| --- | --- | --- | --- | |----------------------|-------|-------|-------| | | | | | | | | | | | CULP, INC. | | | | | | | | | | Investor Information | | | | | March 2, 2022 | | | | 1 CULP FORWARD LOOKING STATEMENTS This presentation 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 inh ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 30, 2022 Commission File No. 1-12597 CULP, INC. (Exact name of registrant as specified in its charter) NORTH CAROLINA 56-1001967 (State or other jurisdiction of incorporation or other organization) (I.R.S. Employer Identification No.) 1823 Eastchester Drive High Point, North Carolina 27265-1402 (Addres ...

CULP 1 | --- | --- | |-------------------------------|-------| | | | | CULP, INC. | | | NYSE: CULP | | | Third Quarter Fiscal 2022 | | | Summary Financial Information | | | March 2, 2022 | | THIRD QUARTER FISCAL 2022 FINANCIAL SUMMARY Net sales were $80.3 million, up 1.2 percent over the prior-year period, with mattress fabrics sales down 0.4 percent and upholstery fabrics sales up 2.7 percent compared with the third quarter of last year. Income from operations (operating income) was near expectations at $1 ...

Culp, Inc. (NYSE:CULP) Q3 2022 Earnings Conference Call March 3, 2022 11:00 AM ET Company Participants Dru Anderson - Investor Relations Iv Culp - President and Chief Executive Officer Ken Bowling - Chief Financial Officer Boyd Chumbley - President, Upholstery Fabrics Conference Call Participants Budd Bugatch - Water Tower Research Anthony Lebiedzinski - Sidoti & Company Marco Rodriguez - Stonegate Capital Markets Operator Good morning and welcome to Culp, Inc. Third Quarter 2022 Earnings Conference Call. [ ...

| --- | --- | --- | --- | |----------------------|-------|-------|-------| | | | | | | | | | | | CULP, INC. | | | | | | | | | | Investor Information | | | | | December 8, 2021 | | | | 1 CULP FORWARD LOOKING STATEMENTS This presentation 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 ...

Part I - Financial Information Presents Culp, Inc.'s comprehensive financial data, including statements, management analysis, market risks, and controls [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents Culp, Inc.'s unaudited consolidated financial statements, including income, balance, and cash flow statements, for specified periods [Consolidated Statements of Net Income (Loss)](index=4&type=section&id=Consolidated%20Statements%20of%20Net%20Income%20%28Loss%29) Details the company's net sales, gross profit, operating income, and net income (loss) for the specified periods Consolidated Statements of Net Income (Loss) (Unaudited, in Thousands) | Metric | Three Months Ended Oct 31, 2021 | Three Months Ended Nov 1, 2020 | Six Months Ended Oct 31, 2021 | Six Months Ended Nov 1, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $74,561 | $76,851 | $157,608 | $141,315 | | **Gross profit** | $10,727 | $14,261 | $23,226 | $24,162 | | **Income from operations** | $1,640 | $4,518 | $4,958 | $6,401 | | **Net income (loss)** | $851 | $2,384 | $3,101 | $(349) | | **Net income (loss) per share - diluted** | $0.07 | $0.19 | $0.25 | $(0.03) | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Provides a snapshot of the company's assets, liabilities, and shareholders' equity at specific fiscal dates Consolidated Balance Sheet Highlights (Unaudited, in Thousands) | Metric | Oct 31, 2021 | Nov 1, 2020 | May 2, 2021 | | :--- | :--- | :--- | :--- | | **Cash and cash equivalents** | $16,956 | $45,288 | $37,009 | | **Inventories** | $63,781 | $47,726 | $55,917 | | **Total current assets** | $128,750 | $139,950 | $143,207 | | **Total assets** | $209,325 | $202,776 | $214,080 | | **Total current liabilities** | $55,923 | $54,103 | $61,232 | | **Total liabilities** | $80,871 | $75,525 | $85,074 | | **Total shareholders' equity** | $128,454 | $127,251 | $129,006 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash flows from operating, investing, and financing activities, showing changes in cash and equivalents Consolidated Cash Flow Highlights (Unaudited, in Thousands) | Metric | Six Months Ended Oct 31, 2021 | Six Months Ended Nov 1, 2020 | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | $(1,328) | $22,703 | | **Net cash used in investing activities** | $(14,222) | $(6,299) | | **Net cash used in financing activities** | $(4,501) | $(41,001) | | **Decrease in cash and cash equivalents** | $(20,053) | $(24,502) | | **Cash and cash equivalents at end of period** | $16,956 | $45,288 | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Offers detailed explanations of accounting policies, business combinations, revenue recognition, and other financial statement context * Effective February 1, 2021, the company acquired the remaining 50% ownership interest in Class International Holdings, Ltd. (CIH) for a total consideration of **$2.7 million**, including **$1.7 million** fair value of previously held interest, resulting in a bargain purchase gain of **$819,000**[33](index=33&type=chunk)[35](index=35&type=chunk)[38](index=38&type=chunk) Disaggregated Revenue by Segment (Six Months Ended Oct 31, 2021, in Thousands) | Segment | Products transferred at a point in time | Services transferred over time | Total Net Sales | | :--- | :--- | :--- | :--- | | **Mattress Fabrics** | $83,941 | $— | $83,941 | | **Upholstery Fabrics** | $69,705 | $3,962 | $73,667 | | **Total** | $153,646 | $3,962 | $157,608 | * The effective income tax rate for the six months ended October 31, 2021, was **30.3%**, a significant change from **109.5%** in the prior year, primarily due to a different mix of earnings and the non-recurrence of a valuation allowance charge[118](index=118&type=chunk)[120](index=120&type=chunk) * During the first half of fiscal 2022, the company repurchased **121,688 shares** of common stock for **$1.8 million**, with **$3.2 million** remaining available for future repurchases as of October 31, 2021[191](index=191&type=chunk) * Dividend payments totaled **$2.7 million** in the first half of fiscal 2022, representing quarterly payments of **$0.11 per share**, with the board approving a **$0.115 per share** dividend on December 1, 2021[193](index=193&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=47&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, sales trends, profitability impacts, and liquidity for the second quarter and first half of fiscal 2022 [Results of Continuing Operations](index=49&type=section&id=Results%20of%20Continuing%20Operations) Analyzes the company's net sales, gross profit, and net income performance for Q2 and H1 FY2022 compared to prior periods Q2 FY2022 vs Q2 FY2021 Performance (in Thousands) | Metric | Q2 FY2022 | Q2 FY2021 | % Change | | :--- | :--- | :--- | :--- | | **Net sales** | $74,561 | $76,851 | (3.0)% | | **Gross profit** | $10,727 | $14,261 | (24.8)% | | **Income from operations** | $1,640 | $4,518 | (63.7)% | | **Net income** | $851 | $2,384 | (64.3)% | H1 FY2022 vs H1 FY2021 Performance (in Thousands) | Metric | H1 FY2022 | H1 FY2021 | % Change | | :--- | :--- | :--- | :--- | | **Net sales** | $157,608 | $141,315 | 11.5% | | **Gross profit** | $23,226 | $24,162 | (3.9)% | | **Income from operations** | $4,958 | $6,401 | (22.5)% | | **Net income (loss)** | $3,101 | $(349) | N.M. | * Operating performance in Q2 FY2022 was materially affected by lower sales, higher freight, raw material, and labor costs, unfavorable foreign exchange rates, and start-up costs for the new Haiti facility[212](index=212&type=chunk) [Segment Analysis](index=53&type=section&id=Segment%20Analysis) Examines the performance of Mattress Fabrics and Upholstery Fabrics segments, highlighting sales drivers and profitability changes Mattress Fabrics Segment Performance - Q2 (in Thousands) | Metric | Q2 FY2022 | Q2 FY2021 | % Change | | :--- | :--- | :--- | :--- | | **Net sales** | $40,883 | $40,030 | 2.1% | | **Income from operations** | $3,139 | $4,382 | (28.4)% | | **Operating margin** | 7.7% | 10.9% | (320)bp | * Upholstery fabrics sales in Q2 were primarily driven down by lower residential business sales due to COVID-19-related shutdowns of sourcing partners and customers in Vietnam[256](index=256&type=chunk) Upholstery Fabrics Segment Performance - Q2 (in Thousands) | Metric | Q2 FY2022 | Q2 FY2021 | % Change | | :--- | :--- | :--- | :--- | | **Net sales** | $33,678 | $36,821 | (8.5)% | | **Income from operations** | $1,028 | $3,287 | (68.7)% | | **Operating margin** | 3.1% | 8.9% | (580)bp | [Liquidity and Capital Resources](index=70&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses the company's cash position, operating cash flow, capital expenditures, and debt status * Cash and investments totaled **$36.6 million** as of October 31, 2021, a decrease from **$46.9 million** as of May 2, 2021[217](index=217&type=chunk)[310](index=310&type=chunk) * Net cash used in operating activities was **$1.3 million** for H1 FY2022, a reversal from **$22.7 million** provided in H1 FY2021, primarily due to increased inventory and decreased accounts payable[219](index=219&type=chunk)[312](index=312&type=chunk) * Projected capital expenditures for fiscal 2022 are expected to be between **$10.3 million** and **$10.7 million**, primarily for the mattress fabrics segment[338](index=338&type=chunk) * As of October 31, 2021, there were no outstanding borrowings under any of the company's revolving credit agreements[222](index=222&type=chunk)[332](index=332&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=77&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Identifies exposure to interest rate and foreign currency risks, and strategies for mitigation * The company is exposed to interest rate risk through its U.S. revolving credit agreement, based on a variable spread over LIBOR, but had no outstanding borrowings as of October 31, 2021[346](index=346&type=chunk) * Foreign currency market risk arises from operations in Canada and China, which the company attempts to mitigate by maintaining a natural hedge through balancing local currency assets and liabilities[347](index=347&type=chunk) [Controls and Procedures](index=77&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms the effectiveness of disclosure controls and procedures, with no material changes to internal controls * Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of October 31, 2021[348](index=348&type=chunk) * No material changes in internal control over financial reporting occurred during the quarter ended October 31, 2021[349](index=349&type=chunk) Part II - Other Information Covers legal proceedings, risk factors, equity security sales, and required exhibits [Legal Proceedings](index=78&type=section&id=Item%201.%20Legal%20Proceedings) Reports no material changes to the company's legal proceedings during the three months ended October 31, 2021 * No material changes to legal proceedings were reported for the quarter ended October 31, 2021[351](index=351&type=chunk) [Risk Factors](index=78&type=section&id=Item%201A.%20Risk%20Factors) States no material changes to the company's identified risk factors during the three months ended October 31, 2021 * No material changes to risk factors were reported for the quarter ended October 31, 2021[352](index=352&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=78&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details common stock repurchases during Q2 FY2022 and remaining authorization under the repurchase program Issuer Purchases of Equity Securities (Q2 FY2022) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Aug 2 - Sep 5, 2021 | 62,908 | $14.15 | | Sep 6 - Oct 3, 2021 | 10,094 | $13.69 | | Oct 4 - Oct 31, 2021 | — | — | | **Total** | **73,002** | **$14.09** | * As of October 31, 2021, approximately **$3,248,094** remained available for future share repurchases under the company's authorized program[354](index=354&type=chunk) [Exhibits](index=79&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed as part of the Form 10-Q report, including certifications and XBRL data files

Financial Performance - Q2 Fiscal 2022 - Net sales decreased by 30 percent to $746 million compared to the prior-year period[1] - Operating income decreased by 637 percent to $16 million from $45 million in the prior-year period[2,9] - Net income decreased by 643 percent to $851000 or $007 per diluted share compared to $24 million or $019 per diluted share in the prior-year period[2,9] Segment Performance - Q2 Fiscal 2022 - Mattress fabrics sales increased by 21 percent to $409 million compared to the second quarter of last year[1,15] - Upholstery fabrics sales decreased by 85 percent to $337 million compared with the second quarter of last year[1,19] - Mattress fabrics operating income decreased by 284 percent to $31 million[15] - Upholstery fabrics operating income decreased by 687 percent to $10 million[13,19] Dividend and Share Repurchase - The company announced a 5 percent increase in its quarterly cash dividend to 115 cents per share[3] - The annual indicated dividend is 46 cents per share with a yield of 434 percent based on the November 30 2021 closing stock price of $1061 per share[3] - The company repurchased 73002 shares of Culp common stock during the second quarter of fiscal 2022 leaving approximately $32 million available under the company's share repurchase program[3] Outlook - The company withdrew its previously issued annual guidance for fiscal 2022 due to the uncertain inflationary environment customer supply chain disruptions and the Omicron variant[6] - Net sales and consolidated operating income for the third quarter of fiscal 2022 are expected to be sequentially comparable to the second quarter of fiscal 2022[7] - The company expects a strong improvement in net sales and operating income for the fourth quarter of fiscal 2022 as compared to both the third quarter of fiscal 2022 and the fourth quarter of fiscal 2021[7]

Culp, Inc. (NYSE:CULP) Q2 2022 Earnings Conference Call December 2, 2021 11:00 AM ET Company Participants Dru Anderson – Investor Relations Iv Culp – President and Chief Executive Officer Ken Bowling – Chief Financial Officer Boyd Chumbley – President of our Upholstery Fabrics business Conference Call Participants Anthony Lebiedzinski – Sidoti and Company Budd Bugatch – Water Tower Research Marco Rodriguez – Stone Capital Markets Operator Good day, and welcome to the Culp Incorporated Second Quarter 2022 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Name of Each Exchange Title of Each Class Trading Symbol(s) On Which Registered Common Stock, par value $.05/ Share CULP New York Stock Exchange Large accelerated filer ☐ Accelerated filer ☒ Non-accelerated filer ☐ Smaller Reporting Company ☐ Emerging Growth Company ☐ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 1, 2021 Commission File No. 1-12597 ...

CULP | --- | --- | |--------------------------------------------------------------------|-------| | | | | CULP, INC. | | | NYSE: CULP First Quarter Fiscal 2022 Summary Financial Information | | September 1, 2021 FIRST QUARTER FISCAL 2022 FINANCIAL SUMMARY Net sales were $83.0 million, up 28.8 percent over the pandemic-impacted prior-year period, with mattress fabrics sales up 19.3 percent and upholstery fabrics sales up 41.0 percent compared with the first quarter of last year. Income from operations (opera ...