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SECURITIES AND EXCHANGE COMMISSION
þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
DELAWARE (State or other jurisdiction of incorporation or organization) | 26-1561397 (I.R.S. Employer Identification No.) |
(Address of principal executive offices and zip code)
Large accelerated filer o | Accelerated filero | Non-accelerated filer þ | Smaller reporting company o | |||
(Do not check if a small reporting company) |
Class | Outstanding at June 12, 2008 | |
Common Stock, par value $0.01 per share | 37,608,153 |
INDEX
1 | ||||||||
1 | ||||||||
2 | ||||||||
3 | ||||||||
4 | ||||||||
5 | ||||||||
25 | ||||||||
36 | ||||||||
37 | ||||||||
38 | ||||||||
38 | ||||||||
38 | ||||||||
38 | ||||||||
Exhibit 31.1 | ||||||||
Exhibit 31.2 | ||||||||
Exhibit 32.1 |
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April 30, | October 31, | |||||||
2008 | 2007 | |||||||
(In thousands except share data) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and equivalents | $ | 40,450 | $ | 1,778 | ||||
Accounts and notes receivable, net of allowance of $1,833 and $2,058 | 85,834 | 80,095 | ||||||
Inventories, net | 56,647 | 53,556 | ||||||
Deferred income taxes | 1,901 | 5,370 | ||||||
Prepaid and other current assets | 10,349 | 4,372 | ||||||
Current assets of discontinued operations | — | 431,326 | ||||||
Total current assets | 195,181 | 576,497 | ||||||
Property, plant and equipment, net | 165,786 | 173,590 | ||||||
Deferred income taxes | 12,584 | — | ||||||
Goodwill | 196,372 | 196,385 | ||||||
Intangible assets, net | 64,838 | 68,199 | ||||||
Other assets | 9,499 | 9,225 | ||||||
Assets of discontinued operations | — | 310,926 | ||||||
Total assets | $ | 644,260 | $ | 1,334,822 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 68,614 | $ | 68,167 | ||||
Accrued liabilities | 32,155 | 37,102 | ||||||
Current maturities of long-term debt | 363 | 1,464 | ||||||
Current liabilities of discontinued operations | — | 242,570 | ||||||
Total current liabilities | 101,132 | 349,303 | ||||||
Long-term debt | 2,388 | 2,551 | ||||||
Deferred income taxes | — | 34,457 | ||||||
Non-current environmental reserves | 3,458 | 4,239 | ||||||
Other liabilities | 11,891 | 13,889 | ||||||
Liabilities of discontinued operations | — | 47,234 | ||||||
Total liabilities | 118,869 | 451,673 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock, no par value, shares authorized 1,000,000; issued and outstanding none | — | — | ||||||
Common stock, $0.01 and $0.50 par value, shares authorized 125,000,000 and 100,000,000; issued 37,710,278 and 38,301,033 | 377 | 19,151 | ||||||
Additional paid-in-capital | 229,042 | 214,239 | ||||||
Retained earnings | 297,026 | 690,328 | ||||||
Accumulated other comprehensive income (loss) | 316 | (1,534 | ) | |||||
526,761 | 922,184 | |||||||
Less treasury stock, at cost 981,117 shares at October 31, 2007 | — | (37,287 | ) | |||||
Less common stock held by Rabbi Trust, 102,125 and 130,329 shares | (1,370 | ) | (1,748 | ) | ||||
Total stockholders’ equity | 525,391 | 883,149 | ||||||
Total liabilities and stockholders’ equity | $ | 644,260 | $ | 1,334,822 | ||||
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Three Months Ended | Six Months Ended | |||||||||||||||
April 30, | April 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Net sales | $ | 207,338 | $ | 238,551 | $ | 382,250 | $ | 438,942 | ||||||||
Cost and expenses: | ||||||||||||||||
Cost of sales (exclusive of items shown separately below) | 170,776 | 191,000 | 317,853 | 355,147 | ||||||||||||
Selling, general and administrative expense | 43,637 | 17,196 | 63,680 | 36,399 | ||||||||||||
Depreciation and amortization | 9,147 | 9,060 | 18,106 | 18,897 | ||||||||||||
Operating income (loss) | (16,222 | ) | 21,295 | (17,389 | ) | 28,499 | ||||||||||
Interest expense | (100 | ) | (150 | ) | (238 | ) | (312 | ) | ||||||||
Other, net | 4,242 | 81 | 4,550 | 160 | ||||||||||||
Income (loss) from continuing operations before income taxes | (12,080 | ) | 21,226 | (13,077 | ) | 28,347 | ||||||||||
Income tax expense | 4,765 | (7,849 | ) | 5,153 | (10,481 | ) | ||||||||||
Income(loss) from continuing operations | (7,315 | ) | 13,377 | (7,924 | ) | 17,866 | ||||||||||
Income (loss) from discontinued operations, net of tax | 1,982 | 19,866 | 5,675 | 36,031 | ||||||||||||
Net income (loss) | $ | (5,333 | ) | $ | 33,243 | $ | (2,249 | ) | $ | 53,897 | ||||||
Basic earnings per common share: | ||||||||||||||||
Earnings (loss) from continuing operations | $ | (0.20 | ) | $ | 0.36 | $ | (0.21 | ) | $ | 0.48 | ||||||
Income (loss) from discontinued operations | 0.06 | 0.54 | 0.15 | 0.98 | ||||||||||||
Basic earnings (loss) per share | $ | (0.14 | ) | $ | 0.90 | $ | (0.06 | ) | $ | 1.46 | ||||||
Diluted earnings per common share: | ||||||||||||||||
Earnings (loss) from continuing operations | $ | (0.20 | ) | $ | 0.34 | $ | (0.21 | ) | $ | 0.46 | ||||||
Income (loss) from discontinued operations | 0.06 | 0.52 | 0.15 | 0.94 | ||||||||||||
Basic earnings (loss) per share | $ | (0.14 | ) | $ | 0.86 | $ | (0.06 | ) | $ | 1.40 | ||||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic | 37,265 | 36,943 | 37,215 | 36,920 | ||||||||||||
Diluted | 37,265 | 39,416 | 37,215 | 39,113 |
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Six Months Ended | ||||||||
April 30, | ||||||||
2008 | 2007 | |||||||
(In thousands) | ||||||||
Operating activities: | ||||||||
Net income (loss) | $ | (2,249 | ) | $ | 53,897 | |||
(Income) loss from discontinued operations | (5,675 | ) | (36,031 | ) | ||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||
Depreciation and amortization | 18,111 | 18,901 | ||||||
Deferred income taxes | 2,999 | (782 | ) | |||||
Stock-based compensation | 24,936 | 3,006 | ||||||
Changes in assets and liabilities, net of effects from acquisitions and dispositions: | ||||||||
Decrease (increase) in accounts and notes receivable | (5,896 | ) | (12,080 | ) | ||||
Decrease (increase) in inventory | (3,127 | ) | (8,080 | ) | ||||
Decrease (increase) in other current assets | (4,872 | ) | 633 | |||||
Increase (decrease) in accounts payable | 954 | 16,184 | ||||||
Increase (decrease) in accrued liabilities | (2,294 | ) | (8,510 | ) | ||||
Increase (decrease) in income taxes payable | (646 | ) | (3 | ) | ||||
Other, net | (2,773 | ) | 4,742 | |||||
Cash provided by (used for) operating activities from continuing operations | 19,468 | 31,877 | ||||||
Cash provided by (used for) operating activities from discontinued operations | 25,127 | 52,507 | ||||||
Cash provided by (used for) operating activities | 44,595 | 84,384 | ||||||
Investing activities: | ||||||||
Capital expenditures, net of retirements | (6,941 | ) | (7,292 | ) | ||||
Cash provided by (used for) investing activities from continuing operations | (6,941 | ) | (7,292 | ) | ||||
Cash provided by (used for) investing activities from discontinued operations | 34,113 | (107,515 | ) | |||||
Cash provided by (used for) investing activities | 27,172 | (114,807 | ) | |||||
Financing activities: | ||||||||
Repayments of long-term debt | (1,264 | ) | (2,521 | ) | ||||
Funding from Separation | 27,755 | — | ||||||
Transfers to Quanex Corporation | — | (22,638 | ) | |||||
Other, net | (290 | ) | — | |||||
Cash provided by (used for) financing activities from continuing operations | 26,201 | (25,159 | ) | |||||
Cash provided by (used for) financing activities from discontinued operations | (46,183 | ) | 13,824 | |||||
Cash provided by (used for) financing activities | (19,982 | ) | (11,335 | ) | ||||
Effect of exchange rate changes on cash equivalents | (56 | ) | 11 | |||||
Less: (Increase) decrease in cash and equivalents from discontinued operations | (13,057 | ) | 41,184 | |||||
Increase (decrease) in cash and equivalents from continuing operations | 38,672 | (563 | ) | |||||
Cash and equivalents at beginning of period | 1,778 | 2,247 | ||||||
Cash and equivalents at end of period | $ | 40,450 | $ | 1,684 | ||||
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Accumulated | ||||||||||||||||||||||||
Additional | Other | Total | ||||||||||||||||||||||
Common | Paid-in | Retained | Comprehensive | Stockholders’ | ||||||||||||||||||||
Six Months Ended April 30, 2008 | Stock | Capital | Earnings | Income (Loss) | Other | Equity | ||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||||||
Balance at October 31, 2007 | $ | 19,151 | $ | 214,239 | $ | 690,328 | $ | (1,534 | ) | $ | (39,035 | ) | $ | 883,149 | ||||||||||
Net income (loss) | (2,249 | ) | (2,249 | ) | ||||||||||||||||||||
Common dividends ($0.28 per share) | (10,435 | ) | (10,435 | ) | ||||||||||||||||||||
Stock-based compensation activity (excluding transaction related): | ||||||||||||||||||||||||
Stock-based compensation earned | 2,374 | 2,374 | ||||||||||||||||||||||
Stock options exercised | (1,905 | ) | 5,883 | 3,978 | ||||||||||||||||||||
Restricted stock awards | 3 | (3 | ) | — | ||||||||||||||||||||
Stock-based compensation tax benefit | 1,609 | 1,609 | ||||||||||||||||||||||
Cumulative effect of adopting FIN 48 | 1,948 | 1,948 | ||||||||||||||||||||||
Changes in connection with the Separation: | ||||||||||||||||||||||||
Separation from Quanex Corporation | (349,220 | ) | 1,957 | 378 | (346,885 | ) | ||||||||||||||||||
Retirement of treasury stock | (413 | ) | (30,991 | ) | 31,404 | — | ||||||||||||||||||
Change in par value | (18,343 | ) | 18,343 | — | ||||||||||||||||||||
Modification of stock-based compensation awards | (8 | ) | (6,738 | ) | (6 | ) | (6,752 | ) | ||||||||||||||||
Other | (13 | ) | (782 | ) | (444 | ) | (107 | ) | (1,346 | ) | ||||||||||||||
Balance at April 30, 2008 | $ | 377 | $ | 229,042 | $ | 297,026 | $ | 316 | $ | (1,370 | ) | $ | 525,391 | |||||||||||
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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(continued)
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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(continued)
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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(continued)
Three Months Ended April 30, 2007 | Six Months Ended April 30, 2007 | |||||||||||||||||||||||
Before | After | Before | After | |||||||||||||||||||||
Condensed Consolidated | Application of | Application of | Application of | Application of | ||||||||||||||||||||
Statement of Income | FSP AUG AIR-1 | Adjustment | FSP AUG AIR-1 | FSP AUG AIR-1 | Adjustment | FSP AUG AIR-1 | ||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||
Net sales | $ | 238,551 | $ | — | $ | 238,551 | $ | 438,942 | $ | — | $ | 438,942 | ||||||||||||
Income from continuing operations | 13,377 | — | 13,377 | 17,866 | — | 17,866 | ||||||||||||||||||
Income from discontinued operations, net of tax | 19,423 | 443 | 19,866 | 34,979 | 1,052 | 36,031 | ||||||||||||||||||
Net income | $ | 32,800 | $ | 443 | $ | 33,243 | $ | 52,845 | $ | 1,052 | $ | 53,897 | ||||||||||||
Basic earnings per common share: | ||||||||||||||||||||||||
Earnings from continuing operations | $ | 0.36 | $ | — | $ | 0.36 | $ | 0.48 | $ | — | $ | 0.48 | ||||||||||||
Income from discontinued operations | 0.53 | 0.01 | 0.54 | 0.95 | 0.03 | 0.98 | ||||||||||||||||||
Basic earnings per share | $ | 0.89 | $ | 0.01 | $ | 0.90 | $ | 1.43 | $ | 0.03 | $ | 1.46 | ||||||||||||
Diluted earnings per common share: | ||||||||||||||||||||||||
Earnings from continuing operations | $ | 0.34 | $ | — | $ | 0.34 | $ | 0.46 | $ | — | $ | 0.46 | ||||||||||||
Income from discontinued operations | 0.50 | 0.02 | 0.52 | 0.92 | 0.02 | 0.94 | ||||||||||||||||||
Diluted earnings per share | $ | 0.84 | $ | 0.02 | $ | 0.86 | $ | 1.38 | $ | 0.02 | $ | 1.40 |
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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(continued)
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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(continued)
Current assets: | ||||
Cash and equivalents | $ | 171,061 | ||
Short-term investments | 44,750 | |||
Accounts and notes receivable, net of allowance | 109,658 | |||
Inventories, net | 98,630 | |||
Deferred income taxes | 6,534 | |||
Prepaid and other current assets | 693 | |||
Total current assets | 431,326 | |||
Property, plant and equipment, net | 252,442 | |||
Goodwill | 6,680 | |||
Cash surrender value insurance policies | 29,424 | |||
Intangible assets, net | 17,315 | |||
Other assets | 5,065 | |||
Total assets | $ | 742,252 | ||
Current liabilities: | ||||
Accounts payable | $ | 81,345 | ||
Accrued liabilities | 21,794 | |||
Income taxes payable | 14,431 | |||
Current maturities of long-term debt | 125,000 | |||
Total current liabilities | 242,570 | |||
Deferred pension obligation | 3,750 | |||
Deferred postretirement welfare benefits | 6,189 | |||
Deferred income taxes | 25,776 | |||
Non-current environmental reserves | 8,499 | |||
Other liabilities | 3,020 | |||
Total liabilities | 289,804 | |||
• | Convertible Debentures– Quanex Corporation’s $125.0 million of Convertible Senior Debentures (the Debentures) were retained by Quanex Corporation and reported above in current maturities of long-term debt of discontinued operations. The outstanding principal of the Debentures was reduced from $125.0 million as of October 31, 2007 to $115.6 million as of the Separation as certain holders elected to convert $9.4 million of principal of Debentures during the first fiscal quarter of 2008; the $9.4 million of principal was settled for $18.8 million during the first quarter as the premium (stock price in excess of conversion price) was settled in cash. The conversion obligation of the $115.6 million principal to be settled by Gerdau is approximately $251 million, including the premium. |
• | Environmental Reserves –Quanex Corporation retained the environmental contingencies related to the MACSTEEL plant in Jackson, Michigan, the environmental contingency related to Piper Impact and various other legacy environmental matters. For October 31, 2007, the $1.4 million current portion of these reserves is reported in Accrued liabilities and the $8.5 million non-current portion is reported as Non-current environmental reserves in the previous table of discontinued operations. |
• | Other Contingencies – Quanex Corporation (and thus Gerdau) retained the putative stockholder derivative and class action lawsuit filed in state district court in Harris County, Texas relating to the spin-off of Quanex Building Products and Quanex’s merger with a subsidiary of Gerdau:Momentum Partners v. Raymond A. Jean, et al, Cause No. 2008-01592 (125th State District Court). |
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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(continued)
• | Tax Contingency –Quanex Corporation retained the current Tax Court case regarding the disallowance by the IRS of a capital loss deduction taken and the imposition of penalties and interest on the deficiency for the tax years 1997 and 1998. As of October 31, 2007, a reserve of $16.1 million was reported in income taxes payable. Upon adoption of FIN 48 on November 1, 2007, this reserve became part of the uncertain tax benefit of $17.7 million. Since this tax contingency has been assumed by Gerdau, the related contingency amounts are reported in discontinued operations. |
Three Months Ended | Six Months Ended | |||||||||||||||
April 30, | April 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(In thousands) | ||||||||||||||||
Net sales | $ | 298,939 | $ | 280,887 | $ | 571,578 | $ | 498,137 | ||||||||
Transaction expenses and other related Separation costs, before tax | $ | (15,231 | ) | $ | (1,823 | ) | $ | (18,972 | ) | $ | (1,823 | ) | ||||
Income from discontinued operations before tax | $ | 5,797 | $ | 30,717 | $ | 18,745 | $ | 55,867 | ||||||||
Income tax (expense) | (3,815 | ) | (10,851 | ) | (13,070 | ) | (19,836 | ) | ||||||||
Income from discontinued operations, net of taxes | $ | 1,982 | $ | 19,866 | $ | 5,675 | $ | 36,031 | ||||||||
• | Transaction expenses and other related Separation costs for the three months ended April 30, 2008 include $10.1 million of transaction costs (primarily investment banking fees, legal fees and accounting fees for the merger and discontinued operations’ portion of spin costs) and $4.9 million of expense related to the modification of Quanex Corporation stock based-compensation awards. The six-month figure reflects an additional $3.7 million of transaction related deal costs. The 2007 amounts relate to transaction related deal costs. See Note 12 for additional discussion of the modification of Quanex Corporation’s stock-based compensation awards in connection with the Separation. |
• | With respect to inventories valued using the LIFO method, the vehicular products business (i.e. discontinued operations) recognized $15.3 million of LIFO expense during the three and six months ended April 30, 2008 compared to $3.4 million of LIFO expense during the same periods of 2007. |
• | During the first fiscal quarter of 2008, certain holders elected to convert $9.4 million principal of Debentures. Quanex Corporation paid $18.8 million to settle these conversions, including the premium which Quanex Corporation opted to settle in cash. Quanex Corporation recognized a $9.7 million loss on early extinguishment which represents the conversion premium and the non-cash write-off of unamortized debt issuance costs. This loss is reported in discontinued operations above. |
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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(continued)
As of April 30, 2008 | As of October 31, 2007 | |||||||||||||||
Gross | Gross | |||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | |||||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||||
Amortized intangible assets: | ||||||||||||||||
Customer relationships | $ | 23,691 | $ | 5,795 | $ | 23,691 | $ | 5,014 | ||||||||
Trademarks and trade names | 37,930 | 6,243 | 37,930 | 5,397 | ||||||||||||
Patents | 25,877 | 12,822 | 25,877 | 11,088 | ||||||||||||
Total | $ | 87,498 | $ | 24,860 | $ | 87,498 | $ | 21,499 | ||||||||
Unamortized intangible assets: | ||||||||||||||||
Trade name | $ | 2,200 | $ | 2,200 |
Fiscal Years Ending | Estimated | |||
October 31, | Amortization | |||
2008 (remaining six months) | $ | 2,348 | ||
2009 | $ | 3,867 | ||
2010 | $ | 3,792 | ||
2011 | $ | 3,792 | ||
2012 | $ | 3,792 |
April 30, | October 31, | |||||||
2008 | 2007 | |||||||
(In thousands) | ||||||||
Raw materials | $ | 24,288 | $ | 24,109 | ||||
Finished goods and work in process | 29,738 | 26,613 | ||||||
54,026 | 50,722 | |||||||
Supplies and other | 2,621 | 2,834 | ||||||
Total | $ | 56,647 | $ | 53,556 | ||||
April 30, | October 31, | |||||||
2008 | 2007 | |||||||
(In thousands) | ||||||||
LIFO | $ | 27,818 | $ | 24,784 | ||||
FIFO | 28,829 | 28,772 | ||||||
Total | $ | 56,647 | $ | 53,556 | ||||
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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(continued)
For the Three Months Ended | ||||||||||||||||||||||||
April 30, 2008 | April 30, 2007 | |||||||||||||||||||||||
Per- | Per- | |||||||||||||||||||||||
Income | Shares | Share | Income | Shares | Share | |||||||||||||||||||
(Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | |||||||||||||||||||
Basic earnings and earnings per share | $ | (7,315 | ) | 37,265 | $ | (0.20 | ) | $ | 13,377 | 36,943 | $ | 0.36 | ||||||||||||
Effect of dilutive securities | ||||||||||||||||||||||||
Common stock equivalents arising from settlement of contingent convertible debentures | — | — | — | 1,888 | ||||||||||||||||||||
Common stock equivalents arising from stock options | — | — | — | 401 | ||||||||||||||||||||
Restricted stock | — | — | — | 54 | ||||||||||||||||||||
Common stock held by rabbi trust | — | — | — | 130 | ||||||||||||||||||||
Diluted earnings and earnings per share | $ | (7,315 | ) | 37,265 | $ | (0.20 | ) | $ | 13,377 | 39,416 | $ | 0.34 | ||||||||||||
For the Six Months Ended | ||||||||||||||||||||||||
April 30, 2008 | April 30, 2007 | |||||||||||||||||||||||
Per- | Per- | |||||||||||||||||||||||
Income | Shares | Share | Income | Shares | Share | |||||||||||||||||||
(Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | |||||||||||||||||||
Basic earnings and earnings per share | $ | (7,924 | ) | 37,215 | $ | (0.21 | ) | $ | 17,866 | 36,920 | $ | 0.48 | ||||||||||||
Effect of dilutive securities | ||||||||||||||||||||||||
Common stock equivalents arising from settlement of contingent convertible debentures | — | — | — | 1,670 | ||||||||||||||||||||
Common stock equivalents arising from stock options | — | — | — | 346 | ||||||||||||||||||||
Restricted stock | — | — | — | 47 | ||||||||||||||||||||
Common stock held by rabbi trust | — | — | — | 130 | ||||||||||||||||||||
Diluted earnings and earnings per share | $ | (7,924 | ) | 37,215 | $ | (0.21 | ) | $ | 17,866 | 39,113 | $ | 0.46 | ||||||||||||
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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(continued)
Three Months Ended | Six Months Ended | |||||||||||||||
April 30, | April 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(In thousands) | ||||||||||||||||
Comprehensive income: | ||||||||||||||||
Net income (loss) | $ | (5,333 | ) | $ | 33,243 | $ | (2,249 | ) | $ | 53,897 | ||||||
Foreign currency translation adjustment | (6 | ) | 78 | (107 | ) | 18 | ||||||||||
Total comprehensive income, net of taxes | $ | (5,339 | ) | $ | 33,321 | $ | (2,356 | ) | $ | 53,915 | ||||||
April 30, | October 31, | |||||||
2008 | 2007 | |||||||
(In thousands) | ||||||||
Credit Facility Revolver | $ | — | $ | — | ||||
City of Richmond, Kentucky Industrial Building Revenue Bonds | 1,250 | 2,500 | ||||||
Scott County, Iowa Industrial Waste Recycling Revenue Bonds | 1,400 | 1,400 | ||||||
Capital lease obligations and other | 101 | 115 | ||||||
Total debt | $ | 2,751 | $ | 4,015 | ||||
Less maturities due within one year included in current liabilities | 363 | 1,464 | ||||||
Long-term debt | $ | 2,388 | $ | 2,551 | ||||
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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(continued)
Three Months Ended | Six Months Ended | |||||||||||||||
April 30, | April 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(In thousands) | ||||||||||||||||
Pension Benefits: | ||||||||||||||||
Service cost | $ | 1,105 | $ | 1,069 | $ | 2,293 | $ | 1,509 | ||||||||
Interest cost | 575 | 593 | 1,193 | 838 | ||||||||||||
Expected return on plan assets | (747 | ) | (770 | ) | (1,550 | ) | (1,088 | ) | ||||||||
Amortization of unrecognized prior service cost | — | 27 | — | 38 | ||||||||||||
Amortization of unrecognized net loss | — | 47 | — | 67 | ||||||||||||
Net periodic pension cost | $ | 933 | $ | 966 | $ | 1,936 | $ | 1,364 | ||||||||
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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(continued)
Three Months Ended | Six Months Ended | |||||||||||||||
April 30, | April 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(In thousands) | ||||||||||||||||
Net Sales: | ||||||||||||||||
Engineered Products | $ | 92,494 | $ | 103,583 | $ | 179,770 | $ | 202,452 | ||||||||
Aluminum Sheet Products | 118,281 | 139,188 | 210,348 | 244,425 | ||||||||||||
Intersegment Eliminations | (3,437 | ) | (4,220 | ) | (7,868 | ) | (7,935 | ) | ||||||||
Consolidated | $ | 207,338 | $ | 238,551 | $ | 382,250 | $ | 438,942 | ||||||||
Operating Income (Loss): | ||||||||||||||||
Engineered Products | $ | 5,296 | $ | 9,087 | $ | 7,190 | $ | 12,938 | ||||||||
Aluminum Sheet Products | 9,982 | 16,828 | 15,585 | 27,416 | ||||||||||||
Corporate & Other1 | (31,500 | ) | (4,620 | ) | (40,164 | ) | (11,855 | ) | ||||||||
Consolidated | $ | (16,222 | ) | $ | 21,295 | $ | (17,389 | ) | $ | 28,499 | ||||||
1 | Corporate & Other includes transaction-related expenditures of $25.7 million and $26.4 million during the three and six months ended April 30, 2008, respectively, compared to none in the corresponding periods of 2007. For the three months ended April 30, 2008, this represents $1.9 million for the Company’s share of spin-off transaction costs, $22.8 million non-cash expense related to the modification of stock-based compensation awards and $1.0 million related to the acceleration of executive incentive and other benefits. The six months ended April 30, 2008 reflects an additional $0.7 million of spin-off transaction costs from the first quarter of 2008. For additional discussion of the stock-based compensation modification impact, see also Note 12. |
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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(continued)
April 30, | October 31, | |||||||
2008 | 2007 | |||||||
(In thousands) | ||||||||
Identifiable Assets: | ||||||||
Engineered Products | $ | 437,331 | $ | 444,677 | ||||
Aluminum Sheet Products | 165,580 | 162,139 | ||||||
Corporate, LIFO reserve and Intersegment Eliminations & Other | 41,349 | (14,246 | ) | |||||
Discontinued Operations2 | — | 742,252 | ||||||
Consolidated | $ | 644,260 | $ | 1,334,822 | ||||
Goodwill: | ||||||||
Engineered Products | $ | 175,983 | $ | 175,996 | ||||
Aluminum Sheet Products | 20,389 | 20,389 | ||||||
Consolidated | $ | 196,372 | $ | 196,385 | ||||
The Company’s rabbi trust held Quanex Corporation common stock which was recorded as a contra-equity at historical cost prior to the Separation. Upon completion of the Separation the rabbi trust was separated between Quanex Building Products Corporation and Gerdau. For each share held in the Quanex Building Product’s rabbi trust, it will receive the merger proceeds of $39.20 per share and 1 share of Quanex Building Products common stock. The shares of Quanex Building Products common stock are recorded at the same historical cost as before as a contra-equity, whereas the merger proceeds are consolidated in Other current assets. The merger proceeds equated to $4.0 million to the rabbi trust, which was recorded as income in Other, net for the second fiscal quarter of 2008.
2 | As more fully described in Notes 1 and 3, the Company’s former Vehicular Products segment and non-building products related corporate accounts are reported in discontinued operations for all periods presented. |
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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(continued)
Three Months Ended | Six Months Ended | |||||||||||||||
April 30, | April 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
(In thousands) | ||||||||||||||||
Modification – stock options | $ | 21,696 | $ | — | $ | 21,696 | $ | — | ||||||||
Modification – restricted stock | 1,061 | — | 1,061 | — | ||||||||||||
Modification – subtotal | 22,757 | — | 22,757 | — | ||||||||||||
Stock option expense | 1,202 | 397 | 1,783 | 2,198 | ||||||||||||
Restricted stock amortization | 112 | 412 | 316 | 773 | ||||||||||||
Restricted stock units | 12 | 11 | 80 | 35 | ||||||||||||
Stock-based compensation expense | $ | 24,083 | $ | 820 | $ | 24,936 | $ | 3,006 | ||||||||
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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(continued)
Weighted-Average | ||||||||
Grant-Date Fair | ||||||||
Shares | Value Per Share | |||||||
Nonvested at October 31, 2007 | 113,410 | $ | 34.33 | |||||
Vested prior to the Separation | (72,625 | ) | 31.98 | |||||
Vested in connection with the Separation | (40,785 | ) | 38.51 | |||||
Subtotal at Separation | — | — | ||||||
Granted following Separation | 275,185 | 15.02 | ||||||
Nonvested at April 30, 2008 | 275,185 | $ | 15.02 | |||||
• | Expected Volatility– For 2007, expected volatility was determined using historical volatilities based on historical Quanex Corporation stock prices for a period that matches the expected term. For the 2008 grants following the Separation, expected volatility was determined based on the historical data available for peer companies since Quanex Building Products Corporation is a new company with no historical price data available. The expected volatility assumption is adjusted if future volatility is expected to vary from historical experience. |
• | Expected Term –The expected term of options represents the period of time that options granted are expected to be outstanding and falls between the option’s vesting and contractual expiration dates. For 2007, the expected term assumption was developed by using historical exercise data of Quanex Corporation adjusted as appropriate for future expectations. Quanex Building Products Corporation is a new company with no company specific exercise behavior available. Accordingly, for the 2008 grants following the Separation, expected term was determined based on historical data from Quanex Corporation considering that Quanex Corporation’s employee group was the most similar to Quanex Building Products Corporation’s employee group. Separate groups of employees that have similar historical exercise behavior are considered separately. Accordingly, the expected term range given below results from certain groups of employees exhibiting different behavior. |
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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(continued)
• | Risk-Free Rate– The risk-free rate is based on the yield at the date of grant of a zero-coupon U.S. Treasury bond whose maturity period equals the option’s expected term. |
• | Expected Dividend Yield– For the 2007 grants, the expected dividend yield over the expected term was based on the expected dividend yield of Quanex Corporation prior to the Separation. For the 2008 grants following the Separation, this valuation assumption was based on the expected dividend yield of Quanex Building Products Corporation following the Separation |
Six Months Ended April 30, | ||||||||
2008 | 2007 | |||||||
(Quanex Building | (Quanex | |||||||
Products) | Corporation) | |||||||
Weighted-average expected volatility | 39.0 | % | 36.5 | % | ||||
Expected term (in years) | 4.9-5.1 | 4.9-5.1 | ||||||
Risk-free interest rate | 3.0 | % | 4.4 | % | ||||
Expected dividend yield over expected term | 1.0 | % | 1.8 | % | ||||
Weighted-average grant-date fair value per share | $ | 5.28 | $ | 12.48 |
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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(continued)
Weighted- | Weighted- | |||||||||||||||
Average | Average | Aggregate | ||||||||||||||
Exercise | Remaining | Intrinsic | ||||||||||||||
Price | Contractual | Value | ||||||||||||||
Shares | Per Share | Term (in years) | (000s) | |||||||||||||
Outstanding at October 31, 2007 | 1,427,275 | $ | 27.57 | |||||||||||||
Granted | 5,000 | 52.31 | ||||||||||||||
Exercised | (155,057 | ) | 25.69 | |||||||||||||
Forfeited or expired | — | — | ||||||||||||||
Outstanding just prior to the Separation | 1,277,218 | 27.89 | ||||||||||||||
Modified to liability awards just prior to Separation | (1,277,218 | ) | 27.89 | |||||||||||||
Outstanding at Separation | — | — | ||||||||||||||
Granted following the Separation | 1,097,461 | 15.02 | ||||||||||||||
Outstanding at April 30, 2008 | 1,097,461 | 15.02 | 10.0 | $ | 2,173 | |||||||||||
Vested or expected to vest at April 30, 2008 | 787,779 | 15.02 | 10.0 | $ | 1,560 | |||||||||||
Exercisable at April 30, 2008 | 50,000 | $ | 15.02 | 10.0 | $ | 99 | ||||||||||
Weighted-Average | ||||||||
Grant-Date Fair | ||||||||
Shares | Value Per Share | |||||||
Nonvested at October 31, 2007 | 577,580 | $ | 11.55 | |||||
Granted | 5,000 | 16.31 | ||||||
Vested prior to the Separation | (309,447 | ) | 10.78 | |||||
Vested in connection with the Separation | (273,133 | ) | 12.51 | |||||
Nonvested at Separation | — | — | ||||||
Granted following Separation | 1,097,461 | 5.28 | ||||||
Vested following Separation | (50,000 | ) | 5.24 | |||||
Nonvested at April 30, 2008 | 1,047,461 | $ | 5.28 | |||||
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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(continued)
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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(continued)
Future | ||||
Fiscal Years Ending | Minimum | |||
October 31, | Payments | |||
2008 (remaining six months) | $ | 2,590 | ||
2009 | $ | 4,827 | ||
2010 | $ | 3,647 | ||
2011 | $ | 1,942 | ||
2012 | $ | 1,428 | ||
Thereafter | $ | 5,260 |
April 30, | October 31, | |||||||
2008 | 2007 | |||||||
(In thousands) | ||||||||
Current3 | $ | 1,600 | $ | 1,500 | ||||
Non-current | 3,458 | 4,239 | ||||||
Total environmental reserves | 5,058 | 5,739 | ||||||
Receivable for recovery of remediation costs4 | $ | 5,591 | $ | 5,591 | ||||
3 | Reported in Accrued liabilities on the Consolidated Balance Sheets | |
4 | Reported in Prepaid and other current assets and Other assets on the Consolidated Balance Sheets |
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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(continued)
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Three Months Ended April 30, | Six Months Ended April 30, | |||||||||||||||||||||||||||||||
2008 | 2007 | Change | % | 2008 | 2007 | Change | % | |||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||
Net sales | $ | 207.3 | $ | 238.6 | $ | (31.3 | ) | (13.1 | )% | $ | 382.3 | $ | 438.9 | $ | (56.6 | ) | (12.9 | )% | ||||||||||||||
Cost of sales5 | 170.8 | 191.0 | (20.2 | ) | (10.6 | ) | 317.9 | 355.1 | (37.2 | ) | (10.5 | ) | ||||||||||||||||||||
Selling, general and administrative | 43.6 | 17.2 | 26.4 | 153.5 | 63.7 | 36.4 | 27.3 | 75.0 | ||||||||||||||||||||||||
Depreciation and amortization | 9.1 | 9.1 | — | — | 18.1 | 18.9 | (0.8 | ) | (4.2 | ) | ||||||||||||||||||||||
Operating income | (16.2 | ) | 21.3 | (37.5 | ) | (176.1 | ) | (17.4 | ) | 28.5 | (45.9 | ) | (161.1 | ) | ||||||||||||||||||
Operating income margin | (7.8 | )% | 8.9 | % | (16.7 | )% | (4.6 | )% | 6.5 | % | (11.1 | )% | ||||||||||||||||||||
Interest expense | (0.1 | ) | (0.2 | ) | 0.1 | (50.0 | ) | (0.2 | ) | (0.3 | ) | 0.1 | (33.3 | ) | ||||||||||||||||||
Other, net | 4.2 | 0.1 | 4.1 | 4,100.0 | 4.5 | 0.2 | 4.3 | 2,150.0 | ||||||||||||||||||||||||
Income tax expense | 4.8 | (7.8 | ) | 12.6 | (161.5 | ) | 5.2 | (10.5 | ) | 15.7 | (149.5 | ) | ||||||||||||||||||||
Income from continuing operations | $ | (7.3 | ) | $ | 13.4 | $ | (20.7 | ) | (154.5 | )% | $ | (7.9 | ) | $ | 17.9 | $ | (25.8 | ) | (144.1 | )% | ||||||||||||
5 | Exclusive of items shown separately below. |
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Three Months Ended April 30, | Six Months Ended April 30, | |||||||||||||||||||||||||||||||
2008 | 2007 | Change | % | 2008 | 2007 | Change | % | |||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||
Net sales | $ | 92.5 | $ | 103.6 | $ | (11.1 | ) | (10.7 | )% | $ | 179.8 | $ | 202.4 | $ | (22.6 | ) | (11.2 | )% | ||||||||||||||
Cost of sales6 | 70.2 | 78.3 | (8.1 | ) | (10.3 | ) | 139.5 | 156.1 | (16.6 | ) | (10.6 | ) | ||||||||||||||||||||
Selling, general and administrative | 10.2 | 9.8 | 0.4 | 4.1 | 19.6 | 20.0 | (0.4 | ) | (2.0 | ) | ||||||||||||||||||||||
Depreciation and amortization | 6.8 | 6.4 | 0.4 | 6.3 | 13.5 | 13.4 | 0.1 | 0.7 | ||||||||||||||||||||||||
Operating income | $ | 5.3 | $ | 9.1 | $ | (3.8 | ) | (41.8 | )% | $ | 7.2 | $ | 12.9 | $ | (5.7 | ) | (44.2 | )% | ||||||||||||||
Operating income margin | 5.7 | % | 8.8 | % | (3.1 | )% | 4.0 | % | 6.4 | % | (2.4 | )% |
6 | Exclusive of items shown separately below. |
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Three Months Ended April 30, | Six Months Ended April 30, | |||||||||||||||||||||||||||||||
2008 | 2007 | Change | % | 2008 | 2007 | Change | % | |||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||
Net sales | $ | 118.3 | $ | 139.2 | $ | (20.9 | ) | (15.0 | )% | $ | 210.4 | $ | 244.4 | $ | (34.0 | ) | (13.9 | )% | ||||||||||||||
Cost of sales7 | 104.0 | 117.3 | (13.3 | ) | (11.3 | ) | 186.2 | 207.3 | (21.1 | ) | (10.2 | ) | ||||||||||||||||||||
Selling, general and administrative | 2.0 | 2.5 | (0.5 | ) | (20.0 | ) | 4.1 | 4.3 | (0.2 | ) | (4.7 | ) | ||||||||||||||||||||
Depreciation and amortization | 2.3 | 2.6 | (0.3 | ) | (11.5 | ) | 4.5 | 5.4 | (0.9 | ) | (16.7 | ) | ||||||||||||||||||||
Operating income | $ | 10.0 | $ | 16.8 | $ | (6.8 | ) | (40.5 | )% | $ | 15.6 | $ | 27.4 | $ | (11.8 | ) | (43.1 | )% | ||||||||||||||
Operating income margin | 8.5 | % | 12.1 | % | (3.6 | )% | 7.4 | % | 11.2 | % | (3.8 | )% |
7 | Exclusive of items shown separately below. |
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Three Months Ended April 30, | Six Months Ended April 30, | |||||||||||||||||||||||||||||||
2008 | 2007 | Change | % | 2008 | 2007 | Change | % | |||||||||||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||||||||||||||
Net sales | $ | (3.5 | ) | $ | (4.2 | ) | $ | 0.7 | (16.7 | )% | $ | (7.9 | ) | $ | (7.9 | ) | $ | — | 0.0 | % | ||||||||||||
Cost of sales8 | (3.4 | ) | (4.6 | ) | 1.2 | (26.1 | ) | (7.8 | ) | (8.3 | ) | 0.5 | (6.0 | ) | ||||||||||||||||||
Selling, general and administrative | 31.4 | 4.9 | 26.5 | 540.8 | 40.0 | 12.1 | 27.9 | 230.6 | ||||||||||||||||||||||||
Depreciation and amortization | — | 0.1 | (0.1 | ) | (100.0 | ) | 0.1 | 0.1 | — | 0.0 | ||||||||||||||||||||||
Operating income | $ | (31.5 | ) | $ | (4.6 | ) | $ | (26.9 | ) | 584.8 | % | $ | (40.2 | ) | $ | (11.8 | ) | $ | (28.4 | ) | 240.7 | % | ||||||||||
(Dollars in | ||||
millions) | ||||
Building Products’ share of spin-off transaction costs | $ | 2.6 | ||
Stock-based compensation expense – modification impact | 22.8 | |||
Acceleration of executive incentives and other benefits | 1.0 | |||
Total transaction related expense | $ | 26.4 | ||
8 | Exclusive of items shown separately below. |
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Six Months Ending April 30, | ||||||||
2008 | 2007 | |||||||
(In millions) | ||||||||
Cash flows from operating activities | $ | 19.5 | $ | 31.9 | ||||
Cash flows from investing activities | $ | (6.9 | ) | $ | (7.3 | ) | ||
Cash flows from financing activities | $ | 26.2 | $ | (25.2 | ) |
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Payments Due by Period | ||||||||||||||||||||
Less than | Fiscal 2009 | Fiscal 2011 | After Fiscal | |||||||||||||||||
Contractual Cash Obligations | Total | 6 Months | & 2010 | & 2012 | 2012 | |||||||||||||||
(In Thousands) | ||||||||||||||||||||
Long-term debt, including interest(1) | $ | 3,180 | $ | 261 | $ | 807 | $ | 725 | $ | 1,387 | ||||||||||
Operating leases(2) | 19,694 | 2,590 | 8,474 | 3,370 | 5,260 | |||||||||||||||
Total contractual cash obligations | $ | 22,874 | $ | 2,851 | $ | 9,281 | $ | 4,095 | $ | 6,647 | ||||||||||
(1) | The debt interest amounts are based on rates as of April 30, 2008. | |
(2) | Operating leases cover a range of items from facilities, fork trucks and cars to fax machines and other miscellaneous equipment. |
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Total | Fiscal | |||||||||||||||||||
Amounts | Less than | Fiscal 2009 | 2011 & | After Fiscal | ||||||||||||||||
Other Commercial Commitments | Committed | 6 Months | & 2010 | 2012 | 2012 | |||||||||||||||
Standby letters of credit | $ | 3,842 | $ | 1,421 | $ | 1,153 | $ | — | $ | 1,268 |
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Three Months Ended April 30, 2007 | Six Months Ended April 30, 2007 | |||||||||||||||||||||||
Before | After | Before | After | |||||||||||||||||||||
Condensed Consolidated | Application of | Application of | Application of | Application of | ||||||||||||||||||||
Statement of Income | FSP AUG AIR-1 | Adjustment | FSP AUG AIR-1 | FSP AUG AIR-1 | Adjustment | FSP AUG AIR-1 | ||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||
Net sales | $ | 238,551 | $ | — | $ | 238,551 | $ | 438,942 | $ | — | $ | 438,942 | ||||||||||||
Income from continuing operations | 13,377 | — | 13,377 | 17,866 | — | 17,866 | ||||||||||||||||||
Income from discontinued operations, net of tax | 19,423 | 443 | 19,866 | 34,979 | 1,052 | 36,031 | ||||||||||||||||||
Net income | $ | 32,800 | $ | 443 | $ | 33,243 | $ | 52,845 | $ | 1,052 | $ | 53,897 | ||||||||||||
Basic earnings per common share: | ||||||||||||||||||||||||
Earnings from continuing operations | $ | 0.36 | $ | — | $ | 0.36 | $ | 0.48 | $ | — | $ | 0.48 | ||||||||||||
Income from discontinued operations | 0.53 | 0.01 | 0.54 | 0.95 | 0.03 | 0.98 | ||||||||||||||||||
Basic earnings per share | $ | 0.89 | $ | 0.01 | $ | 0.90 | $ | 1.43 | $ | 0.03 | $ | 1.46 | ||||||||||||
Diluted earnings per common share: | ||||||||||||||||||||||||
Earnings from continuing operations | $ | 0.34 | $ | — | $ | 0.34 | $ | 0.46 | $ | — | $ | 0.46 | ||||||||||||
Income from discontinued operations | 0.50 | 0.02 | 0.52 | 0.92 | 0.02 | 0.94 | ||||||||||||||||||
Diluted earnings per share | $ | 0.84 | $ | 0.02 | $ | 0.86 | $ | 1.38 | $ | 0.02 | $ | 1.40 |
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• | Approval of the merger of Quanex Building Products LLC with the Company in connection with the Distribution of the registrant’s shares to holders of Quanex Corporation stock. |
• | Approval of the Company’s 2008 Omnibus Plan, a copy of which is attached as Exhibit 10.4 to Amendment No. 4 of the Company’s registration statement on Form 10, as filed with the Securities and Exchange Commission on March 17, 2008. |
• | Election of Ms. Susan F. Davis and Mr. Joseph D. Rupp as directors for three year terms that will end at the Company’s annual meeting of shareholders in 2011. Messrs. Joseph J. Ross, Donald G. Barger, Richard L. Wellek and Raymond A. Jean were not up for re-election as directors, and each of their terms of office continued after the meeting. |
Exhibit | ||||
Number | Description of Exhibits | |||
3.1 | Certificate of Incorporation of the Registrant dated as of December 12, 2007, filed as Exhibit 3.1 of the Registrant’s Registration Statement on Form 10 (Reg. No. 001-33913) as filed with the Securities and Exchange Commission on January 11, 2008, and incorporated herein by reference. | |||
3.2 | Bylaws of the Registrant dated as of December 12, 2007, filed as Exhibit 3.2 of the Registrant’s Registration Statement on Form 10 (Reg. No. 001-33913) as filed with the Securities and Exchange Commission on January 11, 2008, and incorporated herein by reference. | |||
4.1 | Form of Registrant’s Common Stock certificate, filed as Exhibit 4.1 of Amendment No. 1 to the Registrant’s Registration Statement on Form 10 (Reg. No. 001-33913) as filed with the Securities and Exchange Commission on February 14, 2008, and incorporated herein by reference. | |||
4.2 | Credit Agreement dated as of April 23, 2008, among the Company, certain of its subsidiaries as guarantors, Wells Fargo Bank, National Association, in its capacity as administrative agent, and certain lender parties, filed as Exhibit 10.1 of the Registrant’s Current Report on Form 8-K (Reg. No. 001-33913) dated April 23, 2008, and incorporated herein by reference. | |||
* 31.1 | Certification by chief executive officer pursuant to Rule 13a-14(a)/15d-14(a). | |||
* 31.2 | Certification by chief financial officer pursuant to Rule 13a-14(a)/15d-14(a). | |||
* 32.1 | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
* | Filed herewith |
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QUANEX BUILDING PRODUCTS CORPORATION | ||||
/s/ Thomas M. Walker | ||||
Thomas M. Walker | ||||
Date: June 16, 2008 | Senior Vice President – Finance and Chief Financial Officer (Principal Financial Officer) |
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Exhibit | ||||
Number | Description of Exhibits | |||
3.1 | Certificate of Incorporation of the Registrant dated as of December 12, 2007, filed as Exhibit 3.1 of the Registrant’s Registration Statement on Form 10 (Reg. No. 001-33913) as filed with the Securities and Exchange Commission on January 11, 2008, and incorporated herein by reference. | |||
3.2 | Bylaws of the Registrant dated as of December 12, 2007, filed as Exhibit 3.2 of the Registrant’s Registration Statement on Form 10 (Reg. No. 001-33913) as filed with the Securities and Exchange Commission on January 11, 2008, and incorporated herein by reference. | |||
4.1 | Form of Registrant’s Common Stock certificate, filed as Exhibit 4.1 of Amendment No. 1 to the Registrant’s Registration Statement on Form 10 (Reg. No. 001-33913) as filed with the Securities and Exchange Commission on February 14, 2008, and incorporated herein by reference. | |||
4.2 | Credit Agreement dated as of April 23, 2008, among the Company, certain of its subsidiaries as guarantors, Wells Fargo Bank, National Association, in its capacity as administrative agent, and certain lender parties, filed as Exhibit 10.1 of the Registrant’s Current Report on Form 8-K (Reg. No. 001-33913) dated April 23, 2008, and incorporated herein by reference. | |||
* 31.1 | Certification by chief executive officer pursuant to Rule 13a-14(a)/15d-14(a). | |||
* 31.2 | Certification by chief financial officer pursuant to Rule 13a-14(a)/15d-14(a). | |||
* 32.1 | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
* | Filed herewith |
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