Delaware (State or other jurisdiction of incorporation) | 333-05978 (Commission File Number) | 58-2502320 (I.R.S. Employer Identification Number) |
303 Research Drive, Suite 400 Norcross, GA 30092 (Address of principal executive offices, including zip code) |
Exhibit No. | Description | |
99.1 | Press Release of Euramax Holdings, Inc. dated May 9, 2014, reporting Euramax Holdings, Inc.'s financial results for the first quarter 2014. |
EURAMAX HOLDINGS, INC. | |||
Date: May 9, 2014 | By: | /s/ Mary S. Cullin | |
Name: Mary S. Cullin | |||
Title: Senior Vice President, Chief Financial Officer and Treasurer | |||
Exhibit No. | Description | |
99.1 | Press Release dated May 9, 2014. |
• | Net sales declined $2.6 million, or 1.5%, to $169.9 million in the first quarter of 2014 compared to $172.5 million in the first quarter of 2013. Net sales in the Company's U.S. Residential Building Products segment declined primarily due to lower selling prices as a result of a decline in aluminum commodity costs and unfavorable changes in product mix. These declines were partially offset by higher sales of vinyl window and patio offerings driven by broader demand in the repair and remodel sector. In the U.S. Commercial Products segment, lower demand in both the post frame and architectural construction markets negatively impacted net sales, partially offset by higher demand from OEMs in the transportation and RV markets. Net sales in the Company's European segments, excluding the impact of foreign currency fluctuations, declined compared to the first quarter of 2013, primarily as a result of lower demand for factory built holiday homes in the United Kingdom and specialty coated coil and panels used in architectural and industrial projects in Western Europe. These declines were partially offset by higher sales from OEMs in the RV and transportation markets and from ongoing business development initiatives in emerging markets. The strengthening of the euro and British pound sterling against the U.S. dollar resulted in an approximate $2.9 million increase in net sales during the quarter. |
• | Income from operations improved $2.4 million to a loss of $5.0 million in the first quarter of 2014 compared to a loss of $7.4 million for the first quarter of 2013. The improvement in operating income in the first quarter of 2014 was primarily due to a $1.8 million decline in other operating charges to $1.0 million compared to a $2.8 million other operating charge recorded in the first quarter of 2013. Other operating charges in the first quarter of 2014 were primarily related to restructuring initiatives in our European operating segments. Income from operations also improved due to higher gross margins in the European Roll Coated Aluminum segment as a result of higher net sales in the RV market combined with business development initiatives during the first quarter of 2014. |
• | Adjusted EBITDA is a significant operating measure used by the Company to measure its operating performance and liquidity. Adjusted EBITDA was $4.4 million in the first quarter of 2014 compared to $5.4 million in the first quarter of 2013, a decrease of $1.0 million, or 18.5%. |
March 28, 2014 | December 31, 2013 | ||||||
ASSETS | (unaudited) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 4,398 | $ | 8,977 | |||
Accounts receivable, less allowances of $2,239 and $2,235, respectively | 92,123 | 73,996 | |||||
Inventories, net | 104,729 | 89,760 | |||||
Income taxes receivable | 315 | 982 | |||||
Deferred income taxes | 577 | 580 | |||||
Other current assets | 7,708 | 7,008 | |||||
Total current assets | 209,850 | 181,303 | |||||
Property, plant and equipment, net | 126,843 | 130,114 | |||||
Goodwill | 204,174 | 204,053 | |||||
Customer relationships, net | 37,374 | 40,631 | |||||
Other intangible assets, net | 6,923 | 7,073 | |||||
Deferred income taxes | 93 | 87 | |||||
Other assets | 7,959 | 8,712 | |||||
Total assets | $ | 593,216 | $ | 571,973 | |||
LIABILITIES AND SHAREHOLDERS’ DEFICIT | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 83,650 | $ | 57,262 | |||
Accrued expenses and other current liabilities | 25,985 | 26,366 | |||||
Accrued interest payable | 21,772 | 9,020 | |||||
Current portion of long-term debt | 14,657 | — | |||||
Deferred income taxes | 606 | 605 | |||||
Total current liabilities | 146,670 | 93,253 | |||||
Long-term debt | 521,769 | 535,396 | |||||
Deferred income taxes | 19,853 | 18,980 | |||||
Other liabilities | 33,006 | 32,907 | |||||
Total liabilities | 721,298 | 680,536 | |||||
Shareholders’ deficit: | |||||||
Common stock | 195 | 195 | |||||
Additional paid-in capital | 724,193 | 724,071 | |||||
Accumulated loss | (863,022 | ) | (843,750 | ) | |||
Accumulated other comprehensive income | 10,552 | 10,921 | |||||
Total shareholders’ deficit | (128,082 | ) | (108,563 | ) | |||
Total liabilities and shareholders’ deficit | $ | 593,216 | $ | 571,973 |
Three months ended | |||||||
March 28, 2014 | March 29, 2013 | ||||||
Net sales | $ | 169,904 | $ | 172,545 | |||
Costs and expenses: | |||||||
Cost of goods sold (excluding depreciation and amortization) | 146,971 | 149,170 | |||||
Selling and general (excluding depreciation and amortization) | 18,776 | 19,440 | |||||
Depreciation and amortization | 8,202 | 8,593 | |||||
Other operating charges | 965 | 2,774 | |||||
Loss from operations | (5,010 | ) | (7,432 | ) | |||
Interest expense | (13,765 | ) | (13,598 | ) | |||
Other income (loss), net | 196 | (6,345 | ) | ||||
Loss before income taxes | (18,579 | ) | (27,375 | ) | |||
Provision for income taxes | 693 | 741 | |||||
Net loss | $ | (19,272 | ) | $ | (28,116 | ) |
Three months ended | |||||||
March 28, 2014 | March 29, 2013 | ||||||
Net cash used in operating activities | $ | (3,886 | ) | $ | (23,328 | ) | |
Cash flows from investing activities: | |||||||
Proceeds from sales of assets | 43 | 116 | |||||
Capital expenditures | (1,488 | ) | (2,226 | ) | |||
Net cash used in investing activities | (1,445 | ) | (2,110 | ) | |||
Cash flows from financing activities: | |||||||
Net borrowings on Dutch Revolving Credit Facility | 14,657 | 11,510 | |||||
Net (repayments) borrowings on ABL Credit Facility | (13,756 | ) | 7,802 | ||||
Changes in cash overdrafts | 236 | — | |||||
Debt issuance costs | (88 | ) | (175 | ) | |||
Net cash provided by financing activities | 1,049 | 19,137 | |||||
Effect of exchange rate changes on cash | (297 | ) | 464 | ||||
Net decrease in cash and cash equivalents | (4,579 | ) | (5,837 | ) | |||
Cash and cash equivalents at beginning of period | 8,977 | 10,024 | |||||
Cash and cash equivalents at end of period | $ | 4,398 | $ | 4,187 |
Three months ended | |||||||
March 28, 2014 | March 29, 2013 | ||||||
Net loss | $ | (19,272 | ) | $ | (28,116 | ) | |
Add: | |||||||
Interest expense | 13,765 | 13,598 | |||||
Depreciation and amortization | 8,202 | 8,593 | |||||
Provision for income taxes | 693 | 741 | |||||
Adjustments: | |||||||
Other (income) loss, net (a) | (196 | ) | 6,345 | ||||
Plant closure, severance, relocation and one-time compensation costs | 764 | 1,513 | |||||
Non-recurring executive consulting | 222 | — | |||||
Non-recurring consulting, legal and professional fees | 140 | 15 | |||||
Stock compensation expense | 121 | 768 | |||||
Loss on asset held for sale | — | 1,594 | |||||
Long term incentive plan | — | 315 | |||||
Adjusted EBITDA | $ | 4,439 | $ | 5,366 |
(a) | Other income, net for the three months ended March 28, 2014 consisted primarily of translation gains on intercompany obligations due to the strengthening of the euro compared to the U.S. dollar totaling $0.2 million. Other loss, net for the three months ended March 29, 2013 was primarily comprised of translation losses of approximately $7.0 million on intercompany obligations, partially offset by gains of $0.4 million as a result of favorable legal settlements and $0.3 million on forward foreign currency contracts. |