Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidating Financial Statements

v2.3.0.15
Condensed Consolidating Financial Statements
6 Months Ended
Sep. 30, 2011
Condensed Consolidating Financial Statements  
Condensed Consolidating Financial Statements

Note 13. Condensed Consolidating Financial Statements

 

The 10.5% Senior Notes are fully and unconditionally guaranteed, jointly and severally, on a senior basis by certain of the Company’s 100% owned domestic subsidiaries (“Guarantor Subsidiaries”) and secured by a first priority lien on 51% of the capital stock of certain of our foreign restricted subsidiaries (“Non-Guarantor Subsidiaries”).  The Company’s Guarantor Subsidiaries and Non-Guarantor Subsidiaries are not consistent with the Company’s business groups or geographic operations; accordingly this basis of presentation is not intended to present the Company’s financial condition, results of operations or cash flows for any purpose other than to comply with the specific requirements for subsidiary guarantor reporting. We are required to present condensed consolidating financial information in order for the subsidiary guarantors of the Company’s public debt to be exempt from reporting under the Securities Exchange Act of 1934, as amended.

 

Condensed consolidating financial statements for the Company’s Guarantor Subsidiaries and Non-Guarantor Subsidiaries are presented in the following tables (amounts in thousands):

 

Condensed Consolidating Balance Sheet

September 30, 2011

 

 

 

Parent

 

Guarantor 
Subsidiaries

 

Non-Guarantor 
Subsidiaries

 

Reclassifications
and Eliminations

 

Consolidated

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

6,705

 

$

92,255

 

$

28,203

 

$

—

 

$

127,163

 

Accounts receivable, net

 

—

 

45,596

 

68,903

 

—

 

114,499

 

Intercompany receivable

 

178,197

 

90,395

 

165,663

 

(434,255

)

—

 

Inventories, net

 

—

 

125,767

 

99,103

 

(297

)

224,573

 

Restricted cash

 

—

 

36,497

 

—

 

—

 

36,497

 

Prepaid expenses and other

 

208

 

9,770

 

21,499

 

—

 

31,477

 

Deferred income taxes

 

(131

)

1,204

 

4,278

 

—

 

5,351

 

Total current assets

 

184,979

 

401,484

 

387,649

 

(434,552

)

539,560

 

Property and equipment, net

 

42

 

95,726

 

214,264

 

—

 

310,032

 

Investments in subsidiaries

 

399,546

 

346,081

 

(5,348

)

(740,279

)

—

 

Intangible assets, net

 

—

 

10,902

 

10,427

 

—

 

21,329

 

Other assets

 

5,791

 

3,751

 

1,223

 

—

 

10,765

 

Long-term intercompany receivable

 

80,056

 

97,255

 

—

 

(177,311

)

—

 

Total assets

 

$

670,414

 

$

955,199

 

$

608,215

 

$

(1,352,142

)

$

881,686

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

36,153

 

$

—

 

$

1,542

 

$

—

 

$

37,695

 

Accounts payable, trade

 

—

 

29,302

 

45,122

 

—

 

74,424

 

Intercompany payable

 

2,237

 

331,916

 

100,399

 

(434,552

)

—

 

Accrued expenses

 

8,058

 

27,943

 

41,035

 

—

 

77,036

 

Income taxes payable

 

(2,790

)

2,754

 

3,080

 

—

 

3,044

 

Total current liabilities

 

43,658

 

391,915

 

191,178

 

(434,552

)

192,199

 

Long-term debt, less current portion

 

227,345

 

—

 

2,266

 

—

 

229,611

 

Other non-current obligations

 

—

 

5,486

 

46,294

 

—

 

51,780

 

Deferred income taxes

 

(131

)

2,053

 

6,637

 

—

 

8,559

 

Long-term intercompany payable

 

—

 

80,056

 

97,255

 

(177,311

)

—

 

Stockholders’ equity

 

399,542

 

475,689

 

264,585

 

(740,279

)

399,537

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

670,414

 

$

955,199

 

$

608,215

 

$

(1,352,142

)

$

881,686

 

 

Condensed Consolidating Balance Sheet

March 31, 2011

 

 

 

Parent 

 

Guarantor 
Subsidiaries

 

Non-Guarantor 
Subsidiaries

 

Reclassifications
and Eliminations

 

Consolidated

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

6,417

 

$

119,326

 

$

26,308

 

$

—

 

$

152,051

 

Accounts receivable, net

 

—

 

64,380

 

85,990

 

—

 

150,370

 

Intercompany receivable

 

190,973

 

176,233

 

197,329

 

(564,535

)

—

 

Inventories, net

 

—

 

113,908

 

92,830

 

(298

)

206,440

 

Prepaid expenses and other

 

302

 

11,034

 

16,761

 

—

 

28,097

 

Deferred income taxes

 

(596

)

1,373

 

4,524

 

—

 

5,301

 

Total current assets

 

197,096

 

486,254

 

423,742

 

(564,833

)

542,259

 

Property and equipment, net

 

122

 

82,962

 

227,328

 

—

 

310,412

 

Investments in subsidiaries

 

347,997

 

333,801

 

(5,686

)

(676,112

)

—

 

Intangible assets, net

 

—

 

8,666

 

11,426

 

—

 

20,092

 

Other assets

 

6,160

 

4,356

 

1,030

 

—

 

11,546

 

Long-term intercompany receivable

 

84,231

 

102,324

 

—

 

(186,555

)

—

 

Total assets

 

$

    635,606

 

$

1,018,363

 

$

657,840

 

$

(1,427,500

)

$

884,309

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

39,012

 

$

—

 

$

3,089

 

$

—

 

$

42,101

 

Accounts payable, trade

 

40

 

32,762

 

58,195

 

—

 

90,997

 

Intercompany payable

 

732

 

419,043

 

145,058

 

(564,833

)

—

 

Accrued expenses

 

10,837

 

31,330

 

46,124

 

—

 

88,291

 

Income taxes payable

 

(1,380

)

1,434

 

4,211

 

—

 

4,265

 

Total current liabilities

 

49,241

 

484,569

 

256,677

 

(564,833

)

225,654

 

Long-term debt, less current portion

 

227,208

 

—

 

4,007

 

—

 

231,215

 

Other non-current obligations

 

—

 

7,989

 

51,738

 

—

 

59,727

 

Deferred income taxes

 

(596

)

2,169

 

6,387

 

—

 

7,960

 

Long-term intercompany payable

 

—

 

84,231

 

102,324

 

(186,555

)

—

 

Stockholders’ equity

 

359,753

 

439,405

 

236,707

 

(676,112

)

359,753

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

635,606

 

$

1,018,363

 

$

657,840

 

$

(1,427,500

)

$

884,309

 

 

Condensed Consolidating Statement of Operations

For the Quarter Ended September 30, 2011

 

 

 

Parent

 

Guarantor 
Subsidiaries

 

Non-Guarantor 
Subsidiaries

 

Reclassifications
and Eliminations

 

Consolidated

 

Net sales

 

$

—

 

$

249,751

 

$

245,315

 

$

(229,552

)

$

265,514

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

124

 

200,097

 

225,122

 

(222,024

)

203,319

 

Selling, general and administrative expenses

 

5,617

 

17,496

 

13,621

 

(8,379

)

28,355

 

Research and development

 

—

 

5,276

 

2,086

 

—

 

7,362

 

Restructuring charges

 

—

 

1,357

 

248

 

—

 

1,605

 

Net (gain) loss on sales and disposals of assets

 

—

 

10

 

(50

)

—

 

(40

)

Total operating costs and expenses

 

5,741

 

224,236

 

241,027

 

(230,403

)

240,601

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

(5,741

)

25,515

 

4,288

 

851

 

24,913

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (income) expense:

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

(2

)

(10

)

(19

)

—

 

(31

)

Interest expense

 

7,031

 

84

 

167

 

—

 

7,282

 

Other (income) expense, net

 

(10,250

)

15,833

 

(4,286

)

—

 

1,297

 

Equity in earnings of subsidiaries

 

(16,584

)

—

 

—

 

16,584

 

—

 

Income before income taxes

 

14,064

 

9,608

 

8,426

 

(15,733

)

16,365

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

(254

)

(506

)

2,807

 

—

 

2,047

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

14,318

 

$

10,114

 

$

5,619

 

$

(15,733

)

$

14,318

 

 

Condensed Consolidating Statement of Operations

For the Quarter Ended September 30, 2010

 

 

 

Parent

 

Guarantor 
Subsidiaries

 

Non-Guarantor 
Subsidiaries

 

Reclassifications
and Eliminations

 

Consolidated

 

Net sales

 

$

—

 

$

242,856

 

$

236,659

 

$

(230,927

)

$

248,588

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

—

 

183,304

 

216,192

 

(220,626

)

178,870

 

Selling, general and administrative expenses

 

11,925

 

15,031

 

6,949

 

(8,906

)

24,999

 

Research and development

 

—

 

4,840

 

1,384

 

—

 

6,224

 

Restructuring charges

 

—

 

1,540

 

763

 

—

 

2,303

 

Net (gain) loss on sales and disposals of assets

 

—

 

(1,807

)

37

 

—

 

(1,770

)

Total operating costs and expenses

 

11,925

 

202,908

 

225,325

 

(229,532

)

210,626

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

(11,925

)

39,948

 

11,334

 

(1,395

)

37,962

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (income) expenses:

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

(4

)

(131

)

(9

)

60

 

(84

)

Interest expense

 

7,093

 

—

 

301

 

(60

)

7,334

 

Other (income) expense, net

 

(12,005

)

3,145

 

3,742

 

326

 

(4,792

)

Equity in earnings of subsidiaries

 

(41,920

)

—

 

—

 

41,920

 

—

 

Income before income taxes

 

34,911

 

36,934

 

7,300

 

(43,641

)

35,504

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

—

 

40

 

585

 

(32

)

593

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

34,911

 

$

36,894

 

$

6,715

 

$

(43,609

)

$

34,911

 

 

 Condensed Consolidating Statement of Operations

For the Six Months Ended September 30, 2011

 

 

 

Parent

 

Guarantor 
Subsidiaries

 

Non-Guarantor 
Subsidiaries

 

Reclassifications
and Eliminations

 

Consolidated

 

Net sales

 

$

—

 

$

519,438

 

$

525,337

 

$

(489,405

)

$

555,370

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

286

 

426,505

 

459,690

 

(472,658

)

413,823

 

Selling, general and administrative expenses

 

17,066

 

33,211

 

25,715

 

(17,361

)

58,631

 

Research and development

 

—

 

10,303

 

4,145

 

—

 

14,448

 

Restructuring charges

 

—

 

1,838

 

792

 

—

 

2,630

 

Net loss on sales and disposals of assets

 

3

 

29

 

51

 

—

 

83

 

Total operating costs and expenses

 

17,355

 

471,886

 

490,393

 

(490,019

)

489,615

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

(17,355

)

47,552

 

34,944

 

614

 

65,755

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (income) expenses:

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

(6

)

(27

)

(41

)

—

 

(74

)

Interest expense

 

14,134

 

158

 

390

 

—

 

14,682

 

Other (income) expense, net

 

(21,794

)

23,820

 

(893

)

69

 

1,202

 

Equity in earnings of subsidiaries

 

(54,664

)

—

 

—

 

54,664

 

—

 

Income before income taxes

 

44,975

 

23,601

 

35,488

 

(54,119

)

49,945

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

(1,192

)

97

 

4,873

 

—

 

3,778

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

46,167

 

$

23,504

 

$

30,615

 

$

(54,119

)

$

46,167

 

 

Condensed Consolidating Statement of Operations

For the Six Months Ended September 30, 2010

 

 

 

Parent

 

Guarantor 
Subsidiaries

 

Non-Guarantor 
Subsidiaries

 

Reclassifications
and Eliminations

 

Consolidated

 

Net sales

 

$

—

 

$

472,045

 

$

484,838

 

$

(464,501

)

$

492,382

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

—

 

364,608

 

441,000

 

(443,852

)

361,756

 

Selling, general and administrative expenses

 

20,614

 

28,299

 

19,358

 

(19,057

)

49,214

 

Research and development

 

—

 

9,162

 

3,093

 

—

 

12,255

 

Restructuring charges

 

—

 

3,072

 

1,023

 

—

 

4,095

 

Net (gain) loss on sales and disposals of assets

 

—

 

(1,783

)

348

 

—

 

(1,435

)

Total operating costs and expenses

 

20,614

 

403,358

 

464,822

 

(462,909

)

425,885

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

(20,614

)

68,687

 

20,016

 

(1,592

)

66,497

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (income) expenses:

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

(13

)

(137

)

(15

)

60

 

(105

)

Interest expense

 

14,212

 

94

 

546

 

(60

)

14,792

 

Loss on early extinguishment of debt

 

38,248

 

—

 

—

 

—

 

38,248

 

Other (income) expense, net

 

(14,680

)

12,260

 

(795

)

97

 

(3,118

)

Equity in earnings of subsidiaries

 

(73,193

)

—

 

—

 

73,193

 

—

 

Income before income taxes

 

14,812

 

56,470

 

20,280

 

(74,882

)

16,680

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

—

 

107

 

1,761

 

—

 

1,868

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

14,812

 

$

56,363

 

$

18,519

 

$

(74,882

)

$

14,812

 

 

Condensed Consolidating Statement of Cash Flows

For the Six Months Ended September 30, 2011

 

 

 

Parent

 

Guarantor 
Subsidiaries

 

Non-Guarantor 
Subsidiaries

 

Reclassifications
and Eliminations

 

Consolidated

 

Sources (uses) of cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

4,214

 

$

32,545

 

$

14,230

 

$

—

 

$

50,989

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

(1

)

(11,505

)

(8,599

)

—

 

(20,105

)

Acquisitions

 

—

 

(11,584

)

—

 

—

 

(11,584

)

Net cash used in investing activities

 

(1

)

(23,089

)

(8,599

)

—

 

(31,689

)

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

Change in restricted cash

 

—

 

(36,497

)

—

 

—

 

(36,497

)

Payments of long-term debt

 

(4,084

)

—

 

—

 

—

 

(4,084

)

Net payments under other credit facilities

 

—

 

—

 

(3,153

)

—

 

(3,153

)

Proceeds from exercise of stock options

 

159

 

—

 

—

 

—

 

159

 

Debt issuance costs

 

—

 

(29

)

—

 

—

 

(29

)

Net cash used in financing activities

 

(3,925

)

(36,526

)

(3,153

)

—

 

(43,604

)

Net increase (decrease) in cash and cash equivalents

 

288

 

(27,070

)

2,478

 

—

 

(24,304

)

Effect of foreign currency fluctuations on cash

 

—

 

—

 

(584

)

—

 

(584

)

Cash and cash equivalents at beginning of fiscal period

 

6,417

 

119,326

 

26,308

 

—

 

152,051

 

Cash and cash equivalents at end of fiscal period

 

$

6,705

 

$

92,256

 

$

28,202

 

$

—

 

$

127,163

 

 

Condensed Consolidating Statement of Cash Flows

For the Six Months Ended September 30, 2010

 

 

 

Parent

 

Guarantor 
Subsidiaries

 

Non-Guarantor 
Subsidiaries

 

Reclassifications
and Eliminations

 

Consolidated

 

Sources (uses) of cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

$

(13,977

)

$

48,573

 

$

21,849

 

$

—

 

$

56,445

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

—

 

(4,524

)

(9,297

)

—

 

(13,821

)

Proceeds from sales of assets

 

—

 

5,425

 

—

 

—

 

5,425

 

Net cash provided by (used in) investing activities

 

—

 

901

 

(9,297

)

—

 

(8,396

)

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of debt

 

226,976

 

—

 

458

 

—

 

227,434

 

Payments of long-term debt

 

(210,604

)

(15,000

)

(2,939

)

—

 

(228,543

)

Net payments under other credit facilities

 

—

 

—

 

(1,779

)

—

 

(1,779

)

Debt issuance costs

 

(7,461

)

—

 

—

 

—

 

(7,461

)

Debt extinguishment costs

 

(207

)

—

 

—

 

—

 

(207

)

Net cash provided by (used in) financing activities

 

8,704

 

(15,000

)

(4,260

)

—

 

(10,556

)

Net increase (decrease) in cash and cash equivalents

 

(5,273

)

34,474

 

8,292

 

—

 

37,493

 

Effect of foreign currency fluctuations on cash

 

—

 

(28

)

790

 

—

 

762

 

Cash and cash equivalents at beginning of fiscal period

 

11,602

 

54,707

 

12,890

 

—

 

79,199

 

Cash and cash equivalents at end of fiscal period

 

$

6,329

 

$

89,153

 

$

21,972

 

$

—

 

$

117,454