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 (LOSS) INCOME
FOR THREE MONTHS ENDED JANUARY 28, 2018 AND JANUARY 29, 2017
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
	THREE MONTHS ENDED
	Amounts									Percent of Sales
	January 28,			January 29,			% Over			January 28,			January 29,
	2018			2017			(Under)			2018			2017
Net sales	$	85,310			76,169			12.0	%		100.0	%		100.0	%
Cost of sales		67,707			59,410			14.0	%		79.4	%		78.0	%
Gross profit		17,603			16,759			5.0	%		20.6	%		22.0	%
Selling, general and
administrative expenses		9,959			9,824			1.4	%		11.7	%		12.9	%
Income from operations		7,644			6,935			10.2	%		9.0	%		9.1	%
Interest expense		31			-			100.0	%		0.0	%		0.0	%
Interest income		(132	)		(124	)		6.5	%		(0.2	)%		(0.2	)%
Other expense		229			69			231.9	%		0.3	%		0.1	%
Income before income taxes		7,516			6,990			7.5	%		8.8	%		9.2	%
Income taxes*		8,208			643		N.M.				109.2	%		9.2	%
Loss from investment in unconsolidated joint venture		56			-			100.0	%		0.1	%		0.0	%
Net (loss) income	$	(748	)		6,347			N.M.			(0.9	)%		8.3	%
Net (loss) income per share-basic	$	(0.06	)	$	0.52			(111.5	)%
Net (loss) income per share-diluted	$	(0.06	)	$	0.51			(111.8	)%
Average shares outstanding-basic		12,436			12,313			1.0	%
Average shares outstanding-diluted		12,436			12,544			(0.9	)%
* Percent of sales column for income taxes is calculated as a % of income before income taxes.
N.M. - Not meaningful.

CULP, INC. FINANCIAL INFORMATION RELEASE
PROFORMA CONSOLIDATED INCOME TAXES AND NET (LOSS) INCOME
FOR THREE MONTHS ENDED JANUARY 28, 2018
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
				Amounts (2)					Percent of Sales
	As Reported						January 28, 2018		As Reported			January 28, 2018
	January 28,			(1)			Proforma Net		January 28,			Proforma Net
	2018			Adjustments			of Adjustments		2018			of Adjustments
Income before income taxes	$	7,516			-			7,516		8.8	%		8.8	%
Income taxes*		8,208			(5,939	)		2,269		109.2	%		30.2	%
Loss from investment in unconsolidated joint venture		56			-			56		0.1	%		0.1	%
Net (loss) income	$	(748	)		5,939			5,191		-0.9	%		6.1	%
Net (loss) income per share-basic	$	(0.06	)	$	0.48		$	0.42
Net (loss) income per share-diluted	$	(0.06	)	$	0.48		$	0.42
Average shares outstanding-basic		12,436			12,436			12,436
Average shares outstanding-diluted		12,436			12,436			12,436

(1)	Adjustments represent the income tax effects of the Tax Cuts and Jobs Act (TCJA) enacted on December 22, 2017, of which $4.8 million pertains to the mandatory repatriation of undistributed earnings and profits associated with our foreign subsidiaries and $1.1 million pertains to the revaluation of our U.S. deferred income taxes and reduction in our annual effective income tax rate pursuant to the TCJA.
(2)	No proforma adjustments were applicable for the comparative three-month period ending January 29, 2017, as the TCJA was not enacted or effective prior to December 22, 2017. See the above consolidated income statement for the three-month period ending January 29, 2017 for reported amounts.
*	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 NINE MONTHS ENDED JANUARY 28, 2018 AND JANUARY 29, 2017
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
	NINE MONTHS ENDED
	Amounts											Percent of Sales
	January 28,				January 29,				% Over			January 28,			January 29,
	2018				2017				(Under)			2018			2017
Net sales		$	245,541				232,194			5.7	%		100.0	%		100.0	%
Cost of sales			195,668				180,115			8.6	%		79.7	%		77.6	%
Gross profit			49,873				52,079			(4.2	)%		20.3	%		22.4	%
Selling, general and
administrative expenses			28,876				29,171			(1.0	)%		11.8	%		12.6	%
Income from operations			20,997				22,908			(8.3	)%		8.6	%		9.9	%
Interest expense			69				-			100.0	%		0.0	%		0.0	%
Interest income			(391	)			(164	)		138.4	%		(0.2	)%		(0.1	)%
Other expense			903				376			140.2	%		0.4	%		0.2	%
Income before income taxes			20,416				22,696			(10.0	)%		8.3	%		9.8	%
Income taxes*			11,956				6,560			82.3	%		58.6	%		28.9	%
Loss from investment in unconsolidated joint venture			249				-			100.0	%		0.1	%		0.0	%
Net income		$	8,211				16,136			(49.1	)%		3.3	%		6.9	%
Net income per share-basic		$	0.66			$	1.31			(49.6	)%
Net income per share-diluted		$	0.65			$	1.29			(49.6	)%
Average shares outstanding-basic			12,425				12,302			1.0	%
Average shares outstanding-diluted			12,626				12,517			0.9	%
* Percent of sales column for income taxes is calculated as a % of income before income taxes.

CULP, INC. FINANCIAL INFORMATION RELEASE
PROFORMA CONSOLIDATED INCOME TAXES AND NET INCOME
FOR NINE MONTHS ENDED JANUARY 28, 2018
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
			Amounts (2)						Percent of Sales
	As Reported						January 28, 2018		As Reported			January 28, 2018
	January 28,			(1)			Proforma Net		January 28,			Proforma Net
	2018			Adjustments			of Adjustments		2018			of Adjustments
Income before income taxes	$	20,416			-			20,416		8.3	%		8.3	%
Income taxes*		11,956			(5,939	)		6,017		58.6	%		29.5	%
Loss from investment in unconsolidated joint venture		249			-			249		0.1	%		0.1	%
Net  income	$	8,211			5,939			14,150		3.3	%		5.8	%
Net income per share-basic	$	0.66		$	0.48		$	1.14
Net income per share-diluted	$	0.65		$	0.47		$	1.12
Average shares outstanding-basic		12,425			12,425			12,425
Average shares outstanding-diluted		12,626			12,626			12,626

(1)	Adjustments represent the income tax effects of the Tax Cuts and Jobs Act (TCJA) enacted on December 22, 2017, of which $4.8 million pertains to the mandatory repatriation of undistributed earnings and profits associated with our foreign subsidiaries and $1.1 million pertains to the revaluation of our U.S. deferred income taxes and reduction in our annual effective income tax rate pursuant to the TCJA.
(2)	No proforma adjustments were applicable for the comparative nine-month period ending January 29, 2017, as the TCJA was not enacted or effective prior to December 22, 2017. See the above consolidated income statement for the nine-month period ending January 29, 2017 for reported amounts.
*	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
JANUARY 28, 2018, JANUARY 29, 2017, AND APRIL 30, 2017
Unaudited
(Amounts in Thousands)
	Amounts				Increase						(Condensed)
	January 28,		January 29,		(Decrease)						April 30,
	2018		2017		Dollars			Percent			2017
Current assets
Cash and cash equivalents	$	22,428		15,659		6,769			43.2	%		20,795
Short-term investments - Available for Sale		2,472		2,410		62			2.6	%		2,443
Short-term investments - Held-To-Maturity		17,206		-		17,206			100.0	%		-
Accounts receivable		26,097		22,726		3,371			14.8	%		24,577
Inventories		55,651		46,193		9,458			20.5	%		51,482
Other current assets		3,114		2,514		600			23.9	%		2,894
Total current assets		126,968		89,502		37,466			41.9	%		102,191
Property, plant & equipment, net		51,838		50,333		1,505			3.0	%		51,651
Goodwill		11,462		11,462		-			0.0	%		11,462
Deferred income taxes		1,942		422		1,520			360.2	%		419
Long-term Investments - Held-To-Maturity		13,625		30,832		(17,207	)		(55.8	)%		30,945
Long-term Investments - Rabbi Trust		7,176		5,488		1,688			30.8	%		5,466
Investment in unconsolidated joint venture		1,518		600		918			153.0	%		1,106
Other assets		2,315		2,417		(102	)		(4.2	)%		2,394
Total assets	$	216,844		191,056		25,788			13.5	%		205,634
Current liabilities
Accounts payable - trade	$	32,434		22,352		10,082			45.1	%		29,101
Accounts payable - capital expenditures		1,554		4,886		(3,332	)		(68.2	)%		4,767
Accrued expenses		8,842		10,511		(1,669	)		(15.9	)%		11,947
Income taxes payable - current		1,580		217		1,363			628.1	%		287
Total current liabilities		44,410		37,966		6,444			17.0	%		46,102
Accounts payable - capital expenditures		-		708		(708	)		(100.0	)%		1,322
Income taxes payable - long-term		10,940		1,817		9,123			502.1	%		467
Deferred income taxes		2,096		2,924		(828	)		(28.3	)%		3,593
Deferred compensation		7,216		5,327		1,889			35.5	%		5,520
Total liabilities		64,662		48,742		15,920			32.7	%		57,004
Shareholders' equity		152,182		142,314		9,868			6.9	%		148,630
Total liabilities and
shareholders' equity	$	216,844		191,056		25,788			13.5	%		205,634
Shares outstanding		12,450		12,315		135			1.1	%		12,357
*  Derived from audited financial statements.

Page 4 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
SUMMARY OF CASH AND INVESTMENTS
JANUARY 28, 2018, JANUARY 29, 2017, AND APRIL 30, 2017
Unaudited
(Amounts in Thousands)
				Amounts
	January 28,			January 29,			April 30,
	2018			2017			2017*
Cash and cash equivalents		$	22,428		$	15,659		$	20,795
Short-term investments - Available for Sale			2,472			2,410			2,443
Short-term investments - Held-To-Maturity			17,206			-			-
Long-term investments - Held-To-Maturity			13,625			30,832			30,945
Total Cash and Investments		$	55,731		$	48,901		$	54,183
*  Derived from audited financial statements.

Page 5 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED JANUARY 28, 2018 AND JANUARY 29, 2017
Unaudited
(Amounts in Thousands)
	NINE MONTHS ENDED
	Amounts
	January 28,			January 29,
	2018			2017
Cash flows from operating activities:
Net income	$	8,211			16,136
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation		5,679			5,304
Amortization of assets		248			162
Stock-based compensation		2,422			2,619
Deferred income taxes		(3,020	)		3,533
Realized loss on sale of short-term investments (Available for Sale)		-			12
Gain on sale of equipment		-			(71	)
Loss from investment in unconsolidated joint venture		249			-
Foreign currency exchange loss (gain)		133			(18	)
Changes in assets and liabilities:
Accounts receivable		(923	)		340
Inventories		(3,275	)		(137	)
Other current assets		(27	)		90
Other assets		(37	)		51
Accounts payable		1,715			(946	)
Accrued expenses and deferrred compensation		(1,608	)		(668	)
Income taxes		11,702			(1,695	)
Net cash provided by operating activities		21,469			24,712		(2)
Cash flows from investing activities:
Capital expenditures		(6,657	)		(9,253	)
Investment in unconsolidated joint venture		(661	)		(600	)
Proceeds from the sale of short-term investments (Available for Sale)		-			2,000
Purchase of short-term investments (Available for Sale)		(37	)		(8	)
Purchase of long-term investments (Held-To-Maturity)		-			(31,050	)
Proceeds from the sale of long-term investments (Rabbi Trust)		57			-
Purchase of long-term investments (Rabbi Trust)		(1,699	)		(1,431	)
Premium payment on life insurance policy		(18	)		(18	)
Proceeds from the sale of equipment		6			80
Net cash used in investing activities		(9,009	)		(40,280	)
Cash flows from financing activities:
Proceeds from line of credit		10,000			7,000
Payments on line of credit		(10,000	)		(7,000	)
Payments on vendor-financed capital expenditures		(3,750	)		(1,050	)
Dividends paid		(5,722	)		(5,292	)
Common stock surrendered for withholding taxes payable		(1,530	)		(280	)
Payments of debt issuance costs		-			(2	)
Proceeds from common stock issued		111			37
Net cash used in financing activities		(10,891	)		(6,587	)	(2)
Effect of exchange rate changes on cash and cash equivalents		64			27
Increase (decrease) in cash and cash equivalents		1,633			(22,128	)
Cash and cash equivalents at beginning of period		20,795			37,787
Cash and cash equivalents at end of period	$	22,428			15,659
Free Cash Flow (1)	$	8,811			12,467		(2)

(1)  Free Cash Flow reconciliation is as follows:
		FY 2018			FY 2017
A)	Net cash provided by operating activities	$	21,469			24,712
B)	Minus:  Capital Expenditures		(6,657	)		(9,253	)
C)	Minus:  Investment in unconsolidated joint venture		(661	)		(600	)
D)	Minus:  Premium payment on life insurance policy		(18	)		(18	)
E)	Plus: Proceeds from the sale of equipment		6			80
F)	Minus:  Payments on vendor-financed capital expenditures		(3,750	)		(1,050	)
G)	Plus: Proceeds from the sale of long-term investments (Rabbi Trust)		57			-
H)	Minus:  Purchase of long-term investments (Rabbi Trust)		(1,699	)		(1,431	)
I)	Effects of exchange rate changes on cash and cash equivalents		64			27
		$	8,811			12,467

(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 nine months ended January 29, 2017 to conform to the current year's presentation. As a result, our net cash provided by operating activities increased by $475 which was fully offset by a corresponding increase of $475 to  our net cash used in financing activities. Additionally, our free cash flow increased $280.

Page 6 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
STATEMENTS OF OPERATIONS BY SEGMENT
FOR THE THREE MONTHS ENDED JANUARY 28, 2018 AND JANUARY 29, 2017
(Unaudited)
(Amounts in thousands)
	THREE MONTHS ENDED
	Amounts									Percent of Total Sales
	January 28,			January 29,			% Over			January 28,		January 29,
Net Sales by Segment	2018			2017			(Under)			2018		2017
Mattress Fabrics	$	49,042			45,920			6.8	%	57.5	%		60.3	%
Upholstery Fabrics		36,268			30,249			19.9	%	42.5	%		39.7	%
Net Sales	$	85,310			76,169			12.0	%	100.0	%		100.0	%
Gross Profit by Segment										Gross Profit Margin
Mattress Fabrics	$	10,146			9,758			4.0	%	20.7	%		21.3	%
Upholstery Fabrics		7,457			7,001			6.5	%	20.6	%		23.1	%
Gross Profit	$	17,603			16,759			5.0	%	20.6	%		22.0	%
Selling, General and Administrative Expenses  by Segment										Percent of Sales
Mattress Fabrics	$	3,309			3,391			(2.4	)%	6.7	%		7.4	%
Upholstery Fabrics		3,947			3,901			1.2	%	10.9	%		12.9	%
Unallocated Corporate expenses		2,703			2,532			6.8	%	3.2	%		3.3	%
Selling, General and Administrative Expenses	$	9,959			9,824			1.4	%	11.7	%		12.9	%
Operating Income (loss) by Segment										Operating Income (Loss) Margin
Mattress Fabrics	$	6,837			6,367			7.4	%	13.9	%		13.9	%
Upholstery Fabrics		3,510			3,100			13.2	%	9.7	%		10.2	%
Unallocated corporate expenses		(2,703	)		(2,532	)		6.8	%	(3.2	)%		(3.3	)%
Operating income	$	7,644			6,935			10.2	%	9.0	%		9.1	%
Depreciation by Segment
Mattress Fabrics	$	1,757			1,573			11.7	%
Upholstery Fabrics		209			220			(5.0	)%
Depreciation	$	1,966			1,793			9.6	%

Page 7 to 10

CULP, INC. FINANCIAL INFORMATION RELEASE
STATEMENTS OF OPERATIONS BY SEGMENT
FOR THE NINE MONTHS ENDED JANUARY 28, 2018 AND JANUARY 29, 2017
(Unaudited)
(Amounts in thousands)
	NINE MONTHS ENDED
	Amounts									Percent of Total Sales
	January 28,			January 29,			% Over			January 28,		January 29,
Net Sales by Segment	2018			2017			(Under)			2018		2017
Mattress Fabrics	$	146,072			141,977			2.9	%	59.5	%		61.1	%
Upholstery Fabrics		99,469			90,217			10.3	%	40.5	%		38.9	%
Net Sales	$	245,541			232,194			5.7	%	100.0	%		100.0	%
Gross Profit by Segment										Gross Profit Margin
Mattress Fabrics	$	29,641			32,414			(8.6	)%	20.3	%		22.8	%
Upholstery Fabrics		20,232			19,665			2.9	%	20.3	%		21.8	%
Gross Profit	$	49,873			52,079			(4.2	)%	20.3	%		22.4	%
Selling, General and Administrative Expenses  by Segment										Percent of Sales
Mattress Fabrics	$	9,868			10,185			(3.1	)%	6.8	%		7.2	%
Upholstery Fabrics		11,458			11,086			3.4	%	11.5	%		12.3	%
Unallocated Corporate expenses		7,550			7,900			(4.4	)%	3.1	%		3.4	%
Selling, General, and Administrative Expenses	$	28,876			29,171			(1.0	)%	11.8	%		12.6	%
Operating Income (loss)  by Segment										Operating Income (Loss) Margin
Mattress Fabrics	$	19,774			22,229			(11.0	)%	13.5	%		15.7	%
Upholstery Fabrics		8,773			8,579			2.3	%	8.8	%		9.5	%
Unallocated corporate expenses		(7,550	)		(7,900	)		(4.4	)%	(3.1	)%		(3.4	)%
Operating income	$	20,997			22,908			(8.3	)%	8.6	%		9.9	%
Return on Capital (1)
Mattress Fabrics		30.1	%		38.5	%
Upholstery Fabrics		63.3	%		64.6	%
Unallocated Corporate		N/A			N/A
Consolidated		26.3	%		32.4	%
Capital Employed (2)
Mattress Fabrics	$	88,268			80,656			9.4	%
Upholstery Fabrics		20,677			18,420			12.3	%
Unallocated Corporate		220			(1,288	)		N/A
Consolidated	$	109,165			97,788			11.6	%
Depreciation by Segment
Mattress Fabrics	$	5,068			4,673			8.5	%
Upholstery Fabrics		611			631			(3.2	)%
Depreciation	$	5,679			5,304			7.1	%

Notes:

(1) See pages 9 and 10 of this financial information release for calculations.

(2) The capital employed balances are as of January 28, 2018 and January 29, 2017.

Page 8 of 10

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA
FOR THE TWELVE MONTHS ENDED JANUARY 28, 2018 AND JANUARY 29, 2017
(UNAUDITED)
(AMOUNTS IN THOUSANDS)
		Quarter Ended
														Trailing 12
														Months
		4/30/2017			7/30/2017			10/29/2017			1/28/2018			1/28/2018
Net income (loss)	$	6,198		$	4,984		$	3,976		$	(748	)	$	14,410
Income taxes		778			1,640			2,108			8,208			12,734
Interest income, net		(134	)		(131	)		(91	)		(101	)		(457	)
Depreciation and amortization expense		1,863			1,889			1,990			2,048			7,790
Stock based compensation		739			757			801			864			3,161
Adjusted EBITDA	$	9,444		$	9,139		$	8,784		$	10,271		$	37,638
		Quarter Ended
														Trailing 12
														Months
		5/1/2016			7/31/2016			10/30/2016			1/29/2017			1/29/2017
Net income	$	3,601		$	5,313		$	4,475		$	6,347		$	19,736
Income taxes		3,566			3,233			2,684			643			10,126
Interest income, net		(26	)		(25	)		(15	)		(124	)		(190	)
Depreciation and amortization expense		1,830			1,813			1,778			1,875			7,296
Stock based compensation		778			761			896			962			3,397
Adjusted EBITDA	$	9,749		$	11,095		$	9,818		$	9,703		$	40,365
% Over (Under)		-3.1	%		-17.6	%		-10.5	%		5.9	%		-6.8	%

Page 9 of 10

	CULP, INC. FINANCIAL INFORMATION RELEASE
	RETURN ON CAPITAL EMPLOYED BY SEGMENT
	FOR THE NINE MONTHS ENDED JANUARY 28, 2018
	(Amounts in Thousands)
	(Unaudited)
	Operating Income
	Nine Months				Average			Return on
	Ended				Capital			Avg. Capital
	January 28, 2018 (1)				Employed (3)			Employed (2)
Mattress Fabrics		$	19,774			$	87,723		30.1	%
Upholstery Fabrics			8,773				18,485		63.3	%
(less: Unallocated Corporate)			(7,550	)			89		N/A
Total		$	20,997			$	106,297		26.3	%

Average Capital Employed	As of the three Months Ended January 28, 2018												As of the three Months Ended October 29, 2017												As of the three Months Ended July 30, 2017
	Mattress			Upholstery			Unallocated						Mattress			Upholstery			Unallocated						Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total			Fabrics			Fabrics			Corporate			Total			Fabrics			Fabrics			Corporate			Total
Total assets	$	106,686			43,458			66,700			216,844		$	107,517			34,974			58,552			201,043		$	112,112			34,491			61,301			207,904
Total liabilities		(18,418	)		(22,781	)		(23,463	)		(64,662	)		(16,150	)		(17,225	)		(14,588	)		(47,963	)		(24,277	)		(14,983	)		(18,967	)		(58,227	)
Subtotal	$	88,268		$	20,677		$	43,237		$	152,182		$	91,367		$	17,749		$	43,964		$	153,080		$	87,835		$	19,508		$	42,334		$	149,677
Less:
Cash and cash equivalents		-			-			(22,428	)		(22,428	)		-			-			(15,739	)		(15,739	)		-			-			(18,322	)		(18,322	)
Short-term investments - Available-For-Sale		-			-			(2,472	)		(2,472	)		-			-			(2,478	)		(2,478	)		-			-			(2,469	)		(2,469	)
Short-term investments - Held-To-Maturity		-			-			(17,206	)		(17,206	)		-			-			(4,015	)		(4,015	)		-			-			-			-
Long-term investments - Held-To-Maturity		-			-			(13,625	)		(13,625	)		-			-			(26,853	)		(26,853	)		-			-			(30,907	)		(30,907	)
Long-term investments - Rabbi Trust		-			-			(7,176	)		(7,176	)		-			-			(6,921	)		(6,921	)		-			-			(6,714	)		(6,714	)
Deferred income taxes - non-current		-			-			(1,942	)		(1,942	)		-			-			(491	)		(491	)		-			-			(436	)		(436	)
Income taxes payable - current		-			-			1,580			1,580			-			-			692			692			-			-			884			884
Income taxes payable - long-term		-			-			10,940			10,940			-			-			487			487			-			-			487			487
Deferred income taxes - non-current		-			-			2,096			2,096			-			-			4,641			4,641			-			-			4,253			4,253
Line of credit		-			-			-			-			-			-			-			-			-			-			5,000			5,000
Deferred compensation		-			-			7,216			7,216			-			-			6,970			6,970			-			-			6,769			6,769
Total Capital Employed	$	88,268		$	20,677		$	220		$	109,165		$	91,367		$	17,749		$	257		$	109,373		$	87,835		$	19,508		$	879		$	108,222

	As of the three Months Ended April 30, 2017
	Mattress			Upholstery			Unallocated
	Fabrics			Fabrics			Corporate			Total
Total assets	$	111,041			32,255			62,338			205,634
Total liabilities		(27,619	)		(16,249	)		(13,136	)		(57,004	)
Subtotal	$	83,422		$	16,006		$	49,202		$	148,630
Less:
Cash and cash equivalents		-			-			(20,795	)		(20,795	)
Short-term investments - Available-For-Sale		-			-			(2,443	)		(2,443	)
Short-term investments - Held-To-Maturity		-			-			-			-
Long-term investments - Held-To-Maturity		-			-			(30,945	)		(30,945	)
Long-term investments - Rabbi Trust		-			-			(5,466	)		(5,466	)
Deferred income taxes - non-current		-			-			(419	)		(419	)
Income taxes payable - current		-			-			287			287
Income taxes payable - long-term		-			-			467			467
Deferred income taxes - non-current		-			-			3,593			3,593
Line of credit		-			-			-			-
Deferred compensation		-			-			5,520			5,520
Total Capital Employed	$	83,422		$	16,006		$	(999	)	$	98,429
		Mattress			Upholstery			Unallocated
		Fabrics			Fabrics			Corporate			Total
Average Capital Employed (3)	$	87,723		$	18,485		$	89		$	106,297

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 28, 2018 divided by three quarters 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 - Available- For-Sale, short-term investments - Held-To-Maturity, 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 quarterly four periods ending January 28, 2018, October 29, 2017, July 30, 2017 and April 30, 2017.

Page 10 of 10

	CULP, INC. FINANCIAL INFORMATION RELEASE
	RETURN ON CAPITAL EMPLOYED BY SEGMENT
	FOR THE NINE MONTHS ENDED JANUARY 29, 2017
	(Amounts in Thousands)
	(Unaudited)
	Operating Income
	Nine Months				Average				Return on
	Ended				Capital				Avg. Capital
	January 29, 2017 (1)				Employed (3)				Employed (2)
Mattress Fabrics		$	22,229			$	77,035			38.5	%
Upholstery Fabrics			8,579				17,712			64.6	%
(less: Unallocated Corporate)			(7,900	)			(536	)		N/A
Total		$	22,908			$	94,211			32.4	%

Average Capital Employed	As of the three Months Ended January 29, 2017																As of the three Months Ended October 30, 2016												As of the three Months Ended July 31, 2016
	Mattress			Upholstery				Unallocated									Mattress			Upholstery			Unallocated						Mattress			Upholstery			Unallocated
	Fabrics			Fabrics				Corporate				Total					Fabrics			Fabrics			Corporate			Total			Fabrics			Fabrics			Corporate			Total
Total assets	$	103,782			$	30,380			$	56,894			$	191,056			$	94,700		$	29,361		$	55,066		$	179,127		$	92,959		$	33,550		$	56,851		$	183,360
Total liabilities		(23,126	)			(11,960	)			(13,656	)			(48,742	)			(18,499	)		(11,180	)		(13,499	)		(43,178	)		(16,313	)		(16,329	)		(19,283	)		(51,925	)
Subtotal	$	80,656			$	18,420			$	43,238			$	142,314		��	$	76,201		$	18,181		$	41,567		$	135,949		$	76,646		$	17,221		$	37,568		$	131,435
Less:
Cash and cash equivalents		-				-				(15,659	)			(15,659	)			-			-			(13,910	)		(13,910	)		-			-			(45,549	)		(45,549	)
Short-term investments - Available For Sale		-				-				(2,410	)			(2,410	)			-			-			(2,430	)		(2,430	)		-			-			(2,434	)		(2,434	)
Long-term investments - Held-To-Maturity		-				-				(30,832	)			(30,832	)			-			-			(31,050	)		(31,050	)		-			-			-			-
Long-term investments - Rabbi Trust		-				-				(5,488	)			(5,488	)			-			-			(4,994	)		(4,994	)		-			-			(4,611	)		(4,611	)
Income taxes receivable		-				-				-				-				-			-			-			-			-			-			-			-
Deferred income taxes - non-current		-				-				(422	)			(422	)			-			-			(581	)		(581	)		-			-			(1,942	)		(1,942	)
Income taxes payable - current		-				-				217				217				-			-			513			513			-			-			358			358
Income taxes payable - long-term		-				-				1,817				1,817				-			-			3,734			3,734			-			-			3,779			3,779
Deferred income taxes - non-current		-				-				2,924				2,924				-			-			1,699			1,699			-			-			1,532			1,532
Line of credit		-				-				-				-				-			-			-			-			-			-			7,000			7,000
Deferred compensation		-				-				5,327				5,327				-			-			5,171			5,171			-			-			5,031			5,031
Total Capital Employed	$	80,656			$	18,420			$	(1,288	)		$	97,788			$	76,201		$	18,181		$	(281	)	$	94,101		$	76,646		$	17,221		$	732		$	94,599

	As of the three Months Ended May 1, 2016
	Mattress			Upholstery				Unallocated
	Fabrics			Fabrics				Corporate				Total
Total assets	$	94,878			$	29,463		$	50,801		$	175,142
Total liabilities		(20,241	)			(12,438	)		(13,651	)		(46,330	)
Subtotal	$	74,637			$	17,025		$	37,150		$	128,812
Less:
Cash and cash equivalents		-				-			(37,787	)		(37,787	)
Short-term investments - Available For Sale		-				-			(4,359	)		(4,359	)
Long-term investments - Held-To-Maturity		-				-			-			-
Long-term investments - Rabbi Trust		-				-			(4,025	)		(4,025	)
Income taxes receivable		-				-			(155	)		(155	)	��
Deferred income taxes - non-current		-				-			(2,319	)		(2,319	)
Income taxes payable - current		-				-			180			180
Income taxes payable - long-term		-				-			3,841			3,841
Deferred income taxes - non-current		-				-			1,483			1,483
Line of credit		-				-			-			-
Deferred compensation		-				-			4,686			4,686
Total Capital Employed	$	74,637			$	17,025		$	(1,305	)	$	90,357
	Mattress			Upholstery				Unallocated
	Fabrics			Fabrics				Corporate				Total
Average Capital Employed (3)	$	77,035			$	17,712		$	(536	)	$	94,211

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 29, 2017 divided by three quarters 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 - Available-For-Sale, long-term investments - Held-To-Maturity, long-term investments - Rabbi Trust, 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 four periods ending January 29, 2017, October 30, 2016, July 31, 2016 and May 1, 2016.