CULP INC
For the period ended Sep 4, 2024. Filed Sep 4, 2024.
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A notice of a major event between regular reports, such as results, a deal or a change of executives. It is often the first formal record of the news.
Sep 4, 2024 · Filed Sep 4, 2024
Contents
EX-99.1 · (Amounts in Thousands, Except for Per Share Data)
(Amounts in Thousands, Except for Per Share Data)
| THREE MONTHS ENDED | |||||||
|---|---|---|---|---|---|---|---|
| Amount · Percent of Sales | |||||||
| (1) | (1) | ||||||
| July 28, · July 30, · % Over · July 28, · July 30, | |||||||
| 2024 · 2023 · (Under) · 2024 · 2023 | |||||||
| Net sales | $56,537 | $56,662 | (0.2)% | 100.0% | 100.0% | ||
| Cost of sales (1) | (51,461) | (49,577) | 3.8% | 91.0% | 87.5% | ||
| Gross profit | 5,076 | 7,085 | (28.4)% | 9.0% | 12.5% | ||
| Selling, general and administrative expenses | (9,296) | (9,829) | (5.4)% | 16.4% | 17.3% | ||
| Restructuring expense (2) (3) | (2,631) | (338) | 678.4% | 4.7% | 0.6% | ||
| Loss from operations | (6,851) | (3,082) | 122.3% | (12.1)% | (5.4)% | ||
| Interest expense | (28) | — | 100.0% | (0.0)% | — | ||
| Interest income | 262 | 345 | (24.1)% | 0.5% | 0.6% | ||
| Other (expense) income | (404) | 96 | (520.8)% | (0.7)% | 0.2% | ||
| Loss before income taxes | (7,021) | (2,641) | 165.8% | (12.4)% | (4.7)% | ||
| Income tax expense (4) | (240) | (701) | (65.8)% | (3.4)% | (26.5)% | ||
| Net loss | $(7,261) | $(3,342) | 117.3% | (12.8)% | (5.9)% | ||
| Net loss per share - basic | $(0.58) | $(0.27) | 114.8% | ||||
| Net loss per share - diluted | $(0.58) | $(0.27) | 114.8% | ||||
| Average shares outstanding-basic | 12,470 | 12,332 | 1.1% | ||||
| Average shares outstanding-diluted | 12,470 | 12,332 | 1.1% | ||||
Notes
(1) See page 12 for a Reconciliation of Selected Income Statement Information to Adjusted Results for the three months ending July 28, 2024, and July 30, 2023.
(2) During the three-month period ending July 28, 2024, restructuring expense of $2.6 million represents $2.5 million and $132,000, related to the mattress fabrics and upholstery fabrics segments, respectively. The $2.6 million of restructuring expense represents (i) $1.9 million related to the gradual discontinuation of operations and the process of selling the manufacturing facility located in Quebec, Canada, which includes $875,000 of additional depreciation related to the shortening of useful lives of equipment, employee termination benefits of $539,000, lease termination costs of $264,000, impairment charges and losses on the disposal of equipment totaling $95,000, and other associated costs of $90,000; (ii) $470,0000 related to the consolidation of two leased facilities at our mattress cover operation located in Ouanaminthe, Haiti, which includes lease termination costs of $406,000, employee termination benefits of $48,000, and other associated costs of $16,000; (iii) $167,000 of other associated costs related to the relocation of certain equipment from the mattress fabrics manufacturing facility located in Quebec, Canada to the U.S. facility located in Stokesdale, North Carolina; and (iv) $132,000 related to reducing costs within our upholstery fabrics segment which includes employee termination benefits of $102,000 and other associated costs of $30,000.
(3) Restructuring expense of $338,000 for the three-month period ending July 30, 2023, relates to the discontinuation of production of cut and sewn upholstery kits at our facility located in Ouanaminthe, Haiti and represents an impairment charge of $237,000 related mostly to certain machinery and equipment and $101,000 for employee termination benefits.
(4) Percent of sales column for income tax expense is calculated as a percent of loss before income taxes.
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