Exhibit 99(b)
Page 1 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF NET INCOME (LOSS)
FOR THE THREE MONTHS AND SIX MONTHS ENDED OCTOBER 29, 2006 AND OCTOBER 30, 2005
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
THREE MONTHS ENDED
--------------------------------------------------------------------------
Amounts Percent of Sales
----------------------------- ----------------------------
October 29, October 30, % Over October 29, October 30,
2006 2005 (Under) 2006 2005
-------------- -------------- --------------- --------------- ------------
Net sales $ 59,040 67,006 (11.9) % 100.0 % 100.0 %
Cost of sales 51,049 61,455 (16.9) % 86.5 % 91.7 %
-------------- -------------- --------------------------------------------
Gross profit 7,991 5,551 44.0 % 13.5 % 8.3 %
Selling, general and
administrative expenses 6,273 6,526 (3.9) % 10.6 % 9.7 %
Restructuring (credit) expense (264) 4,412 (106.0) % (0.4) % 6.6 %
-------------- -------------- --------------------------------------------
Income (loss) from operations 1,982 (5,387) 136.8 % 3.4 % (8.0)%
Interest expense 938 942 (0.4) % 1.6 % 1.4 %
Interest income (51) (19) 168.4 % (0.1) % (0.0)%
Other expense 338 214 57.9 % 0.6 % 0.3 %
-------------- -------------- --------------------------------------------
Income (loss) before income taxes 757 (6,524) 111.6 % 1.3 % (9.7)%
Income taxes* (55) (2,372) (97.7) % (7.3) % 36.4 %
-------------- -------------- --------------------------------------------
Net income (loss) $ 812 (4,152) 119.6 % 1.4 % (6.2)%
============== ============== ============================================
Net income (loss) per share-basic $0.07 ($0.36) 119.4 %
Net income (loss) per share-diluted $0.07 ($0.36) 119.4 %
Net income (loss) per share, diluted,
excluding restructuring $0.09 ($0.03) 400.0 %
and related charges (see proforma statement
on page 6)
Average shares outstanding-basic 11,686 11,559 1.1 %
Average shares outstanding-diluted 11,689 11,559 1.1 %
SIX MONTHS ENDED
-------------------------------------------------------------------------
Amounts Percent of Sales
----------------------------- ----------------------------
October 29, October 30, % Over October 29, October 30,
2006 2005 (Under) 2006 2005
-------------- -------------- --------------- --------------- ------------
Net sales $ 121,625 129,348 (6.0) % 100.0 % 100.0 %
Cost of sales 105,574 117,240 (10.0) % 86.8 % 90.6 %
-------------- -------------- --------------------------------------------
Gross profit 16,051 12,108 32.6 % 13.2 % 9.4 %
Selling, general and
administrative expenses 12,846 16,382 (21.6) % 10.6 % 12.7 %
Restructuring expense 466 6,238 (92.5) % 0.4 % 4.8 %
-------------- -------------- --------------------------------------------
Income (loss) from operations 2,739 (10,512) 126.1 % 2.3 % (8.1)%
Interest expense 1,888 1,892 (0.2) % 1.6 % 1.5 %
Interest income (97) (35) 177.1 % (0.1) % (0.0)%
Other expense 60 347 (82.7) % 0.0 % 0.3 %
-------------- -------------- --------------------------------------------
Income (loss) before income taxes 888 (12,716) 107.0 % 0.7 % (9.8)%
Income taxes* (58) (4,623) (98.7) % (6.5) % 36.4 %
-------------- -------------- --------------------------------------------
Net income (loss) $ 946 (8,093) 111.7 % 0.8 % (6.3)%
============== ============== ============== ============== ===========
Net income (loss) per share-basic $0.08 ($0.70) 111.4 %
Net income (loss) per share-diluted $0.08 ($0.70) 111.4 %
Net income (loss) per share, diluted,
excluding restructuring $0.19 ($0.08) 337.5 %
and related charges (see proforma statement
on page 7)
Average shares outstanding-basic 11,679 11,555 1.1 %
Average shares outstanding-diluted 11,682 11,555 1.1 %
* 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
OCTOBER 29, 2006, OCTOBER 30, 2005 AND APRIL 30, 2006
Unaudited
(Amounts in Thousands)
Amounts Increase
-------------------------------
October 29, October 30, (Decrease) * April 30,
------------------------------
2006 2005 Dollars Percent 2006
--------------- -------------- -------------- --------------- --------------
Current assets
Cash and cash equivalents $ 9,706 12,883 (3,177) (24.7)% 9,714
Accounts receivable 23,286 26,919 (3,633) (13.5)% 29,049
Inventories 44,430 43,449 981 2.3 % 36,693
Deferred income taxes 7,120 7,054 66 0.9 % 7,120
Assets held for sale 1,571 - 1,571 100.0 % 3,111
Other current assets 1,506 1,846 (340) (18.4)% 1,287
--------------- -------------- -------------- --------------- --------------
Total current assets 87,619 92,151 (4,532) (4.9)% 86,974
Property, plant & equipment, net 42,487 54,212 (11,725) (21.6)% 44,639
Goodwill 4,114 4,114 - 0.0 % 4,114
Deferred income taxes 22,023 14,541 7,482 51.5 % 20,176
Other assets 1,354 1,521 (167) (11.0)% 1,564
--------------- -------------- -------------- --------------- --------------
Total assets $ 157,597 166,539 (8,942) (5.4)% 157,467
=============== ============== ============== =============== ==============
Current liabilities
Current maturities of long-term
debt $ 7,742 8,346 (604) (7.2)% 8,060
Accounts payable 18,540 16,613 1,927 11.6 % 20,835
Accrued expenses 9,001 10,669 (1,668) (15.6)% 7,845
Accrued restructuring 3,017 5,486 (2,469) (45.0)% 4,054
Income taxes payable 3,880 1,023 2,857 279.3 % 2,488
--------------- -------------- -------------- --------------- --------------
Total current liabilities 42,180 42,137 43 0.1 % 43,282
Long-term debt , less current maturities 39,554 46,584 (7,030) (15.1)% 39,662
--------------- -------------- -------------- --------------- --------------
Total liabilities 81,734 88,721 (6,987) (7.9)% 82,944
Shareholders' equity 75,863 77,818 (1,955) (2.5)% 74,523
--------------- -------------- -------------- --------------- --------------
Total liabilities and
shareholders' equity $ 157,597 166,539 (8,942) (5.4)% 157,467
=============== ============== ============== =============== ==============
Shares outstanding 11,687 11,559 128 1.1 % 11,655
=============== ============== ============== =============== ==============
* Derived from audited financial statements
Page 3 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED OCTOBER 29, 2006 AND OCTOBER 30, 2005
Unaudited
(Amounts in Thousands)
SIX MONTHS ENDED
-----------------------------
Amounts
-----------------------------
October 29, October 30,
2006 2005
-------------- --------------
Cash flows from operating activities:
Net income (loss) $ 946 (8,093)
Adjustments to reconcile net income (loss) to net cash
(used in) provided by operating activities:
Depreciation 3,364 9,836
Amortization of other assets 41 51
Stock-based compensation 287 104
Deferred income taxes (1,847) (4,455)
Restructuring (credit) expense (364) 3,092
Changes in assets and liabilities:
Accounts receivable 5,763 1,905
Inventories (7,737) 7,050
Other current assets (219) 845
Other assets 148 149
Accounts payable (1,965) (5,623)
Accrued expenses 1,156 1,113
Accrued restructuring (1,037) (364)
Income taxes payable 1,392 (521)
-------------- --------------
Net cash (used in) provided by operating activities (72) 5,089
-------------- --------------
Cash flows from investing activities:
Capital expenditures (1,705) (4,875)
Proceeds from the sale of buildings and equipment 2,738 3,950
-------------- --------------
Net cash provided by (used in) investing activities 1,033 (925)
-------------- --------------
Cash flows from financing activities:
Payments on vendor-financed capital expenditures (670) (799)
Payments on long-term debt (426) -
Proceeds from issuance of long-term debt - 4,380
Proceeds from common stock issued 127 31
-------------- --------------
Net cash (used in) provided by financing activities (969) 3,612
-------------- --------------
(Decrease) increase in cash and cash equivalents (8) 7,776
Cash and cash equivalents at beginning of period 9,714 5,107
-------------- --------------
Cash and cash equivalents at end of period $ 9,706 12,883
============== ==============
Free Cash Flow (1) $ 291 3,365
============== ==============
(1) Free Cash Flow reconciliation is as follows: 2nd Qtr 2nd Qtr
FY 2007 FY 2006
------------------------------
A) Net cash (used in) provided by operating activities $ (72) 5,089
B) Minus: Capital Expenditures (1,705) (4,875)
C) Add: Proceeds from the sale of buildings and equipment 2,738 3,950
D) Minus: Payments on vendor-financed capital expenditures (670) (799)
-------------- --------------
$ 291 3,365
============== ==============
Page 4 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE
SALES, GROSS PROFIT AND OPERATING INCOME (LOSS) BY SEGMENT
FOR THE THREE MONTHS ENDED OCTOBER 29, 2006 AND OCTOBER 30, 2005
(Amounts in thousands)
THREE MONTHS ENDED (UNAUDITED)
----------------------------------------------------------------------------------
Amounts Percent of Total Sales
------------------------------- --------------------------------
October 29, October 30, % Over October 29, October 30,
Net Sales by Segment 2006 2005 (Under) 2006 2005
- ----------------------------------- -------------- -------------- --------------- --------------- ----------------
Mattress Fabrics $ 23,494 23,990 (2.1)% 39.8 % 35.8 %
Upholstery Fabrics 35,546 43,016 (17.4)% 60.2 % 64.2 %
-------------- -------------- --------------- --------------- ----------------
Net Sales $ 59,040 67,006 (11.9)% 100.0 % 100.0 %
============== ============== =============== =============== ================
Gross Profit by Segment Gross Profit Margin
- ----------------------------------- --------------------------------
Mattress Fabrics $ 4,144 3,302 25.5 % 17.6 % 13.8 %
Upholstery Fabrics 4,138 4,000 3.5 % 11.6 % 9.3 %
-------------- -------------- --------------- --------------- ----------------
Subtotal 8,282 7,302 13.4 % 14.0 % 10.9 %
Restructuring related charges (291)(1) (1,751)(3) (83.4)% (0.5)% (2.6) %
-------------- -------------- --------------- --------------- ----------------
Gross Profit $ 7,991 5,551 44.0 % 13.5 % 8.3 %
============== ============== =============== =============== ================
Selling, General and Administrative
expenses by Segment Percent of Sales
- ----------------------------------- --------------------------------
Mattress Fabrics $ 1,674 1,636 2.3 % 7.1 % 6.8 %
Upholstery Fabrics 3,745 4,069 (8.0)% 10.5 % 9.5 %
Unallocated Corporate expenses 824 821 0.4 % 1.4 % 1.2 %
-------------- -------------- --------------- --------------- ----------------
6,243 6,526 (4.3)% 10.6 % 9.7 %
Restructuring related charges 30 (1) - 100.0 % 0.1 % 0.0 %
-------------- -------------- --------------- --------------- ----------------
Selling, General and
Administrative expenses $ 6,273 6,526 (3.9)% 10.6 % 9.7 %
============== ============== =============== =============== ================
Operating Income (loss) by Segment Operating Income (Loss) Margin
- ----------------------------------- --------------------------------
Mattress Fabrics $ 2,470 1,666 48.3 % 10.5 % 6.9 %
Upholstery Fabrics 393 (69) 669.6 % 1.1 % (0.2) %
Unallocated corporate expenses (824) (821) 0.4 % (1.4)% (1.2) %
-------------- -------------- --------------- --------------- ----------------
Subtotal 2,039 776 162.8 % 3.5 % 1.2 %
Restructuring credit (expense) 264 (2) (4,412)(4) (106.0)% 0.4 % (6.6) %
Restructuring related charges (321)(1) (1,751)(3) (81.7)% (0.5)% (2.6) %
-------------- -------------- --------------- --------------- ----------------
Operating income (loss) $ 1,982 (5,387) 136.8 % 3.4 % (8.0) %
============== ============== =============== =============== ================
Depreciation by Segment
- -----------------------------------
Mattress Fabrics $ 918 893 2.8 %
Upholstery Fabrics 744 1,417 (47.5)%
-------------- -------------- ---------------
Subtotal 1,662 2,310 (28.1)%
Accelerated Depreciation - 1,355 (100.0)%
-------------- -------------- ---------------
Total Depreciation $ 1,662 3,665 (54.7)%
============== ============== ===============
Notes:
(1)The $291,000 and $30,000 represents restructuring related charges for other operating costs associated with the
closing of plant facilities.
(2)The $264,000 restructuring credit represents $354,000 for asset movement costs, $333,000 for lease termination and
other exit costs, a credit of $53,000 for write-downs of a building and equipment, a credit of $437,000 for sales
proceeds received on equipment with no carrying value associated with the closing of plant facilities, and a credit
of $461,000 associated with employee termination benefits.
(3)The $1.8 million represents restructuring related charges of $1.4 million for accelerated depreciation, $331,000
for inventory markdowns, and $65,000 for other operating costs associated with the closing of plant facilities.
(4)The $4.4 million represents restructuring charges of $2.1 million for write-downs of buildings and equipment, $1.6
million for employee termination benefits, $395,000 for asset movement costs and $328,000 for lease termination
costs.
Page 5 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE
SALES, GROSS PROFIT AND OPERATING INCOME (LOSS) BY SEGMENT
FOR THE SIX MONTHS ENDED OCTOBER 29, 2006 AND OCTOBER 30, 2005
(Amounts in thousands)
SIX MONTHS ENDED (UNAUDITED)
------------------------------------------------------------------------------------
Amounts Percent of Total Sales
---------------------------------- ---------------------------------
October 29, October 30, % Over October 29, October 30,
Net Sales by Segment 2006 2005 (Under) 2006 2005
- ----------------------------------- ----------------- -------------- ------------- ---------------- ----------------
Mattress Fabrics $ 45,339 46,905 (3.3)% 37.3 % 36.3 %
Upholstery Fabrics 76,286 82,443 (7.5)% 62.7 % 63.7 %
----------------- -------------- ------------- ---------------- ----------------
Net Sales $ 121,625 129,348 (6.0)% 100.0 % 100.0 %
================= ============== ============= ================ ================
Gross Profit by Segment Gross Profit Margin
- ----------------------------------- ---------------------------------
Mattress Fabrics $ 7,665 6,397 19.8 % 16.9 % 13.6 %
Upholstery Fabrics 9,423 7,957 18.4 % 12.4 % 9.7 %
----------------- -------------- ------------- ---------------- ----------------
Subtotal 17,088 14,354 19.0 % 14.0 % 11.1 %
Restructuring related charges (1,037)(1) (2,246)(3) (53.8)% (0.9)% (1.7) %
----------------- -------------- ------------- ---------------- ----------------
Gross Profit $ 16,051 12,108 32.6 % 13.2 % 9.4 %
================= ============== ============= ================ ================
Selling, General and Administrative
expenses by Segment Percent of Sales
- ----------------------------------- ---------------------------------
Mattress Fabrics $ 3,337 3,373 (1.1)% 7.4 % 7.2 %
Upholstery Fabrics 7,453 8,405 (11.3)% 9.8 % 10.2 %
Unallocated Corporate expenses 2,026 1,582 28.1 % 1.7 % 1.2 %
----------------- -------------- ------------- --------------- ----------------
Subtotal 12,816 13,360 (4.1)% 10.5 % 10.3 %
Restructuring related charges 30 (1) 3,022 (4) (99.0)% 0.0 % 2.3 %
----------------- -------------- ------------- ---------------- ----------------
Selling, General and
Administrative expenses $ 12,846 16,382 (21.6)% 10.6 % 12.7 %
================= ============== ============= ================ ================
Operating Income (loss) by Segment Operating Income (Loss) Margin
- ----------------------------------- ---------------------------------
Mattress Fabrics $ 4,328 3,024 43.1 % 9.5 % 6.4 %
Upholstery Fabrics 1,970 (448) 539.7 % 2.6 % (0.5) %
Unallocated corporate expenses (2,026) (1,582) 28.1 % (1.7)% (1.2) %
----------------- -------------- ------------- ---------------- ----------------
Subtotal 4,272 994 329.8 % 3.5 % 0.8 %
Restructuring expense (466)(2) (6,238)(5) (92.5)% (0.4)% (4.8) %
Restructuring related charges (1,067)(1) (5,268)(6) (79.7)% (0.9)% (4.1) %
----------------- -------------- ------------- ---------------- ----------------
Operating income (loss) $ 2,739 (10,512) 126.1 % 2.3 % (8.1) %
================= ============== ============= ================ ================
Depreciation by Segment
- -----------------------------------
Mattress Fabrics $ 1,860 1,749 6.3 %
Upholstery Fabrics 1,504 3,216 (53.2)%
----------------- -------------- -------------
Subtotal 3,364 4,965 (32.2)%
Accelerated Depreciation - 4,871 (100.0)%
----------------- -------------- -------------
Total Depreciation $ 3,364 9,836 (65.8)%
================= ============== =============
Notes:
(1) The $1.1 million represents restructuring related charges of $798,000 for other operating costs associated with the
closing of plant facilities and $239,000 for inventory markdowns. The $30,000 represents restructuring related charges
for other operating costs associated with the closing of plant facilities.
(2) The $466,000 represents restructuring charges of $740,000 for asset movement costs, $327,000 for lease termination
and other exit costs, $62,000 for net write-downs of buildings and equipment, a credit of $226,000 for employee
termination benefits, and a credit of $437,000 for sales proceeds received on equipment with no carrying value
associated with the closing of plant facilities.
(3) The $2.3 million represents restructuring related charges of $1.9 million of accelerated depreciation, $331,000 for
inventory markdowns, and $65,000 for other operating costs associated with the closing of plant facilities.
(4) The $3.0 million represents accelerated depreciation.
(5) The $6.2 million represents restructuring charges of $2.9 million for write-downs of buildings and equipment, $1.6
million for asset movement costs, $1.4 million for employee termination benefits, and $378,000 for lease termination
costs.
(6) The $5.3 million represents restructuring related charges of $4.9 million for accelerated depreciation, $331,000 for
inventory markdowns, and $65,000 for other operating costs associated with the closing of plant facilities.
Page 6 of 7
CULP, INC.
PROFORMA CONSOLIDATED STATEMENTS OF NET INCOME (LOSS)
FOR THE THREE MONTHS ENDED OCTOBER 29, 2006 AND OCTOBER 30, 2005
(Amounts in Thousands, Except for Per Share Data)
THREE MONTHS ENDED
--------------------------------------------------------------------------------------
As Reported October 29, 2006
October 29, % of % of Proforma Net % of
2006 Sales Adjustments Sales of Adjustments Sales
-------------------------- -------------------------- ------------------------------
Net sales $ 59,040 100.0% 0 59,040 100.0%
Cost of
sales 51,049 86.5% (291) -0.5%(1) 50,758 86.0%
-------------------------- -------------------------- ------------------------------
Gross profit 7,991 13.5% (291) -0.5% 8,282 14.0%
Selling,
general
and
administrative expenses 6,273 10.6% (30) -0.1%(1) 6,243 10.6%
Restructuring (credit)
expense (264) -0.4% 264 0.4%(2) 0 0.0%
-------------------------- -------------------------- ------------------------------
Income (loss)
from
operations 1,982 3.4% (57) -0.1% 2,039 3.5%
Interest
expense 938 1.6% 0 0.0% 938 1.6%
Interest
income (51) -0.1% 0 0.0% (51) -0.1%
Other
expense 338 0.6% (308) -0.5%(3) 30 0.1%
-------------------------- -------------------------- ------------------------------
Income (loss)
before income
taxes 757 1.3% (365) -0.6%(6) 1,122 1.9%
Income
taxes (8) (55) -7.3% (132) 36.2% 77 6.9%
-------------------------- -------------------------- ------------------------------
Net income
(loss) $ 812 1.4% (233) -0.4% 1,045 1.8%
========================== ========================== ==============================
Net income (loss) per
share-basic $0.07 ($0.02) $0.09
Net income (loss) per
share-diluted $0.07 ($0.02) $0.09
Average shares
outstanding-basic 11,686 11,686 11,686
Average shares
outstanding-diluted 11,689 11,686 11,689
THREE MONTHS ENDED
------------------------------------------------------------------------------------------
As Reported October 30, 2005 Proforma
October 30, % of % of Proforma Net % of % Over
2005 Sales Adjustments Sales of Adjustments Sales (Under)
------------------------- ------------------- ---------------------- ----------------
Net sales 67,006 100.0% 0 67,006 100.0% -11.9%
Cost of
sales 61,455 91.7% (1,751) -2.6%(4) 59,704 89.1% -15.0%
------------------------- ------------------- ---------------------- ----------------
Gross profit 5,551 8.3% (1,751) -2.6% 7,302 10.9% 13.4%
Selling,
general
and
administrative expenses 6,526 9.7% 0 0.0% 6,526 9.7% -4.3%
Restructuring (credit)
expense 4,412 6.6% (4,412) -6.6%(5) 0 0.0% 0.0%
------------------------- ------------------- ---------------------- ----------------
Income (loss)
from
operations (5,387) -8.0% (6,163) -9.2% 776 1.2% 162.8%
Interest
expense 942 1.4% 0 0.0% 942 1.4% -0.4%
Interest
income (19) 0.0% 0 0.0% (19) 0.0% 168.4%
Other
expense 214 0.3% 0 0.0% 214 0.3% -86.0%
------------------------- ------------------- ---------------------- ----------------
Income (loss)
before income
taxes (6,524) -9.7% (6,163) -9.2%(7) (361) -0.5% -410.8%
Income
taxes (8) (2,372) 36.4% (2,343) 38.0% (29) 8.0% -366.6%
------------------------- ------------------- ---------------------- ----------------
Net income
(loss) (4,152) -6.2% (3,820) -5.7% (332) -0.5% -414.6%
========================= =================== ====================== ================
Net income (loss) per
share-basic ($0.36) ($0.33) ($0.03)
Net income (loss) per
share-diluted ($0.36) ($0.33) ($0.03)
Average shares
outstanding-basic 11,559 11,559 11,559
Average shares
outstanding-diluted 11,559 11,559 11,559
Notes:
(1) The $291,000 and $30,000 represent restructuring related charges for other operating costs associated
with the closing of plant facilities.
(2) The $264,000 restructuring credit represents $354,000 for asset movement costs, $333,000 for lease
termination and other exit costs, a credit of $53,000 for write-downs of a building and equipment, a
credit of $437,000 for sales proceeds received on equipment with no carrying value associated with the
closing of plant facilities, and a credit of $461,000 associated with employee termination benefits.
(3) The $308,000 represents sales proceeds received on equipment with no carrying value associated with the
closing of plant facilities.
(4) The $1.8 million represents restructuring related charges of $1.4 million for accelerated depreciation,
$331,000 for inventory markdowns, and $65,000 for other operating costs associated with the closing of
plant facilities.
(5) The $4.4 million represents $2.1 million for write-downs of buildings and equipment, $1.6 million for
employee termination benefits, $395,000 for asset movement costs and $328,000 for lease termination costs.
(6) Of this total charge, $418,000 represent cash charges and the credit of $53,000 for write-downs of a
building and equipment represent a non-cash gain.
(7) Of this total charge, $2.4 million and $3.8 million represent cash and non-cash charges, respectively.
(8)The percent of net sales column for income taxes is calculated as a % of income (loss) before income
taxes.
Page 7 of 7
CULP, INC.
PROFORMA CONSOLIDATED STATEMENTS OF NET INCOME (LOSS)
FOR THE SIX MONTHS ENDED OCTOBER 29, 2006 AND OCTOBER 30, 2005
(Amounts in Thousands, Except for Per Share Data)
SIX MONTHS ENDED
-------------------------------------------------------------------------------------
As Reported October 29, 2006
October 29, % of % of Proforma Net % of
2006 Sales Adjustments Sales of Adjustments Sales
-------------------------- -------------------------- -----------------------------
Net sales $ 121,625 100.0% 0 121,625 100.0%
Cost of
sales 105,574 86.8% (1,037) -0.9%(1) 104,537 86.0%
-------------------------- -------------------------- -----------------------------
Gross profit 16,051 13.2% (1,037) -0.9% 17,088 14.0%
Selling, general and
administrative expenses 12,846 10.6% (30) 0.0%(1) 12,816 10.5%
Restructuring expense 466 0.4% (466) -0.4%(2) 0 0.0%
-------------------------- -------------------------- -----------------------------
Income (loss)
from
operations 2,739 2.3% (1,533) -1.3% 4,272 3.5%
Interest
expense 1,888 1.6% 0 0.0% 1,888 1.6%
Interest
income (97) -0.1% 0 0.0% (97) -0.1%
Other
expense 60 0.0% 0 0.0% 60 0.0%
-------------------------- -------------------------- -----------------------------
Income (loss)
before income
taxes 888 0.7% (1,533) -1.3%(6) 2,421 2.0%
Income
taxes (8) (58) -6.5% (315) 20.5% 257 10.6%
-------------------------- -------------------------- -----------------------------
Net income
(loss) $ 946 0.8% (1,218) -1.0% 2,164 1.8%
========================== ========================== =============================
Net income (loss) per
share-basic $0.08 ($0.10) $0.19
Net income (loss) per
share-diluted $0.08 ($0.10) $0.19
Average shares
outstanding-basic 11,679 11,679 11,679
Average shares
outstanding-diluted 11,682 11,679 11,682
SIX MONTHS ENDED
----------------------------------------------------------------------------------------
As Reported October 30, 2005 Proforma
October 30, % of % of Proforma Net % of % Over
2005 Sales Adjustments Sales of Adjustments Sales (Under)
-------------------- ------------------- ---------------------- ------------------
Net sales 129,348 100.0% 0 129,348 100.0% -6.0%
Cost of
sales 117,240 90.6% (2,246) -1.7%(3) 114,994 88.9% -9.1%
-------------------- ------------------- ---------------------- ------------------
Gross profit 12,108 9.4% (2,246) -1.7% 14,354 11.1% 19.0%
Selling, general and
administrative expenses 16,382 12.7% (3,022) -2.3%(4) 13,360 10.3% -4.1%
Restructuring expense 6,238 4.8% (6,238) -4.8%(5) 0 0.0% 0.0%
-------------------- ------------------- ---------------------- ------------------
Income (loss)
from
operations (10,512) -8.1% (11,506) -8.9% 994 0.8% 329.8%
Interest
expense 1,892 1.5% 0 0.0% 1,892 1.5% -0.2%
Interest
income (35) 0.0% 0 0.0% (35) 0.0% 177.1%
Other
expense 347 0.3% 0 0.0% 347 0.3% -82.7%
-------------------- ------------------- ---------------------- ------------------
Income (loss)
before income
taxes (12,716) -9.8% (11,506) -8.9%(7) (1,210) -0.9% -300.1%
Income
taxes (8) (4,623) 36.4% (4,373) 38.0% (250) 20.7% -202.8%
-------------------- ------------------- ---------------------- ------------------
Net income
(loss) (8,093) -6.3% (7,133) -5.5% (960) -0.7% -325.4%
==================== =================== ====================== ==================
Net income (loss) per
share-basic ($0.70) ($0.62) ($0.08)
Net income (loss) per
share-diluted ($0.70) ($0.62) ($0.08)
Average shares
outstanding-basic 11,555 11,555 11,555
Average shares
outstanding-diluted 11,555 11,555 11,555
Notes:
(1) The $1.1 million represents restructuring related charges of $798,00 for other operating costs associated with the
closing of plant facilities and $239,000 for inventory markdowns. The $30,000 represents restructuring related charges
for other operating costs associated with the closing of plant facilities.
(2) The $466,000 represents restructuring charges of $740,000 for asset movement costs, $327,000 for lease termination
and other exit costs, $62,000 for net write-downs of buildings and equipment, a credit of $226,000 for employee
termination benefits, and a credit of $437,000 for sales proceeds received on equipment with no carrying value
associated with the closing of plant faciilties.
(3) The $2.3 million represents restructuring related charges of $1.9 million of accelerated depreciation, $331,000 for
inventory markdowns, and $65,000 for other operating costs associated with the closing of plant facilities.
(4) The $3.0 million represents accelerated depreciation.
(5) The $6.2 million represents $2.9 million for write-downs of buildings and equipment, $1.6 million for asset movement
costs, $1.4 million for employee termination benefits, and $378,000 for lease termination costs.
(6) Of this total charge, $1.2 million and $301,000 represent cash and non-cash charges, respectively.
(7) Of this total charge, $3.4 million and $8.1 million represent cash and non-cash charges, respectively.
(8) The percent of net sales column for income taxes is calculated as a % of income (loss) before income taxes.