HIGH POINT, N.C.--(BUSINESS WIRE)--June 25, 2025--
Culp, Inc. $(CULP)$, a leading provider of fabrics for bedding and upholstery fabrics for residential and commercial furniture, today reported financial and operating results for the fourth quarter and fiscal year ended April 27, 2025.
Iv Culp, President and Chief Executive Officer, commented, "Fiscal 2025 was a year of heavy lifting across CULP, and we are encouraged by the results of our work to transform our cost structure and better position the company for growth. Given the challenging revenue environment and tariff-related uncertainty that is evident and continues across the industry, we concentrated on what we can control and successfully executed on a variety of aggressive initiatives that should drive better operating leverage, particularly as market conditions improve. We also continued to play to our strength in providing the highest levels of service, product offerings and supply chain optionality to our customers, and we believe that our market share remains strong and continues to expand within certain targeted segments.
"The recent sale of our manufacturing facility in Canada capped the completion of the restructuring plan we announced last year including facility closures and consolidations in our mattress fabrics division, as well as a transition to an asset-light, strategic sourcing model for certain major product lines. We are pleased to see the benefits of that plan reflected in our financial results, with a lower fixed cost base and increased efficiencies in our mattress fabrics division helping to drive improvement during the year and significantly better overall operating results for the quarter despite the pressured macro conditions.
"In light of the continuing market softness, along with heightened tariff uncertainty, we are taking additional action including the integration of our two operating divisions, Culp Upholstery Fabrics and Culp Home Fashions, into a unified CULP-branded business that enhances our ability to anticipate and react to market trends as well as optimize resources across our organization. We expect this more centralized approach to improve scale efficiencies throughout CULP and to generate additional savings as we progress through fiscal 2026. In addition, the related facility consolidation activity should elevate the operating profile of our upholstery fabrics business, which continues to achieve profitability in the face of historically low demand for home furnishings and challenges from high tariff rates on China-produced goods. We also recently extended our credit facility with Wells Fargo for an additional three years, which we believe will provide us with additional flexibility and liquidity as needed to fund and grow our business going forward.
Mr. Culp concluded, "I remain incredibly proud of our team's ability to respond to the changing needs of our business. Thanks to their hard work and dedication, we move into our new fiscal year with a leaner, more flexible global platform enabling us to quickly respond to market and tariff fluidity, as well as a highly resilient business model well-positioned to seize opportunities and meet the challenges ahead."
Fiscal 2025 Fourth Quarter Financial Highlights
--
Consolidated net sales of $48.8 million, generally flat to prior-year
period net sales of $49.5 million, with mattress fabric sales up 5.3
percent and upholstery fabric sales down 8.9 percent year-over-year.
--
GAAP consolidated loss from operations of $(2.2) million (including
$1.5 million in restructuring and related expenses), compared with GAAP
consolidated loss from operations of $(4.2) million (including $204,000
in restructuring expense during the period).
- Non-GAAP operating loss
of $(704) thousand, a marked improvement over the prior-year period's
non-GAAP operating loss of $(4.0) million (see reconciliation table on
page 16) driven primarily by cost and efficiency benefits from the
restructuring plan and also favorably impacted by lower inventory
markdowns.
- Continued momentum in mattress fabrics operating
performance, including significant improvement in operating loss from the
prior-year period and consistent improvement throughout the year.
-
Continued profitability in the upholstery fabrics segment despite a
low-revenue industry environment and tariff-related challenges.
--
Net loss of $(2.1) million (including $1.5 million in restructuring and
related expenses), or $(.17) per diluted share, compared to a net loss of
$(4.9) million, or $(.39) per diluted share, in the prior-year period.
-
Adjusted EBITDA for the period was $559 thousand, compared to negative
$(2.2) million in the prior-year period (see reconciliation table on page
20), with the improvement driven primarily by restructuring activities
and also favorably impacted by lower inventory markdowns.
Fiscal 2025 Full Year Financial Highlights
--
Consolidated net sales of $213.2 million, down 5.4 percent from the
prior year, with mattress fabric sales down 2.1 percent and upholstery
fabric sales down 8.8 percent.
--
GAAP consolidated loss from operations of $(18.4) million (including
$9.4 million in restructuring and related expenses), compared with GAAP
consolidated loss from operations of $(11.3) million (including $676,000
in restructuring and related expenses during the period).
- Non-GAAP
operating loss of $(9.0) million, an improvement over the prior-year
period's non-GAAP operating loss of $(10.6) million (see reconciliation
table on page 17) driven primarily by the same dynamics driving the
improvement in non-GAAP operating loss during the fourth quarter.
--
Net loss of $(19.1) million (including $9.4 million in restructuring
and related expenses), or $(1.53) per diluted share, compared with a net
loss of $(13.8) million, or $(1.11) per diluted share, for the prior
year.
--
As of April 27, 2025, the Company maintained $5.6 million in total cash
and $12.7 million in outstanding debt under its credit facilities.
Restructuring Plan Update
The restructuring plan announced in May of 2024, which was primarily focused within the Company's mattress fabrics business, was completed as planned, with the sale of the Company's manufacturing facility in Quebec, Canada, consummated on April 30, 2025. The Company continues to expect the restructuring plan to generate $10.0-$11.0 million in annualized savings and operating improvements, with many of these benefits already beginning to manifest in the Company's fourth quarter fiscal 2025 results.
The Company incurred total restructuring and restructuring-related expenses of $9.4 million in fiscal 2025, of which $5.6 million consisted of cash expenditures. The Company funded close to $2.3 million of these cash expenditures with proceeds from the sale of excess manufacturing equipment, proceeds from a building lease termination in Haiti, and a small portion of the proceeds from the sale of its Canada facility. In fiscal 2026, the Company expects to realize a total of approximately $3.0 to $3.5 million in cash proceeds, net of all taxes and commissions, on the sale of its Canada facility.
Business Segment Highlights
Mattress Fabrics Segment
--
Sales for this segment were $27.1 million for the fourth quarter, up
5.3 percent compared with sales of $25.8 million in the prior-year
period. Sales continued to be pressured by industry-wide low demand and
related challenges from weaker consumer spending and housing market
trends, but the Company continues to win new business with larger
customers.
--
Operating loss was $(217) thousand for the fourth quarter, compared to
an operating loss of $(2.9) million in the prior-year period, with the
improvement driven primarily by higher gross margins attributable to
lower fixed costs and operating efficiency improvements derived from the
restructuring plan and lower inventory markdowns.
--
For the full year, sales were $113.9 million, down 2.1 percent compared
with sales of $116.4 million for fiscal 2024, with the decrease driven by
the above-referenced weak industry conditions and related macro-economic
challenges.
--
For the full year, operating loss was $(5.2) million, compared with an
operating loss of ($6.8) million for fiscal 2024. Operating performance
continued to be pressured by lower sales, but improved consistently
during the year, with the improvement driven primarily by the same
dynamics impacting the segment's operating performance for the fourth
quarter.
Upholstery Fabrics Segment
--
Sales for this segment were $21.7 million for the fourth quarter, down
8.9 percent compared with sales of $23.8 million in the prior-year
period. The year-over-year decline was driven primarily by continued
softness in the home furnishings market and lower comparable sales to a
large residential fabric customer that uniquely concentrated more of its
annual purchasing in the first half of fiscal 2025 and strategically
managed inventory levels in the back half of the year. The market
uncertainty from the recent tariff-related actions and the timing of the
Chinese New Year holiday (which predominantly affected only the fourth
quarter rather than multiple periods) also contributed to lower sales.
However, demand with hospitality/contract customers remained relatively
solid during the quarter, with sales in that market accounting for
approximately 42.0 percent of the segment's total sales.
--
Operating income was $1.1 million for the fourth quarter, compared with
operating income of $975 thousand in the prior-year period. Operating
performance continued to be pressured by lower sales, but that pressure
was partially offset by lower inventory markdowns, a more favorable mix
of higher-margin hospitality/contract sales, and lower SG&A expenses.
--
For the full year, sales were $99.3 million, down 8.8 percent compared
with sales of $109.0 million for fiscal 2024, with the decrease primarily
reflecting the ongoing demand deterioration in the home furnishings
industry due to what remains a challenging macro-economic environment.
--
For the full year, operating income was $4.1 million, compared to
operating income of $5.8 million for fiscal 2024, with the decline driven
primarily by lower sales partially offset by lower inventory markdowns
and lower SG&A expenses.
Balance Sheet, Cash Flow, and Liquidity
--
As of April 27, 2025, the Company maintained $5.6 million in total cash
and $12.7 million in outstanding debt under its credit facilities, of
which $2.8 million constituted supplier financing. The outstanding debt
was primarily incurred for restructuring activities and to fund worldwide
working capital.
--
As of April 27, 2025, the Company maintained approximately $27.0
million in liquidity consisting of $5.6 million in cash and $21.4 million
in borrowing availability under its domestic credit facility. On June 12,
2025, the Company extended the term of its domestic credit facility with
Wells Fargo Bank for an additional three years and amended it in certain
other respects. Subject to borrowing base limitations, this credit
facility allows the Company to borrow up to $30 million and contains an
accordion feature that could increase that amount by an additional $10
million based on mutual agreement.
--
Cash flow from operations and free cash flow were negative $(17.7)
million and negative $(17.1) million, respectively, for fiscal 2025 (see
reconciliation table on page 13), with both primarily affected by
operating losses, including $5.6 million in non-recurring cash
restructuring charges, and, with respect to free cash flow, planned
strategic investments in capital expenditures mostly related to the
mattress fabrics segment as we focused on restructuring that business.
--
Capital expenditures for fiscal 2025 were $2.9 million, down from $3.7
million for fiscal 2024 due to an effort to strategically manage capital
and focus on projects targeting operating efficiency and future growth.
Financial Outlook
--
Due to macro-economic uncertainty and the fluid tariff environment, the
Company is not providing specific financial guidance, but only limited
annual guidance at this time.
--
The Company anticipates year-over-year sales growth in its mattress
fabrics business and for the sales pressure on the residential side of
its upholstery business to continue.
--
The cost and efficiency benefits of the recently completed
restructuring plan are expected to continue to drive meaningful operating
improvement as the year progresses, particularly as the Company moves
beyond the tariff-related sales and margin pressure impacting the first
quarter. In addition, the fiscal 2026 division integration initiative and
related facility consolidation activity, along with tariff-related price
increases, should further bolster operating performance, particularly as
the Company progresses beyond the first quarter.
--
While the Company intends to continue utilizing borrowings as necessary
under its domestic and foreign credit facilities during fiscal 2026 in
connection with funding working capital needs and growth, integration and
efficiency initiatives, it will continue to aggressively manage liquidity
and capital expenditures and prioritize free cash flow.
--
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 industry trends, the projected
impact of restructuring and integration initiatives, and ongoing tariff
and market headwinds. The Company's expectations also assume no further
meaningful impacts from tariffs and trade negotiations.
Conference Call
Culp, Inc. will hold a conference call to discuss financial results for the fourth quarter and full fiscal year 2025 on Thursday, June 26, 2025, at 9:00 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.
About the Company
Culp, Inc. is one of the largest marketers of mattress fabrics for bedding and upholstery fabrics for residential and commercial furniture in North America. 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, 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. 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," "will," "may," "should," "could," "potential," "continue," "target," "predict", "seek," "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, restructuring and integration actions, production levels, new product launches, sales, profit margins, profitability, operating (loss) income, capital expenditures, working capital levels, cost savings (including, without limitation, anticipated cost savings from restructuring and integration actions), income taxes, SG&A or other expenses, pre-tax (loss) 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, ending cash balances and cash positions, borrowing capacity, investments, potential acquisitions, cash and non-cash restructuring and restructuring-related charges, expenses, and/or credits, net proceeds from restructuring related asset dispositions, 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, demand for home furnishings products, 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 currency in China can have a negative impact on our sales of products produced there. In addition, because our foreign operations use the U.S. dollar as their functional currency, changes in the exchange rate between the local currency of those operations and the U.S dollar can affect our reported profits from those foreign operations. 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 coronavirus pandemic, 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. Also, our success in diversifying our supply chain with reliable partners to effectively service our global platform could affect our operations and adversely affect our financial results. Finally, the future performance of our business also depends on our ability to successfully restructure our mattress fabric operations and return the segment to profitability as well as successfully integrate our mattress fabrics and upholstery fabrics segments and realize the expected benefits of that integration effort, which may not meet our expectations. 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.
Many of these factors are macroeconomic in nature and are, therefore, beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results, performance or achievements may vary materially from those described in this release as anticipated, believed, estimated, expected, intended, planned or projected. The forward-looking statements included in this release are made only as of the date of this report. Unless required by United States federal securities laws, we neither intend nor assume any obligation to update these forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations. 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 or financial results.
CULP, INC.
CONSOLIDATED STATEMENTS OF NET LOSS
FOR THE THREE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024
Unaudited
(Amounts in Thousands, Except for Per Share Data)
THREE MONTHS ENDED
----------------------------------------------------
Amount Percent of Sales
------------------- -----------------
(1) (1)
April April April April
27, 28, % Over 27, 28,
2025 2024 (Under) 2025 2024
-------- -------- ------- ----- ------
Net sales $ 48,773 $ 49,528 (1.5)% 100.0% 100.0%
Cost of sales (1) (41,120) (44,327) (7.2)% 84.3% 89.5%
------- ------- ------- ----- ------
Gross profit 7,653 5,201 47.1% 15.7% 10.5%
Selling, general and
administrative
expenses (8,470) (9,245) (8.4)% 17.4% 18.7%
Restructuring expense
(2) (1,422) (204) N.M 2.9% 0.4%
------- ------- ------- ----- ------
Loss from operations (2,239) (4,248) (47.3)% (4.6)% (8.6)%
Interest expense (110) (11) N.M. 0.2% 0.0%
Interest income 154 263 (41.4)% 0.3% 0.5%
Other expense (121) (64) 89.1% (0.2)% (0.1)%
------- ------- ------- ----- ------
Loss before income
taxes (2,316) (4,060) (43.0)% (4.7)% (8.2)%
Income tax benefit
(expense) (3) 243 (805) (130.2)% 10.5% (19.8)%
------- ------- ------- ----- ------
Net loss $ (2,073) $ (4,865) (57.4)% (4.3)% (9.8)%
======= ======= ======= ===== ======
Net loss per share -
basic $ (0.17) $ (0.39) (56.4)%
Net loss per share -
diluted $ (0.17) $ (0.39) (56.4)%
Average shares
outstanding-basic 12,559 12,470 0.7%
Average shares
outstanding-diluted 12,559 12,470 0.7%
Notes
------------------------------------------------------------------------------
(1) See page 15 for a Reconciliation of Selected Income Statement
Information to Adjusted Results for the three months ending April 27,
2025, and April 28, 2024.
(2) See page 17 for a Summary of Restructuring Expense for the three months
ending April 27, 2025, and April 28, 2024.
(3) Percent of sales column for income tax benefit (expense) is calculated
as a percent of loss before income taxes.
CULP, INC.
CONSOLIDATED STATEMENTS OF NET LOSS
FOR THE TWELVE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024
Unaudited
(Amounts in Thousands, Except for Per Share Data)
TWELVE MONTHS ENDED
------------------------------------------------------
Amount Percent of Sales
--------------------- -----------------
(1) (1)
April April
April 27, April 28, % Over 27, 28,
2025 2024 (Under) 2025 2024
--------- --------- ------- ----- ------
Net sales $ 213,237 $ 225,333 (5.4)% 100.0% 100.0%
Cost of sales (1) (188,170) (197,394) (4.7)% 88.2% 87.6%
-------- -------- ------- ----- ------
Gross profit 25,067 27,939 (10.3)% 11.8% 12.4%
Selling, general and
administrative
expenses (35,705) (38,611) (7.5)% 16.7% 17.1%
Restructuring expense
(2) (7,739) (636) N.M. 3.6% 0.3%
-------- -------- ------- ----- ------
Loss from operations (18,377) (11,308) 62.5% (8.6)% (5.0)%
Interest expense (231) (11) N.M. 0.1% 0.0%
Interest income 915 1,174 (22.1)% 0.4% 0.5%
Other expense (1,018) (625) 62.9% 0.5% 0.3%
-------- -------- ------- ----- ------
Loss before income
taxes (18,711) (10,770) 73.7% (8.8)% (4.8)%
Income tax expense
(3) (392) (3,049) (87.1)% (2.1)% (28.3)%
-------- -------- ------- ----- ------
Net loss $ (19,103) $ (13,819) 38.2% (9.0)% (6.1)%
======== ======== ======= ===== ======
Net loss per share -
basic $ (1.53) $ (1.11) 37.8%
Net loss per share -
diluted $ (1.53) $ (1.11) 37.8%
Average shares
outstanding-basic 12,525 12,432 0.7%
Average shares
outstanding-diluted 12,525 12,432 0.7%
Notes
------------------------------------------------------------------------------
(1) See page 16 for a Reconciliation of Selected Income Statement
Information to Adjusted Results for the twelve months ending April 27,
2025, and April 28, 2024.
(2) See page 18 for a Summary of Restructuring Expense for the twelve
months ending April 27, 2025, and April 28, 2024.
(3) Percent of sales column for income tax expense is calculated as a
percent of loss before income taxes.
CONSOLIDATED BALANCE SHEETS
APRIL 27, 2025, AND APRIL 28, 2024
Unaudited
(Amounts in Thousands)
Amounts
----------------------------
(Condensed) (Condensed)
Increase
April 27, April 28, (Decrease)
------------------
2025 2024* Dollars Percent
------------- ------------- ------- --------
Current assets
Cash and cash
equivalents $ 5,629 $ 10,012 (4,383) (43.8)%
Short-term
investments -
rabbi trust 1,325 903 422 46.7%
Accounts
receivable, net 21,844 21,138 706 3.3%
Inventories 49,309 44,843 4,466 10.0%
Short-term notes
receivable 280 264 16 6.1%
Current income
taxes
receivable -- 350 (350) (100.0)%
Assets held for
sale 2,177 -- 2,177 100.0%
Other current
assets 2,970 3,371 (401) (11.9)%
--------- --------- ------- --------
Total current
assets 83,534 80,881 2,653 3.3%
Property, plant &
equipment, net 24,836 33,182 (8,346) (25.2)%
Right of use assets 5,908 6,203 (295) (4.8)%
Intangible assets 960 1,876 (916) (48.8)%
Long-term
investments - rabbi
trust 5,722 7,102 (1,380) (19.4)%
Long-term notes
receivable 1,182 1,462 (280) (19.2)%
Deferred income
taxes 637 518 119 23.0%
Other assets 591 830 (239) (28.8)%
--------- --------- ------- --------
Total assets $ 123,370 $ 132,054 (8,684) (6.6)%
========= ========= ======= ========
Current liabilities
Lines of credit -
current 8,114 -- 8,114 100.0%
Accounts payable
- trade 27,323 25,607 1,716 6.7%
Accounts payable
- capital
expenditures 23 343 (320) (93.3)%
Operating lease
liability -
current 2,394 2,061 333 16.2%
Deferred
compensation -
current 1,325 903 422 46.7%
Deferred revenue 422 1,495 (1,073) (71.8)%
Accrued expenses 5,333 6,726 (1,393) (20.7)%
Accrued
restructuring 610 -- 610 100.0%
Income taxes
payable -
current 1,420 972 448 46.1%
--------- --------- ------- --------
Total current
liabilities 46,964 38,107 8,857 23.2%
Lines of credit -
long-term 4,600 -- 4,600 100.0%
Operating lease
liability -
long-term 2,535 2,422 113 4.7%
Income taxes payable
- long-term 790 2,088 (1,298) (62.2)%
Deferred income
taxes 5,155 6,379 (1,224) (19.2)%
Deferred
compensation -
long-term 5,686 6,929 (1,243) (17.9)%
--------- --------- ------- --------
Total
liabilities 65,730 55,925 9,805 17.5%
Shareholders' equity 57,640 76,129 (18,489) (24.3)%
--------- --------- ------- --------
Total
liabilities
and
shareholders'
equity $ 123,370 $ 132,054 (8,684) (6.6)%
========= ========= ======= ========
Shares outstanding 12,559 12,470 89 0.7%
========= ========= ======= ========
* Derived from audited financial statements.
CULP, INC.
SUMMARY OF CASH AND DEBT
APRIL 27, 2025, AND APRIL 28, 2024
Unaudited
(Amounts in Thousands)
Amounts
-------------------------
April 27, April 28,
2025 2024*
----------- -----------
Cash:
Cash and cash equivalents $ 5,629 $ 10,012
Less Debt:
Lines of credit - current 8,114 --
Lines of credit - long-term 4,600 --
------- -------
Net (debt) cash position $ (7,085) $ 10,012
======= =======
* Derived from audited financial statements.
CULP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024
Unaudited
(Amounts in Thousands)
TWELVE MONTHS ENDED
Amounts
--------------------------
April 27, April 28,
2025 2024*
------------ -----------
Cash flows from operating activities:
Net loss $ (19,103) $ (13,819)
Adjustments to reconcile net loss to
net cash used in operating
activities:
Depreciation 5,440 6,521
Non-cash inventory credit (2,423) (1,628)
Amortization 405 390
Stock-based compensation 650 915
Deferred income taxes (1,343) 387
Gain on sale of equipment (27) (299)
Non-cash restructuring expense 2,708 330
Foreign currency exchange gain (145) (593)
Changes in assets and liabilities:
Accounts receivable (722) 3,559
Inventories (2,059) 1,593
Other current assets 384 (329)
Other assets 114 (115)
Accounts payable - trade 1,852 (2,926)
Deferred revenue (1,073) 303
Accrued restructuring 633 --
Accrued expenses and deferred
compensation (2,456) (1,870)
Income taxes (485) (643)
--- ------- -------
Net cash used in operating
activities (17,650) (8,224)
--- ------- -------
Cash flows from investing activities:
Capital expenditures (2,947) (3,711)
Proceeds from the sale of property,
plant and equipment 1,945 385
Proceeds from note receivable 610 330
Proceeds from the sale of investments
(rabbi trust) 1,725 1,449
Purchase of investments (rabbi trust) (735) (884)
--- ------- -------
Net cash provided by (used in)
investing activities 598 (2,431)
--- ------- -------
Cash flows from financing activities:
Proceeds from lines of credit 21,648 4,166
Payments on lines of credit (8,907) (4,146)
Common stock surrendered for
withholding taxes payable (68) (146)
--- ------- -------
Net cash provided by (used in)
financing activities 12,673 (126)
--- ------- -------
Effect of foreign currency exchange rate
changes on cash and cash equivalents (4) (171)
Decrease in cash and cash equivalents (4,383) (10,952)
Cash and cash equivalents at beginning of
year 10,012 20,964
--- ------- -------
Cash and cash equivalents at end of year $ 5,629 $ 10,012
=== ======= =======
Free Cash Flow (1) $ (17,056) $ (10,826)
=== ======= =======
(1) See next page for Reconciliation of Free Cash Flow for the twelve
months ending April 27, 2025, and April 28, 2024.
CULP, INC.
RECONCILIATION OF FREE CASH FLOW
FOR THE TWELVE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024
Unaudited
(Amounts in Thousands)
TWELVE MONTHS ENDED
Amounts
--------------------------
April 27, April 28,
2025 2024
------------ -----------
A) Net cash used in operating activities $ (17,650) $ (8,224)
B) Minus: Capital expenditures (2,947) (3,711)
C) Plus: Proceeds from the sale of
buildings and equipment 1,945 385
D) Plus: Proceeds from note receivable 610 330
E) Plus: Proceeds from the sale of
investments (rabbi trust) 1,725 1,449
F) Minus: Purchase of investments (rabbi
trust) (735) (884)
G) Effects of foreign currency exchange
rate changes on cash and cash
equivalents (4) (171)
--- ------- -------
Free Cash Flow $ (17,056) $ (10,826)
=== ======= =======
CULP, INC.
STATEMENTS OF OPERATIONS BY SEGMENT
FOR THE THREE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024
Unaudited
(Amounts in Thousands)
THREE MONTHS ENDED
---------------------------------------------------
Percent of Total
Amounts Sales
------------------ -----------------
April April April April
27, 28, % Over 27, 28,
Net Sales by
Segment 2025 2024 (Under) 2025 2024
----------------- ------- -------- ------- ----- ------
Mattress Fabrics $27,114 $ 25,750 5.3% 55.6% 52.0%
Upholstery Fabrics 21,659 23,778 (8.9)% 44.4% 48.0%
------ ------- ------- ----- ------
Net Sales $48,773 $ 49,528 (1.5)% 100.0% 100.0%
====== ======= ======= ===== ======
Gross Profit by
Segment Gross Margin
----------------- -----------------
Mattress Fabrics $ 3,075 $ 292 N.M. 11.3% 1.1%
Upholstery Fabrics 4,691 4,909 (4.4)% 21.7% 20.6%
------ ------- ------- ----- ------
Total Segment
Gross Profit 7,766 5,201 49.3% 15.9% 10.5%
Restructuring
Related Charge
(1) (113) -- 100.0% (0.2)% --
------ ------- ------- ----- ------
Gross Profit $ 7,653 $ 5,201 47.1% 15.7% 10.5%
====== ======= ======= ===== ======
Selling, General
and
Administrative
Expenses by
Segment Percent of Sales
----------------- -----------------
Mattress Fabrics $ 3,292 $ 3,221 2.2% 12.1% 12.5%
Upholstery Fabrics 3,638 3,934 (7.5)% 16.8% 16.5%
Unallocated
Corporate
Expenses 1,540 2,090 (26.3)% 3.2% 4.2%
------ ------- ------- ----- ------
Selling, General
and
Administrative
Expenses $ 8,470 $ 9,245 (8.4)% 17.4% 18.7%
====== ======= ======= ===== ======
(Loss) Income
from Operations
by Segment Operating Margin
----------------- -----------------
Mattress Fabrics $ (217) $ (2,929) (92.6)% (0.8)% (11.4)%
Upholstery Fabrics $ 1,053 $ 975 8.0% 4.9% 4.1%
Unallocated
Corporate
Expenses $(1,540) $ (2,090) (26.3)% (3.2)% (4.2)%
------ ------- ------- ----- ------
Total
Segment
Loss from
Operations (704) (4,044) (82.6)% (1.4)% (8.2)%
Restructuring
Related Charge
(1) (113) -- 100.0% (0.2)% --
Restructuring
Expense (2) (1,422) (204) N.M. (2.9)% (0.4)%
------ ------- ------- ----- ------
Loss from
Operations $(2,239) $ (4,248) (47.3)% (4.6)% (8.6)%
====== ======= ======= ===== ======
Depreciation
Expense by
Segment
-----------------
Mattress Fabrics $ 1,015 $ 1,461 (30.5)%
Upholstery Fabrics 137 162 (15.4)%
------ ------- -------
Depreciation
Expense $ 1,152 $ 1,623 (29.0)%
====== ======= =======
Notes
------------------------------------------------------------------------------
(1) See page 15 for a Reconciliation of Selected Income Statement
Information to Adjusted Results for the three months ending April 27,
2025, and April 28, 2024.
(2) See page 17 for a Summary of Restructuring Expense for the three months
ending April 27, 2025, and April 28, 2024.
CULP, INC.
STATEMENTS OF OPERATIONS BY SEGMENT
FOR THE TWELVE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024
Unaudited
(Amounts in Thousands)
TWELVE MONTHS ENDED
----------------------------------------------------------
Percent of Total
Amounts Sales
---------------------- -----------------
April April April April
27, 28, % Over 27, 28,
Net Sales by
Segment 2025 2024 (Under) 2025 2024
---------------- -------- -------- ------- ----- ------
Mattress Fabrics $113,906 $116,370 (2.1)% 53.4% 51.6%
Upholstery
Fabrics 99,331 108,963 (8.8)% 46.6% 48.4%
------- ------- ------- ----- ------
Net Sales $213,237 $225,333 (5.4)% 100.0% 100.0%
======= ======= ======= ===== ======
Gross Profit by
Segment Gross Margin
---------------- -----------------
Mattress Fabrics $ 7,936 $ 6,289 26.2% 7.0% 5.4%
Upholstery
Fabrics 18,752 21,690 (13.5)% 18.9% 19.9%
------- ------- ------- ----- ------
Total Segment
Gross Profit 26,688 27,979 (4.6)% 12.5% 12.4%
Restructuring
Related Charge
(1) (1,621) (40) N.M. (0.8)% (0.0)%
------- ------- ------- ----- ------
Gross Profit $ 25,067 $ 27,939 (10.3)% 11.8% 12.4%
======= ======= ======= ===== ======
Selling, General
and
Administrative
Expenses by
Segment Percent of Sales
---------------- -----------------
Mattress Fabrics $ 13,171 $ 13,134 0.3% 11.6% 11.3%
Upholstery
Fabrics 14,695 15,903 (7.6)% 14.8% 14.6%
Unallocated
Corporate
Expenses 7,839 9,574 (18.1)% 3.7% 4.2%
------- ------- ------- ----- ------
Selling, General
and
Administrative
Expenses $ 35,705 $ 38,611 (7.5)% 16.7% 17.1%
======= ======= ======= ===== ======
(Loss) Income
from Operations
by Segment Operating Margin
---------------- -----------------
Mattress Fabrics $ (5,235) $ (6,845) (23.5)% (4.6)% (5.9)%
Upholstery
Fabrics $ 4,057 5,787 (29.9)% 4.1% 5.3%
Unallocated
Corporate
Expenses $ (7,839) (9,574) (18.1)% (3.7)% (4.2)%
------- ------- ------- ----- ------
Total
Segment
Loss from
Operations (9,017) (10,632) (15.2)% (4.2)% (4.7)%
Restructuring
Related Charge
(1) (1,621) (40) N.M. (0.8)% (0.0)%
Restructuring
Expense (2) (7,739) (636) N.M. (3.6)% (0.3)%
------- ------- ------- ----- ------
Loss from
Operations $(18,377) $(11,308) 62.5% (8.6)% (5.0)%
======= ======= ======= ===== ======
Return on
Capital Employed
(ttm) (3)
----------------
Mattress Fabrics (9.5)% (10.8)% (12.0)%
Upholstery
Fabrics 40.5% 62.5% (35.2)%
Unallocated
Corporate N.M. N.M. N.M.
-------- -------- -------
Consolidated (13.0)% (13.9)% (6.5)%
======= ======= =======
Capital Employed
(3)
----------------
Mattress Fabrics $ 52,331 $ 62,257 (15.9)%
Upholstery
Fabrics 16,751 7,259 130.8%
Unallocated
Corporate 2,945 4,999 (41.1)%
------- ------- -------
Consolidated $ 72,027 $ 74,515 (3.3)%
======= ======= =======
Depreciation
Expense by
Segment
----------------
Mattress Fabrics
(4) $ 6,178 $ 5,883 5.0%
Upholstery
Fabrics 601 638 (5.8)%
------- ------- -------
Depreciation
Expense $ 6,779 $ 6,521 4.0%
======= ======= =======
Notes
------------------------------------------------------------------------------
(1) See page 16 for a Reconciliation of Selected Income Statement
Information to Adjusted Results for the twelve months ending April 27,
2025, and April 28, 2024.
(2) See page 18 for a Summary of Restructuring Expense for the twelve
months ending April 27, 2025, and April 28, 2024.
(3) See pages 20 through 23 for calculation of Return on Capital Employed
by Segment for the trailing twelve months ending April 27, 2025, and
April 28, 2024, and a reconciliation to information from our U.S. GAAP
financial statements. The capital employed balances are as of April 27,
2025, and April 28, 2024.
(4) During the twelve-month period ending April 27, 2025, depreciation
expense for the mattress fabrics segment included additional
depreciation expense related to the shortening of useful lives of
equipment associated with the closure of operations at our
manufacturing facility located in Quebec, Canada. The amount of
additional depreciation expense totaling $1.3 million was classified as
restructuring expense in our fiscal 2025 Consolidated Statements of Net
Loss.
CULP, INC.
RECONCILIATION OF SELECTED INCOME STATEMENT INFORMATION TO
ADJUSTED RESULTS
FOR THE THREE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024
Unaudited
(Amounts in Thousands)
As Reported Adjusted Results
April 27, April 27,
2025 Adjustments 2025
------------- ----------- ----------------
Net sales $ 48,773 -- $ 48,773
Cost of sales
(1) (41,120) 113 (41,007)
--- -------- ----------- ------------
Gross profit 7,653 113 7,766
Selling, general
and
administrative
expenses (8,470) -- (8,470)
Restructuring
expense (2) (1,422) 1,422 --
--- -------- ----------- ------------
Loss from
operations $ (2,239) 1,535 $ (704)
=== ======== =========== ============
Notes
------------------------------------------------------------------------------
(1) During the three months ending April 27, 2025, cost of sales included a
restructuring related charge of $113,000 for losses on the disposal of
inventory related to the closure of operations at the company's
manufacturing facility located in Quebec, Canada.
(2) See page 17 for a Summary of Restructuring Expense for the three months
ending April 27, 2025.
As Reported Adjusted Results
April 28, April 28,
2024 Adjustments 2024
------------- ----------- ----------------
Net sales $ 49,528 -- $ 49,528
Cost of sales (44,327) -- (44,327)
--------- ----------- ------------
Gross profit 5,201 -- 5,201
Selling, general
and
administrative
expenses (9,245) -- (9,245)
Restructuring
expense (1) (204) 204 --
--------- ----------- ------------
Loss from
operations $ (4,248) 204 $ (4,044)
========= =========== ============
Notes
------------------------------------------------------------------------------
(1) See page 17 for a Summary of Restructuring Expense for the three months
ending April 28, 2024.
CULP, INC.
RECONCILIATION OF SELECTED INCOME STATEMENT INFORMATION TO
ADJUSTED RESULTS
FOR THE TWELVE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024
Unaudited
(Amounts in Thousands)
As Reported Adjusted Results
April 27, April 27,
2025 Adjustments 2025
------------- ----------- ----------------
Net sales $ 213,237 -- $ 213,237
Cost of sales
(1) (188,170) 1,621 (186,549)
--------- ----------- ------------
Gross profit 25,067 1,621 26,688
Selling, general
and
administrative
expenses (35,705) -- (35,705)
Restructuring
expense (2) (7,739) 7,739 --
--------- ----------- ------------
Loss from
operations $ (18,377) 9,360 $ (9,017)
========= =========== ============
Notes
------------------------------------------------------------------------------
(1) During the twelve months ending April 27, 2025, cost of sales included
a restructuring related charge of $1.6 million for losses on the
disposal, valuation, and markdowns of inventory related to the closure
of the company's manufacturing facility located in Quebec, Canada.
(2) See page 18 for a Summary of Restructuring Expense for the twelve
months ending April 27, 2025.
As Reported Adjusted Results
April 28, April 28,
2024 Adjustments 2024
------------- ----------- ----------------
Net sales $ 225,333 -- $ 225,333
Cost of sales
(1) (197,394) 40 (197,354)
--------- ----------- ------------
Gross profit 27,939 40 27,979
Selling, general
and
administrative
expenses (38,611) -- (38,611)
Restructuring
expense (2) (636) 636 --
--------- ----------- ------------
Loss from
operations $ (11,308) 676 $ (10,632)
========= =========== ============
Notes
------------------------------------------------------------------------------
(1) During the twelve months ending April 27, 2024, cost of sales included
a restructuring related charge of $40,000 for markdowns of inventory
related to the discontinuance of production of cut and sewn upholstery
kits at the company's facility in Ouanaminthe, Haiti.
(2) See page 18 for a Summary of Restructuring Expense for the twelve
months ending April 28, 2024.
CULP, INC.
SUMMARY OF RESTRUCTURING EXPENSE
FOR THE THREE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024
Unaudited
(Amounts in Thousands)
The following summarizes restructuring expense for three-month
period ending April 27, 2025:
Upholstery Mattress Unallocated
Description Fabrics Fabrics Corporate Total
-------------- ------------ ---------- ------------- ------
Employee
termination
benefits $ 112 $ 12 $ -- $ 124
Impairment
charge related
to intangible
asset -- -- 540 540
Loss on the
sale and
disposal of
equipment 24 2 -- 26
Facility
consolidation
and relocation
expenses -- 322 -- 322
Cost incurred
to ready a
closed
facility for
sale -- 360 -- 360
Other
associated
costs -- 50 -- 50
--- ------- --- ----- --- -------- -----
Total
restructuring
expense (1) $ 136 $ 746 $ 540 $1,422
=== ======= === ===== === ======== =====
(1) During the three months ending April 27, 2025, restructuring expense of
$1.4 million represents costs associated with (i) the closure of the
company's mattress fabrics manufacturing facility located in Quebec,
Canada; (ii) initial costs related to consolidating production and
distribution activities from the company's upholstery fabrics
distribution center located in Burlington, N.C. to the company's
mattress fabrics manufacturing and distribution center located in
Stokesdale, N.C.; and (iii) other expenses incurred as part of the
company's strategic plan to transform its operating model as announced
on April 24, 2025.
The following summarizes restructuring expense for three-month period ending
April 28, 2024:
Upholstery
Description Fabrics
----------------------------------------------------------- ------------
Employee termination benefits 204
---- ------
Total restructuring expense (1) $ 204
==== ======
(1) During the three months ending April 28, 2024, restructuring expense of
$204,000 represents employee termination benefits associated with the
rationalization of the upholstery fabrics finishing operation located
in Shanghai, China.
CULP, INC.
SUMMARY OF RESTRUCTURING EXPENSE
FOR THE TWELVE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024
Unaudited
(Amounts in Thousands)
The following summarizes restructuring expense for twelve-month
period ending April 27, 2025:
Upholstery Mattress Unallocated
Description Fabrics Fabrics Corporate Total
-------------- ------------ ---------- ------------- ------
Employee
termination
benefits $ 214 $ 1,338 $ -- $1,552
Impairment
charge related
to intangible
asset $ -- $ -- $ 540 $ 540
Accelerated
depreciation -- 1,339 -- 1,339
Impairment
charges
related to
fixed assets -- 131 -- 131
Loss (gain) on
the sale of
equipment 24 (171) -- (147)
Lease
termination
costs -- 849 -- 849
Facility
consolidation
and relocation
expenses 53 2,384 -- 2,437
Cost incurred
to ready a
closed
facility for
sale -- 788 -- 788
Other
associated
costs 14 236 -- 250
-------- ------ --------- -----
Total
restructuring
expense (1) $ 305 $ 6,894 $ 540 $7,739
======== ====== ========= =====
(1) During the twelve months ending April 27, 2025, restructuring expense
of $7.7 million represents costs associated with (i) consolidating the
company's North American mattress fabrics operations, including the
closure of the company's mattress fabrics manufacturing facility
located in Quebec, Canada; (ii) consolidating two leased facilities
related to the sewn mattress cover operation located in Ouanaminthe,
Haiti, into one facility and reducing other operating expenses at this
location; (iii) initial costs related to consolidating production and
distribution activities from the upholstery fabrics distribution center
located in Burlington, N.C. to the mattress fabrics manufacturing and
distribution center located in Stokesdale, N.C.; and (v) other expenses
incurred as part of the company's strategic plan to transform its
operating model as announced on April 24, 2025.
The following summarizes restructuring expense for twelve-month period
ending April 28, 2024:
Upholstery
Description Fabrics
----------------------------------------------------------- ------------
Employee termination benefits $ 307
Impairment charges related to equipment 329
--- -------
Total restructuring expense (1) $ 636
=== =======
(1) During the twelve months ending April 28, 2024, restructuring expense
of $636,000 represents impairment charges related to equipment of
$329,000 and employee termination benefits of $103,000 related to the
discontinuance of production of cut and sewn upholstery kits at the
company's facility located in Ouanaminthe, Haiti and employee
termination benefits of $204,000 related to the rationalization of the
upholstery fabrics finishing operation located in Shanghai, China.
CULP, INC.
CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA
FOR THE TWELVE MONTHS ENDED APRIL 27, 2025, AND APRIL 28, 2024
Unaudited
(Amounts in Thousands)
Trailing
Quarter Quarter Quarter Quarter 12
Ended Ended Ended Ended Months
July October January April
28, 27, 26, 27, April 27,
2024 2024 2025 2025 2025
------- -------- -------- -------- ---------
Net loss $(7,260) $ (5,644) $ (4,126) $ (2,073) $ (19,103)
Income tax
expense
(benefit) 239 (50) 446 (243) 392
Interest income,
net (234) (214) (192) (44) (684)
Depreciation
expense 1,581 1,496 1,211 1,152 5,440
Restructuring
expense 2,631 2,031 1,655 1,422 7,739
Restructuring
related charge 115 769 624 113 1,621
Amortization
expense 99 101 101 104 405
Stock based
compensation 176 188 158 128 650
------ ------- ------- ------- --------
Adjusted
EBITDA $(2,653) $ (1,323) $ (123) $ 559 $ (3,540)
====== ======= ======= ======= ========
% Net Sales (4.7)% (2.4)% (0.2)% 1.1% (1.7)%
====== ======= ======= ======= ========
Trailing
Quarter Quarter Quarter Quarter 12
Ended Ended Ended Ended Months
July October January April
30, 29, 28, 28, April 28,
2023 2023 2024 2024 2024
------- -------- -------- -------- ---------
Net loss $(3,342) $ (2,424) $ (3,188) $ (4,865) $ (13,819)
Income tax
expense 701 516 1,027 805 3,049
Interest income,
net (345) (282) (284) (252) (1,163)
Depreciation
expense 1,635 1,617 1,646 1,623 6,521
Restructuring
expense
(credit) 338 144 (50) 204 636
Restructuring
related charge
(credit) 179 (78) (61) -- 40
Amortization
expense 96 97 98 99 390
Stock based
compensation 322 163 262 168 915
------ ------- ------- ------- --------
Adjusted
EBITDA $ (416) $ (247) $ (550) $ (2,218) $ (3,431)
====== ======= ======= ======= ========
% Net Sales (0.7)% (0.4)% (0.9)% (4.5)% (1.5)%
====== ======= ======= ======= ========
% Over (Under) 537.7% 435.6% (77.6)% (125.2)% 3.2%
====== ======= ======= ======= ========
CULP, INC.
RETURN ON CAPITAL EMPLOYED BY SEGMENT
FOR THE TWELVE MONTHS ENDED APRIL 27, 2025
Unaudited
(Amounts in Thousands)
Adjusted
Operating
(Loss)
Income
Twelve
Months Average Return on
Ended Capital Avg. Capital
April 27,
2025 Employed (1) Employed (2)
---------- ------------ -------------
Mattress
Fabrics $ (5,235) $ 55,170 (9.5)%
Upholstery
Fabrics 4,057 10,027 40.5%
Unallocated
Corporate (7,839) 4,427 N.M.
--------- -------- -------------
Consolidated $ (9,017) $ 69,624 (13.0)%
========= ======== =========
Average
Capital
Employed As of the Three Months Ended April 27, 2025 As of the Three Months Ended January 26, 2025 As of the Three Months Ended October 27, 2024
------------------------------------------------------- ------------------------------------------------- -------------------------------------------------
Mattress Upholstery Unallocated Mattress Upholstery Unallocated Mattress Upholstery Unallocated
Fabrics Fabrics Corporate Total Fabrics Fabrics Corporate Total Fabrics Fabrics Corporate Total
---------- ------------ ------------- -------- --------- ---------- ------------- -------- --------- ---------- ------------- --------
Total assets
(3) $ 70,825 $ 32,082 $ 20,463 $123,370 $ 70,877 $ 33,697 $ 22,981 $127,555 $ 69,261 $ 31,385 $ 28,341 $128,987
Total
liabilities (18,494) (15,331) (31,905) (65,730) (20,337) (21,081) (26,487) (67,905) (14,948) (24,783) (25,633) (65,364)
--------- -------- --------- ------- -------- --------- --------- ------- -------- --------- --------- -------
Subtotal $ 52,331 $ 16,751 $ (11,442) $ 57,640 $ 50,540 $ 12,616 $ (3,506) $ 59,650 $ 54,313 $ 6,602 $ 2,708 $ 63,623
Cash and cash
equivalents -- -- (5,629) (5,629) -- -- (5,279) (5,279) -- -- (10,531) (10,531)
Short-term
investments -
Rabbi Trust -- -- (1,325) (1,325) -- -- (1,753) (1,753) -- -- (919) (919)
Current income
taxes
receivable -- -- -- -- -- -- (1,137) (1,137) -- -- (979) (979)
Long-term
investments -
Rabbi Trust -- -- (5,722) (5,722) -- -- (6,250) (6,250) -- -- (7,105) (7,105)
Deferred
income taxes
-
non-current -- -- (637) (637) -- -- (490) (490) -- -- (559) (559)
Lines of
credit -
current -- -- 8,114 8,114 -- -- 5,384 5,384 -- -- 4,074 4,074
Deferred
compensation
- current -- -- 1,325 1,325 -- -- 1,753 1,753 -- -- 919 919
Accrued
restructuring 610 610 723 723 863 863
Income taxes
payable -
current -- -- 1,420 1,420 -- -- 828 828 -- -- 1,165 1,165
Lines of
credit -
long-term 4,600 4,600
Income taxes
payable -
long-term -- -- 790 790 -- -- 1,400 1,400 -- -- 1,378 1,378
Deferred
income taxes
-
non-current -- -- 5,155 5,155 -- -- 6,582 6,582 -- -- 6,624 6,624
Deferred
compensation
- long-term -- -- 5,686 5,686 -- -- 6,151 6,151 -- -- 6,975 6,975
--------- -------- --------- ------- -------- --------- --------- ------- -------- --------- --------- -------
Total Capital
Employed $ 52,331 $ 16,751 $ 2,945 $ 72,027 $ 50,540 $ 12,616 $ 4,406 $ 67,562 $ 54,313 $ 6,602 $ 4,613 $ 65,528
========= ======== ========= ======= ======== ========= ========= ======= ======== ========= ========= =======
CULP, INC.
RETURN ON CAPITAL EMPLOYED BY SEGMENT - CONTINUED
FOR THE TWELVE MONTHS ENDED APRIL 27, 2025
Unaudited
(Amounts in Thousands)
As of the Three Months Ended July 28, 2024 As of the Three Months Ended April 28, 2024
--------------------------------------------------------- ---------------------------------------------------
Mattress Upholstery Unallocated Mattress Upholstery Unallocated
Fabrics Fabrics Corporate Total Fabrics Fabrics Corporate Total
--------- ------------ ------------- -------------- --------- ------------ ------------- --------
Total assets
(3) $ 66,713 $ 31,763 $ 30,663 $ 129,139 $ 72,060 $ 32,629 $ 27,365 $132,054
Total
liabilities (10,303) (24,857) (24,855) (60,015) (9,803) (25,370) (20,752) (55,925)
-------- -------- --------- --- --------- -------- -------- --------- -------
Subtotal $ 56,410 $ 6,906 $ 5,808 $ 69,124 $ 62,257 $ 7,259 $ 6,613 $ 76,129
Cash and cash
equivalents -- -- (13,472) (13,472) -- -- (10,012) (10,012)
Short-term
investments -
Rabbi Trust -- -- (954) (954) -- -- (903) (903)
Current income
taxes
receivable -- -- $(532.SI)$ (532) -- -- (350) (350)
Long-term
investments -
Rabbi Trust -- -- (7,089) (7,089) -- -- (7,102) (7,102)
Deferred
income taxes
-
non-current -- -- (528) (528) -- -- (518) (518)
Lines of
credit -- -- 4,017 4,017 -- -- -- --
Deferred
compensation
- current -- -- 954 954 -- -- 903 903
Accrued
Restructuring 633 633 -- -- -- --
Income taxes
payable -
current -- -- 759 759 -- -- 972 972
Income taxes
payable -
long-term -- -- 2,180 2,180 -- -- 2,088 2,088
Deferred
income taxes
-
non-current -- -- 6,449 6,449 -- -- 6,379 6,379
Deferred
compensation
- long-term -- -- 6,946 6,946 -- -- 6,929 6,929
-------- -------- --------- --- --------- -------- -------- --------- -------
Total Capital
Employed $ 56,410 $ 6,906 $ 5,171 $ 68,487 $ 62,257 $ 7,259 $ 4,999 $ 74,515
======== ======== ========= === ========= ======== ======== ========= =======
Mattress Upholstery Unallocated
Fabrics Fabrics Corporate Consolidated
--------- ------------ ------------- --------------
Average
Capital
Employed (2) $ 55,170 $ 10,027 $ 4,427 $ 69,624
======== ======== ========= === =========
Notes
------------------------------------------------------------------------------
(1) Average capital employed is calculated independently for each segment
and on a consolidated basis using the five quarterly periods ending
April 27, 2025, January 26, 2025, October 27, 2024, July 28, 2024, and
April 28, 2024.
(2) Return on average capital employed represents the twelve months
adjusted operating (loss) income as of April 27, 2025, divided by
average capital employed. Average capital employed does not include
cash and cash equivalents, short-term and long-term investments --
rabbi trust, income taxes receivable and payable, accrued
restructuring, current and long-term lines of credit, non-current
deferred income tax assets and liabilities, and current and non-current
deferred compensation.
(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 April 28, 2024
Unaudited
(Amounts in Thousands)
Adjusted
Operating
(Loss)
Income
Twelve
Months Average Return on
Ended Capital Avg. Capital
April 28,
2024 Employed (1) Employed (2)
---------- ------------ -------------
Mattress
Fabrics $ (6,845) $ 63,189 (10.8)%
Upholstery
Fabrics 5,787 9,263 62.5%
Unallocated
Corporate (9,574) 3,784 N.M.
--------- -------- -------------
Consolidated $ (10,632) $ 76,235 (13.9)%
========= ======== =========
Average
Capital
Employed As of the Three months ended April 28, 2024 As of the Three months ended January 28, 2024 As of the Three months ended October 29, 2023
------------------------------------------------------- ------------------------------------------------- -------------------------------------------------
Mattress Upholstery Unallocated Mattress Upholstery Unallocated Mattress Upholstery Unallocated
Fabrics Fabrics Corporate Total Fabrics Fabrics Corporate Total Fabrics Fabrics Corporate Total
---------- ------------ ------------- -------- --------- ---------- ------------- -------- --------- ---------- ------------- --------
Total assets
(3) $ 72,060 $ 32,629 $ 27,365 $132,054 $ 75,572 $ 38,085 $ 28,341 $141,998 $ 75,924 $ 35,082 $ 31,154 $142,160
Total
liabilities (9,803) (25,370) (20,752) (55,925) (8,234) (32,201) (20,767) (61,202) (14,739) (23,758) (20,035) (58,532)
--------- -------- --------- ------- -------- --------- --------- ------- -------- --------- --------- -------
Subtotal $ 62,257 $ 7,259 $ 6,613 $ 76,129 $ 67,338 $ 5,884 $ 7,574 $ 80,796 $ 61,185 $ 11,324 $ 11,119 $ 83,628
Cash and cash
equivalents -- -- (10,012) (10,012) -- -- (12,585) (12,585) -- -- (15,214) (15,214)
Short-term
investments
- Rabbi
Trust -- -- (903) (903) -- -- (937) (937) -- -- (937) (937)
Current
income taxes
receivable -- -- (350) (350) -- -- (476) (476) -- -- (340) (340)
Long-term
investments
- Rabbi
Trust -- -- (7,102) (7,102) -- -- (7,083) (7,083) -- -- (6,995) (6,995)
Deferred
income taxes
-
non-current -- -- (518) (518) -- -- (531) (531) -- -- (472) (472)
Deferred
compensation
- current -- -- 903 903 -- -- 937 937 -- -- 937 937
Income taxes
payable -
current -- -- 972 972 -- -- 1,070 1,070 -- -- 998 998
Income taxes
payable -
long-term -- -- 2,088 2,088 -- -- 2,072 2,072 -- -- 2,055 2,055
Deferred
income taxes
-
non-current -- -- 6,379 6,379 -- -- 6,177 6,177 -- -- 5,663 5,663
Deferred
compensation
- long-term -- -- 6,929 6,929 -- -- 6,856 6,856 -- -- 6,748 6,748
--------- -------- --------- ------- -------- --------- --------- ------- -------- --------- --------- -------
Total Capital
Employed $ 62,257 $ 7,259 $ 4,999 $ 74,515 $ 67,338 $ 5,884 $ 3,074 $ 76,296 $ 61,185 $ 11,324 $ 3,562 $ 76,071
========= ======== ========= ======= ======== ========= ========= ======= ======== ========= ========= =======
CULP INC.
RETURN ON CAPITAL EMPLOYED BY SEGMENT - CONTINUED
FOR THE TWELVE MONTHS ENDED APRIL 28, 2024
Unaudited
(Amounts in Thousands)
As of the Three Months Ended July 30, 2023 As of the Three Months Ended April 30, 2023
--------------------------------------------------------- ---------------------------------------------------
Mattress Upholstery Unallocated Mattress Upholstery Unallocated
Fabrics Fabrics Corporate Total Fabrics Fabrics Corporate Total
--------- ------------ ------------- -------------- --------- ------------ ------------- --------
Total assets
(3) $ 72,286 $ 37,592 $ 33,024 $ 142,902 $ 75,494 $ 39,127 $ 37,562 $152,183
Total
liabilities (11,230) (25,235) (20,320) (56,785) (11,387) (29,638) (22,078) (63,103)
-------- -------- --------- --- --------- -------- -------- --------- -------
Subtotal $ 61,056 $ 12,357 $ 12,704 $ 86,117 $ 64,107 $ 9,489 $ 15,484 $ 89,080
Cash and cash
equivalents -- -- (16,812) (16,812) -- -- (20,964) (20,964)
Short-term
investments -
Rabbi Trust -- -- (791) (791) -- -- (1,404) (1,404)
Current income
taxes
receivable -- -- (202) (202) -- -- -- --
Long-term
investments -
Rabbi Trust -- -- (7,204) (7,204) -- -- (7,067) (7,067)
Deferred
income taxes
-
non-current -- -- (476) (476) -- -- (480) (480)
Deferred
compensation
- current -- -- 791 791 -- -- 1,404 1,404
Accrued
restructuring -- -- 10 10 -- -- -- --
Income taxes
payable -
current -- -- 526 526 -- -- 753 753
Income taxes
payable -
long-term -- -- 2,710 2,710 -- -- 2,675 2,675
Deferred
income taxes
-
non-current -- -- 5,864 5,864 -- -- 5,954 5,954
Deferred
compensation
- long-term -- -- 6,966 6,966 -- -- 6,842 6,842
-------- -------- --------- --- --------- -------- -------- --------- -------
Total Capital
Employed $ 61,056 $ 12,357 $ 4,086 $ 77,499 $ 64,107 $ 9,489 $ 3,197 $ 76,793
======== ======== ========= === ========= ======== ======== ========= =======
Mattress Upholstery Unallocated
Fabrics Fabrics Corporate Consolidated
--------- ------------ ------------- --------------
Average
Capital
Employed (2) $ 63,189 $ 9,263 $ 3,784 $ 76,235
======== ======== ========= === =========
Notes
------------------------------------------------------------------------------
(1) Average capital employed is calculated independently for each segment
and on a consolidated basis using the five quarterly periods ending
April 28, 2024, January 28, 2024, October 29, 2023, July 30, 2023, and
April 30, 2023.
(2) Return on average capital employed represents the last twelve months
adjusted operating (loss) income as of April 28, 2024, divided by
average capital employed. Average capital employed does not include
cash and cash equivalents, short-term and long-term investments --
rabbi trust, income taxes receivable and payable, accrued
restructuring, noncurrent deferred income tax assets and liabilities,
and current and non-current deferred compensation.
(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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250625123994/en/
CONTACT: Investor Relations Contact
Ken Bowling, Executive Vice President, Chief Financial Officer, and Treasurer:
(336) 881-5630
krbowling@culp.com
(END) Dow Jones Newswires
June 25, 2025 16:15 ET (20:15 GMT)