Exhibit 99.2
Monthly Operating Report Required Documents Schedule of Cash Receipts and Disbursements Bank Reconciliation Copies of bank statements Cash disbursements journals Statement of Operations Balance Sheet Status of Post-Petition Taxes Copies of IRS Form 6123 or payment receipt Copies of tax returns filed during reporting period Summary of Unpaid Post-Petition Debts Listing of aged accounts payable Accounts Receivable Reconciliation and Aging Debtor Questionnaire Form No. MOR-1 MOR - 1 MOR-2 MOR-3 MOR-4 MOR-4 MOR-5 MOR-5 Document Explanation Attached Attached Yes Yes Yes Yes Yes Yes Yes Yes <?xml:namespace prefix = v ns = "urn:schemas-microsoft-com:vml" /><?xml:namespace prefix = w ns = "urn:schemas-microsoft-com:office:word" />Signature of Debtor Date Signature of Joint Debtor Date April 27, 2007 Signature of Authorized Individual W. H. Hardman, Jr. Chief Financial Officer Printed Name of Authorized Individual
Title of Authorized Individual
Sales Government Sales Twill Sales Total Net Sales Opening Cash Balance Cash Receipts: Accounts Receivable Collections- Collections Basis Accounts Receivable Collections- Maturity Basis Nylon Payments/Other Total Cash Receipts Operating Disbursements : A / P Disbursements Wires Out
Net Wages and Salaries Total Operating Disbursements Other (Sources)/ Uses : (Inc) / Dec in L/C's Transfers to Delta Mills Marketing Co.
Professional Fees Transfers to Delta Woodside Employee Vacation Accrual and Severance Payouts Vendor Deposits 0-Mar 17-Mar 24-Mar 31-Mar TOTAL $ - - 36 326 141 38 540 2,854 5,156 5,645 5,767 413 369 68 183 1,033 - 676 - - 787 1,463 13 - - 135 1 149 427 1,045 202 971 2,645 141 0 39 11 191 4763 47 62 220 150 102 130 113 495 338 165 216 187 906 88 880 (14) 784 1,739 88 968 955 1,739 750 - - - - - 750 - - - 0 0 1 - - - 361 361 - - - 6 - - 6- - - - - - - - - - - - - - (184) 142 (104) 16 (130)
- - - - - - - - - - - - -
566 142 (97) 377 987 (477) 739 84 407 752 (477) 261 345 752
Delta Woodside Industries, Inc. Transfers (In)/Out from Delta Mills - - - - (6) - Bank Fees - - - - - - - Other - - - - 6 - Total Disbursements - Delta Woodside - - - - 6 - Delta Woodside Net Cash Flow - - - - - - -Accumulated - - - - - - Delta Mills Marketing, Inc. Transfers (In)/Out from Delta Mills - - - - (0) (0) Bank Fees - - - - - - - -Payroll - - - - 0 - Vacation and Severance Payouts - - - - - - -
Other - - - 0 0 Total Di
sbursements - Delta Woodside - - - - 0 0 Delta Woodside Net Cash Flow - - - - - - Accumulated - - - - - - -
Bank Reconciliations I attest that each of the debtors' bank accounts is reconciled to monthly bank statements. The company's standard practice is to ensure that each bank account is reconciled to monthly bank statements for each calendar month within 30 days after the quarter end. Also attached is an example of the cash management report that the debtor prepares on all of its operating bank acc
ounts other than petty cash on a daily basis. W.H. Hardman, Jr. Chief Financial Officer Delta Mills, et al.
DELTA MILLS, INC. INCOME STATEMENT Month Ended 3/31/2007 Net Sales 567,758 Cost of goods sold (307,440) Gross profit (loss) 260,318 Selling, general and administrative expenses (1,355,184) Impairment and restructuring expenses - Other income (expense) 17,504 OPERATING LOSS (1,077,362) Interest expense (21,125) Gain on extinguishment of debt - LOSS BEFORE INCOME TAXES (1,098,487) Income tax expense / (benefit) - NET LOSS $ (1,098,487)
BALANCE SHEET AS OF 3/31/07 (In Thousands, Except Share Data) Delta Mills, Inc. As of 3/31/07 ASSETS CURRENT ASSETS Cash and cash equivalents $ 8,797 Accounts receivable: Factor and other 4,110 Less allowances for returns 30 4,080 Inventories Finished goods 712 Work in process 0 Raw materials and supplies 856 1,568 Deferred income taxes 493 Other assets 989 TOTAL CURRENT ASSETS 15,926 PROPERTY, PLANT AND EQUIPMENT, at cost 24,006 Less accumulated depreciation 14,629 9,376 DEFERRED LOAN COSTS, less accumulated depreciation of $5,966,000 (2006)and $5,856,000 (2005) 44 TOTAL ASSETS $ 25,347 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Trade accounts payable - Post Petition $ 2 Trade accounts payable checks outstanding 406 Revolving credit facility0 Accrued income taxes payable 12,394 Payable to Affiliate Delta Mills Marketing, Inc. 2,000 Payable to Affiliate Delta Woodside Industries, Inc. 3,669 Payable to Affiliate Delta Mills, Inc. 0 Accrued employee compensation 85 Accrued restructuring expenses 0 Accrued and sundry liabilities(3) TOTAL CURRENT LIABILITIES 18,552 LIABLITIES SUBJECT TO COMPROMISE: Notes Payable30,941 Trade Accounts Payable - Pre Petition 3,550 Accrued Interest - Notes Payable 1,836 Total Liabilities Subject to Compromise 36,327 NONCURRENT DEFERRED INCOME TAXES 2,061 SHAREHOLDERS' EQUITY Common Stock -- par value $.01 a share -- authorized 3,000 shares, issued and outstanding 100 shares 1 Additional paid-in capital 51,791 Retained earnings(deficit) (83,386) TOTAL SHAREHOLDERS' EQUITY (31,593) COMMITMENTS AND CONTINGENCIES 0 TO<?xml:namespace prefix = v /><?xml:namespace prefix = w />TAL LIABILITIES AND SHAREHOLDERS'S EQUITY $ 25,347
Status of Post-petition Taxes Beginning Accrued Liability Balance Liability Incurred During PeriodDisbursements to Taxing Authorities Net Change in Accrued Balance Ending Accrued Liability Balance Federal Withholding 3,231.45 41,277.84 (44,509.29) (3,231.45) (0.00) <?xml:namespace prefix = st1 />South Carolina Withholding 1,292.05 21,843.78 (23,135.83) (1,292.05) (0.00) FICA - Employee 1,578.76 32,201.65 (33,780.41) (1,578.76) (0.00) FICA - Employer 1,578.76 32,201.65 (33,780.41) (1,578.76) (0.00) Total Taxes 7,681.02 127,524.92 (135,205.94) (7,681.02) (0.00) Number of Days Past Due Summary of Unpaid Post-Petition Debts Current0-30 31-60 61-90 Over 90 Total Accounts Payable 181.042,500.00 - - - - - - 2,681.04 Total Post-Petition Debts 181.042,500.00 - - - - - - 2,681.04
In re: Delta Mills UNITED STATES BANKRUPTCY COURTCase no: 06-11144 Marketing, Inc. DISTRICT OF <?xml:namespace prefix = st1 />DELAWARE 3/4/07 - 3/31/07 Monthly Operating Report Required Documents Schedule of Cash Receipts and Disbursements Bank Reconciliation Copies of bank statements Cash disbursements journals Statement of Operations Balance Sheet Status of Post-Petition Taxes Copies of IRS Form 6123 or payment receipt Copies of tax returns filed during reporting period Summary of Unpaid Post-Petition Debts Listing of aged accounts payable Accounts Receivable Reconciliation and Aging Debtor Questionnaire <?xml:namespace prefix = v /><?xml:namespace prefix = w />Signature of Debtor Document Explanation Form No. Attached Attached MOR - 1 Yes MOR - 1 Yes MOR - 2 Yes MOR - 3 Yes MOR - 4 Yes MOR - 4 Yes MOR - 5 N/A MOR - 5 Yes Date Signature of Joint Debtor Date Signature of Authorized Individual April 27, 2007 W. H. Hardman, Jr. Chief Financial Officer Printed Name of Authorized Individual Title of Authorized Individual
Delta Mills, Inc. Sales Government Sales Twill Sales Total Net Sales Opening Cash Balance Cash Receipts: Accounts Receivable Collections- Collections Basis Accounts Receivable Collections- Maturity Basis Nylon Payments/Other Total Cash Receipts Operating Disbursements : A / P Disbursements
Wires Out Net Wages and Salaries Total Operating Disbursements Other (Sources)/ Uses : (Inc) / Dec in L/C's Transfers to Delta Mills Marketing Co. Professional Fees Transfers to Delta Woodside Employee Vacation Accrual and Severance Payouts Vendor Deposits 5,156 5,645 5,767, 413 369 68 183, 1,033 - 676 - - 787, 1,463 13 - 135 1, 149 427 1,045 202 971, 2,645 141 0 39 11, 191 47 63 47 62, 220 150 102 130 113, 495 338 165 216 187, 906 , 88, 880, (14), 784, 1,739 88, 968, 955, 1,739, 750 - - - - -, 750 - - - 0 0, 1 - - - - - 361, 361 - - - 6 -, 6 - - - - - -, - - - - - - -, - (184) 142 (104) 16, (130) - - - - - -, - - - - - - -, - 566 142 (97) 377, 987 (477), 739, 84, 407, 752 (477), 261, 345, 752, Delta Woodside Industries, Inc.
Transfers (In)/Out from Delta Mills - - - - (6) - Bank Fees - - - - - - - Other- - - 6 - Total Disbursements - Delta Woodside - - - - 6 - Delta Woodside Net Cash Flow - - - - - - - Accumulated - - - - - - Delta Mills Marketing, Inc.Transfers (In)/Out from Delta Mills - - - - (0) (0) Bank Fees - - - - - - - Payroll - - - - 0 - Vacation and Severance Payouts - - - - - - - Other- - - 0 0 Total Disbursements - Delta Woodside - - - - 0 0 Delta Woodside Net Cash Flow - - - - - - - Accumulated - - - - - -
Bank Reconciliations I attest that each of the debtors' bank accounts is reconciled to monthly bank statements. The company's standard practice is to ensure that each bank account is reconciled to monthly bank statements for each calendar month within 30 days after the quarter end. Also attached is an example of the cash management report that the debtor prepares on all of its operating bank accounts other than petty cash on a daily basis. W.H. Hardman, Jr. Chief Financial Officer Delta Mills, et al.
DELTA MILLS MARKETING, INC. INCOME STATEMENT Month Ended 3/31/2007 Net Sales - Cost of goods sold - Gross profit (loss) - Selling, general and administrative expenses (123,229) Impairment and restructuring expenses - Other income (expense) - OPERATING LOSS(123,229) Interest expense - Gain on extinguishment of debt - LOSS BEFORE INCOME TAXES (123,229) Income tax expense / (benefit) - NET LOSS $ (123,229)
BALANCE SHEET AS OF 3/31/07 (In Thousands, Except Share Data) Delta Mills Marketing Inc. As of 3/31/07 ASSETS CURRENT ASSETS Cash and cash equivalents $ - Accounts receivable: - Factor and other - Less allowances for returns - - Inventories Finished goods - Work in process - Raw materials and supplies - - Deferred income taxes 55 Other assets - TOTAL CURRENT ASSETS 55 PROPERTY, PLANT AND EQUIPMENT, at cost 265 Less accumulated depreciation 264 0 DEFERRED LOAN COSTS, less accumulated depreciation of $5,966,000 (2006)and $5,856,000 (2005) - TOTAL ASSETS $ 55 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Trade accounts payable - Post Petition$ - Trade accounts payable checks outstanding 0 Revolving credit facility - Accrued income taxes payable 1,301 Payable to Affiliate Delta Mills Marketing, Inc. - Payable to Affiliate Delta Woodside Industries, Inc. - Payable From Affiliate Delta Mills, Inc. (2,000) Accrued employee compensation 24 Accrued restructuring expenses - Accrued and sundry liabilities 29 TOTAL CURRENT LIABILITIES(645) LIABLITIES SUBJECT TO COMPROMISE: Notes Payable Trade Accounts Payable - Pre Petition 2 Total Liabilities Subject to Compromise 2 NONCURRENT DEFERRED INCOME TAXES (1,514) SHAREHOLDERS' EQUITY Common Stock -- par value $.01 a share -- authorized 3,000 shares, issued and outstandi
ng 100 shares 0 Additional paid-in capital - Retained earnings(deficit) 2,212 TOTAL SHAREHOLDERS' EQUITY 2,212 COMMITMENTS AND CONTINGENCIES - - TOTAL LIABILITIES AND SHAREHOLDERS'S EQUITY $ 55
Status of Post-petition Taxes Beginning Accrued Liability Balance Liability Incurred During PeriodDisbursements to Taxing Authorities Net Change in Accrued Balance Ending Accrued Liability Balance Federal Withholding 3,245.18 36,923.82 (40,169.00) (3,245.18) - South Carolina Withholding 806.435,147.27 (5,953.70) (806.43) - California Withholding - - 400.00(400.00) - - - FICA - Employee 135.419,375.67 (9,511.08) (135.41) 0.00 FICA - Employer135.419,375.67 (9,511.08) (135.41) 0.00 Georgia Withholding - - - - - - - - - New York City and State Withholding - - 3,531.00 (3,531.00) - - - Total Taxes 4,322.43 64,753.43 (69,075.86) (4,322.43) 0.00 Number of Days Past DueSummary of Unpaid Post-Petition Debts Accounts Payable Rent/Leases - Building Total Post-Petition Debts Current0-30 - - - - - - 31-60 61-90 - - - - - -
Monthly Operating Report Document Explanation Required Documents Form No. Attached Attached Schedule of Cash Receipts and Disbursements MOR - 1 Yes Bank Reconciliation MOR - 1 Yes Copies of bank statements Cash disbursements journals Statement of Operations MOR-2 Yes Balance Sheet MOR-3 Yes Status of Post-Petition Taxes MOR-4 Yes Copies of IRS Form 6123 or payment receipt Copies of tax returns filed during reporting period Summary of Unpaid Post-Petition Debts MOR-4 Yes Listing of aged accounts payable Accounts Receivable Reconciliation and AgingMOR-5 N/A Debtor Questionnaire MOR-5 Yes Signature of Debtor Date Signature of Joint Debtor D
ate April 27, 2007 Signature of Authorized Individu W. H. Hardman, Jr. Chief Financial Officer Printed Name of Authorized Individual Title of Authorized Individual
Delta Mills, Inc. Sales Government Sales Twill Sales Total Net Sales Opening Cash Balance Cash Receipts: Accounts Receivable Collections- Collections Basis Accounts Receivable Collections- Maturity Basis Nylon Payments/Other Total Cash Receipts Operating Disbursements : A / P Disbursements Wires Out Net Wages and Salaries Total Operating Disbursements Other (Sources)/ Uses : (Inc) / Dec in L/C's Transfers to Delta Mills Marketing Co. Professional Fees Transfers to Delta Woodside Employee Vacation Accrual and Severance $ - - 36 326 141 38 540 2,854 5,156 5,645 5,767 413 369 68 183 1,033 - 676 - - 787 1,463 13 - - 135 1 149 427 1,045 202 971 2,645 141 0 39 11 191 47 63 47 62 220 150 102 130 113 495 338 165 216 187 906
88 880 (14) 784 1,739 88 968 955 1,739 750 - - - - - - 750 - - - 0 0 1 - - - - - 361 361 - - - 6 - - 6 - - - - - - - - -- - - - - - - - (184) 142 (104) 16 (130) - - - - - - - -
- - - - - - - 566 142 (97) 377 987 (477) 739 84 407 752 (
477) 261 345 752 Delta Woodside Industries, Inc. Transfers (In)/Out from Delta Mills - - - - (6) - Bank Fees - - - - - - - Other- - - 6 - Total Disbursements - Delta Woodside - - - - 6 - Delta Woodside Net Cash Flow - - - - - - - Accumulated - - - - - - - Delta Mills Marketing, Inc. Transfers (In)/Out from Delta Mills - - - - (0) (0) Bank Fees - - - - - - - Payroll - - - - 0 - Vacation and Severance Payouts - - - - - - - Other- - - 0 0 Total Disbursements - Delta Woodside - - - - 0 0 Delta Woodside Net Cash Flow Accumulated - - - - - -
Bank Reconciliations I attest that each of the debtors' bank accounts is reconciled to monthly bank statements. The company's standard practice is to ensure that each bank account is reconciled to monthly bank statements for each calendar month within 30 days after the quarter end. Also attached is an example of the cash management report that the debtor prepares on all of its operating bank accounts other than petty cash on a daily basis. W.H. Hardman, Jr. Chief Financial Officer Delta Mills, et al.
DELTA WOODSIDE INDUSTRIES, INC. INCOME STATEMENT Month Ended 3/31/2007 Net Sales - Cost of goods sold - Gross profit (loss) - Selling, general and administrative expenses - Impairment and restructuring expenses - Other income (expense) - OPERATING LOSS- Interest expense (428) Gain on extinguishment of debt - LOSS BEFORE INCOME TAXES (428) Income tax expense / (benefit) - NET LOSS $ (428)
BALANCE SHEET AS OF 3/31/07 (In Thousands, Except Share Data) Delta Woodside Industries, Inc. As of 3/31/07 ASSETS CURRENT ASSETS Cash and cash equivalents $ 0 Accounts receivable: 0 Factor and other 0 Less allowances for returns 0 - Inventories Finished goods 0 Work in process 0 Raw materials and supplies 0 - Deferred income taxes (248) Other assets (0) TOTAL CURRENT ASSETS (248) PROPERTY, PLANT AND EQUIPMENT, at cost 0 Less accumulated depreciation 0 - DEFERRED LOAN COSTS, less accumulated depreciation of $5,966,000 (2006)and $5,856,000 (2005) 0 TOTAL ASSETS $ (248) LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Trade accounts payable - Post Petition $ - Trade accounts payable checks outstanding 0 Revolving credit facility 0 Accrued income taxes payable (13,416) Payable to Affiliate Delta Mills Marketing, Inc. 0 Payable to Affiliate Delta Woodside Industries, Inc. 0 Payable to Affiliate Delta Mills, Inc. (3,669) Accrued employee compensation 0 Accrued restructuring expenses 0 Accrued and sundry liabilities94 TOTAL CURRENT LIABILITIES (16,990) LIABLITIES SUBJECT TO COMPROMISE: Notes Payable 0 Trade Accounts Payable - Pre Petition 0 Total Liabilities Subject to Compromise 0 NONCURRENT DEFERRED INCOME TAXES (248) SHAREHOLDERS' EQUITY Common Stock -- par value $.01 a share -- authorized 3,000 shares, issued and outstanding 100 shares 59 Additional paid-in capital 35,357 Retained earnings(deficit) (18,425) TOTAL SHAREHOLDERS' EQUITY 16,991 COMMITMENTS AND CONTINGENCIES 0 TOTAL LIABILITIES AND SHAREHOLDERS'S EQUITY $ (248)
Status of Post-petition Taxes Beginning Accrued Liability Incurred Disbursements to Net Change in Ending Accrued Liability Balance During Period Taxing Authorities Accrued Balance Liability Balance North Carolina Department of Revenue 292,000.00 - - (5,800.00) (5,800.00)286,200.00 Total Taxes 292,000.00 - - (5,800.00) (5,800.00) 286,200.00 Number of Days Past Due <?xml:namespace prefix = v /><?xml:namespace prefix = w />Summary of Unpaid Post-Petition Debts Current0-30 31-60 61-90 Over 90 Total Accounts Payable - - - - - - - - - - - Total Post-Petition Debts - - - - - - - - - - -
