)%
Total current liabilities		43,058		38,786		4,272			11.0	%
Income taxes payable - long-term		3,792		3,962		(170	)		(4.3	)%
Deferred income taxes		1,050		1,013		37			3.7	%
Line of credit		-		586		(586	)		(100.0	)%
Deferred compensation		4,041		2,644		1,397			52.8	%
Long-term debt , less current maturities		-		2,200		(2,200	)		(100.0	%
Total liabilities		51,941		49,191		2,750			5.6	%
Shareholders' equity		119,427		111,744		7,683			6.9	%
Total liabilities and
shareholders' equity	$	171,368	$	160,935		10,433			6.5	%
Shares outstanding		12,219		12,250		(31	)		(0.3	)%
* Derived from audited financial statements

Page 4 of 10 

CULP, INC. FINANCIAL INFORMATION RELEASE

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE TWELVE  MONTHS ENDED MAY 3, 2015 AND APRIL 27, 2014

Unaudited

(Amounts in Thousands)

	TWELVE MONTHS ENDED
	Amounts
	May 3,			April 27,
	2015			2014
Cash flows from operating activities:
Net income	$	15,071		$	17,447
Adjustments to reconcile net income  to net cash
provided by operating activities:
Depreciation		5,773			5,312
Amortization of other assets		187			169
Stock-based compensation		786			710
Excess tax benefit related to stock-based compensation		(109	)		(143	)
Deferred income taxes		3,179			(1,727	)
Gain on sale of equipment		(78	)		(283	)
Foreign currency exchange (gains) losses		(84	)		626
Changes in assets and liabilities, net of effects of acquisition of assets:
Accounts receivable		(1,636	)		(3,857	)
Inventories		(1,883	)		(2,200	)
Other current assets		(151	)		(270	)
Other assets		(117	)		(72	)
Accounts payable-trade		1,964			4,131
Accrued expenses and deferred compensation		3,372			34
Income taxes		(163	)		342
Net cash provided by operating activities		26,111			20,219
Cash flows from investing activities:
Capital expenditures		(10,461	)		(5,258	)
Net cash paid for acquisition of assets		-			(2,640	)
Proceeds from the sale of equipment		727			407
Proceeds from life insurance policies		320			-
Payments on life insurance policies		(18	)		(30	)
Proceeds from the sale of short-term investments		1,628			810
Purchase of short-term investments		(5,355	)		(1,945	)
Purchase of long-term investments		(1,650	)		(765	)
Net cash used in investing activities		(14,809	)		(9,421	)
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		(7,579	)		(2,204	)
Debt issance costs		-			(83	)
Excess tax benefit related to stock-based compensation		109			143
Net cash used in financing activities		(10,859	)		(4,150	)
Effect of exchange rate changes on cash and cash equivalents		(21	)		(875	)
Increase in cash and cash equivalents		422			5,773
Cash and cash equivalents at beginning of period		29,303			23,530
Cash and cash equivalents at end of period	$	29,725		$	29,303
Free Cash Flow (1)	$	15,117		$	13,841

(1)     Free Cash Flow reconciliation is as follows:
			FY 2015			FY 2014
A	)	Net cash provided by operating activities	$	26,111		$	20,219
B	)	Minus:  Capital Expenditures		(10,461	)		(5,258	)
C	)	Add: Proceeds from the sale of equipment		727			407
D	)	Add: Proceeds from life insurance policies		320			-
E	)	Minus:  Payments on life insurance policies		(18	)		(30	)
F	)	Minus:  Purchase of long-term investments		(1,650	)		(765	)
G	)	Add: Excess tax benefit related to stock-based compensation		109			143
H	)	Effect of exchange rate changes on cash and cash equivalents		(21	)		(875	)
		Free Cash Flow	$	15,117		$	13,841

Page 5 of 10 

CULP, INC. FINANCIAL INFORMATION RELEASE
STATEMENTS OF OPERATIONS BY SEGMENT
FOR THE THREE MONTHS ENDED MAY 3, 2015 AND APRIL 27, 2014
(Unaudited)
(Amounts in thousands)
	THREE MONTHS ENDED
	Amounts									Percent of Total Sales
	May 3,			April 27,			% Over			May 3,			April 27,
Net Sales by Segment	2015			2014			(Under)			2015			2014
Mattress Fabrics	$	48,196			43,669			10.4	%		61.1	%		59.0	%
Upholstery Fabrics		30,650			30,374			0.9	%		38.9	%		41.0	%
Net Sales	$	78,846			74,043			6.5	%		100.0	%		100.0	%
Gross Profit by Segment										Gross Profit Margin
Mattress Fabrics	$	10,274			7,165			43.4	%		21.3	%		16.4	%
Upholstery Fabrics		5,898			4,596			28.3	%		19.2	%		15.1	%
Gross Profit	$	16,172			11,761			37.5	%		20.5	%		15.9	%
Selling, General and Administrative Expenses by Segment											Percent of Sales
Mattress Fabrics	$	3,187			2,683			18.8	%		6.6	%		6.1	%
Upholstery Fabrics		4,044			3,385			19.5	%		13.2	%		11.1	%
Unallocated Corporate expenses		2,374			1,249			90.1	%		3.0	%		1.7	%
Selling, General and Administrative Expenses	$	9,605			7,317			31.3	%		12.2	%		9.9	%
Operating Income (loss) by Segment										Operating Income (Loss) Margin
Mattress Fabrics	$	7,087			4,482			58.1	%		14.7	%		10.3	%
Upholstery Fabrics		1,854			1,211			53.1	%		6.0	%		4.0	%
Unallocated corporate expenses		(2,374	)		(1,249	)		90.1	%		(3.0	)%		(1.7	)%
Operating income	$	6,567			4,444			47.8	%		8.3	%		6.0	%
Depreciation by Segment
Mattress Fabrics	$	1,341			1,184			13.3	%
Upholstery Fabrics		187			164			14.0	%
Depreciation	$	1,528			1,348			13.4	%

Page 6 of 10

 

CULP, INC. FINANCIAL INFORMATION RELEASE
STATEMENTS OF OPERATIONS BY SEGMENT
FOR THE TWELVE MONTHS ENDED MAY 3, 2015 AND APRIL 27, 2014
(Unaudited)
(Amounts in thousands)
	TWELVE MONTHS ENDED
	Amounts									Percent of Total Sales
	May 3,			April 27,			% Over			May 3,			April 27,
Net Sales by Segment	2015			2014			(Under)			2015			2014
Mattress Fabrics	$	179,739			160,705			11.8	%		57.9	%		56.0	%
Upholstery Fabrics		130,427			126,457			3.1	%		42.1	%		44.0	%
Net Sales	$	310,166			287,162			8.0	%		100.0	%		100.0	%
Gross Profit by Segment										Gross Profit Margin
Mattress Fabrics	$	32,877			27,477			19.7	%		18.3	%		17.1	%
Upholstery Fabrics		22,690			21,429			5.9	%		17.4	%		16.9	%
Gross Profit	$	55,567			48,906			13.6	%		17.9	%		17.0	%
Selling, General and Administrative Expenses by Segment											Percent of Sales
Mattress Fabrics	$	11,206			9,962			12.5	%		6.2	%		6.2	%
Upholstery Fabrics		14,562			13,393			8.7	%		11.2	%		10.6	%
Unallocated Corporate expenses		7,010			5,302			32.2	%		2.3	%		1.8	%
Selling, General, and Administrative Expenses	$	32,778			28,657			14.4	%		10.6	%		10.0	%
Operating Income (loss)  by Segment										Operating Income (Loss) Margin
Mattress Fabrics	$	21,671			17,515			23.7	%		12.1	%		10.9	%
Upholstery Fabrics		8,128			8,036			1.1	%		6.2	%		6.4	%
Unallocated corporate expenses		(7,010	)		(5,302	)		32.2	%		(2.3	)%		(1.8	)%
Operating income	$	22,789			20,249			12.5	%		7.3	%		7.1	%
Return on Capital (1)
Mattress Fabrics		33.5	%		29.3	%
Upholstery Fabrics		48.7	%		40.7	%
Unallocated Corporate		N/A			N/A
Consolidated		29.3	%		26.2	%
Capital Employed (2)
Mattress Fabrics		70,472			62,457			12.8	%
Upholstery Fabrics		14,026			17,419			(19.5	)%
Unallocated Corporate		(5,314	)		(2,482	)		N/A
Consolidated		79,184			77,394			2.3	%
Depreciation by Segment
Mattress Fabrics	$	5,034			4,694			7.2	%
Upholstery Fabrics		739			618			19.6	%
Depreciation	$	5,773			5,312			8.7	%
Notes:
(1) See pages 8 and 9 of this financial information release for calculations.
(2) The capital employed balances are as of May 3, 2015 and April 27, 2014.

Page 7 of 10

	CULP, INC.  FINANCIAL INFORMATION RELEASE
	CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA
	FOR THE TWELVE MONTHS ENDED MAY 3, 2015 AND APRIL 27, 2014
	(UNAUDITED)
	(AMOUNTS IN THOUSANDS)
	Quarter Ended
													Trailing 12
													Months
	8/3/2014			11/2/2014			2/1/2015			5/3/2015			5/3/2015
Net income	$	3,345		$	3,001		$	3,812		$	4,913		$	15,071
Income taxes		2,114			1,889			2,110			1,772			7,885
Interest income, net		(75	)		(153	)		(202	)		(128	)		(558	)
Depreciation and amortization expense		1,446			1,460			1,478			1,576			5,960
Stock based compensation		46			245			191			304			786
Adjusted EBITDA	$	6,876		$	6,442		$	7,389		$	8,437		$	29,144
	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		47			(3	)		(57	)		(42	)		(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	$	7,078		$	6,408		$	6,062		$	5,631		$	25,179
% Over (Under)		-2.9	%		0.5	%		21.9	%		49.8	%		15.7	%

Page 8 of 10

	CULP, INC. FINANCIAL INFORMATION RELEASE
	RETURN ON CAPITAL EMPLOYED BY SEGMENT
	FOR THE TWELVE MONTHS ENDED MAY 3, 2015
	(Amounts in Thousands)
	(Unaudited)
	Operating Income
	Twelve Months			Average			Return on
	Ended			Capital			Avg. Capital
	May 3, 2015 (1)			Employed (3)			Employed (2)
Mattress Fabrics	$	21,671		$	64,783			33.5	%
Upholstery Fabrics		8,128			16,680			48.7	%
(less: Unallocated Corporate)		(7,010	)		(3,575	)		N/A
Total	$	22,789		$	77,888			29.3	%

Average Capital Employed	As of the three Months Ended May 3, 2015												As of the three Months Ended February 1, 2015												As of the three Months Ended November 2, 2014
	Mattress			Upholstery			Unallocated						Mattress			Upholstery			Unallocated						Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total			Fabrics			Fabrics			Corporate			Total			Fabrics			Fabrics			Corporate			Total
Total assets		89,066			32,838			49,464			171,368			83,648			35,761			48,406			167,815			80,121			30,916			45,625			156,662
Total liabilities		(18,594	)		(18,812	)		(14,535	)		(51,941	)		(18,470	)		(18,927	)		(15,446	)		(52,843	)		(17,247	)		(14,847	)		(12,894	)		(44,988	)
Subtotal	$	70,472		$	14,026		$	34,929		$	119,427		$	65,178		$	16,834		$	32,960		$	114,972		$	62,874		$	16,069		$	32,731		$	111,674
Less:
Cash and cash equivalents		-			-			(29,725	)		(29,725	)		-			-			(28,772	)		(28,772	)		-			-			(28,953	)		(28,953	)
Short-term investments		-			-			(10,004	)		(10,004	)		-			-			(8,384	)		(8,384	)		-			-			(6,318	)		(6,318	)
Long-term investments		-			-			(2,415	)		(2,415	)		-			-			(2,063	)		(2,063	)		-			-			(1,911	)		(1,911	)
Income taxes receivable		-			-			(229	)		(229	)		-			-			(104	)		(104	)		-			-			-			-
Deferred income taxes - current		-			-			(4,790	)		(4,790	)		-			-			(6,995	)		(6,995	)		-			-			(6,191	)		(6,191	)
Deferred income taxes - non-current		-			-			(447	)		(447	)		-			-			(482	)		(482	)		-			-			(508	)		(508	)
Current maturities of long-term debt		-			-			2,200			2,200			-			-			2,200			2,200			-			-			2,200			2,200
Line of credit		-			-			-			-			-			-			-			-			-			-			-			-
Income taxes payable - current		-			-			325			325			-			-			325			325			-			-			268			268
Income taxes payable - long-term		-			-			3,792			3,792			-			-			3,630			3,630			-			-			3,980			3,980
Deferred income taxes - non-current		-			-			1,050			1,050			-			-			3,384			3,384			-			-			1,395			1,395
Long-term debt, less current maturities		-			-			-			-			-			-			-			-			-			-			-			-
Total Capital Employed	$	70,472		$	14,026		$	(5,314	)	$	79,184		$	65,178		$	16,834		$	(4,301	)	$	77,711		$	62,874		$	16,069		$	(3,307	)	$	75,636

	As of the three Months Ended August 3, 2014												As of the three Months Ended April 27, 2014
	Mattress			Upholstery			Unallocated						Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total			Fabrics			Fabrics			Corporate			Total
Total assets		81,400			30,520			42,292			154,212			79,055			34,987			46,893			160,935
Total liabilities		(18,464	)		(11,468	)		(15,133	)		(45,065	)		(16,598	)		(17,568	)		(15,025	)		(49,191	)
Subtotal	$	62,936		$	19,052		$	27,159		$	109,147		$	62,457		$	17,419		$	31,868		$	111,744
Less:
Cash and cash equivalents		-			-			(24,665	)		(24,665	)		-			-			(29,303	)		(29,303	)
Short-term investments		-			-			(6,311	)		(6,311	)		-			-			(6,294	)		(6,294	)
Long-term investments		-			-			(1,749	)		(1,749	)		-			-			(765	)		(765	)
Income taxes receivable		-			-			(136	)		(136	)		-			-			(121	)		(121	)
Deferred income taxes - current		-			-			(6,203	)		(6,203	)		-			-			(6,230	)		(6,230	)
Deferred income taxes - non-current		-			-			(973	)		(973	)		-			-			(2,040	)		(2,040	)
Current maturities of long-term debt		-			-			2,200			2,200			-			-			2,200			2,200
Line of credit		-			-			569			569									586			586
Income taxes payable - current		-			-			387			387			-			-			442			442
Income taxes payable - long-term		-			-			4,037			4,037			-			-			3,962			3,962
Deferred income taxes - non-current		-			-			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	$	62,936		$	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)	$	64,783		$	16,680		$	(3,575	)	$	77,888
Notes:
(1) See reconciliation per page 6 of this financial information release.
(2) Return on average capital employed represents operating income for fiscal 2015 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 May 3, 2015, 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 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.

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 MAY 3, 2015 AND APRIL 27, 2014

Unaudited

(Amounts in Thousands)

			TWELVE MONTHS ENDED
			Amounts
			May 3,			April 27,
			2015			2014
Consolidated Effective GAAP Income Tax Rate	(1	)		34.3	%		8.4	%
Undistributed Earnings From Foreign Subsidiaries				(3.0	)%		26.3	%
Non-Cash U.S. Income Tax Expense				(15.2	)%		(17.1	)%
Non-Cash Foreign Income Tax Expense				(0.4	)%		-
Consolidated Adjusted Effective Income Tax Rate	(2	)		15.7	%		17.6	%

	THREE MONTHS ENDED
	As reported					May 3, 2015		As reported					April 27, 2014
	May 3,					Proforma Net		April 27,					Proforma Net
	2015		Adjustments			of Adjustments		2014		Adjustments			of Adjustments
Income before income taxes	$	6,685	$	-		$	6,685	$	4,120				$	4,120
Income taxes (3)		1,772	$	(722	)		1,050		1,380	$	(655	)		725
Net income	$	4,913	$	722		$	5,635	$	2,740	$	655		$	3,395
Net income per share-basic	$	0.40	$	0.06		$	0.46	$	0.22	$	0.05		$	0.28
Net income per share-diluted	$	0.39	$	0.06		$	0.45	$	0.22	$	0.05		$	0.27
Average shares outstanding-basic		12,219		12,219			12,219		12,188		12,188			12,188
Average shares outstanding-diluted		12,440		12,440			12,440		12,413		12,413			12,413
	TWELVE MONTHS ENDED
		As reported				May 3, 2015			As reported				April 27, 2014
		May 3,				Proforma Net			April 27,				Proforma Net
		2015	Adjustments			of Adjustments			2014	Adjustments			of Adjustments
Income before income taxes	$	22,956	$	-		$	22,956	$	19,043	$	-		$	19,043
Income taxes (3)		7,885	$	(4,281	)		3,604		1,596	$	1,756			3,352
Net income	$	15,071	$	4,281		$	19,352	$	17,447	$	(1,756	)	$	15,691
Net income per share-basic	$	1.23	$	0.35		$	1.58	$	1.43	$	(0.14	)	$	1.29
Net income per share-diluted	$	1.21	$	0.34		$	1.56	$	1.41	$	(0.14	)	$	1.26
Average shares outstanding-basic		12,217		12,217			12,217		12,177		12,177			12,177
Average shares outstanding-diluted		12,422		12,422			12,422		12,414		12,414			12,414
(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.