Note 10 – 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

	March 31, 2015
(In thousands)	Parent		Guarantor Subsidiaries			Non-guarantor Subsidiaries		Eliminations			Total
ASSETS
Cash and cash equivalents	$	13,266	$	—		$	4,304	$	—		$	17,570
Customer and other receivables, net		49,841		26,667			6,157		—			82,665
Intercompany receivable		—		186,757			83,038		(269,795	)		—
Inventories		19,613		19,477			3,174		(301	)		41,963
Other current assets		7,330		1,250			4,552		—			13,132
Total current assets		90,050		234,151			101,225		(270,096	)		155,330
Property, plant and equipment, net		77,814		99,003			31,131		—			207,948
Goodwill		96,283		4,414			—		—			100,697
Other intangible assets, net		113,468		2,456			—		—			115,924
Investments in and advances to subsidiaries and affiliates		134,517		—			—		(134,517	)		—
Deferred income taxes		39,168		—			2,713		(39,168	)		2,713
Other non-current assets		6,130		345			9,804		—			16,279
TOTAL	$	557,430	$	340,369		$	144,873	$	(443,781	)	$	598,891
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$	17,981	$	35,974		$	11,096	$	—		$	65,051
Intercompany payable		70,129		172,638			27,329		(270,096	)		—
Accrued payroll and compensation		630		6,107			1,161		—			7,898
Accrued interest payable		5,122		—			—		—			5,122
Accrued and other liabilities		3,769		9,803			2,787		—			16,359
Total current liabilities		97,631		224,522			42,373		(270,096	)		94,430
Long term debt		326,497		—			—		—			326,497
Deferred and non-current income taxes		87,300		(25,918	)		974		(39,168	)		23,188
Other non-current liabilities		14,213		91,563			17,211		—			122,987
Stockholders' equity		31,789		50,202			84,315		(134,517	)		31,789
TOTAL	$	557,430	$	340,369		$	144,873	$	(443,781	)	$	598,891

	December 31, 2014
(In thousands)	Parent		Guarantor Subsidiaries			Non-guarantor Subsidiaries		Eliminations			Total
ASSETS
Cash and cash equivalents	$	22,710	$	—		$	7,063	$	—		$	29,773
Customer and other receivables, net		35,630		20,994			6,543		403			63,570
Intercompany receivables		191,272		5,086			53,055		(249,413	)		—
Inventories		18,693		21,352			3,423		(403	)		43,065
Other current assets		4,970		3,386			5,116		—			13,472
Total current assets		273,275		50,818			75,200		(249,413	)		149,880
Property, plant and equipment, net		78,603		101,648			31,932		—			212,183
Goodwill		96,283		4,414			—		—			100,697
Other intangible assets, net		115,465		2,498			—		—			117,963
Investments in and advances to subsidiaries and affiliates		128,372		—			—		(128,372	)		—
Other non-current assets		3,118		3,774			10,807		—			17,699
TOTAL	$	695,116	$	163,152		$	117,939	$	(377,785	)	$	598,422
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$	15,209	$	31,931		$	9,312	$	—		$	$56,452
Intercompany payable		249,407		—			6		(249,413	)		—
Accrued payroll and compensation		4,002		5,458			1,160		—			10,620
Accrued interest payable		12,428		—			—		—			12,428
Accrued and other liabilities		4,183		10,060			3,328		—			17,571
Total current liabilities		285,229		47,449			13,806		(249,413	)		97,071
Long term debt		323,234		—			—		—			323,234
Deferred and non-current income taxes		41,775		(20,736	)		332		—			21,371
Other non-current liabilities		14,075		93,245			18,623		—			125,943
Stockholders' equity		30,803		43,194			85,178		(128,372	)		30,803
TOTAL	$	695,116	$	163,152		$	117,939	$	(377,785	)	$	598,422

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended March 31, 2015
(In thousands)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
Net sales	$	119,499		$	89,243		$	31,770		$	(56,853	)	$	183,659
Cost of goods sold		107,236			82,017			30,027			(56,552	)		162,728
Gross profit		12,263			7,226			1,743			(301	)		20,931
Operating expenses		11,303			254			46			—			11,603
Income (loss) from operations		960			6,972			1,697			(301	)		9,328
Other income (expense):
Interest income (expense), net		(8,688	)		(54	)		392			—			(8,350	)
Equity in earnings of subsidiaries		7,613			—			—			(7,613	)		—
Other income (expense), net		(569	)		—			(603	)		—			(1,172	)
Income (loss) before income taxes from continuing operations		(684	)		6,918			1,486			(7,914	)		(194	)
Income tax (benefit) provision		(96	)		143			339			—			386
Income (loss) from continuing operations		(588	)		6,775			1,147			(7,914	)		(580	)
Discontinued operations, net of tax		—			—			(8	)		—			(8	)
Net income (loss)	$	(588	)	$	6,775		$	1,139		$	(7,914	)	$	(588	)

Comprehensive income (loss)	$	686		$	6,865		$	2,301		$	(9,166	)	$	686

	Three Months Ended March 31, 2014
(In thousands)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
Net sales	$	108,531		$	74,302		$	32,654		$	(48,703	)	$	166,784
Cost of goods sold		98,882			69,704			29,439			(48,264	)		149,761
Gross profit		9,649			4,598			3,215			(439	)		17,023
Operating expenses		10,122			280			52			—			10,454
Income (loss) from operations		(473	)		4,318			3,163			(439	)		6,569
Other income (expense):
Interest income (expense), net		(8,657	)		(61	)		298			—			(8,420	)
Equity in earnings of subsidiaries		5,673			—			—			(5,673	)		—
Other income (expense), net		(77	)		63			(516	)		—			(530	)
Income (loss) before income taxes from continuing operations		(3,534	)		4,320			2,945			(6,112	)		(2,381	)
Income tax provision		39			143			722			—			904
Income (loss) from continuing operations		(3,573	)		4,177			2,223			(6,112	)		(3,285	)
Discontinued operations, net of tax		—			—			(288	)		—			(288	)
Net income (loss)	$	(3,573	)	$	4,177		$	1,935		$	(6,112	)	$	(3,573	)

Comprehensive income (loss)	$	(3,240	)	$	4,164		$	2,270		$	(6,434	)	$	(3,240	)

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	Three Months Ended March 31, 2015
(In thousands)	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(588	)	$	6,775		$	1,139		$	(7,914	)	$	(588	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation		2,863			4,681			1,013			—			8,557
Amortization – deferred financing costs		620			—			—			—			620
Amortization – other intangible assets		1,997			42			—			—			2,039
Loss on disposal of assets		17			(18	)		—			—			(1	)
Deferred income taxes		30			—			—			—			30
Non-cash stock-based compensation		663			—			—			—			663
Equity in earnings of subsidiaries and affiliates		(7,613	)		—			—			7,613			—
Change in other operating items		(11,688	)		(8,972	)		(1,451	)		301			(21,810	)
Net cash provided by (used in) operating activities		(13,699	)		2,508			701			—			(10,490	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(2,388	)		(1,387	)		(296	)		—			(4,071	)
Proceeds from notes receivable		(24,726	)		(9,691	)		—			34,417			—
Payments on notes receivable		37,197			21,683			—			(58,880	)		—
Other		3,164			—			(3,164	)		—			—
Net cash provided by (used in) investing activities		13,247			10,605			(3,460	)		(24,463	)		(4,071	)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable		20,691			24,726			—			(34,417	)		11,000
Payments on notes payable		(29,683	)		(37,197	)		—			58,880			(8,000	)
Principal payments on capital leases		—			(642	)		—			—			(642	)
Net cash provided by (used in) financing activities		(8,992	)		(13,113	)		—			24,463			2,358
Net decrease in cash and cash equivalents		(9,444	)		—			(2,759	)		—			(12,203	)
Cash and cash equivalents, beginning of period		22,710			—			7,063			—			29,773
Cash and cash equivalents, end of period	$	13,266		$	—		$	4,304		$	—		$	17,570

	Three Months Ended March 31, 2014
(In thousands)	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(3,573	)	$	4,177		$	1,935		$	(6,112	)	$	(3,573	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation		2,736			4,456			1,061			—			8,253
Amortization – deferred financing costs		620			—			—			—			620
Amortization – other intangible assets		1,977			42			—			—			2,019
(Gain) loss on disposal of assets		(93	)		57			29			—			(7	)
Deferred income taxes		182			—			—			—			182
Non-cash stock-based compensation		499			—			—			—			499
Equity in earnings of subsidiaries and affiliates		(5,673	)		—			—			5,673			-
Change in other operating items		(8,538	)		(14,798	)		(613	)		439			(23,510	)
Net cash provided by (used in) operating activities		(11,863	)		(6,066	)		2,412			—			(15,517	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(3,651	)		(2,956	)		(102	)		—			(6,709	)
Proceeds from notes receivable		(29,370	)		(28,742	)		—			58,112			—
Payment on notes receivable		11,607			19,561			—			(31,168	)		—
Other		0			1,235			—			—			1,235
Net cash provided by (used in) investing activities		(21,414	)		(10,902	)		(102	)		26,944			(5,474	)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable		38,742			29,370			—			(58,112	)		10,000
Payments on notes payable		(19,561	)		(11,607	)		—			31,168			—
Other		—			(795	)		—			—			(795	)
Net Cash provided by (used in) financings activities		19,181			16,968			—			(26,944	)		9,205
Net increase (decrease) in cash and cash equivalents		(14,096	)		—			2,310			—			(11,786	)
Cash and cash equivalents, beginning of period		31,018			—			2,408			—			33,426
Cash and cash equivalents, end of period	$	16,922		$	—		$	4,718		$	—		$	21,640