Indalex Announces Fourth Quarter Results



    LINCOLNSHIRE, ILL., March 29 /CNW/ - Indalex Holdings Finance, Inc.
(Indalex or the Company) today announced results for the fiscal year and three
months ended December 31, 2006.

    Timothy R.J. Stubbs, President and Chief Executive Officer, said, "We had
a strong first year as a stand-alone company, with solid EBITDA growth and
improvement in all of our key performance metrics. However, the fourth quarter
was a challenging quarter, as the market continued to slow. Our focus on cash
generation and share gain paid dividends during the course of 2006, as we were
able to improve cash flow from operations, despite the headwinds of higher
interest costs and higher base metal pricing. The first part of 2007 will also
be challenging, but we continue to focus on profitable share gain and cash
generation going forward."

    For the fiscal year ended December 31, 2006, net sales were $1,242.9
million, compared to $1,021.4 million for the fiscal year ended December 31,
2005. Extrusion shipment volume grew 4.8% as a result of strong market demand,
particularly in the Transportation, and Commercial Building and Construction
end-user markets. Residential Building and Construction was strong early in
the year, but demand fell during the latter portion of 2006. Net sales reflect
higher base aluminum prices, which were up an average of 33% in the fiscal
year ended December 31, 2006 compared to the fiscal year ended December 31,
2005.

    For the fiscal year ended December 31, 2006, income from operations was
$0.7 million, compared to income from operations of $10.1 million in the
fiscal year ended December 31, 2005. The decrease was due to a $6.2 million
increase in asset impairments, a $4.9 million increase in expense related to
mark-to-market on derivatives, an increase of $4.7 million in audit and legal
expenses related to the filing of an SEC registration statement, for the
exchange of our senior secured notes, and Sarbanes-Oxley compliance, a $3.4
million increase in amortization of intangible assets, and an increase of $1.3
million in restructuring expenses, partly offset by improvements in our
underlying business, including higher shipment volumes and improved margins.
Adjusted EBITDA increased by 28%, or $17.7 million, to $81.7 million and
reflects improved underlying operating performance.

    For the fiscal year ended December 31, 2006, Indalex generated cash flow
from operations of $34.6 million compared to cash flow from operations of
$26.8 million in the prior year. This improved performance occurred despite a
$17.9 million increase in cash paid for interest and a 33% increase in base
aluminum costs, which have a negative impact on working capital. The Company
had $55.7 million of borrowings under its revolving credit facility at
December 31, 2006.

    For the three months ended December 31, 2006, net sales were $252.8
million, compared to $246.4 million in the three months ended December 31,
2005. Extrusion shipment volume fell by 12.7%. Net sales were impacted by
higher base aluminum prices, which were up an average of 29% in the fourth
quarter of 2006 compared to the same period in 2005. Base aluminum costs are
largely passed on to our customers, and have minimal impact on our margins
except for the impact of quarterly revaluation of our hedge instruments, which
are marked to market as required by FAS 133.

    Our loss from operations was $10.7 million for the three months ended
December 31, 2006. In the three months ended December 31, 2005, income from
operations was $7.5 million. Lower extrusion shipment volume, a $5.9 million
increase in FAS 133 mark to market revaluations, an increase of $4.0 million
in asset impairment charges, an increase of $1.6 million in audit and legal
expenses related to the filing of an SEC registration statement and
Sarbanes-Oxley compliance and an increase in restructuring charges of $1.5
million were partially offset by higher margins.

    Adjusted EBITDA, as defined below, decreased by 41%, or $5.6 million, to
$7.9 million in the three months ended December 31, 2006, from $13.5 million
in the three months ended December 31, 2005. The decrease in Adjusted EBITDA
is attributable to the aforementioned reduced shipment volumes and increased
audit and legal expenses, partially offset by improved unit margins.

    For the three months ended December 31, 2006, Indalex generated cash flow
from operations of $38.7 million compared to cash flow from operations of
$34.6 million in the same period of 2005. This improved performance occurred
despite a $2.5 million increase in cash interest paid and a 29% increase in
base aluminum costs, which have a negative impact on working capital.

    Indalex Holdings Finance, Inc. has scheduled a conference call for
Friday, March 30, at 11:00 a.m. ET (10:00 a.m. CT) to discuss financial
results. The call-in number is 1-800-288-8975 (U.S) or 1-612-332-0725
(International).

    The financial information of Indalex contained in this press release for
periods prior to February 2, 2006 is the combined financial information of
Indalex Inc. and Indalex Limited, which were wholly owned by Novar plc until
Honeywell International, Inc. ("Honeywell") purchased the stock of Novar plc,
Indalex's former parent company, on March 31, 2005 (the "Honeywell
acquisition"). On February 2, 2006, Indalex Holding Corp. acquired the Indalex
entities from Honeywell (the "Indalex Holdings acquisition"). Indalex Holding
Corp. is a holding company that is a wholly-owned direct subsidiary of Indalex
Holdings Finance Inc., which is beneficially owned by affiliates of Sun
Capital Partners, Inc., certain other investors and members of our management
team. In this press release, we refer to the Indalex entities prior to the
Honeywell acquisition as "Predecessor 1" for the three months ended March 31,
2005 and the Indalex entities following the Honeywell acquisition and prior to
the Indalex Holdings acquisition as "Predecessor 2" for the period from April
1, 2005 to December 31, 2005, and the period from January 1, 2006 to February
1, 2006. We refer to Indalex following the Indalex Holdings acquisition as
"Successor" for the period from February 2, 2006 to December 31, 2006. The
predecessor and successor companies are different reporting entities. Although
we have provided these combined results to facilitate a comparative discussion
of the periods presented, this presentation is not in accordance with
generally accepted accounting principles and the periods presented are not
comparable due to the change in basis of assets that resulted from the
application of the purchase method of accounting in connection with both
acquisitions.

    About Indalex Holdings Finance, Inc. and Indalex Holding Corp.

    Indalex Holding Corp., a wholly owned subsidiary of Indalex Holdings
Finance Inc., through its operating subsidiaries Indalex Inc. and Indalex
Ltd., with headquarters in Lincolnshire, Illinois, is the largest independent
producer of soft alloy extrusion products and the second largest aluminum
extruder in North America. The company's aluminum extrusion products are
widely used throughout industrial, commercial, and residential applications
and are customized to meet specific end-user requirements.

    The company's North American network includes two cast houses, 15
extrusion facilities, 39 extrusion presses with circle sizes up to 12 in., a
variety of fabrication and close tolerance capabilities, 9 electrostatic paint
lines and four anodizing operations. Indalex Ltd. owns approximately 25% of
Asia Aluminum Group, a Hong Kong-based aluminum extruder selling products
primarily in mainland China.

    For additional information, please visit www.indalex.com.

    About Sun Capital Partners, Inc.

    Sun Capital Partners, Inc. is a leading private investment firm focused
on leveraged buyouts, equity, debt, and other investments in market-leading
companies that can benefit from its in-house operating professionals and
experience. Sun Capital affiliates have invested in and managed more than 145
companies worldwide with combined sales in excess of $33.0 billion since Sun
Capital's inception in 1995. Sun Capital has offices in Boca Raton, Los
Angeles, and New York, as well as affiliates with offices in London, Tokyo,
and Shenzhen. For more information, please visit www.SunCapPart.com.

    Forward-looking information

    This release contains forward-looking statements with respect to the
financial condition, results of operations and business of the Company. Such
items are subject to certain risks and uncertainties that could cause actual
results to differ materially from those set forth in such statements. The
principal important risk factors and uncertainties include, but are not
limited to, changes in general economic conditions, aluminum and other
material costs, labor costs, interest rates, and other adverse changes in
general economic conditions, consumer confidence, competition, currency
exchange rates as they affect the Company's Canadian operations, environmental
factors, unanticipated legal proceedings, and conditions in end user markets.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak to results only as of the date the statements were
made. The Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.

    
                        INDALEX HOLDINGS FINANCE, INC.
                   CONSOLIDATED AND COMBINED BALANCE SHEETS
                As of December 31, 2006 and December 31, 2005
                            (Dollars in thousands)



                                            December 31,    December 31,
                                                 2006            2005
                                           --------------- ---------------
                                             (Successor)   (Predecessor 2)
    ASSETS
    Current Assets:
         Cash and cash equivalents                $11,157          $9,366
         Accounts receivable, less
          allowance of $4,462 in 2006 and
          $4,240 in 2005                          103,924         113,798
         Receivable from affiliates                     -           3,109
         Receivable from suppliers                  8,980           7,873
         Refundable income taxes                        -             243
         Inventories                               67,182          58,350
         Prepaid expenses and other current
          assets                                   10,765          17,543
         Deferred income tax                            -             347
                                           --------------- ---------------
              Total current assets                202,008         210,629

         Notes receivable from affiliates               -           4,279
         Investment in AAG                         96,950          94,380
         Property, plant, and equipment,
          net                                     199,638         219,357
         Goodwill                                   3,537          14,626
         Other intangibles, net                    78,264          74,718
         Deferred financing costs                  14,594               -
         Other assets                               2,692             403
                                           --------------- ---------------

              Total assets                       $597,683        $618,392
                                           --------------- ---------------

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current Liabilities:
         Accounts payable                         $66,780         $65,763
         Payable to affiliates                          -             429
         Income taxes payable                       2,648               -
         Deferred income taxes                      2,456               -
         Accrued expenses and other current
          liabilities                              38,478          45,372
         Accrued interest                          13,806               -
         Capital lease obligation                   1,243             726
         Checks issued in excess of bank
          balance                                       -           1,716
         Revolver borrowings                       55,717               -
                                           --------------- ---------------
              Total current liabilities           181,128         114,006

    Other liabilities                              30,667          53,940
    Capital lease obligation                        4,674           3,143
    Long-term debt                                266,957               -
    Deferred income taxes                          24,859          24,197
                                           --------------- ---------------

          Total liabilities                       508,285         195,286
                                           --------------- ---------------

    Stockholders' equity:
         Common stock ($.001 par value per
          share). Authorized shares
          2,900,000
              Issued and oustanding
               1,000,114                                1             391
         Additional paid-in capital               110,665         411,515
         Treasury stock, 90 shares at
          $111.11 per share                           (10)              -
         Accumulated retained earnings
          (deficit)                               (23,898)          9,712
         Accumulated other comprehensive
          income                                    2,640           1,488
                                           --------------- ---------------

              Total stockholders' equity           89,398         423,106
                                           --------------- ---------------

                   Total liabilities and
                    stockholders' equity         $597,683        $618,392
                                           --------------- ---------------
    

    
                        INDALEX HOLDINGS FINANCE, INC.
           CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS OF INCOME
      For the Three Months Ended December 31, 2006 and December 31, 2005
         For the Years Ended December 31, 2006, and December 31, 2005
                            (Dollars in thousands)



                                                 (Unaudited)
                                              Three months ended
                                     ------------------------------------


                                     December 31, 2006  December 31, 2005
                                     ------------------ -----------------
                                        (Successor)      (Predecessor 2)

    Net sales                                 $252,834          $246,353

    Costs and expenses:
      Cost of sales                            238,838           228,177
      Selling, general, and
       administrative                           14,487            11,700
      Management fees to affiliates                289               367
      Amortization of intangible
       assets                                    2,924             2,761
      Other (income) expense                       334               643
      Restructuring charges                      1,273              (222)
      Impairment of long-lived assets            4,239               266
     (Gain) loss on disposal of
      assets                                        34               (59)
      Mark-to-market on derivatives              1,140            (4,767)
                                     ------------------ -----------------
         Total costs and expenses              263,558           238,866
                                     ------------------ -----------------

    Income (loss) from operations              (10,724)            7,487

    Other income (expense):
      Interest to affiliates, net                    -            (1,050)
      External interest expense                 (9,819)             (283)
      Deferred financing costs                    (604)                -
      Interest income                                -               (31)
      Income from equity method
       investment in AAG                         6,605             5,035
      Affiliated acquisition fees                    -                 -
      Dividend income from affiliates                -                 -
                                     ------------------ -----------------

    Income (loss) before income taxes          (14,542)           11,158

    Income tax provision (benefit)              (3,759)            1,785
                                     ------------------ -----------------

    Income (loss) from continuing
     operations                                (10,783)            9,373

    Discontinued operations                          -               339
                                     ------------------ -----------------

    Net income (loss)                         $(10,783)           $9,712
                                     ------------------ -----------------




                                          Years ended
                      ---------------------------------------------------
                          December 31, 2006         December 31, 2005
                      ------------------------- -------------------------
                       January 1-  February 2-   January 1-    April 1-
                       February 1  December 31    March 31   December 31
                      ------------ ------------ ------------ ------------
                      (Predecessor (Successor)  (Predecessor (Predecessor
                           2)                        1)           2)

    Net sales            $100,019   $1,142,842     $239,849     $781,521

    Costs and
     expenses:
      Cost of sales        95,127    1,058,677      221,542      727,799
      Selling,
       general, and
       administrative       5,548       54,966       15,593       35,933
      Management fees
       to affiliates          125        1,634          700        1,131
      Amortization of
       intangible
       assets                 920       10,736            -        8,282
      Other (income)
       expense                195        1,016          993         (825)
      Restructuring
       charges                  -        1,772          694         (222)
      Impairment of
       long-lived
       assets                   -        7,248          381          636
     (Gain) loss on
      disposal of
      assets                    -          255         (274)        (146)
      Mark-to-market
       on derivatives      (3,619)       7,560          285       (1,200)
                      ------------ ------------ ------------ ------------
         Total costs
          and expenses     98,296    1,143,864      239,914      771,388
                      ------------ ------------ ------------ ------------

    Income (loss) from
     operations             1,723       (1,022)         (65)      10,133

    Other income
     (expense):
      Interest to
       affiliates, net          -            -       (1,208)      (3,712)
      External
       interest
       expense                (24)     (35,745)           -         (333)
      Deferred
       financing costs          -       (2,220)           -            -
      Interest income           -            -            -          144
      Income from
       equity method
       investment in
       AAG                    643       11,841        1,557        9,380
      Affiliated
       acquisition
       fees                     -       (5,475)           -            -
      Dividend income
       from affiliates          -            -        9,077            -
                      ------------ ------------ ------------ ------------

    Income (loss)
     before income
     taxes                  2,342      (32,621)       9,361       15,612

    Income tax
     provision
     (benefit)                703       (8,723)           9        1,912
                      ------------ ------------ ------------ ------------

    Income (loss) from
     continuing
     operations             1,639      (23,898)       9,352       13,700

    Discontinued
     operations                 -            -          (50)           -
                      ------------ ------------ ------------ ------------

    Net income (loss)      $1,639     $(23,898)      $9,302      $13,700
                      ------------ ------------ ------------ ------------
    

    The following table reconciles net income to EBITDA and Adjusted EBITDA
for the three months ended December 31, 2006 as compared to the three months
ended December 31, 2005:

    (in thousands)

    
                                                          Predecessor 2
                                    Successor Period -    Period - Three
                                    Three months ended     months ended
                                     December 31, 2006  December 31, 2005
                                    ------------------- ------------------
    Net income (loss)                         ($10,783)            $9,712
      Add:
    Interest expense (net)                       9,819              1,364
    Income tax (benefit) provision              (3,759)             1,785
    Depreciation and amortization               11,578              9,940
                                    ------------------- ------------------
    EBITDA(1)                                    6,855             22,801

    Adjustments:
      Income from equity method
       investment in AAG(2)                     (6,605)            (5,035)
      Discontinued operations(3)                     -               (339)
      Stock based compensation
       expense(4)                                  211                  -
      Impairment of long-lived
       assets(5)                                 4,239                266
      (Gain) loss on disposal of
       fixed assets(6)                              34                (59)
         Amortization of deferred
          financing costs(7)                       604                  -
      Mark-to-market on
       derivatives(8)                            1,140             (4,767)
      Non-Indalex items(9)                           -               (100)
      Change in LIFO reserve(10)                 1,464                737
                                    ------------------- ------------------

    Adjusted EBITDA(1)                          $7,942            $13,504
                                    ------------------- ------------------
    

    (1) "EBITDA" is net income before interest expense (net), income tax
(benefit) provision, depreciation and amortization. "Adjusted EBITDA" is
EBITDA adjusted to exclude items that are not considered by management to be
indicative of Indalex's ongoing operating performance. Management believes
that the presentation of EBITDA and Adjusted EBITDA provides useful
information to investors regarding Indalex's results of operations because
such presentation assists in analyzing and benchmarking the performance and
value of Indalex's business. EBITDA and Adjusted EBITDA are not measures of
Indalex's liquidity or financial performance under GAAP and should not be
considered as alternatives to net income or any other performance measure
derived in accordance with GAAP, or as an alternative to cash flows from
operating activities as a measure of our liquidity. Although Indalex uses
EBITDA and Adjusted EBITDA as a financial measure to assess the performance of
its business, the use of EBITDA and Adjusted EBITDA as an analytical tool is
limited because they do not include certain material costs, such as interest,
taxes and depreciation and amortization, which are significant and unavoidable
operating costs given the level of indebtedness and the capital expenditures
needed to maintain Indalex's business. Indalex's management believes EBITDA
and Adjusted EBITDA are useful to investors because they help enable investors
to evaluate Indalex's business in the same manner as its management and
because they are frequently used by securities analysts, investors and other
interested parties in the evaluation of companies with substantial financial
leverage. EBITDA and Adjusted EBITDA presented in this release are not
necessarily comparable to other similarly titled captions of other companies
due to potential inconsistencies in the methods of calculation.

    (2) Consists of our approximately 25% investment in AAG, which is
accounted for under the equity method.

    (3) For the three months ended December 31, 2005, discontinued operations
includes losses related to the operations of ITI, which was sold in July of
2004, and Brampton, which was sold in February 2004. There were no results
from discontinued operations in the three months ended December 31, 2006.

    (4) For the three months ended December 31, 2006, represents the non-cash
compensation charge allocable to Indalex Holdings Finance, Inc. stock options
granted to Indalex employees.

    (5) For the three months ended December 31, 2006, represents the
write-down of our Watsonville, California facility of $3.4 million, an
additional write-down of our Fostoria facility of $0.4 million, and other
write-downs of $0.4 million. Represents a write-off relating to our closed
Ahoskie, North Carolina facility for the three months ended December 31, 2005.

    (6) Represents non-cash gains and losses on disposals of fixed assets in
the normal course of business for 2006.

    (7) Represents the amortization of $12.6 million of deferred financing
costs related to the issue of the 11 1/2% notes, and $4.2 million in deferred
financing costs related to the revolving credit facility. These costs are
being amortized using the straight-line method over the life of the debt.

    (8) Represents unrealized gains and losses on the mark-to-market of
foreign currency contracts and aluminum hedges.

    (9) Represents costs related to discontinued Novar plc businesses within
the Indalex entities in the three months ended December 31, 2005.

    (10) The last-in, first-out ("LIFO") method was used for purposes of
determining the cost of certain aluminum extrusion inventories. Had the
first-in, first-out ("FIFO") method been used, net income would have been $1.5
million lower for the three months ended December 31, 2006, and $0.7 million
lower for the three months ended December 31, 2005.

    The following table reconciles net income to EBITDA and Adjusted EBITDA
for the fiscal year ended December 31, 2006 as compared to the fiscal year
ended December 31, 2005:

    (in thousands)

    
                                       Predecessor Predecessor Predecessor
                            Successor   2 Period    2 Period    1 Period
                           Period from     from        from        from
                           February 2, January 1,   April 1,   January 1,
                             2006 to     2006 to       2005     2005 to
                            December   February 1, to December    March
                            31, 2006      2006      31, 2005    31, 2005
                           ----------- ----------- ----------- -----------
    Net income               ($23,898)     $1,639     $13,700      $9,302
      Add:
    Interest expense (net)     35,745          24       3,901       1,208
    Income tax (benefit)
     provision                 (8,723)        703       1,912           9
    Depreciation and
     amortization              43,063       3,741      33,225       7,953
                           ----------- ----------- ----------- -----------
    EBITDA(1)                  46,187       6,107      52,738      18,472

    Adjustments:
      Income from equity
       method investment in
       AAG(2)                 (11,841)       (643)     (9,380)     (1,557)
      Dividend income from
       affiliate(3)                 -           -           -      (9,077)
      Discontinued
       operations(4)                -           -           -          50
      Stock based
       compensation
       expense(5)                 938           -           -       1,555
      Impairment of long-
       lived assets(6)          7,248           -         636         381
      (Gain) loss on
       disposal of fixed
       assets(7)                  255           -        (146)       (274)
      AAG cash dividend(8)      4,891           -           -       4,602
      Amortization of
       deferred financing
       costs(9)                 2,220           -           -           -
      Transaction costs(10)         -         743           -           -
      Affiliated
       acquisition fees(11)     5,475           -           -           -
      Purchase accounting
       inventory
       adjustments(12)          7,767           -       4,427           -
      Mark-to-market on
       derivatives(13)          7,560      (3,619)     (1,200)        285
      Non-Indalex items(14)         -          48         602         191
      Change in LIFO
       reserve(15)              5,953       2,430         737         960
                           ----------- ----------- ----------- -----------
    Adjusted EBITDA(1)        $76,653      $5,066     $48,414     $15,588
                           ----------- ----------- ----------- -----------
    

    (1) "EBITDA" is net income before interest expense (net), income tax
(benefit) provision, depreciation and amortization. "Adjusted EBITDA" is
EBITDA adjusted to exclude items that are not considered by management to be
indicative of Indalex's ongoing operating performance. Management believes
that the presentation of EBITDA and Adjusted EBITDA provides useful
information to investors regarding Indalex's results of operations because
such presentation assists in analyzing and benchmarking the performance and
value of Indalex's business. EBITDA and Adjusted EBITDA are not measures of
Indalex's liquidity or financial performance under GAAP and should not be
considered as alternatives to net income or any other performance measure
derived in accordance with GAAP, or as an alternative to cash flows from
operating activities as a measure of our liquidity. Although Indalex uses
EBITDA and Adjusted EBITDA as a financial measure to assess the performance of
its business, the use of EBITDA and Adjusted EBITDA as an analytical tool is
limited because they do not include certain material costs, such as interest,
taxes and depreciation and amortization, which are significant and unavoidable
operating costs given the level of indebtedness and the capital expenditures
needed to maintain Indalex's business. Indalex's management believes EBITDA
and Adjusted EBITDA are useful to investors because they help enable investors
to evaluate Indalex's business in the same manner as its management and
because they are frequently used by securities analysts, investors and other
interested parties in the evaluation of companies with substantial financial
leverage. EBITDA and Adjusted EBITDA presented in this release are not
necessarily comparable to other similarly titled captions of other companies
due to potential inconsistencies in the methods of calculation.

    (2) Consists of our approximately 25% investment in AAG, which is
accounted for under the equity method.

    (3) Consists of dividends on non-voting preferred shares of other
indirect wholly owned subsidiaries of Novar plc. These preferred shares were
redeemed in connection with the Honeywell acquisition.

    (4) For 2005, represents the operations of Brampton, which was sold in
February 2004, and ITI, which was sold in July 2004.

    (5) For 2006, represents the non-cash compensation charge allocable to
Indalex Holdings Finance, Inc. stock options granted to Indalex employees. For
2005, represents the non-cash compensation charge allocable to Novar plc stock
options granted to Indalex employees. The expense recorded for 2005 was due to
Honeywell's offer to acquire the Novar plc shares at a premium, and its
decision to compensate option holders for the dividend paid to shareholders.

    (6) For 2006, represents a write-off of $3.4 million related to the
coming closure of our Watsonville, California facility, a $2.7 million
write-off relating to our Winton, North Carolina facility, a write-off of $0.5
million relating to our June 2006 closure of one press at our Connersville,
Indiana facility, and other write-offs of $0.6 million for the period from
February 2, 2006 to December 31, 2006. For 2005, represents a write-off
relating to our July 2005 closure of our Fostoria, Ohio facility for the
period from January 1, 2005 to March 31, 2005, and a write-off relating to our
closed Ahoskie, North Carolina facility for the period from April 1, 2005 to
December 31, 2005.

    (7) Represents non-cash gains and losses on disposals of fixed assets:
(i) for 2006, gains and losses in the normal course of business; and (ii) for
2005, a gain on the sale of a press from our closed Berlin, Connecticut
facility and gains and losses in the normal course of business.

    (8) Represents cash dividends received from AAG. Under the stockholders
agreement governing our investment in AAG, AAG is required to distribute not
less than 40% of its net realized profits in each fiscal year to AAG and us.
We are therefore entitled to receive cash dividends equal to our approximately
25% share of at least 40% of the net realized profits of AAG. However, cash
dividends declared in respect of a fiscal period are sometimes paid in a
subsequent period. Due to this timing difference, dividends declared by AAG in
respect of earnings for AAG's fiscal year ended June 30, 2004 were not paid
until the first quarter of 2005 and dividends declared by AAG in respect of
earnings for AAG's fiscal year ended June 30, 2005 were not paid until the
second quarter of 2006.

    (9) Represents the amortization of $12.6 million of deferred financing
costs related to the issue of the 11 1/2% notes, and $4.2 million in deferred
financing costs related to the revolving credit facility. These costs are
being amortized using the straight-line method over the life of the debt.

    (10) Represents one-time transaction costs related to the Indalex
Holdings acquisition.

    (11) Represents one-time affiliated acquisition fees related to the
Indalex Holdings acquisition.

    (12) For 2006, as a result of the application of purchase accounting in
connection with the Indalex Holding acquisition, we adjusted the value of our
inventory to fair value at February 2, 2006, which resulted in an increase in
cost of sales in the period following the Indalex Holdings acquisition. For
2005, as a result of the application of purchase accounting in connection with
the Honeywell acquisition, we adjusted the value of our inventory to fair
value at March 31, 2005, which resulted in an increase in cost of sales in the
period following the Honeywell acquisition. Because we turn our inventory
monthly, we do not anticipate that this write-up in the value of inventory
will have an on-going impact on our results of operations.

    (13) Represents unrealized gains and losses on the mark-to-market of
foreign currency contracts and aluminum hedges.

    (14) Represents costs related to discontinued Novar plc businesses within
the Indalex entities of: (i) $0.1 million of severance and pension costs and
$0.1 million of legal and warranty costs in the period from January 1, 2005 to
March 31, 2005; (ii) $0.2 million of severance and pension costs and $0.4
million of legal and warranty costs in the period from April 1, 2005 to
December 31, 2005; and (iii) pension and legal costs in the period from
January 1, 2006 to February 1, 2006.

    (15) The last-in, first-out ("LIFO") method was used for purposes of
determining the cost of certain aluminum extrusion inventories. Had the
first-in, first-out ("FIFO") method been used, net income would have been $1.0
million higher for the period from January 1, 2005 to March 31, 2005; $0.7
million higher for the period from April 1, 2005 to December 31, 2005; $2.4
million higher for the period from January 1, 2006 to February 1, 2006; and
$6.0 million higher for the period from February 2, 2006 to December 31, 2006.




For further information:

For further information: Indalex Holdings Finance, Inc. Mike Alger
mike_alger@indalex.com 847-810-3122 or Scott Langdon scott_langdon@indalex.com
416-234-5808

Organization Profile

INDALEX HOLDINGS FINANCE, INC.

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