Exhibit 99(b)
Page 1 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
FOR THE THREE MONTHS AND TWELVE MONTHS ENDED MAY 1, 2005 AND MAY 2, 2004
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
THREE MONTHS ENDED (UNAUDITED)
-------------------------------------------------------
Amounts Percent of Sales
--------------------- ---------------------
May 1, May 2, % Over May 1, May 2,
2005 2004 (Under) 2005 2004
---------- ---------- ---------- ---------- ----------
Net sales $ 74,183 85,148 (12.9)% 100.0 % 100.0 %
Cost of sales 68,835 69,510 (1.0)% 92.8 % 81.6 %
---------- ---------- ---------- ---------- ----------
Gross profit 5,348 15,638 (65.8)% 7.2 % 18.4 %
Selling, general and
administrative expenses 9,048 9,925 (8.8)% 12.2 % 11.7 %
Restructuring expense
(credit) 8,083 (1,047) (872.0)% 10.9 % (1.2)%
---------- ---------- ---------- ---------- ----------
Income (loss) from
operations (11,783) 6,760 (274.3)% (15.9)% 7.9 %
Interest expense 924 988 (6.5)% 1.2 % 1.2 %
Interest income (36) (20) 80.0 % (0.0)% (0.0)%
Other expense 81 220 (63.2)% 0.1 % 0.3 %
---------- ---------- ---------- ---------- ----------
Income (loss)
before income
taxes (12,752) 5,572 (328.9)% (17.2)% 6.5 %
Income taxes* (5,022) 1,839 (373.1)% 39.4 % 33.0 %
---------- ---------- ---------- ---------- ----------
Net income (loss) $ (7,730) 3,733 (307.1)% (10.4)% 4.4 %
========== ========== ========== ========== ==========
Net income (loss) per
share-basic ($0.67) $0.32 (309.4)%
Net income (loss) per
share-diluted ($0.67) $0.32 (309.4)%
Net income (loss) per
share, diluted,
excluding restructuring
and related charges and
credits ($0.12) $0.26 (146.2)%
Average shares
outstanding-basic 11,550 11,531 0.2 %
Average shares
outstanding-diluted 11,550 11,815 (2.2)%
TWELVE MONTHS ENDED (UNAUDITED)
------------------------------------------------------
Amounts Percent of Sales
--------------------- ---------------------
May 1, May 2, % Over May 1, May 2,
2005 2004 (Under) 2005 2004
---------- ---------- ---------- ---------- ----------
Net sales $ 286,498 318,116 (9.9)% 100.0 % 100.0 %
Cost of sales 260,341 259,794 0.2 % 90.9 % 81.7 %
---------- ---------- ---------- ---------- ----------
Gross profit 26,157 58,322 (55.2)% 9.1 % 18.3 %
Selling, general and
administrative expenses 35,357 41,019 (13.8)% 12.3 % 12.9 %
Goodwill impairment 5,126 0 100.0 % 1.8 % 0.0 %
Restructuring expense
(credit) 10,372 (1,047) (1,090.6)% 3.6 % (0.3)%
---------- ---------- ---------- ---------- ----------
Income (loss) from
operations (24,698) 18,350 (234.6)% (8.6)% 5.8 %
Interest expense 3,713 5,528 (32.8)% 1.3 % 1.7 %
Interest income (134) (376) (64.4)% (0.0)% (0.1)%
Early extinguishment of
debt 0 1,672 (100.0)% 0.0 % 0.5 %
Other expense 517 750 (31.1)% 0.2 % 0.2 %
---------- ---------- ---------- ---------- ----------
Income (loss)
before income
taxes (28,794) 10,776 (367.2)% (10.1)% 3.4 %
Income taxes* (10,942) 3,556 (407.7)% 38.0 % 33.0 %
---------- ---------- ---------- ---------- ----------
Net income (loss) $ (17,852) 7,220 (347.3)% (6.2)% 2.3 %
========== ========== ========== ========= ==========
Net income (loss) per
share-basic ($1.55) $0.63 (346.0)%
Net income (loss) per
share-diluted ($1.55) $0.61 (354.1)%
Net income (loss) per
share, diluted,
excluding restructuring
and related charges and
credits, goodwill
impairment, and early
extinguishment of debt ($0.30) $0.65 (146.2)%
Average shares
outstanding-basic 11,549 11,525 0.2 %
Average shares
outstanding-diluted 11,549 11,777 (1.9)%
* Percent of sales column for income taxes is calculated as a % of income
(loss) before income taxes.
Page 2 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED BALANCE SHEETS
MAY 1, 2005 AND MAY 2, 2004
Unaudited
(Amounts in Thousands)
Amounts Increase
---------------------- (Decrease)
May 1, May 2, ----------------------
2005 2004 Dollars Percent
---------- ---------- ---------- ----------
Current assets
Cash and cash equivalents $ 5,107 14,568 (9,461) (64.9)%
Accounts receivable 28,824 30,719 (1,895) (6.2)%
Inventories 50,499 49,045 1,454 3.0 %
Deferred income taxes 7,054 9,256 (2,202) (23.8)%
Other current assets 2,691 1,722 969 56.3 %
---------- ---------- ---------- ----------
Total current
assets 94,175 105,310 (11,135) (10.6)%
Property, plant & equipment, net 66,032 77,770 (11,738) (15.1)%
Goodwill 4,114 9,240 (5,126) (55.5)%
Deferred income taxes 10,086 0 10,086 100.0 %
Other assets 1,716 1,496 220 14.7 %
---------- ---------- ---------- ----------
Total assets $ 176,123 193,816 (17,693) (9.1)%
========== ========== ========== ==========
Current liabilities
Current maturities of
long-term debt $ 8,110 528 7,582 1,436.0 %
Accounts payable 22,852 15,323 7,529 49.1 %
Accrued expenses 9,556 13,116 (3,560) (27.1)%
Accrued restructuring 5,850 4,968 882 17.8 %
Income taxes payable 1,544 1,850 (306) (16.5)%
---------- ---------- ---------- ----------
Total current
liabilities 47,912 35,785 12,127 33.9 %
Long-term debt, less current
maturities 42,440 50,502 (8,062) (16.0)%
Deferred income taxes 0 4,138 (4,138) (100.0)%
---------- ---------- ---------- ----------
Total liabilities 90,352 90,425 (73) (0.1)%
Shareholders' equity 85,771 103,391 (17,620) (17.0)%
---------- ---------- ---------- ----------
Total liabilities
and shareholders'
equity $ 176,123 193,816 (17,693) (9.1)%
========== ========== ========== ==========
Shares outstanding 11,551 11,547 4 0.0 %
========== ========== ========== ==========
Page 3 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED MAY 1, 2005 AND MAY 2, 2004
Unaudited
(Amounts in Thousands)
TWELVE MONTHS ENDED
----------------------
Amounts
----------------------
May 1, May 2,
2005 2004
---------- ----------
Cash flows from operating activities:
Net income (loss) $ (17,852) 7,220
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation 18,884 13,642
Amortization of other assets 130 173
Stock-based compensation 210 210
Goodwill impairment 5,126 0
Deferred income taxes (12,022) 3,334
Restructuring expense (credit) 10,372 (1,047)
Changes in assets and liabilities:
Accounts receivable 1,895 1,540
Inventories (1,454) 507
Other current assets (969) 1,482
Other assets 67 607
Accounts payable 6,251 (951)
Accrued expenses (3,560) (955)
Accrued restructuring (2,800) (1,911)
Income taxes payable (306) 1,501
---------- ----------
Net cash provided by operating activities 3,972 25,352
---------- ----------
Cash flows from investing activities:
Capital expenditures (11,448) (5,976)
Purchases of short-term investments 0 (17,282)
Proceeds from the sale of short-term investments 0 27,325
---------- ----------
Net cash (used in) provided by investing
activities (11,448) 4,067
---------- ----------
Cash flows from financing activities:
Payments on vendor-financed capital expenditures (1,527) (3,932)
Payments on long-term debt (480) (25,470)
Proceeds from common stock issued 22 196
---------- ----------
Net cash used in financing activities (1,985) (29,206)
---------- ----------
(Decrease) increase in cash and cash equivalents (9,461) 213
Cash and cash equivalents at beginning of period 14,568 14,355
---------- ----------
Cash and cash equivalents at end of period $ 5,107 14,568
========== ==========
Free Cash Flow (1) $ (9,003) 15,444
========== ==========
- --------------------------------------------------------------------------------
(1) Free Cash Flow reconciliation is as follows:
FY 2005 FY 2004
-------------------------
A) Net cash provided by operating activities 3,972 25,352
B) Minus: Capital Expenditures (11,448) (5,976)
C) Minus: Payments on vendor-financed capital
expenditures (1,527) (3,932)
---------- ----------
(9,003) 15,444
========== ==========
Page 4 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE
SALES, GROSS PROFIT AND OPERATING INCOME (LOSS) BY SEGMENT/DIVISION
FOR THE THREE MONTHS ENDED MAY 1, 2005 AND MAY 2, 2004
(Amounts in thousands)
THREE MONTHS ENDED (UNAUDITED)
----------------------------------------------------------
Percent of Total
Amounts Sales
----------------------- ---------------------
May 1, May 2, % Over May 1, May 2,
Net Sales by Segment 2005 2004 (Under) 2005 2004
- --------------------- ---------- ---------- ---------- ---------- ----------
Mattress Fabrics
Culp Home Fashions $ 27,018 27,200 (0.7)% 36.4 % 31.9 %
---------- ---------- ---------- ---------- ----------
Upholstery Fabrics
Culp Decorative
Fabrics 25,936 32,519 (20.2)% 35.0 % 38.2 %
Culp Velvets/Prints 21,229 25,429 (16.5)% 28.6 % 29.9 %
---------- ---------- ---------- ---------- ----------
47,165 57,948 (18.6)% 63.6 % 68.1 %
---------- ---------- ---------- ---------- ----------
Net Sales $ 74,183 85,148 (12.9)% 100.0 % 100.0 %
========== ========== ========== ========== ==========
Gross Profit by
Segment Gross Profit Margin
- --------------------- ---------------------
Mattress Fabrics $ 4,092 5,883 (30.4)% 15.1 % 21.6 %
Upholstery Fabrics 3,316 9,755 (66.0)% 7.0 % 16.8 %
Restructuring related
charges (1) (2,060) 0 (100.0)% (4.4)% 0.0 %
---------- ---------- ---------- ---------- ----------
Gross Profit $ 5,348 15,638 (65.8)% 7.2 % 18.4 %
========== ========== ========== ========== ==========
Operating Income Operating Income
(loss) by Segment (Loss) Margin
- --------------------- ---------------------
Mattress Fabrics $ 2,223 3,555 (37.5)% 8.2 % 13.1 %
Upholstery Fabrics (2,018) 2,844 (171.0)% (4.3)% 4.9 %
Unallocated corporate
expenses (1,732) (686) 152.5 % (2.3)% (0.8)%
Restructuring and
related charges and
credits (1) (10,256) 1,047 (1,079.6)% (21.7)% 1.8 %
---------- ---------- ---------- ---------- ----------
Operating income
(loss) $ (11,783) 6,760 (274.3)% (15.9)% 7.9 %
========== ========== ========== ========== ==========
Depreciation by
Segment
- ---------------------
Mattress Fabrics $ 892 (2) 931 (4.2)%
Upholstery Fabrics 2,043 (2) 2,417 (15.5)%
---------- ---------- ----------
Total Depreciation $ 2,935 3,348 (12.3)%
========== ========== ==========
(1) The $2.0 million represents restructuring related charges of $1.3 million
for accelerated depreciation and $734,000 for inventory markdowns. The
$10.3 million represents $5.3 million for write-downs of buildings and
equipment, $1.6 million related to asset movement costs, $1.5 million for
accelerated depreciation, $1.2 for termination benefits, and $734,000 for
inventory markdowns.
(2) Excludes accelerated depreciation of approximately $1.3 million associated
with plant and equipment.
Page 5 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE
SALES, GROSS PROFIT AND OPERATING INCOME (LOSS) BY SEGMENT/DIVISION
FOR THE TWELVE MONTHS ENDED MAY 1, 2005 AND MAY 2, 2004
(Amounts in thousands)
TWELVE MONTHS ENDED (UNAUDITED)
----------------------------------------------------------
Percent of Total
Amounts Sales
----------------------- ---------------------
May 1, May 2, % Over May 1, May 2,
Net Sales by Segment 2005 2004 (Under) 2005 2004
- --------------------- ---------- ---------- ---------- ---------- ----------
Mattress Fabrics
Culp Home Fashions $ 105,432 106,322 (0.8)% 36.8 % 33.4 %
---------- ---------- ---------- ---------- ----------
Upholstery Fabrics
Culp Decorative
Fabrics 102,185 124,272 (17.8)% 35.7 % 39.1 %
Culp Velvets/Prints 78,881 87,522 (9.9)% 27.5 % 27.5 %
---------- ---------- ---------- ---------- ----------
181,066 211,794 (14.5)% 63.2 % 66.6 %
---------- ---------- ---------- ---------- ----------
Net Sales $ 286,498 318,116 (9.9)% 100.0 % 100.0 %
========== ========== ========== ========== ==========
Gross Profit by
Segment Gross Profit Margin
- --------------------- ---------------------
Mattress Fabrics $ 16,819 23,376 (28.1)% 16.0 % 22.0 %
Upholstery Fabrics 16,899 34,946 (51.6)% 9.3 % 16.5 %
Restructuring related
charges (1) (7,561) 0 (100.0)% (4.2)% 0.0 %
---------- ---------- ---------- ---------- ----------
Gross Profit $ 26,157 58,322 (55.2)% 9.1 % 18.3 %
========== ========== ========== ========== ==========
Operating Income Operating Income
(loss) by Segment (Loss) Margin
- --------------------- ---------------------
Mattress Fabrics $ 9,389 14,986 (37.3)% 8.9 % 14.1 %
Upholstery Fabrics (6,435) 6,836 (194.1)% (3.6)% 3.2 %
Unallocated corporate
expenses (4,480) (4,519) (0.9)% (1.6)% (1.4)%
Goodwill impairment (5,126) 0 (100.0)% (1.8)% 0.0 %
Restructuring and
related charges and
credits (1) (18,046) 1,047 (1,823.6)% (10.0)% 0.5 %
---------- ---------- ---------- ---------- ----------
Operating income
(loss) $ (24,698) 18,350 (234.6)% (8.6)% 5.8 %
========== ========== ========== ========== ==========
Depreciation by
Segment
- ---------------------
Mattress Fabrics $ 3,635 (2) 3,753 (3.1)%
Upholstery Fabrics 9,227 (2) 9,889 (6.7)%
---------- ---------- ----------
Total Depreciation $ 12,862 13,642 (5.7)%
========== ========== ==========
(1) The $7.6 million represents restructuring related charges of $6.0 million
for accelerated depreciation and $1.6 million for inventory write-downs.
The $18.0 million represents $7.7 million in related charges for
accelerated depreciation and inventory markdowns, $5.6 million related to
write-downs of buildings and equipment, $2.5 million related to asset
movement costs, and $2.2 million related to employee termination costs.
(2) Excludes accelerated depreciation of approximately $6.0 million associated
with plant and equipment.
Page 6 of 7
CULP, INC.
PROFORMA CONSOLIDATED STATEMENTS OF INCOME (LOSS)
FOR THE THREE MONTHS ENDED MAY 1, 2005 AND MAY 2, 2004
(Amounts in Thousands, Except for Per Share Data)
THREE MONTHS ENDED
--------------------------------------------------------------
May 1, 2005
As Reported Proforma Net
May 1, % of % of of % of
2005 Sales Adjustments Sales Adjustments Sales
------------------- ------------------- -------------------
Net sales $ 74,183 100.0% 0 74,183 100.0%
Cost of sales 68,835 92.8% (2,060) -2.8%(1) 66,775 90.0%
------------------- ------------------- -------------------
Gross profit 5,348 7.2% (2,060) -2.8% 7,408 10.0%
Selling, general and administrative
expenses 9,048 12.2% (113) 0.0%(2) 8,935 12.0%
Restructuring expense (credit) 8,083 10.9% (8,083) -10.9%(2) 0 0.0%
------------------- ------------------- -------------------
Income (loss) from operations (11,783) -15.9% (10,256) -13.8% (1,527) -2.1%
Interest expense 924 1.2% 0 0.0% 924 1.2%
Interest income (36) 0.0% 0 0.0% (36) 0.0%
Other expense 81 0.1% 0 0.0% 81 0.1%
------------------- ------------------- -------------------
Income (loss) before income
taxes (12,752) -17.2% (10,256) -13.8% (2,496) -3.4%
Income taxes (3) (5,022) 39.4% (3,876) 37.8% (1,146) 45.9%
------------------- ------------------- -------------------
Net income (loss) $ (7,730) -10.4% (6,380) -8.6% (1,350) -1.8%
=================== =================== ===================
Net income (loss) per share-basic ($0.67) ($0.55) ($0.12)
Net income (loss) per share-diluted ($0.67) ($0.55) ($0.12)
Average shares outstanding-basic 11,550 11,550 11,550
Average shares outstanding-diluted 11,550 11,550 11,550
THREE MONTHS ENDED
------------------------------------------------------------------------
May 2, 2004
As Reported Proforma Net Proforma
May 2, % of % of of % of % Over
2004 Sales Adjustments Sales Adjustments Sales (Under)
------------------- ------------------- ------------------- --------
Net sales 85,148 100.0% 0 85,148 100.0% -12.9%
Cost of sales 69,510 81.6% 0 0.0% 69,510 81.6% -3.9%
------------------- ------------------- ------------------- --------
Gross profit 15,638 18.4% 0 0.0% 15,638 18.4% -52.6%
Selling, general and administrative
expenses 9,925 11.7% 0 0.0% 9,925 11.7% -10.0%
Restructuring expense (credit) (1,047) -1.2% 1,047 1.2%(4) 0 0.0% 0.0%
------------------- ------------------- ------------------- --------
Income (loss) from operations 6,760 7.9% 1,047 1.2% 5,713 6.7% -126.7%
Interest expense 988 1.2% 0 0.0% 988 1.2% -6.5%
Interest income (20) 0.0% 0 0.0% (20) 0.0% 80.0%
Other expense 220 0.3% 0 0.0% 220 0.3% -63.2%
------------------- ------------------- ------------------- --------
Income (loss) before income
taxes 5,572 6.5% 1,047 1.2% 4,525 5.3% -155.2%
Income taxes (3) 1,839 33.0% 346 33.0% 1,493 33.0% -176.8%
------------------- ------------------- ------------------- --------
Net income (loss) 3,733 4.4% 701 0.8% 3,032 3.6% -144.5%
=================== =================== =================== ========
Net income (loss) per share-basic $0.32 $0.06 $0.26
Net income (loss) per share-diluted $0.32 $0.06 $0.26
Average shares outstanding-basic 11,531 11,531 11,531
Average shares outstanding-diluted 11,815 11,815 11,815
Notes:
(1) The $2.0 million represents restructuring related charges of $1.3 million
for accelerated depreciation and $734,000 for inventory markdowns.
(2) The $8.2 million represents $5.3 million for write-downs of building and
equipment, $1.6 million related to asset movement costs, $1.2 million for
termination benefits, and $113,000 in accelerated depreciation.
(3) The percent of net sales column for income taxes is calculated as a % of
income (loss) before income taxes.
(4) The $1.0 million restructuring credit represents adjustment of accrued
employee benefit and other plant closing costs related to the shutdown of
the Chatanooga and Lumberton operations.
Page 7 of 7
CULP, INC.
PROFORMA CONSOLIDATED STATEMENTS OF INCOME (LOSS)
FOR THE TWELVE MONTHS ENDED MAY 1, 2005 AND MAY 2, 2004
(Amounts in Thousands, Except for Per Share Data)
TWELVE MONTHS ENDED
--------------------------------------------------------------
May 1, 2005
As Reported Proforma Net
May 1, % of % of of % of
2005 Sales Adjustments Sales Adjustments Sales
------------------- ------------------- -------------------
Net sales $ 286,498 100.0% 0 286,498 100.0%
Cost of sales 260,341 90.9% (7,561) -2.6%(1) 252,780 88.2%
------------------- ------------------- -------------------
Gross profit 26,157 9.1% (7,561) -2.6% 33,718 11.8%
Selling, general and administrative
expenses 35,357 12.3% (113) 0.0%(3) 35,244 12.3%
Goodwill impairment 5,126 1.8% (5,126) 0.0%(2) 0 0.0%
Restructuring expense (credit) 10,372 3.6% (10,372) -3.6%(3) 0 0.0%
------------------- ------------------- -------------------
Income (loss) from operations (24,698) -8.6% (23,172) -8.1% (1,526) -0.5%
Interest expense 3,713 1.3% 0 0.0% 3,713 1.3%
Interest income (134) 0.0% 0 0.0% (134) 0.0%
Early extinguishment of debt 0 0.0% 0 0.0% 0 0.0%
Other expense 517 0.2% 0 0.0% 517 0.2%
------------------- ------------------- -------------------
Income (loss) before income
taxes (28,794) -10.1% (23,172) -8.1% (5,622) -2.0%
Income taxes (4) (10,942) 38.0% (8,749) 37.8%(4) (2,193) 39.0%
------------------- ------------------- -------------------
Net income (loss) $ (17,852) -6.2% (14,423) -5.0% (3,429) -1.2%
=================== =================== ===================
Net income (loss) per share-basic ($1.55) ($1.25) ($0.30)
Net income (loss) per share-diluted ($1.55) ($1.25) ($0.30)
Average shares outstanding-basic 11,549 11,549 11,549
Average shares outstanding-diluted 11,549 11,549 11,549
TWELVE MONTHS ENDED
------------------------------------------------------------------------
May 2, 2004
As Reported Proforma Net Proforma
May 2, % of % of of % of % Over
2004 Sales Adjustments Sales Adjustments Sales (Under)
------------------- ------------------- ------------------- --------
Net sales 318,116 100.0% 0 318,116 100.0% -9.9%
Cost of sales 259,794 81.7% 0 0.0% 259,794 81.7% -2.7%
------------------- ------------------- ------------------- --------
Gross profit 58,322 18.3% 0 0.0% 58,322 18.3% -42.2%
Selling, general and administrative
expenses 41,019 12.9% 0 0.0% 41,019 12.9% -14.1%
Goodwill impairment 0 0.0% 0 0.0% 0 0.0% 0.0%
Restructuring expense (credit) (1,047) -0.3% 1,047 0.3%(5) 0 0.0% 0.0%
------------------- ------------------- ------------------- --------
Income (loss) from operations 18,350 5.8% 1,047 0.3% 17,303 5.4% -108.8%
Interest expense 5,528 1.7% 0 0.0% 5,528 1.7% -32.8%
Interest income (376) -0.1% 0 0.0% (376) -0.1% -64.4%
Early extinguishment of debt 1,672 0.6% (1,672) 0.0%(6) 0 0.0% 0.0%
Other expense 750 0.2% 0 0.0% 750 0.2% -31.1%
------------------- ------------------- ------------------- --------
Income (loss) before income
taxes 10,776 3.4% (625) -0.2% 11,401 3.6% -149.3%
Income taxes (4) 3,556 33.0% (206) 33.0% 3,762 33.0% -158.3%
------------------- ------------------- ------------------- --------
Net income (loss) 7,220 2.3% (419) -0.1% 7,639 2.4% -144.9%
=================== =================== =================== ========
Net income (loss) per share-basic $0.63 ($0.04) $0.66
Net income (loss) per share-diluted $0.61 ($0.04) $0.65
Average shares outstanding-basic 11,525 11,525 11,525
Average shares outstanding-diluted 11,777 11,525 11,777
Notes:
(1) The $7.6 million represents restructuring related charges of $6.0 million
for accelerated depreciation and $1.6 million for inventory write-downs.
(2) The $5.1 million represents a goodwill impairment charge related to the
Culp Decorative Fabrics division.
(3) The $10.4 million restructuring charge represents $5.6 million for
write-downs of buildings and equipment, $2.5 million related to asset
movement costs, $2.2 million for termination benefits, and $113,000 in
accelerated depreciation.
(4) The percent of net sales column for income taxes is calculated as a % of
income (loss) before income taxes.
(5) $1.0 million restructuring credit represents adjustment of accrued employee
benefit and other plant closing costs related to the shutdown of the
Chattanooga and Lumberton operations.
(6) The $1.7 million charge represents premium and fees paid to reduce the
private placement loan balance.