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Segment Information (Tables)

12 Months Ended

Apr. 28, 2024

Summary of Segment Information by Geographic Area

International sales accounted for 32%, 29%, and 31% of net sales during fiscal 2024, 2023, and 2022, respectively, and are summarized by geographic area as follows:


(dollars in thousands)	2024		2023		2022
north america (excluding USA) (1)	$	29,357	$	29,756	$	39,256
far east and asia (2)		36,334		31,339		43,015
all other areas		6,011		8,032		8,114
	$	71,702	$	69,127	$	90,385

(1)

Of this amount, $25.1 million, $24.9 million, and $33.5 million are attributable to shipments to Mexico in fiscal 2024, 2023, and 2022, respectively.

(2)

Of this amount $18.3 million, $20.0 million, and $26.9 million are attributable to shipments to China in fiscal 2024, 2023, and 2022, respectively.

Schedule of Business Segments Information

Statements of operations for our business segments are as follows:


(dollars in thousands)	2024			2023			2022
net sales by segment:
mattress fabrics	$	116,370		$	110,995		$	152,159
upholstery fabrics		108,963			123,939			142,680
net sales	$	225,333		$	234,934		$	294,839
gross profit (loss):
mattress fabrics	$	6,289		$	(6,739	)	$	16,458
upholstery fabrics		21,690			17,733			19,635
total segment gross profit		27,979			10,994			36,093
restructuring related charge (1) (3)		(40	)		(98	)		—
gross profit	$	27,939		$	10,896		$	36,093
selling, general, and administrative expenses by segment:
mattress fabrics	$	13,134		$	11,942		$	12,246
upholstery fabrics		15,903			15,739			14,009
unallocated corporate		9,574			10,297			9,160
selling, general, and administrative expenses	$	38,611		$	37,978		$	35,415
(loss) income from operations by segment:
mattress fabrics	$	(6,845	)	$	(18,681	)	$	4,212
upholstery fabrics		5,787			1,994			5,626
unallocated corporate expenses		(9,574	)		(10,297	)		(9,160	)
total segment (loss) income from operations		(10,632	)		(26,984	)		678
restructuring related charge (1) (3)		(40	)		(98	)		—
restructuring expense (2) (4)		(636	)		(1,396	)		—
loss from operations	$	(11,308	)	$	(28,478	)	$	678
interest expense		(11	)		—			(17	)
interest income		1,174			531			373
other expense		(625	)		(443	)		(1,359	)
loss before income taxes	$	(10,770	)	$	(28,390	)	$	(325	)

(1)

Cost of sales for fiscal 2024 includes a restructuring related charge totaling $40,000, which pertained to markdowns of inventory related to the discontinuation of production of cut and sewn upholstery kits at the company's facility in Ouanaminthe, Haiti.

(2)

Restructuring expense of $636,000 for fiscal 2024 represents impairment charges related to equipment of $329,000 and employee termination benefits of $103,000 related to the discontinuation of production of cut and sewn upholstery kits at the company's facility in Ouanaminthe, Haiti. In addition, during the fourth quarter of fiscal 2024, restructuring expense of $204,000 was incurred for employee termination benefits related to the closure of the upholstery fabrics finishing operation located in Shanghai, China.

(3)

Cost of sales for fiscal 2023 includes a restructuring related charge totaling $98,000, which pertained to a loss on disposal and markdowns of inventory related to the exit of our cut and sew upholstery fabrics operations located in Shanghai, China.

(4)

Restructuring expense of $1.4 million for fiscal 2023 relates to both our restructuring activities for our cut and sew upholstery fabrics operations located in Shanghai, China, which occurred during the second quarter of fiscal 2023, and located in Ouanaminthe, Haiti, which occurred during the third and fourth quarters of fiscal 2023. Restructuring expense represents employee termination benefits of $507,000, lease termination costs of $481,000, impairment losses totaling $357,000 that relate to leasehold improvements and equipment, and $51,000 for other associated costs.

Balance sheet information for our business segments follow:


(dollars in thousands)	April 28, 2024			April 30, 2023
segment assets
mattress fabrics
accounts receivable	$	10,003		$	12,396
inventory		27,671			25,674
property, plant, and equipment		31,472	(1)		33,749	(2)
right of use assets		1,627	(3)		2,308	(4)
total mattress fabrics assets		70,773			74,127

upholstery fabrics
accounts receivable		11,135			12,382
inventory		17,172			19,406
property, plant, and equipment		1,125	(5)		1,671	(6)
right of use assets		1,952	(7)		2,618	(8)
total upholstery fabrics assets		31,384			36,077
total segment assets		102,157			110,204

non-segment assets
cash and cash equivalents		10,012			20,964
short-term investments – rabbi trust		903			1,404
short-term note receivable		264			219
current income taxes receivable		350			—
other current assets		3,371			3,071
long-term note receivable		1,462			1,726
deferred income taxes		518			480
property, plant, and equipment (9)		585			691
right of use assets (10)		2,624			3,265
intangible assets		1,876			2,252
long-term investments - rabbi trust		7,102			7,067
other assets		830			840
total assets	$	132,054		$	152,183

(1)

The $31.5 million as of April 28, 2024, represents property, plant, and equipment of $21.5 million, $9.4 million, and $555,000 located in the U.S., Canada, and Haiti, respectively.

(2)

The $33.7 million as of April 30, 2023, represents property, plant, and equipment of $22.7 million, $10.4 million, and $608,000 located in the U.S., Canada, and Haiti, respectively.

(3)

The $1.6 million as of April 28, 2024, represents right of use assets of $1.1 million and $545,000 located in Haiti and Canada, respectively.

(4)

The $2.3 million as of April 30, 2023, represents right of use assets of $1.5 million and $776,000 located in Haiti and Canada, respectively.

(5)

The $1.1 million as of April 28, 2024, represents property, plant, and equipment of $1.0 million and $120,000 located in the U.S. and China, respectively.

(6)

The $1.7 million as of April 30, 2023, represents property, plant, and equipment of $974,000, $592,000, and $105,000 located in the U.S., Haiti, and China, respectively.

(7)

The $2.0 million as of April 28, 2024, represents right of use assets of $1.3 million and $709,000 located in the U.S. and China, respectively.

(8)

The $2.6 million as of April 30, 2023, represents right of use assets of $1.5 million and $1.1 million located in China and the U.S., respectively.

(9)

The $585,000 as of April 28, 2024, and $691,000 as of April 30, 2023, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by both the mattress fabrics and upholstery fabrics segments located in the U.S.

(10)

The $2.6 million as of April 28, 2024, and $3.3 million as of April 30, 2023, represent right of use assets associated with unallocated corporate departments and corporate departments shared by both the mattress fabrics and upholstery fabrics segments located in the U.S.

Capital expenditures and depreciation expense information for our business segments follow:


(dollars in thousands)	2024		2023		2022
capital expenditures (1):
mattress fabrics	$	3,474	$	1,125	$	3,383
upholstery fabrics		271		467		1,032
unallocated corporate		255		97		1,406
total capital expenditures	$	4,000	$	1,689	$	5,821

depreciation expense
mattress fabrics	$	5,883	$	6,050	$	6,200
upholstery fabrics		638		795		794
total depreciation expense	$	6,521	$	6,845	$	6,994

(1)

Capital expenditure amounts are stated on an accrual basis. See the Consolidated Statement of Cash Flows for capital expenditure amounts on a cash basis.