Exhibit 99(b) Page 1 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF LOSS
FOR THE THREE MONTHS AND TWELVE MONTHS ENDED APRIL 29, 2007 AND APRIL 30, 2006
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
THREE MONTHS ENDED
----------------------------------------------------------------
Amounts Percent of Sales
------------------------ ------------------------
April 29, April 30, % Over April 29, April 30,
2007 2006 (Under) 2007 2006
----------- ----------- ----------- ----------- -----------
Net sales $ 73,196 70,718 3.5 % 100.0 % 100.0 %
Cost of sales 62,753 63,135 (0.6)% 85.7 % 89.3 %
----------- ----------- ----------- ----------- -----------
Gross profit 10,443 7,583 37.7 % 14.3 % 10.7 %
Selling, general and
administrative expenses 7,790 6,474 20.3 % 10.6 % 9.2 %
Restructuring expense 1,792 3,692 (51.5)% 2.4 % 5.2 %
----------- ----------- ----------- ----------- -----------
Income (loss) from operations 861 (2,583) 133.3 % 1.2 % (3.7)%
Interest expense 940 1,055 (10.9)% 1.3 % 1.5 %
Interest income (60) (48) 25.0 % (0.1)% (0.1)%
Other expense 166 152 9.2 % 0.2 % 0.2 %
----------- ----------- ----------- ----------- -----------
Loss before income taxes (185) (3,742) 95.1 % (0.3)% (5.3)%
Income taxes* (145) (2,208) (93.4)% 78.4 % 59.0 %
----------- ----------- ----------- ----------- -----------
Net loss $ (40) (1,534) 97.4 % (0.1)% (2.2)%
=========== =========== =========== =========== ===========
Net loss per share-basic $0.00 ($0.13) 100.0 %
Net loss per share-diluted $0.00 ($0.13) 100.0 %
Net income per share, diluted, excluding $0.14 $0.14 0.0 %
restructuring and related charges
Average shares outstanding-basic 12,559 11,594 8.3 %
Average shares outstanding-diluted 12,559 11,594 8.3 %
TWELVE MONTHS ENDED
----------------------------------------------------------------
Amounts Percent of Sales
------------------------ ------------------------
April 29, April 30, % Over April 29, April 30,
2007 2006 (Under) 2007 2006
----------- ----------- ----------- ----------- -----------
Net sales $ 250,533 261,101 (4.0)% 100.0 % 100.0 %
Cost of sales 219,328 237,233 (7.5)% 87.5 % 90.9 %
----------- ----------- ----------- ----------- -----------
Gross profit 31,205 23,868 30.7 % 12.5 % 9.1 %
Selling, general and
administrative expenses 27,030 28,954 (6.6)% 10.8 % 11.1 %
Restructuring expense 3,534 10,273 (65.6)% 1.4 % 3.9 %
----------- ----------- ----------- ----------- -----------
Income (loss) from operations 641 (15,359) 104.2 % 0.3 % (5.9)%
Interest expense 3,781 4,010 (5.7)% 1.5 % 1.5 %
Interest income (207) (126) 64.3 % (0.1)% (0.0)%
Other expense 68 634 (89.3)% 0.0 % 0.2 %
----------- ----------- ----------- ----------- -----------
Loss before income taxes (3,001) (19,877) 84.9 % (1.2)% (7.6)%
Income taxes* (1,685) (8,081) (79.1)% 56.1 % 40.7 %
----------- ----------- ----------- ----------- -----------
Net loss $ (1,316) (11,796) 88.8 % (0.5)% (4.5)%
=========== =========== =========== =========== ===========
Net loss per share-basic ($0.11) ($1.02) 89.2 %
Net loss per share-diluted ($0.11) ($1.02) 89.2 %
Net income (loss) per share, diluted, excluding
restructuring and related charges $0.32 ($0.04) 900.0 %
Average shares outstanding-basic 11,922 11,567 3.1 %
Average shares outstanding-diluted 11,922 11,567 3.1 %
* 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
APRIL 29, 2007 AND APRIL 30, 2006
(UNAUDITED)
(Amounts in Thousands)
Amounts Increase
------------------------------------- (Decrease)
April 29, April 30, -------------------------------------
2007 2006 Dollars Percent
----------------- ----------------- ----------------- -----------------
Current assets
Cash and cash equivalents $ 10,169 9,714 455 4.7 %
Accounts receivable 29,290 29,049 241 0.8 %
Inventories 40,630 36,693 3,937 10.7 %
Deferred income taxes 5,376 7,120 (1,744) (24.5)%
Assets held for sale 2,499 3,111 (612) (19.7)%
Other current assets 1,824 1,287 537 41.7 %
----------------- ----------------- ----------------- -----------------
Total current assets 89,788 86,974 2,814 3.2 %
Property, plant and equipment, net 37,773 44,639 (6,866) (15.4)%
Goodwill 4,114 4,114 - 0.0 %
Deferred income taxes 25,683 20,176 5,507 27.3 %
Other assets 2,588 1,564 1,024 65.5 %
----------------- ----------------- ----------------- -----------------
Total assets $ 159,946 157,467 2,479 1.6 %
================= ================= ================= =================
Current liabilities
Current maturities of long-term debt $ 16,046 8,060 7,986 99.1 %
Line of credit 2,593 - 2,593 100.0 %
Accounts payable 23,585 20,835 2,750 13.2 %
Accrued expenses 8,670 7,845 825 10.5 %
Accrued restructuring 3,282 4,054 (772) (19.0)%
Income taxes payable 4,579 2,488 2,091 84.0 %
----------------- ----------------- ----------------- -----------------
Total current liabilities 58,755 43,282 15,473 35.7 %
Long-term debt, less current maturities 22,114 39,662 (17,548) (44.2)%
----------------- ----------------- ----------------- -----------------
Total liabilities 80,869 82,944 (2,075) (2.5)%
Shareholders' equity 79,077 74,523 4,554 6.1 %
----------------- ----------------- ----------------- -----------------
Total liabilities and
shareholders' equity $ 159,946 157,467 2,479 1.6 %
================= ================= ================= =================
Shares outstanding 12,569 11,655 914 7.8 %
================= ================= ================= =================
Page 3 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED APRIL 29, 2007 AND APRIL 30, 2006
(UNAUDITED)
(Amounts in Thousands)
TWELVE MONTHS ENDED
--------------------------------
Amounts
--------------------------------
April 29, April 30,
2007 2006
--------------- ---------------
Cash flows from operating activities:
Net loss $ (1,316) (11,796)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Regular depreciation 6,602 9,402
Accelerated depreciation 1,247 4,960
Amortization of other assets 150 93
Stock-based compensation 525 139
Deferred income taxes (3,763) (10,156)
Restructuring expenses, net of gain on sale of
related assets 536 6,582
Changes in assets and liabilities:
Accounts receivable (241) (225)
Inventories 817 13,806
Other current assets 1,673 1,404
Other assets (42) (44)
Accounts payable 3,133 (1,302)
Accrued expenses 825 (1,711)
Accrued restructuring (772) (1,796)
Income taxes payable 2,091 944
--------------- ---------------
Net cash provided by operating activities 11,465 10,300
--------------- ---------------
Cash flows from investing activities:
Capital expenditures (3,762) (6,242)
Acquisition of assets (2,500) -
Proceeds from the sale of buildings and equipment 3,315 3,950
--------------- ---------------
Net cash used in investing activities (2,947) (2,292)
--------------- ---------------
Cash flows from financing activities:
Payments on vendor-financed capital expenditures (1,356) (942)
Proceeds from lines of credit 2,593 -
Payments on long-term debt (12,062) (7,848)
Proceeds from issuance of long-term debt 2,500 5,020
Proceeds from common stock issued 262 369
--------------- ---------------
Net cash used in financing activities (8,063) (3,401)
--------------- ---------------
Increase in cash and cash equivalents 455 4,607
Cash and cash equivalents at beginning of period 9,714 5,107
--------------- ---------------
Cash and cash equivalents at end of period $ 10,169 9,714
=============== ===============
Free Cash Flow (1) $ 9,662 7,066
=============== ===============
- ----------------------------------------------------------------------------------------------------------------
(1) Free Cash Flow reconciliation is as follows:
FY 2007 FY 2006
--------------- ---------------
A) Net cash provided by operating activities $ 11,465 10,300
B) Minus: Capital Expenditures (3,762) (6,242)
C) Add: Proceeds from the sale of buildings and equipment 3,315 3,950
D) Minus: Payments on vendor-financed capital expenditures (1,356) (942)
--------------- ---------------
$ 9,662 7,066
=============== ===============
- ----------------------------------------------------------------------------------------------------------------
Page 4 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE
SALES, GROSS PROFIT AND OPERATING INCOME (LOSS) BY SEGMENT
FOR THE THREE MONTHS ENDED APRIL 29, 2007 AND APRIL 30, 2006
(UNAUDITED)
(Amounts in thousands)
THREE MONTHS ENDED
--------------------------------------------------------------------
Amounts Percent of Total Sales
------------------------- -------------------------
April 29, April 30, % Over April 29, April 30,
Net Sales by Segment 2007 2006 (Under) 2007 2006
- ------------------------------------------------------- ----------- ----------- ----------- ----------- -----------
Mattress Fabrics $ 38,062 24,102 57.9 % 52.0 % 34.1 %
Upholstery Fabrics 35,134 46,616 (24.6)% 48.0 % 65.9 %
----------- ----------- ----------- ----------- -----------
Net Sales $ 73,196 70,718 3.5 % 100.0 % 100.0 %
=========== =========== =========== =========== ===========
Gross Profit by Segment Gross Profit Margin
- ------------------------------------------------------- -------------------------
Mattress Fabrics $ 6,730 3,740 79.9 % 17.7 % 15.5 %
Upholstery Fabrics 4,707 4,882 (3.6)% 13.4 % 10.5 %
----------- ----------- ----------- ----------- -----------
Subtotal 11,437 8,622 32.6 % 15.6 % 12.2 %
Restructuring related charges (994)(1) (1,039)(3) (4.3)% (1.4)% (1.5)%
----------- ----------- ----------- ----------- -----------
Gross Profit $ 10,443 7,583 37.7 % 14.3 % 10.7 %
=========== =========== =========== =========== ===========
Sales, General and Administrative expenses by Segment Percent of Sales
- ------------------------------------------------------- -------------------------
Mattress Fabrics $ 2,813 1,708 64.7 % 7.4 % 7.1 %
Upholstery Fabrics 3,845 3,742 2.8 % 10.9 % 8.0 %
Unallocated corporate expenses 1,132 1,024 10.5 % 1.5 % 1.4 %
----------- ----------- ----------- ----------- -----------
Selling, General and Administrative expenses $ 7,790 6,474 20.3 % 10.6 % 9.2 %
=========== =========== =========== =========== ===========
Operating Income (Loss)
Operating Income (loss) by Segment Margin
- ------------------------------------------------------- -------------------------
Mattress Fabrics $ 3,916 2,032 92.7 % 10.3 % 8.4 %
Upholstery Fabrics 863 1,140 (24.3)% 2.5 % 2.4 %
Unallocated corporate expenses (1,132) (1,024) (10.5)% (1.5)% (1.4)%
----------- ----------- ----------- ----------- -----------
Subtotal 3,647 2,148 69.8 % 5.0 % 3.0 %
Restructuring expense and restructuring related charges (2,786)(2) (4,731)(4) (41.1)% (3.8)% (6.7)%
----------- ----------- ----------- ----------- -----------
Operating income (loss) $ 861 (2,583) 133.3 % 1.2 % (3.7)%
=========== =========== =========== =========== ===========
Depreciation by Segment
- -------------------------------------------------------
Mattress Fabrics $ 908 948 (4.2)%
Upholstery Fabrics 704 1,158 (39.2)%
----------- ----------- -----------
Subtotal 1,612 2,106 (23.5)%
Accelerated Depreciation 584 (19) (3,173.7)%
----------- ----------- -----------
Total Depreciation $ 2,196 2,087 5.2 %
=========== =========== ===========
(1) The $1.0 million represents restructuring related charges of $582,000 for
accelerated depreciation and $412,000 for operating costs associated with
the closing of plant facilities.
(2) The $2.8 million represents restructuring and related charges of $1.1
million for write-downs of buildings and equipment, $582,000 for
accelerated depreciation,$479,000 for asset movement costs, $412,000 for
operating costs associated with the closing of plant facilities, $312,000
for lease termination costs, a credit of $40,000 for sales proceeds
received on equipment with no carrying value, and a credit of $82,000 for
employee termination benefits. Of this total charge $1.8 million and $1.0
million are included in restructuring expense and cost of sales,
respectively.
(3) The $1.0 million represents restructuring related charges of $849,000 for
inventory markdowns, $210,000 for operating costs associated with the
closing of plant facilities, and a credit of $19,000 for accelerated
depreciation.
(4) The $4.7 million represents restructuring and related charges of $3.2
million for write-downs of buildings and equipment, $849,000 for inventory
markdowns,$310,000 for employee termination benefits, $219,000 for asset
movement costs, and $210,000 for operating costs associated with the
closing of plant facilities, a credit of $19,000 for accelerated
depreciation, and a credit of $80,000 for lease termination costs. Of this
total charge, $3.7 million and $1.0 million are included in restructuring
expense and cost of sales, respectively.
Page 5 of 7
CULP, INC. FINANCIAL INFORMATION RELEASE
SALES, GROSS PROFIT AND OPERATING INCOME (LOSS) BY SEGMENT
FOR THE TWELVE MONTHS ENDED APRIL 29, 2007 AND APRIL 30, 2006
(UNAUDITED)
(Amounts in thousands)
TWELVE MONTHS ENDED
--------------------------------------------------------------------
Amounts Percent of Total Sales
------------------------- -------------------------
April 29, April 30, % Over April 29, April 30,
Net Sales by Segment 2007 2006 (Under) 2007 2006
- ------------------------------------------------------- ----------- ----------- ----------- ----------- -----------
Mattress Fabrics $ 107,797 93,688 15.1 % 43.0 % 35.9 %
Upholstery Fabrics 142,736 167,413 (14.7)% 57.0 % 64.1 %
----------- ----------- ----------- ----------- -----------
Net Sales $ 250,533 261,101 (4.0)% 100.0 % 100.0 %
=========== =========== =========== =========== ===========
Gross Profit by Segment Gross Profit Margin
- ------------------------------------------------------- -------------------------
Mattress Fabrics $ 18,610 13,579 37.0 % 17.3 % 14.5 %
Upholstery Fabrics 17,397 14,909 16.7 % 12.2 % 8.9 %
----------- ----------- ----------- ----------- -----------
Subtotal 36,007 28,488 26.4 % 14.4 % 10.9 %
Restructuring related charges (4,802)(1) (4,620)(4) 3.9 % (1.9)% (1.8)%
----------- ----------- ----------- ----------- -----------
Gross Profit $ 31,205 23,868 30.7 % 12.5 % 9.1 %
=========== =========== =========== =========== ===========
Sales, General and Administrative expenses by Segment Percent of Sales
- ------------------------------------------------------- -------------------------
Mattress Fabrics $ 7,856 6,724 16.8 % 7.3 % 7.2 %
Upholstery Fabrics 15,065 15,863 (5.0)% 10.6 % 9.5 %
Unallocated corporate expenses 4,051 3,345 21.1 % 1.6 % 1.3 %
----------- ----------- ----------- ----------- -----------
Subtotal 26,972 25,932 4.0 % 10.8 % 9.9 %
Restructuring related charges 58 (2) 3,022 (5) (98.1)% 0.0 % 1.2 %
----------- ----------- ----------- ----------- -----------
Selling, General and Administrative expenses $ 27,030 28,954 (6.6)% 10.8 % 11.1 %
=========== =========== =========== =========== ===========
Operating Income (Loss)
Operating Income (loss) by Segment Margin
- ------------------------------------------------------- -------------------------
Mattress Fabrics $ 10,754 6,855 56.9 % 10.0 % 7.3 %
Upholstery Fabrics 2,332 (954) 344.4 % 1.6 % (0.6)%
Unallocated corporate expenses (4,051) (3,345) (21.1)% (1.6)% (1.3)%
----------- ----------- ----------- ----------- -----------
Subtotal 9,035 2,556 253.5 % 3.6 % 1.0 %
Restructuring expense and restructuring related charges (8,394)(3) (17,915)(6) (53.1)% (3.4)% (6.9)%
----------- ----------- ----------- ----------- -----------
Operating income (loss) $ 641 (15,359) 104.2 % 0.3 % (5.9)%
=========== =========== =========== =========== ===========
Depreciation by Segment
- -------------------------------------------------------
Mattress Fabrics $ 3,679 3,662 0.5 %
Upholstery Fabrics 2,923 5,740 (49.1)%
----------- ----------- -----------
Subtotal 6,602 9,402 (29.8)%
Accelerated Depreciation 1,247 4,960 (74.9)%
----------- ----------- -----------
Total Depreciation $ 7,849 14,362 (45.3)%
=========== =========== ===========
(1) The $4.8 million represents restructuring related charges of $2.4 million
for inventory markdowns, $1.2 million for accelerated depreciation, $1.2
million for operating costs associated with the closing of plant
facilities.
(2) The $58,000 represents operating costs associated with the closing of plant
facilities.
(3) The $8.4 million represents restructuring and related charges of $2.4
million for inventory markdowns, $1.5 million for write-downs of buildings
and equipment, $1.4 million for asset movement costs, $1.2 million for
accelerated depreciation, $1.2 million for operating costs associated with
the closing of plant facilities, $909,000 for employee termination
benefits, $706,000 for lease termination and other exit costs, and a credit
of $930,000 for sales proceeds received on equipment with no carrying
value. Of this total charge, $4.8 million, $58,000, and $3.5 million were
included in cost of sales, selling, general, and administrative expenses,
and restructuring expense, respectively.
(4) The $4.6 million represents restructuring related charges of $2.0 million
for inventory markdowns, $1.9 million for accelerated depreciation,
$665,000 for operating costs associated with closing of plant facilities.
(5) The $3.0 million represents accelerated depreciation.
(6) The $17.9 million represents restructuring and related charges of $6.0
million for write-downs of buildings and equipment, $5.0 million for
accelerated depreciation, $2.2 million for asset movement costs, $2.0
million for inventory markdowns, $1.7 million for employee termination
benefits, $665,000 for operating costs associated with the closing of plant
facilities, and $316,000 for lease termination and other exit costs. Of
this total charge $4.6 million, $3.0 million, and $10.3 million were
included in cost of sales, selling, general, and administrative expenses,
and restructuring expense, respectively.
Page 6 of 7
CULP, INC.
PROFORMA CONSOLIDATED STATEMENTS OF NET INCOME (LOSS)
FOR THE THREE MONTHS ENDED APRIL 29, 2007 AND APRIL 30, 2006
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
THREE MONTHS ENDED
----------------------------------------------------------------------------------
As Reported April 29, 2007
April 29, % of % of Proforma Net % of
2007 Sales Adjustments Sales of Adjustments Sales
------------------------ ------------------------ ------------------------
Net sales $ 73,196 100.0% 0 73,196 100.0%
Cost of sales 62,753 85.7% (994) -1.4% (1) 61,759 84.4%
------------------------ ------------------------ ------------------------
Gross profit 10,443 14.3% (994) -1.4% 11,437 15.6%
Selling, general and
administrative expenses 7,790 10.6% 0 0.0% 7,790 10.6%
Restructuring expense 1,792 2.4% (1,792) -2.4% (2) 0 0.0%
------------------------ ------------------------ ------------------------
Income (loss) from operations 861 1.2% (2,786) -3.8% 3,647 5.0%
Interest expense 940 1.3% 0 0.0% 940 1.3%
Interest income (60) -0.1% 0 0.0% (60) -0.1%
Other expense 166 0.2% 0 0.0% 166 0.2%
------------------------ ------------------------ ------------------------
Income (loss) before income taxes (185) -0.3% (2,786) -3.8% (1)(2) 2,601 3.6%
Income taxes (5) (145) 78.4% (965) 34.6% 820 31.5%
------------------------ ------------------------ ------------------------
Net income (loss) $ (40) -0.1% (1,821) -2.5% 1,781 2.4%
======================== ======================== ========================
Net income (loss) per share-basic $0.00 ($0.14) $0.14
Net income (loss) per share-diluted $0.00 ($0.14) $0.14
Average shares outstanding-basic 12,559 12,559 12,559
Average shares outstanding-diluted 12,559 12,559 12,566
THREE MONTHS ENDED
-------------------------------------------------------------------------------------------------
As Reported April 30, 2006 Proforma
April 30, % of % of Proforma Net % of % Over
2006 Sales Adjustments Sales of Adjustments Sales (Under)
------------------------ ------------------------ ------------------------ ------------
Net sales 70,718 100.0% 0 70,718 100.0% 3.5%
Cost of sales 63,135 89.3% (1,039) -1.5% (3) 62,096 87.8% -0.5%
------------------------ ------------------------ ------------------------ ------------
Gross profit 7,583 10.7% (1,039) -1.5% 8,622 12.2% 32.6%
Selling, general and
administrative expenses 6,474 9.2% 0 0.0% 6,474 9.2% 20.3%
Restructuring expense 3,692 5.2% (3,692) -5.2% (4) 0 0.0% 0.0%
------------------------ ------------------------ ------------------------ ------------
Income (loss) from
operations (2,583) -3.7% (4,731) -6.7% 2,148 3.0% 69.8%
Interest expense 1,055 1.5% 0 0.0% 1,055 1.5% -10.9%
Interest income (48) -0.1% 0 0.0% (48) -0.1% 25.0%
Other expense 152 0.2% 0 0.0% 152 0.2% 9.2%
------------------------ ------------------------ ------------------------ ------------
Income (loss) before
income taxes (3,742) -5.3% (4,731) -6.7% (3)(4) 989 1.4% 163.0%
Income taxes (5) (2,208) 59.0% (1,547) 32.7% (661) -66.8% 224.1%
------------------------ ------------------------ ------------------------ ------------
Net income (loss) (1,534) -2.2% (3,184) -4.5% 1,650 2.3% 7.9%
======================== ======================== ======================== ============
Net income (loss) per share-basic ($0.13) ($0.27) $0.14
Net income (loss) per share-diluted ($0.13) ($0.27) $0.14
Average shares outstanding-basic 11,594 11,594 11,594
Average shares outstanding-diluted 11,594 11,594 11,637
Notes:
(1) The $1.0 million represents restructuring related charges of $582,000 for
accelerated depreciation and $412,000 for operating costs associated with
the closing of plant facilities.
(2) The $1.8 million represents restructuring charges of $1.1 million for
write-downs of buildings and equipment, $479,000 for asset movement costs,
$312,000 for lease termination costs, a credit of $40,000 for sales
proceeds on equipment with no carrying value, and a credit of $82,000 for
employee termination benefits.
(3) The $1.0 million represents restructuring related charges of $849,000 for
inventory markdowns, $210,000 for operating costs associated with the
closing of plant facilities, and a credit of $19,000 for accelerated
depreciation.
(4) The $3.7 million represents restructuring and related charges of $3.2
million for write-downs of buildings and equipment, $310,000 for employee
termination benefits, $219,000 for asset movement costs, and a credit of
$80,000 for lease termination costs.
(5) 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 TWELVE MONTHS ENDED APRIL 29, 2007 AND APRIL 30, 2006
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
TWELVE MONTHS ENDED
----------------------------------------------------------------------------------
As Reported April 29, 2007
April 29, % of % of Proforma Net % of
2007 Sales Adjustments Sales of Adjustments Sales
------------------------ ------------------------ ------------------------
Net sales $ 250,533 100.0% 250,533 100.0%
Cost of sales 219,328 87.5% (4,802) -1.9% (1) 214,526 85.6%
------------------------ ------------------------ ------------------------
Gross profit 31,205 12.5% (4,802) -1.9% 36,007 14.4%
Selling, general and
administrative expenses 27,030 10.8% (58) 0.0% (2) 26,972 10.8%
Restructuring expense 3,534 1.4% (3,534) -1.4% (3) 0 0.0%
------------------------ ------------------------ ------------------------
Income (loss) from operations 641 0.3% (8,394) -3.4% 9,035 3.6%
Interest expense 3,781 1.5% 0 0.0% 3,781 1.5%
Interest income (207) -0.1% 0 0.0% (207) -0.1%
Other expense 68 0.0% 0 0.0% 68 0.0%
------------------------ ------------------------ ------------------------
Income (loss) before income
taxes (3,001) -1.2% (8,394) -3.4% (1)(2) 5,393 2.2%
(3)
Income taxes (7) (1,685) 56.1% (3,234) 38.5% 1,549 28.7%
------------------------ ------------------------ ------------------------
Net income (loss) $ (1,316) -0.5% (5,160) -2.1% 3,844 1.5%
======================== ======================== ========================
Net income (loss) per share-basic ($0.11) ($0.43) $0.32
Net income (loss) per share-diluted ($0.11) ($0.43) $0.32
Average shares outstanding-basic 11,922 11,922 11,922
Average shares outstanding-diluted 11,922 11,922 11,926
TWELVE MONTHS ENDED
-------------------------------------------------------------------------------------------------
As Reported April 30, 2006 Proforma
April 30, % of % of Proforma Net % of % Over
2006 Sales Adjustments Sales of Adjustments Sales (Under)
------------------------ ------------------------ ------------------------ ------------
Net sales 261,101 100.0% 0 261,101 100.0% -4.0%
Cost of sales 237,233 90.9% (4,620) -1.8% (4) 232,613 89.1% -7.8%
------------------------ ------------------------ ------------------------ ------------
Gross profit 23,868 9.1% (4,620) -1.8% 28,488 10.9% 26.4%
Selling, general and
administrative expenses 28,954 11.1% (3,022) -1.2% (5) 25,932 9.9% 4.0%
Restructuring expense 10,273 3.9% (10,273) -3.9% (6) 0 0.0% 0.0%
------------------------ ------------------------ ------------------------ ------------
Income (loss) from
operations (15,359) -5.9% (17,915) -6.9% 2,556 1.0% 253.5%
Interest expense 4,010 1.5% 0 0.0% 4,010 1.5% -5.7%
Interest income (126) 0.0% 0 0.0% (126) 0.0% 64.3%
Other expense 634 0.2% 0 0.0% 634 0.2% -89.3%
------------------------ ------------------------ ------------------------ ------------
Income (loss)
before income taxes (19,877) -7.6% (17,915) -6.9% (4)(5) (1,962) -0.8% 374.9%
(6)
Income taxes (7) (8,081) 40.7% (6,557) 36.6% (1,524) 77.7% 201.6%
------------------------ ------------------------ ------------------------ ------------
Net income (loss) (11,796) -4.5% (11,358) -4.4% (438) -0.2% 977.6%
======================== ======================== ======================== ============
Net income (loss) per share-basic ($1.02) ($0.98) ($0.04)
Net income (loss) per share-diluted ($1.02) ($0.98) ($0.04)
Average shares outstanding-basic 11,567 11,567 11,567
Average shares outstanding-diluted 11,567 11,567 11,567
Notes:
(1) The $4.8 million represents restructuring related charges of $2.4 million
for inventory markdowns, $1.2 million for accelerated depreciation, and
$1.2 million for operating costs associated with the closing of plant
facilities.
(2) The $58,000 represents operating costs associated with the closing of plant
facilities.
(3) The $3.5 million represents restructuring charges of $1.5 million for
write-downs of buildings and equipment, $1.4 million for asset movement
costs, $909,000 for employee termination benefits, $706,000 for lease
termination and other exit costs, and a credit of $930,000 for sales
proceeds on equipment with no carrying value.
(4) The $4.6 million represents restructuring related charges of $2.0 million
for inventory markdowns, $1.9 million for accelerated depreciation,
$665,000 for operating costs associated with the closing of plant
facilities.
(5) The $3.0 million represents accelerated depreciation.
(6) The $10.3 million represents $6.0 million for write-downs of buildings and
equipment, $2.2 million for asset movement costs, $1.7 million for employee
termination benefits, and $316,000 for lease termination and other exit
costs.
(7) The percent of net sales column for income taxes is calculated as a % of
income (loss) before income taxes.