Exhibit 99.1
Restatement: Cash flows from operating activities in the consolidated statements of cash flows for the years ended December 31, 2006 and 2005 have been restated from amounts previously reported to properly separate the effects of exchange rate changes on cash, which were previously reflected in certain line items of the consolidated statements of cash flows for those years. The impact of this restatement was to increase (decrease) the reported cash flows from operating activities for 2006 and 2005 by approximately ($5.7) million and $4.6 million, respectively, and to reflect the effect of foreign exchange rates on cash as a reconciling item after cash provided by (used in) operating, investing and financing activities, before the total change in cash and cash equivalents, as an increase (decrease) in cash of $5.7 million and ($4.6) million for the years ended December 31, 2006 and 2005, respectively. There was no change in cash and cash equivalents from amounts previously reported at the end of those periods.
The results of this restatement on the recorded amounts and a disclosure within the 2006 and 2005 consolidated statements of cash flows are as follow (thousands of dollars):
For the year ended December 31, 2006 | For the year ended December 31, 2005 | ||||||||||||
As previously reported | As restated | As previously reported | As restated | ||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||||
Depreciation and amortization | $ | 9,942 | $ | 10,939 | $ | 9,865 | $ | 9,865 | |||||
Change in prepaid pension costs, net | 17,182 | 17,178 | 11,525 | 11,525 | |||||||||
Deferred taxes | 13,063 | 12,412 | 11,615 | 11,155 | |||||||||
Accounts receivable | 22,616 | 28,269 | (33,561 | ) | (33,560 | ) | |||||||
Inventories | (36,939 | ) | (35,477 | ) | (2,344 | ) | (2,344 | ) | |||||
Other current assets | 5,271 | 5,577 | (1,906 | ) | (1,906 | ) | |||||||
Accounts payable and accrued expenses | (46,438 | ) | (49,965 | ) | 9,134 | 9,482 | |||||||
Payroll and related expenses | 1,200 | 179 | (636 | ) | (636 | ) | |||||||
Other long-term liabilities | 1,757 | 1,548 | 15,111 | 15,257 | |||||||||
Other operating activities | 4,384 | (4,296 | ) | (3,640 | ) | 914 | |||||||
Net cash provided by operating activities of continuing operations | 25,891 | 20,217 | 57,783 | 62,372 | |||||||||
Net cash provided by (used in) continuing operations | (107,465 | ) | (113,139 | ) | 21,025 | 25,614 | |||||||
Effect of exchange rate changes on cash and cash equivalents | - | 5,674 | - | (4,589 | ) | ||||||||
Supplemental Information | |||||||||||||
Effect of exchange rates on cash and cash equivalents | 1,659 | - | (7,928 | ) | - |