NORTH CAROLINA
|
56-1001967
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(State or other jurisdiction of
|
(I.R.S. Employer Identification No.)
|
incorporation or other organization)
|
|
1823 Eastchester Drive
|
|
High Point, North Carolina
|
27265-1402
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(Address of principal executive offices)
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(zip code)
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Large accelerated filer o | Accelerated filer x | Non-accelerated filer o | Smaller Reporting Company o |
Page | ||
Financial Statements: (Unaudited) | ||
I-1
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I-2
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I-3
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I-4
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I-5
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I-6
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I-21
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I-22
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I-34
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I-34
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II-1
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II-1
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II-1
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II-2
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II-3
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CONSOLIDATED STATEMENTS OF NET INCOME
|
|||||||||
FOR THE THREE MONTHS ENDED JULY 29, 2012 AND JULY 31, 2011
|
|||||||||
UNAUDITED
|
|||||||||
(Amounts in Thousands, Except for Per Share Data)
|
|||||||||
THREE MONTHS ENDED
|
|||||||||
July 29,
|
July 31,
|
||||||||
2012
|
2011
|
||||||||
Net sales
|
$ | 69,184 | 60,270 | ||||||
Cost of sales
|
56,064 | 51,392 | |||||||
Gross profit
|
13,120 | 8,878 | |||||||
Selling, general and
|
|||||||||
administrative expenses
|
7,641 | 5,757 | |||||||
Income from operations
|
5,479 | 3,121 | |||||||
Interest expense
|
190 | 220 | |||||||
Interest income
|
(127 | ) | (129 | ) | |||||
Other expense
|
44 | 65 | |||||||
Income before income taxes
|
5,372 | 2,965 | |||||||
Income taxes
|
1,848 | 1,145 | |||||||
Net income
|
$ | 3,524 | 1,820 | ||||||
Net income per share, basic
|
$ | 0.28 | 0.14 | ||||||
Net income per share, diluted
|
0.28 | 0.14 | |||||||
Average shares outstanding, basic
|
12,551 | 13,061 | |||||||
Average shares outstanding, diluted
|
12,711 | 13,205 | |||||||
See accompanying notes to consolidated financial statements.
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
||||||||
FOR THE THREE MONTHS ENDED JULY 29, 2012 AND JULY 31, 2011
|
||||||||
UNAUDITED
|
||||||||
THREE MONTHS ENDED
|
||||||||
July 29,
|
July 31,
|
|||||||
2012
|
2011
|
|||||||
Net income
|
$ | 3,524 | 1,820 | |||||
Other comprehensive income
|
||||||||
Unrealized gains on short-term investments
|
33 | 15 | ||||||
Total other comprehensive income
|
33 | 15 | ||||||
Comprehensive income
|
3,557 | 1,835 | ||||||
See accompanying notes to consolidated financial statements.
|
CONSOLIDATED BALANCE SHEETS
|
||||||||||||
JULY 29, 2012, JULY 31, 2011 AND APRIL 29, 2012
|
||||||||||||
UNAUDITED
|
||||||||||||
(Amounts in Thousands)
|
||||||||||||
July 29,
|
July 31,
|
* April 29,
|
||||||||||
2012
|
2011
|
2012
|
||||||||||
Current assets:
|
||||||||||||
Cash and cash equivalents
|
$ | 21,889 | 14,570 | 25,023 | ||||||||
Short-term investments
|
5,200 | 10,443 | 5,941 | |||||||||
Accounts receivable, net
|
20,021 | 18,905 | 25,055 | |||||||||
Inventories
|
44,052 | 34,858 | 36,373 | |||||||||
Deferred income taxes
|
2,337 | 1,237 | 2,467 | |||||||||
Assets held for sale
|
15 | 75 | 15 | |||||||||
Income taxes receivable
|
- | 79 | - | |||||||||
Other current assets
|
2,563 | 2,862 | 1,989 | |||||||||
Total current assets
|
96,077 | 83,029 | 96,863 | |||||||||
Property, plant and equipment, net
|
31,016 | 30,615 | 31,279 | |||||||||
Goodwill
|
11,462 | 11,462 | 11,462 | |||||||||
Deferred income taxes
|
2,715 | 2,191 | 3,205 | |||||||||
Other assets
|
1,890 | 2,010 | 1,907 | |||||||||
Total assets
|
$ | 143,160 | 129,307 | 144,716 | ||||||||
Current liabilities:
|
||||||||||||
Current maturities of long-term debt
|
$ | 2,400 | 2,409 | 2,404 | ||||||||
Line of credit
|
834 | - | 889 | |||||||||
Accounts payable-trade
|
27,284 | 25,022 | 30,663 | |||||||||
Accounts payable - capital expenditures
|
152 | 342 | 169 | |||||||||
Accrued expenses
|
8,366 | 5,862 | 9,321 | |||||||||
Accrued restructuring costs
|
40 | 41 | 40 | |||||||||
Deferred income taxes
|
- | 82 | - | |||||||||
Income taxes payable - current
|
751 | 345 | 642 | |||||||||
Total current liabilities
|
39,827 | 34,103 | 44,128 | |||||||||
Income taxes payable - long-term
|
4,131 | 4,178 | 4,164 | |||||||||
Deferred income taxes
|
705 | 596 | 705 | |||||||||
Long-term debt, less current maturities
|
6,666 | 9,079 | 6,719 | |||||||||
Total liabilities
|
51,329 | 47,956 | 55,716 | |||||||||
Commitments and Contingencies (Note 15)
|
||||||||||||
Shareholders' equity
|
91,831 | 81,351 | 89,000 | |||||||||
Total liabilities and
|
||||||||||||
shareholders' equity
|
$ | 143,160 | 129,307 | 144,716 | ||||||||
Shares outstanding
|
12,656 | 13,181 | 12,703 | |||||||||
* Derived from audited financial statements.
|
||||||||||||
See accompanying notes to consolidated financial statements.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||
FOR THE THREE MONTHS ENDED JULY 29, 2012 AND JULY 31, 2011
|
|||||||
UNAUDITED
|
|||||||
(Amounts in Thousands)
|
THREE MONTHS ENDED
|
||||||||
July 29,
|
July 31,
|
|||||||
2012
|
2011
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 3,524 | 1,820 | |||||
Adjustments to reconcile net income to net cash
|
||||||||
used in operating activities:
|
||||||||
Depreciation
|
1,254 | 1,187 | ||||||
Amortization of other assets
|
60 | 56 | ||||||
Stock-based compensation
|
70 | 77 | ||||||
Excess tax benefit related to stock-based compensation
|
(55 | ) | (31 | ) | ||||
Deferred income taxes
|
675 | 502 | ||||||
Foreign currency exchange gains
|
(80 | ) | (39 | ) | ||||
Changes in assets and liabilities:
|
||||||||
Accounts receivable
|
4,985 | 1,322 | ||||||
Inventories
|
(7,710 | ) | (6,080 | ) | ||||
Other current assets
|
(572 | ) | (486 | ) | ||||
Other assets
|
(43 | ) | (14 | ) | ||||
Accounts payable - trade
|
(3,288 | ) | 54 | |||||
Accrued expenses
|
(930 | ) | (1,750 | ) | ||||
Accrued restructuring
|
- | (3 | ) | |||||
Income taxes
|
148 | (257 | ) | |||||
Net cash used in operating activities
|
(1,962 | ) | (3,642 | ) | ||||
Cash flows from investing activities:
|
||||||||
Capital expenditures
|
(1,008 | ) | (1,304 | ) | ||||
Purchase of short-term investments
|
(25 | ) | (4,761 | ) | ||||
Proceeds from the sale of short-term investments
|
795 | 2,032 | ||||||
Net cash used in investing activities
|
(238 | ) | (4,033 | ) | ||||
Cash flows from financing activities:
|
||||||||
Payments on long-term debt
|
(50 | ) | (53 | ) | ||||
Proceeds from common stock issued
|
- | 169 | ||||||
Common stock repurchased
|
(470 | ) | (1,102 | ) | ||||
Dividends paid
|
(381 | ) | - | |||||
Excess tax benefit related to stock-based compensation
|
55 | 31 | ||||||
Net cash used in financing activities
|
(846 | ) | (955 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents
|
(88 | ) | 19 | |||||
Decrease in cash and cash equivalents
|
(3,134 | ) | (8,611 | ) | ||||
Cash and cash equivalents at beginning of period
|
25,023 | 23,181 | ||||||
Cash and cash equivalents at end of period
|
$ | 21,889 | 14,570 | |||||
See accompanying notes to consolidated financial statements.
|
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
|
||||||||||||||||||||||||
UNAUDITED
|
||||||||||||||||||||||||
(Dollars in thousands, except share data)
|
||||||||||||||||||||||||
Capital
|
Accumulated
|
|
||||||||||||||||||||||
Contributed
|
Other
|
Total
|
||||||||||||||||||||||
Common Stock
|
in Excess
|
Accumulated
|
Comprehensive
|
Shareholders’
|
||||||||||||||||||||
Shares
|
Amount
|
of Par Value
|
Earnings
|
Income
|
Equity
|
|||||||||||||||||||
Balance, May 1, 2011
|
13,264,458 | $ | 663 | 50,681 | 28,997 | - | $ | 80,341 | ||||||||||||||||
Net income
|
- | - | - | 13,296 | - | 13,296 | ||||||||||||||||||
Stock-based compensation
|
- | - | 349 | - | - | 349 | ||||||||||||||||||
Unrealized gain on short-term investments
|
- | - | - | - | 16 | 16 | ||||||||||||||||||
Excess tax benefit related to stock
|
||||||||||||||||||||||||
based compensation
|
- | - | 64 | - | - | 64 | ||||||||||||||||||
Common stock repurchased
|
(624,127 | ) | (31 | ) | (5,353 | ) | (5,384 | ) | ||||||||||||||||
Fully vested common stock award
|
3,075 | - | - | - | - | - | ||||||||||||||||||
Common stock issued in connection
|
. | |||||||||||||||||||||||
with stock option plans
|
59,400 | 3 | 315 | - | - | 318 | ||||||||||||||||||
Balance, April 29, 2012 *
|
12,702,806 | 635 | 46,056 | 42,293 | 16 | 89,000 | ||||||||||||||||||
Net income
|
- | - | - | 3,524 | - | 3,524 | ||||||||||||||||||
Stock-based compensation
|
- | - | 70 | - | - | 70 | ||||||||||||||||||
Unrealized gains on short-term investments
|
- | - | - | - | 33 | 33 | ||||||||||||||||||
Excess tax benefit related to stock
|
||||||||||||||||||||||||
based compensation
|
- | - | 55 | - | - | 55 | ||||||||||||||||||
Common stock repurchased
|
(47,296 | ) | (2 | ) | (468 | ) | - | - | (470 | ) | ||||||||||||||
Dividends paid
|
- | - | - | (381 | ) | - | (381 | ) | ||||||||||||||||
Balance, July 29, 2012
|
12,655,510 | $ | 633 | 45,713 | 45,436 | 49 | $ | 91,831 | ||||||||||||||||
* Derived from audited financial statements.
|
||||||||||||||||||||||||
See accompanying notes to consolidated financial statements.
|
(dollars in thousands)
|
July 29, 2012
|
April 29, 2012
|
||||||
Customers
|
$ | 21,226 | $ | 26,100 | ||||
Allowance for doubtful accounts
|
(639 | ) | (567 | ) | ||||
Reserve for returns and allowances and discounts
|
(566 | ) | (478 | ) | ||||
$ | 20,021 | $ | 25,055 |
Three months ended
|
||||||||
(dollars in thousands)
|
July 29, 2012
|
July 31, 2011
|
||||||
Beginning balance
|
$ | (567 | ) | $ | (776 | ) | ||
Provision for bad debts
|
(41 | ) | 14 | |||||
Net write-offs, net of recoveries
|
(31 | ) | 40 | |||||
Ending balance
|
$ | (639 | ) | $ | (722 | ) |
Three months ended
|
||||||||
(dollars in thousands)
|
July 29, 2012
|
July 31, 2011
|
||||||
Beginning balance
|
$ | (478 | ) | $ | (577 | ) | ||
Provision for returns, allowances
|
||||||||
and discounts
|
(847 | ) | (628 | ) | ||||
Credits issued
|
759 | 655 | ||||||
Ending balance
|
$ | (566 | ) | $ | (550 | ) |
(dollars in thousands)
|
July 29, 2012
|
April 29, 2012
|
||||||
Raw materials
|
$ | 5,917 | $ | 5,534 | ||||
Work-in-process
|
2,511 | 3,631 | ||||||
Finished goods
|
35,624 | 27,208 | ||||||
$ | 44,052 | $ | 36,373 |
(dollars in thousands)
|
July 29, 2012
|
April 29, 2012
|
||||||
Cash surrender value – life insurance
|
$ | 1,327 | $ | 1,327 | ||||
Non-compete agreement, net
|
295 | 333 | ||||||
Other
|
268 | 247 | ||||||
$ | 1,890 | $ | 1,907 |
(dollars in thousands)
|
July 29, 2012
|
April 29, 2012
|
||||||
Compensation, commissions and related benefits
|
$ | 5,751 | $ | 7,293 | ||||
Interest
|
323 | 147 | ||||||
Other accrued expenses
|
2,292 | 1,881 | ||||||
$ | 8,366 | $ | 9,321 |
(dollars in thousands)
|
July 29, 2012
|
April 29, 2012
|
||||||
Unsecured senior term notes
|
$ | 8,800 | $ | 8,800 | ||||
Canadian government loan
|
266 | 323 | ||||||
9,066 | 9,123 | |||||||
Current maturities of long-term debt
|
(2,400 | ) | (2,404 | ) | ||||
Long-term debt, less current maturities of long-term debt
|
$ | 6,666 | $ | 6,719 |
Fair value measurements at July 29, 2012 using:
|
||||||||||||||||
Quoted prices in
active markets
for identical
assets
|
Significant other
observable inputs
|
Significant
unobservable
inputs
|
||||||||||||||
(amounts in thousands)
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Assets:
|
||||||||||||||||
Low Duration Bond Fund
|
$ | 2,051 | N/A | N/A | $ | 2,051 | ||||||||||
Limited Term Bond Fund
|
2,063 | N/A | N/A | 2,063 | ||||||||||||
Intermediate Term Bond Fund
|
1,086 | N/A | N/A | 1,086 |
Fair value measurements at April 29, 2012 using:
|
||||||||||||||||
Quoted prices in
active markets
for identical
assets
|
Significant other
observable inputs
|
Significant
unobservable
inputs
|
||||||||||||||
(amounts in thousands)
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Assets:
|
||||||||||||||||
Low Duration Bond Fund
|
$ | 2,049 | N/A | N/A | $ | 2,049 | ||||||||||
Limited Term Bond Fund
|
2,037 | N/A | N/A | 2,037 | ||||||||||||
Intermediate Term Bond Fund
|
1,058 | N/A | N/A | 1,058 |
Three months ended
|
||||||||
(dollars in thousands)
|
July 29, 2012
|
July 31, 2011
|
||||||
Interest
|
$ | 14 | $ | - | ||||
Net income tax payments
|
1,026 | 891 |
Three months ended
|
||||||||
(amounts in thousands)
|
July 29, 2012
|
July 31, 2011
|
||||||
Weighted average common shares outstanding, basic
|
12,551 | 13,061 | ||||||
Dilutive effect of stock-based compensation
|
160 | 144 | ||||||
Weighted average common shares outstanding, diluted
|
12,711 | 13,205 |
Three months ended
|
||||||||
(dollars in thousands)
|
July 29, 2012
|
July 31, 2011
|
||||||
Net sales:
|
||||||||
Mattress Fabrics
|
$ | 37,964 | $ | 32,170 | ||||
Upholstery Fabrics
|
31,220 | 28,100 | ||||||
$ | 69,184 | $ | 60,270 | |||||
Gross profit:
|
||||||||
Mattress Fabrics
|
$ | 7,622 | $ | 5,137 | ||||
Upholstery Fabrics
|
5,498 | 3,741 | ||||||
$ | 13,120 | $ | 8,878 | |||||
Selling, general, and administrative expenses:
|
||||||||
Mattress Fabrics
|
$ | 2,391 | $ | 1,992 | ||||
Upholstery Fabrics
|
3,340 | 2,766 | ||||||
Total segment selling, general, and
|
||||||||
administrative expenses
|
5,731 | 4,758 | ||||||
Unallocated corporate expenses
|
1,910 | 999 | ||||||
$ | 7,641 | $ | 5,757 | |||||
Income from operations:
|
||||||||
Mattress Fabrics
|
$ | 5,230 | $ | 3,146 | ||||
Upholstery Fabrics
|
2,159 | 974 | ||||||
Total segment income from operations
|
7,389 | 4,120 | ||||||
Unallocated corporate expenses
|
(1,910 | ) | (999 | ) | ||||
Total income from operations
|
5,479 | 3,121 | ||||||
Interest expense
|
(190 | ) | (220 | ) | ||||
Interest income
|
127 | 129 | ||||||
Other expense
|
(44 | ) | (65 | ) | ||||
Income before income taxes
|
$ | 5,372 | $ | 2,965 |
(dollars in thousands)
|
July 29, 2012
|
April 29, 2012
|
||||||
Segment assets:
|
||||||||
Mattress Fabrics
|
||||||||
Current assets (1)
|
$ | 36,735 | $ | 29,909 | ||||
Assets held for sale
|
15 | 15 | ||||||
Non-compete agreements, net
|
295 | 333 | ||||||
Goodwill
|
11,462 | 11,462 | ||||||
Property, plant and equipment (2)
|
29,114 | 29,237 | ||||||
Total mattress fabrics assets
|
77,621 | 70,956 | ||||||
Upholstery Fabrics
|
||||||||
Current assets (1)
|
27,338 | 31,519 | ||||||
Property, plant and equipment (3)
|
1,062 | 1,124 | ||||||
Total upholstery fabrics assets
|
28,400 | 32,643 | ||||||
Total segment assets
|
106,021 | 103,599 | ||||||
Non-segment assets:
|
||||||||
Cash and cash equivalents
|
21,889 | 25,023 | ||||||
Short-term investments
|
5,200 | 5,941 | ||||||
Deferred income taxes
|
5,052 | 5,672 | ||||||
Other current assets
|
2,563 | 1,989 | ||||||
Property, plant and equipment (4)
|
840 | 918 | ||||||
Other assets
|
1,595 | 1,574 | ||||||
Total assets
|
$ | 143,160 | $ | 144,716 |
Three months ended
|
||||||||
(dollars in thousands)
|
July 29, 2012
|
July 31, 2011
|
||||||
Capital expenditures (5):
|
||||||||
Mattress Fabrics
|
$ | 969 | $ | 1,205 | ||||
Upholstery Fabrics
|
8 | 292 | ||||||
Unallocated Corporate
|
14 | 9 | ||||||
Total capital expenditures
|
$ | 991 | $ | 1,506 | ||||
Depreciation expense:
|
||||||||
Mattress Fabrics
|
$ | 1,092 | $ | 1,029 | ||||
Upholstery Fabrics
|
162 | 158 | ||||||
Total depreciation expense
|
$ | 1,254 | $ | 1,187 |
(1)
|
Current assets represent accounts receivable and inventory for the respective segment.
|
(2)
|
The $29.1 million at July 29, 2012, represents property, plant, and equipment of $21.3 million and $7.8 million located in the U.S. and Canada, respectively. The $29.2 million at April 29, 2012, represents property, plant, and equipment of $21.2 million and $8.0 million located in the U.S. and Canada, respectively.
|
(3)
|
The $1.1 million at July 29, 2012, represents property, plant, and equipment located in the U.S. of $788, located in China of $175, and located in Poland of $99. The $1.1 million at April 29, 2012, represents property, plant, and equipment located in the U.S. of $837, located in China of $183, and located in Poland of $104.
|
(4)
|
The $840 and $918 at July 29, 2012 and April 29, 2012, respectively, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by both the mattress and upholstery fabric segments. Property, plant, and equipment associated with corporate are located in the U.S.
|
(5)
|
Capital expenditure amounts are stated on the accrual basis. See Consolidated Statement of Cash Flows for capital expenditure amounts on a cash basis.
|
|
·
|
The income tax rate increased 5% for an increase in unrecognized tax benefits.
|
|
·
|
The income tax rate was reduced by 5% for taxable income subject to lower statutory income tax rates in foreign jurisdictions (Canada and China) compared with the statutory income tax rate of 34% for the United States.
|
|
·
|
The income tax rate was increased by 0.4% for stock-based compensation and other miscellaneous items.
|
|
·
|
The income tax rate increased 11% for an increase in unrecognized tax benefits.
|
|
·
|
The income tax rate was reduced by 7% for taxable income subject to lower statutory income tax rates in foreign jurisdictions (Canada and China) compared with the statutory income tax rate of 34% for the United States.
|
|
·
|
The income tax rate was increased by 0.6% for stock-based compensation and other miscellaneous items.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
CULP, INC.
|
||||||||||||||||||||
STATEMENTS OF OPERATIONS BY SEGMENT
|
||||||||||||||||||||
FOR THE THREE MONTHS ENDED JULY 29, 2012 AND JULY 31, 2011
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||||||
THREE MONTHS ENDED
|
||||||||||||||||||||
Amounts
|
Percent of Total Sales
|
|||||||||||||||||||
July 29,
|
July 31,
|
% Over
|
July 29,
|
July 31,
|
||||||||||||||||
Net Sales by Segment
|
2012
|
2011
|
(Under)
|
2012
|
2011
|
|||||||||||||||
Mattress Fabrics
|
$ | 37,964 | 32,170 | 18.0 | % | 54.9 | % | 53.4 | % | |||||||||||
Upholstery Fabrics
|
31,220 | 28,100 | 11.1 | % | 45.1 | % | 46.6 | % | ||||||||||||
Net Sales
|
$ | 69,184 | 60,270 | 14.8 | % | 100.0 | % | 100.0 | % | |||||||||||
Gross Profit by Segment
|
Gross Profit Margin
|
|||||||||||||||||||
Mattress Fabrics
|
$ | 7,622 | 5,137 | 48.4 | % | 20.1 | % | 16.0 | % | |||||||||||
Upholstery Fabrics
|
5,498 | 3,741 | 47.0 | % | 17.6 | % | 13.3 | % | ||||||||||||
Gross Profit
|
13,120 | 8,878 | 47.8 | % | 19.0 | % | 14.7 | % | ||||||||||||
Selling, General and Administrative expenses by Segment
|
Percent of Sales
|
|||||||||||||||||||
Mattress Fabrics
|
$ | 2,391 | 1,992 | 20.0 | % | 6.3 | % | 6.2 | % | |||||||||||
Upholstery Fabrics
|
3,340 | 2,766 | 20.8 | % | 10.7 | % | 9.8 | % | ||||||||||||
Unallocated Corporate expenses
|
1,910 | 999 | 91.2 | % | 2.8 | % | 1.7 | % | ||||||||||||
Selling, general, and administrative expenses
|
7,641 | 5,757 | 32.7 | % | 11.0 | % | 9.6 | % | ||||||||||||
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
|||||||||||||||||||
Mattress Fabrics
|
$ | 5,230 | 3,146 | 66.2 | % | 13.8 | % | 9.8 | % | |||||||||||
Upholstery Fabrics
|
2,159 | 974 | 121.7 | % | 6.9 | % | 3.5 | % | ||||||||||||
Unallocated corporate expenses
|
(1,910 | ) | (999 | ) | 91.2 | % | (2.8 | ) % | (1.7 | ) % | ||||||||||
Operating income
|
5,479 | 3,121 | 75.6 | % | 7.9 | % | 5.2 | % | ||||||||||||
Depreciation by Segment
|
||||||||||||||||||||
Mattress Fabrics
|
$ | 1,092 | 1,029 | 6.1 | % | |||||||||||||||
Upholstery Fabrics
|
162 | 158 | 2.5 | % | ||||||||||||||||
Subtotal
|
1,254 | 1,187 | 5.6 | % |
|
·
|
The income tax rate increased 5% for an increase in unrecognized tax benefits.
|
|
·
|
The income tax rate was reduced by 5% for taxable income subject to lower statutory income tax rates in foreign jurisdictions (Canada and China) compared with the statutory income tax rate of 34% for the United States.
|
|
·
|
The income tax rate was increased by 0.4% for stock-based compensation and other miscellaneous items.
|
|
·
|
The income tax rate increased 11% for an increase in unrecognized tax benefits.
|
|
·
|
The income tax rate was reduced by 7% for taxable income subject to lower statutory income tax rates in foreign jurisdictions (Canada and China) compared with the statutory income tax rate of 34% for the United States.
|
|
·
|
The income tax rate was increased by 0.6% for stock-based compensation and other miscellaneous items.
|
Period
|
(a)
Total Number of Shares Purchased
|
(b)
Average Price Paid per Share
|
(c)
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
(d)
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1)
|
||||||||||||
April 30, 2012 to June 3, 2012
|
- | - | - | $1,617,983 | ||||||||||||
June 4, 2012 to July 1, 2012
|
20,910 | $9.92 | 20,910 | $4,792,413 | ||||||||||||
July 2, 2012 to July 29, 2012
|
26,386 | $9.99 | 26,386 | $4,528,740 | ||||||||||||
Total
|
47,296 | $9.96 | 47,296 | $4,528,740 |
|
(1)
|
During fiscal 2012, our board of directors authorized the expenditure of up to $7.0 million for the repurchase of our common stock. The amount determined in column (d) for the period April 30, 2012 through June 3, 2012 is based on the $7.0 million authorized amount in fiscal 2012. On June 13, 2012, we announced that our board of directors approved a new authorization for us to acquire up to $5.0 million of our common stock. This action replaced the authorization to acquire up to $7.0 million of our common stock in fiscal 2012, of which $5.4 million was used during the fiscal year. The amounts determined in column (d) for the periods June 4, 2012 through July 1, 2012 and July 2, 2012 through July 29, 2012 are based on the $5.0 million that was authorized on June 13, 2012.
|
The following exhibits are submitted as part of this report. | |
3(i)
|
Articles of Incorporation of the company, as amended, were filed as Exhibit 3(i) to the company’s Form 10-Q for the quarter ended July 28, 2002, filed September 11, 2002 (Commission File No. 001-12597), and are incorporated herein by reference.
|
3 (ii)
|
Restated and Amended Bylaws of the company, as amended November 12, 2007, were filed as Exhibit 3.1 to the company’s Form 8-K dated November 12, 2007, and incorporated herein by reference.
|
10.1
|
Form of restricted stock unit agreement for restricted stock units granted pursuant to the 2007 Equity Incentive Plan.
|
31.1
|
Certification of Chief Executive Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002.
|
31.2
|
Certification of Chief Financial Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002.
|
32.1
|
Certification of Chief Executive Officer Pursuant to Section 906 of Sarbanes-Oxley Act of 2002.
|
32.2
|
Certification of Chief Financial Officer Pursuant to Section 906 of Sarbanes-Oxley Act of 2002.
|
101.INS **
|
XBRL Instance Document
|
101.SCH **
|
XBRL Taxonomy Extension Schema Document
|
101.CAL **
|
XBRL Taxonomy Extension Calculation Linkbase Document |
101.LAB **
|
XBRL Taxonomy Extension Label Linkbase Document |
101.PRE **
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
101.DEF **
|
XBRL Taxonomy Extension Definition Linkbase Document
|
** In accordance with Rule 406T of Regulation S-T, this interactive data file is deemed not filed or part of the registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections. |
CULP, INC.
|
||
(Registrant)
|
||
Date: September 7, 2012
|
By:
|
/s/ Kenneth R. Bowling
|
Kenneth R. Bowling
|
||
Vice President and Chief Financial Officer
|
||
(Authorized to sign on behalf of the registrant
|
||
and also signing as principal financial officer)
|
||
By:
|
/s/ Thomas B. Gallagher, Jr.
|
|
Thomas B. Gallagher, Jr.
|
||
Corporate Controller
|
||
(Authorized to sign on behalf of the registrant
|
||
and also signing as principal accounting officer)
|
|
10.1
|
Form of restricted stock unit agreement for restricted stock units granted pursuant to the 2007 Equity Incentive Plan.
|
|
31.1
|
Certification of Chief Executive Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002.
|
|
31.2
|
Certification of Chief Financial Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002.
|
|
32.1
|
Certification of Chief Executive Officer Pursuant to Section 906 of Sarbanes-Oxley Act of 2002.
|
|
32.2
|
Certification of Chief Financial Officer Pursuant to Section 906 of Sarbanes-Oxley Act of 2002.
|
|
101.INS
|
XBRL Instance Document
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
Level
|
Cumulative
Operating Income
|
Number of Shares
Vested
|
Below Threshold
|
Below $__________
|
0
|
Threshold
|
$________________
|
__
|
Target
|
$________________
|
__
|
Superior
|
$________________
|
__
|
Maximum
|
$________________
|
__
|
CULP, INC., | ||||
a North Carolina corporation | ||||
|
By:
|
|||
Name: | ||||
Title: | ||||
RECIPIENT
|
||||
1.
|
I have reviewed this Form 10-Q of Culp, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
/s/ Franklin N. Saxon | |
Franklin N. Saxon
|
|||
President and Chief Executive Officer
|
|||
(Principal Executive Officer) |
1.
|
I have reviewed this Form 10-Q of Culp, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
/s/ Kenneth R. Bowling | |
Kenneth R. Bowling
|
|||
Vice President and Chief Financial Officer
|
|||
(Principal Financial Officer) |
Inventories (Detail) (USD $)
In Thousands, unless otherwise specified |
Jul. 29, 2012
|
Apr. 29, 2012
|
Jul. 31, 2011
|
|||
---|---|---|---|---|---|---|
Schedule of Inventory [Line Items] | ||||||
Raw materials | $ 5,917 | $ 5,534 | ||||
Work-in-process | 2,511 | 3,631 | ||||
Finished goods | 35,624 | 27,208 | ||||
Inventories | $ 44,052 | $ 36,373 | [1] | $ 34,858 | ||
|
Segment Information - Balance Sheet Information by Operating Segments (Parenthetical) (Detail) (USD $)
In Thousands, unless otherwise specified |
Jul. 29, 2012
|
Apr. 29, 2012
|
Jul. 31, 2011
|
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Segment Reporting Information [Line Items] | |||||||||||||
Property, plant and equipment | $ 31,016 | $ 31,279 | [1] | $ 30,615 | |||||||||
Mattress Fabrics [Member]
|
|||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Property, plant and equipment | 29,114 | [2] | 29,237 | [2] | |||||||||
Mattress Fabrics [Member] | United States [Member]
|
|||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Property, plant and equipment | 21,300 | 21,200 | |||||||||||
Mattress Fabrics [Member] | Canada [Member]
|
|||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Property, plant and equipment | 7,800 | 8,000 | |||||||||||
Upholstery Fabrics [Member]
|
|||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Property, plant and equipment | 1,062 | [3] | 1,124 | [3] | |||||||||
Upholstery Fabrics [Member] | United States [Member]
|
|||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Property, plant and equipment | 788 | 837 | |||||||||||
Upholstery Fabrics [Member] | China [Member]
|
|||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Property, plant and equipment | 175 | 183 | |||||||||||
Upholstery Fabrics [Member] | Poland [Member]
|
|||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Property, plant and equipment | 99 | 104 | |||||||||||
Unallocated Amount to Segment [Member]
|
|||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Property, plant and equipment | 840 | [4] | 918 | [4] | |||||||||
Unallocated Amount to Segment [Member] | United States [Member]
|
|||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Property, plant and equipment | $ 840 | $ 918 | |||||||||||
|
Cash Flow Information (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Jul. 29, 2012
|
Jul. 31, 2011
|
|
Cash Flow Supplemental Disclosures [Line Items] | ||
Interest | $ 14 | |
Net income tax payments | $ 1,026 | $ 891 |
Income Taxes (Detail) (USD $)
|
3 Months Ended | 3 Months Ended | 36 Months Ended | 3 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 29, 2012
|
Jul. 31, 2011
|
Apr. 29, 2012
|
Jul. 29, 2012
Deferred Income Taxes Net Noncurrent [Member]
|
Jul. 29, 2012
Income Taxes Payable - Long-Term [Member]
|
Jul. 29, 2012
United States [Member]
|
Apr. 29, 2012
United States [Member]
|
Jul. 29, 2012
China [Member]
|
Apr. 29, 2012
China [Member]
|
Jul. 29, 2012
Poland [Member]
|
Apr. 29, 2012
Poland [Member]
|
Jul. 29, 2012
Canada [Member]
|
Apr. 29, 2012
Canada [Member]
|
Jul. 29, 2012
Canada and China [Member]
|
Jul. 31, 2011
Canada and China [Member]
|
||||
Income Taxes [Line Items] | ||||||||||||||||||
Income tax rate | 34.40% | 38.60% | ||||||||||||||||
Income taxes | $ 1,848,000 | $ 1,145,000 | ||||||||||||||||
Statutory rate | 34.00% | 34.00% | ||||||||||||||||
Increase in income tax rate from an increase in unrecognized tax benefits | 5.00% | 11.00% | ||||||||||||||||
Reduction in income tax rate from the lower statutory income tax rates in foreign jurisdictions compared with the U.S statutory income tax rate | (5.00%) | (7.00%) | (5.00%) | (7.00%) | ||||||||||||||
Increase in income tax rate for stock-based compensation and other miscellaneous items | 0.40% | 0.60% | ||||||||||||||||
Valuation allowance | 12,800,000 | 12,800,000 | ||||||||||||||||
Operating loss carryforwards | 59,900,000 | |||||||||||||||||
Income before income taxes | 5,372,000 | 2,965,000 | 1,200,000 | 11,900,000 | ||||||||||||||
Current deferred tax asset | 2,337,000 | 1,237,000 | 2,467,000 | [1] | 1,900,000 | 2,100,000 | 387,000 | 405,000 | ||||||||||
Non-current deferred tax asset | 2,715,000 | 2,191,000 | 3,205,000 | [1] | 1,600,000 | 2,100,000 | 929,000 | 1,000,000 | 169,000 | 115,000 | ||||||||
Non-current deferred tax liability | 705,000 | 596,000 | 705,000 | [1] | 705,000 | 705,000 | ||||||||||||
Unrecognized tax benefits | 12,600,000 | 8,500,000 | 4,100,000 | |||||||||||||||
Unrecognized tax benefits that would favorably impact effective income tax rate if recognized | 4,100,000 | |||||||||||||||||
Expected increase in unrecognized tax benefits related to double taxation under applicable tax treaties with foreign tax jurisdictions | $ 819,000 | |||||||||||||||||
|
Segment Information (Tables)
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 29, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Operating Segments Information | Financial
information for the company’s operating segments
follows:
Balance
sheet information for the company’s operating segments
follow:
|
Commitments and Contingencies (Detail) (USD $)
|
3 Months Ended | 3 Months Ended | |||
---|---|---|---|---|---|
Jul. 29, 2012
Joint Product Development, Sales and Marketing Agreement on May 21, 2012 [Member]
Culp Lava Applied Sewn Solutions [Member]
Facility
Employee
|
Jul. 29, 2012
Mattress Fabrics [Member]
Purchase Commitment for Equipment [Member]
|
Apr. 29, 2012
Mattress Fabrics [Member]
Purchase Commitment for Equipment [Member]
|
Jul. 29, 2012
Pending Litigation [Member]
Environmental Issue [Member]
|
Jul. 29, 2012
Pending Litigation [Member]
Environmental Issue [Member]
Site of former manufacturing plant in West Hazleton, Pennsylvania [Member]
|
|
Commitments and Contingencies Disclosure [Line Items] | |||||
Lawsuit filing date | February 5, 2008 | ||||
Actions taken by court which impacted the lawsuit | The lawsuit involves court judgments that have been entered against the plaintiffs and against defendant Chromatex, Inc. requiring them to pay costs incurred by the United States Environmental Protection Agency ("USEPA") responding to environmental contamination at the Site, in amounts approximating $8.6 million, plus unspecified future environmental costs. | ||||
Amount of judgment against plaintiffs for which recovery is being sought from defendants | $ 8,600,000 | ||||
Site maximum loss exposure representing contamination clean up costs incurred by the United States Environmental Protection Agency | 13,000,000 | ||||
Damages sought by plaintiffs | Costs incurred by the United States Environmental Protection Agency ("USEPA") responding to environmental contamination at the Site, in amounts approximating $8.6 million, plus unspecified future environmental costs. | ||||
Open purchase commitments | 766,000 | 1,200,000 | |||
Number of manufacturing facilities | 2 | ||||
Projected capital investment to start the new business | $ 1,000,000 | ||||
Period of capital investment in starting a new business | 4 years | ||||
Planned number of employees to start the new business | 129 |
Accounts Receivable (Tables)
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 29, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Accounts Receivable | A
summary of accounts receivable follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the Activity in the Allowance for Doubtful Accounts | A
summary of the activity in the allowance for doubtful accounts
follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the Activity in the Allowance for Returns and Allowances and Discounts Accounts | A
summary of the activity in the allowance for returns and allowances
and discounts accounts follows:
|
Net Income Per Share - Narrative (Detail)
|
3 Months Ended | |
---|---|---|
Jul. 29, 2012
|
Jul. 31, 2011
|
|
Earnings Per Share Disclosure [Line Items] | ||
Number of shares of common stock excluded from the computation of basic net income per share | 123,335 | 185,000 |
Stock option awards [Member]
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Earnings Per Share Disclosure [Line Items] | ||
Number of common stock options excluded from the computation of diluted net income per share | 24,750 |
Accrued Expenses (Detail) (USD $)
In Thousands, unless otherwise specified |
Jul. 29, 2012
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Apr. 29, 2012
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Jul. 31, 2011
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Schedule of Accrued Liabilities [Line Items] | ||||||
Compensation, commissions and related benefits | $ 5,751 | $ 7,293 | ||||
Interest | 323 | 147 | ||||
Other accrued expenses | 2,292 | 1,881 | ||||
Accrued expenses | $ 8,366 | $ 9,321 | [1] | $ 5,862 | ||
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Accounts Receivable - Allowance for Doubtful Accounts (Detail) (Allowance for doubtful accounts [Member], USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
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Jul. 29, 2012
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Jul. 31, 2011
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Allowance for doubtful accounts [Member]
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Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Beginning balance | $ (567) | $ (776) |
Provision for bad debts | (41) | 14 |
Net write-offs, net of recoveries | (31) | 40 |
Ending balance | $ (639) | $ (722) |
Segment Information - Balance Sheet Information by Operating Segments (Detail) (USD $)
In Thousands, unless otherwise specified |
Jul. 29, 2012
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Apr. 29, 2012
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Jul. 31, 2011
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May 01, 2011
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Segment Reporting Information [Line Items] | ||||||||||||||||
Assets held for sale | $ 15 | $ 15 | [1] | $ 75 | ||||||||||||
Goodwill | 11,462 | 11,462 | [1] | 11,462 | ||||||||||||
Property, plant and equipment | 31,016 | 31,279 | [1] | 30,615 | ||||||||||||
Total assets | 143,160 | 144,716 | [1] | 129,307 | ||||||||||||
Cash and cash equivalents | 21,889 | 25,023 | [1] | 14,570 | 23,181 | |||||||||||
Short-term investments | 5,200 | 5,941 | [1] | 10,443 | ||||||||||||
Other current assets | 2,563 | 1,989 | [1] | 2,862 | ||||||||||||
Other assets | 1,890 | 1,907 | [1] | 2,010 | ||||||||||||
Mattress Fabrics [Member]
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Segment Reporting Information [Line Items] | ||||||||||||||||
Current assets | 36,735 | [2] | 29,909 | [2] | ||||||||||||
Assets held for sale | 15 | 15 | ||||||||||||||
Non-compete agreements, net | 295 | 333 | ||||||||||||||
Goodwill | 11,462 | 11,462 | ||||||||||||||
Property, plant and equipment | 29,114 | [3] | 29,237 | [3] | ||||||||||||
Total assets | 77,621 | 70,956 | ||||||||||||||
Upholstery Fabrics [Member]
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Segment Reporting Information [Line Items] | ||||||||||||||||
Current assets | 27,338 | [2] | 31,519 | [2] | ||||||||||||
Property, plant and equipment | 1,062 | [4] | 1,124 | [4] | ||||||||||||
Total assets | 28,400 | 32,643 | ||||||||||||||
Total reportable segments [Member]
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Segment Reporting Information [Line Items] | ||||||||||||||||
Total assets | 106,021 | 103,599 | ||||||||||||||
Unallocated Amount to Segment [Member]
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Segment Reporting Information [Line Items] | ||||||||||||||||
Property, plant and equipment | 840 | [5] | 918 | [5] | ||||||||||||
Cash and cash equivalents | 21,889 | 25,023 | ||||||||||||||
Short-term investments | 5,200 | 5,941 | ||||||||||||||
Deferred income taxes | 5,052 | 5,672 | ||||||||||||||
Other current assets | 2,563 | 1,989 | ||||||||||||||
Other assets | $ 1,595 | $ 1,574 | ||||||||||||||
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Fair Value of Financial Instruments - Narrative (Detail) (Short-term investments [Member], USD $)
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Jul. 29, 2012
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Apr. 29, 2012
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Short-term investments [Member]
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Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term bond funds | $ 5,200,000 | $ 5,100,000 |
Unrealized gain on short-term bond funds | $ 49,000 | $ 16,000 |
Stock-Based Compensation
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3 Months Ended |
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Jul. 29, 2012
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Stock-Based Compensation |
3. Stock-Based Compensation
Incentive Stock Option Awards
We
did not grant any incentive stock option awards during the first
quarter of fiscal 2013.
At
July 29, 2012, options to purchase 209,475 shares of common stock
were outstanding, had a weighted average exercise price of $7.22
per share, and a weighted average contractual term of 4.9 years. At
July 29, 2012, the aggregate intrinsic value for options
outstanding was $614,000.
At
July 29, 2012, outstanding options to purchase 188,475 shares of
common stock were exercisable, had a weighted average exercise
price of $7.68 per share, and a weighted average contractual term
of 4.7 years. At July 29, 2012, the aggregate intrinsic value for
options exercisable was $466,000.
The
aggregate intrinsic value for options exercised during the first
quarter of fiscal 2012 was $157,000. No options were exercised
during the first quarter of fiscal 2013.
The
remaining unrecognized compensation cost related to incentive stock
option awards at July 29, 2012, was $37,000 which is expected to be
recognized over a weighted average period of 1.1
years.
We
recorded $25,000 and $34,000 of compensation expense on incentive
stock option grants within selling, general, and administrative
expense for the three-month periods ended July 29, 2012, and July
31, 2011, respectively.
Time Vested Restricted Stock Awards
We
did not grant any time vested restricted stock awards during the
first quarter of fiscal 2013.
We
recorded $28,000 and $43,000 of compensation expense within
selling, general, and administrative expense for time vested
restricted stock awards for the three-month periods ending July 29,
2012 and July 31, 2011 respectively.
At
July 29, 2012, there were 123,335 shares of time vested restricted
stock outstanding and unvested. Of the 123,335 shares outstanding
and unvested, 70,000 shares (granted on January 7, 2009) vest in
equal installments on May 1, 2013 and 2014, respectively. The
remaining 53,335 shares (granted on July 1, 2009) vest in equal
installments on July 1, 2013, and 2014, respectively. At July 29,
2012, the weighted average fair value of these outstanding and
unvested shares was $3.71 per share.
During
the first quarter of fiscal 2013, 61,665 shares of time vested
restricted stock vested and had a weighted average fair value of
$232,000 or $3.76 per share.
At
July 29, 2012, the remaining unrecognized compensation cost related
to the unvested restricted stock awards was $130,000, which is
expected to be recognized over a weighted average vesting period of
1.5 years.
Performance Based Restricted Stock Units
On
July 11, 2012, certain key members of management were granted
performance based restricted common stock units which could earn up
to 120,000 shares of common stock if certain performance targets
are met as defined in the related restricted stock unit agreement.
These awards were valued based on the fair market value on the date
of grant. The fair value of these awards were $10.21, which
represents the closing price of our common stock on the date of
grant. The vesting of these awards are over the requisite service
period of three years.
The
company recorded compensation expense of $17,000 within selling,
general, and administrative expense for performance based
restricted stock units for the three-month period ending July 29,
2012. No compensation expense was recorded for performance based
restricted stock units for the three-month period ending July 31,
2011, as the performance based restricted stock units granted in
fiscal 2009 were fully vested in fiscal 2011 and no performance
based restricted stock units were granted in fiscal years 2010
through 2012. Compensation cost is recorded based on an assessment
each reporting period of the probability if certain performance
goals will be met during the vesting period. If performance goals
are not probable of occurrence, no compensation cost will be
recognized and any recognized compensation cost would be
reversed.
As
of July 29, 2012, the remaining unrecognized compensation cost
related to the performance based restricted stock units was
$596,000, which is expected to be recognized over a weighted
average vesting period of 3.0 years.
Common Stock Awards
We
did not grant any common stock awards during the first quarter of
fiscal 2013.
Other Share-Based Arrangements
Effective
May 2, 2011, we entered into an agreement in which we granted a
non-employee a stock appreciation right that is indexed on 70,000
shares of our common stock. This agreement requires us to settle in
cash an amount equal to $35,000, plus the excess, if any, over a
stock appreciation right value of $700,000 at May 2, 2011. This
stock appreciation right value of $700,000 represents the 70,000
indexed shares of common stock noted above measured at the closing
price per share of $10 at May 2, 2011. The cash settlement in
connection with the stock appreciation right value would represent
the difference between a stock appreciation right value that is
indexed on the 70,000 shares of common stock noted above and based
on the highest closing price per share of our common stock for the
period May 2, 2011 through June 30, 2012 (limited to $12 per share)
and the $700,000 stock appreciation right value at May 2, 2011.
This award will vest over the period May 2, 2011 through June 30,
2012 as this represents the non-employee’s required service
period.
During
the first quarter of fiscal 2013, this award fully vested and was
paid out at a fair value totaling $174,000.
Compensation
expense associated with this agreement was $40,000 and $8,000 for
the three-months ended July 29, 2012 and July 31, 2011,
respectively.
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