Exhibit 99(b)
Page 1 of 7
Financial Information Release dated June 26, 2006
CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF LOSS
FOR THE THREE MONTHS AND TWELVE MONTHS ENDED APRIL 30, 2006 AND MAY 1, 2005
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
THREE MONTHS ENDED
------------------------------------------------------------------------
Amounts Percent of Sales
-------------------------- ----------------------------
April 30, May 1, % Over April 30, May 1,
2006 2005 (Under) 2006 2005
------------ ------------ ------------ ------------- -----------
Net sales $ 70,718 74,183 (4.7)% 100.0 % 100.0 %
Cost of sales 63,135 68,835 (8.3)% 89.3 % 92.8 %
------------ ------------ ------------ --------------- -----------
Gross profit 7,583 5,348 41.8 % 10.7 % 7.2 %
Selling, general and
administrative expenses 6,474 9,048 (28.4)% 9.2 % 12.2 %
Restructuring expense 3,692 8,083 (54.3)% 5.2 % 10.9 %
------------ ------------ ------------ --------------- -----------
Loss from operations (2,583) (11,783) 78.1 % (3.7)% (15.9)%
Interest expense 1,055 924 14.2 % 1.5 % 1.2 %
Interest income (48) (36) 33.3 % (0.1)% (0.0)%
Other expense 152 81 87.7 % 0.2 % 0.1 %
------------ ------------ ------------ --------------- -----------
Loss before income taxes (3,742) (12,752) 70.7 % (5.3)% (17.2)%
Income taxes* (2,208) (5,022) (56.0)% 59.0 % 39.4 %
------------ ------------ ------------ --------------- -----------
Net loss $ (1,534) (7,730) 80.2 % (2.2)% (10.4)%
============ ============ ============ =============== ===========
Net loss per share-basic ($0.13) ($0.67) 80.6 %
Net loss per share-diluted ($0.13) ($0.67) 80.6 %
Net income (loss) per share, diluted, excluding $0.14 ($0.12) 216.7 %
restructuring and related charges
Average shares outstanding-basic 11,594 11,550 0.4 %
Average shares outstanding-diluted 11,594 11,550 0.4 %
TWELVE MONTHS ENDED
------------------------------------------------------------------------
Amounts Percent of Sales
-------------------------- ----------------------------
April 30, May 1, % Over April 30, May 1,
2006 2005 (Under) 2006 2005
------------ ------------ ------------ ------------- -------------
Net sales $ 261,101 286,498 (8.9)% 100.0 % 100.0 %
Cost of sales 237,233 260,341 (8.9)% 90.9 % 90.9 %
------------ ------------ ------------ ------------- -------------
Gross profit 23,868 26,157 (8.8)% 9.1 % 9.1 %
Selling, general and
administrative expenses 28,954 35,357 (18.1)% 11.1 % 12.3 %
Goodwill impairment 0 5,126 (100.0)% 0.0 % 1.8 %
Restructuring expense 10,273 10,372 (1.0)% 3.9 % 3.6 %
------------ ------------ ------------ ------------- -------------
Loss from operations (15,359) (24,698) 37.8 % (5.9)% (8.6)%
Interest expense 4,010 3,713 8.0 % 1.5 % 1.3 %
Interest income (126) (134) (6.0)% (0.0)% (0.0)%
Other expense 634 517 22.6 % 0.2 % 0.2 %
------------ ------------ ------------ ------------- -------------
Loss before income taxes (19,877) (28,794) 31.0 % (7.6)% (10.1)%
Income taxes* (8,081) (10,942) (26.1)% 40.7 % 38.0 %
------------ ------------ ------------ ------------- -------------
Net loss $ (11,796) (17,852) 33.9 % (4.5)% (6.2)%
============ ============ ============ ============= =============
Net loss per share-basic ($1.02) ($1.55) 34.2 %
Net loss per share-diluted ($1.02) ($1.55) 34.2 %
Net loss per share, diluted, excluding restructuring ($0.04) ($0.30) 86.7 %
and related charges and goodwill impairment
Average shares outstanding-basic 11,567 11,549 0.2 %
Average shares outstanding-diluted 11,567 11,549 0.2 %
* Percent of sales column for income taxes is calculated as a % of loss before income taxes.
Page 2 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED BALANCE SHEETS
APRIL 30, 2006 AND MAY 1, 2005
(UNAUDITED)
(Amounts in Thousands)
Amounts
-------------------------------- Increase
(Decrease)
April 30, May 1, -------------------------------
2006 2005 Dollars Percent
--------------- --------------- --------------- ------------
Current assets
Cash and cash equivalents $ 9,714 5,107 4,607 90.2 %
Accounts receivable 29,049 28,824 225 0.8 %
Inventories 36,693 50,499 (13,806) (27.3)%
Deferred income taxes 7,120 7,054 66 0.9 %
Assets held for sale 3,111 0 3,111 100.0 %
Other current assets 1,287 2,691 (1,404) (52.2)%
--------------- --------------- --------------- ------------
Total current assets 86,974 94,175 (7,201) (7.6)%
Property, plant and equipment, net 44,639 66,032 (21,393) (32.4)%
Goodwill 4,114 4,114 0 0.0 %
Deferred income taxes 20,176 10,086 10,090 100.0 %
Other assets 1,564 1,716 (152) (8.9)%
--------------- --------------- --------------- ------------
Total assets $ 157,467 176,123 (18,656) (10.6)%
=============== =============== =============== ============
Current liabilities
Current maturities of long-term debt $ 8,060 8,110 (50) (0.6)%
Accounts payable 20,835 22,852 (2,017) (8.8)%
Accrued expenses 7,845 9,556 (1,711) (17.9)%
Accrued restructuring 4,054 5,850 (1,796) (30.7)%
Income taxes payable 2,488 1,544 944 61.1 %
--------------- --------------- --------------- ------------
Total current liabilities 43,282 47,912 (4,630) (9.7)%
Long-term debt , less current maturities 39,662 42,440 (2,778) (6.5)%
--------------- --------------- --------------- ------------
Total liabilities 82,944 90,352 (7,408) (8.2)%
Shareholders' equity 74,523 85,771 (11,248) (13.1)%
--------------- --------------- --------------- ------------
Total liabilities and
shareholders' equity $ 157,467 176,123 (18,656) (10.6)%
=============== =============== =============== ============
Shares outstanding 11,655 11,551 104 0.9 %
=============== =============== =============== ============
Page 3 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED APRIL 30, 2006 AND MAY 1, 2005
(UNAUDITED)
(Amounts in Thousands)
TWELVE MONTHS ENDED
--------------------------------
Amounts
--------------------------------
April 30, May 1,
2006 2005
--------------- --------------
Cash flows from operating activities:
Net loss $ (11,796) (17,852)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Regular depreciation 9,402 12,862
Accelerated depreciation 4,960 6,022
Amortization of other assets 93 130
Stock-based compensation 139 210
Goodwill impairment 0 5,126
Deferred income taxes (10,156) (12,022)
Restructuring expense 6,582 6,690
Changes in assets and liabilities:
Accounts receivable (225) 1,895
Inventories 13,806 (1,454)
Other current assets 1,404 (969)
Other assets (44) 67
Accounts payable (1,302) 6,251
Accrued expenses (1,711) (3,560)
Accrued restructuring (1,796) 882
Income taxes payable 944 (306)
--------------- --------------
Net cash provided by operating activities 10,300 3,972
--------------- --------------
Cash flows from investing activities:
Capital expenditures (6,242) (11,448)
Proceeds from the sale of buildings and equipment 3,950 0
--------------- --------------
Net cash used in investing activities (2,292) (11,448)
--------------- --------------
Cash flows from financing activities:
Payments on vendor-financed capital expenditures (942) (1,527)
Payments on long-term debt (7,848) (480)
Proceeds from issuance of long-term debt 5,020 0
Proceeds from common stock issued 369 22
--------------- --------------
Net cash used in financing activities (3,401) (1,985)
--------------- --------------
Increase (decrease) in cash and cash equivalents 4,607 (9,461)
Cash and cash equivalents at beginning of period 5,107 14,568
--------------- --------------
Cash and cash equivalents at end of period $ 9,714 5,107
=============== ==============
Free Cash Flow (1) $ 7,066 (9,003)
=============== ==============
- -----------------------------------------------------------------------------------------------------------------------
(1) Free Cash Flow reconciliation is as follows:
FY 2006 FY 2005
--------------- --------------
A) Net cash provided by operating activities $ 10,300 3,972
B) Minus: Capital Expenditures (6,242) (11,448)
C) Add: Proceeds from the sale of buildings and equipment 3,950 0
D) Minus: Payments on vendor-financed capital expenditures (942) (1,527)
--------------- --------------
$ 7,066 (9,003)
=============== ==============
- -----------------------------------------------------------------------------------------------------------------------
Page 4 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE
SALES, GROSS PROFIT AND OPERATING INCOME (LOSS) BY SEGMENT
FOR THE THREE MONTHS ENDED APRIL 30, 2006 AND MAY 1, 2005
(UNAUDITED)
(Amounts in thousands)
THREE MONTHS ENDED
-------------------------------------------------------------------
Amounts Percent of Total Sales
------------------------- ----------------------------
April 30, May 1, % Over April 30, May 1,
Net Sales by Segment 2006 2005 (Under) 2006 2005
- ------------------------------------------ ------------ ---------- ----------- ------------- -------------
Mattress Fabrics $ 24,102 27,018 (10.8)% 34.1 % 36.4 %
Upholstery Fabrics 46,616 47,165 (1.2)% 65.9 % 63.6 %
------------ ---------- ----------- -----------------------------
Net Sales $ 70,718 74,183 (4.7)% 100.0 % 100.0 %
============ ========== =========== =============================
Gross Profit by Segment Gross Profit Margin
- ------------------------------------------ -----------------------------
Mattress Fabrics $ 3,740 4,092 (8.6)% 15.5 % 15.1 %
Upholstery Fabrics 4,882 3,316 47.2 % 10.5 % 7.0 %
------------ ---------- ----------- ----------------------------
Subtotal 8,622 7,408 16.4 % 12.2 % 10.0 %
Restructuring related charges (1,039)(1) (2,060)(3) (49.6)% (1.5)% (2.8)%
------------ ---------- ----------- ----------------------------
Gross Profit $ 7,583 5,348 41.8 % 10.7 % 7.2 %
============ ========== =========== =============================
Sales, General and Administrative
expenses by Segment Percent of Sales
- ------------------------------------------ -----------------------------
Mattress Fabrics $ 1,708 1,869 (8.6)% 7.1 % 6.9 %
Upholstery Fabrics 3,742 5,334 (29.8)% 8.0 % 11.3 %
Unallocated corporate expenses 1,024 1,732 (40.9)% 1.4 % 2.3 %
------------ ---------- ----------- -----------------------------
Subtotal 6,474 8,935 (27.5)% 9.2 % 12.0 %
Restructuring related charges 0 113 (4)(100.0)% 0.0 % 0.2 %
------------ ---------- ----------- -----------------------------
Selling, General and
Administrative expenses 6,474 9,048 (28.4)% 9.2 % 12.2 %
============ ========== =========== =============================
Operating Income (loss) by Segment Operating Income (Loss) Margin
- ------------------------------------------ -----------------------------
Mattress Fabrics $ 2,032 2,223 (8.6)% 8.4 % 8.2 %
Upholstery Fabrics 1,140 (2,018) 156.5 % 2.4 % (4.3)%
Unallocated corporate expenses (1,024) (1,732) 40.9 % (1.4)% (2.3)%
------------ ---------- ----------- -----------------------------
Subtotal 2,148 (1,527) 240.7 % 3.0 % (2.1)%
Restructuring expense and restructuring
related charges (4,731)(2) (10,256)(5) (53.9)% (6.7)% (13.8)%
------------ ---------- ----------- -----------------------------
Operating loss $ (2,583) (11,783) 78.1 % (3.7)% (15.9)%
============ ========== =========== =============================
Depreciation by Segment
- ------------------------------------------
Mattress Fabrics $ 948 892 6.3 %
Upholstery Fabrics 1,158 2,043 (43.3)%
------------ ---------- -----------
Subtotal 2,106 2,935 (28.2)%
Accelerated Depreciation (19) 1,444 (101.3)%
------------ ---------- -----------
Total Depreciation $ 2,087 4,379 (52.3)%
============ ========== ===========
(1) The $1.0 million represents restructuring related charges of $849,000 for
inventory markdowns, $210,000 for operating costs associated with the
closing of or closed plant facilities, and a credit of $19,000 for
accelerated depreciation.
(2) The $4.7 million represents restructuring and related charges of $3.2
million for write-downs of equipment, $849,000 for inventory markdowns,
$331,000 for termination benefits, $219,000 for asset movement costs,
$210,000 for operating costs associated with the closing of or closed plant
facilities, and credit of $99,000 for lease termination costs and
accelerated depreciation. Of this total charge, $3.7 million and $1.0
million are included in restructuring expense and cost of sales,
respectively.
(3) The $2.0 million represents restructuring related charges of $1.3 million
for accelerated depreciation and $734,000 for inventory markdowns.
(4) The $113,000 represents accelerated deprecation.
(5) The $10.3 million represents restructuring and related charges of $5.3
million for write-downs of buildings and equipment, $1.6 million related to
asset movement costs, $1.5 million for accelerated depreciation, $1.2 for
termination benefits, and $734,000 for inventory markdowns. Of this total
charge, $8.1 million, $2.0 million, and $113,000 are included in
restructuring expense, cost of sales, and selling, general, and
administrative expenses, respectively.
Page 5 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE
SALES, GROSS PROFIT AND OPERATING INCOME (LOSS) BY SEGMENT
FOR THE TWELVE MONTHS ENDED APRIL 30, 2006 AND MAY 1, 2005
(UNAUDITED)
(Amounts in thousands)
TWELVE MONTHS ENDED
-------------------------------------------------------------------
Amounts Percent of Total Sales
------------------------- ----------------------------
April 30, May 1, % Over April 30, May 1,
Net Sales by Segment 2006 2005 (Under) 2006 2005
- ------------------------------------------ ------------ ---------- ---------- ------------- -------------
Mattress Fabrics $ 93,688 105,432 (11.1)% 35.9 % 36.8 %
Upholstery Fabrics 167,413 181,066 (7.5)% 64.1 % 63.2 %
------------- ---------- ---------- ------------- -------------
Net Sales $ 261,101 286,498 (8.9)% 100.0 % 100.0 %
============= ========== ========== ============= =============
Gross Profit by Segment Gross Profit Margin
- ------------------------------------------ ----------------------------
Mattress Fabrics $ 13,579 16,819 (19.3)% 14.5 % 16.0 %
Upholstery Fabrics 14,909 16,899 (11.8)% 8.9 % 9.3 %
------------- ---------- ---------- ------------- -------------
Subtotal 28,488 33,718 (15.5)% 10.9 % 11.8 %
Restructuring related charges (4,620)(1) (7,561)(4) (38.9)% (1.8)% (2.6)%
------------- ---------- ---------- ------------- -------------
Gross Profit $ 23,868 26,157 (8.8)% 9.1 % 9.1 %
============= ========== ========== ============= =============
Sales, General and Administrative
expenses by Segment Percent of Sales
- ------------------------------------------ ----------------------------
Mattress Fabrics $ 6,724 7,430 (9.5)% 7.2 % 7.0 %
Upholstery Fabrics 15,863 23,334 (32.0)% 9.5 % 12.9 %
Unallocated corporate expenses 3,345 4,480 (25.3)% 1.3 % 1.6 %
------------- ---------- ---------- ------------- -------------
Subtotal 25,932 35,244 (26.4)% 9.9 % 12.3 %
Restructuring related charges 3,022(2) 113(5) 2,574.3% 1.2 % 0.0 %
------------- ---------- ---------- ------------- -------------
Selling, General and
Administrative expenses 28,954 35,357 (18.1)% 11.1 % 12.3 %
============= ========== ========== ============= =============
Operating Income (loss) by Segment Operating Income (Loss) Margin
- ------------------------------------------ -----------------------------
Mattress Fabrics $ 6,855 9,389 (27.0)% 7.3 % 8.9 %
Upholstery Fabrics (954) (6,435) 85.2 % (0.6)% (3.6)%
Unallocated corporate expenses (3,345) (4,480) 25.3 % (1.3)% (1.6)%
------------- ---------- ---------- ------------- -------------
Subtotal 2,556 (1,526) 267.5 % 1.0 % (0.5)%
Goodwill Impairment 0 (5,126)(6)(100.0)% 0.0 % (1.8)%
Restructuring expense and
restructuring related (17,915)(3) (18,046)(7) (0.7)% (6.9)% (6.3)%
------------- ---------- ---------- ------------- -------------
Operating loss $ (15,359) (24,698) 37.8 % (5.9)% (8.6)%
============= ========== ========== ============= =============
Depreciation by Segment
- ------------------------------------------
Mattress Fabrics $ 3,662 3,635 0.7 %
Upholstery Fabrics 5,740 9,227 (37.8)%
------------ ---------- ----------
Subtotal 9,402 12,862 (26.9)%
Accelerated Depreciation 4,960 6,022 (17.6)%
------------ ---------- ----------
Total Depreciation $ 14,362 18,884 (23.9)%
============ ========== ==========
(1) The $4.6 million represents restructuring related charges of $2.0 million
for inventory markdowns, $1.9 million for accelerated depreciation,
$665,000 for operating costs associated with the closing of or closed plant
facilities.
(2) The $3.0 million represents accelerated depreciation.
(3) The $17.9 million represents restructuring and related charges of $6.0
million for write-downs of buildings and equipment, $5.0 million for
accelerated depreciation, $2.2 million for asset movement costs, $2.0
million for inventory markdowns, $1.7 million for termination benefits,
$665,000 for operating costs associated with the closing of or closed plant
facilities, and $316,000 for lease termination and other exit costs. Of
this total charge, $10.3 million, $4.6 million, and $3.0 million were
included in restructuring expense, cost of sales, and selling, general, and
administrative expenses, respectively.
(4) The $7.6 million represents restructuring related charges of $6.0 million
for accelerated depreciation and $1.6 million for inventory markdowns.
(5) The $113,000 represents accelerated depreciation.
(6) The $5.1 million represents a goodwill impairment charge related to the
Culp Decorative Fabrics division.
(7) The $18.0 million represents $6.0 million for accelerated depreciation,
$5.7 million for write-downs of buildings and equipment, $2.5 million
related to asset movement costs, $2.2 million related to termination
benefits, and $1.6 million for inventory markdowns. Of this total charge,
$10.4 million, $7.6 million, and $113,000 were included in restructuring
expense, cost of sales, selling, general, and administrative expenses,
respectively.
Page 6 of 7
CULP, INC.
PROFORMA CONSOLIDATED STATEMENTS OF INCOME (LOSS)
FOR THE THREE MONTHS ENDED APRIL 30, 2006 AND MAY 1, 2005
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
THREE MONTHS ENDED
-----------------------------------------------------------------------------
As Reported April 30, 2006
April 30, % of % of Proforma Net % of
2006 Sales Adjustments Sales of Adjustments Sales
------------------------ --------------------- ------------------------
Net sales $ 70,718 100.0% 0 70,718 100.0%
Cost of sales 63,135 89.3% (1,039) -1.5% (1) 62,096 87.8%
------------------------ --------------------- ------------------------
Gross profit 7,583 10.7% (1,039) -1.5% 8,622 12.2%
Selling, general and
administrative expenses 6,474 9.2% 0 0.0% 6,474 9.2%
Restructuring expense 3,692 5.2% (3,692) -5.2% (2) 0 0.0%
------------------------ --------------------- ------------------------
Income (loss) from operations (2,583) -3.7% (4,731) -6.7% 2,148 3.0%
Interest expense 1,055 1.5% 0 0.0% 1,055 1.5%
Interest income (48) -0.1% 0 0.0% (48) -0.1%
Other expense 152 0.2% 0 0.0% 152 0.2%
------------------------ --------------------- ------------------------
Income (loss) before income taxes (3,742) -5.3% (4,731) -6.7% (8) 989 1.4%
Income taxes (7) (2,208) 59.0% (1,547) 41.3% (661) -66.8% (6
------------------------ --------------------- ------------------------
Net (loss) income $ (1,534) -2.2% (3,184) -4.5% 1,650 2.3%
======================== ===================== ========================
Net income (loss) per share-basic ($0.13) ($0.27) $0.14
Net income (loss) per share-diluted ($0.13) ($0.27) $0.14
Average shares outstanding-basic 11,594 11,594 11,594
Average shares outstanding-diluted 11,594 11,594 11,637
THREE MONTHS ENDED
----------------------------------------------------------------------------------
As Reported May 1, 2005 Proforma
May 1, % of % of Proforma Net % of % Over
2005 Sales Adjustments Sales of Adjustments Sales (Under)
-------------------- ------------------------------------------------ ----------
Net sales $ 74,183 100.0% 0 74,183 100.0% -4.7%
Cost of sales 68,835 92.8% (2,060) -2.8% (3) 66,775 90.0% -7.0%
-------------------- --------------------- ---------------------- ----------
Gross profit 5,348 7.2% (2,060) -2.8% 7,408 10.0% 16.4%
Selling, general and
administrative expenses 9,048 12.2% (113) 0.0% (4) 8,935 12.0% -27.5%
Restructuring expense 8,083 10.9% (8,083) -10.9% (5) 0 0.0% 0.0%
-------------------- --------------------- ---------------------- ----------
Income (loss) from operations (11,783) -15.9% (10,256) -13.8% (1,527) -2.1% -240.7%
Interest expense 924 1.2% 0 0.0% 924 1.2% 14.2%
Interest income (36) 0.0% 0 0.0% (36) 0.0% 33.3%
Other expense 81 0.1% 0 0.0% 81 0.1% 87.7%
-------------------- --------------------- ---------------------- ----------
Income (loss) before income taxes (12,752) -17.2% (10,256) -13.8% (9) (2,496) -3.4% -139.6%
Income taxes (7) (5,022) 39.4% (3,876) 37.8% (1,146) 45.9% -42.3%
-------------------- --------------------- ---------------------- ----------
Net (loss) income $ (7,730) -10.4% (6,380) -8.6% (1,350) -1.8% -222.2%
==================== ===================== ====================== ==========
Net income (loss) per share-basic ($0.67) ($0.55) ($0.12)
Net income (loss) per share-diluted ($0.67) ($0.55) ($0.12)
Average shares outstanding-basic 11,550 11,550 11,550
Average shares outstanding-diluted 11,550 11,550 11,550
Notes:
(1) The $1.0 million represents restructuring related charges of $849,000 for
inventory markdowns, $210,000 for operating costs associated with the
closing of or closed plant facilities, and a credit of $19,000 for
accelerated depreciation.
(2) The $3.7 million represents restructuring charges of $3.2 million for
write-downs of equipment, $331,000 for termination benefits, $219,000 for
asset movement costs, and a credit of $80,000 for lease termination costs.
(3) The $2.0 million represents restructuring related charges of $1.3 million
for accelerated depreciation and $734,000 for inventory markdowns.
(4) The $113,000 represents accelerated depreciation.
(5) The $8.1 million represents restructuring and related charges of $5.3
million for write-downs of buildings and equipment, $1.6 million related to
asset movement costs, and $1.2 million for termination benefits.
(6) Effective tax rate of 66.8% represents an income tax benefit on losses from
U.S. operations combined with lower tax rates on income from foreign
sources.
(7) The percent of net sales column for income taxes is calculated as a % of
income (loss) before income taxes.
(8) Of the total charge of $4.7 million, $4.1 million and $600,000 represent
non-cash and cash charges, respectively.
(9) Of the total charge of $10.2 million, $7.4 million and $2.8 million
represents non-cash and cash charges, respectively.
Page 7 of 7
CULP, INC.
PROFORMA CONSOLIDATED STATEMENTS OF LOSS
FOR THE TWELVE MONTHS ENDED APRIL 30, 2006 AND MAY 1, 2005
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
TWELVE MONTHS ENDED
--------------------------------------------------------------------------------
As Reported April 30, 2006
April 30, % of % of Proforma Net % of
2006 Sales Adjustments Sales of Adjustments Sales
----------------------- ------------------------ ------------------------
Net sales $ 261,101 100.0% 261,101 100.0%
Cost of sales 237,233 90.9% (4,620) -1.8% (1) 232,613 89.1%
----------------------- ------------------------ ------------------------
Gross profit 23,868 9.1% (4,620) -1.8% 28,488 10.9%
Selling, general and
administrative expenses 28,954 11.1% (3,022) -1.2% (2) 25,932 9.9%
Goodwill impairment 0 0.0% 0 0.0% 0 0.0%
Restructuring expense 10,273 3.9% (10,273) -3.9% (3) 0 0.0%
----------------------- ------------------------ ------------------------
Income (loss) from operations (15,359) -5.9% (17,915) -6.9% 2,556 1.0%
Interest expense 4,010 1.5% 0 0.0% 4,010 1.5%
Interest income (126) 0.0% 0 0.0% (126) 0.0%
Other expense 634 0.2% 0 0.0% 634 0.2%
----------------------- ------------------------ ------------------------
Loss before income taxes (19,877) -7.6% (17,915) -6.9% (10) (1,962) -0.8%
Income taxes (9) (8,081) 40.7% (6,557) 36.6% (1,524) 77.7% (8)
----------------------- ------------------------ ------------------------
Net loss $ (11,796) -4.5% (11,358) -4.4% (438) -0.2%
======================= ======================== ========================
Net loss per share-basic ($1.02) ($0.98) ($0.04)
Net loss per share-diluted ($1.02) ($0.98) ($0.04)
Average shares outstanding-basic 11,567 11,567 11,567
Average shares outstanding-diluted 11,567 11,567 11,567
TWELVE MONTHS ENDED
----------------------------------------------------------------------------------------
As Reported May 1, 2005 Proforma
May 1, % of % of Proforma Net % of % Over
2005 Sales Adjustments Sales of Adjustments Sales (Under)
-------------------- ------------------------- ------------------------ ----------
Net sales $ 286,498 100.0% 0 286,498 100.0% -8.9%
Cost of sales 260,341 90.9% (7,561) -2.6% (4) 252,780 88.2% -8.0%
-------------------- ------------------------- ------------------------ ----------
Gross profit 26,157 9.1% 7,561 2.6% 33,718 11.8% -15.5%
Selling, general and
administrative expenses 35,357 12.3% (113) 0.0% (5) 35,244 12.3% -26.4%
Goodwill impairment 5,126 0.0% (5,126) -1.8% (6) 0 0.0% 0.0%
Restructuring expense 10,372 3.6% (10,372) -3.6% (7) 0 0.0% 0.0%
-------------------- ------------------------- ------------------------ ----------
Income (loss) from operations (24,698) -8.6% (23,172) -8.1% (1,526) -0.5% -267.5%
Interest expense 3,713 1.3% 0 0.0% 3,713 1.3% 8.0%
Interest income (134) 0.0% 0 0.0% (134) 0.0% -6.0%
Other expense 517 0.2% 0 0.0% 517 0.2% 22.6%
-------------------- ------------------------- ------------------------ ----------
Loss before income taxes (28,794) -10.1% (23,172) -8.1% (11) (5,622) -2.0% -65.1%
Income taxes (9) (10,942) 38.0% (8,749) 37.8% (2,193) 39.0% -30.5%
-------------------- ------------------------- ------------------------ ----------
Net loss $ (17,852) -6.2% (14,423) -5.0% (3,429) -1.2% -87.2%
==================== ========================= ======================== ==========
Net loss per share-basic ($1.55) ($1.25) ($0.30)
Net loss per share-diluted ($1.55) ($1.25) ($0.30)
Average shares outstanding-basic 11,549 11,549 11,549
Average shares outstanding-diluted 11,549 11,549 11,549
Notes:
(1) The $4.6 million represents restructuring related charges of $2.0 million
for inventory markdowns, $1.9 million for accelerated depreciation,
$665,000 for operating costs associated with the closing of or closed plant
facilities.
(2) The $3.0 million represents accelerated depreciation.
(3) The $10.2 million represents $6.0 million for write-downs of buildings and
equipment, $2.2 million for asset movement costs, $1.7 million for
termination benefits, and $316,000 for lease termination and other exit
costs.
(4) The $7.6 million represents restructuring related charges of $6.0 million
for accelerated depreciation and $1.6 million for inventory markdowns.
(5) The $113,000 represents accelerated depreciation.
(6) The $5.1 million represents a goodwill impairment charge related to the
Culp Decorative Fabrics division.
(7) The $10.4 million represents $5.7 million for write-downs of buildings and
equipment, $2.5 million related to asset movement costs, and $2.2 million
related to termination benefits.
(8) Effective tax rate of 77.7% represents an income tax benefit on losses from
U.S. operations combined with lower tax rates on income from foreign
sources.
(9) The percent of net sales column for income taxes is calculated as a % of
loss before income taxes.
(10) Of the total charge of $17.9 million, $13.0 million and $4.9 million
represent non-cash and cash charges, respectively.
(11) Of the total charge of $23.2 million, $18.4 million and $4.8 million
represent non-cash and cash charges, respectively.