EX-99.(B) 3 a6325084ex99b.htm EXHIBIT 99(B) a6325084ex99b.htm
Exhibit 99(b)
Page 1 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE
  
CONSOLIDATED STATEMENTS OF OPERATIONS
  
FOR THE THREE MONTHS AND TWELVE MONTHS ENDED MAY 2, 2010 AND MAY 3, 2009
  
(UNAUDITED)
  
(Amounts in Thousands, Except for Per Share Data)
  
                                       
   
THREE MONTHS ENDED
  
                                       
   
Amounts
            
Percent of Sales
  
   
May 2,
  
May 3,
  
% Over
  
May 2,
  
May 3,
  
   
2010
  
2009
  
(Under)
  
2010
  
2009
  
                                       
Net sales
   $ 57,243     $ 47,762       19.9   %     100.0   %     100.0   %  
Cost of sales
     45,843       39,408       16.3   %     80.1   %     82.5   %  
Gross profit     11,400       8,354       36.5   %     19.9   %     17.5   %  
                                                 
Selling, general and
                                                
administrative expenses
     6,090       5,252       16.0   %     10.6   %     11.0   %  
Restructuring (credit) expense
     (52 )     33    
N.M.
         (0.1 )  %     0.1   %  
Income from operations     5,362       3,069       74.7   %     9.4   %     6.4   %  
                                                 
Interest expense
     288       620       (53.5 )  %     0.5   %     1.3   %  
Interest income
     (36 )     (14 )     157.1   %     (0.1 )  %     (0.0 )  %  
Other expense
     114       251       (54.6 )  %     0.2   %     0.5   %  
Income before income taxes     4,996       2,212       125.9   %     8.7   %     4.6   %  
                                                 
Income taxes*
     (436 )     517    
N.M.
         (8.7 )  %     23.4   %  
Net income   $ 5,432     $ 1,695       220.5   %     9.5   %     3.5   %  
                                                 
Net income per share-basic
   $ 0.42     $ 0.13       223.1   %                      
Net income per share-diluted
   $ 0.41     $ 0.13       215.4   %                      
Average shares outstanding-basic
     12,801       12,653       1.2   %                      
Average shares outstanding-diluted
     13,200       12,694       4.0   %                      
                                                 
                                                 
                                                 
   
TWELVE MONTHS ENDED
  
                                             
   
Amounts
              
Percent of Sales
  
   
May 2,
  
May 3,
  
% Over
  
May 2,
  
May 3,
  
    2010   2009 (1)  
(Under)
   2010   2009  
                                                 
Net sales
   $ 206,416     $ 203,938       1.2   %     100.0   %     100.0   %  
Cost of sales
     167,639       179,286       (6.5 )  %     81.2   %     87.9   %  
Gross profit     38,777       24,652       57.3   %     18.8   %     12.1   %  
                                                 
Selling, general and
                                                
administrative expenses
     22,805       19,751       15.5   %     11.0   %     9.7   %  
Restructuring (credit) expense
     (370 )     9,471    
N.M.
         (0.2 )  %     4.6   %  
Income (loss) from operations     16,342       (4,570 )  
N.M.
         7.9   %     (2.2 )  %  
                                                 
Interest expense
     1,314       2,359       (44.3 ) %     0.6   %     1.2   %  
Interest income
     (116 )     (89 )     30.3   %     (0.1 ) %     (0.0 ) %  
Other expense
     828       43    
N.M.
         0.4   %     0.0   %  
Income (loss) before income taxes     14,316       (6,883 )     (308.0 )  %     6.9   %     (3.4 )  %  
                                                 
Income taxes*
     1,128       31,959    
N.M.
         7.9   %  
N.M.
      
Net income (loss)   $ 13,188     $ (38,842 )     (134.0 )  %     6.4   %     (19.0 )  %  
                                                 
Net income (loss) per share-basic
   $ 1.04     $ (3.07 )     (133.9 )  %                      
Net income (loss) per share-diluted
   $ 1.01     $ (3.07 )     (132.9 )  %                      
Average shares outstanding-basic
     12,709       12,651       0.5   %                      
Average shares outstanding-diluted
     13,057       12,651       3.2   %                      
 
* Percent of sales column for income taxes is calculated as a % of income (loss) before income taxes.
 
(1)  Derived from audited financial statements.
 
 
 
 
 
Page 2 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE
  
CONSOLIDATED BALANCE SHEETS
  
MAY 2, 2010 AND MAY 3, 2009
  
Unaudited
  
(Amounts in Thousands)
  
                             
   
Amounts
    
Increase
  
   
May 2,
    
* May 3,
    
(Decrease)
  
   
2010
    
2009
    
Dollars
  
Percent
  
                             
Current assets
                            
Cash and cash equivalents   $ 18,295     $ 11,797       6,498       55.1   %  
Short-term investments     3,023       -       3,023       100.0   %  
Accounts receivable     19,822       18,116       1,706       9.4   %  
Inventories     26,002       23,978       2,024       8.4   %  
Deferred income taxes     150       54       96       177.8   %  
Assets held for sale     123       1,209       (1,086 )     (89.8 )  %  
Income taxes receivable     728       210       518       246.7   %  
Other current assets     1,698       1,264       434       34.3   %  
Total current assets     69,841       56,628       13,213       23.3   %  
                                     
Property, plant and equipment, net
     28,403       24,253       4,150       17.1   %  
Goodwill
     11,462       11,593       (131 )     (1.1 )  %  
Deferred income taxes
     324       -       324       100.0   %  
Other assets
     2,568       2,820       (252 )     (8.9 )  %  
                                     
Total assets   $ 112,598     $ 95,294       17,304       18.2   %  
                                     
                                     
                                     
Current liabilities
                                    
Current maturities of long-term debt   $ 196     $ 4,764       (4,568 )     (95.9 ) %  
Current portion of an obligation under capital lease     -       626       (626 )     (100.0 )  %  
Accounts payable - trade     22,278       17,030       5,248       30.8   %  
Accounts payable - capital expenditures     567       923       (356 )     (38.6 )  %  
Accrued expenses     9,613       6,504       3,109       47.8   %  
Accrued restructuring     324       853       (529 )     (62.0 )  %  
Income taxes payable - current     224       83       141       169.9   %  
Total current liabilities     33,202       30,783       2,419       7.9   %  
                                     
Accounts payable - capital expenditures
     -       638       (638 )     (100.0 )  %  
Income taxes payable - long-term
     3,876       3,264       612       18.8   %  
Deferred income taxes
     982       974       8       0.8   %  
Long-term debt , less current maturities
     11,491       11,604       (113 )     (1.0 )  %  
                                     
Total liabilities     49,551       47,263       2,288       4.8   %  
                                     
Shareholders' equity
     63,047       48,031       15,016       31.3   %  
                                     
Total liabilities and                                    
shareholders' equity   $ 112,598     $ 95,294       17,304       18.2   %  
                                     
Shares outstanding
     13,052       12,768       284       2.2   %  
 
* Derived from audited financial statements
 
 
 
 
 
Page 3 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE    
CONSOLIDATED STATEMENTS OF CASH FLOWS
    
FOR THE TWELVE MONTHS ENDED MAY 2, 2010 AND MAY 3, 2009
    
Unaudited    
(Amounts in Thousands)
    
               
               
   
TWELVE MONTHS ENDED
    
               
   
Amounts
    
   
May 2,
  
* May 3,
  
   
2010
  
2009 (2)
  
               
Cash flows from operating activities:
        
 
    
Net income (loss)   $ 13,188     $ (38,842 )  
Adjustments to reconcile net income (loss) to net cash                  
provided by operating activities:                  
Depreciation     4,010       6,712    
Amortization of other assets     548       488    
Stock-based compensation     834       425    
Excess tax benefit related to stock options exercised     (429 )     -    
Deferred income taxes     (148 )     33,430    
(Gain) loss on impairment of equipment     (65 )     (32 )  
Restructuring expenses, net of gain on sale of related assets     (170 )     7,960    
Foreign currency exchange losses (gains)     688       (88 )  
Changes in assets and liabilities, net of effects of acquisition of assets:                  
Accounts receivable     (1,684 )     8,924    
Inventories     (2,020 )     12,850    
Other current assets     (418 )     28    
Other assets
     (67 )     10    
Accounts payable-trade
     5,157       (5,278 )  
Accrued expenses
     2,853       (1,667 )  
Accrued restructuring
     (529 )     (579 )  
Income taxes
     (171 )     (1,504 )  
Net cash provided by operating activities
     21,577       22,837    
                   
Cash flows from investing activities:
                  
Capital expenditures
     (7,431 )     (1,970 )  
Purchase of short-term investments
     (3,023 )     -    
Net cash paid for acquisition of assets
     -       (11,365 )  
Proceeds from the sale of buildings and equipment
     583       4,607    
Net cash used in investing activities
     (9,871 )     (8,728 )  
                   
Cash flows from financing activities:
                  
Proceeds from the issuance of long-term debt
     -       11,000    
Payments on vendor-financed capital expenditures
     (985 )     (1,236 )  
Payments on a capital lease obligation
     (626 )     (754 )  
Payments on long-term debt
     (4,789 )     (16,055 )  
Debt issuance costs
     (15 )     (133 )  
Proceeds from common stock issued
     673       21    
Excess tax benefit related to stock options exercised
     429       -    
Net cash used in financing activities
     (5,313 )     (7,157 )  
                   
Effect of exchange rate changes on cash and cash equivalents
     105       (69 )  
                   
Increase in cash and cash equivalents
     6,498       6,883    
                   
Cash and cash equivalents at beginning of year
     11,797       4,914    
                   
Cash and cash equivalents at end of year
   $ 18,295     $ 11,797    
                   
                   
Free Cash Flow (1)
   $ 13,652     $ 23,415    
                   
                   
                   
(1)  Free Cash Flow reconciliation is as follows:
                  
   
FY 2010
  
FY 2009
  
Net cash provided by operating activities
   $ 21,577     $ 22,837    
Minus:  Capital Expenditures
     (7,431 )     (1,970 )  
Add:  Proceeds from the sale of buildings and equipment
     583       4,607    
Minus:  Payments on vendor-financed capital expenditures
     (985 )     (1,236 )  
Minus:  Payments on a capital lease obligation
     (626 )     (754 )  
Add: Excess tax benefit related to stock options exercised
     429       -    
Effects of exchange rate changes on cash and cash equivalents
     105       (69 )  
    $ 13,652     $ 23,415    
                   
 
* Derived from audited financial statements.
 
(2) Certain prior year amounts have been reclassified to conform to current year presentation to reflect the effects of foreign exchange losses and gains in operating cash flows and cash and cash equivalents held as of May 3, 2009.  Reclassifications are not material to total net cash provided by operating activities, total net cash used in investing activities, and total net cash used in financing activities.
 
 
 
 
 
Page 4 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE  
STATEMENTS OF OPERATIONS BY SEGMENT  
FOR THE THREE MONTHS ENDED MAY 2, 2010 AND MAY 3, 2009  
                                       
(Amounts in thousands)  
                                       
                                       
    THREE MONTHS ENDED (UNAUDITED)  
                                       
   
Amounts
          
Percent of Total Sales
  
   
May 2,
  
May 3,
  
% Over
  
May 2,
  
May 3,
  
Net Sales by Segment
  
2010
  
2009
  
(Under)
  
2010
  
2009
  
                                       
Mattress Fabrics
   $ 33,418       26,588       25.7   %     58.4   %     55.7   %  
Upholstery Fabrics
     23,825       21,174       12.5   %     41.6   %     44.3   %  
                                                 
Net Sales
   $ 57,243       47,762       19.9   %     100.0   %     100.0   %  
                                                 
                                                 
Gross Profit by Segment
                            
Gross Profit Margin
  
                                                 
Mattress Fabrics
   $ 7,407       5,392       37.4   %     22.2   %     20.3   %  
Upholstery Fabrics
     4,008       2,977       34.6   %     16.8   %     14.1   %  
Subtotal
     11,415       8,369       36.4   %     19.9   %     17.5   %  
                                                 
Restructuring related charges
     (15 ) (1)   (15 ) (1)   0.0   %     (0.0 )  %     (0.0 ) %  
                                                 
Gross Profit
   $ 11,400       8,354       36.5   %     19.9   %     17.5   %  
                                                 
                                                 
Selling, General and Administrative expenses by Segment                             Percent of Sales  
                                                 
Mattress Fabrics
   $ 2,482       1,848       34.3   %     7.4   %     7.0   %  
Upholstery Fabrics
     2,385       2,310       3.2   %     10.0   %     10.9   %  
Unallocated Corporate
     1,223       1,094       11.8   %     2.1   %     2.3   %  
Selling, General and Administrative expenses
     6,090       5,252       16.0   %     10.6   %     11.0   %  
                                                 
                                                 
Operating Income (loss)  by Segment
                            
Operating Income (Loss) Margin
  
                                                 
Mattress Fabrics
   $ 4,925       3,545       38.9   %     14.7   %     13.3   %  
Upholstery Fabrics
     1,623       666       143.7   %     6.8   %     3.1   %  
Unallocated Corporate
     (1,223 )     (1,094 )     11.8   %     (2.1 )  %     (2.3 ) %  
Subtotal
     5,325       3,117       70.8   %     9.3   %     6.5   %  
                                                 
                                                 
Restructuring credit (expense) and restructuring related charges
     37   (1)   (48 ) (1)
N.M.
         0.1   %     (0.1 )  %  
                                                 
Operating income
   $ 5,362       3,069       74.7   %     9.4   %     6.4   %  
                                                 
                                                 
Depreciation by Segment
                                                
                                                 
Mattress Fabrics
   $ 838       925       (9.4 )  %                      
Upholstery Fabrics
     130       32       306.3   %                      
Total Depreciation
     968       957       1.1   %                      
 
Notes:
 
(1)  See page 6 for detailed explanations of restructuring credit (expense) and restructuring related charges.
 
 
 
 
 
Page 5 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE
  
STATEMENTS OF OPERATIONS BY SEGMENT
  
FOR THE TWELVE MONTHS ENDED MAY 2, 2010 AND MAY 3, 2009
  
                                       
(Amounts in thousands)
  
                                       
                                       
   
TWELVE MONTHS ENDED (UNAUDITED)
  
                                       
   
Amounts
          
Percent of Total Sales
  
   
May 2,
  
May 3,
  
% Over
  
May 2,
  
May 3,
  
Net Sales by Segment
  
2010
  
2009
  
(Under)
  
2010
  
2009
  
                                       
Mattress Fabrics
   $ 114,848       115,396       (0.5 )  %     55.6   %     56.6   %  
Upholstery Fabrics
     91,568       88,542       3.4   %     44.4   %     43.4   %  
                                                 
Net Sales
   $ 206,416       203,938       1.2   %     100.0   %     100.0   %  
                                                 
                                                 
Gross Profit by Segment
                            
Gross Profit Margin
  
                                                 
Mattress Fabrics
   $ 23,652       20,996       12.7   %     20.6   %     18.2   %  
Upholstery Fabrics
     15,183       7,253       109.3   %     16.6   %     8.2   %  
Subtotal
     38,835       28,249       37.5   %     18.8   %     13.9   %  
                                                 
Restructuring related charges
     (58 ) (1)   (3,597 ) (1)
N.M.
         (0.0 )  %     (1.8 )  %  
                                                 
Gross Profit
   $ 38,777       24,652       57.3   %     18.8   %     12.1   %  
                                                 
                                                 
Selling, General and Administrative expenses  by Segment
                            
Percent of Sales
  
                                                 
Mattress Fabrics
   $ 8,178       7,749       5.5   %     7.1   %     6.7   %  
Upholstery Fabrics
     9,227       8,756       5.4   %     10.1   %     9.9   %  
Unallocated Corporate
     5,400       3,225       67.4   %     2.6   %     1.6   %  
Subtotal
     22,805       19,730       15.6   %     11.0   %     9.7   %  
                                                 
Restructuring related charges
     -   (1)   21   (1)
N.M.
         0.0   %     0.0   %  
                                                 
Selling, General and Administrative expenses
   $ 22,805       19,751       15.5   %     11.0   %     9.7   %  
                                                 
                                                 
Operating Income (loss)  by Segment
                            
Operating Income (Loss) Margin
  
                                                 
Mattress Fabrics
   $ 15,474       13,247       16.8   %     13.5   %     11.5   %  
Upholstery Fabrics
     5,956       (1,503 )  
N.M.
         6.5   %     (1.7 )  %  
Unallocated Corporate
     (5,400 )     (3,225 )     67.4   %     (2.6 ) %     (1.6 )  %  
Subtotal
     16,030       8,519       88.2   %     7.8   %     4.2   %  
                                                 
Restructuring credit (expense) and restructuring related charges
     312   (1)   (13,089 ) (1)
N.M.
         0.2   %     (6.4 )  %  
                                                 
Operating income (loss)
   $ 16,342       (4,570 )  
N.M.
         7.9   %     (2.2 )  %  
                                                 
                                                 
Depreciation by Segment
                                                
                                                 
Mattress Fabrics
   $ 3,458       3,542       (2.4 )  %                      
Upholstery Fabrics
     552       1,080       (48.9 )  %                      
Subtotal
     4,010       4,622       (13.2 )  %                      
Accelerated Depreciation
     -       2,090       (100.0 )  %                      
Total Depreciation
     4,010       6,712       (40.3 ) %                      
 
Notes:
 
(1)  See page 7 for detailed explanations of restructuring credit (expense) and restructuring related charges.
 
 
 
 
 
Page 6 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE
ADJUSTED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MAY 2, 2010 AND MAY 3, 2009
(Unaudited)
(Amounts in Thousands, Except for Per Share Data)
                                                                 
 
THREE MONTHS ENDED
                                                   
 
As Reported
              
May 2, 2010
      
As Reported
              
May 3, 2009
      
Adjusted
 
May 2,
  
% of
      
% of
  
Adjusted
  
% of
  
May 3,
  
% of
      
% of
  
Adjusted
  
% of
  
% Over
 
2010
  
Sales
  
Adjustments
  
Sales
  
Results
  
Sales
  
2009
  
Sales
  
Adjustments
  
Sales
  
Results
  
Sales
  
(Under)
                                                                 
Net sales
 $ 57,243     100.0 %     -           57,243     100.0 %     47,762     100.0 %     -           47,762     100.0 %     19.9 %
Cost of sales
   45,843     80.1 %     (15 )   0.0 % (1)   45,828     80.1 %     39,408     82.5 %     (15 )   0.0 % (2)   39,393     82.5 %     16.3 %
Gross Profit
   11,400     19.9 %     (15 )   0.0 %     11,415     19.9 %     8,354     17.5 %     (15 )   0.0 %     8,369     17.5 %     36.4 %
                                                                                           
Selling, general and administrative expenses
   6,090     10.6 %     -     0.0 %     6,090     10.6 %     5,252     11.0 %     -     0.0 %     5,252     11.0 %     16.0 %
Restructuring (credit) expense
   (52 )   -0.1 %     52     0.1 % (1)   -     0.0 %     33     0.1 %     (33 )   -0.1 % (2)   -     0.0 %     0.0 %
Income from operations
   5,362     9.4 %     37     0.1 %     5,325     9.3 %     3,069     6.4 %     (48 )   -0.1 %     3,117     6.5 %     70.8 %
                                                                                           
Interest expense
   288     0.5 %     -     0.0 %     288     0.5 %     620     1.3 %     -     0.0 %     620     1.3 %     -53.5 %
Interest income
   (36 )   -0.1 %     -     0.0 %     (36 )   -0.1 %     (14 )   0.0 %     -     0.0 %     (14 )   0.0 %     157.1 %
Other expense
   114     0.2 %     -     0.0 %     114     0.2 %     251     0.5 %     -     0.0 %     251     0.5 %     -54.6 %
Income before income taxes
   4,996     8.7 %     37     0.1 % (3)   4,959     8.7 %     2,212     4.6 %     (48 )   -0.1 % (4)   2,260     4.7 %     119.4 %
 
Notes:
   
(1) The $15 restructuring related charge represents other operating costs associated with closed plant facilities. The $52 restructuring credit represents a credit of $43 for sales proceeds received on equipment with no carrying value, a credit of $16 for employee termination benefits, offset by a charge of $7 for lease termination and other exit costs.
   
(2) The $15 restructuring related charge represents $57 for other operating costs associated with  closed plant facilities and a credit of $42 for inventory markdowns. The $33 restructuring charge represents $43 for lease termination and other exit costs and a credit of $10 for employee termination benefits.
   
(3)  The $37 represents a cash credit.
   
(4) Of this total charge, $90 and $42 represent a cash charge and  a non-cash credit, respectively.
 
 
 
 
 
 
Page 7 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE
ADJUSTED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE TWELVE MONTHS ENDED MAY 2, 2010 AND MAY 3, 2009
(Unaudited)
(Amounts in Thousands, Except for Per Share Data)
                                                                 
 
TWELVE MONTHS ENDED
                                                   
 
As Reported
              
May 2, 2010
      
As Reported
              
May 3, 2009
      
Adjusted
 
May 2,
  
% of
      
% of
  
Adjusted
  
% of
  
May 3,
  
% of
      
% of
  
Adjusted
  
% of
  
% Over
 
2010
  
Sales
  
Adjustments
  
Sales
  
Results
  
Sales
  
2009
  
Sales
  
Adjustments
  
Sales
  
Results
  
Sales
  
(Under)
                                                                 
Net sales
 $ 206,416     100.0 %     -           206,416     100.0 %     203,938     100.0 %     -           203,938     100.0 %     1.2 %
Cost of sales
   167,639     81.2 %     (58 )   0.0 % (1)   167,581     81.2 %     179,286     87.9 %     (3,597 )   -1.8 % (2)   175,689     86.1 %     -4.6 %
Gross profit
   38,777     18.8 %     (58 )   0.0 %     38,835     18.8 %     24,652     12.1 %     (3,597 )   -1.8 %     28,249     13.9 %     37.5 %
                                                                                           
Selling, general and administrative expenses
   22,805     11.0 %     -     0.0 %     22,805     11.0 %     19,751     9.7 %     (21 )   0.0 % (2)   19,730     9.7 %     15.6 %
Restructuring (credit) expense
   (370 )   -0.2 %     370     0.2 % (1)   -     0.0 %     9,471     4.6 %     (9,471 )   -4.6 % (3)   -     0.0 %     0.0 %
Income (loss) from operations
   16,342     7.9 %     312     0.2 %     16,030     7.8 %     (4,570 )   -2.2 %     (13,089 )   -6.4 %     8,519     4.2 %     88.2 %
                                                                                           
Interest expense
   1,314     0.6 %     -     0.0 %     1,314     0.6 %     2,359     1.2 %     -     0.0 %     2,359     1.2 %     -44.3 %
Interest income
   (116 )   -0.1 %     -     0.0 %     (116 )   -0.1 %     (89 )   0.0 %     -     0.0 %     (89 )   0.0 %     30.3 %
Other expense
   828     0.4 %     -     0.0 %     828     0.4 %     43     0.0 %     -     0.0 %     43     0.0 %  
N.M.
  
Income (loss) before income taxes
   14,316     6.9 %     312     0.2 % (4)   14,004     6.8 %     (6,883 )   -3.4 %     (13,089 )   -6.4 % (5)   6,206     3.0 %     125.7 %
 
Notes:
   
(1) The $58 restructuring related charge represents $108 for other operating costs asscoiated with closed plant facilities, offset by a credit of $50 for inventory markdowns. The $370 restructuring credit represents $186 for employee termination benefits, $170 for sales proceeds received on equipment with no carrying value, and $14 for lease termination and other exit costs.
   
(2) The $3.6 million restructuring related charge represents $3.5  million for inventory markdowns and $119 for other operating costs associated with closed plant facilities. The $21 restructuring related charge represents other operating costs associated with closed plant facilities.
   
(3)  The $9.5 million restructuring charge represents $8.0 million for write-downs of equipment and buildings, $786 for employee termination benefits, and $728 for lease termination and other exit costs.
   
(4) Of this total credit, $262 and $50 represent cash and non-cash credits, respectively.
   
(5) Of this total charge, $1.6  million and $11.5 million represent cash and non-cash charges, respectively.
 
 
 
 
 
Page 8 of 8
CULP, INC. FINANCIAL INFORMATION RELEASE  
RETURN ON CAPITAL EMPLOYED BY SEGMENT  
FOR THE TWELVE MONTHS ENDED MAY 2, 2010  
(UNAUDITED)  
                                                   
                                                   
 
Operating 
 
  
 
                                        
  Income
 
 
                                        
 
Twelve Months
Ended
May 2, 2010 
Average
Capital
Employed
Return on
Avg. Capital
Employed
                                        
 
(1)
(3)
(2)
                                        
                                                     
Mattress Fabrics
 $ 15,474   $ 47,339     32.7 %                                        
Upholstery Fabrics
   5,956     10,587     56.3 %                                        
(less: Unallocated Corporate)
   (5,400 )   (5,606 )   N/A                                          
Total
 $ 16,030   $ 52,320     30.6 %                                        
                                                           
Average Capital Employed As of May 2, 2010     As of January 31, 2010     As of November 1, 2009  
   
Mattress
    
Upholstery
    
Unallocated
          
Mattress
    
Upholstery
    
Unallocated
          
Mattress
    
Upholstery
    
Unallocated
      
 
Fabrics
  
Fabrics
  
Corporate
  
Total
    
Fabrics
  
Fabrics
  
Corporate
  
Total
    
Fabrics
  
Fabrics
  
Corporate
  
Total
  
                                                           
Total assets
   61,922     25,420     25,256     112,598       58,609     25,928     21,971     106,508       56,686     19,598     22,496     98,780  
Total liabilities
   (14,720 )   (13,559 )   (21,272 )   (49,551 )     (10,066 )   (13,527 )   (25,991 )   (49,584 )     (10,625 )   (10,461 )   (24,416 )   (45,502 )
                                                                             
Subtotal
 $ 47,202   $ 11,861   $ 3,984   $ 63,047     $ 48,543   $ 12,401   $ (4,020 ) $ 56,924     $ 46,061   $ 9,137   $ (1,920 ) $ 53,278  
Less:
                                                                            
Cash and cash equivalents
   -           (18,295 ) $ (18,295 )     -           (19,015 ) $ (19,015 )     -     -     (19,575 )   (19,575 )
Short-term investments
   -   $ -     (3,023 )   (3,023 )                                                    
Current maturities of long-term debt
   -           196     196       -           4,880     4,880       -     -     4,863     4,863  
Long-term debt, less current maturities               11,491     11,491                   11,529     11,529             -     11,568     11,568  
                                                                             
Total Capital Employed
 $ 47,202   $ 11,861   $ (5,647 ) $ 53,416     $ 48,543   $ 12,401   $ (6,626 ) $ 54,318     $ 46,061   $ 9,137   $ (5,064 ) $ 50,134  
                                                                             
                                                                             
  As of August 2, 2009     As of May 3, 2009                            
   
Mattress
    
Upholstery
    
Unallocated
          
Mattress
    
Upholstery
    
Unallocated
                                
 
Fabrics
  
Fabrics
  
Corporate
  
Total
    
Fabrics
  
Fabrics
  
Corporate
  
Total
                            
                                                                             
Total assets
   57,772     16,128     18,511     92,411       58,626     22,078     14,590     95,294                            
Total liabilities
   (10,138 )   (7,670 )   (24,427 )   (42,235 )     (11,372 )   (10,999 )   (24,892 )   (47,263 )                          
                                                                             
Subtotal
 $ 47,634   $ 8,458   $ (5,916 ) $ 50,176     $ 47,254   $ 11,079   $ (10,302 ) $ 48,031                            
Less:
                                                                            
Cash and cash equivalents
   -           (15,481 ) $ (15,481 )     -           (11,797 ) $ (11,797 )                          
Current maturities of long-term debt
   -           4,817     4,817       -           4,764     4,764                            
Long-term debt, less current maturities               11,618     11,618                   11,604     11,604                            
                                                                             
Total Capital Employed
 $ 47,634   $ 8,458   $ (4,962 ) $ 51,130     $ 47,254   $ 11,079   $ (5,731 ) $ 52,602                            
                                                                             
                                                                             
   
Mattress
    
Upholstery
    
Unallocated
                                                          
 
Fabrics
  
Fabrics
  
Corporate
  
Total
                                                      
                                                                             
Average Capital Employed (3)
 $ 47,339   $ 10,587   $ (5,606 ) $ 52,320                                                      
 
Notes:
   
(1) Operating income excludes restructuring and related charges--see reconciliation per page 5 of this financial information release.
   
(2) Return on average capital employed represents operating income for the year ended May 2, 2010 divided by average capital employed. Average capital employed does not include cash and cash equivalents, short-term investments, long-term debt, including current maturities and shareholders' equity.
   
(3) Average capital employed is computed using the five periods ending May 3, 2009, August 2, 2009, November 1, 2009, January 31, 2010, and May 2, 2010.