EX-99.B 3 a5288610ex99b.txt CULP EXHIBIT 99B Exhibit 99(b) Page 1 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE CONSOLIDATED STATEMENTS OF NET INCOME (LOSS) FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 29, 2006 AND OCTOBER 30, 2005 (UNAUDITED) (Amounts in Thousands, Except for Per Share Data) THREE MONTHS ENDED -------------------------------------------------------------------------- Amounts Percent of Sales ----------------------------- ---------------------------- October 29, October 30, % Over October 29, October 30, 2006 2005 (Under) 2006 2005 -------------- -------------- --------------- --------------- ------------ Net sales $ 59,040 67,006 (11.9) % 100.0 % 100.0 % Cost of sales 51,049 61,455 (16.9) % 86.5 % 91.7 % -------------- -------------- -------------------------------------------- Gross profit 7,991 5,551 44.0 % 13.5 % 8.3 % Selling, general and administrative expenses 6,273 6,526 (3.9) % 10.6 % 9.7 % Restructuring (credit) expense (264) 4,412 (106.0) % (0.4) % 6.6 % -------------- -------------- -------------------------------------------- Income (loss) from operations 1,982 (5,387) 136.8 % 3.4 % (8.0)% Interest expense 938 942 (0.4) % 1.6 % 1.4 % Interest income (51) (19) 168.4 % (0.1) % (0.0)% Other expense 338 214 57.9 % 0.6 % 0.3 % -------------- -------------- -------------------------------------------- Income (loss) before income taxes 757 (6,524) 111.6 % 1.3 % (9.7)% Income taxes* (55) (2,372) (97.7) % (7.3) % 36.4 % -------------- -------------- -------------------------------------------- Net income (loss) $ 812 (4,152) 119.6 % 1.4 % (6.2)% ============== ============== ============================================ Net income (loss) per share-basic $0.07 ($0.36) 119.4 % Net income (loss) per share-diluted $0.07 ($0.36) 119.4 % Net income (loss) per share, diluted, excluding restructuring $0.09 ($0.03) 400.0 % and related charges (see proforma statement on page 6) Average shares outstanding-basic 11,686 11,559 1.1 % Average shares outstanding-diluted 11,689 11,559 1.1 % SIX MONTHS ENDED ------------------------------------------------------------------------- Amounts Percent of Sales ----------------------------- ---------------------------- October 29, October 30, % Over October 29, October 30, 2006 2005 (Under) 2006 2005 -------------- -------------- --------------- --------------- ------------ Net sales $ 121,625 129,348 (6.0) % 100.0 % 100.0 % Cost of sales 105,574 117,240 (10.0) % 86.8 % 90.6 % -------------- -------------- -------------------------------------------- Gross profit 16,051 12,108 32.6 % 13.2 % 9.4 % Selling, general and administrative expenses 12,846 16,382 (21.6) % 10.6 % 12.7 % Restructuring expense 466 6,238 (92.5) % 0.4 % 4.8 % -------------- -------------- -------------------------------------------- Income (loss) from operations 2,739 (10,512) 126.1 % 2.3 % (8.1)% Interest expense 1,888 1,892 (0.2) % 1.6 % 1.5 % Interest income (97) (35) 177.1 % (0.1) % (0.0)% Other expense 60 347 (82.7) % 0.0 % 0.3 % -------------- -------------- -------------------------------------------- Income (loss) before income taxes 888 (12,716) 107.0 % 0.7 % (9.8)% Income taxes* (58) (4,623) (98.7) % (6.5) % 36.4 % -------------- -------------- -------------------------------------------- Net income (loss) $ 946 (8,093) 111.7 % 0.8 % (6.3)% ============== ============== ============== ============== =========== Net income (loss) per share-basic $0.08 ($0.70) 111.4 % Net income (loss) per share-diluted $0.08 ($0.70) 111.4 % Net income (loss) per share, diluted, excluding restructuring $0.19 ($0.08) 337.5 % and related charges (see proforma statement on page 7) Average shares outstanding-basic 11,679 11,555 1.1 % Average shares outstanding-diluted 11,682 11,555 1.1 % * Percent of sales column for income taxes is calculated as a % of income (loss) before income taxes.
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CULP, INC. FINANCIAL INFORMATION RELEASE CONSOLIDATED BALANCE SHEETS OCTOBER 29, 2006, OCTOBER 30, 2005 AND APRIL 30, 2006 Unaudited (Amounts in Thousands) Amounts Increase ------------------------------- October 29, October 30, (Decrease) * April 30, ------------------------------ 2006 2005 Dollars Percent 2006 --------------- -------------- -------------- --------------- -------------- Current assets Cash and cash equivalents $ 9,706 12,883 (3,177) (24.7)% 9,714 Accounts receivable 23,286 26,919 (3,633) (13.5)% 29,049 Inventories 44,430 43,449 981 2.3 % 36,693 Deferred income taxes 7,120 7,054 66 0.9 % 7,120 Assets held for sale 1,571 - 1,571 100.0 % 3,111 Other current assets 1,506 1,846 (340) (18.4)% 1,287 --------------- -------------- -------------- --------------- -------------- Total current assets 87,619 92,151 (4,532) (4.9)% 86,974 Property, plant & equipment, net 42,487 54,212 (11,725) (21.6)% 44,639 Goodwill 4,114 4,114 - 0.0 % 4,114 Deferred income taxes 22,023 14,541 7,482 51.5 % 20,176 Other assets 1,354 1,521 (167) (11.0)% 1,564 --------------- -------------- -------------- --------------- -------------- Total assets $ 157,597 166,539 (8,942) (5.4)% 157,467 =============== ============== ============== =============== ============== Current liabilities Current maturities of long-term debt $ 7,742 8,346 (604) (7.2)% 8,060 Accounts payable 18,540 16,613 1,927 11.6 % 20,835 Accrued expenses 9,001 10,669 (1,668) (15.6)% 7,845 Accrued restructuring 3,017 5,486 (2,469) (45.0)% 4,054 Income taxes payable 3,880 1,023 2,857 279.3 % 2,488 --------------- -------------- -------------- --------------- -------------- Total current liabilities 42,180 42,137 43 0.1 % 43,282 Long-term debt , less current maturities 39,554 46,584 (7,030) (15.1)% 39,662 --------------- -------------- -------------- --------------- -------------- Total liabilities 81,734 88,721 (6,987) (7.9)% 82,944 Shareholders' equity 75,863 77,818 (1,955) (2.5)% 74,523 --------------- -------------- -------------- --------------- -------------- Total liabilities and shareholders' equity $ 157,597 166,539 (8,942) (5.4)% 157,467 =============== ============== ============== =============== ============== Shares outstanding 11,687 11,559 128 1.1 % 11,655 =============== ============== ============== =============== ============== * Derived from audited financial statements
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CULP, INC. FINANCIAL INFORMATION RELEASE CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED OCTOBER 29, 2006 AND OCTOBER 30, 2005 Unaudited (Amounts in Thousands) SIX MONTHS ENDED ----------------------------- Amounts ----------------------------- October 29, October 30, 2006 2005 -------------- -------------- Cash flows from operating activities: Net income (loss) $ 946 (8,093) Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: Depreciation 3,364 9,836 Amortization of other assets 41 51 Stock-based compensation 287 104 Deferred income taxes (1,847) (4,455) Restructuring (credit) expense (364) 3,092 Changes in assets and liabilities: Accounts receivable 5,763 1,905 Inventories (7,737) 7,050 Other current assets (219) 845 Other assets 148 149 Accounts payable (1,965) (5,623) Accrued expenses 1,156 1,113 Accrued restructuring (1,037) (364) Income taxes payable 1,392 (521) -------------- -------------- Net cash (used in) provided by operating activities (72) 5,089 -------------- -------------- Cash flows from investing activities: Capital expenditures (1,705) (4,875) Proceeds from the sale of buildings and equipment 2,738 3,950 -------------- -------------- Net cash provided by (used in) investing activities 1,033 (925) -------------- -------------- Cash flows from financing activities: Payments on vendor-financed capital expenditures (670) (799) Payments on long-term debt (426) - Proceeds from issuance of long-term debt - 4,380 Proceeds from common stock issued 127 31 -------------- -------------- Net cash (used in) provided by financing activities (969) 3,612 -------------- -------------- (Decrease) increase in cash and cash equivalents (8) 7,776 Cash and cash equivalents at beginning of period 9,714 5,107 -------------- -------------- Cash and cash equivalents at end of period $ 9,706 12,883 ============== ============== Free Cash Flow (1) $ 291 3,365 ============== ============== (1) Free Cash Flow reconciliation is as follows: 2nd Qtr 2nd Qtr FY 2007 FY 2006 ------------------------------ A) Net cash (used in) provided by operating activities $ (72) 5,089 B) Minus: Capital Expenditures (1,705) (4,875) C) Add: Proceeds from the sale of buildings and equipment 2,738 3,950 D) Minus: Payments on vendor-financed capital expenditures (670) (799) -------------- -------------- $ 291 3,365 ============== ==============
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CULP, INC. FINANCIAL INFORMATION RELEASE SALES, GROSS PROFIT AND OPERATING INCOME (LOSS) BY SEGMENT FOR THE THREE MONTHS ENDED OCTOBER 29, 2006 AND OCTOBER 30, 2005 (Amounts in thousands) THREE MONTHS ENDED (UNAUDITED) ---------------------------------------------------------------------------------- Amounts Percent of Total Sales ------------------------------- -------------------------------- October 29, October 30, % Over October 29, October 30, Net Sales by Segment 2006 2005 (Under) 2006 2005 ----------------------------------- -------------- -------------- --------------- --------------- ---------------- Mattress Fabrics $ 23,494 23,990 (2.1)% 39.8 % 35.8 % Upholstery Fabrics 35,546 43,016 (17.4)% 60.2 % 64.2 % -------------- -------------- --------------- --------------- ---------------- Net Sales $ 59,040 67,006 (11.9)% 100.0 % 100.0 % ============== ============== =============== =============== ================ Gross Profit by Segment Gross Profit Margin ----------------------------------- -------------------------------- Mattress Fabrics $ 4,144 3,302 25.5 % 17.6 % 13.8 % Upholstery Fabrics 4,138 4,000 3.5 % 11.6 % 9.3 % -------------- -------------- --------------- --------------- ---------------- Subtotal 8,282 7,302 13.4 % 14.0 % 10.9 % Restructuring related charges (291)(1) (1,751)(3) (83.4)% (0.5)% (2.6) % -------------- -------------- --------------- --------------- ---------------- Gross Profit $ 7,991 5,551 44.0 % 13.5 % 8.3 % ============== ============== =============== =============== ================ Selling, General and Administrative expenses by Segment Percent of Sales ----------------------------------- -------------------------------- Mattress Fabrics $ 1,674 1,636 2.3 % 7.1 % 6.8 % Upholstery Fabrics 3,745 4,069 (8.0)% 10.5 % 9.5 % Unallocated Corporate expenses 824 821 0.4 % 1.4 % 1.2 % -------------- -------------- --------------- --------------- ---------------- 6,243 6,526 (4.3)% 10.6 % 9.7 % Restructuring related charges 30 (1) - 100.0 % 0.1 % 0.0 % -------------- -------------- --------------- --------------- ---------------- Selling, General and Administrative expenses $ 6,273 6,526 (3.9)% 10.6 % 9.7 % ============== ============== =============== =============== ================ Operating Income (loss) by Segment Operating Income (Loss) Margin ----------------------------------- -------------------------------- Mattress Fabrics $ 2,470 1,666 48.3 % 10.5 % 6.9 % Upholstery Fabrics 393 (69) 669.6 % 1.1 % (0.2) % Unallocated corporate expenses (824) (821) 0.4 % (1.4)% (1.2) % -------------- -------------- --------------- --------------- ---------------- Subtotal 2,039 776 162.8 % 3.5 % 1.2 % Restructuring credit (expense) 264 (2) (4,412)(4) (106.0)% 0.4 % (6.6) % Restructuring related charges (321)(1) (1,751)(3) (81.7)% (0.5)% (2.6) % -------------- -------------- --------------- --------------- ---------------- Operating income (loss) $ 1,982 (5,387) 136.8 % 3.4 % (8.0) % ============== ============== =============== =============== ================ Depreciation by Segment ----------------------------------- Mattress Fabrics $ 918 893 2.8 % Upholstery Fabrics 744 1,417 (47.5)% -------------- -------------- --------------- Subtotal 1,662 2,310 (28.1)% Accelerated Depreciation - 1,355 (100.0)% -------------- -------------- --------------- Total Depreciation $ 1,662 3,665 (54.7)% ============== ============== =============== Notes: (1)The $291,000 and $30,000 represents restructuring related charges for other operating costs associated with the closing of plant facilities. (2)The $264,000 restructuring credit represents $354,000 for asset movement costs, $333,000 for lease termination and other exit costs, a credit of $53,000 for write-downs of a building and equipment, a credit of $437,000 for sales proceeds received on equipment with no carrying value associated with the closing of plant facilities, and a credit of $461,000 associated with employee termination benefits. (3)The $1.8 million represents restructuring related charges of $1.4 million for accelerated depreciation, $331,000 for inventory markdowns, and $65,000 for other operating costs associated with the closing of plant facilities. (4)The $4.4 million represents restructuring charges of $2.1 million for write-downs of buildings and equipment, $1.6 million for employee termination benefits, $395,000 for asset movement costs and $328,000 for lease termination costs.
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CULP, INC. FINANCIAL INFORMATION RELEASE SALES, GROSS PROFIT AND OPERATING INCOME (LOSS) BY SEGMENT FOR THE SIX MONTHS ENDED OCTOBER 29, 2006 AND OCTOBER 30, 2005 (Amounts in thousands) SIX MONTHS ENDED (UNAUDITED) ------------------------------------------------------------------------------------ Amounts Percent of Total Sales ---------------------------------- --------------------------------- October 29, October 30, % Over October 29, October 30, Net Sales by Segment 2006 2005 (Under) 2006 2005 ----------------------------------- ----------------- -------------- ------------- ---------------- ---------------- Mattress Fabrics $ 45,339 46,905 (3.3)% 37.3 % 36.3 % Upholstery Fabrics 76,286 82,443 (7.5)% 62.7 % 63.7 % ----------------- -------------- ------------- ---------------- ---------------- Net Sales $ 121,625 129,348 (6.0)% 100.0 % 100.0 % ================= ============== ============= ================ ================ Gross Profit by Segment Gross Profit Margin ----------------------------------- --------------------------------- Mattress Fabrics $ 7,665 6,397 19.8 % 16.9 % 13.6 % Upholstery Fabrics 9,423 7,957 18.4 % 12.4 % 9.7 % ----------------- -------------- ------------- ---------------- ---------------- Subtotal 17,088 14,354 19.0 % 14.0 % 11.1 % Restructuring related charges (1,037)(1) (2,246)(3) (53.8)% (0.9)% (1.7) % ----------------- -------------- ------------- ---------------- ---------------- Gross Profit $ 16,051 12,108 32.6 % 13.2 % 9.4 % ================= ============== ============= ================ ================ Selling, General and Administrative expenses by Segment Percent of Sales ----------------------------------- --------------------------------- Mattress Fabrics $ 3,337 3,373 (1.1)% 7.4 % 7.2 % Upholstery Fabrics 7,453 8,405 (11.3)% 9.8 % 10.2 % Unallocated Corporate expenses 2,026 1,582 28.1 % 1.7 % 1.2 % ----------------- -------------- ------------- --------------- ---------------- Subtotal 12,816 13,360 (4.1)% 10.5 % 10.3 % Restructuring related charges 30 (1) 3,022 (4) (99.0)% 0.0 % 2.3 % ----------------- -------------- ------------- ---------------- ---------------- Selling, General and Administrative expenses $ 12,846 16,382 (21.6)% 10.6 % 12.7 % ================= ============== ============= ================ ================ Operating Income (loss) by Segment Operating Income (Loss) Margin ----------------------------------- --------------------------------- Mattress Fabrics $ 4,328 3,024 43.1 % 9.5 % 6.4 % Upholstery Fabrics 1,970 (448) 539.7 % 2.6 % (0.5) % Unallocated corporate expenses (2,026) (1,582) 28.1 % (1.7)% (1.2) % ----------------- -------------- ------------- ---------------- ---------------- Subtotal 4,272 994 329.8 % 3.5 % 0.8 % Restructuring expense (466)(2) (6,238)(5) (92.5)% (0.4)% (4.8) % Restructuring related charges (1,067)(1) (5,268)(6) (79.7)% (0.9)% (4.1) % ----------------- -------------- ------------- ---------------- ---------------- Operating income (loss) $ 2,739 (10,512) 126.1 % 2.3 % (8.1) % ================= ============== ============= ================ ================ Depreciation by Segment ----------------------------------- Mattress Fabrics $ 1,860 1,749 6.3 % Upholstery Fabrics 1,504 3,216 (53.2)% ----------------- -------------- ------------- Subtotal 3,364 4,965 (32.2)% Accelerated Depreciation - 4,871 (100.0)% ----------------- -------------- ------------- Total Depreciation $ 3,364 9,836 (65.8)% ================= ============== ============= Notes: (1) The $1.1 million represents restructuring related charges of $798,000 for other operating costs associated with the closing of plant facilities and $239,000 for inventory markdowns. The $30,000 represents restructuring related charges for other operating costs associated with the closing of plant facilities. (2) The $466,000 represents restructuring charges of $740,000 for asset movement costs, $327,000 for lease termination and other exit costs, $62,000 for net write-downs of buildings and equipment, a credit of $226,000 for employee termination benefits, and a credit of $437,000 for sales proceeds received on equipment with no carrying value associated with the closing of plant facilities. (3) The $2.3 million represents restructuring related charges of $1.9 million of accelerated depreciation, $331,000 for inventory markdowns, and $65,000 for other operating costs associated with the closing of plant facilities. (4) The $3.0 million represents accelerated depreciation. (5) The $6.2 million represents restructuring charges of $2.9 million for write-downs of buildings and equipment, $1.6 million for asset movement costs, $1.4 million for employee termination benefits, and $378,000 for lease termination costs. (6) The $5.3 million represents restructuring related charges of $4.9 million for accelerated depreciation, $331,000 for inventory markdowns, and $65,000 for other operating costs associated with the closing of plant facilities.
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CULP, INC. PROFORMA CONSOLIDATED STATEMENTS OF NET INCOME (LOSS) FOR THE THREE MONTHS ENDED OCTOBER 29, 2006 AND OCTOBER 30, 2005 (Amounts in Thousands, Except for Per Share Data) THREE MONTHS ENDED -------------------------------------------------------------------------------------- As Reported October 29, 2006 October 29, % of % of Proforma Net % of 2006 Sales Adjustments Sales of Adjustments Sales -------------------------- -------------------------- ------------------------------ Net sales $ 59,040 100.0% 0 59,040 100.0% Cost of sales 51,049 86.5% (291) -0.5%(1) 50,758 86.0% -------------------------- -------------------------- ------------------------------ Gross profit 7,991 13.5% (291) -0.5% 8,282 14.0% Selling, general and administrative expenses 6,273 10.6% (30) -0.1%(1) 6,243 10.6% Restructuring (credit) expense (264) -0.4% 264 0.4%(2) 0 0.0% -------------------------- -------------------------- ------------------------------ Income (loss) from operations 1,982 3.4% (57) -0.1% 2,039 3.5% Interest expense 938 1.6% 0 0.0% 938 1.6% Interest income (51) -0.1% 0 0.0% (51) -0.1% Other expense 338 0.6% (308) -0.5%(3) 30 0.1% -------------------------- -------------------------- ------------------------------ Income (loss) before income taxes 757 1.3% (365) -0.6%(6) 1,122 1.9% Income taxes (8) (55) -7.3% (132) 36.2% 77 6.9% -------------------------- -------------------------- ------------------------------ Net income (loss) $ 812 1.4% (233) -0.4% 1,045 1.8% ========================== ========================== ============================== Net income (loss) per share-basic $0.07 ($0.02) $0.09 Net income (loss) per share-diluted $0.07 ($0.02) $0.09 Average shares outstanding-basic 11,686 11,686 11,686 Average shares outstanding-diluted 11,689 11,686 11,689 THREE MONTHS ENDED ------------------------------------------------------------------------------------------ As Reported October 30, 2005 Proforma October 30, % of % of Proforma Net % of % Over 2005 Sales Adjustments Sales of Adjustments Sales (Under) ------------------------- ------------------- ---------------------- ---------------- Net sales 67,006 100.0% 0 67,006 100.0% -11.9% Cost of sales 61,455 91.7% (1,751) -2.6%(4) 59,704 89.1% -15.0% ------------------------- ------------------- ---------------------- ---------------- Gross profit 5,551 8.3% (1,751) -2.6% 7,302 10.9% 13.4% Selling, general and administrative expenses 6,526 9.7% 0 0.0% 6,526 9.7% -4.3% Restructuring (credit) expense 4,412 6.6% (4,412) -6.6%(5) 0 0.0% 0.0% ------------------------- ------------------- ---------------------- ---------------- Income (loss) from operations (5,387) -8.0% (6,163) -9.2% 776 1.2% 162.8% Interest expense 942 1.4% 0 0.0% 942 1.4% -0.4% Interest income (19) 0.0% 0 0.0% (19) 0.0% 168.4% Other expense 214 0.3% 0 0.0% 214 0.3% -86.0% ------------------------- ------------------- ---------------------- ---------------- Income (loss) before income taxes (6,524) -9.7% (6,163) -9.2%(7) (361) -0.5% -410.8% Income taxes (8) (2,372) 36.4% (2,343) 38.0% (29) 8.0% -366.6% ------------------------- ------------------- ---------------------- ---------------- Net income (loss) (4,152) -6.2% (3,820) -5.7% (332) -0.5% -414.6% ========================= =================== ====================== ================ Net income (loss) per share-basic ($0.36) ($0.33) ($0.03) Net income (loss) per share-diluted ($0.36) ($0.33) ($0.03) Average shares outstanding-basic 11,559 11,559 11,559 Average shares outstanding-diluted 11,559 11,559 11,559 Notes: (1) The $291,000 and $30,000 represent restructuring related charges for other operating costs associated with the closing of plant facilities. (2) The $264,000 restructuring credit represents $354,000 for asset movement costs, $333,000 for lease termination and other exit costs, a credit of $53,000 for write-downs of a building and equipment, a credit of $437,000 for sales proceeds received on equipment with no carrying value associated with the closing of plant facilities, and a credit of $461,000 associated with employee termination benefits. (3) The $308,000 represents sales proceeds received on equipment with no carrying value associated with the closing of plant facilities. (4) The $1.8 million represents restructuring related charges of $1.4 million for accelerated depreciation, $331,000 for inventory markdowns, and $65,000 for other operating costs associated with the closing of plant facilities. (5) The $4.4 million represents $2.1 million for write-downs of buildings and equipment, $1.6 million for employee termination benefits, $395,000 for asset movement costs and $328,000 for lease termination costs. (6) Of this total charge, $418,000 represent cash charges and the credit of $53,000 for write-downs of a building and equipment represent a non-cash gain. (7) Of this total charge, $2.4 million and $3.8 million represent cash and non-cash charges, respectively. (8)The percent of net sales column for income taxes is calculated as a % of income (loss) before income taxes.
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CULP, INC. PROFORMA CONSOLIDATED STATEMENTS OF NET INCOME (LOSS) FOR THE SIX MONTHS ENDED OCTOBER 29, 2006 AND OCTOBER 30, 2005 (Amounts in Thousands, Except for Per Share Data) SIX MONTHS ENDED ------------------------------------------------------------------------------------- As Reported October 29, 2006 October 29, % of % of Proforma Net % of 2006 Sales Adjustments Sales of Adjustments Sales -------------------------- -------------------------- ----------------------------- Net sales $ 121,625 100.0% 0 121,625 100.0% Cost of sales 105,574 86.8% (1,037) -0.9%(1) 104,537 86.0% -------------------------- -------------------------- ----------------------------- Gross profit 16,051 13.2% (1,037) -0.9% 17,088 14.0% Selling, general and administrative expenses 12,846 10.6% (30) 0.0%(1) 12,816 10.5% Restructuring expense 466 0.4% (466) -0.4%(2) 0 0.0% -------------------------- -------------------------- ----------------------------- Income (loss) from operations 2,739 2.3% (1,533) -1.3% 4,272 3.5% Interest expense 1,888 1.6% 0 0.0% 1,888 1.6% Interest income (97) -0.1% 0 0.0% (97) -0.1% Other expense 60 0.0% 0 0.0% 60 0.0% -------------------------- -------------------------- ----------------------------- Income (loss) before income taxes 888 0.7% (1,533) -1.3%(6) 2,421 2.0% Income taxes (8) (58) -6.5% (315) 20.5% 257 10.6% -------------------------- -------------------------- ----------------------------- Net income (loss) $ 946 0.8% (1,218) -1.0% 2,164 1.8% ========================== ========================== ============================= Net income (loss) per share-basic $0.08 ($0.10) $0.19 Net income (loss) per share-diluted $0.08 ($0.10) $0.19 Average shares outstanding-basic 11,679 11,679 11,679 Average shares outstanding-diluted 11,682 11,679 11,682 SIX MONTHS ENDED ---------------------------------------------------------------------------------------- As Reported October 30, 2005 Proforma October 30, % of % of Proforma Net % of % Over 2005 Sales Adjustments Sales of Adjustments Sales (Under) -------------------- ------------------- ---------------------- ------------------ Net sales 129,348 100.0% 0 129,348 100.0% -6.0% Cost of sales 117,240 90.6% (2,246) -1.7%(3) 114,994 88.9% -9.1% -------------------- ------------------- ---------------------- ------------------ Gross profit 12,108 9.4% (2,246) -1.7% 14,354 11.1% 19.0% Selling, general and administrative expenses 16,382 12.7% (3,022) -2.3%(4) 13,360 10.3% -4.1% Restructuring expense 6,238 4.8% (6,238) -4.8%(5) 0 0.0% 0.0% -------------------- ------------------- ---------------------- ------------------ Income (loss) from operations (10,512) -8.1% (11,506) -8.9% 994 0.8% 329.8% Interest expense 1,892 1.5% 0 0.0% 1,892 1.5% -0.2% Interest income (35) 0.0% 0 0.0% (35) 0.0% 177.1% Other expense 347 0.3% 0 0.0% 347 0.3% -82.7% -------------------- ------------------- ---------------------- ------------------ Income (loss) before income taxes (12,716) -9.8% (11,506) -8.9%(7) (1,210) -0.9% -300.1% Income taxes (8) (4,623) 36.4% (4,373) 38.0% (250) 20.7% -202.8% -------------------- ------------------- ---------------------- ------------------ Net income (loss) (8,093) -6.3% (7,133) -5.5% (960) -0.7% -325.4% ==================== =================== ====================== ================== Net income (loss) per share-basic ($0.70) ($0.62) ($0.08) Net income (loss) per share-diluted ($0.70) ($0.62) ($0.08) Average shares outstanding-basic 11,555 11,555 11,555 Average shares outstanding-diluted 11,555 11,555 11,555 Notes: (1) The $1.1 million represents restructuring related charges of $798,00 for other operating costs associated with the closing of plant facilities and $239,000 for inventory markdowns. The $30,000 represents restructuring related charges for other operating costs associated with the closing of plant facilities. (2) The $466,000 represents restructuring charges of $740,000 for asset movement costs, $327,000 for lease termination and other exit costs, $62,000 for net write-downs of buildings and equipment, a credit of $226,000 for employee termination benefits, and a credit of $437,000 for sales proceeds received on equipment with no carrying value associated with the closing of plant faciilties. (3) The $2.3 million represents restructuring related charges of $1.9 million of accelerated depreciation, $331,000 for inventory markdowns, and $65,000 for other operating costs associated with the closing of plant facilities. (4) The $3.0 million represents accelerated depreciation. (5) The $6.2 million represents $2.9 million for write-downs of buildings and equipment, $1.6 million for asset movement costs, $1.4 million for employee termination benefits, and $378,000 for lease termination costs. (6) Of this total charge, $1.2 million and $301,000 represent cash and non-cash charges, respectively. (7) Of this total charge, $3.4 million and $8.1 million represent cash and non-cash charges, respectively. (8) The percent of net sales column for income taxes is calculated as a % of income (loss) before income taxes.