Guarantor

Parent

Subsidiaries

Eliminations

Consolidated

Cash flows from operating activities:

Net income

$

32,414

$

2,608

$

(2,608

)

$

32,414

Adjustments to reconcile net income to net cash flows from operating activities:

Depreciation and amortization

2,474

5,862

—

8,336

Amortization of deferred financing fees

3,663

—

—

3,663

Deferred income tax expense

19,831

357

—

20,188

Equity (income) loss in subsidiaries

(2,608

)

—

2,608

—

Changes in operating assets and liabilities, net of effects from acquisition:

Accounts receivable

(26,910

)

(2,554

)

(74,832

)

(104,296

)

Inventories

(73,822

)

10,825

70,485

7,488

Prepaid expenses and other current assets

1,472

1,406

—

2,878

Other assets

(4,984

)

1,631

—

(3,353

)

Accounts payable

19,330

(4,917

)

—

14,413

Accrued expenses

7,662

(4,392

)

—

3,270

Other operating activities, net

(1,571

)

(1,694

)

4,347

1,082

Net cash flows provided by (used in) operating activities

(23,049

)

9,132

—

(13,917

)

Cash flows from investing activities:

Purchases of equipment and leasehold improvements

(3,425

)

—

—

(3,425

)

Proceeds from sale of WPC product lines

4,204

—

—

4,204

Net cash flows provided by investing activities

779

—

—

779

Cash flows from financing activities:

Proceeds from additional debt

126,275

—

—

126,275

Proceeds from issuance of common stock

84

—

—

84

Payments received for common stock subscription receivable

2,049

—

—

2,049

Repayment of borrowings on revolver and other debt

(118,354

)

—

—

(118,354

)

Payments for debt issuance costs

(2,924

)

—

—

(2,924

)

Change in cash overdraft

6,433

—

—

6,433

Other financing and intercompany activities

9,025

(8,945

)

—

80

Net cash flows provided by (used in) financing activities

22,588

(8,945

)

—

13,643

Net increase in cash and cash equivalents

318

187

—

505

Cash and cash equivalents, beginning of period

10,191

127

—

10,318

Cash and cash equivalents, end of period

$

10,509

$

314

$

—

$

10,823