BURLINGTON INDUSTRIES, INC. AND SUBSIDIARY COMPANIES (Debtors-in-Possession as of November 15, 2001) Consolidated Statements of Operations (Amounts in thousands, except for per share amounts) Three Three months months ended ended December 29, December 30, 2001 2000 ------------ ------------ Net sales $ 246,184 $ 364,314 Cost of sales 239,599 335,532 ------------ ------------ Gross profit 6,585 28,782 Selling, general and administrative expenses 27,020 31,558 Provision for doubtful accounts 962 1,707 Provision for restructuring/impairments 59,176 0 ------------ ------------ Operating loss before interest and taxes (80,573) (4,483) Interest expense (contractual interest of $16,209 for three months ended December 29, 2001) 13,495 17,871 Equity in (income) loss of joint ventures (271) (2,500) Other expense (income) - net (752) (2,510) ------------ ------------ Loss before reorganization items and income taxes (93,045) (17,344) Reorganization items 7,952 0 ------------ ------------ Loss before income taxes (100,997) (17,344) Income tax expense (benefit): Current 611 (5,313) Deferred (26,378) (508) ------------ ------------ Total income tax expense (benefit) (25,767) (5,821) ------------ ------------ Net loss $ (75,230)$ (11,523) ============ ============ Basic and diluted loss per common share $ (1.42)$ (0.22) BURLINGTON INDUSTRIES, INC. AND SUBSIDIARY COMPANIES (Debtors-in-Possession as of November 15, 2001) Consolidated Balance Sheets (Amounts in thousands) December 29, September 29, 2001 2001 ------------ ------------- ASSETS Current assets: Cash and cash equivalents $ 61,082 $ 87,473 Short-term investments 13,049 13,394 Customer accounts receivable after deductions of $11,611 and $12,406 for the respective dates for doubtful accounts, discounts, returns and allowances 145,004 195,571 Sundry notes and accounts receivable 23,346 21,985 Inventories 193,937 216,968 Prepaid expenses 2,505 3,329 ------------ ------------- Total current assets 438,923 538,720 Fixed assets, at cost: Land and land improvements 23,354 23,334 Buildings 322,317 352,491 Machinery, fixtures and equipment 555,538 585,425 ------------ ------------- 901,209 961,250 Less accumulated depreciation and amortization 471,981 456,890 ------------ ------------- Fixed assets - net 429,228 504,360 Other assets: Assets held for sale 32,763 32,818 Investments and receivables 48,044 48,405 Intangibles and deferred charges 63,102 60,692 ------------ ------------- Total other assets 143,909 141,915 ------------ ------------- $ 1,012,060 $ 1,184,995 ============ ============= LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) Liabilities not subject to compromise: Current liabilities: Long-term debt - current $ 472,398 $ 476,900 Accounts payable - trade 20,680 62,171 Sundry payables and accrued expenses 56,182 79,724 Income taxes payable 4,410 4,566 Deferred income taxes 34,809 31,819 ------------ ------------- Total current liabilities 588,479 655,180 Long-term liabilities: Long-term debt 30,000 397,068 Other 42,272 53,957 ------------ ------------- Total long-term liabilities 72,272 451,025 Deferred income taxes 24,773 53,346 ------------ ------------- Total liabilities not subject to compromise 685,524 1,159,551 Liabilities subject to compromise 374,582 0 ------------ ------------- Total liabilities 1,060,106 1,159,551 Shareholders' equity (deficit): Common stock issued 704 700 Capital in excess of par value 886,602 885,935 Accumulated deficit (778,646) (703,416) Accumulated other comprehensive income (loss) (780) (1,860) Cost of common stock held in treasury (155,926) (155,915) ------------ ------------- Total shareholders' equity (deficit) (48,046) 25,444 ------------ ------------- $ 1,012,060 $ 1,184,995 ============ ============= BURLINGTON INDUSTRIES, INC. AND SUBSIDIARY COMPANIES (Debtors-in-Possession as of November 15, 2001) Consolidated Statements of Cash Flows Increase (Decrease) in Cash and Cash Equivalents (Amounts in thousands) Three Three months months ended ended December 29, December 30, 2001 2000 ------------ ------------ Cash flows from operating activities: Net loss $ (75,230)$ (11,523) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization of fixed assets 14,609 16,881 Provision for doubtful accounts 962 1,707 Amortization of intangibles and deferred debt expense 1,672 552 Equity in (income) loss of joint ventures (271) 200 Deferred income taxes (26,378) (508) Provision for restructuring and impairments 59,176 0 Non-cash reorganization items 3,577 0 Changes in assets and liabilities: Customer accounts receivable - net 49,605 54,873 Sundry notes and accounts receivable (1,361) (3,548) Inventories 23,031 24,669 Prepaid expenses 824 (301) Accounts payable and accrued expenses (1,882) (40,686) Change in income taxes payable (156) 390 Other (711) (3,558) ------------ ------------ Total adjustments 122,697 50,671 ------------ ------------ Net cash provided by operating activities 47,467 39,148 ------------ ------------ Cash flows from investing activities: Capital expenditures (952) (7,134) Proceeds from sales of assets 291 450 Change in investments 692 (4,375) ------------ ------------ Net cash provided (used) by investing activities 31 (11,059) ------------ ------------ Cash flows from financing activities: Changes in short-term borrowings 0 (3,400) Repayments of long-term debt (99,389) (110,253) Proceeds from issuance of long-term debt 30,000 92,700 Payment of financing fees (4,500) (11,698) ------------ ------------ Net cash used by financing activities (73,889) (32,651) ------------ ------------ Net change in cash and cash equivalents (26,391) (4,562) Cash and cash equivalents at beginning of period 87,473 26,172 ------------ ------------ Cash and cash equivalents at end of period $ 61,082 $ 21,610 ============ ============