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Segment Information (Tables)
 6 Months Ended
Nov. 03, 2019
Segment Reporting [Abstract]  
Schedule of Operating Segments Information
Financial information for the company’s operating segments follows:
 
   Three months ended 
   November 3, 2019   October 28, 2018 
Net sales:
          
Mattress Fabrics
  $35,459   $37,205 
Upholstery Fabrics
   33,884    35,017 
Home Accessories
   3,276    4,784 
   
 
 
   
 
 
 
   $72,619   $77,006 
   
 
 
   
 
 
 
Gross profit:
          
Mattress Fabrics
  $6,247   $5,781 
Upholstery Fabrics
   7,279    6,257 
Home Accessories
   577    1,717 
   
 
 
   
 
 
 
Total segment gross profit
  $14,103   $13,755 
Other
non-recurring
charges (1)
   —      (159) 
Restructuring related charges (2)
   —      (270) 
   
 
 
   
 
 
 
   $14,103   $13,326 
   
 
 
   
 
 
 
Selling, general, and administrative expenses
          
Mattress Fabrics
  $2,953   $2,872 
Upholstery Fabrics
   3,806    3,535 
Home Accessories
   928    1,694 
Unallocated corporate expenses
   2,433    1,913 
   
 
 
   
 
 
 
Total segment selling, general, and administrative expenses
  $10,120   $10,014 
Other
non-recurring
charges (1)
   —      89 
   
 
 
   
 
 
 
   $10,120   $10,103 
   
 
 
   
 
 
 
Income (loss) from operations:
          
Mattress Fabrics
  $3,293   $2,909 
Upholstery Fabrics
   3,473    2,722 
Home 
Accessories
   (350)    23 
Unallocated corporate expenses
   (2,433)    (1,913) 
   
 
 
   
 
 
 
Total segment income from operations
   3,983    3,741 
Other
non-recurring
charges (1)
   —      (248) 
Restructuring credit and restructuring related charges (3)
   —      791 
   
 
 
   
 
 
 
Total income from operations
   3,983    4,284 
Interest expense
   (30)    (18) 
Interest income
   240    151 
Other expense
   (87)    (142) 
   
 
 
   
 
 
 
Income before income taxes
  $4,106   $4,275 
   
 
 
   
 
 
 
 
(1)
During the three-months ended October 28, 2018, we incurred
non-recurring
charges totaling $
248
for employee termination benefits and other operational reorganization costs associated with our mattress fabric operations. Of the $
248
total
non-recurring
charge, $
159
and $
89
were recorded to cost of sales and selling, general administrative expenses, respectively.
(2)
The $
270
represents a restructuring related charge for other operating costs associated with our closed upholstery fabrics facility located in Anderson, SC.
(3)
The $
791
pertains to a $
1.1
 million restructuring credit that represents a $
1.1
 million gain on the sale of equipment, partially offset by a restructuring charge of $
63
for employee termination benefits, and a restructuring related charge of $
270
for other operating costs associated with our closed upholstery fabrics plant facility located in Anderson, SC.
 
   Six months ended 
   November 3, 2019   October 28, 2018 
Net sales:
          
Mattress Fabrics
  $74,145   $71,603 
Upholstery Fabrics
   65,744    69,507 
Home Accessories
   7,577    7,369 
   
 
 
   
 
 
 
   $147,466   $148,479 
   
 
 
   
 
 
 
Gross profit:
          
Mattress Fabrics
  $11,940   $11,084 
Upholstery Fabrics
   14,000    12,410 
Home Accessories
   1,528    2,385 
   
 
 
   
 
 
 
Total segment gross profit
  $27,468   $25,879 
Other
non-recurring
charges (4)
   —      (159) 
Restructuring related charges (5)
   —      (1,835) 
   
 
 
   
 
 
 
   $27,468   $23,885 
   
 
 
   
 
 
 
Selling, general, and administrative expenses
          
Mattress Fabrics
  $6,024   $5,384 
Upholstery Fabrics
   7,652    7,161 
Home Accessories
   2,416    2,330 
Unallocated corporate expenses
   4,739    3,172 
   
 
 
   
 
 
 
Total segment selling, general, and administrative expenses
  $20,831   $18,047 
Other
non-recurring
charges (4)
   —      89 
   
 
 
   
 
 
 
   $20,831   $18,136 
   
 
 
   
 
 
 
Income (loss) from operations:
          
Mattress Fabrics
  $5,916   $5,699 
Upholstery Fabrics
   6,348    5,249 
Home 
Accessories
   (888)    56 
Unallocated corporate expenses
   (4,739)    (3,172) 
   
 
 
   
 
 
 
Total segment income from operations
   6,637    7,832 
Other
non-recurring
charges (4)
   —      (248) 
Restructuring credit and restructuring related charges (6)
   35    (1,225) 
   
 
 
   
 
 
 
Total income from operations
   6,672    6,359 
Interest expense
   (39)    (38) 
Interest income
   490    301 
Other expense
   (174)    (399) 
   
 
 
   
 
 
 
Income before income taxes
  $6,949   $6,223 
   
 
 
   
 
 
 
 
(4)
During the
six-months
ended October 28, 2018, we incurred
non-recurring
charges totaling $
248
for employee termination benefits and other operational reorganization costs associated with our mattress fabric operations. Of the $
248
total
non-recurring
charge, $
159
and $
89
were recorded to cost of sales and selling, general administrative expenses, respectively.
(5)
The $
1.8
 million represents restructuring related charges of $
1.6
 million for inventory markdowns and $
270
for other operating costs associated with our closed upholstery fabrics facility located in Anderson, SC.
 
(6)
The $35 credit pertains to employee termination benefits
associated with our closed upholstery fabrics facility located in Anderson, SC that
was recorded to restructuring credit. 
The $
1.2
 million pertains to restructuring related charges totaling $
1.8
 million, partially offset by a restructuring credit of $
610
associated with our closed upholstery fabrics facility located in Anderson, SC. The $
1.8
 million restructuring related charge represents $
1.6
million for inventory markdowns and $
270
for other operating costs. The $
610
restructuring credit represents a $
1.1
 million gain on sale of equipment, partially offset by a charge for employee termination benefits totaling $
513
.
Balance sheet information for the company’s operating segments follows:
 
(dollars in thousands)
  November 3, 2019   October 28, 2018   April 28, 2019 
Segment assets:
               
Mattress Fabrics
               
Accounts receivable
  $11,224   $10,322   $12,098 
Inventory
   27,751    27,340    24,649 
Assets held for sale
   150    —      —   
Property, plant and equipment (1)
   42,899    46,743    44,266 
Right of use assets (2)
   170    —      —   
Investment in unconsolidated joint venture
   1,504    1,470    1,508 
   
 
 
   
 
 
   
 
 
 
Total mattress fabrics assets
   83,698    85,875    82,521 
   
 
 
   
 
 
   
 
 
 
Upholstery Fabrics
               
Accounts receivable
   12,666    13,622    11,274 
Inventory
   23,692    20,765    22,915 
Property, plant and equipment (3)
   1,774    2,048    1,795 
Right of use assets (4)
   2,610    —      —   
   
 
 
   
 
 
   
 
 
 
Total upholstery fabrics assets
   40,742    36,435    35,984 
   
 
 
   
 
 
   
 
 
 
Home Accessories
               
Accounts receivable
   632    418    379 
Inventory
   3,785    2,496    3,296 
Property, plant and equipment (5)
   1,752    2,082    1,910 
Right of use assets (6)
   996    —      —   
   
 
 
   
 
 
   
 
 
 
Total home accessories assets
   7,165    4,996    5,585 
   
 
 
   
 
 
   
 
 
 
Total segment assets
   131,605    127,306    124,090 
Non-segment
assets:
               
Cash and cash equivalents
   47,183    14,768    40,008 
Short-term investments
(Held-to-Maturity)
   —      26,719    5,001 
Assets held for sale
   —      237    —   
Current income taxes receivable
   776    —      776 
Other current assets
   2,710    2,461    2,849 
Deferred income taxes
   511    3,614    457 
Property, plant and equipment (7)
   548    452    418 
Right of use assets (8)
   2,103    —      —   
Goodwill
   27,222    27,222    27,222 
Intangible assets
   10,260    10,636    10,448 
Long-term investments (Rabbi Trust)
   7,575    7,851    7,081 
Noncurrent income taxes receivable
   733    —      733 
Other assets
   496    945    643 
   
 
 
   
 
 
   
 
 
 
Total assets
  $231,722   $222,211   $219,726 
   
 
 
   
 
 
   
 
 
 
 
   Six months ended 
(dollars in thousands)
  November 3, 2019   October 28, 2018 
Capital expenditures (9):
          
Mattress Fabrics
  $2,212   $1,545 
Upholstery Fabrics
   229    267 
Home Accessories
   33    33 
Unallocated Corporate
   266    —   
   
 
 
   
 
 
 
Total capital expenditures
  $2,740   $1,845 
   
 
 
   
 
 
 
Depreciation expense:
          
Mattress Fabrics
  $3,321   $3,514 
Upholstery Fabrics
   382    412 
Home Accessories
   190    130 
   
 
 
   
 
 
 
Total depreciation expense
  $3,893   $4,056 
   
 
 
   
 
 
 
 
(1)
The $
42.9
 million at November 3, 2019, represents property, plant, and equipment of $
30.5
 million and $12.4 million located in the U.S. and Canada, respectively. The $46.7 million at October 28, 2018, represents property, plant, and equipment of $34.0 million and $12.7 million located in the U.S. and Canada, respectively. The $44.3 million at April 28, 2019, represents property, plant, and equipment of $32.4 million and $11.9 million located in the U.S. and Canada, respectively.
(2)
The $170 at November 3, 2019, represents right of use assets located in the U.S.
(3)
The $1.8 million at November 3, 2019, represents property, plant, and equipment of $1.3 million and $500 located in the U.S. and China, respectively. The $2.0 million at October 28, 2018, represents property, plant, and equipment of $1.4 million and $636 located in the U.S. and China, respectively. The $1.8 million at April 28, 2019, represents property, plant, and equipment of $1.2 million and $591 located in the U.S. and China, respectively.
(4)
The $2.6 million at November 3, 2019, represents right of use assets of $1.5 million and $1.1 million located in China and the U.S., respectively
(5)
The $1.8 million at November 3, 2019, $2.1 million at October 28, 2018, and $1.9 million at April 28, 2019, represents property, plant and equipment located in the U.S.
(6)
The $1.0 million at November 3, 2019, represents right of use assets located in the U.S.
(7)
The $548, $452, and $418 at November 3, 2019, October 28, 2018, and April 28, 2019, respectively, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by our mattress fabrics, upholstery fabrics, and home accessories segments. Property, plant, and equipment associated with our corporate departments reside in the U.S.
(8)
The $2.1 million at November 3, 2019, represents right of use assets located in the U.S.
(9)
Capital expenditure amounts are stated on the accrual basis. See Consolidated Statements of Cash Flows for capital expenditure amounts on a cash basis.