Guarantor and Non-guarantor Financial Statements

6 Months Ended

Jun. 30, 2013

Guarantor and Non-guarantor Financial Statements [Abstract]

Guarantor and Non-guarantor Financial Statements

Note 9 – Guarantor and Non-guarantor Financial Statements

Our senior secured notes are, jointly and severally, fully and unconditionally guaranteed, on a senior basis, by all of our existing and future 100% owned domestic subsidiaries (“Guarantor Subsidiaries”). The non-guarantor subsidiaries are our foreign subsidiaries and discontinued operations.  The following condensed financial information illustrates the composition of the combined Guarantor Subsidiaries:

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30, 2013
(In thousands)	Parent		Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
ASSETS
Cash and cash equivalents	$	29,660	$	(896	)	$	4,116			—		$	32,880
Customer and other receivables, net		44,668		43,767			3,948		$	(399	)		91,984
Inventories		20,373		35,282			3,332			(462	)		58,525
Other current assets		5,927		4,929			5,362			—			16,218
Total current assets		100,628		83,082			16,758			(861	)		199,607
Property, plant, and equipment, net		77,486		134,428			35,954			—			247,868
Goodwill		96,283		4,414			—			—			100,697
Intangible assets, net		126,895		2,750			—			—			129,645
Investments in and advances to subsidiaries and affiliates		105,087		—			—			(105,087	)		—
Deferred income taxes		4,874		20,397			1,963			(22,360	)		4,874
Other non-current assets		6,701		452			—			—			7,153
TOTAL	$	517,954	$	245,523		$	54,675		$	(128,308	)	$	689,844
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	$	14,972	$	45,924		$	11,278			—		$	72,174
Accrued payroll and compensation		939		7,527			1,494			—			9,960
Accrued interest payable		12,634		—			—			—			12,634
Other current liabilities		5,297		13,981			3,443		$	(861	)		21,860
Total current liabilities		33,842		67,432			16,215			(861	)		116,628
Long-term debt		349,658		—			—			—			349,658
Deferred and non-current income taxes		62,127		(17,497	)		(1,894	)		(22,360	)		20,376
Other non-current liabilities		26,871		104,150			26,705			—			157,726
Stockholders’ equity		45,456		91,438			13,649			(105,087	)		45,456
TOTAL	$	517,954	$	245,523		$	54,675		$	(128,308	)	$	689,844

	December 31, 2012
(In thousands)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
ASSETS
Cash and cash equivalents	$	24,113		$	(109	)	$	2,747			—		$	26,751
Customer and other receivables, net		62,719			29,285			3,219		$	(30,627	)		64,596
Inventories		19,563			39,443			2,766			(580	)		61,192
Other current assets		(1,348	)		10,737			786			—			10,175
Total current assets		105,047			79,356			9,518			(31,207	)		162,714
Property, plant, and equipment, net		93,990			135,215			38,172			—			267,377
Goodwill		96,283			4,414			—			—			100,697
Intangible assets, net		131,347			2,833			—			—			134,180
Investments in and advances to subsidiaries and affiliates		95,958			—			—			(95,958	)		—
Deferred income taxes		(14,909	)		19,671			2,141			(6,903	)		—
Other non-current assets		12,215			590			43						12,848
TOTAL	$	519,931		$	242,079		$	49,874		$	(134,068	)	$	677,816
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	$	14,838		$	36,702		$	7,641			—		$	59,181
Accrued payroll and compensation		1,241			7,488			1,997			—			10,726
Accrued interest payable		12,543			—			—			—			12,543
Other current liabilities		35,756			16,479			3,283		$	(32,207	)		24,311
Total current liabilities		64,378			60,669			12,921			(31,207	)		106,761
Long-term debt		324,133			—			—			—			324,133
Deferred and non-current income taxes		48,071			(12,042	)		(1,894	)		(6,093	)		27,232
Other non-current liabilities		18,476			106,671			29,670			—			154,817
Stockholders’ equity		64,873			86,781			9,177			(95,958	)		64,873
TOTAL	$	519,931		$	242,079		$	49,874		$	(134,068	)	$	677,816

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended June 30, 2013
(In thousands)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
Net sales	$	121,949		$	108,899		$	38,176		$	(57,706	)	$	211,318
Cost of goods sold		113,261			101,802			35,514			(57,706	)		192,871
Gross profit		8,688			7,097			2,662			—			18,447
Operating expenses		12,301			374			72			—			12,747
Income from operations		(3,613	)		6,723			2,590			—			5,700
Other income (expense):
Interest expense, net		(9,297	)		(73	)		213			—			(9,157	)
Equity in earnings of subsidiaries		8,231			—			—			(8,231	)		—
Other income (loss), net		(13	)		—			(428	)		—			(441	)
Income (loss) before income taxes		(4,692	)		6,650			2,375			(8,231	)		(3,898	)
Income tax  provision		670			—			794			—			1,464
Net income (loss)	$	(5,362	)	$	6,650		$	1,581		$	(8,231	)	$	(5,362	)
Comprehensive income (loss)	$	(4,945	)	$	6,650		$	1,998		$	(8,648	)	$	(4,945	)

	Three Months Ended June 30, 2012
(In thousands)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries		Eliminations			Total
Net sales	$	119,374		$	159,890		$	41,505	$	(51,986	)	$	268,783
Cost of goods sold		103,971			154,919			37,054		(51,986	)		243,958
Gross profit		15,403			4,971			4,451		—			24,825
Operating expenses		13,919			1,230			84		—			15,233
Income from operations		1,484			3,741			4,367		—			9,592
Other income (expense):
Interest expense, net		(8,540	)		(122	)		4		—			(8,658	)
Equity in earnings of subsidiaries		7,284			—			—		(7,284	)		—
Other income (loss), net		(996	)		—			560		—			(436	)
Income (loss) before income taxes		(768	)		3,619			4,931		(7,284	)		498
Income tax  provision (benefit)		73			—			1,266		—			1,339
Net income (loss)	$	(841	)	$	3,619		$	3,665	$	(7,284	)	$	(841	)
Comprehensive income (loss)	$	(662	)	$	3,619		$	3,844	$	(7,463	)	$	(662	)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Six Months Ended June 30, 2013
(In thousands)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
Net sales	$	227,108		$	212,571		$	74,027		$	(109,928	)	$	403,778
Cost of goods sold		214,386			206,945			68,842			(109,928	)		380,245
Gross profit		12,722			5,626			5,185			—			23,533
Operating expenses		22,825			844			153			—			23,822
Income from operations		(10,103	)		4,782			5,032			—			(289	)
Other income (expense):
Interest expense, net		(18,145	)		(137	)		431			—			(17,851	)
Equity in earnings of subsidiaries		8,381			—			—			(8,381	)		—
Other income (loss), net		(86	)		12			(222	)		—			(296	)
Income (loss) before income taxes		(19,953	)		4,657			5,241			(8,381	)		(18,436	)
Income tax  provision		1,356			—			1,517			—			2,873
Net income (loss)	$	(21,309	)	$	4,657		$	3,724		$	(8,381	)	$	(21,309	)
Comprehensive income (loss)	$	(20,561	)	$	4,657		$	4,472		$	(9,129	)	$	(20,561	)

	Six Months Ended June 30, 2012
(In thousands)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
Net sales	$	241,950		$	315,682		$	78,959		$	(98,290	)	$	538,301
Cost of goods sold		206,905			309,960			72,801			(98,290	)		491,376
Gross profit		35,045			5,722			6,158			—			46,925
Operating expenses		27,591			2,350			156			—			30,097
Income (loss) from operations		7,454			3,372			6,002			—			16,828
Other income (expense):
Interest expense, net		(17,119	)		(197	)		(87	)		—			(17,403	)
Equity in earnings of subsidiaries		7,525			—			—			(7,525	)		—
Other income (loss), net		(216	)		—			(63	)		—			(279	)
Income (loss) before income taxes from continuing operations		(2,356	)		3,175			5,852			(7,525	)		(854	)
Income tax  provision (benefit)		1,434			—			1,502			—			2,936
Income (loss) from continuing operations		(3,790	)		3,175			4,350			(7,525	)		(3,790	)
Discontinued operations, net of tax		—			—			—			—			—
Net income (loss)	$	(3,790	)	$	3,175		$	4,350		$	(7,525	)	$	(3,790	)
Comprehensive income (loss)	$	(3,829	)	$	3,175		$	4,311		$	(7,486	)	$	(3,829	)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Six Months Ended June 30, 2013
(In thousands)	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(21,309	)	$	4,657		$	3,724		$	(8,381	)	$	(21,309	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation		5,330			10,065			2,453			—			17,848
Amortization – deferred financing costs		1,380			—			—			—			1,380
Amortization – other intangible assets		4,452			83			—			—			4,535
(Gain) loss on disposal of assets		949			8			(15	)		—			942
Deferred income taxes		1,356			—			—			—			1,356
Non-cash stock-based compensation		1,353			—			—			—			1,353
Equity in earnings of subsidiaries and affiliates		(8,381	)		—			—			8,381			—
Change in other operating items		(12,879	)		(1,137	)		(4,444	)		—			(18,460	)
Net cash provided by (used in) operating activities		(27,749	)		13,676			1,718			—			(12,355	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(6,648	)		(14,463	)		(349	)		—			(21,460	)
Other		14,944			—			—			—			14,944
Net cash provided (used in) investing activities		8,296			(14,463	)		(349	)		—			(6,516	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from revolver		25,000			—			—			—			25,000
Net cash provided by financing activities		25,000			—			—			—			25,000
Increase (decrease) in cash and cash equivalents		5,547			(787	)		1,369			—			6,129
Cash and cash equivalents, beginning of period		24,113			(109	)		2,747			—			26,751
Cash and cash equivalents, end of period	$	29,660		$	(896	)	$	4,116		$	—		$	32,880

	Six Months Ended June 30, 2012
(In thousands)	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(3,790	)	$	3,175		$	4,350		$	(7,525	)	$	(3,790	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation	4,574			11,829			3,518			—			19,921
Amortization – deferred financing costs	1,379			—			—			—			1,379
Amortization – other intangible assets	4,209			1,182			—			—			5,391
(Gain) loss on disposal of assets	(2,075		)	2,200			46			—			171
Deferred income taxes	1,395			—			—			—			1,395
Non-cash stock-based compensation	1,715			—			—			—			1,715
Equity in earnings of subsidiaries and affiliates	(7,525		)	—			—			7,525			—
Change in other operating items	(5,661		)	(9,793		)	(7,331		)	—			(22,785		)
Net cash provided by (used in) operating activities	(5,779		)	8,593			583			—			3,397
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment	(13,572		)	(10,540		)	(1,539		)	—			(25,651		)
Other	—			—			1,000			—			1,000
Net cash provided by (used in) investing activities	(13,572		)	(10,540		)	(539		)	—			(24,651		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Other	1,510			—			(1,510		)	—			—
Net cash provided by (used in) financing activities	1,510			—			(1,510		)	—			—
Increase (decrease) in cash and cash equivalents	(17,841		)	(1,947		)	(1,466		)	—			(21,254		)
Cash and cash equivalents, beginning of period	51,578			(2,770		)	8,107			—			56,915
Cash and cash equivalents, end of period	$	33,737		$	(4,717	)	$	6,641		$	—		$	35,661