Exhibit 99(b)
Page 1 of 9
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF NET INCOME | ||||||||||||||||||||
FOR THREE MONTHS ENDED JULY 30, 2017 AND JULY 31, 2016 | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
(Amounts in Thousands, Except for Per Share Data) | ||||||||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||
Amounts | Percent of Sales | |||||||||||||||||||
July 30, | July 31, | % Over | July 30, | July 31, | ||||||||||||||||
2017 | 2016 | (Under) | 2017 | 2016 | ||||||||||||||||
Net sales | $ | 79,533 | 80,682 | (1.4 | )% | 100.0 | % | 100.0 | % | |||||||||||
Cost of sales | 63,068 | 62,263 | 1.3 | % | 79.3 | % | 77.2 | % | ||||||||||||
Gross profit | 16,465 | 18,419 | (10.6 | )% | 20.7 | % | 22.8 | % | ||||||||||||
Selling, general and | ||||||||||||||||||||
administrative expenses | 9,501 | 9,746 | (2.5 | )% | 11.9 | % | 12.1 | % | ||||||||||||
Income from operations | 6,964 | 8,673 | (19.7 | )% | 8.8 | % | 10.7 | % | ||||||||||||
Interest income | (131 | ) | (25 | ) | 424.0 | % | (0.2 | )% | (0.0 | )% | ||||||||||
Other expense | 353 | 152 | 132.2 | % | 0.4 | % | 0.2 | % | ||||||||||||
Income before income taxes | 6,742 | 8,546 | (21.1 | )% | 8.5 | % | 10.6 | % | ||||||||||||
Income taxes | 1,640 | 3,233 | (49.3 | )% | 24.3 | % | 37.8 | % | ||||||||||||
Loss from investment in unconsolidated joint venture | 118 | - | 100.0 | % | 0.1 | % | 0.0 | % | ||||||||||||
Net income | $ | 4,984 | 5,313 | (6.2 | )% | 6.3 | % | 6.6 | % | |||||||||||
Net income per share-basic | $ | 0.40 | $ | 0.43 | (7.0 | )% | ||||||||||||||
Net income per share-diluted | $ | 0.40 | $ | 0.43 | (7.0 | )% | ||||||||||||||
Average shares outstanding-basic | 12,399 | 12,286 | 0.9 | % | ||||||||||||||||
Average shares outstanding-diluted | 12,590 | 12,463 | 1.0 | % |
Page 2 of 9
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
JULY 30, 2017, JULY 31, 2016, AND APRIL 30, 2017 | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
(Amounts in Thousands) | ||||||||||||||||||||
Amounts | Increase | |||||||||||||||||||
July 30, | July 31, | (Decrease) | * April 30, | |||||||||||||||||
2017 | 2016 | Dollars | Percent | 2017 | ||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 18,322 | 45,549 | (27,227 | ) | (59.8 | )% | 20,795 | ||||||||||||
Short-term investments | 2,469 | 2,434 | 35 | 1.4 | % | 2,443 | ||||||||||||||
Accounts receivable | 22,140 | 22,690 | (550 | ) | (2.4 | )% | 24,577 | |||||||||||||
Inventories | 55,227 | 48,131 | 7,096 | 14.7 | % | 51,482 | ||||||||||||||
Other current assets | 3,441 | 2,294 | 1,147 | 50.0 | % | 2,894 | ||||||||||||||
Total current assets | 101,599 | 121,098 | (19,499 | ) | (16.1 | )% | 102,191 | |||||||||||||
Property, plant & equipment, net | 52,912 | 41,745 | 11,167 | 26.8 | % | 51,651 | ||||||||||||||
Goodwill | 11,462 | 11,462 | - | 0.0 | % | 11,462 | ||||||||||||||
Deferred income taxes | 436 | 1,942 | (1,506 | ) | (77.5 | )% | 419 | |||||||||||||
Long-term Investments - Held-To-Maturity | 30,907 | - | 30,907 | 100.0 | % | 30,945 | ||||||||||||||
Long-term Investments - Rabbi Trust | 6,714 | 4,611 | 2,103 | 45.6 | % | 5,466 | ||||||||||||||
Investment in unconsolidated joint venture | 1,477 | - | 1,477 | 100.0 | % | 1,106 | ||||||||||||||
Other assets | 2,397 | 2,502 | (105 | ) | (4.2 | )% | 2,394 | |||||||||||||
Total assets | $ | 207,904 | 183,360 | 24,544 | 13.4 | % | 205,634 | |||||||||||||
Current liabilities | ||||||||||||||||||||
Accounts payable - trade | $ | 29,112 | 26,708 | 2,404 | 9.0 | % | 29,101 | |||||||||||||
Accounts payable - capital expenditures | 5,647 | 627 | 5,020 | 800.6 | % | 4,767 | ||||||||||||||
Accrued expenses | 6,075 | 6,890 | (815 | ) | (11.8 | )% | 11,947 | |||||||||||||
Income taxes payable - current | 884 | 358 | 526 | 146.9 | % | 287 | ||||||||||||||
Total current liabilities | 41,718 | 34,583 | 7,135 | 20.6 | % | 46,102 | ||||||||||||||
Line of credit | 5,000 | 7,000 | (2,000 | ) | (28.6 | )% | - | |||||||||||||
Accounts payable - capital expenditures | - | - | - | 0.0 | % | 1,322 | ||||||||||||||
Income taxes payable - long-term | 487 | 3,779 | (3,292 | ) | (87.1 | )% | 467 | |||||||||||||
Deferred income taxes | 4,253 | 1,532 | 2,721 | 177.6 | % | 3,593 | ||||||||||||||
Deferred compensation | 6,769 | 5,031 | 1,738 | 34.5 | % | 5,520 | ||||||||||||||
Total liabilities | 58,227 | 51,925 | 6,302 | 12.1 | % | 57,004 | ||||||||||||||
Shareholders' equity | 149,677 | 131,435 | 18,242 | 13.9 | % | 148,630 | ||||||||||||||
Total liabilities and | ||||||||||||||||||||
shareholders' equity | $ | 207,904 | 183,360 | 24,544 | 13.4 | % | 205,634 | |||||||||||||
Shares outstanding | 12,441 | 12,307 | 134 | 1.1 | % | 12,357 |
* Derived from audited financial statements.
Page 3 of 9
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||
SUMMARY OF CASH AND INVESTMENTS | ||||||||||||
JULY 30, 2017 AND JULY 31, 2016, AND APRIL 30, 2017 | ||||||||||||
Unaudited | ||||||||||||
(Amounts in Thousands) | ||||||||||||
Amounts | ||||||||||||
July 30, | July 31, | April 30, | ||||||||||
2017 | 2016 | 2017* | ||||||||||
Cash and cash equivalents | $ | 18,322 | $ | 45,549 | $ | 20,795 | ||||||
Short-term investments | 2,469 | 2,434 | 2,443 | |||||||||
Long-term investments (Held-To-Maturity) | 30,907 | - | 30,945 | |||||||||
Total Cash and Investments | $ | 51,698 | $ | 47,983 | $ | 54,183 |
* Derived from audited financial statements.
Page 4 of 9
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
FOR THE THREE MONTHS ENDED JULY 30, 2017 AND JULY 31, 2016 | ||||||||||
Unaudited | ||||||||||
(Amounts in Thousands) | ||||||||||
THREE MONTHS ENDED | ||||||||||
Amounts | ||||||||||
July 30, | July 31, | |||||||||
2017 | 2016 | |||||||||
Cash flows from operating activities: | ||||||||||
Net income | $ | 4,984 | 5,313 | |||||||
Adjustments to reconcile net income to net cash | ||||||||||
provided by operating activities: | ||||||||||
Depreciation | 1,807 | 1,761 | ||||||||
Amortization of assets | 82 | 52 | ||||||||
Stock-based compensation | 757 | 761 | ||||||||
Deferred income taxes | 643 | 593 | ||||||||
Realized loss on sale of short-term investments | - | 12 | ||||||||
Loss on sale of equipment | - | 9 | ||||||||
Loss from investment in unconsolidated joint venture | 118 | - | ||||||||
Foreign currency exchange loss (gain) | 35 | (62 | ) | |||||||
Changes in assets and liabilities: | ||||||||||
Accounts receivable | 2,524 | 611 | ||||||||
Inventories | (3,539 | ) | (1,808 | ) | ||||||
Other current assets | (467 | ) | 158 | |||||||
Other assets | (47 | ) | 19 | |||||||
Accounts payable | (397 | ) | 3,036 | |||||||
Accrued expenses and deferrred compensation | (4,704 | ) | (4,631 | ) | ||||||
Income taxes | 608 | 375 | ||||||||
Net cash provided by operating activities | 2,404 | 6,199 | (2 | ) | ||||||
Cash flows from investing activities: | ||||||||||
Capital expenditures | (2,260 | ) | (3,139 | ) | ||||||
Investment in unconsolidated joint venture | (489 | ) | - | |||||||
Proceeds from the sale of short-term investments | - | 2,000 | ||||||||
Purchase of short-term investments | (12 | ) | (21 | ) | ||||||
Proceeds from the sale of long-term investments (Rabbi Trust) | 49 | - | ||||||||
Purchase of long-term investments (Rabbi Trust) | (1,267 | ) | (559 | ) | ||||||
Net cash used in investing activities | (3,979 | ) | (1,719 | ) | ||||||
Cash flows from financing activities: | ||||||||||
Proceeds from line of credit | 5,000 | 7,000 | ||||||||
Payments on vendor-financed capital expenditures | (1,250 | ) | - | |||||||
Dividends paid | (3,608 | ) | (3,445 | ) | ||||||
Common stock surrendered for withholding taxes payable | (1,135 | ) | (280 | ) | ||||||
Proceeds from common stock issued | 5 | 11 | ||||||||
Net cash (used in) provided by financing activities | (988 | ) | 3,286 | (2 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | 90 | (4 | ) | |||||||
(Decrease) increase in cash and cash equivalents | (2,473 | ) | 7,762 | |||||||
Cash and cash equivalents at beginning of period | 20,795 | 37,787 | ||||||||
Cash and cash equivalents at end of period | $ | 18,322 | 45,549 | |||||||
Free Cash Flow (1) | $ | (2,723 | ) | 2,497 | (2 | ) | ||||
(1) Free Cash Flow reconciliation is as follows: | ||||||||||
FY 2018 | FY 2017 | |||||||||
A) Net cash provided by operating activities | $ | 2,404 | 6,199 | |||||||
B) Minus: Capital Expenditures | (2,260 | ) | (3,139 | ) | ||||||
C) Minus: Investment in unconsolidated joint venture | (489 | ) | - | |||||||
D) Minus: Payments on vendor-financed capital expenditures | (1,250 | ) | - | |||||||
E) Plus: Proceeds from the sale of long-term investments (Rabbi Trust) | 49 | - | ||||||||
F) Minus: Purchase of long-term investments (Rabbi Trust) | (1,267 | ) | (559 | ) | ||||||
G) Effects of exchange rate changes on cash and cash equivalents | 90 | (4 | ) | |||||||
$ | (2,723 | ) | 2,497 | |||||||
(2) | During the first quarter of fiscal 2018, we adopted ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." Accordingly, we reclassified certain amounts on our Statement of Cash Flows for the three months ended July 31, 2016 to conform to the current year's presentation. As a result, our net cash provided by operating activities increased by $447 which was fully offset by a corresponding decrease of $447 to our net cash provided by financing activities. Additionally, our free cash flow increased $280. |
Page 5 of 9
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
STATEMENTS OF OPERATIONS BY SEGMENT | ||||||||||||||||||||
FOR THE THREE MONTHS ENDED JULY 30, 2017 AND JULY 31, 2016 | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
THREE MONTHS ENDED | ||||||||||||||||||||
Amounts | Percent of Total Sales | |||||||||||||||||||
July 30, | July 31, | % Over | July 30, | July 31, | ||||||||||||||||
Net Sales by Segment | 2017 | 2016 | (Under) | 2017 | 2016 | |||||||||||||||
Mattress Fabrics | $ | 48,429 | 50,530 | (4.2 | )% | 60.9 | % | 62.6 | % | |||||||||||
Upholstery Fabrics | 31,104 | 30,152 | 3.2 | % | 39.1 | % | 37.4 | % | ||||||||||||
Net Sales | $ | 79,533 | 80,682 | (1.4 | )% | 100.0 | % | 100.0 | % | |||||||||||
Gross Profit by Segment | Gross Profit Margin | |||||||||||||||||||
Mattress Fabrics | $ | 9,760 | 11,901 | (18.0 | )% | 20.2 | % | 23.6 | % | |||||||||||
Upholstery Fabrics | 6,705 | 6,518 | 2.9 | % | 21.6 | % | 21.6 | % | ||||||||||||
Gross Profit | $ | 16,465 | 18,419 | (10.6 | )% | 20.7 | % | 22.8 | % | |||||||||||
Selling, General and Administrative expenses by Segment | Percent of Sales | |||||||||||||||||||
Mattress Fabrics | $ | 3,391 | 3,499 | (3.1 | )% | 7.0 | % | 6.9 | % | |||||||||||
Upholstery Fabrics | 3,811 | 3,534 | 7.8 | % | 12.3 | % | 11.7 | % | ||||||||||||
Unallocated Corporate expenses | 2,299 | 2,713 | (15.3 | )% | 2.9 | % | 3.4 | % | ||||||||||||
Selling, General and Administrative Expenses | $ | 9,501 | 9,746 | (2.5 | )% | 11.9 | % | 12.1 | % | |||||||||||
Operating Income (loss) by Segment | Operating Income (Loss) Margin | |||||||||||||||||||
Mattress Fabrics | $ | 6,368 | 8,402 | (24.2 | )% | 13.1 | % | 16.6 | % | |||||||||||
Upholstery Fabrics | 2,895 | 2,984 | (3.0 | )% | 9.3 | % | 9.9 | % | ||||||||||||
Unallocated corporate expenses | (2,299 | ) | (2,713 | ) | (15.3 | )% | (2.9 | )% | (3.4 | )% | ||||||||||
Operating Income | $ | 6,964 | 8,673 | (19.7 | )% | 8.8 | % | 10.7 | % | |||||||||||
Return on Capital (1) | ||||||||||||||||||||
Mattress Fabrics | 29.7 | % | 44.4 | % | ||||||||||||||||
Upholstery Fabrics | 65.2 | % | 69.7 | % | ||||||||||||||||
Unallocated Corporate | N/A | N/A | ||||||||||||||||||
Consolidated | 27.0 | % | 37.5 | % | ||||||||||||||||
Capital Employed (2) | ||||||||||||||||||||
Mattress Fabrics | $ | 87,835 | 76,646 | 14.6 | % | |||||||||||||||
Upholstery Fabrics | 19,508 | 17,221 | 13.3 | % | ||||||||||||||||
Unallocated Corporate | 879 | 732 | N/A | |||||||||||||||||
Consolidated | $ | 108,222 | 94,599 | 14.4 | % | |||||||||||||||
Depreciation expense by Segment | ||||||||||||||||||||
Mattress Fabrics | $ | 1,612 | 1,556 | 3.6 | % | |||||||||||||||
Upholstery Fabrics | 195 | 205 | (4.9 | )% | ||||||||||||||||
Depreciation expense | $ | 1,807 | 1,761 | 2.6 | % |
Notes: | |
(1) | See pages 7 and 8 of this financial information release for calculations. |
(2) | The capital employed balances are as of July 30, 2017 and July 31, 2016. |
Page 6 of 9
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA | ||||||||||||||||||||
FOR THE TWELVE MONTHS ENDED JULY 30, 2017 AND JULY 31, 2016 | ||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||
(AMOUNTS IN THOUSANDS) | ||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||
Trailing 12 | ||||||||||||||||||||
Months | ||||||||||||||||||||
10/30/2016 | 1/29/2017 | 4/30/2017 | 7/30/2017 | 7/30/2017 | ||||||||||||||||
Net income | $ | 4,475 | $ | 6,347 | $ | 6,198 | $ | 4,984 | $ | 22,004 | ||||||||||
Income taxes | 2,684 | 643 | 778 | 1,640 | 5,745 | |||||||||||||||
Interest income, net | (15 | ) | (124 | ) | (134 | ) | (131 | ) | (404 | ) | ||||||||||
Depreciation and amortization expense | 1,778 | 1,875 | 1,863 | 1,889 | 7,405 | |||||||||||||||
Stock based compensation | 896 | 962 | 739 | 757 | 3,354 | |||||||||||||||
Adjusted EBITDA | $ | 9,818 | $ | 9,703 | $ | 9,444 | $ | 9,139 | $ | 38,104 | ||||||||||
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 | ||||||||||
% Over (Under) | 11.4 | % | 2.1 | % | -3.1 | % | -17.6 | % | -2.7 | % |
Page 7 of 9
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||||||||||||||||||||||||
RETURN ON CAPITAL EMPLOYED BY SEGMENT | ||||||||||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED JULY 30, 2017 | ||||||||||||||||||||||||||||||||
(Amounts in Thousands) | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Operating Income | ||||||||||||||||||||||||||||||||
Three Months | Average | Return on | ||||||||||||||||||||||||||||||
Ended | Capital | Avg. Capital | ||||||||||||||||||||||||||||||
July 30, 2017 (1) | Employed (3) | Employed (2) | ||||||||||||||||||||||||||||||
Mattress Fabrics | $ | 6,368 | $ | 85,629 | 29.7 | % | ||||||||||||||||||||||||||
Upholstery Fabrics | 2,895 | 17,757 | 65.2 | % | ||||||||||||||||||||||||||||
(less: Unallocated Corporate) | (2,299 | ) | (60 | ) | N/A | |||||||||||||||||||||||||||
Total | $ | 6,964 | $ | 103,326 | 27.0 | % | ||||||||||||||||||||||||||
Average Capital Employed | As of the three Months Ended July 30, 2017 | As of the three Months Ended April 30, 2017 | ||||||||||||||||||||||||||||||
Mattress | Upholstery | Unallocated | Mattress | Upholstery | Unallocated | |||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||
Total assets | $ | 112,112 | $ | 34,491 | $ | 61,301 | $ | 207,904 | $ | 111,041 | $ | 32,255 | $ | 62,338 | $ | 205,634 | ||||||||||||||||
Total liabilities | (24,277 | ) | (14,983 | ) | (18,967 | ) | (58,227 | ) | (27,619 | ) | (16,249 | ) | (13,136 | ) | (57,004 | ) | ||||||||||||||||
Subtotal | $ | 87,835 | $ | 19,508 | $ | 42,334 | $ | 149,677 | $ | 83,422 | $ | 16,006 | $ | 49,202 | $ | 148,630 | ||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | (18,322 | ) | (18,322 | ) | - | - | (20,795 | ) | (20,795 | ) | ||||||||||||||||||||
Short-term investments | - | - | (2,469 | ) | (2,469 | ) | - | - | (2,443 | ) | (2,443 | ) | ||||||||||||||||||||
Long-term investments (Held-To-Maturity) | (30,907 | ) | (30,907 | ) | (30,945 | ) | (30,945 | ) | ||||||||||||||||||||||||
Long-term investments (Rabbi Trust) | - | - | (6,714 | ) | (6,714 | ) | - | - | (5,466 | ) | (5,466 | ) | ||||||||||||||||||||
Deferred income taxes - non-current | - | - | (436 | ) | (436 | ) | - | - | (419 | ) | (419 | ) | ||||||||||||||||||||
Income taxes payable - current | - | - | 884 | 884 | - | - | 287 | 287 | ||||||||||||||||||||||||
Income taxes payable - long-term | - | - | 487 | 487 | - | - | 467 | 467 | ||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | 4,253 | 4,253 | - | - | 3,593 | 3,593 | ||||||||||||||||||||||||
Line of credit | - | - | 5,000 | 5,000 | - | - | - | - | ||||||||||||||||||||||||
Deferred compensation | - | - | 6,769 | 6,769 | - | - | 5,520 | 5,520 | ||||||||||||||||||||||||
Total Capital Employed | $ | 87,835 | $ | 19,508 | $ | 879 | $ | 108,222 | $ | 83,422 | $ | 16,006 | $ | (999 | ) | $ | 98,429 | |||||||||||||||
Mattress | Upholstery | Unallocated | ||||||||||||||||||||||||||||||
Fabrics | Fabrics | Corporate | Total | |||||||||||||||||||||||||||||
Average Capital Employed (3) | $ | 85,629 | $ | 17,757 | $ | (60 | ) | $ | 103,326 |
Notes: | |
(1) | See reconciliation per page 5 of this financial information release. |
(2) | Return on average capital employed represents operating income for the three month period ending July 30, 2017 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 (Held-To-Maturity), long-term investments (Rabbi Trust), noncurrent deferred income 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 30, 2017 and April 30, 2017. |
Page 8 of 9
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 (Rabbi Trust) | - | - | (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 5 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 (Rabbi Trust), noncurrent deferred income 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 9 of 9
CULP, INC. FINANCIAL INFORMATION RELEASE | ||||||||||
CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE | ||||||||||
FOR THE THREE MONTHS ENDED JULY 30, 2017 AND JULY 31, 2016 | ||||||||||
Unaudited | ||||||||||
(Amounts in Thousands) | ||||||||||
THREE MONTHS ENDED | ||||||||||
Amounts | ||||||||||
July 30, | July 31, | |||||||||
2017 | 2016 | |||||||||
Consolidated Effective GAAP Income Tax Rate | (1) | 24.3 | % | 37.8 | % | |||||
Non-Cash U.S. Income Tax Expense | (17.0 | )% | (19.6 | )% | ||||||
Excess income tax benefits related to stock-based compensation | 8.2 | % | - | |||||||
Other Non-Cash Foreign Income Tax Expense | - | (0.4 | )% | |||||||
Consolidated Adjusted Effective Income Tax Rate | (2) | 15.5 | % | 17.8 | % |
(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. |