Associated Materials, LLC Reports Fourth Quarter and Year-End Results
CUYAHOGA FALLS, Ohio, April 13, 2011 /PRNewswire/ -- Associated Materials, LLC (the "Company") today announced results for the fourth quarter and fiscal year ended January 1, 2011. Financial highlights are as follows:
- Net sales for the fourth quarter ended January 1, 2011 were $305.1 million, an 11.3% increase from net sales of $274.0 million for the same period in 2009.
- Adjusted EBITDA was $33.7 million for the fourth quarter of 2010 compared to $33.5 million for the same period in 2009.
- Net sales for the fiscal year ended January 1, 2011 were $1,167.2 million, an 11.6% increase from net sales of $1,046.1 million for the same period in 2009.
- Adjusted EBITDA was $133.8 million for the fiscal year ended January 1, 2011 compared to $116.8 million for the same period in 2009.
As previously announced, investment funds affiliated with Hellman & Friedman LLC ("H&F") completed their purchase of the Company on October 13, 2010. In connection with the consummation of the purchase, the Company's direct and indirect parent entities, Associated Materials Holdings, LLC ("Holdings"), AMH Holdings, LLC ("AMH") and AMH Holdings II, Inc. ("AMH II"), were merged with and into the Company, with the Company surviving such merger as a wholly-owned subsidiary of AMH Intermediate Holdings Corp., which is a wholly-owned subsidiary of AMH Investment Holdings Corp. (the "Merger"). Approximately 98% of the capital stock of AMH Investment Holdings Corp. ("Parent") is owned by investment funds affiliated with H&F.
Upon consummation of the Merger, the holders of AMH II equity (including "in-the-money" stock options and warrants outstanding immediately prior to the consummation of the Merger), received consideration consisting of approximately $600 million in cash, less (1) $16.2 million paid to affiliates of Harvest Partners and Investcorp in accordance with the management services agreement with Harvest Partners and (2) $26.2 million of transaction bonuses paid to senior management and certain other employees in connection with the Merger. Immediately prior to the consummation of the Merger, all outstanding shares of AMH II preferred stock were converted into shares of AMH II common stock.
In connection with the consummation of the Merger, the Company repaid and terminated the prior ABL Facility and repaid the 20% Senior Notes due 2014 (the "20% notes"). In addition, the Company called and discharged its obligations under the indentures governing the 9.875% Senior Secured Second Lien Notes due 2016 (the "9.875% notes") and the 11 1/4% Senior Discount Notes due 2014 (the "11.25% notes").
The Merger and the repayment of the 9.875% notes, the 11.25% notes and the 20% notes and related expenses were financed with (1) $553.5 million in cash contributed by Parent (which included $8.5 million invested by management), (2) the issuance of $730.0 million of 9.125% Senior Secured Notes due 2017 (the "9.125% notes"), (3) $73.0 million in cash drawn under the Company's new $225.0 million asset-based lending facility (the "ABL facilities") and (4) $45.9 million of cash from the balance sheet.
Tom Chieffe, President and Chief Executive Officer, commented, “We are very pleased to report improved sales for both the fourth quarter and our fiscal year 2010 when compared to the prior year. This sales increase is accompanied by an improvement in adjusted EBITDA for the quarter and year, which is a result of higher volume and continued emphasis on cost reduction programs which helped offset the impact of inflationary pressures. During the fourth quarter, we experienced significant sales growth in our window offerings and third-party complementary products as we continue to offer third-party products through additional supply centers. With our new ownership and debt structure, we are positioned to continue to expand our customer base across all existing product categories through investments in new supply centers, capital and personnel. The growth initiatives and investments we are making in the Company, accompanied by a focus on continuous improvement and cost reduction initiatives, forms a solid foundation for sustained profitable growth, particularly once macroeconomic conditions improve.”
Operating results prior to the Merger completed on October 13, 2010 have been presented to reflect the financial results of the Company and its former direct and indirect parent companies, Holdings, AMH and AMH II (together, the "Predecessor"). The financial statements for the period October 13, 2010 to January 1, 2011 have been presented to reflect the financial results of the Company subsequent to the Merger (the "Successor"). The Company's results of operations prior to the date of the Merger include the activity and results of its former direct and indirect parent companies, which principally consisted of borrowings and related interest expense, and are presented as the results of the Predecessor. The results of operations, including the Merger and results thereafter, are presented as the results of the Successor.
Earnings Conference Call
Management will host its fourth quarter and year-end earnings conference call on Wednesday, April 13th at 11 a.m. Eastern Time. The toll free dial-in number for the call is (866) 469-0038 and the conference call identification number is 57997470. A replay of the call will be available through April 20th by dialing (800) 642-1687 and entering the above conference call identification number. The conference call and replay will also be available via webcast, which along with this news release can be accessed via the Company's web site at http://www.associatedmaterials.com.
ASSOCIATED MATERIALS, LLC UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
Quarter-to-Date | Year-to-Date | ||||||||||||||||
Quarters Ended | Years Ended | ||||||||||||||||
October 3, 2010 to October 12, 2010 | October 13, 2010 to January 1, 2011 | January 1, 2011 | January 2, 2010 | January 3, 2010 to October 12, 2010 | October 13, 2010 to January 1, 2011 | January 1, 2011 | January 2, 2010 | ||||||||||
Predecessor | Successor | Combined | Predecessor | Predecessor | Successor | Combined | Predecessor | ||||||||||
(in thousands) | |||||||||||||||||
Net sales | $ 35,832 | $ 269,249 | $ 305,081 | $ 273,999 | $ 897,938 | $ 269,249 | $ 1,167,187 | $ 1,046,107 | |||||||||
Cost of sales | 27,739 | 222,737 | 250,476 | 199,626 | 658,509 | 222,737 | 881,246 | 765,691 | |||||||||
Gross profit | 8,093 | 46,512 | 54,605 | 74,373 | 239,429 | 46,512 | 285,941 | 280,416 | |||||||||
Selling, general and administrative expenses | 6,644 | 53,543 | 60,187 | 51,492 | 159,448 | 53,543 | 212,991 | 204,610 | |||||||||
Merger costs: | |||||||||||||||||
Transaction costs | 36,964 | 7,411 | 44,375 | - | 38,416 | 7,411 | 45,827 | - | |||||||||
Transaction bonuses | 26,231 | - | 26,231 | - | 26,231 | - | 26,231 | - | |||||||||
Stock option compensation | 38,014 | - | 38,014 | - | 38,014 | - | 38,014 | - | |||||||||
Manufacturing restructuring costs | - | - | - | - | - | - | - | 5,255 | |||||||||
(Loss) income from operations | (99,760) | (14,442) | (114,202) | 22,881 | (22,680) | (14,442) | (37,122) | 70,551 | |||||||||
Interest expense, net | 2,595 | 16,120 | 18,715 | 18,261 | 58,759 | 16,120 | 74,879 | 77,352 | |||||||||
(Gain) loss on debt extinguishment | (15,201) | 25,129 | 9,928 | (1,614) | (15,201) | 25,129 | 9,928 | (29,665) | |||||||||
Foreign currency (gain) loss | (163) | 771 | 608 | (74) | (184) | 771 | 587 | (184) | |||||||||
(Loss) income before income taxes | (86,991) | (56,462) | (143,453) | 6,308 | (66,054) | (56,462) | (122,516) | 23,048 | |||||||||
Income tax (benefit) provision | (4,118) | 8,553 | 4,435 | (6,671) | 5,220 | 8,553 | 13,773 | 2,390 | |||||||||
Net income (loss) | $ (82,873) | $ (65,015) | $ (147,888) | $ 12,979 | $ (71,274) | $ (65,015) | $ (136,289) | $ 20,658 | |||||||||
Other Data: | |||||||||||||||||
EBITDA (a) | $ (83,668) | $ (29,844) | $ (113,512) | $ 30,159 | $ 10,287 | $ (29,844) | $ (19,557) | $ 122,569 | |||||||||
Adjusted EBITDA (a) | 3,074 | 30,583 | 33,657 | 33,492 | 103,259 | 30,583 | 133,842 | 116,830 | |||||||||
(a) | EBITDA is calculated as net income plus interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted to reflect certain adjustments that are used in calculating covenant compliance under the Company's revolving credit agreement and the indenture governing the 9.125% notes. The Company considers EBITDA and Adjusted EBITDA to be important indicators of its operational strength and performance of the business. The Company has included Adjusted EBITDA because it is a key financial measure used by management to (i) assess the Company's ability to service its debt or incur debt and meet capital expenditure requirements; (ii) internally measure the Company's operating performance; and (iii) determine the Company's incentive compensation programs. In addition, the Company's ABL facilities and the indenture governing the 9.125% notes have certain covenants that apply ratios utilizing this measure of Adjusted EBITDA. EBITDA and Adjusted EBITDA have not been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). Adjusted EBITDA as presented by the Company may not be comparable to similarly titled measures reported by other companies. EBITDA and Adjusted EBITDA are not measures determined in accordance with GAAP and should not be considered as an alternative to, or more meaningful than, net income (as determined in accordance with GAAP) as a measure of the Company's operating results or net cash provided by operating activities (as determined in accordance with GAAP) as a measure of the Company's liquidity. | |
Prior year Adjusted EBITDA amounts are presented to conform to the current year's presentation of the computation of Adjusted EBITDA, which is in conformity with the Adjusted EBITDA as defined in the Company's revolving credit agreement and the indenture governing the 9.125% notes. | ||
The reconciliation of the Company's net income (loss) to EBITDA and Adjusted EBITDA is as follows:
Quarter-to-Date | Year-to-Date | |||||||||||||||
Quarters Ended | Years Ended | |||||||||||||||
October 3, 2010 to October 12, 2010 | October 13, 2010 to January 1, 2011 | January 1, 2011 | January 2, 2010 | January 3, 2010 to October 12, 2010 | October 13, 2010 to January 1, 2011 | January 1, 2011 | January 2, 2010 | |||||||||
Predecessor | Successor | Combined | Predecessor | Predecessor | Successor | Combined | Predecessor | |||||||||
(in thousands) | ||||||||||||||||
Net income (loss) | $ (82,873) | $ (65,015) | $ (147,888) | $ 12,979 | $ (71,274) | $ (65,015) | $ (136,289) | $ 20,658 | ||||||||
Interest expense, net | 2,595 | 16,120 | 18,715 | 18,261 | 58,759 | 16,120 | 74,879 | 77,352 | ||||||||
Income tax (benefit) provision | (4,118) | 8,553 | 4,435 | (6,671) | 5,220 | 8,553 | 13,773 | 2,390 | ||||||||
Depreciation and amortization | 728 | 10,498 | 11,226 | 5,590 | 17,582 | 10,498 | 28,080 | 22,169 | ||||||||
EBITDA | (83,668) | (29,844) | (113,512) | 30,159 | 10,287 | (29,844) | (19,557) | 122,569 | ||||||||
Merger costs (b) | 102,015 | 7,411 | 109,426 | - | 103,467 | 7,411 | 110,878 | - | ||||||||
Net (gain) loss on debt extinguishment (c) | (15,201) | 25,129 | 9,928 | (1,614) | (15,201) | 25,129 | 9,928 | (29,665) | ||||||||
Purchase accounting related adjustments (d) | - | 21,427 | 21,427 | - | - | 21,427 | 21,427 | - | ||||||||
Management fees (e) | - | - | - | 353 | 681 | - | 681 | 1,400 | ||||||||
Restructuring costs (f) | - | - | - | 201 | 88 | - | 88 | 5,762 | ||||||||
Impairments and write-offs (g) | - | 1,230 | 1,230 | 519 | 43 | 1,230 | 1,273 | 1,130 | ||||||||
Employee Termination costs (h) | - | 1,397 | 1,397 | (533) | - | 1,397 | 1,397 | 1,182 | ||||||||
Bank fees (i) | - | - | - | 24 | 56 | - | 56 | 142 | ||||||||
Other normalizing and unusual items (j) | 91 | 3,062 | 3,153 | 3,097 | 3,419 | 3,062 | 6,481 | 6,505 | ||||||||
Foreign currency (gain) loss (k) | (163) | 771 | 608 | (74) | (184) | 771 | 587 | (184) | ||||||||
Proforma cost savings (l) | - | - | - | 1,360 | 603 | - | 603 | 7,989 | ||||||||
Adjusted EBITDA | $ 3,074 | $ 30,583 | $ 33,657 | $ 33,492 | $ 103,259 | $ 30,583 | $ 133,842 | $ 116,830 | ||||||||
(b) | Represents the following: | |
Quarter-to-Date | Year-to-Date | |||||||||||||||
Quarters Ended | Years Ended | |||||||||||||||
October 3, 2010 to October 12, 2010 | October 13, 2010 to January 1, 2011 | January 1, 2011 | January 2, 2010 | January 3, 2010 to October 12, 2010 | October 13, 2010 to January 1, 2011 | January 1, 2011 | January 2, 2010 | |||||||||
Predecessor | Successor | Combined | Predecessor | Predecessor | Successor | Combined | Predecessor | |||||||||
(in thousands) | ||||||||||||||||
Transaction costs (i) | $ 36,964 | $ 7,411 | $ 44,375 | $ - | $ 38,416 | $ 7,411 | $ 45,827 | $ - | ||||||||
Transaction bonuses (ii) | 26,231 | - | 26,231 | - | 26,231 | - | 26,231 | - | ||||||||
Stock option compensation (iii) | 38,014 | - | 38,014 | - | 38,014 | - | 38,014 | - | ||||||||
Stock warrants expense (iv) | 806 | - | 806 | - | 806 | - | 806 | - | ||||||||
Total | $ 102,015 | $ 7,411 | $ 109,426 | $ - | $ 103,467 | $ 7,411 | $ 110,878 | $ - | ||||||||
(i) | Predecessor expenses include investment banking, legal and other expenses, including $16.2 million of expense accrued and payable to affiliates of Investcorp and Harvest Partners in connection with the amended and restated management agreement between Harvest Partners and the Company. Successor expenses primarily include fees paid related to due diligence activities. | ||
(ii) | Represents transaction bonuses paid to senior management and certain employees in connection with the Merger. | ||
(iii) | Represents stock option compensation expense recognized as a result of the modification of certain stock option awards in connection with the Merger and the fair value of an in-the-money stock option award granted immediately prior to the Merger. | ||
(iv) | Represents expense for stock warrants, which were redeemed for cash in connection with the Merger. The expense associated with the stock warrants has been recognized in the statement of operations as a reduction in net sales in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 505-50, Equity-Based Payments to Non-Employees. | ||
(c) | Expenses recorded by the Predecessor for the periods ended October 12, 2010 include the write-off of deferred financing fees associated with the prior ABL Facility and the write-off of an accrual for all future interest payments on the 20% notes, which was recorded during the year ended January 2, 2010, in accordance with FASB ASC 470-60, Troubled Debt Restructurings by Debtors. Expenses recorded by the Successor include the loss on the extinguishment of the 9.875% notes and the 11.25% notes totaling $13.6 million and fees of $11.5 million related to an interim financing facility, which was negotiated, but ultimately not utilized, in conjunction with the financing for the Merger. | |
The net gain on debt extinguishment recognized during the year ended January 2, 2010 represents a $29.6 million gain on troubled debt restructuring of the 13.625% notes and an $8.9 million gain on debt extinguishment in connection with the purchase of $15.0 million par value of the 11.25% notes directly from the noteholders for approximately $5.9 million, partially offset by debt extinguishment costs of $8.8 million incurred with the redemption of the 9.75% notes and the 15% notes and the issuance of the 9.875% notes. | ||
(d) | Represents the elimination of the impact of adjustments related to purchase accounting recorded as a result of the Merger, which include the following: $23.1 million of amortization for the step-up in basis of inventory, partially offset by $0.8 million of other purchase accounting related adjustments to inventory included in cost of sales, $0.6 million of reduced pension expense as a result of purchase accounting adjustments and amortization related to net liabilities recorded in purchase accounting for the fair value of certain leased facilities and warranty liabilities of $0.1 million and $0.2 million, respectively. | |
(e) | Represents amortization of a prepaid management fee paid to Investcorp International Inc. in connection with a December 2004 recapitalization transaction and annual management fees paid to Harvest Partners. | |
(f) | Represents the following: | |
Quarter-to-Date | Year-to-Date | |||||||||||||||
Quarters Ended | Years Ended | |||||||||||||||
October 3, 2010 to October 12, 2010 | October 13, 2010 to January 1, 2011 | January 1, 2011 | January 2, 2010 | January 3, 2010 to October 12, 2010 | October 13, 2010 to January 1, 2011 | January 1, 2011 | January 2, 2010 | |||||||||
Predecessor | Successor | Combined | Predecessor | Predecessor | Successor | Combined | Predecessor | |||||||||
(in thousands) | ||||||||||||||||
Manufacturing restructuring costs (i) | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ 5,255 | ||||||||
Tax restructuring charges (ii) | - | - | - | 201 | 88 | - | 88 | 507 | ||||||||
Total | $ - | $ - | $ - | $ 201 | $ 88 | $ - | $ 88 | $ 5,762 | ||||||||
(i) | During 2008, the Company relocated a portion of its vinyl siding production from Ennis, Texas to West Salem, Ohio and Burlington, Ontario. In connection with this change, during 2009, the Company discontinued the use of the warehouse facility adjacent to the Ennis manufacturing plant. Expenses during 2009 represent lease costs associated with the discontinued use of the warehouse facility adjacent to the Ennis manufacturing plant. | ||
(ii) | Represents legal and accounting fees in connection with tax restructuring projects. | ||
(g) | Represents impairments and write-offs of assets other than by sale principally including (i) $1.2 million incurred during the periods ended January 1, 2011 and $0.6 million incurred during the year ended January 2, 2010 related to issues with a new product line, and the ultimate discontinuation of the product line in the fourth quarter of 2010, and (ii) $0.4 million expensed during the quarter and year ended January 2, 2010 for software write-offs due to changes in our information technology and business strategies during 2009. | |
(h) | Represents separation costs, including payroll taxes and certain benefits, as follows: (i) $1.4 million for the periods ended January 2, 2011 related to the termination of Mr. Franco, the Company's former President of AMI Distribution, and (ii) $1.2 million for the year ended January 2, 2010 related to a workforce reduction in connection with our overall cost reduction initiatives. | |
(i) | Represents bank audit fees incurred under the Company's prior ABL Facility and new ABL facilities. | |
(j) | Represents the following: | |
Quarter-to-Date | Year-to-Date | |||||||||||||||
Quarters Ended | Years Ended | |||||||||||||||
October 3, 2010 to October 12, 2010 | October 13, 2010 to January 1, 2011 | January 1, 2011 | January 2, 2010 | January 3, 2010 to October 12, 2010 | October 13, 2010 to January 1, 2011 | January 1, 2011 | January 2, 2010 | |||||||||
Predecessor | Successor | Combined | Predecessor | Predecessor | Successor | Combined | Predecessor | |||||||||
(in thousands) | ||||||||||||||||
Professional fees (i) | $ 77 | $ 2,973 | $ 3,050 | $ 316 | $ 2,734 | $ 2,973 | $ 5,707 | $ 1,285 | ||||||||
Accretion of lease liability (ii) | 14 | 89 | 103 | 73 | 296 | 89 | 385 | 76 | ||||||||
Excess severance costs (iii) | - | - | - | - | 389 | - | 389 | 910 | ||||||||
Normalized bonus expense (iv) | - | - | - | 2,052 | - | - | - | - | ||||||||
Unusual bad debt expense (v) | - | - | - | 656 | - | - | - | 4,234 | ||||||||
Total | $ 91 | $ 3,062 | $ 3,153 | $ 3,097 | $ 3,419 | $ 3,062 | $ 6,481 | $ 6,505 | ||||||||
(i) | Represents management's estimate of unusual or non-recurring consulting fees primarily associated with cost savings initiatives. | ||
(ii) | Represents accretion on the liability recorded at present value for future lease costs in connection with the Company's warehouse facility adjacent to the Ennis manufacturing, which was discontinued using during 2009. | ||
(iii) | Represents management's estimates for excess severance expense due primarily to unusual changes within senior management. | ||
(iv) | Represents management's estimate of bonus expense in excess of normalized bonus levels accrued disproportionately in the second half of 2009 based on the timing of revenue and earnings. | ||
(v) | Represents management's estimate of unusual bad debt expense based on historical averages from 2004 through 2008. | ||
(k) | Represents currency transaction/translation (gains)/losses, including on currency exchange hedging agreements. | |
(l) | Represents the following: | |
Quarter-to-Date | Year-to-Date | |||||||||||||||
Quarters Ended | Years Ended | |||||||||||||||
October 3, 2010 to October 12, 2010 | October 13, 2010 to January 1, 2011 | January 1, 2011 | January 2, 2010 | January 3, 2010 to October 12, 2010 | October 13, 2010 to January 1, 2011 | January 1, 2011 | January 2, 2010 | |||||||||
Predecessor | Successor | Combined | Predecessor | Predecessor | Successor | Combined | Predecessor | |||||||||
(in thousands) | ||||||||||||||||
Savings from Headcount reductions (i) | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ 2,975 | ||||||||
Insourcing glass Production savings (ii) | - | - | - | 1,028 | 462 | - | 462 | 3,735 | ||||||||
Procurement savings (iii) | - | - | - | 332 | 141 | - | 141 | 1,279 | ||||||||
Total | $ - | $ - | $ - | $ 1,360 | $ 603 | $ - | $ 603 | $ 7,989 | ||||||||
(i) | Represents savings from headcount reductions as a result of general economic conditions. | ||
(ii) | Represents management's estimates of cost savings that could have resulted from producing glass in-house at the Company's Cuyahoga Falls, Ohio window facility had such production started on January 4, 2009. | ||
(iii) | Represents management's estimate of cost savings that could have resulted from entering into a leveraged procurement program with an outside consulting firm had such program been entered into on January 4, 2009. | ||
Net Sales by Principal Product Offering
Quarter-to-Date | Year-to-Date | |||||||||||||||
Quarters Ended | Years Ended | |||||||||||||||
October 3, 2010 to October 12, 2010 | October 13, 2010 to January 1, 2011 | January 1, 2011 | January 2, 2010 | January 3, 2010 to October 12, 2010 | October 13, 2010 to January 1, 2011 | January 1, 2011 | January 2, 2010 | |||||||||
Predecessor | Successor | Combined | Predecessor | Predecessor | Successor | Combined | Predecessor | |||||||||
(in thousands) | ||||||||||||||||
Vinyl windows | $ 13,213 | $ 118,778 | $ 131,991 | $ 112,576 | $ 316,102 | $ 118,778 | $ 434,880 | $ 389,293 | ||||||||
Vinyl siding products | 6,591 | 41,504 | 48,095 | 49,099 | 181,904 | 41,504 | 223,408 | 210,212 | ||||||||
Metal products | 5,702 | 35,226 | 40,928 | 40,732 | 147,321 | 35,226 | 182,547 | 167,749 | ||||||||
Third-party manufactured products | 8,770 | 55,511 | 64,281 | 52,352 | 196,587 | 55,511 | 252,098 | 210,806 | ||||||||
Other products and services | 1,556 | 18,230 | 19,786 | 19,240 | 56,024 | 18,230 | 74,254 | 68,047 | ||||||||
Total | $ 35,832 | $ 269,249 | $ 305,081 | $ 273,999 | $ 897,938 | $ 269,249 | $1,167,187 | $ 1,046,107 | ||||||||
ASSOCIATED MATERIALS, LLC UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) | |||
January 1, 2011 | January 2, 2010 | ||
Successor | Predecessor | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 13,789 | $ 55,905 | |
Accounts receivable, net | 118,408 | 114,355 | |
Inventories | 146,215 | 115,394 | |
Income taxes receivable | 3,291 | 3,905 | |
Deferred income taxes | — | 4,921 | |
Prepaid expenses | 8,995 | 8,945 | |
Total current assets | 290,698 | 303,425 | |
Property, plant and equipment, net | 137,862 | 109,037 | |
Goodwill | 566,423 | 231,263 | |
Other intangible assets, net | 731,014 | 96,081 | |
Other assets | 29,907 | 22,323 | |
Total assets | $ 1,755,904 | $ 762,129 | |
LIABILITIES AND MEMBER'S EQUITY / STOCKHOLDERS' (DEFICIT) | |||
Current liabilities: | |||
Accounts payable | $ 90,190 | $ 87,580 | |
Accrued liabilities | 79,319 | 73,087 | |
Deferred income taxes | 19,989 | 2,312 | |
Income taxes payable | 2,506 | 1,112 | |
Total current liabilities | 192,004 | 164,091 | |
Deferred income taxes | 144,668 | 36,557 | |
Other liabilities | 132,755 | 61,326 | |
Long-term debt | 788,000 | 675,360 | |
Commitments and contingencies | |||
Convertible preferred stock, $.01 par value | — | 150,000 | |
Member's equity / stockholders' (deficit) | 498,477 | (325,205) | |
Total liabilities and member's equity / stockholders' (deficit) | $ 1,755,904 | $ 762,129 | |
Company Description
Associated Materials, LLC is a leading, vertically integrated manufacturer and distributor of exterior residential building products in the United States and Canada. The Company produces a comprehensive offering of exterior building products, including vinyl windows, vinyl siding, aluminum trim coil, and aluminum and steel siding and accessories, which are produced at the Company's 11 manufacturing facilities. The Company also sells complementary products that are manufactured by third parties, such as roofing materials, insulation, exterior doors, vinyl siding in a shake and scallop design and installation equipment and tools that are primarily distributed through its company-operated supply centers. The Company's products are sold primarily through its extensive dual-distribution network, consisting of 119 company-operated supply centers, through which it sells directly to its contractor customers, and the Company's direct sales channel, through which it sells to approximately 250 independent distributors and dealers, who then sell to their customers. For more information, please visit the Company's website at http://www.associatedmaterials.com.
Forward-Looking Statements
This press release contains certain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) relating to the Company that are based on the beliefs of the Company's management. When used in this press release, the words "may," "will," "should," "expect," "intend," "estimate," "anticipate," "believe," "predict," "potential" or "continue" or similar expressions identify forward-looking statements. These statements are subject to certain risks and uncertainties. Such statements reflect the current views of the Company's management. The following factors, and others which are discussed in the Company's filings with the Securities and Exchange Commission, are among those that may cause actual results to differ materially from the forward-looking statements: changes in the home building and remodeling industries, general economic conditions, interest rates, foreign currency exchange rates, changes in the availability of consumer credit, employment trends, levels of consumer confidence and spending, consumer preferences, changes in raw material costs and availability, market acceptance of price increases, changes in national and regional trends in home remodeling and new housing starts, changes in weather conditions, the Company's ability to comply with certain financial covenants in its ABL facilities and indentures governing its 9.125% notes, increases in levels of competition within its market, availability of alternative building products, increases in its level of indebtedness, increases in costs of environmental compliance, unanticipated warranty or product liability claims, increases in capital expenditure requirements and shifts in market demand. Should one or more of these risks or uncertainties materialize, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described herein as expected, intended, estimated, anticipated, believed or predicted. For further information, refer to the Company's most recent Annual Report on Form 10-K (particularly the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections) and to any subsequent Quarterly Reports on Form 10-Q, all of which are on file with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Associated Materials, LLC
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