Supplemental Condensed Consolidating Guarantor and Non-Guarantor Financial Information |
16. |
Supplemental Condensed
Consolidating Guarantor and Non-Guarantor Financial
Information: |
The 10.875% Senior Notes,
of which $265,000 aggregate principal amount was outstanding as of
September 30, 2013, were issued by Hillman Group and are fully
and unconditionally guaranteed on a joint and several basis by the
Company and certain of Company’s wholly owned subsidiaries.
The non-guarantor information presented represents our Australian,
Canadian and Mexican subsidiaries.
The following financial
information presents condensed consolidating statements of
comprehensive income, balance sheets, and cash flows for Hillman
Group, all guarantor subsidiaries, all non-guarantor subsidiaries
and the eliminations necessary to provide the consolidated results
for Hillman Companies and subsidiaries. For purposes of this
presentation, we have accounted for investments in our subsidiaries
using the equity method of accounting. The principal consolidating
adjustments eliminate investment in subsidiary and intercompany
balances and transactions.
Condensed
Consolidating Statements of Comprehensive Income
(Unaudited)
For the three
months ended September 30, 2013
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guarantors
The Hillman
Companies, Inc. |
|
|
Issuer
The Hillman
Group, Inc. |
|
|
Guarantor
Subsidiaries |
|
|
Non-
Guarantor
Subsidiaries |
|
|
Consol-
idating
Adjust-
ments |
|
|
Consolidated |
|
Net sales
|
|
$ |
— |
|
|
$ |
144,589 |
|
|
$ |
9,218 |
|
|
$ |
38,575 |
|
|
$ |
— |
|
|
$ |
192,382 |
|
Cost of sales (exclusive of
depreciation and amortization shown below)
|
|
|
— |
|
|
|
68,492 |
|
|
|
6,574 |
|
|
|
22,739 |
|
|
|
— |
|
|
|
97,805 |
|
Selling, general and
administrative expenses
|
|
|
1,672 |
|
|
|
43,576 |
|
|
|
1,792 |
|
|
|
11,579 |
|
|
|
— |
|
|
|
58,619 |
|
Acquisition and integration
expenses
|
|
|
— |
|
|
|
639 |
|
|
|
11 |
|
|
|
712 |
|
|
|
— |
|
|
|
1,362 |
|
Depreciation
|
|
|
— |
|
|
|
5,276 |
|
|
|
21 |
|
|
|
462 |
|
|
|
— |
|
|
|
5,759 |
|
Amortization
|
|
|
4,515 |
|
|
|
772 |
|
|
|
— |
|
|
|
267 |
|
|
|
— |
|
|
|
5,554 |
|
Intercompany administrative
(income) expense
|
|
|
— |
|
|
|
(88 |
) |
|
|
— |
|
|
|
88 |
|
|
|
— |
|
|
|
— |
|
Management fees to related
party
|
|
|
— |
|
|
|
63 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
63 |
|
Other (income) expense,
net
|
|
|
(148 |
) |
|
|
987 |
|
|
|
53 |
|
|
|
(101 |
) |
|
|
— |
|
|
|
791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
(6,039 |
) |
|
|
24,872 |
|
|
|
767 |
|
|
|
2,829 |
|
|
|
— |
|
|
|
22,429 |
|
Intercompany interest
(income) expense
|
|
|
(3,058 |
) |
|
|
3,058 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest expense,
net
|
|
|
(49 |
) |
|
|
10,208 |
|
|
|
— |
|
|
|
1,816 |
|
|
|
— |
|
|
|
11,975 |
|
Interest expense on junior
subordinated debentures
|
|
|
3,152 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,152 |
|
Investment income on trust
common securities
|
|
|
(95 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(95 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before equity
in subsidiaries’ income
|
|
|
(5,989 |
) |
|
|
11,606 |
|
|
|
767 |
|
|
|
1,013 |
|
|
|
— |
|
|
|
7,397 |
|
Equity in
subsidiaries’ income (loss)
|
|
|
14,679 |
|
|
|
3,073 |
|
|
|
— |
|
|
|
— |
|
|
|
(17,752 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes
|
|
|
8,690 |
|
|
|
14,679 |
|
|
|
767 |
|
|
|
1,013 |
|
|
|
(17,752 |
) |
|
|
7,397 |
|
Income tax provision
(benefit)
|
|
|
6,942 |
|
|
|
— |
|
|
|
(2,240 |
) |
|
|
947 |
|
|
|
— |
|
|
|
5,649 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ |
1,748 |
|
|
$ |
14,679 |
|
|
$ |
3,007 |
|
|
$ |
66 |
|
|
$ |
(17,752 |
) |
|
$ |
1,748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
— |
|
|
|
2,122 |
|
|
|
— |
|
|
|
(163 |
) |
|
|
— |
|
|
|
1,959 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
(loss)
|
|
$ |
1,748 |
|
|
$ |
16,801 |
|
|
$ |
3,007 |
|
|
$ |
(97 |
) |
|
$ |
(17,752 |
) |
|
$ |
3,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidating Statements of Comprehensive Income
(Unaudited)
For the three
months ended September 30, 2012
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guarantors
The Hillman
Companies, Inc. |
|
|
Issuer
The Hillman
Group, Inc. |
|
|
Guarantor
Subsidiaries |
|
|
Non-
Guarantor
Subsidiaries |
|
|
Consol-
idating
Adjust-
ments |
|
|
Consolidated |
|
Net sales
|
|
$ |
— |
|
|
$ |
137,215 |
|
|
$ |
5,992 |
|
|
$ |
4,962 |
|
|
$ |
— |
|
|
$ |
148,169 |
|
Cost of sales (exclusive of
depreciation and amortization shown separately below)
|
|
|
— |
|
|
|
64,803 |
|
|
|
4,590 |
|
|
|
3,898 |
|
|
|
— |
|
|
|
73,291 |
|
Selling, general and
administrative expenses
|
|
|
137 |
|
|
|
47,872 |
|
|
|
949 |
|
|
|
1,854 |
|
|
|
— |
|
|
|
50,812 |
|
Acquisition and integration
expenses
|
|
|
— |
|
|
|
343 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
343 |
|
Depreciation
|
|
|
— |
|
|
|
4,905 |
|
|
|
20 |
|
|
|
20 |
|
|
|
— |
|
|
|
4,945 |
|
Amortization
|
|
|
4,515 |
|
|
|
853 |
|
|
|
— |
|
|
|
98 |
|
|
|
— |
|
|
|
5,466 |
|
Intercompany administrative
(income) expense
|
|
|
— |
|
|
|
(87 |
) |
|
|
— |
|
|
|
87 |
|
|
|
— |
|
|
|
— |
|
Management and transaction
fees to related party
|
|
|
— |
|
|
|
122 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
122 |
|
Other (income) expense,
net
|
|
|
(166 |
) |
|
|
284 |
|
|
|
(10 |
) |
|
|
(499 |
) |
|
|
— |
|
|
|
(391 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
(4,486 |
) |
|
|
18,120 |
|
|
|
443 |
|
|
|
(496 |
) |
|
|
— |
|
|
|
13,581 |
|
Intercompany interest
(income) expense
|
|
|
(3,058 |
) |
|
|
3,058 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest expense,
net
|
|
|
(43 |
) |
|
|
10,305 |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
|
|
10,266 |
|
Interest expense on junior
subordinated debentures
|
|
|
3,152 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,152 |
|
Investment income on trust
common securities
|
|
|
(95 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(95 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before equity
in subsidiaries’ income
|
|
|
(4,442 |
) |
|
|
4,757 |
|
|
|
443 |
|
|
|
(500 |
) |
|
|
— |
|
|
|
258 |
|
Equity in
subsidiaries’ income (loss)
|
|
|
4,196 |
|
|
|
(172 |
) |
|
|
— |
|
|
|
— |
|
|
|
(4,024 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes
|
|
|
(246 |
) |
|
|
4,585 |
|
|
|
443 |
|
|
|
(500 |
) |
|
|
(4,024 |
) |
|
|
258 |
|
Income tax provision
(benefit)
|
|
|
(1,353 |
) |
|
|
389 |
|
|
|
195 |
|
|
|
(80 |
) |
|
|
— |
|
|
|
(849 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ |
1,107 |
|
|
$ |
4,196 |
|
|
$ |
248 |
|
|
$ |
(420 |
) |
|
$ |
(4,024 |
) |
|
$ |
1,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
697 |
|
|
|
— |
|
|
|
697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
(loss)
|
|
$ |
1,107 |
|
|
$ |
4,196 |
|
|
$ |
248 |
|
|
$ |
277 |
|
|
$ |
(4,024 |
) |
|
$ |
1,804 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidating Statements of Comprehensive Income
(Unaudited)
For the nine
months ended September 30, 2013
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guarantors
The Hillman
Companies, Inc. |
|
|
Issuer
The Hillman
Group, Inc. |
|
|
Guarantor
Subsidiaries |
|
|
Non-
Guarantor
Subsidiaries |
|
|
Consol-
idating
Adjust-
ments |
|
|
Consolidated |
|
Net sales
|
|
$ |
— |
|
|
$ |
401,351 |
|
|
$ |
24,686 |
|
|
$ |
102,975 |
|
|
$ |
— |
|
|
$ |
529,012 |
|
Cost of sales (exclusive of
depreciation and amortization shown separately below)
|
|
|
— |
|
|
|
191,012 |
|
|
|
17,719 |
|
|
|
63,058 |
|
|
|
— |
|
|
|
271,789 |
|
Selling, general and
administrative expenses
|
|
|
6,582 |
|
|
|
125,874 |
|
|
|
4,816 |
|
|
|
29,499 |
|
|
|
— |
|
|
|
166,771 |
|
Acquisition and integration
expenses
|
|
|
— |
|
|
|
2,936 |
|
|
|
62 |
|
|
|
2,546 |
|
|
|
— |
|
|
|
5,544 |
|
Depreciation
|
|
|
— |
|
|
|
16,409 |
|
|
|
56 |
|
|
|
1,109 |
|
|
|
— |
|
|
|
17,574 |
|
Amortization
|
|
|
13,544 |
|
|
|
2,315 |
|
|
|
— |
|
|
|
700 |
|
|
|
— |
|
|
|
16,559 |
|
Intercompany administrative
(income) expense
|
|
|
— |
|
|
|
(261 |
) |
|
|
— |
|
|
|
261 |
|
|
|
— |
|
|
|
— |
|
Management and transaction
fees to related party
|
|
|
— |
|
|
|
63 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
63 |
|
Other (income) expense,
net
|
|
|
(217 |
) |
|
|
2,434 |
|
|
|
(43 |
) |
|
|
752 |
|
|
|
— |
|
|
|
2,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
(19,909 |
) |
|
|
60,569 |
|
|
|
2,076 |
|
|
|
5,050 |
|
|
|
— |
|
|
|
47,786 |
|
Intercompany interest
(income) expense
|
|
|
(9,174 |
) |
|
|
9,178 |
|
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
|
|
— |
|
Interest expense,
net
|
|
|
(141 |
) |
|
|
31,638 |
|
|
|
— |
|
|
|
4,533 |
|
|
|
— |
|
|
|
36,030 |
|
Interest expense on junior
subordinated debentures
|
|
|
9,457 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,457 |
|
Investment income on trust
common securities
|
|
|
(284 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(284 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before equity
in subsidiaries’ income
|
|
|
(19,767 |
) |
|
|
19,753 |
|
|
|
2,076 |
|
|
|
521 |
|
|
|
— |
|
|
|
2,583 |
|
Equity in
subsidiaries’ income (loss)
|
|
|
22,229 |
|
|
|
2,476 |
|
|
|
— |
|
|
|
— |
|
|
|
(24,705 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes
|
|
|
2,462 |
|
|
|
22,229 |
|
|
|
2,076 |
|
|
|
521 |
|
|
|
(24,705 |
) |
|
|
2,583 |
|
Income tax provision
(benefit)
|
|
|
636 |
|
|
|
— |
|
|
|
(1,300 |
) |
|
|
1,421 |
|
|
|
— |
|
|
|
757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ |
1,826 |
|
|
$ |
22,229 |
|
|
$ |
3,376 |
|
|
$ |
(900 |
) |
|
$ |
(24,705 |
) |
|
$ |
1,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
— |
|
|
|
(2,100 |
) |
|
|
— |
|
|
|
(154 |
) |
|
|
— |
|
|
|
(2,254 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
(loss)
|
|
$ |
1,826 |
|
|
$ |
20,129 |
|
|
$ |
3,376 |
|
|
$ |
(1,054 |
) |
|
$ |
(24,705 |
) |
|
$ |
(428 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidating Statements of Comprehensive Income
(Unaudited)
For the nine
months ended September 30, 2012
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guarantors
The Hillman
Companies, Inc. |
|
|
Issuer
The Hillman
Group, Inc. |
|
|
Guarantor
Subsidiaries |
|
|
Non-
Guarantor
Subsidiaries |
|
|
Consol-
idating
Adjust-
ments |
|
|
Consolidated |
|
Net sales
|
|
$ |
— |
|
|
$ |
393,564 |
|
|
$ |
15,616 |
|
|
$ |
14,603 |
|
|
$ |
— |
|
|
$ |
423,783 |
|
Cost of sales (exclusive of
depreciation and amortization shown separately below)
|
|
|
— |
|
|
|
188,113 |
|
|
|
11,946 |
|
|
|
9,771 |
|
|
|
— |
|
|
|
209,830 |
|
Selling, general and
administrative expenses
|
|
|
305 |
|
|
|
134,372 |
|
|
|
2,755 |
|
|
|
5,474 |
|
|
|
— |
|
|
|
142,906 |
|
Acquisition and integration
expenses
|
|
|
— |
|
|
|
807 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
807 |
|
Depreciation
|
|
|
— |
|
|
|
16,321 |
|
|
|
70 |
|
|
|
61 |
|
|
|
— |
|
|
|
16,452 |
|
Amortization
|
|
|
13,544 |
|
|
|
2,526 |
|
|
|
— |
|
|
|
296 |
|
|
|
— |
|
|
|
16,366 |
|
Intercompany administrative
(income) expense
|
|
|
— |
|
|
|
(260 |
) |
|
|
— |
|
|
|
260 |
|
|
|
— |
|
|
|
— |
|
Management and transaction
fees to related party
|
|
|
— |
|
|
|
122 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
122 |
|
Other (income) expense,
net
|
|
|
(334 |
) |
|
|
757 |
|
|
|
(11 |
) |
|
|
(469 |
) |
|
|
— |
|
|
|
(57 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
(13,515 |
) |
|
|
50,806 |
|
|
|
856 |
|
|
|
(790 |
) |
|
|
— |
|
|
|
37,357 |
|
Intercompany interest
(income) expense
|
|
|
(9,174 |
) |
|
|
9,174 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest expense,
net
|
|
|
(235 |
) |
|
|
30,824 |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
|
|
30,593 |
|
Interest expense on junior
subordinated debentures
|
|
|
9,457 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,457 |
|
Investment income on trust
common securities
|
|
|
(284 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(284 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before equity
in subsidiaries’ income
|
|
|
(13,279 |
) |
|
|
10,808 |
|
|
|
856 |
|
|
|
(794 |
) |
|
|
— |
|
|
|
(2,409 |
) |
Equity in
subsidiaries’ income (loss)
|
|
|
9,381 |
|
|
|
(232 |
) |
|
|
— |
|
|
|
— |
|
|
|
(9,149 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes
|
|
|
(3,898 |
) |
|
|
10,576 |
|
|
|
856 |
|
|
|
(794 |
) |
|
|
(9,149 |
) |
|
|
(2,409 |
) |
Income tax provision
(benefit)
|
|
|
(3,474 |
) |
|
|
1,195 |
|
|
|
393 |
|
|
|
(99 |
) |
|
|
— |
|
|
|
(1,985 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ |
(424 |
) |
|
$ |
9,381 |
|
|
$ |
463 |
|
|
$ |
(695 |
) |
|
$ |
(9,149 |
) |
|
$ |
(424 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,186 |
|
|
|
— |
|
|
|
1,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
(loss)
|
|
$ |
(424 |
) |
|
$ |
9,381 |
|
|
$ |
463 |
|
|
$ |
491 |
|
|
$ |
(9,149 |
) |
|
$ |
762 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidating Balance Sheet (Unaudited)
As of
September 30, 2013
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guarantors
The
Hillman
Companies, Inc. |
|
|
Issuer
The Hillman
Group, Inc. |
|
|
Guarantor
Subsidiaries |
|
|
Non-
Guarantor
Subsidiaries |
|
|
Consol-
idating
Adjust-
ments |
|
|
Consolidated |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$ |
1 |
|
|
$ |
16,399 |
|
|
$ |
1,418 |
|
|
$ |
8,553 |
|
|
$ |
— |
|
|
$ |
26,371 |
|
Restricted
investments
|
|
|
2,889 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,889 |
|
Accounts receivable,
net
|
|
|
— |
|
|
|
87,925 |
|
|
|
932 |
|
|
|
17,149 |
|
|
|
— |
|
|
|
106,006 |
|
Inventories
|
|
|
— |
|
|
|
107,379 |
|
|
|
9,100 |
|
|
|
63,522 |
|
|
|
(354 |
) |
|
|
179,647 |
|
Deferred income
taxes
|
|
|
9,309 |
|
|
|
— |
|
|
|
1,196 |
|
|
|
1,325 |
|
|
|
(847 |
) |
|
|
10,983 |
|
Other current
assets
|
|
|
— |
|
|
|
7,817 |
|
|
|
188 |
|
|
|
2,447 |
|
|
|
— |
|
|
|
10,452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
|
12,199 |
|
|
|
219,520 |
|
|
|
12,834 |
|
|
|
92,996 |
|
|
|
(1,201 |
) |
|
|
336,348 |
|
Intercompany notes
receivable
|
|
|
105,446 |
|
|
|
101,942 |
|
|
|
— |
|
|
|
(101,942 |
) |
|
|
(105,446 |
) |
|
|
— |
|
Intercompany interest
receivable
|
|
|
9,174 |
|
|
|
4,526 |
|
|
|
— |
|
|
|
— |
|
|
|
(13,700 |
) |
|
|
— |
|
Investments in
subsidiaries
|
|
|
(652,522 |
) |
|
|
28,123 |
|
|
|
507 |
|
|
|
271,803 |
|
|
|
352,089 |
|
|
|
— |
|
Property and equipment,
net
|
|
|
— |
|
|
|
78,325 |
|
|
|
382 |
|
|
|
14,132 |
|
|
|
— |
|
|
|
92,839 |
|
Goodwill
|
|
|
418,947 |
|
|
|
24,512 |
|
|
|
3,090 |
|
|
|
21,100 |
|
|
|
280 |
|
|
|
467,929 |
|
Other intangibles,
net
|
|
|
298,288 |
|
|
|
43,731 |
|
|
|
250 |
|
|
|
26,108 |
|
|
|
— |
|
|
|
368,377 |
|
Restricted
investments
|
|
|
1,235 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,235 |
|
Deferred income
taxes
|
|
|
24,325 |
|
|
|
— |
|
|
|
668 |
|
|
|
(383 |
) |
|
|
(24,610 |
) |
|
|
— |
|
Deferred financing
fees
|
|
|
— |
|
|
|
10,563 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,563 |
|
Investment in trust common
securities
|
|
|
3,261 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,261 |
|
Other assets
|
|
|
— |
|
|
|
2,281 |
|
|
|
25 |
|
|
|
398 |
|
|
|
— |
|
|
|
2,704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ |
220,353 |
|
|
$ |
513,523 |
|
|
$ |
17,756 |
|
|
$ |
324,212 |
|
|
$ |
207,412 |
|
|
$ |
1,283,256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$ |
— |
|
|
$ |
31,117 |
|
|
$ |
1,544 |
|
|
$ |
15,756 |
|
|
$ |
— |
|
|
$ |
48,417 |
|
Current portion of senior
term loans
|
|
|
— |
|
|
|
3,968 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,968 |
|
Current portion of
capitalized lease and other obligations
|
|
|
— |
|
|
|
183 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
183 |
|
Interest payable on junior
subordinated debentures
|
|
|
1,019 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,019 |
|
Intercompany interest
payable
|
|
|
— |
|
|
|
9,174 |
|
|
|
— |
|
|
|
4,526 |
|
|
|
(13,700 |
) |
|
|
— |
|
Accrued
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
|
|
— |
|
|
|
6,215 |
|
|
|
163 |
|
|
|
1,863 |
|
|
|
— |
|
|
|
8,241 |
|
Pricing
allowances
|
|
|
— |
|
|
|
3,471 |
|
|
|
3 |
|
|
|
2,705 |
|
|
|
— |
|
|
|
6,179 |
|
Income and other
taxes
|
|
|
(476 |
) |
|
|
2,782 |
|
|
|
(569 |
) |
|
|
1,617 |
|
|
|
— |
|
|
|
3,354 |
|
Interest
|
|
|
— |
|
|
|
9,805 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,805 |
|
Deferred
compensation
|
|
|
2,889 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,889 |
|
Other accrued
expenses
|
|
|
— |
|
|
|
6,588 |
|
|
|
198 |
|
|
|
2,255 |
|
|
|
— |
|
|
|
9,041 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
3,432 |
|
|
|
73,303 |
|
|
|
1,339 |
|
|
|
28,722 |
|
|
|
(13,700 |
) |
|
|
93,096 |
|
Intercompany debt
payable
|
|
|
— |
|
|
|
105,446 |
|
|
|
— |
|
|
|
— |
|
|
|
(105,446 |
) |
|
|
— |
|
Long term senior term
loans
|
|
|
— |
|
|
|
379,404 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
379,404 |
|
Long term portion of
capitalized leases
|
|
|
— |
|
|
|
339 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
339 |
|
Long term senior
notes
|
|
|
— |
|
|
|
272,056 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
272,056 |
|
Junior subordinated
debentures
|
|
|
114,991 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
114,991 |
|
Deferred
compensation
|
|
|
1,235 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,235 |
|
Deferred income taxes,
net
|
|
|
139,986 |
|
|
|
— |
|
|
|
207 |
|
|
|
9,597 |
|
|
|
(25,457 |
) |
|
|
124,333 |
|
Other non-current
liabilities
|
|
|
7,079 |
|
|
|
5,632 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
266,723 |
|
|
|
836,180 |
|
|
|
1,546 |
|
|
|
38,319 |
|
|
|
(144,603 |
) |
|
|
998,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock with put
options:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $.01 par,
5,000 shares authorized, 210.5 issued and outstanding at
September 30, 2013
|
|
|
20,686 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20,686 |
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, $.01 par,
5,000 shares authorized, none issued and outstanding at
September 30, 2013
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Common Stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $.01 par,
5,000 shares authorized, 4,789.5 issued and outstanding at
September 30, 2013
|
|
|
— |
|
|
|
— |
|
|
|
50 |
|
|
|
— |
|
|
|
(50 |
) |
|
|
— |
|
Additional paid-in
capital
|
|
|
112,508 |
|
|
|
(130,734 |
) |
|
|
11,711 |
|
|
|
293,717 |
|
|
|
1,811 |
|
|
|
289,013 |
|
Accumulated
deficit
|
|
|
(179,564 |
) |
|
|
(189,823 |
) |
|
|
4,449 |
|
|
|
(3,358 |
) |
|
|
345,071 |
|
|
|
(23,225 |
) |
Accumulated other
comprehensive (loss) income
|
|
|
— |
|
|
|
(2,100 |
) |
|
|
— |
|
|
|
(4,466 |
) |
|
|
5,183 |
|
|
|
(1,383 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’
equity
|
|
|
(67,056 |
) |
|
|
(322,657 |
) |
|
|
16,210 |
|
|
|
285,893 |
|
|
|
352,015 |
|
|
|
264,405 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders’ equity
|
|
$ |
220,353 |
|
|
$ |
513,523 |
|
|
$ |
17,756 |
|
|
$ |
324,212 |
|
|
$ |
207,412 |
|
|
$ |
1,283,256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidating Balance Sheet (Unaudited)
As of
December 31, 2012
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guarantors
The
Hillman
Companies, Inc. |
|
|
Issuer
The Hillman
Group, Inc. |
|
|
Guarantor
Subsidiaries |
|
|
Non-
Guarantor
Subsidiaries |
|
|
Consol-
idating
Adjust-
ments |
|
|
Consolidated |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$ |
1 |
|
|
$ |
62,917 |
|
|
$ |
429 |
|
|
$ |
2,201 |
|
|
$ |
— |
|
|
$ |
65,548 |
|
Restricted
investments
|
|
|
846 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
846 |
|
Accounts receivable,
net
|
|
|
— |
|
|
|
65,916 |
|
|
|
6,473 |
|
|
|
(10,045 |
) |
|
|
— |
|
|
|
62,344 |
|
Inventories
|
|
|
— |
|
|
|
105,028 |
|
|
|
4,678 |
|
|
|
4,404 |
|
|
|
(272 |
) |
|
|
113,838 |
|
Deferred income
taxes
|
|
|
10,359 |
|
|
|
— |
|
|
|
610 |
|
|
|
221 |
|
|
|
(726 |
) |
|
|
10,464 |
|
Other current
assets
|
|
|
— |
|
|
|
6,526 |
|
|
|
145 |
|
|
|
1,835 |
|
|
|
— |
|
|
|
8,506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
|
11,206 |
|
|
|
240,387 |
|
|
|
12,335 |
|
|
|
(1,384 |
) |
|
|
(998 |
) |
|
|
261,546 |
|
Intercompany notes
receivable
|
|
|
105,446 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(105,446 |
) |
|
|
— |
|
Investments in
subsidiaries
|
|
|
(637,376 |
) |
|
|
27,204 |
|
|
|
— |
|
|
|
— |
|
|
|
610,172 |
|
|
|
— |
|
Property and equipment,
net
|
|
|
— |
|
|
|
67,902 |
|
|
|
191 |
|
|
|
399 |
|
|
|
— |
|
|
|
68,492 |
|
Goodwill
|
|
|
418,946 |
|
|
|
24,512 |
|
|
|
58 |
|
|
|
11,542 |
|
|
|
280 |
|
|
|
455,338 |
|
Other intangibles,
net
|
|
|
311,832 |
|
|
|
46,047 |
|
|
|
250 |
|
|
|
8,515 |
|
|
|
— |
|
|
|
366,644 |
|
Restricted
investments
|
|
|
3,399 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,399 |
|
Deferred income
taxes
|
|
|
29,492 |
|
|
|
— |
|
|
|
(411 |
) |
|
|
977 |
|
|
|
(30,058 |
) |
|
|
— |
|
Deferred financing
fees
|
|
|
— |
|
|
|
12,858 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,858 |
|
Investment in trust common
securities
|
|
|
3,261 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,261 |
|
Other assets
|
|
|
— |
|
|
|
3,521 |
|
|
|
25 |
|
|
|
709 |
|
|
|
— |
|
|
|
4,255 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ |
246,206 |
|
|
$ |
422,431 |
|
|
$ |
12,448 |
|
|
$ |
20,758 |
|
|
$ |
473,950 |
|
|
$ |
1,175,793 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$ |
— |
|
|
$ |
31,873 |
|
|
$ |
517 |
|
|
$ |
181 |
|
|
$ |
— |
|
|
$ |
32,571 |
|
Current portion of senior
term loans
|
|
|
— |
|
|
|
3,200 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,200 |
|
Current portion of
capitalized lease and other obligations
|
|
|
— |
|
|
|
819 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
819 |
|
Additional acquisition
consideration
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Accrued
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
|
|
— |
|
|
|
8,930 |
|
|
|
217 |
|
|
|
204 |
|
|
|
— |
|
|
|
9,351 |
|
Pricing
allowances
|
|
|
— |
|
|
|
3,457 |
|
|
|
3 |
|
|
|
597 |
|
|
|
— |
|
|
|
4,057 |
|
Income and other
taxes
|
|
|
(625 |
) |
|
|
2,447 |
|
|
|
25 |
|
|
|
645 |
|
|
|
— |
|
|
|
2,492 |
|
Interest
|
|
|
— |
|
|
|
2,868 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,868 |
|
Deferred
compensation
|
|
|
846 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
846 |
|
Other accrued
expenses
|
|
|
— |
|
|
|
9,822 |
|
|
|
40 |
|
|
|
1,535 |
|
|
|
— |
|
|
|
11,397 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
221 |
|
|
|
63,416 |
|
|
|
802 |
|
|
|
3,162 |
|
|
|
— |
|
|
|
67,601 |
|
Intercompany debt
payable
|
|
|
— |
|
|
|
105,446 |
|
|
|
— |
|
|
|
— |
|
|
|
(105,446 |
) |
|
|
— |
|
Long term senior term
loans
|
|
|
— |
|
|
|
307,727 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
307,727 |
|
Long term portion of
capitalized lease and other obligations
|
|
|
— |
|
|
|
245 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
245 |
|
Long term senior
notes
|
|
|
— |
|
|
|
272,942 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
272,942 |
|
Junior subordinated
debentures
|
|
|
115,132 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
115,132 |
|
Deferred
compensation
|
|
|
3,399 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,399 |
|
Deferred income taxes,
net
|
|
|
146,042 |
|
|
|
— |
|
|
|
219 |
|
|
|
2,472 |
|
|
|
(30,784 |
) |
|
|
117,949 |
|
Other non-current
liabilities
|
|
|
714 |
|
|
|
5,473 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
265,508 |
|
|
|
755,249 |
|
|
|
1,021 |
|
|
|
5,634 |
|
|
|
(136,230 |
) |
|
|
891,182 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock with put
options:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $.01 par,
5,000 shares authorized, 198.3 issued and outstanding at
December 31, 2012
|
|
|
14,116 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,116 |
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, $.01 par,
5,000 shares authorized, none issued and outstanding at
December 31, 2012
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Common Stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $.01 par,
5,000 shares authorized, 4,801.7 issued and outstanding at
December 31, 2012
|
|
|
— |
|
|
|
— |
|
|
|
50 |
|
|
|
— |
|
|
|
(50 |
) |
|
|
— |
|
Additional paid-in
capital
|
|
|
117,261 |
|
|
|
(131,642 |
) |
|
|
10,304 |
|
|
|
17,192 |
|
|
|
281,560 |
|
|
|
294,675 |
|
Accumulated
deficit
|
|
|
(150,679 |
) |
|
|
(201,176 |
) |
|
|
1,073 |
|
|
|
(2,458 |
) |
|
|
328,189 |
|
|
|
(25,051 |
) |
Accumulated other
comprehensive income
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
390 |
|
|
|
481 |
|
|
|
871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’
equity
|
|
|
(33,418 |
) |
|
|
(332,818 |
) |
|
|
11,427 |
|
|
|
15,124 |
|
|
|
610,180 |
|
|
|
270,495 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders’ equity
|
|
$ |
246,206 |
|
|
$ |
422,431 |
|
|
$ |
12,448 |
|
|
$ |
20,758 |
|
|
$ |
473,950 |
|
|
$ |
1,175,793 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidating Statement of Cash Flows (Unaudited)
For the nine
months ended September 30, 2013
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guarantors
The Hillman
Companies, Inc. |
|
|
Issuer
The
Hillman
Group, Inc. |
|
|
Guarantor
Subsidiaries |
|
|
Non-
Guarantor
Subsidiaries |
|
|
Consol-
idating
Adjust-
ments |
|
|
Consolidated |
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ |
(20,403 |
) |
|
$ |
19,753 |
|
|
$ |
3,376 |
|
|
$ |
(900 |
) |
|
$ |
— |
|
|
$ |
1,826 |
|
Adjustments to reconcile
net income (loss) to net cash provided by (used for) operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
13,544 |
|
|
|
18,724 |
|
|
|
56 |
|
|
|
1,809 |
|
|
|
— |
|
|
|
34,133 |
|
Dispositions of property
and equipment
|
|
|
— |
|
|
|
76 |
|
|
|
13 |
|
|
|
12 |
|
|
|
— |
|
|
|
101 |
|
Deferred income tax
provision (benefit)
|
|
|
161 |
|
|
|
— |
|
|
|
(1,677 |
) |
|
|
1,910 |
|
|
|
— |
|
|
|
394 |
|
Deferred financing and
original issue discount amortization
|
|
|
(141 |
) |
|
|
1,995 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,854 |
|
Stock-based compensation
expense
|
|
|
6,365 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,365 |
|
Other non-cash interest
expense
|
|
|
— |
|
|
|
(391 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(391 |
) |
Changes in operating
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
— |
|
|
|
(18,307 |
) |
|
|
(3,067 |
) |
|
|
(5,029 |
) |
|
|
— |
|
|
|
(26,403 |
) |
Inventories
|
|
|
— |
|
|
|
(2,269 |
) |
|
|
(4,422 |
) |
|
|
(4,067 |
) |
|
|
— |
|
|
|
(10,758 |
) |
Other assets
|
|
|
— |
|
|
|
(3,753 |
) |
|
|
8,565 |
|
|
|
(2,551 |
) |
|
|
— |
|
|
|
2,261 |
|
Accounts payable
|
|
|
— |
|
|
|
(756 |
) |
|
|
1,027 |
|
|
|
2,771 |
|
|
|
— |
|
|
|
3,042 |
|
Interest payable on junior
subordinated debentures
|
|
|
1,019 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,019 |
|
Other accrued
liabilities
|
|
|
149 |
|
|
|
10,928 |
|
|
|
(490 |
) |
|
|
9,985 |
|
|
|
(13,700 |
) |
|
|
6,872 |
|
Other items, net
|
|
|
(678 |
) |
|
|
(13,384 |
) |
|
|
(2,286 |
) |
|
|
2,570 |
|
|
|
13,684 |
|
|
|
(94 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used
for) operating activities
|
|
|
16 |
|
|
|
12,616 |
|
|
|
1,095 |
|
|
|
6,510 |
|
|
|
(16 |
) |
|
|
20,221 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paulin
acquisition
|
|
|
— |
|
|
|
(103,416 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(103,416 |
) |
Capital
expenditures
|
|
|
— |
|
|
|
(26,826 |
) |
|
|
(106 |
) |
|
|
(158 |
) |
|
|
— |
|
|
|
(27,090 |
) |
Other, net
|
|
|
(16 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used
for) investing activities
|
|
|
(16 |
) |
|
|
(130,242 |
) |
|
|
(106 |
) |
|
|
(158 |
) |
|
|
16 |
|
|
|
(130,506 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings of senior term
loans
|
|
|
— |
|
|
|
76,800 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
76,800 |
|
Repayments of senior term
loans
|
|
|
— |
|
|
|
(2,784 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,784 |
) |
Discount on senior term
loans
|
|
|
— |
|
|
|
(2,152 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,152 |
) |
Principal payments under
capitalized lease obligations
|
|
|
— |
|
|
|
(73 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(73 |
) |
Repayment of other credit
obligations
|
|
|
— |
|
|
|
(683 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(683 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
financing activities
|
|
|
— |
|
|
|
71,108 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
71,108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in
cash and cash equivalents
|
|
|
— |
|
|
|
(46,518 |
) |
|
|
989 |
|
|
|
6,352 |
|
|
|
— |
|
|
|
(39,177 |
) |
Cash and cash equivalents
at beginning of period
|
|
|
1 |
|
|
|
62,917 |
|
|
|
429 |
|
|
|
2,201 |
|
|
|
— |
|
|
|
65,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
at end of period
|
|
$ |
1 |
|
|
$ |
16,399 |
|
|
$ |
1,418 |
|
|
$ |
8,553 |
|
|
$ |
— |
|
|
$ |
26,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidating Statement of Cash Flows (Unaudited)
For the nine
months ended September 30, 2012
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guarantors
The Hillman
Companies, Inc. |
|
|
Issuer
The Hillman
Group, Inc. |
|
|
Guarantor
Subsidiaries |
|
|
Non-
Guarantor
Subsidiaries |
|
|
Consol-
idating
Adjust-
ments |
|
|
Consolidated |
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ |
(9,805 |
) |
|
$ |
9,615 |
|
|
$ |
463 |
|
|
$ |
(695 |
) |
|
$ |
(2 |
) |
|
$ |
(424 |
) |
Adjustments to reconcile
net income (loss) to net cash (used for) provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
13,544 |
|
|
|
18,847 |
|
|
|
70 |
|
|
|
357 |
|
|
|
— |
|
|
|
32,818 |
|
Dispositions of property
and equipment
|
|
|
— |
|
|
|
270 |
|
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
274 |
|
Deferred income tax
provision (benefit)
|
|
|
(2,790 |
) |
|
|
(72 |
) |
|
|
346 |
|
|
|
(89 |
) |
|
|
— |
|
|
|
(2,605 |
) |
Deferred financing and
original issue discount amortization
|
|
|
(235 |
) |
|
|
1,851 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,616 |
|
Other non-cash interest and
change in value of interest rate swap
|
|
|
— |
|
|
|
(578 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(578 |
) |
Changes in operating
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
— |
|
|
|
(11,712 |
) |
|
|
(905 |
) |
|
|
(783 |
) |
|
|
— |
|
|
|
(13,400 |
) |
Inventories
|
|
|
— |
|
|
|
(14,531 |
) |
|
|
523 |
|
|
|
(1,321 |
) |
|
|
2 |
|
|
|
(15,327 |
) |
Other assets
|
|
|
— |
|
|
|
(4,791 |
) |
|
|
46 |
|
|
|
2,490 |
|
|
|
— |
|
|
|
(2,255 |
) |
Accounts payable
|
|
|
— |
|
|
|
2,596 |
|
|
|
(104 |
) |
|
|
(323 |
) |
|
|
— |
|
|
|
2,169 |
|
Interest payable on junior
subordinated debentures
|
|
|
1,019 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,019 |
|
Other accrued
liabilities
|
|
|
194 |
|
|
|
20,099 |
|
|
|
102 |
|
|
|
295 |
|
|
|
(9,175 |
) |
|
|
11,515 |
|
Other items, net
|
|
|
(1,927 |
) |
|
|
(8,673 |
) |
|
|
18 |
|
|
|
(153 |
) |
|
|
9,175 |
|
|
|
(1,560 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used
for) operating activities
|
|
|
— |
|
|
|
12,921 |
|
|
|
563 |
|
|
|
(222 |
) |
|
|
— |
|
|
|
13,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from sale of
property and equipment
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
Capital
expenditures
|
|
|
— |
|
|
|
(17,063 |
) |
|
|
(124 |
) |
|
|
(138 |
) |
|
|
— |
|
|
|
(17,325 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used for investing
activities
|
|
|
— |
|
|
|
(17,063 |
) |
|
|
(121 |
) |
|
|
(138 |
) |
|
|
— |
|
|
|
(17,322 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayments of senior term
loans
|
|
|
— |
|
|
|
(2,400 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,400 |
) |
Borrowings of revolving
credit loans
|
|
|
— |
|
|
|
19,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19,000 |
|
Repayments of revolving
credit loans
|
|
|
— |
|
|
|
(7,000 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7,000 |
) |
Payments of additional
acquisition consideration
|
|
|
— |
|
|
|
(12,387 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,387 |
) |
Principal payments under
capitalized lease obligations
|
|
|
— |
|
|
|
(30 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(30 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used for financing
activities
|
|
|
— |
|
|
|
(2,817 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,817 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in
cash and cash equivalents
|
|
|
— |
|
|
|
(6,959 |
) |
|
|
442 |
|
|
|
(360 |
) |
|
|
— |
|
|
|
(6,877 |
) |
Cash and cash equivalents
at beginning of period
|
|
|
1 |
|
|
|
8,852 |
|
|
|
547 |
|
|
|
2,627 |
|
|
|
— |
|
|
|
12,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
at end of period
|
|
$ |
1 |
|
|
$ |
1,893 |
|
|
$ |
989 |
|
|
$ |
2,267 |
|
|
$ |
— |
|
|
$ |
5,150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|