Table of Contents
SECURITIES AND EXCHANGE COMMISSION
Under the Securities Act of 1933
Illinois (State or other jurisdiction of incorporation or organization) | 3312 (Primary Standard Industrial Classification Code Number) | 36-3228472 (I.R.S. Employer Identification No.) |
2701 Spruce Street, Quincy, IL 62301
(217) 228-6011
(Address, including zip code, and telephone number, including area code, of registrant’s principal
executive offices)
Vice President and General Counsel
2701 Spruce Street
Quincy, IL 62301
(217) 228-6011
(Name, address, including zip code, and telephone number, including area code, of agent for service)
Barbara A. Bowman Bodman LLP 6th Floor at Ford Field 1901 St. Antoine Street Detroit, MI 48226 (313) 259-7777 | Lisa L. Jacobs Shearman & Sterling LLP 599 Lexington Avenue New York, New York 10022 (212) 848-4000 |
Primary Standard | ||||||||||||
Jurisdiction of | Industrial | I.R.S. Employer | ||||||||||
Incorporation/ | Classification Code | Identification | ||||||||||
Exact Name of Additional Registrants* | Organization | Number | Number | |||||||||
Titan Marketing Services, Inc. | Illinois | 3312 | 37-1337195 | |||||||||
Titan Wheel Corporation of Illinois | Illinois | 3312 | 37-1366023 | |||||||||
Titan Wheel Corporation of Iowa | Iowa | 3312 | 39-1909552 | |||||||||
Titan Wheel Corporation of South Carolina | South Carolina | 3312 | 58-2359435 | |||||||||
Titan Wheel Corporation of Virginia | Virginia | 3312 | 54-1688395 | |||||||||
Titan Investment Corporation | Illinois | 3312 | 37-1330978 | |||||||||
Titan Tire Corporation | Illinois | 3312 | 42-1424945 | |||||||||
Titan Tire Corporation of Bryan | Ohio | 3312 | 20-5032911 | |||||||||
Titan Tire Corporation of Freeport | Illinois | 3312 | 20-2613232 | |||||||||
Titan Tire Corporation of Natchez | Mississippi | 3312 | 64-0898897 | |||||||||
Titan Tire Corporation of Texas | Texas | 3312 | 74-2851521 | |||||||||
Titan Distribution Inc. | Illinois | 3312 | 42-1444713 | |||||||||
Dyneer Corporation | Delaware | 3312 | 06-1174283 | |||||||||
Dico, Inc. | Delaware | 3312 | 42-1279519 | |||||||||
Automotive Wheels, Inc. | California | 3312 | 33-0540312 | |||||||||
Nieman’s, Ltd. | Iowa | 3312 | 42-1151350 |
* | Address and telephone number of principal executive office are the same as those of Titan International, Inc. |
Amount to Be | Proposed Maximum | Proposed Maximum | Amount of | |||||||||||||||||||
Title of Each Class of | Registered | Offering Price Per | Aggregate Offering | Registration | ||||||||||||||||||
Securities To Be Registered | (1) | Unit(1) | Price(1) | Fee(2) | ||||||||||||||||||
8% Senior Unsecured Notes due 2012 | $ | 200,000,000 | 100 | % | $ | 200,000,000 | $ | 6,140 | ||||||||||||||
Guarantees of 8% Senior Unsecured Notes due 2012 | (3) | (3) | (3) | (3) | ||||||||||||||||||
(1) | Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(f)(2) under the Securities Act of 1933. | |
(2) | The amount of the filing fee has been calculated in accordance with Section 6(b) of the Securities Act and is equal to $30.70 for each $1,000,000 of the Proposed Maximum Aggregate Offering Price. | |
(3) | Pursuant to Rule 457(n) under the Securities Act, no separate fee is payable with respect to the guarantees of the new notes being registered. |
Table of Contents
The information in this prospectus is not complete and may be changed. We may not consummate the exchange offer until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
In Exchange for 8% Senior Unsecured Notes due 2012
Which have been Registered under the Securities Act of 1933
The exchange offer will expire at 5:00 p.m., New York City
time, on __________, 2007, unless we extend it.
• | We are offering to exchange registered 8% Senior Unsecured Notes due 2012 (the “new notes”) for all of our old unregistered 8% Senior Unsecured Notes due 2012 (the “old notes”). | ||
• | The terms of the new notes will be identical in all material respects to the terms of the old notes, except that the registration rights and related liquidated damages provisions, and the transfer restrictions applicable to the old notes, will not be applicable to the new notes. | ||
• | Subject to the satisfaction or waiver of specified conditions, we will exchange the new notes for all old notes that are validly tendered and not withdrawn prior to the expiration of the exchange offer. | ||
• | U.S. Bank National Association is serving as the exchange agent. If you wish to tender your old notes, you must complete, execute and deliver, among other things, a letter of transmittal to the exchange agent no later than 5:00 p.m., New York City time, on the expiration date. | ||
• | You may withdraw tenders of old notes at any time prior to the expiration of the exchange offer. | ||
• | Any outstanding notes not validly tendered will remain subject to existing transfer restrictions. |
• | The exchange of the old notes for the new notes pursuant to the exchange offer will not be a taxable event for United States federal income tax purposes. See “Material United States Federal Income Tax Considerations.” | ||
• | We will not receive any proceeds from the exchange offer. | ||
• | The new notes will not be listed on any securities exchange or included in any automated quotation system. | ||
• | The new notes will have the same financial terms and covenants as the old notes and will be subject to the same business and financial risks. |
i
Table of Contents
ii
Table of Contents
• | this exchange offer; | ||
• | our business strategy, plans and objectives; | ||
• | our understanding of our competition; | ||
• | market trends; | ||
• | projected sources and uses of available cash flow; | ||
• | projected capital expenditures; | ||
• | our future financial results and performance; | ||
• | potential liability with respect to legal proceedings; and | ||
• | potential effects of proposed legislation and regulatory action. |
• | those identified under “Risk Factors” including, without limitation: |
• | the cyclical nature of the industries in which we operate including the factors that have led to recent corn prices; | ||
• | our concentrated customer base; |
iii
Table of Contents
• | substantial competition from international and domestic companies; | ||
• | unanticipated losses related to acquisitions or investments; | ||
• | failure to maintain satisfactory labor relations; | ||
• | price fluctuations of key commodities; | ||
• | our reliance on a limited number of suppliers; | ||
• | unfavorable outcomes of legal proceedings; | ||
• | costs related to compliance with corporate governance requirements; | ||
• | limitations on our financial and operating flexibility as a result of our significant interest expense compared to our cash flows; and | ||
• | restrictions on our ability to pursue our business strategies or repay our indebtedness as a result of restrictive covenants in our credit facility; |
• | those identified from time to time in our public filings with the Securities and Exchange Commission; | ||
• | the negative impact of economic slowdowns or recessions; | ||
• | the effect of changes in interest rates; | ||
• | the condition of the markets for our products; | ||
• | our access to funding sources and our ability to renew, replace or add to our existing credit facilities on terms comparable to the current terms; | ||
• | the impact of new state or federal legislation or court decisions on our operations; and | ||
• | the impact of new state or federal legislation or court decisions restricting the activities of lenders or suppliers of credit in our market. |
iv
Table of Contents
1
Table of Contents
2
Table of Contents
Securities Offered | $200,000,000 aggregate principal amount of new 8% senior unsecured notes dues 2012, which have been registered under the Securities Act. The terms of the new notes offered in the exchange offer are substantially identical to those of the old notes, except that certain transfer restrictions, registration rights and liquidated damages provisions relating to the old notes do not apply to the new registered notes. | |
The Exchange Offer | We are offering to issue new notes in exchange for a like principal amount and like denomination of our old notes. We are offering to issue these new registered notes to satisfy our obligations under an exchange and registration rights agreement that we entered into with the initial purchaser of the old notes when we sold them in a transaction that was exempt from the registration requirements of the Securities Act. You may tender your old notes for exchange by following the procedures described under the heading “The Exchange Offer.” | |
Exchange and Registration Rights Agreement | You are entitled to exchange your new notes for new notes with substantially identical terms. The exchange offer is intended to satisfy these rights. After the exchange offer is complete, you will no longer be entitled to any exchange or registration rights for your notes. | |
$200.0 million principal amount of notes is outstanding. | ||
We will issue new notes promptly after the expiration of the |
3
Table of Contents
exchange offer. | ||
Resales | We believe the new notes may be offered for resale, resold and otherwise transferred by you without compliance with the registration and prospectus delivery provisions of the Securities Act provided that: | |
• you are not our affiliate within the meaning of Rule 405 under the Securities Act, | ||
• the new notes are acquired in the ordinary course of your business, | ||
• you are not participating and do not intend to participate in a distribution of the new notes, | ||
• if you are a broker-dealer, you have not entered into any arrangement or undertaking with uss or any of our affiliates to distribute the new notes, and | ||
• you are not acting on behalf of any person or entity that could not truthfully make these representations. | ||
Each broker-dealer issued new notes in the exchange offer for its own account in exchange for notes acquired by the broker-dealer as a result of market-making or other trading activities must acknowledge that it will deliver a prospectus meeting the requirements of the Securities Act in connection with any resale of the new notes. A broker-dealer may use this prospectus for an offer to resell, resale or other retransfer of the new notes. The letter of transmittal states that by so acknowledging and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter” within the meaning of the Securities Act. | ||
Expiration Date | The exchange offer will expire at 5:00 p.m., New York City time, ___, 2007, unless we decide to extend the expiration date. If we extend the exchange offer, the longest we could keep the offer open without incurring liquidated damages under the exchange and registration rights agreement in the form of increased interest payable on the old notes would be until September 24, 2007, which is 270 days after the outstanding notes were issued. | |
Conditions to the Exchange Offer | The exchange offer is not subject to any condition other than |
4
Table of Contents
that the exchange offer does not violate law or any interpretation of the staff of the Securities and Exchange Commission, or the SEC. | ||
Procedures for Tendering Outstanding Notes Held in the Form of Book-Entry Interests | If you are a holder of a note held in the form of a book-entry interest through the Depository Trust Company, or DTC, and you wish to tender your book-entry interest for exchange in the exchange offer, you must transmit to U.S. Bank National Association, as exchange agent, before the expiration date of the exchange offer: | |
either | ||
• a properly completed and executed letter of transmittal, which accompanies this prospectus, or a facsimile of the letter of transmittal, including all other documents required by the letter of transmittal, to the exchange agent at the address on the cover page of the letter of transmittal; | ||
or | ||
• a computer-generated message transmitted by means of DTC’s Automated Tender Offer Program system and received by the exchange agent and forming a part of a confirmation of book-entry transfer in which you acknowledge and agree to be bound by the terms of the letter of transmittal; | ||
and, either | ||
• a timely confirmation of book-entry transfer of your outstanding notes into the exchange agent’s account at DTC, according to the procedure for book-entry transfers described in this prospectus under the heading “The Exchange Offer—Book-Entry Transfer” beginning on page ___, which must be received by the exchange agent on or prior to the expiration date; | ||
or | ||
• the documents necessary for compliance with the guaranteed delivery procedures described below. | ||
Procedures for Tendering Certificated Notes | If you are a holder of a beneficial interest in the outstanding notes, you are entitled to receive, in exchange for your beneficial interest, certificated notes in equal principal amounts to your beneficial interest. As of the date of this Prospectus, |
5
Table of Contents
however, no certificated notes were issued and outstanding. If you acquire certificated notes before the expiration date of the exchange offer, you must tender your notes under the procedures described in this prospectus under the heading “The Exchange Offer—Procedure for Tendering Outstanding Notes” beginning on page ___. | ||
Special Procedures for Beneficial Owners | If you are the owner of a beneficial interest and your name does not appear on a security position listing of DTC as the holder of that interest or if you are a beneficial owner of certificated notes that are registered in the name of a broker, dealer, commercial bank, trust company or other nominee and you wish to tender that interest or certificated notes in the exchange offer, you should contact the person in whose name your interest or certificated notes are registered promptly and instruct such person to tender on your behalf. | |
Guaranteed Delivery Procedures | If you wish to tender your notes and time will not permit your required documents to reach the exchange agent by the expiration date of the exchange offer, or the procedure for book-entry transfer cannot be completed on time or certificates for your notes cannot be delivered on time, you may tender your notes according to the procedures described in this prospectus under the heading “The Exchange Offer—Guaranteed Delivery Procedures” beginning on page ___. | |
Withdrawal Rights | You may withdraw the tender of your notes at any time prior to the time of expiration. We will return to you any outstanding notes not accepted for exchange for any reason without expense to you promptly after withdrawal, rejection of tender or termination of the exchange offer. | |
Regulatory Approvals | Other than pursuant to the federal securities laws, there are no federal or state regulatory requirements that we must comply with, or approvals that we must obtain, in connection with the exchange offer. | |
Appraisal Rights | You will not have dissenters’ rights or appraisal rights in connection with the exchange offer. See “The Exchange Offer—Appraisal Rights.” | |
U.S. Federal Income Tax Consequences | The exchange of notes will not be a taxable exchange for U.S. federal income tax purposes. You will not recognize any taxable gain or loss or any interest income as a result of the exchange. |
6
Table of Contents
Exchange Agent | U.S. Bank National Association is serving as exchange agent for the exchange offer. | |
Consequences of Failure to Exchange | Notes that are not tendered or that are tendered but not accepted will continue to be subject to the restrictions on transfer that are described in the legend on those notes. In general, you may offer or sell your notes only if they are registered under, or offered or sold under an exemption from, the Securities Act and applicable state securities laws. We, however, will have no further obligation to register the notes. If you do not participate in the exchange offer, the liquidity of your notes could be adversely affected. |
Issuer | Titan International, Inc. | |
Notes Offered | $200 million aggregate principal amount of 8% Senior Unsecured Notes due 2012. | |
Maturity Date | January 15, 2012. | |
Interest | 8% per annum, payable semiannually on July 15 and January 15 of each year, commencing on July 15, 2007. | |
Guarantees | The notes will be guaranteed on a joint and several senior basis by all of our existing and future domestic restricted subsidiaries, other than “Immaterial Subsidiaries,” that guarantee the revolving credit facility. Our foreign subsidiaries will not guarantee the notes. See “Description of New Notes — Note Guarantees.” | |
Ranking | The notes will be: | |
• our general unsecured obligations; | ||
• pari passuin right of payment to all of our existing and future unsecured senior indebtedness; | ||
• senior in right of payment to our future subordinated indebtedness, if any; |
7
Table of Contents
• effectively subordinated to all our existing and future secured indebtedness up to the value of the collateral securing such indebtedness; | ||
• guaranteed by the guarantors; and | ||
• effectively subordinated to all of the existing and future liabilities, including trade payables, of our subsidiaries that do not guarantee the notes. | ||
The guarantees will be: | ||
• general unsecured obligations of our guarantors | ||
• pari passuin right of payment to all of our guarantors’ existing and future unsecured senior indebtedness; | ||
• senior in right of payment to our guarantors’ future subordinated indebtedness, if any; and | ||
• effectively subordinated to all existing and future secured indebtedness of our guarantors up to the value of the collateral securing such indebtedness. | ||
As of ___, 2007, we had $125 million available (subject to certain conditions) for borrowing under our revolving credit facility, which was secured by substantially all of our assets. | ||
See “Risk Factors — The notes and guarantees are effectively subordinated to our secured debt and to any liabilities of our non-guarantor subsidiaries” for a description of the assets, liabilities and operations of our subsidiaries that will not guarantee the notes. | ||
Redemption with Certain Equity Proceeds | We may redeem up to 35% of the aggregate principal amount of the notes using net proceeds from certain equity offerings completed prior to January 15, 2010. | |
Make-Whole Redemption | We may redeem the notes, in whole or in part, by paying a redemption price equal to the sum of: | |
(1) 100% of the principal amount of the notes to be redeemed, plus | ||
(2) the Applicable Premium for the notes (as defined in “Description of New Notes”), plus accrued and unpaid interest thereon, if any to the redemption date (subject to the right of holders of record on the relevant record date to |
8
Table of Contents
receive interest due on the relevant interest payment date). | ||
Mandatory Offer to Repurchase | If we experience a change of control (as defined in the indenture governing the notes), we will be required to make an offer to repurchase the notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of purchase. There is no assurance we will have adequate funds for such an offer. See “Description of New Notes — Repurchase at the Option of Holders — Change of Control.” | |
Certain Covenants | The indenture governing the notes will contain certain covenants that will, among other things, limit our ability and the ability of our restricted subsidiaries to: | |
• incur, assume or guarantee additional indebtedness or issue preferred stock; | ||
• pay dividends or make other equity distributions to our shareholders; | ||
• purchase or redeem our capital stock; | ||
• make certain investments; | ||
• create liens; | ||
• sell or otherwise dispose of assets; | ||
• engage in transactions with our affiliates; and | ||
• merge or consolidate with another entity or transfer all or substantially all of our assets. | ||
All of these restrictive covenants are subject to a number of important exceptions and qualifications. See “Description of New Notes — Certain Covenants”. | ||
Use of Proceeds | We will not receive any proceeds from the exchange offer. For a description of the use of proceeds from the offering of the old notes, see “Use of Proceeds.” | |
Form of the New Notes | The new notes will be represented by one or more permanent global securities in registered form deposited with U.S. Bank National Association, as custodian, for the benefit of The Depository Trust Company. You will not receive notes in registered form, unless one of the events set forth under the heading “Description of New Notes—Book-Entry, Delivery and Form” occurs. Instead, beneficial interests in the new notes will be shown on, and transfers of these interests will |
9
Table of Contents
be effected only through, records maintained in book-entry form by The Depository Trust Company with respect to its participants. | ||
Absence of a Public Market for the New Notes | There has been no public market for the old notes, and no active market for the new notes is currently anticipated. We do not intend to apply for a listing of the new notes on any securities exchange or inclusion in any automated quotation system. We cannot make any assurances regarding the liquidity of the market for the new notes, the ability of holders to sell their new notes or the price at which holders may sell their new notes. See “Plan of Distribution.” | |
Trustee | U.S. Bank National Association is serving as trustee under the indenture governing the notes. |
10
Table of Contents
Year Ended December 31, | ||||||||||||||||||||
2002 | 2003 | 2004 | 2005 | 2006 | ||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||
Net sales | $ | 462,820 | $ | 491,672 | $ | 510,571 | $ | 470,133 | $ | 679,454 | ||||||||||
Gross profit | 29,741 | 29,703 | 79,500 | 64,210 | 72,778 | |||||||||||||||
(Loss) income from operations | (14,086 | ) | (16,220 | ) | 33,322 | 11,999 | 22,011 | |||||||||||||
(Loss) income before income taxes | (44,293 | ) (a) | (33,668 | ) | 15,215 | (2,885 | ) (b) | 8,574 | ||||||||||||
Net (loss) income | (35,877 | ) (a) | (36,657 | ) | 11,107 | 11,042 | (b)(c) | 5,144 | ||||||||||||
Other Financial Data: | ||||||||||||||||||||
Depreciation and amortization | $ | 33,622 | $ | 32,277 | $ | 24,907 | $ | 20,746 | $ | 26,850 | ||||||||||
Capital expenditures | 9,759 | 14,564 | 4,328 | 6,752 | 8,282 | |||||||||||||||
Interest expense | 20,565 | 20,231 | 16,159 | 8,617 | 17,001 | |||||||||||||||
Cash flows from operating activities | 16,908 | 10,382 | 18,149 | 22,899 | (5,540 | ) | ||||||||||||||
Cash flows from investing activities | (9,141 | ) | (33,754 | ) | 62,392 | (76,743 | ) | (52,726 | ) | |||||||||||
Cash flows from financing activities | 4,407 | 7,219 | (85,751 | ) | 53,306 | 91,086 | ||||||||||||||
Balance Sheet Data (end of period): | ||||||||||||||||||||
Cash and cash equivalents | $ | 22,049 | $ | 6,556 | $ | 1,130 | $ | 592 | $ | 33,412 | ||||||||||
Working capital | 170,263 | 183,971 | 114,898 | 157,984 | 247,009 | |||||||||||||||
Current assets | 254,569 | 286,946 | 154,668 | 206,167 | 309,933 | |||||||||||||||
Total assets | 531,999 | 523,084 | 354,166 | 440,756 | 585,126 | |||||||||||||||
Long-term debt | 249,119 | 248,397 | 169,688 | 190,464 | 291,266 | |||||||||||||||
Stockholders’ equity | 144,027 | 111,956 | 106,881 | 167,813 | 187,177 |
(a) | Includes loss on investments of $12.4 million ($10.0 million after taxes). | |
(b) | Includes noncash convertible debt conversion charge of $7.2 million. | |
(c) | Includes tax benefit of $13.9 million for tax valuation allowance. |
11
Table of Contents
12
Table of Contents
Year Ended December 31, 2006
(Amounts in thousands, except per share date)
Historical | Pro Forma | Pro Forma | ||||||||||||||
Titan | Continental (a) | Adjustments | Titan | |||||||||||||
Net sales | $ | 679,454 | $ | 82,342 | $ | 0 | $ | 761,796 | ||||||||
Cost of sales | 606,676 | 62,201 | 1,028 | (b) | 669,905 | |||||||||||
Gross profit | 72,778 | 20,141 | (1,028 | ) | 91,891 | |||||||||||
Selling, general & administrative expenses | 42,142 | 4,152 | 0 | 46,294 | ||||||||||||
Royalty expense | 5,001 | 0 | 0 | 5,001 | ||||||||||||
Idled assets marketed for sale depreciation | 3,624 | 0 | 0 | 3,624 | ||||||||||||
Income (loss) from operations | 22,011 | 15,989 | (1,028 | ) | 36,972 | |||||||||||
Interest expense | (17,001 | ) | 0 | (2,360 | )(c) | |||||||||||
4,791 | (d) | (14,570 | ) | |||||||||||||
Other income | 3,564 | 611 | 0 | 4,175 | ||||||||||||
Income before income taxes | 8,574 | 16,600 | 1,403 | 26,577 | ||||||||||||
Provision for income taxes | 3,430 | 0 | 7,201 | (e) | 10,631 | |||||||||||
Net income (loss) | $ | 5,144 | $ | 16,600 | $ | (5,798 | ) | $ | 15,946 | |||||||
Income per common share | ||||||||||||||||
Basic | $ | .26 | — | — | $ | .61 | ||||||||||
Diluted | .26 | — | — | .60 | ||||||||||||
Average common shares and equivalent outstanding | ||||||||||||||||
Basic | 19,702 | — | 6,577 | (d) | 26,279 | |||||||||||
Diluted | 20,044 | — | 6,577 | (d) | 26,621 |
(a) | The Continental column includes the following pro forma numbers for the period of July 1, 2006, to July 31, 2006 (amounts in thousands): Sales — $11,763; Cost of sales - - $8,886; Selling, general & administrative — $593; and Other income — $87. The Continental column represents the period from January 1, 2006 to July 31, 2006. | |
(b) | To record the difference in depreciation between the actual depreciation recorded on the Continental off-the-road tire assets and the calculated amount if the Company had acquired these assets on January 1, 2006. The difference is the result of differing asset values and lives. The Company uses straight-line depreciation with the following lives: Buildings — 25 years; Machinery & Equipment — 10 years; Tools, Dies and Molds — 5 years. | |
(c) | To record the additional interest for the Continental off-the-road tire acquisition for the year ended December 31, 2006. Interest is calculated using a rate of 7.76% derived from the terms of the Company’s revolving credit facility, which was LIBOR plus 3% during the period. The pro forma adjustment for interest would have been thirty-eight thousand dollars ($38,000) higher or lower if the interest rate had been 1/8% higher or lower. | |
(d) | To reflect the March 2007 conversion of 100% of Titan’s senior convertible notes as if the conversion had occurred on January 1, 2006. | |
(e) | To record income tax provision at a 40% rate, the historical provision rate. |
Table of Contents
14
Table of Contents
15
Table of Contents
• | problems with integration of operations; | ||
• | the inability to maintain key pre-acquisition customer, supplier and employee relationships and labor agreements; | ||
• | increased operating costs; and | ||
• | exposure to unanticipated liabilities. |
16
Table of Contents
17
Table of Contents
18
Table of Contents
19
Table of Contents
• | reducing our operating expenses; | ||
• | reducing or delaying capital expenditures: | ||
• | selling assets; or | ||
• | raising additional equity capital. |
• | incur additional indebtedness or issue preferred stock; | ||
• | create liens; |
20
Table of Contents
• | pay dividends and make distributions in respect of capital stock; | ||
• | repurchase or redeem capital stock or prepay certain indebtedness; | ||
• | make investments or certain other restricted payments; | ||
• | sell assets; | ||
• | issue or sell stock of restricted subsidiaries; | ||
• | guarantee indebtedness; | ||
• | designate unrestricted subsidiaries; | ||
• | enter into transactions with our affiliates; and | ||
• | merge, consolidate or transfer all or substantially all of our assets. |
• | elect to declare all amounts borrowed to be immediately due and payable, together with accrued and unpaid interest; and/or | ||
• | terminate their commitments, if any, to make further extensions of credit. |
• | issued the guarantee with the intent of hindering, delaying or defrauding any present or future creditor; or | ||
• | received less than reasonably equivalent value or fair consideration for the incurrence of such guarantee and (1) was insolvent or rendered insolvent by reason of such incurrence, (2) was engaged in a business or transaction for which the guarantor’s remaining assets constitute unreasonably small capital, or (3) intended to incur, or believed or reasonably should have believed that it would incur, debts beyond its ability to pay such debts as they mature. |
21
Table of Contents
• | the sum of its debts, including contingent liabilities, was greater than the fair saleable value of all of its assets; | ||
• | the present fair saleable value of its assets was less than the amount that would be required to pay its probable liability or its existing debts, including contingent liabilities, as they become absolute and mature; or | ||
• | it could not pay its debts as they become due. |
22
Table of Contents
23
Table of Contents
24
Table of Contents
25
Table of Contents
26
Table of Contents
27
Table of Contents
28
Table of Contents
29
Table of Contents
U.S. Bank Corporate Trust Services | ||||||
60 Livingston Avenue | ||||||
St. Paul, MN 55107 | ||||||
Attn: | Transfers | |||||
By Facsimile (Eligible Institutions Only): | ||||||
(651) 495-8145 | ||||||
Confirm Facsimile by Telephone: | ||||||
(651) 495-3458 |
30
Table of Contents
31
Table of Contents
Year Ended December 31, | ||||||||||||||||||||
2002 | 2003 | 2004 | 2005 | 2006 | ||||||||||||||||
Ratio of earnings to fixed charges | n/a | n/a | 2.06 | 1.25 | 1.48 | |||||||||||||||
Earnings deficiency | $ | 31,213 | $ | 33,147 | $ | — | $ | — | $ | — |
32
Table of Contents
• | general unsecured obligations of Titan; | ||
• | pari passuin right of payment with all existing and future unsecured senior Indebtedness of Titan; | ||
• | senior in right of payment to any future subordinated Indebtedness of Titan; effectively subordinated to secured Indebtedness of Titan up to the value of the collateral securing such Indebtedness; | ||
• | guaranteed by the Guarantors; and | ||
• | effectively subordinated to all existing and future liabilities, including trade payables, of our non-guarantor Subsidiaries. |
• | a general unsecured obligation of the Guarantor; | ||
• | pari passuin right of payment with all existing and future unsecured senior Indebtedness of that Guarantor; |
33
Table of Contents
• | effectively subordinated to secured Indebtedness of that Guarantor up to the value of the collateral securing such Indebtedness; and | ||
• | senior in right of payment to future subordinated Indebtedness, if any, of that Guarantor. |
34
Table of Contents
35
Table of Contents
36
Table of Contents
37
Table of Contents
38
Table of Contents
39
Table of Contents
40
Table of Contents
41
Table of Contents
42
Table of Contents
43
Table of Contents
44
Table of Contents
45
Table of Contents
46
Table of Contents
47
Table of Contents
48
Table of Contents
49
Table of Contents
50
Table of Contents
51
Table of Contents
52
Table of Contents
53
Table of Contents
54
Table of Contents
55
Table of Contents
56
Table of Contents
57
Table of Contents
58
Table of Contents
59
Table of Contents
60
Table of Contents
61
Table of Contents
62
Table of Contents
63
Table of Contents
64
Table of Contents
65
Table of Contents
66
Table of Contents
67
Table of Contents
68
Table of Contents
69
Table of Contents
70
Table of Contents
71
Table of Contents
72
Table of Contents
73
Table of Contents
74
Table of Contents
75
Table of Contents
76
Table of Contents
77
Table of Contents
78
Table of Contents
79
Table of Contents
80
Table of Contents
81
Table of Contents
82
Table of Contents
• | holders subject to the alternative minimum tax; | ||
• | tax-exempt organizations; |
83
Table of Contents
• | insurance companies; | ||
• | partnerships; | ||
• | dealers in securities or currencies; | ||
• | traders in securities or commodities or dealers in commodities that elect to use a mark-to-market method of accounting; | ||
• | banks and financial institutions; | ||
• | holders whose “functional currency” is not the United States dollar; | ||
• | persons that will hold the notes as a position in a hedging transaction, “straddle,” “conversion transaction,” or other risk-reduction transaction, or | ||
• | persons deemed to sell the notes under the constructive sale provisions of the Code. |
84
Table of Contents
• | Our Annual Report on Form 10-K for the year ended December 31, 2006, filed on February 28, 2007, other than the financial statements on pages F-1 through F-32, which have been included herein. | ||
• | Our Current Reports on Form 8-K dated January 22, 2007; January 22, 2007; February 9, 2007; and February 22, 2007 (other than any information contained in these reports that has been furnished to the SEC, which information is not incorporated by reference into this prospectus). |
85
Table of Contents
• | Our Proxy Statement filed on March 30, 2007. | ||
• | All documents filed by us under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date of this prospectus and before the termination of this exchange offer. |
• | the sections entitled “Business” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth in our Annual Report on Form 10-K for the year ended December 31, 2006, filed with the SEC on February 28, 2007, with respect to relationships between us and our subsidiaries; and | ||
• | the section entitled “Related Party Transactions” set forth in our Proxy Statement filed with the SEC on March 30, 2007, with respect to relationships between us and our executive officers, directors and controlling persons. |
86
Table of Contents
87
Table of Contents
F-1 | ||
F-2 through F-3 | ||
F-4 | ||
F-5 | ||
F-6 | ||
F-7 | ||
F-8 through F-39 |
88
Table of Contents
F-1
Table of Contents
and Stockholders of
Titan International, Inc.:
F-2
Table of Contents
St. Louis, MO
February 26, 2007, except for Note 31 as to which the date is March 21, 2007.
F-3
Table of Contents
(All amounts in thousands, except per share data)
Year ended December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Net sales | $ | 679,454 | $ | 470,133 | $ | 510,571 | ||||||
Cost of sales | 606,676 | 405,923 | 431,071 | |||||||||
Gross profit | 72,778 | 64,210 | 79,500 | |||||||||
Selling, general and administrative expenses | 42,142 | 32,270 | 37,915 | |||||||||
Royalty expense | 5,001 | 0 | 0 | |||||||||
Idled assets marketed for sale depreciation | 3,624 | 4,736 | 5,275 | |||||||||
Dyneer legal charge | 0 | 15,205 | 0 | |||||||||
Goodwill impairment on Titan Europe | 0 | 0 | 2,988 | |||||||||
Income from operations | 22,011 | 11,999 | 33,322 | |||||||||
Interest expense | (17,001 | ) | (8,617 | ) | (16,159 | ) | ||||||
Noncash convertible debt conversion charge | 0 | (7,225 | ) | 0 | ||||||||
Debt termination expense | 0 | 0 | (3,654 | ) | ||||||||
Other income, net | 3,564 | 958 | 1,706 | |||||||||
Income (loss) before income taxes | 8,574 | (2,885 | ) | 15,215 | ||||||||
Provision (benefit) for income taxes | 3,430 | (13,927 | ) | 4,108 | ||||||||
Net income | $ | 5,144 | $ | 11,042 | $ | 11,107 | ||||||
Income per common share: | ||||||||||||
Basic | $ | .26 | $ | .61 | $ | .62 | ||||||
Diluted | .26 | .60 | .61 | |||||||||
Average common shares and equivalents outstanding: | ||||||||||||
Basic | 19,702 | 18,053 | 17,798 | |||||||||
Diluted | 20,044 | 18,284 | 21,574 |
F-4
Table of Contents
(All amounts in thousands, except share data)
December 31, | ||||||||
2006 | 2005 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 33,412 | $ | 592 | ||||
Accounts receivable (net of allowance of $4,818 and $5,654, respectively) | 73,882 | 47,112 | ||||||
Inventories | 154,604 | 122,692 | ||||||
Deferred income taxes | 29,234 | 20,141 | ||||||
Prepaid and other current assets | 18,801 | 15,630 | ||||||
Total current assets | 309,933 | 206,167 | ||||||
Property, plant and equipment, net | 184,616 | 140,382 | ||||||
Idled assets marketed for sale | 0 | 18,267 | ||||||
Investment in Titan Europe Plc | 65,881 | 48,467 | ||||||
Goodwill | 11,702 | 11,702 | ||||||
Other assets | 12,994 | 15,771 | ||||||
Total assets | $ | 585,126 | $ | 440,756 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities | ||||||||
Short-term debt (including current portion of long-term debt) | $ | 98 | $ | 11,995 | ||||
Accounts payable | 25,884 | 24,435 | ||||||
Other current liabilities | 36,942 | 11,753 | ||||||
Total current liabilities | 62,924 | 48,183 | ||||||
Long-term debt | 291,266 | 190,464 | ||||||
Deferred income taxes | 27,924 | 13,581 | ||||||
Other long-term liabilities | 15,835 | 20,715 | ||||||
Total liabilities | 397,949 | 272,943 | ||||||
Commitments and contingencies: Notes 14, 23 and 24 | ||||||||
Stockholders’ equity | ||||||||
Common stock (no par, 60,000,000 shares authorized, 30,577,356 issued) | 30 | 30 | ||||||
Additional paid-in capital | 258,071 | 255,299 | ||||||
Retained earnings | 36,802 | 32,053 | ||||||
Treasury stock (at cost, 10,678,454 and 11,074,150 shares, respectively) | (96,264 | ) | (99,817 | ) | ||||
Accumulated other comprehensive loss | (11,462 | ) | (19,752 | ) | ||||
Total stockholders’ equity | 187,177 | 167,813 | ||||||
Total liabilities and stockholders’ equity | $ | 585,126 | $ | 440,756 | ||||
F-5
Table of Contents
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(All amounts in thousands, except share data)
Accumulated | ||||||||||||||||||||||||||||
Number of | Additional | other | ||||||||||||||||||||||||||
common | Common | paid-in | Retained | Treasury | comprehensive | |||||||||||||||||||||||
shares | Stock | capital | earnings | stock | income (loss) | Total | ||||||||||||||||||||||
Balance January 1, 2004 | #21,197,320 | $ | 27 | $ | 203,050 | $ | 10,629 | $ | (81,204 | ) | $ | (20,546 | ) | $ | 111,956 | |||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||
Net income | 11,107 | 11,107 | ||||||||||||||||||||||||||
Currency translation adjustment | (584 | ) | (584 | ) | ||||||||||||||||||||||||
Minimum pension liability, net of tax | 4,564 | 4,564 | ||||||||||||||||||||||||||
Comprehensive income | 11,107 | 3,980 | 15,087 | |||||||||||||||||||||||||
Dividends paid on common stock | (351 | ) | (351 | ) | ||||||||||||||||||||||||
Exercise of stock options | 23,570 | 189 | 189 | |||||||||||||||||||||||||
Treasury stock purchases | (4,894,464 | ) | (20,000 | ) | (20,000 | ) | ||||||||||||||||||||||
Balance December 31, 2004 | 16,326,426 | 27 | 203,239 | 21,385 | (101,204 | ) | (16,566 | ) | 106,881 | |||||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||
Net income | 11,042 | 11,042 | ||||||||||||||||||||||||||
Currency translation adjustment | (3,168 | ) | (3,168 | ) | ||||||||||||||||||||||||
Minimum pension liability, net of tax | (18 | ) | (18 | ) | ||||||||||||||||||||||||
Comprehensive income | 11,042 | (3,186 | ) | 7,856 | ||||||||||||||||||||||||
Dividends paid on common stock | (374 | ) | (374 | ) | ||||||||||||||||||||||||
Gain on investee transaction, net of tax | 10,471 | 10,471 | ||||||||||||||||||||||||||
Bond conversion | 3,022,275 | 3 | 40,928 | 40,931 | ||||||||||||||||||||||||
Exercise of stock options | 135,860 | 568 | 1,220 | 1,788 | ||||||||||||||||||||||||
Issuance of treasury stock under 401(k) plan | 18,645 | 93 | 167 | 260 | ||||||||||||||||||||||||
Balance December 31, 2005 | 19,503,206 | 30 | 255,299 | 32,053 | (99,817 | ) | (19,752 | ) | 167,813 | |||||||||||||||||||
Comprehensive income (loss): | ||||||||||||||||||||||||||||
Net income | 5,144 | 5,144 | ||||||||||||||||||||||||||
Unrealized gain on investment, net of tax | 6,126 | 6,126 | ||||||||||||||||||||||||||
Minimum pension liability, net of tax | 3,225 | 3,225 | ||||||||||||||||||||||||||
Comprehensive income | 5,144 | 9,351 | 14,495 | |||||||||||||||||||||||||
Adjustment to initially apply SFAS No. 158, net of tax | (1,061 | ) | (1,061 | ) | ||||||||||||||||||||||||
Dividends paid on common stock | (395 | ) | (395 | ) | ||||||||||||||||||||||||
Exercise of stock options | 382,190 | 2,647 | 3,432 | 6,079 | ||||||||||||||||||||||||
Issuance of treasury stock under 401(k) plan | 13,506 | 125 | 121 | 246 | ||||||||||||||||||||||||
Balance December 31, 2006 | #19,898,902 | $ | 30 | $ | 258,071 | $ | 36,802 | $ | (96,264 | ) | $ | (11,462 | ) | $ | 187,177 | |||||||||||||
F-6
Table of Contents
CONSOLIDATED STATEMENTS OF CASH FLOWS
(All amounts in thousands)
Year ended December 31, | ||||||||||||
2006 | 2005 | 2004 | ||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 5,144 | $ | 11,042 | $ | 11,107 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 26,850 | 20,746 | 24,907 | |||||||||
Deferred income tax provision (benefit) | 2,597 | (14,476 | ) | 0 | ||||||||
Noncash convertible debt conversion charge | 0 | 7,225 | 0 | |||||||||
Goodwill impairment | 0 | 0 | 2,988 | |||||||||
Noncash debt termination expense | 0 | 0 | 1,486 | |||||||||
Undistributed earnings of unconsolidated affiliate | 0 | (2,024 | ) | (1,022 | ) | |||||||
Excess tax benefit from stock options exercised | (646 | ) | 0 | 0 | ||||||||
(Increase) decrease in current assets: | ||||||||||||
Accounts receivable | (26,770 | ) | 5,669 | (10,822 | ) | |||||||
Inventories | (19,509 | ) | 2,212 | (8,804 | ) | |||||||
Prepaid and other current assets | (3,675 | ) | 1,938 | (944 | ) | |||||||
Increase (decrease) in current liabilities: | ||||||||||||
Accounts payable | 1,449 | (2,298 | ) | 4,689 | ||||||||
Other current liabilities | 13,443 | (260 | ) | 140 | ||||||||
Other, net | (4,423 | ) | (6,875 | ) | (5,576 | ) | ||||||
Net cash (used for) provided by operating activities | (5,540 | ) | 22,899 | 18,149 | ||||||||
Cash flows from investing activities: | ||||||||||||
Continental off-the-road (OTR) asset acquisition | (44,642 | ) | 0 | 0 | ||||||||
Goodyear North American farm tire acquisition | 0 | (100,000 | ) | 0 | ||||||||
Capital expenditures | (8,282 | ) | (6,752 | ) | (4,328 | ) | ||||||
Decrease in restricted cash deposits | 0 | 24,500 | 24,609 | |||||||||
Titan Europe Plc sale | 0 | 0 | 40,757 | |||||||||
Asset disposals | 0 | 5,509 | 1,354 | |||||||||
Other, net | 198 | 0 | 0 | |||||||||
Net cash (used for) provided by investing activities | (52,726 | ) | (76,743 | ) | 62,392 | |||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from borrowings | 200,000 | 0 | 115,348 | |||||||||
Payment of debt | (11,995 | ) | (1,296 | ) | (225,525 | ) | ||||||
(Payment) proceeds on revolving credit facility, net | (99,100 | ) | 54,700 | 44,400 | ||||||||
Proceeds from exercise of stock options | 5,407 | 1,500 | 0 | |||||||||
Excess tax benefit from stock options exercised | 646 | 0 | 0 | |||||||||
Repurchase of common stock | 0 | 0 | (15,000 | ) | ||||||||
Payment of financing fees | (3,725 | ) | (1,500 | ) | (4,788 | ) | ||||||
Dividends paid | (393 | ) | (358 | ) | (375 | ) | ||||||
Other, net | 246 | 260 | 189 | |||||||||
Net cash provided by (used for) financing activities | 91,086 | 53,306 | (85,751 | ) | ||||||||
Effect of exchange rate changes on cash | 0 | 0 | (216 | ) | ||||||||
Net increase (decrease) in cash and cash equivalents | 32,820 | (538 | ) | (5,426 | ) | |||||||
Cash and cash equivalents, beginning of year | 592 | 1,130 | 6,556 | |||||||||
Cash and cash equivalents, end of year | $ | 33,412 | $ | 592 | $ | 1,130 | ||||||
F-7
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Years | ||||
Building and improvements | 25 | |||
Machinery and equipment | 10 | |||
Tools, dies and molds | 5 |
F-8
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F-9
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F-10
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2005 | 2004 | |||||||
Net income — as reported | $ | 11,042 | $ | 11,107 | ||||
Deduct: Total stock-based compensation expense determined under fair value method for all awards, net of related tax effects | (5,255 | ) | 0 | |||||
Pro forma net income | $ | 5,787 | $ | 11,107 | ||||
Income per share: | ||||||||
Basic — as reported | $ | .61 | $ | .62 | ||||
Basic — pro forma | .32 | .62 | ||||||
Diluted — as reported | $ | .60 | $ | .61 | ||||
Diluted — pro forma | .32 | .61 |
2006 (a) | 2005 | 2004 (a) | ||||||||||
Stock price volatility | n/a | 66% | n/a | |||||||||
Risk-free interest rate | n/a | 3.7% — 4.4 | % | n/a | ||||||||
Expected life of options | n/a | 6 years | n/a | |||||||||
Dividend yield | n/a | .43% — .62 | % | n/a |
(a) | The Company granted no options during 2006 or 2004. |
F-11
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F-12
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Inventory | $ | 11,053 | ||
Prepaid and other current assets | 1,350 | |||
Property, plant and equipment | 42,197 | |||
Noncurrent assets | 742 | |||
Liabilities assumed | (1,800 | ) | ||
$ | 53,542 | |||
Inventory | $ | 40,246 | ||
Prepaid and other current assets | 4,680 | |||
Property, plant and equipment | 55,074 | |||
Noncurrent assets | 604 | |||
$ | 100,604 | |||
F-13
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2006 | 2005 | |||||||
Net sales | $ | 761,796 | $ | 828,183 | ||||
Income before income taxes | 21,786 | 8,383 | ||||||
Net income | 13,072 | 17,803 | ||||||
Diluted earnings per share | .61 | .92 |
2006 | 2005 | |||||||
Raw material | $ | 57,814 | $ | 42,511 | ||||
Work-in-process | 16,738 | 10,939 | ||||||
Finished goods | 84,863 | 74,793 | ||||||
159,415 | 128,243 | |||||||
Adjustment to LIFO basis | (4,811 | ) | (5,551 | ) | ||||
$ | 154,604 | $ | 122,692 | |||||
F-14
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2006 | 2005 | |||||||
Prepaid supplies | $ | 9,227 | $ | 8,051 | ||||
Other | 9,574 | 7,579 | ||||||
$ | 18,801 | $ | 15,630 | |||||
2006 | 2005 | |||||||
Land and improvements | $ | 3,088 | $ | 2,521 | ||||
Buildings and improvements | 78,230 | 63,572 | ||||||
Machinery and equipment | 269,730 | 202,598 | ||||||
Tools, dies and molds | 52,205 | 51,859 | ||||||
Construction-in-process | 4,587 | 2,284 | ||||||
407,840 | 322,834 | |||||||
Less accumulated depreciation | (223,224 | ) | (182,452 | ) | ||||
$ | 184,616 | $ | 140,382 | |||||
F-15
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2006 | 2005 | |||||||
Investment in Titan Europe Plc | $ | 65,881 | $ | 48,467 | ||||
F-16
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2006 | 2005 | |||||||
Deferred financing | $ | 7,534 | $ | 4,014 | ||||
Note receivable from Titan Europe Plc | 0 | 5,191 | ||||||
Other | 5,460 | 6,566 | ||||||
$ | 12,994 | $ | 15,771 | |||||
2006 | 2005 | |||||||
Off-the-road acquisition | $ | 8,900 | $ | 0 | ||||
Wages and commissions | 8,800 | 3,381 | ||||||
Warranty | 4,688 | 1,838 | ||||||
Insurance | 4,458 | 2,430 | ||||||
Other | 10,096 | 4,104 | ||||||
$ | 36,942 | $ | 11,753 | |||||
2006 | 2005 | |||||||
Warranty liability, January 1 | $ | 1,838 | $ | 1,762 | ||||
Warranty assumed with asset purchase | 1,800 | 0 | ||||||
Provision for warranty liabilities | 5,534 | 2,622 | ||||||
Warranty payments made | (4,484 | ) | (2,546 | ) | ||||
Warranty liability, December 31 | $ | 4,688 | $ | 1,838 | ||||
2006 | 2005 | |||||||
Accrued pension liabilities | $ | 8,682 | $ | 15,476 | ||||
Accrued employment liabilities | 4,741 | 2,775 | ||||||
Other | 2,412 | 2,464 | ||||||
$ | 15,835 | $ | 20,715 | |||||
F-17
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2006 | 2005 | |||||||
Senior unsecured notes | $ | 200,000 | $ | 0 | ||||
Revolving credit facility | 0 | 99,100 | ||||||
Senior unsecured convertible notes | 81,200 | 81,200 | ||||||
Industrial revenue bonds and other | 10,164 | 22,159 | ||||||
291,364 | 202,459 | |||||||
Less amounts due within one year | 98 | 11,995 | ||||||
$ | 291,266 | $ | 190,464 | |||||
2007 | $ | 98 | ||
2008 | 566 | |||
2009 | 81,200 | |||
2010 | 9,500 | |||
2011 | 0 | |||
Thereafter | 200,000 | |||
$ | 291,364 | |||
F-18
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Minimum | Unrecognized | |||||||||||||||||||
Currency | Unrealized | Pension | Losses and | |||||||||||||||||
Translation | Gain on | Liability | Prior Service | |||||||||||||||||
Adjustments | Investments | Adjustment | Cost | Total | ||||||||||||||||
Balance at January 1, 2005 | $ | 1,985 | $ | 0 | $ | (18,551 | ) | $ | 0 | $ | (16,566 | ) | ||||||||
Currency translation adjustments | (3,168 | ) | 0 | 0 | 0 | (3,168 | ) | |||||||||||||
Minimum pension liability adjustment, net of tax of $10 | 0 | 0 | (18 | ) | 0 | (18 | ) | |||||||||||||
Balance at December 31, 2005 | (1,183 | ) | 0 | (18,569 | ) | 0 | (19,752 | ) | ||||||||||||
Unrealized gain on investment net of tax of $3,299 | 0 | 6,126 | 0 | 0 | 6,126 | |||||||||||||||
Minimum pension liability adjustment, net of tax of $595 | 0 | 0 | 3,225 | 0 | 3,225 | |||||||||||||||
Adoption of SFAS No. 158, net of tax of $651 | 0 | 0 | 15,344 | (16,405 | ) | (1,061 | ) | |||||||||||||
Balance at December 31, 2006 | $ | (1,183 | ) | $ | 6,126 | $ | 0 | $ | (16,405 | ) | $ | (11,462 | ) | |||||||
F-19
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2006 | 2005 | 2004 | ||||||||||
Interest income | $ | 1,681 | $ | 367 | $ | 669 | ||||||
Dividend income — Titan Europe Plc | 1,281 | 0 | 0 | |||||||||
Foreign exchange gain (loss) | 975 | (1,338 | ) | 537 | ||||||||
Equity income — Titan Europe Plc | 0 | 2,938 | 1,278 | |||||||||
Other (expense) | (373 | ) | (1,009 | ) | (778 | ) | ||||||
$ | 3,564 | $ | 958 | $ | 1,706 | |||||||
F-20
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2006 | 2005 | 2004 | ||||||||||
Domestic | $ | 5,310 | $ | (5,048 | ) | $ | 12,533 | |||||
Foreign | 3,264 | 2,163 | 2,682 | |||||||||
$ | 8,574 | $ | (2,885 | ) | $ | 15,215 | ||||||
2006 | 2005 | 2004 | ||||||||||
Current | ||||||||||||
Federal | $ | 120 | $ | 549 | $ | 2,571 | ||||||
State | 475 | 0 | 0 | |||||||||
Foreign | 183 | 87 | 1,537 | |||||||||
778 | 636 | 4,108 | ||||||||||
Deferred | ||||||||||||
Federal | 2,442 | (13,413 | ) | 0 | ||||||||
State | 210 | (1,150 | ) | 0 | ||||||||
Foreign | 0 | 0 | 0 | |||||||||
2,652 | (14,563 | ) | 0 | |||||||||
Provision (benefit) for income taxes | $ | 3,430 | $ | (13,927 | ) | $ | 4,108 | |||||
2006 | 2005 | 2004 | ||||||||||
Statutory U.S. federal tax rate | 35.0 | % | (35.0 | )% | 35.0 | % | ||||||
Valuation allowance | 0.0 | (488.7 | ) | (47.3 | ) | |||||||
Nondeductible convertible debt conversion charge | 0.0 | 87.7 | 0.0 | |||||||||
Dyneer legal charge | 0.0 | (60.7 | ) | 0.0 | ||||||||
State tax rate change | 0.0 | 21.2 | 0.0 | |||||||||
Repatriation of foreign earnings, net of American Jobs Creation Act benefit | 11.6 | 19.0 | 29.3 | |||||||||
Nondeductible goodwill write-off | 0.0 | 0.0 | 6.9 | |||||||||
Foreign taxes, net | (12.0 | ) | (18.1 | ) | 0.0 | |||||||
State taxes, net | 6.2 | (2.9 | ) | 0.0 | ||||||||
Other, net | (0.8 | ) | (5.2 | ) | 3.1 | |||||||
Effective tax rate | 40.0 | % | (482.7 | )% | 27.0 | % | ||||||
F-21
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2006 | 2005 | |||||||
Deferred tax assets: | ||||||||
Net operating loss carryforward | $ | 12,618 | $ | 14,120 | ||||
Pension | 4,501 | 5,619 | ||||||
Employee benefits and related costs | 3,720 | 2,050 | ||||||
Allowance for bad debts | 1,830 | 2,148 | ||||||
Inventory | 1,351 | 459 | ||||||
EPA reserve | 1,226 | 1,236 | ||||||
Warranty | 1,112 | 699 | ||||||
Other | 2,876 | 3,025 | ||||||
Deferred tax assets | 29,234 | 29,356 | ||||||
Deferred tax liabilities: | ||||||||
Fixed assets | (16,534 | ) | (14,705 | ) | ||||
Unrealized gain on available-for-sale security | (8,937 | ) | (5,638 | ) | ||||
Foreign deferred gain | (2,453 | ) | (2,453 | ) | ||||
Deferred tax liabilities | (27,924 | ) | (22,796 | ) | ||||
Net deferred tax asset | $ | 1,310 | $ | 6,560 | ||||
In October 2004, the American Jobs Creation Act of 2004 was signed into law by the President of the United States of America. This legislation resulted in sweeping revisions to the U.S. Internal Revenue Code and related regulations. The Act provides for a number of changes, including providing taxpayers with an opportunity to repatriate foreign-source income in the U.S. if such repatriated income is invested in the U.S. under a properly approved domestic reinvestment plan. The repatriation provisions of this Act benefited the Company by preserving net operating loss carryforwards.
F-22
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2006 | 2005 | |||||||
Change in benefit obligation: | ||||||||
Benefit obligation at beginning of year | $ | 71,796 | $ | 75,748 | ||||
Interest cost | 3,934 | 4,158 | ||||||
Actuarial gain | (144 | ) | (1,342 | ) | ||||
Benefits paid | (6,742 | ) | (6,768 | ) | ||||
Benefit obligation at end of year | $ | 68,844 | $ | 71,796 | ||||
Change in plan assets: | ||||||||
Fair value of plan assets at beginning of year | $ | 56,802 | $ | 57,985 | ||||
Actual return on plan assets | 6,578 | 1,753 | ||||||
Employer contributions | 4,028 | 3,832 | ||||||
Benefits paid | (6,742 | ) | (6,768 | ) | ||||
Fair value of plan assets at end of year | $ | 60,666 | $ | 56,802 | ||||
Unfunded status at end of year | $ | (8,178 | ) | $ | (14,994 | ) | ||
Unrecognized prior service cost | 1,848 | |||||||
Unrecognized net loss | 28,906 | |||||||
Unrecognized deferred tax liability | (337 | ) | ||||||
Net amount recognized | $ | 15,423 | ||||||
Amounts recognized in consolidated balance sheet: | ||||||||
Current assets | $ | 0 | $ | n/a | ||||
Noncurrent assets | 504 | n/a | ||||||
Noncurrent liabilities | (8,682 | ) | n/a | |||||
Prepaid benefit cost | n/a | 483 | ||||||
Intangible asset | n/a | 1,848 | ||||||
Accrued benefit costs | n/a | (15,476 | ) | |||||
Accumulated other comprehensive loss | n/a | 28,568 | ||||||
Net amount recognized in the consolidated balance sheet | $ | (8,178 | ) | $ | 15,423 | |||
F-23
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Unrecognized prior service cost | $ | (1,711 | ) | |
Unrecognized net loss | (25,030 | ) | ||
Unrecognized deferred tax liability | 281 | |||
Deferred tax effect of unrecognized items | 10,055 | |||
Net amount recognized in accumulated other comprehensive loss | $ | (16,405 | ) | |
computation that derived the benefit obligations
at December 31 were as follows:
2006 | 2005 | |||||||
Discount rate | 5.75 | % | 5.75 | % | ||||
Expected long-term return on plan assets | 8.50 | % | 8.50 | % |
Before application | After application | |||||||||||
of SFAS 158 | Adjustments | of SFAS 158 | ||||||||||
Deferred tax asset | $ | 28,583 | $ | 651 | $ | 29,234 | ||||||
Other assets | 14,705 | (1,711 | ) | 12,994 | ||||||||
Accumulated other comprehensive loss, net of tax | (10,401 | ) | (1,061 | ) | (11,462 | ) | ||||||
Total stockholders’ equity | 188,238 | (1,061 | ) | 187,177 |
amounts recognized in other comprehensive income
2006 | 2005 | 2004 | ||||||||||
Net periodic benefit cost: | ||||||||||||
Interest cost | $ | 3,934 | $ | 4,158 | $ | 4,465 | ||||||
Assumed return on assets | (4,673 | ) | (4,809 | ) | (4,394 | ) | ||||||
Amortization of unrecognized prior service cost | 137 | 137 | 136 | |||||||||
Amortization of unrecognized deferred taxes | (56 | ) | (56 | ) | (56 | ) | ||||||
Amortization of net unrecognized loss | 1,848 | 1,754 | 1,609 | |||||||||
Net periodic pension cost | $ | 1,190 | $ | 1,184 | $ | 1,760 | ||||||
2006 | 2005 | 2004 | ||||||||||
Discount rate | 5.75 | % | 5.75 | % | 6.25 | % | ||||||
Expected long-term return on plan assets | 8.50 | % | 8.50 | % | 8.50 | % |
F-24
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Percentage of Plan Assets | Target | |||||||||||
at December 31, | Allocation | |||||||||||
Asset Category | 2006 | 2005 | 2007 | |||||||||
U.S. equities(a) | 65 | % | 64 | % | 44% — 80 | % | ||||||
Fixed income | 21 | % | 20 | % | 20% — 40 | % | ||||||
Cash and cash equivalents | 5 | % | 8 | % | 0% — 20 | % | ||||||
International equities(a) | 9 | % | 8 | % | 0% — 16 | % | ||||||
100 | % | 100 | % | |||||||||
(a) | Total equities may not exceed 80% of total plan assets. |
2007 | $ | 6,170 | ||
2008 | 6,036 | |||
2009 | 5,927 | |||
2010 | 5,764 | |||
2011 | 5,578 | |||
2012-2016 | 26,460 |
F-25
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Options Outstanding | Options Exercisable | |||||||||||||||||||
Weighted Average | Number of | Weighted Average | Number of | Weighted Average | ||||||||||||||||
Price Range | Contractual Life | Options | Exercise Price | Options | Exercise Price | |||||||||||||||
$4.54-$6.69 | 4.3 years | 135,000 | $ | 5.47 | 135,000 | $ | 5.47 | |||||||||||||
$8.00-$9.50 | 2.2 years | 169,870 | $ | 8.40 | 169,870 | $ | 8.40 | |||||||||||||
$12.75-$14.45 | 6.6 years | 389,215 | $ | 13.35 | 389,215 | $ | 13.35 | |||||||||||||
$16.00-$18.00 | 7.1 years | 455,975 | $ | 17.37 | 455,975 | $ | 17.37 | |||||||||||||
1,150,060 | $ | 13.29 | 1,150,060 | $ | 13.29 | |||||||||||||||
F-26
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Shares Subject | Weighted- Average | |||||||
to Option | Exercise Price | |||||||
Outstanding, January 1, 2004 | 948,650 | $ | 11.29 | |||||
Granted | 0 | — | (a) | |||||
Exercised | (23,570 | ) | 8.00 | |||||
Canceled/Expired | (122,690 | ) | 12.16 | |||||
Outstanding, December 31, 2004 | 802,390 | 11.25 | ||||||
Granted | 890,380 | 15.20 | ||||||
Exercised | (135,860 | ) | 11.04 | |||||
Canceled/Expired | (9,400 | ) | 13.47 | |||||
Outstanding, December 31, 2005 | 1,547,510 | 13.53 | ||||||
Granted | 0 | — | (a) | |||||
Exercised | (382,190 | ) | 14.15 | |||||
Canceled/Expired | (15,260 | ) | 16.00 | |||||
Outstanding, December 31, 2006 | 1,150,060 | $ | 13.29 | |||||
(a) | The Company granted no options during 2004 or 2006. |
2007 | $ | 2,575 | ||
2008 | 1,525 | |||
2009 | 962 | |||
2010 | 660 | |||
2011 | 349 | |||
Thereafter | 0 | |||
Total future minimum lease payments | $ | 6,071 | ||
F-27
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F-28
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Earthmoving/ | Reconciling | Consolidated | ||||||||||||||||||
Agricultural | Construction | Consumer | Items | Totals | ||||||||||||||||
2006 | ||||||||||||||||||||
Revenues from external customers | $ | 421,096 | $ | 183,357 | $ | 75,001 | $ | 0 | $ | 679,454 | ||||||||||
Depreciation & amortization | 15,324 | 7,402 | 1,409 | 2,715 | (a) | 26,850 | ||||||||||||||
Income (loss) from operations | 27,351 | 21,837 | 1,655 | (28,832 | )(b) | 22,011 | ||||||||||||||
Total assets | 273,787 | 145,964 | 22,678 | 142,697 | (c) | 585,126 | ||||||||||||||
Capital expenditures | 5,184 | 2,192 | 339 | 567 | (d) | 8,282 | ||||||||||||||
2005 | ||||||||||||||||||||
Revenues from external customers | $ | 310,361 | $ | 131,982 | $ | 27,790 | $ | 0 | $ | 470,133 | ||||||||||
Depreciation & amortization | 11,738 | 5,183 | 1,447 | 2,378 | (a) | 20,746 | ||||||||||||||
Income (loss) from operations | 31,750 | 17,664 | 1,825 | (39,240 | )(b) | 11,999 | ||||||||||||||
Total assets | 239,581 | 89,241 | 22,963 | 88,971 | (c) | 440,756 | ||||||||||||||
Capital expenditures | 3,365 | 1,615 | 230 | 1,542 | (d) | 6,752 | ||||||||||||||
2004 | ||||||||||||||||||||
Revenues from external customers | $ | 316,235 | $ | 160,297 | $ | 34,039 | $ | 0 | $ | 510,571 | ||||||||||
Depreciation & amortization | 12,084 | 6,980 | 1,585 | 4,258 | (a) | 24,907 | ||||||||||||||
Income (loss) from operations | 38,585 | 16,627 | 1,891 | (23,781 | )(b) | 33,322 | ||||||||||||||
Total assets | 173,335 | 78,116 | 17,211 | 85,504 | (c) | 354,166 | ||||||||||||||
Capital expenditures | 2,493 | 1,417 | 185 | 233 | (d) | 4,328 |
(a) | Represents depreciation expense related to property, plant and equipment carried at the corporate level. | |
(b) | Represents corporate expenses including those referred to in (a). Includes Dyneer legal charge of $15.2 million in 2005. | |
(c) | Represents property, plant and equipment and goodwill related to certain acquisitions and other corporate assets. Approximately $37 million of the increase in 2006 from 2005 related to the higher 2006 year-end cash balance. | |
(d) | Represents corporate capital expenditures. |
F-29
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
United | Other | Consolidated | ||||||||||||||
States | Italy | Countries | Totals | |||||||||||||
2006 | ||||||||||||||||
Revenues from external customers | $ | 679,454 | $ | 0 | $ | 0 | $ | 679,454 | ||||||||
Long-lived assets(a) | 196,318 | 0 | 0 | 196,318 | ||||||||||||
2005 | ||||||||||||||||
Revenues from external customers | $ | 470,133 | $ | 0 | $ | 0 | $ | 470,133 | ||||||||
Long-lived assets(b) | 152,084 | 0 | 0 | 152,084 | ||||||||||||
2004 | ||||||||||||||||
Revenues from external customers | $ | 461,125 | $ | 29,584 | $ | 19,862 | $ | 510,571 | ||||||||
Long-lived assets(c) | 92,346 | 0 | 0 | 92,346 |
(a) | Idled assets marketed for sale in the amount of $14 million reclassed/included in the 2006 long-lived assets. | |
(b) | Idled assets marketed for sale in the amount of $18 million are not included in the 2005 long-lived assets. | |
(c) | Idled assets marketed for sale in the amount of $31 million are not included in the 2004 long-lived assets. |
F-30
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
29. | EARNINGS PER SHARE |
Weighted- average | Per share | |||||||||||
Net income | shares | Amount | ||||||||||
2006 | ||||||||||||
(b) Basic earnings per share | $ | 5,144 | 19,701,614 | $ | .26 | |||||||
(c) | ||||||||||||
(d) Effect of stock options | 0 | 342,685 | ||||||||||
(e) | ||||||||||||
(f) Diluted earnings per share(a) | $ | 5,144 | 20,044,299 | $ | .26 | |||||||
(g) | ||||||||||||
2005 | ||||||||||||
(h) Basic earnings per share | $ | 11,042 | 18,052,946 | $ | .61 | |||||||
(i) | ||||||||||||
(j) Effect of stock options | 0 | 230,663 | ||||||||||
(k) | ||||||||||||
(l) Diluted earnings per share(b) | $ | 11,042 | 18,283,609 | $ | .60 | |||||||
2004 | ||||||||||||
(m) Basic earnings per share | $ | 11,107 | 17,798,483 | $ | .62 | |||||||
(n) | ||||||||||||
(o) Effect of stock options | 0 | 75,247 | ||||||||||
(p) Effect of convertible notes | 2,137 | 3,700,669 | ||||||||||
(q) | ||||||||||||
(r) Diluted earnings per share | $ | 13,244 | 21,574,399 | $ | .61 | |||||||
(a) | The effect of convertible notes has not been included as they were anti-dilutive. The weighted-average share amount excluded for convertible notes totaled 6,014,815 shares. |
(b) | The effect of convertible notes has not been included as they were anti-dilutive. The weighted-average share amount excluded for convertible notes totaled 7,146,627 shares. |
F-31
Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
30. | SUPPLEMENTARY DATA — QUARTERLY FINANCIAL INFORMATION (UNAUDITED) |
Quarter ended | March 31 | December 31 | December 31 | |||||||||||||||||
2006 | ||||||||||||||||||||
Net sales | $ | 182,577 | $ | 175,194 | $ | 156,120 | $ | 165,563 | $ | 679,454 | ||||||||||
Gross profit | 31,114 | 22,442 | 17,080 | 2,142 | 72,778 | |||||||||||||||
Net income (loss) | 8,593 | 5,603 | 488 | (9,540 | ) | 5,144 | ||||||||||||||
Per share amounts: | ||||||||||||||||||||
Basic | .44 | .28 | .02 | (.48 | ) | .26 | ||||||||||||||
Diluted (a) | .36 | .24 | .02 | (.48 | ) | .26 | ||||||||||||||
2005 | ||||||||||||||||||||
Net sales | $ | 136,129 | $ | 134,709 | $ | 102,712 | $ | 96,583 | $ | 470,133 | ||||||||||
Gross profit | 24,081 | 22,502 | 10,973 | 6,654 | 64,210 | |||||||||||||||
Net income (loss) | 11,201 | 4,200 | (b) | 1,182 | (5,541 | ) | 11,042 | |||||||||||||
Per share amounts: (a) | ||||||||||||||||||||
Basic | .68 | .25 | (b) | .06 | (.28 | ) | .61 | |||||||||||||
Diluted | .51 | .23 | (b) | .06 | (.28 | ) | .60 |
(a) | As a result of the variances in the outstanding share balances, the year-end per share amounts do not agree to the sum of the quarters. | |
(b) | Noncash convertible debt conversion charge of $7.2 million was included in the quarter ended June 30, 2005. |
F-32
Table of Contents
31. | SUBSIDIARY GUARANTOR FINANCIAL INFORMATION (REQUIRED IN CONNECTION WITH REGISTRATION OF SENIOR UNSECURED NOTES) |
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2006
(All amounts in thousands)
Titan | ||||||||||||||||||||
International, | Non- | |||||||||||||||||||
Inc. | Guarantor | Guarantor | ||||||||||||||||||
(Parent) | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net sales | $ | 0 | $ | 679,454 | $ | 0 | $ | 0 | $ | 679,454 | ||||||||||
Cost of sales | (194 | ) | 606,870 | 0 | 0 | 606,676 | ||||||||||||||
Gross profit | 194 | 72,584 | 0 | 0 | 72,778 | |||||||||||||||
Selling, general and administrative expenses | 15,031 | 26,967 | 144 | 0 | 42,142 | |||||||||||||||
Royalty expense | 0 | 5,001 | 0 | 0 | 5,001 | |||||||||||||||
Idled assets marketed for sale depreciation | 0 | 3,624 | 0 | 0 | 3,624 | |||||||||||||||
(Loss) income from operations | (14,837 | ) | 36,992 | (144 | ) | 0 | 22,011 | |||||||||||||
Interest expense | (16,553 | ) | (448 | ) | 0 | 0 | (17,001 | ) | ||||||||||||
Intercompany interest income (expense) | 4,495 | (5,457 | ) | 962 | 0 | 0 | ||||||||||||||
Other income, net | 432 | 686 | 2,446 | 0 | 3,564 | |||||||||||||||
(Loss) income before income taxes | (26,463 | ) | 31,773 | 3,264 | 0 | 8,574 | ||||||||||||||
(Benefit) provision for income taxes | (10,585 | ) | 12,709 | 1,306 | 0 | 3,430 | ||||||||||||||
Equity in earnings of subsidiaries | 21,022 | 0 | 0 | (21,022 | ) | 0 | ||||||||||||||
Net income | $ | 5,144 | $ | 19,064 | $ | 1,958 | $ | (21,022 | ) | $ | 5,144 | |||||||||
F-33
Table of Contents
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2005
(All amounts in thousands)
Titan | ||||||||||||||||||||
International, | Non- | |||||||||||||||||||
Inc. | Guarantor | Guarantor | ||||||||||||||||||
(Parent) | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net sales | $ | 0 | $ | 470,133 | $ | 0 | $ | 0 | $ | 470,133 | ||||||||||
Cost of sales | 312 | 405,611 | 0 | 0 | 405,923 | |||||||||||||||
Gross (loss) profit | (312 | ) | 64,522 | 0 | 0 | 64,210 | ||||||||||||||
Selling, general and administrative expenses | 11,874 | 20,247 | 149 | 0 | 32,270 | |||||||||||||||
Dyneer legal charge | 0 | 15,205 | 0 | 0 | 15,205 | |||||||||||||||
Idled assets marketed for sale depreciation | 0 | 4,736 | 0 | 0 | 4,736 | |||||||||||||||
(Loss) income from operations | (12,186 | ) | 24,334 | (149 | ) | 0 | 11,999 | |||||||||||||
Interest expense | (8,426 | ) | (191 | ) | 0 | 0 | (8,617 | ) | ||||||||||||
Noncash convertible debt conversion charge | (7,225 | ) | 0 | 0 | 0 | (7,225 | ) | |||||||||||||
Intercompany interest income (expense) | 4,644 | (5,098 | ) | 454 | 0 | 0 | ||||||||||||||
Other (expense) income, net | (606 | ) | (294 | ) | 1,858 | 0 | 958 | |||||||||||||
(Loss) income before income taxes | (23,799 | ) | 18,751 | 2,163 | 0 | (2,885 | ) | |||||||||||||
Benefit for income taxes | 0 | (13,927 | ) | 0 | 0 | (13,927 | ) | |||||||||||||
Equity in earnings of subsidiaries | 34,841 | 0 | 0 | (34,841 | ) | 0 | ||||||||||||||
Net income | $ | 11,042 | $ | 32,678 | $ | 2,163 | $ | (34,841 | ) | $ | 11,042 | |||||||||
CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2004
(All amounts in thousands)
Titan | ||||||||||||||||||||
International, | Non- | |||||||||||||||||||
Inc. | Guarantor | Guarantor | ||||||||||||||||||
(Parent) | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net sales | $ | 0 | $ | 461,125 | $ | 49,446 | $ | 0 | $ | 510,571 | ||||||||||
Cost of sales | 2,011 | 387,886 | 41,174 | 0 | 431,071 | |||||||||||||||
Gross (loss) profit | (2,011 | ) | 73,239 | 8,272 | 0 | 79,500 | ||||||||||||||
Selling, general and administrative expenses | 11,167 | 21,752 | 4,996 | 0 | 37,915 | |||||||||||||||
Idled assets marketed for sale depreciation | 0 | 5,275 | 0 | 0 | 5,275 | |||||||||||||||
Goodwill impairment on Titan Europe | 0 | 0 | 2,988 | 0 | 2,988 | |||||||||||||||
(Loss) income from operations | (13,178 | ) | 46,212 | 288 | 0 | 33,322 | ||||||||||||||
Interest expense | (15,616 | ) | (41 | ) | (502 | ) | 0 | (16,159 | ) | |||||||||||
Debt termination expense | (3,654 | ) | 0 | 0 | 0 | (3,654 | ) | |||||||||||||
Intercompany interest income (expense) | 3,976 | (4,747 | ) | 771 | 0 | 0 | ||||||||||||||
Other income (expense), net | 258 | (677 | ) | 2,125 | 0 | 1,706 | ||||||||||||||
(Loss) income before income taxes | (28,214 | ) | 40,747 | 2,682 | 0 | 15,215 | ||||||||||||||
(Benefit) provision for income taxes | (7,618 | ) | 11,002 | 724 | 0 | 4,108 | ||||||||||||||
Equity in earnings of subsidiaries | 31,703 | 0 | 0 | (31,703 | ) | 0 | ||||||||||||||
Net income | $ | 11,107 | $ | 29,745 | $ | 1,958 | $ | (31,703 | ) | $ | 11,107 | |||||||||
F-34
Table of Contents
CONSOLIDATING CONDENSED BALANCE SHEETS
DECEMBER 31, 2006
(All amounts in thousands)
Titan | ||||||||||||||||||||
International, | Non- | |||||||||||||||||||
Inc. | Guarantor | Guarantor | ||||||||||||||||||
(Parent) | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Assets | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 33,220 | $ | 69 | $ | 123 | $ | 0 | $ | 33,412 | ||||||||||
Accounts receivable | (38 | ) | 73,920 | 0 | 0 | 73,882 | ||||||||||||||
Inventories | 0 | 154,604 | 0 | 0 | 154,604 | |||||||||||||||
Deferred income taxes | 1,095 | 28,139 | 0 | 0 | 29,234 | |||||||||||||||
Prepaid and other current assets | 2,842 | 15,897 | 62 | 0 | 18,801 | |||||||||||||||
Total current assets | 37,119 | 272,629 | 185 | 0 | 309,933 | |||||||||||||||
Property, plant and equipment, net | 1,279 | 183,337 | 0 | 0 | 184,616 | |||||||||||||||
Investment in Titan Europe Plc | 25,534 | 0 | 40,347 | 0 | 65,881 | |||||||||||||||
Goodwill | 0 | 11,702 | 0 | 0 | 11,702 | |||||||||||||||
Investment in subsidiaries | 14,517 | 0 | 0 | (14,517 | ) | 0 | ||||||||||||||
Intercompany assets | 406,017 | 0 | 0 | (406,017 | ) | 0 | ||||||||||||||
Other assets | 8,802 | 4,192 | 0 | 0 | 12,994 | |||||||||||||||
Total assets | $ | 493,268 | $ | 471,860 | $ | 40,532 | $ | (420,534 | ) | $ | 585,126 | |||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Short-term debt | $ | 0 | $ | 98 | $ | 0 | $ | 0 | $ | 98 | ||||||||||
Accounts payable | 1,058 | 24,826 | 0 | 0 | 25,884 | |||||||||||||||
Other current liabilities | 3,437 | 33,509 | (11 | ) | 7 | 36,942 | ||||||||||||||
Total current liabilities | 4,495 | 58,433 | (11 | ) | 7 | 62,924 | ||||||||||||||
Long-term debt | 290,700 | 566 | 0 | 0 | 291,266 | |||||||||||||||
Deferred income taxes | 8,874 | 16,597 | 2,453 | 0 | 27,924 | |||||||||||||||
Other long-term liabilities | 2,022 | 13,796 | 17 | 0 | 15,835 | |||||||||||||||
Intercompany liabilities | 0 | 398,856 | 7,168 | (406,024 | ) | 0 | ||||||||||||||
Stockholders’ equity | 187,177 | (16,388 | ) | 30,905 | (14,517 | ) | 187,177 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 493,268 | $ | 471,860 | $ | 40,532 | $ | (420,534 | ) | $ | 585,126 | |||||||||
F-35
Table of Contents
CONSOLIDATING CONDENSED BALANCE SHEETS
DECEMBER 31, 2005
(All amounts in thousands)
Titan | ||||||||||||||||||||
International, | Non- | |||||||||||||||||||
Inc. | Guarantor | Guarantor | ||||||||||||||||||
(Parent) | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Assets | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 59 | $ | 49 | $ | 484 | $ | 0 | $ | 592 | ||||||||||
Accounts receivable | (20 | ) | 47,132 | 0 | 0 | 47,112 | ||||||||||||||
Inventories | 0 | 122,692 | 0 | 0 | 122,692 | |||||||||||||||
Deferred income taxes | 1,211 | 18,930 | 0 | 0 | 20,141 | |||||||||||||||
Prepaid and other current assets | 1,438 | 14,012 | 180 | 0 | 15,630 | |||||||||||||||
Total current assets | 2,688 | 202,815 | 664 | 0 | 206,167 | |||||||||||||||
Property, plant and equipment, net | 1,869 | 138,513 | 0 | 0 | 140,382 | |||||||||||||||
Idled assets marketed for sale | 0 | 18,267 | 0 | 0 | 18,267 | |||||||||||||||
Investment in Titan Europe Plc | 16,109 | 0 | 32,358 | 0 | 48,467 | |||||||||||||||
Goodwill | 0 | 11,702 | 0 | 0 | 11,702 | |||||||||||||||
Investment in subs | 3,417 | 0 | 0 | (3,417 | ) | 0 | ||||||||||||||
Intercompany assets | 337,037 | 0 | 0 | (337,037 | ) | 0 | ||||||||||||||
Other assets | 5,479 | 3,177 | 7,115 | 0 | 15,771 | |||||||||||||||
Total assets | $ | 366,599 | $ | 374,474 | $ | 40,137 | $ | (340,454 | ) | $ | 440,756 | |||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Short-term debt | $ | 0 | $ | 11,995 | $ | 0 | $ | 0 | $ | 11,995 | ||||||||||
Accounts payable | 677 | 23,758 | 0 | 0 | 24,435 | |||||||||||||||
Other current liabilities | 2,656 | 9,085 | 8 | 4 | 11,753 | |||||||||||||||
Total current liabilities | 3,333 | 44,838 | 8 | 4 | 48,183 | |||||||||||||||
Long-term debt | 189,800 | 664 | 0 | 0 | 190,464 | |||||||||||||||
Deferred income taxes | 5,621 | 5,507 | 2,453 | 0 | 13,581 | |||||||||||||||
Other long-term liabilities | 32 | 20,621 | 62 | 0 | 20,715 | |||||||||||||||
Intercompany liabilities | 0 | 327,251 | 9,790 | (337,041 | ) | 0 | ||||||||||||||
Stockholders’ equity | 167,813 | (24,407 | ) | 27,824 | (3,417 | ) | 167,813 | |||||||||||||
Total liabilities and stockholders’ equity | $ | 366,599 | $ | 374,474 | $ | 40,137 | $ | (340,454 | ) | $ | 440,756 | |||||||||
F-36
Table of Contents
CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2006
(All amounts in thousands)
Titan | ||||||||||||||||
International, | Non- | |||||||||||||||
Inc. | Guarantor | Guarantor | ||||||||||||||
(Parent) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||
Net cash provided by (used for) operating activities | $ | 7,691 | $ | (15,492 | ) | $ | 2,261 | $ | (5,540 | ) | ||||||
Cash flows from investing activities: | ||||||||||||||||
Continental off-the-road (OTR) asset acquisition | 0 | (44,642 | ) | 0 | (44,642 | ) | ||||||||||
Capital expenditures | (390 | ) | (7,892 | ) | 0 | (8,282 | ) | |||||||||
Other, net | 149 | 49 | 0 | 198 | ||||||||||||
Net cash used for investing activities | (241 | ) | (52,485 | ) | 0 | (52,726 | ) | |||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from borrowings | 200,000 | 0 | 0 | 200,000 | ||||||||||||
Payment of debt | 0 | (11,995 | ) | 0 | (11,995 | ) | ||||||||||
Payment on revolving credit facility, net | (99,100 | ) | 0 | 0 | (99,100 | ) | ||||||||||
Proceeds from exercise of stock options | 5,407 | 0 | 0 | 5,407 | ||||||||||||
Excess tax benefit from stock options exercised | 646 | 0 | 0 | 646 | ||||||||||||
Payment of financing fees | (3,725 | ) | 0 | 0 | (3,725 | ) | ||||||||||
Dividends paid | (393 | ) | 0 | 0 | (393 | ) | ||||||||||
Intercompany activities | (77,370 | ) | 79,992 | (2,622 | ) | 0 | ||||||||||
Other, net | 246 | 0 | 0 | 246 | ||||||||||||
Net cash provided by (used for) financing activities | 25,711 | 67,997 | (2,622 | ) | 91,086 | |||||||||||
Net increase (decrease) in cash and cash equivalents | 33,161 | 20 | (361 | ) | 32,820 | |||||||||||
Cash and cash equivalents, beginning of year | 59 | 49 | 484 | 592 | ||||||||||||
Cash and cash equivalents, end of year | $ | 33,220 | $ | 69 | $ | 123 | $ | 33,412 | ||||||||
F-37
Table of Contents
CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2005
(All amounts in thousands)
Titan | ||||||||||||||||
International, | Non- | |||||||||||||||
Inc. | Guarantor | Guarantor | ||||||||||||||
(Parent) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||
Net cash provided by operating activities | $ | 12,589 | $ | 8,590 | $ | 1,720 | $ | 22,899 | ||||||||
Cash flows from investing activities: | ||||||||||||||||
Goodyear North American farm tire acquisition | 0 | (100,000 | ) | 0 | (100,000 | ) | ||||||||||
Capital expenditures | (882 | ) | (5,870 | ) | 0 | (6,752 | ) | |||||||||
Decrease in restricted cash deposits | 24,500 | 0 | 0 | 24,500 | ||||||||||||
Asset disposals | 0 | 5,509 | 0 | 5,509 | ||||||||||||
Net cash provided by (used for) investing activities | 23,618 | (100,361 | ) | 0 | (76,743 | ) | ||||||||||
Cash flows from financing activities: | ||||||||||||||||
Payment of debt | 0 | (1,296 | ) | 0 | (1,296 | ) | ||||||||||
Proceeds on revolving credit facility, net | 54,700 | 0 | 0 | 54,700 | ||||||||||||
Proceeds from exercise of stock options | 1,500 | 0 | 0 | 1,500 | ||||||||||||
Payment of financing fees | (1,500 | ) | 0 | 0 | (1,500 | ) | ||||||||||
Dividends paid | (358 | ) | 0 | 0 | (358 | ) | ||||||||||
Intercompany activities | (90,792 | ) | 93,060 | (2,268 | ) | 0 | ||||||||||
Other, net | 260 | 0 | 0 | 260 | ||||||||||||
Net cash (used for) provided by financing activities | (36,190 | ) | 91,764 | (2,268 | ) | 53,306 | ||||||||||
Net increase (decrease) in cash and cash equivalents | 17 | (7 | ) | (548 | ) | (538 | ) | |||||||||
Cash and cash equivalents, beginning of year | 42 | 56 | 1,032 | 1,130 | ||||||||||||
Cash and cash equivalents, end of year | $ | 59 | $ | 49 | $ | 484 | $ | 592 | ||||||||
F-38
Table of Contents
CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2004
(All amounts in thousands)
Titan | ||||||||||||||||
International, | Non- | |||||||||||||||
Inc. | Guarantor | Guarantor | ||||||||||||||
(Parent) | Subsidiaries | Subsidiaries | Consolidated | |||||||||||||
Net cash provided by (used for) operating activities | $ | 13,999 | $ | 15,509 | $ | (11,359 | ) | $ | 18,149 | |||||||
Cash flows from investing activities: | ||||||||||||||||
Capital expenditures | (12 | ) | (3,046 | ) | (1,270 | ) | (4,328 | ) | ||||||||
Decrease in restricted cash deposits | 0 | 24,609 | 0 | 24,609 | ||||||||||||
Titan Europe Plc sale | 0 | 0 | 40,757 | 40,757 | ||||||||||||
Asset disposals | 0 | 1,354 | 0 | 1,354 | ||||||||||||
Other, net | 131 | (131 | ) | 0 | 0 | |||||||||||
Net cash provided by investing activities | 119 | 22,786 | 39,487 | 62,392 | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from borrowings | 115,000 | 0 | 348 | 115,348 | ||||||||||||
Payment of debt | (223,175 | ) | (225 | ) | (2,125 | ) | (225,525 | ) | ||||||||
Proceeds on revolving credit facility, net | 44,400 | 0 | 0 | 44,400 | ||||||||||||
Repurchase of common stock | (15,000 | ) | 0 | 0 | (15,000 | ) | ||||||||||
Payment of financing fees | (4,788 | ) | 0 | 0 | (4,788 | ) | ||||||||||
Dividends paid | (375 | ) | 0 | 0 | (375 | ) | ||||||||||
Intercompany activities | 67,985 | (38,061 | ) | (29,924 | ) | 0 | ||||||||||
Other, net | 189 | 0 | 0 | 189 | ||||||||||||
Net cash used for financing activities | (15,764 | ) | (38,286 | ) | (31,701 | ) | (85,751 | ) | ||||||||
Effect of exchange rate changes on cash | 0 | 0 | (216 | ) | (216 | ) | ||||||||||
Net decrease in cash and cash equivalents | (1,646 | ) | 9 | (3,789 | ) | (5,426 | ) | |||||||||
Cash and cash equivalents, beginning of year | 1,688 | 47 | 4,821 | 6,556 | ||||||||||||
Cash and cash equivalents, end of year | $ | 42 | $ | 56 | $ | 1,032 | $ | 1,130 | ||||||||
F-39
Table of Contents
Exhibit | ||
Number | Description | |
3.1 | Amended and Restated Articles of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Form 10-Q for the quarterly period ended September 30, 1998 (No. 001-12936)) |
II-1
Table of Contents
Exhibit | ||
Number | Description | |
3.2 | Bylaws of the Company (incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form S-4 (No. 33-69228) | |
3.3* | Titan Marketing Services, Inc. articles of incorporation | |
3.4* | Titan Marketing Services, Inc. bylaws | |
3.5* | Titan Wheel Corporation of Illinois articles of incorporation | |
3.6* | Titan Wheel Corporation of Illinois bylaws | |
3.7* | Titan Wheel Corporation of Iowa articles of incorporation | |
3.8* | Titan Wheel Corporation of Iowa bylaws | |
3.9* | Titan Wheel Corporation of South Carolina articles of incorporation | |
3.10* | Titan Wheel Corporation of South Carolina bylaws | |
3.11* | Titan Wheel Corporation of Virginia articles of incorporation | |
3.12* | Titan Wheel Corporation of Virginia bylaws | |
3.13* | Titan Investment Corporation articles of incorporation | |
3.14* | Titan Investment Corporation bylaws | |
3.15* | Titan Tire Corporation articles of incorporation | |
3.16* | Titan Tire Corporation bylaws | |
3.17* | Titan Tire Corporation of Bryan initial articles of incorporation | |
3.18* | Titan Tire corporation of Bryan bylaws | |
3.19* | Titan Tire Corporation of Freeport articles of incorporation | |
3.20* | Titan Tire Corporation of Freeport bylaws | |
3.21* | Titan Tire Corporation of Natchez articles of incorporation | |
3.22* | Titan Tire Corporation of Natchez bylaws | |
3.23* | Titan Tire Corporation of Texas articles of incorporation |
II-2
Table of Contents
Exhibit | ||
Number | Description | |
3.24* | Titan Tire Corporation of Texas bylaws | |
3.25* | Titan Distribution Inc. articles of incorporation | |
3.26* | Titan Distribution Inc. bylaws | |
3.27* | Dyneer Corporation certificate of incorporation | |
3.28* | Dyneer Corporation bylaws | |
3.29* | Dico, Inc. certificate of incorporation | |
3.30* | Dico, Inc. bylaws | |
3.31* | Automotive Wheels, Inc. articles of incorporation | |
3.32* | Automotive Wheels, Inc. bylaws | |
3.33* | Nieman’s, Ltd. articles of incorporation | |
3.34* | Nieman’s, Ltd. Bylaws | |
4.1* | Indenture between the Company, the Guarantors party thereto and U.S. Bank National Association dated December 28, 2006 | |
4.2* | Form of 8% Senior Unsecured Note due 2012 (included as Exhibit A1 of Exhibit 4.1) | |
4.3* | Form of Guarantee relating to the 8% Senior Notes due 2012 (included as Exhibit E of Exhibit 4.1) | |
4.4* | Exchange and Registration Rights Agreement, dated as of December 28, 2006, by and among the Company, the Guarantors and Goldman, Sachs & Co. | |
5.1* | Opinion of Bodman LLP | |
5.2* | Opinion of Schmeideskamp, Robertson, Neu & Mitchell | |
8.1* | Tax Opinion of Bodman LLP | |
12.1* | Statement re Computation of Ratios | |
23.1* | Consent of PricewaterhouseCoopers LLP | |
23.2* | Consent of Bodman LLP (included in Exhibit 5.1) | |
23.3* | Consent of Schmeideskamp, Robertson, Neu & Mitchell |
II-3
Table of Contents
Exhibit | ||
Number | Description | |
(included in Exhibit 5.2) | ||
24.1* | Power of Attorney (included in signature page) | |
25.1* | Statement of eligibility of trustee | |
99.1* | Letter of Transmittal | |
99.2* | Form of Notice of Guaranteed Delivery | |
99.3* | Form of Letter to Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees | |
99.4* | Form of Letter to Clients |
* | Filed herewith. |
II-4
Table of Contents
II-5
Table of Contents
Titan International, Inc. (Registrant) | ||||
By: | /s/ CHERI T. HOLLEY | |||
Name: | Cheri T. Holley | |||
Title: | Vice President, Secretary, and General Counsel | |||
SIGNATURE | TITLE | DATE | ||
/s/ MAURICE M. TAYLOR JR. | Chief Executive Officer and Chairman (Principal Executive Officer) | April 3, 2007 | ||
/s/ KENT W. HACKAMACK | Vice President of Finance and Treasurer (Principal Financial Officer and Principal Accounting Officer) | April 3, 2007 |
II-6
Table of Contents
SIGNATURE | TITLE | DATE | ||
/s/ ERWIN H. BILLIG | Director | April 3, 2007 | ||
/s/ EDWARD J. CAMPBELL | Director | April 3, 2007 | ||
/s/ RICHARD M. CASHIN JR. | Director | April 3, 2007 | ||
/s/ ALBERT J. FEBBO | Director | April 3, 2007 | ||
/s/ MITCHELL I. QUAIN | Director | April 3, 2007 | ||
/s/ ANTHONY L. SOAVE | Director | April 3, 2007 |
II-7
Table of Contents
Titan Marketing Services, Inc. (Registrant) | ||||
By: | /s/ MAURICE M. TAYLOR JR. | |||
Name: | Maurice M. Taylor Jr. | |||
Title: | Chief Executive Officer | |||
SIGNATURE | TITLE | DATE | ||
/s/ MAURICE M. TAYLOR JR. | Chief Executive Officer and Director (Principal Executive Officer) | April 3, 2007 |
II-8
Table of Contents
Titan Wheel Corporation of Illinois (Registrant) | ||||
By: | /s/ MAURICE M. TAYLOR JR. | |||
Name: | Maurice M. Taylor Jr. | |||
Title: | Chief Executive Officer | |||
SIGNATURE | TITLE | DATE | ||
/s/ MAURICE M. TAYLOR JR. | Chief Executive Officer and Director (Principal Executive Officer) | April 3, 2007 |
II-9
Table of Contents
Titan Wheel Corporation of Iowa (Registrant) | ||||
By: | /s/ MAURICE M. TAYLOR JR. | |||
Name: | Maurice M. Taylor Jr. | |||
Title: | Chief Executive Officer | |||
SIGNATURE | TITLE | DATE | ||
/s/ MAURICE M. TAYLOR JR. | Chief Executive Officer and Director (Principal Executive Officer) | April 3, 2007 |
II-10
Table of Contents
Titan Wheel Corporation of South Carolina (Registrant) | ||||
By: | /s/ MAURICE M. TAYLOR JR. | |||
Name: | Maurice M. Taylor Jr. | |||
Title: | Chief Executive Officer | |||
SIGNATURE | TITLE | DATE | ||
/s/ MAURICE M. TAYLOR JR. | Chief Executive Officer and Director (Principal Executive Officer) | April 3, 2007 |
II-11
Table of Contents
Titan Wheel Corporation of Virginia (Registrant) | ||||
By: | /s/ MAURICE M. TAYLOR JR. | |||
Name: | Maurice M. Taylor Jr. | |||
Title: | Chief Executive Officer | |||
SIGNATURE | TITLE | DATE | ||
/s/ MAURICE M. TAYLOR JR. | Chief Executive Officer and Director (Principal Executive Officer) | April 3, 2007 |
II-12
Table of Contents
Titan Investment Corporation (Registrant) | ||||
By: | /s/ MAURICE M. TAYLOR JR. | |||
Name: | Maurice M. Taylor Jr. | |||
Title: | Chief Executive Officer | |||
SIGNATURE | TITLE | DATE | ||
/s/ MAURICE M. TAYLOR JR. | Chief Executive Officer and Director (Principal Executive Officer) | April 3, 2007 |
II-13
Table of Contents
Titan Tire Corporation (Registrant) | ||||
By: | /s/ MAURICE M. TAYLOR JR. | |||
Name: | Maurice M. Taylor Jr. | |||
Title: | Chief Executive Officer | |||
SIGNATURE | TITLE | DATE | ||
/s/ MAURICE M. TAYLOR JR. | Chief Executive Officer and Director (Principal Executive Officer) | April 3, 2007 |
II-14
Table of Contents
Titan Tire Corporation of Bryan (Registrant) | ||||
By: | /s/ MAURICE M. TAYLOR JR. | |||
Name: | Maurice M. Taylor Jr. | |||
Title: | Chief Executive Officer | |||
SIGNATURE | TITLE | DATE | ||
/s/ MAURICE M. TAYLOR JR. | Chief Executive Officer and Director (Principal Executive Officer) | April 3, 2007 |
II-15
Table of Contents
Titan Tire Corporation of Freeport (Registrant) | ||||
By: | /s/ MAURICE M. TAYLOR JR. | |||
Name: | Maurice M. Taylor Jr. | |||
Title: | Chief Executive Officer | |||
SIGNATURE | TITLE | DATE | ||
/s/ MAURICE M. TAYLOR JR. | Chief Executive Officer and Director (Principal Executive Officer) | April 3, 2007 |
II-16
Table of Contents
Titan Tire Corporation of Natchez (Registrant) | ||||
By: | /s/ MAURICE M. TAYLOR JR. | |||
Name: | Maurice M. Taylor Jr. | |||
Title: | Chief Executive Officer | |||
SIGNATURE | TITLE | DATE | ||
/s/ MAURICE M. TAYLOR JR. | Chief Executive Officer and Director (Principal Executive Officer) | April 3, 2007 |
II-17
Table of Contents
Titan Tire Corporation of Texas (Registrant) | ||||
By: | /s/ MAURICE M. TAYLOR JR. | |||
Name: | Maurice M. Taylor Jr. | |||
Title: | Chief Executive Officer | |||
SIGNATURE | TITLE | DATE | ||
/s/ MAURICE M. TAYLOR JR. | Chief Executive Officer and Director (Principal Executive Officer) | April 3, 2007 |
II-18
Table of Contents
Titan Distribution Inc. (Registrant) | ||||
By: | /s/ MAURICE M. TAYLOR JR. | |||
Name: | Maurice M. Taylor Jr. | |||
Title: | Chief Executive Officer | |||
SIGNATURE | TITLE | DATE | ||
/s/ MAURICE M. TAYLOR JR. | Chief Executive Officer and Director (Principal Executive Officer) | April 3, 2007 |
II-19
Table of Contents
Dyneer Corporation (Registrant) | ||||
By: | /s/ MAURICE M. TAYLOR JR. | |||
Name: | Maurice M. Taylor Jr. | |||
Title: | Chief Executive Officer | |||
SIGNATURE | TITLE | DATE | ||
/s/ MAURICE M. TAYLOR JR. | Chief Executive Officer and Director (Principal Executive Officer) | April 3, 2007 |
II-20
Table of Contents
Dico, Inc. (Registrant) | ||||
By: | /s/ MAURICE M. TAYLOR JR. | |||
Name: | Maurice M. Taylor Jr. | |||
Title: | Chief Executive Officer | |||
SIGNATURE | TITLE | DATE | ||
/s/ MAURICE M. TAYLOR JR. | Chief Executive Officer and Director (Principal Executive Officer) | April 3, 2007 |
II-21
Table of Contents
Automotive Wheels, Inc. (Registrant) | ||||
By: | /s/ MAURICE M. TAYLOR JR. | |||
Name: | Maurice M. Taylor Jr. | |||
Title: | Chief Executive Officer | |||
SIGNATURE | TITLE | DATE | ||
/s/ MAURICE M. TAYLOR JR. | Chief Executive Officer and Director (Principal Executive Officer) | April 3, 2007 |
II-22
Table of Contents
Nieman’s, Ltd. (Registrant) | ||||
By: | /s/ MAURICE M. TAYLOR JR. | |||
Name: | Maurice M. Taylor Jr. | |||
Title: | Chief Executive Officer | |||
SIGNATURE | TITLE | DATE | ||
/s/ MAURICE M. TAYLOR JR. | Chief Executive Officer and Director (Principal Executive Officer) | April 3, 2007 |
II-23
Table of Contents
Exhibit | ||
Number | Description | |
3.1 | Amended and Restated Articles of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Form 10-Q for the quarterly period ended September 30, 1998 (No. 001-12936)) | |
3.2 | Bylaws of the Company (incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form S-4 (No. 33-69228) | |
3.3* | Titan Marketing Services, Inc. articles of incorporation | |
3.4* | Titan Marketing Services, Inc. bylaws | |
3.5* | Titan Wheel Corporation of Illinois articles of incorporation | |
3.6* | Titan Wheel Corporation of Illinois bylaws | |
3.7* | Titan Wheel Corporation of Iowa articles of incorporation | |
3.8* | Titan Wheel Corporation of Iowa bylaws | |
3.9* | Titan Wheel Corporation of South Carolina articles of incorporation | |
3.10* | Titan Wheel Corporation of South Carolina bylaws | |
3.11* | Titan Wheel Corporation of Virginia articles of incorporation | |
3.12* | Titan Wheel Corporation of Virginia bylaws | |
3.13* | Titan Investment Corporation articles of incorporation | |
3.14* | Titan Investment Corporation bylaws | |
3.15* | Titan Tire Corporation articles of incorporation | |
3.16* | Titan Tire Corporation bylaws | |
3.17* | Titan Tire Corporation of Bryan initial articles of incorporation | |
3.18* | Titan Tire corporation of Bryan bylaws | |
3.19* | Titan Tire Corporation of Freeport articles of incorporation | |
3.20* | Titan Tire Corporation of Freeport bylaws |
II-24
Table of Contents
Exhibit | ||
Number | Description | |
3.21* | Titan Tire Corporation of Natchez articles of incorporation | |
3.22* | Titan Tire Corporation of Natchez bylaws | |
3.23* | Titan Tire Corporation of Texas articles of incorporation | |
3.24* | Titan Tire Corporation of Texas bylaws | |
3.25* | Titan Distribution Inc. articles of incorporation | |
3.26* | Titan Distribution Inc. bylaws | |
3.27* | Dyneer Corporation certificate of incorporation | |
3.28* | Dyneer Corporation bylaws | |
3.29* | Dico, Inc. certificate of incorporation | |
3.30* | Dico, Inc. bylaws | |
3.31* | Automotive Wheels, Inc. articles of incorporation | |
3.32* | Automotive Wheels, Inc. bylaws | |
3.33* | Nieman’s, Ltd. articles of incorporation | |
3.34* | Nieman’s, Ltd. Bylaws | |
4.1* | Indenture between the Company, the Guarantors party thereto and U.S. Bank National Association dated December 28, 2006 | |
4.2* | Form of 8% Senior Unsecured Note due 2012 (included as Exhibit A1 of Exhibit 4.1) | |
4.3* | Form of Guarantee relating to the 8% Senior Notes due 2012 (included as Exhibit E of Exhibit 4.1) | |
4.4* | Exchange and Registration Rights Agreement, dated as of December 28, 2006, by and among the Company, the Guarantors and Goldman, Sachs & Co. | |
5.1* | Opinion of Bodman LLP | |
5.2* | Opinion of Schmeideskamp, Robertson, Neu & Mitchell | |
8.1* | Tax Opinion of Bodman LLP | |
12.1* | Statement re Computation of Ratios |
II-25
Table of Contents
Exhibit | ||
Number | Description | |
23.1* | Consent of PricewaterhouseCoopers LLP | |
23.2* | Consent of Bodman LLP (included in Exhibit 5.1) | |
23.3* | Consent of Schmeideskamp, Robertson, Neu & Mitchell (included in Exhibit 5.2) | |
24.1* | Power of Attorney (included in signature page) | |
25.1* | Statement of eligibility of trustee | |
99.1* | Letter of Transmittal | |
99.2* | Form of Notice of Guaranteed Delivery | |
99.3* | Form of Letter to Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees | |
99.4* | Form of Letter to Clients |
* | Filed herewith. |
II-26