EX-99.B 3 a5709346ex99_b.htm EXHIBIT 99(B)

Exhibit 99(b)
Page 1 of 7

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED STATEMENTS OF NET INCOME (LOSS)
FOR THE THREE MONTHS AND TWELVE MONTHS ENDED APRIL 27, 2008 AND APRIL 29, 2007
(UNAUDITED)
(Amounts in Thousands, Except for Per Share Data)
     
THREE MONTHS ENDED  
 
Amounts Percent of Sales
April 27, April 29, % Over April 27, April 29,
2008 2007 (Under) 2008 2007  
 
Net sales $ 63,998 $ 73,196 (12.6) % 100.0 % 100.0 %
Cost of sales 55,093 62,753 (12.2) % 86.1 % 85.7 %
Gross profit 8,905 10,443 (14.7) % 13.9 % 14.3 %
 
Selling, general and
administrative expenses 6,698 7,790 (14.0) % 10.5 % 10.6 %
Restructuring expense 127 1,792 (92.9) % 0.2 % 2.4 %
Income from operations 2,080 861 141.6 % 3.3 % 1.2 %
 
Interest expense 595 940 (36.7) % 0.9 % 1.3 %
Interest income (57) (60) (5.0) % (0.1) % (0.1) %
Other expense 112 166 (32.5) % 0.2 % 0.2 %
Income (loss) before income taxes 1,430 (185) N.M. 2.2 % (0.3) %
 
Income taxes* (647) (145) 346.2 % (45.2) % 78.4 %
Net income (loss) $ 2,077 $ (40) N.M.   3.2 % (0.1) %
 
Net income (loss) per share-basic $0.16 $0.00 100.0 %
Net income (loss) per share-diluted $0.16 $0.00 100.0 %
Net income per share, diluted, excluding restructuring
and related charges (see proforma statement on page 6) $0.18 $0.14 28.6 %
Average shares outstanding-basic 12,642 12,559 0.7 %
Average shares outstanding-diluted 12,729 12,559 1.4 %

TWELVE MONTHS ENDED
   
Amounts Percent of Sales
April 27, April 29, % Over April 27, April 29,
2008 2007 (1) (Under) 2008 2007  
 
Net sales $ 254,046 $ 250,533 1.4 % 100.0 % 100.0 %
Cost of sales 220,887 219,328 0.7 % 86.9 % 87.5 %
Gross profit 33,159 31,205 6.3 % 13.1 % 12.5 %
 
Selling, general and
administrative expenses 23,973 27,030 (11.3) % 9.4 % 10.8 %
Restructuring expense 886 3,534 (74.9) % 0.3 % 1.4 %
Income from operations 8,300 641 N.M. 3.3 % 0.3 %
 
Interest expense 2,975 3,781 (21.3) % 1.2 % 1.5 %
Interest income (254) (207) 22.7 % (0.1) % (0.1) %
Other expense 736 68 982.4 % 0.3 % 0.0 %
Income (loss) before income taxes 4,843 (3,001) N.M. 1.9 % (1.2) %
 
Income taxes* (542) (1,685) (67.8) % (11.2) % 56.1 %
Net income (loss) $ 5,385 $ (1,316) N.M.   2.1 % (0.5) %
 
Net income (loss) per share-basic $0.43 ($0.11) N.M.
Net income (loss) per share-diluted $0.42 ($0.11) N.M.
Net income per share, diluted, excluding restructuring
and related charges (see proforma statement on page 7) $0.57 $0.32 78.1 %
Average shares outstanding-basic 12,624 11,922 5.9 %
Average shares outstanding-diluted 12,765 11,922 7.1 %
 
* Percent of sales column for income taxes is calculated as a % of income (loss) before income taxes.
(1) Derived from audited financial statements.

Page 2 of 7

CULP, INC. FINANCIAL INFORMATION RELEASE
CONSOLIDATED BALANCE SHEETS
APRIL 27, 2008 AND APRIL 29, 2007
Unaudited
(Amounts in Thousands)
     
Amounts Increase
April 27, * April 29, (Decrease)
2008 2007 Dollars Percent
 
Current assets
Cash and cash equivalents $ 4,914 $ 10,169 (5,255) (51.7) %
Accounts receivable 27,073 29,290 (2,217) (7.6) %
Inventories 35,394 40,630 (5,236) (12.9) %
Deferred income taxes 4,380 5,376 (996) (18.5) %
Assets held for sale 5,610 2,499 3,111 124.5 %
Income taxes receivable 438 - 438 100.0 %
Other current assets 1,328 1,824 (496) (27.2) %
Total current assets 79,137 89,788 (10,651) (11.9) %
 
Property, plant and equipment, net 32,939 37,773 (4,834) (12.8) %
Goodwill 4,114 4,114 - 0.0 %
Deferred income taxes 29,430 25,683 3,747 14.6 %
Other assets 2,409 2,588 (179) (6.9) %
 
Total assets $ 148,029 $ 159,946 (11,917) (7.5) %
 
 
 
Current liabilities
Current maturities of long-term debt $ 7,375 $ 16,046 (8,671) (54.0) %
Lines of credit - 2,593 (2,593) (100.0) %
Accounts payable - trade 21,103 22,027 (924) (4.2) %
Accounts payable - capital expenditures 1,547 1,558 (11) (0.7) %
Accrued expenses 8,300 8,670 (370) (4.3) %
Accrued restructuring 1,432 3,282 (1,850) (56.4) %
Income taxes payable - current (1) 150 4,579 (4,429) (96.7) %
Total current liabilities 39,907 58,755 (18,848) (32.1) %
 
Accounts payable - capital expenditures 1,449 - 1,449 100.0 %
Income taxes payable - long-term (1) 4,802 - 4,802 100.0 %
Deferred income taxes 1,464 - 1,464 100.0 %
Long-term debt , less current maturities 14,048 22,114 (8,066) (36.5) %
 
Total liabilities 61,670 80,869 (19,199) (23.7) %
 
Shareholders' equity 86,359 79,077 7,282 9.2 %
 
Total liabilities and
shareholders' equity $ 148,029 $ 159,946 (11,917) (7.5) %
 
Shares outstanding 12,648 12,569 79 0.6 %
 
 
* Derived from audited financial statements
 
(1) Amounts as of April 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 TWELVE MONTHS ENDED APRIL 27, 2008 AND APRIL 29, 2007
Unaudited
(Amounts in Thousands)
     
 
TWELVE MONTHS ENDED
 
Amounts
April 27, * April 29,
2008 2007
 
Cash flows from operating activities:
Net income (loss) $ 5,385 $ (1,316)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation 5,548 7,849
Amortization of other assets 373 150
Stock-based compensation 618 525
Excess tax benefit related to stock options exercised (17) -
Deferred income taxes (919) (3,763)
Loss on impairment of equipment 289 -
Restructuring expenses, net of gain on sale of related assets 140 536
Changes in assets and liabilities, net of effects of acquisition of assets:
Accounts receivable 2,242 (241)
Inventories 5,236 817
Other current assets 496 1,673
Other assets (188) (42)
Accounts payable-trade (924) 3,133
Accrued expenses (445) 825
Accrued restructuring (1,926) (772)
Income taxes 456 2,091
Net cash provided by operating activities 16,364 11,465
 
Cash flows from investing activities:
Capital expenditures (4,846) (3,762)
Acquisition of assets - (2,500)
Proceeds from the sale of buildings and equipment 2,723 3,315
Net cash used in investing activities (2,123) (2,947)
 
Cash flows from financing activities:
Proceeds from lines of credit 1,339 2,593
Payments on lines of credit (3,932) -
Payments on vendor-financed capital expenditures (642) (1,356)
Payments on long-term debt (16,737) (12,062)
Proceeds from the issuance of long-term debt - 2,500
Proceeds from common stock issued 459 262
Excess tax benefit related to stock options exercised 17 -
Net cash used in financing activities (19,496) (8,063)
 
(Decrease) increase in cash and cash equivalents (5,255) 455
 
Cash and cash equivalents at beginning of year 10,169 9,714
 
Cash and cash equivalents at end of year $ 4,914 $ 10,169
 
 
Free Cash Flow (1) $ 13,616 $ 9,662
 
                     
 
(1) Free Cash Flow reconciliation is as follows:
  FY 2008   FY 2007
A) Net cash provided by operating activities $ 16,364 $ 11,465
B) Minus: Capital Expenditures (4,846) (3,762)
C) Add: Proceeds from the sale of buildings and equipment 2,723 3,315
D) Minus: Payments on vendor-financed capital expenditures (642) (1,356)
E) Add: Excess tax benefit related to stock options exercised 17 -
$ 13,616 $ 9,662
                     
 
* Derived from audited financial statements.

Page 4 of 7

CULP, INC. FINANCIAL INFORMATION RELEASE
SALES, GROSS PROFIT AND OPERATING INCOME (LOSS) BY SEGMENT
FOR THE THREE MONTHS ENDED APRIL 27, 2008 AND APRIL 29, 2007
 
(Amounts in thousands)
   
 
THREE MONTHS ENDED (UNAUDITED)
 
Amounts Percent of Total Sales
April 27, April 29, % Over April 27, April 29,
Net Sales by Segment 2008 2007 (Under) 2008 2007
 
Mattress Fabrics $ 34,638 38,062 (9.0) % 54.1 % 52.0 %
Upholstery Fabrics 29,360 35,134 (16.4) % 45.9 % 48.0 %
 
Net Sales $ 63,998 73,196 (12.6) % 100.0 % 100.0 %
 
 
Gross Profit by Segment Gross Profit Margin
 
Mattress Fabrics $ 6,533 6,730 (2.9) % 18.9 % 17.7 %
Upholstery Fabrics 2,907 4,707 (38.2) % 9.9 % 13.4 %
Subtotal 9,440 11,437 (17.5) % 14.8 % 15.6 %
 
Loss on impairment of equipment (33) (1) - (100.0) % (0.1) % 0.0 %
Restructuring related charges (502) (2) (994) (4) (49.5) % (0.8) % (1.4) %
 
Gross Profit $ 8,905 10,443 (14.7) % 13.9 % 14.3 %
 
 
Selling, General and Administrative expenses by Segment Percent of Sales
 
Mattress Fabrics $ 2,679 2,813 (4.8) % 7.7 % 7.4 %
Upholstery Fabrics 2,773 3,845 (27.9) % 9.4 % 10.9 %
Unallocated Corporate expenses 1,242 1,132 9.7 % 1.9 % 1.5 %

$

6,694 7,790 (14.1) % 10.5 % 10.6 %
 
Restructuring related charges 4 (2) - 100.0 % 0.0 % 0.0 %
 
Selling, General and Administrative expenses $ 6,698 7,790 (14.0) % 10.5 % 10.6 %
 
 
Operating Income (loss) by Segment Operating Income (Loss) Margin
 
Mattress Fabrics $ 3,854 3,916 (1.6) % 11.1 % 10.3 %
Upholstery Fabrics 134 863 (84.5) % 0.5 % 2.5 %
Unallocated corporate expenses (1,242) (1,132) (9.7) % (1.9) % (1.5) %
Subtotal 2,746 3,647 (24.7) % 4.3 % 5.0 %
 
 
Loss on impairment of equipment (33) (1) - (100.0) % (0.1) % 0.0 %
Restructuring expense and restructuring related charges (633) (3) (2,786) (5) (77.3) % (1.0) % (3.8) %
 
Operating income $ 2,080 861 141.6 % 3.3 % 1.2 %
 
 
Depreciation by Segment
 
Mattress Fabrics $ 776 908 (14.5) %
Upholstery Fabrics 507 704 (28.0) %
Subtotal 1,283 1,612 (20.4) %
Accelerated Depreciation - 584 (100.0) %
Total Depreciation

$

1,283 2,196 (41.6) %
 
 
Notes:
(1) The $33 represents an impairment loss on older and existing equipment that is being replaced
by newer and more efficient equipment. This impairment loss pertains to the mattress fabrics
segment.
(2) The $502 restructuring related charge represents $469 for inventory markdowns and $33
for other operating costs with closed plant facilities. The $4 restructuring related charge
represents other operating costs associated with closed plant facilities.
(3) The $633 restructuring and related charge represents $469 for inventory markdowns,
$183 for employee termination benefits, $37 for other operating costs associated with
closed plant facilities, $21 for a write-down of equipment, $5 for asset movement costs,
a credit of $3 for sales proceeds received on equipment with no carring value, and a
credit of $79 for lease termination and other exit costs. Of this total charge, $502 was
recorded in cost of sales, $4 was recorded in selling, general, and administrative
expenses, and $127 was recorded in restructuring expense. The total $633 restructuring
and related charge pertains to the upholstery fabrics segment.
(4) The $994 represents restructuring related charges of $582 for accelerated
depreciation and $412 for operating costs associated with closed plant facilities.
(5) The $2.8 million represents restructuring and related charges of $1.1 million for
write-downs of buildings and equipment, $582 for accelerated depreciation, $479 for
asset movement costs, $412 for other operating costs associated with closed plant
facilities, $312 for lease termination and other exit costs, a credit of $40 for sales
proceeds received on equipment with no carrying value, and a credit of $82 for employee
termination benefits. Of this total charge, $1.8 million and $994 are included in restructuring
expense and cost of sales, respectively. The total $2.8 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 TWELVE MONTHS ENDED APRIL 27, 2008 AND APRIL 29, 2007
 
(Amounts in thousands)
   
 
TWELVE MONTHS ENDED (UNAUDITED)
 
Amounts Percent of Total Sales
April 27, * April 29, % Over April 27, April 29,
Net Sales by Segment 2008 2007 (Under) 2008 2007  
 
Mattress Fabrics $ 138,064 107,797 28.1 % 54.3 % 43.0 %
Upholstery Fabrics 115,982 142,736 (18.7) % 45.7 % 57.0 %
 
Net Sales $ 254,046 250,533 1.4 % 100.0 % 100.0 %
 
 
Gross Profit by Segment Gross Profit Margin
 
Mattress Fabrics $ 22,576 18,610 21.3 % 16.4 % 17.3 %
Upholstery Fabrics 12,829 17,397 (26.3) % 11.1 % 12.2 %
Subtotal 35,405 36,007 (1.7) % 13.9 % 14.4 %
 
Loss on impairment of equipment (289) (1) - (100.0) % (0.1) % 0.0 %
Restructuring related charges (1,957) (2) (4,802) (4) (59.2) % (0.8) % (1.9) %
 
Gross Profit $ 33,159 31,205 6.3 % 13.1 % 12.5 %
 
 
Selling, General and Administrative expenses by Segment Percent of Sales      
 
Mattress Fabrics $ 8,457 7,856 7.7 % 6.1 % 7.3 %
Upholstery Fabrics 11,650 15,065 (22.7) % 10.0 % 10.6 %
Unallocated Corporate expenses 3,797 4,051 (6.3) % 1.5 % 1.6 %
Subtotal 23,904 26,972 (11.4) % 9.4 % 10.8 %
 
Restructuring related charges 69 (2) 58 (4) 19.0 % 0.0 % 0.0 %
 
Selling, General and Administrative expenses $ 23,973 27,030 (11.3) % 9.4 % 10.8 %
 
 
Operating Income (loss) by Segment Operating Income (Loss) Margin
 
Mattress Fabrics $ 14,118 10,754 31.3 % 10.2 % 10.0 %
Upholstery Fabrics 1,180 2,332 (49.4) % 1.0 % 1.6 %
Unallocated corporate expenses (3,797) (4,051) (6.3) % (1.5) % (1.6) %
Subtotal 11,501 9,035 27.3 % 4.5 % 3.6 %
 
Loss on impairment of equipment (289) (1) - (100.0) % (0.1) % 0.0 %
Restructuring expense and restructuring related charges (2,912) (3) (8,394) (5) (65.3) % (1.1) % (3.4) %
 
Operating income $ 8,300 641 N.M.   3.3 % 0.3 %
 
 
Depreciation by Segment
 
Mattress Fabrics $ 3,443 3,679 (6.4) %
Upholstery Fabrics 2,105 2,923 (28.0) %
Subtotal 5,548 6,602 (16.0) %
Accelerated Depreciation - 1,247 (100.0) %
Total Depreciation

$

5,548 7,849 (29.3) %
 
Notes:
(1) The $289 represents impairment losses on older and existing equipment that is being replaced
by newer and more efficient equipment. This impairment loss pertains to the mattress fabrics segment.
(2) The $1.9 million restructuring related charge represents $1.0 million for inventory markdowns and $954
for other operating costs associated with closed plant facilities. The $69 restructuring related charge
represents other operating costs associated with closed plant facilities.
(3) The $2.9 million represents $1.0 million for inventory markdowns, $1.0 million for other operating costs
associated with closed plant facilities, $533 for lease termination and other exit costs, $503 for write-downs
of buildings and equipment, $189 for asset movement costs, $23 for employee termination benefits, and
a credit of $362 for sales proceeds received on equipment with no carrying value. Of this total charge, $1.9
million was recorded in cost of sales, $69 was recorded in selling, general, and administrative expenses, and
$886 was recorded in restrucuturing expense. The total $2.9 restructuring and related charge pertains to
the upholstery fabrics segment.
(4) 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 other operating costs associated with closed
plant facilities. The $58 represents other operating costs associated with closed plant facilities.
(5) The $8.4 million represents restructuring and related charges of $2.4 million for inventory markdowns, $1.5
million for write-downs and buildings and equipment, $1.4 million for asset movement costs, $1.2 million for
accelerated depreciation, $1.2 million for other operating costs associated with the closing of plant facilities,
$909 for employee termination benefits, $706 for lease termination and other exit costs, and a credit of $930
for sales proceeds received on equipment with no carrying value. Of this total charge, $4.8 million was recorded
in cost of sales, $58 was recorded in selling, general, and administrative expenses, and $3.5 million was recorded
in restructuring expense. The total $8.4 restructuring and related charge pertains to the upholstery fabrics segment.
 
* Derived from audited financial statements.

Page 6 of 7

CULP, INC. FINANCIAL INFORMATION RELEASE
PROFORMA CONSOLIDATED STATEMENTS OF NET INCOME (LOSS)
FOR THE THREE MONTHS ENDED APRIL 27, 2008 AND APRIL 29, 2007
    (Unaudited)      
(Amounts in Thousands, Except for Per Share Data)
 
THREE MONTHS ENDED
 

As Reported April 27, 2008

April 27, 2008 Proforma Net of Adjustments

As Reported April 29, 2007 April 29, 2007 Proforma Net of Adjustments Proforma % Over (Under)
% of Sales % of Sales % of Sales % of

Sales

% of Sales % of Sales
Adjustments Adjustments
 
Net sales $ 63,998 100.0% - 63,998 100.0% 73,196 100.0% - 73,196 100.0% -12.6%
Cost of sales 55,093 86.1% (502) -0.8% (1) 54,591 85.3% 62,753 85.7% (994) -1.4% (3) 61,759 84.4% -11.6%
Gross profit 8,905 13.9% (502) -0.8% 9,407 14.7% 10,443 14.3% (994) -1.4% 11,437 15.6% -17.7%
 
Selling, general and
administrative expenses 6,698 10.5% (4) 0.0% (1) 6,694 10.5% 7,790 10.6% - 0.0% 7,790 10.6% -14.1%
Restructuring expense 127 0.2% (127) -0.2% (2) - 0.0% 1,792 2.4% (1,792) -2.4% (4) - 0.0% 0.0%
Income from operations 2,080 3.3% (633) -1.0% 2,713 4.2% 861 1.2% (2,786) -3.8% 3,647 5.0% -25.6%
 
Interest expense 595 0.9% - 0.0% 595 0.9% 940 1.3% - 0.0% 940 1.3% -36.7%
Interest income (57) -0.1% - 0.0% (57) -0.1% (60) -0.1% - 0.0% (60) -0.1% -5.0%
Other expense 112 0.2% - 0.0% 112 0.2% 166 0.2% - 0.0% 166 0.2% -32.5%
Income (loss) before income taxes 1,430 2.2% (633) -1.0% (5) 2,063 3.2% (185) -0.3% (2,786) -3.8% (6) 2,601 3.6% -20.7%
 
Income taxes (7) (647) -45.2% (447) 70.6% (200) -9.7% (145) 78.4% (965) 34.6% 820 31.5% 124.4%
Net income (loss) $ 2,077 3.2% (186) -0.3% 2,263 3.5% (40) -0.1% (1,821) -2.5% 1,781 2.4% 27.1%
 
Net income (loss) per share-basic $0.16 ($0.01) $0.18 $0.00 ($0.14) $0.14
Net income (loss) per share-diluted $0.16 ($0.01) $0.18 $0.00 ($0.14) $0.14
Average shares outstanding-basic 12,642 12,642 12,642 12,559 12,559 12,559
Average shares outstanding-diluted 12,729 12,642 12,729 12,559 12,559 12,566
 
Notes:
(1) The $502 restructuring related charge represents $469 for inventory markdowns and $33 for other operating
costs associated with closed plant facilities. The $4 restructuring related charge represents other operating
costs associated with closed plant facilties.
(2) The $127 restructuring charge represents $183 for employee termination benefits, $21 for a write-down of
equipment, $5 for asset movement costs, a credit of $3 for sales proceeds received on equipment with no
carrying value, and a credit of $79 for lease termination and other exit costs.
(3) The $994 represents restructuring related charges of $582 for accelerated depreciation and $412 for other
operating costs associated with closed plant facilities.
(4) The $1.8 million restructuring charge represents $1.1 million for write-downs of buildings and equipment, $479
for asset movement costs, $312 for lease termination and other exit costs, a credit of $40 for sales
proceeds received on equipment with no carrying value, and a credit of $82 for employee termination benefits.
(5) Of this total charge, $143 and $490 represent cash and non-cash charges, respectively.
(6) Of this total charge, $1.1 million and $1.7 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 TWELVE MONTHS ENDED APRIL 27, 2008 AND APRIL 29, 2007
  (Unaudited)      
(Amounts in Thousands, Except for Per Share Data)
 
TWELVE MONTHS ENDED
 
As Reported April 27, 2008 April 27, 2008 Proforma Net of Adjustments As Reported April 29, 2007 April 29, 2007 Proforma Net of Adjustments Proforma % Over (Under)
% of Sales % of Sales % of Sales % of Sales % of Sales % of Sales
Adjustments Adjustments
 
Net sales $ 254,046 100.0% - 254,046 100.0% 250,533 100.0% - 250,533 100.0% 1.4%
Cost of sales 220,887 86.9% (1,957) -0.8% (1) 218,930 86.2% 219,328 87.5% (4,802) -1.9% (3) 214,526 85.6% 2.1%
Gross profit 33,159 13.1% (1,957) -0.8% 35,116 13.8% 31,205 12.5% (4,802) -1.9% 36,007 14.4% -2.5%
 
Selling, general and
administrative expenses 23,973 9.4% (69) 0.0% (1) 23,904 9.4% 27,030 10.8% (58) 0.0% (3) 26,972 10.8% -11.4%
Restructuring expense 886 0.3% (886) -0.3% (2) - 0.0% 3,534 1.4% (3,534) -1.4% (4) - 0.0% 0.0%
Income from operations 8,300 3.3% (2,912) -1.1% 11,212 4.4% 641 0.3% (8,394) -3.4% 9,035 3.6% 24.1%
 
Interest expense 2,975 1.2% - 0.0% 2,975 1.2% 3,781 1.5% - 0.0% 3,781 1.5% -21.3%
Interest income (254) -0.1% - 0.0% (254) -0.1% (207) -0.1% - 0.0% (207) -0.1% 22.7%
Other expense 736 0.3% - 0.0% 736 0.3% 68 0.0% - 0.0% 68 0.0% 982.4%
Income (loss) before income taxes 4,843 1.9% (2,912) -1.1% (5) 7,755 3.1% (3,001) -1.2% (8,394) -3.4% (6) 5,393 2.2% 43.8%
 
Income taxes (7) (542) -11.2% (1,047) 36.0% 505 6.5% (1,685) 56.1% (3,234) 38.5% 1,549 28.7% -67.4%
Net income (loss) $ 5,385 2.1% (1,865) -0.7% 7,250 2.9% (1,316) -0.5% (5,160) -2.1% 3,844 1.5% 88.6%
 
Net income (loss) per share-basic $0.43 ($0.15) $0.57 ($0.11) ($0.43) $0.32
Net income (loss) per share-diluted $0.42 ($0.15) $0.57 ($0.11) ($0.43) $0.32
Average shares outstanding-basic 12,624 12,624 12,624 11,922 11,922 11,922
Average shares outstanding-diluted 12,765 12,624 12,765 11,922 11,922 11,926
 
Notes:
(1) The $1.9 million restructuring related charge represents $1.0 million for inventory markdowns and $954 for other
operating costs associated with closed plant facilities. The $69 restructuring related charge represents other
operating costs associated with closed plant facilities.
(2) The $886 restructuring charge represents $533 for lease termination and other exit costs, $503 for write-downs
of buildings and equipment, $189 for asset movement costs, $23 for employee termination benefits, and a
credit of $362 for sales proceeds received on equipment with no carrying value.
(3) 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 other operating costs associated with closed plant facilities.
The $58 represents other operating costs associated with closed plant facilities.
(4) 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 for employee termination benefits, $706 for lease termination
and other exit costs, and a credit of $930 for sales proceeds received on equipment with no carrying value.
(5) Of this total charge, $1.4 million and $1.5 million represent cash and non-cash charges, respectively.
(6) Of this total charge, $3.3 million and $5.1 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.