Exhibit 99(b)
Page 1 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF NET INCOME
FOR THREE MONTHS ENDED AUGUST 4, 2019 AND JULY 29, 2018
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
THREE MONTHS ENDED | ||||||||||||||||||||
(2) | Amounts | (2) | Percent of Sales | |||||||||||||||||
August 4, | July 29, | % Over | August 4, | July 29, | ||||||||||||||||
2019 | 2018 | (Under) | 2019 | 2018 | ||||||||||||||||
Net sales | $ | 74,847 | 71,473 | 4.7 | % | 100.0 | % | 100.0 | % | |||||||||||
Cost of sales | 61,482 | 60,914 | (1)(2) | 0.9 | % | 82.1 | % | 85.2 | % | |||||||||||
Gross profit | 13,365 | 10,559 | 26.6 | % | 17.9 | % | 14.8 | % | ||||||||||||
Selling, general and | ||||||||||||||||||||
administrative expenses | 10,711 | 8,033 | 33.3 | % | 14.3 | % | 11.2 | % | ||||||||||||
Restructuring (credit) expense | (35 | ) | (2) | 451 | (2) | (107.8 | )% | (0.0 | )% | 0.6 | % | |||||||||
Income from operations | 2,689 | 2,075 | 29.6 | % | 3.6 | % | 2.9 | % | ||||||||||||
Interest expense | 9 | 20 | (55.0 | )% | 0.0 | % | 0.0 | % | ||||||||||||
Interest income | (249 | ) | (150 | ) | 66.0 | % | (0.3 | )% | (0.2 | )% | ||||||||||
Other expense | 87 | 257 | (66.1 | )% | 0.1 | % | 0.4 | % | ||||||||||||
Income before income taxes | 2,842 | 1,948 | 45.9 | % | 3.8 | % | 2.7 | % | ||||||||||||
Income tax expense * | 1,681 | 906 | 85.5 | % | 59.1 | % | 46.5 | % | ||||||||||||
(Income) loss from investment in unconsolidated joint venture | (13 | ) | 77 | (116.9 | )% | (0.0 | )% | 0.1 | % | |||||||||||
Net income | 1,174 | 965 | 21.7 | % | 1.6 | % | 1.4 | % | ||||||||||||
Net loss (income) attributable to non-controlling interest | 164 | (8 | ) | N.M. | 0.2 | % | (0.0 | )% | ||||||||||||
Net income attributable to Culp Inc. common shareholders | $ | 1,338 | 957 | 39.8 | % | 1.8 | % | 1.3 | % | |||||||||||
Net income attributable to Culp Inc. common shareholders per share - basic | $ | 0.11 | $ | 0.08 | 37.5 | % | ||||||||||||||
Net income attributable to Culp Inc. common shareholders per share - diluted | $ | 0.11 | $ | 0.08 | 37.5 | % | ||||||||||||||
Average shares outstanding-basic | 12,399 | 12,510 | (0.9 | )% | ||||||||||||||||
Average shares outstanding-diluted | 12,410 | 12,600 | (1.5 | )% |
* Percent of sales column for income taxes is calculated as a % of income before income taxes.
Notes
(1) | Cost of sales for the three-month period ending July 29, 2018 includes a $1.6 million restructuring related charge for inventory markdowns. |
(2) | See page 6 for our Reconciliation of Selected Income Statement Information to Adjusted Results for the three-month periods August 4, 2019 and July 29, 2018, that exclude the adjustments related to our recent restructuring activities. |
Page 2 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS
AUGUST 4, 2019, JULY 29, 2018, AND APRIL 28, 2019
Unaudited
(Amounts in Thousands)
Amounts | ||||||||||||||||||||
(Condensed) | Increase | |||||||||||||||||||
August 4, | July 29, | (Decrease) | * April 28, | |||||||||||||||||
2019 | 2018 | Dollars | Percent | 2019 | ||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 44,236 | 8,593 | 35,643 | 414.8 | % | 40,008 | |||||||||||||
Short-term investments - Held-To-Maturity | - | 30,756 | (30,756 | ) | (100.0 | )% | 5,001 | |||||||||||||
Accounts receivable | 24,090 | 23,225 | 865 | 3.7 | % | 23,751 | ||||||||||||||
Inventories | 50,660 | 54,989 | (4,329 | ) | (7.9 | )% | 50,860 | |||||||||||||
Current income taxes receivable | 776 | - | 776 | 100.0 | % | 776 | ||||||||||||||
Assets held for sale | 100 | - | 100 | 100.0 | % | - | ||||||||||||||
Other current assets | 2,578 | 3,852 | (1,274 | ) | (33.1 | )% | 2,849 | |||||||||||||
Total current assets | 122,440 | 121,415 | 1,025 | 0.8 | % | 123,245 | ||||||||||||||
Property, plant & equipment, net | 47,289 | 53,178 | (5,889 | ) | (11.1 | )% | 48,389 | |||||||||||||
Goodwill | 27,222 | 27,222 | - | 0.0 | % | 27,222 | ||||||||||||||
Intangible assets | 10,354 | 10,730 | (376 | ) | (3.5 | )% | 10,448 | |||||||||||||
Long-term investments - Rabbi Trust | 7,347 | 7,671 | (324 | ) | (4.2 | )% | 7,081 | |||||||||||||
Right of use assets | 6,530 | - | 6,530 | 100.0 | % | - | ||||||||||||||
Noncurrent income taxes receivable | 733 | - | 733 | 100.0 | % | 733 | ||||||||||||||
Deferred income taxes | 486 | 3,721 | (3,235 | ) | (86.9 | )% | 457 | |||||||||||||
Investment in unconsolidated joint venture | 1,520 | 1,525 | (5 | ) | (0.3 | )% | 1,508 | |||||||||||||
Other assets | 526 | 910 | (384 | ) | (42.2 | )% | 643 | |||||||||||||
Total assets | $ | 224,447 | 226,372 | (1,925 | ) | (0.9 | )% | 219,726 | ||||||||||||
Current liabilities | ||||||||||||||||||||
Accounts payable - trade | $ | 22,628 | 25,070 | (2,442 | ) | (9.7 | )% | 24,377 | ||||||||||||
Accounts payable - capital expenditures | 60 | 862 | (802 | ) | (93.0 | )% | 78 | |||||||||||||
Operating lease liability - current | 2,456 | - | 2,456 | 100.0 | % | - | ||||||||||||||
Deferred revenue | 684 | 634 | 50 | 7.9 | % | 399 | ||||||||||||||
Accrued expenses | 8,566 | 8,176 | 390 | 4.8 | % | 9,192 | ||||||||||||||
Accrued restructuring costs | 42 | 445 | (403 | ) | (90.6 | )% | 124 | |||||||||||||
Income taxes payable - current | 1,116 | 1,244 | (128 | ) | (10.3 | )% | 1,022 | |||||||||||||
Total current liabilities | 35,552 | 36,431 | (879 | ) | (2.4 | )% | 35,192 | |||||||||||||
Line of credit | - | 4,000 | (4,000 | ) | (100.0 | )% | - | |||||||||||||
Accrued expenses - long-term | 333 | 749 | (416 | ) | (55.5 | )% | 333 | |||||||||||||
Subordinated loan payable | 925 | - | 925 | 100.0 | % | 675 | ||||||||||||||
Operating lease liability - long-term | 3,955 | - | 3,955 | 100.0 | % | - | ||||||||||||||
Contingent consideration - Earn-Out Obligation | 5,931 | 5,600 | 331 | 5.9 | % | 5,856 | ||||||||||||||
Income taxes payable - long-term | 3,640 | 3,733 | (93 | ) | (2.5 | )% | 3,249 | |||||||||||||
Deferred income taxes | 2,543 | 2,150 | 393 | 18.3 | % | 3,176 | ||||||||||||||
Deferred compensation | 7,232 | 7,679 | (447 | ) | (5.8 | )% | 6,998 | |||||||||||||
Total liabilities | 60,111 | 60,342 | (231 | ) | (0.4 | )% | 55,479 | |||||||||||||
Shareholders' equity | ||||||||||||||||||||
Shareholders' equity attributable to Culp Inc. | 160,146 | 161,490 | (1,344 | ) | (0.8 | )% | 159,933 | |||||||||||||
Non-controlling interest | 4,190 | 4,540 | (350 | ) | (7.7 | )% | 4,314 | |||||||||||||
164,336 | 166,030 | (1,694 | ) | (1.0 | )% | 164,247 | ||||||||||||||
Total liabilities and | ||||||||||||||||||||
shareholders' equity | $ | 224,447 | 226,372 | (1,925 | ) | (0.9 | )% | 219,726 | ||||||||||||
Shares outstanding | 12,405 | 12,522 | (117 | ) | (0.9 | )% | 12,391 |
* Derived from audited financial statements.
Page 3 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE
SUMMARY OF CASH AND INVESTMENTS
AUGUST 4, 2019 , JULY 29, 2018 AND APRIL 28, 2019
Unaudited
(Amounts in Thousands)
Amounts | ||||||||||||
August 4, | July 29, | April 28, | ||||||||||
2019 | 2018 | 2019* | ||||||||||
Cash and cash equivalents | $ | 44,236 | $ | 8,593 | $ | 40,008 | ||||||
Short-term investments - Held-To-Maturity | - | 30,756 | 5,001 | |||||||||
Total Cash and Investments | $ | 44,236 | $ | 39,349 | $ | 45,009 |
* Derived from audited financial statements.
Page 4 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED AUGUST 4, 2019 AND JULY 29, 2018
Unaudited
(Amounts in Thousands)
THREE MONTHS ENDED | ||||||||
Amounts | ||||||||
August 4, | July 29, | |||||||
2019 | 2018 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 1,174 | 965 | |||||
Adjustments to reconcile net income to net cash | ||||||||
provided by (used in) operating activities: | ||||||||
Depreciation | 1,905 | 2,015 | ||||||
Amortization | 176 | 145 | ||||||
Stock-based compensation | 154 | (501 | ) | |||||
Deferred income taxes | (662 | ) | (2,263 | ) | ||||
Realized loss on sale of short-term investments (Available for Sale) | - | 94 | ||||||
(Gain) loss on sale of property, plant, and equipment | (17 | ) | 35 | |||||
(Income) loss from investment in unconsolidated joint venture | (13 | ) | 77 | |||||
Foreign currency exchange gain | (47 | ) | (91 | ) | ||||
Changes in assets and liabilities, net of effects of acquisition of businesses: | ||||||||
Accounts receivable | (375 | ) | 2,837 | |||||
Inventories | (25 | ) | (429 | ) | ||||
Other current assets | 161 | (989 | ) | |||||
Other assets | 111 | 34 | ||||||
Accounts payable | (1,468 | ) | (2,494 | ) | ||||
Deferred revenue | 285 | (175 | ) | |||||
Accrued expenses and deferred compensation | 222 | (1,566 | ) | |||||
Accrued restructuring costs | (82 | ) | 445 | |||||
Income taxes | 524 | (75 | ) | |||||
Net cash provided by (used in) operating activities | 2,023 | (1,936 | ) | |||||
Cash flows from investing activities: | ||||||||
Net cash paid for acquisition of businesses | - | (11,971 | ) | |||||
Capital expenditures | (935 | ) | (757 | ) | ||||
Proceeds from the sale of property, plant, and equipment | 209 | - | ||||||
Investment in unconsolidated joint venture | - | (100 | ) | |||||
Proceeds from the sale of short-term investments (Held to Maturity) | 5,000 | - | ||||||
Proceeds from the sale of short-term investments (Available for Sale) | - | 2,458 | ||||||
Purchase of short-term investments (Available for Sale) | - | (10 | ) | |||||
Purchase of long-term investments (Rabbi Trust) | (259 | ) | (302 | ) | ||||
Net cash provided by (used in) investing activities | 4,015 | (10,682 | ) | |||||
Cash flows from financing activities: | ||||||||
Proceeds from line of credit | - | 11,000 | ||||||
Payments on line of credit | - | (7,000 | ) | |||||
Payments on vendor-financed capital expenditures | - | (1,412 | ) | |||||
Proceeds from subordinated loan payable | 250 | - | ||||||
Cash paid for acquisition of business | (763 | ) | - | |||||
Dividends paid | (1,241 | ) | (1,127 | ) | ||||
Common stock surrendered for withholding taxes payable | (44 | ) | (1,292 | ) | ||||
Capital contribution from non-controlling interest | 40 | - | ||||||
Common stock repurchased | - | (72 | ) | |||||
Net cash (used in) provided by financing activities | (1,758 | ) | 97 | |||||
Effect of exchange rate changes on cash and cash equivalents | (52 | ) | (114 | ) | ||||
Increase (decrease) in cash and cash equivalents | 4,228 | (12,635 | ) | |||||
Cash and cash equivalents at beginning of period | 40,008 | 21,228 | ||||||
Cash and cash equivalents at end of period | $ | 44,236 | 8,593 | |||||
Free Cash Flow (1) | $ | 986 | (4,621 | ) | ||||
(1) Free Cash Flow reconciliation is as follows: | ||||||||
FY 2020 | FY 2019 | |||||||
A) Net cash provided by (used in) operating activities | $ | 2,023 | (1,936 | ) | ||||
B) Minus: Capital Expenditures | (935 | ) | (757 | ) | ||||
C) Plus: Proceeds from the sale of property, plant, and equipment | 209 | - | ||||||
D) Minus: Investment in unconsolidated joint venture | - | (100 | ) | |||||
E) Minus: Payments on vendor-financed capital expenditures | - | (1,412 | ) | |||||
F) Minus: Purchase of long-term investments (Rabbi Trust) | (259 | ) | (302 | ) | ||||
G) Effects of exchange rate changes on cash and cash equivalents | (52 | ) | (114 | ) | ||||
Free Cash Flow | $ | 986 | (4,621 | ) | ||||
Page 5 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE
STATEMENTS OF OPERATIONS BY SEGMENT
STATEMENTS OF OPERATIONS BY SEGMENT
FOR THE THREE MONTHS ENDED AUGUST 4, 2019 AND JULY 29, 2018
(Unaudited)
(Amounts in thousands)
THREE MONTHS ENDED | ||||||||||||||||||||
Amounts | Percent of Total Sales | |||||||||||||||||||
August 4, | July 29, | % Over | August 4, | July 29, | ||||||||||||||||
Net Sales by Segment | 2019 | 2018 | (Under) | 2019 | 2018 | |||||||||||||||
Mattress Fabrics | $ | 38,685 | 34,398 | 12.5 | % | 51.7 | % | 48.1 | % | |||||||||||
Upholstery Fabrics | 31,860 | 34,490 | (7.6 | )% | 42.6 | % | 48.3 | % | ||||||||||||
Home Accessories | 4,302 | 2,585 | 66.4 | % | 5.7 | % | 3.6 | % | ||||||||||||
Net Sales | $ | 74,847 | 71,473 | 4.7 | % | 100.0 | % | 100.0 | % | |||||||||||
Gross Profit by Segment | Gross Profit Margin | |||||||||||||||||||
�� | ||||||||||||||||||||
Mattress Fabrics | $ | 5,691 | 5,302 | 7.3 | % | 14.7 | % | 15.4 | % | |||||||||||
Upholstery Fabrics | 6,721 | 6,153 | 9.2 | % | 21.1 | % | 17.8 | % | ||||||||||||
Home Accessories | 953 | 669 | 42.5 | % | 22.2 | % | 25.9 | % | ||||||||||||
Subtotal | 13,365 | 12,124 | 10.2 | % | 17.9 | % | 17.0 | % | ||||||||||||
Restructuring related charges | - | (1,565 | ) | (1) | (100.0 | )% | 0.0 | % | (2.2 | )% | ||||||||||
Gross Profit | 13,365 | 10,559 | 26.6 | % | 17.9 | % | 14.8 | % | ||||||||||||
Selling, General and Administrative Expenses by Segment | Percent of Sales | |||||||||||||||||||
Mattress Fabrics | $ | 3,071 | 2,512 | 22.3 | % | 7.9 | % | 7.3 | % | |||||||||||
Upholstery Fabrics | 3,846 | 3,626 | 6.1 | % | 12.1 | % | 10.5 | % | ||||||||||||
Home Accessories | 1,488 | 636 | 134.0 | % | 34.6 | % | 24.6 | % | ||||||||||||
Unallocated Corporate expenses | 2,306 | 1,259 | 83.2 | % | 3.1 | % | 1.8 | % | ||||||||||||
Selling, General and Administrative Expenses | $ | 10,711 | 8,033 | 33.3 | % | 14.3 | % | 11.2 | % | |||||||||||
Operating Income (loss) by Segment | Operating Income (Loss) Margin | |||||||||||||||||||
Mattress Fabrics | $ | 2,620 | 2,790 | (6.1 | )% | 6.8 | % | 8.1 | % | |||||||||||
Upholstery Fabrics | 2,875 | 2,527 | 13.8 | % | 9.0 | % | 7.3 | % | ||||||||||||
Home Accessories | (535 | ) | 33 | N.M. | (12.4 | )% | 1.3 | % | ||||||||||||
Unallocated corporate expenses | (2,306 | ) | (1,259 | ) | 83.2 | % | (3.1 | )% | (1.8 | )% | ||||||||||
Subtotal | $ | 2,654 | 4,091 | (35.1 | )% | 3.5 | % | 5.7 | % | |||||||||||
Restructuring credit (expense) and related charges | 35 | (2,016 | ) | (1) | (101.7 | )% | 0.0 | % | (2.8 | )% | ||||||||||
Operating income | 2,689 | 2,075 | 29.6 | % | 3.6 | % | 2.9 | % | ||||||||||||
Return on Capital (2) | ||||||||||||||||||||
Mattress Fabrics | 15.2 | % | 28.8 | % | ||||||||||||||||
Upholstery Fabrics | 57.3 | % | 53.7 | % | ||||||||||||||||
Home Accessories | N.M. | N.M. | ||||||||||||||||||
Unallocated Corporate | N.M. | N.M. | ||||||||||||||||||
Consolidated | 10.4 | % | 21.4 | % | ||||||||||||||||
Capital Employed (2) (3) | ||||||||||||||||||||
Mattress Fabrics | $ | 71,202 | 80,718 | (11.8 | )% | |||||||||||||||
Upholstery Fabrics | 20,104 | 19,506 | 3.1 | % | ||||||||||||||||
Home Accessories | 4,113 | 2,753 | 49.4 | % | ||||||||||||||||
Unallocated Corporate | 30,795 | 31,118 | (1.0 | )% | ||||||||||||||||
Consolidated | $ | 126,214 | 134,095 | (5.9 | )% | |||||||||||||||
Depreciation Expense by Segment | ||||||||||||||||||||
Mattress Fabrics | $ | 1,620 | 1,762 | (8.1 | )% | |||||||||||||||
Upholstery Fabrics | 190 | 215 | (11.6 | )% | ||||||||||||||||
Home Accessories | 95 | 38 | 150.0 | % | ||||||||||||||||
Depreciation Expense | $ | 1,905 | 2,015 | (5.5 | )% |
Notes
(1) | See page 6 for our Reconciliation of Selected Income Statement Information to Adjusted Results for the three-month periods August 4, 2019 and July 29, 2018, that exclude the adjustments related to our recent restructuring activities. |
(2) | See pages 8 and 9 of this financial information release for calculations. |
(3) | The capital employed balances are as of August 4, 2019 and July 29, 2018. |
Page 6 of 10
CULP, INC.
RECONCILIATION OF SELECTED INCOME STATEMENT INFORMATION TO ADJUSTED RESULTS
FOR THE THREE MONTHS ENDED AUGUST 4, 2019 AND JULY 29, 2018
THREE MONTHS ENDED (UNAUDITED) | ||||||||||||||||||||||||||||||||||||||||||||||
As Reported | August 4, 2019 | As Reported | July 29, 2018 | |||||||||||||||||||||||||||||||||||||||||||
August 4, | % of | Adjusted | % of | July 29, | % of | Adjusted | % of | % Over | ||||||||||||||||||||||||||||||||||||||
2019 | Sales | Adjustments | Results | Sales | 2018 | Sales | Adjustments | Results | Sales | (Under) | ||||||||||||||||||||||||||||||||||||
Net sales | $ | 74,847 | 100.0 | % | - | 74,847 | 100.0 | % | 71,473 | 100.0 | % | - | 71,473 | 100.0 | % | 4.7 | % | |||||||||||||||||||||||||||||
Cost of sales | 61,482 | 82.1 | % | - | 61,482 | 82.1 | % | 60,914 | 85.2 | % | (1,565 | ) | (2) | 59,349 | 83.0 | % | 3.6 | % | ||||||||||||||||||||||||||||
Gross Profit | 13,365 | 17.9 | % | - | 13,365 | 17.9 | % | 10,559 | 14.8 | % | (1,565 | ) | 12,124 | 17.0 | % | 10.2 | % | |||||||||||||||||||||||||||||
Selling, general and | ||||||||||||||||||||||||||||||||||||||||||||||
administrative expenses | 10,711 | 14.3 | % | - | 10,711 | 14.3 | % | 8,033 | 11.2 | % | - | 8,033 | 11.2 | % | 33.3 | % | ||||||||||||||||||||||||||||||
Restructuring (credit) expense | (35 | ) | 0.0 | % | 35 | (1) | - | 0.0 | % | 451 | 0.6 | % | (451 | ) | (3) | - | 0.0 | % | 0.0 | % | ||||||||||||||||||||||||||
Income from operations | 2,689 | 3.6 | % | 35 | 2,654 | 3.5 | % | 2,075 | 2.9 | % | (2,016 | ) | 4,091 | 5.7 | % | -35.1 | % | |||||||||||||||||||||||||||||
Interest expense | 9 | 0.0 | % | - | 9 | 0.0 | % | 20 | 0.0 | % | - | 20 | 0.0 | % | -55.0 | % | ||||||||||||||||||||||||||||||
Interest income | (249 | ) | -0.3 | % | - | (249 | ) | -0.3 | % | (150 | ) | -0.2 | % | - | (150 | ) | -0.2 | % | 66.0 | % | ||||||||||||||||||||||||||
Other expense | 87 | 0.1 | % | - | 87 | 0.1 | % | 257 | 0.4 | % | - | 257 | 0.4 | % | -66.1 | % | ||||||||||||||||||||||||||||||
Income before income taxes | 2,842 | 3.8 | % | 35 | 2,807 | 3.8 | % | 1,948 | 2.7 | % | (2,016 | ) | 3,964 | 5.5 | % | -29.2 | % |
Notes
(1) | The $35 restructuring credit represents employee termination benefits associated with the closure of our Anderson, SC plant facility. |
(2) | The $1.6 million restructuring related charge represents inventory markdowns associated with the closure of our Anderson, SC plant facility. |
(3) | The $451 restructuring charge represents employee termination benefits associated with the closure of our Anderson, SC plant facility. |
Page 7 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA
FOR THE TWELVE MONTHS ENDED AUGUST 4, 2019 AND JULY 29, 2018
(UNAUDITED)
(AMOUNTS IN THOUSANDS)
Quarter Ended | ||||||||||||||||||||
Trailing 12 | ||||||||||||||||||||
Months | ||||||||||||||||||||
10/28/2018 | 1/27/2019 | 4/28/2019 | 8/4/2019 | 8/4/2019 | ||||||||||||||||
Net income (loss) | $ | 2,944 | $ | 3,060 | $ | (1,511 | ) | $ | 1,174 | $ | 5,667 | |||||||||
Income taxes | 1,276 | 1,225 | 3,017 | 1,681 | 7,199 | |||||||||||||||
Interest income, net | (134 | ) | (251 | ) | (210 | ) | (240 | ) | (835 | ) | ||||||||||
Other non-recurring charges | 249 | 429 | 500 | - | 1,178 | |||||||||||||||
Restructuring expense (credit) and related charges | (791 | ) | 340 | - | (35 | ) | (486 | ) | ||||||||||||
Depreciation and amortization expense | 2,287 | 2,232 | 2,218 | 2,081 | 8,818 | |||||||||||||||
Stock based compensation | 395 | 479 | (243 | ) | 154 | 785 | ||||||||||||||
Adjusted EBITDA | $ | 6,226 | $ | 7,514 | $ | 3,771 | $ | 4,815 | $ | 22,326 | ||||||||||
% Net Sales | 8.1 | % | 9.7 | % | 5.3 | % | 6.4 | % | 7.4 | % | ||||||||||
Quarter Ended | ||||||||||||||||||||
Trailing 12 | ||||||||||||||||||||
Months | ||||||||||||||||||||
10/29/2017 | 1/28/2018 | 4/29/2018 | 7/29/2018 | 7/29/2018 | ||||||||||||||||
Net income (loss) | $ | 3,976 | $ | (748 | ) | $ | 12,666 | $ | 965 | $ | 16,859 | |||||||||
Income taxes | 2,108 | 8,208 | (6,217 | ) | 906 | 5,005 | ||||||||||||||
Interest income, net | (91 | ) | (101 | ) | (117 | ) | (130 | ) | (439 | ) | ||||||||||
Restructuring expense and related charges | - | - | - | 2,016 | 2,016 | |||||||||||||||
Depreciation and amortization expense | 1,990 | 2,048 | 2,096 | 2,160 | 8,294 | |||||||||||||||
Stock based compensation | 801 | 864 | (210 | ) | (501 | ) | 954 | |||||||||||||
Adjusted EBITDA | $ | 8,784 | $ | 10,271 | $ | 8,218 | $ | 5,416 | $ | 32,689 | ||||||||||
% Net Sales | 10.9 | % | 12.0 | % | 10.5 | % | 7.6 | % | 10.4 | % | ||||||||||
% Over (Under) | -29.1 | % | -26.8 | % | -54.1 | % | -11.1 | % | -31.7 | % |
Page 8 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE
RETURN ON CAPITAL EMPLOYED BY SEGMENT
FOR THE TWELVE MONTHS ENDED AUGUST 4, 2019
(Amounts in Thousands)
(Unaudited)
Operating Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Twelve Months | Average | Return on | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ended | Capital | Avg. Capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
August 4, 2019 (1) | Employed (3) | Employed (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mattress Fabrics | $ | 11,434 | $ | 75,225 | 15.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Upholstery Fabrics | 11,173 | 19,487 | 57.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Accessories | (1,300 | ) | 3,390 | N.M. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(less: Unallocated Corporate) | (7,884 | ) | 31,024 | N.M. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 13,423 | $ | 129,126 | 10.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Capital Employed | As of the three Months Ended August 4, 2019 | As of the three Months Ended April 28, 2019 | As of the three Months Ended January 27, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Home | Unallocated | Mattress | Upholstery | Home | Unallocated | Mattress | Upholstery | Home | Unallocated | |||||||||||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Accessories | Corporate | Total | Fabrics | Fabrics | Accessories | Corporate | Total | Fabrics | Fabrics | Accessories | Corporate | Total | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets (4) | $ | 83,056 | 40,456 | 6,414 | 94,521 | 224,447 | $ | 83,393 | 37,529 | 5,618 | 93,186 | 219,726 | $ | 86,707 | 43,097 | 5,607 | 89,497 | 224,908 | ||||||||||||||||||||||||||||||||||||||||||
Total liabilities (5) | (11,854 | ) | (20,352 | ) | (2,301 | ) | (25,604 | ) | (60,111 | ) | (10,996 | ) | (18,114 | ) | (2,215 | ) | (24,154 | ) | (55,479 | ) | (11,604 | ) | (22,483 | ) | (2,168 | ) | (21,421 | ) | (57,676 | ) | ||||||||||||||||||||||||||||||
Subtotal | $ | 71,202 | $ | 20,104 | $ | 4,113 | $ | 68,917 | $ | 164,336 | $ | 72,397 | $ | 19,415 | $ | 3,403 | $ | 69,032 | $ | 164,247 | $ | 75,103 | $ | 20,614 | $ | 3,439 | $ | 68,076 | $ | 167,232 | ||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | - | (44,236 | ) | (44,236 | ) | - | - | - | (40,008 | ) | (40,008 | ) | - | - | - | (26,418 | ) | (26,418 | ) | |||||||||||||||||||||||||||||||||||||||
Short-term investments - Available-For-Sale | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||
Short-term investments - Held-To-Maturity | - | - | - | - | - | - | - | - | (5,001 | ) | (5,001 | ) | - | - | - | (13,544 | ) | (13,544 | ) | |||||||||||||||||||||||||||||||||||||||||
Current income taxes receivable | - | - | - | (776 | ) | (776 | ) | - | - | - | (776 | ) | (776 | ) | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||
Long-term investments - Held-To-Maturity | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||
Long-term investments - Rabbi Trust | - | - | - | (7,347 | ) | (7,347 | ) | - | - | - | (7,081 | ) | (7,081 | ) | - | - | - | (6,834 | ) | (6,834 | ) | |||||||||||||||||||||||||||||||||||||||
Noncurrent income taxes receivable | - | - | - | (733 | ) | (733 | ) | - | - | - | (733 | ) | (733 | ) | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | - | (486 | ) | (486 | ) | - | - | - | (457 | ) | (457 | ) | - | - | - | (3,224 | ) | (3,224 | ) | |||||||||||||||||||||||||||||||||||||||
Deferred compensation - current | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||
Income taxes payable - current | - | - | - | 1,116 | 1,116 | - | - | - | 1,022 | 1,022 | - | - | - | 642 | 642 | |||||||||||||||||||||||||||||||||||||||||||||
Income taxes payable - long-term | - | - | - | 3,640 | 3,640 | - | - | - | 3,249 | 3,249 | - | - | - | 3,294 | 3,294 | |||||||||||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | - | 2,543 | 2,543 | - | - | - | 3,176 | 3,176 | - | - | - | 2,225 | 2,225 | |||||||||||||||||||||||||||||||||||||||||||||
Line of credit | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||
Subordinated loan payable | - | - | - | 925 | 925 | - | - | - | 675 | 675 | - | - | - | �� | - | - | ||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation - non-current | - | - | - | 7,232 | 7,232 | - | - | - | 6,998 | 6,998 | - | - | - | 6,782 | 6,782 | |||||||||||||||||||||||||||||||||||||||||||||
Total Capital Employed | $ | 71,202 | $ | 20,104 | $ | 4,113 | $ | 30,795 | $ | 126,214 | $ | 72,397 | $ | 19,415 | $ | 3,403 | $ | 30,096 | $ | 125,311 | $ | 75,103 | $ | 20,614 | $ | 3,439 | $ | 30,999 | $ | 130,155 | ||||||||||||||||||||||||||||||
As of the three Months Ended October 28, 2018 | As of the three Months Ended July 29, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Home | Unallocated | Mattress | Upholstery | Home | Unallocated | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Accessories | Corporate | Total | Fabrics | Fabrics | Accessories | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets (4) | $ | 86,494 | 37,442 | 5,203 | 93,072 | 222,211 | $ | 93,601 | 37,386 | 4,463 | 90,922 | 226,372 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities (5) | (9,790 | ) | (19,646 | ) | (1,960 | ) | (23,346 | ) | (54,742 | ) | (12,883 | ) | (17,880 | ) | (1,710 | ) | (27,869 | ) | (60,342 | ) | ||||||||||||||||||||||||||||||||||||||||
Subtotal | $ | 76,704 | $ | 17,796 | $ | 3,243 | $ | 69,726 | $ | 167,469 | $ | 80,718 | $ | 19,506 | $ | 2,753 | $ | 63,053 | $ | 166,030 | ||||||||||||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | - | (14,768 | ) | (14,768 | ) | - | - | - | (8,593 | ) | (8,593 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments - Available-For-Sale | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments - Held-To-Maturity | - | - | - | (26,719 | ) | (26,719 | ) | - | - | - | (30,756 | ) | (30,756 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Current income taxes receivable | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term investments - Held-To-Maturity | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term investments - Rabbi Trust | - | - | - | (7,851 | ) | (7,851 | ) | - | - | - | (7,671 | ) | (7,671 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Noncurrent income taxes receivable | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | - | (3,614 | ) | (3,614 | ) | - | - | - | (3,721 | ) | (3,721 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation - current | - | - | - | 714 | 714 | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes payable - current | - | - | - | 2,044 | 2,044 | - | - | - | 1,244 | 1,244 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes payable - long-term | - | - | - | 3,233 | 3,233 | - | - | - | 3,733 | 3,733 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | - | 2,225 | 2,225 | - | - | - | 2,150 | 2,150 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit | - | - | - | - | - | - | - | - | 4,000 | 4,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subordinated loan payable | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation - non-current | - | - | - | 7,120 | 7,120 | - | - | - | 7,679 | 7,679 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Capital Employed | $ | 76,704 | $ | 17,796 | $ | 3,243 | $ | 32,110 | $ | 129,853 | $ | 80,718 | $ | 19,506 | $ | 2,753 | $ | 31,118 | $ | 134,095 | ||||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Home | Unallocated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Accessories | Corporate | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Capital Employed (3) | $ | 75,225 | $ | 19,487 | $ | 3,390 | $ | 31,024 | $ | 129,126 |
Notes
(1) | See reconciliation per page 10 of this financial information release. |
(2) | Return on average capital employed represents the last twelve months operating income as of August 4, 2019, 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, subordinated loan payable, and current and noncurrent deferred compensation. |
(3) | Average capital employed was computed using the quarterly five periods ending August 4, 2019, April 28, 2019, January 27, 2019, October 28, 2018, and July 29, 2018. |
(4) | Intangible assets and goodwill are included in unallocated corporate for all periods presented and therefore, have no affect on the capital employed and return on capital employed for our mattress fabrics, upholstery fabrics, and home accessories segments. |
(5) | Accrued restructuring costs and certain obligations associated with our acquisitions are included in unallocated corporate for all periods presented and therefore, have no affect on capital employed and return on capital employed for our mattress fabrics, upholstery fabrics, and home accessories segments. |
Page 9 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE
RETURN ON CAPITAL EMPLOYED BY SEGMENT
FOR THE TWELVE MONTHS ENDED JULY 29, 2018
(Amounts in Thousands)
(Unaudited)
Operating Income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Twelve Months | Average | Return on | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ended | Capital | Avg. Capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
July 29, 2018 (1) | Employed (3) | Employed (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mattress Fabrics | $ | 22,277 | $ | 77,448 | 28.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Upholstery Fabrics | 10,592 | 19,715 | 53.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Home Accessories | 33 | 551 | N.M. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(less: Unallocated Corporate) | (8,314 | ) | 17,421 | N.M. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 24,588 | $ | 115,134 | 21.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Capital Employed | As of the three Months Ended July 29, 2018 | As of the three Months Ended April 29, 2018 | As of the three Months Ended January 28, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Home | Unallocated | Mattress | Upholstery | Home | Unallocated | Mattress | Upholstery | Home | Unallocated | |||||||||||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Accessories | Corporate | Total | Fabrics | Fabrics | Accessories | Corporate | Total | Fabrics | Fabrics | Accessories | Corporate | Total | ||||||||||||||||||||||||||||||||||||||||||||||
Total assets (4) | $ | 93,601 | 37,386 | 4,463 | 90,922 | 226,372 | $ | 95,061 | 39,812 | - | 83,111 | 217,984 | $ | 93,827 | 43,458 | - | 79,559 | 216,844 | ||||||||||||||||||||||||||||||||||||||||||
Total liabilities (5) | (12,883 | ) | (17,880 | ) | (1,710 | ) | (27,869 | ) | (60,342 | ) | (17,335 | ) | (18,679 | ) | - | (18,594 | ) | (54,608 | ) | (18,418 | ) | (22,781 | ) | - | (23,463 | ) | (64,662 | ) | ||||||||||||||||||||||||||||||||
Subtotal | $ | 80,718 | $ | 19,506 | $ | 2,753 | $ | 63,053 | $ | 166,030 | $ | 77,726 | $ | 21,133 | $ | - | $ | 64,517 | $ | 163,376 | $ | 75,409 | $ | 20,677 | $ | - | $ | 56,096 | $ | 152,182 | ||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | - | (8,593 | ) | (8,593 | ) | - | - | - | (21,228 | ) | (21,228 | ) | - | - | - | (22,428 | ) | (22,428 | ) | |||||||||||||||||||||||||||||||||||||||
Short-term investments - Available-For-Sale | - | - | - | - | - | - | - | - | (2,451 | ) | (2,451 | ) | - | - | - | (2,472 | ) | (2,472 | ) | |||||||||||||||||||||||||||||||||||||||||
Short-term investments - Held-To-Maturity | - | - | - | (30,756 | ) | (30,756 | ) | - | - | - | (25,759 | ) | (25,759 | ) | - | - | - | (17,206 | ) | (17,206 | ) | |||||||||||||||||||||||||||||||||||||||
Long-term investments - Held-To-Maturity | - | - | - | - | - | - | - | - | (5,035 | ) | (5,035 | ) | - | - | - | (13,625 | ) | (13,625 | ) | |||||||||||||||||||||||||||||||||||||||||
Long-term investments - Rabbi Trust | - | - | - | (7,671 | ) | (7,671 | ) | - | - | - | (7,326 | ) | (7,326 | ) | - | - | - | (7,176 | ) | (7,176 | ) | |||||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | - | (3,721 | ) | (3,721 | ) | - | - | - | (1,458 | ) | (1,458 | ) | - | - | - | (1,942 | ) | (1,942 | ) | |||||||||||||||||||||||||||||||||||||||
Income taxes payable - current | - | - | - | 1,244 | 1,244 | - | - | - | 1,437 | 1,437 | - | - | - | 1,580 | 1,580 | |||||||||||||||||||||||||||||||||||||||||||||
Income taxes payable - long-term | - | - | - | 3,733 | 3,733 | - | - | - | 3,758 | 3,758 | - | - | - | 10,940 | 10,940 | |||||||||||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | - | 2,150 | 2,150 | - | - | - | 2,150 | 2,150 | - | - | - | 2,096 | 2,096 | |||||||||||||||||||||||||||||||||||||||||||||
Line of credit | - | - | - | 4,000 | 4,000 | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation - non-current | - | - | - | 7,679 | 7,679 | - | - | - | 7,353 | 7,353 | - | - | - | 7,216 | 7,216 | |||||||||||||||||||||||||||||||||||||||||||||
Total Capital Employed | $ | 80,718 | $ | 19,506 | $ | 2,753 | $ | 31,118 | $ | 134,095 | $ | 77,726 | $ | 21,133 | $ | - | $ | 15,958 | $ | 114,817 | $ | 75,409 | $ | 20,677 | $ | - | $ | 13,079 | $ | 109,165 | ||||||||||||||||||||||||||||||
As of the three Months Ended October 29, 2017 | As of the three Months Ended July 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Home | Unallocated | Mattress | Upholstery | Home | Unallocated | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Accessories | Corporate | Total | Fabrics | Fabrics | Accessories | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets (4) | $ | 94,626 | 34,974 | - | 71,443 | 201,043 | $ | 99,190 | 34,491 | - | 74,223 | 207,904 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities (5) | (16,150 | ) | (17,225 | ) | - | (14,588 | ) | (47,963 | ) | (24,277 | ) | (14,983 | ) | - | (18,967 | ) | (58,227 | ) | ||||||||||||||||||||||||||||||||||||||||||
Subtotal | $ | 78,476 | $ | 17,749 | $ | - | $ | 56,855 | $ | 153,080 | $ | 74,913 | $ | 19,508 | $ | - | $ | 55,256 | $ | 149,677 | ||||||||||||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | - | - | - | (15,739 | ) | (15,739 | ) | - | - | - | (18,322 | ) | (18,322 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments - Available-For-Sale | - | - | - | (2,478 | ) | (2,478 | ) | - | - | - | (2,469 | ) | (2,469 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments - Held-To-Maturity | - | - | - | (4,015 | ) | (4,015 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
Long-term investments - Held-To-Maturity | - | - | - | (26,853 | ) | (26,853 | ) | - | - | - | (30,907 | ) | (30,907 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Long-term investments - Rabbi Trust | - | - | - | (6,921 | ) | (6,921 | ) | - | - | - | (6,714 | ) | (6,714 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | - | (491 | ) | (491 | ) | - | - | - | (436 | ) | (436 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Income taxes payable - current | - | - | - | 692 | 692 | - | - | - | 884 | 884 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes payable - long-term | - | - | - | 487 | 487 | - | - | - | 487 | 487 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred income taxes - non-current | - | - | - | 4,641 | 4,641 | - | - | - | 4,253 | 4,253 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Line of credit | - | - | - | - | - | - | - | - | 5,000 | 5,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation - non-current | - | - | - | 6,970 | 6,970 | - | - | - | 6,769 | 6,769 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Capital Employed | $ | 78,476 | $ | 17,749 | $ | - | $ | 13,148 | $ | 109,373 | $ | 74,913 | $ | 19,508 | $ | - | $ | 13,801 | $ | 108,222 | ||||||||||||||||||||||||||||||||||||||||
Mattress | Upholstery | Home | Unallocated | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fabrics | Fabrics | Accessories | Corporate | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Capital Employed (3) | $ | 77,448 | $ | 19,715 | $ | 551 | $ | 17,421 | $ | 115,134 |
Notes
(1) | See reconciliation per page 10 of this financial information release. |
(2) | Return on average capital employed represents the last twelve months operating income as of July 29, 2018, 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 payable, line of credit, and deferred compensation. |
(3) | Average capital employed was computed using the quarterly five periods ending July 29, 2018, April 29, 2018, January 28, 2018, October 29, 2017, and July 30, 2017. |
(4) | Intangible assets and goodwill are included in unallocated corporate for all periods presented and therefore, have no affect on the capital employed and return on capital employed for our mattress fabrics, upholstery fabrics, and home accessories segments. |
(5) | Accrued restructuring costs and certain obligations associated with our acquisitions are included in unallocated corporate for all periods presented and therefore, have no affect on capital employed and return on capital employed for our mattress fabrics, upholstery fabrics, and home accessories segments. |
Page 10 of 10
CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF OPERATING INCOME (LOSS)
FOR THE TWELVE MONTHS ENDED AUGUST 4, 2019 AND JULY 29, 2018
(UNAUDITED)
(AMOUNTS IN THOUSANDS)
Quarter Ended | ||||||||||||||||||||
Trailing 12 | ||||||||||||||||||||
Months | ||||||||||||||||||||
10/28/2018 | 1/27/2019 | 4/28/2019 | 8/4/2019 | 8/4/2019 | ||||||||||||||||
Mattress Fabrics | $ | 2,908 | $ | 3,208 | $ | 2,698 | $ | 2,620 | $ | 11,434 | ||||||||||
Upholstery Fabrics | 2,722 | 3,799 | 1,777 | 2,875 | 11,173 | |||||||||||||||
Home Accessories | 25 | (311 | ) | (479 | ) | (535 | ) | (1,300 | ) | |||||||||||
Unallocated Corporate | (1,913 | ) | (1,628 | ) | (2,037 | ) | (2,306 | ) | (7,884 | ) | ||||||||||
Subtotal | 3,742 | 5,068 | 1,959 | 2,654 | 13,423 | |||||||||||||||
Other non-recurring charges | (249 | ) | (429 | ) | - | - | (678 | ) | ||||||||||||
Restructuring (expense) credit and related charges | 791 | (340 | ) | - | 35 | 486 | ||||||||||||||
Operating income | $ | 4,284 | $ | 4,299 | $ | 1,959 | $ | 2,689 | $ | 13,231 | ||||||||||
Quarter Ended | ||||||||||||||||||||
Trailing 12 | ||||||||||||||||||||
Months | ||||||||||||||||||||
10/29/2017 | 1/28/2018 | 4/29/2018 | 7/29/2018 | 7/29/2018 | ||||||||||||||||
Mattress Fabrics | $ | 6,562 | $ | 6,837 | $ | 6,088 | $ | 2,790 | $ | 22,277 | ||||||||||
Upholstery Fabrics | 2,374 | 3,510 | 2,181 | 2,527 | 10,592 | |||||||||||||||
Home Accessories | - | - | - | 33 | 33 | |||||||||||||||
Unallocated Corporate | (2,547 | ) | (2,703 | ) | (1,805 | ) | (1,259 | ) | (8,314 | ) | ||||||||||
Subtotal | $ | 6,389 | $ | 7,644 | $ | 6,464 | $ | 4,091 | $ | 24,588 | ||||||||||
Restructuring expense and related charges | - | - | - | (2,016 | ) | (2,016 | ) | |||||||||||||
Operating income | $ | 6,389 | $ | 7,644 | $ | 6,464 | $ | 2,075 | $ | 22,572 | ||||||||||
% Over (Under) | -32.9 | % | -43.8 | % | -69.7 | % | 29.6 | % | -41.4 | % |