North Carolina
|
1-12597
|
56-1001967
|
||
(State or Other Jurisdiction
of Incorporation)
|
(Commission File Number)
|
(I.R.S. Employer
Identification No.)
|
1823 Eastchester Drive
High Point, North Carolina 27265
|
(Address of Principal Executive Offices)
(Zip Code)
|
(336) 889-5161
|
(Registrant’s Telephone Number, Including Area Code)
|
Not Applicable
|
(Former name or address, if changed from last report)
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Page
|
|
Item 2.02 – Results of Operations and Financial Condition
|
3
|
Item 9.01(d) - Exhibits
|
4 |
Signature | 5 |
Exhibits
|
6
|
CULP, INC.
|
||
(Registrant)
|
||
By: | /s/ Kenneth R. Bowling | |
Chief Financial Officer | ||
(principal financial officer) | ||
By: | /s/ Thomas B. Gallagher, Jr. | |
Corporate Controller
|
||
(principal accounting officer)
|
Exhibit Number | Exhibit | |
99(a) | News Release dated August 29, 2012 | |
99(b) | Financial Information Release dated August 29, 2012 |
Investor Contact:
|
Kenneth R. Bowling
|
Media Contact:
|
Teresa A. Huffman
|
Chief Financial Officer
|
Vice President, Human Resources | ||
336-881-5630
|
336-889-5161 |
§
|
Net sales were $69.2 million, up 14.8 percent, with mattress fabric sales up 18.0 percent and upholstery fabric sales up 11.1 percent, as compared to the same quarter last year. This is the company’s highest total sales for the first quarter period in eight years.
|
§
|
Pre-tax income was $5.4 million, up 81.2 percent from the first quarter of fiscal 2012.
|
§
|
Adjusted net income (non-GAAP) was $4.3 million, or $0.34 per diluted share, for the current quarter, compared with $2.4 million, or $0.18 per diluted share, for the prior year period. (Adjusted net income is calculated using estimated cash income tax expense. See the reconciliation to net income on page 6). Net income (GAAP) was $3.5 million, or $0.28 per diluted share, compared with net income of $1.8 million, or $0.14 per diluted share, in the prior year period.
|
§
|
The company’s financial position remained strong with a total cash position of $27.1 million and total debt of $9.9 million as of July 29, 2012.
|
§
|
During the quarter, the company repurchased 47,296 of its outstanding shares, for $470,000. Subsequent to the end of first quarter, the company repurchased an additional 455,299 shares for $4.5 million. Since June 2011, the company has repurchased 1,127,054 shares, or 8.5 percent of its outstanding shares, for a total of $10.4 million.
|
§
|
The company also announced today a new authorization of additional share repurchases up to $2.0 million.
|
§
|
The company paid a cash dividend of $0.03 per share during the quarter. This was the first dividend paid since fiscal 2001.
|
§
|
The projection for the second quarter of fiscal 2013 is for overall sales to be up 2 to 6 percent as compared to the same period last year. Pre-tax income is expected to be in the range of $3.0 million to $3.7 million. Pre-tax income for the second quarter of fiscal 2012 was $2.9 million.
|
Three Months Ended
|
||||||||
July 29,
|
July 31,
|
|||||||
2012
|
2011
|
|||||||
Net sales
|
$ | 69,184,000 | $ | 60,270,000 | ||||
Income before income taxes
|
$ | 5,372,000 | $ | 2,965,000 | ||||
Net income
|
$ | 3,524,000 | $ | 1,820,000 | ||||
Net income per share:
|
||||||||
Basic
|
$ | 0.28 | $ | 0.14 | ||||
Diluted
|
$ | 0.28 | $ | 0.14 | ||||
Adjusted net income
|
$ | 4,341,000 | $ | 2,425,000 | ||||
Adjusted net income per share
|
||||||||
Basic
|
$ | 0.35 | $ | 0.19 | ||||
Diluted
|
$ | 0.34 | $ | 0.18 | ||||
Average shares outstanding:
|
||||||||
Basic
|
12,551,000 | 13,061,000 | ||||||
Diluted
|
12,711,000 | 13,205,000 |
Three Months Ended
|
||||||||
July 29,
|
July 31,
|
|||||||
2012
|
2011
|
|||||||
Income before income taxes
|
$ | 5,372,000 | $ | 2,965,000 | ||||
Adjusted income taxes (2)
|
$ | 1,031,000 | $ | 540,000 | ||||
Adjusted net income
|
$ | 4,341,000 | $ | 2,425,000 |
(1)
|
Culp, Inc. currently does not incur cash income tax expense in the U.S. due to its $59.9 million in net operating loss carryforwards. Therefore, adjusted net income is calculated using only income tax expense for the company’s subsidiaries in Canada and China.
|
(2)
|
Represents estimated income tax expense for the company’s subsidiaries in Canada and China, calculated with a consolidated adjusted effective income tax rate of 19.2% for fiscal 2013 and 18.2% for fiscal 2012.
|
THREE MONTHS ENDED
|
||||||||||||
Amounts
|
||||||||||||
July 29,
|
July 31
|
|||||||||||
2012
|
2011
|
|||||||||||
Consolidated Effective GAAP Income Tax Rate
|
(1) | 34.4 | % | 38.6 | % | |||||||
Non-Cash U.S. Income Tax Expense
|
(15.0 | )% | (18.5 | )% | ||||||||
Non-Cash Foreign Income Tax Expense
|
(0.2 | )% | (1.9 | )% | ||||||||
Consolidated Adjusted Effective Income Tax Rate
|
(2) | 19.2 | % | 18.2 | % |
THREE MONTHS ENDED
|
||||||||||||||||||||||||
As reported
|
July 29, 2012
|
As reported
|
July 31, 2011
|
|||||||||||||||||||||
July 29,
|
Proforma Net
|
July 31,
|
Proforma Net
|
|||||||||||||||||||||
2012
|
Adjustments
|
of Adjustments
|
2011
|
Adjustments
|
of Adjustments
|
|||||||||||||||||||
Income before income taxes
|
$ | 5,372 | $ | - | $ | 5,372 | $ | 2,965 | $ | - | $ | 2,965 | ||||||||||||
Income taxes (3)
|
1,848 | $ | (817 | ) | $ | 1,031 | 1,145 | $ | (605 | ) | 540 | |||||||||||||
Net income
|
$ | 3,524 | $ | 817 | $ | 4,341 | $ | 1,820 | $ | 605 | $ | 2,425 | ||||||||||||
Net income per share-basic
|
$ | 0.28 | $ | (0.07 | ) | $ | 0.35 | $ | 0.14 | $ | (0.05 | ) | $ | 0.19 | ||||||||||
Net income per share-diluted
|
$ | 0.28 | $ | (0.06 | ) | $ | 0.34 | $ | 0.14 | $ | (0.05 | ) | $ | 0.18 | ||||||||||
Average shares outstanding-basic
|
12,551 | 12,551 | 12,551 | 13,061 | 13,061 | 13,061 | ||||||||||||||||||
Average shares outstanding-diluted
|
12,711 | 12,711 | 12,711 | 13,205 | 13,205 | 13,205 | ||||||||||||||||||
(1) Calculated by dividing consolidated income tax expense by
|
||||||||||||||||||||||||
consolidated income before income taxes.
|
||||||||||||||||||||||||
(2) Represents estimated income tax expense for our subsidiaries located
|
||||||||||||||||||||||||
in Canada and China divided by consolidated income before income taxes.
|
||||||||||||||||||||||||
(3) Proforma taxes calculated using the Consolidated Adjusted Effective Income Tax Rate as reflected above.
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
|||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF NET INCOME
|
|||||||||||||||||||||||
FOR THE THREE MONTHS ENDED JULY 29, 2012 AND JULY 31, 2011
|
|||||||||||||||||||||||
(UNAUDITED)
|
|||||||||||||||||||||||
(Amounts in Thousands, Except for Per Share Data)
|
|||||||||||||||||||||||
THREE MONTHS ENDED
|
|||||||||||||||||||||||
Amounts
|
Percent of Sales
|
||||||||||||||||||||||
July 29,
|
July 31,
|
% Over
|
July 29,
|
July 31,
|
|||||||||||||||||||
2012
|
2011
|
(Under)
|
2012
|
2011
|
|||||||||||||||||||
Net sales
|
$ | 69,184 | 60,270 | 14.8 | % | 100.0 | % | 100.0 | % | ||||||||||||||
Cost of sales
|
56,064 | 51,392 | 9.1 | % | 81.0 | % | 85.3 | % | |||||||||||||||
Gross profit
|
13,120 | 8,878 | 47.8 | % | 19.0 | % | 14.7 | % | |||||||||||||||
Selling, general and
|
|||||||||||||||||||||||
administrative expenses
|
7,641 | 5,757 | 32.7 | % | 11.0 | % | 9.6 | % | |||||||||||||||
Income from operations
|
5,479 | 3,121 | 75.6 | % | 7.9 | % | 5.2 | % | |||||||||||||||
Interest expense
|
190 | 220 | (13.6 | ) | % | 0.3 | % | 0.4 | % | ||||||||||||||
Interest income
|
(127 | ) | (129 | ) | (1.6 | ) | % | (0.2 | ) | % | (0.2 | ) | % | ||||||||||
Other expense
|
44 | 65 | (32.3 | ) | % | 0.1 | % | 0.1 | % | ||||||||||||||
Income before income taxes
|
5,372 | 2,965 | 81.2 | % | 7.8 | % | 4.9 | % | |||||||||||||||
Income taxes*
|
1,848 | 1,145 | 61.4 | % | 34.4 | % | 38.6 | % | |||||||||||||||
Net income
|
$ | 3,524 | 1,820 | 93.6 | % | 5.1 | % | 3.0 | % | ||||||||||||||
Net income per share-basic
|
$ | 0.28 | $ | 0.14 | 100.0 | % | |||||||||||||||||
Net income per share-diluted
|
$ | 0.28 | $ | 0.14 | 100.0 | % | |||||||||||||||||
Average shares outstanding-basic
|
12,551 | 13,061 | (3.9 | ) | % | ||||||||||||||||||
Average shares outstanding-diluted
|
12,711 | 13,205 | (3.7 | ) | % |
PRESENTATION OF ADJUSTED NET INCOME, ADJUSTED INCOME TAXES AND EARNINGS PER SHARE (1)
|
|||||||||||||||||||||
THREE MONTHS ENDED
|
|||||||||||||||||||||
Amounts
|
Percent of Sales
|
||||||||||||||||||||
July 29,
|
July 31,
|
% Over
|
July 29,
|
July 31,
|
|||||||||||||||||
2012
|
2011
|
(Under)
|
2012
|
2011
|
|||||||||||||||||
Income before income taxes (see above)
|
$ | 5,372 | 2,965 | 81.2 | % | 7.8 | % | 4.9 | % | ||||||||||||
Adjusted Income taxes (2)*
|
1,031 | 540 | 90.9 | % | 19.2 | % | 18.2 | % | |||||||||||||
Adjusted net income
|
4,341 | 2,425 | 79.0 | % | 6.3 | % | 4.0 | % | |||||||||||||
Adjusted net income per share-basic
|
$ | 0.35 | $ | 0.19 | 84.2 | % | |||||||||||||||
Adjusted net income per share-diluted
|
$ | 0.34 | $ | 0.18 | 88.9 | % | |||||||||||||||
Average shares outstanding-basic
|
12,551 | 13,061 | (3.9 | ) | % | ||||||||||||||||
Average shares outstanding-diluted
|
12,711 | 13,205 | (3.7 | ) | % |
CULP, INC. FINANCIAL INFORMATION RELEASE
|
|||||||||||||||||||||
CONSOLIDATED BALANCE SHEETS
|
|||||||||||||||||||||
JULY 29, 2012, JULY 31, 2011 AND APRIL 29, 2012
|
|||||||||||||||||||||
Unaudited
|
|||||||||||||||||||||
(Amounts in Thousands)
|
|||||||||||||||||||||
Amounts
|
Increase
|
||||||||||||||||||||
July 29,
|
July 31,
|
(Decrease)
|
* April 29,
|
||||||||||||||||||
2012
|
2011
|
Dollars
|
Percent
|
2012
|
|||||||||||||||||
Current assets
|
|||||||||||||||||||||
Cash and cash equivalents
|
$ | 21,889 | 14,570 | 7,319 | 50.2 | % | 25,023 | ||||||||||||||
Short-term investments
|
5,200 | 10,443 | (5,243 | ) | (50.2 | ) | % | 5,941 | |||||||||||||
Accounts receivable
|
20,021 | 18,905 | 1,116 | 5.9 | % | 25,055 | |||||||||||||||
Inventories
|
44,052 | 34,858 | 9,194 | 26.4 | % | 36,373 | |||||||||||||||
Deferred income taxes
|
2,337 | 1,237 | 1,100 | 88.9 | % | 2,467 | |||||||||||||||
Assets held for sale
|
15 | 75 | (60 | ) | (80.0 | ) | % | 15 | |||||||||||||
Income taxes receivable
|
- | 79 | (79 | ) | (100.0 | ) | % | - | |||||||||||||
Other current assets
|
2,563 | 2,862 | (299 | ) | (10.4 | ) | % | 1,989 | |||||||||||||
Total current assets
|
96,077 | 83,029 | 13,048 | 15.7 | % | 96,863 | |||||||||||||||
Property, plant & equipment, net
|
31,016 | 30,615 | 401 | 1.3 | % | 31,279 | |||||||||||||||
Goodwill | 11,462 | 11,462 | - | 0.0 | % | 11,462 | |||||||||||||||
Deferred income taxes
|
2,715 | 2,191 | 524 | 23.9 | % | 3,205 | |||||||||||||||
Other assets
|
1,890 | 2,010 | (120 | ) | (6.0 | ) | % | 1,907 | |||||||||||||
Total assets
|
$ | 143,160 | 129,307 | 13,853 | 10.7 | % | 144,716 | ||||||||||||||
Current liabilities
|
|||||||||||||||||||||
Current maturities of long-term debt
|
$ | 2,400 | 2,409 | (9 | ) | (0.4 | ) | % | 2,404 | ||||||||||||
Line of credit
|
834 | - | 834 | 100.0 | % | 889 | |||||||||||||||
Accounts payable - trade
|
27,284 | 25,022 | 2,262 | 9.0 | % | 30,663 | |||||||||||||||
Accounts payable - capital expenditures
|
152 | 342 | (190 | ) | (55.6 | ) | % | 169 | |||||||||||||
Accrued expenses
|
8,366 | 5,862 | 2,504 | 42.7 | % | 9,321 | |||||||||||||||
Accrued restructuring
|
40 | 41 | (1 | ) | (2.4 | ) | % | 40 | |||||||||||||
Deferred income taxes
|
- | 82 | (82 | ) | (100.0 | ) | % | - | |||||||||||||
Income taxes payable - current
|
751 | 345 | 406 | 117.7 | % | 642 | |||||||||||||||
Total current liabilities
|
39,827 | 34,103 | 5,724 | 16.8 | % | 44,128 | |||||||||||||||
Income taxes payable - long-term
|
4,131 | 4,178 | (47 | ) | (1.1 | ) | % | 4,164 | |||||||||||||
Deferred income taxes
|
705 | 596 | 109 | 18.3 | % | 705 | |||||||||||||||
Long-term debt , less current maturities
|
6,666 | 9,079 | (2,413 | ) | (26.6 | ) | % | 6,719 | |||||||||||||
Total liabilities
|
51,329 | 47,956 | 3,373 | 7.0 | % | 55,716 | |||||||||||||||
Shareholders' equity
|
91,831 | 81,351 | 10,480 | 12.9 | % | 89,000 | |||||||||||||||
Total liabilities and
|
|||||||||||||||||||||
shareholders' equity
|
$ | 143,160 | 129,307 | 13,853 | 10.7 | % | 144,716 | ||||||||||||||
Shares outstanding
|
12,656 | 13,181 | (525 | ) | (4.0 | ) | % | 12,703 |
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
FOR THE THREE MONTHS ENDED JULY 29, 2012 AND JULY 31, 2011
|
||||||||
Unaudited
|
||||||||
(Amounts in Thousands)
|
||||||||
THREE MONTHS ENDED
|
||||||||
Amounts
|
||||||||
July 29,
|
July 31,
|
|||||||
2012
|
2011
|
|||||||
Cash flows from operating activities:
|
|
|||||||
Net income | $ | 3,524 | $ | 1,820 | ||||
Adjustments to reconcile net income to net cash
|
||||||||
used in operating activities:
|
||||||||
Depreciation
|
1,254 | 1,187 | ||||||
Amortization of other assets
|
60 | 56 | ||||||
Stock-based compensation
|
70 | 77 | ||||||
Excess tax benefit related to stock-based compensation
|
(55 | ) | (31 | ) | ||||
Deferred income taxes
|
675 | 502 | ||||||
Foreign currency exchange gains
|
(80 | ) | (39 | ) | ||||
Changes in assets and liabilities:
|
||||||||
Accounts receivable
|
4,985 | 1,322 | ||||||
Inventories
|
(7,710 | ) | (6,080 | ) | ||||
Other current assets
|
(572 | ) | (486 | ) | ||||
Other assets
|
(43 | ) | (14 | ) | ||||
Accounts payable-trade
|
(3,288 | ) | 54 | |||||
Accrued expenses
|
(930 | ) | (1,750 | ) | ||||
Accrued restructuring
|
- | (3 | ) | |||||
Income taxes
|
148 | (257 | ) | |||||
Net cash used in operating activities
|
(1,962 | ) | (3,642 | ) | ||||
Cash flows from investing activities:
|
||||||||
Capital expenditures
|
(1,008 | ) | (1,304 | ) | ||||
Purchase of short-term investments
|
(25 | ) | (4,761 | ) | ||||
Proceeds from the sale of short-term investments
|
795 | 2,032 | ||||||
Net cash used in investing activities
|
(238 | ) | (4,033 | ) | ||||
Cash flows from financing activities:
|
||||||||
Payments on long-term debt
|
(50 | ) | (53 | ) | ||||
Proceeds from common stock issued
|
- | 169 | ||||||
Common stock shares repurchased
|
(470 | ) | (1,102 | ) | ||||
Dividends paid | (381 | ) | - | |||||
Excess tax benefit related to stock-based compensation
|
55 | 31 | ||||||
Net cash used in financing activities
|
(846 | ) | (955 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents
|
(88 | ) | 19 | |||||
Decrease in cash and cash equivalents
|
(3,134 | ) | (8,611 | ) | ||||
Cash and cash equivalents at beginning of period
|
25,023 | 23,181 | ||||||
Cash and cash equivalents at end of period
|
$ | 21,889 | $ | 14,570 | ||||
Free Cash Flow (1) | $ | (3,003 | ) | $ | (4,896 | ) | ||
(1) Free Cash Flow reconciliation is as follows:
|
||||||||
FY 2013
|
FY 2012
|
|||||||
A) Net cash used in operating activities
|
$ | (1,962 | ) | $ | (3,642 | ) | ||
B) Minus: Capital Expenditures
|
(1,008 | ) | (1,304 | ) | ||||
C) Add: Excess tax benefit related to stock-based compensation
|
55 | 31 | ||||||
D) Effects of exchange rate changes on cash and cash equivalents
|
(88 | ) | 19 | |||||
$ | (3,003 | ) | $ | (4,896 | ) | |||
CULP, INC. FINANCIAL INFORMATION RELEASE
|
||||||||||||||||||||||
STATEMENTS OF OPERATIONS BY SEGMENT
|
||||||||||||||||||||||
FOR THE THREE MONTHS ENDED JULY 29, 2012 AND JULY 31, 2011
|
||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||||||||
THREE MONTHS ENDED
|
||||||||||||||||||||||
Amounts
|
Percent of Total Sales
|
|||||||||||||||||||||
July 29,
|
July 31,
|
% Over
|
July 29,
|
July 31,
|
||||||||||||||||||
Net Sales by Segment
|
2012
|
2011
|
(Under)
|
2012
|
2011
|
|||||||||||||||||
Mattress Fabrics
|
$ | 37,964 | 32,170 | 18.0 | % | 54.9 | % | 53.4 | % | |||||||||||||
Upholstery Fabrics
|
31,220 | 28,100 | 11.1 | % | 45.1 | % | 46.6 | % | ||||||||||||||
Net Sales
|
$ | 69,184 | 60,270 | 14.8 | % | 100.0 | % | 100.0 | % | |||||||||||||
Gross Profit by Segment
|
Gross Profit Margin
|
|||||||||||||||||||||
Mattress Fabrics
|
$ | 7,622 | 5,137 | 48.4 | % | 20.1 | % | 16.0 | % | |||||||||||||
Upholstery Fabrics
|
5,498 | 3,741 | 47.0 | % | 17.6 | % | 13.3 | % | ||||||||||||||
Gross Profit
|
13,120 | 8,878 | 47.8 | % | 19.0 | % | 14.7 | % | ||||||||||||||
Selling, General and Administrative expenses by Segment
|
Percent of Sales
|
|||||||||||||||||||||
Mattress Fabrics
|
$ | 2,391 | 1,992 | 20.0 | % | 6.3 | % | 6.2 | % | |||||||||||||
Upholstery Fabrics
|
3,340 | 2,766 | 20.8 | % | 10.7 | % | 9.8 | % | ||||||||||||||
Unallocated Corporate expenses
|
1,910 | 999 | 91.2 | % | 2.8 | % | 1.7 | % | ||||||||||||||
Selling, general, and administrative expenses
|
7,641 | 5,757 | 32.7 | % | 11.0 | % | 9.6 | % | ||||||||||||||
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
|||||||||||||||||||||
Mattress Fabrics
|
$ | 5,230 | 3,146 | 66.2 | % | 13.8 | % | 9.8 | % | |||||||||||||
Upholstery Fabrics
|
2,159 | 974 | 121.7 | % | 6.9 | % | 3.5 | % | ||||||||||||||
Unallocated corporate expenses
|
(1,910 | ) | (999 | ) | 91.2 | % | (2.8 | ) | % | (1.7 | ) | % | ||||||||||
Operating income
|
5,479 | 3,121 | 75.6 | % | 7.9 | % | 5.2 | % | ||||||||||||||
Return on Capital (1)
|
||||||||||||||||||||||
Mattress Fabrics
|
37.8 | % | 23.2 | % | ||||||||||||||||||
Upholstery Fabrics
|
51.6 | % | 33.2 | % | ||||||||||||||||||
Unallocated Corporate
|
N/A | N/A | ||||||||||||||||||||
Consolidated
|
30.6 | % | 18.9 | % | ||||||||||||||||||
Capital Employed (2)
|
||||||||||||||||||||||
Mattress Fabrics
|
56,803 | 55,994 | 1.4 | % | ||||||||||||||||||
Upholstery Fabrics
|
18,967 | 13,176 | 44.0 | % | ||||||||||||||||||
Unallocated Corporate
|
(593 | ) | 350 | N/A | ||||||||||||||||||
Consolidated
|
75,177 | 69,520 | 8.1 | % | ||||||||||||||||||
Depreciation by Segment
|
||||||||||||||||||||||
Mattress Fabrics
|
$ | 1,092 | 1,029 | 6.1 | % | |||||||||||||||||
Upholstery Fabrics
|
162 | 158 | 2.5 | % | ||||||||||||||||||
Subtotal
|
1,254 | 1,187 | 5.6 | % |
CULP, INC. FINANCIAL INFORMATION RELEASE
|
RETURN ON CAPITAL EMPLOYED BY SEGMENT
|
FOR THE THREE MONTHS ENDED JULY 29, 2012
|
(Amounts in Thousands)
|
(Unaudited)
|
Operating Income
|
||||||||||||||||||||||||||||||||
Three Months
|
|
|
||||||||||||||||||||||||||||||
Ended
|
Average
|
Return on
|
||||||||||||||||||||||||||||||
July 29,
2012 (1)
|
Capital
Employed (3) |
Avg. Capital
Employed (2) |
||||||||||||||||||||||||||||||
Mattress Fabrics
|
$ | 5,230 | $ | 55,357 | 37.8 | % | ||||||||||||||||||||||||||
Upholstery Fabrics
|
2,159 | 16,743 | 51.6 | % | ||||||||||||||||||||||||||||
(less: Unallocated Corporate)
|
(1,910 | ) | (567 | ) | N/A | |||||||||||||||||||||||||||
Total
|
$ | 5,479 | $ | 71,532 | 30.6 | % | ||||||||||||||||||||||||||
Average Capital Employed
|
As of the three Months Ended July 29, 2012
|
As of the three Months Ended April 29, 2012
|
||||||||||||||||||||||||||||||
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
|||||||||||||||||||||||||||
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||
Total assets
|
78,098 | 29,973 | 35,089 | 143,160 | 71,563 | 33,641 | 39,512 | 144,716 | ||||||||||||||||||||||||
Total liabilities
|
(21,295 | ) | (11,006 | ) | (19,028 | ) | (51,329 | ) | (17,653 | ) | (19,123 | ) | (18,940 | ) | (55,716 | ) | ||||||||||||||||
Subtotal
|
$ | 56,803 | $ | 18,967 | $ | 16,061 | $ | 91,831 | $ | 53,910 | $ | 14,518 | $ | 20,572 | $ | 89,000 | ||||||||||||||||
Less:
|
||||||||||||||||||||||||||||||||
Cash and cash equivalents
|
- | - | (21,889 | ) | (21,889 | ) | - | - | (25,023 | ) | (25,023 | ) | ||||||||||||||||||||
Short-term investments
|
- | - | (5,200 | ) | (5,200 | ) | - | - | (5,941 | ) | (5,941 | ) | ||||||||||||||||||||
Deferred income taxes - current
|
- | - | (2,337 | ) | (2,337 | ) | - | - | (2,467 | ) | (2,467 | ) | ||||||||||||||||||||
Deferred income taxes - non-current
|
- | - | (2,715 | ) | (2,715 | ) | - | - | (3,205 | ) | (3,205 | ) | ||||||||||||||||||||
Current maturities of long-term debt
|
- | - | 2,400 | 2,400 | - | - | 2,404 | 2,404 | ||||||||||||||||||||||||
Line of credit
|
- | - | 834 | 834 | 889 | 889 | ||||||||||||||||||||||||||
Income taxes payable - current
|
- | - | 751 | 751 | - | - | 642 | 642 | ||||||||||||||||||||||||
Income taxes payable - long-term
|
- | - | 4,131 | 4,131 | - | - | 4,164 | 4,164 | ||||||||||||||||||||||||
Deferred income taxes - non-current
|
- | - | 705 | 705 | - | - | 705 | 705 | ||||||||||||||||||||||||
Long-term debt, less current maturities
|
- | - | 6,666 | 6,666 | - | - | 6,719 | 6,719 | ||||||||||||||||||||||||
Total Capital Employed
|
$ | 56,803 | $ | 18,967 | $ | (593 | ) | $ | 75,177 | $ | 53,910 | $ | 14,518 | $ | (541 | ) | $ | 67,887 | ||||||||||||||
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||||||||||||||||||
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||
Average Capital Employed (3)
|
$ | 55,357 | $ | 16,743 | $ | (567 | ) | $ | 71,532 | |||||||||||||||||||||||
Notes:
|
(1) Operating income excludes restructuring and related charges--see reconciliation per page 4 of this financial information release.
|
(2) Return on average capital employed represents operating income for the three month period ending July 29, 2012 times four quarters
|
to arrive at an annualized value then divided by average capital employed. Average capital employed does not include cash and cash equivalents,
|
short-term investments, long-term debt, including current maturities, line of credit, current and noncurrent deferred tax assets and liabilities, and
|
income taxes payable.
|
(3) Average capital employed was computed using the two periods ending July 29, 2012 and April 29, 2012.
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
RETURN ON CAPITAL EMPLOYED BY SEGMENT
|
FOR THE THREE MONTHS ENDED JULY 31, 2011
|
(Amounts in Thousands)
|
(Unaudited)
|
Operating Income
|
||||||||||||||||||||||||||||||||
Three Months
|
|
|
||||||||||||||||||||||||||||||
Ended
|
Average
|
Return on
|
||||||||||||||||||||||||||||||
July 31,
2011 (1)
|
Capital
Employed (3) |
Avg. Capital
Employed (2) |
||||||||||||||||||||||||||||||
Mattress Fabrics
|
$ | 3,146 | $ | 54,313 | 23.2 | % | ||||||||||||||||||||||||||
Upholstery Fabrics
|
974 | 11,747 | 33.2 | % | ||||||||||||||||||||||||||||
(less: Unallocated Corporate)
|
(999 | ) | (39 | ) | N/A | |||||||||||||||||||||||||||
Total
|
$ | 3,121 | $ | 66,021 | 18.9 | % | ||||||||||||||||||||||||||
Average Capital Employed
|
As of the three Months Ended July 31, 2011
|
As of the three Months Ended May 1, 2011
|
||||||||||||||||||||||||||||||
Mattress
|
Upholstery
|
Unallocated
|
Mattress
|
Upholstery
|
Unallocated
|
|||||||||||||||||||||||||||
Fabrics
|
Fabrics
|
Corporate
|
Total
|
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||
Total assets
|
71,325 | 26,683 | 31,299 | 129,307 | 66,637 | 25,929 | 37,485 | 130,051 | ||||||||||||||||||||||||
Total liabilities
|
(15,331 | ) | (13,507 | ) | (19,118 | ) | (47,956 | ) | (14,005 | ) | (15,612 | ) | (20,093 | ) | (49,710 | ) | ||||||||||||||||
Subtotal
|
$ | 55,994 | $ | 13,176 | $ | 12,181 | $ | 81,351 | $ | 52,632 | $ | 10,317 | $ | 17,392 | $ | 80,341 | ||||||||||||||||
Less:
|
||||||||||||||||||||||||||||||||
Cash and cash equivalents
|
- | - | (14,570 | ) | (14,570 | ) | - | - | (23,181 | ) | (23,181 | ) | ||||||||||||||||||||
Short-term investments
|
- | - | (10,443 | ) | (10,443 | ) | - | - | (7,699 | ) | (7,699 | ) | ||||||||||||||||||||
Deferred income taxes - current
|
- | - | (1,237 | ) | (1,237 | ) | - | - | (1,381 | ) | (1,381 | ) | ||||||||||||||||||||
Income taxes receivable
|
- | - | (79 | ) | (79 | ) | - | - | (79 | ) | (79 | ) | ||||||||||||||||||||
Deferred income taxes - non-current
|
- | - | (2,191 | ) | (2,191 | ) | - | - | (2,518 | ) | (2,518 | ) | ||||||||||||||||||||
Current maturities of long-term debt
|
- | - | 2,409 | 2,409 | - | - | 2,412 | 2,412 | ||||||||||||||||||||||||
Deferred income taxes - current
|
82 | 82 | 82 | 82 | ||||||||||||||||||||||||||||
Income taxes payable - current
|
- | - | 345 | 345 | - | - | 646 | 646 | ||||||||||||||||||||||||
Income taxes payable - long-term
|
- | - | 4,178 | 4,178 | - | - | 4,167 | 4,167 | ||||||||||||||||||||||||
Deferred income taxes - non-current
|
- | - | 596 | 596 | - | - | 596 | 596 | ||||||||||||||||||||||||
Long-term debt, less current maturities
|
- | - | 9,079 | 9,079 | - | - | 9,135 | 9,135 | ||||||||||||||||||||||||
Total Capital Employed
|
$ | 55,994 | $ | 13,176 | $ | 350 | $ | 69,520 | $ | 52,632 | $ | 10,317 | $ | (428 | ) | $ | 62,521 | |||||||||||||||
Mattress
|
Upholstery
|
Unallocated
|
||||||||||||||||||||||||||||||
Fabrics
|
Fabrics
|
Corporate
|
Total
|
|||||||||||||||||||||||||||||
Average Capital Employed (3)
|
$ | 54,313 | $ | 11,747 | $ | (39 | ) | $ | 66,021 | |||||||||||||||||||||||
Notes:
|
(1) Operating income excludes restructuring and related charges--see reconciliation per page 4 of this financial information release.
|
(2) Return on average capital employed represents operating income for the three month period ending July 31, 2011 times four quarters
|
to arrive at an annualized value then divided by average capital employed. Average capital employed does not include cash and cash equivalents,
|
short-term investments, long-term debt, including current maturities, current and noncurrent deferred tax assets and liabilities, income taxes payable,
|
and income taxes receivable.
|
(3) Average capital employed was computed using the two periods ending July 31, 2011 and May 1, 2011.
|
CULP, INC. FINANCIAL INFORMATION RELEASE
|
CONSOLIDATED ADJUSTED EFFECTIVE INCOME TAX RATE, NET INCOME AND EARNINGS PER SHARE
|
FOR THE THREE MONTHS ENDED JULY 29, 2012 AND JULY 31, 2011
|
Unaudited
|
(Amounts in Thousands)
|
THREE MONTHS ENDED | |||||||||||
Amounts | |||||||||||
July 29,
|
July 31
|
||||||||||
2012
|
2011
|
||||||||||
Consolidated Effective GAAP Income Tax Rate
|
(1 | ) | 34.4 | % | 38.6 | % | |||||
Non-Cash U.S. Income Tax Expense
|
(15.0 | ) % | (18.5 | ) % | |||||||
Non-Cash Foreign Income Tax Expense
|
(0.2 | ) % | (1.9 | ) % | |||||||
Consolidated Adjusted Effective Income Tax Rate
|
(2 | ) | 19.2 | % | 18.2 | % |
THREE MONTHS ENDED
|
||||||||||||||||||||||||
As reported
|
July 29, 2012
|
As reported
|
July 31, 2011
|
|||||||||||||||||||||
July 29,
|
Proforma Net
|
July 31,
|
Proforma Net
|
|||||||||||||||||||||
2012
|
Adjustments
|
of Adjustments
|
2011
|
Adjustments
|
of Adjustments
|
|||||||||||||||||||
Income before income taxes
|
$ | 5,372 | $ | - | $ | 5,372 | $ | 2,965 | $ | - | $ | 2,965 | ||||||||||||
Income taxes (3)
|
1,848 | $ | (817 | ) | $ | 1,031 | 1,145 | $ | (605 | ) | 540 | |||||||||||||
Net income
|
$ | 3,524 | $ | 817 | $ | 4,341 | $ | 1,820 | $ | 605 | $ | 2,425 | ||||||||||||
Net income per share-basic
|
$ | 0.28 | $ | (0.07 | ) | $ | 0.35 | $ | 0.14 | $ | (0.05 | ) | $ | 0.19 | ||||||||||
Net income per share-diluted
|
$ | 0.28 | $ | (0.06 | ) | $ | 0.34 | $ | 0.14 | $ | (0.05 | ) | $ | 0.18 | ||||||||||
Average shares outstanding-basic
|
12,551 | 12,551 | 12,551 | 13,061 | 13,061 | 13,061 | ||||||||||||||||||
Average shares outstanding-diluted
|
12,711 | 12,711 | 12,711 | 13,205 | 13,205 | 13,205 |
(1) Calculated by dividing consolidated income tax expense by consolidated income before income taxes.
|
|||||||||||||||||
|
|||||||||||||||||
(2) Represents estimated income tax expense for our subsidiaries located in Canada and China divided by consolidated income before income taxes.
|
|||||||||||||||||
|
|||||||||||||||||
(3) Proforma taxes calculated using the Consolidated Adjusted Effective Income Tax Rate as reflected above.
|