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

	September 30, 2015
(In thousands)	Parent		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Eliminations		Total
ASSETS
Cash and cash equivalents	$	26,212	$	—	$	12,913	$	—	$	39,125
Customer and other receivables, net		40,728		16,896		5,763		348		63,735
Intercompany receivable		2,834		38,687		88,825		(130,346)		—
Inventories		18,930		15,806		2,307		(348)		36,695
Other current assets		7,165		1,891		2,135		—		11,191
Total current assets		95,869		73,280		111,943		(130,346)		150,746
Property, plant and equipment, net		77,779		95,956		30,043		—		203,778
Goodwill		96,283		4,414		—		—		100,697
Other intangible assets, net		109,417		4,275		—		—		113,692
Investments in and advances to subsidiaries and affiliates		176,217		—		—		(176,217)		—
Deferred income taxes		—		35,640		2,490		(35,640)		2,490
Other non-current assets		5,709		345		14,814		—		20,868
TOTAL	$	561,274	$	213,910	$	159,290	$	(342,203)	$	592,271
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$	18,315	$	33,133	$	8,444	$	—	$	59,892
Intercompany payable		94,237		—		36,109		(130,346)		—
Accrued payroll and compensation		923		5,887		1,222		—		8,032
Accrued interest payable		5,073		—		—		—		5,073
Accrued and other liabilities		5,205		9,870		3,530		—		18,605
Total current liabilities		123,753		48,890		49,305		(130,346)		91,602
Long term debt		322,022		—		—		—		322,022
Deferred and non-current income taxes		45,759		10,615		937		(35,640)		21,671
Other non-current liabilities		14,056		70,965		16,271		—		101,292
Stockholders' equity		55,684		83,440		92,777		(176,217)		55,684
TOTAL	$	561,274	$	213,910	$	159,290	$	(342,203)	$	592,271

	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 September 30, 2015
(In thousands)	Parent		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Eliminations		Total
Net sales	$	123,912	$	66,262	$	30,576	$	(57,322)	$	163,428
Cost of goods sold		117,925		58,200		26,014		(56,974)		145,165
Gross profit		5,987		8,062		4,562		(348)		18,263
Operating expenses		10,363		369		33		—		10,765
Income (loss) from operations		(4,376)		7,693		4,529		(348)		7,498
Other income (expense):
Interest income (expense), net		(8,749)		(47)		547		—		(8,249)
Equity in earnings of subsidiaries		10,038		—		—		(10,038)		—
Other income (expense), net		(384)		—		(758)		—		(1,142)
Income (loss) before income taxes from continuing operations		(3,471)		7,646		4,318		(10,386)		(1,893)
Income tax (benefit) provision		(5,291)		925		695		—		(3,671)
Income (loss) from continuing operations		1,820		6,721		3,623		(10,386)		1,778
Discontinued operations, net of tax		—		—		42		—		42
Net income (loss)	$	1,820	$	6,721	$	3,665	$	(10,386)	$	1,820

Comprehensive income (loss)	$	(1,439)	$	2,866	$	4,735	$	(7,601)	$	(1,439)

	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

	Nine Months Ended September 30, 2015
(In thousands)	Parent		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Eliminations		Total
Net sales	$	379,041	$	234,426	$	94,462	$	(175,462)	$	532,467
Cost of goods sold		348,803		208,191		84,778		(174,405)		467,367
Gross profit		30,238		26,235		9,684		(1,057)		65,100
Operating expenses		33,100		873		117		—		34,090
Income (loss) from operations		(2,862)		25,362		9,567		(1,057)		31,010
Other income (expense):
Interest income (expense), net		(26,191)		(152)		1,390		—		(24,953)
Equity in earnings of subsidiaries		31,950		—		—		(31,950)		—
Other income (expense), net		(663)		—		(1,735)		—		(2,398)
Income (loss) before income taxes from continuing operations		2,234		25,210		9,222		(33,007)		3,659
Income tax (benefit) provision		(5,337)		578		1,096		—		(3,663)
Income (loss) from continuing operations		7,571		24,632		8,126		(33,007)		7,322
Discontinued operations, net of tax		—		—		249		—		249
Net income (loss)	$	7,571	$	24,632	$	8,375	$	(33,007)	$	7,571

Comprehensive income (loss)	$	23,152	$	37,765	$	10,763	$	(48,528)	$	23,152

	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

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	Nine Months Ended September 30, 2015
(In thousands)	Parent Company		Guarantor Subsidiaries		Non-guarantor Subsidiaries		Eliminations		Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	7,571	$	24,632	$	8,375	$	(33,007)	$	7,571
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation		8,302		14,142		2,882		—		25,326
Amortization – deferred financing costs		1,859		—		—		—		1,859
Amortization – other intangible assets		6,048		126		—		—		6,174
Loss on disposal of assets		256		39		(55)		—		240
Deferred income taxes		(5,299)		435		—		—		(4,864)
Non-cash stock-based compensation		2,147		—		—		—		2,147
Equity in earnings of subsidiaries and affiliates		(31,950)		—		—		31,950		—
Change in other operating items		44,418		(52,797)		(36)		1,057		(7,358)
Net cash provided by (used in) operating activities		33,352		(13,423)		11,166		—		31,095

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(7,499)		(7,449)		(931)		—		(15,879)
Proceeds from notes receivable		3,518		(28,217)		(33,901)		58,600		—
Payments on notes receivable		(26,268)		75,191		32,680		(81,603)		—
Other		—		(1,903)		—		—		(1,903)
Net cash provided by (used in) investing activities		(30,249)		37,622		(2,152)		(23,003)		(17,782)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable		15,312		64,288		—		(58,600)		21,000
Payments on notes payable		(18,053)		(86,550)		—		81,603		(23,000)
Principal payments on capital leases		—		(1,937)		—		—		(1,937)
Other		3,140		—		(3,164)		—		(24)
Net cash provided by (used in) financing activities		399		(24,199)		(3,164)		23,003		(3,961)
Net increase in cash and cash equivalents		3,502		—		5,850		—		9,352
Cash and cash equivalents, beginning of period		22,710		—		7,063		—		29,773
Cash and cash equivalents, end of period	$	26,212	$	—	$	12,913	$	—	$	39,125

	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
(Gain) 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)
Proceeds from notes receivable		36,698		(106,680)		(33,946)		103,928		—
Payment on 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
Payments on notes payable		(42,775)		(36,841)		—		69,616		(10,000)
Other		—		—		—		—		—
Net cash provided by (used in) financings 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