2014

Norcraft Companies, L.P. Reports Fourth Quarter And Fiscal 2012 Results

EAGAN, Minn., March 26, 2013 /PRNewswire/ -- Norcraft Companies, L.P. (Norcraft) today reported financial results for the fourth quarter and fiscal year ended December 31, 2012.

FINANCIAL RESULTS

Fourth Quarter of Fiscal 2012 Compared with Fourth Quarter of Fiscal 2011

Net sales increased $8.8 million, or 14.2%, from $62.4 million for the fourth quarter of 2011 compared to $71.2 million for the same quarter of 2012. Income from operations decreased $0.6 million, or 14.7%, from $3.8 million for the fourth quarter of 2011 compared to $3.2 million for the same quarter of 2012. Net loss increased $0.5 million, or 14.4%, from $3.4 million for the fourth quarter of 2011 to $3.9 million in the same quarter of 2012.

EBITDA (as defined in the attached table) was $7.2 million for the fourth quarter of 2011 compared to $6.6 million for the same quarter of 2012.

Fiscal 2012 Compared with Fiscal 2011

Net sales increased $19.5 million, or 7.2%, from $269.3 million for fiscal 2011 compared to $288.8 million for fiscal 2012. Income from operations decreased by $3.0 million, or 13.4%, from $22.3 million for fiscal 2011 compared to $19.3 million for fiscal 2012. Net loss increased $5.9 million, or 156.2%, from $3.7 million for fiscal 2011 to $9.6 million in fiscal 2012.

EBITDA (as defined in the attached table) was $35.8 million for fiscal 2011 compared to $32.7 million for fiscal 2012.

"We are encouraged by the growth we have seen in our industry and the economy; the impact of which can be seen in our sales. But, with the competitiveness of the industry, much of the discounting and sales promotions have continued and our margins were negatively impacted. We are currently carefully adjusting our pricing, promotional activities and costs and expect future margins to improve along with sales," commented President and CEO, Mark Buller.

CONFERENCE CALL

Norcraft has scheduled a conference call on Thursday, March 28, 2013 at 10:00 a.m. Eastern Time. To participate, dial 877-352-9693 and use the conference ID number 25872414. A telephonic replay will be available by calling 855-859-2056 and using the conference ID number 25872414.

GENERAL

Norcraft Companies is a leader in manufacturing, assembling and finishing kitchen and bathroom cabinetry in the U.S. and parts of Canada. We provide our customers with a single source for a broad range of high-quality cabinetry, including stock, semi-custom and custom cabinets manufactured in both framed and frameless, or full access construction. We market our products through seven main brands: Mid Continent Cabinetry, Norcraft Cabinetry, UltraCraft, StarMark Cabinetry, Fieldstone Cabinetry, Brookwood and Urban Effects.

Contact:

Leigh E. Ginter


Chief Financial Officer


leigh.ginter@norcraftcompanies.com


(651) 234-3315

-Selected Financial Data Tables Follow-

 

Norcraft Companies, L.P.

Consolidated Balance Sheets

(dollar amounts in thousands)

(unaudited)


ASSETS


December 31,

2012


2011

Current assets:





Cash and cash equivalents


$

23,019



$

24,185


Trade accounts receivable, net


20,264



20,092


Inventories


19,760



17,503


Prepaid and other current assets


2,220



1,835


Total current assets


65,263



63,615


Non-current assets:





Property, plant and equipment, net


25,961



27,434


Goodwill


88,484



88,479


Intangible assets, net


70,148



77,732


Display cabinets, net


6,019



5,842


Other assets


268



568


Total non-current assets


190,880



200,055


Total assets


$

256,143



$

263,670







LIABILITIES AND MEMBER'S EQUITY (DEFICIT)





Current liabilities:





Accounts payable


$

7,133



$

6,566


Accrued expenses


14,893



13,775


Total current liabilities


22,026



20,341


Non-current liabilities:





Long-term debt


240,000



240,000


Unamortized premium on bonds payable


127



166


Other liabilities


48



108


Total non-current liabilities


240,175



240,274


Total liabilities


262,201



260,615


Commitments and contingencies


-



-


Member's equity (deficit):





Member's equity (deficit)


(7,686)



1,646


Accumulated other comprehensive income


1,628



1,409


Total member's equity (deficit)


(6,058)



3,055


Total liabilities and member's equity (deficit)


$

256,143



$

263,670


 

 

Norcraft Companies, L.P.

Consolidated Statements of Comprehensive Loss

(dollar amounts in thousands)

(unaudited)



Three months ended December 31,


Year Ended

December 31,


2012


2011


2012


2011

Net sales

$

71,232



$

62,362



$

288,782



$

269,305


Cost of sales

54,595



45,630



215,274



195,853


Gross profit

16,637



16,732



73,508



73,452


Selling, general and administrative expenses

13,415



12,956



54,144



51,099


Income from operations

3,222



3,776



19,364



22,353


Other expense:








Interest expense, net

6,447



6,443



25,819



23,549


Amortization of deferred financing costs

780



788



3,120



2,454


Other expense, net

(77)



(22)



(16)



81


Total other expense

7,150



7,209



28,923



26,084


Net loss

(3,928)



(3,433)



(9,559)



(3,731)










Other comprehensive income (loss):








Foreign currency translation adjustment

(221)



87



219



(295)


Total other comprehensive income (loss)

(221)



87



219



(295)


Comprehensive loss

$

(4,149)



$

(3,346)



$

(9,340)



$

(4,026)


 

 

Norcraft Companies, L.P.

Consolidated Statement of Cash Flows

(dollar amounts in thousands)



Year Ended December 31,

2012


2011

Cash flows from operating activities:




Net loss

$

(9,559)



$

(3,731)


Adjustments to reconcile net loss to net cash provided by operating activities:




Depreciation and amortization of property, plant and equipment

4,723



4,935


Amortization:




Customer relationships

4,467



4,467


Deferred financing costs

3,120



2,454


Display cabinets

4,113



4,005


Discount amortization/accreted interest

(39)



180


Provision for uncollectible accounts receivable

168



236


Provision for obsolete and excess inventory

377



(280)


Provision for warranty claims

3,071



3,143


Stock compensation expense

187



183


Loss (gain) on disposal of assets

(2)



8


Change in operating assets and liabilities:




Trade accounts receivable

(257)



(2,442)


Inventories

(2,597)



99


Prepaid expenses

(385)



(276)


Other assets

301



183


Accounts payable and accrued expenses

(1,482)



(6,421)


Net cash provided by operating activities

6,206



6,743


Cash flows from investing activities:




Proceeds from sale of property and equipment

13



20


Purchase of property, plant and equipment

(3,135)



(2,586)


Additions to display cabinets

(4,290)



(4,831)


Net cash used in investing activities

(7,412)



(7,397)


Cash flows from financing activities:




Borrowings on senior secured second lien notes payable



62,400


Payment of financing costs

(3)



(8,274)


Proceeds from issuance of member interests

50



139


Distributions to member

(10)



(58,015)


Net cash provided by (used in) financing activities

37



(3,750)


Effect of exchange rates on cash and cash equivalents

3



(68)


Net increase (decrease) in cash and cash equivalents

(1,166)



(4,472)


Cash and cash equivalents, beginning of the period

24,185



28,657


Cash and cash equivalents, end of period

$

23,019



$

24,185


Supplemental disclosure of cash flow information:




Cash paid during the period for interest

$

25,433



$

24,502


 

 

Norcraft Companies, L.P.

Reconciliation of Net Loss to EBITDA

(dollar amounts in thousands)


EBITDA is net loss before interest expense, income tax expense, depreciation and amortization. We believe EBITDA is useful to investors in evaluating our operating performance compared to that of other companies in our industry, as its calculation eliminates the effects of financing, income taxes and the accounting effects of capital spending, as these items may vary for different companies for reasons unrelated to overall operating performance. We also believe this financial metric provides information relevant to investors regarding our ability to service and/or incur debt. EBITDA is not a presentation made in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). Accordingly, when analyzing our operating performance, investors should not consider EBITDA in isolation or as a substitute for net loss, cash flows from operating activities or other income statement or cash flow statement data prepared in accordance with U.S. GAAP. Our calculation of EBITDA is not necessarily comparable to those of other similarly titled measures reported by other companies. The calculation of EBITDA is shown below:



Three Months Ended

December 31,


Year Ended

December 31,


2012


2011


2012


2011

Net loss

$

(3,928)



$

(3,433)



$

(9,559)



$

(3,731)


Interest expense, net

6,447



6,443



25,819



23,549


Depreciation

1,161



1,161



4,723



4,935


Amortization of deferred financing costs

780



788



3,120



2,454


Amortization of customer relationships

1,117



1,117



4,467



4,467


Display cabinet amortization

1,060



1,117



4,113



4,005


State taxes

(79)



(17)



(26)



87










EBITDA

$

6,558



$

7,176



$

32,657



$

35,766










FORWARD LOOKING STATEMENTS AND INFORMATION

Statements in this press release regarding activities, events or developments that management expects, believes or anticipates will or may occur in the future are forward looking statements. Forward looking statements may give management's current expectations and projections relating to the financial condition, results of operations, plans, objectives, future performance and business of the company. You can identify these statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as ''anticipate,'' ''estimate,'' ''expect,'' ''project,'' ''intend,'' ''plan,'' ''believe'' and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events.

These forward looking statements are based on management's expectations and beliefs concerning future events affecting the company. They are subject to uncertainties and factors relating to the company's operations and business environment, all of which are difficult to predict and many of which are beyond the company's control. Although management believes that the expectations reflected in its forward looking statements are reasonable, management does not know whether its expectations will prove correct. Such expectations can be affected by inaccurate assumptions that management might make or by known or unknown risks and uncertainties. Many factors that could cause actual results to differ materially from these forward looking statements including, but not limited to, the risks outlined under Part I, Item 1A, "Risk Factors,'' in the Annual Report on Form 10-K filed by the company with the Securities and Exchange Commission.

Because of these factors, investors should not place undue reliance on any of these forward looking statements. Further, any forward looking statement speaks only as of the date on which it is made and, except as required by law, the company undertakes no obligation to update any forward looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. 

SOURCE Norcraft Companies, L.P.




Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.