Company: CULP
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0000950170-25-035191
Chunk: 27

Company: CULP INC
Filing Date: 2025-03-07
Form: 10-Q
Item: Item 1
Chunk 27
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 (Loss) income from operations by segment:

        Mattress fabrics
         
        $
        (5,018
        )
         
        $
        (3,916
        )

        Upholstery fabrics

        3,005

        4,811

        Unallocated corporate expenses

        (6,299
        )

        (7,484
        )

        Total segment loss from operations
         
        $
        (8,312
        )
         
        $
        (6,589
        )

             Restructuring related charge (1) (2)

        (1,509
        )

        (40
        )

             Restructuring expense (3) (4)

        (6,317
        )

        (432
        )

        Loss from operations
         
        $
        (16,138
        )
         
        $
        (7,061
        )

              Interest expense

        (121
        )

        —

        Interest income

        761

        911

        Other expense

        (898
        )

        (560
        )

        Loss before income taxes
         
        $
        (16,396
        )
         
        $
        (6,710
        )
       
       (1) During the nine months ended January 26, 2025, gross profit includes restructuring related charges totaling $1.5 million for losses on the disposal and valuation of inventory related to the gradual discontinuation of operations at our manufacturing facility located in Quebec, Canada. (2) During the nine months ending January 28, 2024, gross profit includes a restructuring related charge of $40,000, which represents markdowns of inventory related to the discontinuation of production of cut and sewn upholstery kits at the company's facility located in Ouanaminthe, Haiti.  3) During the nine months ending January 26, 2025, restructuring expense of $6.3 million mostly relates to the mattress fabrics segment. The $6.3 million restructuring expense represents (i) $2.7 million for the consolidation of our mattress fabrics operations located in Quebec, Canada into our facility located in Stokesdale, North Carolina, (ii) $1.5 million for impairment of and accelerated depreciation related to property, plant, and equipment, (iii) $1.4 million for employee termination benefits, and (iv) $849,000 for lease termination costs, partially