Guarantor and Non-guarantor Financial Statements (Tables)

3 Months Ended

Mar. 31, 2014

Guarantor and Non-guarantor Financial Statements [Abstract]

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 SHEET

	March 31, 2014
(In thousands)	Parent		Guarantor Subsidiaries			Non-guarantor Subsidiaries		Eliminations			Total
ASSETS
Cash and cash equivalents	$	16,922	$	—		$	4,718	$	—		$	21,640
Customer and other receivables, net		6,330		20,945			62,091		(6,071	)		83,295
Inventories		20,531		22,378			2,839		(439	)		45,309
Other current assets		6,869		3,309			5,627		—			15,805
Total current assets		50,652		46,632			75,275		(6,510	)		166,049
Property, plant and equipment, net		81,036		103,028			34,463		—			218,527
Goodwill		96,283		4,414			—		—			100,697
Other intangible assets, net		120,787		2,624			—		—			123,411
Investments in and advances to subsidiaries and affiliates		134,549		—			—		(134,549	)		—
Deferred income taxes		36,761		—			2,895		(39,168	)		488
Other non-current assets		6,956		391			10,237		—			17,584
TOTAL	$	527,024	$	157,089		$	122,870	$	(180,227	)	$	626,756
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	$	16,098	$	34,780		$	12,183	$	—		$	63,061
Accrued payroll and compensation		2,922		5,888			1,633		—			10,443
Accrued interest payable		5,127		—			—		—			5,127
Accrued and other liabilities		10,202		11,974			4,821		(6,510	)		20,487
Total current liabilities		34,349		52,642			18,637		(6,510	)		99,118
Long term debt		340,446		—			—		—			340,446
Deferred and non-current income taxes		83,503		(20,450	)		2,274		(39,168	)		26,159
Other non-current liabilities		9,836		74,205			18,102		—			102,143
Stockholders’ equity		58,890		50,692			83,857		(134,549	)		58,890
TOTAL	$	527,024	$	157,089		$	122,870	$	(180,227	)	$	626,756

	December 31, 2013
(In thousands)	Parent		Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
ASSETS
Cash and cash equivalents	$	31,018	$	—		$	2,408		$	—		$	33,426
Customer and other receivables, net		97,382		19,955			60,538			(118,355	)		59,520
Inventories		16,858		20,759			2,022			(310	)		39,329
Other current assets		7,159		4,357			5,477			—			16,993
Total current assets		152,417		45,071			70,445			(118,665	)		149,268
Property, plant and equipment, net		80,286		103,800			35,538			—			219,624
Goodwill		96,283		4,414			—			—			100,697
Other intangible assets, net		122,764		2,666			—			—			125,430
Investments in and advances to subsidiaries and affiliates		128,059		—			—			(128,059	)		—
Other non-current assets		5,971		1,791			8,996			—			16,758
TOTAL	$	585,780	$	157,742		$	114,979		$	(246,724	)	$	611,777
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	$	12,092	$	28,215		$	7,220		$	—		$	47,527
Accrued payroll and compensation		1,604		5,776			1,383			—			8,763
Accrued interest payable		12,535		—			—			—			12,535
Accrued and other liabilities		112,164		22,705			4,970			(118,665	)		21,174
Total current liabilities		138,395		56,696			13,573			(118,665	)		89,999
Long term debt		330,183		—			—			—			330,183
Deferred and non-current income taxes		36,970		(19,108	)		(334	)		—			17,528
Other non-current liabilities		18,348		75,769			18,066			—			112,183
Stockholders’ equity		61,884		44,385			83,674			(128,059	)		61,884
TOTAL	$	585,780	$	157,742		$	114,979		$	(246,724	)	$	611,777

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

	Three Months Ended March 31, 2014
(In thousands)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
Net sales	$	108,531		$	74,302		$	32,654		$	(48,703	)	$	166,784
Cost of goods sold		98,882			69,704			29,439			(48,264	)		149,761
Gross profit		9,649			4,598			3,215			(439	)		17,023
Operating expenses		10,122			280			52			—			10,454
Income (loss) from operations		(473	)		4,318			3,163			(439	)		6,569
Other income (expense):
Interest expense, net		(8,657	)		(61	)		298			—			(8,420	)
Equity in earnings of subsidiaries		5,673			—			—			(5,673	)		—
Other income (expense), net		(77	)		63			(516	)		—			(530	)
Income (loss) before income taxes from continuing operations		(3,534	)		4,320			2,945			(6,112	)		(2,381	)
Income tax provision		39			143			722			—			904
Income (loss from continuing operations		(3,573	)		4,177			2,223			(6,112	)		(3,285	)
Discontinued operations, net of tax		—			—			(288	)		—			(288	)
Net Income (loss)	$	(3,573	)	$	4,177		$	1,935		$	(6,112	)	$	(3,573	)

Comprehensive income (loss)	$	(3,240	)	$	4,164		$	2,270		$	(6,434	)	$	(3,240	)

	Three Months Ended March 31, 2013
(In thousands)	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
Net sales	$	105,158		$	74,200		$	35,851		$	(52,222	)	$	162,987
Cost of goods sold		101,124			74,479			33,328			(52,222	)		156,709
Gross profit		4,034			(279	)		2,523			—			6,278
Operating expenses		10,524			470			81			—			11,075
Income (loss) from operations		(6,490	)		(749	)		2,442			—			(4,797	)
Other income (expense):
Interest expense, net		(8,848	)		(191	)		345			—			(8,694	)
Equity in earnings of subsidiaries		150			—			—			(150	)		—
Other income (expense), net		(73	)		12			206			—			145
Income (loss) before income taxes from continuing operations		(15,261	)		(928	)		2,993			(150	)		(13,346	)
Income tax provision (benefit)		686			—			723			—			1,409
Income (loss) from continuing operations		(15,947	)		(928	)		2,270			(150	)		(14.755	)
Discontinued operations, net of tax		—			—			(1,192	)		—			(1,192	)
Net income (loss)	$	(15,947	)	$	(928	)	$	1,078		$	(150	)	$	(15,947	)

Comprehensive income (loss)	$	(15,616	)	$	(928	)	$	1,409		$	(481	)	$	(15,616	)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three Months Ended March 31, 2014
(In thousands)	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(3,573	)	$	4,177		$	1,935		$	(6,112	)	$	(3,573	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation		2,736			4,456			1,061			—			8,253
Amortization – deferred financing costs		620			—			—			—			620
Amortization – other intangible assets		1,977			42			—			—			2,019
(Gain) loss on disposal of assets		(93	)		57			29			—			(7	)
Deferred income taxes		182			—			—			—			182
Non-cash stock-based compensation		499			—			—			—			499
Equity in earnings of subsidiaries and affiliates		(5,673	)		—			—			5,673			—
Change in other operating items		(8,538	)		(15,593	)		(613	)		439			(24,305	)
Net cash provided by (used in) operating activities		(11, 863	)		(6,861	)		2,412			—			(16,312	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(3,651	)		(2,956	)		(102	)		—			(6,709	)
Proceeds from notes receivable		(29,415	)		(28,742	)		—			58,157			—
Payments on notes receivable		11,607			19,561			—			(31,168	)		—
Other		—			1,235			—			—			1,235
Net cash provided by (used in) investing activities		(21,459	)		(10,902	)		(102	)		26,989			(5,474	)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable		38,742			29,370			45			(58,157	)		10,000
Payment on notes payable		(19,516	)		(11,607	)		(45	)		31,168			—
Net cash provided by (used in) financing activities		19,226			17,763			—			(26,989	)		10,000
Increase (decrease) in cash and cash equivalents		(14,096	)		—			2,310			—			(11,786	)
Cash and cash equivalents, beginning of period		31,018			—			2,408			—			33,426
Cash and cash equivalents, end of period	$	16,922		$	—		$	4,718		$	—		$	21,640

	Three Months Ended March 31, 2013
(In thousands)	Parent Company			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(15,947	)	$	(928	)	$	1,078		$	(150	)	$	(15,947	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation		2,761			4,625			1,772			—			9,158
Amortization – deferred financing costs		690			—			—			—			690
Amortization – other intangible assets		2,232			41			—			—			2,273
(Gain) loss on disposal of assets		862			8			(13	)		—			857
Deferred income taxes		686			—			—			—			686
Non-cash stock-based compensation		694			—			—			—			694
Equity in earnings of subsidiaries and affiliates		(150	)		—			—			150			—
Change in other operating items		(21,468	)		4,822			(1,587	)		—			(18,233	)
Net cash provided by (used in) operating activities		(29,640	)		8,568			1,250			—			(19,822	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(5,005	)		(8,660	)		(1,690	)		—			(15,355	)
Other		14,944			—			—			—			14,944
Net cash provided by (used in) investing activities		9,939			(8,660	)		(1,690	)		—			(411	)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt issuance		25,000			—			—			—			25,000
Increase (decrease) in cash and cash equivalents		5,299			(92	)		(440	)		—			4,767
Cash and cash equivalents, beginning of period		24,113			(29	)		2,667			—			26,751
Cash and cash equivalents, end of period	$	29,412		$	(121	)	$	2,227		$	—		$	31,518