Culp, Inc. (NYSE: CULP) (together with its consolidated
subsidiaries, “CULP”) today reported financial and operating
results for the fourth quarter and fiscal year ended April 30,
2023.
Fiscal 2023 Fourth Quarter Financial Summary
- Net sales for the fourth quarter of fiscal 2023 were $61.4
million, up 7.9 percent compared with the prior-year period, with
mattress fabrics sales up 3.1 percent and upholstery fabrics sales
up 13.1 percent. Sequentially, net sales were up 17.0 percent
compared with the third quarter of fiscal 2023, with mattress
fabrics sales up 24.3 percent and upholstery fabrics sales up 10.4
percent.
- Loss from operations for the quarter was $(4.0) million, as
compared with loss from operations of $(5.4) million for the
prior-year period and loss from operations of $(7.8) million for
the third quarter of fiscal 2023 (which included $711,000 in
restructuring expense).
- Net loss was $(4.7) million, or $(0.38) per diluted share,
compared with a net loss of $(6.0) million, or $(0.49) per diluted
share, for the prior-year period. The effective tax rate for the
fourth quarter was negative (20.6) percent, reflecting the
company’s mix of taxable income between its U.S. and foreign
jurisdictions during the period.
- The company maintained a solid balance sheet, with total cash
of $21.0 million and no outstanding borrowings as of April 30,
2023, up sequentially from total cash of $16.7 million as of the
end of the third quarter.
Fiscal 2023 Full Year Financial Summary
- Net sales for fiscal 2023 were $234.9 million, down 20.3
percent from the prior year, with mattress fabrics sales down 27.1
percent and upholstery fabrics sales down 13.1 percent.
- Loss from operations for fiscal 2023 was $(28.5) million,
compared with income from operations of $678,000 for the prior
year.
- The loss from operations for fiscal 2023 includes approximately
$9.9 million relating to certain inventory impairment charges,
losses from inventory close out sales, inventory markdowns, and
restructuring expense and related charges during the period.
- Net loss was $(31.5) million, or $(2.57) per diluted share,
compared with net loss of $(3.2) million, or $(0.26) per diluted
share, for the prior year. The effective tax rate for fiscal 2023
was negative (11.0) percent, reflecting the company’s mix of
taxable income between its U.S. and foreign jurisdictions during
the period.
- Cash flow from operations and free cash flow were $7.8 million
and $6.9 million, respectively, for fiscal 2023, compared with cash
flow from operations and free cash flow of negative $(17.4) million
and negative $(24.3) million, respectively, for the prior fiscal
year. (See reconciliation table at the back of this press
release.)
Financial Outlook
- CULP achieved sequential and year-over-year improvement in its
operating results for the fourth quarter of fiscal 2023 and remains
well-positioned for the long term, especially with the
transformation strategy underway in its mattress fabrics division.
However, current macro conditions affecting consumer spending and
demand trends are likely to continue for some period.
- Due to the continued volatility in the macro environment, the
company is providing only limited financial guidance for the first
quarter of fiscal 2024. The company’s consolidated net sales for
the first quarter are expected to be slightly lower compared to the
first quarter of fiscal 2023, due mostly to current softness in the
residential home furnishings industry, as well as some slowing of
demand and the timing of additional new program launches in the
mattress fabrics segment. Despite the sales pressure, the company
expects a consolidated operating loss (loss from operations) for
the first quarter of fiscal 2024 that is in the range of $(3.5) to
$(4.0) million, a solid improvement compared to the $(4.7) million
operating loss for the prior-year period.
- The company’s expectations are based on information available
at the time of this press release and reflect certain assumptions
by management regarding the company’s business and trends and the
projected impact of the ongoing headwinds.
Commenting on the results, Iv Culp, president and chief
executive officer of Culp, Inc., said, “Our sales and operating
results for the fourth quarter were better than expected, with
solid improvement despite ongoing demand softness in the domestic
mattress and residential home furnishings industries. The strong
sequential improvement in our mattress fabrics segment was driven
primarily by the roll out of new customer programs during the
period, which were priced in line with current costs and are
expected to grow this segment's market position in fiscal 2024. The
mattress fabrics business also began to benefit from some
improvement in operational efficiencies and cost reduction
initiatives across our locations. For the upholstery fabrics
segment, demand remained solid in our hospitality/contract
business, and our residential fabrics business improved due to a
seasonal pick up following third-quarter shutdowns for the Chinese
New Year holiday, as well as a non-recurring payment relating to
newly negotiated terms with a customer.
"We are especially pleased with our continued focus on cash
generation and working capital management, including inventory
reductions, throughout the quarter. We ended the year with a higher
cash position than the prior year, with $21.0 million in cash and
no outstanding borrowings. We also generated cash flow from
operations of $7.8 million and free cash flow of $6.9 million for
fiscal 2023, a significant improvement compared to the prior fiscal
year.
"We continue to diligently manage the aspects of our business we
can control, taking necessary steps to withstand current market
challenges and position our business for renewed growth. In our
mattress fabrics segment, we are executing on our comprehensive
business transformation plan, laying the foundation for steady,
sequential improvement in this business with new leadership and a
restructured management team. While the pace of this improvement
could be affected by recovery in the overall macroeconomic
environment, we believe we are gaining market share with new
program rollouts, and we are optimistic about additional program
launches expected during calendar 2023. In our upholstery fabrics
segment, the residential home furnishings industry remains under
pressure due to shifting consumer spending trends and inflation
affecting overall consumer spending. However, for fiscal 2024, we
expect to benefit from improved inventory management, a solid
hospitality/contract fabric business, improvement in our Read
Window business, and a rationalized cut and sew platform.
"Fiscal 2023 was a difficult year, but we navigated the
challenges and maintained our balance sheet strength. Our strong
balance sheet allows us to focus on investing in our global
manufacturing platform and growing profitable sales. We are
especially thankful for the hard work and perseverance of our
associates around the world in executing our product-driven
strategy and meeting the needs of our customers this year. While we
expect demand softness in the mattress and residential home
furnishings industries will continue, our market position is
strong, and we are diligently focused on achieving sustainable
improvement and returning to profitability in fiscal 2024. We are
well positioned for the long term, and our innovative product
offerings, creative designs, and global manufacturing and sourcing
platform will support us into the future, especially when market
conditions improve,” added Culp.
Segment Update
Mattress Fabrics Segment (“CHF”) Summary
- Sales for this segment were $30.7 million for the fourth
quarter, up 3.1 percent compared with sales of $29.8 million in the
fourth quarter of fiscal 2022. Sequentially, sales were up 24.3
percent compared with sales of $24.7 million for the third quarter
of fiscal 2023. This sequential improvement was driven primarily by
the roll out of new customer programs, despite a difficult industry
demand environment during the quarter.
- Operating performance for the fourth quarter, as compared both
sequentially and to the prior-year period, was positively affected
by higher sales, as well as some improvement in operating
efficiencies, a favorable product mix, and lower costs resulting
from the restructuring and rationalization of CHF's cut and sew
mattress cover platform in North Carolina initiated during the
second quarter.
- For fiscal 2023, sales were $111.0 million, down 27.1 percent
compared with sales of $152.2 million for fiscal 2022. This
decrease reflects a slowdown in consumer demand in the domestic
mattress industry during the period, with industry reports
reflecting significant unit contraction.
- For the full year, operating performance was affected by lower
sales volumes, as well as operating inefficiencies driven by lower
sales volumes; labor challenges resulting in increased employee
training costs and operating inefficiencies; certain impairment
charges, inventory markdowns, and losses from inventory close out
sales; and higher raw material costs.
Upholstery Fabrics Segment (“CUF”) Summary
- Sales for this segment were $30.7 million for the fourth
quarter, up 13.1 percent compared with sales of $27.2 million in
the fourth quarter of fiscal 2022, which was adversely affected by
COVID-related shutdowns in China during the quarter. Sequentially,
sales were up 10.4 percent compared with sales of $27.8 million for
the third quarter of fiscal 2023.
- Sales for CUF’s residential fabric business improved
sequentially, as compared to the third quarter, due to a seasonal
pick up in demand following shutdowns for the Chinese New Year
holiday, which fell entirely within the third quarter this year.
Sales were also positively affected by receipt of a non-recurring
payment relating to newly negotiated terms with a customer.
- Demand remained solid for CUF’s hospitality/contract business
during the fourth quarter, with sales for this business accounting
for approximately 32 percent of CUF's total sales.
- Operating performance for the fourth quarter, as compared both
sequentially and to the prior-year period, was positively affected
by higher sales, including the non-recurring payment mentioned
above, as well a favorable product mix, lower inventory markdowns,
and lower overhead costs resulting from the restructuring of CUF's
cut and sew platforms during earlier periods. These factors were
partially offset by higher incentive compensation expense during
the period due to CUF's significant contribution to the company's
free cash flow for fiscal 2023.
- For fiscal 2023, sales were $123.9 million, down 13.1 percent
compared with sales of $142.7 million for fiscal 2022. This
decrease primarily reflects reduced demand in CUF's residential
business during fiscal 2023, driven by high customer inventory
levels and a slowdown in new retail business for the residential
home furnishings industry, partially offset by higher sales in
CUF's hospitality/contract fabric business.
- For the full year, operating performance was affected primarily
by lower residential sales, as well as higher than normal inventory
markdowns and operating inefficiencies in CUF's Read Window
Products business. These pressures were partially offset by a
significantly more favorable foreign exchange rate associated with
CUF's operations in China, as well as lower overhead costs
resulting from the restructuring of CUF's cut and sew platforms
during earlier periods.
Balance Sheet and Cash Flow
- As of April 30, 2023, the company reported $21.0 million in
total cash and no outstanding debt. This compares with $14.6
million in total cash and no outstanding debt as of the end of
fiscal 2022.
- Cash flow from operations and free cash flow were $7.8 million
and $6.9 million, respectively, for fiscal 2023, compared with cash
flow from operations and free cash flow of negative $(17.4) million
and negative $(24.3) million, respectively, for fiscal 2022. (See
reconciliation table at the back of this press release.)
- The company’s cash flow from operations and free cash flow
during fiscal 2023 were favorably affected by working capital
management, namely reductions in inventory. Importantly, since the
end of the third quarter of fiscal 2022, inventory reduction has
contributed approximately $21.1 million to the company's cash
position.
- Capital expenditures for fiscal 2023 were $2.1 million compared
with $5.7 million for fiscal 2022. The company continues to manage
capital investments, focusing on projects that will increase
efficiencies and improve quality.
- As of the end of fiscal 2023, the company had approximately
$47.8 million in liquidity, consisting of $21.0 million in total
cash and approximately $26.8 million in borrowing availability
under the company's domestic credit facility.
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 fiscal 2023,
leaving approximately $3.2 million available under the current
share repurchase program as of April 30, 2023. Despite the current
share repurchase authorization, the company does not expect to
repurchase any shares during the first quarter of fiscal 2024.
Conference Call
Culp, Inc. will hold a conference call to discuss financial
results for the fourth quarter and fiscal 2023 year on June 29,
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 June 29, 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 asset
impairments, including impairments of property, plant, and
equipment, inventory, or intangible assets, as well as the impact
of valuation allowances applied against our net deferred income tax
assets, 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.
CONSOLIDATED STATEMENTS OF NET
LOSS
FOR THREE MONTHS ENDED APRIL
30, 2023, AND MAY 1, 2022
Unaudited
(Amounts in Thousands, Except
for Per Share Data)
THREE MONTHS ENDED
Amount
Percent of Sales
(3)
April 30,
May 1,
% Over
April 30,
May 1,
2023
2022
(Under)
2023
2022
Net sales
$
61,426
$
56,940
7.9
%
100.0
%
100.0
%
Cost of sales
(54,538
)
(53,183
)
2.5
%
88.8
%
93.4
%
Gross profit
6,888
3,757
83.3
%
11.2
%
6.6
%
Selling, general and administrative
expenses
(10,845
)
(9,140
)
18.7
%
17.7
%
16.1
%
Restructuring expense (2) (3)
(70
)
—
100.0
%
0.1
%
—
Loss from operations
(4,027
)
(5,383
)
(25.2
)%
(6.6
)%
(9.5
)%
Interest expense
—
(17
)
(100.0
)%
—
(0.0
)%
Interest income
239
26
819.2
%
0.4
%
0.0
%
Other expense
(95
)
(396
)
(76.0
)%
(0.2
)%
0.7
%
Loss before income taxes
(3,883
)
(5,770
)
(32.7
)%
(6.3
)%
(10.1
)%
Income tax expense (1)
(798
)
(253
)
215.4
%
(20.6
)%
(4.4
)%
Net loss
$
(4,681
)
$
(6,023
)
(22.3
)%
(7.6
)%
(10.6
)%
Net loss per share - basic
$
(0.38
)
$
(0.49
)
(22.9
)%
Net loss per share - diluted
$
(0.38
)
$
(0.49
)
(22.9
)%
Average shares outstanding-basic
12,316
12,222
0.8
%
Average shares outstanding-diluted
12,316
12,222
0.8
%
Notes
(1)
Percent of sales column for income tax
expense is calculated as a % of loss before income taxes.
(2)
Restructuring expense of $70,000 for the
three-months ending April 30, 2023, represents employee termination
benefits of $39,000 and other associated costs of $31,000 that
related to the consolidation of certain leased facilities located
in Ouanaminthe, Haiti.
(3)
See page 13 for our Reconciliation of
Selected Income Statement Information to Adjusted Results for the
three-months ending April 30, 2023.
CULP, INC.
CONSOLIDATED STATEMENTS OF NET
LOSS
FOR TWELVE MONTHS ENDED APRIL
30, 2023, AND MAY 1, 2022
Unaudited
(Amounts in Thousands, Except
for Per Share Data)
TWELVE MONTHS ENDED
Amount
Percent of Sales
(4)
April 30,
May 1,
% Over
April 30,
May 1,
2023
2022
(Under)
2023
2022
Net sales
$
234,934
$
294,839
(20.3
)%
100.0
%
100.0
%
Cost of sales (2)
(224,038
)
(258,746
)
(13.4
)%
95.4
%
87.8
%
Gross profit
10,896
36,093
(69.8
)%
4.6
%
12.2
%
Selling, general and administrative
expenses
(37,978
)
(35,415
)
7.2
%
16.2
%
12.0
%
Restructuring expense (3) (4)
(1,396
)
—
100.0
%
0.6
%
—
(Loss) income from operations
(28,478
)
678
N.M.
(12.1
)%
0.2
%
Interest expense
—
(17
)
(100.0
)%
—
(0.0
)%
Interest income
531
373
42.4
%
0.2
%
0.1
%
Other expense
(443
)
(1,359
)
(67.4
)%
0.2
%
0.5
%
Loss before income taxes
(28,390
)
(325
)
N.M.
(12.1
)%
(0.1
)%
Income tax expense (1)
(3,130
)
(2,886
)
8.5
%
(11.0
)%
(888.0
)%
Net loss
$
(31,520
)
$
(3,211
)
N.M.
(13.4
)%
(1.1
)%
Net loss per share - basic
$
(2.57
)
$
(0.26
)
N.M.
Net loss per share - diluted
$
(2.57
)
$
(0.26
)
N..M
Average shares outstanding-basic
12,283
12,242
0.3
%
Average shares outstanding-diluted
12,283
12,242
0.3
%
Notes
(1)
Percent of sales column for income tax
expense is calculated as a % of loss before income taxes.
(2)
Cost of sales for the twelve-months ending
April 30, 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 $1.4 million for
the twelve-months ending April 30, 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 and fourth quarters of fiscal 2023.
Restructuring expense represents employee termination benefits of
$507,000, lease termination costs of $481,000, impairment losses
totaling $357,000 that relate to leasehold improvements and
equipment, and $51,000 for other associated costs.
(4)
See page 14 for our Reconciliation of
Selected Income Statement Information to Adjusted Results for the
twelve-months ending April 30, 2023.
CONSOLIDATED BALANCE
SHEETS
APRIL 30 2023 AND MAY 1,
2022
Unaudited
(Amounts in Thousands)
Amounts
(Condensed)
(Condensed)
April 30,
* May 1,
Increase (Decrease)
2023
2022
Dollars
Percent
Current assets
Cash and cash equivalents
$
20,964
14,550
6,414
44.1
%
Short-term investments - Rabbi Trust
1,404
—
1,404
100.0
%
Accounts receivable
24,778
22,226
2,552
11.5
%
Inventories
45,080
66,557
(21,477
)
(32.3
)%
Note receivable
219
—
219
100.0
%
Current income taxes receivable
—
857
(857
)
(100.0
)%
Other current assets
3,071
2,986
85
2.8
%
Total current assets
95,516
107,176
(11,660
)
(10.9
)%
Property, plant & equipment, net
36,111
41,702
(5,591
)
(13.4
)%
Right of use assets
8,191
15,577
(7,386
)
(47.4
)%
Intangible assets
2,252
2,628
(376
)
(14.3
)%
Long-term investments - Rabbi Trust
7,067
9,357
(2,290
)
(24.5
)%
Note receivable
1,726
—
1,726
100.0
%
Deferred income taxes
480
528
(48
)
(9.1
)%
Other assets
840
595
245
41.2
%
Total assets
$
152,183
177,563
(25,380
)
(14.3
)%
Current liabilities
Accounts payable - trade
$
29,442
20,099
9,343
46.5
%
Accounts payable - capital
expenditures
56
473
(417
)
(88.2
)%
Operating lease liability - current
2,640
3,219
(579
)
(18.0
)%
Deferred compensation
1,404
—
1,404
100.0
%
Deferred revenue
1,192
520
672
129.2
%
Accrued expenses
8,533
7,832
701
9.0
%
Income taxes payable - current
753
413
340
82.3
%
Total current liabilities
44,020
32,556
11,464
35.2
%
Operating lease liability - long-term
3,612
7,062
(3,450
)
(48.9
)%
Income taxes payable - long-term
2,675
3,097
(422
)
(13.6
)%
Deferred income taxes
5,954
6,004
(50
)
(0.8
)%
Deferred compensation
6,842
9,343
(2,501
)
(26.8
)%
Total liabilities
63,103
58,062
5,041
8.7
%
Shareholders' equity
89,080
119,501
(30,421
)
(25.5
)%
Total liabilities and shareholders'
equity
$
152,183
177,563
(25,380
)
(14.3
)%
Shares outstanding
12,327
12,229
98
0.8
%
* Derived from audited financial
statements.
CULP, INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
FOR THE TWELVE MONTHS ENDED
APRIL 30, 2023, AND MAY 1, 2022
Unaudited
(Amounts in Thousands)
TWELVE MONTHS ENDED
Amounts
April 30,
May 1,
2023
2022
Cash flows from operating activities:
Net loss
$
(31,520
)
$
(3,211
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation
6,845
6,994
Non-cash inventory charges (2) (3)
5,819
1,927
Amortization
438
559
Stock-based compensation
1,145
1,133
Deferred income taxes
(2
)
691
Realized loss from the sale of
investments
—
450
Gain on sale of equipment
(314
)
—
Non-cash restructuring expense
791
—
Foreign currency exchange (gain) loss
(537
)
16
Changes in assets and liabilities:
Accounts receivable
(2,642
)
15,416
Inventories
15,370
(12,714
)
Other current assets
(297
)
946
Other assets
86
(1,386
)
Accounts payable
10,274
(22,131
)
Deferred revenue
672
(20
)
Accrued expenses and deferred
compensation
853
(5,204
)
Income taxes
823
(907
)
Net cash provided by (used in) operating
activities
7,804
(17,441
)
Cash flows from investing activities:
Capital expenditures
(2,108
)
(5,695
)
Proceeds from the sale of equipment
468
—
Proceeds from note receivable
15
—
Proceeds from the sale and maturity of
investments (Held to Maturity)
—
13,486
Purchase of investments (Held to
Maturity)
—
(9,751
)
Purchase of short-term investments
(Available for Sale)
—
(4,391
)
Proceeds from the sale of short-term
investments (Available for Sale)
—
9,879
Proceeds from the sale of long-term
investments (rabbi trust)
2,058
56
Purchase of long-term investments (rabbi
trust)
(1,185
)
(1,088
)
Net cash (used in) provided by investing
activities
(752
)
2,496
Cash flows from financing activities:
Payments associated with lines of
credit
—
(9,000
)
Proceeds associated with lines of
credit
—
9,000
Dividends paid
—
(5,511
)
Common stock repurchased
—
(1,752
)
Common stock surrendered for withholding
taxes payable
(33
)
(50
)
Payments of debt issuance costs
(403
)
(110
)
Net cash used in financing activities
(436
)
(7,423
)
Effect of exchange rate changes on cash
and cash equivalents
(202
)
(91
)
Increase (decrease) in cash and cash
equivalents
6,414
(22,459
)
Cash and cash equivalents at beginning of
year
14,550
37,009
Cash and cash equivalents at end of
year
$
20,964
$
14,550
Free Cash Flow (1)
$
6,850
$
(24,259
)
(1)
See next page for Reconciliation of Free
Cash Flow for the twelve-month periods ending April 30, 2023, and
May 1, 2022, respectively.
(2)
The non-cash inventory charge of $5.8
million for the twelve-months ending April 30, 2023, represents a
$2.9 million impairment charge associated with our mattress fabrics
segment, $2.8 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 $1.9
million for the twelve-months ending May 1, 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
$
7,804
$
(17,441
)
B) Minus: Capital Expenditures
(2,108
)
(5,695
)
C) Plus: Proceeds from the sale of
equipment
468
—
D) Plus: Proceeds from note receivable
15
—
E) Plus: Proceeds from the sale of
long-term investments (rabbi trust)
2,058
56
F) Minus: Purchase of long-term
investments (rabbi trust)
(1,185
)
(1,088
)
G) Effects of exchange rate changes on
cash and cash equivalents
(202
)
(91
)
Free Cash Flow
$
6,850
$
(24,259
)
CULP, INC.
STATEMENTS OF OPERATIONS BY
SEGMENT
FOR THE THREE MONTHS ENDED
APRIL 30, 2023, AND MAY 1, 2022
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
2023
2022
(Under)
2023
2022
Mattress Fabrics
$
30,696
$
29,779
3.1
%
50.0
%
52.3
%
Upholstery Fabrics
30,730
27,161
13.1
%
50.0
%
47.7
%
Net Sales
$
61,426
$
56,940
7.9
%
100.0
%
100.0
%
Gross Profit
Gross Margin
Mattress Fabrics
$
591
$
355
66.5
%
1.9
%
1.2
%
Upholstery Fabrics
6,297
3,402
85.1
%
20.5
%
12.5
%
Gross Profit
$
6,888
$
3,757
83.3
%
11.2
%
6.6
%
Selling, General and Administrative
Expenses by Segment
Percent of Sales
Mattress Fabrics
$
3,121
$
3,255
(4.1
)%
10.2
%
10.9
%
Upholstery Fabrics
4,686
3,519
33.2
%
15.2
%
13.0
%
Unallocated Corporate expenses
3,038
2,366
28.4
%
4.9
%
4.2
%
Selling, General and Administrative
Expenses
$
10,845
$
9,140
18.7
%
17.7
%
16.1
%
(Loss) Income from Operations by
Segment
Operating Margin
Mattress Fabrics
$
(2,530
)
$
(2,901
)
(12.8
)%
(8.2
)%
(9.7
)%
Upholstery Fabrics
1,611
(116
)
N.M.
5.2
%
(0.4
)%
Unallocated corporate expenses
(3,038
)
(2,366
)
28.4
%
(4.9
)%
(4.2
)%
Total Segment Loss from Operations
(3,957
)
(5,383
)
(26.5
)%
(6.4
)%
(9.5
)%
Restructuring Expense (1)
(70
)
—
100.0
%
(0.1
)%
—
Loss from Operations
$
(4,027
)
$
(5,383
)
(25.2
)%
(6.6
)%
(9.5
)%
Depreciation Expense by Segment
Mattress Fabrics
$
1,426
$
1,587
(10.1
)%
Upholstery Fabrics
193
204
(5.4
)%
Depreciation Expense
$
1,619
$
1,791
(9.6
)%
Notes
(1)
See page 13 for our Reconciliation of
Selected Income Statement Information to Adjusted Results for the
three-months ending April 30, 2023.
CULP, INC.
STATEMENTS OF OPERATIONS BY
SEGMENT
FOR THE TWELVE MONTHS ENDED
APRIL 30, 2023, AND MAY 1, 2022
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
2023
2022
(Under)
2023
2022
Mattress Fabrics
$
110,995
$
152,159
(27.1
)%
47.2
%
51.6
%
Upholstery Fabrics
123,939
142,680
(13.1
)%
52.8
%
48.4
%
Net Sales
$
234,934
$
294,839
(20.3
)%
100.0
%
100.0
%
Gross (Loss) Profit
Gross Profit Margin
Mattress Fabrics
$
(6,739
)
$
16,458
(140.9
)%
(6.1
)%
10.8
%
Upholstery Fabrics
17,733
19,635
(9.7
)%
14.3
%
13.8
%
Total Segment Gross Profit
10,994
36,093
(69.5
)%
4.7
%
12.2
%
Restructuring Related Charge (3)
(98
)
—
100.0
%
(0.0
)%
—
Gross Profit
$
10,896
$
36,093
(69.8
)%
4.6
%
12.2
%
Selling, General and Administrative
Expenses by Segment
Percent of Sales
Mattress Fabrics
$
11,942
$
12,246
(2.5
)%
10.8
%
8.0
%
Upholstery Fabrics
15,739
14,009
12.3
%
12.7
%
9.8
%
Unallocated Corporate expenses
10,297
9,160
12.4
%
4.4
%
3.1
%
Selling, General and Administrative
Expenses
$
37,978
$
35,415
7.2
%
16.2
%
12.0
%
(Loss) Income from Operations by
Segment
Operating Margin
Mattress Fabrics
$
(18,681
)
$
4,212
N.M.
(16.8
)%
2.8
%
Upholstery Fabrics
1,994
5,626
(64.6
)%
1.6
%
3.9
%
Unallocated corporate expenses
(10,297
)
(9,160
)
12.4
%
(4.4
)%
(3.1
)%
Total Segment (Loss) Income from
Operations
(26,984
)
678
N.M.
(11.5
)%
0.2
%
Restructuring Expense (3)
(1,396
)
—
100.0
%
(0.6
)%
—
Restructuring Related Charge (3)
(98
)
—
100.0
%
(0.0
)%
—
(Loss) Income from Operations
$
(28,478
)
678
N.M.
(12.1
)%
0.2
%
Return on Capital (1)
Mattress Fabrics
(25.8
)%
5.3
%
N.M.
Upholstery Fabrics
11.2
%
29.7
%
(62.3
)%
Unallocated Corporate
N.M.
N.M.
N.M.
Consolidated
(28.7
)%
0.7
%
N.M.
Capital Employed (1) (2)
Mattress Fabrics
$
64,107
$
84,040
(23.7
)%
Upholstery Fabrics
9,489
25,209
(62.4
)%
Unallocated Corporate
3,197
3,817
(16.2
)%
Consolidated
$
76,793
$
113,066
(32.1
)%
Depreciation Expense by Segment
Mattress Fabrics
$
6,050
$
6,200
(2.4
)%
Upholstery Fabrics
795
794
0.1
%
Depreciation Expense
$
6,845
$
6,994
(2.1
)%
Notes
(1)
See return on capital pages at the back of
this presentation.
(2)
The capital employed balances are as of
April 30, 2023, and May 1, 2022, respectively.
(3)
See page 14 for our Reconciliation of
Selected Income Statement Information to Adjusted Results for the
twelve-months ending April 30, 2023.
CULP, INC.
RECONCILIATION OF SELECTED
INCOME STATEMENT INFORMATION TO ADJUSTED RESULTS
FOR THREE MONTHS ENDED APRIL
30, 2023
Unaudited
(Amounts in Thousands)
As Reported
April 30, 2023
April 30,
Adjusted
2023
Adjustments
Results
Net sales
$
61,426
—
$
61,426
Cost of sales
(54,538
)
—
(54,538
)
Gross profit
6,888
—
6,888
Selling, general and administrative
expenses
(10,845
)
—
(10,845
)
Restructuring expense (1)
(70
)
70
—
Loss from operations
$
(4,027
)
70
$
(3,957
)
Notes
(1)
Restructuring expense of $70,000 for the
three-months ending April 30, 2023, represents employee termination
benefits of $39,000 and other associated costs of $31,000 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 TWELVE MONTHS ENDED APRIL
30, 2023
Unaudited
(Amounts in Thousands)
As Reported
April 30, 2023
April 30,
Adjusted
2023
Adjustments
Results
Net sales
$
234,934
—
$
234,934
Cost of sales (1)
(224,038
)
98
(223,940
)
Gross profit
10,896
98
10,994
Selling, general and administrative
expenses
(37,978
)
—
(37,978
)
Restructuring expense (2)
(1,396
)
1,396
—
Loss from operations
$
(28,478
)
1,494
$
(26,984
)
Notes
(1)
Cost of sales for the twelve-months ending
April 30, 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 $1.4 million for
the twelve-months ending April 30, 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 and fourth quarters of fiscal 2023.
Restructuring expense represents employee termination benefits of
$507,000, lease termination costs of $481,000, impairment losses
totaling $357,000 that relate to leasehold improvements and
equipment, and $51,000 for other associated costs.
CULP, INC.
CONSOLIDATED STATEMENTS OF
ADJUSTED EBITDA
FOR THE TWELVE MONTHS ENDED
APRIL 30, 2023, AND MAY 1, 2022
Unaudited
(Amounts in Thousands)
Quarter Ended
Quarter Ended
Quarter Ended
Quarter Ended
Trailing 12 Months
July 31,
October 30,
January 29,
April 30,
April 30,
2022
2022
2023
2023
2023
Net loss (1)
$
(5,698
)
$
(12,173
)
$
(8,968
)
$
(4,681
)
$
(31,520
)
Income tax expense
896
1,150
286
798
3,130
Interest income, net
(17
)
(79
)
(196
)
(239
)
(531
)
Depreciation expense
1,768
1,719
1,739
1,619
6,845
Restructuring expense
—
615
711
70
1,396
Restructuring related charge
—
98
—
—
98
Amortization expense
105
109
109
115
438
Stock based compensation
252
313
322
258
1,145
Adjusted EBITDA (1)
$
(2,694
)
$
(8,248
)
$
(5,997
)
$
(2,060
)
$
(18,999
)
% Net Sales
(4.3
)%
(14.1
)%
(11.4
)%
(3.4
)%
(8.1
)%
Quarter Ended
Quarter Ended
Quarter Ended
Quarter Ended
Trailing 12 Months
August 1,
October 31,
January 30,
May 1,
May 1,
2021
2021
2022
2022
2022
Net income (loss)
$
2,250
$
851
$
(289
)
$
(6,023
)
$
(3,211
)
Income tax expense
905
444
1,284
253
2,886
Interest income, net
(74
)
(59
)
(214
)
(9
)
(356
)
Depreciation expense
1,726
1,745
1,732
1,791
6,994
Amortization expense
121
146
150
142
559
Stock based compensation
274
435
171
253
1,133
Adjusted EBITDA
$
5,202
$
3,562
$
2,834
$
(3,593
)
$
8,005
% Net Sales
6.3
%
4.8
%
3.5
%
(6.3
)%
2.7
%
% Over (Under)
(151.8
)%
(331.6
)%
(311.6
)%
(42.7
)%
(337.3
)%
(1)
Net loss and adjusted EBITDA for the
quarter ended October 30, 2022, and the twelve month period ended
April 30, 2023, 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
APRIL 30, 2023
Unaudited
(Amounts in Thousands)
Adjusted Operating (Loss)
Income
Twelve Months Ended
April 30, 2023
Average Capital
Employed (2)
Return on Avg. Capital
Employed (1)
Mattress Fabrics
$
(18,681
)
$
72,282
(25.8
)%
Upholstery Fabrics
1,994
17,853
11.2
%
Unallocated Corporate
(10,297
)
3,808
N.M.
Total
$
(26,984
)
$
93,943
(28.7
)%
Average Capital Employed
As of the three Months Ended
April 30, 2023
As of the three Months Ended
January 29, 2023
As of the three Months Ended
October 30, 2022
Mattress
Upholstery
Unallocated
Mattress
Upholstery
Unallocated
Mattress
Upholstery
Unallocated
Fabrics
Fabrics
Corporate
Total
Fabrics
Fabrics
Corporate
Total
Fabrics
Fabrics
Corporate
Total
Total assets (3)
$
75,494
39,127
37,562
152,183
$
75,393
39,817
35,388
150,598
$
78,366
44,934
38,330
161,630
Total liabilities
(11,387
)
(29,638
)
(22,078
)
(63,103
)
(9,511
)
(24,367
)
(23,216
)
(57,094
)
(9,895
)
(26,108
)
(23,519
)
(59,522
)
Subtotal
$
64,107
$
9,489
$
15,484
$
89,080
$
65,882
$
15,450
$
12,172
$
93,504
$
68,471
$
18,826
$
14,811
$
102,108
Cash and cash equivalents
—
—
(20,964
)
(20,964
)
—
—
(16,725
)
(16,725
)
—
—
(19,137
)
(19,137
)
Short-term investments - Rabbi
Trust
—
—
(1,404
)
(1,404
)
—
—
(2,420
)
(2,420
)
—
—
(2,237
)
(2,237
)
Current income taxes receivable
—
—
—
—
—
—
(238
)
(238
)
—
—
(510
)
(510
)
Long-term investments - Rabbi
Trust
—
—
(7,067
)
(7,067
)
—
—
(7,725
)
(7,725
)
—
—
(7,526
)
(7,526
)
Deferred income taxes -
non-current
—
—
(480
)
(480
)
—
—
(463
)
(463
)
—
—
(493
)
(493
)
Deferred compensation - current
—
—
1,404
1,404
—
—
2,420
2,420
—
—
2,237
2,237
Accrued restructuring
—
—
—
—
—
—
—
—
—
—
33
33
Income taxes payable - current
—
—
753
753
—
—
467
467
—
—
969
969
Income taxes payable -
long-term
—
—
2,675
2,675
—
—
2,648
2,648
—
—
2,629
2,629
Deferred income taxes -
non-current
—
—
5,954
5,954
—
—
6,089
6,089
—
—
5,700
5,700
Deferred compensation
non-current
—
—
6,842
6,842
—
—
7,590
7,590
—
—
7,486
7,486
Total Capital Employed
$
64,107
$
9,489
$
3,197
$
76,793
$
65,882
$
15,450
$
3,815
$
85,147
$
68,471
$
18,826
$
3,962
$
91,259
CULP, INC.
RETURN ON CAPITAL EMPLOYED BY
SEGMENT - CONTINUED
FOR THE TWELVE MONTHS ENDED
APRIL 30, 2023
Unaudited
(Amounts in Thousands)
As of the three Months Ended
July 31, 2022
As of the three Months Ended
May 1, 2022
Mattress
Upholstery
Unallocated
Mattress
Upholstery
Unallocated
Fabrics
Fabrics
Corporate
Total
Fabrics
Fabrics
Corporate
Total
Total assets (3)
$
90,842
51,053
38,595
180,490
$
92,609
51,124
33,830
177,563
Total liabilities
(11,934
)
(30,762
)
(23,799
)
(66,495
)
(8,569
)
(25,915
)
(23,578
)
(58,062
)
Subtotal
$
78,908
$
20,291
$
14,796
$
113,995
$
84,040
$
25,209
$
10,252
$
119,501
Cash and cash equivalents
—
—
(18,874
)
(18,874
)
—
—
(14,550
)
(14,550
)
Current income taxes receivable
—
—
(798
)
(798
)
—
—
(857
)
(857
)
Long-term investments - Rabbi
Trust
—
—
(9,567
)
(9,567
)
—
—
(9,357
)
(9,357
)
Deferred income taxes -
non-current
—
—
(546
)
(546
)
—
—
(528
)
(528
)
Income taxes payable - current
—
—
587
587
—
—
413
413
Income taxes payable -
long-term
—
—
3,118
3,118
—
—
3,097
3,097
Deferred income taxes -
non-current
—
—
6,007
6,007
—
—
6,004
6,004
Deferred compensation
—
—
9,528
9,528
—
—
9,343
9,343
Total Capital Employed
$
78,908
$
20,291
$
4,251
$
103,450
$
84,040
$
25,209
$
3,817
$
113,066
Mattress
Upholstery
Unallocated
Fabrics
Fabrics
Corporate
Total
Average Capital Employed (2)
$
72,282
$
17,853
$
3,808
$
93,943
Notes
(1)
Return on average capital employed
represents the twelve months operating (loss) income as of April
30, 2023, divided by average capital employed. Average capital
employed does not include cash and cash equivalents, 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.
(2)
Average capital employed was computed
using the five quarterly periods ending April 30, 2023, January 29,
2023, October 30, 2022, July 31, 2022, and May 1, 2022.
(3)
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
MAY 1, 2022
Unaudited
(Amounts in Thousands)
Adjusted Operating Income
(Loss)
Twelve Months Ended
May 1, 2022
Average Capital
Employed (2)
Return on Avg. Capital
Employed (1)
Mattress Fabrics
$
4,212
$
80,088
5.3
%
Upholstery Fabrics
5,626
18,911
29.7
%
Unallocated Corporate
(9,160
)
2,682
N.M.
Total
$
678
$
101,681
0.7
%
Average Capital Employed
As of the three Months Ended
May 1, 2022
As of the three Months Ended
January 30, 2022
As of the three Months Ended
October 31, 2021
Mattress
Upholstery
Unallocated
Mattress
Upholstery
Unallocated
Mattress
Upholstery
Unallocated
Fabrics
Fabrics
Corporate
Total
Fabrics
Fabrics
Corporate
Total
Fabrics
Fabrics
Corporate
Total
Total assets (3)
$
92,609
51,124
33,830
177,563
$
103,370
67,272
40,925
211,567
$
97,390
55,862
56,073
209,325
Total liabilities
(8,569
)
(25,915
)
(23,578
)
(58,062
)
(16,540
)
(45,596
)
(22,697
)
(84,833
)
(18,818
)
(38,560
)
(23,493
)
(80,871
)
Subtotal
$
84,040
$
25,209
$
10,252
$
119,501
$
86,830
$
21,676
$
18,228
$
126,734
$
78,572
$
17,302
$
32,580
$
128,454
Cash and cash equivalents
—
—
(14,550
)
(14,550
)
—
—
(11,780
)
(11,780
)
—
—
(16,956
)
(16,956
)
Short-term investments -
Available-For-Sale
—
—
—
—
—
—
(438
)
(438
)
—
—
(9,709
)
(9,709
)
Short-term investments -
Held-To-Maturity
—
—
—
—
—
—
(1,315
)
(1,315
)
—
—
(1,564
)
(1,564
)
Current income taxes receivable
—
—
(857
)
(857
)
—
—
(367
)
(367
)
—
—
(613
)
(613
)
Long-term investments -
Held-To-Maturity
—
—
—
—
—
—
(8,677
)
(8,677
)
—
—
(8,353
)
(8,353
)
Long-term investments - Rabbi
Trust
—
—
(9,357
)
(9,357
)
—
—
(9,223
)
(9,223
)
—
—
(9,036
)
(9,036
)
Deferred income taxes -
non-current
—
—
(528
)
(528
)
—
—
(500
)
(500
)
—
—
(452
)
(452
)
Income taxes payable - current
—
—
413
413
—
—
240
240
—
—
646
646
Income taxes payable -
long-term
—
—
3,097
3,097
—
—
3,099
3,099
—
—
3,099
3,099
Deferred income taxes -
non-current
—
—
6,004
6,004
—
—
5,484
5,484
—
—
4,918
4,918
Deferred compensation
—
—
9,343
9,343
—
—
9,180
9,180
—
—
9,017
9,017
Total Capital Employed
$
84,040
$
25,209
$
3,817
$
113,066
$
86,830
$
21,676
$
3,931
$
112,437
$
78,572
$
17,302
$
3,577
$
99,451
CULP INC.
RETURN ON CAPITAL EMPLOYED BY
SEGMENT - CONTINUED
FOR THE TWELVE MONTHS ENDED
MAY 1, 2022
Unaudited
(Amounts in Thousands)
As of the three Months Ended
August 1, 2021
As of the three Months Ended
May 2, 2021
Mattress
Upholstery
Unallocated
Mattress
Upholstery
Unallocated
Fabrics
Fabrics
Corporate
Total
Fabrics
Fabrics
Corporate
Total
Total assets (3)
$
96,846
55,187
60,215
212,248
$
97,861
53,875
62,344
214,080
Total liabilities
(21,298
)
(39,983
)
(21,418
)
(82,699
)
(22,410
)
(38,709
)
(23,955
)
(85,074
)
Subtotal
$
75,548
$
15,204
$
38,797
$
129,549
$
75,451
$
15,166
$
38,389
$
129,006
Cash and cash equivalents
—
—
(26,061
)
(26,061
)
—
—
(37,009
)
(37,009
)
Short-term investments -
Available-For-Sale
—
—
(9,698
)
(9,698
)
—
—
(5,542
)
(5,542
)
Short-term investments -
Held-To-Maturity
—
—
(1,661
)
(1,661
)
—
—
(3,161
)
(3,161
)
Current income taxes receivable
—
—
(524
)
(524
)
—
—
—
—
Long-term investments -
Held-To-Maturity
—
—
(6,629
)
(6,629
)
—
—
(1,141
)
(1,141
)
Long-term investments - Rabbi
Trust
—
—
(8,841
)
(8,841
)
—
—
(8,415
)
(8,415
)
Deferred income taxes -
non-current
—
—
(455
)
(455
)
—
—
(545
)
(545
)
Income taxes payable - current
—
—
253
253
—
—
229
229
Income taxes payable -
long-term
—
—
3,365
3,365
—
—
3,326
3,326
Deferred income taxes -
non-current
—
—
4,917
4,917
—
—
5,330
5,330
Deferred compensation
—
—
8,795
8,795
—
—
8,365
8,365
Total Capital Employed
$
75,548
$
15,204
$
2,258
$
93,010
$
75,451
$
15,166
$
(174
)
$
90,443
Mattress
Upholstery
Unallocated
Fabrics
Fabrics
Corporate
Total
Average Capital Employed (2)
$
80,088
$
18,911
$
2,682
$
101,681
Notes
(1)
Return on average capital employed
represents the last twelve months operating income (loss) as of May
1, 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.
(2)
Average capital employed was computed
using the five quarterly periods ending May 1, 2022, January 30,
2022, October 31, 2021, August 1, 2021, and May 2, 2021.
(3)
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230628793533/en/
Investor Contact: Kenneth R. Bowling Chief Financial Officer
336-881-5630
Media Contact: Teresa A. Huffman Chief Human Resources Officer
336-889-5161
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