Libbey (LBY) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Libbey Inc.
Condensed Consolidating Statement of Operations
(dollars in thousands)
(unaudited)

	Three months ended June 30, 2006
	Libbey Inc.			Libbey Glass			Subsidiary		Non-Guarantor
	(Parent)			(Issuer)			Guarantors		Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	97,795		$	28,735	$	34,538		$	(3,070	)	$	157,998
Freight billed to customers		—			159			391		376			—			926
Total revenues		—			97,954			29,126		34,914			(3,070	)		158,924
Cost of sales		—			77,219			24,053		32,550			(3,070	)		130,752
Gross profit		—			20,735			5,071		2,364			—			28,172
Selling, general, and administrative expenses		—			14,294			2,003		3,399			—			19,696
Special charges		—			—			—		12,587			—			12,587
Income (loss) from operations		—			6,441			3,068		(13,622	)		—			(4,111	)
Equity earnings (loss) — pretax		—			—			328		593			—			921
Other (expense) income		—			(331	)		185		(761	)		—			(907	)
Earnings (loss) before interest and income taxes and minority interest		—			6,110			3,583		(13,790	)		—			(4,097	)
Interest expense		—			7,984			1		2,215			—			10,200
Earnings (loss) before income taxes and minority interest		—			(1,874	)		3,582		(16,005	)		—			(14,297	)
Income taxes		—			(620	)		1,182		(5,282	)		—			(4,720	)
Net income (loss) before minority interest		—			(1,254	)		2,400		(10,723	)		—			(9,577	)
Minority interest and equity in net income (loss) of subsidiaries		(9,569	)		(8,315	)		—		8			17,884			8
Net income (loss)	$	(9,569	)	$	(9,569	)	$	2,400	$	(10,715	)	$	17,884		$	(9,569	)
The following represents the total special charges included in the above Statement of Operations (see note 6 in Form 10 Q for the quarter ended June 30, 2006 for further details):
Special charges included in:
Cost of sales				$	—		$	—	$	2,543		$	—		$	2,543
Special charges					—			—		12,587			—			12,587
Interest expense					3,490			—		1,416			—			4,906
Total pretax special charges				$	3,490		$	—	$	16,546		$	—		$	20,036
Special charges net of tax				$	2,338		$	—	$	11,086		$	—		$	13,424

E-1

Libbey Inc.
Condensed Consolidating Statement of Operations
(dollars in thousands)
(unaudited)

	Three months ended June 30, 2005
	Libbey Inc.			Libbey Glass			Subsidiary			Non-Guarantor
	(Parent)			(Issuer)			Guarantors			Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	91,183		$	29,405		$	24,190		$	(240	)	$	144,538
Freight billed to customers		—			159			307			15			—			481
Total revenues		—			91,342			29,712			24,205			(240	)		145,019
Cost of sales		—			73,099			23,985			21,119			(240	)		117,963
Gross profit		—			18,243			5,727			3,086			—			27,056
Selling, general, and administrative expenses		—			15,512			2,271			2,584			—			20,367
Special charges		—			3,510			687			—			—			4,197
Income (loss) from operations		—			(779	)		2,769			502			—			2,492
Equity earnings (loss) — pretax		—			—			271			(1,023	)		—			(752	)
Other (expense) income		—			433			(31	)		29			—			431
Earnings (loss) before interest and income taxes and minority interest		—			(346	)		3,009			(492	)		—			2,171
Interest expense		—			2,410			—			1,054			—			3,464
Earnings (loss) before income taxes and minority interest		—			(2,756	)		3,009			(1,546	)		—			(1,293	)
Income taxes		—			(910	)		993			(510	)		—			(427	)
Net income (loss) before minority interest		—			(1,846	)		2,016			(1,036	)		—			(866	)
Minority interest and equity in net income (loss) of subsidiaries		(870	)		976			—			(4	)		(106	)		(4	)
Net income (loss)	$	(870	)	$	(870	)	$	2,016		$	(1,040	)	$	(106	)	$	(870	)
The following represents the total special charges included in the above Statement of Operations (see note 6 in Form 10 Q for the quarter ended June 30, 2006 for further details):
Special charges included in:
Cost of sales				$	867		$	—		$	—		$	—		$	867
Selling, general and administrative expenses					1,347			—			—			—			1,347
Special charges					3,510			687			—			—			4,197
Total pretax special charges				$	5,724		$	687		$	—		$	—		$	6,411
Special charges net of tax				$	3,835		$	460		$	—		$	—		$	4,295

E-2

Libbey Inc.
Condensed Consolidating Statement of Operations
(dollars in thousands)
(unaudited)

	Six months ended June 30, 2006
	Libbey Inc.			Libbey Glass			Subsidiary		Non-Guarantor
	(Parent)			(Issuer)			Guarantors		Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	182,430		$	55,559	$	58,134		$	(3,259	)	$	292,864
Freight billed to customers		—			308			691		384						1,383
Total revenues		—			182,738			56,250		58,518			(3,259	)		294,247
Cost of sales		—			148,062			48,576		50,620			(3,329	)		243,929
Gross profit		—			34,676			7,674		7,898			70			50,318
Selling, general, and administrative expenses		—			29,007			3,442		6,333			—			38,782
Special charges		—			—			—		12,587			—			12,587
Income (loss) from operations		—			5,669			4,232		(11,022	)		70			(1,051	)
Equity earnings (loss) — pretax		—			—			612		1,374			—			1,986
Other (expense) income		—			247			58		(816	)		—			(511	)
Earnings (loss) before interest and income taxes and minority interest		—			5,916			4,902		(10,464	)		70			424
Interest expense		—			10,343			2		3,464			—			13,809
Earnings (loss) before income taxes and minority interest		—			(4,427	)		4,900		(13,928	)		70			(13,385	)
Income taxes		—			(1,463	)		1,617		(4,596	)		23			(4,419	)
Net income (loss) before minority interest		—			(2,964	)		3,283		(9,332	)		47			(8,966	)
Minority interest and equity in net income (loss) of subsidiaries		(9,054	)		(6,090	)		—		(88	)		15,144			(88	)
Net income (loss)	$	(9,054	)	$	(9,054	)	$	3,283	$	(9,420	)	$	15,191		$	(9,054	)
The following represents the total special charges included in the above Statement of Operations (see note 6 in Form 10 Q for the quarter ended June 30, 2006 for further details):
Special charges included in:
Cost of sales				$	—		$	—	$	2,543		$	—		$	2,543
Special charges					—			—		12,587			—			12,587
Interest expense					3,490			—		1,416			—			4,906
Total pretax special charges				$	3,490		$	—	$	16,546		$	—		$	20,036
Special charges net of tax				$	2,338		$	—	$	11,086		$	—		$	13,424

E-3

Libbey Inc.
Condensed Consolidating Statement of Operations
(dollars in thousands)
(unaudited)

	Six months ended June 30, 2005
	Libbey Inc.			Libbey Glass			Subsidiary			Non-Guarantor
	(Parent)			(Issuer)			Guarantors			Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	172,083		$	55,645		$	47,079		$	(485	)	$	274,322
Freight billed to customers		—			290			666			22						978
Total revenues		—			172,373			56,311			47,101			(485	)		275,300
Cost of sales		—			141,768			44,351			41,592			(506	)		227,205
Gross profit		—			30,605			11,960			5,509			21			48,095
Selling, general, and administrative expenses		—			28,720			4,514			5,087			—			38,321
Special charges		—			6,507			687			—			—			7,194
Income (loss) from operations		—			(4,622	)		6,759			422			21			2,580
Equity earnings (loss) — pretax		—			—			368			(566	)		—			(198	)
Other (expense) income		—			699			(47	)		80			—			732
Earnings (loss) before interest and income taxes and minority interest		—			(3,923	)		7,080			(64	)		21			3,114
Interest expense		—			4,749			—			2,093			—			6,842
Earnings (loss) before income taxes and minority interest		—			(8,672	)		7,080			(2,157	)		21			(3,728	)
Income taxes		—			(2,862	)		2,336			(712	)		8			(1,230	)
Net income (loss) before minority interest		—			(5,810	)		4,744			(1,445	)		13			(2,498	)
Minority interest and equity in net income (loss) of subsidiaries		(2,519	)		3,291			—			(21	)		(772	)		(21	)
Net income (loss)	$	(2,519	)	$	(2,519	)	$	4,744		$	(1,466	)	$	(759	)	$	(2,519	)
The following represents the total special charges included in the above Statement of Operations (see note 6 in Form 10 Q for the quarter ended June 30, 2006 for further details):
Special charges included in:
Cost of sales				$	867		$	—		$	—		$	—		$	867
Selling, general and administrative expenses					1,347			—			—			—			1,347
Special charges					6,507			687			—			—			7,194
Total pretax special charges				$	8,721		$	687		$	—		$	—		$	9,408
Special charges net of tax				$	5,843		$	460		$	—		$	—		$	6,303

E-4

Libbey Inc.
Condensed Consolidating Balance Sheet
(dollars in thousands)
(unaudited)

	June 30, 2006
	Libbey Inc.		Libbey Glass		Subsidiary		Non-Guarantor
	(Parent)		(Issuer)		Guarantor		Subsidiaries			Eliminations			Consolidated
Cash	$	—	$	6,269	$	336	$	20,056		$	—		$	26,661
Accounts receivable — net		—		45,178		10,453		56,564			—			112,195
Inventories — net		—		56,342		32,975		72,510			—			161,827
Other current assets		—		11,731		1,130		(3,815	)		—			9,046
Total current assets		—		119,520		44,894		145,315			—			309,729
Investments in and advances to subsidiaries		108,345		332,315		281,841		24,201			(746,702	)		—
Goodwill and purchased intangible assets — net		—		27,186		16,168		157,270			—			200,624
Property, plant and equipment — net		—		122,553		21,582		151,018			—			295,153
Other non-current assets		—		41,181		2,974		6,604			—			50,759
Total assets	$	108,345	$	642,755	$	367,459	$	484,408		$	(746,702	)	$	856,265
Accounts payable	$	—	$	19,115	$	2,841	$	37,491		$	—		$	59,447
Accrued liabilities		—		36,724		16,169		25,427			—			78,320
Notes payable and long-term debt due within one year		—		115		—		2,256			—			2,371
Total current liabilities		—		55,954		19,010		65,174			—			140,138
Long-term debt				400,823		—		61,951			—			462,774
Other long-term liabilities and minority interest		—		102,739		6,307		35,962			—			145,008
Total liabilities		—		559,516		25,317		163,087			—			747,920
Total shareholders’ equity		108,345		83,239		342,142		321,321			(746,702	)		108,345
Total liabilities and shareholders’ equity	$	108,345	$	642,755	$	367,459	$	484,408		$	(746,702	)	$	856,265

E-5

Libbey Inc.
Condensed Consolidating Balance Sheet
dollars in thousands

	December 31, 2005
	Libbey Inc.		Libbey Glass		Guarantor		Non-Guarantor
	(Parent)		(Issuer)		Subsidiaries		Subsidiaries			Eliminations			Consolidated
Cash	$	—	$	2,817	$	300	$	125		$	—		$	3,242
Accounts receivable — net		—		50,358		10,145		18,539			—			79,042
Inventories — net		—		57,420		39,715		25,437			—			122,572
Other current assets		—		13,806		3,767		1,484			—			19,057
Total current assets		—		124,401		53,927		45,585			—			223,913
Investments in and advances to subsidiaries		119,605		119,644		50,989		39,219			(252,800	)		76,657
Goodwill and purchased intangible assets — net		—		27,540		16,195		17,868			—			61,603
Property, plant and equipment — net		—		108,711		22,963		68,454			—			200,128
Other non-current assets		—		33,772		203		(492	)		—			33,483
Total assets	$	119,605	$	414,068	$	144,277	$	170,634		$	(252,800	)	$	595,784
Accounts payable	$	—	$	26,329	$	4,442	$	16,249		$	—		$	47,020
Accrued liabilities		—		44,327		9,452		8,365			—			62,144
Notes payable and long-tern debt due within one year		—		115		—		12,185			—			12,300
Total current liabilities		—		70,771		13,894		36,799			—			121,464
Long-term debt		—		159,550		—		89,829			—			249,379
Other long-term liabilities and minority interest		—		97,781		6,470		1,085			—			105,336
Total liabilities		—		328,102		20,364		127,713			—			476,179
Total shareholders’ equity		119,605		85,966		123,913		42,921			(252,800	)		119,605
Total liabilities and shareholders’ equity	$	119,605	$	414,068	$	144,277	$	170,634		$	(252,800	)	$	595,784

E-6

Libbey Inc.
Condensed Consolidating Statement of Cash Flows
dollars in thousands

	Three months ended June 30, 2006
	Libbey Inc.			Libbey Glass			Guarantor			Non-Guarantor
	(Parent)			(Issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net Income (loss)	$	(9,569	)	$	(9,569	)	$	2,400		$	(10,715	)	$	17,884		$	(9,569	)
Depreciation and amortization		—			4,585			828			2,793			—			8,206
Other operating activities		9,569			24,786			(5,553	)		6,022			(17,884	)		16,940
Net cash provided by (used in) operating activities		—			19,802			(2,325	)		(1,900	)		—			15,577
Additions to property, plant & equipment		—			(8,390	)		(202	)		(4,225	)		—			(12,817	)
Other investing activities		—			(221,359	)		(421	)		144,209			—			(77,571	)
Net cash provided by (used in) investing activities		—			(229,749	)		(623	)		139,984			—			(90,388	)
Net borrowings		—			231,998			—			(122,620	)		—			109,378
Other financing activities		—			(17,548	)		2,999			36			—			(14,513	)
Net cash provided by (used in) financing activities		—			214,450			2,999			(122,584	)		—			94,865
Exchange effect on cash		—			—			—			105			—			105
Increase (decrease) in cash		—			4,503			51			15,605			—			20,159
Cash at beginning of period		—			1,766			285			4,451			—			6,502
Cash at end of period	$	—		$	6,269		$	336		$	20,056		$	—		$	26,661

E-7

Libbey Inc.
Condensed Consolidating Statement of Cash Flows
dollars in thousands

	Three months ended June 30, 2005
	Libbey Inc.			Libbey Glass			Guarantor			Non-Guarantor
	(Parent)			(Issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net Income (loss)	$	(870	)	$	(870	)	$	2,016		$	(1,040	)	$	(106	)	$	(870	)
Depreciation and amortization		—			4,494			1,313			2,259			—			8,066
Other operating activities		870			18,187			(2,884	)		(833	)		106			15,446
Net cash provided by (used in) operating activities		—			21,811			445			386			—			22,642
Additions to property, plant & equipment		—			(7,270	)		(512	)		(927	)		—			(8,709	)
Other investing activities		—			1,071			—			(1,113	)		—			(42	)
Net cash provided by (used in) investing activities		—			(6,199	)		(512	)		(2,040	)		—			(8,751	)
Net borrowings		—			(13,798	)		—			1,613			—			(12,185	)
Other financing activities		—			(1,401	)		—			40			—			(1,361	)
Net cash provided by (used in) financing activities		—			(15,199	)		—			1,653			—			(13,546	)
Exchange effect on cash		—			—			—			—			—			—
Increase (decrease) in cash		—			413			(67	)		(1	)		—			345
Cash at beginning of period		—			1,862			293			40			—			2,195
Cash at end of period	$	—		$	2,275		$	226		$	39		$	—		$	2,540

E-8

Libbey Inc.
Condensed Consolidating Statement of Cash Flows
dollars in thousands

	Six months ended June 30, 2006
	Libbey Inc.			Libbey Glass			Guarantor			Non-Guarantor
	(Parent)			(Issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net Income (loss)	$	(9,054	)	$	(9,054	)	$	3,283		$	(9,420	)	$	15,191		$	(9,054	)
Depreciation and amortization		—			9,334			1,729			5,478			—			16,541
Other operating activities		9,054			25,218			(7,568	)		1,375			(15,191	)		12,888
Net cash provided by (used in) operating activities		—			25,498			(2,556	)		(2,567	)		—			20,375
Additions to property, plant & equipment		—			(22,859	)		(277	)		(11,120	)		—			(34,256	)
Other investing activities		—			(225,483	)		1,797			146,115			—			(77,571	)
Net cash provided by (used in) investing activities		—			(248,342	)		1,520			134,995			—			(111,827	)
Net borrowings		—			242,268			—			(112,638	)		—			129,630
Other financing activities		—			(15,972	)		1,072			36			—			(14,864	)
Net cash provided by (used in) financing activities		—			226,296			1,072			(112,602	)		—			114,766
Exchange effect on cash		—			—			—			105			—			105
Increase (decrease) in cash		—			3,452			36			19,931			—			23,419
Cash at beginning of period		—			2,817			300			125			—			3,242
Cash at end of period	$	—		$	6,269		$	336		$	20,056		$	—		$	26,661

E-9

Libbey Inc.
Condensed Consolidating Statement of Cash Flows
dollars in thousands

	Six months ended June 30, 2005
	Libbey Inc.			Libbey Glass			Guarantor			Non-Guarantor
	(Parent)			(Issuer)			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net Income (loss)	$	(2,519	)	$	(2,519	)	$	4,744		$	(1,466	)	$	(759	)	$	(2,519	)
Depreciation and amortization		—			9,295			2,502			4,654			—			16,451
Other operating activities		2,519			5,268			(780	)		(10,207	)		759			(2,441	)
Net cash provided by (used in) operating activities		—			12,044			6,466			(7,019	)		—			11,491
Additions to property, plant & equipment		—			(13,946	)		(700	)		(4,468	)		—			(19,114	)
Other investing activities		—			(754	)		754			(28,990	)		—			(28,990	)
Net cash provided by (used in) investing activities		—			(14,700	)		54			(33,458	)		—			(48,104	)
Net borrowings		—			(4,871	)		—			40,464			—			35,593
Other financing activities		—			4,068			(6,752	)		—			—			(2,684	)
Net cash provided by (used in) financing activities		—			(803	)		(6,752	)		40,464			—			32,909
Exchange effect on cash		—			—			—			—			—			—
Increase (decrease) in cash		—			(3,459	)		(232	)		(13	)		—			(3,704	)
Cash at beginning of period		—			5,734			458			52			—			6,244
Cash at end of period	$	—		$	2,275		$	226		$	39		$	—		$	2,540

E-10