Culp Announces Results for Third Quarter Fiscal 2023
Culp, Inc. (NYSE: CULP) reported a challenging third quarter for fiscal 2023, with net sales of $52.5 million, down 34.6% year-over-year. Loss from operations was $(7.8) million, compared to a profit of $1.1 million last year, influenced by restructuring costs of $711,000. The net loss reached $(9.0) million, or $(0.73) per share. Cash flow from operations improved to $4.6 million, a significant turnaround from negative $(12.4) million last year. Despite a solid balance sheet with $16.7 million in cash, the company faces ongoing demand challenges affecting its mattress and upholstery fabrics segments and expects continued pressure through fiscal 2023.
- Improved cash flow from operations to $4.6 million for the first nine months of fiscal 2023, up from negative $(12.4) million last year.
- Strong balance sheet with $16.7 million in cash and no outstanding debt.
- Annualized savings of approximately $1.5 million expected from the restructuring initiative.
- Net sales decreased 34.6% from the prior year, with a 35.8% drop in mattress fabrics and 33.5% in upholstery fabrics.
- Operating loss of $(7.8) million compared to a profit of $1.1 million for the same period last year.
- Continued pressure on sales expected due to high inventory levels and reduced consumer demand.
Fiscal 2023 Third Quarter Financial Summary
-
Net sales were
, down 34.6 percent compared with the prior-year period, with mattress fabrics sales down 35.8 percent and upholstery fabrics sales down 33.5 percent compared with the third quarter of last year.$52.5 million -
Loss from operations was
, in line with expectations, as compared with income from operations of$(7.8) million for the prior-year period.$1.1 million -
The loss from operations for the third quarter of fiscal 2023 includes
in restructuring expense relating to a rationalization of the upholstery fabrics cut and sew platform located in Ouanaminthe,$711,000 Haiti . -
Net loss was
, or$(9.0) million per diluted share, compared with a net loss of$(0.73) , or$(289,000) per diluted share, for the prior-year period. The effective tax rate for the third quarter was negative (3.3)%, reflecting the company’s mix of taxable income between its$(0.02) U.S. and foreign jurisdictions during the period. -
The company maintained a solid balance sheet, with total cash and investments of
and no outstanding borrowings as of$16.7 million January 29, 2023 . (See summary of cash and investments table at the back of this press release.) -
Cash flow from operations and free cash flow were
and$4.6 million , respectively, for the first nine months of fiscal 2023, compared with cash flow from operations and free cash flow of negative$2.5 million and negative$(12.4) million , respectively, for the first nine months of fiscal 2022. (See reconciliation table at the back of this press release.)$(18.5) million -
On
January 19, 2023 , the company closed on a new three-year asset-based revolving credit facility of up to .$35 million
Financial Outlook
- The company continues to navigate a difficult demand environment as a result of elevated inventory levels at manufacturers and retailers, as well as shifting consumer spending trends and weakening consumer confidence. The company is also experiencing operating inefficiencies due to this reduced demand as well as an improving but still inexperienced labor force. Although CULP remains well-positioned over the long term with its product-driven strategy and flexible global platform, current conditions are likely to continue pressuring results through at least the end of fiscal 2023.
-
Due to the continued volatility in the macro environment, the company is providing only limited sequential financial guidance for the fourth quarter of fiscal 2023. The company’s consolidated net sales for the fourth quarter are expected to be moderately higher as compared to the
in net sales for the third quarter of fiscal 2023, driven largely by strong improvement in the mattress fabrics segment and comparable performance in the upholstery fabrics segment. The company expects a consolidated operating loss (loss from operations) for the fourth quarter of fiscal 2023 that is meaningfully lower than the$52.5 million operating loss for the third quarter of fiscal 2023. The company also expects its cash position as of the end of the fourth quarter of fiscal 2023 to remain comparable to the$(7.8) million at the end of fiscal 2022.$14.6 million
- The company’s expectations are based on information available at the time of this press release and reflect certain assumptions by management regarding the company’s business and trends and the projected impact of the ongoing headwinds.
Commenting on the results,
"Despite the headwinds, we continued our focus on cash preservation and working capital management, including inventory reductions, throughout the quarter. We have generated cash flow from operations of
"We remain focused on the long term and continue to diligently manage the aspects of our business we can control. We are especially pleased with the business transformation plan underway in our mattress fabrics segment, and we expect sustained sequential improvement in this business as we implement management changes and new processes tailored to improve operational efficiencies, optimize our supply chain, and strengthen customer relationships. Additionally, it was encouraging to see the activity level at the January Las Vegas market. The industry has previously been in a cycle of deferring new product introductions, which affects our unit volume, so we were pleased to see many new products and innovations presented at this market featuring CULP mattress fabrics and sewn covers that are launching throughout calendar 2023.
"Based on demand trends and customer sentiment, we began a rationalization and consolidation of our cut and sew upholstery kit platform in
"Looking ahead, while we expect current macro conditions will affect our business through at least the end of this fiscal year, our market position remains solid, and we continue to gain new product opportunities with customers. We are diligently focused on returning to profitability and taking the necessary steps to withstand the current market challenges, while also engaging in a holistic business improvement strategy that will position us to emerge stronger when conditions normalize,” added Culp.
Segment Update
Mattress Fabrics Segment (“CHF”) Summary
-
Sales for this segment were
for the third quarter, down 35.8 percent compared with sales of$24.7 million in the third quarter of fiscal 2022. Sequentially, sales were down 5.8 percent compared with sales of$38.4 million for the second quarter of fiscal 2023.$26.2 million
- Sales for CHF were pressured during the quarter by reduced demand, with mattress industry analysis reflecting significant unit contraction.
- Operating performance for the third quarter was primarily pressured by operating inefficiencies driven by lower sales volume and holiday shutdowns across CHF's locations.
- CHF continued its short-term focus on inventory reduction and cash generation during the quarter, while also engaging in an ongoing business transformation plan focused on long-term improvement in every facet of the business, including quality, sales, marketing, and operational processes; supply chain optimization; employee engagement; and organizational management structure.
- At the end of the third quarter, CHF began the roll out for some new customer programs, which are priced in-line with current market costs, and expects to benefit as these new programs expand across more sales channels and retail floors, and as additional new product rollouts launch during calendar 2023.
- The CHF team continues to execute its product driven strategy, with an emphasis on innovation, design creativity, and customer relationships. Management remains diligently focused on controlling costs, and will continue to make operational adjustments to align with demand conditions.
Upholstery Fabrics Segment (“CUF”) Summary
-
Sales for this segment were
for the third quarter, down 33.5 percent compared with sales of$27.8 million in the third quarter of fiscal 2022, which was the segment's strongest quarterly sales performance since fiscal 2006. Sequentially, sales were down 13.5 percent compared with sales of$41.9 million for the second quarter of fiscal 2023.$32.2 million
- Sales for CUF’s residential fabric business remained under pressure during the quarter by reduced demand, driven by high inventory levels for the residential home furnishings industry. This pressure is expected to continue through at least the first quarter of fiscal 2024 as retailers and manufacturers work through their inventory positions.
- Demand remained solid for CUF’s hospitality business during the third quarter, with sales for the hospitality/contract business accounting for approximately 30 percent of CUF's total sales.
-
Operating performance for the third quarter, as compared to the prior-year period, was pressured primarily by lower residential sales, as well as operating inefficiencies in CUF's cut and sew facility in
Haiti and in itsRead Window Products business. These pressures were partially offset by a significantly more favorable foreign exchange rate associated with CUF's operations inChina , as well as lower costs resulting from the restructuring of CUF's cut and sew platform inChina during the prior quarter.
-
CUF began a rationalization and restructuring of its
Haiti cut and sew platform near the end of the quarter to align the capacity and cost structure of this operation with reduced demand. This platform adjustment, which includes terminating a lease and relocating into an existing mattress cover facility, will be completed during the fourth quarter.
- Despite high inventory levels affecting manufacturer demand in the residential home furnishings industry, CUF's business remains well-positioned for the long term with its scalable global platform and innovative product offerings, including its popular portfolio of LiveSmart® performance products and new product technologies.
Balance Sheet and Cash Flow
-
As of
January 29, 2023 , the company reported in total cash and investments and no outstanding debt. This compares with$16.7 million in total cash and investments and no outstanding debt as of the end of fiscal 2022.$14.6 million
-
Cash flow from operations and free cash flow were
and$4.6 million , respectively, for the first nine months of fiscal 2023, compared with cash flow from operations and free cash flow of negative$2.5 million and negative$(12.4) million , respectively, for the first nine months of fiscal 2022. (See reconciliation table at the back of this press release.)$(18.5) million
-
The company’s cash flow from operations and free cash flow during the first nine months of fiscal 2023 were favorably affected by working capital management, namely reductions in inventory. Importantly, since the end of the third quarter of fiscal 2022, inventory reduction has contributed approximately
to the company's cash position.$18.2 million
-
Capital expenditures through the third quarter of fiscal 2023 were
compared with$1.6 million for the same period for fiscal 2022. The company continues to manage capital investments, focusing on projects that will increase efficiencies and improve quality.$5.3 million
-
The company completed the closing of a new three-year asset-based revolving credit facility of up to
during the third quarter of fiscal 2023. Borrowing availability under this new asset-based revolving facility is based on a calculation using certain of the company's accounts receivable and inventory, determined on a monthly basis, and, as compared to the company's prior credit facility, provides enhanced liquidity and more flexibility with minimal financial covenants.$35 million
-
As of
January 29, 2023 , the company had approximately in liquidity, consisting of$40 million in total cash and investments and approximately$16.7 million in borrowing availability under the company's new credit facility.$23 million
Dividends and Share Repurchases
To preserve liquidity and support future growth opportunities, the company’s Board of Directors suspended the company’s quarterly cash dividend on its common stock in June of 2022.
The company did not repurchase any shares during the third quarter of fiscal 2023, leaving approximately
Conference Call
About the Company
Forward Looking Statements
This release contains “forward-looking statements” within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934). Such statements are inherently subject to risks and uncertainties that may cause actual events and results to differ materially from such statements. Further, forward looking statements are intended to speak only as of the date on which they are made, and we disclaim any duty to update such statements to reflect any changes in management’s expectations or any change in the assumptions or circumstances on which such statements are based, whether due to new information, future events, or otherwise. Forward-looking statements are statements that include projections, expectations, or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often but not always characterized by qualifying words such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “plan,” “project,” and their derivatives, and include but are not limited to statements about expectations, projections, or trends for our future operations, strategic initiatives and plans, production levels, new product launches, sales, profit margins, profitability, operating income, capital expenditures, working capital levels, cost savings, income taxes, SG&A or other expenses, pre-tax income, earnings, cash flow, and other performance or liquidity measures, as well as any statements regarding dividends, share repurchases, liquidity, use of cash and cash requirements, borrowing capacity, investments, potential acquisitions, future economic or industry trends, public health epidemics, or future developments. There can be no assurance that we will realize these expectations or meet our guidance, or that these beliefs will prove correct.
Factors that could influence the matters discussed in such statements include the level of housing starts and sales of existing homes, consumer confidence, trends in disposable income, and general economic conditions. Decreases in these economic indicators could have a negative effect on our business and prospects. Likewise, increases in interest rates, particularly home mortgage rates, and increases in consumer debt or the general rate of inflation, could affect us adversely. The future performance of our business depends in part on our success in conducting and finalizing acquisition negotiations and integrating acquired businesses into our existing operations. Changes in consumer tastes or preferences toward products not produced by us could erode demand for our products. Changes in tariffs or trade policy, including changes in
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CONSOLIDATED STATEMENTS OF NET LOSS |
||||||||||||||||||||
FOR THREE MONTHS ENDED |
||||||||||||||||||||
Unaudited |
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(Amounts in Thousands, Except for Per Share Data) |
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THREE MONTHS ENDED |
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|||||||||||||||||
|
|
Amount |
|
|
|
|
|
Percent of Sales |
|
|||||||||||
|
|
(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
% Over |
|
|
|
|
|
|
|
|||||
|
|
2023 |
|
|
2022 |
|
|
(Under) |
|
|
2023 |
|
|
2022 |
|
|||||
Net sales |
|
$ |
52,523 |
|
|
$ |
80,291 |
|
|
|
(34.6 |
)% |
|
|
100.0 |
% |
|
|
100.0 |
% |
Cost of sales |
|
|
(50,430 |
) |
|
|
(71,181 |
) |
|
|
(29.2 |
)% |
|
|
96.0 |
% |
|
|
88.7 |
% |
Gross profit |
|
|
2,093 |
|
|
|
9,110 |
|
|
|
(77.0 |
)% |
|
|
4.0 |
% |
|
|
11.3 |
% |
Selling, general and administrative expenses |
|
|
(9,165 |
) |
|
|
(8,007 |
) |
|
|
14.5 |
% |
|
|
17.4 |
% |
|
|
10.0 |
% |
Restructuring expense (2) |
|
|
(711 |
) |
|
|
— |
|
|
|
100.0 |
% |
|
|
1.4 |
% |
|
|
— |
|
(Loss) income from operations |
|
|
(7,783 |
) |
|
|
1,103 |
|
|
N.M. |
|
|
|
(14.8 |
)% |
|
|
1.4 |
% |
|
Interest income |
|
|
196 |
|
|
|
214 |
|
|
|
(8.4 |
)% |
|
|
0.4 |
% |
|
|
0.3 |
% |
Other expense |
|
|
(1,095 |
) |
|
|
(322 |
) |
|
|
240.1 |
% |
|
|
(2.1 |
)% |
|
|
0.4 |
% |
(Loss) income before income taxes |
|
|
(8,682 |
) |
|
|
995 |
|
|
N.M. |
|
|
|
(16.5 |
)% |
|
|
1.2 |
% |
|
Income tax expense (1) |
|
|
(286 |
) |
|
|
(1,284 |
) |
|
|
(77.7 |
)% |
|
|
(3.3 |
)% |
|
|
129.0 |
% |
Net loss |
|
$ |
(8,968 |
) |
|
$ |
(289 |
) |
|
N.M |
|
|
|
(17.1 |
)% |
|
|
(0.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net loss per share - basic |
|
$ |
(0.73 |
) |
|
$ |
(0.02 |
) |
|
N.M. |
|
|
|
|
|
|
|
|||
Net loss per share - diluted |
|
$ |
(0.73 |
) |
|
$ |
(0.02 |
) |
|
N.M. |
|
|
|
|
|
|
|
|||
Average shares outstanding-basic |
|
|
12,299 |
|
|
|
12,212 |
|
|
|
0.7 |
% |
|
|
|
|
|
|
||
Average shares outstanding-diluted |
|
|
12,299 |
|
|
|
12,212 |
|
|
|
0.7 |
% |
|
|
|
|
|
|
Notes |
||
|
||
(1) |
Percent of sales column for income tax expense is calculated as a % of (loss) income before income taxes. |
|
(2) |
Restructuring expense of |
|
(3) |
See page 14 for our Reconciliation of Selected Income Statement Information to Adjusted Results for the three-months ending |
|
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CONSOLIDATED STATEMENTS OF NET (LOSS) INCOME |
||||||||||||||||||||
FOR NINE MONTHS ENDED |
||||||||||||||||||||
Unaudited |
||||||||||||||||||||
(Amounts in Thousands, Except for Per Share Data) |
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||||||||||||||||||||
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|
NINE MONTHS ENDED |
|
|||||||||||||||||
|
|
Amount |
|
|
|
|
|
Percent of Sales |
|
|||||||||||
|
|
(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
% Over |
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|
|
|
|
|
|
|||||
|
|
2023 |
|
|
2022 |
|
|
(Under) |
|
|
2023 |
|
|
2022 |
|
|||||
Net sales |
|
$ |
173,508 |
|
|
$ |
237,899 |
|
|
|
(27.1 |
)% |
|
|
100.0 |
% |
|
|
100.0 |
% |
Cost of sales (2) |
|
|
(169,500 |
) |
|
|
(205,563 |
) |
|
|
(17.5 |
)% |
|
|
97.7 |
% |
|
|
86.4 |
% |
Gross profit |
|
|
4,008 |
|
|
|
32,336 |
|
|
|
(87.6 |
)% |
|
|
2.3 |
% |
|
|
13.6 |
% |
Selling, general and administrative expenses |
|
|
(27,133 |
) |
|
|
(26,275 |
) |
|
|
3.3 |
% |
|
|
15.6 |
% |
|
|
11.0 |
% |
Restructuring expense (3) |
|
|
(1,326 |
) |
|
|
— |
|
|
|
100.0 |
% |
|
|
0.8 |
% |
|
|
— |
|
(Loss) income from operations |
|
|
(24,451 |
) |
|
|
6,061 |
|
|
N.M. |
|
|
|
(14.1 |
)% |
|
|
2.5 |
% |
|
Interest income |
|
|
292 |
|
|
|
347 |
|
|
|
(15.9 |
)% |
|
|
0.2 |
% |
|
|
0.1 |
% |
Other expense |
|
|
(348 |
) |
|
|
(963 |
) |
|
|
(63.9 |
)% |
|
|
0.2 |
% |
|
|
0.4 |
% |
(Loss) income before income taxes |
|
|
(24,507 |
) |
|
|
5,445 |
|
|
N.M. |
|
|
|
(14.1 |
)% |
|
|
2.3 |
% |
|
Income tax expense (1) |
|
|
(2,332 |
) |
|
|
(2,633 |
) |
|
|
(11.4 |
)% |
|
|
(9.5 |
)% |
|
|
48.4 |
% |
Net (loss) income |
|
$ |
(26,839 |
) |
|
$ |
2,812 |
|
|
N.M. |
|
|
|
(15.5 |
)% |
|
|
1.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net (loss) income per share - basic |
|
$ |
(2.19 |
) |
|
$ |
0.23 |
|
|
N.M. |
|
|
|
|
|
|
|
|||
Net (loss) income per share - diluted |
|
$ |
(2.19 |
) |
|
$ |
0.23 |
|
|
N.M. |
|
|
|
|
|
|
|
|||
Average shares outstanding-basic |
|
|
12,272 |
|
|
|
12,249 |
|
|
|
0.2 |
% |
|
|
|
|
|
|
||
Average shares outstanding-diluted |
|
|
12,272 |
|
|
|
12,341 |
|
|
|
(0.6 |
)% |
|
|
|
|
|
|
Notes |
||
|
|
|
(1) |
Percent of sales column for income tax expense is calculated as a % of (loss) income before income taxes. |
|
|
|
|
(2) |
Cost of sales for the nine-months ending |
|
|
|
|
(3) |
Restructuring expense of |
|
|
|
|
(4) |
See page 15 for our Reconciliation of Selected Income Statement Information to Adjusted Results for the nine-months ending |
CONSOLIDATED BALANCE SHEETS |
||||||||||||||||||||
|
||||||||||||||||||||
Unaudited |
||||||||||||||||||||
(Amounts in Thousands) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
Amounts |
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
(Condensed) |
|
|
(Condensed) |
|
|
|
|
|
|
|
|
(Condensed) |
|
|||||
|
|
|
|
|
|
|
|
Increase (Decrease) |
|
|
* |
|
||||||||
|
|
2023 |
|
|
2022 |
|
|
Dollars |
|
|
Percent |
|
|
2022 |
|
|||||
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents |
|
$ |
16,725 |
|
|
|
11,780 |
|
|
|
4,945 |
|
|
|
42.0 |
% |
|
|
14,550 |
|
Short-term investments - Held-To-Maturity |
|
|
— |
|
|
|
1,315 |
|
|
|
(1,315 |
) |
|
|
(100.0 |
)% |
|
|
— |
|
Short-term investments - Available for Sale |
|
|
— |
|
|
|
438 |
|
|
|
(438 |
) |
|
|
(100.0 |
)% |
|
|
— |
|
Short-term investments - Rabbi Trust |
|
|
2,420 |
|
|
|
— |
|
|
|
2,420 |
|
|
|
100.0 |
% |
|
|
— |
|
Accounts receivable |
|
|
21,241 |
|
|
|
38,998 |
|
|
|
(17,757 |
) |
|
|
(45.5 |
)% |
|
|
22,226 |
|
Inventories |
|
|
47,627 |
|
|
|
73,133 |
|
|
|
(25,506 |
) |
|
|
(34.9 |
)% |
|
|
66,557 |
|
Assets held for sale |
|
|
1,950 |
|
|
|
— |
|
|
|
1,950 |
|
|
|
100.0 |
% |
|
|
— |
|
Current income taxes receivable |
|
|
238 |
|
|
|
367 |
|
|
|
(129 |
) |
|
|
(35.1 |
)% |
|
|
857 |
|
Other current assets |
|
|
2,839 |
|
|
|
4,419 |
|
|
|
(1,580 |
) |
|
|
(35.8 |
)% |
|
|
2,986 |
|
Total current assets |
|
|
93,040 |
|
|
|
130,450 |
|
|
|
(37,410 |
) |
|
|
(28.7 |
)% |
|
|
107,176 |
|
Property, plant & equipment, net |
|
|
37,192 |
|
|
|
42,778 |
|
|
|
(5,586 |
) |
|
|
(13.1 |
)% |
|
|
41,702 |
|
Right of use assets |
|
|
8,913 |
|
|
|
16,595 |
|
|
|
(7,682 |
) |
|
|
(46.3 |
)% |
|
|
15,577 |
|
Intangible assets |
|
|
2,346 |
|
|
|
2,722 |
|
|
|
(376 |
) |
|
|
(13.8 |
)% |
|
|
2,628 |
|
Long-term investments - Rabbi Trust |
|
|
7,725 |
|
|
|
9,223 |
|
|
|
(1,498 |
) |
|
|
(16.2 |
)% |
|
|
9,357 |
|
Long-term investments - Held-To-Maturity |
|
|
— |
|
|
|
8,677 |
|
|
|
(8,677 |
) |
|
|
(100.0 |
)% |
|
|
— |
|
Deferred income taxes |
|
|
463 |
|
|
|
500 |
|
|
|
(37 |
) |
|
|
(7.4 |
)% |
|
|
528 |
|
Other assets |
|
|
919 |
|
|
|
622 |
|
|
|
297 |
|
|
|
47.7 |
% |
|
|
595 |
|
Total assets |
|
$ |
150,598 |
|
|
|
211,567 |
|
|
|
(60,969 |
) |
|
|
(28.8 |
)% |
|
|
177,563 |
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Accounts payable - trade |
|
|
22,540 |
|
|
|
46,690 |
|
|
|
(24,150 |
) |
|
|
(51.7 |
)% |
|
|
20,099 |
|
Accounts payable - capital expenditures |
|
|
25 |
|
|
|
33 |
|
|
|
(8 |
) |
|
|
(24.2 |
)% |
|
|
473 |
|
Operating lease liability - current |
|
|
2,785 |
|
|
|
3,295 |
|
|
|
(510 |
) |
|
|
(15.5 |
)% |
|
|
3,219 |
|
Deferred compensation |
|
|
2,420 |
|
|
|
— |
|
|
|
2,420 |
|
|
|
100.0 |
% |
|
|
— |
|
Deferred revenue |
|
|
1,430 |
|
|
|
518 |
|
|
|
912 |
|
|
|
176.1 |
% |
|
|
520 |
|
Accrued expenses |
|
|
6,701 |
|
|
|
8,446 |
|
|
|
(1,745 |
) |
|
|
(20.7 |
)% |
|
|
7,832 |
|
Income taxes payable - current |
|
|
467 |
|
|
|
240 |
|
|
|
227 |
|
|
|
94.6 |
% |
|
|
413 |
|
Total current liabilities |
|
|
36,368 |
|
|
|
59,222 |
|
|
|
(22,854 |
) |
|
|
(38.6 |
)% |
|
|
32,556 |
|
Operating lease liability - long-term |
|
|
4,399 |
|
|
|
7,848 |
|
|
|
(3,449 |
) |
|
|
(43.9 |
)% |
|
|
7,062 |
|
Income taxes payable - long-term |
|
|
2,648 |
|
|
|
3,099 |
|
|
|
(451 |
) |
|
|
(14.6 |
)% |
|
|
3,097 |
|
Deferred income taxes |
|
|
6,089 |
|
|
|
5,484 |
|
|
|
605 |
|
|
|
11.0 |
% |
|
|
6,004 |
|
Deferred compensation |
|
|
7,590 |
|
|
|
9,180 |
|
|
|
(1,590 |
) |
|
|
(17.3 |
)% |
|
|
9,343 |
|
Total liabilities |
|
|
57,094 |
|
|
|
84,833 |
|
|
|
(27,739 |
) |
|
|
(32.7 |
)% |
|
|
58,062 |
|
Shareholders' equity |
|
|
93,504 |
|
|
|
126,734 |
|
|
|
(33,230 |
) |
|
|
(26.2 |
)% |
|
|
119,501 |
|
Total liabilities and shareholders' equity |
|
$ |
150,598 |
|
|
|
211,567 |
|
|
|
(60,969 |
) |
|
|
(28.8 |
)% |
|
|
177,563 |
|
Shares outstanding |
|
|
12,312 |
|
|
|
12,218 |
|
|
|
94 |
|
|
|
0.8 |
% |
|
|
12,229 |
|
* Derived from audited financial statements. |
|
||||||||||||
SUMMARY OF CASH AND INVESTMENTS |
||||||||||||
|
||||||||||||
Unaudited |
||||||||||||
(Amounts in Thousands) |
||||||||||||
|
|
Amounts |
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||
|
|
2023 |
|
|
2022 |
|
|
2022* |
|
|||
Cash and Investments |
|
|
|
|
|
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
16,725 |
|
|
$ |
11,780 |
|
|
$ |
14,550 |
|
Short-term investments - Available for Sale |
|
|
— |
|
|
|
438 |
|
|
|
— |
|
Short-term investments - Held-To-Maturity |
|
|
— |
|
|
|
1,315 |
|
|
|
— |
|
Long-term investments - Held-To-Maturity |
|
|
— |
|
|
|
8,677 |
|
|
|
— |
|
Total Cash and Investments |
|
$ |
16,725 |
|
|
$ |
22,210 |
|
|
$ |
14,550 |
|
|
|
|
|
|
|
|
|
|
|
* Derived from audited financial statements. |
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
FOR THE NINE MONTHS ENDED |
||||||||
Unaudited |
||||||||
(Amounts in Thousands) |
||||||||
|
|
NINE MONTHS ENDED |
|
|||||
|
|
Amounts |
|
|||||
|
|
|
|
|
|
|
||
|
|
2023 |
|
|
2022 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net (loss) income |
|
$ |
(26,839 |
) |
|
$ |
2,812 |
|
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
||
Depreciation |
|
|
5,228 |
|
|
|
5,203 |
|
Non-cash inventory charges (2) (3) |
|
|
6,301 |
|
|
|
1,407 |
|
Amortization |
|
|
323 |
|
|
|
417 |
|
Stock-based compensation |
|
|
887 |
|
|
|
880 |
|
Deferred income taxes |
|
|
150 |
|
|
|
199 |
|
Realized loss from the sale of short-term investments available for sale |
|
|
— |
|
|
|
28 |
|
Gain on sale of equipment |
|
|
(312 |
) |
|
|
— |
|
Non-cash restructuring expense |
|
|
791 |
|
|
|
— |
|
Foreign currency exchange (gain) loss |
|
|
(362 |
) |
|
|
240 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
954 |
|
|
|
(1,228 |
) |
Inventories |
|
|
12,477 |
|
|
|
(18,453 |
) |
Other current assets |
|
|
(39 |
) |
|
|
(571 |
) |
Other assets |
|
|
(76 |
) |
|
|
(1,404 |
) |
Accounts payable |
|
|
3,051 |
|
|
|
3,865 |
|
Deferred revenue |
|
|
910 |
|
|
|
(22 |
) |
Accrued expenses and deferred compensation |
|
|
885 |
|
|
|
(5,130 |
) |
Income taxes |
|
|
254 |
|
|
|
(612 |
) |
Net cash provided by (used in) operating activities |
|
|
4,583 |
|
|
|
(12,369 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
||
Capital expenditures |
|
|
(1,602 |
) |
|
|
(5,288 |
) |
Proceeds from the sale of equipment |
|
|
465 |
|
|
|
— |
|
Proceeds from the maturity of short-term investments (Held to Maturity) |
|
|
— |
|
|
|
3,953 |
|
Purchase of short-term and long-term investments (Held to Maturity) |
|
|
— |
|
|
|
(9,751 |
) |
Purchase of short-term investments (Available for Sale) |
|
|
— |
|
|
|
(4,392 |
) |
Proceeds from the sale of short-term investments (Available for Sale) |
|
|
— |
|
|
|
9,442 |
|
Proceeds from the sale of long-term investments (rabbi trust) |
|
|
70 |
|
|
|
33 |
|
Purchase of long-term investments (rabbi trust) |
|
|
(870 |
) |
|
|
(873 |
) |
Net cash used in investing activities |
|
|
(1,937 |
) |
|
|
(6,876 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Payments associated with lines of credit |
|
|
— |
|
|
|
(3,000 |
) |
Proceeds associated with lines of credit |
|
|
— |
|
|
|
3,000 |
|
Dividends paid |
|
|
— |
|
|
|
(4,104 |
) |
Common stock repurchased |
|
|
— |
|
|
|
(1,752 |
) |
Common stock surrendered for withholding taxes payable |
|
|
(33 |
) |
|
|
(50 |
) |
Payments of debt issuance costs |
|
|
(289 |
) |
|
|
(110 |
) |
Net cash used in financing activities |
|
|
(322 |
) |
|
|
(6,016 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
(149 |
) |
|
|
32 |
|
Increase (decrease) in cash and cash equivalents |
|
|
2,175 |
|
|
|
(25,229 |
) |
Cash and cash equivalents at beginning of year |
|
|
14,550 |
|
|
|
37,009 |
|
Cash and cash equivalents at end of period |
|
$ |
16,725 |
|
|
$ |
11,780 |
|
Free Cash Flow (1) |
|
$ |
2,497 |
|
|
$ |
(18,465 |
) |
(1) |
See next page for Reconciliation of Free Cash Flow for the nine-month periods ending |
|
|
|
|
(2) |
The non-cash inventory charge of |
|
|
|
|
(3) |
The non-cash inventory charge of |
Reconciliation of Free Cash Flow:
|
|
FY 2023 |
|
|
FY 2022 |
|
||
A) Net cash provided by (used in) operating activities |
|
$ |
4,583 |
|
|
$ |
(12,369 |
) |
B) Minus: Capital Expenditures |
|
|
(1,602 |
) |
|
|
(5,288 |
) |
|
|
|
465 |
|
|
|
— |
|
D) Plus: Proceeds from the sale of long-term investments (rabbi trust) |
|
|
70 |
|
|
|
33 |
|
E) Minus: Purchase of long-term investments (rabbi trust) |
|
|
(870 |
) |
|
|
(873 |
) |
F) Effects of exchange rate changes on cash and cash equivalents |
|
|
(149 |
) |
|
|
32 |
|
Free Cash Flow |
|
$ |
2,497 |
|
|
$ |
(18,465 |
) |
|
||||||||||||||||||||
STATEMENTS OF OPERATIONS BY SEGMENT |
||||||||||||||||||||
FOR THE THREE MONTHS ENDED |
||||||||||||||||||||
Unaudited |
||||||||||||||||||||
(Amounts in Thousands) |
||||||||||||||||||||
|
|
THREE MONTHS ENDED |
|
|||||||||||||||||
|
|
Amounts |
|
|
|
|
|
Percent of Total Sales |
|
|||||||||||
|
|
|
|
|
|
|
|
% Over |
|
|
|
|
|
|
|
|||||
|
|
2023 |
|
|
2022 |
|
|
(Under) |
|
|
2023 |
|
|
2022 |
|
|||||
Mattress Fabrics |
|
$ |
24,697 |
|
|
$ |
38,439 |
|
|
|
(35.8 |
)% |
|
|
47.0 |
% |
|
|
47.9 |
% |
Upholstery Fabrics |
|
|
27,826 |
|
|
|
41,852 |
|
|
|
(33.5 |
)% |
|
|
53.0 |
% |
|
|
52.1 |
% |
|
|
$ |
52,523 |
|
|
$ |
80,291 |
|
|
|
(34.6 |
)% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gross (Loss) Profit |
|
|
|
|
|
|
|
|
|
|
Gross Margin |
|
||||||||
Mattress Fabrics |
|
$ |
(1,237 |
) |
|
$ |
3,164 |
|
|
|
(139.1 |
)% |
|
|
(5.0 |
)% |
|
|
8.2 |
% |
Upholstery Fabrics |
|
|
3,330 |
|
|
|
5,946 |
|
|
|
(44.0 |
)% |
|
|
12.0 |
% |
|
|
14.2 |
% |
Gross Profit |
|
$ |
2,093 |
|
|
$ |
9,110 |
|
|
|
(77.0 |
)% |
|
|
4.0 |
% |
|
|
11.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Selling, General and Administrative Expenses by Segment |
|
|
|
|
|
|
|
|
|
|
Percent of Sales |
|
||||||||
Mattress Fabrics |
|
$ |
2,992 |
|
|
$ |
2,800 |
|
|
|
6.9 |
% |
|
|
12.1 |
% |
|
|
7.3 |
% |
Upholstery Fabrics |
|
|
3,750 |
|
|
|
3,500 |
|
|
|
7.1 |
% |
|
|
13.5 |
% |
|
|
8.4 |
% |
Unallocated Corporate expenses |
|
|
2,423 |
|
|
|
1,707 |
|
|
|
41.9 |
% |
|
|
4.6 |
% |
|
|
2.1 |
% |
Selling, General and Administrative Expenses |
|
$ |
9,165 |
|
|
$ |
8,007 |
|
|
|
14.5 |
% |
|
|
17.4 |
% |
|
|
10.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(Loss) Income from Operations by Segment |
|
|
|
|
|
|
|
|
|
|
Operating Margin |
|
||||||||
Mattress Fabrics |
|
$ |
(4,229 |
) |
|
$ |
364 |
|
|
N.M. |
|
|
|
(17.1 |
)% |
|
|
0.9 |
% |
|
Upholstery Fabrics |
|
|
(420 |
) |
|
|
2,446 |
|
|
N.M. |
|
|
|
(1.5 |
)% |
|
|
5.8 |
% |
|
Unallocated corporate expenses |
|
|
(2,423 |
) |
|
|
(1,707 |
) |
|
|
41.9 |
% |
|
|
(4.6 |
)% |
|
|
(2.1 |
)% |
Total Segment (Loss) Income from Operations |
|
|
(7,072 |
) |
|
|
1,103 |
|
|
N.M. |
|
|
|
(13.5 |
)% |
|
|
1.4 |
% |
|
Restructuring Expense (1) |
|
|
(711 |
) |
|
|
— |
|
|
|
100.0 |
% |
|
|
(1.4 |
)% |
|
|
— |
|
(Loss) Income from Operations |
|
$ |
(7,783 |
) |
|
$ |
1,103 |
|
|
N.M. |
|
|
|
(14.8 |
)% |
|
|
1.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation Expense by Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mattress Fabrics |
|
$ |
1,536 |
|
|
$ |
1,542 |
|
|
|
(0.4 |
)% |
|
|
|
|
|
|
||
Upholstery Fabrics |
|
|
203 |
|
|
|
190 |
|
|
|
6.8 |
% |
|
|
|
|
|
|
||
Depreciation Expense |
|
$ |
1,739 |
|
|
$ |
1,732 |
|
|
|
0.4 |
% |
|
|
|
|
|
|
Notes | ||
(1) |
See page 14 for our Reconciliation of Selected Income Statement Information to Adjusted Results for the three-months ending |
|
||||||||||||||||||||
STATEMENTS OF OPERATIONS BY SEGMENT |
||||||||||||||||||||
FOR THE NINE MONTHS ENDED |
||||||||||||||||||||
Unaudited |
||||||||||||||||||||
(Amounts in Thousands) |
||||||||||||||||||||
|
||||||||||||||||||||
|
|
NINE MONTHS ENDED |
|
|||||||||||||||||
|
|
Amounts |
|
|
|
|
|
Percent of Total Sales |
|
|||||||||||
|
|
|
|
|
|
|
|
% Over |
|
|
|
|
|
|
|
|||||
|
|
2023 |
|
|
2022 |
|
|
(Under) |
|
|
2023 |
|
|
2022 |
|
|||||
Mattress Fabrics |
|
$ |
80,299 |
|
|
$ |
122,380 |
|
|
|
(34.4 |
)% |
|
|
46.3 |
% |
|
|
51.4 |
% |
Upholstery Fabrics |
|
|
93,209 |
|
|
|
115,519 |
|
|
|
(19.3 |
)% |
|
|
53.7 |
% |
|
|
48.6 |
% |
|
|
$ |
173,508 |
|
|
$ |
237,899 |
|
|
|
(27.1 |
)% |
|
|
100.0 |
% |
|
|
100.0 |
% |
Gross (Loss) Profit |
|
|
|
|
|
|
|
|
|
|
Gross Profit Margin |
|
||||||||
Mattress Fabrics |
|
$ |
(7,330 |
) |
|
$ |
16,106 |
|
|
|
(145.5 |
)% |
|
|
(9.1 |
)% |
|
|
13.2 |
% |
Upholstery Fabrics |
|
|
11,436 |
|
|
|
16,230 |
|
|
|
(29.5 |
)% |
|
|
12.3 |
% |
|
|
14.0 |
% |
Total Segment Gross Profit |
|
|
4,106 |
|
|
|
32,336 |
|
|
|
(87.3 |
)% |
|
|
2.4 |
% |
|
|
13.6 |
% |
Restructuring Related Charge (3) |
|
|
(98 |
) |
|
|
— |
|
|
|
100.0 |
% |
|
|
(0.1 |
)% |
|
|
— |
|
Gross Profit |
|
$ |
4,008 |
|
|
$ |
32,336 |
|
|
|
(87.6 |
)% |
|
|
2.3 |
% |
|
|
13.6 |
% |
Selling, General and Administrative Expenses by Segment |
|
|
|
|
|
|
|
|
|
|
Percent of Sales |
|
||||||||
Mattress Fabrics |
|
$ |
8,821 |
|
|
$ |
8,991 |
|
|
|
(1.9 |
)% |
|
|
11.0 |
% |
|
|
7.3 |
% |
Upholstery Fabrics |
|
|
11,053 |
|
|
|
10,491 |
|
|
|
5.4 |
% |
|
|
11.9 |
% |
|
|
9.1 |
% |
Unallocated Corporate expenses |
|
|
7,259 |
|
|
|
6,793 |
|
|
|
6.9 |
% |
|
|
4.2 |
% |
|
|
2.9 |
% |
Selling, General and Administrative Expenses |
|
$ |
27,133 |
|
|
$ |
26,275 |
|
|
|
3.3 |
% |
|
|
15.6 |
% |
|
|
11.0 |
% |
(Loss) Income from Operations by Segment |
|
|
|
|
|
|
|
|
|
|
Operating Margin |
|
||||||||
Mattress Fabrics |
|
$ |
(16,151 |
) |
|
$ |
7,115 |
|
|
N.M. |
|
|
|
(20.1 |
)% |
|
|
5.8 |
% |
|
Upholstery Fabrics |
|
|
383 |
|
|
|
5,739 |
|
|
|
(93.3 |
)% |
|
|
0.4 |
% |
|
|
5.0 |
% |
Unallocated corporate expenses |
|
|
(7,259 |
) |
|
|
(6,793 |
) |
|
|
6.9 |
% |
|
|
(4.2 |
)% |
|
|
(2.9 |
)% |
Total Segment (Loss) Income from Operations |
|
|
(23,027 |
) |
|
|
6,061 |
|
|
N.M. |
|
|
|
(13.3 |
)% |
|
|
2.5 |
% |
|
Restructuring Expense (3) |
|
|
(1,326 |
) |
|
|
— |
|
|
|
100.0 |
% |
|
|
(0.8 |
)% |
|
|
— |
|
Restructuring Related Charge (3) |
|
|
(98 |
) |
|
|
— |
|
|
|
100.0 |
% |
|
|
(0.1 |
)% |
|
|
— |
|
(Loss) Income from Operations |
|
$ |
(24,451 |
) |
|
|
6,061 |
|
|
N.M. |
|
|
|
(14.1 |
)% |
|
|
2.5 |
% |
|
Return on Capital (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mattress Fabrics |
|
|
(24.8 |
)% |
|
|
12.1 |
% |
|
|
(305.0 |
)% |
|
|
|
|
|
|
||
Upholstery Fabrics |
|
|
1.3 |
% |
|
|
49.7 |
% |
|
|
(97.4 |
)% |
|
|
|
|
|
|
||
Unallocated Corporate |
|
N.M. |
|
|
N.M. |
|
|
N.M. |
|
|
|
|
|
|
|
|||||
Consolidated |
|
|
(28.1 |
)% |
|
|
8.0 |
% |
|
|
(451.3 |
)% |
|
|
|
|
|
|
||
Capital Employed (1) (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mattress Fabrics |
|
$ |
65,882 |
|
|
$ |
86,830 |
|
|
|
(24.1 |
)% |
|
|
|
|
|
|
||
Upholstery Fabrics |
|
|
15,450 |
|
|
|
21,676 |
|
|
|
(28.7 |
)% |
|
|
|
|
|
|
||
Unallocated Corporate |
|
|
3,815 |
|
|
|
3,931 |
|
|
|
(3.0 |
)% |
|
|
|
|
|
|
||
Consolidated |
|
$ |
85,147 |
|
|
$ |
112,437 |
|
|
|
(24.3 |
)% |
|
|
|
|
|
|
||
Depreciation Expense by Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mattress Fabrics |
|
$ |
4,624 |
|
|
$ |
4,613 |
|
|
|
0.2 |
% |
|
|
|
|
|
|
||
Upholstery Fabrics |
|
|
604 |
|
|
|
590 |
|
|
|
2.4 |
% |
|
|
|
|
|
|
||
Depreciation Expense |
|
$ |
5,228 |
|
|
$ |
5,203 |
|
|
|
0.5 |
% |
|
|
|
|
|
|
Notes |
||
|
|
|
(1) |
See return on capital pages at the back of this presentation. |
|
|
|
|
(2) |
The capital employed balances are as of |
|
|
|
|
(3) |
See page 15 for our Reconciliation of Selected Income Statement Information to Adjusted Results for the nine-months ending |
|
||||||||||||
RECONCILIATION OF SELECTED INCOME STATEMENT INFORMATION TO ADJUSTED RESULTS |
||||||||||||
FOR THREE MONTHS ENDED |
||||||||||||
Unaudited |
||||||||||||
(Amounts in Thousands) |
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
As Reported |
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
Adjusted |
|
|||
|
|
2023 |
|
|
Adjustments |
|
|
Results |
|
|||
Net sales |
|
$ |
52,523 |
|
|
|
— |
|
|
$ |
52,523 |
|
Cost of sales |
|
|
(50,430 |
) |
|
|
— |
|
|
|
(50,430 |
) |
Gross profit |
|
|
2,093 |
|
|
|
— |
|
|
|
2,093 |
|
Selling, general and administrative expenses |
|
|
(9,165 |
) |
|
|
— |
|
|
|
(9,165 |
) |
Restructuring expense (1) |
|
|
(711 |
) |
|
711 |
|
|
|
— |
|
|
Loss from operations |
|
$ |
(7,783 |
) |
|
|
711 |
|
|
$ |
(7,072 |
) |
Notes | ||
|
|
|
(1) |
Restructuring expense of |
|
||||||||||||
|
||||||||||||
RECONCILIATION OF SELECTED INCOME STATEMENT INFORMATION TO ADJUSTED RESULTS |
||||||||||||
FOR NINE MONTHS ENDED |
||||||||||||
Unaudited |
||||||||||||
(Amounts in Thousands) |
||||||||||||
|
|
As Reported |
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
Adjusted |
|
|||
|
|
2023 |
|
|
Adjustments |
|
|
Results |
|
|||
Net sales |
|
$ |
173,508 |
|
|
|
— |
|
|
$ |
173,508 |
|
Cost of sales (1) |
|
|
(169,500 |
) |
|
98 |
|
|
|
(169,402 |
) |
|
Gross profit |
|
|
4,008 |
|
|
|
98 |
|
|
|
4,106 |
|
Selling, general and administrative expenses |
|
|
(27,133 |
) |
|
|
— |
|
|
|
(27,133 |
) |
Restructuring expense (2) |
|
|
(1,326 |
) |
|
|
1,326 |
|
|
|
— |
|
Loss from operations |
|
$ |
(24,451 |
) |
|
|
1,424 |
|
|
$ |
(23,027 |
) |
Notes | ||
(1) |
Cost of sales for the nine-months ending |
|
|
|
|
(2) |
Restructuring expense of |
|
||||||||||||||||||||
CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA |
||||||||||||||||||||
FOR THE TWELVE MONTHS ENDED |
||||||||||||||||||||
Unaudited |
||||||||||||||||||||
(Amounts in Thousands) |
||||||||||||||||||||
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Trailing
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2023 |
|
|
2023 |
|
|||||
Net loss (1) |
|
$ |
(6,023 |
) |
|
$ |
(5,699 |
) |
|
$ |
(12,173 |
) |
|
$ |
(8,968 |
) |
|
$ |
(32,863 |
) |
Income tax expense |
|
|
253 |
|
|
|
896 |
|
|
|
1,150 |
|
|
|
286 |
|
|
|
2,585 |
|
Interest income, net |
|
|
(26 |
) |
|
|
(17 |
) |
|
|
(79 |
) |
|
|
(196 |
) |
|
|
(318 |
) |
Depreciation expense |
|
|
1,791 |
|
|
|
1,770 |
|
|
|
1,719 |
|
|
|
1,739 |
|
|
|
7,019 |
|
Restructuring expense |
|
|
— |
|
|
|
— |
|
|
|
615 |
|
|
|
711 |
|
|
|
1,326 |
|
Restructuring related charge |
|
|
— |
|
|
|
— |
|
|
|
98 |
|
|
|
— |
|
|
|
98 |
|
Amortization expense |
|
|
142 |
|
|
|
105 |
|
|
|
109 |
|
|
|
109 |
|
|
|
465 |
|
Stock based compensation |
|
|
253 |
|
|
|
252 |
|
|
|
313 |
|
|
|
322 |
|
|
|
1,140 |
|
Adjusted EBITDA (1) |
|
$ |
(3,610 |
) |
|
$ |
(2,693 |
) |
|
$ |
(8,248 |
) |
|
$ |
(5,997 |
) |
|
$ |
(20,548 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
% |
|
|
(6.3 |
)% |
|
|
(4.3 |
)% |
|
|
(14.1 |
)% |
|
|
(11.4 |
)% |
|
|
(8.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Quarter
|
|
|
Trailing
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2022 |
|
|
2022 |
|
|||||
Net income (loss) |
|
$ |
1,485 |
|
|
$ |
2,250 |
|
|
$ |
851 |
|
|
$ |
(289 |
) |
|
$ |
4,297 |
|
Income tax expense |
|
|
857 |
|
|
|
905 |
|
|
|
444 |
|
|
|
1,284 |
|
|
|
3,490 |
|
Interest income, net |
|
|
(36 |
) |
|
|
(74 |
) |
|
|
(59 |
) |
|
|
(214 |
) |
|
|
(383 |
) |
Gain on bargain purchase |
|
|
(819 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(819 |
) |
Depreciation expense |
|
|
1,643 |
|
|
|
1,726 |
|
|
|
1,745 |
|
|
|
1,732 |
|
|
|
6,846 |
|
Amortization expense |
|
|
116 |
|
|
|
121 |
|
|
|
146 |
|
|
|
150 |
|
|
|
533 |
|
Stock based compensation |
|
|
485 |
|
|
|
274 |
|
|
|
435 |
|
|
|
171 |
|
|
|
1,365 |
|
Adjusted EBITDA |
|
$ |
3,731 |
|
|
$ |
5,202 |
|
|
$ |
3,562 |
|
|
$ |
2,834 |
|
|
$ |
15,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
% |
|
|
4.7 |
% |
|
|
6.3 |
% |
|
|
4.8 |
% |
|
|
3.5 |
% |
|
|
4.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
% Over (Under) |
|
|
(196.8 |
)% |
|
|
(151.8 |
)% |
|
|
(331.6 |
)% |
|
|
(311.6 |
)% |
|
|
(234.0 |
)% |
(1) |
Net loss and Adjusted EBITDA for the quarter ended |
|
||||||||||||||||||||||||||||||
RETURN ON CAPITAL EMPLOYED BY SEGMENT |
||||||||||||||||||||||||||||||
FOR THE TWELVE MONTHS ENDED |
||||||||||||||||||||||||||||||
Unaudited |
||||||||||||||||||||||||||||||
(Amounts in Thousands) |
||||||||||||||||||||||||||||||
|
Adjusted Operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Twelve Months
|
|
Average
|
|
Return on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Employed (3) |
|
Employed (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mattress Fabrics |
$ |
(19,053 |
) |
$ |
76,826 |
|
|
(24.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upholstery Fabrics |
|
268 |
|
|
20,290 |
|
|
1.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated Corporate |
|
(9,626 |
) |
|
3,955 |
|
N.M. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Total |
$ |
(28,411 |
) |
$ |
101,072 |
|
|
(28.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Capital Employed |
As of the three Months Ended |
|
|
As of the three Months Ended |
|
|
As of the three Months Ended |
|
|||||||||||||||||||||||||||||||
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|||||||||||||
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|||||||||||||
Total assets (4) |
$ |
75,393 |
|
|
39,817 |
|
|
35,388 |
|
|
150,598 |
|
|
$ |
78,366 |
|
|
44,934 |
|
|
38,330 |
|
|
161,630 |
|
|
$ |
90,842 |
|
|
51,053 |
|
|
38,595 |
|
|
180,490 |
|
|
Total liabilities |
|
(9,511 |
) |
|
(24,367 |
) |
|
(23,216 |
) |
|
(57,094 |
) |
|
|
(9,895 |
) |
|
(26,108 |
) |
|
(23,519 |
) |
|
(59,522 |
) |
|
|
(11,934 |
) |
|
(30,762 |
) |
|
(23,799 |
) |
|
(66,495 |
) |
|
Subtotal |
$ |
65,882 |
|
$ |
15,450 |
|
$ |
12,172 |
|
$ |
93,504 |
|
|
$ |
68,471 |
|
$ |
18,826 |
|
$ |
14,811 |
|
$ |
102,108 |
|
|
$ |
78,908 |
|
$ |
20,291 |
|
$ |
14,796 |
|
$ |
113,995 |
|
|
Cash and cash equivalents |
|
— |
|
|
— |
|
|
(16,725 |
) |
|
(16,725 |
) |
|
|
— |
|
|
— |
|
|
(19,137 |
) |
|
(19,137 |
) |
|
|
— |
|
|
— |
|
|
(18,874 |
) |
|
(18,874 |
) |
|
Short-term investments - Available-For-Sale |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Short-term investments - Held-To-Maturity |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Short-term investments - Rabbi Trust |
|
— |
|
|
— |
|
|
(2,420 |
) |
|
(2,420 |
) |
|
|
— |
|
|
— |
|
|
(2,237 |
) |
|
(2,237 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Current income taxes receivable |
|
— |
|
|
— |
|
|
(238 |
) |
|
(238 |
) |
|
|
— |
|
|
— |
|
|
(510 |
) |
|
(510 |
) |
|
|
— |
|
|
— |
|
|
(798 |
) |
|
(798 |
) |
|
Long-term investments - Held-To-Maturity |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Long-term investments - Rabbi Trust |
|
— |
|
|
— |
|
|
(7,725 |
) |
|
(7,725 |
) |
|
|
— |
|
|
— |
|
|
(7,526 |
) |
|
(7,526 |
) |
|
|
— |
|
|
— |
|
|
(9,567 |
) |
|
(9,567 |
) |
|
Deferred income taxes - non-current |
|
— |
|
|
— |
|
|
(463 |
) |
|
(463 |
) |
|
|
— |
|
|
— |
|
|
(493 |
) |
|
(493 |
) |
|
|
— |
|
|
— |
|
|
(546 |
) |
|
(546 |
) |
|
Deferred compensation - current |
|
— |
|
|
— |
|
|
2,420 |
|
|
2,420 |
|
|
|
— |
|
|
— |
|
|
2,237 |
|
|
2,237 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Accrued restructuring |
|
— |
|
|
— |
|
|
- |
|
|
— |
|
|
|
— |
|
|
— |
|
|
33 |
|
|
33 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Income taxes payable - current |
|
— |
|
|
— |
|
|
467 |
|
|
467 |
|
|
|
— |
|
|
— |
|
|
969 |
|
|
969 |
|
|
|
— |
|
|
— |
|
|
587 |
|
|
587 |
|
|
Income taxes payable - long-term |
|
— |
|
|
— |
|
|
2,648 |
|
|
2,648 |
|
|
|
— |
|
|
— |
|
|
2,629 |
|
|
2,629 |
|
|
|
— |
|
|
— |
|
|
3,118 |
|
|
3,118 |
|
|
Deferred income taxes - non-current |
|
— |
|
|
— |
|
|
6,089 |
|
|
6,089 |
|
|
|
— |
|
|
— |
|
|
5,700 |
|
|
5,700 |
|
|
|
— |
|
|
— |
|
|
6,007 |
|
|
6,007 |
|
|
Deferred compensation non-current |
|
— |
|
|
— |
|
|
7,590 |
|
|
7,590 |
|
|
|
— |
|
|
— |
|
|
7,486 |
|
|
7,486 |
|
|
|
— |
|
|
— |
|
|
9,528 |
|
|
9,528 |
|
|
Total Capital Employed |
$ |
65,882 |
|
$ |
15,450 |
|
$ |
3,815 |
|
$ |
85,147 |
|
|
$ |
68,471 |
|
$ |
18,826 |
|
$ |
3,962 |
|
$ |
91,259 |
|
|
$ |
78,908 |
|
$ |
20,291 |
|
$ |
4,251 |
|
$ |
103,450 |
|
|
||||||||||||||||||||||||||
RETURN ON CAPITAL EMPLOYED BY SEGMENT - CONTINUED |
||||||||||||||||||||||||||
FOR THE TWELVE MONTHS ENDED |
||||||||||||||||||||||||||
Unaudited |
||||||||||||||||||||||||||
(Amounts in Thousands) |
||||||||||||||||||||||||||
|
As of the three Months Ended |
|
|
As of the three Months Ended |
|
|||||||||||||||||||||
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|||||||||
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|||||||||
Total assets (4) |
$ |
92,609 |
|
|
51,124 |
|
|
33,830 |
|
|
177,563 |
|
|
$ |
103,370 |
|
|
67,272 |
|
|
40,925 |
|
|
211,567 |
|
|
Total liabilities |
|
(8,569 |
) |
|
(25,915 |
) |
|
(23,578 |
) |
|
(58,062 |
) |
|
|
(16,540 |
) |
|
(45,596 |
) |
|
(22,697 |
) |
|
(84,833 |
) |
|
Subtotal |
$ |
84,040 |
|
$ |
25,209 |
|
$ |
10,252 |
|
$ |
119,501 |
|
|
$ |
86,830 |
|
$ |
21,676 |
|
$ |
18,228 |
|
$ |
126,734 |
|
|
Cash and cash equivalents |
|
— |
|
|
— |
|
|
(14,550 |
) |
|
(14,550 |
) |
|
|
— |
|
|
— |
|
|
(11,780 |
) |
|
(11,780 |
) |
|
Short-term investments - Available-For-Sale |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
(438 |
) |
|
(438 |
) |
|
Short-term investments - Held-To-Maturity |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
(1,315 |
) |
|
(1,315 |
) |
|
Current income taxes receivable |
|
— |
|
|
— |
|
|
(857 |
) |
|
(857 |
) |
|
|
— |
|
|
— |
|
|
(367 |
) |
|
(367 |
) |
|
Long-term investments - Held-To-Maturity |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
(8,677 |
) |
|
(8,677 |
) |
|
Long-term investments - Rabbi Trust |
|
— |
|
|
— |
|
|
(9,357 |
) |
|
(9,357 |
) |
|
|
— |
|
|
— |
|
|
(9,223 |
) |
|
(9,223 |
) |
|
Deferred income taxes - non-current |
|
— |
|
|
— |
|
|
(528 |
) |
|
(528 |
) |
|
|
— |
|
|
— |
|
|
(500 |
) |
|
(500 |
) |
|
Income taxes payable - current |
|
— |
|
|
— |
|
|
413 |
|
|
413 |
|
|
|
— |
|
|
— |
|
|
240 |
|
|
240 |
|
|
Income taxes payable - long-term |
|
— |
|
|
— |
|
|
3,097 |
|
|
3,097 |
|
|
|
— |
|
|
— |
|
|
3,099 |
|
|
3,099 |
|
|
Deferred income taxes - non-current |
|
— |
|
|
— |
|
|
6,004 |
|
|
6,004 |
|
|
|
— |
|
|
— |
|
|
5,484 |
|
|
5,484 |
|
|
Deferred compensation |
|
— |
|
|
— |
|
|
9,343 |
|
|
9,343 |
|
|
|
— |
|
|
— |
|
|
9,180 |
|
|
9,180 |
|
|
Total Capital Employed |
$ |
84,040 |
|
$ |
25,209 |
|
$ |
3,817 |
|
$ |
113,066 |
|
|
$ |
86,830 |
|
$ |
21,676 |
|
$ |
3,931 |
|
$ |
112,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|
|
|
|
|
|
|
|
|
|||||||||
Average Capital Employed (3) |
$ |
76,826 |
|
$ |
20,290 |
|
$ |
3,955 |
|
$ |
101,072 |
|
|
|
|
|
|
|
|
|
|
Notes |
||
|
|
|
(1) |
See last page of this presentation for calculation. |
|
|
|
|
(2) |
Return on average capital employed represents the last twelve months operating (loss) income as of |
|
|
|
|
(3) |
Average capital employed was computed using the five quarterly periods ending |
|
|
|
|
(4) |
Intangible assets are included in unallocated corporate for all periods presented and therefore, have no effect on capital employed and return on capital employed for our mattress fabrics and upholstery fabrics segments. |
|
||||||||||||||||||||||||||||||
RETURN ON CAPITAL EMPLOYED BY SEGMENT |
||||||||||||||||||||||||||||||
FOR THE TWELVE MONTHS ENDED |
||||||||||||||||||||||||||||||
Unaudited |
||||||||||||||||||||||||||||||
(Amounts in Thousands) |
||||||||||||||||||||||||||||||
|
Adjusted Operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Twelve Months
|
|
Average
|
|
Return on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Employed (3) |
|
Employed (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mattress Fabrics |
$ |
9,388 |
|
$ |
77,348 |
|
|
12.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upholstery Fabrics |
|
8,354 |
|
|
16,818 |
|
|
49.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated Corporate |
|
(10,042 |
) |
|
2,069 |
|
N.M. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Total |
$ |
7,700 |
|
$ |
96,235 |
|
|
8.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Capital Employed |
As of the three Months Ended |
|
|
As of the three Months Ended |
|
|
As of the three Months Ended |
|
|||||||||||||||||||||||||||||||
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|||||||||||||
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|||||||||||||
Total assets (4) |
$ |
103,370 |
|
|
67,272 |
|
|
40,925 |
|
|
211,567 |
|
|
$ |
97,390 |
|
|
55,862 |
|
|
56,073 |
|
|
209,325 |
|
|
$ |
96,846 |
|
|
55,187 |
|
|
60,215 |
|
|
212,248 |
|
|
Total liabilities |
|
(16,540 |
) |
|
(45,596 |
) |
|
(22,697 |
) |
|
(84,833 |
) |
|
|
(18,818 |
) |
|
(38,560 |
) |
|
(23,493 |
) |
|
(80,871 |
) |
|
|
(21,298 |
) |
|
(39,983 |
) |
|
(21,418 |
) |
|
(82,699 |
) |
|
Subtotal |
$ |
86,830 |
|
$ |
21,676 |
|
$ |
18,228 |
|
$ |
126,734 |
|
|
$ |
78,572 |
|
$ |
17,302 |
|
$ |
32,580 |
|
$ |
128,454 |
|
|
$ |
75,548 |
|
$ |
15,204 |
|
$ |
38,797 |
|
$ |
129,549 |
|
|
Cash and cash equivalents |
|
— |
|
|
— |
|
|
(11,780 |
) |
|
(11,780 |
) |
|
|
— |
|
|
— |
|
|
(16,956 |
) |
|
(16,956 |
) |
|
|
— |
|
|
— |
|
|
(26,061 |
) |
|
(26,061 |
) |
|
Short-term investments - Available-For-Sale |
|
— |
|
|
— |
|
|
(438 |
) |
|
(438 |
) |
|
|
— |
|
|
— |
|
|
(9,709 |
) |
|
(9,709 |
) |
|
|
— |
|
|
— |
|
|
(9,698 |
) |
|
(9,698 |
) |
|
Short-term investments - Held-To-Maturity |
|
— |
|
|
— |
|
|
(1,315 |
) |
|
(1,315 |
) |
|
|
— |
|
|
— |
|
|
(1,564 |
) |
|
(1,564 |
) |
|
|
— |
|
|
— |
|
|
(1,661 |
) |
|
(1,661 |
) |
|
Current income taxes receivable |
|
— |
|
|
— |
|
|
(367 |
) |
|
(367 |
) |
|
|
— |
|
|
— |
|
|
(613 |
) |
|
(613 |
) |
|
|
— |
|
|
— |
|
|
(524 |
) |
|
(524 |
) |
|
Long-term investments - Held-To-Maturity |
|
— |
|
|
— |
|
|
(8,677 |
) |
|
(8,677 |
) |
|
|
— |
|
|
— |
|
|
(8,353 |
) |
|
(8,353 |
) |
|
|
— |
|
|
— |
|
|
(6,629 |
) |
|
(6,629 |
) |
|
Long-term investments - Rabbi Trust |
|
— |
|
|
— |
|
|
(9,223 |
) |
|
(9,223 |
) |
|
|
— |
|
|
— |
|
|
(9,036 |
) |
|
(9,036 |
) |
|
|
— |
|
|
— |
|
|
(8,841 |
) |
|
(8,841 |
) |
|
Deferred income taxes - non-current |
|
— |
|
|
— |
|
|
(500 |
) |
|
(500 |
) |
|
|
— |
|
|
— |
|
|
(452 |
) |
|
(452 |
) |
|
|
— |
|
|
— |
|
|
(455 |
) |
|
(455 |
) |
|
Income taxes payable - current |
|
— |
|
|
— |
|
|
240 |
|
|
240 |
|
|
|
— |
|
|
— |
|
|
646 |
|
|
646 |
|
|
|
— |
|
|
— |
|
|
253 |
|
|
253 |
|
|
Income taxes payable - long-term |
|
— |
|
|
— |
|
|
3,099 |
|
|
3,099 |
|
|
|
— |
|
|
— |
|
|
3,099 |
|
|
3,099 |
|
|
|
— |
|
|
— |
|
|
3,365 |
|
|
3,365 |
|
|
Deferred income taxes - non-current |
|
— |
|
|
— |
|
|
5,484 |
|
|
5,484 |
|
|
|
— |
|
|
— |
|
|
4,918 |
|
|
4,918 |
|
|
|
— |
|
|
— |
|
|
4,917 |
|
|
4,917 |
|
|
Deferred compensation |
|
— |
|
|
— |
|
|
9,180 |
|
|
9,180 |
|
|
|
— |
|
|
— |
|
|
9,017 |
|
|
9,017 |
|
|
|
— |
|
|
— |
|
|
8,795 |
|
|
8,795 |
|
|
Total Capital Employed |
$ |
86,830 |
|
$ |
21,676 |
|
$ |
3,931 |
|
$ |
112,437 |
|
|
$ |
78,572 |
|
$ |
17,302 |
|
$ |
3,577 |
|
$ |
99,451 |
|
|
$ |
75,548 |
|
$ |
15,204 |
|
$ |
2,258 |
|
$ |
93,010 |
|
|
||||||||||||||||||||||||||
RETURN ON CAPITAL EMPLOYED BY SEGMENT - CONTINUED |
||||||||||||||||||||||||||
FOR THE TWELVE MONTHS ENDED |
||||||||||||||||||||||||||
Unaudited |
||||||||||||||||||||||||||
(Amounts in Thousands) |
||||||||||||||||||||||||||
|
As of the three Months Ended |
|
|
As of the three Months Ended |
|
|||||||||||||||||||||
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|||||||||
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|||||||||
Total assets (4) |
$ |
97,861 |
|
|
53,875 |
|
|
62,344 |
|
|
214,080 |
|
|
$ |
91,842 |
|
|
52,803 |
|
|
67,333 |
|
|
211,978 |
|
|
Total liabilities |
|
(22,410 |
) |
|
(38,709 |
) |
|
(23,955 |
) |
|
(85,074 |
) |
|
|
(21,503 |
) |
|
(38,061 |
) |
|
(24,052 |
) |
|
(83,616 |
) |
|
Subtotal |
$ |
75,451 |
|
$ |
15,166 |
|
$ |
38,389 |
|
$ |
129,006 |
|
|
$ |
70,339 |
|
$ |
14,742 |
|
$ |
43,281 |
|
$ |
128,362 |
|
|
Cash and cash equivalents |
|
— |
|
|
— |
|
|
(37,009 |
) |
|
(37,009 |
) |
|
|
— |
|
|
— |
|
|
(35,987 |
) |
|
(35,987 |
) |
|
Short-term investments - Available-For-Sale |
|
— |
|
|
— |
|
|
(5,542 |
) |
|
(5,542 |
) |
|
|
— |
|
|
— |
|
|
(5,548 |
) |
|
(5,548 |
) |
|
Short-term investments - Held-To-Maturity |
|
— |
|
|
— |
|
|
(3,161 |
) |
|
(3,161 |
) |
|
|
— |
|
|
— |
|
|
(9,785 |
) |
|
(9,785 |
) |
|
Long-term investments - Held-To-Maturity |
|
— |
|
|
— |
|
|
(1,141 |
) |
|
(1,141 |
) |
|
|
— |
|
|
— |
|
|
(512 |
) |
|
(512 |
) |
|
Long-term investments - Rabbi Trust |
|
— |
|
|
— |
|
|
(8,415 |
) |
|
(8,415 |
) |
|
|
— |
|
|
— |
|
|
(8,232 |
) |
|
(8,232 |
) |
|
Deferred income taxes - non-current |
|
— |
|
|
— |
|
|
(545 |
) |
|
(545 |
) |
|
|
— |
|
|
— |
|
|
(640 |
) |
|
(640 |
) |
|
Income taxes payable - current |
|
— |
|
|
— |
|
|
229 |
|
|
229 |
|
|
|
— |
|
|
— |
|
|
1,129 |
|
|
1,129 |
|
|
Income taxes payable - long-term |
|
— |
|
|
— |
|
|
3,326 |
|
|
3,326 |
|
|
|
— |
|
|
— |
|
|
3,325 |
|
|
3,325 |
|
|
Deferred income taxes - non-current |
|
— |
|
|
— |
|
|
5,330 |
|
|
5,330 |
|
|
|
— |
|
|
— |
|
|
5,543 |
|
|
5,543 |
|
|
Deferred compensation |
|
— |
|
|
— |
|
|
8,365 |
|
|
8,365 |
|
|
|
— |
|
|
— |
|
|
8,179 |
|
|
8,179 |
|
|
Total Capital Employed |
$ |
75,451 |
|
$ |
15,166 |
|
$ |
(174 |
) |
$ |
90,443 |
|
|
$ |
70,339 |
|
$ |
14,742 |
|
$ |
753 |
|
$ |
85,834 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Mattress |
|
Upholstery |
|
Unallocated |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Fabrics |
|
Fabrics |
|
Corporate |
|
Total |
|
|
|
|
|
|
|
|
|
|
|||||||||
Average Capital Employed (3) |
$ |
77,348 |
|
$ |
16,818 |
|
$ |
2,069 |
|
$ |
96,235 |
|
|
|
|
|
|
|
|
|
|
Notes | ||
|
|
|
(1) |
See last page of this presentation for calculation. |
|
(2) |
Return on average capital employed represents the last twelve months operating (loss) income as of |
|
(3) |
Average capital employed was computed using the five quarterly periods ending |
|
(4) |
Intangible assets and goodwill are included in unallocated corporate for all periods presented and therefore, have no effect on capital employed and return on capital employed for our mattress fabrics and upholstery fabrics segments. |
|
||||||||||||||||||||
CONSOLIDATED STATEMENTS OF ADJUSTED OPERATING INCOME (LOSS) |
||||||||||||||||||||
FOR THE TWELVE MONTHS ENDED |
||||||||||||||||||||
Unaudited |
||||||||||||||||||||
(Amounts in Thousands) |
||||||||||||||||||||
|
|
Quarter Ended |
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trailing 12 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Months |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mattress Fabrics |
|
$ |
(2,901 |
) |
|
$ |
(2,921 |
) |
|
$ |
(9,002 |
) |
|
$ |
(4,229 |
) |
|
$ |
(19,053 |
) |
Upholstery Fabrics |
|
|
(116 |
) |
|
|
542 |
|
|
|
262 |
|
|
|
(420 |
) |
|
|
268 |
|
Unallocated Corporate |
|
|
(2,366 |
) |
|
|
(2,359 |
) |
|
|
(2,478 |
) |
|
|
(2,423 |
) |
|
|
(9,626 |
) |
Operating loss |
|
$ |
(5,383 |
) |
|
$ |
(4,738 |
) |
|
$ |
(11,218 |
) |
|
$ |
(7,072 |
) |
|
$ |
(28,411 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Quarter Ended |
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trailing 12 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Months |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Mattress Fabrics |
|
$ |
2,274 |
|
|
$ |
3,611 |
|
|
$ |
3,139 |
|
|
$ |
364 |
|
|
$ |
9,388 |
|
Upholstery Fabrics |
|
|
2,613 |
|
|
|
2,267 |
|
|
|
1,028 |
|
|
|
2,446 |
|
|
|
8,354 |
|
Unallocated Corporate |
|
|
(3,248 |
) |
|
|
(2,560 |
) |
|
|
(2,527 |
) |
|
|
(1,707 |
) |
|
|
(10,042 |
) |
Operating income |
|
$ |
1,639 |
|
|
$ |
3,318 |
|
|
$ |
1,640 |
|
|
$ |
1,103 |
|
|
$ |
7,700 |
|
% Over (Under) |
|
|
(428.4 |
)% |
|
|
(242.8 |
)% |
|
|
(784.0 |
)% |
|
|
(741.2 |
)% |
|
|
(469.0 |
)% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230301005935/en/
Investor Contact:
Chief Financial Officer
336-881-5630
Media Contact:
Chief Human Resources Officer
336-889-5161
Source:
FAQ
What were Culp's net sales for the third quarter of fiscal 2023?
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How did Culp's cash flow perform in the first nine months of fiscal 2023?
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