EX-99.1 4 exh99p1.txt CONSOLIDATING CONDENSED FINANCIAL STATEMENTS Exhibit 99.1 ------------ CONDENSED CONSOLIDATING FINANCIAL INFORMATION These statements are provided to comply with the reporting requirements under the indenture for the 8 3/4% Senior Subordinated Notes due in 2008. The following condensed consolidating financial information illustrates the composition of the Parent Guarantor, Issuer, Guarantor Subsidiaries and non-guarantor subsidiaries. The Issuer, the Guarantor Subsidiaries and the non-guarantor subsidiaries comprise all of the direct and indirect subsidiaries of the Parent Guarantor. Management has determined that separate complete financial statements would not provide additional material information that would be useful in assessing the financial composition of the Guarantor Subsidiaries. In December 1998, Mail-Well I Corporation ("Issuer" or "MWI"), the Company's wholly-owned subsidiary, and the only direct subsidiary of the Company, issued $300.0 million aggregate principal amount of 8 3/4% Senior Subordinated Notes ("Senior Notes") due in 2008. The Senior Notes are guaranteed by the majority of the U.S. subsidiaries (the "Guarantor Subsidiaries") of MWI, all of which are wholly owned, and by Mail-Well, Inc. ("Parent Guarantor"). The guarantees are joint and several, full, complete and unconditional. There are no material restrictions on the ability of the Guarantor Subsidiaries to transfer funds to MWI in the form of cash dividends, loans or advances, other than ordinary legal restrictions under corporate law, fraudulent transfer and bankruptcy laws. Investments in subsidiaries are accounted for under the equity method, wherein the investor company's share of earnings and income taxes applicable to the assumed distribution of such earnings are included in net income. In addition, investments increase in the amount of permanent contributions to subsidiaries and decrease in the amount of distributions from subsidiaries. The elimination entries eliminate the equity method investment in subsidiaries and the equity in earnings of subsidiaries, intercompany payables and receivables and other transactions between subsidiaries. CONSOLIDATING CONDENSED STATEMENT OF FINANCIAL POSITION December 31, 2001 (in thousands)
Combined Combined Parent Guarantor Nonguarantor Guarantor Issuer Subsidiaries Subsidiaries Elim. Consolidated --------- ------ ------------ ------------ ----- ------------ Current assets: Cash and cash equivalents $ -- $ (1,589) $ 1,137 $ 1,388 $ -- $ 936 Receivables, net -- 52,042 202,112 36,987 -- 291,141 Accounts receivable - other -- 4,407 32,441 480 -- 37,328 Inventories, net -- 45,162 75,694 19,209 -- 140,065 Note receivable from Issuer 147,436 -- -- -- (147,436) -- Other current assets 295 7,426 33,829 1,947 (10,506) 32,991 -------- ---------- ---------- -------- ----------- ---------- Total current assets 147,731 107,448 345,213 60,011 (157,942) 502,461 Investment in subsidiaries 240,954 308,616 82,168 -- (631,738) -- Property, plant and equipment, net -- 122,892 333,167 77,417 -- 533,476 Intangible assets, net -- 46,143 317,087 79,375 -- 442,605 Note receivable from subsidiaries -- 749,400 -- -- (749,400) -- Other assets, net 1,023 14,411 (29,377) 149,809 (41,500) 94,366 -------- ---------- ---------- -------- ----------- ---------- Total assets $389,708 $1,348,910 $1,048,258 $366,612 $(1,580,580) $1,572,908 ======== ========== ========== ======== =========== ========== Current liabilities: Accounts payable $ -- $ 50,378 $ 131,892 $ 17,828 $ -- $ 200,098 Other current liabilities 8,768 197,816 (139,844) 85,446 (10,506) 141,680 Note payable to Parent -- 147,436 -- -- (147,436) -- Current portion of long-term debt 139,063 36,157 1,600 1,196 -- 178,016 -------- ---------- ---------- -------- ----------- ---------- Total current liabilities 147,831 431,787 (6,352) 104,470 (157,942) 519,794 Long-term debt -- 645,500 20,626 17,901 -- 684,027 Note payable to Issuer -- -- 749,400 -- (749,400) -- Deferred income taxes -- 28,287 88,150 13,997 (21,508) 108,926 Other long-term liabilities -- 2,382 35,050 844 (19,992) 18,284 -------- ---------- ---------- -------- ----------- ---------- Total liabilities 147,831 1,107,956 886,874 137,212 (948,842) 1,331,031 Shareholders' equity 241,877 240,954 161,384 229,400 (631,738) 241,877 -------- ---------- ---------- -------- ----------- ---------- Total liabilities and shareholders' equity $389,708 $1,348,910 $1,048,258 $366,612 $(1,580,580) $1,572,908 ======== ========== ========== ======== =========== ==========
2 CONSOLIDATING CONDENSED STATEMENT OF FINANCIAL POSITION December 31, 2000 (in thousands)
Combined Combined Parent Guarantor Nonguarantor Guarantor Issuer Subsidiaries Subsidiaries Elim. Consolidated --------- ------ ------------ ------------ ----- ------------ Current assets: Cash and cash equivalents $ -- $ 9,596 $ (9,846) $ 712 $ -- $ 462 Receivables, net -- 8,669 151,978 41,883 -- 202,530 Investment in accounts receivable securitization -- -- -- 75,427 -- 75,427 Accounts receivable - other -- 13,499 5,615 1,063 -- 20,177 Inventories, net -- 51,359 91,815 23,259 -- 166,433 Note receivable from Issuer 147,436 -- -- -- (147,436) -- Other current assets 262 25,741 24,399 3,786 (181) 54,007 -------- ---------- ---------- -------- ----------- ---------- Total current assets 147,698 108,864 263,961 146,130 (147,617) 519,036 Investment in subsidiaries 385,505 357,592 64,348 -- (807,445) -- Property, plant and equipment, net -- 132,522 350,964 86,536 -- 570,022 Intangible assets, net -- 49,455 483,515 86,245 -- 619,215 Notes receivable from subsidiaries -- 784,400 -- -- (784,400) -- Other assets, net 3,481 55,581 1,101 4,001 (18,882) 45,282 -------- ---------- ---------- -------- ----------- ---------- Total assets $536,684 $1,488,414 $1,163,889 $322,912 $(1,758,344) $1,753,555 ======== ========== ========== ======== =========== ========== Current liabilities: Accounts payable $ -- $ 32,446 $ 107,569 $ 17,700 $ -- $ 157,715 Accrued compensation -- 24,556 31,144 7,486 -- 63,186 Other current liabilities 11,768 100,773 (184,734) 155,374 (181) 83,000 Note payable to Parent -- 147,436 -- -- (147,436) -- Current portion of long-term debt -- 30,767 2,662 7,113 -- 40,542 -------- ---------- ---------- -------- ----------- ---------- Total current liabilities 11,768 335,978 (43,359) 187,673 (147,617) 344,443 Long-term debt 139,063 718,147 18,471 12,921 -- 888,602 Notes payable to issuer -- -- 784,400 -- (784,400) -- Deferred income taxes -- 28,288 66,688 13,469 -- 108,445 Other long-term liabilities -- 20,496 23,992 606 (18,882) 26,212 -------- ---------- ---------- -------- ----------- ---------- Total liabilities 150,831 1,102,909 850,192 214,669 (950,899) 1,367,702 Shareholders' equity 385,853 385,505 313,697 108,243 (807,445) 385,853 -------- ---------- ---------- -------- ----------- ---------- Total liabilities and shareholders' equity $536,684 $1,488,414 $1,163,889 $322,912 $(1,758,344) $1,753,555 ======== ========== ========== ======== =========== ==========
3 CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS Year Ended December 31, 2001 (in thousands)
Combined Combined Parent Guarantor Nonguarantor Guarantor Issuer Subsidiaries Subsidiaries Elim. Consolidated --------- ------ ------------ ------------ ----- ------------ Net sales $ -- $ 450,091 $1,555,706 $253,302 $ -- $2,259,099 Cost of sales -- 373,140 1,210,223 186,027 -- 1,769,390 --------- --------- ---------- -------- -------- ---------- Gross profit -- 76,951 345,483 67,275 -- 489,709 Other operating costs: Selling, administrative and other 378 54,811 304,012 29,523 -- 388,724 Restructuring, asset impairments and other charges -- 38,185 7,483 (112) -- 45,556 --------- --------- ---------- -------- -------- ---------- Total other operating costs 378 92,996 311,495 29,411 -- 434,280 --------- --------- ---------- -------- --------- ---------- Operating income (loss) (378) (16,045) 33,988 37,864 -- 55,429 Other loss (income): Interest expense 7,970 75,811 69,199 2,418 (76,506) 78,892 Other expense (income) (8,923) (67,301) 2,547 1,301 76,506 4,130 --------- --------- ---------- -------- -------- ---------- Income (loss) from continuing operations before income taxes and undistributed earnings of subsidiaries 575 (24,555) (37,758) 34,145 -- (27,593) Provision for income taxes -- (1,481) (22,162) 15,307 -- (8,336) --------- --------- ---------- -------- -------- ---------- Income (loss) from continuing operations before undistributed earnings of subsidiaries 575 (23,074) (15,596) 18,838 -- (19,257) Equity in undistributed earnings of subsidiaries (136,792) (113,717) 23,699 -- 226,810 -- --------- --------- ---------- -------- -------- ---------- Income from continuing operations (136,217) (136,791) 8,103 18,838 226,810 (19,257) Loss on discontinued operations -- -- (116,960) -- -- (116,960) --------- --------- ---------- -------- -------- ---------- Net income $(136,217) $(136,791) $ (108,857) $ 18,838 $226,810 $ (136,217) ========= ========= ========== ======== ======== ==========
4 CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS Year Ended December 31, 2000 (in thousands)
Combined Combined Parent Guarantor Nonguarantor Guarantor Issuer Subsidiaries Subsidiaries Elim. Consolidated --------- ------ ------------ ------------ ----- ------------ Net sales $ -- $458,560 $1,658,249 $308,406 $ -- $2,425,215 Cost of sales -- 363,416 1,285,748 229,142 -- 1,878,306 ------- -------- ---------- -------- -------- ---------- Gross profit -- 95,144 372,501 79,264 -- 546,909 Other operating costs: Selling, administrative and other 294 75,804 270,147 42,582 -- 388,827 Restructuring, asset impairments and other charges -- 1,146 20,916 2,921 -- 24,983 ------- -------- ---------- -------- -------- ---------- Total other operating costs 294 76,950 291,063 45,503 -- 413,810 ------- -------- ---------- -------- -------- ---------- Operating income (loss) (294) 18,194 81,438 33,761 -- 133,099 Other expense (income): Interest expense 8,035 78,672 76,752 2,438 (77,528) 88,369 Other expense (income) (8,846) (66,991) (819) 720 77,528 1,592 ------- -------- ---------- -------- -------- ---------- Income (loss) from continuing operations before income taxes and undistributed earnings of subsidiaries 517 6,513 5,505 30,603 -- 43,138 Provision for income taxes -- 2,435 3,473 12,117 -- 18,025 ------- -------- ---------- -------- -------- ---------- Income (loss) from continuing operations before undistributed earnings of subsidiaries 517 4,078 2,032 18,486 -- 25,113 Equity in undistributed earnings of subsidiaries 25,263 23,885 17,203 -- (66,351) -- ------- -------- ---------- -------- -------- ---------- Income from continuing operations 25,780 27,963 19,235 18,486 (66,351) 25,113 Income from discontinued operations -- (2,307) 2,009 1,356 -- 1,058 ------- -------- ---------- -------- -------- ---------- Income before extraordinary items 25,780 25,656 21,244 19,842 (66,351) 26,171 Extraordinary items 1,838 (391) -- -- -- 1,447 ------- -------- ---------- -------- -------- ---------- Net income $27,618 $ 25,265 $ 21,244 $ 19,842 $(66,351) $ 27,618 ======= ======== ========== ======== ======== ==========
5 CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS Year Ended December 31, 1999 (in thousands)
Combined Combined Parent Guarantor Nonguarantor Guarantor Issuer Subsidiaries Subsidiaries Elim. Consolidated --------- ------ ------------ ------------ ----- ------------ Net sales $ -- $366,782 $1,224,653 $295,795 $ -- $1,887,230 Cost of sales -- 284,246 959,118 214,540 -- 1,457,904 ------- -------- ---------- -------- --------- ---------- Gross profit -- 82,536 265,535 81,255 -- 429,326 Other operating costs: Selling, administrative and other 200 63,265 157,369 44,253 -- 265,087 Restructuring, asset impairments and other charges -- -- 1,946 -- -- 1,946 ------- -------- ---------- -------- --------- ---------- Total other operating costs 200 63,265 159,315 44,253 -- 267,033 ------- -------- ---------- -------- --------- ---------- Operating income (loss) (200) 19,271 106,220 37,002 -- 162,293 Other expense (income): Interest expense 8,543 47,431 22,018 4,828 (27,573) 55,247 Other expense (income) (8,846) (19,007) (733) 229 27,573 (784) ------- -------- ---------- -------- --------- ---------- Income (loss) from continuing operations before income taxes and undistributed earnings of subsidiaries 103 (9,153) 84,935 31,945 -- 107,830 Provision for income taxes 39 (3,737) 37,415 9,631 -- 43,348 ------- -------- ---------- -------- --------- ---------- Income (loss) from continuing operations before undistributed earnings of subsidiaries 64 (5,416) 47,520 22,314 -- 64,482 Equity in undistributed earnings of subsidiaries 64,418 69,834 18,742 -- (152,994) -- ------- -------- ---------- -------- --------- ---------- Net income $64,482 $ 64,418 $ 66,262 $ 22,314 $(152,994) $ 64,482 ======= ======== ========== ======== ========= ==========
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