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Segment Information (Tables)
 12 Months Ended
May 01, 2022
Segment Reporting [Abstract]  
Summary of Segment Information by Geographic Area International sales accounted for 31%, 27%, and 26% of net sales during fiscal 2022, 2021, and 2020, respectively, and are summarized by geographic area as follows:

(dollars in thousands)

 

2022

 

 

2021

 

 

2020

 

north america (excluding USA) (1)

 

$

39,256

 

 

$

32,925

 

 

$

27,637

 

far east and asia (2)

 

 

43,015

 

 

 

43,764

 

 

 

36,470

 

all other areas

 

 

8,114

 

 

 

5,558

 

 

 

2,986

 

 

 

$

90,385

 

 

$

82,247

 

 

$

67,093

 

 

(1)

Of this amount, $33.5 million, $27.2 million, and $21.7 million are attributable to shipments to Mexico in fiscal 2022, 2021, and 2020, respectively.

(2)

Of this amount $26.9 million, $28.1 million, and $21.4 million are attributable to shipments to China in fiscal 2022, 2021, and 2020, respectively.
Schedule of Operating Segments Information

Statements of operations for our current operating segments are as follows:

 

(dollars in thousands)

 

2022

 

 

2021

 

 

2020

 

net sales by segment:

 

 

 

 

 

 

 

 

 

 

 

 

upholstery fabrics

 

$

142,680

 

 

$

142,049

 

 

$

124,754

 

mattress fabrics

 

 

152,159

 

 

 

157,671

 

 

 

131,412

 

total net sales

 

$

294,839

 

 

$

299,720

 

 

$

256,166

 

gross profit from continuing operations by segment:

 

 

 

 

 

 

 

 

 

 

 

 

upholstery fabrics

 

$

19,635

 

 

$

25,968

 

 

$

24,220

 

mattress fabrics

 

 

16,458

 

 

 

23,864

 

 

 

16,278

 

total gross profit from continuing operations

 

$

36,093

 

 

$

49,832

 

 

$

40,498

 

selling, general, and administrative expenses by segment:

 

 

 

 

 

 

 

 

 

 

 

 

upholstery fabrics

 

$

14,009

 

 

$

14,092

 

 

$

14,353

 

mattress fabrics

 

 

12,246

 

 

 

12,066

 

 

 

11,354

 

unallocated corporate

 

 

9,160

 

 

 

11,598

 

 

 

8,717

 

total selling, general, and administrative expenses

 

$

35,415

 

 

$

37,756

 

 

$

34,424

 

income (loss) from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

upholstery fabrics

 

$

5,626

 

 

$

11,876

 

 

$

9,867

 

mattress fabrics

 

 

4,212

 

 

 

11,798

 

 

 

4,924

 

unallocated corporate expenses

 

 

(9,160

)

 

 

(11,598

)

 

 

(8,717

)

total segment income from continuing operations

 

 

678

 

 

 

12,076

 

 

 

6,074

 

asset impairments (1)

 

 

—

 

 

 

—

 

 

 

(13,712

)

restructuring credit

 

 

—

 

 

 

—

 

 

 

70

 

total income (loss) from continuing operations

 

 

678

 

 

 

12,076

 

 

 

(7,568

)

interest expense

 

 

(17

)

 

 

(51

)

 

 

(106

)

interest income

 

 

373

 

 

 

244

 

 

 

897

 

gain on bargain purchase (2)

 

 

—

 

 

 

819

 

 

 

—

 

other expense

 

 

(1,359

)

 

 

(2,208

)

 

 

(902

)

(loss) income before income taxes from continuing operations

 

$

(325

)

 

$

10,880

 

 

$

(7,679

)

(1)

During fiscal 2020, we incurred asset impairment charges totaling $13.7 million, of which $13.6 million and $143,000 pertained to goodwill and a tradename associated with Read, respectively. Of this $13.7 million, $11.5 million and $2.2 million pertained to the mattress fabrics segment and upholstery fabrics segment, respectively.

(2)

Effective February 1, 2021, we acquired the remaining fifty percent ownership interest in our former unconsolidated joint venture located in Haiti.  Pursuant to this transaction, we are now the sole owner with full control over this operation.  The gain on bargain purchase represents the net assets acquired from this transaction that exceeded the fair value of our previously held 50% ownership interest of $1.7 million and the $954,000 total purchase price for the remaining 50% ownership interest.

Balance sheet information for our current operating segments follow:

 

(dollars in thousands)

 

May 1,

2022

 

 

 

May 2,

2021

 

 

segment assets

 

 

 

 

 

 

 

 

 

 

mattress fabrics

 

 

 

 

 

 

 

 

 

 

accounts receivable

 

$

9,865

 

 

 

$

20,427

 

 

inventory

 

 

39,028

 

 

 

 

30,047

 

 

property, plant, and equipment

 

 

38,731

 

(1)

 

 

41,694

 

(2)

right of use assets

 

 

3,469

 

(3)

 

 

4,278

 

(4)

total mattress fabrics assets

 

 

91,093

 

 

 

 

96,446

 

 

 

 

 

 

 

 

 

 

 

 

 

upholstery fabrics

 

 

 

 

 

 

 

 

 

 

accounts receivable

 

 

12,361

 

 

 

 

17,299

 

 

inventory

 

 

27,529

 

 

 

 

25,870

 

 

property, plant, and equipment

 

 

2,030

 

(5)

 

 

1,495

 

(6)

right of use assets

 

 

8,124

 

(7)

 

 

5,945

 

(8)

total upholstery fabrics assets

 

 

50,044

 

 

 

 

50,609

 

 

total segment assets

 

 

141,137

 

 

 

 

147,055

 

 

 

 

 

 

 

 

 

 

 

 

 

non-segment assets

 

 

 

 

 

 

 

 

 

 

cash and cash equivalents

 

 

14,550

 

 

 

 

37,009

 

 

short-term investments – available for sale

 

 

—

 

 

 

 

5,542

 

 

short-term investments – held-to-maturity

 

 

—

 

 

 

 

3,161

 

 

current income taxes receivable

 

 

857

 

 

 

 

—

 

 

deferred income taxes

 

 

528

 

 

 

 

545

 

 

other current assets

 

 

2,986

 

 

 

 

3,852

 

 

property, plant, and equipment (9)

 

 

941

 

 

 

 

814

 

 

right of use assets (10)

 

 

3,984

 

 

 

 

1,507

 

 

intangible assets

 

 

2,628

 

 

 

 

3,004

 

 

long-term investments - held-to-maturity

 

 

—

 

 

 

 

1,141

 

 

long-term investments - rabbi trust

 

 

9,357

 

 

 

 

8,415

 

 

other assets

 

 

595

 

 

 

 

2,035

 

 

total assets

 

$

177,563

 

 

 

$

214,080

 

 

 

(dollars in thousands)

 

2022

 

 

2021

 

 

2020

 

capital expenditures (11):

 

 

 

 

 

 

 

 

 

 

 

 

mattress fabrics

 

$

3,383

 

 

$

6,226

 

 

$

3,475

 

upholstery fabrics

 

 

1,032

 

 

 

347

 

 

 

348

 

discontinued operation

 

 

—

 

 

 

—

 

 

 

135

 

unallocated corporate

 

 

1,406

 

 

 

332

 

 

 

675

 

total capital expenditures

 

$

5,821

 

 

$

6,905

 

 

$

4,633

 

 

 

 

 

 

 

 

 

 

 

 

 

 

depreciation expense

 

 

 

 

 

 

 

 

 

 

 

 

mattress fabrics

 

$

6,200

 

 

$

6,014

 

 

$

6,712

 

upholstery fabrics

 

 

794

 

 

 

832

 

 

 

765

 

discontinued operation

 

 

—

 

 

 

—

 

 

 

350

 

total depreciation expense

 

$

6,994

 

 

$

6,846

 

 

$

7,827

 

 

(1)

The $38.7 million as of May 1, 2022, represents property, plant, and equipment of $25.6 million, $12.4 million, and $757,000 located in the U.S., Canada, and Haiti, respectively.  

 

(2)

The $41.7 million as of May 2, 2021, represents property, plant, and equipment of $28.8 million, $12.0 million, and $855,000 located in the U.S., Canada, and Haiti, respectively.

 

(3)

The $3.5 million as of May 1, 2022, represents right of use assets of $2.0 million, $1.2 million, and $291,000 located in Haiti, the U.S., and Canada, respectively.

 

 

(4)

The $4.3 million as of May 2, 2021, represents right of use assets of $2.4 million, $1.4 million, and $400,000 located in Haiti, the U.S., and Canada, respectively.

 

(5)

The $2.0 million as of May 1, 2022, represents property, plant, and equipment of $1.0 million, $756,000, and $255,000 located in the U.S., Haiti, and China, respectively.  

 

(6)

The $1.5 million as of May 2, 2021, represents property, plant, and equipment of $1.1 million and $420,000 located in the U.S. and China, respectively.

 

(7)

The $8.1 million as of May 1, 2022, represents right of use assets of $3.7 million, $2.6 million, and $1.8 million located in China, Haiti, and the U.S., respectively.

 

(8)

The $5.9 million as of May 2, 2021, represents right of use assets of $5.0 million and $952,000 located in China and the U.S., respectively.

 

(9)

The $941,000 as of May 1, 2022, and $814,000 as of May 2, 2021, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by both the mattress fabrics and upholstery fabrics segments located in the U.S.

 

(10)

The $4.0 million as of May 1, 2022, and $1.5 million as of May 2, 2021, represents right of use assets located in the U.S. associated with unallocated corporate departments and corporate departments shared by both the mattress fabrics and upholstery fabrics segments located in the U.S.  

 

(11)

Capital expenditure amounts are stated on an accrual basis. See the Consolidated Statement of Cash Flows for capital expenditure    amounts on a cash basis.