Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2015

Sep. 30, 2014

Condensed Income Statements, Captions [Line Items]

Condensed Consolidating Balance Sheet

	LMIA(Guarantor Parent)		Guarantor Subsidiaries		Consolidating/Eliminating Entries			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—	$	476	$	—		$	476
Trade accounts receivable, net	2,063		59,326		—			61,389
Intercompany receivables	178,197		156,183		(334,380		)	—
Inventories	—		118,877		—			118,877
Prepaid expenses and other current assets	8,342		2,488		—			10,830
Deferred income taxes	—		3,924		(149		)	3,775
Total current assets	188,602		341,274		(334,529		)	195,347
Property, plant and equipment, net	3,818		97,284		—			101,102
Investments in subsidiaries	378,500		—		(378,500		)	—
Goodwill	—		86,784		—			86,784
Intangible assets, net	—		47,671		—			47,671
Deferred income taxes	149		—		(149		)	—
Other assets	7,346		1,625		—			8,971
Total assets	$	578,415	$	574,638	$	(713,178	)	$	439,875
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	$	465	$	17,496	$	—		$	17,961
Accrued expenses	11,626		13,008		—			24,634
Intercompany Payables	197,753		136,627		(334,380		)	$	—
Deferred income taxes	149		—		(149		)	—
Current installments of long-term debt and capital lease obligations	148		3,409		—			3,557
Total current liabilities	210,141		170,540		(334,529		)	46,152
Long-term debt and capital lease obligations, less current installments	249,110		18,497		—			267,607
Other long-term liabilities	304		2,797		—			3,101
Deferred income taxes	—		4,304		(149		)	4,155
Total long-term liabilities	249,414		25,598		(149		)	274,863
Total shareholders’ equity	118,860		378,500		(378,500		)	118,860
Total liabilities and shareholders’ equity	$	578,415	$	574,638	$	(713,178	)	$	439,875

CONDENSED CONSOLIDATING BALANCE SHEET

as of December 31, 2014

	LMIA(Guarantor Parent)		Guarantor Subsidiaries		Consolidating/Eliminating Entries			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	7,058	$	869	$	—		$	7,927
Trade accounts receivable, net	1,310		56,924		—			58,234
Intercompany receivables	145,980		145,223		(291,203		)	$	—
Inventories	—		114,279		—			114,279
Prepaid expenses and other current assets	8,325		1,930		—			10,255
Deferred income taxes	—		4,031		(118		)	3,913
Total current assets	162,673		323,256		(291,321		)	194,608
Property, plant and equipment, net	3,148		96,334		—			99,482
Investments in subsidiaries	368,587		—		(368,587		)	—
Goodwill	—		86,784		—			86,784
Intangible assets, net	—		50,940		—			50,940
Deferred income taxes	118		—		(118		)	—
Other assets	8,743		1,879		—			10,622
Total assets	$	543,269	$	559,193	$	(660,026	)	$	442,436
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	$	1,339	$	20,416	$	—		$	21,755
Accrued expenses	13,679		12,393		—			26,072
Intercompany Payables	164,158		127,045		(291,203		)	$	—
Deferred income taxes	118		—		(118		)	—
Current installments of long-term debt and capital lease obligations	335		3,089		—			3,424
Total current liabilities	179,629		162,943		(291,321		)	51,251
Long-term debt and capital lease obligations, less current installments	245,174		20,380		—			265,554
Other long-term liabilities	331		2,958		—			3,289
Deferred income taxes	—		4,325		(118		)	4,207
Total long-term liabilities	245,505		27,663		(118		)	273,050
Total shareholders’ equity	118,135		368,587		(368,587		)	118,135
Total liabilities and shareholders’ equity	$	543,269	$	559,193	$	(660,026	)	$	442,436

	LMIA(Guarantor Parent)		Guarantor Subsidiaries		Consolidating/Eliminating Entries			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—	$	476	$	—		$	476
Trade accounts receivable, net	2,063		59,326		—			61,389
Intercompany receivables	178,197		156,183		(334,380		)	—
Inventories	—		118,877		—			118,877
Prepaid expenses and other current assets	8,342		2,488		—			10,830
Deferred income taxes	—		3,924		(149		)	3,775
Total current assets	188,602		341,274		(334,529		)	195,347
Property, plant and equipment, net	3,818		97,284		—			101,102
Investments in subsidiaries	378,500		—		(378,500		)	—
Goodwill	—		86,784		—			86,784
Intangible assets, net	—		47,671		—			47,671
Deferred income taxes	149		—		(149		)	—
Other assets	7,346		1,625		—			8,971
Total assets	$	578,415	$	574,638	$	(713,178	)	$	439,875
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	$	465	$	17,496	$	—		$	17,961
Accrued expenses	11,626		13,008		—			24,634
Intercompany Payables	197,753		136,627		(334,380		)	$	—
Deferred income taxes	149		—		(149		)	—
Current installments of long-term debt and capital lease obligations	148		3,409		—			3,557
Total current liabilities	210,141		170,540		(334,529		)	46,152
Long-term debt and capital lease obligations, less current installments	249,110		18,497		—			267,607
Other long-term liabilities	304		2,797		—			3,101
Deferred income taxes	—		4,304		(149		)	4,155
Total long-term liabilities	249,414		25,598		(149		)	274,863
Total shareholders’ equity	118,860		378,500		(378,500		)	118,860
Total liabilities and shareholders’ equity	$	578,415	$	574,638	$	(713,178	)	$	439,875

Condensed Consolidating Statements of Comprehensive Income (Loss)

	LMIA(Guarantor Parent)			Guarantor Subsidiaries			Consolidating/Eliminating Entries			Consolidated
Sales and service revenue
Product sales	$	207		$	246,699		$	(176	)	$	246,730
Service revenues	26,729			38,942			(26,743		)	38,928
Net sales	26,936			285,641			(26,919		)	285,658
Cost of sales and service revenue
Cost of product sales	214			197,173			(176		)	197,211
Cost of service revenues	27,440			35,155			(26,742		)	35,853
Cost of sales	27,654			232,328			(26,918		)	233,064
Gross profit	(718		)	53,313			(1		)	52,594
Selling, general and administrative expenses	—			33,980			—			33,980
Restructuring expense	318			2,050			—			2,368
Acquisitions expense	—			—			—			—
(Loss) income from operations	(1,036		)	17,283			(1		)	16,246
Other income (expense):
Interest expense	(16,029		)	(773		)	—			(16,802		)
Other, net	(1		)	(88		)	—			(89		)
Income (loss) from equity investments in subsidiaries	9,914			—			(9,914		)	—
Total other expense	(6,116		)	(861		)	(9,914		)	(16,891		)
(Loss) income before income taxes	(7,152		)	16,422			(9,915		)	(645		)
(Benefit) provision for income taxes	(6,069		)	6,477			—			408
Net (loss) income	(1,083		)	9,945			(9,915		)	(1,053		)
Other comprehensive income (loss):
Change in foreign currency translation adjustment	—			(31		)	—			(31		)
Total comprehensive (loss) income	$	(1,083	)	$	9,914		$	(9,915	)	$	(1,084	)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended September 30, 2015

	LMIA(Guarantor Parent)			Guarantor Subsidiaries			Consolidating/Eliminating Entries			Consolidated
Sales and service revenue
Product sales	$	4		$	84,099		$	11		$	84,114
Service revenues	7,640			11,545			(7,666		)	11,519
Net sales	7,644			95,644			(7,655		)	95,633
Cost of sales and service revenue
Cost of product sales	27			67,476			11			67,514
Cost of service revenues	7,991			11,166			(7,664		)	11,493
Cost of sales	8,018			78,642			(7,653		)	79,007
Gross profit	(374		)	17,002			(2		)	16,626
Selling, general and administrative expenses				8,979						8,979
Restructuring expense	—			1,575			—			1,575
(Loss) income from operations	(374		)	6,448			(2		)	6,072
Other income (expense):
Interest expense	(5,389		)	(264		)	—			(5,653		)
Other, net	(1		)	(135		)	—			(136		)
Income (loss) from equity investments in subsidiaries	3,541			—			(3,541		)	—
Total other expense	(1,849		)	(399		)	(3,541		)	(5,789		)
(Loss) income before income taxes	(2,223		)	6,049			(3,543		)	283
(Benefit) provision for income taxes	(2,227		)	2,476			—			249
Net (loss) income	4			3,573			(3,543		)	34
Other comprehensive income (loss):
Change in foreign currency translation adjustment	—			(32		)	—			(32		)
Total comprehensive (loss) income	$	4		$	3,541		$	(3,543	)	$	2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Three Months Ended September 30, 2014

	LMIA(Guarantor Parent)			Guarantor Subsidiaries			Consolidating/Eliminating Entries			Consolidated
Sales and service revenue
Product sales	$	(68	)	$	81,724		$	37		$	81,693
Service revenues	9,172			15,620			(9,150		)	15,642
Net sales	9,104			97,344			(9,113		)	97,335
Cost of sales and service revenue
Cost of product sales	40			61,458			37			61,535
Cost of service revenues	9,106			13,803			(9,152		)	13,757
Cost of sales	9,146			75,261			(9,115		)	75,292
Gross profit	(42		)	22,083			2			22,043
Selling, general and administrative expenses	421			14,194			—			14,615
Restructuring expense	533			232			—			765
(Loss) income from operations	(996		)	7,657			2			6,663
Other income (expense):
Interest expense	(5,662		)	(284		)	—			(5,946		)
Other, net	11			(86		)	—			(75		)
Income (loss) from equity investments in subsidiaries	4,874			—			(4,874		)	—
Total other expense	(777		)	(370		)	(4,874		)	(6,021		)
(Loss) income before income taxes	(1,773		)	7,287			(4,872		)	642
(Benefit) provision for income taxes	(3,054		)	2,300			—			(754		)
Net (loss) income	1,281			4,987			(4,872		)	1,396
Other comprehensive income (loss):
Change in foreign currency translation adjustment	—			(112		)	—			(112		)
Reclassification adjustment for losses on interest rate hedges included in net earnings	—			—			—			—
Total comprehensive (loss) income	$	1,281		$	4,875		$	(4,872	)	$	1,284

	LMIA(Guarantor Parent)			Guarantor Subsidiaries			Consolidating/Eliminating Entries			Consolidated
Sales and service revenue
Product sales	$	4		$	84,099		$	11		$	84,114
Service revenues	7,640			11,545			(7,666		)	11,519
Net sales	7,644			95,644			(7,655		)	95,633
Cost of sales and service revenue
Cost of product sales	27			67,476			11			67,514
Cost of service revenues	7,991			11,166			(7,664		)	11,493
Cost of sales	8,018			78,642			(7,653		)	79,007
Gross profit	(374		)	17,002			(2		)	16,626
Selling, general and administrative expenses				8,979						8,979
Restructuring expense	—			1,575			—			1,575
(Loss) income from operations	(374		)	6,448			(2		)	6,072
Other income (expense):
Interest expense	(5,389		)	(264		)	—			(5,653		)
Other, net	(1		)	(135		)	—			(136		)
Income (loss) from equity investments in subsidiaries	3,541			—			(3,541		)	—
Total other expense	(1,849		)	(399		)	(3,541		)	(5,789		)
(Loss) income before income taxes	(2,223		)	6,049			(3,543		)	283
(Benefit) provision for income taxes	(2,227		)	2,476			—			249
Net (loss) income	4			3,573			(3,543		)	34
Other comprehensive income (loss):
Change in foreign currency translation adjustment	—			(32		)	—			(32		)
Total comprehensive (loss) income	$	4		$	3,541		$	(3,543	)	$	2

	LMIA(Guarantor Parent)			Guarantor Subsidiaries			Consolidating/Eliminating Entries			Consolidated
Sales and service revenue
Product sales	$	617		$	245,327		$	(595	)	$	245,349
Service revenues	28,474			53,688			(28,488		)	53,674
Net sales	29,091			299,015			(29,083		)	299,023
Cost of sales and service revenue
Cost of product sales	699			195,066			(595		)	195,170
Cost of service revenues	28,330			45,372			(28,487		)	45,215
Cost of sales	29,029			240,438			(29,082		)	240,385
Gross profit	62			58,577			(1		)	58,638
Selling, general and administrative expenses	421			41,349			—			41,770
Restructuring expense	967			1,321			—			2,288
(Loss) income from operations	(1,326		)	15,907			(1		)	14,580
Other income (expense):
Interest expense	(22,972		)	(828		)	—			(23,800		)
Other, net	81			124			—			205
Income (loss) from equity investments in subsidiaries	9,571			—			(9,571		)	—
Total other expense	(13,320		)	(704		)	(9,571		)	(23,595		)
(Loss) income before income taxes	(14,646		)	15,203			(9,572		)	(9,015		)
(Benefit) provision for income taxes	(8,171		)	5,614			—			(2,557		)
Net (loss) income	(6,475		)	9,589			(9,572		)	(6,458		)
Other comprehensive income (loss):
Change in foreign currency translation adjustment	—			(18		)	—			(18		)
Reclassification adjustment for losses on interest rate hedges included in net earnings	278			—			—			278
Total comprehensive (loss) income	$	(6,197	)	$	9,571		$	(9,572	)	$	(6,198	)

Condensed Consolidating Cash Flow Statement

	LMIA(Guarantor Parent)			Guarantor Subsidiaries			Consolidating/Eliminating Entries			Consolidated
Operating activities:
Net (loss)/income	$	(1,083	)	$	9,945		$	(9,915	)	$	(1,053	)
Adjustments for non-cash items	(7,572		)	13,927			9,915			16,270
Net changes in operating assets and liabilities, net of acquired businesses	(1,616		)	(7,884		)	—			(9,500		)
Intercompany activity	1,379			(1,379		)	—			—
Net cash (used)/provided by operating activities	(8,892		)	14,609			—			5,717
Investing activities:
Additions to property, plant and equipment	(1,606		)	(13,699		)	—			(15,305		)
Proceeds from sale of equipment	—			260			—			260
Net cash used by investing activities	(1,606		)	(13,439		)	—			(15,045		)
Financing activities:
Principal payments on long-term debt and notes payable	(251		)	(1,563		)	—			(1,814		)
Advances on revolving line of credit	93,500			—			—			93,500
Payments on revolving line of credit	(89,500		)	—			—			(89,500		)
Payments for debt issuance cost	(309		)	—			—			(309		)
Net cash provided (used) by financing activities	3,440			(1,563		)	—			1,877
Net (decrease) increase in cash and cash equivalents	(7,058		)	(393		)	—			(7,451		)
Cash and cash equivalents, beginning of period	7,058			869			—			7,927
Cash and cash equivalents, end of period	$	—		$	476		$	—		$	476

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

For the Nine Months Ended September 30, 2015

	LMIA(Guarantor Parent)			Guarantor Subsidiaries			Consolidating/Eliminating Entries			Consolidated
Operating activities:
Net (loss)/income	$	(1,083	)	$	9,945		$	(9,915	)	$	(1,053	)
Adjustments for non-cash items	(7,572		)	13,927			9,915			16,270
Net changes in operating assets and liabilities, net of acquired businesses	(1,616		)	(7,884		)	—			(9,500		)
Intercompany activity	1,379			(1,379		)	—			—
Net cash (used)/provided by operating activities	(8,892		)	14,609			—			5,717
Investing activities:
Additions to property, plant and equipment	(1,606		)	(13,699		)	—			(15,305		)
Proceeds from sale of equipment	—			260			—			260
Net cash used by investing activities	(1,606		)	(13,439		)	—			(15,045		)
Financing activities:
Principal payments on long-term debt and notes payable	(251		)	(1,563		)	—			(1,814		)
Advances on revolving line of credit	93,500			—			—			93,500
Payments on revolving line of credit	(89,500		)	—			—			(89,500		)
Payments for debt issuance cost	(309		)	—			—			(309		)
Net cash provided (used) by financing activities	3,440			(1,563		)	—			1,877
Net (decrease) increase in cash and cash equivalents	(7,058		)	(393		)	—			(7,451		)
Cash and cash equivalents, beginning of period	7,058			869			—			7,927
Cash and cash equivalents, end of period	$	—		$	476		$	—		$	476

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

For the Nine Months Ended September 30, 2014

	LMIA(Guarantor Parent)			Guarantor Subsidiaries			Consolidating/Eliminating Entries			Consolidated
Operating activities:
Net (loss)/income	$	(6,475	)	$	9,589		$	(9,572	)	$	(6,458	)
Adjustments for non-cash items	2,195			14,408			9,572			26,175
Net changes in operating assets and liabilities, net of acquired businesses	21,296			(4,997		)	—			16,299
Intercompany activity	6,794			(6,794		)	—			—
Net cash (used)/provided by operating activities	23,810			12,206			—			36,016
Investing activities:
Additions to property, plant and equipment	(704		)	(9,598		)	—			(10,302		)
Acquisitions, net of cash acquired	—			—			—			—
Proceeds from sale of equipment	4			977			—			981
Net cash used by investing activities	(700		)	(8,621		)	—			(9,321		)
Financing activities:
Proceeds from issuance of debt	250,000			—			—			250,000
Principal payments on long-term debt and notes payable	(228,180		)	(3,718		)	—			(231,898		)
Advances on revolving line of credit	60,000			—			—			60,000
Payments on revolving line of credit	(96,000		)	—			—			(96,000		)
Payments for debt issuance cost	(7,881		)	—			—			(7,881		)
Other, net	(28		)	—			—			(28		)
Net cash provided (used) by financing activities	(22,089		)	(3,718		)	—			(25,807		)
Net (decrease) increase in cash and cash equivalents	1,021			(133		)	—			888
Cash and cash equivalents, beginning of period	405			1,167			—			1,572
Cash and cash equivalents, end of period	$	1,426		$	1,034		$	—		$	2,460