Note 11 – Guarantor and Non-guarantor Financial Statements

Our senior secured notes are, jointly and severally, fully and 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 and discontinued operations. The following condensed financial information illustrates the composition of the combined Guarantor Subsidiaries:

CONDENSED CONSOLIDATING BALANCE SHEETS

	September 30, 2014
(In thousands)	Parent		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Eliminations			Total
ASSETS
Cash and cash equivalents	$	14,106	$	—	$	7,424	$	—		$	21,530
Customer and other receivables, net		49,485		23,940		9,100		411			82,936
Intercompany receivable		—		8,747		82,225		(90,972	)		—
Inventories		20,763		21,843		3,631		(411	)		45,826
Other current assets		6,457		3,184		5,071		—			14,712
Total current assets		90,811		57,714		107,451		(90,972	)		165,004
Property, plant and equipment, net		79,401		101,963		32,752		—			214,116
Goodwill		96,283		4,414		—		—			100,697
Other intangible assets, net		117,464		2,540		—		—			120,004
Investments in and advances to subsidiaries and affiliates		150,822		—		—		(150,822	)		—
Deferred income taxes		—		29,600		1,194		(30,710	)		84
Other non-current assets		6,827		391		14,763		—			21,981
TOTAL	$	541,608	$	196,622	$	156,160	$	(272,504	)	$	621,886
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$	17,774	$	35,791	$	12,962	$	—		$	66,527
Intercompany payable		60,838		—		30,134		(90,972	)		—
Accrued payroll and compensation		3,469		6,401		1,535		—			11,405
Accrued interest payable		5,133		—		—		—			5,133
Accrued and other liabilities		3,468		11,867		3,548		—			18,883
Total current liabilities		90,682		54,059		48,179		(90,972	)		101,948
Long term debt		330,972		—		—		—			330,972
Deferred and non-current income taxes		43,438		10,111		1,043		(30,710	)		23,882
Other non-current liabilities		9,339		70,261		18,307		—			97,907
Stockholders' equity		67,177		62,191		88,631		(150,822	)		67,177
TOTAL	$	541,608	$	196,622	$	156,160	$	(272,504	)	$	621,886

	December 31, 2013
(In thousands)	Parent		Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
ASSETS
Cash and cash equivalents	$	31,018	$	—		$	2,408		$	—		$	33,426
Customer and other receivables, net		31,871		19,955			7,694			—			59,520
Intercompany receivables		—		164,940			79,722			(244,662	)		—
Inventories		16,858		20,759			2,022			(310	)		39,329
Other current assets		7,159		4,357			5,477			—			16,993
Total current assets		86,906		210,011			97,323			(244,972	)		149,268
Property, plant and equipment, net		80,286		103,800			35,538			—			219,624
Goodwill		96,283		4,414			—			—			100,697
Other intangible assets, net		122,764		2,666			—			—			125,430
Investments in and advances to subsidiaries and affiliates		128,059		—			—			(128,059	)		—
Other non-current assets		5,971		1,791			8,996			—			16,758
TOTAL	$	520,269	$	322,682		$	141,857		$	(373,031	)	$	611,777
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$	12,092	$	28,215		$	7,220		$	—		$	$47,527
Intercompany payable		42,428		175,666			26,878			(244,972	)		—
Accrued payroll and compensation		1,604		5,776			1,383			—			8,763
Accrued interest payable		12,535		—			—			—			12,535
Accrued and other liabilities		4,225		11,979			4,970			—			21,174
Total current liabilities		72,884		221,636			40,451			(244,972	)		89,999
Long term debt		330,183		—			—			—			330,183
Deferred and non-current income taxes		45,337		(19,108	)		(334	)		—			25,895
Other non-current liabilities		9,981		75,769			18,066			—			103,816
Stockholders' equity		61,884		44,385			83,674			(128,059	)		61,884
TOTAL	$	520,269	$	322,682		$	141,857		$	(373,031	)	$	611,777

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended September 30, 2014
(In thousands)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
Net sales	$	124,025		$	82,505		$	33,589		$	(56,112	)	$	184,007
Cost of goods sold		111,184			77,396			31,216			(55,701	)		164,095
Gross profit		12,841			5,109			2,373			(411	)		19,912
Operating expenses		9,623			204			41			—			9,868
Income (loss) from operations		3,218			4,905			2,332			(411	)		10,044
Other income (expense):
Interest income (expense), net		(8,695	)		(53	)		304			—			(8,444	)
Equity in earnings of subsidiaries		5,385			—			—			(5,385	)		—
Other income (expense), net		(714	)		327			(418	)		—			(805	)
Income (loss) before income taxes from continuing operations		(806	)		5,179			2,218			(5,796	)		795
Income tax (benefit) provision		(1,905	)		925			570			—			(410	)
Income (loss from continuing operations		1,099			4,254			1,648			(5,796	)		1,205
Discontinued operations, net of tax		—			—			(106	)		—			(106	)
Net income (loss)	$	1,099		$	4,254		$	1,542		$	(5,796	)	$	1,099

Comprehensive income (loss)	$	1,571		$	4,252		$	1,999		$	(6,251	)	$	1,571

	Three Months Ended September 30, 2013
(In thousands)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
Net sales	$	103,235		$	68,781		$	31,928		$	(48,680	)	$	155,264
Cost of goods sold		97,070			66,564			29,621			(48,261	)		144,994
Gross profit		6,165			2,217			2,307			(419	)		10,270
Operating expenses		10,528			372			95			—			10,995
Income (loss) from operations		(4,363	)		1,845			2,212			(419	)		(725	)
Other income (expense):
Interest income (expense), net		(8,855	)		(207	)		351			—			(8,711	)
Equity in earnings of subsidiaries		(7,392	)		—			—			7,392			—
Other income (expense), net		(45	)		147			444			—			546
Income (loss) before income taxes from continuing operations		(20,655	)		1,785			3,007			6,973			(8,890	)
Income tax provision		(2,040	)		925			620			—			(495	)
Income (loss) from continuing operations		(18,615	)		860			2,387			6,973			(8,395	)
Discontinued operations, net of tax		—			—			(10,220	)		—			(10,220	)
Net income (loss)	$	(18,615	)	$	860		$	(7,833	)	$	6,973		$	(18,615	)

Comprehensive income (loss)	$	(17,182	)	$	1,263		$	(7,061	)	$	5,798		$	(17,182	)

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Nine Months Ended September 30, 2014
(In thousands)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
Net sales	$	355,600		$	233,339		$	99,912		$	(156,485	)	$	532,366
Cost of goods sold		318,350			217,082			92,720			(155,143	)		473,009
Gross profit		37,250			16,257			7,192			(1,342	)		59,357
Operating expenses		29,588			706			146			—			30,440
Income (loss) from operations		7,662			15,551			7,046			(1,342	)		28,917
Other income (expense):
Interest income (expense), net		(26,118	)		(173	)		940			—			(25,351	)
Equity in earnings of subsidiaries		19,446			—			—			(19,446	)		—
Other income (expense), net		(1,591	)		453			(366	)		—			(1,504	)
Income (loss) before income taxes from continuing operations		(601	)		15,831			7,620			(20,788	)		2,062
Income tax (benefit) provision		(3,422	)		1,068			1,387			—			(967	)
Income (loss) from continuing operations		2,821			14,763			6,233			(20,788	)		3,029
Discontinued operations, net of tax		—			—			(208	)		—			(208	)
Net income (loss)	$	2,821		$	14,763		$	6,025		$	(20,788	)	$	2,821

Comprehensive income (loss)	$	3,766		$	14,738		$	6,956		$	(21,694	)	$	3,766

	Nine Months Ended September 30, 2013
(In thousands)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
Net sales	$	330,342		$	220,503		$	105,955		$	(158,608	)	$	498,192
Cost of goods sold		311,452			211,212			98,463			(158,189	)		462,938
Gross profit		18,890			9,291			7,492			(419	)		35,254
Operating expenses		33,353			1,216			248			—			34,817
Income (loss) from operations		(14,463	)		8,075			7,244			(419	)		437
Other income (expense):
Interest income (expense), net		(27,000	)		(736	)		1,174			—			(26,562	)
Equity in earnings of subsidiaries		986			—			—			(986	)		—
Other income (expense), net		(131	)		159			222			—			250
Income (loss) before income taxes from continuing operations		(40,608	)		7,498			8,640			(1,405	)		(25,875	)
Income tax provision		(684	)		925			2,137			—			2,378
Income (loss) from continuing operations		(39,924	)		6,573			6,503			(1,405	)		(28,253	)
Discontinued operations, net of tax		—			—			(11,671	)		—			(11,671	)
Net income (loss)	$	(39,924	)	$	6,573		$	(5,168	)	$	(1,405	)	$	(39,924	)

Comprehensive income (loss)	$	(37,743	)	$	6,976		$	(3,648	)	$	(3,328	)	$	(37,743	)

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	Nine Months Ended September 30, 2014
(In thousands)	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	2,821		$	14,763		$	6,025		$	(20,788	)	$	2,821
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation		8,335			13,446			3,126			—			24,907
Amortization – deferred financing costs		1,859			—			—			—			1,859
Amortization – other intangible assets		5,971			126			—			—			6,097
Loss on disposal of assets		580			62			27			—			669
Deferred income taxes		(2,195	)		925			678			—			(592	)
Non-cash stock-based compensation		1,831			—			—			—			1,831
Equity in earnings of subsidiaries and affiliates		(20,377	)		—			—			20,377			—
Change in other operating items		14,837			(41,354	)		(3,212	)		411			(29,318	)
Net cash provided by (used in) operating activities		13,662			(12,032	)		6,644			—			8,274

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(8,350	)		(11,977	)		(407	)		—			(20,734	)
Payments on notes receivable		36,698			(106,680	)		(33,946	)		103,928			—
Proceeds from notes receivable		(34,517	)		71,408			32,725			(69,616	)		—
Other		(671	)		1,235			—			—			564
Net cash provided by (used in) investing activities		(6,840	)		(46,014	)		(1,628	)		34,312			(20,170	)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable		19,041			94,887			—			(103,928	)		10,000
Payment on notes payable		(42,775	)		(36,841	)		—			69,616			(10,000	)
Net cash provided by (used in) financing activities		(23,734	)		58,046			—			(34,312	)		—
Net increase (decrease) in cash and cash equivalents		(16,912	)		—			5,016			—			(11,896	)
Cash and cash equivalents, beginning of period		31,018			—			2,408			—			33,426
Cash and cash equivalents, end of period	$	14,106		$	—		$	7,424		$	—		$	21,530

	Nine Months Ended September 30, 2013
(In thousands)	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(39,924	)	$	6,573		$	(5,168	)	$	(1,405	)	$	(39,924	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation		7,910			14,514			4,398			—			26,822
Amortization – deferred financing costs		2,064			—			—			—			2,064
Amortization – other intangible assets		6,592			125			—			—			6,717
(Gain) loss on disposal of assets		967			5			9,690			—			10,662
Deferred income taxes		(647	)		925			—			—			278
Non-cash stock-based compensation		1,950			—			—			—			1,950
Equity in earnings of subsidiaries and affiliates		(986	)		—			—			986			-
Change in other operating items		27,150			(30,201	)		(31,048	)		419			(33,680	)
Net cash provided by (used in) operating activities		5,076			(8,059	)		(22,128	)		—			(25,111	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(11,024	)		(17,382	)		(3,852	)		—			(32,258	)
Proceeds from notes receivable		(35,721	)		(92,529	)		(33,901	)		162,151			—
Payment on notes receivable		13,721			95,999			32,680			(142,400	)		—
Other		14,944			—			30,000			—			44,944
Net cash provided by (used in) investing activities		(18,080	)		(13,912	)		24,927			19,751			12,686

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable		151,430			35,721			—			(162,151	)		25,000
Payments on notes payable		(138,679	)		(13,721	)		—			142,400			(10,000	)
Other		(1,333	)		—			—			—			(1,333	)
Net Cash provided by (used in) financings activities		11,418			22,000			—			(19,751	)		13,667
Net increase (decrease) in cash and cash equivalents		(1,586	)		29			2,799			—			1,242
Cash and cash equivalents, beginning of period		24,113			(29	)		2,667			—			26,751
Cash and cash equivalents, end of period	$	22,527		$	—		$	5,466		$	—		$	27,993