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Segment Information (Tables)
 6 Months Ended
Oct. 30, 2022
Segment Reporting [Abstract]  
Schedule of Operating Segments Information

Statements of operations for our operating segments are as follows:

 

 

 

Three months ended

 

 

 

October 30, 2022

 

 

October 31, 2021

 

net sales by segment:

 

 

 

 

 

 

mattress fabrics

 

$

26,230

 

 

$

40,883

 

upholstery fabrics

 

 

32,151

 

 

 

33,678

 

net sales

 

$

58,381

 

 

$

74,561

 

gross (loss) profit:

 

 

 

 

 

 

mattress fabrics

 

$

(6,057

)

 

$

6,146

 

upholstery fabrics

 

 

3,942

 

 

 

4,581

 

total segment gross (loss) profit

 

$

(2,115

)

 

$

10,727

 

     restructuring related charge (1)

 

 

(98

)

 

 

—

 

gross (loss) profit

 

$

(2,213

)

 

$

10,727

 

selling, general, and administrative expenses by segment:

 

 

 

 

 

 

mattress fabrics

 

$

2,945

 

 

$

3,007

 

upholstery fabrics

 

 

3,680

 

 

 

3,553

 

unallocated corporate expenses

 

 

2,478

 

 

 

2,527

 

selling, general, and administrative expenses

 

$

9,103

 

 

$

9,087

 

(loss) income from operations by segment:

 

 

 

 

 

 

mattress fabrics

 

$

(9,002

)

 

$

3,139

 

upholstery fabrics

 

 

262

 

 

 

1,028

 

unallocated corporate expenses

 

 

(2,478

)

 

 

(2,527

)

total segment (loss) income from operations

 

$

(11,218

)

 

$

1,640

 

     restructuring expense (2)

 

 

(615

)

 

 

—

 

     restructuring related charge (1)

 

 

(98

)

 

 

—

 

(loss) income from operations

 

$

(11,931

)

 

$

1,640

 

interest income

 

 

79

 

 

 

59

 

other income (expense)

 

 

829

 

 

 

(404

)

(loss) income before income taxes

 

$

(11,023

)

 

$

1,295

 

 

(1) Restructuring related charge for the three-months ended October 30, 2022, represents $98,000 of losses on disposal and markdowns of inventory associated with the exit of our cut and sew upholstery fabrics operation located in Shanghai, China. This $98,000 restructuring related charge was recorded to cost of sales in the Consolidated Statements of Net Loss for the three-months ending October 30, 2022.

 

(2) Restructuring expense for the three-months ended October 30, 2022, represents $468,000 for employee termination benefits, $80,000 that relates to a loss on disposal of equipment, $47,000 for lease termination costs, and $20,000 of other associated costs related to the exit of our cut and sew upholstery fabrics operation located in Shanghai, China.

 

 

 

Six months ended

 

 

 

October 30, 2022

 

 

October 31, 2021

 

net sales by segment:

 

 

 

 

 

 

mattress fabrics

 

$

55,602

 

 

$

83,941

 

upholstery fabrics

 

 

65,383

 

 

 

73,667

 

net sales

 

$

120,985

 

 

$

157,608

 

gross (loss) profit:

 

 

 

 

 

 

mattress fabrics

 

$

(6,093

)

 

$

12,941

 

upholstery fabrics

 

 

8,105

 

 

 

10,285

 

total segment gross profit

 

$

2,012

 

 

$

23,226

 

     restructuring related charge (1)

 

 

(98

)

 

 

—

 

gross profit

 

$

1,914

 

 

$

23,226

 

selling, general, and administrative expenses by segment:

 

 

 

 

 

 

mattress fabrics

 

$

5,829

 

 

$

6,191

 

upholstery fabrics

 

 

7,302

 

 

 

6,990

 

unallocated corporate expenses

 

 

4,837

 

 

 

5,087

 

selling, general, and administrative expenses

 

$

17,968

 

 

$

18,268

 

(loss) income from operations by segment:

 

 

 

 

 

 

mattress fabrics

 

$

(11,922

)

 

$

6,750

 

upholstery fabrics

 

 

803

 

 

 

3,295

 

unallocated corporate expenses

 

 

(4,837

)

 

 

(5,087

)

total segment (loss) income from operations

 

$

(15,956

)

 

$

4,958

 

     restructuring expense (2)

 

 

(615

)

 

 

—

 

     restructuring related charge (1)

 

 

(98

)

 

 

—

 

(loss) income from operations

 

$

(16,669

)

 

$

4,958

 

interest income

 

 

96

 

 

 

132

 

other income (expense)

 

 

747

 

 

 

(640

)

(loss) income before income taxes

 

$

(15,826

)

 

$

4,450

 

 

 

(1) Restructuring related charge for the six-months ended October 30, 2022, represents $98,000 of losses on disposal and markdowns of inventory associated with the exit of our cut and sew upholstery fabrics operation located in Shanghai, China. This $98,000 restructuring related charge was recorded to cost of sales in the Consolidated Statements of Net Loss for the six-months ending October 30, 2022.

 

(2) Restructuring expense for the six-months ended October 30, 2022, represents $468,000 for employee termination benefits, $80,000 that relates to a loss on disposal of equipment, $47,000 for lease termination costs, and $20,000 of other associated costs related to the exit of our cut and sew upholstery fabrics operation located in Shanghai, China.

 

Balance sheet information for our operating segments follows:

 

(dollars in thousands)

 

October 30, 2022

 

 

October 31, 2021

 

 

May 1, 2022

 

Segment assets:

 

 

 

 

 

 

 

 

 

Mattress Fabrics:

 

 

 

 

 

 

 

 

 

Accounts receivable

 

$

8,700

 

 

$

16,639

 

 

$

9,865

 

Inventory

 

 

30,300

 

 

 

34,498

 

 

 

39,028

 

Property, plant and equipment (1)

 

 

35,853

 

 

 

40,673

 

 

 

38,731

 

Right of use assets (2)

 

 

2,087

 

 

 

3,838

 

 

 

3,469

 

Total mattress fabrics assets

 

 

76,940

 

 

 

95,648

 

 

 

91,093

 

Upholstery Fabrics:

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

13,743

 

 

 

15,677

 

 

 

12,361

 

Inventory

 

 

21,924

 

 

 

29,283

 

 

 

27,529

 

Property, plant and equipment (3)

 

 

2,150

 

 

 

1,680

 

 

 

2,030

 

Right of use assets (4)

 

 

5,898

 

 

 

5,472

 

 

 

8,124

 

Total upholstery fabrics assets

 

 

43,715

 

 

 

52,112

 

 

 

50,044

 

Total segment assets

 

 

120,655

 

 

 

147,760

 

 

 

141,137

 

Non-segment assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

19,137

 

 

 

16,956

 

 

 

14,550

 

Short-term investments - available for sale

 

 

—

 

 

 

9,709

 

 

 

—

 

Short-term investments - held-to-maturity

 

 

—

 

 

 

1,564

 

 

 

—

 

Short-term investments - rabbi trust

 

 

2,237

 

 

 

—

 

 

 

—

 

Current income taxes receivable

 

 

510

 

 

 

613

 

 

 

857

 

Other current assets

 

 

3,462

 

 

 

3,811

 

 

 

2,986

 

Deferred income taxes

 

 

493

 

 

 

452

 

 

 

528

 

Property, plant and equipment (5)

 

 

829

 

 

 

912

 

 

 

941

 

Right of use assets (6)

 

 

3,624

 

 

 

4,339

 

 

 

3,984

 

Intangible assets

 

 

2,440

 

 

 

2,816

 

 

 

2,628

 

Long-term investments - rabbi trust

 

 

7,526

 

 

 

9,036

 

 

 

9,357

 

Long-term investments - held-to-maturity

 

 

—

 

 

 

8,353

 

 

 

—

 

Other assets

 

 

717

 

 

 

3,004

 

 

 

595

 

Total assets

 

$

161,630

 

 

$

209,325

 

 

$

177,563

 

 

 

 

 

Six months ended

 

(dollars in thousands)

 

October 30, 2022

 

 

October 31, 2021

 

Capital expenditures (7):

 

 

 

 

 

 

Mattress Fabrics

 

$

267

 

 

$

2,030

 

Upholstery Fabrics

 

 

447

 

 

 

397

 

Unallocated Corporate

 

 

60

 

 

 

1,302

 

Total capital expenditures

 

$

774

 

 

$

3,729

 

Depreciation expense:

 

 

 

 

 

 

Mattress Fabrics

 

$

3,088

 

 

$

3,071

 

Upholstery Fabrics

 

 

401

 

 

 

400

 

Total depreciation expense

 

$

3,489

 

 

$

3,471

 
(1)
The $35.9 million as of October 30, 2022, represents property, plant, and equipment of $23.8 million, $11.4 million, and $679,000 located in the U.S., Canada, and Haiti, respectively. The $40.7 million as of October 31, 2021, represents property, plant, and equipment of $27.3 million, $12.6 million, and $836,000 located in the U.S., Canada, and Haiti, respectively. The $38.7 million as of May 1, 2022, represents property, plant, and equipment of $25.6 million, $12.4 million, and $757,000 located in the U.S., Canada, and Haiti, respectively.
(2)
The $2.1 million as of October 30, 2022, represents right of use assets of $1.8 million, $167,000, and $164,000 located in Haiti, Canada, and the U.S., respectively. The $3.8 million as of October 31, 2021, represents right of use assets of $2.2 million, $1.3 million, and $309,000 located in Haiti, the U.S., and Canada, respectively. The $3.5 million as of May 1, 2022, represents right of use assets of $2.0 million, $1.2 million, and $291,000 located in Haiti, the U.S., and Canada, respectively.
(3)
The $2.2 million as of October 30, 2022, represents property, plant, and equipment of $1.0 million, $1.0 million, and $137,000 located in the U.S., Haiti, and China, respectively. The $1.7 million as of October 31, 2021, represents property, plant, and equipment of $1.1 million, $368,000, and $242,000 located in the U.S., China, and Haiti, respectively. The $2.0 million as of May 1, 2022, represents property, plant, and equipment of $1.0 million, $756,000, and $255,000 located in the U.S., Haiti, and China, respectively.
(4)
The $5.9 million as of October 30, 2022, represents right of use assets of $2.5 million, $2.0 million and $1.4 million located in Haiti, China, and the U.S., respectively. The $5.5 million as of October 31, 2021, represents right of use assets of $4.3 million and $1.2 million located in China and the U.S., respectively. The $8.1 million as of May 1, 2022, represents right of use assets of $3.7 million, $2.6 million, and $1.8 million located in China, Haiti, and the U.S., respectively.
(5)
The $829,000, $912,000, and $941,000 as of October 30, 2022, October 31, 2021, and May 1, 2022, respectively, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by our mattress fabrics and upholstery fabrics segments. Property, plant, and equipment associated with our corporate departments reside in the U.S.
(6)
The $3.6 million, $4.3 million, and $4.0 million as of October 30, 2022, October 31, 2021, and May 1, 2022, respectively, represent right of use assets located in the U.S.
(7)
Capital expenditure amounts are stated on the accrual basis. See Consolidated Statements of Cash Flows for capital expenditure amounts on a cash basis.