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Subsidiary Guarantors
9 Months Ended
Sep. 29, 2012
Subsidiary Guarantors [Abstract]  
Subsidiary Guarantors
Subsidiary Guarantors
The Company’s payment obligations under its 9.125% notes are fully and unconditionally guaranteed, jointly and severally, on a senior basis, by its domestic 100% owned subsidiaries, Gentek Holdings, LLC and Gentek Building Products, Inc. AMH New Finance, Inc. is a co-issuer of the 9.125% notes and is a domestic 100% owned subsidiary of the Company having no operations, revenues or cash flows for the periods presented.
Associated Materials Canada Limited, Gentek Canada Holdings Limited and Gentek Buildings Products Limited Partnership are Canadian companies and do not guarantee the Company’s 9.125% notes. In the opinion of management, separate financial statements of the respective Subsidiary Guarantors would not provide additional material information that would be useful in assessing the financial composition of the Subsidiary Guarantors.
ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET
September 29, 2012
(In thousands)


 
Company
 
Co-Issuer
 
Subsidiary
Guarantors
 
Non-Guarantor
Subsidiaries
 
Reclassification/
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
8,735

 
$

 
$

 
$
924

 
$

 
$
9,659

Accounts receivable, net
108,343

 

 
14,511

 
36,728

 

 
159,582

Intercompany receivables
357,806

 

 

 
4,159

 
(361,965
)
 

Inventories
104,848

 

 
13,215

 
34,042

 

 
152,105

Income taxes receivable
1,451

 

 

 
823

 
(1,451
)
 
823

Deferred income taxes
6,174

 

 
1,840

 

 

 
8,014

Prepaid expenses
6,348

 

 
779

 
3,305

 

 
10,432

Total current assets
593,705

 

 
30,345

 
79,981

 
(363,416
)
 
340,615

Property, plant and equipment, net
69,368

 

 
2,088

 
40,616

 

 
112,072

Goodwill
300,642

 

 
24,650

 
159,470

 

 
484,762

Other intangible assets, net
404,645

 

 
45,218

 
158,476

 

 
608,339

Investment in subsidiaries
(43,464
)
 

 
(56,447
)
 

 
99,911

 

Intercompany receivable

 
730,000

 

 

 
(730,000
)
 

Other assets
20,463

 

 
119

 
2,353

 

 
22,935

Total assets
$
1,345,359

 
$
730,000

 
$
45,973

 
$
440,896

 
$
(993,505
)
 
$
1,568,723

Liabilities and Member’s Equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$
75,332

 
$

 
$
12,877

 
$
31,022

 
$

 
$
119,231

Intercompany payables
(26,324
)
 

 
25,870

 
362,419

 
(361,965
)
 

Accrued liabilities
77,511

 

 
7,057

 
11,709

 

 
96,277

Deferred income taxes
772

 

 

 
5,047

 

 
5,819

Income taxes payable
(308
)
 

 
4,365

 
(36
)
 
(1,451
)
 
2,570

Total current liabilities
126,983

 

 
50,169

 
410,161

 
(363,416
)
 
223,897

Deferred income taxes
81,394

 

 
13,204

 
37,098

 

 
131,696

Other liabilities
89,581

 

 
26,064

 
30,557

 

 
146,202

Long-term debt
800,599

 
730,000

 

 
19,527

 
(730,000
)
 
820,126

Member’s equity
246,802

 

 
(43,464
)
 
(56,447
)
 
99,911

 
246,802

Total liabilities and member’s equity
$
1,345,359

 
$
730,000

 
$
45,973

 
$
440,896

 
$
(993,505
)
 
$
1,568,723




 
ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
For The Quarter Ended September 29, 2012
(In thousands)
 
Company
 
Co-Issuer
 
Subsidiary
Guarantors
 
Non-Guarantor
Subsidiaries
 
Reclassification/
Eliminations
 
Consolidated
Net sales
$
241,436

 
$

 
$
47,830

 
$
84,424

 
$
(48,656
)
 
$
325,034

Cost of sales
181,626

 

 
44,944

 
65,516

 
(48,656
)
 
243,430

Gross profit
59,810

 

 
2,886

 
18,908

 

 
81,604

Selling, general and administrative expenses
46,961

 

 
1,603

 
10,887

 

 
59,451

Income from operations
12,849

 

 
1,283

 
8,021

 

 
22,153

Interest expense, net
18,538

 

 

 
547

 

 
19,085

Foreign currency gain

 

 

 
(17
)
 

 
(17
)
Income (loss) before income taxes
(5,689
)
 

 
1,283

 
7,491

 

 
3,085

Income tax expense (benefit)
462

 

 
(23
)
 
2,116

 

 
2,555

Income (loss) before equity loss from subsidiaries
(6,151
)
 

 
1,306

 
5,375

 

 
530

Equity gain (loss) from subsidiaries
6,681

 

 
5,375

 

 
(12,056
)
 

Net income (loss)
530

 

 
6,681

 
5,375

 
(12,056
)
 
530

Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
Pension and other postretirement benefit adjustments, net of tax
40

 

 
(1
)
 
12

 
(35
)
 
16

Foreign currency translation adjustments, net of tax
11,662

 

 

 
11,662

 
(11,662
)
 
11,662

Total comprehensive income (loss)
$
12,232

 
$

 
$
6,680

 
$
17,049

 
$
(23,753
)
 
$
12,208


ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
For The Nine Months Ended September 29, 2012
(In thousands)
 
 
Company
 
Co-Issuer
 
Subsidiary
Guarantors
 
Non-Guarantor
Subsidiaries
 
Reclassification/
Eliminations
 
Consolidated
Net sales
$
636,915

 
$

 
$
133,563

 
$
218,919

 
$
(137,018
)
 
$
852,379

Cost of sales
485,784

 

 
126,420

 
173,789

 
(137,018
)
 
648,975

Gross profit
151,131

 

 
7,143

 
45,130

 

 
203,404

Selling, general and administrative expenses
141,729

 

 
4,782

 
31,952

 

 
178,463

Income from operations
9,402

 

 
2,361

 
13,178

 

 
24,941

Interest expense, net
55,315

 

 

 
1,382

 

 
56,697

Foreign currency loss

 

 

 
220

 

 
220

Income (loss) before income taxes
(45,913
)
 

 
2,361

 
11,576

 

 
(31,976
)
Income tax expense (benefit)
1,868

 

 
(59
)
 
3,182

 

 
4,991

Income (loss) before equity loss from subsidiaries
(47,781
)
 

 
2,420

 
8,394

 

 
(36,967
)
Equity gain (loss) from subsidiaries
10,814

 

 
8,394

 

 
(19,208
)
 

Net income (loss)
(36,967
)
 

 
10,814

 
8,394

 
(19,208
)
 
(36,967
)
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
Pension and other postretirement benefit adjustments, net of tax
40

 

 
(1
)
 
36

 
(35
)
 
40

Foreign currency translation adjustments, net of tax
13,103

 

 

 
13,103

 
(13,103
)
 
13,103

Total comprehensive income (loss)
$
(23,824
)
 
$

 
$
10,813

 
$
21,533

 
$
(32,346
)
 
$
(23,824
)


 
ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Nine Months Ended September 29, 2012
(In thousands)


 
Company
 
Co-Issuer
 
Subsidiary
Guarantors
 
Non-Guarantor
Subsidiaries
 
Consolidated
Net cash (used in) provided by operating activities
$
(22,131
)
 
$

 
$
7,028

 
$
999

 
$
(14,104
)
Investing Activities
 
 
 
 
 
 
 
 
 
Capital expenditures
(2,956
)
 

 
(67
)
 
(697
)
 
(3,720
)
Proceeds from the sale of assets
87

 

 
1

 

 
88

Net cash used in investing activities
(2,869
)
 

 
(66
)
 
(697
)
 
(3,632
)
Financing Activities
 
 
 
 
 
 
 
 
 
Borrowings under ABL facilities
74,218

 

 

 
73,356

 
147,574

Payments under ABL facilities
(74,619
)
 

 

 
(56,734
)
 
(131,353
)
Intercompany transactions
26,410

 

 
(6,962
)
 
(19,448
)
 

Equity contribution from parent
80

 

 

 

 
80

Financing costs
(209
)
 

 

 
(16
)
 
(225
)
Net cash provided by (used in) financing activities
25,880

 

 
(6,962
)
 
(2,842
)
 
16,076

Effect of exchange rate changes on cash and cash equivalents

 

 

 
(55
)
 
(55
)
Net increase (decrease) in cash and cash equivalents
880

 

 

 
(2,595
)
 
(1,715
)
Cash and cash equivalents at beginning of period
7,855

 

 

 
3,519

 
11,374

Cash and cash equivalents at end of period
$
8,735

 
$

 
$

 
$
924

 
$
9,659



 

























ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2011
(In thousands)

 
Company
 
Co-Issuer
 
Subsidiary
Guarantors
 
Non-Guarantor
Subsidiaries
 
Reclassification/
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
7,855

 
$

 
$

 
$
3,519

 
$

 
$
11,374

Accounts receivable, net
89,297

 

 
10,408

 
22,293

 

 
121,998

Intercompany receivables
384,210

 

 

 
4,058

 
(388,268
)
 

Inventories
83,257

 

 
6,473

 
25,923

 

 
115,653

Deferred income taxes
6,173

 

 
1,840

 

 

 
8,013

Prepaid expenses
7,599

 

 
942

 
3,112

 

 
11,653

Total current assets
578,391

 

 
19,663

 
58,905

 
(388,268
)
 
268,691

Property, plant and equipment, net
80,520

 

 
2,897

 
43,176

 

 
126,593

Goodwill
300,642

 

 
24,650

 
153,620

 

 
478,912

Other intangible assets, net
419,632

 

 
45,554

 
156,914

 

 
622,100

Investment in subsidiaries
(41,092
)
 

 
(78,082
)
 

 
119,174

 

Intercompany receivable

 
730,000

 

 

 
(730,000
)
 

Other assets
22,432

 

 
(1
)
 
2,441

 

 
24,872

Total assets
$
1,360,525

 
$
730,000

 
$
14,681

 
$
415,056

 
$
(999,094
)
 
$
1,521,168

Liabilities and Member’s Equity
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
$
56,891

 
$

 
$
3,593

 
$
19,776

 
$

 
$
80,260

Intercompany payables
4,286

 

 
2,121

 
381,861

 
(388,268
)
 

Accrued liabilities
55,645

 

 
6,735

 
10,049

 

 
72,429

Deferred income taxes

 

 

 
4,967

 

 
4,967

Income taxes payable
(2,763
)
 

 
4,448

 
5,304

 

 
6,989

Total current liabilities
114,059

 

 
16,897

 
421,957

 
(388,268
)
 
164,645

Deferred income taxes
81,394

 

 
13,204

 
37,100

 

 
131,698

Other liabilities
93,608

 

 
25,672

 
31,081

 

 
150,361

Long-term debt
801,000

 
730,000

 

 
3,000

 
(730,000
)
 
804,000

Member’s equity
270,464

 

 
(41,092
)
 
(78,082
)
 
119,174

 
270,464

Total liabilities and member’s equity
$
1,360,525

 
$
730,000

 
$
14,681

 
$
415,056

 
$
(999,094
)
 
$
1,521,168




 





ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
For The Quarter Ended October 1, 2011
(In thousands)
 
Company
 
Co-Issuer
 
Subsidiary
Guarantors
 
Non-Guarantor
Subsidiaries
 
Reclassification/
Eliminations
 
Consolidated
Net sales
$
261,047

 
$

 
$
45,630

 
$
88,432

 
$
(45,908
)
 
$
349,201

Cost of sales
199,263

 

 
43,372

 
67,315

 
(45,908
)
 
264,042

Gross profit
61,784

 

 
2,258

 
21,117

 

 
85,159

Selling, general and administrative expenses
51,542

 

 
841

 
11,193

 

 
63,576

Impairment of other intangible assets
50,200

 

 
3,965

 
18,077

 

 
72,242

Income (loss) from operations
(39,958
)
 

 
(2,548
)
 
(8,153
)
 

 
(50,659
)
Interest expense, net
18,520

 

 

 
536

 

 
19,056

Foreign currency loss

 

 

 
371

 

 
371

Income (loss) before income taxes
(58,478
)
 

 
(2,548
)
 
(9,060
)
 

 
(70,086
)
Income tax (benefit) expense
(19,842
)
 

 
1,578

 
(3,804
)
 

 
(22,068
)
Income (loss) before equity loss from subsidiaries
(38,636
)
 

 
(4,126
)
 
(5,256
)
 

 
(48,018
)
Equity income (loss) from subsidiaries
(9,382
)
 

 
(5,256
)
 

 
14,638

 

Net income (loss)
(48,018
)
 

 
(9,382
)
 
(5,256
)
 
14,638

 
(48,018
)
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments, net of tax
(34,199
)
 

 

 
(34,199
)
 
34,199

 
(34,199
)
Total comprehensive income (loss)
$
(82,217
)
 
$

 
$
(9,382
)
 
$
(39,455
)
 
$
48,837

 
$
(82,217
)

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
For The Nine Months Ended October 1, 2011
(In thousands)
 
Company
 
Co-Issuer
 
Subsidiary
Guarantors
 
Non-Guarantor
Subsidiaries
 
Reclassification/
Eliminations
 
Consolidated
Net sales
$
631,543

 
$

 
$
124,107

 
$
223,382

 
$
(122,636
)
 
$
856,396

Cost of sales
484,113

 

 
119,381

 
169,960

 
(122,636
)
 
650,818

Gross profit
147,430

 

 
4,726

 
53,422

 

 
205,578

Selling, general and administrative expenses
151,623

 

 
2,741

 
33,752

 

 
188,116

Impairment of other intangible assets
50,200

 

 
3,965

 
18,077

 

 
72,242

Income (loss) from operations
(54,393
)
 

 
(1,980
)
 
1,593

 

 
(54,780
)
Interest expense, net
55,379

 

 

 
1,472

 

 
56,851

Foreign currency loss

 

 

 
465

 

 
465

Income (loss) before income taxes
(109,772
)
 

 
(1,980
)
 
(344
)
 

 
(112,096
)
Income tax (benefit) expense
(19,842
)
 

 
1,578

 
(1,503
)
 

 
(19,767
)
Income (loss) before equity loss from subsidiaries
(89,930
)
 

 
(3,558
)
 
1,159

 

 
(92,329
)
Equity income (loss) from subsidiaries
(2,399
)
 

 
1,159

 

 
1,240

 

Net income (loss)
(92,329
)
 

 
(2,399
)
 
1,159

 
1,240

 
(92,329
)
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments, net of tax
(18,809
)
 

 

 
(18,809
)
 
18,809

 
(18,809
)
Total comprehensive income (loss)
$
(111,138
)
 
$

 
$
(2,399
)
 
$
(17,650
)
 
$
20,049

 
$
(111,138
)


ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
Nine Months Ended October 1, 2011
(In thousands)

 
Company
 
Co-Issuer
 
Subsidiary
Guarantors
 
Non-Guarantor
Subsidiaries
 
Consolidated
Net cash (used in) provided by operating activities
$
(37,296
)
 
$

 
$
(436
)
 
$
9,323

 
$
(28,409
)
Investing Activities
 
 
 
 
 
 
 
 
 
Supply center acquisition
(1,550
)
 

 

 

 
(1,550
)
Capital expenditures
(10,728
)
 

 
(26
)
 
(2,423
)
 
(13,177
)
Net cash used in investing activities
(12,278
)
 

 
(26
)
 
(2,423
)
 
(14,727
)
Financing Activities
 
 
 
 
 
 
 
 
 
Borrowings under ABL facilities
180,000

 

 

 
114,146

 
294,146

Payments under ABL facilities
(164,000
)
 

 

 
(92,146
)
 
(256,146
)
Intercompany transactions
36,514

 

 
462

 
(36,976
)
 

Financing costs
(398
)
 

 

 

 
(398
)
Net cash provided by (used in) financing activities
52,116

 

 
462

 
(14,976
)
 
37,602

Effect of exchange rate changes on cash and cash equivalents

 

 

 
198

 
198

Net increase (decrease) in cash and cash equivalents
2,542

 

 

 
(7,878
)
 
(5,336
)
Cash and cash equivalents at beginning of period
5,911

 

 

 
7,878

 
13,789

Cash and cash equivalents at end of period
$
8,453

 
$

 
$

 
$

 
$
8,453