Note 10 – Guarantor and Non-guarantor Financial Statements

Our senior secured notes are, jointly and severally, unconditionally guaranteed, on a senior basis, by all of our existing and future 100% owned domestic subsidiaries (“Guarantor Subsidiaries”). The non-guarantor subsidiaries are our foreign subsidiaries. The following condensed financial information illustrates the composition of the combined Guarantor Subsidiaries:

CONDENSED CONSOLIDATED BALANCE SHEET

	September 30, 2011
(in thousands)	Parent		Guarantor Subsidiaries			Non-guarantor Subsidiaries		Eliminations			Total
ASSETS
Cash and cash equivalents	$	40,745	$	(5,971	)	$	3,696	$	-		$	38,470
Accounts and other receivables, net		44,868		144,994			7,405		(81,830	)		115,437
Inventories		22,616		38,813			4,985		-			66,414
Other current assets		6,301		7,128			3,050		-			16,479
Total current assets		114,530		184,964			19,136		(81,830	)		236,800
Property, plant, and equipment, net		66,416		142,566			47,779		-			256,761
Goodwill		104,820		67,253			-		-			172,073
Intangible assets, net		137,739		42,558			-		-			180,297
Investments in and advances to subsidiaries and affiliates		324,812		-			-		(324,812	)		-
Other non-current assets		9,587		2,656			3,972		-			16,215
TOTAL	$	757,904	$	439,997		$	70,887	$	(406,642	)	$	862,146
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$	14,394	$	45,457		$	9,380	$	-		$	69,231
Accrued payroll and compensation		4,018		9,032			4,592		-			17,642
Accrued interest payable		5,122		-			-		-			5,122
Accrued and other liabilities		84,844		16,898			2,937		(81,830	)		22,849
Total current liabilities		108,378		71,387			16,909		(81,830	)		114,844
Long term debt		322,819		-			-		-			322,819
Deferred and non-current income taxes		34,175		(1,666	)		3,833		-			36,342
Other non-current liabilities		13,677		77,794			17,815		-			109,286
Stockholders' equity		278,855		292,482			32,330		(324,812	)		278,855
TOTAL	$	757,904	$	439,997		$	70,887	$	(406,642	)	$	862,146

	December 31, 2010
(in thousands)	Parent		Guarantor Subsidiaries			Non-guarantor Subsidiaries		Eliminations			Total
ASSETS
Cash and cash equivalents	$	75,114	$	(2,225	)	$	5,577		-		$	78,466
Accounts and other receivables, net		43,503		157,742			5,071	$	(130,614	)		75,702
Inventories		19,020		32,063			4,735		-			55,818
Other current assets		3,546		9,237			5,735		-			18,518
Total current assets		141,183		196,817			21,118		(130,614	)		228,504
Property, plant, and equipment, net		45,909		131,092			64,051		-			241,052
Goodwill		97,127		80,445			-		-			177,572
Intangible assets, net		143,728		68,928			-		-			212,656
Investments in and advances to subsidiaries and affiliates		349,455		-			-		(349,455	)		-
Other non-current assets		10,977		2,329			960		-			14,266
TOTAL	$	788,379	$	479,611		$	86,129	$	(480,069	)	$	874,050
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$	9,563	$	39,641		$	6,120		-		$	55,324
Accrued payroll and compensation		3,683		8,728			4,909		-			17,320
Accrued interest payable		12,682		-			-		-			12,682
Accrued and other liabilities		115,380		21,588			20,840	$	(130,614	)		27,194
Total current liabilities		141,308		69,957			31,869		(130,614	)		112,520
Long term debt		302,031		-			-		-			302,031
Deferred and non-current income taxes		26,664		6,516			7,440		-			40,620
Other non-current liabilities		20,277		80,488			20,015		-			120,780
Stockholders' equity		298,099		322,650			26,805		(349,455	)		298,099
TOTAL	$	788,379	$	479,611		$	86,129	$	(480,069	)	$	874,050

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Successor Three Months Ended September 30, 2011
(in thousands)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
Net sales	$	109,827		$	135,117		$	35,270		$	(39,385	)	$	240,829
Cost of goods sold		94,438			134,782			31,756			(39,385	)		221,591
Gross profit		15,389			335			3,514			-			19,238
Operating expenses		11,651			2,989			107			-			14,747
Income (loss) from operations		3,738			(2,654	)		3,407			-			4,491
Other income (expense):
Interest expense, net		(8,687	)		(36	)		(101	)		-			(8,824	)
Equity in earnings of subsidiaries		(37,808	)		-			-			37,808			-
Other income (expense), net		34,011			(35,308	)		2,106			-			809
Income (loss) before income taxes from continuing operations		(8,746	)		(37,998	)		5,412			37,808			(3,524	)
Income tax provision		8,474			-			1,558			-			10,032
Income (loss) from continuing operations		(17,220	)		(37,998	)		3,854			37,808			(13,556	)
Discontinued operations, net of tax		-			(3,664	)		-			-			(3,664	)
Net income (loss)	$	(17,220	)	$	(41,662	)	$	3,854		$	37,808		$	(17,220	)

	Successor Three Months Ended September 30, 2010
(in thousands)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
Net sales	$	90,287		$	89,665		$	31,218		$	(33,075	)	$	178,095
Cost of goods sold		81,165			87,965			27,602			(33,075	)		163,657
Gross profit		9,122			1,700			3,616			-			14,438
Operating expenses		11,091			1,806			61			-			12,958
Income (loss) from operations		(1,969	)		(106	)		3,555			-			1,480
Other income (expense):
Interest expense, net		(10,655	)		(32	)		(35	)		-			(10,722	)
Equity in earnings of subsidiaries		5,970			-			-			(5,970	)		-
Other income (expense), net		38,750			264			460			-			39,474
Income (loss) before income taxes from continuing operations		32,096			126			3,980			(5,970	)		30,232
Income tax provision		1,245			-			1,324			-			2,569
Income (loss) from continuing operations		30,851			126			2,656			(5,970	)		27,663
Discontinued operations, net of tax		-			3,188			-			-			3,188
Net income (loss)	$	30,851		$	3,314		$	2,656		$	(5,970	)	$	30,851

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Successor Nine Months Ended September 30, 2011
(in thousands)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
Net sales	$	323,023		$	381,104		$	113,520		$	(124,051	)	$	693,596
Cost of goods sold		285,007			368,234			105,434			(124,051	)		634,624
Gross profit		38,016			12,870			8,086			-			58,972
Operating expenses		36,919			7,405			256			-			44,580
Income from operations		1,097			5,465			7,830			-			14,392
Other income (expense):
Interest expense, net		(24,994	)		(97	)		(473	)		-			(25,564	)
Equity in earnings of subsidiaries		(26,052	)		-			-			26,052			-
Other income (expense), net		36,881			(35,293	)		1,617			-			3,205
Income (loss) before income taxes from continuing operations		(13,068	)		(29,925	)		8,974			26,052			(7,967	)
Income tax provision		8,036			-			2,388			-			10,424
Income (loss) from continuing operations		(21,104	)		(29,925	)		6,586			26,052			(18,391	)
Discontinued operations, net of tax		-			(2,713	)		-			-			(2,713	)
Net income (loss)	$	(21,104	)	$	(32,638	)	$	6,586		$	26,052		$	(21,104	)

	Successor Period from February 26 to September 30, 2010
(in thousands)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
Net sales	$	212,603		$	198,528		$	69,217		$	(73,761	)	$	406,587
Cost of goods sold		202,016			187,182			62,211			(73,761	)		377,648
Gross profit		10,587			11,346			7,006			-			28,939
Operating expenses		30,606			4,104			162			-			34,872
Income (loss) from operations		(20,019	)		7,242			6,844			-			(5,933	)
Other income expense:
Interest expense, net		(24,222	)		(76	)		(154	)		-			(24,452	)
Equity in earnings of subsidiaries		17,509			-			-			(17,509	)		-
Other income (expense), net		10,492			428			(709	)		-			10,211
Income (loss) before income taxes from continuing operations		(16,240	)		7,594			5,981			(17,509	)		(20,174	)
Income tax provision (benefit)		(573	)		-			1,964			-			1,391
Income (loss) from continuing operations		(15,667	)		7,594			4,017			(17,509	)		(21,565	)
Discontinued operations, net of tax		-			5,898			-			-			5,898
Net income (loss)	$	(15,667	)	$	13,492		$	4,017		$	(17,509	)	$	(15,667	)

	Predecessor Period from January 1 to February 26, 2010
(in thousands)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
Net sales	$	47,897		$	44,559		$	14,011		$	(14,820	)	$	91,647
Cost of goods sold		45,553			44,346			14,318			(14,820	)		89,397
Gross profit (loss)		2,344			213			(307	)		-			2,250
Operating expenses		5,327			1,100			52			-			6,479
Loss from operations		(2,983	)		(887	)		(359	)		-			(4,229	)
Other income (expense):
Interest expense, net		(6,804	)		(21	)		(671	)		-			(7,496	)
Equity in earnings of subsidiaries		(1,223	)		-			-			1,223			-
Other income (expense), net		547			49			(30	)		-			566
Income (loss) before reorganization items and income taxes from continuing operations		(10,463	)		(859	)		(1,060	)		1,223			(11,159	)
Reorganization expense (income)		(59,334	)		21			2			-			(59,311	)
Income tax benefit		(1,931	)		-			-			-			(1,931	)
Income (loss) from continuing operations		50,802			(880	)		(1,062	)		1,223			50,083
Discontinued operations, net of tax		-			719			-			-			719
Net income (loss)	$	50,802		$	(161	)	$	(1,062	)	$	1,223		$	50,802

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Successor Nine Months Ended September 30, 2011
(in thousands)	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(21,104	)	$	(32,638	)	$	6,586		$	26,052		$	(21,104	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation		7,863			15,913			4,677			-			28,453
Amortization – deferred financing costs		2,069			-			-			-			2,069
Amortization – other intangible assets		6,612			3,000			-			-			9,612
Provision for deferred income taxes		8,475			(390	)		-			-			8,085
Change in warrant liability		(3,750	)		-			-			-			(3,750	)
Loss (gain) on disposal of assets		(11,344	)		1,051			10,771			-			478
Equity in earnings of subsidiaries and affiliates		26,052			-			-			(26,052	)		-
Non-cash stock-based compensation		1,875			-			-			-			1,875
Change in other operating items		(42,923	)		4,608			(22,577	)		-			(60,892	)
Net cash used in operating activities		(26,175	)		(8,456	)		(543	)		-			(35,174	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(5,813	)		(35,818	)		(1,338	)		-			(42,969	)
Other		(22,381	)		40,528			-			-			18,147
Net cash provided by (used in) investing activities		(28,194	)		4,710			(1,338	)		-			(24,822	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Other		20,000			-			-			-			20,000
Net cash provided by financing activities		20,000			-			-			-			20,000

Decrease in cash and cash equivalents		(34,369	)		(3,746	)		(1,881	)		-			(39,996	)
Cash and cash equivalents, beginning of year		75,114			(2,225	)		5,577			-			78,466
Cash and cash equivalents, end of period	$	40,745		$	(5,971	)	$	3,696		$	-		$	38,470

	Successor Period from February 26 to September 30, 2010
(in thousands)	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(15,667	)	$	13,492		$	4,017		$	(17,509	)	$	(15,667	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation		5,554			15,337			3,355			-			24,246
Amortization-deferred financing costs		460			-			-			-			460
Amortization – other intangible assets		3,311			3,171			-			-			6,482
Loss on disposal of assets		4			25			22			-			51
Deferred income taxes		(1,124	)		3,303			-			-			2,179
Paid-in-kind interest		6,161			-			-			-			6,161
Non-cash stock-based compensation		593			-			-			-			593
Equity in earnings of subsidiaries and affiliates		(17,509	)		-			-			17,509			-
Non-cash change in market valuation - convertible notes		(5,623	)		-			-			-			(5,623	)
Change in warrant liability		(4,633	)		-			-			-			(4,633	)
Change in other operating items		(19,624	)		(28,367	)		18,017			-			(29,974	)
Net cash provided by (used in) operating activities		(48,097	)		6,961			25,411			-			(15,725	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(1,725	)		(5,808	)		(615	)		-			(8,148	)
Other		13,028			238			-			-			13,266
Net cash provided by (used in) investing activities		11,303			(5,570	)		(615	)		-			5,118

CASH FLOWS FROM FINANCING ACTIVITIES:
Other		3,624			-			(22,000	)		-			(18,376	)
Net cash provided by (used in) financing activities		3,624			-			(22,000	)		-			(18,376	)

Increase (decrease) in cash and cash equivalents		(33,170	)		1,391			2,796			-			(28,983	)
Cash and cash equivalents, beginning of period		80,971			(4,264	)		3,640			-			80,347
Cash and cash equivalents, end of period	$	47,801		$	(2,873	)	$	6,436		$	-		$	51,364

	Predecessor Period from January 1 to February 26, 2010
(in thousands)	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	50,802		$	(161	)	$	(1,062	)	$	1,223		$	50,802
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation		1,205			4,527			979			-			6,711
Amortization – deferred financing costs		690			-			4			-			694
Amortization – other intangible assets		31			790			-			-			821
Reorganization items		(59,334	)		21			2			-			(59,311	)
Payments on reorganization items		(12,164	)		-			-			-			(12,164	)
Paid-in-kind interest		1,769			-			-			-			1,769
Loss on disposal of assets		2			1			-			-			3
Equity in earnings of subsidiaries and affiliates		1,223			-			-			(1,223	)		-
Deferred income taxes		(1,957	)		397			-			-			(1,560	)
Change in other operating items		(752	)		(6,636	)		(1,150	)		-			(8,538	)
Net cash used in operating activities		(18,485	)		(1,061	)		(1,227	)		-			(20,773	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(60	)		(1,377	)		(20	)		-			(1,457	)
Other		(600	)		45			-			-			(555	)
Net cash used in investing activities		(660	)		(1,332	)		(20	)		-			(2,012	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from debt issuance		46,611			-			-			-			46,611
Net cash provided by financing activities		46,611			-			-			-			46,611

Increase (decrease) in cash and cash equivalents		27,466			(2,393	)		(1,247	)		-			23,826
Cash and cash equivalents, beginning of year		53,505			(1,871	)		4,887			-			56,521
Cash and cash equivalents, end of period	$	80,971		$	(4,264	)	$	3,640		$	-		$	80,347