NORTH CAROLINA
|
56-1001967
|
(State or other jurisdiction of
|
(I.R.S. Employer Identification No.)
|
incorporation or other organization)
|
|
1823 Eastchester Drive
|
|
High Point, North Carolina
|
27265-1402
|
(Address of principal executive offices)
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(zip code)
|
Large accelerated filer o | Accelerated filer x | Non-accelerated filer o | Smaller Reporting Company o |
Page
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Part I - Financial Statements | ||
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-25
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I-26
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I-41
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I-41
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Part II - Other Information | ||
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
|
CONSOLIDATED STATEMENTS OF NET INCOME
|
|||||||||
FOR THE THREE AND SIX MONTHS ENDED OCTOBER 28, 2012 AND OCTOBER 30, 2011
|
|||||||||
UNAUDITED
|
|||||||||
(Amounts in Thousands, Except for Per Share Data)
|
|||||||||
THREE MONTHS ENDED
|
|||||||||
October 28,
|
October 30,
|
||||||||
2012
|
2011
|
||||||||
Net sales
|
$ | 65,560 | 58,013 | ||||||
Cost of sales
|
53,683 | 49,367 | |||||||
Gross profit
|
11,877 | 8,646 | |||||||
Selling, general and
|
|||||||||
administrative expenses
|
7,209 | 5,720 | |||||||
Income from operations
|
4,668 | 2,926 | |||||||
Interest expense
|
156 | 188 | |||||||
Interest income
|
(96 | ) | (110 | ) | |||||
Other expense (income)
|
76 | (15 | ) | ||||||
Income before income taxes
|
4,532 | 2,863 | |||||||
Income taxes
|
(3,736 | ) | (3,389 | ) | |||||
Net income
|
$ | 8,268 | 6,252 | ||||||
Net income per share, basic
|
$ | 0.68 | 0.49 | ||||||
Net income per share, diluted
|
0.67 | 0.49 | |||||||
Average shares outstanding, basic
|
12,191 | 12,733 | |||||||
Average shares outstanding, diluted
|
12,348 | 12,871 | |||||||
SIX MONTHS ENDED
|
|||||||||
October 28,
|
October 30,
|
||||||||
2012 | 2011 | ||||||||
Net sales
|
$ | 134,744 | 118,283 | ||||||
Cost of sales
|
109,746 | 100,759 | |||||||
Gross profit
|
24,998 | 17,524 | |||||||
Selling, general and
|
|||||||||
administrative expenses
|
14,850 | 11,477 | |||||||
Income from operations
|
10,148 | 6,047 | |||||||
Interest expense
|
346 | 409 | |||||||
Interest income
|
(222 | ) | (238 | ) | |||||
Other expense
|
121 | 49 | |||||||
Income before income taxes
|
9,903 | 5,827 | |||||||
Income taxes
|
(1,889 | ) | (2,244 | ) | |||||
Net income
|
$ | 11,792 | 8,071 | ||||||
Net income per share, basic
|
$ | 0.95 | 0.63 | ||||||
Net income per share, diluted
|
0.94 | 0.62 | |||||||
Average shares outstanding, basic
|
12,371 | 12,898 | |||||||
Average shares outstanding, diluted
|
12,541 | 13,025 | |||||||
See accompanying notes to consolidated financial statements.
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
||||||||
FOR THE THREE AND SIX MONTHS ENDED OCTOBER 28, 2012 AND OCTOBER 30, 2011
|
||||||||
(UNAUDITED)
|
||||||||
THREE MONTHS ENDED
|
||||||||
October 28,
|
October 30,
|
|||||||
2012
|
2011
|
|||||||
Net income
|
$ | 8,268 | $ | 6,252 | ||||
Other comprehensive income (loss)
|
||||||||
Unrealized gains (losses) on short-term investments
|
11 | (8 | ) | |||||
Total other comprehensive income (loss)
|
11 | (8 | ) | |||||
Comprehensive income
|
$ | 8,279 | $ | 6,244 | ||||
SIX MONTHS ENDED
|
||||||||
October 28,
|
October 30,
|
|||||||
2012 | 2011 | |||||||
Net income
|
$ | 11,792 | $ | 8,071 | ||||
Other comprehensive income
|
||||||||
Unrealized gains on short-term investments
|
44 | 7 | ||||||
Total other comprehensive income
|
44 | 7 | ||||||
Comprehensive income
|
$ | 11,836 | $ | 8,078 | ||||
See accompanying notes to consolidated financial statements.
|
CONSOLIDATED BALANCE SHEETS
|
||||||||||||
OCTOBER 28, 2012, OCTOBER 30, 2011 AND APRIL 29, 2012
|
||||||||||||
UNAUDITED
|
||||||||||||
(Amounts in Thousands)
|
||||||||||||
October 28,
|
October 30
|
* April 29,
|
||||||||||
2012
|
2011
|
2012
|
||||||||||
Current assets:
|
||||||||||||
Cash and cash equivalents
|
$ | 23,464 | 13,795 | 25,023 | ||||||||
Short-term investments
|
5,241 | 10,482 | 5,941 | |||||||||
Accounts receivable, net
|
20,678 | 16,241 | 25,055 | |||||||||
Inventories
|
38,261 | 33,776 | 36,373 | |||||||||
Deferred income taxes
|
4,470 | 2,659 | 2,467 | |||||||||
Assets held for sale
|
- | 75 | 15 | |||||||||
Income taxes receivable
|
- | 79 | - | |||||||||
Other current assets
|
1,640 | 1,602 | 1,989 | |||||||||
Total current assets
|
93,754 | 78,709 | 96,863 | |||||||||
Property, plant and equipment, net
|
30,621 | 30,431 | 31,279 | |||||||||
Goodwill
|
11,462 | 11,462 | 11,462 | |||||||||
Deferred income taxes
|
4,738 | 4,540 | 3,205 | |||||||||
Other assets
|
1,868 | 1,982 | 1,907 | |||||||||
Total assets
|
$ | 142,443 | 127,124 | 144,716 | ||||||||
Current liabilities:
|
||||||||||||
Current maturities of long-term debt
|
$ | 2,401 | 2,401 | 2,404 | ||||||||
Line of credit
|
875 | - | 889 | |||||||||
Accounts payable-trade
|
23,219 | 21,689 | 30,663 | |||||||||
Accounts payable - capital expenditures
|
104 | 112 | 169 | |||||||||
Accrued expenses
|
10,611 | 6,839 | 9,321 | |||||||||
Accrued restructuring costs
|
- | 40 | 40 | |||||||||
Income taxes payable - current
|
385 | 373 | 642 | |||||||||
Total current liabilities
|
37,595 | 31,454 | 44,128 | |||||||||
Income taxes payable - long-term
|
4,188 | 4,096 | 4,164 | |||||||||
Deferred income taxes
|
856 | 659 | 705 | |||||||||
Long-term debt, less current maturities
|
4,416 | 6,818 | 6,719 | |||||||||
Total liabilities
|
47,055 | 43,027 | 55,716 | |||||||||
Commitments and Contingencies (Note 15)
|
||||||||||||
Shareholders' equity
|
95,388 | 84,097 | 89,000 | |||||||||
Total liabilities and
|
||||||||||||
shareholders' equity
|
$ | 142,443 | 127,124 | 144,716 | ||||||||
Shares outstanding
|
12,209 | 12,767 | 12,703 | |||||||||
* Derived from audited financial statements.
|
||||||||||||
See accompanying notes to consolidated financial statements.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
FOR THE SIX MONTHS ENDED OCTOBER 28, 2012 AND OCTOBER 30, 2011
|
||||||||
UNAUDITED
|
||||||||
(Amounts in Thousands)
|
||||||||
SIX MONTHS ENDED
|
||||||||
October 28,
|
October 30,
|
|||||||
2012
|
2011
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 11,792 | 8,071 | |||||
Adjustments to reconcile net income to net cash
|
||||||||
provided by operating activities:
|
||||||||
Depreciation
|
2,539 | 2,386 | ||||||
Amortization of other assets
|
119 | 127 | ||||||
Stock-based compensation
|
197 | 178 | ||||||
Excess tax benefit related to stock-based compensation
|
(60 | ) | (39 | ) | ||||
Deferred income taxes
|
(3,325 | ) | (3,280 | ) | ||||
Gain on sale of equipment
|
- | (128 | ) | |||||
Foreign currency exchange gains
|
(66 | ) | (164 | ) | ||||
Changes in assets and liabilities:
|
||||||||
Accounts receivable
|
4,353 | 4,004 | ||||||
Inventories
|
(1,882 | ) | (4,964 | ) | ||||
Other current assets
|
373 | 750 | ||||||
Other assets
|
(80 | ) | (31 | ) | ||||
Accounts payable - trade
|
(7,397 | ) | (3,382 | ) | ||||
Accrued expenses
|
1,310 | (754 | ) | |||||
Accrued restructuring
|
(40 | ) | (4 | ) | ||||
Income taxes
|
(183 | ) | (189 | ) | ||||
Net cash provided by operating activities
|
7,650 | 2,581 | ||||||
Cash flows from investing activities:
|
||||||||
Capital expenditures
|
(1,946 | ) | (2,551 | ) | ||||
Proceeds from the sale of equipment
|
- | 130 | ||||||
Purchase of short-term investments
|
(54 | ) | (4,789 | ) | ||||
Proceeds from the sale of short-term investments
|
795 | 2,032 | ||||||
Net cash used in investing activities
|
(1,205 | ) | (5,178 | ) | ||||
Cash flows from financing activities:
|
||||||||
Proceeds from lines of credit
|
1,000 | 3,500 | ||||||
Payments on lines of credit
|
(1,000 | ) | (3,500 | ) | ||||
Payments on long-term debt
|
(2,300 | ) | (2,305 | ) | ||||
Proceeds from common stock issued
|
64 | 237 | ||||||
Common stock repurchased
|
(5,022 | ) | (4,776 | ) | ||||
Dividends paid
|
(747 | ) | - | |||||
Debt issuance costs
|
- | (26 | ) | |||||
Excess tax benefit related to stock-based compensation
|
60 | 39 | ||||||
Net cash used in financing activities
|
(7,945 | ) | (6,831 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents
|
(59 | ) | 42 | |||||
Decrease in cash and cash equivalents
|
(1,559 | ) | (9,386 | ) | ||||
Cash and cash equivalents at beginning of period
|
25,023 | 23,181 | ||||||
Cash and cash equivalents at end of period
|
$ | 23,464 | 13,795 | |||||
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
|
- | - | - | 11,792 | - | 11,792 | ||||||||||||||||||
Stock-based compensation
|
- | - | 197 | - | - | 197 | ||||||||||||||||||
Unrealized gains on short-term investments
|
- | - | - | - | 44 | 44 | ||||||||||||||||||
Excess tax benefit related to stock
|
||||||||||||||||||||||||
based compensation
|
- | - | 60 | - | - | 60 | ||||||||||||||||||
Common stock repurchased
|
(502,595 | ) | (25 | ) | (4,997 | ) | - | - | (5,022 | ) | ||||||||||||||
Fully vested common stock award
|
1,658 | - | - | - | - | - | ||||||||||||||||||
Common stock issued in connection
|
||||||||||||||||||||||||
with stock option plans
|
6,825 | - | 64 | - | - | 64 | ||||||||||||||||||
Dividends paid
|
- | - | (747 | ) | - | (747 | ) | |||||||||||||||||
Balance, October 28, 2012
|
12,208,694 | $ | 610 | 41,380 | 53,338 | 60 | $ | 95,388 | ||||||||||||||||
* Derived from audited financial statements.
|
||||||||||||||||||||||||
See accompanying notes to consolidated financial statements.
|
Grant on October 8, 2012 | ||||
Risk-free interest rate
|
0.67 | % | ||
Dividend yield
|
3.00 | % | ||
Expected volatility
|
61.70 | % | ||
Expected term (in years)
|
5 |
A summary of accounts receivable follows:
|
||||||||
(dollars in thousands)
|
October 28, 2012
|
April 29, 2012
|
||||||
Customers
|
$ | 21,790 | $ | 26,100 | ||||
Allowance for doubtful accounts
|
(559 | ) | (567 | ) | ||||
Reserve for returns and allowances and discounts
|
(553 | ) | (478 | ) | ||||
$ | 20,678 | $ | 25,055 | |||||
A summary of the activity in the allowance for doubtful accounts follows:
|
||||||||
Six months ended | ||||||||
(dollars in thousands)
|
October 28, 2012
|
October 30, 2011
|
||||||
Beginning balance
|
$ | (567 | ) | $ | (776 | ) | ||
Provision for bad debts
|
(27 | ) | 48 | |||||
Net write-offs, net of recoveries
|
35 | 42 | ||||||
Ending balance
|
$ | (559 | ) | $ | (686 | ) | ||
A summary of the activity in the allowance for returns and allowances and discounts accounts follows: | ||||||||
Six months ended | ||||||||
(dollars in thousands)
|
October 28, 2012
|
October 30, 2011
|
||||||
Beginning balance
|
$ | (478 | ) | $ | (577 | ) | ||
Provision for returns, allowances
|
||||||||
and discounts
|
(1,551 | ) | (1,197 | ) | ||||
Credits issued
|
1,476 | 1,354 | ||||||
Ending balance
|
$ | (553 | ) | $ | (420 | ) |
(dollars in thousands)
|
October 28, 2012
|
April 29, 2012
|
||||||
Raw materials
|
$ | 5,884 | $ | 5,534 | ||||
Work-in-process
|
2,789 | 3,631 | ||||||
Finished goods
|
29,588 | 27,208 | ||||||
$ | 38,261 | $ | 36,373 |
A summary of other assets follows:
|
||||||||
(dollars in thousands)
|
October 28, 2012
|
April 29, 2012
|
||||||
Cash surrender value - life insurance
|
$ | 1,327 | $ | 1,327 | ||||
Non-compete agreement, net
|
259 | 333 | ||||||
Other
|
282 | 247 | ||||||
$ | 1,868 | $ | 1,907 |
(dollars in thousands)
|
October 28, 2012
|
April 29, 2012
|
||||||
Compensation, commissions and related benefits
|
$ | 7,775 | $ | 7,293 | ||||
Interest
|
112 | 147 | ||||||
Other accrued expenses
|
2,724 | 1,881 | ||||||
$ | 10,611 | $ | 9,321 | |||||
8. Long-Term Debt and Lines of Credit
|
||||||||
A summary of long-term debt and lines of credit follows:
|
||||||||
(dollars in thousands)
|
October 28, 2012
|
April 29, 2012
|
||||||
Unsecured senior term notes
|
$ | 6,600 | $ | 8,800 | ||||
Canadian government loan
|
217 | 323 | ||||||
6,817 | 9,123 | |||||||
Current maturities of long-term debt
|
(2,401 | ) | (2,404 | ) | ||||
Long-term debt, less current maturities of long-term debt
|
$ | 4,416 | $ | 6,719 |
Fair value measurements at October 28, 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
|
$ | 2,065 | N/A | N/A | $ | 2,065 | ||||||||||
Limited Term Bond Fund
|
2,073 | N/A | N/A | 2,073 | ||||||||||||
Intermediate Term Bond Fund
|
1,103 | N/A | N/A | 1,103 |
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 |
Six months ended
|
||||||||
(dollars in thousands)
|
October 28, 2012
|
October 30, 2011
|
||||||
Interest
|
$ | 379 | $ | 445 | ||||
Net income tax payments
|
1,617 | 1,227 |
Three months ended
|
||||||||
(amounts in thousands)
|
October 28, 2012
|
October 30, 2011
|
||||||
Weighted average common shares outstanding, basic
|
12,191 | 12,733 | ||||||
Dilutive effect of stock-based compensation
|
157 | 138 | ||||||
Weighted average common shares outstanding, diluted
|
12,348 | 12,871 |
Six months ended
|
||||||||
(amounts in thousands)
|
October 28, 2012
|
October 30, 2011
|
||||||
Weighted average common shares outstanding, basic
|
12,371 | 12,898 | ||||||
Dilutive effect of stock-based compensation
|
170 | 127 | ||||||
Weighted average common shares outstanding, diluted
|
12,541 | 13,025 |
Three months ended | |||||||||||
(dollars in thousands)
|
October 28, 2012
|
October 30, 2011
|
|||||||||
Net sales:
|
|||||||||||
Mattress Fabrics
|
$ | 39,697 | $ | 35,242 | |||||||
Upholstery Fabrics
|
25,863 | 22,771 | |||||||||
$ | 65,560 | $ | 58,013 | ||||||||
Gross profit:
|
|||||||||||
Mattress Fabrics
|
$ | 7,539 | $ | 5,938 | |||||||
Upholstery Fabrics
|
4,338 | 2,785 | |||||||||
Total segment gross profit
|
$ | 11,877 | $ | 8,723 | |||||||
Other non-recurring charges
|
- | (77 | ) | (1 | ) | ||||||
$ | 11,877 | $ | 8,646 | ||||||||
Selling, general, and administrative expenses: | |||||||||||
Mattress Fabrics
|
$ | 2,424 | $ | 2,132 | |||||||
Upholstery Fabrics
|
3,157 | 2,766 | |||||||||
Total segment selling, general, and
|
|||||||||||
administrative expenses
|
5,581 | 4,898 | |||||||||
Unallocated corporate expenses
|
1,628 | 822 | |||||||||
$ | 7,209 | $ | 5,720 | ||||||||
Income from operations:
|
|||||||||||
Mattress Fabrics
|
$ | 5,115 | $ | 3,806 | |||||||
Upholstery Fabrics
|
1,181 | 19 | |||||||||
Total segment income from operations | 6,296 | 3,825 | |||||||||
Unallocated corporate expenses
|
(1,628 | ) | (822 | ) | |||||||
Other non-recurring charges
|
- | (77 | ) | ||||||||
Total income from operations
|
4,668 | 2,926 | |||||||||
Interest expense
|
(156 | ) | (188 | ) | |||||||
Interest income
|
96 | 110 | |||||||||
Other expense (income)
|
(76 | ) | 15 | ||||||||
Income before income taxes
|
$ | 4,532 | $ | 2,863 | |||||||
(1)
|
Other non-recurring charges represent employee termination benefits associated with our Anderson, SC plant facility. This non-recurring charges relates to the Upholstery Fabrics segment.
|
Six months ended
|
||||||||
(dollars in thousands)
|
October 28, 2012
|
October 30, 2011
|
||||||
Net sales:
|
||||||||
Mattress Fabrics
|
$ | 77,662 | $ | 67,412 | ||||
Upholstery Fabrics
|
57,082 | 50,871 | ||||||
$ | 134,744 | $ | 118,283 | |||||
Gross profit: | ||||||||
Mattress Fabrics
|
$ | 15,161 | $ | 11,076 | ||||
Upholstery Fabrics
|
9,837 | 6,525 | ||||||
Total segment gross profit | $ | 24,998 | $ | 17,601 | ||||
Other non-recurring charges
|
- | (77 | ) (1) | |||||
$ | 24,998 | $ | 17,524 | |||||
Selling, general, and administrative expenses:
|
||||||||
Mattress Fabrics
|
$ | 4,814 | $ | 4,123 | ||||
Upholstery Fabrics
|
6,498 | 5,534 | ||||||
Total segment selling, general, and
|
||||||||
administrative expenses
|
11,312 | 9,657 | ||||||
Unallocated corporate expenses
|
3,538 | 1,820 | ||||||
$ | 14,850 | $ | 11,477 | |||||
Income from operations:
|
||||||||
Mattress Fabrics
|
$ | 10,347 | $ | 6,953 | ||||
Upholstery Fabrics
|
3,339 | 991 | ||||||
Total segment income from operations
|
13,686 | 7,944 | ||||||
Unallocated corporate expenses
|
(3,538 | ) | (1,820 | ) | ||||
Other non-recurring charges
|
- | (77 | ) (1) | |||||
Total income from operations
|
10,148 | 6,047 | ||||||
Interest expense
|
(346 | ) | (409 | ) | ||||
Interest income
|
222 | 238 | ||||||
Other expense
|
(121 | ) | (49 | ) | ||||
Income before income taxes | $ | 9,903 | $ | 5,827 |
(dollars in thousands)
|
October 28, 2012
|
April 29, 2012
|
||||||
Segment assets:
|
||||||||
Mattress Fabrics
|
||||||||
Current assets (1)
|
$ | 33,553 | $ | 29,909 | ||||
Assets held for sale
|
- | 15 | ||||||
Non-compete agreements, net
|
259 | 333 | ||||||
Goodwill
|
11,462 | 11,462 | ||||||
Property, plant and equipment (2)
|
28,737 | 29,237 | ||||||
Total mattress fabrics assets
|
74,011 | 70,956 | ||||||
Upholstery Fabrics
|
||||||||
Current assets (1)
|
25,386 | 31,519 | ||||||
Property, plant and equipment (3)
|
1,028 | 1,124 | ||||||
Total upholstery fabrics assets
|
26,414 | 32,643 | ||||||
Total segment assets
|
100,425 | 103,599 | ||||||
Non-segment assets:
|
||||||||
Cash and cash equivalents
|
23,464 | 25,023 | ||||||
Short-term investments
|
5,241 | 5,941 | ||||||
Deferred income taxes
|
9,208 | 5,672 | ||||||
Other current assets
|
1,640 | 1,989 | ||||||
Property, plant and equipment (4)
|
856 | 918 | ||||||
Other assets
|
1,609 | 1,574 | ||||||
Total assets
|
$ | 142,443 | $ | 144,716 | ||||
Six months ended
|
||||||||
(dollars in thousands)
|
October 28, 2012
|
October 30, 2011
|
||||||
Capital expenditures (5):
|
||||||||
Mattress Fabrics
|
$ | 1,720 | $ | 2,113 | ||||
Upholstery Fabrics
|
40 | 395 | ||||||
Unallocated Corporate
|
121 | 17 | ||||||
Total capital expenditures
|
$ | 1,881 | $ | 2,525 | ||||
Depreciation expense:
|
||||||||
Mattress Fabrics
|
$ | 2,219 | $ | 2,082 | ||||
Upholstery Fabrics
|
320 | 304 | ||||||
Total depreciation expense
|
$ | 2,539 | $ | 2,386 |
(1)
|
Current assets represent accounts receivable and inventory for the respective segment.
|
(2)
|
The $28.7 million at October 28, 2012, represents property, plant, and equipment of $21.2 million and $7.5 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 $1.0 million at October 28, 2012, represents property, plant, and equipment located in the U.S. of $776, located in China of $160, and located in Poland of $92. 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 $856 and $918 at October 28, 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 was reduced by 123% for a reduction in our valuation allowance associated with our U.S. net deferred income tax assets. This 123% reduction in our income tax rate is due to a change in judgment about the realization of our U.S. net deferred income tax assets in future years. Since the realization of our U.S. net deferred income tax assets is a result of a change in judgment about future years we recorded an income tax benefit of $12.2 million that represents a discrete event in which the full tax effects were recorded for the three and six month periods ending October 28, 2012.
|
●
|
The income tax rate was increased by 67% for the establishment of a deferred tax liability for U.S. income taxes that will be paid upon repatriation of undistributed earnings from our foreign subsidiaries located in Canada and China. This 67% increase in our income tax rate is due to a change in judgment in which our prior years' accumulated earnings and profits associated with our subsidiaries located in Canada and China are no longer considered indefinitely reinvested. Since the establishment of our deferred tax liability is a result of a change in judgment about prior years' accumulated earnings and profits we recorded an income tax charge of $6.6 million that represents a discrete event in which the full tax effects were recorded for the three and six month periods ending October 28, 2012.
|
●
|
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 4% for an increase in unrecognized tax benefits.
|
●
|
The income tax rate was increased by 2% for the establishment of a valuation allowance against our net deferred tax assets associated with our Culp Europe operation located in Poland.
|
●
|
The income tax rate was increased by 1.9% for stock-based compensation and other miscellaneous items.
|
●
|
The income tax rate was reduced by 75% for a reduction in our valuation allowance associated with our U.S. net deferred income tax assets. This 75% reduction in our income tax rate is due to a change in judgment about the realization of our U.S. net deferred income tax assets in future years. Since the realization of our U.S. net deferred income tax assets is a result of a change in judgment about future years we recorded an income tax benefit of $4.4 million that represents a discrete event in which the full tax effects were recorded for the three and six month periods ending October 30, 2011.
|
●
|
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 7% for an increase in unrecognized tax benefits.
|
●
|
The income tax rate was increased by 2.5% for stock-based compensation and other miscellaneous items.
|
15. Commitments and Contingencies
|
16. Common Stock Repurchase Program
|
CULP, INC.
|
|||||||||||||||||||||||
STATEMENTS OF OPERATIONS BY SEGMENT
|
|||||||||||||||||||||||
FOR THE THREE MONTHS ENDED OCTOBER 28, 2012 AND OCTOBER 30, 2011
|
|||||||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||||||
(Amounts in thousands)
|
|||||||||||||||||||||||
THREE MONTHS ENDED
|
|||||||||||||||||||||||
Amounts
|
Percent of Total Sales
|
||||||||||||||||||||||
October 28,
|
October 30,
|
% Over
|
October 28,
|
October 30,
|
|||||||||||||||||||
Net Sales by Segment
|
2012
|
2011
|
(Under)
|
2012
|
2011
|
||||||||||||||||||
Mattress Fabrics
|
$ | 39,697 | 35,242 | 12.6 | % | 60.6 |
%
|
60.7 | % | ||||||||||||||
Upholstery Fabrics
|
25,863 | 22,771 | 13.6 | % | 39.4 |
%
|
39.3 | % | |||||||||||||||
Net Sales
|
$ | 65,560 | 58,013 | 13.0 | % | 100.0 |
%
|
100.0 | % | ||||||||||||||
Gross Profit by Segment
|
Gross Profit Margin
|
||||||||||||||||||||||
Mattress Fabrics
|
$ | 7,539 | 5,938 | 27.0 | % | 19.0 |
%
|
16.8 | % | ||||||||||||||
Upholstery Fabrics
|
4,338 | 2,785 | 55.8 | % | 16.8 |
%
|
12.2 | % | |||||||||||||||
Subtotal
|
11,877 | 8,723 | 36.2 | % | 18.1 |
%
|
15.0 | % | |||||||||||||||
Other non-recurring charges
|
- | (77 | ) | (1) | (100.0 | ) % | 0.0 |
%
|
(0.1 | ) % | |||||||||||||
Gross Profit
|
$ | 11,877 | 8,646 | 37.4 | % | 18.1 |
%
|
14.9 | % | ||||||||||||||
Selling, General and Administrative expenses by Segment |
Percent of Sales
|
||||||||||||||||||||||
Mattress Fabrics
|
$ | 2,424 | 2,132 | 13.7 | % | 6.1 |
%
|
6.0 | % | ||||||||||||||
Upholstery Fabrics
|
3,157 | 2,766 | 14.1 | % | 12.2 |
%
|
12.1 | % | |||||||||||||||
Unallocated Corporate expenses
|
1,628 | 822 | 98.1 | % | 2.5 |
%
|
1.4 | % | |||||||||||||||
Selling, General and Administrative expenses
|
7,209 | 5,720 | 26.0 | % | 11.0 |
%
|
9.9 | % | |||||||||||||||
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
||||||||||||||||||||||
Mattress Fabrics
|
$ | 5,115 | 3,806 | 34.4 | % | 12.9 |
%
|
10.8 | % | ||||||||||||||
Upholstery Fabrics
|
1,181 | 19 |
N.M.
|
4.6 |
%
|
0.1 | % | ||||||||||||||||
Unallocated corporate expenses
|
(1,628 | ) | (822 | ) | 98.1 | % | (2.5 | ) |
%
|
(1.4 | ) % | ||||||||||||
Subtotal
|
4,668 | 3,003 | 55.4 | % | 7.1 |
%
|
5.2 | % | |||||||||||||||
Other non-recurring charges
|
- | (77 | ) | (1) | (100.0 | ) % | 0.0 |
%
|
(0.1 | ) % | |||||||||||||
Operating income
|
$ | 4,668 | 2,926 | 59.5 | % | 7.1 |
%
|
5.0 | % | ||||||||||||||
Depreciation by Segment
|
|||||||||||||||||||||||
Mattress Fabrics
|
$ | 1,127 | 1,054 | 6.9 | % | ||||||||||||||||||
Upholstery Fabrics
|
158 | 146 | 8.2 | % | |||||||||||||||||||
Consolidated
|
1,285 | 1,200 | 7.1 | % | |||||||||||||||||||
Notes:
|
|||||||||||||||||||||||
(1) The $77 represents employee termination benefits associated with our Anderson, SC plant facility.
|
CULP, INC.
|
||||||||||||||||||||||||
STATEMENTS OF OPERATIONS BY SEGMENT
|
||||||||||||||||||||||||
FOR THE SIX MONTHS ENDED OCTOBER 28, 2012 AND OCTOBER 30, 2011
|
||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||||||||||
SIX MONTHS ENDED
|
||||||||||||||||||||||||
Amounts
|
Percent of Total Sales
|
|||||||||||||||||||||||
October 28,
|
October 30,
|
% Over
|
October 28,
|
October 30,
|
||||||||||||||||||||
Net Sales by Segment
|
2012
|
2011
|
(Under)
|
2012
|
2011
|
|||||||||||||||||||
Mattress Fabrics
|
$ | 77,662 | 67,412 | 15.2 | % | 57.6 | % | 57.0 | % | |||||||||||||||
Upholstery Fabrics
|
57,082 | 50,871 | 12.2 | % | 42.4 | % | 43.0 | % | ||||||||||||||||
Net Sales
|
$ | 134,744 | 118,283 | 13.9 | % | 100.0 | % | 100.0 | % | |||||||||||||||
Gross Profit by Segment
|
Gross Profit Margin
|
|||||||||||||||||||||||
Mattress Fabrics
|
$ | 15,161 | 11,076 | 36.9 | % | 19.5 | % | 16.4 | % | |||||||||||||||
Upholstery Fabrics
|
9,837 | 6,525 | 50.8 | % | 17.2 | % | 12.8 | % | ||||||||||||||||
Subtotal
|
24,998 | 17,601 | 42.0 | % | 18.6 | % | 14.9 | % | ||||||||||||||||
Other non-recurring charges
|
- | (77 | ) | (1) | (100.0 | ) % | 0.0 | % | (0.0 | ) % | ||||||||||||||
Gross Profit
|
24,998 | 17,524 | 42.7 | % | 18.6 | % | 14.8 | % | ||||||||||||||||
Selling, General and Administrative expenses by Segment
|
Percent of Sales
|
|||||||||||||||||||||||
Mattress Fabrics
|
$ | 4,814 | 4,123 | 16.8 | % | 6.2 | % | 6.1 | % | |||||||||||||||
Upholstery Fabrics
|
6,498 | 5,534 | 17.4 | % | 11.4 | % | 10.9 | % | ||||||||||||||||
Unallocated Corporate expenses
|
3,538 | 1,820 | 94.4 | % | 2.6 | % | 1.5 | % | ||||||||||||||||
Consolidated
|
14,850 | 11,477 | 29.4 | % | 11.0 | % | 9.7 | % | ||||||||||||||||
Operating Income (loss) by Segment
|
Operating Income (Loss) Margin
|
|||||||||||||||||||||||
Mattress Fabrics
|
$ | 10,347 | 6,953 | 48.8 | % | 13.3 | % | 10.3 | % | |||||||||||||||
Upholstery Fabrics
|
3,339 | 991 | 236.9 | % | 5.8 | % | 1.9 | % | ||||||||||||||||
Unallocated corporate expenses
|
(3,538 | ) | (1,820 | ) | 94.4 | % | (2.6 | ) % | (1.5 | ) % | ||||||||||||||
Subtotal
|
10,148 | 6,124 | 65.7 | % | 7.5 | % | 5.2 | % | ||||||||||||||||
Other non-recurring charges
|
- | (1) | (77 | ) | (1) | (100.0 | ) % | 0.0 | % | (0.1 | ) % | |||||||||||||
Operating income
|
$ | 10,148 | 6,047 | 67.8 | % | 7.5 | % | 5.1 | % | |||||||||||||||
Depreciation by Segment
|
||||||||||||||||||||||||
Mattress Fabrics
|
$ | 2,219 | 2,082 | 6.6 | % | |||||||||||||||||||
Upholstery Fabrics
|
320 | 304 | 5.3 | % | ||||||||||||||||||||
Consolidated
|
2,539 | 2,386 | 6.4 | % | ||||||||||||||||||||
Notes:
|
||||||||||||||||||||||||
(1) The $77 represents employee termination benefits associated with our Anderson, SC plant facility.
|
●
|
The income tax rate was reduced by 123% for a reduction in our valuation allowance associated with our U.S. net deferred income tax assets. This 123% reduction in our income tax rate is due to a change in judgment about the realization of our U.S. net deferred income tax assets in future years. Since the realization of our U.S. net deferred income tax assets is a result of a change in judgment about future years we recorded an income tax benefit of $12.2 million that represents a discrete event in which the full tax effects were recorded for the three and six month periods ending October 28, 2012.
|
●
|
The income tax rate was increased by 67% for the establishment of a deferred tax liability for U.S. income taxes that will be paid upon repatriation of undistributed earnings from our foreign subsidiaries located in Canada and China. This 67% increase in our income tax rate is due to a change in judgment in which our prior years' accumulated earnings and profits associated with our subsidiaries located in Canada and China are no longer considered indefinitely reinvested. Since the establishment of our deferred tax liability is a result of a change in judgment about prior years' accumulated earnings and profits we recorded an income tax charge of $6.6 million that represents a discrete event in which the full tax effects were recorded for the three and six month periods ending October 28, 2012.
|
●
|
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 4% for an increase in unrecognized tax benefits.
|
●
|
The income tax rate was increased by 2% for the establishment of a valuation allowance against our net deferred tax assets associated with our Culp Europe operation located in Poland.
|
●
|
The income tax rate was increased by 1.9% for stock-based compensation and other miscellaneous items.
|
●
|
The income tax rate was reduced by 75% for a reduction in our valuation allowance associated with our U.S. net deferred income tax assets. This 75% reduction in our income tax rate is due to a change in judgment about the realization of our U.S. net deferred income tax assets in future years. Since the realization of our U.S. net deferred income tax assets is a result of a change in judgment about future years we recorded an income tax benefit of $4.4 million that represents a discrete event in which the full tax effects were recorded for the three and six month periods ending October 30, 2011.
|
●
|
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 7% for an increase in unrecognized tax benefits.
|
●
|
The income tax rate was increased by 2.5% 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)
|
||||||||||||
July 30, 2012 to
September 2, 2012
|
455,299 | $ 10.00 | 455,299 | $2,000,000 | ||||||||||||
September 3, 2012 to
September 30, 2012
|
- | - | - | $2,000,000 | ||||||||||||
October 1, 2012 to
October 28, 2012
|
- | - | - | $2,000,000 | ||||||||||||
Total
|
455,299 | $ 10.00 | 455,299 | $2,000,000 |
(1)
|
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 and this authorization was reached through common stock repurchases made prior to September 2, 2012. On August 29, 2012, we announced that our board of directors approved a new authorization for us to acquire up to $2.0 million of our common stock.
|
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.
|
|
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: December 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)
|
Exhibit Number
|
Exhibit
|
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
|
|
I, Franklin N. Saxon, certify that:
|
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)
|
||
Date: December 7, 2012 |
|
I, Kenneth R. Bowling, certify that:
|
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)
|
||
Date: December 7, 2012 |
/s/ Franklin N. Saxon | |
Franklin N. Saxon
President and Chief Executive Officer
|
|
December 7, 2012 |
/s/ Kenneth R. Bowling | |
Kenneth R. Bowling
Vice President and Chief Financial Officer
|
|
December 7, 2012 |
Accounts Receivable - Allowance for Doubtful Accounts (Detail) (Allowance for doubtful accounts [Member], USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |
---|---|---|
Oct. 28, 2012
|
Oct. 30, 2011
|
|
Allowance for doubtful accounts [Member]
|
||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Beginning balance | $ (567) | $ (776) |
Provision for bad debts | (27) | 48 |
Net write-offs, net of recoveries | 35 | 42 |
Ending balance | $ (559) | $ (686) |
Segment Information - Balance Sheet Information by Operating Segments (Detail) (USD $)
In Thousands, unless otherwise specified |
Oct. 28, 2012
|
Apr. 29, 2012
|
Oct. 30, 2011
|
May 01, 2011
|
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Segment Reporting Information [Line Items] | ||||||||||||||||
Assets held for sale | $ 15 | [1] | $ 75 | |||||||||||||
Goodwill | 11,462 | 11,462 | [1] | 11,462 | ||||||||||||
Property, plant and equipment | 30,621 | 31,279 | [1] | 30,431 | ||||||||||||
Total assets | 142,443 | 144,716 | [1] | 127,124 | ||||||||||||
Cash and cash equivalents | 23,464 | 25,023 | [1] | 13,795 | 23,181 | |||||||||||
Short-term investments | 5,241 | 5,941 | [1] | 10,482 | ||||||||||||
Other current assets | 1,640 | 1,989 | [1] | 1,602 | ||||||||||||
Other assets | 1,868 | 1,907 | [1] | 1,982 | ||||||||||||
Mattress Fabrics [Member]
|
||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Current assets | 33,553 | [2] | 29,909 | [2] | ||||||||||||
Assets held for sale | 15 | |||||||||||||||
Non-compete agreements, net | 259 | 333 | ||||||||||||||
Goodwill | 11,462 | 11,462 | ||||||||||||||
Property, plant and equipment | 28,737 | [3] | 29,237 | [3] | ||||||||||||
Total assets | 74,011 | 70,956 | ||||||||||||||
Upholstery Fabrics [Member]
|
||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Current assets | 25,386 | [2] | 31,519 | [2] | ||||||||||||
Property, plant and equipment | 1,028 | [4] | 1,124 | [4] | ||||||||||||
Total assets | 26,414 | 32,643 | ||||||||||||||
Unallocated Amount to Segment [Member]
|
||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Property, plant and equipment | 856 | [5] | 918 | [5] | ||||||||||||
Cash and cash equivalents | 23,464 | 25,023 | ||||||||||||||
Short-term investments | 5,241 | 5,941 | ||||||||||||||
Deferred income taxes | 9,208 | 5,672 | ||||||||||||||
Other current assets | 1,640 | 1,989 | ||||||||||||||
Other assets | 1,609 | 1,574 | ||||||||||||||
Total reportable segments [Member]
|
||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Total assets | $ 100,425 | $ 103,599 | ||||||||||||||
|
Segment Information - Capital Expenditures and Depreciation Expense by Operating Segments (Detail) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |||||
---|---|---|---|---|---|---|
Oct. 28, 2012
|
Oct. 30, 2011
|
|||||
Segment Reporting Information [Line Items] | ||||||
Capital expenditures | $ 1,881 | [1] | $ 2,525 | [1] | ||
Depreciation expense | 2,539 | 2,386 | ||||
Mattress Fabrics [Member]
|
||||||
Segment Reporting Information [Line Items] | ||||||
Capital expenditures | 1,720 | 2,113 | ||||
Depreciation expense | 2,219 | 2,082 | ||||
Upholstery Fabrics [Member]
|
||||||
Segment Reporting Information [Line Items] | ||||||
Capital expenditures | 40 | 395 | ||||
Depreciation expense | 320 | 304 | ||||
Unallocated corporate expenses [Member]
|
||||||
Segment Reporting Information [Line Items] | ||||||
Capital expenditures | $ 121 | $ 17 | ||||
|
Long-Term Debt and Lines of Credit - Long-Term Debt Narrative (Detail) (USD $)
In Millions, unless otherwise specified |
0 Months Ended | 6 Months Ended | 0 Months Ended | 12 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|---|---|---|
Oct. 28, 2012
|
Apr. 29, 2012
|
Aug. 11, 2011
Unsecured senior term notes [Member]
Bodet And Horst [Member]
|
Oct. 28, 2012
Unsecured senior term notes [Member]
Bodet And Horst [Member]
|
Aug. 11, 2008
Unsecured senior term notes [Member]
Bodet And Horst [Member]
|
Aug. 11, 2012
Unsecured senior term notes [Member]
Bodet And Horst [Member]
Long-term Debt [Member]
|
Aug. 11, 2012
Unsecured senior term notes [Member]
Bodet And Horst [Member]
Long-term Debt [Member]
|
Oct. 28, 2012
Government Of Quebec Term Loan [Member]
Installment
|
|
Debt Instrument [Line Items] | ||||||||
Issuance of unsecured term notes | $ 11.0 | |||||||
Fixed interest rate | 8.01% | |||||||
Term of the note agreement | Seven years | |||||||
Required amount of principal payment installments | 2.2 | |||||||
Date of first required principal payment | Aug. 11, 2011 | Dec. 01, 2009 | ||||||
Required debt payment frequency | Annual | Monthly | ||||||
Average term period for principal payments, in years | 2 years 9 months 18 days | |||||||
Maturity date | Aug. 11, 2015 | |||||||
Principal payment paid | 2.2 | 2.2 | 4.4 | |||||
Number of equal installment payments required from loan inception | 48 | |||||||
Principal payment requirements of long-term debt for the first year | 2.4 | |||||||
Principal payment requirements of long-term debt for the second year | 2.2 | |||||||
Principal payment requirements of long-term debt for the third year | 2.2 | |||||||
Long-term debt, fair value | $ 6.2 | $ 8.1 |
Net Income Per Share (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 28, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Shares Used in the Computation of Basic and Diluted Net Income Per Share | Weighted
average shares used in the computation of basic and diluted net
income per share follows:
|
Income Taxes (Detail) (USD $)
|
3 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 36 Months Ended | 6 Months Ended | 6 Months Ended | 24 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 28, 2012
|
Oct. 30, 2011
|
Oct. 28, 2012
|
Oct. 30, 2011
|
Apr. 29, 2012
|
Oct. 28, 2012
Canada and China [Member]
|
Oct. 30, 2011
Canada and China [Member]
|
Oct. 28, 2012
U.S. Tax Authorities [Member]
|
Oct. 28, 2012
U.S. Tax Authorities [Member]
|
Oct. 30, 2011
U.S. Tax Authorities [Member]
|
Apr. 29, 2012
U.S. Tax Authorities [Member]
|
Oct. 28, 2012
U.S. Tax Authorities [Member]
Canada and China Subsidiaries [Member]
|
Oct. 28, 2012
China [Member]
|
Apr. 29, 2012
China [Member]
|
Apr. 29, 2012
Poland [Member]
|
Oct. 28, 2012
Poland [Member]
Culp Europe [Member]
|
Oct. 28, 2012
Poland [Member]
Culp Europe [Member]
|
Oct. 28, 2012
Poland [Member]
Deferred Tax Asset Loss Carryforwards [Member]
Culp Europe [Member]
|
Oct. 28, 2012
Canada [Member]
|
Apr. 29, 2012
Canada [Member]
|
Oct. 28, 2012
U.S. Tax Authorities and Poland Tax Authorities [Member]
Deferred Tax Asset Loss Carryforwards [Member]
|
Oct. 28, 2012
U.S. State Tax [Member]
Deferred Tax Asset Loss Carryforwards [Member]
|
Oct. 28, 2012
Mattress Fabrics [Member]
|
Oct. 30, 2011
Mattress Fabrics [Member]
|
Oct. 28, 2012
Mattress Fabrics [Member]
|
Oct. 30, 2011
Mattress Fabrics [Member]
|
Oct. 28, 2012
Deferred Income Taxes Net Noncurrent [Member]
|
Oct. 28, 2012
Income Taxes Payable - Long-Term [Member]
|
||||
Income Taxes [Line Items] | |||||||||||||||||||||||||||||||
Income tax rate | (19.10%) | (38.50%) | |||||||||||||||||||||||||||||
Income taxes | $ (3,736,000) | $ (3,389,000) | $ (1,889,000) | $ (2,244,000) | |||||||||||||||||||||||||||
Statutory rate | 34.00% | 34.00% | |||||||||||||||||||||||||||||
Increase (decrease) in effective income tax rate from the change of valuation allowance for net deferred income tax assets | (75.00%) | (123.00%) | (75.00%) | 2.00% | |||||||||||||||||||||||||||
Income tax expense (benefit) related to changes in the valuation allowance for deferred tax assets | (4,400,000) | (12,200,000) | (4,400,000) | 209,000 | |||||||||||||||||||||||||||
Increase in effective income tax rate from the establishment of a deferred tax liability for undistributed earnings | 67.00% | 67.00% | |||||||||||||||||||||||||||||
Income tax expense (benefit) from change in treatment of undistributed earnings | 6,600,000 | 6,600,000 | 6,600,000 | ||||||||||||||||||||||||||||
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 from an increase in unrecognized tax benefits | 4.00% | 7.00% | |||||||||||||||||||||||||||||
Increase in income tax rate for stock-based compensation and other miscellaneous items | 1.90% | 2.50% | |||||||||||||||||||||||||||||
Valuation allowance | 12,800,000 | 209,000 | 825,000 | 616,000 | |||||||||||||||||||||||||||
Operating loss carryforwards | 59,900,000 | ||||||||||||||||||||||||||||||
Income before income taxes | 4,532,000 | 2,863,000 | 9,903,000 | 5,827,000 | 3,400,000 | 11,900,000 | (1,100,000) | ||||||||||||||||||||||||
Net sales | 65,560,000 | 58,013,000 | 134,744,000 | 118,283,000 | 39,697,000 | 35,242,000 | 77,662,000 | 67,412,000 | |||||||||||||||||||||||
Percentage increase in net sales | 15.00% | ||||||||||||||||||||||||||||||
Operating income | 4,668,000 | 2,926,000 | 10,148,000 | 6,047,000 | 5,115,000 | 3,806,000 | 10,347,000 | 6,953,000 | |||||||||||||||||||||||
Percentage increase in operating income | 49.00% | ||||||||||||||||||||||||||||||
Undistributed earnings from our foreign subsidiaries that will be distributed to the parent company | 55,600,000 | 55,600,000 | |||||||||||||||||||||||||||||
Domestic and foreign withholding taxes | 21,600,000 | 21,600,000 | |||||||||||||||||||||||||||||
Income tax credits | 15,000,000 | 15,000,000 | |||||||||||||||||||||||||||||
Operating loss carryforwards, expiration period | 5 years | ||||||||||||||||||||||||||||||
Deferred tax expense from expected future year losses of operating loss carryforwards | 115,000 | ||||||||||||||||||||||||||||||
Deferred tax expense from expected current year loss of operating loss carryforward | 93,000 | ||||||||||||||||||||||||||||||
Current deferred tax asset | 4,470,000 | 2,659,000 | 4,470,000 | 2,659,000 | 2,467,000 | [1] | 4,100,000 | 4,100,000 | 2,100,000 | 369,000 | 405,000 | ||||||||||||||||||||
Non-current deferred tax asset | 4,738,000 | 4,540,000 | 4,738,000 | 4,540,000 | 3,205,000 | [1] | 3,900,000 | 3,900,000 | 2,100,000 | 866,000 | 1,000,000 | 115,000 | |||||||||||||||||||
Non-current deferred tax liability | 856,000 | 659,000 | 856,000 | 659,000 | 705,000 | [1] | 856,000 | 705,000 | |||||||||||||||||||||||
Unrecognized tax benefits | 12,800,000 | 12,800,000 | 8,600,000 | 4,200,000 | |||||||||||||||||||||||||||
Unrecognized tax benefits that would favorably impact effective income tax rate if recognized | 4,200,000 | 4,200,000 | |||||||||||||||||||||||||||||
Expected increase in unrecognized tax benefits related to double taxation under applicable tax treaties with foreign tax jurisdictions | $ 833,000 | $ 833,000 | |||||||||||||||||||||||||||||
|
Stock-Based Compensation (Tables)
|
6 Months Ended | |||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 28, 2012
|
||||||||||||||||||||||||||
Schedule of Share-Based Payment Award Stock Options Valuation Assumptions |
|
Cash Flow Information (Detail) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |
---|---|---|
Oct. 28, 2012
|
Oct. 30, 2011
|
|
Cash Flow Supplemental Disclosures [Line Items] | ||
Interest | $ 379 | $ 445 |
Net income tax payments | $ 1,617 | $ 1,227 |
Other Assets (Detail) (USD $)
In Thousands, unless otherwise specified |
Oct. 28, 2012
|
Apr. 29, 2012
|
Oct. 30, 2011
|
|||
---|---|---|---|---|---|---|
Other Assets Noncurrent [Line Items] | ||||||
Cash surrender value - life insurance | $ 1,327 | $ 1,327 | ||||
Non-compete agreement, net | 259 | 333 | ||||
Other | 282 | 247 | ||||
Other assets | $ 1,868 | $ 1,907 | [1] | $ 1,982 | ||
|
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