Norcraft Companies, L.P. Reports Second Quarter 2012 Results
EAGAN, Minn., Aug. 10, 2012 /PRNewswire/ -- Norcraft Companies, L.P. (Norcraft) today reports financial results for the second quarter ended June 30, 2012.
FINANCIAL RESULTS
Second Quarter of Fiscal 2012 Compared with Second Quarter of Fiscal 2011
Net sales increased $0.8 million, or 1.1%, from $75.0 million for the second quarter of 2011 to $75.8 million for the same quarter of 2012. Income from operations decreased $1.0 million, or 12.9%, from $7.7 million for the second quarter of 2011 to $6.7 million for the same quarter of 2012. Net income (loss) decreased $2.1 million from net income of $1.6 million for the second quarter of 2011 to a net loss of $0.5 million for the same quarter of 2012.
EBITDA (a non-GAAP measure defined in the attached table) was $10.1 million for the second quarter of 2012 compared to $11.1 million for the same quarter of 2011.
"The cabinet industry has continued to see soft demand and a highly competitive landscape. While we expect those trends to persist for the balance of 2012, we are optimistic about a longer-term recovery in the new home construction and home improvement markets. As such, we will continue introducing new products and programs to be able to compete in this difficult market," commented President and CEO, Mark Buller.
CONFERENCE CALL
Norcraft has scheduled a conference call on Wednesday, August 22, 2012 at 10:00 a.m. Eastern Time. To participate, dial 866-515-2913 and use the pass code 86503620. A telephonic replay will be available by calling 888-286-8010 and using pass code 69028656.
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 six main brands: Mid Continent Cabinetry, Norcraft Cabinetry, UltraCraft, StarMark Cabinetry, Fieldstone Cabinetry and Brookwood.
Contact: |
Leigh E. Ginter |
Chief Financial Officer |
|
(651) 234-3315 |
-Selected Financial Data Tables Follow-
Norcraft Companies, L.P. |
||||
Consolidated Balance Sheets |
||||
(dollar amounts in thousands) |
||||
ASSETS |
June 30, 2012 (unaudited) |
December 31,
|
||
Current assets: |
||||
Cash and cash equivalents |
$ 22,516 |
$ 24,185 |
||
Trade accounts receivable, net |
24,813 |
20,092 |
||
Inventories |
20,363 |
17,503 |
||
Prepaid and other current assets |
1,743 |
1,835 |
||
Total current assets |
69,435 |
63,615 |
||
Non-current assets: |
||||
Property, plant and equipment, net |
26,480 |
27,434 |
||
Goodwill |
88,477 |
88,479 |
||
Intangible assets, net |
73,941 |
77,732 |
||
Display cabinets, net |
6,087 |
5,842 |
||
Other assets |
413 |
568 |
||
Total non-current assets |
195,398 |
200,055 |
||
Total assets |
$ 264,833 |
$ 263,670 |
||
LIABILITIES AND MEMBER'S EQUITY |
||||
Current liabilities: |
||||
Accounts payable |
$ 9,428 |
$ 6,566 |
||
Accrued expenses |
15,100 |
13,775 |
||
Total current liabilities |
24,528 |
20,341 |
||
Non-current liabilities: |
||||
Long-term debt |
240,000 |
240,000 |
||
Unamortized premium on bonds payable |
147 |
166 |
||
Other liabilities |
116 |
108 |
||
Total non-current liabilities |
240,263 |
240,274 |
||
Total liabilities |
264,791 |
260,615 |
||
Commitments and contingencies |
- |
- |
||
Member's equity: |
||||
Member's equity (deficit) |
(1,307) |
1,646 |
||
Accumulated other comprehensive income |
1,349 |
1,409 |
||
Total member's equity |
42 |
3,055 |
||
Total liabilities and member's equity |
$ 264,833 |
$ 263,670 |
||
Norcraft Companies, L.P. |
|||||||
Consolidated Statements of Comprehensive Income (Loss) |
|||||||
(dollar amounts in thousands) |
|||||||
(unaudited) |
|||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||
2012 |
2011 |
2012 |
2011 |
||||
Net sales |
$ 75,825 |
$ 75,037 |
$ 143,687 |
$ 139,225 |
|||
Cost of sales |
55,377 |
53,823 |
105,319 |
101,408 |
|||
Gross profit |
20,448 |
21,214 |
38,368 |
37,817 |
|||
Selling, general and administrative expenses |
13,701 |
13,470 |
26,880 |
25,830 |
|||
Income from operations |
6,747 |
7,744 |
11,488 |
11,987 |
|||
Interest expense, net |
6,461 |
5,628 |
12,911 |
10,655 |
|||
Amortization of deferred financing costs |
780 |
501 |
1,560 |
871 |
|||
Other expense, net |
24 |
28 |
51 |
52 |
|||
Total other expense |
7,265 |
6,157 |
14,522 |
11,578 |
|||
Net income (loss) |
(518) |
1,587 |
(3,034) |
409 |
|||
Other comprehensive income (loss): |
|||||||
Foreign currency translation adjustment |
(283) |
(78) |
(60) |
184 |
|||
Total other comprehensive income (loss) |
(283) |
(78) |
(60) |
184 |
|||
Comprehensive income (loss) |
$ (801) |
$ 1,509 |
$ (3,094) |
$ 593 |
|||
Norcraft Companies, L.P. |
|||||
Consolidated Statement of Cash Flows |
|||||
(dollar amounts in thousands) |
|||||
(unaudited) |
|||||
Six Months Ended |
|||||
June 30, |
|||||
2012 |
2011 |
||||
Cash flows from operating activities: |
|||||
Net income (loss) |
$ (3,034) |
$ 409 |
|||
Adjustments to reconcile net income (loss) to net cash provided by |
|||||
operating activities: |
|||||
Depreciation and amortization of property, plant and equipment |
2,367 |
2,557 |
|||
Amortization: |
|||||
Customer relationships |
2,233 |
2,234 |
|||
Deferred financing costs |
1,560 |
871 |
|||
Display cabinets |
2,059 |
1,962 |
|||
Discount amortization/accreted interest |
(19) |
200 |
|||
Provision for uncollectible accounts receivable |
149 |
50 |
|||
Provision for obsolete and excess inventories |
221 |
16 |
|||
Provision for warranty claims |
1,615 |
1,392 |
|||
Stock compensation expense |
91 |
90 |
|||
(Gain) loss on disposal of assets |
(3) |
2 |
|||
Change in operating assets and liabilities: |
|||||
Trade accounts receivable |
(4,883) |
(6,447) |
|||
Inventories |
(3,091) |
(2,087) |
|||
Prepaid expenses |
91 |
(140) |
|||
Other assets |
155 |
85 |
|||
Accounts payable and accrued expenses |
2,596 |
272 |
|||
Net cash provided by operating activities |
2,107 |
1,466 |
|||
Cash flows from investing activities: |
|||||
Proceeds from sale of property and equipment |
5 |
4 |
|||
Purchase of property, plant and equipment |
(1,438) |
(1,337) |
|||
Additions to display cabinets |
(2,304) |
(2,530) |
|||
Net cash used in investing activities |
(3,737) |
(3,863) |
|||
Cash flows from financing activities: |
|||||
Borrowings on senior secured second lien notes payable |
- |
62,400 |
|||
Payment of financing costs |
(2) |
(7,936) |
|||
Proceeds from issuance of member interests |
- |
90 |
|||
Distributions to member |
(10) |
(58,015) |
|||
Net cash used in financing activities |
(12) |
(3,461) |
|||
Effect of exchange rates on cash and cash equivalents |
(27) |
(46) |
|||
Net decrease in cash and cash equivalents |
(1,669) |
(5,904) |
|||
Cash and cash equivalents, beginning of the period |
24,185 |
28,657 |
|||
Cash and cash equivalents, end of period |
$ 22,516 |
$ 22,753 |
|||
Norcraft Companies, L.P.
Reconciliation of Net Income (Loss) to EBITDA
(dollar amounts in thousands)
EBITDA is net income (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 their 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 income (loss), cash flows from operating activities or other operation 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 June 30, |
Six Months Ended June 30, |
Twelve Months Ended June 30, |
|||||||||||
2012 |
2011 |
2012 |
2011 |
2012 |
|||||||||
Net income (loss) |
$ (518) |
$ 1,587 |
$ (3,034) |
$ 409 |
$ (7,174) |
||||||||
Interest expense, net |
6,461 |
5,628 |
12,911 |
10,655 |
25,805 |
||||||||
Depreciation |
1,210 |
1,271 |
2,367 |
2,557 |
4,745 |
||||||||
Amortization of deferred financing costs |
780 |
501 |
1,560 |
871 |
3,143 |
||||||||
Amortization of customer relationships |
1,116 |
1,117 |
2,233 |
2,234 |
4,466 |
||||||||
Display cabinet amortization |
1,040 |
1,014 |
2,059 |
1,962 |
4,102 |
||||||||
State taxes |
24 |
24 |
48 |
48 |
87 |
||||||||
Non-GAAP EBITDA |
$ 10,113 |
$ 11,142 |
$ 18,144 |
$18,736 |
$ 35,174 |
||||||||
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 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.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article