Exhibit 99(b)
Page 1 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF NET INCOME | ||||||||||||||||||||
FOR THE THREE MONTHS ENDED JULY 31, 2016, AND AUGUST 2, 2015 | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
(Amounts in Thousands, Except for Per Share Data) | ||||||||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||
Amounts | Percent of Sales | |||||||||||||||||||
July 31, | August 2, | % Over | July 31, | August 2, | ||||||||||||||||
2016 | 2015 | (Under) | 2016 | 2015 | ||||||||||||||||
Net sales | $ | 80,682 | 80,185 | 0.6 | % | 100.0 | % | 100.0 | % | |||||||||||
Cost of sales | 62,263 | 63,983 | (2.7 | )% | 77.2 | % | 79.8 | % | ||||||||||||
Gross profit | 18,419 | 16,202 | 13.7 | % | 22.8 | % | 20.2 | % | ||||||||||||
Selling, general and | ||||||||||||||||||||
administrative expenses | 9,746 | 8,741 | 11.5 | % | 12.1 | % | 10.9 | % | ||||||||||||
Income from operations | 8,673 | 7,461 | 16.2 | % | 10.7 | % | 9.3 | % | ||||||||||||
Interest expense | - | 24 | (100.0 | )% | 0.0 | % | 0.0 | % | ||||||||||||
Interest income | (25 | ) | (66 | ) | (62.1 | )% | (0.0 | )% | (0.1 | )% | ||||||||||
Other expense | 152 | 95 | 60.0 | % | 0.2 | % | 0.1 | % | ||||||||||||
Income before income taxes | 8,546 | 7,408 | 15.4 | % | 10.6 | % | 9.2 | % | ||||||||||||
Income taxes* | 3,233 | 2,707 | 19.4 | % | 37.8 | % | 36.5 | % | ||||||||||||
Net income | $ | 5,313 | 4,701 | 13.0 | % | 6.6 | % | 5.9 | % | |||||||||||
Net income per share-basic | $ | 0.43 | $ | 0.38 | 13.2 | % | ||||||||||||||
Net income per share-diluted | $ | 0.43 | $ | 0.38 | 13.2 | % | ||||||||||||||
Average shares outstanding-basic | 12,286 | 12,277 | 0.1 | % | ||||||||||||||||
Average shares outstanding-diluted | 12,463 | 12,456 | 0.1 | % |
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1) | ||||||||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||
Amounts | Percent of Sales | |||||||||||||||||||
July 31, | August 2, | % Over | July 31, | August 2, | ||||||||||||||||
2016 | 2015 | (Under) | 2016 | 2015 | ||||||||||||||||
Income before income taxes (see above) | $ | 8,546 | 7,408 | 15.4 | % | 10.6 | % | 9.2 | % | |||||||||||
Adjusted Income taxes (2)* | 1,521 | 1,163 | 30.8 | % | 17.8 | % | 15.7 | % | ||||||||||||
Adjusted net income | 7,025 | 6,245 | 12.5 | % | 8.7 | % | 7.8 | % | ||||||||||||
Adjusted net income per share-basic | $ | 0.57 | $ | 0.51 | 11.8 | % | ||||||||||||||
Adjusted net income per share-diluted | $ | 0.56 | $ | 0.50 | 12.0 | % | ||||||||||||||
Average shares outstanding-basic | 12,286 | 12,277 | 0.1 | % | ||||||||||||||||
Average shares outstanding-diluted | 12,463 | 12,456 | 0.1 | % |
(1) | Culp, Inc. currently does not incur cash income tax expense in the U.S. due to its estimated $18.0 million in net operating loss carryforwards |
as of May 1, 2016. Therefore, adjusted net income is calculated using only income tax expense for our subsidiaries located in Canada and China. | |
See reconciliation on page 8 of 8. | |
(2) | Represents estimated income tax expense for our subsidiaries located in Canada and China. See reconciliation on page 8 of 8. |
* | Percent of sales column for income taxes is calculated as a % of income before income taxes. |
Page 2 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
JULY 31, 2016, AUGUST 2, 2015, AND MAY 1, 2016 | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
(Amounts in Thousands) | ||||||||||||||||||||
Amounts | Increase | |||||||||||||||||||
July 31, | August 2, | (Decrease) | * May 1, | |||||||||||||||||
2016 | 2015 | Dollars | Percent | 2016 | ||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 45,549 | 25,933 | 19,616 | 75.6 | % | 37,787 | |||||||||||||
Short-term investments | 2,434 | 6,336 | (3,902 | ) | (61.6 | )% | 4,359 | |||||||||||||
Accounts receivable | 22,690 | 25,707 | (3,017 | ) | (11.7 | )% | 23,481 | |||||||||||||
Inventories | 48,131 | 46,544 | 1,587 | 3.4 | % | 46,531 | ||||||||||||||
Income taxes receivable | - | 142 | (142 | ) | (100.0 | )% | 155 | |||||||||||||
Other current assets | 2,294 | 3,502 | (1,208 | ) | (34.5 | )% | 2,477 | |||||||||||||
Total current assets | 121,098 | 108,164 | 12,934 | 12.0 | % | 114,790 | ||||||||||||||
Property, plant & equipment, net | 41,745 | 37,480 | 4,265 | 11.4 | % | 39,973 | ||||||||||||||
Goodwill | 11,462 | 11,462 | - | 0.0 | % | 11,462 | ||||||||||||||
Deferred income taxes | 1,942 | 4,406 | (2,464 | ) | (55.9 | )% | 2,319 | |||||||||||||
Long-term Investments | 4,611 | 2,893 | 1,718 | 59.4 | % | 4,025 | ||||||||||||||
Other assets | 2,502 | 2,475 | 27 | 1.1 | % | 2,573 | ||||||||||||||
Total assets | $ | 183,360 | 166,880 | 16,480 | 9.9 | % | 175,142 | |||||||||||||
Current liabilities | ||||||||||||||||||||
Current maturities of long-term debt | $ | - | 2,200 | (2,200 | ) | (100.0 | )% | - | ||||||||||||
Accounts payable - trade | 26,708 | 28,233 | (1,525 | ) | (5.4 | )% | 23,994 | |||||||||||||
Accounts payable - capital expenditures | 627 | 613 | 14 | 2.3 | % | 224 | ||||||||||||||
Accrued expenses | 6,890 | 7,731 | (841 | ) | (10.9 | )% | 11,922 | |||||||||||||
Income taxes payable - current | 358 | 392 | (34 | ) | (8.7 | )% | 180 | |||||||||||||
Total current liabilities | 34,583 | 39,169 | (4,586 | ) | (11.7 | )% | 36,320 | |||||||||||||
Income taxes payable - long-term | 3,779 | 3,634 | 145 | 4.0 | % | 3,841 | ||||||||||||||
Deferred income taxes | 1,532 | 1,072 | 460 | 42.9 | % | 1,483 | ||||||||||||||
Line of credit | 7,000 | - | 7,000 | 100.0 | % | - | ||||||||||||||
Deferred compensation | 5,031 | 4,280 | 751 | 17.5 | % | 4,686 | ||||||||||||||
Total liabilities | 51,925 | 48,155 | 3,770 | 7.8 | % | 46,330 | ||||||||||||||
Shareholders' equity | 131,435 | 118,725 | 12,710 | 10.7 | % | 128,812 | ||||||||||||||
Total liabilities and | ||||||||||||||||||||
shareholders' equity | $ | 183,360 | 166,880 | 16,480 | 9.9 | % | 175,142 | |||||||||||||
Shares outstanding | 12,307 | 12,339 | (32 | ) | (0.3 | )% | 12,265 |
* Derived from audited financial statements.
Page 3 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
FOR THE THREE MONTHS ENDED JULY 31, 2016 AND AUGUST 2, 2015 | |||||||||
Unaudited | |||||||||
(Amounts in Thousands) | |||||||||
THREE MONTHS ENDED | |||||||||
Amounts | |||||||||
July 31, | August 2, | ||||||||
2016 | 2015 | ||||||||
Cash flows from operating activities: | |||||||||
Net income | $ | 5,313 | 4,701 | ||||||
Adjustments to reconcile net income to net cash | |||||||||
provided by operating activities: | |||||||||
Depreciation | 1,761 | 1,555 | |||||||
Amortization of other assets | 52 | 47 | |||||||
Stock-based compensation | 761 | 265 | |||||||
Deferred income taxes | 593 | 1,641 | |||||||
Realized loss on sale of short-term investments | 12 | - | |||||||
Loss (gain) on sale of equipment | 9 | (46 | ) | ||||||
Excess tax benefits related to stock-based compensation | (167 | ) | (788 | ) | |||||
Foreign currency exchange gains | (62 | ) | (57 | ) | |||||
Changes in assets and liabilities: | |||||||||
Accounts receivable | 611 | 2,774 | |||||||
Inventories | (1,808 | ) | (4,068 | ) | |||||
Other current assets | 158 | (1,149 | ) | ||||||
Other assets | 19 | 23 | |||||||
Accounts payable | 3,036 | (132 | ) | ||||||
Accrued expenses and deferrred compensation | (4,911 | ) | (3,870 | ) | |||||
Income taxes | 375 | 159 | |||||||
Net cash provided by operating activities | 5,752 | 1,055 | |||||||
Cash flows from investing activities: | |||||||||
Capital expenditures | (3,139 | ) | (3,336 | ) | |||||
Proceeds from the sale of equipment | - | 104 | |||||||
Proceeds from the sale of short-term investments | 2,000 | 3,612 | |||||||
Purchase of short-term investments | (21 | ) | (33 | ) | |||||
Purchase of long-term investments | (559 | ) | (478 | ) | |||||
Net cash used in investing activities | (1,719 | ) | (131 | ) | |||||
Cash flows from financing activities: | |||||||||
Proceeds from line of credit | 7,000 | - | |||||||
Excess tax benefits related to stock-based compensation | 167 | 788 | |||||||
Dividends paid | (3,445 | ) | (5,676 | ) | |||||
Proceeds from common stock issued | 11 | 56 | |||||||
Net cash provided by (used in) financing activities | 3,733 | (4,832 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (4 | ) | 116 | ||||||
Increase (decrease) in cash and cash equivalents | 7,762 | (3,792 | ) | ||||||
Cash and cash equivalents at beginning of period | 37,787 | 29,725 | |||||||
Cash and cash equivalents at end of period | $ | 45,549 | 25,933 | ||||||
Free Cash Flow (1) | $ | 2,217 | (1,751 | ) | |||||
(1) Free Cash Flow reconciliation is as follows: | |||||||||
FY 2017 | FY 2016 | ||||||||
A) | Net cash provided by operating activities | $ | 5,752 | 1,055 | |||||
B) | Minus: Capital Expenditures | (3,139 | ) | (3,336 | ) | ||||
C) | Add: Proceeds from the sale of equipment | - | 104 | ||||||
D) | Add: Excess tax benefits related to stock-based compensation | 167 | 788 | ||||||
E) | Minus: Purchase of long-term investments | (559 | ) | (478 | ) | ||||
F) | Effects of exchange rate changes on cash and cash equivalents | (4 | ) | 116 | |||||
$ | 2,217 | (1,751 | ) | ||||||
Page 4 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
STATEMENTS OF OPERATIONS BY SEGMENT | ||||||||||||||||||||
FOR THE THREE MONTHS ENDED JULY 31, 2016 AND AUGUST 2, 2015 | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||
Amounts | Percent of Total Sales | |||||||||||||||||||
July 31, | August 2, | % Over | July 31, | August 2, | ||||||||||||||||
Net Sales by Segment | 2016 | 2015 | (Under) | 2016 | 2015 | |||||||||||||||
Mattress Fabrics | $ | 50,530 | 47,808 | 5.7 | % | 62.6 | % | 59.6 | % | |||||||||||
Upholstery Fabrics | 30,152 | 32,377 | (6.9 | )% | 37.4 | % | 40.4 | % | ||||||||||||
Net Sales | $ | 80,682 | 80,185 | 0.6 | % | 100.0 | % | 100.0 | % | |||||||||||
Gross Profit by Segment | Gross Profit Margin | |||||||||||||||||||
Mattress Fabrics | $ | 11,901 | 9,925 | 19.9 | % | 23.6 | % | 20.8 | % | |||||||||||
Upholstery Fabrics | 6,518 | 6,277 | 3.8 | % | 21.6 | % | 19.4 | % | ||||||||||||
Gross Profit | 18,419 | 16,202 | 13.7 | % | 22.8 | % | 20.2 | % | ||||||||||||
Selling, General and Administrative expenses by Segment | Percent of Sales | |||||||||||||||||||
Mattress Fabrics | $ | 3,499 | 2,923 | 19.7 | % | 6.9 | % | 6.1 | % | |||||||||||
Upholstery Fabrics | 3,534 | 3,595 | (1.7 | )% | 11.7 | % | 11.1 | % | ||||||||||||
Unallocated Corporate expenses | 2,713 | 2,223 | 22.0 | % | 3.4 | % | 2.8 | % | ||||||||||||
Selling, General and Administrative Expenses | 9,746 | 8,741 | 11.5 | % | 12.1 | % | 10.9 | % | ||||||||||||
Operating Income (loss) by Segment | Operating Income (Loss) Margin | |||||||||||||||||||
Mattress Fabrics | $ | 8,402 | 7,003 | 20.0 | % | 16.6 | % | 14.6 | % | |||||||||||
Upholstery Fabrics | 2,984 | 2,681 | 11.3 | % | 9.9 | % | 8.3 | % | ||||||||||||
Unallocated corporate expenses | (2,713 | ) | (2,223 | ) | 22.0 | % | (3.4 | )% | (2.8 | )% | ||||||||||
Operating Income | 8,673 | 7,461 | 16.2 | % | 10.7 | % | 9.3 | % | ||||||||||||
Return on Capital (1) | ||||||||||||||||||||
Mattress Fabrics | 44.4 | % | 39.5 | % | ||||||||||||||||
Upholstery Fabrics | 69.7 | % | 65.0 | % | ||||||||||||||||
Unallocated Corporate | N/A | N/A | ||||||||||||||||||
Consolidated | 37.5 | % | 34.3 | % | ||||||||||||||||
Capital Employed (2) | ||||||||||||||||||||
Mattress Fabrics | 76,646 | 71,349 | 7.4 | % | ||||||||||||||||
Upholstery Fabrics | 17,221 | 18,946 | (9.1 | )% | ||||||||||||||||
Unallocated Corporate | 732 | 298 | N/A | |||||||||||||||||
Consolidated | 94,599 | 90,593 | 4.4 | % | ||||||||||||||||
Depreciation expense by Segment | ||||||||||||||||||||
Mattress Fabrics | $ | 1,556 | 1,359 | 14.5 | % | |||||||||||||||
Upholstery Fabrics | 205 | 196 | 4.6 | % | ||||||||||||||||
Depreciation expense | 1,761 | 1,555 | 13.2 | % |
Notes: | |
(1) | See pages 6 and 7 of this financial information release for calculations. |
(2) | The capital employed balances are as of July 31, 2016 and August 2, 2015. |
Page 5 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA | ||||||||||||||||||||
FOR THE TWELVE MONTHS ENDED JULY 31, 2016 AND AUGUST 2, 2015 | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
(AMOUNTS IN THOUSANDS) | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||
Trailing 12 | ||||||||||||||||||||
Months | ||||||||||||||||||||
11/1/2015 | 1/31/2016 | 5/1/2016 | 7/31/2016 | 7/31/2016 | ||||||||||||||||
Net income | $ | 3,771 | $ | 4,862 | $ | 3,601 | $ | 5,313 | $ | 17,547 | ||||||||||
Income taxes | 2,373 | 2,317 | 3,566 | 3,233 | 11,489 | |||||||||||||||
Interest income, net | (69 | ) | (38 | ) | (26 | ) | (25 | ) | (158 | ) | ||||||||||
Depreciation and amortization expense | 1,668 | 1,741 | 1,830 | 1,813 | 7,052 | |||||||||||||||
Stock based compensation | 1,074 | 625 | 778 | 761 | 3,238 | |||||||||||||||
Adjusted EBITDA | $ | 8,817 | $ | 9,507 | $ | 9,749 | $ | 11,095 | $ | 39,168 | ||||||||||
Quarter Ended | ||||||||||||||||||||
Trailing 12 | ||||||||||||||||||||
Months | ||||||||||||||||||||
11/2/2014 | 2/1/2015 | 5/3/2015 | 8/2/2015 | 8/2/2015 | ||||||||||||||||
Net income | $ | 3,001 | $ | 3,812 | $ | 4,913 | $ | 4,701 | $ | 16,427 | ||||||||||
Income taxes | 1,889 | 2,110 | 1,772 | 2,707 | 8,478 | |||||||||||||||
Interest income, net | (153 | ) | (202 | ) | (128 | ) | (42 | ) | (525 | ) | ||||||||||
Depreciation and amortization expense | 1,460 | 1,478 | 1,576 | 1,602 | 6,116 | |||||||||||||||
Stock based compensation | 245 | 191 | 304 | 265 | 1,005 | |||||||||||||||
Adjusted EBITDA | $ | 6,442 | $ | 7,389 | $ | 8,437 | $ | 9,233 | $ | 31,501 | ||||||||||
% Over (Under) | 36.9 | % | 28.7 | % | 15.6 | % | 20.2 | % | 24.3 | % |
Page 6 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||||||||||||||
RETURN ON CAPITAL EMPLOYED BY SEGMENT | ||||||||||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED JULY 31, 2016 | ||||||||||||||||||||||||||||||||
(Amounts in Thousands) | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Operating Income | ||||||||||||||||||||||||||||||||
Three Months | Average | Return on | ||||||||||||||||||||||||||||||
Ended | Capital | Avg. Capital | ||||||||||||||||||||||||||||||
July 31, 2016 (1) | Employed (3) | Employed (2) | ||||||||||||||||||||||||||||||
Mattress Fabrics | $ | 8,402 | $ | 75,642 | 44.4 | % | ||||||||||||||||||||||||||
Upholstery Fabrics | 2,984 | 17,123 | 69.7 | % | ||||||||||||||||||||||||||||
(less: Unallocated Corporate) | (2,713 | ) | (287 | ) | N/A | |||||||||||||||||||||||||||
Total | $ | 8,673 | $ | 92,478 | 37.5 | % | ||||||||||||||||||||||||||
Average Capital Employed | As of the three Months Ended July 31, 2016 | As of the three Months Ended May 1, 2016 | ||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | |||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||
Total assets | 92,959 | 33,550 | 56,851 | 183,360 | 94,878 | 29,463 | 50,801 | 175,142 | ||||||||||||||||||||||||
Total liabilities | (16,313 | ) | (16,329 | ) | (19,283 | ) | (51,925 | ) | (20,241 | ) | (12,438 | ) | (13,651 | ) | (46,330 | ) | ||||||||||||||||
Subtotal | $ | 76,646 | $ | 17,221 | $ | 37,568 | $ | 131,435 | $ | 74,637 | $ | 17,025 | $ | 37,150 | $ | 128,812 | ||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | (45,549 | ) | (45,549 | ) | - | - | (37,787 | ) | (37,787 | ) | ||||||||||||||||||||
Short-term investments | - | - | (2,434 | ) | (2,434 | ) | - | - | (4,359 | ) | (4,359 | ) | ||||||||||||||||||||
Long-term investments | - | - | (4,611 | ) | (4,611 | ) | - | - | (4,025 | ) | (4,025 | ) | ||||||||||||||||||||
Income taxes receivable | - | - | - | - | - | - | (155 | ) | (155 | ) | ||||||||||||||||||||||
Deferred income taxes - non-current | - | - | (1,942 | ) | (1,942 | ) | - | - | (2,319 | ) | (2,319 | ) | ||||||||||||||||||||
Income taxes payable - current | - | - | 358 | 358 | - | - | 180 | 180 | ||||||||||||||||||||||||
Income taxes payable - long-term | - | - | 3,779 | 3,779 | - | - | 3,841 | 3,841 | ||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | 1,532 | 1,532 | - | - | 1,483 | 1,483 | ||||||||||||||||||||||||
Line of credit | - | - | 7,000 | 7,000 | - | - | - | - | ||||||||||||||||||||||||
Deferred compensation | - | - | 5,031 | 5,031 | - | - | 4,686 | 4,686 | ||||||||||||||||||||||||
Total Capital Employed | $ | 76,646 | $ | 17,221 | $ | 732 | $ | 94,599 | $ | 74,637 | $ | 17,025 | $ | (1,305 | ) | $ | 90,357 | |||||||||||||||
Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||
Average Capital Employed (3) | $ | 75,642 | $ | 17,123 | $ | (287 | ) | $ | 92,478 |
Notes: | |
(1) | See reconciliation per page 4 of this financial information release. |
(2) | Return on average capital employed represents operating income for the three month period ending July 31, 2016 times four 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, noncurrent deferred tax assets and liabilities, income taxes receivable and payable, | |
line of credit, and deferred compensation. | |
(3) | Average capital employed was computed using the two periods ending July 31, 2016 and May 1, 2016. |
Page 7 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||||||||||||||
RETURN ON CAPITAL EMPLOYED BY SEGMENT | ||||||||||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED AUGUST 2, 2015 | ||||||||||||||||||||||||||||||||
(Amounts in Thousands) | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Operating Income | ||||||||||||||||||||||||||||||||
Three Months | Average | Return on | ||||||||||||||||||||||||||||||
Ended | Capital | Avg. Capital | ||||||||||||||||||||||||||||||
August 2, 2015 (1) | Employed (3) | Employed (2) | ||||||||||||||||||||||||||||||
Mattress Fabrics | $ | 7,003 | $ | 70,911 | 39.5 | % | ||||||||||||||||||||||||||
Upholstery Fabrics | 2,681 | 16,486 | 65.0 | % | ||||||||||||||||||||||||||||
(less: Unallocated Corporate) | (2,223 | ) | (488 | ) | N/A | |||||||||||||||||||||||||||
Total | $ | 7,461 | $ | 86,909 | 34.3 | % | ||||||||||||||||||||||||||
Average Capital Employed | As of the three Months Ended August 2, 2015 | As of the three Months Ended May 3, 2015 | ||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | |||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||
Total assets | 91,614 | 33,795 | 41,471 | 166,880 | 89,066 | 32,838 | 49,396 | 171,300 | ||||||||||||||||||||||||
Total liabilities | (20,265 | ) | (14,849 | ) | (13,041 | ) | (48,155 | ) | (18,594 | ) | (18,812 | ) | (14,467 | ) | (51,873 | ) | ||||||||||||||||
Subtotal | $ | 71,349 | $ | 18,946 | $ | 28,430 | $ | 118,725 | $ | 70,472 | $ | 14,026 | $ | 34,929 | $ | 119,427 | ||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | (25,933 | ) | (25,933 | ) | - | - | (29,725 | ) | (29,725 | ) | ||||||||||||||||||||
Short-term investments | - | - | (6,336 | ) | (6,336 | ) | - | - | (10,004 | ) | (10,004 | ) | ||||||||||||||||||||
Long-term investments | - | - | (2,893 | ) | (2,893 | ) | - | - | (2,415 | ) | (2,415 | ) | ||||||||||||||||||||
Income taxes receivable | - | - | (142 | ) | (142 | ) | - | - | (229 | ) | (229 | ) | ||||||||||||||||||||
Deferred income taxes - non-current | - | - | (4,406 | ) | (4,406 | ) | - | - | (5,169 | ) | (5,169 | ) | ||||||||||||||||||||
Current maturities of long-term debt | - | - | 2,200 | 2,200 | - | - | 2,200 | 2,200 | ||||||||||||||||||||||||
Income taxes payable - current | - | - | 392 | 392 | - | - | 325 | 325 | ||||||||||||||||||||||||
Income taxes payable - long-term | - | - | 3,634 | 3,634 | - | - | 3,792 | 3,792 | ||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | 1,072 | 1,072 | - | - | 982 | 982 | ||||||||||||||||||||||||
Deferred compensation | - | - | 4,280 | 4,280 | - | - | 4,041 | 4,041 | ||||||||||||||||||||||||
Total Capital Employed | $ | 71,349 | $ | 18,946 | $ | 298 | $ | 90,593 | $ | 70,472 | $ | 14,026 | $ | (1,273 | ) | $ | 83,225 | |||||||||||||||
Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||
Average Capital Employed (3) | $ | 70,911 | $ | 16,486 | $ | (488 | ) | $ | 86,909 |
Notes: | |
(1) | See reconciliation per page 4 of this financial information release. |
(2) | Return on average capital employed represents operating income for the three month period ending August 2, 2015 times four 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, current maturities of long-term debt, noncurrent deferred tax assets and liabilities, | |
income taxes receivable and payable, and deferred compensation. | |
(3) | Average capital employed was computed using the two periods ending August 2, 2015 and May 3, 2015. |
Page 8 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE | |||||||||||
CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE, NET INCOME AND EARNINGS PER SHARE | |||||||||||
FOR THE THREE MONTHS ENDED JULY 31, 2016 AND AUGUST 2, 2015 | |||||||||||
Unaudited | |||||||||||
(Amounts in Thousands) | |||||||||||
THREE MONTHS ENDED | |||||||||||
Amounts | |||||||||||
July 31, | August 2, | ||||||||||
2016 | 2015 | ||||||||||
Consolidated Effective GAAP Income Tax Rate | (1) | 37.8 | % | 36.5 | % | ||||||
Non-Cash U.S. Income Tax Expense | (19.6 | )% | (20.5 | )% | |||||||
Non-Cash Foreign Income Tax Expense | (0.4 | )% | (0.3 | )% | |||||||
Consolidated Adjusted Effective Income Tax Rate | (2) | 17.8 | % | 15.7 | % |
THREE MONTHS ENDED | ||||||||||||||||||||||||
As reported | As Adjusted | As reported | As Adjusted | |||||||||||||||||||||
July 31, | July 31, | August 2, | August 2, | |||||||||||||||||||||
2016 | Adjustments | 2016 | 2015 | Adjustments | 2015 | |||||||||||||||||||
Income before income taxes | $ | 8,546 | $ | 8,546 | $ | 7,408 | $ | 7,408 | ||||||||||||||||
Income taxes (3) | 3,233 | $ | (1,712 | ) | 1,521 | 2,707 | $ | (1,544 | ) | 1,163 | ||||||||||||||
Net income | $ | 5,313 | �� | $ | 1,712 | $ | 7,025 | $ | 4,701 | $ | 1,544 | $ | 6,245 | |||||||||||
Net income per share-basic | $ | 0.43 | $ | 0.14 | $ | 0.57 | $ | 0.38 | $ | 0.13 | $ | 0.51 | ||||||||||||
Net income per share-diluted | $ | 0.43 | $ | 0.14 | $ | 0.56 | $ | 0.38 | $ | 0.12 | $ | 0.50 | ||||||||||||
Average shares outstanding-basic | 12,286 | 12,286 | 12,286 | 12,277 | 12,277 | 12,277 | ||||||||||||||||||
Average shares outstanding-diluted | 12,463 | 12,463 | 12,463 | 12,456 | 12,456 | 12,456 |
(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) | Adjusted income taxes calculated using the Consolidated Adjusted Effective Income Tax Rate as reflected above. |