Subsidiary Guarantors

3 Months Ended

Mar. 31, 2012

Subsidiary Guarantors [Abstract]

Subsidiary Guarantors

Note 12 – 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

March 31, 2012

(In thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	5,209		$	—	$	5		$	—		$	—		$	5,214
Accounts receivable, net		78,678			—		10,339			29,718			—			118,735
Intercompany receivables		376,758			—		121			4,059			(380,938	)		—
Inventories		109,890			—		9,832			32,844			—			152,566
Deferred income taxes		6,173			—		1,840			—			—			8,013
Prepaid expenses		6,944			—		816			3,623			—			11,383
Total current assets		583,652			—		22,953			70,244			(380,938	)		295,911
Property, plant and equipment, net		76,398			—		2,630			42,785			—			121,813
Goodwill		300,641			—		24,650			157,212			—			482,503
Other intangible assets, net		414,637			—		45,442			159,132			—			619,211
Investment in subsidiaries		(40,120	)		—		(71,981	)		—			112,101			—
Intercompany receivable		—			730,000		—			—			(730,000	)		—
Other assets		22,176			—		(1	)		2,320			—			24,495
Total assets	$	1,357,384		$	730,000	$	23,693		$	431,693		$	(998,837	)	$	1,543,933
Liabilities and Member’s Equity
Current liabilities:
Accounts payable	$	84,640		$	—	$	14,865		$	32,758		$	—		$	132,263
Intercompany payables		66			—		—			380,872			(380,938	)		—
Accrued liabilities		65,494			—		5,499			9,027			—			80,020
Deferred income taxes		—			—		—			4,967			—			4,967
Income taxes payable		(1,475	)		—		4,478			(239	)		—			2,764
Total current liabilities		148,725			—		24,842			427,385			(380,938	)		220,014
Deferred income taxes		81,393			—		13,204			36,398			—			130,995
Other liabilities		92,612			—		25,767			31,378			—			149,757
Long-term debt		794,000			730,000		—			8,513			(730,000	)		802,513
Member’s equity		240,654			—		(40,120	)		(71,981	)		112,101			240,654
Total liabilities and member’s equity	$	1,357,384		$	730,000	$	23,693		$	431,693		$	(998,837	)	$	1,543,933

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

For The Quarter Ended March 31, 2012

(In thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	159,860		$	—	$	37,321		$	52,524		$	(36,751	)	$	212,954
Cost of sales		128,043			—		36,312			44,256			(36,751	)		171,860
Gross profit		31,817			—		1,009			8,268			—			41,094
Selling, general and administrative expenses		47,163			—		1,885			10,422			—			59,470
Loss from operations		(15,346	)		—		(876	)		(2,154	)		—			(18,376	)
Interest expense, net		18,378			—		—			309			—			18,687
Foreign currency loss (gain)		—			—		—			38			—			38
Loss before income taxes		(33,724	)		—		(876	)		(2,501	)		—			(37,101	)
Income tax expense (benefit)		1,365			—		52			(648	)		—			769
Loss before equity loss from subsidiaries		(35,089	)		—		(928	)		(1,853	)		—			(37,870	)
Equity loss from subsidiaries		(2,781	)		—		(1,853	)		—			4,634			—
Net loss		(37,870	)		—		(2,781	)		(1,853	)		4,634			(37,870	)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax		7,954			—		—			7,954			(7,954	)		7,954
Total comprehensive loss	$	(29,916	)	$	—	$	(2,781	)	$	6,101		$	(3,320	)	$	(29,916	)

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Quarter Ended March 31, 2012

(In thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidated
Net cash (used in) provided by operating activities	$	(6,942	)	$	—	$	10,759		$	(7,937	)	$	(4,120	)
Investing Activities
Capital expenditures		(507	)		—		(25	)		(206	)		(738	)
Proceeds from the sale of assets		4			—		—			—			4
Net cash used in investing activities		(503	)		—		(25	)		(206	)		(734	)
Financing Activities
Net (payments) borrowings under ABL facilities		(7,000	)		—		—			5,513			(1,487	)
Intercompany transactions		11,719			—		(10,729	)		(990	)		—
Equity contribution from parent		80			—		—			—			80
Net cash provided by (used in) financing activities		4,799			—		(10,729	)		4,523			(1,407	)
Effect of exchange rate changes on cash and cash equivalents		—			—		—			101			101
Net (decrease) increase in cash and cash equivalents		(2,646	)		—		5			(3,519	)		(6,160	)
Cash and cash equivalents at beginning of period		7,855			—		—			3,519			11,374
Cash and cash equivalents at end of period	$	5,209		$	—	$	5		$	—		$	5,214

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 April 2, 2011

(In thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	144,212		$	—	$	34,168		$	51,065		$	(32,709	)	$	196,736
Cost of sales		115,133			—		33,335			40,898			(32,709	)		156,657
Gross profit		29,079			—		833			10,167			—			40,079
Selling, general and administrative expenses		46,641			—		1,042			11,233			—			58,916
Loss from operations		(17,562	)		—		(209	)		(1,066	)		—			(18,837	)
Interest expense, net		18,339			—		—			361			—			18,700
Foreign currency loss (gain)		—			—		—			(30	)		—			(30	)
Loss before income taxes		(35,901	)		—		(209	)		(1,397	)		—			(37,507	)
Income tax benefit		—			—		—			(389	)		—			(389	)
Loss before equity loss from subsidiaries		(35,901	)		—		(209	)		(1,008	)		—			(37,118	)
Equity loss from subsidiaries		(1,217	)		—		(1,008	)		—			2,225			—
Net (loss) income		(37,118	)		—		(1,217	)		(1,008	)		2,225			(37,118	)
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax		12,965			—		—			12,965			(12,965	)		12,965
Total comprehensive (loss) income	$	(24,153	)	$	—	$	(1,217	)	$	11,957		$	(10,740	)	$	(24,153	)

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Quarter Ended April 2, 2011

(In thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Consolidated
Net cash (used in) provided by operating activities	$	(33,874	)	$	—	$	2,851		$	(10,940	)	$	(41,963	)
Investing Activities
Capital expenditures		(1,630	)		—		(13	)		(757	)		(2,400	)
Net cash used in investing activities		(1,630	)		—		(13	)		(757	)		(2,400	)
Financing Activities
Net borrowings under ABL facilities		15,000			—		—			21,185			36,185
Intercompany transactions		18,669			—		(2,838	)		(15,831	)		—
Financing costs		(36	)		—		—			—			(36	)
Net cash provided by (used in) financing activities		33,633			—		(2,838	)		5,354			36,149
Effect of exchange rate changes on cash and cash equivalents		—			—		—			107			107
Net decrease in cash and cash equivalents		(1,871	)		—		—			(6,236	)		(8,107	)
Cash and cash equivalents at beginning of period		5,911			—		—			7,878			13,789
Cash and cash equivalents at end of period	$	4,040		$	—	$	—		$	1,642		$	5,682