Company: CULP
Filing Date: 2025-09-10
Form Type: 8-K
Source: 0000950170-25-113998
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Company: CULP INC
Filing Date: 2025-09-10
Form: 8-K
Item: Item 2.02
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Item 2.02 Results of Operations and Financial Condition.

On September 10, 2025, we issued a news release to announce our financial results for our first quarter ended August 3, 2025. A copy of the news release is attached hereto as Exhibit 99.1.

The information set forth in this Item 2.02 of this Current Report, and in Exhibit 99.1, 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 (the "Exchange Act"), 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.

The news release contains adjusted income statement information for the three month periods ended August 3, 2025 and July 28, 2024, which discloses adjusted income (loss) from operations, a non-U. S. GAAP performance measure that eliminates items which are not expected to occur on a recurring or regular basis. For the three month period ended August 3, 2025, this item includes restructuring credits, restructuring-related charges, and restructuring expenses associated with the sale of our former mattress fabrics manufacturing facility in Quebec, Canada, segment integration initiatives including the transition of operations within our upholstery segment from leased locations to our owned facility in Stokesdale, North Carolina, and similar items. The company has included this adjusted information in order to show operational performance excluding the effects of items not expected to occur on a recurring or regular basis. Details of these calculations and a reconciliation to information from our U. S. 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. Management uses adjusted income statement information in evaluating the financial performance of our overall operations and business segments. Also, adjusted income statement information is used as a performance measure in our incentive-based executive compensation program. We note, however, that this Adjusted income statement information should not be viewed in isolation or as a substitute for income (loss) from operations calculated in accordance with U. S. GAAP.

The news release contains disclosures about our net debt, which is a non-U. S. GAAP liquidity measure that we define as cash and cash equivalents (which we sometimes refer to as “cash”) plus investments that are