EX-99.B 3 a5619002ex99b.htm EXHIBIT 99B

Exhibit 99(b)
Page 1 of 7

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF NET INCOME (LOSS)
FOR THE THREE MONTHS AND NINE MONTHS ENDED JANUARY 27, 2008 AND JANUARY 28, 2007
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
 

THREE MONTHS ENDED

       

Amounts

Percent of Sales

January 27, January 28, % Over

January 27,

January 28,
2008 2007 (Under)   2008   2007  
 
Net sales $ 60,482 55,712 8.6 % 100.0 % 100.0 %
Cost of sales 53,706 51,001 5.3 % 88.8 % 91.5

%

            Gross profit

6,776 4,711 43.8 % 11.2 % 8.5 %
 
Selling, general and
administrative expenses 5,117 6,394 (20.0) % 8.5 % 11.5 %
Restructuring expense 412 1,275 (67.7) % 0.7 % 2.3 %

            Income (loss) from operations

1,247 (2,958) 142.2 % 2.1 % (5.3) %
 
Interest expense 753 952 (20.9) % 1.2 % 1.7 %
Interest income (77) (50) 54.0 % (0.1) % (0.1) %
Other income (72) (157) (54.1) % (0.1) % (0.3) %

            Income (loss) before income taxes

643 (3,703) 117.4 % 1.1 % (6.6) %
 
Income taxes* (260) (1,482) (82.5) % (40.4) % 40.0 %

            Net income (loss)

$ 903 (2,221) 140.7 % 1.5 % (4.0) %
 
Net income (loss) per share-basic $0.07 ($0.19) 136.8 %
Net income (loss) per share-diluted $0.07 ($0.19) 136.8 %
Net income (loss) per share, diluted, excluding restructuring
and related charges (see proforma statement on page 6) $0.11 ($0.01) N.M.
Average shares outstanding-basic 12,635 11,773 7.3 %
Average shares outstanding-diluted 12,738 11,773 8.2 %
 
 
 
NINE MONTHS ENDED
 
Amounts Percent of Sales
January 27,

January 28,

% Over January 27, January 28,
2008 2007 (Under)   2008 2007
 
Net sales $ 190,048 177,337 7.2 %

100.0

% 100.0 %
Cost of sales 165,794 156,575 5.9 % 87.2 % 88.3 %

            Gross profit

24,254 20,762 16.8 % 12.8 % 11.7 %
 
Selling, general and
administrative expenses 17,275 19,240 (10.2) % 9.1 % 10.8 %
Restructuring expense 759 1,742 (56.4) % 0.4 % 1.0 %

            Income (loss) from operations

6,220 (220) N.M. 3.3 % (0.1) %
 
Interest expense 2,380 2,841 (16.2) % 1.3 % 1.6 %
Interest income (197) (147) 34.0 % (0.1) % (0.1) %
Other expense (income) 625 (98) N.M.   0.3 % (0.1) %

            Income (loss) before income taxes

3,412 (2,816) 221.2 % 1.8 % (1.6) %
 
Income taxes* 105 (1,540) (106.8) % 3.1 % 54.7 %

            Net income (loss)

$ 3,307 (1,276) 359.2 %

1.7

% (0.7) %
 
Net income (loss) per share-basic $0.26 ($0.11) 336.4 %
Net income (loss) per share-diluted $0.26 ($0.11) 336.4 %
Net income per share, diluted, excluding restructuring
and related charges (see proforma statement on page 7) $0.39 $0.18 116.7 %
Average shares outstanding-basic 12,617 11,710 7.7 %
Average shares outstanding-diluted

12,770

11,710 9.1 %
 
* 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
JANUARY 27, 2008, JANUARY 28, 2007 AND APRIL 29, 2007
Unaudited
(Amounts in Thousands)
         
Amounts Increase
January 27, January 28, (Decrease)   * April 29,
2008 2007 Dollars Percent   2007
 
Current assets
Cash and cash equivalents $ 15,500 10,675 4,825 45.2 % 10,169
Accounts receivable 23,370 23,755 (385) (1.6) % 29,290
Inventories 37,923 42,717 (4,794) (11.2) % 40,630
Deferred income taxes 5,376 7,120 (1,744) (24.5) % 5,376
Assets held for sale 4,972 1,231 3,741 303.9 % 2,499
Income taxes receivable 423 - 423 100.0 % -
Other current assets 995 2,710 (1,715) (63.3) % 1,824
Total current assets 88,559 88,208 351 0.4 % 89,788
Property, plant and equipment, net 32,218 40,784 (8,566) (21.0) % 37,773
Goodwill 4,114 4,114 - 0.0 % 4,114
Deferred income taxes 25,993 23,232 2,761 11.9 % 25,683
Other assets 2,442 2,683 (241) (9.0) % 2,588
Total assets $ 153,326 159,021 (5,695) (3.6) % 159,946
 
Current liabilities
Current maturities of long-term debt $ 8,569 4,744 3,825 80.6 % 16,046
Lines of credit 2,783 - 2,783 100.0 % 2,593
Accounts payable 19,036 18,051 985 5.5 % 23,585
Accrued expenses 10,422 7,704 2,718 35.3 % 8,670
Accrued restructuring 1,875 3,490 (1,615) (46.3) % 3,282
Income taxes payable - current (1) - 4,136 (4,136) (100.0) % 4,579
Total current liabilities 42,685 38,125 4,560 12.0 % 58,755
 

Income taxes payable - long-term (1)

4,497 - 4,497 100.0 % -
Long-term debt , less current maturities 22,026 41,965 (19,939) (47.5) % 22,114
Total liabilities 69,208 80,090 (10,882) (13.6) % 80,869
Shareholders' equity 84,118 78,931 5,187 6.6 % 79,077
Total liabilities and
shareholders' equity $ 153,326 159,021 (5,695) (3.6) % 159,946
Shares outstanding 12,635 12,555 80 0.6 % 12,569
 
 
* Derived from audited financial statements
 
(1) Amounts as of January 27, 2008 reflect the adoption of Financial Accounting Standards Board (FASB)
Interpretation No. 48, Accounting for Uncertainty in Income Taxes" during the first quarter of fiscal 2008.

Page 3 of 7

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED JANUARY 27, 2008 AND JANUARY 28, 2007
Unaudited
(Amounts in Thousands)
         
 
NINE MONTHS ENDED
 
Amounts
January 27, January 28,
2008 2007
 
Cash flows from operating activities:
Net income (loss) $ 3,307 (1,276)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation 4,264 5,651
Amortization of other assets 280 59
Stock-based compensation 520 406
Excess tax benefit related to stock options exercised (21) -
Deferred income taxes 73 (3,056)
Loss on impairment of equipment 256 -
Restructuring expenses, net of gain on sale of related assets 123 (546)

Changes in assets and liabilities:

Accounts receivable 6,140 5,294
Inventories 2,707 (1,270)
Other current assets 829 787
Other assets (128) (46)
Accounts payable (3,716) (2,507)
Accrued expenses 1,651 (141)
Accrued restructuring (1,483) (564)
Income taxes 16 1,648
Net cash provided by operating activities 14,818 4,439
 
Cash flows from investing activities:
Capital expenditures (4,303) (2,492)
Acquisition of assets - (2,500)
Proceeds from the sale of buildings and equipment 2,336 3,260
Net cash used in investing activities (1,967) (1,732)
 
Cash flows from financing activities:
Net proceeds from lines of credit 190 -
Payments on vendor-financed capital expenditures (571) (927)
Payments on long-term debt (7,565) (3,513)
Proceeds from the issuance of long-term debt - 2,500
Proceeds from common stock issued 405 194
Excess tax benefit related to stock options exercised 21 -
Net cash used in financing activities (7,520) (1,746)
Increase in cash and cash equivalents 5,331 961
Cash and cash equivalents at beginning of period 10,169 9,714
Cash and cash equivalents at end of period $ 15,500 10,675
 
Free Cash Flow (1) $ 12,301 4,280
 
                     
 
(1) Free Cash Flow reconciliation is as follows: 3rd Qtr 3rd Qtr
  FY 2008   FY 2007
A) Net cash provided by operating activities $ 14,818 4,439
B) Minus: Capital Expenditures (4,303) (2,492)
C) Add: Proceeds from the sale of buildings and equipment 2,336 3,260
D) Minus: Payments on vendor-financed capital expenditures (571) (927)
E) Add: Excess tax benefit related to stock options exercised 21 -
$ 12,301 4,280

Page 4 of 7

CULP, INC. FINANCIAL INFORMATION RELEASE
SALES, GROSS PROFIT AND OPERATING INCOME (LOSS) BY SEGMENT
FOR THE THREE MONTHS ENDED JANUARY 27, 2008 AND JANUARY 28, 2007
   
 
(Amounts in thousands)
 
 
THREE MONTHS ENDED (UNAUDITED)
 
Amounts Percent of Total Sales
January 27, January 28, % Over January 27, January 28,
Net Sales by Segment 2008 2007 (Under)   2008   2007  
 
Mattress Fabrics $ 30,880 24,396 26.6 % 51.1 % 43.8 %
Upholstery Fabrics 29,602 31,316 (5.5) % 48.9 % 56.2 %
 
Net Sales $ 60,482 55,712 8.6 % 100.0 % 100.0 %
 
 
Gross Profit by Segment Gross Profit Margin
 
Mattress Fabrics $ 4,200 4,215 (0.4) % 13.6 % 17.3 %
Upholstery Fabrics 3,181 3,269 (2.7) % 10.7 % 10.4 %
Subtotal 7,381 7,484 (1.4) % 12.2 % 13.4 %
 
Loss on impairment of equipment (256) (1) - (100.0) % (0.4) % 0.0 %
Restructuring related charges (349) (2) (2,773) (4) (87.4) % (0.6) % (5.0) %
 
Gross Profit $ 6,776 4,711 43.8 % 11.2 % 8.5 %
 
 
Selling, General and Administrative expenses by Segment Percent of Sales
 
Mattress Fabrics $ 1,571 1,706 (7.9) % 5.1 % 7.0 %
Upholstery Fabrics 2,787 3,765 (26.0) % 9.4 % 12.0 %
Unallocated Corporate expenses 746 895 (16.6) % 1.2 % 1.6 %
5,104 6,366 (19.8) % 8.4 % 11.4 %
 
Restructuring related charges 13 (2) 28 (4) (53.6) % 0.0 % 0.1 %
 
Selling, General and Administrative expenses $ 5,117 6,394 (20.0) % 8.5 % 11.5 %
 
 
Operating Income (loss) by Segment Operating Income (Loss) Margin
 
Mattress Fabrics $ 2,628 2,509 4.7 % 8.5 % 10.3 %
Upholstery Fabrics 395 (496) 179.6 % 1.3 % (1.6) %
Unallocated corporate expenses (746) (895) (16.6) % (1.2) % (1.6) %
Subtotal 2,277 1,118 103.7 % 3.8 % 2.0 %
 
 
Loss on impairment of equipment (256) (1) - (100.0) % (0.4) % 0.0 %
Restructuring expense and restructuring related charges (774) (3) (4,076) (5) (81.0) % (1.3) % (7.3) %
 
Operating income (loss) $ 1,247 (2,958) 142.2 % 2.1 % (5.3) %
 
 
Depreciation by Segment
 
Mattress Fabrics $ 874 912 (4.2) %
Upholstery Fabrics 497 710 (30.0) %
Subtotal 1,371 1,622 (15.5) %
Accelerated Depreciation - 665 (100.0) %
Total Depreciation 1,371 2,287 (40.1) %
 
 
Notes:
(1) The $256 represents an impairment loss on older and existing equipment that was sold after

      January 27, 2008 and is being replaced by newer and more efficient equipment. This impairment

      loss pertains to the mattress fabrics segment.

(2) The $349 restructuring related charge represents $218 for other operating costs associated

      with closed plant facilities and $131 for inventory markdowns. The $13 restructuring related

      charge represents other operating costs associated with closed plant facilities.

(3) The $774 restructuring and related charge represents $238 for employee termination benefits,

      $231 for other operating costs associated with closed plant facilities, $131 for inventory

      markdowns, $93 for a write-down of a building, $68 for lease termination and other exit costs,

      $57 for asset movement costs, and a credit of $44 for sales proceeds received on equipment

      with no carrying value. Of this total charge, $349 was recorded in cost of sales, $13 was

      recorded in selling, general, and administrative expenses, and $412 was recorded in

      restructuring expense. The total $774 restructuring and related charge pertains to the

      upholstery fabrics segment.

(4) The $2.8 million represents restructuring related charges of $2.2 million for inventory markdowns,

      $665 for accelerated depreciation, and a credit of $52 for other operating costs associated with

      closed plant facilities. The $28 restructuring related charge represents other operating costs

      associated with closed plant facilities.

(5) The $4.1 million restructuring and related charge represents $2.2 million for inventory markdowns,

      $1.2 million for employee termination benefits, $665 for accelerated depreciation, $272 for

      write-downs of equipment, $181 for asset movement costs, $61 for lease termination and other

      exit costs, a credit of $24 for other operating costs associated with closed plant facilities, and a credit

      of $455 for sales proceeds received on equipment with no carrying value. Of this total charge, $2.8

      million was recorded in cost of sales, $28 was recorded in selling, general, and administrative

      expenses and $1.3 million was recorded in restructuring expense. The total $4.1 million

      restructuring and related charge pertains to the upholstery fabrics segment.

Page 5 of 7

CULP, INC. FINANCIAL INFORMATION RELEASE
SALES, GROSS PROFIT AND OPERATING INCOME (LOSS) BY SEGMENT
FOR THE NINE MONTHS ENDED JANUARY 27, 2008 AND JANUARY 28, 2007
   
 
(Amounts in thousands)
 
 
NINE MONTHS ENDED (UNAUDITED)
 
Amounts Percent of Total Sales
January 27, January 28, % Over January 27, January 28,
Net Sales by Segment 2008 2007 (Under)   2008   2007  
 
Mattress Fabrics $ 103,426 69,734 48.3 % 54.4 % 39.3 %
Upholstery Fabrics 86,622 107,603 (19.5) % 45.6 % 60.7 %
 
Net Sales $ 190,048 177,337 7.2 % 100.0 % 100.0 %
 
 
Gross Profit by Segment Gross Profit Margin
 
Mattress Fabrics $ 16,043 11,880 35.0 % 15.5 % 17.0 %
Upholstery Fabrics 9,922 12,691 (21.8) % 11.5 % 11.8 %
Subtotal 25,965 24,571 5.7 % 13.7 % 13.9 %
 
Loss on impairment of equipment (256) (1) - (100.0) % (0.1) % 0.0 %
Restructuring related charges (1,455) (2) (3,809) (4) (61.8) % (0.8) % (2.1) %
 
Gross Profit $ 24,254 20,762 16.8 % 12.8 % 11.7 %
 
 
Selling, General and Administrative expenses by Segment Percent of Sales
 
Mattress Fabrics $ 5,779 5,043 14.6 % 5.6 % 7.2 %
Upholstery Fabrics 8,877 11,219 (20.9) % 10.2 % 10.4 %
Unallocated Corporate expenses 2,554 2,920 (12.5) % 1.3 % 1.6 %
Subtotal 17,210 19,182 (10.3) % 9.1 % 10.8 %
 
Restructuring related charges 65 (2) 58 (4) 12.1 % 0.0 % 0.0 %
 
Selling, General and Administrative expenses $ 17,275 19,240 (10.2) % 9.1 % 10.8 %
 
 
Operating Income (loss) by Segment Operating Income (Loss) Margin
 
Mattress Fabrics $ 10,264 6,837 50.1 % 9.9 % 9.8 %
Upholstery Fabrics 1,045 1,472 (29.0) % 1.2 % 1.4 %
Unallocated corporate expenses (2,554) (2,920) (12.5) % (1.3) % (1.6) %
Subtotal 8,755 5,389 62.5 % 4.6 % 3.0 %
 
Loss on impairment of equipment (256) (1) - (100.0) % (0.1) % 0.0 %
Restructuring expense and restructuring related charges (2,279) (3) (5,609) (5) (59.4) % (1.2) % (3.2) %
 
Operating income (loss) $ 6,220 (220) N.M.   3.3 % (0.1) %
 
 
Depreciation by Segment
 
Mattress Fabrics $ 2,668 2,771 (3.7) %
Upholstery Fabrics 1,596 2,215 (27.9) %
Subtotal 4,264 4,986 (14.5) %
Accelerated Depreciation - 665 (100.0) %
Total Depreciation 4,264 5,651 (24.5) %

Notes:
(1) The $256 represents an impairment loss on older and existing equipment that was sold after January 27, 2008 and is being

      replaced by newer and more efficient equipment. This impairment loss pertains to the mattress fabrics segment.

(2) The $1.4 million restructuring related charge represents $920 for other operating costs associated with closed plant

      facilities and $535 for inventory markdowns. The $65 restructuring related charge represents other operating costs

      associated with plant facilities.

(3) The $2.3 million represents $985 for other operating costs associated with closed plant facilities, $612 for lease

      termination and other exit costs, $535 for inventory markdowns, $482 for write-downs of buildings and equipment,

      $184 for asset movement costs, a credit of $160 for employee termination benefits, and a credit of $359 for sales

      proceeds received on equipment with no carrying value. Of this total charge, $1.4 million was recorded in cost of sales,

      $65 was recorded in selling, general, and administrative expenses, and $759 was recorded in restructuring expense.

      The total $2.3 million restructuring and related charge pertains to the upholstery fabrics segment.

(4) The $3.8 million represents restructuring related charges of $2.3 million for inventory markdowns, $744 for other operating costs

      associated with the closed plant facilities, and $665 for accelerated depreciation. The $58 restructuring related charge represents

      other operating costs associated with closed plant facilities.

(5) The $5.6 million represents restructuring and related charges of $2.3 million for inventory markdowns, $990 for employee termination

      benefits, $914 for asset movement costs, $802 for other operating costs associated with closed plant facilities, $665 for

      accelerated deprecation, $395 for lease termination and other exit costs, $334 for write-downs of buildings and equipment,

      and a credit of $890 for sales proceeds received on equipment with no carrying value. Of this total charge, $3.8 million was recorded

      in cost of sales, $58 was recorded in selling, general, and administrative expenses, and $1.7 million was recorded in restructuring

      expense. The total $5.6 million restructuring and related charge pertains to the upholstery fabrics segment.

Page 6 of 7

CULP, INC. FINANCIAL INFORMATION RELEASE
PROFORMA CONSOLIDATED STATEMENTS OF NET INCOME (LOSS)
FOR THE THREE MONTHS ENDED JANUARY 27, 2008 AND JANUARY 28, 2007
(Unaudited)
(Amounts in Thousands, Except for Per Share Data)
         
THREE MONTHS ENDED
 
As Reported January 27, 2008 As Reported January 28, 2007 Proforma
January 27, % of % of Proforma Net % of January 28, % of % of Proforma Net % of % Over
2008 Sales Adjustments Sales of Adjustments Sales 2007 Sales Adjustments Sales of Adjustments Sales (Under)
 
Net sales $ 60,482 100.0% - 60,482 100.0% 55,712 100.0% - 55,712 100.0% 8.6%
Cost of sales 53,706 88.8% (349) -0.6% (1) 53,357 88.2% 51,001 91.5% (2,773) -5.0% (3) 48,228 86.6% 10.6%
Gross profit 6,776 11.2% (349) -0.6% 7,125 11.8% 4,711 8.5% (2,773) -5.0% 7,484 13.4% -4.8%
 
Selling, general and
administrative expenses 5,117 8.5% (13) 0.0% (1) 5,104 8.4% 6,394 11.5% (28) -0.1% (3) 6,366 11.4% -19.8%
Restructuring expense 412 0.7% (412) -0.7% (2) - 0.0% 1,275 2.3% (1,275) -2.3% (4) - 0.0% 0.0%
Income (loss) from operations 1,247 2.1% (774) -1.3% 2,021 3.3% (2,958) -5.3% (4,076) -7.3% 1,118 2.0% 80.8%
 
Interest expense 753 1.2% - 0.0% 753 1.2% 952 1.7% - 0.0% 952 1.7% -20.9%
Interest income (77) -0.1% - 0.0% (77) -0.1% (50) -0.1% - 0.0% (50) -0.1% 54.0%
Other income (72) -0.1% - 0.0% (72) -0.1% (157) -0.3% - 0.0% (157) -0.3% -54.1%
Income (loss) before income taxes 643 1.1% (774) -1.3% (5) 1,417 2.3% (3,703) -6.6% (4,076) -7.3% (6) 373 0.7% 279.9%
 
Income taxes (7) (260) -40.4% (223) 28.8% (37) -2.6% (1,482) 40.0% (1,954) 47.9% 472 126.5% 107.8%
Net income (loss) $ 903 1.5% (551) -0.9% 1,454 2.4% (2,221) -4.0% (2,122) -3.8% (99) -0.2% 1568.7%
 
Net income (loss) per share-basic $0.07 ($0.04) $0.11 ($0.19) ($0.18) ($0.01)
Net income (loss) per share-diluted $0.07 ($0.04) $0.11 ($0.19) ($0.18) ($0.01)
Average shares outstanding-basic 12,635 12,635 12,635 11,773 11,773 11,773
Average shares outstanding-diluted 12,738 12,635 12,738 11,773 11,773 11,773
 
Notes:
(1) The $349 restructuring related charge represents $218 for other operating costs associated with closed plant facilities

      and $131 for inventory markdowns. The $13 restructuring related charge represents other operating costs

      associated with closed plant facilities.

(2) The $412 restructuring charge represents $238 for employee termination benefits, $93 for fixed asset write-downs,

      $68 for lease termination and other exit costs, $57 for asset movement costs, and a credit of $44 for sales proceeds

      received on equipment with no carrying value.

(3) The $2.8 million represents restructuring related charges of $2.2 million for inventory markdowns, $665 for accelerated

      depreciation, and a credit of $52 for other operating costs associated with closed plant facilities. The $28 restructuring

      related charge represents other operating costs associated with closed plant facilities.

(4) The $1.3 million restructuring charge represents $1.2 million for employee termination benefits, $272 for write-downs of

      equipment, $181 for asset movement costs, $61 for lease termination and other exit costs, and a credit of $455 for sales

      proceeds received on equipment with no carrying value.

(5) Of this total charge, $550 and $224 represent cash and non-cash charges, respectively.
(6) Of this total charge, $3.1 million and $1.0 million represent cash charges and non-cash charges, respectively.
(7)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. FINANCIAL INFORMATION RELEASE
PROFORMA CONSOLIDATED STATEMENTS OF NET INCOME (LOSS)
FOR THE NINE MONTHS ENDED JANUARY 27, 2008 AND JANUARY 28, 2007
(Unaudited)
(Amounts in Thousands, Except for Per Share Data)
 
NINE MONTHS ENDED
 
As Reported January 27, 2008 As Reported January 28, 2007 Proforma
January 27, % of % of Proforma Net % of January 28, % of % of Proforma Net % of % Over
2008 Sales Adjustments Sales of Adjustments Sales 2007 Sales Adjustments Sales of Adjustments Sales (Under)
 
Net sales $ 190,048 100.0% - 190,048 100.0% 177,337 100.0% - 177,337 100.0% 7.2%
Cost of sales 165,794 87.2% (1,455) -0.8% (1) 164,339 86.5% 156,575 88.3% (3,809) -2.1% (3) 152,766 86.1% 7.6%
Gross profit 24,254 12.8% (1,455) -0.8% 25,709 13.5% 20,762 11.7% (3,809) -2.1% 24,571 13.9% 4.6%
 
Selling, general and
administrative expenses 17,275 9.1% (65) 0.0% (1) 17,210 9.1% 19,240 10.8% (58) 0.0% (3) 19,182 10.8% -10.3%
Restructuring expense 759 0.4% (759) -0.4% (2) - 0.0% 1,742 1.0% (1,742) -1.0% (4) - 0.0% 0.0%
Income (loss) from operations 6,220 3.3% (2,279) -1.2% 8,499 4.5% (220) -0.1% (5,609) -3.2% 5,389 3.0% 57.7%
 
Interest expense 2,380 1.3% - 0.0% 2,380 1.3% 2,841 1.6% - 0.0% 2,841 1.6% -16.2%
Interest income (197) -0.1% - 0.0% (197) -0.1% (147) -0.1% - 0.0% (147) -0.1% 34.0%
Other expense (income) 625 0.3% - 0.0% 625 0.3% (98) -0.1% - 0.0% (98) -0.1% -737.8%
Income (loss) before income taxes 3,412 1.8% (2,279) -1.2% (5) 5,691 3.0% (2,816) -1.6% (5,609) -3.2% (6) 2,793 1.6% 103.8%
 
Income taxes (7) 105 3.1% (603) 26.5% 708 12.4% (1,540) 54.7% (2,269) 40.5% 729 26.1% -2.9%
Net income (loss) $ 3,307 1.7% (1,676) -0.9% 4,983 2.6% (1,276) -0.7% (3,340) -1.9% 2,064 1.2% 141.4%
 
Net income (loss) per share-basic $0.26 ($0.13) $0.39 ($0.11) ($0.29) $0.18
Net income (loss) per share-diluted $0.26 ($0.13) $0.39 ($0.11) ($0.29) $0.18
Average shares outstanding-basic 12,617 12,617 12,617 11,710 11,710 11,710
Average shares outstanding-diluted 12,770 12,617 12,770 11,710 11,710 11,713
 
Notes:
(1) The $1.4 million restructuring related charge represents $920 for other operating costs associated with closed plant facilities

      and $535 for inventory markdowns. The $65 restructuring related charge represents other operating costs associated with

      closed plant facilities.

(2) The $759 restructuring charge represents $612 for lease termination and other exit costs, $482 for write-downs of buildings

      and equipment, $184 for asset movement costs, a credit of $160 for employee termination benefits, and a credit of $359

      for sales proceeds received on equipment with no carrying value.

(3) The $3.8 million represents restructuring related charges of $2.3 million for inventory markdowns, $744 for other operating

      costs associated with closed plant facilities, and $665 for accelerated depreciation. The $58 restructuring related charge

      represents other operating costs associated with closed plant facilities.

(4) The $1.7 million restructuring charge represents $990 for employee termination benefits, $913 for asset movement costs,

      $395 for lease termination and other exit costs, $334 for write-downs of buildings and equipment, and a credit of $890 for

      sales proceeds received on equipment with no carrying value.

(5) Of this total charge, $1.3 million and $1.0 million represent cash and non-cash charges, respectively.
(6) Of this total charge, $2.3 million and $3.3 million represent cash and non-cash charges, respectively.
(7) The percent of net sales column for income taxes is calculated as a % of income (loss) before income taxes.