10-Q/A 1 d12702a1e10vqza.htm AMENDMENT TO FORM 10-Q e10vqza
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q/A

     
þ   Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 2003.

OR

     
o   Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from                     to                     

Commission file number 0-25090

STILLWATER MINING COMPANY

(Exact name of registrant as specified in its charter)
     
Delaware
(State or other jurisdiction of
incorporation or organization) 		  81-0480654
(I.R.S. Employer Identification No.)
     
536 East Pike Avenue
Columbus, Montana
(Address of principal executive offices) 		   
59019
(Zip Code)

(406) 322-8700

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:  YES þ NO o

Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2):  YES þ NO o

At February 09, 2004 the company had outstanding 89,888,411 shares of common stock, par value $0.01 per share.

 

STILLWATER MINING COMPANY

FORM 10-Q/A

QUARTER ENDED SEPTEMBER 30, 2003

INDEX

             
        PAGE
  
PART I — FINANCIAL INFORMATION        
 
            
  Item 1. Financial Statements     4  
 
            
PART II —OTHER INFORMATION        
 
            
  Item 6. Exhibits and Reports on Form 8-K     6  
 
            
SIGNATURES     6  
 
            
CERTIFICATION     8  

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EXPLANATORY NOTE

     This Amendment No. 1 (the “Form 10-Q/A”) to our Quarterly Report on Form 10-Q for the period ended September 30, 2003 amends and supplements the Quarterly Report on Form 10-Q filed by the registrant with the Securities and Exchange Commission on October 27, 2003 (the “Original Form 10-Q”). We are filing the Form 10-Q/A because we have revised the year-to-date basic and diluted earnings per share, as well as the pro-forma earnings per share in Note 8 of the Consolidated Financial Statements. It should be noted that this revision relates to an incorrect calculation of weighted average shares outstanding for the year-to-date- earning per share calculation. This revision does not affect any actual reported balances, results of operations, other than as noted above, or cash flows included in the consolidated financial statements. There were no necessary changes to the quarterly information presented. We have amended and restated only such portions of the Original Form 10-Q which are affected by the aforementioned changes. The filing of this Form 10-Q/A shall not be deemed an admission that the Original Form 10-Q, when filed, included any untrue statement of a material fact or omitted to state a material fact necessary to make a statement not misleading.

     Other than the item mentioned above, this Form 10-Q/A does not reflect events occurring after the filing of the Original Form 10-Q or modify or update disclosures on the Original Form 10-Q (including disclosures relating to risks, uncertainties and other factors that may affect our future performance and disclosures relating to known trends and uncertainties affecting our business) in any way. For a description of our business and the risk factors that may affect our business, results of operations and financial condition, including the effects of current business and economic conditions in our industries and in our target markets, we urge you to carefully review and consider the various disclosures we have made in our recent reports filed with the Securities and Exchange Commission.

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PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

The Consolidated Statements of Operations and Comprehensive Income of Stillwater Mining Company set forth in Item 1 of the Original Form 10-Q is hereby amended and restated in its entirety as follows:

Stillwater Mining Company
Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
(in thousands, except per share amounts)

                                 
    Three months ended   Nine months ended
    September 30,
   September 30,
    2003
   2002
   2003
   2002
Revenues
   $ 58,221     $ 65,970     $ 179,751     $ 216,954  
Costs and expenses
                                
Cost of metals sold
     40,726       42,364       133,409       130,028  
Depreciation and amortization
     10,126       10,078       30,569       29,654  
 
    
 		      
 		      
 		      
 		  
Total cost of sales
     50,852       52,442       163,978       159,682  
General and administrative expenses
     3,331       3,853       10,198       10,578  
Norilsk Nickel transaction related expenses
     —       —       3,043       —  
Restructuring costs (reversal)
     —       —       —       (5,938 )
 
    
 		      
 		      
 		      
 		  
Total costs and expenses
     54,183       56,295       177,219       164,322  
Operating income
     4,038       9,675       2,532       52,632  
Other income (expense)
                                
Interest income
     136       263       315       744  
Interest expense
     (4,021 )     (4,050 )     (13,616 )     (12,578 )
 
    
 		      
 		      
 		      
 		  
Income (loss) before income taxes and cumulative effect of accounting change
     153       5,888       (10,769 )     40,798  
Income tax benefit (provision)
     (590 )     (1,229 )     3,702       (8,514 )
Reduction of deferred tax asset for net operating loss carryforwards resulting from ownership change
     (1,191 )     —       (15,170 )     —  
 
    
 		      
 		      
 		      
 		  
Total income tax provision
     (1,781 )     (1,229 )     (11,468 )     (8,514 )
 
    
 		      
 		      
 		      
 		  
Income (loss) before cumulative effect of accounting change
     (1,628 )     4,659       (22,237 )     32,284  
Cumulative effect of change in accounting for asset retirement obligations, net of $264 income tax benefit
     —       —       (408 )     —  
 
    
 		      
 		      
 		      
 		  
Net income (loss)
     (1,628 )     4,659       (22,645 )     32,284  
 
    
 		      
 		      
 		      
 		  
Other comprehensive income (loss), net of tax
     390       (2,215 )     742       (6,092 )
 
    
 		      
 		      
 		      
 		  
Comprehensive income (loss)
   $ (1,238 )   $ 2,444     $ (21,903 )   $ 26,192  
 
    
 		      
 		      
 		      
 		  
Basic earnings (loss) per share
                                
Income (loss) before cumulative effect of accounting change
   $ (0.02 )     0.11     $ (0.36 )   $ 0.76  
Cumulative effect of accounting change
     —       —       (0.01 )     —  
 
    
 		      
 		      
 		      
 		  
Net income (loss)
   $ (0.02 )   $ 0.11     $ (0.37 )   $ 0.76  
 
    
 		      
 		      
 		      
 		  
Diluted earnings (loss) per share
                                
Income (loss) before cumulative effect of accounting change
   $ (0.02 )   $ 0.11     $ (0.36 )   $ 0.75  
Cumulative effect of accounting change
     —       —       (0.01 )     —  
 
    
 		      
 		      
 		      
 		  
Net income (loss)
   $ (0.02 )   $ 0.11     $ (0.37 )   $ 0.75  
 
    
 		      
 		      
 		      
 		  
Weighted average common shares outstanding
                                
Basic
     89,662       43,306       60,399       42,712  
Diluted
     89,662       43,365       60,399       42,851  

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See notes to consolidated financial statements in the Original Form 10-Q, which are incorporated herein by reference, as amended herein.

Note 8 to the financial statements set forth in Item 1 of the Original Form 10-Q is hereby amended and restated in its entirety as follows:

Note 8 — Stock-Based Compensation Costs

     The company has elected to account for stock options and other stock-based compensation awards using the intrinsic value method in accordance with Accounting Principles Board (APB) Opinion No. 25, Accounting for Stock Issued to Employees. Accordingly, because stock options are granted at fair market value, no compensation expense has been recognized for stock options issued under the company’s stock option plans. The company records compensation expense for other stock-based compensation awards over the vesting periods. The company has adopted the disclosure provisions of SFAS No. 123, Accounting for Stock-Based Compensation. Accordingly, the following pro forma disclosures illustrate the effect on net income (loss) and earnings (loss) per share as if the fair value based method of accounting, as set forth in SFAS No. 123, had been applied.

                                 
    Three months ended   Nine months ended
(in thousands)   September 30,
   September 30,
    2003
   2002
   2003
   2002
Net income (loss), as reported
   $ (1,628 )   $ 4,659     $ (22,645 )   $ 32,284  
Add: Stock based compensation expense recognized
     —       118       670       543  
Deduct: Stock based compensation expense determined under fair value based method for stock options, net of tax
     (176 )     (850 )     (1,681 )     (2,739 )
 
    
 		      
 		      
 		      
 		  
Pro forma net income (loss)
   $ (1,804 )   $ 3,927     $ (23,656 )   $ 30,088  
 
    
 		      
 		      
 		      
 		  
Earnings (Loss) Per Share:
                                
Basic — as reported
   $ (0.02 )   $ 0.11     $ (0.37 )   $ 0.76  
 
    
 		      
 		      
 		      
 		  
Basic — pro forma
   $ (0.02 )   $ 0.09     $ (0.39 )   $ 0.70  
 
    
 		      
 		      
 		      
 		  
Diluted — as reported
   $ (0.02 )   $ 0.11     $ (0.37 )   $ 0.75  
 
    
 		      
 		      
 		      
 		  
Diluted — pro forma
   $ (0.02 )   $ 0.09     $ (0.39 )   $ 0.70  
 
    
 		      
 		      
 		      
 		  

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Restricted Stock

     During the first quarter of 2002, the company granted 135,119 shares of restricted stock to certain of its officers and employees. The market value of restricted stock award totaled approximately $2.6 million on the grant date and was recorded as a separate component of stockholders’ equity. The 58,237 restricted shares outstanding at the closing of the Norilsk Nickel transaction vested on the closing date and the $0.6 million of unamortized compensation was recognized as compensation expense in the second quarter of 2003.

PART II — OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K

     (a) Exhibits:

     
Number
   Description
31.1
  Rule 13a-14(a)/15d-14(a) Certification — Chief Executive Officer, dated February 17, 2004
 
    
31.2
  Rule 13a-14(a)/15d-14(a) Certification — Controller and Principal Accounting Officer, dated February 17, 2004
 
    
32.1
  Section 1350 Certification, dated February 17, 2004
 
    
32.2
  Section 1350 Certification, dated February 17, 2004

     (b) Reports on Form 8-K:

      None

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
         
  STILLWATER MINING COMPANY
(Registrant)


 
 		  
Date: February 17, 2004  By:   /s/ FRANCIS R. McALLISTER    
    Francis R. McAllister   
    Chairman and Chief Executive Officer (Principal Executive Officer)   
 
         
Date: February 17, 2004  
  By:   /s/ THOMAS T. ANGELOS    
    Thomas T. Angelos   
    Controller (Principal Accounting Officer)   
 

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EXHIBITS

     
Number
   Description
31.1
  Rule 13a-14(a)/15d-14(a) Certification — Chief Executive Officer, dated February 17, 2004
 
    
31.2
  Rule 13a-14(a)/15d-14(a) Certification — Controller and Principal Accounting Officer, dated February 17, 2004
 
    
32.1
  Section 1350 Certification, dated February 17, 2004
 
    
32.2
  Section 1350 Certification, dated February 17, 2004

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