Guarantor Financial Information | 9 Months Ended |
Sep. 30, 2013 |
Guarantor Financial Information | ' |
Guarantor Financial Information | ' |
Note 16—Guarantor Financial Information |
|
The Notes are guaranteed by the Company, along with certain of our wholly owned subsidiaries. Such guaranties are full, unconditional and joint and several. Condensed consolidating financial information related to the Company, our guarantor subsidiaries and our non-guarantor subsidiaries as of and for the three and nine months ended September 30, 2013 and 2012 are reflected below: |
|
Condensed Consolidating Statement of Operations |
For the three months ended September 30, 2013 |
(Unaudited) |
|
| | Parent | | Guarantor | | Non- | | Elimination | | Total | |
subsidiaries | Guarantor |
| subsidiaries |
Net revenue | | $ | — | | $ | 109,849 | | $ | 150,201 | | $ | (4,039 | ) | $ | 256,011 | |
Direct cost of revenue: | | | | | | | | | | | |
Customers | | — | | 58,677 | | 91,949 | | — | | 150,626 | |
Intercompany | | — | | 3,165 | | 874 | | (4,039 | ) | — | |
| | — | | 61,842 | | 92,823 | | (4,039 | ) | 150,626 | |
Gross profit | | — | | 48,007 | | 57,378 | | — | | 105,385 | |
Operating expenses | | 465 | | 45,069 | | 49,485 | | — | | 95,019 | |
Non-operating expenses (income) | | 8,734 | | (748 | ) | 2,307 | | — | | 10,293 | |
Equity in earnings of subsidiaries | | (2,760 | ) | — | | — | | 2,760 | | — | |
Income (loss) before income taxes | | (6,439 | ) | 3,686 | | 5,586 | | (2,760 | ) | 73 | |
Provision (benefit) for income taxes | | (9,043 | ) | 5,336 | | 1,176 | | — | | (2,531 | ) |
Net income (loss) | | $ | 2,604 | | $ | (1,650 | ) | $ | 4,410 | | $ | (2,760 | ) | $ | 2,604 | |
|
Condensed Consolidating Statement of Operations |
For the nine months ended September 30, 2013 |
(Unaudited) |
|
| | Parent | | Guarantor | | Non- | | Elimination | | Total | |
subsidiaries | Guarantor |
| subsidiaries |
Net revenue | | $ | — | | $ | 335,165 | | $ | 424,842 | | $ | (12,030 | ) | $ | 747,977 | |
Direct cost of revenue: | | | | | | | | | | | |
Customers | | — | | 182,141 | | 260,690 | | — | | 442,831 | |
Intercompany | | — | | 9,905 | | 2,125 | | (12,030 | ) | — | |
| | — | | 192,046 | | 262,815 | | (12,030 | ) | 442,831 | |
Gross profit | | — | | 143,119 | | 162,027 | | — | | 305,146 | |
Operating expenses | | 1,254 | | 139,333 | | 141,541 | | — | | 282,128 | |
Non-operating expenses (income) | | 25,871 | | (4,910 | ) | 5,837 | | — | | 26,798 | |
Equity in earnings of subsidiaries | | (14,414 | ) | — | | — | | 14,414 | | — | |
Income (loss) before income taxes | | (12,711 | ) | 8,696 | | 14,649 | | (14,414 | ) | (3,780 | ) |
Provision (benefit) for income taxes | | (9,037 | ) | 6,615 | | 2,316 | | — | | (106 | ) |
Net income (loss) | | $ | (3,674 | ) | $ | 2,081 | | $ | 12,333 | | $ | (14,414 | ) | $ | (3,674 | ) |
|
Condensed Consolidating Statement of Operations |
For the three months ended September 30, 2012 |
(Unaudited) |
|
| | Parent | | Guarantor | | Non- | | Elimination | | Total | |
subsidiaries | Guarantor |
| subsidiaries |
Net revenue | | $ | — | | $ | 109,210 | | $ | 108,293 | | $ | (6,572 | ) | $ | 210,931 | |
Direct cost of revenue: | | | | | | | | | | | |
Customers | | — | | 55,081 | | 66,916 | | — | | 121,997 | |
Intercompany | | — | | 5,930 | | 642 | | (6,572 | ) | — | |
| | — | | 61,011 | | 67,558 | | (6,572 | ) | 121,997 | |
Gross profit | | — | | 48,199 | | 40,735 | | — | | 88,934 | |
Operating expenses | | 874 | | 42,025 | | 38,739 | | — | | 81,638 | |
Non-operating expenses (income) | | 8,103 | | (2,092 | ) | 2,669 | | — | | 8,680 | |
Equity in earnings of subsidiaries | | 2,288 | | — | | — | | (2,288 | ) | — | |
Income (loss) before income taxes | | (11,265 | ) | 8,266 | | (673 | ) | 2,288 | | (1,384 | ) |
Provision (benefit) for income taxes | | (9,084 | ) | 9,886 | | (5 | ) | — | | 797 | |
Net income (loss) | | $ | (2,181 | ) | $ | (1,620 | ) | $ | (668 | ) | $ | 2,288 | | $ | (2,181 | ) |
|
Condensed Consolidating Statement of Operations |
For the nine months ended September 30, 2012 |
(Unaudited) |
|
| | Parent | | Guarantor | | Non- | | Elimination | | Total | |
subsidiaries | Guarantor |
| subsidiaries |
Net revenue | | $ | — | | $ | 315,222 | | $ | 332,156 | | $ | (23,165 | ) | $ | 624,213 | |
Direct cost of revenue: | | | | | | | | | | | |
Customers | | — | | 163,563 | | 201,212 | | — | | 364,775 | |
Intercompany | | — | | 21,204 | | 1,961 | | (23,165 | ) | — | |
| | — | | 184,767 | | 203,173 | | (23,165 | ) | 364,775 | |
Gross profit | | — | | 130,455 | | 128,983 | | — | | 259,438 | |
Operating expenses | | 2,492 | | 129,636 | | 118,496 | | — | | 250,624 | |
Non-operating expenses (income) | | 23,465 | | (6,486 | ) | 6,161 | | — | | 23,140 | |
Equity in earnings of subsidiaries | | 430 | | — | | — | | (430 | ) | — | |
Income (loss) before income taxes | | (26,387 | ) | 7,305 | | 4,326 | | 430 | | (14,326 | ) |
Provision (benefit) for income taxes | | (9,085 | ) | 8,111 | | 3,950 | | — | | 2,976 | |
Net income (loss) | | $ | (17,302 | ) | $ | (806 | ) | $ | 376 | | $ | 430 | | $ | (17,302 | ) |
|
Condensed Consolidating Statement of Comprehensive Income |
For the three months ended September 30, 2013 |
(Unaudited) |
|
| | Parent | | Guarantor | | Non- | | Elimination | | Total | |
subsidiaries | Guarantor |
| subsidiaries |
Net income (loss) | | $ | 2,604 | | $ | (1,650 | ) | $ | 4,410 | | $ | (2,760 | ) | $ | 2,604 | |
Other comprehensive income: | | | | | | | | | | | |
Change in unrealized gain on forward exchange contracts, net of tax | | 1,714 | | 1,113 | | 601 | | (1,714 | ) | 1,714 | |
Change in cumulative translation adjustment | | 2,443 | | 1,734 | | 709 | | (2,443 | ) | 2,443 | |
Comprehensive income (loss) | | $ | 6,761 | | $ | 1,197 | | $ | 5,720 | | $ | (6,917 | ) | $ | 6,761 | |
|
Condensed Consolidating Statement of Comprehensive Income |
For the nine months ended September 30, 2013 |
(Unaudited) |
|
| | Parent | | Guarantor | | Non- | | Elimination | | Total | |
subsidiaries | Guarantor |
| subsidiaries |
Net income (loss) | | $ | (3,674 | ) | $ | 2,081 | | $ | 12,333 | | $ | (14,414 | ) | $ | (3,674 | ) |
Other comprehensive income: | | | | | | | | | | | |
Change in unrealized gain on forward exchange contracts, net of tax | | (8,477 | ) | (1,459 | ) | (7,018 | ) | 8,477 | | (8,477 | ) |
Change in cumulative translation adjustment | | 835 | | 1,213 | | (378 | ) | (835 | ) | 835 | |
Comprehensive income (loss) | | $ | (11,316 | ) | $ | 1,835 | | $ | 4,937 | | $ | (6,772 | ) | $ | (11,316 | ) |
|
Condensed Consolidating Statement of Comprehensive Income |
For the three months ended September 30, 2012 |
(Unaudited) |
|
| | Parent | | Guarantor | | Non- | | Elimination | | Total | |
subsidiaries | Guarantor |
| subsidiaries |
Net income (loss) | | $ | (2,181 | ) | $ | (1,620 | ) | $ | (668 | ) | $ | 2,288 | | $ | (2,181 | ) |
Other comprehensive income: | | | | | | | | | | | |
Change in unrealized gain on forward exchange contracts, net of tax | | 2,316 | | 1,423 | | 893 | | (2,316 | ) | 2,316 | |
Change in cumulative translation adjustment | | 2,151 | | 1,355 | | 796 | | (2,151 | ) | 2,151 | |
Comprehensive income (loss) | | $ | 2,286 | | $ | 1,158 | | $ | 1,021 | | $ | (2,179 | ) | $ | 2,286 | |
|
Condensed Consolidating Statement of Comprehensive Income |
For the nine months ended September 30, 2012 |
(Unaudited) |
|
| | Parent | | Guarantor | | Non- | | Elimination | | Total | |
subsidiaries | Guarantor |
| subsidiaries |
Net income (loss) | | $ | (17,302 | ) | $ | (806 | ) | $ | 376 | | $ | 430 | | $ | (17,302 | ) |
Other comprehensive income: | | | | | | | | | | | |
Change in unrealized gain on forward exchange contracts, net of tax | | 5,527 | | 2,016 | | 3,511 | | (5,527 | ) | 5,527 | |
Change in cumulative translation adjustment | | (349 | ) | 19 | | (368 | ) | 349 | | (349 | ) |
Comprehensive income (loss) | | $ | (12,124 | ) | $ | 1,229 | | $ | 3,519 | | $ | (4,748 | ) | $ | (12,124 | ) |
|
Condensed Consolidating Balance Sheet |
As of September 30, 2013 |
(Unaudited) |
|
| | Parent | | Guarantor | | Non- | | Elimination | | Total | |
subsidiaries | Guarantor |
| subsidiaries |
Assets | | | | | | | | | | | |
Cash and cash equivalents | | $ | 6 | | $ | 1,614 | | $ | 14,055 | | $ | — | | $ | 15,675 | |
Accounts receivable, net | | — | | 150,709 | | 37,668 | | — | | 188,377 | |
Intercompany receivable | | 37,576 | | — | | 103,075 | | (140,651 | ) | — | |
Other current assets | | 3,972 | | 10,437 | | 9,327 | | — | | 23,736 | |
Total current assets | | 41,554 | | 162,760 | | 164,125 | | (140,651 | ) | 227,788 | |
Equipment and fixtures, net and other assets | | — | | 54,092 | | 62,858 | | — | | 116,950 | |
Investment in subsidiaries | | 456,947 | | 134,288 | | 17 | | (591,252 | ) | — | |
Intercompany receivable | | — | | 140,766 | | — | | (140,766 | ) | — | |
Goodwill and intangible assets, net | | — | | 162,682 | | 153,878 | | — | | 316,560 | |
Total assets | | $ | 498,501 | | $ | 654,588 | | $ | 380,878 | | $ | (872,669 | ) | $ | 661,298 | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | |
Accounts payable | | $ | — | | $ | 8,939 | | $ | 10,095 | | $ | — | | $ | 19,034 | |
Accrued employee compensation and benefits | | — | | 21,372 | | 50,456 | | — | | 71,828 | |
Other accrued expenses | | 13,113 | | 6,703 | | 17,400 | | — | | 37,216 | |
Other current liabilities | | 29,797 | | 11,615 | | 17,355 | | — | | 58,767 | |
Intercompany payable | | — | | 133,269 | | 7,382 | | (140,651 | ) | — | |
Total current liabilities | | 42,910 | | 181,898 | | 102,688 | | (140,651 | ) | 186,845 | |
Intercompany notes payable | | 27,845 | | — | | 112,921 | | (140,766 | ) | — | |
Long-term liabilities | | 228,053 | | 26,771 | | 19,936 | | — | | 274,760 | |
Total shareholders’ equity (deficit) | | 199,693 | | 445,919 | | 145,333 | | (591,252 | ) | 199,693 | |
Total liabilities and stockholders’ equity | | $ | 498,501 | | $ | 654,588 | | $ | 380,878 | | $ | (872,669 | ) | $ | 661,298 | |
|
Condensed Consolidating Balance Sheet |
As of December 31, 2012 |
(Unaudited) |
|
| | Parent | | Guarantor | | Non- | | Elimination | | Total | |
subsidiaries | Guarantor |
| subsidiaries |
Assets | | | | | | | | | | | |
Cash and cash equivalents | | $ | 6 | | $ | 9,975 | | $ | 8,754 | | $ | — | | $ | 18,735 | |
Accounts receivable, net | | — | | 146,078 | | 18,851 | | — | | 164,929 | |
Intercompany receivable | | 32,239 | | — | | 88,776 | | (121,015 | ) | — | |
Other current assets | | 3,587 | | 14,878 | | 10,543 | | — | | 29,008 | |
Total current assets | | 35,832 | | 170,931 | | 126,924 | | (121,015 | ) | 212,672 | |
Equipment and fixtures, net and other assets | | 2,254 | | 48,019 | | 61,994 | | — | | 112,267 | |
Investment in subsidiaries | | 450,175 | | 74,783 | | 17 | | (524,975 | ) | — | |
Intercompany receivable | | — | | 114,480 | | — | | (114,480 | ) | — | |
Goodwill and intangible assets, net | | — | | 169,792 | | 109,297 | | — | | 279,089 | |
Total assets | | $ | 488,261 | | $ | 578,005 | | $ | 298,232 | | $ | (760,470 | ) | $ | 604,028 | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | |
Accounts payable | | $ | — | | $ | 7,485 | | $ | 8,874 | | $ | — | | $ | 16,359 | |
Accrued employee compensation and benefits | | — | | 18,467 | | 39,568 | | — | | 58,035 | |
Other accrued expenses | | 5,947 | | 5,876 | | 8,650 | | — | | 20,473 | |
Other current liabilities | | — | | 11,683 | | 9,635 | | — | | 21,318 | |
Intercompany payable | | — | | 118,041 | | 2,974 | | (121,015 | ) | — | |
Total current liabilities | | 5,947 | | 161,552 | | 69,701 | | (121,015 | ) | 116,185 | |
Intercompany notes payable | | 41,634 | | — | | 72,846 | | (114,480 | ) | — | |
Long-term liabilities | | 230,784 | | 31,915 | | 15,248 | | — | | 277,947 | |
Total shareholders’ equity (deficit) | | 209,896 | | 384,538 | | 140,437 | | (524,975 | ) | 209,896 | |
Total liabilities and stockholders’ equity | | $ | 488,261 | | $ | 578,005 | | $ | 298,232 | | $ | (760,470 | ) | $ | 604,028 | |
|
Condensed Statements of Cash Flows |
For the nine months ended September 30, 2013 |
(Unaudited) |
|
| | Parent | | Guarantor | | Non- | | Elimination | | Total | |
subsidiaries | Guarantor |
| subsidiaries |
Net cash provided by (used in) operating activities | | $ | (6,591 | ) | $ | 26,604 | | $ | 29,859 | | $ | — | | $ | 49,872 | |
Cash flows from investing activities: | | | | | | | | | | | |
Net intercompany receivables | | (5,337 | ) | (26,287 | ) | (14,299 | ) | 45,923 | | — | |
Acquisition of business | | — | | — | | (44,022 | ) | — | | (44,022 | ) |
Cash acquired from acquisition | | — | | — | | 5,217 | | — | | 5,217 | |
Additions to equipment and fixtures | | — | | (21,439 | ) | (9,708 | ) | — | | (31,147 | ) |
Net cash used in investing activities | | (5,337 | ) | (47,726 | ) | (62,812 | ) | 45,923 | | (69,952 | ) |
Cash flows from financing activities: | | | | | | | | | | | |
Net borrowings (repayments) on line of credit | | (4,884 | ) | — | | — | | — | | (4,884 | ) |
Net borrowings (repayments) on long term debt | | 30,601 | | 3,182 | | (1,100 | ) | — | | 32,683 | |
Net repayments on capital leases | | — | | (6,582 | ) | (2,412 | ) | — | | (8,994 | ) |
Net intercompany payables | | (13,789 | ) | 15,448 | | 44,264 | | (45,923 | ) | — | |
Net cash provided by (used in) financing activities | | 11,928 | | 12,048 | | 40,752 | | (45,923 | ) | 18,805 | |
Effect of exchange rates on cash and cash equivalents | | — | | 713 | | (2,498 | ) | — | | (1,785 | ) |
Net increase (decrease) in cash and cash equivalents | | — | | (8,361 | ) | 5,301 | | — | | (3,060 | ) |
Cash and cash equivalents, beginning of period | | 6 | | 9,975 | | 8,754 | | — | | 18,735 | |
Cash and cash equivalents, end of period | | $ | 6 | | $ | 1,614 | | $ | 14,055 | | $ | — | | $ | 15,675 | |
|
Condensed Statements of Cash Flows |
For the nine months ended September 30, 2012 |
(Unaudited) |
|
| | Parent | | Guarantor | | Non- | | Elimination | | Total | |
subsidiaries | Guarantor |
| subsidiaries |
Net cash provided by (used in) operating activities | | $ | (5,781 | ) | $ | 9,557 | | $ | 29,607 | | $ | — | | $ | 33,383 | |
Cash flows from investing activities: | | | | | | | | | | | |
Net intercompany receivables | | (9,032 | ) | (31,610 | ) | (23,981 | ) | 64,623 | | — | |
Investment in subsidiaries | | — | | (100 | ) | — | | 100 | | — | |
Additions to equipment and fixtures | | — | | (11,214 | ) | (25,342 | ) | — | | (36,556 | ) |
Net cash used in investing activities | | (9,032 | ) | (42,924 | ) | (49,323 | ) | 64,723 | | (36,556 | ) |
Cash flows from financing activities: | | | | | | | | | | | |
Net repayments on line of credit | | (8,095 | ) | — | | — | | — | | (8,095 | ) |
Net borrowings (repayments) on long term debt | | — | | 1,125 | | 7,594 | | — | | 8,719 | |
Net repayments on capital leases | | — | | (6,687 | ) | (2,058 | ) | — | | (8,745 | ) |
Investment from parent | | — | | — | | 100 | | (100 | ) | — | |
Net intercompany payables | | 22,919 | | 30,994 | | 10,710 | | (64,623 | ) | — | |
Tax payments for withholding on restricted stock | | (11 | ) | — | | — | | — | | (11 | ) |
Net cash provided by (used in) financing activities | | 14,813 | | 25,432 | | 16,346 | | (64,723 | ) | (8,132 | ) |
Effect of exchange rates on cash and cash equivalents | | — | | 144 | | (55 | ) | — | | 89 | |
Net decrease in cash and cash equivalents | | — | | (7,791 | ) | (3,425 | ) | — | | (11,216 | ) |
Cash and cash equivalents, beginning of period | | 6 | | 11,143 | | 12,099 | | — | | 23,248 | |
Cash and cash equivalents, end of period | | $ | 6 | | $ | 3,352 | | $ | 8,674 | | $ | — | | $ | 12,032 | |