Company Announces Special Cash Dividend of $0.40 Per Share
Culp, Inc. (NYSE: CFI) today reported financial and operating
results for the fourth quarter and fiscal year ended May 3, 2015.
Fiscal 2015 Full Year Highlights
-
Net sales were $310.2 million, up 8.0 percent from fiscal 2014,
representing the sixth consecutive year of overall annual sales
growth, or a 7.2 percent CAGR over the six-year period, with mattress
fabrics segment sales up 11.8 percent, a record year, and upholstery
fabrics segment sales up 3.1 percent over the prior year.
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Pre-tax income was $23.0 million, compared with $19.0 million in
fiscal 2014, a 21 percent increase.
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Adjusted net income (non-GAAP) was $19.4 million, or $1.56 per diluted
share, compared with $15.7 million, or $1.26 per diluted share, for
the prior year period. (Adjusted net income is calculated using
estimated cash income tax expense. See the reconciliation to net
income on page 6).
-
Net income (GAAP) was $15.1 million, or $1.21 per diluted share,
compared with net income of $17.4 million, or $1.41 per diluted share,
last year, which included a nonrecurring $5.4 million income tax
benefit recorded in the third quarter.
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Return on capital was 29 percent, compared with 26 percent in fiscal
2014.
-
Free cash flow was $15.1 million, after investing $10.5 million in
capital expenditures, compared with free cash flow of $13.8 million in
fiscal 2014.
-
The company’s financial position remained strong with cash and cash
equivalents and short term investments of $39.7 million and total debt
of $2.2 million as of May 3, 2015, or a net cash position of $37.5
million, representing the highest level in the company’s history. This
compares with a net cash position of $30.6 million at the end of
fiscal 2014.
Fiscal 2015 Fourth Quarter Highlights
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Net sales were $78.8 million, up 6.5 percent, with mattress fabric
sales up 10.4 percent and upholstery fabric sales up 0.9 percent,
compared with the fourth quarter last year.
-
Pre-tax income was $6.7 million, compared with $4.1 million in the
fourth quarter of fiscal 2014, a 62 percent increase.
-
Adjusted net income (non-GAAP) was $5.6 million, or $0.45 per diluted
share, for the current quarter, compared with $3.4 million, or $0.27
per diluted share, for the prior year period.
-
Net income (GAAP) was $4.9 million, or $0.39 per diluted share,
compared with net income of $2.7 million, or $0.22 per diluted share,
in the prior year period.
-
The company announced a special cash dividend of $0.40 per share and a
quarterly cash dividend of $0.06 per share, both payable in July 2015.
-
The projection for first quarter fiscal 2016 is for overall sales to
be in the range of one percent to four percent higher, compared with
the previous year’s first quarter. The first quarter of fiscal 2016
will be a 13-week period compared with 14 weeks in the first quarter
of fiscal 2015. Pre-tax income for the first quarter of fiscal 2016 is
expected to be in the range of $5.2 million to $5.7 million. Pre-tax
income for the first quarter of fiscal 2015 was $5.5 million.
-
The company expects fiscal 2016 to be another good year for free cash
flow.
Overview
For the fourth quarter ended May 3, 2015, net sales were $78.8 million,
a 6.5 percent increase compared with $74.0 million a year ago. The
company reported net income of $4.9 million, or $0.39 per diluted
share, for the fourth quarter of fiscal 2015, compared with net income
of $2.7 million, or $0.22 per diluted share, for the fourth quarter of
fiscal 2014.
Given the volatility in the income tax area during fiscal 2015 and
previous years, the company is reporting adjusted net income (non-GAAP),
which is calculated using estimated cash income tax expense for its
foreign subsidiaries. (A presentation of adjusted net income and a
reconciliation to net income is set forth on page 6). The company
currently does not incur cash income tax expense in the U.S., nor does
it expect to for a number of years, due to approximately $32 million in
U.S. net operating loss carryforwards as of the end of fiscal 2015. For
the fourth quarter of fiscal 2015, adjusted net income was $5.6 million,
or $0.45 per diluted share, compared with $3.4 million, or $0.27 per
diluted share, for the fourth quarter of fiscal 2014. On a pre-tax
basis, the company reported income of $6.7 million compared with pre-tax
income of $4.1 million for the fourth quarter of fiscal 2014.
Net sales for fiscal 2015 were $310.2 million, up 8.0 percent, compared
with net sales of $287.2 million in fiscal 2014. Net income for fiscal
2015 was $15.1 million, or $1.21 per diluted share, compared with
$17.5 million, or $1.41 per diluted share, in fiscal 2014, which
included a nonrecurring $5.4 million income tax benefit recorded in the
third quarter. Adjusted net income for fiscal 2015 was $19.4 million, or
$1.56 per diluted share, compared with $15.7 million, or $1.26 per
diluted share, in fiscal 2014. On a pre-tax basis, the company reported
income of $23.0 million for fiscal 2015, compared with pre-tax income of
$19.0 million in fiscal 2014.
Commenting on the results, Frank Saxon, president and chief executive
officer of Culp, Inc., said, “Culp delivered another solid performance
in fiscal 2015, as we achieved higher annual sales and improved
profitability in both businesses. Notably, this is the sixth consecutive
year of overall annual sales growth and a new record year for mattress
fabrics sales. Throughout the year, we have continued to execute our
strategy with a focus on design creativity and product innovation,
supported by exceptional service. Together, these efforts have driven
our sales performance, both with existing key customers and new
customers. Our ability to sustain excellence in creating innovative
fabrics that meet changing customer demands is an important advantage
for Culp. As a result, we have further enhanced our leadership position
in both businesses, and we look forward to continued success in the year
ahead.
“Importantly, we achieved excellent free cash flow of $15.1 million in
fiscal 2015, up from $13.8 million achieved the previous year. As a
result, we are pleased to announce today that our Board of Directors
approved a special cash dividend of $0.40 per share, in line with our
capital allocation strategy, as well as approved our regular quarterly
cash dividend of $0.06 per share. This action reflects our commitment to
delivering value to our shareholders. At the same time, we have the
financial strength to make strategic investments necessary to enhance
and expand our production capabilities and take advantage of additional
growth opportunities in fiscal 2016,” added Saxon.
Mattress Fabrics Segment
Sales for this segment were $48.2 million for the fourth quarter, up
10.4 percent, compared with sales of $43.7 million in the fourth quarter
of fiscal 2014. For fiscal 2015, mattress fabric sales were $179.7
million, up 11.8 percent, compared with $160.7 million in fiscal 2014.
“Our mattress fabrics business had another strong performance in the
fourth quarter, pushing our annual sales to a new record level in fiscal
2015,” said Iv Culp, president of Culp’s mattress fabrics division.
“These results reflect solid execution of the strategic plan that we
laid out at the beginning of fiscal 2015, with consistent growth and
progress throughout the year. The fourth quarter results demonstrate the
success of this plan as we more fully realized the benefits of our $9.5
million capital investment.
“We are very pleased with our sales growth this year, which has outpaced
overall industry growth. Our focus on design and innovation sets us
apart in the mattress fabric marketplace, and we continue to have
favorable placements with new product roll-outs to our customers. Our
product mix of mattress fabrics and sewn covers across all price points
and style trends has allowed us to execute our vision to deliver a full
design package from fabric to finished covers. Our design team has done
an exceptional job, and we have continued to support our design efforts
with investments in the latest technologies and software, including an
enhanced new website, to leverage our talents and our Culp Home Fashions
brand.
“We made notable progress in our operating performance during fiscal
2015, with the most significant improvement evident in the fourth
quarter as we neared completion of our expansion project. In addition to
the greater operating efficiencies, we were able to benefit from some
lower input costs and fewer weather disruptions than we experienced
during the fourth quarter of fiscal 2014. While we still have some
additional work to complete with new equipment, our capital investments
have already met our expectations with added capacity, enhanced
finishing capabilities, and better overall efficiency and throughput.
Importantly, we have also created a strategic infrastructure that will
support our future growth initiatives, and we will continue to make
sound investments to improve our competitive advantage. We are
especially pleased with the year over year evolution of our sewn cover
business, which further supports our diversification strategy and
enhances our strong value proposition. We look forward to the
opportunities ahead for another strong performance in both mattress
fabrics and sewn covers during fiscal 2016,” noted Culp.
Upholstery Fabrics Segment
Sales for this segment were $30.7 million for the fourth quarter,
compared with sales of $30.4 million in the fourth quarter of fiscal
2014. For fiscal 2015, upholstery fabric sales were $130.4 million, up
3.1 percent, compared with $126.5 million in fiscal 2014.
“Overall, we are pleased with the steady growth in sales and improved
profitability for upholstery fabrics in fiscal 2015,” noted Boyd
Chumbley, executive vice president of Culp’s upholstery fabrics
division. “Notably, this marks the sixth straight year of annual sales
improvement. These results reflect the continued success of our
product-driven strategy with a focus on design and innovation. This
strategy has also allowed us to diversify our customer base and target
additional end-user markets, including the hospitality market and
“lifestyle” retail category. Additionally, we experienced higher demand
for cut and sewn kits in fiscal 2015, which further supported our sales
for the year.
“Our global platform provides significant manufacturing flexibility, and
we have continued to leverage this capability to meet changing customer
demand. Sales of China produced fabrics accounted for approximately 90
percent of upholstery fabric sales in fiscal 2015, providing a diverse
product mix of fabric styles and price points with excellent service and
quality.
“Culp has a proven reputation as an industry leader known for innovative
products and creative fabric designs,” added Chumbley. “Our ability to
keep pace with current style trends is a critical advantage for our
customers, and we are encouraged by our favorable showing at the recent
April furniture market with significant new placements. We believe Culp
is well positioned for sustained growth in upholstery fabrics,
especially as the overall economy improves with a more stable U.S.
housing market and higher consumer spending for home furnishings.”
Balance Sheet and Free Cash Flow
“We are pleased to end fiscal 2015 with a strong financial position,”
added Ken Bowling, chief financial officer of Culp, Inc. “The company
generated $15.1 million in free cash flow in fiscal 2015, after
investing $10.5 million in capital expenditures. The $15.1 million is
above last year’s free cash flow of $13.8 million. Both our businesses
did an outstanding job in managing working capital, which contributed to
the strong free cash flow this fiscal year. During fiscal 2015, we used
the free cash flow to build our net cash position by approximately $7.0
million and to return $8.3 million of cash to shareholders through
dividends and share repurchases. Looking ahead to fiscal 2016, we expect
another good year of free cash flow, with capital expenditures projected
to be $7.5 million to $9.0 million and modest growth in working capital.
As of May 3, 2015, we reported $39.7 million in cash and cash
equivalents and short-term investments. Total debt at the end of fiscal
2015 was $2.2 million, which represents the final installment on our
term loan due August 2015. Notably, our net cash position, or cash minus
total debt, was $37.5 million at the end of the year, the highest net
cash level in Culp’s history.”
Dividends and Share Repurchases
Consistent with its capital allocation strategy, the company announced
that its Board of Directors has approved the payment of a special cash
dividend of $0.40 per share. In addition, the Board approved the payment
of the company’s quarterly cash dividend of $0.06 per share. Both of
these payments will be made on July 15, 2015, to shareholders of record
as of July 1, 2015. Future dividend payments are subject to Board
approval and may be adjusted at the Board’s discretion as business needs
or market conditions change.
For fiscal 2015, the company purchased 43,014 shares of Culp common
stock for $745,000, all of which were purchased in the first and second
quarters, pursuant to the $5.0 million share repurchase program
authorized by the Board of Directors in February 2014. This leaves $4.3
million available for additional share repurchases.
Since June 2011, and including the special and regular dividends to be
paid in July, the company will have returned approximately $35 million
to shareholders in the form of regular quarterly and special dividends
and share repurchases.
Saxon said, “We are pleased that our strong financial performance and
solid cash flow for fiscal 2015 have provided an opportunity to pay
another special dividend, our third in three years. This action reflects
our confidence in Culp’s future and our commitment to generating value
for our shareholders.”
Outlook
Commenting on the outlook for the first quarter of fiscal 2016, Saxon
remarked, “At this time, we expect overall sales to be up one percent to
four percent as compared with the first quarter of fiscal 2015. The
first quarter of fiscal 2016 will have one less week than the first
quarter of the prior year, or 13 weeks compared with 14 weeks.
“We expect first quarter sales in our mattress fabrics business to be up
four percent to eight percent as compared with the same period a year
ago. Operating income and margins in this segment are expected to be
moderately higher, compared with the same period a year ago.
“In our upholstery fabrics business, we expect first quarter sales to be
slightly lower compared with the first quarter of fiscal 2015. We
believe the upholstery fabrics segment’s operating income and margins
will be flat when compared with the same quarter of last year.
“Considering these factors, the company expects to report pre-tax income
for the first fiscal quarter of 2016 in the range of $5.2 million to
$5.7 million. Pre-tax income for last year’s first quarter was $5.5
million.
“Based on our current budget, capital expenditures for fiscal 2016 are
expected to be approximately $7.5 million to $9.0 million, primarily
related to our mattress fabrics business. Additionally, the company
expects another good year of free cash flow, even after a higher than
normal level of capital expenditures and modest growth in working
capital.”
In closing, Saxon remarked, “We are pleased with Culp’s performance in
fiscal 2015 and our ability to execute our strategy and enhance our
leadership position in a global marketplace. Our consistent top-line
growth reflects our ability to leverage our outstanding design
capabilities and deliver a wide range of innovative fabrics that keep
pace with customer demand and style trends. We are well positioned to
support our continued growth in both businesses with our flexible and
scalable global manufacturing platform, backed by excellent customer
service. At the same time, we have maintained a solid financial position
and generated strong free cash flow, allowing us to reward our
shareholders with significant dividend payments and share repurchases.
Above all, we are committed to outstanding performance for our customers
as a financially stable and trusted source for innovative fabrics. We
are excited about the opportunities before us as we look ahead to fiscal
2016 and beyond.”
About the Company
Culp, Inc. is one of the world's largest marketers of mattress fabrics
for bedding and upholstery fabrics for residential and commercial
furniture. The company markets a variety of fabrics to its global
customer base of leading bedding and furniture companies, including
fabrics produced at Culp’s manufacturing facilities and fabrics sourced
through other suppliers. Culp has operations located in the United
States, Canada and China.
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 27A of the Securities and Exchange Act of 1934). Such
statements are inherently subject to risks and uncertainties. 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.
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,” “estimate,” “plan” and “project” and their derivatives, and
include but are not limited to statements about expectations for our
future operations, production levels, sales, profit margins,
profitability, operating income, capital expenditures, income taxes,
SG&A or other expenses, pre-tax income, earnings, cash flow, and other
performance measures, as well as any statements regarding future
economic or industry trends or future developments. 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. Changes in
consumer tastes or preferences toward products not produced by us could
erode demand for our products. Changes in the value of the U.S. dollar
versus other currencies could affect our financial results because a
significant portion of our operations are located outside the United
States. Strengthening of the U.S. dollar against other currencies could
make our products less competitive on the basis of price in markets
outside the United States, and strengthening of currencies in Canada and
China can have a negative impact on our sales of products produced in
those places. Also, economic and political instability in international
areas could affect our operations or sources of goods in those areas, as
well as demand for our products in international markets. Further
information about these factors, as well as other factors that could
affect our future operations or financial results and the matters
discussed in forward-looking statements, is included in Item 1A “Risk
Factors” in our Form 10-K filed with the Securities and Exchange
Commission on July 11, 2014 for the fiscal year ended April 27, 2014.
In addition, please note that the company is not responsible for
changes made to this release by wire services, internet services, or
other media.
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CULP, INC.
Condensed Financial Highlights
(Unaudited)
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Three Months Ended
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Fiscal Year Ended
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May 3,
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April 27,
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May 3,
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April 27,
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2015
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2014
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2015
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2014
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Net sales
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$
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78,846,000
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$
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74,043,000
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$
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310,166,000
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$
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287,162,000
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Income before income taxes
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$
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6,685,000
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$
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4,120,000
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$
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22,956,000
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$
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19,043,000
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Net income
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$
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4,913,000
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$
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2,740,000
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$
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15,071,000
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$
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17,447,000
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Net income per share:
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Basic
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$
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0.40
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$
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0.22
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$
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1.23
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$
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1.43
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Diluted
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$
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0.39
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$
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0.22
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$
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1.21
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$
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1.41
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Adjusted net income
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$
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5,635,000
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$
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3,395,000
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$
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19,352,000
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$
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15,691,000
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Adjusted net income per share
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Basic
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$
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0.46
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$
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0.28
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$
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1.58
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$
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1.29
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Diluted
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$
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0.45
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$
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0.27
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$
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1.56
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$
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1.26
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Average shares outstanding:
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Basic
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12,219,000
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12,188,000
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12,217,000
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12,177,000
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Diluted
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12,440,000
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12,413,000
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12,422,000
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12,414,000
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Presentation of Adjusted Net Income and Adjusted Income Taxes (1)
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Three Months Ended
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Fiscal Year Ended
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May 3,
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April 27,
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May 3,
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April 27,
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2015
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2014
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2015
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2014
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Income before income taxes
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$
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6,685,000
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$
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4,120,000
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$
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22,956,000
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|
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$
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19,043,000
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Adjusted income taxes (2)
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$
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1,050,000
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$
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725,000
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$
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3,604,000
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$
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3,352,000
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Adjusted net income
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$
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5,635,000
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$
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3,395,000
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$
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19,352,000
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$
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15,691,000
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(1)
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Culp, Inc. currently does not incur cash income tax expense in the
U.S. due to its $32.2 million in net operating loss carryforwards.
Adjusted net income is calculated using only estimated cash income
tax expense for the company’s subsidiaries in Canada and China.
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(2)
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Represents estimated cash income tax expense for the company’s
subsidiaries in Canada and China, calculated with a consolidated
adjusted effective income tax rate of 15.7% for fiscal 2015 and
17.6% for fiscal 2014.
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Consolidated Adjusted Effective Income Tax Rate, Net Income and
Earnings Per Share
For the Twelve Months Ended May 3, 2015, and April 27, 2014
(Unaudited)
(Amounts in Thousands)
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TWELVE MONTHS ENDED
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Amounts
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May 3,
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April 27,
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2015
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2014
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Consolidated Effective GAAP Income Tax Rate
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(1)
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34.3
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%
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8.4
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%
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Undistributed Earnings From Foreign Subsidiaries
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(3.0
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)%
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26.3
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%
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Non-Cash U.S. Income Tax Expense
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(15.2
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)%
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(17.1
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)%
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Non-Cash Foreign Income Tax Expense
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|
|
|
(0.4
|
)%
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Adjusted Effective Income Tax Rate
|
(2)
|
|
|
|
15.7
|
%
|
|
|
|
17.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
|
|
|
|
|
|
|
|
|
As reported
|
|
|
|
|
|
May 3, 2015
|
|
|
As reported
|
|
|
|
|
|
|
April 27, 2014
|
|
|
|
|
|
|
|
|
|
May 3,
|
|
|
|
|
|
Proforma Net
|
|
|
April 27,
|
|
|
|
|
|
|
Proforma Net
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
Adjustments
|
|
|
of Adjustments
|
|
|
2014
|
|
|
Adjustments
|
|
|
of Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
$
|
6,685
|
|
|
|
$
|
-
|
|
|
|
$
|
6,685
|
|
|
$
|
4,120
|
|
|
-
|
|
|
|
$
|
4,120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes (3)
|
|
|
|
|
1,772
|
|
|
|
$
|
(722
|
)
|
|
|
|
1,050
|
|
|
|
1,380
|
|
|
$
|
(655
|
)
|
|
|
|
725
|
|
Net income
|
|
|
|
$
|
4,913
|
|
|
|
$
|
722
|
|
|
|
$
|
5,635
|
|
|
$
|
2,740
|
|
|
$
|
655
|
|
|
|
$
|
3,395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share-basic
|
|
|
|
$
|
0.40
|
|
|
|
$
|
0.06
|
|
|
|
$
|
0.46
|
|
|
$
|
0.22
|
|
|
$
|
0.05
|
|
|
|
$
|
0.28
|
|
Net income per share-diluted
|
|
|
|
$
|
0.39
|
|
|
|
$
|
0.06
|
|
|
|
$
|
0.45
|
|
|
$
|
0.22
|
|
|
$
|
0.05
|
|
|
|
$
|
0.27
|
|
Average shares outstanding-basic
|
|
|
|
12,219
|
|
|
|
|
12,219
|
|
|
|
|
12,219
|
|
|
|
12,188
|
|
|
|
12,188
|
|
|
|
|
12,188
|
|
Average shares outstanding-diluted
|
|
|
12,440
|
|
|
|
|
12,440
|
|
|
|
|
12,440
|
|
|
|
12,413
|
|
|
|
12,413
|
|
|
|
|
12,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TWELVE MONTHS ENDED
|
|
|
|
|
|
|
|
|
|
|
As reported
|
|
|
|
|
|
May 3, 2015
|
|
|
As reported
|
|
|
|
|
|
|
April 27, 2014
|
|
|
|
|
|
|
|
|
|
May 3,
|
|
|
|
|
|
Proforma Net
|
|
|
April 27,
|
|
|
|
|
|
|
Proforma Net
|
|
|
|
|
|
|
|
|
|
2015
|
|
|
Adjustments
|
|
|
of Adjustments
|
|
|
2014
|
|
|
Adjustments
|
|
|
of Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
$
|
22,956
|
|
|
|
$
|
-
|
|
|
|
$
|
22,956
|
|
|
$
|
19,043
|
|
|
$
|
-
|
|
|
|
$
|
19,043
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes (3)
|
|
|
|
|
7,885
|
|
|
|
$
|
(4,281
|
)
|
|
|
|
3,604
|
|
|
|
1,596
|
|
|
$
|
1,756
|
|
|
|
|
3,352
|
|
Net income
|
|
|
|
$
|
15,071
|
|
|
|
$
|
4,281
|
|
|
|
$
|
19,352
|
|
|
$
|
17,447
|
|
|
$
|
(1,756
|
)
|
|
|
$
|
15,691
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share-basic
|
|
|
|
$
|
1.23
|
|
|
|
$
|
0.35
|
|
|
|
$
|
1.58
|
|
|
$
|
1.43
|
|
|
$
|
(0.14
|
)
|
|
|
$
|
1.29
|
|
Net income per share-diluted
|
|
|
|
$
|
1.21
|
|
|
|
$
|
0.34
|
|
|
|
$
|
1.56
|
|
|
$
|
1.41
|
|
|
$
|
(0.14
|
)
|
|
|
$
|
1.26
|
|
Average shares outstanding-basic
|
|
|
|
12,217
|
|
|
|
|
12,217
|
|
|
|
|
12,217
|
|
|
|
12,177
|
|
|
|
12,177
|
|
|
|
|
12,177
|
|
Average shares outstanding-diluted
|
|
|
12,422
|
|
|
|
|
12,422
|
|
|
|
|
12,422
|
|
|
|
12,414
|
|
|
|
12,414
|
|
|
|
|
12,414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Calculated by dividing consolidated income tax expense by
consolidated income before income taxes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Represents estimated cash income tax expense for our subsidiaries
located in Canada and China divided by consolidated income before
income taxes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Proforma income taxes calculated using the Consolidated Adjusted
Effective Income Tax Rate as reflected above.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow
For the Twelve Months Ended May 3, 2015, and April 27, 2014
(Unaudited)
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY 2015
|
|
|
|
|
FY 2014
|
|
Net cash provided by operating activities
|
|
|
|
|
|
$
|
26,111
|
|
|
|
|
|
$
|
20,219
|
|
|
Minus: Capital Expenditures
|
|
|
|
|
|
|
(10,461
|
)
|
|
|
|
|
|
(5,258
|
)
|
|
Add: Proceeds from the sale of equipment
|
|
|
|
|
|
|
727
|
|
|
|
|
|
|
407
|
|
|
Add: Proceeds from life insurance policies
|
|
|
|
|
|
|
320
|
|
|
|
|
|
|
-
|
|
|
Minus: Payments on life insurance policies
|
|
|
|
|
|
|
(18
|
)
|
|
|
|
|
|
(30
|
)
|
|
Minus: Purchase of long-term investments
|
|
|
|
|
|
|
(1,650
|
)
|
|
|
|
|
|
(765
|
)
|
|
Add: Excess tax benefit related to stock-based compensation
|
|
|
|
|
|
|
109
|
|
|
|
|
|
|
143
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
|
|
|
(21
|
)
|
|
|
|
|
|
(875
|
)
|
|
Free Cash Flow
|
|
|
|
|
|
$
|
15,117
|
|
|
|
|
|
$
|
13,841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Return on Capital
For the Twelve Months Ended May 3, 2015, and April 27, 2014
(Unaudited)
(Amounts in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
|
|
|
|
May 3, 2015
|
|
|
|
|
|
April 27, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Income from Operations
|
|
|
$
|
22,789
|
|
|
|
|
|
|
$
|
20,249
|
|
|
|
|
|
|
|
|
Average Capital Employed (2)
|
|
|
|
77,888
|
|
|
|
|
|
|
|
77,159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average Capital Employed (1)
|
|
|
|
29.3
|
%
|
|
|
|
|
|
|
26.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Capital Employed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 3, 2015
|
|
|
February 1, 2015
|
|
|
November 2, 2014
|
|
|
August 3, 2014
|
|
|
April 27, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
171,368
|
|
|
|
$
|
167,815
|
|
|
|
$
|
156,662
|
|
|
|
$
|
154,212
|
|
|
|
$
|
160,935
|
|
|
Total liabilities
|
|
|
|
(51,941
|
)
|
|
|
|
(52,843
|
)
|
|
|
|
(44,988
|
)
|
|
|
|
(45,065
|
)
|
|
|
|
(49,191
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
|
$
|
119,427
|
|
|
|
$
|
114,972
|
|
|
|
$
|
111,674
|
|
|
|
$
|
109,147
|
|
|
|
$
|
111,744
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
(29,725
|
)
|
|
|
|
(28,772
|
)
|
|
|
|
(28,953
|
)
|
|
|
|
(24,665
|
)
|
|
|
|
(29,303
|
)
|
|
Short-term investments
|
|
|
|
(10,004
|
)
|
|
|
|
(8,384
|
)
|
|
|
|
(6,318
|
)
|
|
|
|
(6,311
|
)
|
|
|
|
(6,294
|
)
|
|
Long-term investments
|
|
|
|
(2,415
|
)
|
|
|
|
(2,063
|
)
|
|
|
|
(1,911
|
)
|
|
|
|
(1,749
|
)
|
|
|
|
(765
|
)
|
|
Income taxes receivable
|
|
|
|
(229
|
)
|
|
|
|
(104
|
)
|
|
|
|
-
|
|
|
|
|
(136
|
)
|
|
|
|
(121
|
)
|
|
Deferred income taxes - current
|
|
|
|
(4,790
|
)
|
|
|
|
(6,995
|
)
|
|
|
|
(6,191
|
)
|
|
|
|
(6,203
|
)
|
|
|
|
(6,230
|
)
|
|
Deferred income taxes - non-current
|
|
|
|
(447
|
)
|
|
|
|
(482
|
)
|
|
|
|
(508
|
)
|
|
|
|
(973
|
)
|
|
|
|
(2,040
|
)
|
|
Current maturities of long-term debt
|
|
|
|
2,200
|
|
|
|
|
2,200
|
|
|
|
|
2,200
|
|
|
|
|
2,200
|
|
|
|
|
2,200
|
|
|
Line of credit
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
569
|
|
|
|
|
586
|
|
|
Income taxes payable - current
|
|
|
|
325
|
|
|
|
|
325
|
|
|
|
|
268
|
|
|
|
|
387
|
|
|
|
|
442
|
|
|
Income taxes payable - long-term
|
|
|
|
3,792
|
|
|
|
|
3,630
|
|
|
|
|
3,980
|
|
|
|
|
4,037
|
|
|
|
|
3,962
|
|
|
Deferred income taxes - non-current
|
|
|
|
1,050
|
|
|
|
|
3,384
|
|
|
|
|
1,395
|
|
|
|
|
1,013
|
|
|
|
|
1,013
|
|
|
Long-term debt, less current maturities
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
2,200
|
|
|
|
|
2,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Capital Employed
|
|
|
$
|
79,184
|
|
|
|
$
|
77,711
|
|
|
|
$
|
75,636
|
|
|
|
$
|
79,516
|
|
|
|
$
|
77,394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Capital Employed (2)
|
|
|
$
|
77,888
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 27, 2014
|
|
|
January 26, 2014
|
|
|
October 27, 2013
|
|
|
July 28, 2013
|
|
|
April 28, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
160,935
|
|
|
|
$
|
156,678
|
|
|
|
$
|
156,242
|
|
|
|
$
|
151,101
|
|
|
|
$
|
144,706
|
|
|
Total liabilities
|
|
|
|
(49,191
|
)
|
|
|
|
(47,235
|
)
|
|
|
|
(54,727
|
)
|
|
|
|
(52,516
|
)
|
|
|
|
(49,123
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
|
|
|
$
|
111,744
|
|
|
|
$
|
109,443
|
|
|
|
$
|
101,515
|
|
|
|
$
|
98,585
|
|
|
|
$
|
95,583
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
(29,303
|
)
|
|
|
|
(23,293
|
)
|
|
|
|
(24,267
|
)
|
|
|
|
(21,423
|
)
|
|
|
|
(23,530
|
)
|
|
Short-term investments
|
|
|
|
(6,294
|
)
|
|
|
|
(7,077
|
)
|
|
|
|
(6,220
|
)
|
|
|
|
(6,174
|
)
|
|
|
|
(5,286
|
)
|
|
Long-term investments
|
|
|
|
(765
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Income taxes receivable
|
|
|
|
(121
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(292
|
)
|
|
|
|
(318
|
)
|
|
Deferred income taxes - current
|
|
|
|
(6,230
|
)
|
|
|
|
(7,503
|
)
|
|
|
|
(7,745
|
)
|
|
|
|
(7,747
|
)
|
|
|
|
(7,709
|
)
|
|
Deferred income taxes - non-current
|
|
|
|
(2,040
|
)
|
|
|
|
(1,227
|
)
|
|
|
|
(661
|
)
|
|
|
|
(651
|
)
|
|
|
|
(753
|
)
|
|
Current maturities of long-term debt
|
|
|
|
2,200
|
|
|
|
|
2,200
|
|
|
|
|
2,200
|
|
|
|
|
2,200
|
|
|
|
|
2,200
|
|
|
Line of credit
|
|
|
|
586
|
|
|
|
|
573
|
|
|
|
|
585
|
|
|
|
|
560
|
|
|
|
|
561
|
|
|
Income taxes payable - current
|
|
|
|
442
|
|
|
|
|
130
|
|
|
|
|
304
|
|
|
|
|
320
|
|
|
|
|
285
|
|
|
Income taxes payable - long-term
|
|
|
|
3,962
|
|
|
|
|
3,953
|
|
|
|
|
4,141
|
|
|
|
|
4,176
|
|
|
|
|
4,191
|
|
|
Deferred income taxes - non-current
|
|
|
|
1,013
|
|
|
|
|
945
|
|
|
|
|
5,016
|
|
|
|
|
4,335
|
|
|
|
|
3,075
|
|
|
Long-term debt, less current maturities
|
|
|
|
2,200
|
|
|
|
|
2,200
|
|
|
|
|
2,200
|
|
|
|
|
4,400
|
|
|
|
|
4,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Capital Employed
|
|
|
$
|
77,394
|
|
|
|
$
|
80,344
|
|
|
|
$
|
77,068
|
|
|
|
$
|
78,289
|
|
|
|
$
|
72,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Capital Employed (2)
|
|
|
$
|
77,159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Return on average capital employed represents operating income
for fiscal 2015 or 2014 divided by average capital employed.
Average capital employed does not include cash and cash
equivalents, short-term investments, long-term investments,
long-term debt, including current maturities, line of credit,
current and noncurrent deferred tax assets and liabilities, and
income taxes receivable and payable.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Average capital employed for fiscal 2015 was computed using
five quarterly periods ending May 3, 2015, February 1, 2015,
November 2, 2014, August 3, 2014 and April 27, 2014. Average
capital employed used for fiscal 2014 was computed using five
quarterly periods ending April 27, 2014, January 26, 2014, October
27, 2013, July 28, 2013 and April 28, 2013.
|
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