EX-99.2 4 file003.txt UNAUDITED PRO FORMA FINANCIAL STATEMENTS EXHIBIT 99.2 UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The following unaudited pro forma financial information as of and for the year ended December 31, 2001 has been derived form our audited consolidated financial statements as of such date and for such period and gives pro forma effect to (1) the Dispositions and the Transactions as if they had been consummated as of January 1, 2001, in the case of statement of operations and other operating data; and (2) the Tax Refunds and the Transactions as if they had been consummated as of December 31, 2001, in the case of balance sheet data. See "Terms Used in this Offering Memorandum," "The Acquisition," "Use of Proceeds" and "Management's Discussion and Analysis of Financial Condition and Results of Operations--General--Alltrista Divestitures." The unaudited pro forma financial information is not necessarily indicative of our results of operations or financial position had the events reflected herein actually been consummated at the assumed dates, nor is it necessarily indicative of our results of operations or financial position for any future period. The unaudited pro forma financial information should be read in conjunction with the consolidated financial statements, including the related notes, included elsewhere in this offering memorandum. The pro forma adjustments related to the purchase price allocation and financing of the Acquisition are preliminary and based on information obtained to date and are subject to revision as additional information becomes available. Revisions to the preliminary purchase price allocation and financing of the Acquisition may have a significant impact on the unaudited pro forma information. UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2001
DISPOSITIONS- RELATED ALLTRISTA PRO FORMA AS REPORTED ADJUSTMENTS ------------- --------------------- (DOLLARS IN THOUSANDS) ASSETS Current assets Cash and cash equivalents ................. $ 6,376 Accounts receivable, net .................. 13,986 Income taxes receivable ................... 16,252 $ (15,700)(a) Inventories, net .......................... 26,994 Deferred taxes on income .................. 4,832 (4,832)(a) Other current assets ...................... 3,134 --------- ----------- Total current assets ..................... 71,574 (20,532) --------- ----------- Property, plant and equipment, net ......... 43,543 Goodwill, net .............................. 15,487 Deferred taxes on income ................... 25,417 (17,968)(a) Other assets ............................... 5,282 --------- ----------- Total assets ............................... $ 161,303 $ (38,500) ========= =========== LIABILITIES AND EQUITY Current liabilities Short-term and current portion of long-term debt ........................... $ 28,500 $ (23,500)(a) Accounts payable .......................... 14,197 Other current liabilities ................. 20,842 --------- ----------- Total current liabilities ................ 63,539 (23,500) --------- ----------- Noncurrent liabilities Long-term debt ............................ 56,375 (15,000)(a) Other noncurrent liabilities .............. 6,260 --------- ----------- Total noncurrent liabilities ............. 62,635 (15,000) Equity ..................................... 35,129 --------- ----------- Total liabilities and equity ............... $ 161,303 $ (38,500) ========= =========== ACQUISITION- RELATED ALLTRISTA TILIA PRO FORMA PRO FORMA PRO FORMA AS REPORTED ADJUSTMENTS COMBINED ----------- ------------- ------------------- ------------ (DOLLARS IN THOUSANDS) ASSETS Current assets Cash and cash equivalents ................. $ 6,376 $ 18,915 $ (1,875)(b) $ 23,416 Accounts receivable, net .................. 13,986 22,982 36,968 Income taxes receivable ................... 552 -- 552 Inventories, net .......................... 26,994 24,453 51,447 Deferred taxes on income .................. -- 5,632 5,632 Other current assets ...................... 3,134 1,888 5,022 --------- ---------- ----------- --------- Total current assets ..................... 51,042 73,870 (1,875) 123,037 --------- ---------- ----------- --------- Property, plant and equipment, net ......... 43,543 3,267 46,810 Goodwill, net .............................. 15,487 -- 100,935(c) 116,422 Deferred taxes on income ................... 7,449 122 7,571 Other assets ............................... 5,282 1,146 12,000(d) 18,214 (214)(e) --------- ---------- ----------- --------- Total assets ............................... $ 122,803 $ 78,405 $ 110,846 $ 312,054 ========= ========== ============ ========= LIABILITIES AND EQUITY Current liabilities Short-term and current portion of long-term debt ........................... $ 5,000 $ -- $ (5,000)(f) $ -- Accounts payable .......................... 14,197 3,535 17,732 Other current liabilities ................. 20,842 17,305 38,147 --------- ---------- ----------- --------- Total current liabilities ................ 40,039 20,840 (5,000) 55,879 --------- ---------- ----------- --------- Noncurrent liabilities Long-term debt ............................ 41,375 -- (41,375)(f) 215,000 50,000 (g) 15,000 (h) 150,000 (i) Other noncurrent liabilities .............. 6,260 -- 6,260 --------- ---------- ----------- --------- Total noncurrent liabilities ............. 47,635 -- 173,625 221,260 Equity ..................................... 35,129 57,565 (57,565)(j) 34,915 (214)(e) --------- ---------- ------------ --------- Total liabilities and equity ............... $ 122,803 $ 78,405 $ 110,846 $ 312,054 ========= ========== ============ =========
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND OTHER OPERATING DATA YEAR ENDED DECEMBER 31, 2001
DISPOSITIONS- RELATED ALLTRISTA PRO FORMA AS REPORTED ADJUSTMENTS ------------- --------------------- (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Net sales ........................................ $ 304,978 $ (62,588)(k) (711)(l) Costs and expenses Cost of sales ................................... 233,676 (60,901)(k) Selling, general and administrative expenses..... 52,212 (9,061)(k) (1,670)(l) Goodwill amortization ........................... 5,153 (4,044)(k) Special charges (credits) and reorganization expenses ....................................... 4,978 345(k) Loss on divestitures of assets .................. 122,887 (122,426)(m) ---------- ------------- Income (loss) before interest, taxes and minority interest ............................... (113,928) 134,458 Interest expense, net ............................ 11,791 (3,602)(n) ---------- ------------- Income (loss) before taxes and minority interest ........................................ (125,719) 138,060 Income tax provision (benefit) ................... (40,443) 44,352(o) Minority interest in loss of consolidated subsidiary ...................................... 153 (153)(p) ---------- ------------- Net income (loss) ................................ $ (85,429) $ 93,861 ========== ============= Basic earnings (loss) per share .................. $ (13.43) Diluted earnings (loss) per share ................ (13.43) Weighted average shares outstanding: Basic ........................................... 6,363 Diluted ......................................... 6,363 Other Data: EBITDA(u) ....................................... $ 32,734 $ 3,564 Depreciation and amortization ................... 18,797 8,813 Capital expenditures ............................ 9,707 3,000 ACQUISITION- RELATED ALLTRISTA TILIA PRO FORMA PRO FORMA PRO FORMA AS REPORTED ADJUSTMENTS COMBINED -------------- ------------- ------------------- -------------- (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Net sales ........................................ $ 241,679 $ 183,825 $ 425,504 Costs and expenses Cost of sales ................................... 172,775 89,668 262,443 Selling, general and administrative expenses..... 41,481 61,718 $ 1,000(q) 104,199 Goodwill amortization ........................... 1,109 -- 1,109 Special charges (credits) and reorganization expenses ....................................... 5,323 803 6,126 Loss on divestitures of assets .................. 461 -- 461 ---------- --------- ------------- ---------- Income (loss) before income taxes and minority interest ............................... 20,530 31,636 (1,000) 51,166 Interest expense, net ............................ 8,189 344 (8,189)(r) 19,619 18,375(s) 900(t) ---------- --------- ------------- ---------- Income (loss) before taxes and minority interest ........................................ 12,341 31,292 (12,086) 31,547 Income tax provision (benefit) ................... 3,909 8,513 (1,381)(o) 11,041 Minority interest in loss of consolidated subsidiary ...................................... -- -- -- ---------- --------- ------------ ---------- Net income (loss) ................................ $ 8,432 $ 22,779 $ (10,705) $ 20,506 ========== ========= ============ ========== Basic earnings (loss) per share .................. $ 1.33 $ 3.22 Diluted earnings (loss) per share ................ 1.32 3.22 Weighted average shares outstanding: Basic ........................................... 6,363 6,363 Diluted ......................................... 6,377 6,377 Other Data: EBITDA(u) ....................................... $ 36,298 $ 34,051 $ -- $ 70,349 Depreciation and amortization ................... 9,984 1,612 1,000 12,596 Capital expenditures ............................ 6,707 1,984 -- 8,691
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2001 Balance sheet adjustments: (a) Adjustment to reflect the use of the Tax Refunds to repay existing debt, thereby reducing income taxes receivable and deferred tax assets. (b) Adjustment to reflect the use of cash on hand to fund a portion of the purchase price of Tilia. (c) Adjustment to reflect estimated goodwill to be recorded with the Acquisition calculated as the purchase price plus related expenses ($163.5 million) related to the Acquisition less the net equity of Tilia and amounts allocated to specifically identifiable intangible assets ($5.0 million). (d) Adjustment to reflect the following: (i) estimated fair value of Tilia's identifiable intangible assets (primarily patents) of $5.0 million to be amortized over an average five-year life; (ii) estimated expenses of this offering of $5.0 million to be amortized over the ten-year term of the Senior Subordinated Notes due 2012; and (iii)estimated expenses of the new senior credit facility of $2.0 million to be amortized over the five-year term. (e) Adjustment to reflect the write-off of remaining debt issue costs relating to Alltrista's existing senior credit facility. (f) Adjustment to reflect the repayment of Alltrista's existing credit facility in conjunction with the Transactions. (g) Adjustment to reflect the initial borrowing under the new senior credit facility in conjunction with the Transactions. (h) Adjustment to reflect the subordinated seller notes to be issued in conjunction with the Transactions: (i) $10.0 million non-interest bearing note due March 31, 2003, and (ii) $5.0 million note due June 30, 2005. (i) Adjustment to reflect the issuance of the Senior Subordinated Notes due 2012. (j) Adjustment to reflect the elimination of the existing stockholders' equity of Tilia. Statement of operations adjustments: (k) Adjustment to reflect the elimination of the operating results of the TPD Assets. (l) Adjustment to reflect the elimination of the operating results of Microlin, LLC. (m) Adjustment to reflect the elimination of the loss on the Dispositions. (n) Adjustment to reflect the elimination of interest expense related to the debt repayment resulting from the Tax Refunds. (o) Adjustment to reflect an effective tax rate of 35.0%. (p) Adjustment to reflect the elimination of the minority interest's share in the loss of Microlin, LLC. (q) Adjustment to reflect the amortization of estimated identifiable intangible assets. See note (d)(i) above. (r) Adjustment to reflect the elimination of historical Alltrista interest expense in conjunction with the Transactions. (s) Adjustment to reflect pro forma interest expense relating to: (i) the new senior credit facility based upon Alltrista's 2001 effective borrowing rate; (ii) the interest bearing subordinated seller note described in note (g)(ii) above based upon Alltrista's 2001 effective borrowing rate; and (iii) the Senior Subordinated Notes due 2012. (t) Adjustment to reflect amortization of debt issue costs for both the new senior credit facility and the Senior Subordinated Notes due 2012. See note (d) above. (u) "EBITDA" is calculated as income (loss) before interest, taxes and minority interest plus (i) depreciation and amortization, (ii) special charges (credits) and reorganization expenses and (iii) loss (gain) on divestiture of assets and product lines. EBITDA is not intended to represent cash flow from operations as defined by accounting principles generally accepted in the United States and should not be used as an alternative to net income as an indicator of operating performance or to cash flow as a measure of liquidity. EBITDA is included in this offering memorandum because it is a basis upon which our management assesses financial performance. While EBITDA is frequently used as a measure of operations and the ability to meet debt service requirements, it is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the method of calculation.