Culp Announces Results for Third Quarter Fiscal 2014

  Culp Announces Results for Third Quarter Fiscal 2014

Company Declares Regular Quarterly Cash Dividend of $0.05 Per Share and Board
             of Directors Authorizes Additional Share Repurchases

Business Wire

HIGH POINT, N.C. -- February 25, 2014

Culp, Inc. (NYSE: CFI) today reported financial and operating resultsfor the
third quarter and nine months ended January 26, 2014.

Fiscal 2014 Third Quarter Highlights:

  *Net sales were $72.4 million, up 13.6 percent, with mattress fabric sales
    up 8.5 percent and upholstery fabric sales up 20.1 percent, as compared
    with the same quarter last year. This reflects the highest sales level for
    the third quarter in ten years.
  *Pre-tax income was $4.6 million, compared with $4.5 million in the third
    quarter of fiscal 2013. The $4.6 million reflects the highest pre-tax
    income level for the third quarter in over 15 years.
  *Adjusted net income (non-GAAP) was $3.9 million, or $0.31 per diluted
    share, for the current quarter, compared with $3.9 million, or $0.32 per
    diluted share, for the prior year period. (Adjusted net income is
    calculated using estimated cash income tax expense. See the reconciliation
    to net income on page 6).
  *Net income (GAAP) was $8.4 million, or $0.68 per diluted share, compared
    withnet income of $2.8million, or $0.23 per diluted share, in the prior
    year period. Net income for the third quarter of fiscal 2014 included an
    income tax benefit $3.8 million, while net income for the third quarter of
    fiscal 2013 included an income tax expense of $1.7 million.
  *The company’s financial position remained strong with cash and cash
    equivalents and short term investments of $30.4million and total debt of
    $5.0million as of January 26, 2014.
  *The company paid a regular quarterly cash dividend of $0.05 per share,
    which compares with a $0.03 per share regular cash dividend in the prior
    year period.

Fiscal 2014 Year to Date Highlights

  *Year to date sales were $213.1 million, up 7.4 percent from the same
    period a year ago, with mattress fabrics segment sales up 3.4 percent and
    upholstery fabrics segment sales up 12.7 percent over the same period a
    year ago.
  *Pre-tax income was $14.9 million, up from $14.4 million for the same
    period last year.
  *Adjusted net income (non-GAAP) was $12.6 million, or $1.02 per diluted
    share, compared with $12.3 million, or $0.99 per diluted share, for the
    prior year period.

    Net income (GAAP) was $14.7 million, or $1.19 per diluted share, compared
    with net income of $14.6million, or $1.17 per diluted share, for the same
    period a year ago. Year to date net income for both periods was affected
    by substantial income tax benefits booked in the third quarter of fiscal
    2014 and the second quarter of fiscal 2013.

  *Consolidated return on capital was 27 percent, compared with 28 percent
    for the same period a year ago.
  *Free cash flow was $8.0 million, compared with $8.5 million for the same
    period a year ago. The company expects free cash flow for fiscal 2014 to
    be comparable to the $13.1 million achieved in fiscal 2013.
  *The projection for fourth quarter fiscal 2014 is for overall sales to be 3
    percent to 7 percent higher compared with the previous year’s fourth
    quarter. Pre-tax income for the fourth quarter of fiscal 2014 is expected
    to be in the range of $5.0 million to $5.9 million. Pre-tax income for the
    fourth quarter of fiscal 2013 was $5.9million.
  *The projection for the full year is for overall sales to be up
    approximately 5 percent, which represents the fifth consecutive year for
    sales growth.
  *Pre-tax income for the full year is expected to be $19.9 million to $20.8
    million, compared with $20.3 million in fiscal 2013. The prior year
    pre-tax income of $20.3 million was the highest level in fifteen years.

Overview

For the third quarter ended January 26, 2014, net sales were $72.4 million, a
13.6 percent increase compared with$63.7 million a year ago. The company
reported net income of $8.4 million, or $0.68 per diluted share,forthe
thirdquarter of fiscal 2014, compared with net income of $2.8 million, or
$0.23 per diluted share,forthe third quarter of fiscal 2013. Net income for
the third quarter of fiscal 2014 included an income tax benefit of $3.8
million, which includes a $5.4 million income tax benefit to recognize U.S.
foreign tax credits net of the income tax effects of the undistributed
earnings associated with the company’s China operation, as determined on a
U.S. income tax and financial reporting basis. Net income for the third
quarter of fiscal 2013 included an income tax expense of $1.7 million.

Given the volatility in the income tax area during fiscal 2014 and previous
years, the company is reporting adjusted net income (non-GAAP), which is
calculated using estimated cash income tax expense for its foreign
subsidiaries. (A presentation of adjusted net income and a reconciliation to
net income is set forth on page 6). The company currently does not incur cash
income tax expense in the U.S., nor does it expect to for a number of years,
due to approximately $50.7 million in U.S. net operating loss carryforwards as
of the end of fiscal 2013. For the third quarter of fiscal 2014, adjusted net
income was $3.9million, or $0.31 per diluted share, compared with $3.9
million, or $0.32 per diluted share, for the third quarter of fiscal 2013. On
a pre-tax basis, the company reportedincome of $4.6 million compared with
pre-tax income of $4.5 million for the third quarter offiscal 2013.

Commenting on the results, Frank Saxon, president and chief executive officer
of Culp, Inc., said, “We continued to build upon our sales momentum thus far
in fiscal 2014, with a 14 percent sales gain for the third quarter compared
with a year ago. These favorable results are primarily product related, as we
continue to experience excellent customer response to our creative designs and
innovative fabrics. We have worked diligently – as our top strategic priority
– to drive product innovation throughout our company. It is very encouraging
to see significant tangible progress resulting from these efforts with
increased sales to existing key customers as well as new customers. We compete
in a product and fashion oriented business that is always changing. Our
ability to adapt quickly to such changes and to create innovative fabrics,
season after season, is the key to our long-term success.

“We are on track to have another outstanding year of solid sales growth,
consistent profitability and excellent free cash flow. As a result, we have
the financial strength to invest aggressively in capital expenditures and
working capital to drive organic growth, as well as to provide added value to
shareholders through dividends and share repurchases,” added Saxon.

Mattress Fabrics Segment

Mattress fabric sales for the third quarter were $38.5 million, up 8.5 percent
compared with $35.5million for the third quarter of fiscal 2013.

“Our mattress fabrics business had a solid sales performance in the third
quarter of fiscal 2014,” said Iv Culp, president ofCulp’s mattress fabrics
division. “These results reflect the growing consumer demand for ‘better’
designed bedding products and strong market penetration. Culp is well
positioned to meet this demand with our extensive design capabilities and
technical expertise, supported by a scalable manufacturing platform and
reactive capacity. We now offer a complete array of innovative fabrics and
mattress covers to all major players across all categories in the mattress
industry.

“Our operating results for the third quarter were affected by higher than
expected transition costs in Culp-Lava, our new mattress cover operation, as
well as additional sampling and development costs in support of new customer
roll-outs for calendar 2014. We experienced short-term challenges during the
third quarter that lowered gross profit by approximately $600,000, as we
absorbed the production of some mattress covers acquired from a previous
supplier. However, as these specific covers are phased out during the fourth
quarter and new 2014 mattress covers are introduced, we expect significant
improvement in our operating efficiencies and margins going forward. Despite
the operational challenges, we are pleased with the added sales contribution
from Culp-Lava in the third quarter and are optimistic about continued growth
in sales and improved productivity in the fourth quarter and beyond.

“The fundamentals of our mattress fabrics business are strong and Culp has a
solid competitive position with a favorable product mix that reflects today’s
style trends. We are very encouraged by the response to our exciting designs
and new product introductions. Culp had an outstanding showing at the recent
Las Vegas bedding market, with strong placements from key customers for both
mattress fabrics and covers. We are excited about the opportunities ahead to
grow our business and to enhance Culp’s leadership position in the bedding
industry.”

Upholstery Fabrics Segment

Sales for this segment were $33.8 million for the third quarter, a 20.1
percent improvement compared with sales of $28.2million in the third quarter
of fiscal 2013.

“Our upholstery fabrics business had an outstanding performance in the third
quarter of fiscal 2014,” noted Saxon. “The higher than expected sales
primarily reflect continued positive customer response to our innovative
designs anddiverse product offering. In addition, we experienced a greater
than expected level of sales in the third quarter as customers anticipated
longer lead times related to the Chinese New Year holiday, which occurred in
late January of this year. Notably, sales of China produced fabrics accounted
for 92 percent of upholstery fabric sales in the third quarter.

“Our 100% owned China platform offers significant manufacturing flexibility to
produce a variety of product categories, and we have continued to leverage
this capability to meet changing customer demand in line with furniture style
trends. As a result, we have increased sales to our key customers with our
outstanding designs and new product offerings. We are also excited about our
ability to reach new customers and expand our market presence. Culp is well
positioned for continued growth, especially as business conditions improve
with a more stable housing market.”

Saxon continued, “With respect to Culp Europe, we have continued to make
progress throughout fiscal 2014, and we remain optimistic about the long-term
opportunities for Culp with a European market presence.”

Balance Sheet

“Our strong financial position continues to be an important advantage for Culp
in fiscal 2014,” added Saxon. “The company has generated $8.0 million in free
cash flow through the first nine months of fiscal 2014, after investing $6.2
million in working capital and spending $2.7 million in capital expenditures.
As of January 26, 2014, we reported $30.4 million in cash and cash equivalents
and short-term investments. Total debt at the end of the third quarter was
$5.0million, which includes long-term debt plus current maturities of
long-term debt and our line of credit. Notably, our net cash position, or cash
minus total debt, was $25.4 million at the end of the third quarter. We expect
our net cash position to build during the fourth quarter.”

Quarterly Dividend and Share Repurchase Program

The company paid a $0.05 per share dividend during the quarter. The company
also announced that its Board of Directors has approved the payment of a
quarterly cash dividend of $0.05 per share, to be paid on or about April 15,
2014, to shareholders of record as of the close of business on April 1, 2014.
The quarterly dividend paid during the same period last year was $0.03 per
share. Future dividend payments are subject to Board approval and may be
adjusted at the Board’s discretion as business needs or market conditions
change.

In addition, the company announced that its Board of Directors has approved an
increase in the authorization for the company to acquire its common stock to
$5.0 million, an increase from the current $2.0 million authorization. Under
the stock repurchase program, shares may be purchased from time to time in
open market transactions, block trades, through plans established under the
Securities and Exchange Act Rule 10b5-1, or otherwise. The amount of shares
purchased and the timing of the purchases will be based on working capital
requirements, market and general business conditions and other factors,
including alternative investment opportunities.

Commenting on this announcement, Saxon said, “The increase in the share
repurchase program reflects our solid and consistent financial performance and
strong balance sheet, along with the leadership position we have achieved in
each of our businesses. These actions reinforce our confidence in the
company’s future and our commitment to generating value for our shareholders
through the payment of dividends and share repurchases, as we have previously
disclosed in our capital allocation strategy.”

Outlook

Commenting on the outlook for the fourth quarter of fiscal 2014, Saxon
remarked, “Given the adverse weather conditions experienced in many parts of
the country thus far in calendar 2014 and the related impact on furniture and
mattress manufacturers and retailers, providing guidance for the company’s
fiscal fourth quarter has become more difficult.

“At this time, we expect overall sales to be up 3 percent to 7 percent as
compared with the fourth quarter of fiscal 2013. For the year, we expect
overall fiscal 2014 annual sales to exceed last year’s annual sales by
approximately 5 percent.

“We expect fourth quarter sales in our mattress fabrics business to be up 3
percent to 7 percent as compared to the same period a year ago. Operating
income in this segment is expected to be flat to slightly higher, while
margins are expected to be slightly lower as compared with the same period a
year ago. This performance reflects significant improvement over the results
for the third quarter of fiscal 2014.

“For the full fiscal year, we expect mattress fabrics sales to be
approximately 4 percent higher than fiscal 2013, and operating income and
margins are expected to be somewhat lower than last fiscal year.

“In our upholstery fabrics business, we expect fourth quarter sales to be up 1
percent to 5 percent compared with the previous year’s fourth quarter results.
Because the Chinese New Year holiday falls entirely in the fourth quarter of
fiscal 2014, our sales and production schedules will be affected by the
extended break. We believe the upholstery fabric segment’s operating income
and margins will be flat to slightly lower when compared with the same quarter
oflast year.

“For the full fiscal year, we expect upholstery fabric sales to be
approximately 10 percent higher than last fiscal year. Operating income in
this segment is expected to be significantly higher than last year, while
operating margins are expected to be moderately higher as compared to last
year.

“Considering these factors, the company expects to report pre-tax income for
the fourth fiscal quarter of 2014 in the range of $5.0 million to $5.9
million. Pre-tax income for last year’s fourth quarter was $5.9million. For
fiscal 2014 as a whole, we expect pre-tax income in the range of $19.9 million
to $20.8million, compared with $20.3 million last fiscal year.”

In closing, Saxon remarked, “We are pleased with our performance to date in
fiscal 2014 and our ability to continue to grow our business in a dynamic
global marketplace. Our creative designs and innovative fabric styles are
resonating with our customers in both businesses with favorable results. We
are building a strong economic moat in both businesses with our flexible and
scalable global manufacturing platform, supported by design expertise, product
innovation and outstanding customer service. We look forward to our future
growth prospects and our ability to continue generating strong free cash flow.
Above all, we are committed to outstanding performance for our customers as a
financially stable and trusted source for innovative fabrics.”

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
operations located in the United States, Canada, China and Poland.

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 27A of the
Securities and Exchange Act of 1934). Such statements are inherently subject
to risks and uncertainties. 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. 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,”
“estimate,” “plan” and “project” and their derivatives, and include but are
not limited to statements about expectations for our future operations,
production levels, sales, gross profit margins, operating income, SG&A or
other expenses, earnings, cash flow, and other performance measures, as well
as any statements regarding future economic or industry trends or future
developments. 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 affectus adversely. Changes in consumer
tastes or preferences toward products not produced by us could erode demand
for our products. 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 and 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. 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 Form
10-K filed with the Securities and Exchange Commission on July12, 2013 for
the fiscal year ended April 28, 2013.

                                              
    CULP, INC.
    Condensed Financial Highlights
    (Unaudited)
                                                 
                   Three Months Ended           Nine Months Ended
                   January 26,   January 27,    January 26,    January 27,
                   2014           2013           2014            2013
                                                                 
    Net sales      $ 72,389,000   $ 63,695,000   $ 213,119,000   $ 198,439,000
    Income
    before         $ 4,574,000    $ 4,523,000    $ 14,923,000    $ 14,426,000
    income taxes
    Net income     $ 8,381,000    $ 2,823,000    $ 14,707,000    $ 14,614,000
    Net income
    per share:
    Basic          $ 0.69         $ 0.23         $ 1.21          $ 1.19
    Diluted        $ 0.68         $ 0.23         $ 1.19          $ 1.17
                                                                 
    Adjusted net   $ 3,865,000    $ 3,872,000    $ 12,610,000    $ 12,349,000
    income
    Adjusted net
    income per
    share
    Basic          $ 0.32         $ 0.32         $ 1.04          $ 1.01
    Diluted        $ 0.31         $ 0.32         $ 1.02          $ 0.99
                                                                 
    Average
    shares
    outstanding:
    Basic            12,188,000     12,095,000     12,173,000      12,279,000
    Diluted          12,405,000     12,290,000     12,405,000      12,467,000
                                                                 
                                                                 
                                                                 
                                                                 
                   Presentation of Adjusted Net Income and Adjusted Income
                   Taxes (1)
                                                                 
                   Three Months Ended           Nine Months Ended
                   January 26,    January 27,    January 26,     January 27,
                   2014           2013           2014            2013
                                                                 
    Income
    before         $ 4,574,000    $ 4,523,000    $ 14,923,000    $ 14,426,000
    income taxes
    Adjusted
    income taxes   $ 709,000      $ 651,000      $ 2,313,000     $ 2,077,000
    (2)
    Adjusted net   $ 3,865,000    $ 3,872,000    $ 12,610,000    $ 12,349,000
    income
                                                                   
    Culp, Inc. currently does not incur cash income tax expense in the U.S.
(1) due to its $50.7 million in net operating loss carryforwards. Adjusted net
    income is calculated using only estimated cash income tax expense for the
    company’s subsidiaries in Canada and China.
                                                                   
    Represents estimated cash income tax expense for the company’s
(2) subsidiaries in Canada and China, calculated with a consolidated adjusted
    effective income tax rate of 15.5% for fiscal 2014 and 14.4% for fiscal
    2013.
    

                                                                                        
    Consolidated Adjusted Effective Income Tax Rate, Net Income and Earnings Per Share
    For the Nine Months Ended January 26, 2014, and January 27, 2013
    (Unaudited)
    (Amounts in Thousands)
                                                                                                   
                                                                                                   
                              NINE MONTHS ENDED
                                                                                                   
                              Amounts
                              January 26,   January 27,
                              2014          2013
                                                                                                   
                                                                                                   
    Consolidated
    Effective GAAP      (1)     1.4    %      (1.3   )%
    Income Tax Rate
                                                                                                   
    Reduction of U.S.           -             83.7   %
    Valuation Allowance
                                                                                                   
    Undistributed
    earnings from               34.2   %      (46.3  )%
    foreign
    subsidiaries
                                                                                                   
    Non-Cash U.S.               (20.0  )%     (20.2  )%
    Income Tax Expense
                                                                                                   
    Non-Cash Foreign           (0.1   )%    (1.5   )%
    Income Tax Expense
                                                                                                   
    Consolidated
    Adjusted Effective  (2)    15.5   %     14.4   %
    Income Tax Rate
                                                                                                   
                                                                                 
                                                                                                   
                                                                                                   
                              THREE MONTHS ENDED
                              As reported                 January 26,   As                         January 27,
                                                          2014          reported                   2013
                              January 26,                 Proforma      January                    Proforma
                                                          Net           27,                        Net
                              2014          Adjustments   of            2013         Adjustments   of
                                                          Adjustments                              Adjustments
                                                                                                   
    Income before             $ 4,574       $ -           $   4,574     $ 4,523                    $   4,523
    income taxes
                                                                                                   
    Income taxes (3)           (3,807 )    $ 4,516         709        1,700     $  (1,049 )      651
    Net income                $ 8,381       $ (4,516 )    $   3,865     $ 2,823      $  1,049      $   3,872
                                                                                                   
    Net income per            $ 0.69        $ 0.37        $   0.32      $ 0.23       $  (0.09  )   $   0.32
    share-basic
    Net income per            $ 0.68        $ 0.36        $   0.31      $ 0.23       $  (0.09  )   $   0.32
    share-diluted
    Average shares              12,188        12,188          12,188      12,095        12,095         12,095
    outstanding-basic
    Average shares              12,405        12,405          12,405      12,290        12,290         12,290
    outstanding-diluted
                                                                                                   
                                                                                                   
                              NINE MONTHS ENDED
                              As reported                 January 26,   As                         January 27,
                                                          2014          reported                   2013
                              January 26,                 Proforma      January                    Proforma
                                                          Net           27,                        Net
                              2014          Adjustments   of            2013         Adjustments   of
                                                          Adjustments                              Adjustments
                                                                                                   
    Income before             $ 14,923      $ -           $   14,923    $ 14,426     $  -          $   14,426
    income taxes
                                                                                                   
    Income taxes (3)           216        $ 2,097         2,313      (188   )   $  2,265        2,077
    Net income                $ 14,707      $ (2,097 )    $   12,610    $ 14,614     $  (2,265 )   $   12,349
                                                                                                   
    Net income per            $ 1.21        $ 0.17        $   1.04      $ 1.19       $  0.18       $   1.01
    share-basic
    Net income per            $ 1.19        $ 0.17        $   1.02      $ 1.17       $  0.18       $   0.99
    share-diluted
    Average shares              12,173        12,173          12,173      12,279        12,279         12,279
    outstanding-basic
    Average shares              12,405        12,405          12,405      12,467        12,467         12,467
    outstanding-diluted
                                                                                                   
                                                                                                   
(1) Calculated by dividing consolidated income tax expense (benefit) by consolidated income before income
    taxes.
                                                                                                   
(2) Represents estimated cash income tax expense for our subsidiaries located in Canada and China divided by
    consolidated income before income taxes.
                                                                                                   
(3) Proforma income taxes calculated using the Consolidated Adjusted Effective Income Tax Rate as reflected
    above.
    

                                                      
Reconciliation of Free Cash Flow
For the Nine Months Ended January 26, 2014, and January 27, 2013
(Unaudited)
(Amounts in thousands)
                                                                      
                                                  FY 2014       FY 2013
Net cash provided by operating                   $ 10,994           $ 10,817
activities
Minus: Capital Expenditures                        (2,656 )           (2,763 )
Add: Proceeds from the sale of                     188                -
equipment
Add: Proceeds from life insurance                  -                  626
policies
Minus: Payments on life insurance                  (30    )           -
policies
Add: Excess tax benefit related to                 143                77
stock-based compensation
Effect of exchange rate changes on                (660   )          (284   )
cash and cash equivalents
                                                                      
Free Cash Flow                                   $ 7,979           $ 8,473  
                                                                             

                                                  
    Reconciliation of Return on Capital
    For the Nine Months Ended January 26, 2014, and January 27, 2013
    (Unaudited)
    (Amounts in thousands)
                                                                 
                     Nine Months                     Nine Months
                     Ended                           Ended
                     January 26,                    January 27, 
                     2014                            2013
                                                                   
    Consolidated
    Income from      $  15,805                       $ 15,010
    Operations
    Average
    Capital            77,100                       71,355  
    Employed (2)
                                                                   
    Return on
    Average            27.3     %                    28.0    %
    Capital
    Employed (1)
                                                                   
    Average
    Capital
    Employed
                                                                   
                     January 26,       October 27,   July 28,      April 28,
                     2014              2013          2013          2013
                                                                   
    Total assets     $  156,678        $ 156,242     $ 151,101     $ 144,706
    Total              (47,235  )      (54,727 )    (52,516 )    (49,123 )
    liabilities
                                                                   
    Subtotal         $  109,443        $ 101,515     $ 98,585      $ 95,583
    Less:
    Cash and cash       (23,293  )       (24,267 )     (21,423 )     (23,530 )
    equivalents
    Short-term          (7,077   )       (6,220  )     (6,174  )     (5,286  )
    investments
    Income taxes        -                -             (292    )     (318    )
    receivable
    Deferred
    income taxes        (7,503   )       (7,745  )     (7,747  )     (7,709  )
    - current
    Deferred
    income taxes        (1,227   )       (661    )     (651    )     (753    )
    - non-current
    Current
    maturities of       2,200            2,200         2,200         2,200
    long-term
    debt
    Line of             573              585           560           561
    credit
    Income taxes
    payable -           130              304           320           285
    current
    Income taxes
    payable -           3,953            4,141         4,176         4,191
    long-term
    Deferred
    income taxes        945              5,016         4,335         3,075
    - non-current
    Long-term
    debt, less          2,200            2,200         4,400         4,400
    current
    maturities
                                                                
    Total Capital    $  80,344        $ 77,068     $ 78,289     $ 72,699  
    Employed
                     
    Average
    Capital          $  77,100   
    Employed (2)
                                                                   
                     January 27,       October 28,   July 29,      April 29,
                     2013              2012          2012          2012
                                                                   
    Total assets     $  143,797        $ 142,443     $ 143,160     $ 144,716
    Total              (51,831  )      (47,055 )    (51,329 )    (55,716 )
    liabilities
                                                                   
    Subtotal         $  91,966         $ 95,388      $ 91,831      $ 89,000
    Less:
    Cash and cash       (19,489  )       (23,464 )     (21,889 )     (25,023 )
    equivalents
    Short-term          (5,237   )       (5,241  )     (5,200  )     (5,941  )
    investments
    Deferred
    income taxes        (4,098   )       (4,470  )     (2,337  )     (2,467  )
    - current
    Deferred
    income taxes        (4,172   )       (4,738  )     (2,715  )     (3,205  )
    - non-current
    Current
    maturities of       2,366            2,401         2,400         2,404
    long-term
    debt
    Line of             576              875           834           889
    credit
    Income taxes
    payable -           395              385           751           642
    current
    Income taxes
    payable -           4,195            4,188         4,131         4,164
    long-term
    Deferred
    income taxes        856              856           705           705
    - non-current
    Long-term
    debt, less          4,400            4,416         6,666         6,719
    current
    maturities
                                                                
    Total Capital    $  71,758        $ 70,596     $ 75,177     $ 67,887  
    Employed
                     
    Average
    Capital          $  71,355   
    Employed (2)
                                                                   
Notes:
    Return on average capital employed represents operating income for the
    nine month period ending January 26, 2014, or January 27, 2013 divided by
(1) 3 quarters times 4 quarters short-term investments, long-term debt,
    including current maturities, line of credit, current and noncurrent
    deferred tax assets and liabilities, and income taxes receivable and
    payable.
                                                                   
    Average capital employed used for the nine months ending January 26, 2014
(2) was computed using the four quarterly periods ending January 26, 2014,
    October 27, 2013, July 28, 2013 and April 28, 2013.
    Average capital employed used for the nine months ending January 27,2013
    was computed using the four quarterly periods ending January 27,
    2013,October 28, 2012, July 29, 2012 and April 29, 2012.

Contact:

Culp, Inc.
Investor Contact:
Kenneth R. Bowling, 336-881-5630
Chief Financial Officer
or
Media Contact:
Teresa A. Huffman, 336-889-5161
Vice President, Human Resources
 
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