Culp, Inc. (NYSE: CULP) (together with its consolidated subsidiaries, “CULP”) today reported financial and operating results for the third quarter ended January 29, 2023.
Fiscal 2023 Third Quarter Financial Summary
Financial Outlook
Commenting on the results, Iv Culp, president and chief executive officer of Culp, Inc., said, “As expected, our sales and operating results for the third quarter reflected demand weakness in the domestic mattress and residential home furnishings industries, specifically related to unit volume. Our performance was affected by fewer billing days during the quarter due to our customers taking longer than normal holiday shutdowns in the face of high retail inventories and reduced consumer demand. Sales were also affected by the timing of the Chinese New Year holiday, which this year fell primarily within the third quarter, rather than the fourth quarter.
"Despite the headwinds, we continued our focus on cash preservation and working capital management, including inventory reductions, throughout the quarter. We have generated cash flow from operations of $4.6 million and free cash flow of $2.5 million for the first nine months of the fiscal year, a significant improvement compared to the same period last year, ending the quarter with $16.7 million in cash and no outstanding borrowings. We also completed the closing of a new credit facility that supplements our strong balance sheet by providing enhanced liquidity and flexibility as we navigate the ongoing market volatility.
"We remain focused on the long term and continue to diligently manage the aspects of our business we can control. We are especially pleased with the business transformation plan underway in our mattress fabrics segment, and we expect sustained sequential improvement in this business as we implement management changes and new processes tailored to improve operational efficiencies, optimize our supply chain, and strengthen customer relationships. Additionally, it was encouraging to see the activity level at the January Las Vegas market. The industry has previously been in a cycle of deferring new product introductions, which affects our unit volume, so we were pleased to see many new products and innovations presented at this market featuring CULP mattress fabrics and sewn covers that are launching throughout calendar 2023.
"Based on demand trends and customer sentiment, we began a rationalization and consolidation of our cut and sew upholstery kit platform in Haiti near the end of the quarter. This restructuring, which will be completed during the fourth quarter, realigns our capacity and costs with current demand levels for upholstery kits, while still allowing us to support our customers and scale for additional capacity if conditions improve. We expect annualized savings of approximately $1.5 million from this initiative, and will recoup $2.4 million in prepaid rent expense over the next six and half years.
"Looking ahead, while we expect current macro conditions will affect our business through at least the end of this fiscal year, our market position remains solid, and we continue to gain new product opportunities with customers. We are diligently focused on returning to profitability and taking the necessary steps to withstand the current market challenges, while also engaging in a holistic business improvement strategy that will position us to emerge stronger when conditions normalize,” added Culp.
Segment Update
Mattress Fabrics Segment (“CHF”) Summary
Upholstery Fabrics Segment (“CUF”) Summary
Balance Sheet and Cash Flow
Dividends and Share Repurchases
To preserve liquidity and support future growth opportunities, the company’s Board of Directors suspended the company’s quarterly cash dividend on its common stock in June of 2022.
The company did not repurchase any shares during the third quarter of fiscal 2023, leaving approximately $3.2 million available under the current share repurchase program as of January 29, 2023. Despite the current share repurchase authorization, the company does not expect to repurchase any shares during the fourth quarter of fiscal 2023.
Conference Call
Culp, Inc. will hold a conference call to discuss financial results for the third quarter of fiscal 2023 on March 2, 2023, at 11:00 a.m. Eastern Time. A live webcast of this call can be accessed on the “Upcoming Events” section on the investor relations page of the company’s website, www.culp.com. A replay of the webcast will be available for 30 days under the “Past Events” section on the investor relations page of the company’s website, beginning at 2:00 p.m. Eastern Time on March 2, 2023.
About the Company
Culp, Inc. is one of the world’s largest marketers of mattress fabrics for bedding and upholstery fabrics for residential and commercial furniture. The company markets a variety of fabrics to its global customer base of leading bedding and furniture companies, including fabrics produced at Culp’s manufacturing facilities and fabrics sourced through other suppliers. Culp has manufacturing and sourcing capabilities located in the United States, Canada, China, Haiti, Turkey, and Vietnam.
Forward Looking Statements
This release contains “forward-looking statements” within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934). Such statements are inherently subject to risks and uncertainties that may cause actual events and results to differ materially from such statements. Further, forward looking statements are intended to speak only as of the date on which they are made, and we disclaim any duty to update such statements to reflect any changes in management’s expectations or any change in the assumptions or circumstances on which such statements are based, whether due to new information, future events, or otherwise. Forward-looking statements are statements that include projections, expectations, or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often but not always characterized by qualifying words such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “plan,” “project,” and their derivatives, and include but are not limited to statements about expectations, projections, or trends for our future operations, strategic initiatives and plans, production levels, new product launches, sales, profit margins, profitability, operating income, capital expenditures, working capital levels, cost savings, income taxes, SG&A or other expenses, pre-tax income, earnings, cash flow, and other performance or liquidity measures, as well as any statements regarding dividends, share repurchases, liquidity, use of cash and cash requirements, borrowing capacity, investments, potential acquisitions, future economic or industry trends, public health epidemics, or future developments. There can be no assurance that we will realize these expectations or meet our guidance, or that these beliefs will prove correct.
Factors that could influence the matters discussed in such statements include the level of housing starts and sales of existing homes, consumer confidence, trends in disposable income, and general economic conditions. Decreases in these economic indicators could have a negative effect on our business and prospects. Likewise, increases in interest rates, particularly home mortgage rates, and increases in consumer debt or the general rate of inflation, could affect us adversely. The future performance of our business depends in part on our success in conducting and finalizing acquisition negotiations and integrating acquired businesses into our existing operations. Changes in consumer tastes or preferences toward products not produced by us could erode demand for our products. Changes in tariffs or trade policy, including changes in U.S. trade enforcement priorities, or changes in the value of the U.S. dollar versus other currencies, could affect our financial results because a significant portion of our operations are located outside the United States. Strengthening of the U.S. dollar against other currencies could make our products less competitive on the basis of price in markets outside the United States, and strengthening of currencies in Canada and China can have a negative impact on our sales of products produced in those places. Also, economic or political instability in international areas could affect our operations or sources of goods in those areas, as well as demand for our products in international markets. The impact of public health epidemics on employees, customers, suppliers, and the global economy, such as the global coronavirus pandemic currently affecting countries around the world, could also adversely affect our operations and financial performance. In addition, the impact of potential goodwill or intangible asset impairments could affect our financial results. Increases in freight costs, labor costs, and raw material prices, including increases in market prices for petrochemical products, can also significantly affect the prices we pay for shipping, labor, and raw materials, respectively, and in turn, increase our operating costs and decrease our profitability. Finally, disruption in our customers’ supply chains for non-fabric components may cause declines in new orders and/or delayed shipping of existing orders while our customers wait for other components, which could adversely affect our financial results. Further information about these factors, as well as other factors that could affect our future operations or financial results and the matters discussed in forward-looking statements, is included in Item 1A “Risk Factors” in our most recent Form 10-K and Form 10-Q reports filed with the Securities and Exchange Commission. A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. Additional risks and uncertainties that we do not presently know about or that we currently consider to be immaterial may also affect our business operations and financial results.
CULP, INC. |
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CONSOLIDATED STATEMENTS OF NET LOSS |
||||||||||||||||||||
FOR THREE MONTHS ENDED JANUARY 29, 2023, AND JANUARY 30, 2022 |
||||||||||||||||||||
Unaudited |
||||||||||||||||||||
(Amounts in Thousands, Except for Per Share Data) |
||||||||||||||||||||
|
|
|||||||||||||||||||
|
|
THREE MONTHS ENDED |
|
|||||||||||||||||
|
|
Amount |
|
|
|
|
|
Percent of Sales |
|
|||||||||||
|
|
(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
January 29, |
|
|
January 30, |
|
|
% Over |
|
|
January 29, |
|
|
January 30, |
|
|||||
|
|
2023 |
|
|
2022 |
|
|
(Under) |
|
|
2023 |
|
|
2022 |
|
|||||
Net sales |
|
$ |
52,523 |
|
|
$ |
80,291 |
|
|
|
(34.6 |
)% |
|
|
100.0 |
% |
|
|
100.0 |
% |
Cost of sales |
|
|
(50,430 |
) |
|
|
(71,181 |
) |
|
|
(29.2 |
)% |
|
|
96.0 |
% |
|
|
88.7 |
% |
Gross profit |
|
|
2,093 |
|
|
|
9,110 |
|
|
|
(77.0 |
)% |
|
|
4.0 |
% |
|
|
11.3 |
% |
Selling, general and administrative expenses |
|
|
(9,165 |
) |
|
|
(8,007 |
) |
|
|
14.5 |
% |
|
|
17.4 |
% |
|
|
10.0 |
% |
Restructuring expense (2) |
|
|
(711 |
) |
|
|
— |
|
|
|
100.0 |
% |
|
|
1.4 |
% |
|
|
— |
|
(Loss) income from operations |
|
|
(7,783 |
) |
|
|
1,103 |
|
|
N.M. |
|
|
|
(14.8 |
)% |
|
|
1.4 |
% |
|
Interest income |
|
|
196 |
|
|
|
214 |
|
|
|
(8.4 |
)% |
|
|
0.4 |
% |
|
|
0.3 |
% |
Other expense |
|
|
(1,095 |
) |
|
|
(322 |
) |
|
|
240.1 |
% |
|
|
(2.1 |
)% |
|
|
0.4 |
% |
(Loss) income before income taxes |
|
|
(8,682 |
) |
|
|
995 |
|
|
N.M. |
|
|
|
(16.5 |
)% |
|
|
1.2 |
% |
|
Income tax expense (1) |
|
|
(286 |
) |
|
|
(1,284 |
) |
|
|
(77.7 |
)% |
|
|
(3.3 |
)% |
|
|
129.0 |
% |
Net loss |
|
$ |
(8,968 |
) |
|
$ |
(289 |
) |
|
N.M |
|
|
|
(17.1 |
)% |
|
|
(0.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net loss per share - basic |
|
$ |
(0.73 |
) |
|
$ |
(0.02 |
) |
|
N.M. |
|
|
|
|
|
|
|
|||
Net loss per share - diluted |
|
$ |
(0.73 |
) |
|
$ |
(0.02 |
) |
|
N.M. |
|
|
|
|
|
|
|
|||
Average shares outstanding-basic |
|
|
12,299 |
|
|
|
12,212 |
|
|
|
0.7 |
% |
|
|
|
|
|
|
||
Average shares outstanding-diluted |
|
|
12,299 |
|
|
|
12,212 |
|
|
|
0.7 |
% |
|
|
|
|
|
|
Notes |
||
|
||
(1) |
Percent of sales column for income tax expense is calculated as a % of (loss) income before income taxes. |
|
(2) |
Restructuring expense of $711,000 for the three-months ending January 29, 2023, represents lease termination costs of $434,000 and an impairment loss regarding leasehold improvements totaling $277,000 that related to the consolidation of certain leased facilities located in Ouanaminthe, Haiti. |
|
(3) |
See page 14 for our Reconciliation of Selected Income Statement Information to Adjusted Results for the three-months ending January 29, 2023. |
CULP, INC. |
||||||||||||||||||||
CONSOLIDATED STATEMENTS OF NET (LOSS) INCOME |
||||||||||||||||||||
FOR NINE MONTHS ENDED JANUARY 29, 2023, AND JANUARY 30, 2022 |
||||||||||||||||||||
Unaudited |
||||||||||||||||||||
(Amounts in Thousands, Except for Per Share Data) |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
NINE MONTHS ENDED |
|
|||||||||||||||||
|
|
Amount |
|
|
|
|
|
Percent of Sales |
|
|||||||||||
|
|
(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
January 29, |
|
|
January 30, |
|
|
% Over |
|
|
January 29, |
|
|
January 30, |
|
|||||
|
|
2023 |
|
|
2022 |
|
|
(Under) |
|
|
2023 |
|
|
2022 |
|
|||||
Net sales |
|
$ |
173,508 |
|
|
$ |
237,899 |
|
|
|
(27.1 |
)% |
|
|
100.0 |
% |
|
|
100.0 |
% |
Cost of sales (2) |
|
|
(169,500 |
) |
|
|
(205,563 |
) |
|
|
(17.5 |
)% |
|
|
97.7 |
% |
|
|
86.4 |
% |
Gross profit |
|
|
4,008 |
|
|
|
32,336 |
|
|
|
(87.6 |
)% |
|
|
2.3 |
% |
|
|
13.6 |
% |
Selling, general and administrative expenses |
|
|
(27,133 |
) |
|
|
(26,275 |
) |
|
|
3.3 |
% |
|
|
15.6 |
% |
|
|
11.0 |
% |
Restructuring expense (3) |
|
|
(1,326 |
) |
|
|
— |
|
|
|
100.0 |
% |
|
|
0.8 |
% |
|
|
— |
|
(Loss) income from operations |
|
|
(24,451 |
) |
|
|
6,061 |
|
|
N.M. |
|
|
|
(14.1 |
)% |
|
|
2.5 |
% |
|
Interest income |
|
|
292 |
|
|
|
347 |
|
|
|
(15.9 |
)% |
|
|
0.2 |
% |
|
|
0.1 |
% |
Other expense |
|
|
(348 |
) |
|
|
(963 |
) |
|
|
(63.9 |
)% |
|
|
0.2 |
% |
|
|
0.4 |
% |
(Loss) income before income taxes |
|
|
(24,507 |
) |
|
|
5,445 |
|
|
N.M. |
|
|
|
(14.1 |
)% |
|
|
2.3 |
% |
|
Income tax expense (1) |
|
|
(2,332 |
) |
|
|
(2,633 |
) |
|
|
(11.4 |
)% |
|
|
(9.5 |
)% |
|
|
48.4 |
% |
Net (loss) income |
|
$ |
(26,839 |
) |
|
$ |
2,812 |
|
|
N.M. |
|
|
|
(15.5 |
)% |
|
|
1.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net (loss) income per share - basic |
|
$ |
(2.19 |
) |
|
$ |
0.23 |
|
|
N.M. |
|
|
|
|
|
|
|
|||
Net (loss) income per share - diluted |
|
$ |
(2.19 |
) |
|
$ |
0.23 |
|
|
N.M. |
|
|
|
|
|
|
|
|||
Average shares outstanding-basic |
|
|
12,272 |
|
|
|
12,249 |
|
|
|
0.2 |
% |
|
|
|
|
|
|
||
Average shares outstanding-diluted |
|
|
12,272 |
|
|
|
12,341 |
|
|
|
(0.6 |
)% |
|
|
|
|
|
|
Notes |
||
|
|
|
(1) |
Percent of sales column for income tax expense is calculated as a % of (loss) income before income taxes. |
|
|
|
|
(2) |
Cost of sales for the nine-months ending January 29, 2023, includes restructuring related charges totaling $98,000 which pertained to a loss on disposal and markdowns of inventory related to the exit of our cut and sew upholstery fabrics operation located in Shanghai, China that occurred during the second quarter of fiscal 2023. |
|
|
|
|
(3) |
Restructuring expense of $1.3 million for the nine-months ending January 29, 2023, relates to both our restructuring activities for our cut and sew upholstery fabrics operations located in Shanghai, China, which occurred during the second quarter of fiscal 2023, and located in Ouanaminthe, Haiti, which occurred during the third quarter of fiscal 2023. Restructuring expense consists of lease termination costs of $481,000, employee termination benefits of $468,000, impairment losses totaling $357,000 that relate to leasehold improvements and equipment, and $20,000 for other associated costs. |
|
|
|
|
(4) |
See page 15 for our Reconciliation of Selected Income Statement Information to Adjusted Results for the nine-months ending January 29, 2023. |
CONSOLIDATED BALANCE SHEETS |
||||||||||||||||||||
JANUARY 29, 2023, JANUARY 30, 2022, AND MAY 1, 2022 |
||||||||||||||||||||
Unaudited |
||||||||||||||||||||
(Amounts in Thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Amounts |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
(Condensed) |
|
|
(Condensed) |
|
|
|
|
|
|
|
|
(Condensed) |
|
|||||
|
|
January 29, |
|
|
January 30, |
|
|
Increase (Decrease) |
|
|
* May 1, |
|
||||||||
|
|
2023 |
|
|
2022 |
|
|
Dollars |
|
|
Percent |
|
|
2022 |
|
|||||
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents |
|
$ |
16,725 |
|
|
|
11,780 |
|
|
|
4,945 |
|
|
|
42.0 |
% |
|
|
14,550 |
|
Short-term investments - Held-To-Maturity |
|
|
— |
|
|
|
1,315 |
|
|
|
(1,315 |
) |
|
|
(100.0 |
)% |
|
|
— |
|
Short-term investments - Available for Sale |
|
|
— |
|
|
|
438 |
|
|
|
(438 |
) |
|
|
(100.0 |
)% |
|
|
— |
|
Short-term investments - Rabbi Trust |
|
|
2,420 |
|
|
|
— |
|
|
|
2,420 |
|
|
|
100.0 |
% |
|
|
— |
|
Accounts receivable |
|
|
21,241 |
|
|
|
38,998 |
|
|
|
(17,757 |
) |
|
|
(45.5 |
)% |
|
|
22,226 |
|
Inventories |
|
|
47,627 |
|
|
|
73,133 |
|
|
|
(25,506 |
) |
|
|
(34.9 |
)% |
|
|
66,557 |
|
Assets held for sale |
|
|
1,950 |
|
|
|
— |
|
|
|
1,950 |
|
|
|
100.0 |
% |
|
|
— |
|
Current income taxes receivable |
|
|
238 |
|
|
|
367 |
|
|
|
(129 |
) |
|
|
(35.1 |
)% |
|
|
857 |
|
Other current assets |
|
|
2,839 |
|
|
|
4,419 |
|
|
|
(1,580 |
) |
|
|
(35.8 |
)% |
|
|
2,986 |
|
Total current assets |
|
|
93,040 |
|
|
|
130,450 |
|
|
|
(37,410 |
) |
|
|
(28.7 |
)% |
|
|
107,176 |
|
Property, plant & equipment, net |
|
|
37,192 |
|
|
|
42,778 |
|
|
|
(5,586 |
) |
|
|
(13.1 |
)% |
|
|
41,702 |
|
Right of use assets |
|
|
8,913 |
|
|
|
16,595 |
|
|
|
(7,682 |
) |
|
|
(46.3 |
)% |
|
|
15,577 |
|
Intangible assets |
|
|
2,346 |
|
|
|
2,722 |
|
|
|
(376 |
) |
|
|
(13.8 |
)% |
|
|
2,628 |
|
Long-term investments - Rabbi Trust |
|
|
7,725 |
|
|
|
9,223 |
|
|
|
(1,498 |
) |
|
|
(16.2 |
)% |
|
|
9,357 |
|
Long-term investments - Held-To-Maturity |
|
|
— |
|
|
|
8,677 |
|
|
|
(8,677 |
) |
|
|
(100.0 |
)% |
|
|
— |
|
Deferred income taxes |
|
|
463 |
|
|
|
500 |
|
|
|
(37 |
) |
|
|
(7.4 |
)% |
|
|
528 |
|
Other assets |
|
|
919 |
|
|
|
622 |
|
|
|
297 |
|
|
|
47.7 |
% |
|
|
595 |
|
Total assets |
|
$ |
150,598 |
|
|
|
211,567 |
|
|
|
(60,969 |
) |
|
|
(28.8 |
)% |
|
|
177,563 |
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Accounts payable - trade |
|
|
22,540 |
|
|
|
46,690 |
|
|
|
(24,150 |
) |
|
|
(51.7 |
)% |
|
|
20,099 |
|
Accounts payable - capital expenditures |
|
|
25 |
|
|
|
33 |
|
|
|
(8 |
) |
|
|
(24.2 |
)% |
|
|
473 |
|
Operating lease liability - current |
|
|
2,785 |
|
|
|
3,295 |
|
|
|
(510 |
) |
|
|
(15.5 |
)% |
|
|
3,219 |
|
Deferred compensation |
|
|
2,420 |
|
|
|
— |
|
|
|
2,420 |
|
|
|
100.0 |
% |
|
|
— |
|
Deferred revenue |
|
|
1,430 |
|
|
|
518 |
|
|
|
912 |
|
|
|
176.1 |
% |
|
|
520 |
|
Accrued expenses |
|
|
6,701 |
|
|
|
8,446 |
|
|
|
(1,745 |
) |
|
|
(20.7 |
)% |
|
|
7,832 |
|
Income taxes payable - current |
|
|
467 |
|
|
|
240 |
|
|
|
227 |
|
|
|
94.6 |
% |
|
|
413 |
|
Total current liabilities |
|
|
36,368 |
|
|
|
59,222 |
|
|
|
(22,854 |
) |
|
|
(38.6 |
)% |
|
|
32,556 |
|
Operating lease liability - long-term |
|
|
4,399 |
|
|
|
7,848 |
|
|
|
(3,449 |
) |
|
|
(43.9 |
)% |
|
|
7,062 |
|
Income taxes payable - long-term |
|
|
2,648 |
|
|
|
3,099 |
|
|
|
(451 |
) |
|
|
(14.6 |
)% |
|
|
3,097 |
|
Deferred income taxes |
|
|
6,089 |
|
|
|
5,484 |
|
|
|
605 |
|
|
|
11.0 |
% |
|
|
6,004 |
|
Deferred compensation |
|
|
7,590 |
|
|
|
9,180 |
|
|
|
(1,590 |
) |
|
|
(17.3 |
)% |
|
|
9,343 |
|
Total liabilities |
|
|
57,094 |
|
|
|
84,833 |
|
|
|
(27,739 |
) |
|
|
(32.7 |
)% |
|
|
58,062 |
|
Shareholders' equity |
|
|
93,504 |
|
|
|
126,734 |
|
|
|
(33,230 |
) |
|
|
(26.2 |
)% |
|
|
119,501 |
|
Total liabilities and shareholders' equity |
|
$ |
150,598 |
|
|
|
211,567 |
|
|
|
(60,969 |
) |
|
|
(28.8 |
)% |
|
|
177,563 |
|
Shares outstanding |
|
|
12,312 |
|
|
|
12,218 |
|
|
|
94 |
|
|
|
0.8 |
% |
|
|
12,229 |
|
* Derived from audited financial statements. |
CULP, INC. |
||||||||||||
SUMMARY OF CASH AND INVESTMENTS |
||||||||||||
JANUARY 29, 2023, JANUARY 30, 2022, AND MAY 1, 2022 |
||||||||||||
Unaudited |
||||||||||||
(Amounts in Thousands) |
||||||||||||
|
|
Amounts |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|||
|
|
January 29, |
|
|
January 30, |
|
|
May 1, |
|
|||
|
|
2023 |
|
|
2022 |
|
|
2022* |
|
|||
Cash and Investments |
|
|
|
|
|
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
16,725 |
|
|
$ |
11,780 |
|
|
$ |
14,550 |
|
Short-term investments - Available for Sale |
|
|
— |
|
|
|
438 |
|
|
|
— |
|
Short-term investments - Held-To-Maturity |
|
|
— |
|
|
|
1,315 |
|
|
|
— |
|
Long-term investments - Held-To-Maturity |
|
|
— |
|
|
|
8,677 |
|
|
|
— |
|
Total Cash and Investments |
|
$ |
16,725 |
|
|
$ |
22,210 |
|
|
$ |
14,550 |
|
|
|
|
|
|
|
|
|
|
|
* Derived from audited financial statements. |
CULP, INC. |
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
FOR THE NINE MONTHS ENDED JANUARY 29, 2023, AND JANUARY 30, 2022 |
||||||||
Unaudited |
||||||||
(Amounts in Thousands) |
||||||||
|
|
NINE MONTHS ENDED |
|
|||||
|
|
Amounts |
|
|||||
|
|
January 29, |
|
|
January 30, |
|
||
|
|
2023 |
|
|
2022 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net (loss) income |
|
$ |
(26,839 |
) |
|
$ |
2,812 |
|
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
||
Depreciation |
|
|
5,228 |
|
|
|
5,203 |
|
Non-cash inventory charges (2) (3) |
|
|
6,301 |
|
|
|
1,407 |
|
Amortization |
|
|
323 |
|
|
|
417 |
|
Stock-based compensation |
|
|
887 |
|
|
|
880 |
|
Deferred income taxes |
|
|
150 |
|
|
|
199 |
|
Realized loss from the sale of short-term investments available for sale |
|
|
— |
|
|
|
28 |
|
Gain on sale of equipment |
|
|
(312 |
) |
|
|
— |
|
Non-cash restructuring expense |
|
|
791 |
|
|
|
— |
|
Foreign currency exchange (gain) loss |
|
|
(362 |
) |
|
|
240 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
954 |
|
|
|
(1,228 |
) |
Inventories |
|
|
12,477 |
|
|
|
(18,453 |
) |
Other current assets |
|
|
(39 |
) |
|
|
(571 |
) |
Other assets |
|
|
(76 |
) |
|
|
(1,404 |
) |
Accounts payable |
|
|
3,051 |
|
|
|
3,865 |
|
Deferred revenue |
|
|
910 |
|
|
|
(22 |
) |
Accrued expenses and deferred compensation |
|
|
885 |
|
|
|
(5,130 |
) |
Income taxes |
|
|
254 |
|
|
|
(612 |
) |
Net cash provided by (used in) operating activities |
|
|
4,583 |
|
|
|
(12,369 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
||
Capital expenditures |
|
|
(1,602 |
) |
|
|
(5,288 |
) |
Proceeds from the sale of equipment |
|
|
465 |
|
|
|
— |
|
Proceeds from the maturity of short-term investments (Held to Maturity) |
|
|
— |
|
|
|
3,953 |
|
Purchase of short-term and long-term investments (Held to Maturity) |
|
|
— |
|
|
|
(9,751 |
) |
Purchase of short-term investments (Available for Sale) |
|
|
— |
|
|
|
(4,392 |
) |
Proceeds from the sale of short-term investments (Available for Sale) |
|
|
— |
|
|
|
9,442 |
|
Proceeds from the sale of long-term investments (rabbi trust) |
|
|
70 |
|
|
|
33 |
|
Purchase of long-term investments (rabbi trust) |
|
|
(870 |
) |
|
|
(873 |
) |
Net cash used in investing activities |
|
|
(1,937 |
) |
|
|
(6,876 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Payments associated with lines of credit |
|
|
— |
|
|
|
(3,000 |
) |
Proceeds associated with lines of credit |
|
|
— |
|
|
|
3,000 |
|
Dividends paid |
|
|
— |
|
|
|
(4,104 |
) |
Common stock repurchased |
|
|
— |
|
|
|
(1,752 |
) |
Common stock surrendered for withholding taxes payable |
|
|
(33 |
) |
|
|
(50 |
) |
Payments of debt issuance costs |
|
|
(289 |
) |
|
|
(110 |
) |
Net cash used in financing activities |
|
|
(322 |
) |
|
|
(6,016 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
(149 |
) |
|
|
32 |
|
Increase (decrease) in cash and cash equivalents |
|
|
2,175 |
|
|
|
(25,229 |
) |
Cash and cash equivalents at beginning of year |
|
|
14,550 |
|
|
|
37,009 |
|
Cash and cash equivalents at end of period |
|
$ |
16,725 |
|
|
$ |
11,780 |
|
Free Cash Flow (1) |
|
$ |
2,497 |
|
|
$ |
(18,465 |
) |
(1) |
See next page for Reconciliation of Free Cash Flow for the nine-month periods ending January 29, 2023, and January 30, 2022, respectively. |
|
|
|
|
(2) |
The non-cash inventory charge of $6.3 million for the nine-months ending January 29, 2023, represents a $2.9 million impairment charge associated with our mattress fabrics segment, $3.3 million related to markdowns of inventory estimated based on our policy for aged inventory, and $98,000 for the loss on disposal and markdowns of inventory related to the exit of our cut and sew upholstery fabrics operation located in Shanghai, China. |
|
|
|
|
(3) |
The non-cash inventory charge of $1.4 million for the nine-months ending January 30, 2022, represents markdowns of inventory estimated based on our policy for aged inventory. |
Reconciliation of Free Cash Flow:
|
|
FY 2023 |
|
|
FY 2022 |
|
||
A) Net cash provided by (used in) operating activities |
|
$ |
4,583 |
|
|
$ |
(12,369 |
) |
B) Minus: Capital Expenditures |
|
|
(1,602 |
) |
|
|
(5,288 |
) |
C) Plus: Proceeds from the sale of equipment |
|
|
465 |
|
|
|
— |
|
D) Plus: Proceeds from the sale of long-term investments (rabbi trust) |
|
|
70 |
|
|
|
33 |
|
E) Minus: Purchase of long-term investments (rabbi trust) |
|
|
(870 |
) |
|
|
(873 |
) |
F) Effects of exchange rate changes on cash and cash equivalents |
|
|
(149 |
) |
|
|
32 |
|
Free Cash Flow |
|
$ |
2,497 |
|
|
$ |
(18,465 |
) |
CULP, INC. |
||||||||||||||||||||
STATEMENTS OF OPERATIONS BY SEGMENT |
||||||||||||||||||||
FOR THE THREE MONTHS ENDED JANUARY 29, 2023, AND JANUARY 30, 2022 |
||||||||||||||||||||
Unaudited |
||||||||||||||||||||
(Amounts in Thousands) |
||||||||||||||||||||
|
|
THREE MONTHS ENDED |
|
|||||||||||||||||
|
|
Amounts |
|
|
|
|
|
Percent of Total Sales |
|
|||||||||||
|
|
January 29, |
|
|
January 30, |
|
|
% Over |
|
|
January 29, |
|
|
January 30, |
|
|||||
Net Sales by Segment |
|
2023 |
|
|
2022 |
|
|
(Under) |
|
|
2023 |
|
|
2022 |
|
|||||
Mattress Fabrics |
|
$ |
24,697 |
|
|
$ |
38,439 |
|
|
|
(35.8 |
)% |
|
|
47.0 |
% |
|
|
47.9 |
% |
Upholstery Fabrics |
|
|
27,826 |
|
|
|
41,852 |
|
|
|
(33.5 |
)% |
|
|
53.0 |
% |
|
|
52.1 |
% |
Net Sales |
|
$ |
52,523 |
|
|
$ |
80,291 |
|
|
|
(34.6 |
)% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross (Loss) Profit |
|
|
|
|
|
|
|
|
|
|
Gross Margin |
|
||||||||
Mattress Fabrics |
|
$ |
(1,237 |
) |
|
$ |
3,164 |
|
|
|
(139.1 |
)% |
|
|
(5.0 |
)% |
|
|
8.2 |
% |
Upholstery Fabrics |
|
|
3,330 |
|
|
|
5,946 |
|
|
|
(44.0 |
)% |
|
|
12.0 |
% |
|
|
14.2 |
% |
Gross Profit |
|
$ |
2,093 |
|
|
$ |
9,110 |
|
|
|
(77.0 |
)% |
|
|
4.0 |
% |
|
|
11.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Selling, General and Administrative Expenses by Segment |
|
|
|
|
|
|
|
|
|
|
Percent of Sales |
|
||||||||
Mattress Fabrics |
|
$ |
2,992 |
|
|
$ |
2,800 |
|
|
|
6.9 |
% |
|
|
12.1 |
% |
|
|
7.3 |
% |
Upholstery Fabrics |
|
|
3,750 |
|
|
|
3,500 |
|
|
|
7.1 |
% |
|
|
13.5 |
% |
|
|
8.4 |
% |
Unallocated Corporate expenses |
|
|
2,423 |
|
|
|
1,707 |
|
|
|
41.9 |
% |
|
|
4.6 |
% |
|
|
2.1 |
% |
Selling, General and Administrative Expenses |
|
$ |
9,165 |
|
|
$ |
8,007 |
|
|
|
14.5 |
% |
|
|
17.4 |
% |
|
|
10.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(Loss) Income from Operations by Segment |
|
|
|
|
|
|
|
|
|
|
Operating Margin |
|
||||||||
Mattress Fabrics |
|
$ |
(4,229 |
) |
|
$ |
364 |
|
|
N.M. |
|
|
|
(17.1 |
)% |
|
|
0.9 |
% |
|
Upholstery Fabrics |
|
|
(420 |
) |
|
|
2,446 |
|
|
N.M. |
|
|
|
(1.5 |
)% |
|
|
5.8 |
% |
|
Unallocated corporate expenses |
|
|
(2,423 |
) |
|
|
(1,707 |
) |
|
|
41.9 |
% |
|
|
(4.6 |
)% |
|
|
(2.1 |
)% |
Total Segment (Loss) Income from Operations |
|
|
(7,072 |
) |
|
|
1,103 |
|
|
N.M. |
|
|
|
(13.5 |
)% |
|
|
1.4 |
% |
|
Restructuring Expense (1) |
|
|
(711 |
) |
|
|
— |
|
|
|
100.0 |
% |
|
|
(1.4 |
)% |
|
|
— |
|
(Loss) Income from Operations |
|
$ |
(7,783 |
) |
|
$ |
1,103 |
|
|
N.M. |
|
|
|
(14.8 |
)% |
|
|
1.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation Expense by Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mattress Fabrics |
|
$ |
1,536 |
|
|
$ |
1,542 |
|
|
|
(0.4 |
)% |
|
|
|
|
|
|
||
Upholstery Fabrics |
|
|
203 |
|
|
|
190 |
|
|
|
6.8 |
% |
|
|
|
|
|
|
||
Depreciation Expense |
|
$ |
1,739 |
|
|
$ |
1,732 |
|
|
|
0.4 |
% |
|
|
|
|
|
|
Notes | ||
(1) |
See page 14 for our Reconciliation of Selected Income Statement Information to Adjusted Results for the three-months ending January 29, 2023. |
CULP, INC. |
||||||||||||||||||||
STATEMENTS OF OPERATIONS BY SEGMENT |
||||||||||||||||||||
FOR THE NINE MONTHS ENDED JANUARY 29, 2023, AND JANUARY 30, 2022 |
||||||||||||||||||||
Unaudited |
||||||||||||||||||||
(Amounts in Thousands) |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
NINE MONTHS ENDED |
|
|||||||||||||||||
|
|
Amounts |
|
|
|
|
|
Percent of Total Sales |
|
|||||||||||
|
|
January 29, |
|
|
January 30, |
|
|
% Over |
|
|
January 29, |
|
|
January 30, |
|
|||||
Net Sales by Segment |
|
2023 |
|
|
2022 |
|
|
(Under) |
|
|
2023 |
|
|
2022 |
|
|||||
Mattress Fabrics |
|
$ |
80,299 |
|
|
$ |
122,380 |
|
|
|
(34.4 |
)% |
|
|
46.3 |
% |
|
|
51.4 |
% |
Upholstery Fabrics |
|
|
93,209 |
|
|
|
115,519 |
|
|
|
(19.3 |
)% |
|
|
53.7 |
% |
|
|
48.6 |
% |
Net Sales |
|
$ |
173,508 |
|
|
$ |
237,899 |
|
|
|
(27.1 |
)% |
|
|
100.0 |
% |
|
|
100.0 |
% |
Gross (Loss) Profit |
|
|
|
|
|
|
|
|
|
|
Gross Profit Margin |
|
||||||||
Mattress Fabrics |
|
$ |
(7,330 |
) |
|
$ |
16,106 |
|
|
|
(145.5 |
)% |
|
|
(9.1 |
)% |
|
|
13.2 |
% |
Upholstery Fabrics |
|
|
11,436 |
|
|
|
16,230 |
|
|
|
(29.5 |
)% |
|
|
12.3 |
% |
|
|
14.0 |
% |
Total Segment Gross Profit |
|
|
4,106 |
|
|
|
32,336 |
|
|
|
(87.3 |
)% |
|
|
2.4 |
% |
|
|
13.6 |
% |
Restructuring Related Charge (3) |
|
|
(98 |
) |
|
|
— |
|
|
|
100.0 |
% |
|
|
(0.1 |
)% |
|
|
— |
|
Gross Profit |
|
$ |
4,008 |
|
|
$ |
32,336 |
|
|
|
(87.6 |
)% |
|
|
2.3 |
% |
|
|
13.6 |
% |
Selling, General and Administrative Expenses by Segment |
|
|
|
|
|
|
|
|
|
|
Percent of Sales |
|
||||||||
Mattress Fabrics |
|
$ |
8,821 |
|
|
$ |
8,991 |
|
|
|
(1.9 |
)% |
|
|
11.0 |
% |
|
|
7.3 |
% |
Upholstery Fabrics |
|
|
11,053 |
|
|
|
10,491 |
|
|
|
5.4 |
% |
|
|
11.9 |
% |
|
|
9.1 |
% |
Unallocated Corporate expenses |
|
|
7,259 |
|
|
|
6,793 |
|
|
|
6.9 |
% |
|
|
4.2 |
% |
|
|
2.9 |
% |
Selling, General and Administrative Expenses |
|
$ |
27,133 |
|
|
$ |
26,275 |
|
|
|
3.3 |
% |
|
|
15.6 |
% |
|
|
11.0 |
% |
(Loss) Income from Operations by Segment |
|
|
|
|
|
|
|
|
|
|
Operating Margin |
|
||||||||
Mattress Fabrics |
|
$ |
(16,151 |
) |
|
$ |
7,115 |
|
|
N.M. |
|
|
|
(20.1 |
)% |
|
|
5.8 |
% |
|
Upholstery Fabrics |
|
|
383 |
|
|
|
5,739 |
|
|
|
(93.3 |
)% |
|
|
0.4 |
% |
|
|
5.0 |
% |
Unallocated corporate expenses |
|
|
(7,259 |
) |
|
|
(6,793 |
) |
|
|
6.9 |
% |
|
|
(4.2 |
)% |
|
|
(2.9 |
)% |
Total Segment (Loss) Income from Operations |
|
|
(23,027 |
) |
|
|
6,061 |
|
|
N.M. |
|
|
|
(13.3 |
)% |
|
|
2.5 |
% |
|
Restructuring Expense (3) |
|
|
(1,326 |
) |
|
|
— |
|
|
|
100.0 |
% |
|
|
(0.8 |
)% |
|
|
— |
|
Restructuring Related Charge (3) |
|
|
(98 |
) |
|
|
— |
|
|
|
100.0 |
% |
|
|
(0.1 |
)% |
|
|
— |
|
(Loss) Income from Operations |
|
$ |
(24,451 |
) |
|
|
6,061 |
|
|
N.M. |
|
|
|
(14.1 |
)% |
|
|
2.5 |
% |
|
Return on Capital (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mattress Fabrics |
|
|
(24.8 |
)% |
|
|
12.1 |
% |
|
|
(305.0 |
)% |
|
|
|
|
|
|
||
Upholstery Fabrics |
|
|
1.3 |
% |
|
|
49.7 |
% |
|
|
(97.4 |
)% |
|
|
|
|
|
|
||
Unallocated Corporate |
|
N.M. |
|
|
N.M. |
|
|
N.M. |
|
|
|
|
|
|
|
|||||
Consolidated |
|
|
(28.1 |
)% |
|
|
8.0 |
% |
|
|
(451.3 |
)% |
|
|
|
|
|
|
||
Capital Employed (1) (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mattress Fabrics |
|
$ |
65,882 |
|
|
$ |
86,830 |
|
|
|
(24.1 |
)% |
|
|
|
|
|
|
||
Upholstery Fabrics |
|
|
15,450 |
|
|
|
21,676 |
|
|
|
(28.7 |
)% |
|
|
|
|
|
|
||
Unallocated Corporate |
|
|
3,815 |
|
|
|
3,931 |
|
|
|
(3.0 |
)% |
|
|
|
|
|
|
||
Consolidated |
|
$ |
85,147 |
|
|
$ |
112,437 |
|
|
|
(24.3 |
)% |
|
|
|
|
|
|
||
Depreciation Expense by Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mattress Fabrics |
|
$ |
4,624 |
|
|
$ |
4,613 |
|
|
|
0.2 |
% |
|
|
|
|
|
|
||
Upholstery Fabrics |
|
|
604 |
|
|
|
590 |
|
|
|
2.4 |
% |
|
|
|
|
|
|
||
Depreciation Expense |
|
$ |
5,228 |
|
|
$ |
5,203 |
|
|
|
0.5 |
% |
|
|
|
|
|
|
Notes |
||
|
|
|
(1) |
See return on capital pages at the back of this presentation. |
|
|
|
|
(2) |
The capital employed balances are as of January 29, 2023, and January 30, 2022, respectively. |
|
|
|
|
(3) |
See page 15 for our Reconciliation of Selected Income Statement Information to Adjusted Results for the nine-months ending January 29, 2023. |
CULP, INC. |
||||||||||||
RECONCILIATION OF SELECTED INCOME STATEMENT INFORMATION TO ADJUSTED RESULTS |
||||||||||||
FOR THREE MONTHS ENDED JANUARY 29, 2023 |
||||||||||||
Unaudited |
||||||||||||
(Amounts in Thousands) |
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
As Reported |
|
|
|
|
|
January 29, 2023 |
|
|||
|
|
January 29, |
|
|
|
|
|
Adjusted |
|
|||
|
|
2023 |
|
|
Adjustments |
|
|
Results |
|
|||
Net sales |
|
$ |
52,523 |
|
|
|
— |
|
|
$ |
52,523 |
|
Cost of sales |
|
|
(50,430 |
) |
|
|
— |
|
|
|
(50,430 |
) |
Gross profit |
|
|
2,093 |
|
|
|
— |
|
|
|
2,093 |
|
Selling, general and administrative expenses |
|
|
(9,165 |
) |
|
|
— |
|
|
|
(9,165 |
) |
Restructuring expense (1) |
|
|
(711 |
) |
|
711 |
|
|
|
— |
|
|
Loss from operations |
|
$ |
(7,783 |
) |
|
|
711 |
|
|
$ |
(7,072 |
) |
Notes | ||
|
|
|
(1) |
Restructuring expense of $711,000 for the three-months ending January 29, 2023, represents lease termination costs of $434,000 and an impairment loss regarding leasehold improvements totaling $277,000 that related to the consolidation of certain leased facilities located in Ouanaminthe, Haiti. |
|
||||||||||||
CULP, INC. |
||||||||||||
RECONCILIATION OF SELECTED INCOME STATEMENT INFORMATION TO ADJUSTED RESULTS |
||||||||||||
FOR NINE MONTHS ENDED JANUARY 29, 2023 |
||||||||||||
Unaudited |
||||||||||||
(Amounts in Thousands) |
||||||||||||
|
|
As Reported |
|
|
|
|
|
January 29, 2023 |
|
|||
|
|
January 29, |
|
|
|
|
|
Adjusted |
|
|||
|
|
2023 |
|
|
Adjustments |
|
|
Results |
|
|||
Net sales |
|
$ |
173,508 |
|
|
|
— |
|
|
$ |
173,508 |
|
Cost of sales (1) |
|
|
(169,500 |
) |
|
98 |
|
|
|
(169,402 |
) |
|
Gross profit |
|
|
4,008 |
|
|
|
98 |
|
|
|
4,106 |
|
Selling, general and administrative expenses |
|
|
(27,133 |
) |
|
|
— |
|
|
|
(27,133 |
) |
Restructuring expense (2) |
|
|
(1,326 |
) |
|
|
1,326 |
|
|
|
— |
|
Loss from operations |
|
$ |
(24,451 |
) |
|
|
1,424 |
|
|
$ |
(23,027 |
) |
Notes | ||
(1) |
Cost of sales for the nine-months ending January 29, 2023, includes restructuring related charges totaling $98,000 which pertained to a loss on disposal and markdowns of inventory related to the exit of our cut and sew upholstery fabrics operation located in Shanghai, China that occurred during the second quarter of fiscal 2023. |
|
|
|
|
(2) |
Restructuring expense of $1.3 million for the nine-months ending January 29, 2023, relates to both our restructuring activities for our cut and sew upholstery fabrics operations located in Shanghai, China, which occurred during the second quarter of fiscal 2023, and located in Ouanaminthe, Haiti, which occurred during the third quarter of fiscal 2023. Restructuring expense consists of lease termination costs of $481,000, employee termination benefits of $468,000, impairment losses totaling $357,000 that relate to leasehold improvements and equipment, and $20,000 for other associated costs. |
CULP, INC. |
||||||||||||||||||||
CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA |
||||||||||||||||||||
FOR THE TWELVE MONTHS ENDED JANUARY 29, 2023, AND JANUARY 30, 2022 |
||||||||||||||||||||
Unaudited |
||||||||||||||||||||
(Amounts in Thousands) |
||||||||||||||||||||
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Trailing
|
|
|||||
|
|
May 1, |
|
|
July 31, |
|
|
October 30, |
|
|
January 29, |
|
|
January 29, |
|
|||||
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2023 |
|
|
2023 |
|
|||||
Net loss (1) |
|
$ |
(6,023 |
) |
|
$ |
(5,699 |
) |
|
$ |
(12,173 |
) |
|
$ |
(8,968 |
) |
|
$ |
(32,863 |
) |
Income tax expense |
|
|
253 |
|
|
|
896 |
|
|
|
1,150 |
|
|
|
286 |
|
|
|
2,585 |
|
Interest income, net |
|
|
(26 |
) |
|
|
(17 |
) |
|
|
(79 |
) |
|
|
(196 |
) |
|
|
(318 |
) |
Depreciation expense |
|
|
1,791 |
|
|
|
1,770 |
|
|
|
1,719 |
|
|
|
1,739 |
|
|
|
7,019 |
|
Restructuring expense |
|
|
— |
|
|
|
— |
|
|
|
615 |
|
|
|
711 |
|
|
|
1,326 |
|
Restructuring related charge |
|
|
— |
|
|
|
— |
|
|
|
98 |
|
|
|
— |
|
|
|
98 |
|
Amortization expense |
|
|
142 |
|
|
|
105 |
|
|
|
109 |
|
|
|
109 |
|
|
|
465 |
|
Stock based compensation |
|
|
253 |
|
|
|
252 |
|
|
|
313 |
|
|
|
322 |
|
|
|
1,140 |
|
Adjusted EBITDA (1) |
|
$ |
(3,610 |
) |
|
$ |
(2,693 |
) |
|
$ |
(8,248 |
) |
|
$ |
(5,997 |
) |
|
$ |
(20,548 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
% Net Sales |
|
|
(6.3 |
)% |
|
|
(4.3 |
)% |
|
|
(14.1 |
)% |
|
|
(11.4 |
)% |
|
|
(8.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Trailing
|
|
|||||
|
|
May 2, |
|
|
August 1, |
|
|
October 31, |
|
|
January 30, |
|
|
January 30, |
|
|||||
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2022 |
|
|
2022 |
|
|||||
Net income (loss) |
|
$ |
1,485 |
|
|
$ |
2,250 |
|
|
$ |
851 |
|
|
$ |
(289 |
) |
|
$ |
4,297 |
|
Income tax expense |
|
|
857 |
|
|
|
905 |
|
|
|
444 |
|
|
|
1,284 |
|
|
|
3,490 |
|
Interest income, net |
|
|
(36 |
) |
|
|
(74 |
) |
|
|
(59 |
) |
|
|
(214 |
) |
|
|
(383 |
) |
Gain on bargain purchase |
|
|
(819 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(819 |
) |
Depreciation expense |
|
|
1,643 |
|
|
|
1,726 |
|
|
|
1,745 |
|
|
|
1,732 |
|
|
|
6,846 |
|
Amortization expense |
|
|
116 |
|
|
|
121 |
|
|
|
146 |
|
|
|
150 |
|
|
|
533 |
|
Stock based compensation |
|
|
485 |
|
|
|
274 |
|
|
|
435 |
|
|
|
171 |
|
|
|
1,365 |
|
Adjusted EBITDA |
|
$ |
3,731 |
|
|
$ |
5,202 |
|
|
$ |
3,562 |
|
|
$ |
2,834 |
|
|
$ |
15,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
% Net Sales |
|
|
4.7 |
% |
|
|
6.3 |
% |
|
|
4.8 |
% |
|
|
3.5 |
% |
|
|
4.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
% Over (Under) |
|
|
(196.8 |
)% |
|
|
(151.8 |
)% |
|
|
(331.6 |
)% |
|
|
(311.6 |
)% |
|
|
(234.0 |
)% |
(1) |
Net loss and Adjusted EBITDA for the quarter ended October 30, 2022, and the trailing twelve month periods includes a non-cash charge totaling $5.2 million, which represents a $2.9 million impairment charge associated with our mattress fabrics segment and $2.3 million related to markdowns of inventory estimated based on our policy for aged inventory. |
CULP, INC. |
||||||||||||||||||||||||||||||
RETURN ON CAPITAL EMPLOYED BY SEGMENT |
||||||||||||||||||||||||||||||
FOR THE TWELVE MONTHS ENDED JANUARY 29, 2023 |
||||||||||||||||||||||||||||||
Unaudited |
||||||||||||||||||||||||||||||
(Amounts in Thousands) |
||||||||||||||||||||||||||||||
|
Adjusted Operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Twelve Months
|
|
Average
|
|
Return on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
January 29, 2023 (1) |
|
Employed (3) |
|
Employed (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mattress Fabrics |
$ |
(19,053 |
) |
$ |
76,826 |
|
|
(24.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upholstery Fabrics |
|
268 |
|
|
20,290 |
|
|
1.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated Corporate |
|
(9,626 |
) |
|
3,955 |
|
N.M. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Total |
$ |
(28,411 |
) |
$ |
101,072 |
|
|
(28.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Capital Employed | As of the three Months Ended January 29, 2023 |
|
|
As of the three Months Ended October 30, 2022 |
|
|
As of the three Months Ended July 31, 2022 |
|
|||||||||||||||||||||||||||||||
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|||||||||||||
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|||||||||||||
Total assets (4) |
$ |
75,393 |
|
|
39,817 |
|
|
35,388 |
|
|
150,598 |
|
|
$ |
78,366 |
|
|
44,934 |
|
|
38,330 |
|
|
161,630 |
|
|
$ |
90,842 |
|
|
51,053 |
|
|
38,595 |
|
|
180,490 |
|
|
Total liabilities |
|
(9,511 |
) |
|
(24,367 |
) |
|
(23,216 |
) |
|
(57,094 |
) |
|
|
(9,895 |
) |
|
(26,108 |
) |
|
(23,519 |
) |
|
(59,522 |
) |
|
|
(11,934 |
) |
|
(30,762 |
) |
|
(23,799 |
) |
|
(66,495 |
) |
|
Subtotal |
$ |
65,882 |
|
$ |
15,450 |
|
$ |
12,172 |
|
$ |
93,504 |
|
|
$ |
68,471 |
|
$ |
18,826 |
|
$ |
14,811 |
|
$ |
102,108 |
|
|
$ |
78,908 |
|
$ |
20,291 |
|
$ |
14,796 |
|
$ |
113,995 |
|
|
Cash and cash equivalents |
|
— |
|
|
— |
|
|
(16,725 |
) |
|
(16,725 |
) |
|
|
— |
|
|
— |
|
|
(19,137 |
) |
|
(19,137 |
) |
|
|
— |
|
|
— |
|
|
(18,874 |
) |
|
(18,874 |
) |
|
Short-term investments - Available-For-Sale |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Short-term investments - Held-To-Maturity |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Short-term investments - Rabbi Trust |
|
— |
|
|
— |
|
|
(2,420 |
) |
|
(2,420 |
) |
|
|
— |
|
|
— |
|
|
(2,237 |
) |
|
(2,237 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Current income taxes receivable |
|
— |
|
|
— |
|
|
(238 |
) |
|
(238 |
) |
|
|
— |
|
|
— |
|
|
(510 |
) |
|
(510 |
) |
|
|
— |
|
|
— |
|
|
(798 |
) |
|
(798 |
) |
|
Long-term investments - Held-To-Maturity |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Long-term investments - Rabbi Trust |
|
— |
|
|
— |
|
|
(7,725 |
) |
|
(7,725 |
) |
|
|
— |
|
|
— |
|
|
(7,526 |
) |
|
(7,526 |
) |
|
|
— |
|
|
— |
|
|
(9,567 |
) |
|
(9,567 |
) |
|
Deferred income taxes - non-current |
|
— |
|
|
— |
|
|
(463 |
) |
|
(463 |
) |
|
|
— |
|
|
— |
|
|
(493 |
) |
|
(493 |
) |
|
|
— |
|
|
— |
|
|
(546 |
) |
|
(546 |
) |
|
Deferred compensation - current |
|
— |
|
|
— |
|
|
2,420 |
|
|
2,420 |
|
|
|
— |
|
|
— |
|
|
2,237 |
|
|
2,237 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Accrued restructuring |
|
— |
|
|
— |
|
|
- |
|
|
— |
|
|
|
— |
|
|
— |
|
|
33 |
|
|
33 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Income taxes payable - current |
|
— |
|
|
— |
|
|
467 |
|
|
467 |
|
|
|
— |
|
|
— |
|
|
969 |
|
|
969 |
|
|
|
— |
|
|
— |
|
|
587 |
|
|
587 |
|
|
Income taxes payable - long-term |
|
— |
|
|
— |
|
|
2,648 |
|
|
2,648 |
|
|
|
— |
|
|
— |
|
|
2,629 |
|
|
2,629 |
|
|
|
— |
|
|
— |
|
|
3,118 |
|
|
3,118 |
|
|
Deferred income taxes - non-current |
|
— |
|
|
— |
|
|
6,089 |
|
|
6,089 |
|
|
|
— |
|
|
— |
|
|
5,700 |
|
|
5,700 |
|
|
|
— |
|
|
— |
|
|
6,007 |
|
|
6,007 |
|
|
Deferred compensation non-current |
|
— |
|
|
— |
|
|
7,590 |
|
|
7,590 |
|
|
|
— |
|
|
— |
|
|
7,486 |
|
|
7,486 |
|
|
|
— |
|
|
— |
|
|
9,528 |
|
|
9,528 |
|
|
Total Capital Employed |
$ |
65,882 |
|
$ |
15,450 |
|
$ |
3,815 |
|
$ |
85,147 |
|
|
$ |
68,471 |
|
$ |
18,826 |
|
$ |
3,962 |
|
$ |
91,259 |
|
|
$ |
78,908 |
|
$ |
20,291 |
|
$ |
4,251 |
|
$ |
103,450 |
|
CULP, INC. |
||||||||||||||||||||||||||
RETURN ON CAPITAL EMPLOYED BY SEGMENT - CONTINUED |
||||||||||||||||||||||||||
FOR THE TWELVE MONTHS ENDED JANUARY 29, 2023 |
||||||||||||||||||||||||||
Unaudited |
||||||||||||||||||||||||||
(Amounts in Thousands) |
||||||||||||||||||||||||||
|
As of the three Months Ended May 1, 2022 |
|
|
As of the three Months Ended January 30, 2022 |
|
|||||||||||||||||||||
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|||||||||
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|||||||||
Total assets (4) |
$ |
92,609 |
|
|
51,124 |
|
|
33,830 |
|
|
177,563 |
|
|
$ |
103,370 |
|
|
67,272 |
|
|
40,925 |
|
|
211,567 |
|
|
Total liabilities |
|
(8,569 |
) |
|
(25,915 |
) |
|
(23,578 |
) |
|
(58,062 |
) |
|
|
(16,540 |
) |
|
(45,596 |
) |
|
(22,697 |
) |
|
(84,833 |
) |
|
Subtotal |
$ |
84,040 |
|
$ |
25,209 |
|
$ |
10,252 |
|
$ |
119,501 |
|
|
$ |
86,830 |
|
$ |
21,676 |
|
$ |
18,228 |
|
$ |
126,734 |
|
|
Cash and cash equivalents |
|
— |
|
|
— |
|
|
(14,550 |
) |
|
(14,550 |
) |
|
|
— |
|
|
— |
|
|
(11,780 |
) |
|
(11,780 |
) |
|
Short-term investments - Available-For-Sale |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
(438 |
) |
|
(438 |
) |
|
Short-term investments - Held-To-Maturity |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
(1,315 |
) |
|
(1,315 |
) |
|
Current income taxes receivable |
|
— |
|
|
— |
|
|
(857 |
) |
|
(857 |
) |
|
|
— |
|
|
— |
|
|
(367 |
) |
|
(367 |
) |
|
Long-term investments - Held-To-Maturity |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
(8,677 |
) |
|
(8,677 |
) |
|
Long-term investments - Rabbi Trust |
|
— |
|
|
— |
|
|
(9,357 |
) |
|
(9,357 |
) |
|
|
— |
|
|
— |
|
|
(9,223 |
) |
|
(9,223 |
) |
|
Deferred income taxes - non-current |
|
— |
|
|
— |
|
|
(528 |
) |
|
(528 |
) |
|
|
— |
|
|
— |
|
|
(500 |
) |
|
(500 |
) |
|
Income taxes payable - current |
|
— |
|
|
— |
|
|
413 |
|
|
413 |
|
|
|
— |
|
|
— |
|
|
240 |
|
|
240 |
|
|
Income taxes payable - long-term |
|
— |
|
|
— |
|
|
3,097 |
|
|
3,097 |
|
|
|
— |
|
|
— |
|
|
3,099 |
|
|
3,099 |
|
|
Deferred income taxes - non-current |
|
— |
|
|
— |
|
|
6,004 |
|
|
6,004 |
|
|
|
— |
|
|
— |
|
|
5,484 |
|
|
5,484 |
|
|
Deferred compensation |
|
— |
|
|
— |
|
|
9,343 |
|
|
9,343 |
|
|
|
— |
|
|
— |
|
|
9,180 |
|
|
9,180 |
|
|
Total Capital Employed |
$ |
84,040 |
|
$ |
25,209 |
|
$ |
3,817 |
|
$ |
113,066 |
|
|
$ |
86,830 |
|
$ |
21,676 |
|
$ |
3,931 |
|
$ |
112,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|
|
|
|
|
|
|
|
|
|||||||||
Average Capital Employed (3) |
$ |
76,826 |
|
$ |
20,290 |
|
$ |
3,955 |
|
$ |
101,072 |
|
|
|
|
|
|
|
|
|
|
Notes |
||
|
|
|
(1) |
See last page of this presentation for calculation. |
|
|
|
|
(2) |
Return on average capital employed represents the last twelve months operating (loss) income as of January 29, 2023, divided by average capital employed. Average capital employed does not include cash and cash equivalents, short-term investments Available-For-Sale, short-term and long-term investments Held-To-Maturity, short-term and long-term investments – Rabbi Trust, accrued restructuring, income taxes receivable and payable, noncurrent deferred income tax assets and liabilities, and current and non-current deferred compensation. |
|
|
|
|
(3) |
Average capital employed was computed using the five quarterly periods ending January 29, 2023, October 30, 2022, July 31, 2022, May 1, 2022, and January 30, 2022. |
|
|
|
|
(4) |
Intangible assets are included in unallocated corporate for all periods presented and therefore, have no effect on capital employed and return on capital employed for our mattress fabrics and upholstery fabrics segments. |
CULP INC. |
||||||||||||||||||||||||||||||
RETURN ON CAPITAL EMPLOYED BY SEGMENT |
||||||||||||||||||||||||||||||
FOR THE TWELVE MONTHS ENDED JANUARY 30, 2022 |
||||||||||||||||||||||||||||||
Unaudited |
||||||||||||||||||||||||||||||
(Amounts in Thousands) |
||||||||||||||||||||||||||||||
|
Adjusted Operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Twelve Months
|
|
Average
|
|
Return on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
January 30, 2022 (1) |
|
Employed (3) |
|
Employed (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mattress Fabrics |
$ |
9,388 |
|
$ |
77,348 |
|
|
12.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upholstery Fabrics |
|
8,354 |
|
|
16,818 |
|
|
49.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated Corporate |
|
(10,042 |
) |
|
2,069 |
|
N.M. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Total |
$ |
7,700 |
|
$ |
96,235 |
|
|
8.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Capital Employed | As of the three Months Ended January 30, 2022 |
|
|
As of the three Months Ended October 31, 2021 |
|
|
As of the three Months Ended August 1, 2021 |
|
|||||||||||||||||||||||||||||||
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|||||||||||||
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|||||||||||||
Total assets (4) |
$ |
103,370 |
|
|
67,272 |
|
|
40,925 |
|
|
211,567 |
|
|
$ |
97,390 |
|
|
55,862 |
|
|
56,073 |
|
|
209,325 |
|
|
$ |
96,846 |
|
|
55,187 |
|
|
60,215 |
|
|
212,248 |
|
|
Total liabilities |
|
(16,540 |
) |
|
(45,596 |
) |
|
(22,697 |
) |
|
(84,833 |
) |
|
|
(18,818 |
) |
|
(38,560 |
) |
|
(23,493 |
) |
|
(80,871 |
) |
|
|
(21,298 |
) |
|
(39,983 |
) |
|
(21,418 |
) |
|
(82,699 |
) |
|
Subtotal |
$ |
86,830 |
|
$ |
21,676 |
|
$ |
18,228 |
|
$ |
126,734 |
|
|
$ |
78,572 |
|
$ |
17,302 |
|
$ |
32,580 |
|
$ |
128,454 |
|
|
$ |
75,548 |
|
$ |
15,204 |
|
$ |
38,797 |
|
$ |
129,549 |
|
|
Cash and cash equivalents |
|
— |
|
|
— |
|
|
(11,780 |
) |
|
(11,780 |
) |
|
|
— |
|
|
— |
|
|
(16,956 |
) |
|
(16,956 |
) |
|
|
— |
|
|
— |
|
|
(26,061 |
) |
|
(26,061 |
) |
|
Short-term investments - Available-For-Sale |
|
— |
|
|
— |
|
|
(438 |
) |
|
(438 |
) |
|
|
— |
|
|
— |
|
|
(9,709 |
) |
|
(9,709 |
) |
|
|
— |
|
|
— |
|
|
(9,698 |
) |
|
(9,698 |
) |
|
Short-term investments - Held-To-Maturity |
|
— |
|
|
— |
|
|
(1,315 |
) |
|
(1,315 |
) |
|
|
— |
|
|
— |
|
|
(1,564 |
) |
|
(1,564 |
) |
|
|
— |
|
|
— |
|
|
(1,661 |
) |
|
(1,661 |
) |
|
Current income taxes receivable |
|
— |
|
|
— |
|
|
(367 |
) |
|
(367 |
) |
|
|
— |
|
|
— |
|
|
(613 |
) |
|
(613 |
) |
|
|
— |
|
|
— |
|
|
(524 |
) |
|
(524 |
) |
|
Long-term investments - Held-To-Maturity |
|
— |
|
|
— |
|
|
(8,677 |
) |
|
(8,677 |
) |
|
|
— |
|
|
— |
|
|
(8,353 |
) |
|
(8,353 |
) |
|
|
— |
|
|
— |
|
|
(6,629 |
) |
|
(6,629 |
) |
|
Long-term investments - Rabbi Trust |
|
— |
|
|
— |
|
|
(9,223 |
) |
|
(9,223 |
) |
|
|
— |
|
|
— |
|
|
(9,036 |
) |
|
(9,036 |
) |
|
|
— |
|
|
— |
|
|
(8,841 |
) |
|
(8,841 |
) |
|
Deferred income taxes - non-current |
|
— |
|
|
— |
|
|
(500 |
) |
|
(500 |
) |
|
|
— |
|
|
— |
|
|
(452 |
) |
|
(452 |
) |
|
|
— |
|
|
— |
|
|
(455 |
) |
|
(455 |
) |
|
Income taxes payable - current |
|
— |
|
|
— |
|
|
240 |
|
|
240 |
|
|
|
— |
|
|
— |
|
|
646 |
|
|
646 |
|
|
|
— |
|
|
— |
|
|
253 |
|
|
253 |
|
|
Income taxes payable - long-term |
|
— |
|
|
— |
|
|
3,099 |
|
|
3,099 |
|
|
|
— |
|
|
— |
|
|
3,099 |
|
|
3,099 |
|
|
|
— |
|
|
— |
|
|
3,365 |
|
|
3,365 |
|
|
Deferred income taxes - non-current |
|
— |
|
|
— |
|
|
5,484 |
|
|
5,484 |
|
|
|
— |
|
|
— |
|
|
4,918 |
|
|
4,918 |
|
|
|
— |
|
|
— |
|
|
4,917 |
|
|
4,917 |
|
|
Deferred compensation |
|
— |
|
|
— |
|
|
9,180 |
|
|
9,180 |
|
|
|
— |
|
|
— |
|
|
9,017 |
|
|
9,017 |
|
|
|
— |
|
|
— |
|
|
8,795 |
|
|
8,795 |
|
|
Total Capital Employed |
$ |
86,830 |
|
$ |
21,676 |
|
$ |
3,931 |
|
$ |
112,437 |
|
|
$ |
78,572 |
|
$ |
17,302 |
|
$ |
3,577 |
|
$ |
99,451 |
|
|
$ |
75,548 |
|
$ |
15,204 |
|
$ |
2,258 |
|
$ |
93,010 |
|
CULP INC. |
||||||||||||||||||||||||||
RETURN ON CAPITAL EMPLOYED BY SEGMENT - CONTINUED |
||||||||||||||||||||||||||
FOR THE TWELVE MONTHS ENDED JANUARY 30, 2022 |
||||||||||||||||||||||||||
Unaudited |
||||||||||||||||||||||||||
(Amounts in Thousands) |
||||||||||||||||||||||||||
|
As of the three Months Ended May 2, 2021 |
|
|
As of the three Months Ended January 31, 2021 |
|
|||||||||||||||||||||
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|||||||||
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|||||||||
Total assets (4) |
$ |
97,861 |
|
|
53,875 |
|
|
62,344 |
|
|
214,080 |
|
|
$ |
91,842 |
|
|
52,803 |
|
|
67,333 |
|
|
211,978 |
|
|
Total liabilities |
|
(22,410 |
) |
|
(38,709 |
) |
|
(23,955 |
) |
|
(85,074 |
) |
|
|
(21,503 |
) |
|
(38,061 |
) |
|
(24,052 |
) |
|
(83,616 |
) |
|
Subtotal |
$ |
75,451 |
|
$ |
15,166 |
|
$ |
38,389 |
|
$ |
129,006 |
|
|
$ |
70,339 |
|
$ |
14,742 |
|
$ |
43,281 |
|
$ |
128,362 |
|
|
Cash and cash equivalents |
|
— |
|
|
— |
|
|
(37,009 |
) |
|
(37,009 |
) |
|
|
— |
|
|
— |
|
|
(35,987 |
) |
|
(35,987 |
) |
|
Short-term investments - Available-For-Sale |
|
— |
|
|
— |
|
|
(5,542 |
) |
|
(5,542 |
) |
|
|
— |
|
|
— |
|
|
(5,548 |
) |
|
(5,548 |
) |
|
Short-term investments - Held-To-Maturity |
|
— |
|
|
— |
|
|
(3,161 |
) |
|
(3,161 |
) |
|
|
— |
|
|
— |
|
|
(9,785 |
) |
|
(9,785 |
) |
|
Long-term investments - Held-To-Maturity |
|
— |
|
|
— |
|
|
(1,141 |
) |
|
(1,141 |
) |
|
|
— |
|
|
— |
|
|
(512 |
) |
|
(512 |
) |
|
Long-term investments - Rabbi Trust |
|
— |
|
|
— |
|
|
(8,415 |
) |
|
(8,415 |
) |
|
|
— |
|
|
— |
|
|
(8,232 |
) |
|
(8,232 |
) |
|
Deferred income taxes - non-current |
|
— |
|
|
— |
|
|
(545 |
) |
|
(545 |
) |
|
|
— |
|
|
— |
|
|
(640 |
) |
|
(640 |
) |
|
Income taxes payable - current |
|
— |
|
|
— |
|
|
229 |
|
|
229 |
|
|
|
— |
|
|
— |
|
|
1,129 |
|
|
1,129 |
|
|
Income taxes payable - long-term |
|
— |
|
|
— |
|
|
3,326 |
|
|
3,326 |
|
|
|
— |
|
|
— |
|
|
3,325 |
|
|
3,325 |
|
|
Deferred income taxes - non-current |
|
— |
|
|
— |
|
|
5,330 |
|
|
5,330 |
|
|
|
— |
|
|
— |
|
|
5,543 |
|
|
5,543 |
|
|
Deferred compensation |
|
— |
|
|
— |
|
|
8,365 |
|
|
8,365 |
|
|
|
— |
|
|
— |
|
|
8,179 |
|
|
8,179 |
|
|
Total Capital Employed |
$ |
75,451 |
|
$ |
15,166 |
|
$ |
(174 |
) |
$ |
90,443 |
|
|
$ |
70,339 |
|
$ |
14,742 |
|
$ |
753 |
|
$ |
85,834 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|
|
|
|
|
|
|
|
|
|||||||||
Average Capital Employed (3) |
$ |
77,348 |
|
$ |
16,818 |
|
$ |
2,069 |
|
$ |
96,235 |
|
|
|
|
|
|
|
|
|
|
Notes | ||
|
|
|
(1) |
See last page of this presentation for calculation. |
|
(2) |
Return on average capital employed represents the last twelve months operating (loss) income as of January 30, 2022, divided by average capital employed. Average capital employed does not include cash and cash equivalents, short-term investments Available-For-Sale, short-term and long-term investments Held-To-Maturity, long-term investments – Rabbi Trust, income taxes receivable and payable, noncurrent deferred income tax assets and liabilities, and deferred compensation. |
|
(3) |
Average capital employed was computed using the five quarterly periods ending January 30, 2022, October 31, 2021, August 1, 2021, May 2, 2021, and January 31, 2021. |
|
(4) |
Intangible assets and goodwill are included in unallocated corporate for all periods presented and therefore, have no effect on capital employed and return on capital employed for our mattress fabrics and upholstery fabrics segments. |
CULP INC. |
||||||||||||||||||||
CONSOLIDATED STATEMENTS OF ADJUSTED OPERATING INCOME (LOSS) |
||||||||||||||||||||
FOR THE TWELVE MONTHS ENDED JANUARY 29, 2023, AND JANUARY 30, 2022 |
||||||||||||||||||||
Unaudited |
||||||||||||||||||||
(Amounts in Thousands) |
||||||||||||||||||||
|
|
Quarter Ended |
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trailing 12 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Months |
|
|||||
|
|
5/1/2022 |
|
|
7/31/2022 |
|
|
10/30/2022 |
|
|
01/29/2023 |
|
|
01/29/2023 |
|
|||||
Mattress Fabrics |
|
$ |
(2,901 |
) |
|
$ |
(2,921 |
) |
|
$ |
(9,002 |
) |
|
$ |
(4,229 |
) |
|
$ |
(19,053 |
) |
Upholstery Fabrics |
|
|
(116 |
) |
|
|
542 |
|
|
|
262 |
|
|
|
(420 |
) |
|
|
268 |
|
Unallocated Corporate |
|
|
(2,366 |
) |
|
|
(2,359 |
) |
|
|
(2,478 |
) |
|
|
(2,423 |
) |
|
|
(9,626 |
) |
Operating loss |
|
$ |
(5,383 |
) |
|
$ |
(4,738 |
) |
|
$ |
(11,218 |
) |
|
$ |
(7,072 |
) |
|
$ |
(28,411 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Quarter Ended |
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trailing 12 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Months |
|
|||||
|
|
5/2/2021 |
|
|
8/1/2021 |
|
|
10/31/2021 |
|
|
01/30/2022 |
|
|
01/30/2022 |
|
|||||
Mattress Fabrics |
|
$ |
2,274 |
|
|
$ |
3,611 |
|
|
$ |
3,139 |
|
|
$ |
364 |
|
|
$ |
9,388 |
|
Upholstery Fabrics |
|
|
2,613 |
|
|
|
2,267 |
|
|
|
1,028 |
|
|
|
2,446 |
|
|
|
8,354 |
|
Unallocated Corporate |
|
|
(3,248 |
) |
|
|
(2,560 |
) |
|
|
(2,527 |
) |
|
|
(1,707 |
) |
|
|
(10,042 |
) |
Operating income |
|
$ |
1,639 |
|
|
$ |
3,318 |
|
|
$ |
1,640 |
|
|
$ |
1,103 |
|
|
$ |
7,700 |
|
% Over (Under) |
|
|
(428.4 |
)% |
|
|
(242.8 |
)% |
|
|
(784.0 |
)% |
|
|
(741.2 |
)% |
|
|
(469.0 |
)% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230301005935/en/
Investor Contact:
Kenneth R. Bowling
Chief Financial Officer
336-881-5630
Media Contact:
Teresa A. Huffman
Chief Human Resources Officer
336-889-5161