CULP INC
For the period ended Dec 4, 2024. Filed Dec 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.
Dec 4, 2024 · Filed Dec 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) | |||||||||
| October 27, · October 29, · % Over · October 27, · October 29, | ||||||||||
| 2024 · 2023 · (Under) · 2024 · 2023 | ||||||||||
| Net sales | $55,674 | $58,725 | (5.2)% | 100.0% | 100.0% | |||||
| Cost of sales (1) | (49,684) | (50,775) | (2.1)% | 89.2% | 86.5% | |||||
| Gross profit | 5,990 | 7,950 | (24.7)% | 10.8% | 13.5% | |||||
| Selling, general and administrative expenses | (9,359) | (10,045) | (6.8)% | 16.8% | 17.1% | |||||
| Restructuring expense (2) (3) | (2,031) | (144) | N.M | 3.6% | 0.2% | |||||
| Loss from operations | (5,400) | (2,239) | 141.2% | (9.7)% | (3.8)% | |||||
| Interest expense | (30) | — | 100.0% | (0.1)% | — | |||||
| Interest income | 244 | 282 | (13.5)% | 0.4% | 0.5% | |||||
| Other (expense) income | (508) | 49 | N.M. | (0.9)% | 0.1% | |||||
| Loss before income taxes | (5,694) | (1,908) | 198.4% | (10.2)% | (3.2)% | |||||
| Income tax benefit (expense) (4) | 50 | (516) | (109.7)% | 0.9% | (27.0)% | |||||
| Net loss | $(5,644) | $(2,424) | 132.8% | (10.1)% | (4.1)% | |||||
| Net loss per share - basic | $(0.45) | $(0.19) | 136.8% | |||||||
| Net loss per share - diluted | $(0.45) | $(0.19) | 136.8% | |||||||
| Average shares outstanding-basic | 12,513 | 12,456 | 0.5% | |||||||
| Average shares outstanding-diluted | 12,513 | 12,456 | 0.5% | |||||||
Notes
(1) See page 14 for a Reconciliation of Selected Income Statement Information to Adjusted Results for the three months ending October 27, 2024, and October 29, 2023.
(2) During the three months ending October 27, 2024, restructuring expense of $2.0 million represents $2.0 million and $29,000, related to the mattress fabrics and upholstery fabrics segments, respectively. The $2.0 million of restructuring expense represents (i) $1.4 million related to the gradual discontinuation of operations and the process of selling the manufacturing facility located in Quebec, Canada, which includes employee termination benefits of $505,000, additional depreciation related to the shortening of useful lives of equipment of $465,000, other associated costs of $373,000 and lease termination costs of $179,000, partially offset by net gains on the disposal of equipment totaling $133,000; (ii) $600,000 related to relocating certain equipment and consolidating production from the mattress fabric manufacturing facility located in Quebec, Canada to the U.S facility located in Stokesdale, North Carolina, which includes other associated costs of $527,000, employee termination benefits of $58,000, and losses on the disposal of equipment totaling $15,000; (iii) $29,000 of other associated costs related to moving certain equipment from our upholstery fabrics operation located in Knoxville, Tennessee to our upholstery fabrics distribution center located in Burlington, N.C.; and (iv) $13,000 for losses on the disposal of equipment related to the consolidation of two leased facilities at our mattress cover operation located in Ouanaminthe, Haiti.
(3) Restructuring expense of $144,000 for the three-month period ending October 29, 2023, represents $142,000 for impairment charges related to equipment and $2,000 for employee termination benefits related to the discontinuation of production of cut and sewn upholstery kits at our facility located in Ouanaminthe, Haiti.
(4) Percent of sales column for income tax (benefit) expense is calculated as a percent of loss before income taxes.
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