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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Culp, Inc. | NYSE:CFI | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 32.95 | 0 | 01:00:00 |
NORTH CAROLINA
(State or other jurisdiction of
incorporation or other organization)
|
56-1001967
(I.R.S. Employer Identification No.)
|
1823 Eastchester Drive, High Point, North Carolina
(Address of principal executive offices)
|
27265
(zip code)
|
(336) 889-5161
(Registrant's telephone number, including area code)
|
Title of Each Class
|
Name of Each Exchange
On Which Registered
|
Common Stock, par value $.05/ Share
|
New York Stock Exchange
|
Large Accelerated Filer ☐ | Accelerated Filer ☒ | Non-Accelerated Filer ☐ |
Smaller Reporting Company☐ | Emerging Growth Company ☐ |
Item No. | Page | ||
PART 1 | |||
1. | Business | ||
2
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3
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4
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5
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6
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6
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6
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8
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9
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10
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10
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11
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11
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11
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12
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13
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13
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14
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|||
1A. |
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15
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|
1B. |
|
18
|
|
2. |
|
19
|
|
3. |
|
20
|
|
4. |
|
20
|
|
|
PART II |
|
|
5. |
|
20
|
|
6. |
|
23
|
|
7. |
|
24
|
|
7A. |
|
46
|
|
8. |
|
47
|
|
9. |
|
81
|
|
9A. |
|
81
|
|
9B. |
|
83
|
Item No.
|
|
Page | |
|
PART III | ||
10. |
|
83
|
|
11.
|
|
83
|
|
12. |
|
83
|
|
13.
|
|
84
|
|
14. |
|
84
|
|
|
PART IV | ||
15.
|
|
85
|
|
85
|
|||
87
|
|||
87
|
|||
88
|
|||
89
|
|||
Sales by Fiscal Year ($ in Millions) and Percentage of Total Company Sales | ||||||||||||||||||||||||
Segment
|
Fiscal 2017
|
Fiscal 2016
|
Fiscal 2015
|
|||||||||||||||||||||
Mattress Fabrics
|
$ |
190.8
|
(62
|
%)
|
$ |
186.4
|
(60
|
%)
|
$
|
179.7
|
(58
|
%)
|
||||||||||||
Upholstery Fabrics | ||||||||||||||||||||||||
Non-U.S.-Produced
|
$ |
109.0
|
(35
|
%)
|
$ |
115.3
|
(37
|
%)
|
$
|
119.2
|
(38
|
%)
|
||||||||||||
U.S.-Produced
|
$ |
9.7
|
(3
|
%)
|
$ |
11.2
|
(3
|
%)
|
$
|
11.3
|
(4
|
%)
|
||||||||||||
Total Upholstery
|
$ |
118.7
|
(38
|
%)
|
$ |
126.5
|
(40
|
%)
|
$
|
130.5
|
(42
|
%)
|
||||||||||||
Total company
|
$ |
309.5
|
(100
|
%)
|
$ |
312.9
|
(100
|
%)
|
$
|
310.2
|
(100
|
%)
|
Woven jacquards |
Various patterns and intricate designs. Woven on complex looms using a variety of synthetic and natural yarns.
|
Converted |
Suedes, pile and embroidered fabrics, and other specialty type products are sourced to offer diversity for higher end mattresses.
|
Knitted fabric |
Various patterns and intricate designs produced on special-width circular knit machines utilizing a variety of synthetic and natural yarns. Knitted mattress fabrics have inherent stretching properties and spongy softness, which conforms well with layered foam packages.
|
Sewn mattress covers |
Covers for bedding (primarily specialty beds), sewn from mattress fabrics produced by our facilities or sourced from others.
|
Woven jacquards |
Elaborate, complex designs such as florals and tapestries in traditional, transitional, and contemporary styles. Woven on intricate looms using a wide variety of synthetic and natural yarns.
|
Woven dobbies |
Fabrics that use straight lines to produce geometric designs such as plaids, stripes, and solids in traditional and country styles. Woven on less complicated looms using a variety of weaving constructions and primarily synthetic yarns.
|
Velvets |
Soft fabrics with a plush feel. Woven or knitted in basic designs, using synthetic yarns that are yarn dyed or piece dyed.
|
Suedes |
Fabrics woven or knitted using microdenier polyester yarns, which are piece dyed and finished, usually by sanding. The fabrics are typically plain or small jacquard designs, with some being printed. These are sometimes referred to as microdenier suedes.
|
Faux leathers |
Sueded or knitted base cloths which are overprinted with polyurethane, and composite products consisting of a base fabric that is coated with a top layer of polyurethane, which simulates the look and feel of leather.
|
Cut and sewn kits |
Covers made from various types of upholstery fabrics and cut and sewn to specifications of furniture manufacturing customers for use on specific furniture frames.
|
Fiscal
2017
|
Fiscal
2016
|
Fiscal
2015
|
Fiscal
2014
|
Fiscal
2013
|
||||||||||||||||
Mattress Fabrics Segment
|
793
|
682
|
631
|
592
|
577
|
|||||||||||||||
Upholstery Fabrics Segment United States
|
148
|
134
|
129
|
129
|
121
|
|||||||||||||||
Poland
|
-
|
-
|
-
|
4
|
5
|
|||||||||||||||
China
|
380 | 397 | 424 | 438 | 464 | |||||||||||||||
Total Upholstery Fabrics Segment | 528 | 531 | 553 | 571 | 590 | |||||||||||||||
Unallocated corporate | 4 | 4 | 4 | 4 | 4 | |||||||||||||||
Total | 1,325 | 1,217 | 1,188 | 1,167 | 1,171 |
Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | ||||||||||||||||||||||
United States
|
$
|
241,236
|
77.9
|
%
|
$
|
244,930
|
78.3
|
%
|
$
|
242,833
|
78.3
|
%
|
||||||||||||
North America
|
$
|
29,995
|
9.7
|
%
|
$
|
31,667
|
10.1
|
%
|
$
|
30,758
|
10.0
|
%
|
||||||||||||
(Excluding USA)
(1)
|
||||||||||||||||||||||||
Far East and Asia
(2)
|
34,695
|
11.2
|
%
|
31,927
|
10.2
|
%
|
31,855
|
10.3
|
%
|
|||||||||||||||
All other areas
|
3,618
|
1.2
|
%
|
4,336
|
1.4
|
%
|
4,720
|
1.4
|
%
|
|||||||||||||||
Subtotal (International)
|
$
|
68,308
|
22.1
|
%
|
$
|
67,930
|
21.7
|
%
|
$
|
67,333
|
21.7
|
%
|
||||||||||||
Total
|
$
|
309,544
|
100
|
%
|
$
|
312,860
|
100
|
%
|
$
|
310,166
|
100
|
%
|
Approx. | ||||||
Total Area | Expiration | |||||
Location | Principal Use | (Sq. Ft.) | of Lease | |||
·
Administrative:
|
|
|
|
|||
High Point, North Carolina (1)
|
Upholstery fabric division
|
29,812
|
2025
|
|||
offices and corporate
|
||||||
headquarters
|
||||||
·
Mattress Fabrics:
|
|
|
|
|||
Stokesdale, North Carolina
|
Manufacturing and
|
299,163
|
Owned
|
|||
headquarters office
|
||||||
Stokesdale, North Carolina
|
Distribution center
|
220,222
|
Owned
|
|||
Stokesdale, North Carolina (3)
|
Manufacturing
|
56,950
|
2017
|
|||
High Point, North Carolina (1)
|
Manufacturing
|
63,522
|
2023
|
|||
High Point, North Carolina
|
Warehouse and offices
|
65,886
|
2020
|
|||
Summerfield, North Carolina (3)
|
Manufacturing
|
39,320
|
2017
|
|||
St. Jerome, Quebec, Canada
|
Manufacturing
|
202,500
|
Owned
|
|||
·
Upholstery Fabrics:
|
|
|
|
|||
Anderson, South Carolina
|
Manufacturing
|
99,000
|
Owned
|
|||
Burlington, North Carolina (2)
|
Finished goods distribution
|
132,000
|
-
|
|||
Burlington, North Carolina
|
Design center
|
15,000
|
2021
|
|||
Shanghai, China
|
Manufacturing and offices
|
68,677
|
2018
|
|||
Shanghai, China
|
Manufacturing and offices
|
89,857
|
2020
|
|||
Shanghai, China
|
Manufacturing and warehousing
|
89,857
|
2018
|
|||
Shanghai, China
|
Warehouse and offices
|
64,583
|
2020
|
|||
Shanghai, China
|
Warehouse
|
48,610
|
2018
|
(1)
|
Includes all options to renew.
|
(2)
|
This lease agreement is currently on a month to month basis.
|
(3)
|
The lease regarding this facility expires after our fiscal year end of April 30, 2017, and will not be renewed. The production that resides as this location is currently being moved to an existing mattress fabrics facility.
|
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)
|
January 30, 2017 to
March 5, 2017
|
-
|
$
-
|
-
|
$5,000,000
|
March 6, 2017 to
April 2, 2017
|
-
|
$
-
|
-
|
$5,000,000
|
April 3, 2017 to April
30, 2017
|
-
|
$
-
|
-
|
$5,000,000
|
Total
|
-
|
$
-
|
-
|
$5,000,000
|
(1)
|
On June 15, 2016, we announced that our board of directors increased the authorization for us to acquire up to $5.0 million of our common stock.
|
percent
|
||||||||||||||||||||||||
fiscal
|
fiscal
|
fiscal
|
fiscal
|
fiscal
|
change
|
|||||||||||||||||||
(amounts in thousands, except per share, ratios & other, stock data)
|
2017
|
2016
|
2015
|
2014
|
2013
|
2017/2016
|
||||||||||||||||||
INCOME STATEMENT DATA
|
||||||||||||||||||||||||
net sales
|
$
|
309,544
|
312,860
|
310,166
|
287,162
|
268,814
|
-1.1
|
%
|
||||||||||||||||
cost of sales
|
240,309
|
247,749
|
254,599
|
238,256
|
219,284
|
-3.0
|
%
|
|||||||||||||||||
gross profit
|
69,235
|
65,111
|
55,567
|
48,906
|
49,530
|
6.3
|
%
|
|||||||||||||||||
selling, general, and administrative expenses
|
39,157
|
36,773
|
32,778
|
28,657
|
28,445
|
6.5
|
%
|
|||||||||||||||||
income from operations
|
30,078
|
28,338
|
22,789
|
20,249
|
21,085
|
6.1
|
%
|
|||||||||||||||||
interest expense
|
-
|
-
|
64
|
427
|
632
|
0.0
|
%
|
|||||||||||||||||
interest income
|
(299
|
)
|
(176
|
)
|
(622
|
)
|
(482
|
)
|
(419
|
)
|
69.9
|
%
|
||||||||||||
other expense
|
681
|
616
|
391
|
1,261
|
583
|
10.6
|
%
|
|||||||||||||||||
income before income taxes
|
29,696
|
27,898
|
22,956
|
19,043
|
20,289
|
6.4
|
%
|
|||||||||||||||||
income taxes
|
7,339
|
10,963
|
7,885
|
1,596
|
1,972
|
-33.1
|
%
|
|||||||||||||||||
loss from investment in unconsolidated joint venture
|
23
|
-
|
-
|
-
|
-
|
100.0
|
%
|
|||||||||||||||||
net income
|
$
|
22,334
|
16,935
|
15,071
|
17,447
|
18,317
|
31.9
|
%
|
||||||||||||||||
depreciation
|
$
|
7,085
|
6,671
|
5,773
|
5,312
|
5,115
|
6.2
|
%
|
||||||||||||||||
weighted average shares outstanding
|
12,312
|
12,302
|
12,217
|
12,177
|
12,235
|
0.1
|
%
|
|||||||||||||||||
weighted average shares outstanding, assuming dilution
|
12,518
|
12,475
|
12,422
|
12,414
|
12,450
|
0.3
|
%
|
|||||||||||||||||
PER SHARE DATA
|
||||||||||||||||||||||||
net income per share - basic
|
$
|
1.81
|
1.38
|
1.23
|
1.43
|
1.50
|
31.2
|
%
|
||||||||||||||||
net income per share - diluted
|
1.78
|
1.36
|
1.21
|
1.41
|
1.47
|
30.9
|
%
|
|||||||||||||||||
dividends per share
|
$
|
0.51
|
0.66
|
0.62
|
0.18
|
0.62
|
-22.7
|
%
|
||||||||||||||||
book value
|
$
|
12.03
|
10.50
|
9.77
|
9.12
|
7.82
|
14.6
|
%
|
||||||||||||||||
BALANCE SHEET DATA
|
||||||||||||||||||||||||
operating working capital (4)
|
$
|
40,869
|
45,794
|
41,829
|
41,120
|
39,228
|
-10.8
|
%
|
||||||||||||||||
property, plant and equipment, net
|
51,651
|
39,973
|
36,078
|
31,376
|
30,594
|
29.2
|
%
|
|||||||||||||||||
total assets
|
205,634
|
175,142
|
171,300
|
160,935
|
142,779
|
17.4
|
%
|
|||||||||||||||||
capital expenditures
|
18,771
|
10,708
|
11,174
|
5,310
|
4,457
|
75.3
|
%
|
|||||||||||||||||
dividends paid
|
6,280
|
8,140
|
7,579
|
2,204
|
7,593
|
-22.9
|
%
|
|||||||||||||||||
long-term debt, current maturities of long-term debt and line of credit
|
-
|
-
|
2,200
|
4,986
|
7,161
|
0.0
|
%
|
|||||||||||||||||
shareholders' equity
|
148,630
|
128,812
|
119,427
|
111,744
|
95,583
|
15.4
|
%
|
|||||||||||||||||
capital employed (3)
|
98,429
|
90,357
|
83,225
|
80,038
|
74,747
|
8.9
|
%
|
|||||||||||||||||
RATIOS & OTHER DATA
|
||||||||||||||||||||||||
gross profit margin
|
22.4
|
%
|
20.8
|
%
|
17.9
|
%
|
17.0
|
%
|
18.4
|
%
|
||||||||||||||
operating income margin
|
9.7
|
%
|
9.1
|
%
|
7.3
|
%
|
7.1
|
%
|
7.8
|
%
|
||||||||||||||
net income margin
|
7.2
|
%
|
5.4
|
%
|
4.9
|
%
|
6.1
|
%
|
6.8
|
%
|
||||||||||||||
effective income tax rate
|
24.7
|
%
|
39.3
|
%
|
34.3
|
%
|
8.4
|
%
|
9.7
|
%
|
||||||||||||||
debt to total capital employed ratio (1) (3)
|
0.0
|
%
|
0.0
|
%
|
2.6
|
%
|
6.2
|
%
|
9.6
|
%
|
||||||||||||||
operating working capital turnover (4)
|
7.3
|
7.0
|
7.7
|
7.0
|
7.4
|
|||||||||||||||||||
days sales in receivables
|
29
|
27
|
34
|
35
|
32
|
|||||||||||||||||||
inventory turnover
|
5.0
|
5.6
|
6.1
|
6.0
|
5.9
|
|||||||||||||||||||
STOCK DATA
|
||||||||||||||||||||||||
stock price
|
||||||||||||||||||||||||
high
|
$
|
37.80
|
35.23
|
29.19
|
21.10
|
18.15
|
||||||||||||||||||
low
|
25.57
|
22.72
|
16.60
|
14.93
|
9.00
|
|||||||||||||||||||
close
|
32.10
|
26.24
|
26.02
|
18.61
|
16.25
|
|||||||||||||||||||
P/E ratio (2)
|
||||||||||||||||||||||||
high
|
21
|
26
|
24
|
15
|
12
|
|||||||||||||||||||
low
|
14
|
17
|
14
|
11
|
6
|
|||||||||||||||||||
daily average trading volume (shares)
|
42.1
|
67.3
|
38.6
|
27.5
|
40.9
|
|||||||||||||||||||
(1) |
Debt includes long-term and current maturities of long-term debt and line of credit.
|
||||||||||||||||||||||||
(2) |
P/E ratios based on trailing 12-month diluted net income per share.
|
||||||||||||||||||||||||
(3) |
Capital employed does not include cash and cash equivalents, short-term investments, long-term investments (held-to-maturity), long-term investments (rabbi trust), current maturities of long-term debt, long-term debt, line of credit, noncurrent deferred tax assets and liabilities, income taxes receivable and payable, and deferred compensation.
|
||||||||||||||||||||||||
(4) | Operating working capital for this calculation is accounts receivable and inventories, offset by accounts payable-trade and account payable - capital expenditures. |
Twelve Months Ended
|
||||||||||||
(dollars in thousands) |
April 30, 2017
|
May 1, 2016
|
Change
|
|||||||||
Net sales
|
$
|
309,544
|
$
|
312,860
|
(1.1
|
)%
|
||||||
Gross profit
|
69,235
|
65,111
|
6.3
|
%
|
||||||||
Gross profit margin
|
22.4
|
%
|
20.8
|
%
|
160
|
bp
|
||||||
SG&A expenses
|
39,157
|
36,773
|
6.5
|
%
|
||||||||
Income from operations
|
30,078
|
28,338
|
6.1
|
%
|
||||||||
Operating margin
|
9.7
|
%
|
9.1
|
%
|
60
|
bp
|
||||||
Income before income taxes
|
29,696
|
27,898
|
6.4
|
%
|
||||||||
Income taxes
|
7,339
|
10,963
|
(33.1
|
)%
|
||||||||
Net income
|
22,334
|
16,935
|
31.9
|
%
|
||||||||
Fiscal
|
Fiscal
|
Fiscal
|
||||||||||
2017
|
2016
|
2015
|
||||||||||
Net sales
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
||||||
Cost of sales
|
77.6
|
79.2
|
82.1
|
|||||||||
Gross profit
|
22.4
|
20.8
|
17.9
|
|||||||||
Selling, general and administrative expenses
|
12.7
|
11.7
|
10.6
|
|||||||||
Income from operations
|
9.7
|
9.1
|
7.3
|
|||||||||
Interest income, net
|
0.1
|
0.0
|
0.2
|
|||||||||
Other expense
|
(0.2
|
)
|
(0.2
|
)
|
(0.1
|
)
|
||||||
Income before income taxes
|
9.6
|
8.9
|
7.4
|
|||||||||
Income taxes *
|
24.7
|
39.3
|
34.3
|
|||||||||
Loss from investment in unconsolidated joint venture
|
0.0
|
0.0
|
0.0
|
|||||||||
Net income
|
7.2
|
%
|
5.4
|
%
|
4.9
|
%
|
*
|
Calculated as a percentage of income before income taxes.
|
Twelve Months Ended | ||||||||||||
(dollars in thousands) | April 30, 2017 | May 1, 2016 | Change | |||||||||
Net sales
|
$
|
190,805
|
$
|
186,419
|
2.4
|
%
|
||||||
Gross profit
|
43,065
|
38,718
|
11.2
|
%
|
||||||||
Gross profit margin
|
22.6
|
%
|
20.8
|
%
|
180
|
bp
|
||||||
SG&A expenses
|
13,685
|
12,223
|
12.0
|
%
|
||||||||
Income from operations
|
29,380
|
26,496
|
10.9
|
%
|
||||||||
Operating margin
|
15.4
|
%
|
14.2
|
%
|
120
|
bp
|
||||||
Net Sales
|
·
|
Our building expansion projects in North Carolina, including a new distribution center and knitted fabric plant consolidation, were substantially complete as of the fourth quarter of fiscal 2017.
|
·
|
We expect to have all of the associated equipment relocated and new installations finalized by the end of the first quarter of fiscal 2018.
|
·
|
We completed expansion of our Canadian operations in the fourth quarter of fiscal 2017, with additional finishing equipment and a new distribution center that will allow us to ship directly to our customers in Canada.
|
·
|
We are moving our CLASS production platform to a new location in July 2017 that offers a more efficient and streamlined production flow and access to a larger labor pool. Additionally, this facility will include expanded showroom and production development space.
|
(dollars in thousands)
|
April 30,
2017
|
May 1,
2016
|
||||||
total assets
|
$
|
2,258
|
$
|
-
|
||||
total liabilities
|
$
|
46
|
$
|
-
|
||||
total members’ equity
|
$
|
2,212
|
$
|
-
|
(dollars in thousands) | April 30, 2017 | May 1, 2016 | % Change | |||||||||
Accounts receivable
and inventory
|
$ | 47,038 | $ | 43,472 | 8.2 | % | ||||||
Property, plant & equipment
|
48,916
|
37,480
|
30.5
|
%
|
||||||||
Goodwill
|
11,462
|
11,462
|
0.0
|
%
|
||||||||
Investment in unconsolidated joint venture
|
1,106
|
-
|
100
|
%
|
||||||||
Non-compete agreement
|
828
|
903
|
(8.3
|
)%
|
||||||||
Customer Relationships
|
664
|
715
|
(7.1
|
)%
|
||||||||
Accounts Receivable & Inventory
|
Twelve Months Ended | ||||||||||||||||||||
|
||||||||||||||||||||
(dollars in thousands)
|
April 30, 2017
|
May 1, 2016 |
% Change
|
|||||||||||||||||
Non U.S. Produced
|
$
|
109,012
|
92
|
% |
$
|
115,167
|
91
|
%
|
(5.3
|
)%
|
||||||||||
U.S Produced
|
9,727
|
8
|
% |
11,274
|
9
|
%
|
(13.7
|
)%
|
||||||||||||
Total
|
$
|
118,739
|
100
|
% |
$
|
126,441
|
100
|
%
|
(6.1
|
)%
|
Twelve Months Ended | ||||||||||||
(dollars in thousands) | April 30, 2017 | May 1, 2016 | Change | |||||||||
Gross profit
|
$
|
26,170
|
$
|
26,393
|
(0.8
|
)%
|
||||||
Gross profit margin
|
22.0
|
%
|
20.9
|
%
|
110
|
bp
|
||||||
SG&A expenses
|
15,079
|
15,094
|
(0.1
|
)%
|
||||||||
Income from operations
|
11,091
|
11,298
|
(1.8
|
)%
|
||||||||
Operating margin
|
9.3
|
%
|
8.9
|
%
|
40
|
bp
|
|
||||||||||||
(dollars in thousands)
|
April 30, 2017
|
May 1, 2016 |
% Change
|
|||||||||
Accounts receivable and inventory
|
$
|
29,021
|
$
|
26,540
|
9.4
|
%
|
||||||
Property, plant & equipment
|
1,879
|
1,564
|
20.1
|
%
|
|
||||||||||||
Twelve Months Ended
|
||||||||||||
(dollars in thousands)
|
April 30, 2017 | May 1, 2016 |
% Change
|
|||||||||
SG&A expenses
|
$ | 39,157 | $ | 36,773 |
6.5
|
%
|
||||||
Interest income
|
299 | 176 |
69.9
|
%
|
||||||||
Other expense
|
681 | 616 |
10.6
|
%
|
2017
|
2016
|
|||||||
federal income tax rate
|
34.0
|
%
|
34.0
|
%
|
||||
tax effects of Chinese foreign exchange gains
|
1.6
|
4.4
|
||||||
change in valuation allowance
|
(0.2
|
)
|
(1.2
|
)
|
||||
change in North Carolina income tax rates
|
-
|
0.7 | ||||||
reversal of foreign uncertain income tax position
|
(11.6 |
)
|
-
|
|||||
other
|
0.9
|
1.4
|
||||||
24.7
|
%
|
39.3
|
%
|
|||||
Deferred Income Taxes – Valuation Allowance
|
||||||||
Summary
|
Twelve Months Ended | ||||||||||||
(dollars in thousands) | May 1, 2016 | May 3, 2015 | Change | |||||||||
Net sales
|
$
|
186,419
|
$
|
179,739
|
3.7
|
%
|
||||||
Gross profit
|
38,718
|
32,877
|
17.8
|
%
|
||||||||
Gross profit margin
|
20.8
|
%
|
18.3
|
%
|
250
|
bp
|
||||||
SG&A expenses
|
12,223
|
11,206
|
9.1
|
%
|
||||||||
Income from operations
|
26,496
|
21,671
|
22.3
|
%
|
||||||||
Operating margin
|
14.2
|
%
|
12.1
|
%
|
210
|
bp
|
(dollars in thousands)
|
May 1, 2016 | May 3, 2015 | % Change | |||||||||
Accounts receivable
and inventory
|
$ | 43,472 | $ | 41,328 | 5.2 | % | ||||||
Property, plant & equipment
|
37,480
|
33,773
|
11.0
|
%
|
||||||||
Goodwill
|
11,462
|
11,462
|
0.0
|
%
|
||||||||
Non-compete agreement
|
903
|
979
|
(7.8
|
)%
|
||||||||
Customer Relationships
|
715
|
766
|
(6.7
|
)%
|
||||||||
|
|
Twelve Months Ended | |||||||||||||||||||
(dollars in thousands)
|
May 1, 2016
|
|
May 3, 2015 |
% Change
|
||||||||||||||||
Non U.S. Produced |
$
|
115,167
|
91
|
%
|
$ | 119,177 |
92
|
%
|
(3.4
|
)%
|
||||||||||
U.S Produced
|
11,274
|
9
|
%
|
11,250 |
8
|
%
|
0.2
|
%
|
||||||||||||
Total
|
$
|
126,441
|
100
|
%
|
$ | 130,427 |
100
|
%
|
(3.1
|
)%
|
Twelve Months Ended | ||||||||||||
(dollars in thousands) | May 1, 2016 | May 3, 2015 | Change | |||||||||
Gross profit
|
$
|
26,393
|
$
|
22,690
|
16.3
|
%
|
||||||
Gross profit margin
|
20.9
|
%
|
17.4
|
%
|
350
|
bp
|
||||||
SG&A expenses
|
15,094
|
14,562
|
3.7
|
%
|
||||||||
Income from operations
|
11,298
|
8,128
|
39.0
|
%
|
||||||||
Operating margin
|
8.9
|
%
|
6.2
|
%
|
270
|
bp
|
|
||||||||||||
(dollars in thousands)
|
May 1, 2016
|
May 3, 2015 |
% Change
|
|||||||||
Accounts receivable
and inventory
|
$
|
26,540
|
$
|
29,905
|
(11.3
|
)
|
||||||
Property, plant & equipment
|
1,564
|
1,467
|
6.6
|
%
|
Twelve Months Ended | ||||||||||||
(dollars in thousands) | May 1, 2016 | May 3, 2015 | % Change | |||||||||
SG&A expenses
|
$
|
36,773
|
$
|
32,778
|
12.2
|
%
|
||||||
Interest expense
|
-
|
64
|
(100.0
|
)%
|
||||||||
Interest income
|
176
|
622
|
(71.7
|
)%
|
||||||||
Other expense
|
616
|
391
|
57.5
|
%
|
2016
|
2015
|
|||||||
federal income tax rate
|
34.0
|
%
|
34.0
|
%
|
||||
tax effects of Chinese foreign exchange gains
|
4.4
|
0.3
|
||||||
change in valuation allowance
|
(1.2
|
)
|
(0.2
|
)
|
||||
change in North Carolina income tax rates
|
0.7
|
-
|
||||||
other
|
1.4
|
0.2
|
||||||
39.3
|
%
|
34.3
|
%
|
|||||
Liquidity and Capital Resources
|
||||||||
Liquidity
|
||||||||
Overall
|
April 30,
|
May 1,
|
|||||||
(dollars in thousands)
|
2017
|
2016
|
||||||
Cayman Islands
|
$
|
34,966
|
$ |
25,762
|
||||
China
|
12,722
|
8,454
|
||||||
Canada
|
4,268
|
6,844
|
||||||
United States
|
2,228
|
1,086
|
||||||
$
|
54,184
|
$ |
42,146
|
2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Total | ||||||||||||||||||||||
Capital expenditures | $ | 2,094 | - | - | - | - | - | $ | 2,094 | |||||||||||||||||||
Accounts payable
-
capital expenditures |
4,767 | 1,322 | - | - | - | - | 6,089 | |||||||||||||||||||||
Operating leases
|
2,154
|
1,307
|
911
|
127
|
78
|
- |
4,577
|
|||||||||||||||||||||
Interest expense
|
91
|
-
|
-
|
-
|
-
|
- |
91
|
|||||||||||||||||||||
Total (1)
|
$
|
9,106
|
2,629
|
911
|
127
|
78
|
- | $ |
12,851
|
1. |
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
|
April 30, | May 1, | ||||||
(dollars in thousands) |
2017
|
2016
|
||||||
China
|
$ | 12,722 | 8,454 | |||||
Cayman Islands | 4,020 |
25,762
|
||||||
Canada | 2,906 | 3,550 | ||||||
United States
|
1,147 | 21 | ||||||
|
$ | 20,795 | 37,787 | |||||
|
April 30, |
May 1,
|
||||||
(dollars in thousands)
|
2017
|
2016
|
||||||
Canada
|
$
|
1,362
|
3,294 | |||||
United States | 1,081 | 1,065 | ||||||
|
$
|
2,443
|
4,359 | |||||
(dollars in thousands) |
2017
|
2016 | 2015 | |||||||||
China | $ | 111 | (70 | ) | 241 | |||||||
Canada | (120 | ) | 76 | (108 | ) | |||||||
Poland | - | - | (2 | ) | ||||||||
|
$ | (9 | ) | 6 | 131 | |||||||
|
April 30, | May 1, | ||||||
(dollars in thousands) |
2017
|
2016 | ||||||
customers
|
$ | 26,211 | 25,531 | |||||
allowance for doubtful accounts
|
(414
|
)
|
(1,088 | ) | ||||
reserve for returns and allowances and discounts | (1,220 | ) | (962 | ) | ||||
|
$ | 24,577 |
23,481
|
(dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
beginning balance
|
$
|
(1,088
|
)
|
(851
|
)
|
(573
|
)
|
|||||
provision for bad debts
|
222
|
(363
|
)
|
(421
|
)
|
|||||||
write-offs, net of recoveries
|
452
|
126
|
143
|
|||||||||
ending balance
|
$
|
(414
|
)
|
(1,088
|
)
|
(851
|
)
|
(dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
beginning balance
|
$
|
(962
|
)
|
(738
|
)
|
(479
|
)
|
|||||
provision for returns and allowances and discounts
|
(3,061
|
)
|
(2,825
|
)
|
(2,733
|
)
|
||||||
credits issued
|
2,803
|
2,601
|
2,474
|
|||||||||
ending balance
|
$
|
(1,220
|
)
|
(962
|
)
|
(738
|
)
|
3.
|
INVENTORIES
|
|
April 30
,
|
May 1,
|
||||||
(dollars in thousands)
|
2017
|
2016
|
||||||
raw materials
|
$
|
6,456
|
5,462
|
|||||
work-in-process
|
3,095
|
2,972
|
||||||
finished goods
|
41,931
|
38,097
|
||||||
$
|
51,482
|
46,531
|
4.
|
PROPERTY, PLANT AND EQUIPMENT
|
(dollars in thousands)
|
depreciable lives
(in years) |
April 30,
2017 |
May 1,
2016 |
|||||||||
land and improvements
|
0-10
|
$
|
836
|
836
|
||||||||
buildings and improvements
|
7-40
|
19,071
|
16,126
|
|||||||||
leasehold improvements
|
**
|
|
1,541
|
1,340
|
||||||||
machinery and equipment
|
3-12
|
67,709
|
64,114
|
|||||||||
office furniture and equipment
|
3-10
|
8,936
|
8,212
|
|||||||||
capital projects in progress
|
12,901
|
2,896
|
||||||||||
110,994
|
93,524
|
|||||||||||
accumulated depreciation and amortization
|
(59,343
|
)
|
(53,551
|
)
|
||||||||
$
|
51,651
|
39,973
|
5.
|
GOODWILL
|
(dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
beginning balance
|
$
|
11,462
|
11,462
|
11,462
|
||||||||
loss on impairment | - |
-
|
- | |||||||||
acquisitions | - |
-
|
-
|
|||||||||
ending balance |
$
|
11,462
|
11,462 | 11,462 |
6.
|
INVESTMENT IN UNCONSOLIDATED JOINT VENTURE
|
(dollars in thousands)
|
April 30,
2017
|
May 1,
2016
|
||||||
total assets
|
$
|
2,258
|
$
|
-
|
||||
total liabilities
|
$
|
46
|
$
|
-
|
||||
total members’ equity
|
$
|
2,212
|
$
|
-
|
7.
|
OTHER ASSETS
|
|
April 30,
|
May 1,
|
||||||
(dollars in thousands)
|
2017
|
2016
|
||||||
cash surrender value – life insurance
|
$
|
376
|
357
|
|||||
non-compete agreement, net
|
828
|
903
|
||||||
customer relationships, net
|
664
|
715
|
||||||
other
|
526
|
598
|
||||||
$
|
2,394
|
2,573
|
8.
|
ACCRUED EXPENSES
|
(dollars in thousands)
|
April 30,
2017 |
May 1,
2016
|
||||||
compensation, commissions and related benefits
|
$
|
10,188
|
10,011
|
|||||
advertising rebates
|
468
|
870
|
||||||
interest
|
51
|
-
|
||||||
other
|
1,240
|
1,041
|
||||||
$
|
11,947
|
11,922
|
(dollars in thousands)
|
2017 |
2016
|
2015
|
|||||||||
income from operations
|
$ | 7,339 |
10,963
|
7,885
|
||||||||
shareholders’ equity, related to the tax benefit arising from stock based compensation | (657 | ) |
(841
|
)
|
(109
|
)
|
||||||
|
$
|
6,682
|
10,122
|
7,776
|
(dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
current
|
||||||||||||
federal
|
$
|
109
|
-
|
-
|
||||||||
state
|
13
|
6
|
(7
|
)
|
||||||||
foreign
|
5,981
|
6,765
|
4,713
|
|||||||||
foreign – reversal of uncertain tax position
|
(3,431
|
)
|
-
|
-
|
||||||||
2,672
|
6,771
|
4,706
|
||||||||||
deferred
|
||||||||||||
federal
|
404
|
(1,205
|
)
|
(849
|
)
|
|||||||
state
|
54
|
305
|
(52
|
)
|
||||||||
undistributed earnings – foreign subsidiaries
|
(101
|
)
|
(1,129
|
)
|
(260
|
)
|
||||||
U.S. operating loss carryforwards
|
3,630
|
5,467
|
4,487
|
|||||||||
foreign
|
734
|
1,086
|
(92
|
)
|
||||||||
valuation allowance
|
(54
|
)
|
(332
|
)
|
(55
|
)
|
||||||
4,667
|
4,192
|
3,179
|
||||||||||
$
|
7,339
|
10,963
|
7,885
|
(dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
Foreign: | ||||||||||||
China
|
$
|
13,650
|
14,130
|
12,531
|
||||||||
Canada
|
4,918
|
3,647
|
2,695
|
|||||||||
Poland
|
(19
|
)
|
(62
|
)
|
(260
|
)
|
||||||
Cayman Islands
|
154
|
-
|
-
|
|||||||||
Total Foreign
|
18,703
|
17,715
|
14,966
|
|||||||||
United States
|
10,993
|
10,183
|
7,990
|
|||||||||
$
|
29,696
|
27,898
|
22,956
|
2017
|
2016
|
2015
|
||||||||||
federal income tax rate
|
34.0
|
%
|
34.0
|
%
|
34.0
|
%
|
||||||
tax effects of Chinese foreign exchange gains
|
1.6
|
4.4
|
0.3
|
|||||||||
change in valuation allowance
|
(0.2
|
)
|
(1.2
|
)
|
(0.2
|
)
|
||||||
change in North Carolina income tax rates
|
-
|
0.7
|
-
|
|||||||||
reversal of foreign uncertain income tax position
|
(11.6
|
)
|
-
|
-
|
||||||||
other
|
0.9
|
1.4
|
0.2
|
|||||||||
24.7
|
%
|
39.3
|
%
|
34.3
|
%
|
(dollars in thousands)
|
2017
|
2016
|
||||||
deferred tax assets:
|
||||||||
accounts receivable
|
$
|
447
|
545
|
|||||
inventories
|
2,196
|
2,660
|
||||||
compensation
|
6,222
|
5,311
|
||||||
liabilities and other
|
890
|
1,173
|
||||||
foreign income tax credits
-
U.S.
|
1,436
|
1,436
|
||||||
alternative minimum tax credit
-
U.S.
|
1,428
|
1,320
|
||||||
property, plant and equipment (1)
|
245
|
326
|
||||||
loss carryforwards – U.S.
|
3,842
|
6,888
|
||||||
loss carryforwards – foreign
|
73
|
147
|
||||||
unrecognized tax benefits – U.S.
|
(3,842
|
)
|
(6,888
|
)
|
||||
valuation allowances
|
(536
|
)
|
(590
|
)
|
||||
total deferred tax assets
|
12,401
|
12,328
|
deferred tax liabilities:
|
||||||||
undistributed earnings on foreign subsidiaries
|
(497
|
)
|
(604
|
)
|
||||
unrecognized tax benefits – U.S.
|
(7,936
|
)
|
(4,168
|
)
|
||||
property, plant and equipment (2)
|
(5,546
|
)
|
(5,210
|
)
|
||||
goodwill
|
(1,478
|
)
|
(1,325
|
)
|
||||
other
|
(118
|
)
|
(185
|
)
|
||||
total deferred tax liabilities
|
(15,575
|
)
|
(11,492
|
)
|
||||
Net deferred tax (liability) asset
|
$
|
(3,174
|
)
|
836
|
(dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
beginning balance
|
$
|
14,897
|
14,141
|
13,740
|
||||||||
increases from prior period tax positions
|
854
|
454
|
588
|
|||||||||
decreases from prior period tax positions
|
(3,506
|
)**
|
(77
|
)
|
(187
|
)
|
||||||
increases from current period tax positions
|
-
|
379
|
-
|
|||||||||
ending balance
|
$
|
12,245
|
14,897
|
14,141
|
10.
|
LINES OF CREDIT
|
11.
|
COMMITMENTS AND CONTINGENCIES
|
12.
|
STOCK-BASED COMPENSATION
|
2017
|
2016
|
2015
|
||||||||||||||||||||||
Weighted- | Weighted- | Weighted- | ||||||||||||||||||||||
Average
|
Average
|
Average
|
||||||||||||||||||||||
Exercise
|
Exercise
|
Exercise
|
||||||||||||||||||||||
Shares
|
Price
|
Shares
|
Price
|
Shares
|
Price
|
|||||||||||||||||||
outstanding at beginning
|
||||||||||||||||||||||||
of year
|
83,600
|
$
|
8.37
|
140,100
|
$
|
6.49
|
153,950
|
$
|
6.70
|
|||||||||||||||
granted
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
exercised
|
(68,000
|
)
|
8.65
|
(54,500
|
)
|
3.68
|
(10,100
|
)
|
9.31
|
|||||||||||||||
canceled/expired
|
-
|
-
|
(2,000
|
)
|
4.59
|
(3,750
|
)
|
7.27
|
||||||||||||||||
outstanding at end of year
|
15,600
|
7.14
|
83,600
|
8.37
|
140,100
|
6.49
|
Options Outstanding
|
Options Exercisable
|
|||||||||||||||||||
Range of
|
Number
Outstanding
|
Weighted-Avg.
Remaining |
Weighted-Avg. |
Number
Exercisable
|
Weighted-Avg. | |||||||||||||||
Exercise Prices
|
at 4/30/17
|
Contractual Life | Exercise Price |
at 4/30/17
|
Exercise Price | |||||||||||||||
$7.08
-
$8.75
|
15,600
|
1.1 | $ | 7.14 |
15,600
|
$ | 7.14 |
2017
Shares
|
2016
Shares
|
2015
Shares
|
||||||||||
outstanding at beginning of year
|
-
|
-
|
61,668
|
|||||||||
granted | 1,200 | - | - | |||||||||
vested |
-
|
-
|
(61,668 | ) | ||||||||
outstanding at end of year
|
1,200
|
-
|
-
|
(1)
Restricted Stock
|
(2)
Price Per
|
Vesting
|
|||||||
Date of Grant
|
Units Awarded
|
Share
|
Period
|
||||||
July 14, 2016
|
107,880
|
$
|
28.00
|
3 years
|
|||||
July 15, 2015
|
107,554
|
$
|
32.23
|
3 years
|
|||||
June 24, 2014
|
102,845
|
$
|
17.70
|
3 years
|
Date of Grant
|
(1)
Restricted Stock
Units Awarded
|
(2)
Price Per
Share
|
Vesting
Period
|
||||||
July 14, 2016
|
11,549
|
$
|
32.10
|
(2)
|
3 years
|
||||
July 15, 2015
|
10,364
|
$
|
32.10
|
(2)
|
3 years
|
||||
March 3, 2015
|
16,000
|
$
|
32.10
|
(2)
|
28 months
|
||||
March 3, 2015
|
12,000
|
$
|
28.77
|
(3)
|
16 months
|
Fiscal Year
|
Common Stock
Shares Vested
|
(1)
Weighted Average
Fair Value
|
Price
Per Share
|
|||||||||
Fiscal 2017
-
Management
|
37,192
|
$
|
637
|
$
|
17.12
|
(2)
|
||||||
Fiscal 2017
-
Non-Employee
|
12,000
|
$
|
345
|
$
|
28.77
|
(3)
|
||||||
Fiscal 2016
-
Management
|
115,855
|
$
|
1,183
|
$
|
10.21
|
(2)
|
13.
|
Fair Value of Financial Instruments
|
Fair value measurements at April 30, 2017 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: | ||||||||||||||||
U.S. Corporate Bonds
|
$
|
-
|
$
|
30,831
|
$
|
-
|
$
|
30,831
|
||||||||
Premier Money Market Fund
|
4,811
|
N/A
|
N/A
|
4,811
|
||||||||||||
Low Duration Bond Fund
|
1,081
|
N/A
|
N/A
|
1,081
|
||||||||||||
Intermediate Term Bond Fund
|
751
|
N/A
|
N/A
|
751
|
||||||||||||
Strategic Income Fund
|
611
|
N/A
|
N/A
|
611
|
||||||||||||
Large Blend Fund
|
365
|
N/A
|
N/A
|
365
|
||||||||||||
Growth Allocation Fund
|
126
|
N/A
|
N/A
|
126
|
||||||||||||
Moderate Allocation Fund
|
88
|
N/A
|
N/A
|
88
|
||||||||||||
Other
|
76
|
N/A
|
N/A
|
76
|
14.
|
NET INCOME PER SHARE
|
(in thousands)
|
2017
|
2016
|
2015
|
|||||||||
weighted-average common shares outstanding, basic
|
12,312
|
12,302
|
12,217
|
|||||||||
dilutive effect of stock-based compensation
|
206
|
173
|
205
|
|||||||||
weighted-average common shares outstanding, diluted
|
12,518
|
12,475
|
12,422
|
15.
|
BENEFIT PLANS
|
16.
|
SEGMENT INFORMATION
|
(dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
north america (excluding USA) (1)
|
$
|
29,995
|
31,667
|
30,758
|
||||||||
far east and asia (2)
|
34,695
|
31,927
|
31,855
|
|||||||||
all other areas
|
3,618
|
4,336
|
4,720
|
|||||||||
$
|
68,308
|
67,930
|
67,333
|
(dollars in thousands)
|
2017 | 2016 |
2015
|
|||||||||
net sales: | ||||||||||||
upholstery fabrics
|
$ | 118,739 | 126,441 |
130,427
|
||||||||
mattress fabrics
|
190,805 | 186,419 |
179,739
|
|||||||||
|
$ | 309,544 | 312,860 |
310,166
|
gross profit: | ||||||||||||
upholstery fabrics
|
$
|
26,170
|
26,393
|
22,690
|
||||||||
mattress fabrics
|
43,065
|
38,718
|
32,877
|
|||||||||
$
|
69,235
|
65,111
|
55,567
|
(dollars in thousands)
|
2017
|
2016
|
2015
|
|||||||||
selling, general, and administrative expenses:
|
||||||||||||
upholstery fabrics
|
$
|
15,079
|
15,094
|
14,562
|
||||||||
mattress fabrics
|
13,685
|
12,223
|
11,206
|
|||||||||
unallocated corporate
|
10,393
|
9,456
|
7,010
|
|||||||||
total selling, general, and administrative
|
||||||||||||
expenses
|
$
|
39,157
|
36,773
|
32,778
|
Income from operations: | ||||||||||||
upholstery fabrics
|
$
|
11,091
|
11,298
|
8,128
|
||||||||
mattress fabrics
|
29,380
|
26,496
|
21,671
|
|||||||||
total segment income from operations
|
40,471
|
37,794
|
29,799
|
|||||||||
unallocated corporate expenses
|
(10,393
|
)
|
(9,456
|
)
|
(7,010
|
)
|
||||||
total income from operations
|
30,078
|
28,338
|
22,789
|
|||||||||
interest expense
|
-
|
-
|
(64
|
)
|
||||||||
interest income
|
299
|
176
|
622
|
|||||||||
other expense
|
(681
|
)
|
(616
|
)
|
(391
|
)
|
||||||
income before income taxes
|
$
|
29,696
|
27,898
|
22,956
|
(dollars in thousands) | 2017 | 2016 | 2015 | |||||||||
segment assets | ||||||||||||
mattress fabrics
|
||||||||||||
current assets (1)
|
$
|
47,038
|
43,472
|
41,328
|
||||||||
non-compete agreements, net
|
828
|
903
|
979
|
|||||||||
customer relationships
|
664
|
715
|
766
|
|||||||||
goodwill
|
11,462
|
11,462
|
11,462
|
|||||||||
investment in unconsolidated joint venture
|
1,106
|
-
|
-
|
|||||||||
property, plant, and equipment
|
48,916
|
(2)
|
37,480
|
(3)
|
33,773
|
(4)
|
||||||
total mattress fabrics assets
|
$
|
110,014
|
94,032
|
88,308
|
||||||||
upholstery fabrics | ||||||||||||
current assets (1)
|
$
|
29,021
|
26,540
|
29,905
|
||||||||
property, plant, and equipment
|
1,879
|
(5)
|
1,564
|
(6)
|
1,467
|
(7)
|
||||||
total upholstery fabrics assets
|
$
|
30,900
|
28,104
|
31,372
|
||||||||
total segment assets
|
140,914
|
122,136
|
119,680
|
|||||||||
non-segment assets | ||||||||||||
cash and cash equivalents
|
20,795
|
37,787
|
29,725
|
|||||||||
short-term investments
|
2,443
|
4,359
|
10,004
|
|||||||||
income taxes receivable
|
-
|
155
|
229
|
|||||||||
deferred income taxes
|
419
|
2,319
|
5,169
|
|||||||||
other current assets
|
2,894
|
2,477
|
2,440
|
|||||||||
property, plant, and equipment
|
856
|
(8)
|
929
|
(8)
|
838
|
(8)
|
||||||
long-term investments
-
held-to-maturity
|
30,945
|
-
|
-
|
|||||||||
long-term investments
-
rabbi trust
|
5,466
|
4,025
|
2,415
|
|||||||||
other assets
|
902
|
955
|
800
|
|||||||||
total assets
|
$
|
205,634
|
175,142
|
171,300
|
||||||||
capital expenditures (9):
|
||||||||||||
mattress fabrics
|
$
|
17,689
|
9,666
|
10,454
|
||||||||
upholstery fabrics
|
822
|
626
|
468
|
|||||||||
unallocated corporate
|
260
|
416
|
252
|
|||||||||
$
|
18,771
|
10,708
|
11,174
|
|||||||||
depreciation expense | ||||||||||||
mattress fabrics
|
$
|
6,245
|
5,837
|
5,034
|
||||||||
upholstery fabrics
|
840
|
834
|
739
|
|||||||||
total segment depreciation expense
|
$
|
7,085
|
6,671
|
5,773
|
(1) | Current assets represent accounts receivable and inventory. |
(2) | The $48.9 million at April 30, 2017, represents property, plant, and equipment located in the U.S. of $34.0 million and located in Canada of $14.9 million. |
(3) | The $37.5 million at May 1, 2016, represents property, plant, and equipment located in the U.S. of $24.8 million and located in Canada of $12.7 million. |
(4) | The $33.8 million at May 3, 2015, represents property, plant, and equipment located in the U.S. of $23.8 million and located in Canada of $10.0 million. |
(5) | The $1.9 million at April 30, 2017, represents property, plant, and equipment located in the U.S. of $1.2 million and located in China of $655. |
(6) | The $1.6 million at May 1, 2016, represents property, plant, and equipment located in the U.S. of $893 and located in China of $671. |
(7) | The $1.5 million at May 3, 2015, represents property, plant, and equipment located in the U.S. of $848 and located in China of $619. |
(8) | The $856, $929, and $838 balance at April 30, 2017, May 1, 2016, and May 3, 2015, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by both the mattress and upholstery fabric segments. |
(9) | Capital expenditure amounts are stated on an accrual basis. See Consolidated Statement of Cash Flows for capital expenditure amounts on a cash basis. |
18.
|
COMMON STOCK REPURCHASE PROGRAM
|
19.
|
DIVIDEND PROGRAM
|
SELECTED QUARTERLY DATA (UNAUDITED)
|
||||||||||||||||||||||||||||||||
fiscal
|
fiscal
|
fiscal
|
fiscal
|
fiscal
|
fiscal
|
fiscal
|
fiscal
|
|||||||||||||||||||||||||
2017
|
2017
|
2017
|
2017
|
2016
|
2016
|
2016
|
2016
|
|||||||||||||||||||||||||
(amounts in thousands except per share, ratios & other, stock data)
|
4th quarter
|
3rd quarter
|
2nd quarter
|
1st quarter
|
4th quarter
|
3rd quarter
|
2nd quarter
|
1st quarter
|
||||||||||||||||||||||||
INCOME STATEMENT DATA
|
||||||||||||||||||||||||||||||||
net sales
|
$
|
77,350
|
76,169
|
75,343
|
80,682
|
77,253
|
78,466
|
76,956
|
80,185
|
|||||||||||||||||||||||
cost of sales
|
60,194
|
59,410
|
58,442
|
62,263
|
60,640
|
61,903
|
61,223
|
63,983
|
||||||||||||||||||||||||
gross profit
|
17,156
|
16,759
|
16,901
|
18,419
|
16,613
|
16,563
|
15,733
|
16,202
|
||||||||||||||||||||||||
selling, general and administrative expenses
|
9,986
|
9,824
|
9,602
|
9,746
|
9,261
|
9,337
|
9,433
|
8,741
|
||||||||||||||||||||||||
income from operations
|
7,170
|
6,935
|
7,299
|
8,673
|
7,352
|
7,226
|
6,300
|
7,461
|
||||||||||||||||||||||||
interest expense
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
24
|
||||||||||||||||||||||||
interest income
|
(134
|
)
|
(124
|
)
|
(15
|
)
|
(25
|
)
|
(26
|
)
|
(38
|
)
|
(69
|
)
|
(66
|
)
|
||||||||||||||||
other expense
|
305
|
69
|
155
|
152
|
211
|
85
|
225
|
95
|
||||||||||||||||||||||||
income before income taxes
|
6,999
|
6,990
|
7,159
|
8,546
|
7,167
|
7,179
|
6,144
|
7,408
|
||||||||||||||||||||||||
income taxes
|
778
|
643
|
2,684
|
3,233
|
3,566
|
2,317
|
2,373
|
2,707
|
||||||||||||||||||||||||
loss from investment in unconsolidated joint venture
|
23
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
net income
|
$
|
6,198
|
6,347
|
4,475
|
5,313
|
3,601
|
4,862
|
3,771
|
4,701
|
|||||||||||||||||||||||
depreciation
|
$
|
1,781
|
1,793
|
1,751
|
1,761
|
1,783
|
1,705
|
1,629
|
1,555
|
|||||||||||||||||||||||
weighted average shares outstanding
|
12,340
|
12,313
|
12,308
|
12,286
|
12,257
|
12,331
|
12,343
|
12,277
|
||||||||||||||||||||||||
weighted average shares outstanding,
|
||||||||||||||||||||||||||||||||
assuming dilution
|
12,567
|
12,544
|
12,507
|
12,463
|
12,434
|
12,486
|
12,484
|
12,456
|
||||||||||||||||||||||||
PER SHARE DATA
|
||||||||||||||||||||||||||||||||
net income per share - basic
|
$
|
0.50
|
0.52
|
0.36
|
0.43
|
0.29
|
0.39
|
0.31
|
0.38
|
|||||||||||||||||||||||
net income per share - diluted
|
0.49
|
0.51
|
0.36
|
0.43
|
0.29
|
0.39
|
0.30
|
0.38
|
||||||||||||||||||||||||
dividends per share
|
0.08
|
0.08
|
0.07
|
0.28
|
0.07
|
0.07
|
0.06
|
0.46
|
||||||||||||||||||||||||
book value
|
12.03
|
11.56
|
11.04
|
10.68
|
10.50
|
10.21
|
9.96
|
9.62
|
||||||||||||||||||||||||
BALANCE SHEET DATA
|
||||||||||||||||||||||||||||||||
operating working capital (3)
|
$
|
40,869
|
40,973
|
41,810
|
43,486
|
45,794
|
49,288
|
43,303
|
43,405
|
|||||||||||||||||||||||
property, plant and equipment, net
|
51,651
|
50,333
|
45,537
|
41,745
|
39,973
|
38,157
|
38,319
|
37,480
|
||||||||||||||||||||||||
total assets
|
205,634
|
191,056
|
179,127
|
183,360
|
175,142
|
173,551
|
168,947
|
166,880
|
||||||||||||||||||||||||
capital expenditures
|
3,097
|
6,590
|
5,541
|
3,543
|
3,631
|
1,542
|
2,575
|
2,960
|
||||||||||||||||||||||||
dividends paid
|
988
|
985
|
862
|
3,445
|
859
|
864
|
741
|
5,676
|
||||||||||||||||||||||||
long-term debt, current maturities of long-term debt, and line of credit (1)
|
-
|
-
|
-
|
7,000
|
-
|
-
|
-
|
2,200
|
||||||||||||||||||||||||
shareholders' equity
|
148,630
|
142,314
|
135,949
|
131,435
|
128,812
|
125,074
|
122,975
|
118,725
|
||||||||||||||||||||||||
capital employed (2)
|
98,429
|
97,788
|
94,101
|
94,599
|
90,357
|
90,983
|
88,297
|
90,593
|
||||||||||||||||||||||||
RATIOS & OTHER DATA
|
||||||||||||||||||||||||||||||||
gross profit margin
|
22.2
|
%
|
22.0
|
%
|
22.4
|
%
|
22.8
|
%
|
21.5
|
%
|
21.1
|
%
|
20.4
|
%
|
20.2
|
%
|
||||||||||||||||
operating income margin
|
9.3
|
9.1
|
9.7
|
10.7
|
9.5
|
9.2
|
8.2
|
9.3
|
||||||||||||||||||||||||
net income margin
|
8.0
|
8.3
|
5.9
|
6.6
|
4.7
|
6.2
|
4.9
|
5.9
|
||||||||||||||||||||||||
effective income tax rate
|
11.1
|
9.2
|
37.5
|
37.8
|
49.8
|
32.3
|
38.6
|
36.5
|
||||||||||||||||||||||||
Debt-to-total capital employed ratio (1)
|
0.0
|
0.0
|
0.0
|
7.4
|
0.0
|
0.0
|
0.0
|
2.4
|
||||||||||||||||||||||||
operating working capital turnover (3)
|
7.3
|
7.0
|
7.0
|
7.0
|
7.0
|
7.2
|
7.7
|
7.7
|
||||||||||||||||||||||||
days sales in receivables
|
29
|
27
|
23
|
26
|
28
|
31
|
28
|
29
|
||||||||||||||||||||||||
inventory turnover
|
5.0
|
5.2
|
5.2
|
5.3
|
5.3
|
5.1
|
5.3
|
5.6
|
||||||||||||||||||||||||
STOCK DATA
|
||||||||||||||||||||||||||||||||
stock price
|
||||||||||||||||||||||||||||||||
high
|
$
|
34.50
|
37.80
|
34.30
|
30.11
|
28.53
|
31.15
|
35.23
|
33.64
|
|||||||||||||||||||||||
low
|
30.25
|
26.80
|
26.72
|
25.57
|
22.72
|
22.61
|
29.13
|
25.22
|
||||||||||||||||||||||||
close
|
32.10
|
33.80
|
28.15
|
28.53
|
26.24
|
25.32
|
30.01
|
30.25
|
||||||||||||||||||||||||
daily average trading volume (shares)
|
37.7
|
43.5
|
45.9
|
40.9
|
33.5
|
68.8
|
76.2
|
90.5
|
(1) | Debt includes long-term debt, current maturities of long-term debt, and line of credit. |
(2) | Capital employed does not include cash and cash equivalents, short-term investments, long-term investments (held-to-maturity), long-term investments (rabbi trust), current maturities of long-term debt, line of credit, noncurrent deferred tax assets and liabilities, income taxes receivable and payable, and deferred compensation. |
(3) | Operating working capital for this calculation is accounts receivable and inventories, offset by accounts payable-trade and accounts payable - capital expenditures. |
Plan Category
|
Number of securities to be
issued upon exercise of outstanding options, warrants and rights |
Weighted-average exercise
price of outstanding options, warrants and rights |
Number of securities
remaining available for future issuance under equity compensation plan (excluding securities reflected in column (a)) |
(a)
|
(b)
|
(c)
|
|
Equity compensation
plans approved by security holders |
15,600
|
$7.14
|
964,494
|
Equity compensation
plans not approved by security holders |
-
|
-
|
-
|
Total
|
15,600
|
$7.14
|
964,494
|
Page of Annual
Report on |
|
Item
|
Form 10-K
|
|
|
Report of Independent Registered Public Accounting Firm
|
47
|
|
|
Consolidated Balance Sheets - April 30, 2017 and
|
|
May 1, 2016
|
48
|
|
|
Consolidated Statements of Net Income - for the years ended April 30, 2017,
|
|
May 1, 2016 and May 3, 2015
|
49
|
|
|
Consolidated Statements of Comprehensive Income - for the years ended April 30, 2017,
|
|
May 1, 2016 and May 3, 2015
|
50 |
|
|
Consolidated Statements of Shareholders' Equity - for the years ended April 30, 2017,
|
|
May 1, 2016 and May 3, 2015
|
51
|
|
|
Consolidated Statements of Cash Flows - for the years ended April 30, 2017,
|
|
May 1, 2016 and May 3, 2015
|
52
|
|
|
Notes to Consolidated Financial Statements
|
53
|
2.
|
Financial Statement Schedules
|
3.
|
Exhibits
|
|
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, filed on November 13, 2007 (Commission File No. 001-12597) and are incorporated herein by reference.
|
10.1
|
Written description of Non-employee Director compensation was filed as Exhibit 10.1 to the company's Form 10-Q dated December 9, 2016 (Commission File No. 001-12597), and incorporated herein by reference.
|
|
|
||
10.2
|
Second Amendment to the Credit Agreement dated as of March 10, 2016, by and between Culp, Inc. and Wells Fargo N.A. was filed as Exhibit 10.1 to the company's Form 10-Q for the quarter ended January 31, 2016, filed March 11, 2016 (Commission File No. 001-12597), and incorporated herein by reference.
|
|
|
||
10.3
|
Form of restricted stock unit agreement for restricted stock units granted pursuant to the 2015 Equity Incentive Plan was filed as Exhibit 10.3 to the company's Form 10-Q for the quarter ended August 2, 2015, filed September 11, 2015 (Commission File No. 001-12597), and incorporated herein by reference. (*)
|
|
|
||
10.4
|
2015 Equity Incentive Plan, filed as Annex A to the company's 2015 Proxy Statement, filed on August 12, 2015 (Commission File No. 001-12597), and incorporated herein by reference. (*)
|
|
|
||
10.5
|
First Amendment to the Credit Agreement dated as of July 10, 2015, by and between Culp, Inc. and Wells Fargo, N.A., was filed as Exhibit 10.1 to the company's Form 10-K for the year ended May 3, 2015, dated July 17, 2015, and incorporated herein by reference.
|
|
|
||
10.6
|
Culp, Inc. Deferred Compensation Plan For Certain Key Employees Amendment No. 1, was filed as Exhibit 10.2 to the company's Form 10-K for the year ended May 3, 2015, dated July 17, 2015, and incorporated herein by reference. (*)
|
|
|
||
10.7
|
2002 Stock Option Plan was filed as Exhibit 10(a) to the company's Form 10-Q for the quarter ended January 26, 2003, filed on March 12, 2003 (Commission File No. 001-12597), and is incorporated herein by reference. (*)
|
|
|
||
10.8
|
Form of stock option agreement for options granted to executive officers pursuant to the 2002 Stock Option Plan. This agreement was filed as Exhibit 10.1 to the company's Form 10-Q for the quarter ended July 29, 2007, filed on September 11, 2007 (Commission File No. 001-12597) and is incorporated herein by reference. (*)
|
|
|
||
10.9
|
2007 Equity Incentive Plan was filed as Annex A to the company's 2007 Proxy Statement, filed on August 14, 2007 (Commission File No. 001-12597), and is incorporated herein by reference. (*)
|
|
|
||
10.10
|
Form of change in control and noncompetition agreement. This agreement was filed as Exhibit 10.3 to the company's Form 10-Q for the quarter ended October 28, 2007, filed on December 12, 2007 (Commission File No. 001-12597) and incorporated herein by reference. (*)
|
|
|
||
10.11
|
Form of stock option agreement for options granted to executive officers pursuant to the 2007 Equity Incentive Plan, filed as Exhibit 10.1 to the company's Form 10-Q for the quarter ended August 3, 2008, filed on September 10, 2008 (Commission File No. 001-12597), and incorporated herein by reference. (*)
|
|
|
||
10.12
|
Written description of annual incentive plan was filed as Exhibit 10.29 to the company's Form 10-K for the year end dated April 29, 2012, filed on July 12, 2012 (Commission File No. 001- 12597), and is incorporated herein by reference. (*)
|
|
|
||
10.13
|
Form of restricted stock unit agreement for restricted stock units granted pursuant to the 2007 Equity Incentive Plan was filed as Exhibit 10.1 to the company's Form 10-Q for the quarter end dated July 29, 2012, filed on September 7, 2012 (Commission File No. 001-12597), and is incorporated herein by reference. (*)
|
|
|
||
10.14
|
Agreement dated December 27, 2012 between Culp, Inc., Robert G. Culp, III, and Robert G. Culp, III Irrevocable Trust dated December 11, 2012 was filed as Exhibit 10.1 to the Current Report on Form 8-K dated December 28, 2012 (Commission File No. 001-12597). (*)
|
10.15
|
Credit Agreement dated as of August 13, 2013, by and between Culp, Inc. and Wells Fargo, N.A., was filed as Exhibit 10.1 to the company's Form 10-Q for the quarter ended July 28, 2013, filed on September 6, 2013 (Commission File No. 001-12597), and is incorporated herein by reference.
|
10.16
|
Amended and Restated Deferred Compensation Plan for Certain Key Employees was filed as Exhibit 10.1 to the company's Form 10-Q for the quarter ended January 26, 2014, filed on March 7, 2014, and is incorporated herein by reference. (*)
|
|
|
||
21
|
List of subsidiaries of the company
|
|
|
||
23
|
Consent of Independent Registered Public Accounting Firm in connection with the registration statements of Culp, Inc. on Form S-8 (File Nos. 333-207195, 333-101805, 33-13310, 33-37027, 33-80206, 333-147663), dated March 20, 1987, May 21, 1997, April 26, 2001, April 25, 2001, December 12, 2002, and September 30, 2015 and on Form S-3 and S-3/A (File No. 333-141346).
|
|
|
||
24(a)
|
Power of Attorney of Patrick B. Flavin, dated July 14, 2017
|
|
|
||
24(b)
|
Power of Attorney of Kenneth R. Larson, dated July 14, 2017
|
|
|
||
24(c)
|
Power of Attorney of Kenneth W. McAllister, dated July14, 2017
|
|
|
||
24(d)
|
Power of Attorney of Fred A. Jackson, dated July14, 2017
|
|
|
||
31(a)
|
Certification of Principal Executive Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002.
|
|
|
||
31(b)
|
Certification of Principal Financial Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002.
|
|
|
||
32(a)
|
Certification of Chief Executive Officer Pursuant to Section 906 of Sarbanes-Oxley Act of 2002.
|
|
|
||
32(b)
|
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.DEF XBRL Taxonomy Extension Definition Linkbase Document
|
||
|
||
101.LAB XBRL Taxonomy Extension Label Linkbase Document
|
||
|
||
101.PRE XBRL Taxonomy Extension Presentation Linkbase Document
|
CULP, INC. | ||
By /s/ | Franklin N. Saxon | |
Franklin N. Saxon | ||
Chief Executive Officer | ||
(principal executive officer) |
/s/
|
Robert G. Culp, III
Robert G. Culp, III
(Chairman of the Board of Directors)
|
/s/
|
Kenneth R. Larson
*
Kenneth R. Larson (Director) |
/s/
|
Franklin N. Saxon
Franklin N. Saxon Chief Executive Officer
(principal executive officer)
(Director) |
/s/
|
Fred A. Jackson
*
Fred A. Jackson (Director) |
/s/
|
Patrick B. Flavin*
Patrick B. Flavin (Director) |
/s/
|
Kenneth R. Bowling
Kenneth R. Bowling Chief Financial Officer (principal financial officer) |
/s/
|
Kenneth W. McAllister
*
Kenneth W. McAllister (Director) |
/s/
|
Thomas B. Gallagher, Jr.
Thomas B. Gallagher, Jr. Corporate Controller (principal accounting officer) |
* |
By Kenneth R. Bowling, Attorney-in-Fact, pursuant to Powers of Attorney filed with the Securities and Exchange Commission.
|
Exhibit Number
|
Exhibit
|
|
|
21
|
List of subsidiaries of the company
|
|
|
23
|
Consent of Independent Registered Public Accounting Firm in connection with the registration statements of Culp, Inc. on Form S-8 (File Nos. 333- 207195, 333-101805, 33-13310, 33-37027, 33-80206, 333-147663), dated March 20, 1987, May 21, 1997, April 26, 2001, April 25, 2001, December 12, 2002, and September 30, 2015 and on Form S-3 and S-3/A (File No. 333- 141346).
|
|
|
24(a)
|
Power of Attorney of Patrick B. Flavin, dated July 14, 2017
|
|
|
24(b)
|
Power of Attorney of Kenneth R. Larson, dated July 14, 2017
|
|
|
24(c)
|
Power of Attorney of Kenneth W. McAllister, dated July 14, 2017
|
|
|
24(d)
|
Power of Attorney of Fred A. Jackson, dated July 14, 2017
|
|
|
31(a)
|
Certification of Principal Executive Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002.
|
|
|
31(b)
|
Certification of Principal Financial Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002.
|
|
|
32(a)
|
Certification of Chief Executive Officer Pursuant to Section 906 of Sarbanes- Oxley Act of 2002.
|
|
|
32(b)
|
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.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
1 Year Culp Chart |
1 Month Culp Chart |
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