8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) December 3, 2020

Culp, Inc.

(Exact Name of Registrant as Specified in its Charter)

North Carolina	1-12597	56-1001967
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

1823 Eastchester Drive

High Point, North Carolina  27265

(Address of Principal Executive Offices)

(Zip Code)

(336) 889-5161

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former name or address, if changed from last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of exchange on which registered
Common stock, par value $0.05 per share	CULP	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).  Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

This report and the exhibit attached hereto contain “forward-looking statements” within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934). Such statements are inherently subject to risks and uncertainties that may cause actual events and results to differ materially from such statements. Further, forward looking statements are intended to speak only as of the date on which they are made, and we disclaim any duty to update such statements to reflect any changes in management’s expectations or any change in the assumptions or circumstances on which such statements are based, whether due to new information, future events, or otherwise. Forward-looking statements are statements that include projections, expectations, or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often but not always characterized by qualifying words such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “plan,” “project,” and their derivatives, and include but are not limited to statements about expectations for our future operations, production levels, new product launches, sales, profit margins, profitability, operating income, capital expenditures, working capital levels, income taxes, SG&A or other expenses, pre-tax income, earnings, cash flow, and other performance or liquidity measures, as well as any statements regarding potential acquisitions, future economic or industry trends, public health epidemics, or future developments. There can be no assurance that the company will realize these expectations, meet its guidance, or that these beliefs will prove correct.

Factors that could influence the matters discussed in such statements include the level of housing starts and sales of existing homes, consumer confidence, trends in disposable income, and general economic conditions. Decreases in these economic indicators could have a negative effect on our business and prospects. Likewise, increases in interest rates, particularly home mortgage rates, and increases in consumer debt or the general rate of inflation, could affect us adversely. The future performance of our business depends in part on our success in conducting and finalizing acquisition negotiations and integrating acquired businesses into our existing operations. Changes in consumer tastes or preferences toward products not produced by us could erode demand for our products. Changes in tariffs or trade policy, or 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. The impact of public health epidemics on employees, customers, suppliers, and the global economy, such as the global coronavirus pandemic currently affecting countries around the world, could also adversely affect our operations and financial performance. In addition, the impact of potential goodwill or intangible asset impairments or valuation allowances could affect our financial results. Finally, increases in market prices for petrochemical products can significantly affect the prices we pay for raw materials, and in turn, increase our operating costs and decrease our profitability. 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 most recent Form 10-K and Form 10-Q reports filed with the Securities and Exchange Commission.  A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur.

Item 2.02 – Results of Operations and Financial Condition

The information set forth in this Item 2.02 of this Current Report, and in Exhibit 99, is intended to be “furnished” under Item 2.02 of Form 8-K.  Such information shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

On December 3, 2020, we issued a news release to announce our financial results for our second quarter ended November 1, 2020. The news release is attached hereto as Exhibit 99.

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The news release contains adjusted income statement information, which discloses adjusted net income (loss) and adjusted earnings per share, non-GAAP performance measures that eliminate a non-cash income tax charge in connection with the recordation of a full valuation allowance against the Company’s U.S. net deferred income tax assets, as well as a non-cash income tax benefit resulting from the re-establishment of certain U.S. Federal net operating loss carryforwards in connection with the recently enacted final regulations regarding the Global Intangible Low Taxed Income (“GILTI”) tax provisions of the Tax Cuts and Jobs Act of 2017.  The company has included this adjusted information in order to show operational performance excluding the effects of this non-cash income tax charge and non-cash income tax benefit, which are not expected to occur on a regular basis.  Details of these calculations and a reconciliation to information from our GAAP financial statements are set forth in the news release. Management believes this presentation aids in the comparison of financial results among comparable financial periods.  We note, however, that this adjusted income statement information should not be viewed in isolation or as a substitute for net income or earnings per share calculated in accordance with GAAP.  In addition, the calculation of the company’s income taxes involves numerous estimates and assumptions, which we have made in good faith.  

The news release contains disclosures about free cash flow, a non-GAAP liquidity measure that we define as net cash provided by (used in) operating activities, less cash capital expenditures, plus any proceeds from sale of property, plant, and equipment, less investment in unconsolidated joint venture, plus proceeds from life insurance policies (if any), less premium payments on life insurance policies (if any), less payments on vendor-financed capital expenditures, plus proceeds from the sale of long-term investments associated with our rabbi trust, less the purchase of long-term investments associated with our rabbi trust, and plus or minus the effects of foreign currency exchange rate changes on cash and cash equivalents. Details of these calculations and a reconciliation to information from our GAAP financial statements are set forth in the news release. Management believes the disclosure of free cash flow provides useful information to investors because it measures our available cash flow for potential debt repayment, stock repurchases, dividends, and additions to cash and investments. We note, however, that not all of the company’s free cash flow is available for discretionary spending, as we may have mandatory debt payments and other cash requirements that must be deducted from our cash available for future use. In operating our business, management uses free cash flow to make decisions about what commitments of cash to make for operations, such as capital expenditures (and financing arrangements for these expenditures), purchases of inventory or supplies, SG&A expenditure levels, compensation, and other commitments of cash, while still allowing for adequate cash to meet known future commitments for cash, such as debt repayment, and also for making decisions about dividend payments and share repurchases.

The news release contains disclosures about our Adjusted EBITDA, which is a non-GAAP performance measure that reflects net (loss) income excluding loss before income taxes from discontinued operations, income tax expense (benefit) from continuing operations, and net interest income, as well as depreciation expense from continuing operations, amortization expense, and stock-based compensation expense. This measure also excludes asset impairment charges from continuing operations, restructuring and related charges and credits, as well as other non-recurring charges and credits associated with our business. Details of these calculations and a reconciliation to information from our GAAP financial statements are set forth in the news release. We believe presentation of Adjusted EBITDA is useful to investors because earnings before interest income and expense, income taxes, depreciation and amortization, and similar performance measures that exclude certain charges from earnings, are often used by investors and financial analysts in evaluating and comparing companies in our industry. We note, however, that such measures are not defined uniformly by various companies, with differing expenses being excluded from net income to calculate these performance measures. For this reason, Adjusted EBITDA should not be viewed in isolation by investors and should not be used as a substitute for net income calculated in accordance with GAAP, nor should it be used for direct comparisons with similarly titled performance measures reported by other companies. Use of Adjusted EBITDA as an analytical tool has limitations in that this measure does not reflect all expenses that are necessary to fund and operate our business, including funds required to pay taxes, service our debt, and fund capital expenditures, among others. Management uses Adjusted EBITDA to help it analyze the company’s earnings and operating performance, by excluding the effects of expenses that depend upon capital structure and debt level, tax provisions, and non-cash items such as depreciation, amortization and stock-based compensation expense that do not require immediate uses of cash.

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Item 9.01 (d) – Exhibits

99	News Release dated December 3, 2020
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

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EXHIBIT INDEX

Exhibit Number	Exhibit
99	News Release dated December 3, 2020
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

CULP, INC. (Registrant)
By:	/s/ Kenneth R. Bowling
	Chief Financial Officer
	(principal financial officer)
By:	/s/ Thomas B. Gallagher, Jr.
	Corporate Controller
	(principal accounting officer)

Dated:  December 3, 2020

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EX-99

Exhibit 99

Investor Contact:	Kenneth R. Bowling	Media Contact:	Teresa A. Huffman
	Chief Financial Officer		Senior Vice President, Human Resources
	336-881-5630		336-889-5161

CULP ANNOUNCES RESULTS FOR SECOND QUARTER FISCAL 2021

Board of Directors Authorizes Five Percent Increase

in Quarterly Cash Dividend on Solid Results and Strengthened Liquidity

HIGH POINT, N.C. (December 3, 2020) ─ Culp, Inc. (NYSE: CULP) today reported financial and operating results for the second quarter ended November 1, 2020.  

Fiscal 2021 Second Quarter Financial Summary⁽¹⁾

▪ Net sales were $76.9 million, up 10.5 percent over the prior-year period, with mattress fabric sales up 12.2 percent and upholstery fabric sales up 8.7 percent compared with the second quarter of last year.  

▪ Pre-tax income from continuing operations improved sequentially to $3.9 million, which included $680,000 in other expense relating mostly to foreign exchange rate fluctuations associated with China, compared with pre-tax income from continuing operations of $4.5 million for the prior-year period, which included $99,000 in other expense.

▪ Net income from continuing operations was $2.4 million, or $0.19 per diluted share, compared with net income from continuing operations of $2.2 million, or $0.18 per diluted share, for the prior-year period.

▪ The company’s financial position reflected increased total cash and investments of $56.5 million and no outstanding borrowings as of November 1, 2020.  This compares with a net cash position of $38.7 million as of the end of the fourth quarter of fiscal 2020.  (See summary of cash and investments table on page 9.)

▪ Cash flow from operations and free cash flow for the first six months of fiscal 2021 were $22.7 million and $20.5 million, respectively, compared with cash flow from operations and free cash flow of $8.2 million and $5.6 million, respectively, for the prior-year period.  (See reconciliation table on page 11.)

▪ The company announced a five percent increase in its quarterly cash dividend to $0.11 per share, commencing in the third quarter of fiscal 2021.  At an annual indicated dividend of $0.44 per share, the yield is 3.03%, based upon yesterday’s closing stock price of $14.50 per share.  Notably, this is the company’s eighth straight year of increasing its annual dividend.  

Financial Outlook

▪ Due to the continued economic impact of the COVID-19 pandemic and the lack of visibility as to its duration, the company is providing only limited financial guidance for fiscal 2021 at this time.  

⁽¹⁾ During the fourth quarter of fiscal 2020, the company sold its majority ownership interest in eLuxury, LLC, resulting in the elimination of its home accessories segment.  Accordingly, the financial results for this segment are excluded from the reported financial performance of the company’s continuing operations and are presented as a discontinued operation in the company’s consolidated financial statements.

CULP Announces Results for Second Quarter Fiscal 2021

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December 3, 2020

▪ Although subject to unforeseen changes that may arise in connection with the pandemic, the company is encouraged by the ongoing execution of its product-driven strategy and continued strength in demand for home furnishing products, as well as its opportunities for market share growth.  The company expects sales and operating income for the third quarter of fiscal 2021 to be comparable to the prior-year period, with the mattress fabrics segment continuing its strong rebound and the upholstery fabrics segment facing ongoing headwinds relating to foreign exchange rate fluctuations associated with its operations located in China, customer supply chain constraints, and sales mix.  The company also expects sales and operating income for the fourth quarter of fiscal 2021 to be dramatically improved for both segments as compared to the fourth quarter of fiscal 2020.  

Commenting on the results, Iv Culp, president and chief executive officer of Culp, Inc., said, “We are pleased with our strong performance for the second quarter of fiscal 2021, which reflects the tireless efforts of our associates around the world and the strength and resilience of our global platform.  Our dedicated team has done an outstanding job in following the protocols we have put in place to operate safely, while also meeting the rapid surge in demand with the high level of service and product quality that our customers know and expect from us.  As we continue to navigate our way through these uncertain times, our top priority remains the health and safety of our employees, customers, suppliers, and the communities we serve.  We are incredibly proud of our team’s continued drive to deliver innovative products and satisfy the evolving needs of our customers, while also integrating enhanced safety practices and new ways of working virtually throughout our business.

“Overall, we are very pleased with the top line performance for both our mattress fabrics and upholstery fabrics segments.  This faster-than-expected recovery indicates an increased consumer focus on the home environment, as well as our ability to service this increase in demand through our strong global platform and stable supply chain.  We are also benefitting from market share gains as our innovative products are resonating well with both new and existing customers.  Additionally, we delivered significant sequential improvement in operating income as compared to the first quarter, consistent with our expectations.  

“We further strengthened our balance sheet with increased liquidity, as total cash and investments reached $56.5 million.  Based on this strong financial performance, we are pleased to announce that our Board of Directors approved a five percent increase in our quarterly dividend, which marks the eighth consecutive year of increasing our annual dividend.  This is consistent with our capital allocation strategy and our commitment to generate value for our shareholders.  

“Looking ahead, our customers’ ability to meet their demand is being challenged by supply chain constraints related primarily to non-fabric components, as well as labor shortages, which could temporarily delay their scheduled delivery of fabric orders from both our mattress and upholstery fabrics segments.  Additionally, the ongoing impact and duration of the COVID-19 pandemic remains unknown.  We are prepared for a range of macroeconomic scenarios and are confident in our ability to weather these near-term headwinds.  Barring additional shutdowns, we are optimistic, based on current industry demand trends and market share opportunities, that we will deliver strong results in the second half of fiscal 2021.  We are well positioned for continued growth and look forward to the opportunities ahead for our business in fiscal 2021,” added Culp.

Segment Update

Mattress Fabrics Segment

Sales for this segment were $40.0 million for the second quarter, up 12.2 percent compared with sales of $35.7 million in the second quarter of fiscal 2020.  

“We were especially encouraged by the strong growth in sales and operating income for the mattress fabric segment during the second quarter,” said Sandy Brown, president of Culp’s mattress fabrics division.  “The COVID-19 pandemic has generated greater consumer awareness and appreciation for overall comfort and wellness within the home environment, leading to an increase in discretionary spending on home furnishing products, including mattresses.  We built on the momentum generated during the last eight weeks of the first quarter by utilizing our product-driven strategy for both mattress fabrics and sewn covers, as well as our global supply chain and dedicated attention to our customers.  The strength and flexibility of our global manufacturing and sourcing operations in the U.S.,

CULP Announces Results for Second Quarter Fiscal 2021

Page 3

December 3, 2020

Canada, Haiti, Asia, and Turkey enabled us to support current demand and serve the needs of our mattress fabric and cover customers.

“We remain pleased with the growth of our sewn mattress cover business, with demand trends for mattress covers exceeding pre-COVID levels.  This trend is driven by the ongoing growth in the boxed bedding space, and we continue to work collaboratively with new and existing customers to develop fresh, innovative products.

“During this uncertain and rapidly evolving environment, we have managed our business with a firm focus on creative designs, innovative fabric and sewn cover products, and exceptional service.  We are excited about ongoing developments in product innovation, including expanding our specialty finish options and virtual rendering services.  We also expect that our increased capacity in North America resulting from our investment in additional equipment will be available during the fourth quarter of fiscal 2021.  Finally, we believe that the domestic mattress industry, and, in turn, our business, will benefit from the recent preliminary antidumping duties imposed by the U.S. Department of Commerce on mattress importers from seven countries.  

“Barring additional shutdowns or significant disruption in our customers’ supply chain for raw materials other than fabric, we believe we are well positioned to execute our strategy and increase market share during the second half of fiscal 2021,” added Brown.

Upholstery Fabrics Segment

Sales for this segment were $36.8 million for the second quarter, up 8.7 percent compared with sales of $33.9 million in the second quarter of fiscal 2020.  

“We were very pleased with the solid growth in our upholstery fabric sales for the second quarter,” said Boyd Chumbley, president of Culp’s upholstery fabrics division.  “Our residential upholstery business saw a significant increase in sales compared to the prior-year period, driven primarily by the increased consumer focus on the at-home experience and overall comfort.  Through our strong platform in Asia, including our expanded cut and sew capabilities in Vietnam and our stable, long-term supplier relationships, we were able to respond quickly to meet the upsurge in demand from our customers and increase our market share.  We have also generated a historically strong backlog in our residential upholstery business, reflecting the ongoing favorable demand trends for this business.

“Our line of highly durable, stain-resistant LiveSmart® performance fabrics, as well as our line of LiveSmart Evolve® performance plus sustainability fabrics, continued to experience favorable demand trends.  We also recently launched LiveSmart Ultra™, which features a new antimicrobial finish as the next step in our LiveSmart performance brand evolution.  These LiveSmart performance fabrics are important drivers of growth in our residential business.

“Our hospitality business remained under pressure by the ongoing COVID-19 disruption that continued to affect the travel and leisure industries.  These lingering pressures also affected Read Window Products, our window treatment and installation business, during the quarter.  While sales for our hospitality business remained relatively stable as compared to the first quarter, we expect that the disruption in hospitality and leisure will continue to affect this business in the near-term.  

“Additionally, while we saw a material sequential improvement in our operating income as compared to the first quarter of fiscal 2021, our second quarter results compared to the prior-year period were materially affected by unfavorable China foreign exchange rate fluctuations, as well as sales mix.  We expect these factors will continue to affect our operating income during the third quarter. Despite these pressures, we were encouraged by our solid operating margin for the second quarter.

“We are encouraged by the strong backlog in our residential upholstery business and are confident in our ability to meet this demand.  We expect the strong performance in our residential upholstery business to continue, absent additional pandemic-related shutdowns or material disruption in our customers’ supply chain,” added Chumbley.  

CULP Announces Results for Second Quarter Fiscal 2021

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December 3, 2020

Balance Sheet

“As the ongoing impact of the COVID-19 pandemic remains uncertain, maintaining a strong financial position remains one of Culp’s top priorities for fiscal 2021,” added Ken Bowling, executive vice president and chief financial officer of Culp, Inc.  “As of November 1, 2020, we reported $56.5 million in total cash and investments and no outstanding borrowings, up from our $38.7 million net cash position as of the end of the fourth quarter of fiscal 2020.  For the first six months of fiscal 2021, we incurred $2.0 million in capital expenditures and spent $2.6 million on regular dividends.  We also generated cash flow from operations of $22.7 million and free cash flow from operations of $20.5 million for the first half of fiscal 2021, compared with cash flow from operations of $8.2 million and free cash flow of $5.6 million for the prior-year period.  (See reconciliation table on page 11.)  This year-over-year improvement reflects a focused attention on working capital management during the first half of the year.  While we are extremely pleased with our strong cash position and fortified balance sheet going into the second half of the year, it is important to note that our cash position will be affected by our strategic investments in working capital and planned capital expenditures during this period.”  

Dividends and Share Repurchases

The company announced that its Board of Directors has approved a five percent increase in the company’s quarterly cash dividend to 11 cents per share, marking the eighth straight year of increasing the annual dividend.  At an annual indicated dividend of $0.44 per share, the yield is 3.03%, based upon yesterday’s closing stock price of $14.50 per share.  The next quarterly payment will be made on or about January 18, 2021, to shareholders of record as of January 8, 2021. The Board will continue to evaluate the appropriateness of the current dividend rate considering economic conditions and the company’s performance in upcoming quarters.  

The company did not repurchase any shares during the second quarter of fiscal 2021, leaving the full $5.0 million available under the share repurchase program approved by the Board in March 2020.  As previously disclosed, the company has temporarily suspended its share repurchases given the economic uncertainty related to COVID-19.

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, China, and Haiti.

CULP Announces Results for Second Quarter Fiscal 2021

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December 3, 2020

This release contains “forward-looking statements” within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934).  Such statements are inherently subject to risks and uncertainties that may cause actual events and results to differ materially from such statements.  Further, forward looking statements are intended to speak only as of the date on which they are made, and we disclaim any duty to update such statements to reflect any changes in management’s expectations or any change in the assumptions or circumstances on which such statements are based, whether due to new information, future events, or otherwise.  Forward-looking statements are statements that include projections, expectations, or beliefs about future events or results or otherwise are not statements of historical fact.  Such statements are often but not always characterized by qualifying words such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “plan,” “project,” and their derivatives, and include but are not limited to statements about expectations for our future operations, production levels, new product launches, sales, profit margins, profitability, operating income, capital expenditures, working capital levels, income taxes, SG&A or other expenses, pre-tax income, earnings, cash flow, and other performance or liquidity measures, as well as any statements regarding potential acquisitions, future economic or industry trends, public health epidemics, or future developments.  There can be no assurance that the company will realize these expectations, meet its guidance, or that these beliefs will prove correct.

Factors that could influence the matters discussed in such statements include the level of housing starts and sales of existing homes, consumer confidence, trends in disposable income, and general economic conditions.  Decreases in these economic indicators could have a negative effect on our business and prospects.  Likewise, increases in interest rates, particularly home mortgage rates, and increases in consumer debt or the general rate of inflation, could affect us adversely.  The future performance of our business depends in part on our success in conducting and finalizing acquisition negotiations and integrating acquired businesses into our existing operations.  Changes in consumer tastes or preferences toward products not produced by us could erode demand for our products.  Changes in tariffs or trade policy, or 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.  The impact of public health epidemics on employees, customers, suppliers, and the global economy, such as the global coronavirus pandemic currently affecting countries around the world, could also adversely affect our operations and financial performance.  In addition, the impact of potential goodwill or intangible asset impairments could affect our financial results.  Finally, increases in market prices for petrochemical products can significantly affect the prices we pay for raw materials, and in turn, increase our operating costs and decrease our profitability.  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 most recent Form 10-K and Form 10-Q reports filed with the Securities and Exchange Commission.  A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur.

CULP Announces Results for Second Quarter Fiscal 2021

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December 3, 2020

CULP, INC.

CONSOLIDATED STATEMENTS OF NET INCOME

FOR THREE MONTHS ENDED NOVEMBER 1, 2020, AND NOVEMBER 3, 2019

Unaudited

(Amounts in Thousands, Except for Per Share Data)

	THREE MONTHS ENDED
	Amount									Percent of Sales
	November 1,			November 3,			% Over			November 1,			November 3,
	2020			2019			(Under)			2020			2019
Net sales	$	76,851			69,550			10.5	%		100.0	%		100.0	%
Cost of sales		(62,590	)		(56,024	)		11.7	%		81.4	%		80.6	%
Gross profit from continuing operations		14,261			13,526			5.4	%		18.6	%		19.4	%
Selling, general and administrative    expenses		(9,743	)		(9,117	)		6.9	%		12.7	%		13.1	%
Income from continuing operations		4,518			4,409			2.5	%		5.9	%		6.3	%
Interest expense		—			(21	)		100.0	%		0.0	%		(0.0	)%
Interest income		59			258			(77.1	)%		0.1	%		0.4	%
Other expense		(680	)		(99	)		586.9	%		0.9	%		0.1	%
Income before income taxes from    continuing operations		3,897			4,547			(14.3	)%		5.1	%		6.5	%
Income tax expense (1)		(1,613	)		(2,279	)		(29.2	)%		41.4	%		50.1	%
Income (loss) from investment in    unconsolidated joint venture		100			(16	)	N.M.				0.1	%		(0.0	)%
Net income from continuing operations		2,384			2,252			5.9	%		3.1	%		3.2	%
Loss before income taxes from     discontinued operation (2)		—			(441	)		(100.0	)%		—			(0.6	)%
Income tax benefit (2) (3)		—			381			(100.0	)%		—			86.4	%
Net loss from discontinued operation (2)		—			(60	)		(100.0	)%		—			(0.1	)%
Net income	$	2,384			2,192			8.8	%		3.1	%		3.2	%
Net income from continuing operations    per share - basic	$	0.19		$	0.18			6.8	%
Net income from continuing operations    per share - diluted	$	0.19		$	0.18			6.6	%
Net loss from discontinued operation per    share - basic	$	—		$	(0.00	)		(100.0	)%
Net loss from discontinued operation per    share - diluted	$	—		$	(0.00	)		(100.0	)%
Net income per share - basic	$	0.19		$	0.18			9.7	%
Net income per share - diluted	$	0.19		$	0.18			9.5	%
Average shares outstanding-basic		12,298			12,408			(0.9	)%
Average shares outstanding-diluted		12,324			12,408			(0.7	)%

Notes

(1) Percent of sales column for income tax expense is calculated as a % of income before income taxes from continuing operations.

(2) Effective March 31, 2020, we sold our entire ownership of eLuxury, LLC to its noncontrolling interest holder, resulting in the elimination of the home accessories segment at such time.

(3) Percent of sales column for income tax benefit is calculated as a % of loss before income taxes from discontinued operation.

CULP Announces Results for Second Quarter Fiscal 2021

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December 3, 2020

CULP, INC.

CONSOLIDATED STATEMENTS OF NET (LOSS) INCOME

FOR SIX MONTHS ENDED NOVEMBER 1, 2020, AND NOVEMBER 3, 2019

Unaudited

(Amounts in Thousands, Except for Per Share Data)

	SIX MONTHS ENDED
	Amount									Percent of Sales
	(4)			(4)
	November 1,			November 3,			% Over			November 1,			November 3,
	2020			2019			(Under)			2020			2019
Net sales	$	141,315			140,269			0.7	%		100.0	%		100.0	%
Cost of sales		(117,153	)		(114,331	)		2.5	%		82.9	%		81.5	%
Gross profit from continuing operations		24,162			25,938			(6.8	)%		17.1	%		18.5	%
Selling, general and administrative    expenses		(17,761	)		(18,266	)		(2.8	)%		12.6	%		13.0	%
Restructuring credit		-			35			(100.0	)%		(0.0	)%		0.0	%
Income from continuing operations		6,401			7,707			(16.9	)%		4.5	%		5.5	%
Interest expense		(51	)		(21	)		142.9	%		0.0	%		0.0	%
Interest income		117			518			(77.4	)%		0.1	%		0.4	%
Other expense		(1,046	)		(194	)		439.2	%		0.7	%		0.1	%
Income before income taxes from    continuing operations		5,421			8,010			(32.3	)%		3.8	%		5.7	%
Income tax expense (1)		(5,937	)		(3,971	)		49.5	%		109.5	%		49.6	%
Income (loss) from investment in    unconsolidated joint venture		167			(3	)	N.M.				0.1	%		(0.0	)%
Net (loss) income from continuing operations		(349	)		4,036			(108.6	)%		(0.2	)%		2.9	%
Loss before income taxes from discontinued    operation (2)		—			(1,062	)		(100.0	)%		0.0	%		(0.8	)%
Income tax benefit (2) (3)		—			392			(100.0	)%		0.0	%		36.9	%
Net loss from discontinued operation (2)		—			(670	)		(100.0	)%		0.0	%		(0.5	)%
Net (loss) income	$	(349	)		3,366			(110.4	)%		(0.2	)%		2.4	%
Net (loss) income from continuing operations     per share - basic	$	(0.03	)	$	0.33			(108.7	)%
Net (loss) income from continuing operations     per share - diluted	$	(0.03	)	$	0.33			(108.7	)%
Net loss from discontinued operation per    share - basic	$	—		$	(0.05	)		(100.0	)%
Net loss from discontinued operation per    share - diluted	$	—		$	(0.05	)		(100.0	)%
Net (loss) income per share - basic	$	(0.03	)	$	0.27			(110.5	)%
Net (loss) income per share - diluted	$	(0.03	)	$	0.27			(110.5	)%
Average shares outstanding-basic		12,293			12,403			(0.9	)%
Average shares outstanding-diluted		12,293			12,413			(1.0	)%

Notes

(1) Percent of sales column for income tax expense is calculated as a % of income before income taxes from continuing operations.

(2) Effective March 31, 2020, we sold our entire ownership of eLuxury, LLC to its noncontrolling interest holder, resulting in the elimination of the home accessories segment at such time.

(3) Percent of sales column for income tax benefit is calculated as a % of loss before income taxes from discontinued operation.

(4) See page 14 for our Reconciliation of Selected Income Statement Information to Adjusted Results for the six-month periods ending November 1, 2020 and November 3, 2019, which includes certain adjustments to income tax expense from continuing operation.

CULP Announces Results for Second Quarter Fiscal 2021

Page 8

December 3, 2020

CULP, INC.

CONSOLIDATED BALANCE SHEETS

NOVEMBER 1, 2020, NOVEMBER 3, 2019, AND MAY 3, 2020

Unaudited

(Amounts in Thousands)

	Amounts
	(Condensed)		(Condensed)								(Condensed)
	November 1,		November 3,		Increase (Decrease)						* May 3,
	2020		2019		Dollars			Percent			2020
Current assets
Cash and cash equivalents	$	45,288		46,955		(1,667	)		(3.6	)%		69,790
Short-term investments - Held-To-Maturity		5,005		—		5,005			100.0	%		4,271
Short-term investments - Available for Sale		5,462		—		5,462			100.0	%		923
Accounts receivable		32,960		23,890		9,070			38.0	%		25,093
Inventories		47,726		51,443		(3,717	)		(7.2	)%		47,907
Current income taxes receivable		—		776		(776	)		(100.0	)%		1,585
Current assets - Discontinued operation		—		4,760		(4,760	)		(100.0	)%		—
Other current assets		3,509		2,745		764			27.8	%		2,116
Total current assets		139,950		130,569		9,381			7.2	%		151,685
Property, plant & equipment, net		41,599		45,221		(3,622	)		(8.0	)%		43,147
Goodwill		—		13,569		(13,569	)		(100.0	)%		—
Intangible assets		3,192		3,711		(519	)		(14.0	)%		3,380
Long-term investments - Rabbi Trust		8,060		7,575		485			6.4	%		7,834
Long-term investments - Held-To-Maturity		759		—		759			100.0	%		2,076
Right of use asset		6,165		4,883		1,282			26.3	%		3,903
Noncurrent income taxes receivable		—		733		(733	)		(100.0	)%		—
Deferred income taxes		645		511		134			26.2	%		793
Investment in unconsolidated joint venture		1,859		1,504		355			23.6	%		1,602
Long-term note receivable affiliated with    discontinued operation		—		1,800		(1,800	)		(100.0	)%		—
Noncurrent assets - Discontinued operation		—		22,950		(22,950	)		(100.0	)%		—
Other assets		547		496		51			10.3	%		664
Total assets	$	202,776		233,522		(30,746	)		(13.2	)%		215,084
Current liabilities
Line of credit - China operations	$	—		—		—			—			1,015
Paycheck Protection Program Loan		—		—		—			—			7,606
Accounts payable - trade		38,247		26,336		11,911			45.2	%		23,002
Accounts payable - capital expenditures		68		398		(330	)		(82.9	)%		107
Operating lease liability - current		2,316		2,090		226			10.8	%		1,805
Deferred revenue		375		375		—			—			502
Accrued expenses		11,684		8,263		3,421			41.4	%		5,687
Accrued restructuring costs		—		35		(35	)		(100.0	)%		—
Current liabilities - Discontinued operation		—		1,907		(1,907	)		(100.0	)%		—
Income taxes payable - current		1,413		1,539		(126	)		(8.2	)%		395
Total current liabilities		54,103		40,943		13,160			32.1	%		40,119
Line of credit - U.S. operations		—		—		—			—			29,750
Accrued expenses - long-term		—		333		(333	)		(100.0	)%		167
Operating lease liability - long-term		4,008		2,614		1,394			53.3	%		2,016
Contingent consideration affiliated with    discontinued operation		—		6,006		(6,006	)		(100.0	)%		—
Income taxes payable - long-term		3,325		3,442		(117	)		(3.4	)%		3,796
Deferred income taxes		6,089		3,283		2,806			85.5	%		1,818
Deferred compensation		8,000		7,429		571			7.7	%		7,720
Noncurrent liabilities - Discontinued operation		—		3,550		(3,550	)		(100.0	)%		—
Total liabilities		75,525		67,600		7,925			11.7	%		85,386
Shareholders' equity
Shareholders' equity attributable to Culp Inc.		127,251		161,520		(34,269	)		(21.2	)%		129,698
Non-controlling interest - Discontinued Operation		-		4,402		(4,402	)		(100.0	)%		—
		127,251		165,922		(38,671	)		(23.3	)%		129,698
Total liabilities and    shareholders' equity	$	202,776		233,522		(30,746	)		(13.2	)%		215,084
Shares outstanding		12,303		12,412		(109	)		(0.9	)%		12,285

* Derived from audited financial statements.

CULP Announces Results for Second Quarter Fiscal 2021

Page 9

December 3, 2020

CULP, INC.

SUMMARY OF CASH, INVESTMENTS, AND DEBT

NOVEMBER 1, 2020, NOVEMBER 3, 2019, AND MAY 3, 2020

Unaudited

(Amounts in Thousands)

	Amounts
			(1)
	November 1,		November 3		May 3,
	2020		2019		2020*
Cash and Investments
Cash and cash equivalents	$	45,288	$	47,183	$	69,790
Short-term investments - Available for Sale		5,462		—		923
Short-term investments - Held-To-Maturity		5,005		—		4,271
Long-term investments - Held-To-Maturity		759		—		2,076
Total Cash and Investments	$	56,514	$	47,183	$	77,060
Debt
Line of credit - China operations	$	—	$	—	$	1,015
Paycheck Protection Program Loan		—		—		7,606
Line of credit - U.S. operations		—		—		29,750
Total debt	$	—	$	—	$	38,371
Net Cash Position	$	56,514	$	47,183	$	38,689

* Derived from audited financial statements.

Notes

(1) As of November 3, 2019, cash and cash equivalents totaled $47.2 million, of which $47.0 million and $228,000 were classified as (i) cash and cash equivalents and (ii) within current assets – discontinued operation, respectively, in the accompanying Consolidated Balance Sheets.

CULP Announces Results for Second Quarter Fiscal 2021

Page 10

December 3, 2020

CULP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED NOVEMBER 1, 2020, AND NOVEMBER 3, 2019

Unaudited

(Amounts in Thousands)

	SIX MONTHS ENDED
	Amounts
	November 1,			November 3,
	2020			2019
Cash flows from operating activities:
Net (loss) income	$	(349	)	$	3,366
Adjustments to reconcile net (loss) income to net cash provided by    operating activities:
Depreciation		3,538			3,893
Amortization		235			353
Stock-based compensation		474			467
Deferred income taxes		4,419			53
Gain on sale of property, plant, and equipment		—			(93	)
Realized loss on short-term investments available for sale		6			—
(Income) loss from investment in unconsolidated joint venture		(167	)		3
Foreign currency exchange loss (gain)		723			(106	)
Changes in assets and liabilities:
Accounts receivable		(7,663	)		(835	)
Inventories		602			(4,797	)
Other current assets		(1,175	)		(31	)
Other assets		(40	)		133
Accounts payable		14,156			3,564
Deferred revenue		(127	)		(24	)
Accrued expenses and deferred compensation		6,019			1,620
Accrued restructuring costs		—			(89	)
Income taxes		2,052			770
Net cash provided by operating activities		22,703			8,247
Cash flows from investing activities:
Capital expenditures		(2,041	)		(2,410	)
Proceeds from the sale of equipment		12			363
Investment in unconsolidated joint venture		(90	)		—
Proceeds from the sale of short-term investments (Held to Maturity)		1,800			5,000
Purchase of short-term and long-term investments (Held to Maturity)		(1,245	)		—
Purchase of short-term investments (Available for Sale)		(5,010	)		—
Proceeds from the sale of short-term investments (Available for Sale)		455			—
Proceeds from the sale of long-term investments (rabbi trust)		77			—
Purchase of long-term investments (rabbi trust)		(257	)		(479	)
Net cash (used in) provided by investing activities		(6,299	)		2,474
Cash flows from financing activities:
Payments associated with lines of credit		(30,772	)		—
Payments associated with Paycheck Protection Program Loan		(7,606	)		—
Proceeds from subordinated loan payable associated with the    noncontrolling interest of discontinued operation		—			250
Cash paid for acquisition of business		—			(1,532	)
Dividends paid		(2,583	)		(2,482	)
Common stock surrendered for withholding taxes payable		(25	)		(51	)
Capital contribution associated with the noncontrolling interest    of discontinued operation		—			360
Payments of debt issuance costs		(15	)		—
Net cash used in financing activities		(41,001	)		(3,455	)
Effect of exchange rate changes on cash and cash equivalents		95			(91	)
(Decrease) increase in cash and cash equivalents		(24,502	)		7,175
Cash and cash equivalents at beginning of year		69,790			40,008
Cash and cash equivalents at end of period (1)	$	45,288		$	47,183
Free Cash Flow (2)	$	20,499		$	5,630

Notes

(1) As of November 3, 2019, cash and cash equivalents totaled $47.2 million, of which $47.0 million and $228,000 were classified as (i) cash and cash equivalents and (ii) within current assets – discontinued operation, respectively, in the accompanying Consolidated Balance Sheets.

CULP Announces Results for Second Quarter Fiscal 2021

Page 11

December 3, 2020

CULP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED NOVEMBER 1, 2020, AND NOVEMBER 3, 2019

Unaudited

(Amounts in Thousands)

(2) Reconciliation of Free Cash Flow:

	FY 2021			FY 2020
A) Net cash provided by operating activities	$	22,703			8,247
B) Minus: Capital Expenditures		(2,041	)		(2,410	)
C) Plus: Proceeds from the sale of equipment		12			363
D) Minus: Investment in unconsolidated joint venture		(90	)		—
E) Plus: Proceeds from the sale of long-term investments (rabbi trust)		77			—
F) Minus: Purchase of long-term investments (rabbi trust)		(257	)		(479	)
G) Effects of exchange rate changes on cash and cash equivalents		95			(91	)
Free Cash Flow	$	20,499			5,630

CULP Announces Results for Second Quarter Fiscal 2021

Page 12

December 3, 2020

CULP, INC.

STATEMENTS OF OPERATIONS BY SEGMENT

FOR THE THREE MONTHS ENDED NOVEMBER 1, 2020, AND NOVEMBER 3, 2019

Unaudited

(Amounts in Thousands)

	THREE MONTHS ENDED
	Amounts									Percent of Total Sales
	November 1,			November 3,			% Over			November 1,			November 3,
Net Sales by Segment	2020			2019			(Under)			2020			2019
Mattress Fabrics	$	40,030			35,666			12.2	%		52.1	%		51.3	%
Upholstery Fabrics		36,821			33,884			8.7	%		47.9	%		48.7	%
Net Sales	$	76,851			69,550			10.5	%		100.0	%		100.0	%
Gross Profit from Continuing
Operations by Segment										Gross Profit Margin
Mattress Fabrics	$	7,584			6,247			21.4	%		18.9	%		17.5	%
Upholstery Fabrics		6,677			7,279			(8.3	)%		18.1	%		21.5	%
Gross Profit from Continuing   Operations	$	14,261			13,526			5.4	%		18.6	%		19.4	%
Selling, General and Administrative     Expenses by Segment										Percent of Sales
Mattress Fabrics	$	3,202			2,953			8.4	%		8.0	%		8.3	%
Upholstery Fabrics		3,390			3,806			(10.9	)%		9.2	%		11.2	%
Unallocated Corporate expenses		3,151			2,358			33.6	%		4.1	%		3.4	%
Selling, General and Administrative     Expenses	$	9,743			9,117			6.9	%		12.7	%		13.1	%
Income from continuing operations      by Segment										Operating Income Margin
Mattress Fabrics	$	4,382			3,294			33.0	%		10.9	%		9.2	%
Upholstery Fabrics		3,287			3,473			(5.4	)%		8.9	%		10.2	%
Unallocated corporate expenses		(3,151	)		(2,358	)		33.6	%		(4.1	)%		(3.4	)%
Income from Continuing    Operations	$	4,518			4,409			2.5	%		5.9	%		6.3	%
Depreciation Expense by Segment
Mattress Fabrics	$	1,501			1,701			(11.8	)%
Upholstery Fabrics		215			192			12.0	%
Discontinued Operation		-			95			(100.0	)%
Depreciation Expense	$	1,716			1,988			(13.7	)%

CULP Announces Results for Second Quarter Fiscal 2021

Page 13

December 3, 2020

CULP, INC.

STATEMENTS OF OPERATIONS BY SEGMENT

FOR THE SIX MONTHS ENDED NOVEMBER 1, 2020, AND NOVEMBER 3, 2019

Unaudited

(Amounts in Thousands)

	SIX MONTHS ENDED
	Amounts									Percent of Total Sales
	November 1,			November 3,			% Over			November 1,			November 3,
Net Sales by Segment	2020			2019			(Under)			2020			2019
Mattress Fabrics	$	76,133			74,525			2.2	%		53.9	%		53.1	%
Upholstery Fabrics		65,182			65,744			(0.9	)%		46.1	%		46.9	%
Net Sales	$	141,315			140,269			0.7	%		100.0	%		100.0	%
Gross Profit from Continuing    Operations by Segment										Gross Profit Margin
Mattress Fabrics	$	12,191			11,938			2.1	%		16.0	%		16.0	%
Upholstery Fabrics		11,971			14,000			(14.5	)%		18.4	%		21.3	%
Gross Profit from    Continuing Operations	$	24,162			25,938			(6.8	)%		17.1	%		18.5	%
Selling, General, and Administrative    Expenses by Segment										Percent of Total Sales
Mattress Fabrics	$	5,964			6,025			(1.0	)%		7.8	%		8.1	%
Upholstery Fabrics		6,570			7,652			(14.1	)%		10.1	%		11.6	%
Unallocated Corporate expenses		5,227			4,589			13.9	%		3.7	%		3.3	%
Selling, General, and   Administrative Expenses	$	17,761		$	18,266			(2.8	)%		12.6	%		13.0	%
(Loss) Income from Continuing										Operating (Loss)
Operations by Segment										Income Margin
Mattress Fabrics	$	6,227			5,913			5.3	%		8.2	%		7.9	%
Upholstery Fabrics		5,401			6,348			(14.9	)%		8.3	%		9.7	%
Unallocated corporate expenses		(5,227	)		(4,589	)		13.9	%		(3.7	)%		(3.3	)%
Subtotal	$	6,401			7,672			(16.6	)%		4.5	%		5.5	%
Restructuring credit		—			35			(100.0	)%		0.0	%		0.0	%
Income from continuing    operations	$	6,401			7,707			(16.9	)%		4.5	%		5.5	%
Depreciation Expense by Segment
Mattress Fabrics	$	3,132			3,321			(5.7	)%
Upholstery Fabrics		406			382			6.3	%
Discontinued Operation		—			190			(100.0	)%
Depreciation Expense	$	3,538			3,893			(9.1	)%

CULP Announces Results for Second Quarter Fiscal 2021

Page 14

December 3, 2020

CULP, INC.

RECONCILIATION OF SELECTED INCOME STATEMENT INFORMATION TO ADJUSTED RESULTS

FOR THE SIX MONTHS ENDED NOVEMBER 1, 2020, AND NOVEMBER 3, 2019

		SIX MONTHS ENDED (UNAUDITED)
		As Reported					November 1,				As Reported					November 3,
		November 1,					Adjusted				November 3,					Adjusted
		2020			Adjustments		Results				2019			Adjustments		Results
Income before income     taxes from continuing     operations	$		5,421			—		5,421		$		8,010			—		8,010
Income tax expense (1) (2)			(5,937	)		4,099		(1,838	)			(3,971	)		1,017		(2,954	)
Income (loss) from      investment in     unconsolidated     joint venture		167				—		167				(3	)		—		(3	)
Net (loss) income from    continuing operations	$		(349	)		4,099		3,750		$		4,036			1,017		5,053
Net (loss) income from    continuing operations    per share - basic		$	(0.03	)			$	0.31			$	0.33				$	0.41
Net (loss) income from   continuing operations   per share - diluted		$	(0.03	)			$	0.30			$	0.33				$	0.41
Average shares    outstanding-basic			12,293					12,293				12,403					12,403
Average shares    outstanding-diluted			12,293					12,305				12,413					12,413

Notes

(1) The $4.1 million adjustment represents a $7.6 million non-cash income tax charge to record a full valuation allowance against the company’s U.S. net deferred income tax assets, partially offset by a $3.5 million non-cash income tax benefit resulting from the re-establishment of certain U.S. Federal net operating loss carryforwards in connection with U.S. Treasury regulations enacted during our first quarter regarding Global Intangible Low Taxed Income (“GILTI”) tax provisions of the Tax Cuts and Jobs Act of 2017.

(2) The $1.0 million adjustment represents our estimated GILTI tax incurred through our second quarter of fiscal 2020.

CULP Announces Results for Second Quarter Fiscal 2021

Page 15

December 3, 2020

CULP, INC.

CONSOLIDATED STATEMENTS OF ADJUSTED EBITDA

FOR THE TWELVE MONTHS ENDED NOVEMBER 1, 2020, AND NOVEMBER 3, 2019

Unaudited

(Amounts in Thousands)

	Quarter Ended			Quarter Ended			Quarter Ended			Quarter Ended			Trailing 12 Months
	February 2,			May 3,			August 2,			November 1,			November 1,
	2020			2020			2020			2020			2020
Net (loss) income	$	(4,207	)	$	(27,825	)	$	(2,733	)	$	2,384		$	(32,381	)
Loss before income taxes     from discontinued     operation		7,824			8,698			-			-			16,522
Income tax (benefit) expense     from continuing operations		(973	)		704			4,324			1,613			5,668
Interest income, net		(258	)		(37	)		(7	)		(59	)		(361	)
Asset impairments from     continuing operations		—			13,712			—			—			13,712
Restructuring credit and     related charges		(35	)		—			—			—			(35	)
Depreciation expense -    continuing operations		1,891			1,882			1,822			1,716			7,311
Amortization expense -    continuing operations		102			117			118			117			454
Stock based compensation		364			(199	)		126			348			639
Adjusted EBITDA	$	4,708		$	(2,948	)	$	3,650		$	6,119		$	11,529
% Net Sales		6.9	%		(6.2	)%		5.7	%		8.0	%		4.5	%
	Quarter Ended			Quarter Ended			Quarter Ended			Quarter Ended			Trailing 12 Months
	January 27			April 28,			August 4,			November 3,			November 3,
	2019			2019			2019			2019			2019
Net income (loss)	$	3,060		$	(1,511	)	$	1,174		$	2,192		$	4,915
Loss before income taxes    from discontinued    operation		313			477			621			441			1,852
Income tax expense from    continuing operations		1,274			3,091			1,692			2,279			8,336
Interest income, net		(259	)		(221	)		(260	)		(237	)		(977	)
Restructuring credit and    related charges		340			—			(35	)		—			305
Other non-recurring charges		429			500			—			—			929
Depreciation expense -     continuing  operations		1,934			1,933			1,810			1,893			7,570
Amortization expense -    continuing operations		126			113			101			102			442
Stock based compensation		479			(243	)		154			313			703
Adjusted EBITDA	$	7,696		$	4,139		$	5,257		$	6,983		$	24,075
% Net Sales		10.5	%		6.2	%		7.4	%		10.0	%		8.6	%
% Over (Under)		(38.8	)%		(171.2	)%		(30.6	)%		(12.4	)%		(52.1	)%

-END-

XML

Document and Entity Information	Dec. 03, 2020
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Dec. 03, 2020
Entity Registrant Name	CULP INC
Entity Central Index Key	0000723603
Entity Incorporation, State or Country Code	NC
Entity File Number	1-12597
Entity Tax Identification Number	56-1001967
Entity Address, Address Line One	1823 Eastchester Drive
Entity Address, City or Town	High Point
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	27265
City Area Code	336
Local Phone Number	889-5161
Written Communications	false
Soliciting Material	false
Pre commencement Tender Offer	false
Pre commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common stock, par value $0.05 per share
Trading Symbol	CULP
Security Exchange Name	NYSE