Exhibit 99(b)
Page 1 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF LOSS
FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 28, 2007
AND JANUARY 29, 2006
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
THREE MONTHS ENDED
------------------------------------------------------------------------
Amounts Percent of Sales
-------------------------- ----------------------------
January 28, January 29, % Over January 28, January 29,
2007 2006 (Under) 2007 2006
------------ ------------ ------------ ------------- -------------
Net sales $ 55,712 61,035 (8.7)% 100.0 % 100.0 %
Cost of sales 51,001 56,858 (10.3)% 91.5 % 93.2 %
------------ ------------ ------------ ------------- -------------
Gross profit 4,711 4,177 12.8 % 8.5 % 6.8 %
Selling, general and
administrative expenses 6,394 6,098 4.9 % 11.5 % 10.0 %
Restructuring expense 1,275 343 271.7 % 2.3 % 0.6 %
------------ ------------ ------------ ------------- -------------
Loss from operations (2,958) (2,264) (30.7)% (5.3)% (3.7)%
Interest expense 952 1,063 (10.4)% 1.7 % 1.7 %
Interest income (50) (43) 16.3 % (0.1)% (0.1)%
Other (income) expense (157) 135 216.3 % (0.3)% 0.2 %
------------ ------------ ------------ ------------- -------------
Loss before income taxes (3,703) (3,419) (8.3)% (6.6)% (5.6)%
Income taxes* (1,482) (1,250) 18.6 % 40.0 % 36.6 %
------------ ------------ ------------ ------------- -------------
Net loss $ (2,221) (2,169) (2.4)% (4.0)% (3.6)%
============ ============ ============ ============= =============
Net loss per share-basic ($0.19) ($0.19) 0.0 %
Net loss per share-diluted ($0.19) ($0.19) 0.0 %
Net loss per share, diluted, excluding restructuring ($0.01) ($0.10) (90.0)%
and related charges (see proforma
statement on page 6)
Average shares outstanding-basic 11,773 11,562 1.8 %
Average shares outstanding-diluted 11,773 11,562 1.8 %
NINE MONTHS ENDED
------------------------------------------------------------------------
Amounts Percent of Sales
-------------------------- ----------------------------
January 28, January 29, % Over January 28, January 29,
2007 2006 (Under) 2007 2006
------------ ------------ ------------ ------------- -------------
Net sales $ 177,337 190,383 (6.9)% 100.0 % 100.0 %
Cost of sales 156,575 174,098 (10.1)% 88.3 % 91.4 %
------------ ------------ ------------ ------------- -------------
Gross profit 20,762 16,285 27.5 % 11.7 % 8.6 %
Selling, general and
administrative expenses 19,240 22,480 (14.4)% 10.8 % 11.8 %
Restructuring expense 1,742 6,581 (73.5)% 1.0 % 3.5 %
------------ ------------ ------------ ------------- -------------
Loss from operations (220) (12,776) 98.3 % (0.1)% (6.7)%
Interest expense 2,841 2,955 (3.9)% 1.6 % 1.6 %
Interest income (147) (78) 88.5 % (0.1)% (0.0)%
Other (income) expense (98) 481 120.4 % (0.1)% 0.3 %
------------ ------------ ------------ ------------- -------------
Loss before income taxes (2,816) (16,134) 82.5 % (1.6)% (8.5)%
Income taxes* (1,540) (5,873) (73.8)% 54.7 % 36.4 %
------------ ------------ ------------ ------------- -------------
Net loss $ (1,276) (10,261) 87.6 % (0.7)% (5.4)%
============ ============ ========== ============ ===========
Net loss per share-basic ($0.11) ($0.89) 87.6 %
Net loss per share-diluted ($0.11) ($0.89) 87.6 %
Net income (loss) per share, diluted, excluding restructuring $0.18 ($0.18) 200.0 %
and related charges (see proforma statement on page 7)
Average shares outstanding-basic 11,710 11,557 1.3 %
Average shares outstanding-diluted 11,710 11,557 1.3 %
* Percent of sales column for income taxes is calculated as a % of loss before income taxes.
Page 2 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED BALANCE SHEETS
JANUARY 28, 2007, JANUARY 29, 2006 AND APRIL 30, 2006
(UNAUDITED)
(Amounts in Thousands)
Amounts Increase
------------------------------------ (Decrease)
January 28, January 29, ------------------------------- * April 30,
2007 2006 Dollars Percent 2006
------------------- --------------- --------------- ------------ -----------
Current assets
Cash and cash equivalents $ 10,675 12,870 (2,195) (17.1)% 9,714
Accounts receivable 23,755 28,485 (4,730) (16.6)% 29,049
Inventories 42,717 42,099 618 1.5 % 36,693
Deferred income taxes 7,120 7,054 66 0.9 % 7,120
Assets held for sale 1,231 - 1,231 100.0 % 3,111
Other current assets 2,710 1,649 1,061 64.3 % 1,287
------------------- --------------- --------------- ------------ -----------
Total current assets 88,208 92,157 (3,949) (4.3)% 86,974
Property, plant & equipment, net 40,784 52,562 (11,778) (22.4)% 44,639
Goodwill 4,114 4,114 - 0.0 % 4,114
Deferred income taxes 23,232 15,731 7,501 47.7 % 20,176
Other assets 2,683 1,775 908 51.2 % 1,564
------------------- --------------- --------------- ------------ -----------
Total assets $ 159,021 166,339 (7,318) (4.4)% 157,467
=================== =============== =============== ============ ===========
Current liabilities
Current maturities of long-term debt $ 4,744 8,049 (3,305) (41.1)% 8,060
Accounts payable 18,051 20,669 (2,618) (12.7)% 20,835
Accrued expenses 7,704 9,751 (2,047) (21.0)% 7,845
Accrued restructuring 3,490 4,299 (809) (18.8)% 4,054
Income taxes payable 4,136 635 3,501 551.3 % 2,488
------------------- --------------- --------------- ------------ -----------
Total current liabilities 38,125 43,403 (5,278) (12.2)% 43,282
Long-term debt , less current maturities 41,965 47,229 (5,264) (11.1)% 39,662
------------------- --------------- --------------- ------------ -----------
Total liabilities 80,090 90,632 (10,542) (11.6)% 82,944
Shareholders' equity 78,931 75,707 3,224 4.3 % 74,523
------------------- --------------- --------------- ------------ -----------
Total liabilities and
shareholders' equity $ 159,021 166,339 (7,318) (4.4)% 157,467
=================== =============== =============== ============ ===========
Shares outstanding 12,555 11,566 989 8.6 % 11,655
=================== =============== =============== ============ ===========
* Derived from audited financial statements
Page 3 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED JANUARY 28, 2007 AND JANUARY 29, 2006
(UNAUDITED)
(Amounts in Thousands)
NINE MONTHS ENDED
Amounts
--------------------------------
January 28, January 29,
2007 2006
--------------- --------------
Cash flows from operating activities:
Net loss $ (1,276) (10,261)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation 5,651 12,275
Amortization of other assets 59 70
Stock-based compensation 406 139
Deferred income taxes (3,056) (5,645)
Restructuring expenses, net of gain on sale of related assets (546) 3,057
Changes in assets and liabilities:
Accounts receivable 5,294 339
Inventories (1,270) 8,400
Other current assets 787 1,042
Other assets (46) (129)
Accounts payable (2,507) (1,695)
Accrued expenses (141) 195
Accrued restructuring (564) (1,551)
Income taxes payable 1,648 (909)
--------------- --------------
Net cash provided by operating activities 4,439 5,327
--------------- --------------
Cash flows from investing activities:
Capital expenditures (2,492) (5,428)
Acquisition of assets (2,500) -
Proceeds from the sale of buildings and equipment 3,260 3,950
--------------- --------------
Net cash used in investing activities (1,732) (1,478)
--------------- --------------
Cash flows from financing activities:
Payments on vendor-financed capital expenditures (927) (871)
Payments on long-term debt (3,513) (292)
Proceeds from issuance of long-term debt 2,500 5,020
Proceeds from common stock issued 194 57
--------------- --------------
Net cash (used in) provided by financing activities (1,746) 3,914
--------------- --------------
Increase in cash and cash equivalents 961 7,763
Cash and cash equivalents at beginning of period 9,714 5,107
--------------- --------------
Cash and cash equivalents at end of period $ 10,675 12,870
=============== ==============
Free Cash Flow (1) $ 4,280 2,978
=============== ==============
- -----------------------------------------------------------------------------------------------------------------------
(1) Free Cash Flow reconciliation is as follows: 3rd Qtr 3rd Qtr
FY 2007 FY 2006
-----------------------------------
A) Net cash provided by operating activities $ 4,439 5,327
B) Minus: Capital expenditures (2,492) (5,428)
C) Add: Proceeds from the sale of buildings and equipment 3,260 3,950
D) Minus: Payments on vendor-financed capital expenditures (927) (871)
--------------- --------------
$ 4,280 2,978
=============== ==============
- -----------------------------------------------------------------------------------------------------------------------
Page 4 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE
SALES, GROSS PROFIT AND OPERATING INCOME (LOSS) BY SEGMENT
FOR THE THREE MONTHS ENDED JANUARY 28, 2007 AND JANUARY 29, 2006
(Amounts in thousands)
THREE MONTHS ENDED (UNAUDITED)
-------------------------------------------------------------------------
Amounts Percent of Total Sales
--------------------------- ------------------------------
January 28, January 29, % Over January 28, January 29,
Net Sales by Segment 2007 2006 (Under) 2007 2006
- ------------------------------------------------ ------------- ----------- ---------- ------------- --------------
Mattress Fabrics $ 24,396 22,681 7.6 % 43.8 % 37.2 %
Upholstery Fabrics 31,316 38,354 (18.4)% 56.2 % 62.8 %
------------- ----------- ---------- ------------------------------
Net Sales $ 55,712 61,035 (8.7)% 100.0 % 100.0 %
============= =========== ========== ==============================
Gross Profit by Segment Gross Profit Margin
- ------------------------------------------------ ------------------------------
Mattress Fabrics $ 4,215 3,442 22.5 % 17.3 % 15.2 %
Upholstery Fabrics 3,269 2,070 57.9 % 10.4 % 5.4 %
------------- ----------- ---------- ------------------------------
Subtotal 7,484 5,512 35.8 % 13.4 % 9.0 %
Restructuring related charges (2,773)(1) (1,335)(3) 107.7 % (5.0)% (2.2)%
------------- ----------- ---------- ------------------------------
Gross Profit $ 4,711 4,177 12.8 % 8.5 % 6.8 %
============= =========== ========== ==============================
Selling, General and Administrative expenses by Segment Percent of Sales
- ------------------------------------------------------------------- ------------------------------
Mattress Fabrics $ 1,706 1,643 3.8 % 7.0 % 7.2 %
Upholstery Fabrics 3,765 3,717 1.3 % 12.0 % 9.7 %
Unallocated Corporate expenses 895 738 21.3 % 1.6 % 1.2 %
------------- ----------- ---------- ------------------------------
6,366 6,098 4.4 % 11.4 % 10.0 %
Restructuring related charges 28 (1) - 100.0 % 0.1 % 0.0 %
------------- ----------- ---------- ------------------------------
Selling, General and Administrative expenses$ 6,394 6,098 4.9 % 11.5 % 10.0 %
============= =========== ========== ==============================
Operating Income (loss) by Segment Operating Income (Loss) Margin
- ------------------------------------------------ ------------------------------
Mattress Fabrics $ 2,509 1,799 39.5 % 10.3 % 7.9 %
Upholstery Fabrics (496) (1,647) 69.9 % (1.6)% (4.3)%
Unallocated corporate expenses (895) (738) 21.3 % (1.6)% (1.2)%
------------- ----------- ---------- ------------------------------
Subtotal 1,118 (586) (290.8)% 2.0 % (1.0)%
Restructuring expense (1,275)(2) (343)(4) 271.7 % (2.3)% (0.6)%
Restructuring related charges (2,801)(1) (1,335)(3) 109.8 % (5.0)% (2.2)%
------------- ----------- ---------- ------------------------------
Loss from operations $ (2,958) (2,264) (30.7)% (5.3)% (3.7)%
============= =========== ========== ==============================
Depreciation by Segment
- ------------------------------------------------
Mattress Fabrics $ 912 965 (5.5)%
Upholstery Fabrics 710 1,366 (48.0)%
------------- ----------- ----------
Subtotal 1,622 2,331 (30.4)%
Accelerated Depreciation 665 108 515.7 %
------------- ----------- ----------
Total Depreciation $ 2,287 2,439 (6.2)%
============= =========== ==========
Notes:
(1) The $2.8 million represents restructuring related charges of $2.2 million
for inventory markdowns, $665,000 for accelerated deprecation, and a credit
of $24,000 for other operating costs associated with the closing of plant
facilities.
(2) The $1.3 million represents restructuring expenses of $1.2 million for
employee termination benefits, $272,000 for write-downs of equipment,
$181,000 for asset movement costs, $61,000 for lease termination costs, and
a credit of $455,000 for sales proceeds received on equipment with no
carrying value.
(3) The $1.3 million represents restructuring related charges of $838,000 for
inventory markdowns, $389,000 for other operating costs associated with the
closing of plant facilities, and $108,000 for accelerated depreciation.
(4) The $343,000 represents restructuring expenses of $371,000 for asset
movement costs, $133,000 for employee termination benefits, $51,000 for
lease termination costs, a credit of $77,000 for sales proceeds received on
equipment with no carrying value, and a credit of $135,000 to reflect
current estimates of sub-lease income.
Page 5 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE
SALES, GROSS PROFIT AND OPERATING INCOME (LOSS) BY SEGMENT
FOR THE NINE MONTHS ENDED JANUARY 28, 2007 AND JANUARY 29, 2006
(Amounts in thousands)
NINE MONTHS ENDED (UNAUDITED)
-------------------------------------------------------------------------
Amounts Percent of Total Sales
-------------------------- -----------------------------
January 28, January 29, % Over January 28, January 29,
Net Sales by Segment 2007 2006 (Under) 2007 2006
- ---------------------------------------------- ------------ ---------- ----------- ------------- -------------
Mattress Fabrics $ 69,734 69,586 0.2 % 39.3 % 36.6 %
Upholstery Fabrics 107,603 120,797 (10.9)% 60.7 % 63.4 %
------------ ---------- ----------- ------------- -------------
Net Sales $ 177,337 190,383 (6.9)% 100.0 % 100.0 %
============ ========== =========== ============= =============
Gross Profit by Segment Gross Profit Margin
- ---------------------------------------------- -----------------------------
Mattress Fabrics $ 11,880 9,839 20.7 % 17.0 % 14.1 %
Upholstery Fabrics 12,691 10,027 26.6 % 11.8 % 8.3 %
------------ ---------- ----------- ------------- -------------
Subtotal 24,571 19,866 23.7 % 13.9 % 10.4 %
Restructuring related charges (3,809)(1) (3,581) (3) 6.4 % (2.1)% (1.9)%
------------ ---------- ----------- ------------- -------------
Gross Profit $ 20,762 16,285 27.5 % 11.7 % 8.6 %
============ ========== =========== ============= =============
Selling, General and Administrative expenses by Segment Percent of Sales
- ------------------------------------------------------------ -----------------------------
Mattress Fabrics $ 5,043 5,016 0.5 % 7.2 % 7.2 %
Upholstery Fabrics 11,219 12,120 (7.4)% 10.4 % 10.0 %
Unallocated Corporate expenses 2,920 2,322 25.8 % 1.6 % 1.2 %
------------ ---------- ----------- ------------- -------------
Subtotal 19,182 19,458 (1.4)% 10.8 % 10.2 %
Restructuring related charges 58 (1) 3,022 (4) (98.1)% 0.0 % 1.6 %
------------ ---------- ----------- ------------- -------------
Selling, General and Administrative expens$s 19,240 22,480 (14.4)% 10.8 % 11.8 %
============ ========== =========== ============= =============
Operating Income (loss) by Segment Operating Income (Loss) Margin
- ---------------------------------------------- ------------------------------
Mattress Fabrics $ 6,837 4,823 41.8 % 9.8 % 6.9 %
Upholstery Fabrics 1,472 (2,093) 170.3 % 1.4 % (1.7)%
Unallocated corporate expenses (2,920) (2,322) 25.8 % (1.6)% (1.2)%
------------ ---------- ----------- ------------- -------------
Subtotal 5,389 408 1,220.8 % 3.0 % 0.2 %
Restructuring expense (1,742)(2) (6,581)(5) (73.5)% (1.0)% (3.5)%
Restructuring related charges (3,867)(1) (6,603)(3)(4) (41.4)% (2.2)% (3.5)%
------------ ---------- ----------- ------------- -------------
Loss from operations $ (220) (12,776) 98.3 % (0.1)% (6.7)%
============ ========== =========== ============= =============
Depreciation by Segment
- ----------------------------------------------
Mattress Fabrics $ 2,771 2,714 2.1 %
Upholstery Fabrics 2,215 4,582 (51.7)%
------------ ---------- -----------
Subtotal 4,986 7,296 (31.7)%
Accelerated Depreciation 665 4,979 (86.6)%
------------ ---------- -----------
Total Depreciation $ 5,651 12,275 (54.0)%
============ ========== ===========
Notes:
(1) The $3.9 million represents restructuring related charges of $2.3 million
for inventory markdowns, $802,000 for other operating costs associated with
the closing of plant facilities, and $665,000 for accelerated depreciation.
(2) The $1.7 million represents restructuring expenses of $990,000 for employee
termination benefits, $914,000 for asset movement costs, $395,000 for lease
termination and other exit costs, $334,000 for write-downs of buildings and
equipment, and a credit of $890,000 for sales proceeds on equipment with no
carrying value.
(3) The $3.6 million represents restructuring related charges of $1.9 million
for accelerated depreciation, $1.2 million for inventory markdowns, and
$455,000 other operating costs associated with the closing of plant
facilities.
(4) The $3.0 million represents accelerated depreciation.
(5) The $6.6 million represents restructuring charges of $2.8 million for
write-downs of buildings and equipment, $1.9 million for asset movement
costs, $1.5 million for employee termination benefits, and $292,000 for
lease termination costs.
Page 6 of 7
CULP, INC.
PROFORMA CONSOLIDATED STATEMENTS OF LOSS
FOR THE THREE MONTHS ENDED JANUARY 28, 2007 AND JANUARY 29, 2006
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
THREE MONTHS ENDED
------------------------------------------------------------------------
As Reported January 28, 2007
January 28, % of % of Proforma Net % of
2007 Sales Adjustments Sales of Adjustment Sales
-------------------- -------------------- ---------------------
Net sales $ 55,712 100.0% - 0.0% 55,712 100.0%
Cost of sales 51,001 91.5% (2,773) -5.0% (1) 48,228 86.6%
-------------------- -------------------- ---------------------
Gross profit 4,711 8.5% (2,773) -5.0% 7,484 13.4%
Selling, general and
administrative expenses 6,394 11.5% (28) -0.1% (1) 6,366 11.4%
Restructuring expense 1,275 2.3% (1,275) -2.3% (2) - 0.0%
-------------------- -------------------- ---------------------
Income (loss) from operations (2,958) -5.3% (4,076) -7.3% 1,118 2.0%
Interest expense 952 1.7% - 0.0% 952 1.7%
Interest income (50) -0.1% - 0.0% (50) -0.1%
Other (income) expense (157) -0.3% - 0.0% (157) -0.3%
-------------------- -------------------- ---------------------
Income (loss) before income taxes (3,703) -6.6% (4,076) -7.3% 373 0.7%
Income taxes (6) (1,482) 40.0% (1,954) 47.9% 472 126.5% (5)
-------------------- -------------------- ---------------------
Net loss $ (2,221) -4.0% (2,122) -3.8% (99) -0.2%
==================== ==================== =====================
Net loss per share-basic ($0.19) ($0.18) ($0.01)
Net loss per share-diluted ($0.19) ($0.18) ($0.01)
Average shares outstanding-basic 11,773 11,773 11,773
Average shares outstanding-diluted 11,773 11,773 11,773
THREE MONTHS ENDED
--------------------------------------------------------------------------------
As Reported January 29, 2006 Proforma
January 29, % of % of Proforma Net % of % Over
2006 Sales Adjustments Sales of Adjustments Sales (Under)
--------------------- --------------------------------------------- --------
Net sales $ 61,035 100.0% - 0.0% 61,035 100.0% -8.7%
Cost of sales 56,858 93.2% (1,335) -2.2% (3) 55,523 91.0% -13.1%
--------------------- --------------------- --------------------- --------
Gross profit 4,177 6.8% (1,335) -2.2% 5,512 9.0% 35.8%
Selling, general and
administrative expenses 6,098 10.0% - 0.0% 6,098 10.0% 4.4%
Restructuring expense 343 0.6% (343) -0.6% (4) - 0.0% 0.0%
--------------------- --------------------- --------------------- --------
Income (loss) from operations (2,264) -3.7% (1,678) -2.7% (586) -1.0% 290.8%
Interest expense 1,063 1.7% - 0.0% 1,063 1.7% -10.4%
Interest income (43) -0.1% - 0.0% (43) -0.1% -16.3%
Other (income) expense 135 0.2% - 0.0% 135 0.2% -216.3%
--------------------- --------------------- --------------------- --------
Income (loss) before income taxes (3,419) -5.6% (1,678) -2.7% (1,741) -2.9% 121.4%
Income taxes (6) (1,250) 36.6% (637) 38.0% (613) 35.2% 177.0%
--------------------- --------------------- --------------------- --------
Net loss $ (2,169) -3.6% (1,041) -1.7% (1,128) -1.8% 91.2%
===================== ===================== ===================== ========
Net loss per share-basic ($0.19) ($0.09) ($0.10)
Net loss per share-diluted ($0.19) ($0.09) ($0.10)
Average shares outstanding-basic 11,562 11,562 11,562
Average shares outstanding-diluted 11,562 11,562 11,562
Notes:
(1) The $2.8 million represents restructuring related charges of $2.2 million
for inventory markdowns, $665,000 for accelerated depreciation, and a
credit of $24,000 for other operating costs associated with the closing of
plant facilities.
(2) The $1.3 million represents restructuring expenses of $1.2 million for
employee termination benefits, $272,000 for write-downs of equipment,
$181,000 for asset movement costs, $61,000 for lease termination costs, and
a credit of $455,000 for sales proceeds received on equipment with no
carrying value.
(3) The $1.3 million represents restructuring related charges of $838,000 for
inventory markdowns, $389,000 for other operating costs associated with the
closing of plant facilities, and $108,000 for accelerated depreciation.
(4) The $343,000 represents restructuring expenses of $371,000 for asset
movement costs, $133,000 for employee termination benefits, $51,000 for
lease termination costs, a credit of $77,000 for sales proceeds received on
equipment with no carrying value and a credit of $135,000 to reflect
current estimates of sub-lease income.
(5) The effective income tax rate includes income tax expense for the exercise
of share options relating to the company's non-qualified stock option plan
in the third quarter of fiscal 2007. Without these transactions, the third
quarter fiscal 2007 effective income tax rate would have been 5.3%.
(6) The percent of net sales column for income taxes is calculated as % of
income (loss) before income taxes.
Page 7 of 7
CULP, INC.
PROFORMA CONSOLIDATED STATEMENTS OF NET INCOME (LOSS)
FOR THE NINE MONTHS ENDED JANUARY 28, 2007 AND JANUARY 29, 2006
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
NINE MONTHS ENDED
----------------------------------------------------------------------------
As Reported January 28, 2007
January 28, % of % of Proforma Net % of
2007 Sales Adjustments Sales of Adjustments Sales
----------------------- ---------------------- -----------------------
Net sales $ 177,337 100.0% - 0.0% 177,337 100.0%
Cost of sales 156,575 88.3% (3,809) -2.1% (1) 152,766 86.1%
----------------------- ---------------------- -----------------------
Gross profit 20,762 11.7% (3,809) -2.1% 24,571 13.9%
Selling, general and
administrative expenses 19,240 10.8% (58) 0.0% (1) 19,182 10.8%
Restructuring expense 1,742 1.0% (1,742) -1.0% (2) - 0.0%
----------------------- ---------------------- -----------------------
Income (loss) from operations (220) -0.1% (5,609) -3.2% 5,389 3.0%
Interest expense 2,841 1.6% - 0.0% 2,841 1.6%
Interest income (147) -0.1% - 0.0% (147) -0.1%
Other (income) expense (98) -0.1% - 0.0% (98) -0.1%
----------------------- ---------------------- -----------------------
Income (loss) before income taxes (2,816) -1.6% (5,609) -3.2% 2,793 1.6%
Income taxes (7) (1,540) 54.7% (2,269) 40.5% 729 26.1% (6
----------------------- ---------------------- -----------------------
Net income (loss) $ (1,276) -0.7% (3,340) -1.9% 2,064 1.2%
======================= ====================== =======================
Net income (loss) per share-basic ($0.11) ($0.29) $0.18
Net income (loss) per share-diluted ($0.11) ($0.29) $0.18
Average shares outstanding-basic 11,710 11,710 11,710
Average shares outstanding-diluted 11,710 11,710 11,713
NINE MONTHS ENDED
------------------------------------------------------------------------------------
As Reported January 29, 2006 Proforma
January 29, % of % of Proforma Net % of % Over
2006 Sales Adjustments Sales of Adjustments Sales (Under)
---------------------- ------------------------------------------------- ---------
Net sales $ 190,383 100.0% - 0.0% 190,383 100.0% -6.9%
Cost of sales 174,098 91.4% (3,581) -1.9% (3) 170,517 89.6% -10.4%
---------------------- ----------------------- ---------------------- ---------
Gross profit 16,285 8.6% (3,581) -1.9% 19,866 10.4% 23.7%
Selling, general and
administrative expenses 22,480 11.8% (3,022) -1.6% (4) 19,458 10.2% -1.4%
Restructuring expense 6,581 3.5% (6,581) -3.5% (5) - 0.0% 0.0%
---------------------- ----------------------- ---------------------- ---------
Income (loss) from operations (12,776) -6.7% (13,184) -6.9% 408 0.2% 1220.8%
Interest expense 2,955 1.6% - 0.0% 2,955 1.6% -3.9%
Interest income (78) 0.0% - 0.0% (78) 0.0% -88.5%
Other (income) expense 481 0.3% - 0.0% 481 0.3% -120.4%
---------------------- ----------------------- ---------------------- ---------
Income (loss) before income taxes (16,134) -8.5% (13,184) -6.9% (2,950) -1.5% 194.7%
Income taxes (7) (5,873) 36.4% (5,010) 38.0% (863) 29.3% 184.5%
---------------------- ----------------------- ---------------------- ---------
Net income (loss) $ (10,261) -5.4% (8,174) -4.3% (2,087) -1.1% 198.9%
====================== ======================= ====================== =========
Net income (loss) per share-basic ($0.89) ($0.71) ($0.18)
Net income (loss) per share-diluted ($0.89) ($0.71) ($0.18)
Average shares outstanding-basic 11,557 11,557 11,557
Average shares outstanding-diluted 11,557 11,557 11,557
Notes:
(1) The $3.9 million represents restructuring related charges of $2.3 million
for inventory markdowns, $802,000 for other operating costs associated with
the closing of plant facilities, and $665,000 for accelerated depreciation.
(2) The $1.7 million represents restructuring expenses of $990,000 for employee
termination benefits, $914,00 for asset movement costs, $395,000 for lease
termination and other exit costs, $334,000 for write-downs of buildings and
equipment, and a credit of $890,000 for sales proceeds on equipment with no
carrying value.
(3) The $3.6 million represents restructuring related charges of $1.9 million
for accelerated depreciation, $1.2 million for inventory markdowns, and
$455,000 for other operating costs associated with the closing of plant
facilities.
(4) The $3.0 million represents accelerated depreciation.
(5) The $6.6 million represents restructuring charges of $2.8 million for
write-downs of buildings and equipment, $1.9 million for asset movement
costs, $1.5 million for employee termination benefits, and $292,000 for
lease termination costs.
(5) The effective income tax rate includes income tax expense for the exercise
of share options relating to the company's non-qualified stock option plan
in the third quarter of fiscal 2007. Without these transactions the
effective income tax rate for the nine-month period ending January 28, 2007
would have been 9.9%.
(7) The percent of net sales column for income taxes is calculated as a % of
loss before income taxes.