BGF Industries 10-K 2006 FY Annual report

Exhibit 99.1

BGF Industries, Inc.

Reconciliation of Net Income to Adjusted EBITDA

(dollars in thousands)

	Fiscal Year Ended December 31,
	2006		2005			2004		2003 (as restated)			2002			2001
Net income (loss)	$	6,961	$	(4,935	)	$	1,881	$	(3,436	)	$	(140,573	)	$	(3,078	)
Depreciation and amortization		4,765		10,018			5,494		6,039			12,966			8,744
Interest		11,029		11,333			12,025		13,812			13,926			13,972
Taxes		596		30			16		—			6,835			(1,868	)
Non-cash non-recurring charges:
Reserve on loan to parent		—		—			—		—			97,711			—
Asset impairment charge		367		—			712		—			5,816			—
Retirement settlement charge		—		—			—		—			1,386			—
Adjusted EBITDA(1)	$	23,718	$	16,446		$	20,128	$	16,415		$	(1,933	)	$	17,770

(1) BGF reports EBITDA results, which are non-GAAP, as a complement to results provided in accordance with accounting principles generally accepted in the United States (GAAP) and believes such information provides additional measurement of performance. The definition of Adjusted EBITDA is that used in the Loan and Security Agreement by and among BGF Industries, Inc. as Borrower, The Lenders that are Signatories and Wells Fargo Foothill, Inc. as the Arranger and Administrative Agent (“WFF Loan”).