Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidating Financial Statements

v2.4.0.6
Condensed Consolidating Financial Statements
6 Months Ended
Sep. 30, 2012
Condensed Consolidating Financial Statements  
Condensed Consolidating Financial Statements

Note 16. 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. The Company is 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.

 

In fiscal year 2012, the Company incorrectly reflected transactions between the Parent and the Guarantor Subsidiaries in the Condensed Consolidating Financial Statements which did not impact the consolidated results.  As of March 31, 2012, this resulted in an understatement of the Guarantor Subsidiaries’ retained earnings, intercompany receivables and net income by $27.8 million.  Management concluded that the correction of prior periods is immaterial; and accordingly, previous filings have not been revised.  However, during the current period, the Company has corrected its disclosure of the Condensed Consolidating Balance Sheet as of March 31, 2012.  Future filings will be corrected as applicable.

 

In the second quarter of fiscal year 2013, the Company recorded a year-to-date adjustment to properly reflect transactions between the Parent and Guarantor Subsidiaries in the Condensed Consolidating Financial Statements which did not impact the consolidated results. Management concluded that the correction of the first quarter of fiscal year 2013 is immaterial; and accordingly, the previous filing has not been revised.

 

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, 2012

(Unaudited)

 

 

 

Parent

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

Reclassifications
and Eliminations

 

Consolidated

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

8,398

 

$

118,578

 

$

33,519

 

$

 

$

160,495

 

Accounts receivable, net

 

 

41,154

 

58,006

 

 

99,160

 

Intercompany receivable

 

268,826

 

214,603

 

215,640

 

(699,069

)

 

Inventories, net

 

 

129,429

 

95,344

 

 

224,773

 

Prepaid expenses and other

 

276

 

14,258

 

26,507

 

 

41,041

 

Deferred income taxes

 

 

872

 

4,786

 

 

5,658

 

Total current assets

 

277,500

 

518,894

 

433,802

 

(699,069

)

531,127

 

Property and equipment, net

 

14

 

114,612

 

201,556

 

 

316,182

 

Investments in subsidiaries

 

431,379

 

467,565

 

10,678

 

(909,622

)

 

Goodwill

 

 

35,584

 

 

 

35,584

 

Intangible assets, net

 

 

30,899

 

9,203

 

 

40,102

 

Other assets

 

7,404

 

6,347

 

4,051

 

 

17,802

 

Long-term intercompany receivable

 

76,659

 

60,250

 

2,881

 

(139,790

)

 

Total assets

 

$

792,956

 

$

1,234,151

 

$

662,171

 

$

(1,748,481

)

$

940,797

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

 

$

25

 

$

1,551

 

$

 

$

1,576

 

Accounts payable, trade

 

57

 

38,862

 

43,237

 

 

82,156

 

Intercompany payable

 

60,976

 

451,005

 

159,226

 

(671,207

)

 

Accrued expenses

 

35,523

 

17,008

 

36,092

 

 

88,623

 

Income taxes payable

 

(2,947

)

3,055

 

514

 

 

622

 

Total current liabilities

 

93,609

 

509,955

 

240,620

 

(671,207

)

172,977

 

Long-term debt, less current portion

 

359,066

 

 

555

 

 

359,621

 

Other non-current obligations

 

26,968

 

4,504

 

58,626

 

 

90,098

 

Deferred income taxes

 

 

1,007

 

3,781

 

 

4,788

 

Long-term intercompany payable

 

 

76,659

 

63,131

 

(139,790

)

 

Stockholders’ equity

 

313,313

 

642,026

 

295,458

 

(937,484

)

313,313

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

792,956

 

$

1,234,151

 

$

662,171

 

$

(1,748,481

)

$

940,797

 

 

 

Condensed Consolidating Balance Sheet

March 31, 2012

 

 

 

Parent

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

Reclassifications
and Eliminations

 

Consolidated

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

7,933

 

$

178,205

 

$

24,383

 

$

 

$

210,521

 

Accounts receivable, net

 

 

42,706

 

62,244

 

 

104,950

 

Intercompany receivable

 

251,970

 

55,863

 

171,921

 

(479,754

)

 

Inventories, net

 

 

121,611

 

90,623

 

 

212,234

 

Prepaid expenses and other

 

306

 

13,537

 

18,416

 

 

32,259

 

Deferred income taxes

 

 

192

 

6,178

 

 

6,370

 

Total current assets

 

260,209

 

412,114

 

373,765

 

(479,754

)

566,334

 

Property and equipment, net

 

20

 

114,615

 

201,213

 

 

315,848

 

Investments in subsidiaries

 

454,517

 

435,970

 

(4,622

)

(885,865

)

 

Goodwill

 

 

36,676

 

 

 

36,676

 

Intangible assets, net

 

 

31,630

 

9,897

 

 

41,527

 

Other assets

 

7,796

 

6,160

 

1,211

 

 

15,167

 

Long-term intercompany receivable

 

79,185

 

62,235

 

1,065

 

(142,485

)

 

Total assets

 

$

801,727

 

$

1,099,400

 

$

582,529

 

$

(1,508,104

)

$

975,552

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

 

$

25

 

$

1,926

 

$

 

$

1,951

 

Accounts payable, trade

 

460

 

35,206

 

39,490

 

(752

)

74,404

 

Intercompany payable

 

34,830

 

315,906

 

122,799

 

(473,535

)

 

Accrued expenses

 

30,747

 

23,007

 

35,325

 

 

89,079

 

Income taxes payable

 

(2,778

)

3,031

 

2,003

 

 

2,256

 

Total current liabilities

 

63,259

 

377,175

 

201,543

 

(474,287

)

167,690

 

Long-term debt, less current portion

 

343,539

 

 

1,841

 

 

345,380

 

Other non-current obligations

 

35,933

 

5,400

 

59,896

 

 

101,229

 

Deferred income taxes

 

 

272

 

1,985

 

 

2,257

 

Long-term intercompany payable

 

 

79,185

 

63,300

 

(142,485

)

 

Stockholders’ equity

 

358,996

 

637,368

 

253,964

 

(891,332

)

358,996

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

801,727

 

$

1,099,400

 

$

582,529

 

$

(1,508,104

)

$

975,552

 

 

 

Condensed Consolidating Statement of Operations

For the Quarter Ended September 30, 2012

 

 

 

Parent

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

Reclassifications
and Eliminations

 

Consolidated

 

Net sales

 

$

 

$

233,867

 

$

226,355

 

$

(244,231

)

$

215,991

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

675

 

214,546

 

201,726

 

(233,894

)

183,053

 

Selling, general and administrative expenses

 

13,436

 

10,977

 

13,907

 

(10,337

)

27,983

 

Research and development

 

59

 

4,741

 

2,033

 

 

6,833

 

Restructuring charges

 

 

1,797

 

6,725

 

 

8,522

 

Goodwill impairment

 

 

1,092

 

 

 

1,092

 

Write down of long-lived assets

 

 

 

4,234

 

 

4,234

 

Settlement gain on benefit plan

 

 

 

(1,675

)

 

(1,675

)

Net gain on sales and disposals of assets

 

 

 

(31

)

 

(31

)

Total operating costs and expenses

 

14,170

 

233,153

 

226,919

 

(244,231

)

230,011

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

(14,170

)

714

 

(564

)

 

(14,020

)

 

 

 

 

 

 

 

 

 

 

 

 

Other (income) expense, net

 

(3,224

)

11,493

 

845

 

 

9,114

 

Equity in earnings of subsidiaries

 

13,975

 

 

 

(13,975

)

 

Income (loss) before income taxes

 

(24,921

)

(10,779

)

(1,409

)

13,975

 

(23,134

)

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

47

 

1,740

 

 

1,787

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(24,921

)

$

(10,826

)

$

(3,149

)

$

13,975

 

$

(24,921

)

 

Condensed Consolidating Statement of Comprehensive Income (Loss)

Quarter Ended September 30, 2012

 

Comprehensive income (loss)

 

$

2,015

 

$

(663

)

$

1,079

 

$

 

$

2,431

 

 

 

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, net

 

(3,221

)

15,907

 

(4,138

)

 

8,548

 

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 Comprehensive Loss

Quarter Ended September 30, 2011

 

Comprehensive loss

 

$

(5,633

)

$

(1,300

)

$

(4,650

)

$

 

$

(11,583

)

 

 

Condensed Consolidating Statement of Operations

For the Six Months Ended September 30, 2012

 

 

 

Parent

 

Guarantor
Subsidiaries

 

Non-Guarantor
Subsidiaries

 

Reclassifications
and Eliminations

 

Consolidated

 

Net sales

 

$

 

$

474,811

 

$

455,070

 

$

(490,258

)

$

439,623

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

1,093

 

432,864

 

409,303

 

(468,886

)

374,374

 

Selling, general and administrative expenses

 

15,041

 

31,720

 

29,849

 

(21,372

)

55,238

 

Research and development

 

100

 

10,029

 

4,437

 

 

14,566

 

Restructuring charges

 

 

1,960

 

7,826

 

 

9,786

 

Goodwill impairment

 

 

1,092

 

 

 

1,092

 

Write down of long-lived assets

 

 

 

4,234

 

 

4,234

 

Settlement gain on benefit plan

 

 

 

(1,675

)

 

(1,675

)

Net loss on sales and disposals of assets

 

 

33

 

40

 

 

73

 

Total operating costs and expenses

 

16,234

 

477,698

 

454,014

 

(490,258

)

457,688

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

(16,234

)

(2,887

)

1,056

 

 

(18,065

)

 

 

 

 

 

 

 

 

 

 

 

 

Other (income) expense, net

 

6,963

 

14,652

 

(564

)

 

21,051

 

Equity in earnings of subsidiaries

 

19,477

 

 

 

(19,477

)

 

Income (loss) before income taxes

 

(42,674

)

(17,539

)

1,620

 

19,477

 

(39,116

)

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

107

 

3,451

 

 

3,558

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(42,674

)

$

(17,646

)

$

(1,831

)

$

19,477

 

$

(42,674

)

 

Condensed Consolidating Statement of Comprehensive Income (Loss)

Six Months Ended September 30, 2012

 

Comprehensive income (loss)

 

$

(2,526

)

$

379

 

$

(3,215

)

$

 

$

(5,362

)

 

 

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) expense, net

 

(7,666

)

23,951

 

(544

)

69

 

15,810

 

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 Comprehensive Loss

Six Months Ended September 30, 2011

 

Comprehensive loss

 

$

(4,174

)

$

(1,059

)

$

(3,199

)

$

 

$

(8,432

)

 

Condensed Consolidating Statement of Cash Flows

For the Six Months Ended September 30, 2012

 

 

 

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

 

$

(9,510

)

$

(48,750

)

$

31,636

 

$

 

$

(26,624

)

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(9,877

)

(20,466

)

 

(30,343

)

Net cash used in investing activities

 

 

(9,877

)

(20,466

)

 

(30,343

)

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of debt

 

15,825

 

 

 

 

15,825

 

Deferred acquisition payments

 

(5,617

)

(1,000

)

 

 

(6,617

)

Payments of long-term debt

 

 

 

(1,576

)

 

(1,576

)

Proceeds from exercise of stock options

 

42

 

 

 

 

42

 

Debt issuance costs

 

(275

)

 

 

 

(275

)

Net cash provided by (used in) financing activities

 

9,975

 

(1,000

)

(1,576

)

 

7,399

 

Net increase (decrease) in cash and cash equivalents

 

465

 

(59,627

)

9,594

 

 

(49,568

)

Effect of foreign currency fluctuations on cash

 

 

 

(458

)

 

(458

)

Cash and cash equivalents at beginning of fiscal period

 

7,933

 

178,205

 

24,383

 

 

210,521

 

Cash and cash equivalents at end of fiscal period

 

$

8,398

 

$

118,578

 

$

33,519

 

$

 

$

160,495

 

 

 

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

)

Acquisition, net of cash received

 

 

(11,584

)

 

 

(11,584

)

Net cash used in investing activities

 

(1

)

(23,089

)

(8,599

)

 

(31,689

)

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

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

)

Change in restricted cash

 

 

(36,497

)

 

 

(36,497

)

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