<PAGE>   1

                                                                    EXHIBIT 99.1


                       RACI HOLDING, INC. AND SUBSIDIARIES
          RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS TO EBITDA (A)
                              (Dollars in Millions)





<TABLE>
<CAPTION>
                                                             December 31,
                                               ------------------------------------------
                                                1998     1997     1996     1995     1994
                                               ------   ------   ------   ------   ------
<S>                                            <C>      <C>      <C>      <C>      <C>
NET INCOME (LOSS)                              $ 17.2   $  5.5   $(13.8)  $ 11.5   $  9.4

Interest Expense                                 19.2     23.6     25.1     21.5     20.6
Provision (Benefit) for Income Taxes             11.1      3.5     (7.0)     8.5      6.4
Depreciation and Amortization (B)                15.9     15.1     13.9     11.7     10.4
Other Noncash Charges (C)                         1.1      3.7        -        -     16.8
Nonrecurring and Restructuring Expense (D)       (0.3)     0.8     11.2      2.8      4.4
                                              -------   ------   ------   ------   ------
Total                                            47.0     46.7     43.2     44.5     58.6
                                              -------   ------   ------   ------   ------

EBITDA                                         $ 64.2   $ 52.2   $ 29.4   $ 56.0   $ 68.0
                                              =======   ======   ======   ======   ======
</TABLE>


Notes:

(A)      EBITDA as presented may not be comparable to similar measures reported
         by other companies. Generally, EBITDA is defined to consist of net
         income (loss), adjusted to exclude cash interest expense, income tax
         expense, depreciation, amortization, noncash expenses and charges,
         gain or loss on sale or write-off of assets and extraordinary, unusual
         or nonrecurring gains, losses, charges or credits. EBITDA is presented
         to facilitate a more complete analysis of the Company's financial
         performance, by adding back noncash and nonrecurring items to
         operating income, as an indicator of the Company's ability to generate
         cash to service debt and other fixed obligations. Investors should not
         rely on EBITDA as an alternative to operating income or cash flows, as
         determined in accordance with generally accepted accounting principles,
         as an indicator of the Company's operating performance, liquidity or
         ability to meet cash needs. See "Management's Discussion and Analysis
         of Financial Condition and Results of Operations" for further
         discussion of the Company's operating income and cash flows.

(B)      Excludes amortization of deferred financing costs of $2.0, $1.7, $1.6,
         $1.5 and $1.7 in 1998, 1997, 1996, 1995 and 1994, respectively, which
         is included in interest expense.

(C)      Noncash charges consist of a $0.7 loss on disposal of assets and a
         $0.4 pension accrual in the year ended December 31, 1998, a $3.2
         pension accrual and a $0.5 loss on disposal of assets in 1997 and an
         Acquisition-related inventory charge of $16.8 in the year ended
         December 31, 1994.

(D)      Nonrecurring and restructuring expenses excluded in calculating EBITDA
         consist of the following: (1) for 1998, a nonrecurring legal charge of
         $0.4 net of restructuring accrual adjustments of $(0.7); (2) for 1997,
         $0.8 of unusual and nonrecurring charges; (3) for 1996, $4.9 in
         restructuring charges, a $4.7 nonrecurring charge related to resolving
         a dispute with the Sellers, and $1.6 for corporate relocation and
         employee retraining; (4) for 1995, $2.8 in nonrecurring charges for
         computer system implementation and $1.0 for corporate relocation, net
         of a $1.0 nonrecurring research and development-related benefit; and
         (5) for 1994, $2.3 for relocating and consolidating the Company's
         research and development function, $1.8 in nonrecurring charges for
         computer system implementation, and $0.3 for discontinuing the
         Company's apparel business.