Delaware (State or other jurisdiction of incorporation) | N/A (Commission File Number) | 58-2502320 (I.R.S. Employer Identification Number) |
5445 Triangle Parkway, Suite 350 Norcross, GA 30092 (Address of principal executive offices, including zip code) |
Exhibit No. | Description | |
99.1 | Press Release of Euramax Holdings, Inc. dated May 11, 2012, reporting Euramax Holdings, Inc.'s financial results for the first quarter 2012. |
EURAMAX HOLDINGS, INC. | |||
Date: May 11, 2012 | By: | /s/ R. Scott Vansant | |
Name: R. Scott Vansant | |||
Title: Vice President and Chief Financial Officer | |||
Exhibit No. | Description | |
99.1 | Press Release dated May 11, 2012. |
• | Net sales include revenue recognized from the sales of our products less provisions for returns, allowances, rebates and discounts. The Company's net sales declined $11.7 million, or 5.6%, to $198.7 million in the first quarter of 2012 compared to $210.4 million in the first quarter of 2011. Net sales in the Company's European Roll Coated Aluminum and European Engineered Product segment were negatively impacted by economic uncertainty throughout Europe which has resulted in delays of architectural and industrial products and reduced consumer confidence. The weakening of the euro and British pound sterling against the U.S. dollar also resulted in a decline in net sales during the quarter. Net sales of the U.S. Commercial Products segment declined in the first quarter of 2012 compared to the first quarter of 2011, while net sales of the U.S. Residential Products segment remained relatively flat compared to first quarter 2011. |
• | Income from operations declined $1.1 million to a loss of $(0.3) million in the first quarter of 2012 compared to income of $0.8 million for the first quarter of 2011. The decline in operating income was primarily the result of sales declines in the Company's European operating segments. Operating results for these segments reflect challenges in the architectural and industrial end markets which have been negatively impacted by economic uncertainty throughout Europe. These declines were partially offset by a reduction in other operating charges in the first quarter of 2012 compared to the prior year quarter. In the first quarter of 2011, the Company incurred approximately $2.4 million of other operating charges, primarily related to indirect tax and consulting fees related to the Company's debt offering and refinancing. In the first quarter of 2012,other operating charges totaled approximately $0.8 million, primarily related to cost savings initiatives and restructuring activities in the Company's European segments. |
• | Adjusted EBITDA is a significant operating measure used by the Company to measure its operating performance and liquidity. Adjusted EBITDA was $10.7 million in the first quarter of 2012 compared to $13.3 million in the first quarter of 2011. |
March 30, 2012 | December 30, 2011 | ||||||
ASSETS | (unaudited) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 13,188 | $ | 14,327 | |||
Accounts receivable, net of allowance for doubtful accounts of $3,360 and $4,391, respectively | 95,409 | 83,234 | |||||
Inventories, net | 96,146 | 83,396 | |||||
Income taxes receivable | 948 | 697 | |||||
Deferred income taxes | 1,911 | 1,906 | |||||
Other current assets | 6,603 | 4,336 | |||||
Total current assets | 214,205 | 187,896 | |||||
Property, plant and equipment, net | 144,855 | 146,549 | |||||
Goodwill | 200,003 | 196,686 | |||||
Customer relationships, net | 66,489 | 69,636 | |||||
Other intangible assets, net | 7,980 | 8,148 | |||||
Deferred income taxes | 15 | 6 | |||||
Other assets | 10,364 | 10,325 | |||||
Total assets | $ | 643,911 | $ | 619,246 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 73,099 | $ | 54,329 | |||
Accrued expenses and other current liabilities | 35,777 | 33,425 | |||||
Accrued interest payable | 17,848 | 8,886 | |||||
Deferred income taxes | 916 | 891 | |||||
Total current liabilities | 127,640 | 97,531 | |||||
Long-term debt | 507,856 | 507,988 | |||||
Deferred income taxes | 21,349 | 21,501 | |||||
Other liabilities | 46,676 | 45,519 | |||||
Total liabilities | 703,521 | 672,539 | |||||
Shareholders’ equity (deficit): | |||||||
Common stock | 185 | 185 | |||||
Additional paid-in capital | 719,592 | 718,837 | |||||
Accumulated loss | (790,207 | ) | (782,087 | ) | |||
Accumulated other comprehensive income | 10,820 | 9,772 | |||||
Total shareholders’ equity (deficit) | (59,610 | ) | (53,293 | ) | |||
Total liabilities and shareholders’ equity (deficit) | $ | 643,911 | $ | 619,246 |
Three months ended | |||||||
March 30, 2012 | April 1, 2011 | ||||||
Net sales | $ | 198,683 | $ | 210,379 | |||
Costs and expenses: | |||||||
Cost of goods sold (excluding depreciation and amortization) | 166,565 | 173,883 | |||||
Selling and general (excluding depreciation and amortization) | 22,881 | 24,030 | |||||
Depreciation and amortization | 8,681 | 9,237 | |||||
Other Operating Charges | 842 | 2,417 | |||||
(Loss) income from operations | (286 | ) | 812 | ||||
Interest expense | (13,536 | ) | (15,133 | ) | |||
Other income, net | 6,044 | 4,886 | |||||
Loss before income taxes | (7,778 | ) | (9,435 | ) | |||
Provision (benefit) for income taxes | 342 | (1,104 | ) | ||||
Net loss | $ | (8,120 | ) | $ | (8,331 | ) |
Three months ended | |||||||
March 30, 2012 | April 1, 2011 | ||||||
Net cash used in operating activities | $ | (666 | ) | $ | (4,881 | ) | |
Cash flows from investing activities: | |||||||
Proceeds from sales of assets | 1,169 | 42 | |||||
Capital expenditures | (1,426 | ) | (3,276 | ) | |||
Net cash used in investing activities | (257 | ) | (3,234 | ) | |||
Cash flows from financing activities: | |||||||
Changes in bank overdrafts | — | 2,997 | |||||
Net (repayments) borrowings on ABL Credit Facility | (206 | ) | 15,000 | ||||
Net repayments on First Lien Credit Facility | — | (412,028 | ) | ||||
Borrowings under Senior Secured Notes | — | 375,000 | |||||
Borrowings under Senior Unsecured Notes | — | 19,812 | |||||
Debt issuance costs | (46 | ) | (8,282 | ) | |||
Net cash used in financing activities | (252 | ) | (7,501 | ) | |||
Effect of exchange rate changes on cash | 36 | (704 | ) | ||||
Net decrease in cash and cash equivalents | (1,139 | ) | (16,320 | ) | |||
Cash and cash equivalents at beginning of period | 14,327 | 24,902 | |||||
Cash and cash equivalents at end of period | $ | 13,188 | $ | 8,582 |
Three months ended | ||||||||
March 30, 2012 | April 1, 2011 | |||||||
Net loss | $ | (8,120 | ) | $ | (8,331 | ) | ||
Add: | ||||||||
Provision (benefit) for income taxes | 342 | (1,104 | ) | |||||
Interest expense | 13,536 | 15,133 | ||||||
Depreciation and amortization (a) | 8,845 | 9,404 | ||||||
Adjustments: | ||||||||
Other income, net (b) | (6,044 | ) | (4,886 | ) | ||||
Debt offering and refinancing fees (c) | — | 2,149 | ||||||
Stock compensation expense | 755 | 652 | ||||||
Long term incentive plan | 557 | — | ||||||
Severance, relocation and one-time compensation costs | 785 | 268 | ||||||
Non-recurring consulting, legal and professional fees | 57 | — | ||||||
Adjusted EBITDA | $ | 10,713 | $ | 13,285 |
(a) | Includes amortization attributable to royalty payments under a minimum purchase agreement entered into in connection with our acquisition of a product line in 2005, which is being recognized in net sales. |
(b) | Other income for the three months ended March 30, 2012 is primarily comprised of translation gains on intercompany obligations and includes an approximate $0.5 million gain on the sale of assets related to the exit of our RV door product line. Other income for the three months ended April 1, 2011 includes translation losses on intercompany obligations of $6.4 million, partially offset by a $1.5 million loss on extinguishment of the first lien credit agreement. |
(c) | Debt offering and refinancing fees include indirect tax consulting and legal fees related to the Company’s 2011 debt offering and other financing transactions and certain legal and professional fees incurred for capital market activities. |