Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 02, 2016 | May. 03, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ASSOCIATED MATERIALS, LLC | |
Entity Central Index Key | 802,967 | |
Current Fiscal Year End Date | --01-02 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Apr. 2, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Membership Interest Description | The registrant’s membership interests outstanding were held by an affiliate of the Registrant | |
Common Shares Outstanding | 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Apr. 02, 2016 | Jan. 02, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 6,071 | $ 9,394 |
Accounts receivable, net | 131,066 | 127,043 |
Inventories | 133,313 | 123,374 |
Income taxes receivable | 1,724 | 1,612 |
Deferred income taxes | 1,502 | 1,502 |
Prepaid expenses and other current assets | 14,887 | 14,163 |
Total current assets | 288,563 | 277,088 |
Property, plant and equipment, at cost | 190,263 | 186,495 |
Less accumulated depreciation | 99,883 | 95,701 |
Property, plant and equipment, net | 90,380 | 90,794 |
Goodwill | 308,139 | 302,908 |
Other intangible assets, net | 396,823 | 397,953 |
Other assets | 4,538 | 4,593 |
Total assets | 1,088,443 | 1,073,336 |
Current liabilities: | ||
Accounts payable | 97,540 | 91,563 |
Accrued liabilities | 92,353 | 83,630 |
Deferred income taxes | 1,231 | 436 |
Income taxes payable | 419 | 36 |
Total current liabilities | 191,543 | 175,665 |
Deferred income taxes | 83,390 | 82,102 |
Other liabilities | 113,310 | 113,123 |
Long-term debt | $ 931,495 | $ 916,807 |
Commitments and contingencies | ||
Member’s deficit | $ (231,295) | $ (214,361) |
Total liabilities and member’s deficit | $ 1,088,443 | $ 1,073,336 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net sales | $ 236,281 | $ 220,366 |
Cost of sales | 183,228 | 178,463 |
Gross profit | 53,053 | 41,903 |
Selling, general and administrative expenses | 59,433 | 58,470 |
Loss from operations | (6,380) | (16,567) |
Interest expense | 20,883 | 20,706 |
Foreign currency (gain) loss | (383) | 516 |
Loss before income taxes | (26,880) | (37,789) |
Income tax expense | 1,132 | 533 |
Net (loss) income | (28,012) | (38,322) |
Other comprehensive (loss) income: | ||
Pension and other postretirement benefit adjustments, net of tax | 17 | 148 |
Foreign currency translation adjustments, net of tax | 11,018 | (11,586) |
Total comprehensive loss | $ (16,977) | $ (49,760) |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Operating Activities | ||
Net loss | $ (28,012) | $ (38,322) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 9,806 | 9,879 |
Deferred income taxes | 767 | 727 |
Provision for losses on accounts receivable | 682 | 771 |
Amortization of deferred financing costs and premium on senior notes | 914 | 906 |
Gain on sale of assets | (11) | 0 |
Stock-based compensation expense | 43 | 25 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,640) | (2,141) |
Inventories | (7,869) | (17,839) |
Accounts payable and accrued liabilities | (13,296) | (20,729) |
Income taxes receivable / payable | 350 | (164) |
Other assets and liabilities | (1,554) | (1,242) |
Net cash used in operating activities | (15,228) | (26,671) |
Investing Activities | ||
Capital expenditures | (1,975) | (6,069) |
Proceeds from the sale of assets | 86 | 6 |
Net cash provided by (used in) investing activities | (1,889) | (6,063) |
Financing Activities | ||
Borrowings under ABL facilities | 38,789 | 44,570 |
Payments under ABL facilities | (50,900) | (13,749) |
Promissory note proceeds | 27,500 | 0 |
Financing costs | (1,624) | 0 |
Net cash (used in) provided by financing activities | 13,765 | 30,821 |
Effect of exchange rate changes on cash and cash equivalents | 29 | 9 |
Net decrease in cash and cash equivalents | (3,323) | (1,904) |
Cash and cash equivalents at beginning of period | 9,394 | 5,963 |
Cash and cash equivalents at end of period | 6,071 | 4,059 |
Supplemental information: | ||
Cash paid for interest | 1,080 | 952 |
Cash paid for income taxes | 3 | 44 |
Capital Expenditures Incurred but Not yet Paid | $ 211 | $ 733 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 02, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Associated Materials, LLC (the “Company”) is a 100% owned subsidiary of Associated Materials Incorporated, formerly known as AMH Intermediate Holdings Corp. (“Holdings”). Holdings is a wholly owned subsidiary of Associated Materials Group, Inc., formerly known as AMH Investment Holdings Corp. (“Parent”), which is controlled by investment funds affiliated with Hellman & Friedman LLC (“H&F”). Holdings and Parent do not have material assets or operations other than their direct and indirect ownership, respectively, of the membership interest of the Company. Approximately 97% of the capital stock of Parent is owned by investment funds affiliated with H&F. The condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting, the instructions to Form 10-Q, and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these interim condensed consolidated financial statements contain all of the normal recurring accruals and adjustments considered necessary for a fair presentation of the unaudited results for the quarters ended April 2, 2016 and April 4, 2015 . These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended January 2, 2016 , filed with the Securities and Exchange Commission (“SEC”) on March 22, 2016 (“Annual Report”). A detailed description of the Company’s significant accounting policies and management judgments is located in the audited financial statements included in its Annual Report. The Company is a leading, vertically integrated manufacturer and distributor of exterior residential building products in the United States (“U.S.”) and Canada. The Company was founded in 1947 when it first introduced residential aluminum siding under the Alside ® name. The Company provides a comprehensive offering of exterior building products, including vinyl windows, vinyl siding, aluminum trim coil, aluminum and steel siding and related accessories, which are produced at the Company’s 11 manufacturing facilities. The Company also sells complementary products that it sources from a network of manufacturers, such as roofing materials, cladding materials, insulation, exterior doors, equipment and tools. The Company also provides installation services. The Company distributes these products through its extensive dual-distribution network to over 50,000 professional exterior contractors, builders and dealers, whom the Company refers to as its “contractor customers.” This dual-distribution network consists of 122 company-operated supply centers, through which the Company sells directly to its contractor customers, and its direct sales channel, through which the Company sells to more than 275 independent distributors, dealers and national account customers. Because most of the Company’s building products are intended for exterior use, sales and operating profits tend to be lower during periods of inclement weather. Weather conditions in the first quarter of each calendar year usually result in that quarter producing significantly less net sales and net cash flows from operations than in any other period of the year. Consequently, the Company has historically had losses or small profits in the first quarter and lower profits from operations in the fourth quarter of each calendar year. Therefore, the results of operations for any interim period are not necessarily indicative of the results of operations for a full year. Adopted Accounting Pronouncements In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). ASU 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability rather than an asset, consistent with the presentation of debt discounts. The recognition and measurement of debt issuance costs are not affected by the new guidance. In August 2015, the FASB issued ASU No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (“ASU 2015-15”). ASU 2015-15 provides that, given the absence of authoritative guidance in ASU 2015-03 with respect to presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements, an entity is permitted to defer and present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. During fiscal 2016, ASU 2015-03 and ASU 2015-05 became effective and accordingly, debt issuance costs of $8.7 million were reclassified from other assets to long-term debt on the January 2, 2016 Condensed Consolidated Balance Sheet Recent Accounting Pronouncements In March 2016, the FASB issued a modified standard on stock compensation. This standard makes several modifications to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. It also clarifies the statement of cash flows presentation for certain components of share-based awards. The standard is effective commencing with our 2017 fiscal year and requires enhanced disclosures. The Company is currently assessing the potential impact of the new requirements under the standard In February 2016, the FASB issued a new standard on leases. The new standard requires lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by finance and operating leases with lease terms of more than 12 months. The amendment is effective commencing with our 2019 fiscal year and requires enhanced disclosures. We are evaluating the timing of adoption of this guidance. In November 2015, the FASB issued guidance that requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet. The guidance is effective in 2017 with early adoption permitted. The guidance is not expected to have a material impact on our balance sheet. We are evaluating the timing of adoption of this guidance. In August 2015, the FASB issued an amendment to defer for one year the effective date of the new standard on revenue recognition issued in May 2014. The new standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new standard is effective commencing with our 2018 fiscal year and requires enhanced disclosures. We are evaluating the timing of adoption of this guidance. In July 2015, the FASB issued guidance that requires entities to measure inventory at the lower of cost or net realizable value. The guidance is effective in 2017 with early adoption permitted. We are evaluating the timing of adoption of this guidance. In August 2014, the FASB issued a standard on the presentation of “Going Concern” in the financial statements. The standard requires management to evaluate whether there are any conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern, and, if present, provide enhanced disclosures. The standard is effective with our 2017 fiscal year. We are evaluating the timing of adoption of this guidance. |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 3 Months Ended |
Apr. 02, 2016 | |
Allowance for Doubtful Accounts [Abstract] | |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make payments. The allowance for doubtful accounts is based on review of the overall condition of accounts receivable balances and review of significant past due accounts. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. Account balances are charged off against the allowance for doubtful accounts after all means of collection have been exhausted and the potential for recovery is considered remote. Accounts receivable that are not expected to be collected within one year, net of the related allowance for doubtful accounts, are included in “Other Assets” in the Condensed Consolidated Balance Sheets. Allowance for doubtful accounts consists of the following (in thousands): April 2, January 2, Allowance for doubtful accounts, current $ 2,957 $ 3,204 Allowance for doubtful accounts, non-current 5,187 4,401 $ 8,144 $ 7,605 |
Inventories
Inventories | 3 Months Ended |
Apr. 02, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are valued at the lower of cost (first in, first out) or market. Inventories consist of the following (in thousands): April 2, January 2, Raw materials $ 32,034 $ 31,024 Work in process 10,906 10,900 Finished goods 90,373 81,450 $ 133,313 $ 123,374 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Apr. 02, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company reviews goodwill for impairment on an annual basis at the beginning of the fourth quarter, or an interim basis if there are indicators of potential impairment. The Company did not recognize any impairment losses of its goodwill during the quarters ended April 2, 2016 and April 4, 2015 . The changes in the carrying amount of goodwill are as follows (in thousands): Goodwill Balance at January 2, 2016 $ 302,908 Foreign currency translation 5,231 Balance at April 2, 2016 $ 308,139 At April 2, 2016 and January 2, 2016 , accumulated goodwill impairment losses were $228.5 million , exclusive of foreign currency translation. The Company’s other intangible assets consist of the following (in thousands): April 2, 2016 January 2, 2016 Cost Accumulated Amortization Net Carrying Value Cost Accumulated Amortization Net Carrying Value Amortized customer bases $ 316,743 $ 135,837 $ 180,906 $ 313,821 $ 128,230 $ 185,591 Amortized non-compete agreements 20 20 — 20 19 1 Total amortized intangible assets 316,763 135,857 180,906 313,841 128,249 185,592 Non-amortized trade names (1) 215,917 — 215,917 212,361 — 212,361 Total intangible assets $ 532,680 $ 135,857 $ 396,823 $ 526,202 $ 128,249 $ 397,953 (1) The balances at April 2, 2016 and January 2, 2016 include accumulated impairment charges of $169.6 million , of which $89.7 million were recorded in the second half of 2014 and $79.9 million were recorded in 2011. The Company’s non-amortized intangible assets consist of the Alside ® , Revere ® , Gentek ® , Preservation ® and Alpine ® trade names and are subject to testing for impairment on an annual basis at the beginning of the fourth quarter, or an interim basis if indicators of potential impairment are present. The Company did not recognize any impairment losses related to its other intangible assets during the quarters ended April 2, 2016 and April 4, 2015 . Finite-lived intangible assets, which consist of customer bases and non-compete agreements, are amortized over their estimated useful lives. The estimated average amortization period for customer bases and non-compete agreements is 13 years and 3 years, respectively. Amortization expense related to other intangible assets was $6.2 million and $6.3 million for the quarters ended April 2, 2016 and April 4, 2015 , respectively. Amortization expense is estimated to be approximately $25 million per year for fiscal years 2016, 2017, 2018, 2019 and 2020. |
Restructuring Costs
Restructuring Costs | 3 Months Ended |
Apr. 02, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs U.S. Distribution and Corporate Functions During the quarter ended October 3, 2015, the Company announced a restructuring plan focused on realigning certain costs within its U.S. distribution business and select corporate functions. The restructuring plan included the closure of four underperforming company-operated supply centers in the U.S. and the elimination of its roofing product offering in 11 U.S. supply centers. Supply center closures were completed by the end of the fourth quarter 2015. Manufacturing The Company discontinued its use of the warehouse facility adjacent to the Ennis manufacturing plant during the second quarter of 2009 and recorded a restructuring liability related to the discontinued use of the warehouse facility. The restructuring liability is re-measured when changes in the expected amount and timing of cash flows related to taxes and insurance over the remaining lease term change. Changes in the restructuring liabilities are as follows (in thousands): Quarter Ended April 2, 2016 Distribution Manufacturing Total Balance at January 2, 2016 $ 1,654 $ 1,147 $ 2,801 Accretion of related lease obligations — 115 115 Payments (298 ) (337 ) (635 ) Balance at April 2, 2016 $ 1,356 $ 925 $ 2,281 Quarter Ended April 4, 2015 Distribution Manufacturing Total Balance at January 3, 2015 $ — $ 1,960 $ 1,960 Accretion of related lease obligations — 114 114 Payments — (364 ) (364 ) Balance at April 4, 2015 $ — $ 1,710 $ 1,710 The remaining restructuring liability is included in “Accrued Liabilities” and “Other Liabilities” in the Condensed Consolidated Balance Sheets and will continue to be paid until April 2020 and July 2020, the lease expiration dates for the Ennis warehouse facility and the last of the supply center closures, respectively. For the quarters ended April 2, 2016 and April 4, 2015, there were no changes in the restructuring liabilities that impacted selling, general and administrative expenses in the Condensed Consolidated Statements of Comprehensive Loss. |
Product Warranty Costs
Product Warranty Costs | 3 Months Ended |
Apr. 02, 2016 | |
Standard Product Warranty Disclosure [Abstract] | |
Product Warranty Costs | Product Warranty Costs Consistent with industry practice, the Company provides homeowners with limited warranties on certain products, primarily related to window and siding product categories. Changes in the warranty reserve are as follows (in thousands): Quarters Ended April 2, April 4, Balance at the beginning of the period $ 85,112 $ 89,940 Provision for warranties issued and changes in estimates for pre-existing warranties 1,327 1,250 Claims paid (1,503 ) (1,328 ) Foreign currency translation 566 (616 ) Balance at the end of the period $ 85,502 $ 89,246 On February 13, 2013, the Company entered into a Settlement Agreement and Release of Claims (the “Settlement”) for a class action lawsuit filed by plaintiffs and a putative nationwide class of homeowners regarding certain warranty related claims for steel and aluminum siding, which became effective on September 2, 2013. The Company expects to incur additional warranty costs associated with the Settlement; however, the Company does not believe the incremental costs, which currently cannot be estimated for recognition purposes, have been or will be material. |
Executive Officers' Separation
Executive Officers' Separation and Hiring Costs | 3 Months Ended |
Apr. 02, 2016 | |
Compensation Related Costs [Abstract] | |
Executive Officers' Separation and Hiring Costs | Executive Officers’ Separation and Hiring Costs Separation and hiring costs related to the Company’s executive officers include payroll taxes, certain benefits and related professional fees, all of which are recorded as a component of selling, general and administrative expenses. During 2014, the Company recorded $2.0 million of separation and hiring costs, primarily related to the resignations of Jerry W. Burris, the former President and Chief Executive Officer and David S. Nagle, the former Chief Operations Officer, AMI Distribution and Services, as well as the hiring of Dana R. Snyder, who was named Interim Chief Executive Officer prior to the appointment of Brian C. Strauss as President and Chief Executive Officer in May 2014. For the quarter ended April 2, 2016 , there was $0.1 million of separation and hiring costs and $0.3 million of remaining payables related to 2014 executive restructuring activities. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Apr. 02, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following (in thousands): April 2, January 2, 9.125% Senior Secured Notes, due 2017 $ 830,000 $ 830,000 Borrowings under the ABL facilities 80,724 92,800 Promissory note, related parties 27,500 — Plus: Unamortized premium 2,340 2,684 Less: Deferred financing costs, net of amortization (9,069 ) (8,677 ) Total long-term debt $ 931,495 $ 916,807 9.125% Senior Secured Notes, due 2017 In October 2010, the Company and its wholly owned subsidiary, AMH New Finance, Inc. (“AMHNF” and, together with the Company, collectively, the “Issuers”) issued and sold $730.0 million of 9.125% Senior Secured Notes due November 1, 2017 (the “existing notes”). The existing notes bear interest at a rate of 9.125% per annum, payable on May 1 and November 1 of each year. On May 1, 2013, the Issuers issued and sold an additional $100.0 million in aggregate principal amount of 9.125% Senior Secured Notes due November 1, 2017 (the “new notes” and, together with existing notes, the “9.125% notes”) at an issue price of 106.00% of the principal amount of the new notes in a private placement. The Company used the net proceeds of the offering to repay the outstanding borrowings under its ABL facilities (as defined below) and for other general corporate purposes. The new notes were issued as additional notes under the same indenture, dated as of October 13, 2010, governing the existing notes, as supplemented by a supplemental indenture (collectively, the “Indenture”). On October 31, 2013, all of the new notes were exchanged for 9.125% Senior Secured Notes due 2017, which have been registered under the Securities Act of 1933, as amended. The new notes are consolidated with and form a single class with the existing notes and have the same terms as to status, redemption, collateral and otherwise (other than issue date, issue price and first interest payment date) as the existing notes. The debt premium related to the issuance of the new notes is being amortized into interest expense over the life of the new notes. The effective interest rate of the new notes, including the premium, is 7.5% as of April 2, 2016 . The 9.125% notes, at par value of $830.0 million , have an estimated fair value, classified as a Level 1 measurement, of $653.6 million and $576.4 million based on quoted market prices as of April 2, 2016 and January 2, 2016 , respectively. The Company may from time to time, in its sole discretion, purchase, redeem or retire the 9.125% notes in privately negotiated or open market transactions, by tender offer or otherwise. On April 15, 2014, Parent filed a request with the SEC to withdraw the Registration Statement on Form S-1 filed by Parent on July 15, 2013 for a proposed IPO of its common stock. The registration statement was withdrawn because a determination has been made not to proceed with an IPO of Parent’s common stock at the time. Guarantees. The 9.125% notes are unconditionally guaranteed, jointly and severally, by each of the Issuers’ 100% owned direct and indirect domestic subsidiaries (“guarantors”) that guarantee our obligations under the ABL facilities. Collateral . The 9.125% notes and the guarantees are secured by a first-priority lien on substantially all of the Issuers’ and the guarantors’ present and future assets located in the United States (other than the ABL collateral, in which the 9.125% notes and the guarantees have a second-priority lien, and certain other excluded assets), including equipment, owned real property valued at $5.0 million or more and all present and future shares of capital stock of each of the Issuers’ and each guarantor’s material directly 100% owned domestic subsidiaries and 65% of the present and future shares of capital stock, of each of the Issuers’ and each guarantor’s directly owned foreign restricted subsidiaries (other than Canadian subsidiaries), in each case subject to the Rule 3-16 exclusion described below, certain other exceptions and customary permitted liens. In addition, the 9.125% notes and the guarantees are secured by a second-priority lien on substantially all of the Issuers’ and the guarantors’ present and future assets, which assets also secure the Issuers’ obligations under the ABL facilities, including accounts receivable, inventory, related general intangibles, certain other related assets and the proceeds thereof. The capital stock and other securities of any subsidiary will be excluded from the collateral securing the 9.125% notes and the guarantees to the extent that the pledge of such capital stock and other securities would result in the Company being required to file separate financial statements of such subsidiary with the SEC pursuant to Rule 3-16 or Rule 3-10 of Regulation S-X under the Securities Act of 1933, as amended. Rule 3-16 of Regulation S-X requires the presentation of a company’s standalone, audited financial statements if that company’s capital stock or other securities are pledged to secure the securities of another issuer, and the greatest of the principal amount, par value, book value and market value of the pledged stock or securities equals or exceeds 20% of the principal amount of the securities secured by such pledge. Accordingly, the collateral securing the 9.125% notes and the guarantees may in the future exclude the capital stock and securities of the Company’s subsidiaries, in each case to the extent necessary to not be subject to such requirement. Optional Redemption . The Issuers have the option to redeem the 9.125% notes, in whole or in part, at any time on or after November 1, 2013 at redemption prices (expressed as percentages of principal amount of the 9.125% notes to be redeemed) of 106.844% , 104.563% , 102.281% and 100.000% during the 12-month periods commencing on November 1, 2013, 2014, 2015 and 2016, respectively, plus accrued and unpaid interest thereon, if any, to, but excluding, the applicable redemption date. Change of Control . Upon the occurrence of a change of control, as defined in the Indenture, the Issuers must give holders of notes the opportunity to sell the Issuers their 9.125% notes at 101% of their face amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. Covenants. The Indenture contains covenants limiting the Issuers’ ability and the ability of their restricted subsidiaries to, among other things: pay dividends or distributions, repurchase equity, prepay junior debt and make certain investments; incur additional debt or issue certain disqualified stock and preferred stock; incur liens on assets; merge or consolidate with another company or sell all or substantially all assets; enter into transactions with affiliates; and enter into agreements that would restrict our subsidiaries to pay dividends or make other payments to us. These covenants are subject to important exceptions and qualifications as described in the Indenture. Most of these covenants will cease to apply for so long as the 9.125% notes have investment grade ratings from both Moody’s Investors Service, Inc. and Standard & Poor’s Rating Services. ABL Facilities In October 2010, the Company and certain of its subsidiaries (as “U.S. borrowers” and “Canadian borrowers” and, collectively, the “borrowers”) entered into the ABL facilities in the amount of $225.0 million (comprised of a $150.0 million U.S. facility and a $75.0 million Canadian facility, the “U.S facility” and the “Canadian facility,” respectively) pursuant to a revolving credit agreement dated October 13, 2010, which was subsequently amended and restated on April 18, 2013 (as amended, the “Amended and Restated Revolving Credit Agreement”) to, among other things, extend the maturity date of the revolving credit agreement from October 13, 2015 to the earlier of (i) April 18, 2018 and (ii) 90 days prior to the maturity date of the existing notes. Subsequently, we terminated the tranche B revolving credit commitments of $12.0 million and wrote off $0.5 million of deferred financing fees related to the ABL facilities. Interest Rate and Fees . At the Company’s option, the U.S. and Canadian tranche A revolving credit loans under the Amended and Restated Revolving Credit Agreement governing the ABL facilities bear interest at the rate equal to (1) the London Interbank Offered Rate (“ LIBOR ”) (for eurodollar loans under the U.S. facility) or the Canadian Dealer Offered Rate (“ CDOR ”) (for loans under the Canadian facility), plus an applicable margin of 2.25% as of April 2, 2016 , or (2) the alternate base rate (for alternate base rate loans under the U.S. facility, which is the highest of a prime rate , the Federal Funds Effective Rate plus 0.50% and a one-month LIBOR rate plus 1.0% per annum) or the alternate Canadian base rate (for loans under the Canadian facility, which is the higher of a Canadian prime rate and the 30-day CDOR plus 1.0% ), plus an applicable margin of 1.25% as of April 2, 2016 , in each case, which interest rate margin may vary in 25 basis point increments between three pricing levels determined by reference to the average excess availability in respect of the U.S. and Canadian tranche A revolving credit loans. In addition to paying interest on outstanding principal under the ABL facilities, the Company is required to pay a commitment fee in respect of the U.S. and Canadian tranche A revolving credit loans, payable quarterly in arrears, of 0.375% . Borrowing Base . Availability for borrowings under each of the U.S. facility and the Canadian facility is subject to a borrowing base, which is based on (i) the U.S borrowers’ eligible accounts receivable and inventory, with respect to the U.S. facility and (ii) the Canadian borrowers’ eligible accounts receivable, inventory and, equipment and real property, in each case, after adjusting for customary reserves and, in the case of the Canadian facility, certain payables established or modified from time to time by and at the permitted discretion of the administrative agent thereunder. To the extent that the value of the components in a borrowing base decline, the applicable borrowing base will decrease and the availability under the ABL facilities may decrease below the $213.0 million of aggregate commitments. In addition, if the amount of outstanding borrowings and letters of credit under the U.S. facility or the Canadian facility exceeds the applicable borrowing base or the applicable revolving credit commitments, we are required to prepay borrowings in an amount sufficient to eliminate the excess. Guarantors . All obligations under the U.S. facility are guaranteed by each existing and subsequently acquired direct and indirect wholly-owned material U.S. restricted subsidiary of us and by our direct parent, other than certain excluded subsidiaries (“U.S. guarantors”). All obligations under the Canadian facility are guaranteed by each existing and subsequently acquired direct and indirect wholly-owned material Canadian restricted subsidiary of us, other than certain excluded subsidiaries (“Canadian guarantors” and, together with U.S. guarantors, “ABL guarantors”) and the U.S. guarantors. Security . All obligations of the U.S. borrowers and the U.S. guarantors under the ABL facilities are secured by a security interest in substantially all of our present and future property and assets, including a first-priority security interest in our capital stock and a second-priority security interest in the capital stock of each of our direct, material wholly-owned restricted subsidiaries (the “U.S ABL Collateral”. The Canadian security agreement provides that all obligations of the Canadian borrowers and the Canadian guarantors are secured by the U.S. ABL Collateral and a security interest in substantially all of our Canadian assets, including a first-priority security interest in the capital stock of the Canadian borrowers and each direct, material wholly-owned restricted subsidiary of the Canadian borrowers and Canadian guarantors. Covenants, Representations and Warranties . The Amended and Restated Revolving Credit Agreement, contains customary representations and warranties and customary affirmative and negative covenants, including, with respect to negative covenants, among other things, restrictions on indebtedness, liens, investments, fundamental changes, asset sales, dividends and other distributions, prepayments or redemption of junior debt, transactions with affiliates and negative pledge clauses. There are no financial covenants included in the Amended and Restated Revolving Credit Agreement, other than a springing fixed charge coverage ratio of at least 1.00 to 1.00, which, pursuant to Amendment No. 3 (as defined below), will be tested only when excess availability is less than (1) for the period commencing on and including February 19, 2016 through and including April 21, 2016, $10.0 million , (2) for the period commencing on and including April 22, 2016 through and including May 19, 2016, $7.5 million , (3) for the period commencing on and including May 20, 2016 through and including June 3, 2016, $10.0 million and (4) for the period commencing on and including June 4, 2016 and thereafter, the greater of (i) 10.0% of the sum of (x) the lesser of (A) the U.S. borrowing base and (B) the U.S. revolving credit commitments and (y) the lesser of (A) the Canadian borrowing base and (B) the Canadian revolving credit commitments and (ii) $20.0 million , in each case for a period of five consecutive business days until the 30 th consecutive day when excess availability exceeds the above threshold. On February 19, 2016, we entered into Amendment No. 3 to Amended and Restated Revolving Credit Agreement (“Amendment No. 3”), which permitted, among other things: • for the period commencing on and including February 19, 2016 through April 21, 2016, for a cash dominion period to commence, only if excess availability is less than $10.0 million for a period of five consecutive business days (or upon the occurrence and continuance of an event of default), and • for the period commencing on and including April 22, 2016 through and including May 19, 2016, for a cash dominion period to commence, only if excess availability is less than $7.5 million for a period of five consecutive business days (or upon the occurrence and continuance of an event of default), and • for the period commencing on and including May 20, 2016 through and including June 3, 2016, for a cash dominion period to commence, only if excess availability is less than $10.0 million for a period of five consecutive business days. In addition, Amendment No. 3 includes a provision which reduces excess availability in certain circumstances by adding an availability block (i) for the period commencing on and including February 19, 2016 through and including April 21, 2016 $10.0 million , (ii) for the period commencing on and including April 22, 2016 through and including May 19, 2016 $7.5 million , and commencing on and including May 20, 2016 through April 18, 2018 $10.0 million , which would increase to $20.0 million for the period beginning on and including May 20, 2016 through April 18, 2018 in the event all or any portion of the principal of the Sponsor Secured Note (as defined below) is repaid prior to the Amended and Restated Revolving Credit Agreement maturity date. The fixed charge coverage ratio was 1.05:1.00 for the four consecutive fiscal quarter test period ended April 2, 2016 based upon consolidated adjusted EBITDA of $101.0 million in accordance with the Credit Agreement. The Company has not triggered such fixed charge coverage ratio covenant as of April 2, 2016 , as excess availability of $40.6 million as of such date was in excess of the covenant trigger threshold. The Company currently does not expect to trigger the fixed charge coverage ratio test for fiscal year 2016. Should the current economic conditions or other factors described herein cause our results of operations to deteriorate beyond our expectations, we may trigger such covenant and, if so triggered, may not be able to satisfy such covenant and be forced to refinance such debt or seek a waiver. Even if new financing is available, it may not be available on terms that are acceptable to us. If we are required to seek a waiver, we may be required to pay significant amounts to the lenders under our ABL facilities to obtain such a waiver. As of April 2, 2016 , there was $80.7 million drawn under the Company’s ABL facilities and $40.6 million available for additional borrowings. The weighted average per annum interest rate applicable to borrowings under the U.S. portion and the Canadian portion of the ABL facilities was 2.9% and 4.6% , respectively, as of April 2, 2016 . The Company had letters of credit outstanding of $12.3 million as of April 2, 2016 primarily securing insurance policy deductibles, certain lease facilities and the Company’s purchasing card program. In addition to the financial covenant described above, certain incurrences of debt and investments require compliance with financial covenants under the Amended and Restated Revolving Credit Agreement and the Indenture. The breach of any of these covenants could result in a default under the Amended and Restated Revolving Credit Agreement and the Indenture, and the lenders or note holders, as applicable, could elect to declare all amounts borrowed due and payable. See Part 1, Item 1A. “Risk Factors” in our Annual Report. We were in compliance with such financial covenants as of April 2, 2016 . First Lien Promissory Note On February 19, 2016, the Company, the other borrowers, AMHNF and Holdings, and H&F Finco LLC (“H&F Finco”), an affiliate of Hellman & Friedman LLC, entered into a first lien promissory note (the “Sponsor Secured Note”), $20.0 million to the U.S. borrowers, AMHNF and Holdings and $7.5 million to the Canadian borrowers. The Sponsor Secured Note bears interest at the LIBOR rate plus 4.25% , with a LIBOR floor of 1% , and matures at the earlier of (i) June 18, 2018 and (ii) 30 days prior to the maturity date of the Company’s 9.125% notes. Prepayment of the Sponsor Secured Note is required if (i) excess availability on the date of such payment (prior to giving effect thereto) is no less than $60.0 million and (ii) excess availability on the date of such payment (immediately after giving effect thereto) and the projected daily average excess availability for the thirty -day period immediately following the date of such payment is, in each case, no less than $32.5 million . The Sponsor Secured Note is subject to the same covenants and events of default contained in the Amended and Restated Revolving Credit Agreement and certain additional customary covenants and events of default. The Sponsor Secured Note is guaranteed by the same guarantors and to the same extent as such guarantors guarantee the obligations of the Company under the Amended and Restated Revolving Credit Agreement. The obligations of the Company, AMHNF, Holdings and the guarantors under the Sponsor Secured Note are secured on a pari passu basis to the liens and assets securing the obligations under the Amended and Restated Revolving Credit Agreement (the “ABL Shared Collateral”), subject to the applicable intercreditor agreement. Concurrently with entering into the Sponsor Secured Note, the Company, the other borrowers, AMHNF, Holdings and the guarantors under the Sponsor Secured Note entered into a revolving loan intercreditor agreement with H&F Finco, as the subordinated debt representative and UBS AG, Stamford Branch and UBS AG Canada Branch, as the senior representatives which subordinates the lien of H&F Finco to the lien of the senior representative and the senior lenders under the Amended and Restated Revolving Credit Agreement in respect of any right of payment from the proceeds of any sale or disposition of ABL Shared Collateral. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 02, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | Income Taxes The Company's provision for income taxes in interim periods is computed by applying the appropriate estimated annual effective tax rates to income or loss before income taxes for the period. The Company adjusts its effective tax rate each quarter to be consistent with the estimated annual effective tax rate and records the tax impact of certain unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur. The components of the effective tax rate are as follows (in thousands, except percentage): Quarters Ended April 2, April 4, Loss before income taxes $ (26,880 ) $ (37,789 ) Income tax expense 1,132 533 Effective tax rate (4.2 )% (1.4 )% The effective tax rates for the quarters ended April 2, 2016 and April 4, 2015 vary from the statutory rate, primarily as a result of operating losses in the U.S. with no tax benefit recognized due to the valuation allowance against net U.S. deferred tax assets. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Apr. 02, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component, net of tax, are as follows (in thousands): Defined Benefit Pension and Other Postretirement Plans Foreign Currency Translation Accumulated Other Comprehensive Loss Balance at January 2, 2016 $ (18,901 ) $ (68,006 ) $ (86,907 ) Other comprehensive income before reclassifications, net of tax of $0 — 11,018 11,018 Amounts reclassified from accumulated other comprehensive loss, net of tax of $14 17 — 17 Balance at April 2, 2016 $ (18,884 ) $ (56,988 ) $ (75,872 ) Defined Benefit Pension and Other Postretirement Plans Foreign Currency Translation Accumulated Other Comprehensive Loss Balance at January 3, 2015 (23,781 ) (36,842 ) (60,623 ) Other comprehensive loss before reclassifications, net of tax of $0 — (11,586 ) (11,586 ) Amounts reclassified from accumulated other comprehensive loss, net of tax of $17 148 — 148 Balance at April 4, 2015 (23,633 ) (48,428 ) (72,061 ) Reclassifications out of accumulated other comprehensive loss consist of the following (in thousands): Quarters Ended April 2, April 4, Defined Benefit Pension and Other Postretirement Plans: Amortization of unrecognized prior service costs $ 6 $ 7 Amortization of unrecognized cumulative actuarial net loss 25 158 Total before tax 31 165 Tax expense (14 ) (17 ) Net of tax $ 17 $ 148 Amortization of prior service costs and actuarial losses are included in the computation of net periodic benefit cost for the Company’s pension and other postretirement benefit plans. |
Stock Plans
Stock Plans | 3 Months Ended |
Apr. 02, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Plans | Stock Plans In April 2015, the board of directors of Associated Materials Group, Inc. (“Parent”) and Parent’s stockholders approved an amendment and restatement to the Parent’s 2010 Stock Incentive Plan (“2010 Plan”) to increase the maximum number of shares which may be issued under the 2010 Plan by 1,500,000 from 7,550,076 to 9,050,076 shares of Parent common stock. In June 2015, Parent’s board of directors modified certain time-based and performance-based options held by eligible participants to reduce the exercise price of such options. The number of options repriced was 4.5 million to 17 employees under the senior leadership team, with a weighted average exercise price prior to repricing of $9.23 and an average remaining contractual life of 8.8 years. The compensation cost related to this repricing resulted in additional unrecognized non-cash expense of $0.3 million that may be recognized over the remaining life of the options, subject to vesting conditions. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Apr. 02, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans | Retirement Plans The Company sponsors defined benefit pension plans that cover hourly workers at its West Salem, Ohio plant, and hourly union employees at its Woodbridge, New Jersey plant, as well as a defined benefit retirement plan covering U.S. salaried employees, which was frozen in 1998 and subsequently replaced with a defined contribution plan (such plans collectively, the “Domestic Plans”). The Company also sponsors a defined benefit pension plan covering the Canadian salaried employees and hourly union employees at the Lambeth, Ontario plant, a defined benefit pension plan for the hourly union employees at its Burlington, Ontario plant and a defined benefit pension plan for the hourly union employees at its Pointe Claire, Quebec plant (such plans collectively, the “Foreign Plans”). In 2014, the pension plans for Pointe Claire and Burlington were amended to reflect an increase in benefits, effective November 15, 2015 and September 1, 2016, respectively. Also, the Pointe Claire plan was amended to disallow a lump sum payment feature that triggered settlement losses recorded in previous years. The Company also provides postretirement benefits other than pension (“OPEB plans”) including health care or life insurance benefits to certain U.S. and Canadian retirees and in some cases, their spouses and dependents. The Company’s postretirement benefit plans in the U.S. include an unfunded health care plan for hourly workers at the Company’s former steel siding plant in Cuyahoga Falls, Ohio. With the closure of this facility in 1991, no additional employees are eligible to participate in this plan. There are three other U.S. unfunded plans covering either life insurance or health care benefits for small frozen groups of retirees. The Company’s foreign postretirement benefit plan provides life insurance benefits to active members at its Pointe Claire, Quebec plant and a closed group of Canadian salaried retirees. The actuarial valuation measurement date for the defined pension plans and postretirement benefits other than pension is December 31. Components of net periodic benefit cost for the Company’s defined benefit pension plans and OPEB plans are as follows (in thousands): Quarters Ended April 2, 2016 April 4, 2015 Domestic Foreign OPEB Plans Domestic Foreign OPEB Plans Service cost $ 316 $ 620 $ 3 $ 331 $ 641 $ 4 Interest cost 827 770 31 806 791 43 Expected return on assets (854 ) (832 ) — (973 ) (938 ) — Amortization of unrecognized: Prior service costs (credits) 3 5 (2 ) 3 6 (2 ) Cumulative actuarial net loss (gain) 21 49 (45 ) 104 59 (5 ) Net periodic benefit cost $ 313 $ 612 $ (13 ) $ 271 $ 559 $ 40 Although changes in market conditions, current pension law and uncertainties regarding significant assumptions used in the actuarial valuations may have a material impact on future required contributions to the Company’s pension plans, the Company currently does not expect funding requirements to have a material adverse impact on current or future liquidity. The actuarial valuations require significant estimates and assumptions to be made by management, primarily the funding interest rate, discount rate and expected long-term return on plan assets. These assumptions are all susceptible to changes in market conditions. The funding interest rate and discount rate are based on representative bond yield curves maintained and monitored by independent third parties. In determining the expected long-term rate of return on plan assets, the Company considers historical market and portfolio rates of return, asset allocations and expectations of future rates of return. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 02, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is involved from time to time in litigation arising in the ordinary course of business, none of which, individually or in the aggregate, after giving effect to its existing insurance coverage, is expected to have a material adverse effect on its financial position, results of operations or liquidity. From time to time, the Company is also involved in proceedings and potential proceedings relating to environmental, product liability and other matters, the claims of which are administered by the Company in the ordinary course of business. The Company maintains pollution and remediation insurance, as well as product liability insurance to provide coverage for these types of claims. Although it is difficult to estimate the Company’s potential exposure to these matters, the Company believes that the resolution of such matters will not have a material adverse effect on its financial position, results of operations or liquidity. Environmental Claims The Woodbridge, New Jersey facility is currently the subject of an investigation and/or remediation before the New Jersey Department of Environmental Protection (“NJDEP”) under ISRA Case No. E20030110 for the Company’s wholly owned subsidiary Gentek Building Products, Inc. (“Gentek”). The facility is currently leased by Gentek. Previous operations at the facility resulted in soil and groundwater contamination in certain areas of the property. In 1999, the property owner and Gentek signed a remediation agreement with NJDEP, pursuant to which the property owner and Gentek agreed to continue an investigation/remediation that had been commenced pursuant to a Memorandum of Agreement with NJDEP. Under the remediation agreement, NJDEP required posting of a remediation funding source of $0.1 million , which is currently satisfied by a $0.3 million standby letter of credit that was provided by Gentek to NJDEP. During 2014, the delineation studies were completed and in early 2015 the Company was presented with several remedial plans. Based on the alternatives presented, the Company identified what it believed to be the most likely option and recorded the minimum liability for that option, which totaled $1.0 million as of January 3, 2015, the balance of which remains unchanged as of April 2, 2016 . The Company believes this matter will not have a material adverse effect on the Company’s financial position, results of operations or liquidity. Environmental claims, product liability claims and other claims are administered by the Company in the ordinary course of business, and the Company maintains pollution and remediation and product liability insurance covering certain types of claims. Although it is difficult to estimate the Company’s potential exposure to these matters, the Company believes that the resolution of these matters will not have a material adverse effect on its financial position, results of operations or liquidity. |
Business Segments
Business Segments | 3 Months Ended |
Apr. 02, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company is in the business of manufacturing and distributing exterior residential building products. The Company has a single operating segment and a single reportable segment. The Company’s chief operating decision maker is considered to be the Chief Executive Officer. The chief operating decision maker allocates resources and assesses performance of the business and other activities at the single operating segment level. The following table sets forth a summary of net sales by principal product offering (in thousands): Quarters Ended April 2, April 4, Vinyl windows $ 86,634 $ 82,254 Vinyl siding products 38,585 35,165 Metal products 29,820 28,407 Third-party manufactured products 52,227 47,499 Other products and services 29,015 27,041 $ 236,281 $ 220,366 |
Subsidiary Guarantors
Subsidiary Guarantors | 3 Months Ended |
Apr. 02, 2016 | |
Subsidiary Guarantors [Abstract] | |
Subsidiary Guarantors | Subsidiary Guarantors The Company’s payment obligations under its 9.125% notes are fully and unconditionally guaranteed, jointly and severally, on a senior basis, by its domestic 100% owned subsidiaries, Gentek Holdings, LLC and Gentek Building Products, Inc. (together, the “Subsidiary Guarantors”). AMH New Finance, Inc. is a co-issuer of the 9.125% notes and is a domestic 100% owned subsidiary of the Company having no operations, revenues or cash flows for the periods presented. Associated Materials Canada Limited, Gentek Canada Holdings Limited and Gentek Buildings Products Limited Partnership are Canadian companies and do not guarantee the 9.125% notes. In the opinion of management, separate financial statements of the respective Subsidiary Guarantors would not provide additional material information that would be useful in assessing the financial composition of the Subsidiary Guarantors. ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET April 2, 2016 (Unaudited, in thousands) Company Co-Issuer Subsidiary Non-Guarantor Reclassification/ Consolidated Assets Current assets: Cash and cash equivalents $ 5,249 $ — $ 26 $ 796 $ — $ 6,071 Accounts receivable, net 99,578 — 6,286 25,202 — 131,066 Intercompany receivables 335,181 — 68,728 1,794 (405,703 ) — Inventories 88,936 — 8,461 35,916 — 133,313 Income taxes receivable — — 198 1,526 — 1,724 Deferred income taxes 244 — 1,258 — — 1,502 Prepaid expenses and other current assets 12,366 — 969 1,552 — 14,887 Total current assets 541,554 — 85,926 66,786 (405,703 ) 288,563 Property, plant and equipment, net 63,047 — 1,285 26,048 — 90,380 Goodwill 203,841 — 16,713 87,585 — 308,139 Other intangible assets, net 280,115 — 32,521 84,187 — 396,823 Intercompany receivable — 832,340 — — (832,340 ) — Other assets 3,589 — 85 864 — 4,538 Total assets $ 1,092,146 $ 832,340 $ 136,530 $ 265,470 $ (1,238,043 ) $ 1,088,443 Liabilities and Member's Deficit Current liabilities: Accounts payable $ 67,200 $ — $ 7,381 $ 22,959 $ — $ 97,540 Intercompany payables 1,794 — — 403,909 (405,703 ) — Accrued liabilities 81,125 — 4,364 6,864 — 92,353 Deferred income taxes 767 — — 464 — 1,231 Income taxes payable 34 — — 385 — 419 Total current liabilities 150,920 — 11,745 434,581 (405,703 ) 191,543 Deferred income taxes 50,149 — 11,920 21,321 — 83,390 Other liabilities 76,513 — 19,625 17,172 — 113,310 Deficit in subsidiaries 141,185 — 234,425 — (375,610 ) — Long-term debt 904,674 832,340 — 26,821 (832,340 ) 931,495 Member’s deficit (231,295 ) — (141,185 ) (234,425 ) 375,610 (231,295 ) Total liabilities and member’s deficit $ 1,092,146 $ 832,340 $ 136,530 $ 265,470 $ (1,238,043 ) $ 1,088,443 ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS For The Quarter Ended April 2, 2016 (Unaudited, in thousands) Company Co-Issuer Subsidiary Non-Guarantor Reclassification/ Consolidated Net sales $ 195,331 $ — $ 32,308 $ 47,857 $ (39,215 ) $ 236,281 Cost of sales 156,216 — 29,895 36,332 (39,215 ) 183,228 Gross profit 39,115 — 2,413 11,525 — 53,053 Selling, general and administrative expenses 47,257 — 1,703 10,473 — 59,433 (Loss) income from operations (8,142 ) — 710 1,052 — (6,380 ) Interest expense, net 20,817 — — 66 — 20,883 Foreign currency (gain) — — — (383 ) — (383 ) Loss before income taxes (28,959 ) — 710 1,369 — (26,880 ) Income tax expense (benefit) 778 — (19 ) 373 — 1,132 Loss before equity loss from subsidiaries (29,737 ) — 729 996 — (28,012 ) Equity income from subsidiaries 1,725 — 996 — (2,721 ) — Net (loss) income (28,012 ) — 1,725 996 (2,721 ) (28,012 ) Other comprehensive income (loss): Pension and other postretirement benefit adjustments, net of tax 17 — 35 40 (75 ) 17 Foreign currency translation adjustments, net of tax 11,018 — 11,018 11,018 (22,036 ) 11,018 Total comprehensive income (loss) $ (16,977 ) $ — $ 12,778 $ 12,054 $ (24,832 ) $ (16,977 ) ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For The Quarter Ended April 2, 2016 (Unaudited, in thousands) Company Co-Issuer Subsidiary Non-Guarantor Reclassification/Eliminations Consolidated Net cash provided by (used in) operating activities $ (988 ) $ — $ 3,324 $ (17,564 ) $ — $ (15,228 ) Investing Activities Capital expenditures (1,057 ) (80 ) (838 ) — (1,975 ) Proceeds from the sale of assets 82 4 — 86 Payments on loans to affiliates — — (3,370 ) — 3,370 — Receipts on loans to affiliates — — — (7,000 ) 7,000 — Net cash provided by (used in) investing activities (975 ) — (3,450 ) (7,834 ) 10,370 (1,889 ) Financing Activities Borrowings under ABL facilities 15,000 23,789 — 38,789 Payments under ABL facilities (44,900 ) (6,000 ) — (50,900 ) Promissory note, related parties 20,000 — — 7,500 — 27,500 Financing costs (1,614 ) (10 ) (1,624 ) Borrowings from affiliates 10,370 — — — (10,370 ) — Repayments to affiliates — — — — — — Net cash (used in) provided by financing activities (1,144 ) — — 25,279 (10,370 ) 13,765 Effect of exchange rate changes on cash and cash equivalents 29 — 29 Net decrease in cash and cash equivalents (3,107 ) — (126 ) (90 ) — (3,323 ) Cash and cash equivalents at beginning of period 8,356 152 886 — 9,394 Cash and cash equivalents at end of period $ 5,249 $ — $ 26 $ 796 $ — $ 6,071 ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET January 2, 2016 (Unaudited, in thousands) Company Co-Issuer Subsidiary Non-Guarantor Reclassification/ Consolidated Assets Current assets: Cash and cash equivalents $ 8,356 $ — $ 152 $ 886 $ — $ 9,394 Accounts receivable, net 103,506 — 6,903 16,634 — 127,043 Intercompany receivables 352,323 — 67,591 1,794 (421,708 ) — Inventories 88,440 — 5,527 29,407 — 123,374 Income taxes receivable — — 178 1,434 — 1,612 Deferred income taxes 243 — 1,258 1 — 1,502 Prepaid expenses and other current assets 12,114 — 955 1,094 — 14,163 Total current assets 564,982 — 82,564 51,250 (421,708 ) 277,088 Property, plant and equipment, net 65,277 — 1,303 24,214 — 90,794 Goodwill 203,841 — 16,713 82,354 — 302,908 Other intangible assets, net 285,115 — 32,633 80,205 — 397,953 Intercompany receivable — 832,684 — — (832,684 ) — Other assets 3,572 — 1 1,020 — 4,593 Total assets $ 1,122,787 $ 832,684 $ 133,214 $ 239,043 $ (1,254,392 ) $ 1,073,336 Liabilities and Member's Deficit Current liabilities: Accounts payable $ 68,213 $ — $ 4,183 $ 19,167 $ — $ 91,563 Intercompany payables 1,794 — — 419,914 (421,708 ) — Accrued liabilities 71,446 — 4,876 7,308 — 83,630 Deferred income taxes — — — 436 — 436 Income taxes payable 36 — — — — 36 Total current liabilities 141,489 — 9,059 446,825 (421,708 ) 175,665 Deferred income taxes 50,147 — 11,920 20,035 — 82,102 Other liabilities 76,641 — 19,676 16,806 — 113,123 Deficit in subsidiaries 153,964 — 246,523 — (400,487 ) — Long-term debt 914,907 832,684 — 1,900 (832,684 ) 916,807 Member’s deficit (214,361 ) — (153,964 ) (246,523 ) 400,487 (214,361 ) Total liabilities and member’s deficit $ 1,122,787 $ 832,684 $ 133,214 $ 239,043 $ (1,254,392 ) $ 1,073,336 ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS For The Quarter Ended April 4, 2015 (Unaudited, in thousands) Company Co-Issuer Subsidiary Non-Guarantor Reclassification/ Consolidated Net sales $ 179,638 $ — $ 30,162 $ 47,248 $ (36,682 ) $ 220,366 Cost of sales 148,967 — 28,806 37,372 (36,682 ) 178,463 Gross profit 30,671 — 1,356 9,876 — 41,903 Selling, general and administrative expenses 47,657 — 844 9,969 — 58,470 (Loss) income from operations (16,986 ) — 512 (93 ) — (16,567 ) Interest expense, net 18,788 — 1,661 257 — 20,706 Foreign currency loss — — — 516 — 516 (Loss) income before income taxes (35,774 ) — (1,149 ) (866 ) — (37,789 ) Income tax expense (benefit) 726 — 24 (217 ) — 533 (Loss) income before equity income (loss) from subsidiaries (36,500 ) — (1,173 ) (649 ) — (38,322 ) Equity income (loss) from subsidiaries (1,822 ) — (649 ) — 2,471 — Net (loss) income (38,322 ) — (1,822 ) (649 ) 2,471 (38,322 ) Other comprehensive income (loss): Pension and other postretirement benefit adjustments, net of tax 148 — 58 48 (106 ) 148 Foreign currency translation adjustments, net of tax (11,586 ) — (11,586 ) (11,586 ) 23,172 (11,586 ) Total comprehensive loss $ (49,760 ) $ — $ (13,350 ) $ (12,187 ) $ 25,537 $ (49,760 ) ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For The Quarter Ended April 4, 2015 (Unaudited, in thousands) Company Co-Issuer Subsidiary Guarantors Non-Guarantor Subsidiaries Reclassification/ Eliminations Consolidated Net cash (used in) provided by operating activities $ (20,313 ) $ — $ 1,707 $ (8,065 ) $ — $ (26,671 ) Investing Activities Capital expenditures (5,408 ) — (65 ) (596 ) — (6,069 ) Proceeds from the sale of assets 5 — — 1 6 Payments on loans to affiliates — — (1,642 ) — 1,642 — Receipts on loans to affiliates 2,000 — — — (2,000 ) — Net cash used in investing activities (3,403 ) — (1,707 ) (595 ) (358 ) (6,063 ) Financing Activities Borrowings under ABL facilities 31,400 — — 13,170 — 44,570 Payments under ABL facilities (11,200 ) — — (2,549 ) — (13,749 ) Borrowings from affiliates 1,642 — — — (1,642 ) — Repayments to affiliates — — — (2,000 ) 2,000 — Net cash provided by financing activities 21,842 — — 8,621 358 30,821 Effect of exchange rate changes on cash and cash equivalents — — — 9 — 9 Net decrease in cash and cash equivalents (1,874 ) — — (30 ) — (1,904 ) Cash and cash equivalents at beginning of period 5,933 — — 30 — 5,963 Cash and cash equivalents at end of period $ 4,059 $ — $ — $ — $ — $ 4,059 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Apr. 02, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | Basis of Presentation Associated Materials, LLC (the “Company”) is a 100% owned subsidiary of Associated Materials Incorporated, formerly known as AMH Intermediate Holdings Corp. (“Holdings”). Holdings is a wholly owned subsidiary of Associated Materials Group, Inc., formerly known as AMH Investment Holdings Corp. (“Parent”), which is controlled by investment funds affiliated with Hellman & Friedman LLC (“H&F”). Holdings and Parent do not have material assets or operations other than their direct and indirect ownership, respectively, of the membership interest of the Company. Approximately 97% of the capital stock of Parent is owned by investment funds affiliated with H&F. The condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting, the instructions to Form 10-Q, and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these interim condensed consolidated financial statements contain all of the normal recurring accruals and adjustments considered necessary for a fair presentation of the unaudited results for the quarters ended April 2, 2016 and April 4, 2015 . These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended January 2, 2016 , filed with the Securities and Exchange Commission (“SEC”) on March 22, 2016 (“Annual Report”). A detailed description of the Company’s significant accounting policies and management judgments is located in the audited financial statements included in its Annual Report. The Company is a leading, vertically integrated manufacturer and distributor of exterior residential building products in the United States (“U.S.”) and Canada. The Company was founded in 1947 when it first introduced residential aluminum siding under the Alside ® name. The Company provides a comprehensive offering of exterior building products, including vinyl windows, vinyl siding, aluminum trim coil, aluminum and steel siding and related accessories, which are produced at the Company’s 11 manufacturing facilities. The Company also sells complementary products that it sources from a network of manufacturers, such as roofing materials, cladding materials, insulation, exterior doors, equipment and tools. The Company also provides installation services. The Company distributes these products through its extensive dual-distribution network to over 50,000 professional exterior contractors, builders and dealers, whom the Company refers to as its “contractor customers.” This dual-distribution network consists of 122 company-operated supply centers, through which the Company sells directly to its contractor customers, and its direct sales channel, through which the Company sells to more than 275 independent distributors, dealers and national account customers. Because most of the Company’s building products are intended for exterior use, sales and operating profits tend to be lower during periods of inclement weather. Weather conditions in the first quarter of each calendar year usually result in that quarter producing significantly less net sales and net cash flows from operations than in any other period of the year. Consequently, the Company has historically had losses or small profits in the first quarter and lower profits from operations in the fourth quarter of each calendar year. Therefore, the results of operations for any interim period are not necessarily indicative of the results of operations for a full year. |
New Accounting Pronouncements | Adopted Accounting Pronouncements In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). ASU 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability rather than an asset, consistent with the presentation of debt discounts. The recognition and measurement of debt issuance costs are not affected by the new guidance. In August 2015, the FASB issued ASU No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (“ASU 2015-15”). ASU 2015-15 provides that, given the absence of authoritative guidance in ASU 2015-03 with respect to presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements, an entity is permitted to defer and present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. During fiscal 2016, ASU 2015-03 and ASU 2015-05 became effective and accordingly, debt issuance costs of $8.7 million were reclassified from other assets to long-term debt on the January 2, 2016 Condensed Consolidated Balance Sheet Recent Accounting Pronouncements In March 2016, the FASB issued a modified standard on stock compensation. This standard makes several modifications to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. It also clarifies the statement of cash flows presentation for certain components of share-based awards. The standard is effective commencing with our 2017 fiscal year and requires enhanced disclosures. The Company is currently assessing the potential impact of the new requirements under the standard In February 2016, the FASB issued a new standard on leases. The new standard requires lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by finance and operating leases with lease terms of more than 12 months. The amendment is effective commencing with our 2019 fiscal year and requires enhanced disclosures. We are evaluating the timing of adoption of this guidance. In November 2015, the FASB issued guidance that requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet. The guidance is effective in 2017 with early adoption permitted. The guidance is not expected to have a material impact on our balance sheet. We are evaluating the timing of adoption of this guidance. In August 2015, the FASB issued an amendment to defer for one year the effective date of the new standard on revenue recognition issued in May 2014. The new standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new standard is effective commencing with our 2018 fiscal year and requires enhanced disclosures. We are evaluating the timing of adoption of this guidance. In July 2015, the FASB issued guidance that requires entities to measure inventory at the lower of cost or net realizable value. The guidance is effective in 2017 with early adoption permitted. We are evaluating the timing of adoption of this guidance. In August 2014, the FASB issued a standard on the presentation of “Going Concern” in the financial statements. The standard requires management to evaluate whether there are any conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern, and, if present, provide enhanced disclosures. The standard is effective with our 2017 fiscal year. We are evaluating the timing of adoption of this guidance. |
Allowance for Doubtful Accoun21
Allowance for Doubtful Accounts (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Allowance for Doubtful Accounts [Abstract] | |
Allowance for doubtful accounts | Allowance for doubtful accounts consists of the following (in thousands): April 2, January 2, Allowance for doubtful accounts, current $ 2,957 $ 3,204 Allowance for doubtful accounts, non-current 5,187 4,401 $ 8,144 $ 7,605 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories are valued at the lower of cost (first in, first out) or market. Inventories consist of the following (in thousands): April 2, January 2, Raw materials $ 32,034 $ 31,024 Work in process 10,906 10,900 Finished goods 90,373 81,450 $ 133,313 $ 123,374 |
Goodwill and Other Intangible23
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The changes in the carrying amount of goodwill are as follows (in thousands): Goodwill Balance at January 2, 2016 $ 302,908 Foreign currency translation 5,231 Balance at April 2, 2016 $ 308,139 |
Schedule of finite-lived intangibles and indefinite-lived intangibles | The Company’s other intangible assets consist of the following (in thousands): April 2, 2016 January 2, 2016 Cost Accumulated Amortization Net Carrying Value Cost Accumulated Amortization Net Carrying Value Amortized customer bases $ 316,743 $ 135,837 $ 180,906 $ 313,821 $ 128,230 $ 185,591 Amortized non-compete agreements 20 20 — 20 19 1 Total amortized intangible assets 316,763 135,857 180,906 313,841 128,249 185,592 Non-amortized trade names (1) 215,917 — 215,917 212,361 — 212,361 Total intangible assets $ 532,680 $ 135,857 $ 396,823 $ 526,202 $ 128,249 $ 397,953 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Restructuring and Related Activities [Abstract] | |
Reconciliation of manufacturing restructuring liability | Changes in the restructuring liabilities are as follows (in thousands): Quarter Ended April 2, 2016 Distribution Manufacturing Total Balance at January 2, 2016 $ 1,654 $ 1,147 $ 2,801 Accretion of related lease obligations — 115 115 Payments (298 ) (337 ) (635 ) Balance at April 2, 2016 $ 1,356 $ 925 $ 2,281 Quarter Ended April 4, 2015 Distribution Manufacturing Total Balance at January 3, 2015 $ — $ 1,960 $ 1,960 Accretion of related lease obligations — 114 114 Payments — (364 ) (364 ) Balance at April 4, 2015 $ — $ 1,710 $ 1,710 |
Product Warranty Costs (Tables)
Product Warranty Costs (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Standard Product Warranty Disclosure [Abstract] | |
Reconciliation of product warranty reserve | Changes in the warranty reserve are as follows (in thousands): Quarters Ended April 2, April 4, Balance at the beginning of the period $ 85,112 $ 89,940 Provision for warranties issued and changes in estimates for pre-existing warranties 1,327 1,250 Claims paid (1,503 ) (1,328 ) Foreign currency translation 566 (616 ) Balance at the end of the period $ 85,502 $ 89,246 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | Long-term debt consists of the following (in thousands): April 2, January 2, 9.125% Senior Secured Notes, due 2017 $ 830,000 $ 830,000 Borrowings under the ABL facilities 80,724 92,800 Promissory note, related parties 27,500 — Plus: Unamortized premium 2,340 2,684 Less: Deferred financing costs, net of amortization (9,069 ) (8,677 ) Total long-term debt $ 931,495 $ 916,807 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense (benefit) | The components of the effective tax rate are as follows (in thousands, except percentage): Quarters Ended April 2, April 4, Loss before income taxes $ (26,880 ) $ (37,789 ) Income tax expense 1,132 533 Effective tax rate (4.2 )% (1.4 )% |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of change in accumulated other comprehensive income (loss) | Changes in accumulated other comprehensive loss by component, net of tax, are as follows (in thousands): Defined Benefit Pension and Other Postretirement Plans Foreign Currency Translation Accumulated Other Comprehensive Loss Balance at January 2, 2016 $ (18,901 ) $ (68,006 ) $ (86,907 ) Other comprehensive income before reclassifications, net of tax of $0 — 11,018 11,018 Amounts reclassified from accumulated other comprehensive loss, net of tax of $14 17 — 17 Balance at April 2, 2016 $ (18,884 ) $ (56,988 ) $ (75,872 ) Defined Benefit Pension and Other Postretirement Plans Foreign Currency Translation Accumulated Other Comprehensive Loss Balance at January 3, 2015 (23,781 ) (36,842 ) (60,623 ) Other comprehensive loss before reclassifications, net of tax of $0 — (11,586 ) (11,586 ) Amounts reclassified from accumulated other comprehensive loss, net of tax of $17 148 — 148 Balance at April 4, 2015 (23,633 ) (48,428 ) (72,061 ) |
Reclassifications out of accumulated other comprehensive income (loss) | Reclassifications out of accumulated other comprehensive loss consist of the following (in thousands): Quarters Ended April 2, April 4, Defined Benefit Pension and Other Postretirement Plans: Amortization of unrecognized prior service costs $ 6 $ 7 Amortization of unrecognized cumulative actuarial net loss 25 158 Total before tax 31 165 Tax expense (14 ) (17 ) Net of tax $ 17 $ 148 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of defined pension plan costs | Components of net periodic benefit cost for the Company’s defined benefit pension plans and OPEB plans are as follows (in thousands): Quarters Ended April 2, 2016 April 4, 2015 Domestic Foreign OPEB Plans Domestic Foreign OPEB Plans Service cost $ 316 $ 620 $ 3 $ 331 $ 641 $ 4 Interest cost 827 770 31 806 791 43 Expected return on assets (854 ) (832 ) — (973 ) (938 ) — Amortization of unrecognized: Prior service costs (credits) 3 5 (2 ) 3 6 (2 ) Cumulative actuarial net loss (gain) 21 49 (45 ) 104 59 (5 ) Net periodic benefit cost $ 313 $ 612 $ (13 ) $ 271 $ 559 $ 40 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Products and Services | The following table sets forth a summary of net sales by principal product offering (in thousands): Quarters Ended April 2, April 4, Vinyl windows $ 86,634 $ 82,254 Vinyl siding products 38,585 35,165 Metal products 29,820 28,407 Third-party manufactured products 52,227 47,499 Other products and services 29,015 27,041 $ 236,281 $ 220,366 |
Subsidiary Guarantors (Tables)
Subsidiary Guarantors (Tables) | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Subsidiary Guarantors [Abstract] | ||
Condensed consolidating balance sheet | ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET January 2, 2016 (Unaudited, in thousands) Company Co-Issuer Subsidiary Non-Guarantor Reclassification/ Consolidated Assets Current assets: Cash and cash equivalents $ 8,356 $ — $ 152 $ 886 $ — $ 9,394 Accounts receivable, net 103,506 — 6,903 16,634 — 127,043 Intercompany receivables 352,323 — 67,591 1,794 (421,708 ) — Inventories 88,440 — 5,527 29,407 — 123,374 Income taxes receivable — — 178 1,434 — 1,612 Deferred income taxes 243 — 1,258 1 — 1,502 Prepaid expenses and other current assets 12,114 — 955 1,094 — 14,163 Total current assets 564,982 — 82,564 51,250 (421,708 ) 277,088 Property, plant and equipment, net 65,277 — 1,303 24,214 — 90,794 Goodwill 203,841 — 16,713 82,354 — 302,908 Other intangible assets, net 285,115 — 32,633 80,205 — 397,953 Intercompany receivable — 832,684 — — (832,684 ) — Other assets 3,572 — 1 1,020 — 4,593 Total assets $ 1,122,787 $ 832,684 $ 133,214 $ 239,043 $ (1,254,392 ) $ 1,073,336 Liabilities and Member's Deficit Current liabilities: Accounts payable $ 68,213 $ — $ 4,183 $ 19,167 $ — $ 91,563 Intercompany payables 1,794 — — 419,914 (421,708 ) — Accrued liabilities 71,446 — 4,876 7,308 — 83,630 Deferred income taxes — — — 436 — 436 Income taxes payable 36 — — — — 36 Total current liabilities 141,489 — 9,059 446,825 (421,708 ) 175,665 Deferred income taxes 50,147 — 11,920 20,035 — 82,102 Other liabilities 76,641 — 19,676 16,806 — 113,123 Deficit in subsidiaries 153,964 — 246,523 — (400,487 ) — Long-term debt 914,907 832,684 — 1,900 (832,684 ) 916,807 Member’s deficit (214,361 ) — (153,964 ) (246,523 ) 400,487 (214,361 ) Total liabilities and member’s deficit $ 1,122,787 $ 832,684 $ 133,214 $ 239,043 $ (1,254,392 ) $ 1,073,336 ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET April 2, 2016 (Unaudited, in thousands) Company Co-Issuer Subsidiary Non-Guarantor Reclassification/ Consolidated Assets Current assets: Cash and cash equivalents $ 5,249 $ — $ 26 $ 796 $ — $ 6,071 Accounts receivable, net 99,578 — 6,286 25,202 — 131,066 Intercompany receivables 335,181 — 68,728 1,794 (405,703 ) — Inventories 88,936 — 8,461 35,916 — 133,313 Income taxes receivable — — 198 1,526 — 1,724 Deferred income taxes 244 — 1,258 — — 1,502 Prepaid expenses and other current assets 12,366 — 969 1,552 — 14,887 Total current assets 541,554 — 85,926 66,786 (405,703 ) 288,563 Property, plant and equipment, net 63,047 — 1,285 26,048 — 90,380 Goodwill 203,841 — 16,713 87,585 — 308,139 Other intangible assets, net 280,115 — 32,521 84,187 — 396,823 Intercompany receivable — 832,340 — — (832,340 ) — Other assets 3,589 — 85 864 — 4,538 Total assets $ 1,092,146 $ 832,340 $ 136,530 $ 265,470 $ (1,238,043 ) $ 1,088,443 Liabilities and Member's Deficit Current liabilities: Accounts payable $ 67,200 $ — $ 7,381 $ 22,959 $ — $ 97,540 Intercompany payables 1,794 — — 403,909 (405,703 ) — Accrued liabilities 81,125 — 4,364 6,864 — 92,353 Deferred income taxes 767 — — 464 — 1,231 Income taxes payable 34 — — 385 — 419 Total current liabilities 150,920 — 11,745 434,581 (405,703 ) 191,543 Deferred income taxes 50,149 — 11,920 21,321 — 83,390 Other liabilities 76,513 — 19,625 17,172 — 113,310 Deficit in subsidiaries 141,185 — 234,425 — (375,610 ) — Long-term debt 904,674 832,340 — 26,821 (832,340 ) 931,495 Member’s deficit (231,295 ) — (141,185 ) (234,425 ) 375,610 (231,295 ) Total liabilities and member’s deficit $ 1,092,146 $ 832,340 $ 136,530 $ 265,470 $ (1,238,043 ) $ 1,088,443 | |
Condensed consolidating statements of comprehensive loss | ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS For The Quarter Ended April 2, 2016 (Unaudited, in thousands) Company Co-Issuer Subsidiary Non-Guarantor Reclassification/ Consolidated Net sales $ 195,331 $ — $ 32,308 $ 47,857 $ (39,215 ) $ 236,281 Cost of sales 156,216 — 29,895 36,332 (39,215 ) 183,228 Gross profit 39,115 — 2,413 11,525 — 53,053 Selling, general and administrative expenses 47,257 — 1,703 10,473 — 59,433 (Loss) income from operations (8,142 ) — 710 1,052 — (6,380 ) Interest expense, net 20,817 — — 66 — 20,883 Foreign currency (gain) — — — (383 ) — (383 ) Loss before income taxes (28,959 ) — 710 1,369 — (26,880 ) Income tax expense (benefit) 778 — (19 ) 373 — 1,132 Loss before equity loss from subsidiaries (29,737 ) — 729 996 — (28,012 ) Equity income from subsidiaries 1,725 — 996 — (2,721 ) — Net (loss) income (28,012 ) — 1,725 996 (2,721 ) (28,012 ) Other comprehensive income (loss): Pension and other postretirement benefit adjustments, net of tax 17 — 35 40 (75 ) 17 Foreign currency translation adjustments, net of tax 11,018 — 11,018 11,018 (22,036 ) 11,018 Total comprehensive income (loss) $ (16,977 ) $ — $ 12,778 $ 12,054 $ (24,832 ) $ (16,977 ) | ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS For The Quarter Ended April 4, 2015 (Unaudited, in thousands) Company Co-Issuer Subsidiary Non-Guarantor Reclassification/ Consolidated Net sales $ 179,638 $ — $ 30,162 $ 47,248 $ (36,682 ) $ 220,366 Cost of sales 148,967 — 28,806 37,372 (36,682 ) 178,463 Gross profit 30,671 — 1,356 9,876 — 41,903 Selling, general and administrative expenses 47,657 — 844 9,969 — 58,470 (Loss) income from operations (16,986 ) — 512 (93 ) — (16,567 ) Interest expense, net 18,788 — 1,661 257 — 20,706 Foreign currency loss — — — 516 — 516 (Loss) income before income taxes (35,774 ) — (1,149 ) (866 ) — (37,789 ) Income tax expense (benefit) 726 — 24 (217 ) — 533 (Loss) income before equity income (loss) from subsidiaries (36,500 ) — (1,173 ) (649 ) — (38,322 ) Equity income (loss) from subsidiaries (1,822 ) — (649 ) — 2,471 — Net (loss) income (38,322 ) — (1,822 ) (649 ) 2,471 (38,322 ) Other comprehensive income (loss): Pension and other postretirement benefit adjustments, net of tax 148 — 58 48 (106 ) 148 Foreign currency translation adjustments, net of tax (11,586 ) — (11,586 ) (11,586 ) 23,172 (11,586 ) Total comprehensive loss $ (49,760 ) $ — $ (13,350 ) $ (12,187 ) $ 25,537 $ (49,760 ) |
Condensed consolidating statements of cash flows | ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For The Quarter Ended April 2, 2016 (Unaudited, in thousands) Company Co-Issuer Subsidiary Non-Guarantor Reclassification/Eliminations Consolidated Net cash provided by (used in) operating activities $ (988 ) $ — $ 3,324 $ (17,564 ) $ — $ (15,228 ) Investing Activities Capital expenditures (1,057 ) (80 ) (838 ) — (1,975 ) Proceeds from the sale of assets 82 4 — 86 Payments on loans to affiliates — — (3,370 ) — 3,370 — Receipts on loans to affiliates — — — (7,000 ) 7,000 — Net cash provided by (used in) investing activities (975 ) — (3,450 ) (7,834 ) 10,370 (1,889 ) Financing Activities Borrowings under ABL facilities 15,000 23,789 — 38,789 Payments under ABL facilities (44,900 ) (6,000 ) — (50,900 ) Promissory note, related parties 20,000 — — 7,500 — 27,500 Financing costs (1,614 ) (10 ) (1,624 ) Borrowings from affiliates 10,370 — — — (10,370 ) — Repayments to affiliates — — — — — — Net cash (used in) provided by financing activities (1,144 ) — — 25,279 (10,370 ) 13,765 Effect of exchange rate changes on cash and cash equivalents 29 — 29 Net decrease in cash and cash equivalents (3,107 ) — (126 ) (90 ) — (3,323 ) Cash and cash equivalents at beginning of period 8,356 152 886 — 9,394 Cash and cash equivalents at end of period $ 5,249 $ — $ 26 $ 796 $ — $ 6,071 | ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For The Quarter Ended April 4, 2015 (Unaudited, in thousands) Company Co-Issuer Subsidiary Guarantors Non-Guarantor Subsidiaries Reclassification/ Eliminations Consolidated Net cash (used in) provided by operating activities $ (20,313 ) $ — $ 1,707 $ (8,065 ) $ — $ (26,671 ) Investing Activities Capital expenditures (5,408 ) — (65 ) (596 ) — (6,069 ) Proceeds from the sale of assets 5 — — 1 6 Payments on loans to affiliates — — (1,642 ) — 1,642 — Receipts on loans to affiliates 2,000 — — — (2,000 ) — Net cash used in investing activities (3,403 ) — (1,707 ) (595 ) (358 ) (6,063 ) Financing Activities Borrowings under ABL facilities 31,400 — — 13,170 — 44,570 Payments under ABL facilities (11,200 ) — — (2,549 ) — (13,749 ) Borrowings from affiliates 1,642 — — — (1,642 ) — Repayments to affiliates — — — (2,000 ) 2,000 — Net cash provided by financing activities 21,842 — — 8,621 358 30,821 Effect of exchange rate changes on cash and cash equivalents — — — 9 — 9 Net decrease in cash and cash equivalents (1,874 ) — — (30 ) — (1,904 ) Cash and cash equivalents at beginning of period 5,933 — — 30 — 5,963 Cash and cash equivalents at end of period $ 4,059 $ — $ — $ — $ — $ 4,059 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016USD ($)distributorsfacilitiessupply_centers | Jan. 02, 2016USD ($) | |
Entity Information [Line Items] | ||
Entity ownership percentage | 100.00% | |
Number of manufacturing facilities | facilities | 11 | |
Contractor customers | 50,000 | |
Company owned supply centers | supply_centers | 122 | |
Independent distributors | distributors | 275 | |
Debt issuance cost | $ 9,069 | $ 8,677 |
Associated Materials, LLC | ||
Entity Information [Line Items] | ||
Entity ownership percentage | 100.00% | |
Hellman & Friedman LLC Affiliated Investment Funds | ||
Entity Information [Line Items] | ||
Entity ownership percentage | 97.00% | |
Long term Debt | Accounting Standards Update 2015-03 | ||
Entity Information [Line Items] | ||
Debt issuance cost | 8,700 | |
Other Assets | Accounting Standards Update 2015-03 | ||
Entity Information [Line Items] | ||
Debt issuance cost | $ (8,700) |
Allowance for Doubtful Accoun33
Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | Apr. 02, 2016 | Jan. 02, 2016 |
Allowance for Doubtful Accounts [Abstract] | ||
Allowance for doubtful accounts, current | $ 2,957 | $ 3,204 |
Allowance for doubtful accounts, non-current | 5,187 | 4,401 |
Allowance for doubtful accounts receivable | $ 8,144 | $ 7,605 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Apr. 02, 2016 | Jan. 02, 2016 |
Inventory, Net [Abstract] | ||
Raw materials | $ 32,034 | $ 31,024 |
Work in process | 10,906 | 10,900 |
Finished goods | 90,373 | 81,450 |
Inventory, net | $ 133,313 | $ 123,374 |
Goodwill and Other Intangible35
Goodwill and Other Intangible Assets (Table 1 Goodwill) (Details) $ in Thousands | 3 Months Ended |
Apr. 02, 2016USD ($) | |
Goodwill [Rollforward] | |
Balance at January 2, 2016 | $ 302,908 |
Foreign currency translation | 5,231 |
Balance at April 2, 2016 | $ 308,139 |
Goodwill and Other Intangible36
Goodwill and Other Intangible Assets (Table 2 Intangibles) (Details) - USD ($) $ in Thousands | Apr. 02, 2016 | Jan. 02, 2016 |
Finite-Lived Intangible Assets, Net | ||
Amortized Intangible Assets, Cost | $ 316,763 | $ 313,841 |
Amortized Intangible Assets, Accumulated Amortization | 135,857 | 128,249 |
Amortized Intangible Assets, Net Carrying Value | 180,906 | 185,592 |
Intangible Assets, Net (Excluding Goodwill) | ||
Amortized and Non-amortized Intangible Assets, Cost (Excluding Goodwill) | 532,680 | 526,202 |
Amortized and Non-amortized Intangible Assets, Net (Excluding Goodwill) | 396,823 | 397,953 |
Non-amortized trade names | ||
Intangible Assets, Net (Excluding Goodwill) | ||
Non-amortized Intangible Assets, Cost | 215,917 | 212,361 |
Amortized customer bases | ||
Finite-Lived Intangible Assets, Net | ||
Amortized Intangible Assets, Cost | 316,743 | 313,821 |
Amortized Intangible Assets, Accumulated Amortization | 135,837 | 128,230 |
Amortized Intangible Assets, Net Carrying Value | 180,906 | 185,591 |
Amortized non-compete agreements | ||
Finite-Lived Intangible Assets, Net | ||
Amortized Intangible Assets, Cost | 20 | 20 |
Amortized Intangible Assets, Accumulated Amortization | 20 | 19 |
Amortized Intangible Assets, Net Carrying Value | $ 0 | $ 1 |
Goodwill and Other Intangible37
Goodwill and Other Intangible Assets (Textual) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Apr. 02, 2016 | Apr. 04, 2015 | Jan. 03, 2015 | Dec. 31, 2011 | Jan. 02, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill, accumulated impairment loss | $ 228,500,000 | $ 228,500,000 | |||
Intangible assets impaired accumulated impairment loss | 169,600,000 | $ 169,600 | |||
Impairment of intangible assets | $ 89,700,000 | $ 79,900,000 | |||
Amortization of itangible assets | 6,200,000 | $ 6,300,000 | |||
2,016 | 25,000,000 | ||||
2,017 | 25,000,000 | ||||
2,018 | 25,000,000 | ||||
2,019 | 25,000,000 | ||||
2,020 | $ 25,000,000 | ||||
Amortized customer bases | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived intangible asset, useful life | 13 years | ||||
Amortized non-compete agreements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-Lived intangible asset, useful life | 3 years |
Restructuring Costs (Details)
Restructuring Costs (Details) $ in Thousands | 3 Months Ended | ||
Apr. 02, 2016USD ($)supply_centers | Oct. 03, 2015supply_centers | Apr. 04, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Company owned supply centers | supply_centers | 122 | ||
Distribution [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Company owned supply centers | supply_centers | 11 | ||
Restructuring Reserve [RollForward] | |||
Balance at the beginning of the period | $ 1,654 | $ 0 | |
Accretion of related lease obligations | 0 | 0 | |
Payments | (298) | 0 | |
Balance at the end of the period | 1,356 | 0 | |
Manufacturing [Member] | |||
Restructuring Reserve [RollForward] | |||
Balance at the beginning of the period | 1,147 | 1,960 | |
Accretion of related lease obligations | 115 | 114 | |
Payments | (337) | (364) | |
Balance at the end of the period | 925 | 1,710 | |
Facility Closing [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Company owned supply centers | supply_centers | 4 | ||
Restructuring Reserve [RollForward] | |||
Balance at the beginning of the period | 2,801 | 1,960 | |
Accretion of related lease obligations | 115 | 114 | |
Payments | (635) | (364) | |
Balance at the end of the period | $ 2,281 | $ 1,710 |
Product Warranty Costs (Details
Product Warranty Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Standard Product Warranty Accrual Rollforward | ||
Balance at the beginning of the period | $ 85,112 | $ 89,940 |
Provision for warranties issued and changes in estimates for pre-existing warranties | 1,327 | 1,250 |
Claims paid | (1,503) | (1,328) |
Foreign currency translation | 566 | (616) |
Balance at the end of the period | $ 85,502 | $ 89,246 |
Executive Officers' Separatio40
Executive Officers' Separation and Hiring Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Apr. 02, 2016 | Jan. 03, 2015 | |
Separation and Hiring Costs [Line Items] | ||
Executive officers' separation and hiring, period costs | $ 2 | |
Executive Officer | ||
Separation and Hiring Costs [Line Items] | ||
Executive officers' separation and hiring, period costs | $ 0.1 | |
Executive ocers' separation and hiring, severance liabilities | $ 0.3 |
Long-Term Debt (Table) (Details
Long-Term Debt (Table) (Details) - USD ($) $ in Thousands | Apr. 02, 2016 | Jan. 02, 2016 |
Debt Instrument [Line Items] | ||
Less: Deferred financing costs, net of amortization | $ (9,069) | $ (8,677) |
Total long-term debt | 931,495 | 916,807 |
Senior notes | ||
Debt Instrument [Line Items] | ||
Plus: Unamortized premium | 2,340 | 2,684 |
Senior notes | 9.125% Senior Secured Notes, due 2017 | ||
Debt Instrument [Line Items] | ||
9.125% Senior Secured Notes, due 2017 | 830,000 | 830,000 |
Promissory note, related parties | Promissory note, related parties | ||
Debt Instrument [Line Items] | ||
Promissory note, related parties | 27,500 | 0 |
Line of credit | ||
Debt Instrument [Line Items] | ||
Borrowings under the ABL facilities | $ 80,724 | $ 92,800 |
Long-Term Debt (Textual 1 Senio
Long-Term Debt (Textual 1 Senior Secured Notes) (Details) - USD ($) | 3 Months Ended | ||||
Apr. 02, 2016 | Jan. 02, 2016 | May. 01, 2013 | Oct. 31, 2010 | Oct. 13, 2010 | |
Debt Instrument [Line Items] | |||||
Entity ownership percentage | 100.00% | ||||
Senior notes | Original 9.125% Secured Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 730,000,000 | ||||
Debt instrument, interest rate, stated percentage | 9.125% | 9.125% | |||
Senior notes | New 9.125% Secured Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 100,000,000 | ||||
Debt instrument, interest rate, stated percentage | 9.125% | 9.125% | |||
Notes sold at as a percentage of principle amount | 106.00% | ||||
Debt instrument, interest rate, effective percentage | 7.50% | ||||
Senior notes | 9.125% Senior Secured Notes, due 2017 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 9.125% | ||||
Entity ownership percentage | 100.00% | ||||
9.125% Senior Secured Notes, due 2017 | $ 830,000,000 | $ 830,000,000 | |||
Long-term debt, fair value | 653,600,000 | $ 576,400,000 | |||
Debt instrument, collateral, minimum value of fixed assets that guarantee debt obligation | $ 5,000,000 | ||||
Debt instrument, collateral, present and future shares of capital stock, percentage | 65.00% | ||||
Debt Instrument, redemption price in percentage due to change in control | 101.00% | ||||
12-month Period Commencing on November 1, 2013 | Senior notes | 9.125% Senior Secured Notes, due 2017 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price in percentage | 106.844% | ||||
12-month Period Commencing on November 1, 2014 | Senior notes | 9.125% Senior Secured Notes, due 2017 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price in percentage | 104.563% | ||||
12-month Period Commencing on November 1, 2015 | Senior notes | 9.125% Senior Secured Notes, due 2017 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price in percentage | 102.281% | ||||
12-month Period Commencing on November 1, 2016 | Senior notes | 9.125% Senior Secured Notes, due 2017 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price in percentage | 100.00% |
Long-Term Debt (Textual 2 ABL F
Long-Term Debt (Textual 2 ABL Facilities) (Details) $ in Thousands | Jun. 03, 2016USD ($) | May. 20, 2016USD ($) | Feb. 19, 2016USD ($) | Apr. 19, 2013USD ($) | Apr. 18, 2013 | May. 19, 2016USD ($) | Apr. 21, 2016USD ($) | Apr. 02, 2016USD ($)quarter | Apr. 18, 2018USD ($) | Jan. 02, 2016USD ($) | Oct. 31, 2015USD ($) | Oct. 31, 2010 |
Line of Credit Facility [Line Items] | ||||||||||||
Fixed charge coverage | 1.05 | |||||||||||
Debt instrument, description of variable rate basis | LIBOR | |||||||||||
Debt instrument, additional basis rate | 4.25% | |||||||||||
Debt instrument, interest rate margin pricing increments | 25 basis point | |||||||||||
Debt instrument, interest rate margin pricing increments, basis points | 0.25% | |||||||||||
Number of fiscal quarters | quarter | 4 | |||||||||||
Debt instrument, interest rate, stated percentage rate range, minimum | 1.00% | |||||||||||
First lien promissory note, excess availability threshold, minimum, before prepayment | $ 60,000 | |||||||||||
First lien promissory note, excess availability. period | 30 days | |||||||||||
First lien promissory note, excess availability threshold, minimum, after prepayment | $ 32,500 | |||||||||||
Line of credit | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Line of credit facility, maximum borrowing capacity | $ 213,000 | $ 225,000 | ||||||||||
Days prior to the maturity date, period | 90 days | |||||||||||
Fixed charge coverage | 1 | |||||||||||
Line of credit facility, increase (decrease) in borrowing capacity, net | $ 12,000 | |||||||||||
Write off of deferred debt issuance cost | $ 500 | |||||||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.375% | |||||||||||
Debt instrument, covenant minimum availability as percentage of borrowing base | 10.00% | |||||||||||
Debt Instrument, covenant minimum availability | $ 20,000 | |||||||||||
Debt Covenant, EBITDA | 101,000 | |||||||||||
Line of credit facility, excess availability | 40,600 | |||||||||||
Line of credit facility, amount outstanding | 80,724 | $ 92,800 | ||||||||||
Line of credit facility, remaining borrowing capacity | 40,600 | |||||||||||
Letters of credit outstanding | $ 12,300 | |||||||||||
US facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Line of credit facility, maximum borrowing capacity | 150,000 | |||||||||||
Line of credit facility, interest rate at period end | 2.90% | |||||||||||
Canadian facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Line of credit facility, maximum borrowing capacity | $ 75,000 | |||||||||||
Line of credit facility, interest rate at period end | 4.60% | |||||||||||
LIBOR | US facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt instrument, description of variable rate basis | LIBOR | |||||||||||
Debt instrument, basis spread on variable rate | 2.25% | |||||||||||
CDOR | Canadian facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt instrument, description of variable rate basis | CDOR | |||||||||||
One-month LIBOR | US facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt instrument, description of variable rate basis | one-month LIBOR | |||||||||||
Debt instrument, basis spread on variable rate | 1.25% | |||||||||||
Debt instrument, additional basis rate | 1.00% | |||||||||||
30 Day CDOR | Canadian facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt instrument, additional basis rate | 1.00% | |||||||||||
US prime rate | US facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt instrument, description of variable rate basis | prime rate | |||||||||||
Canadian primate rate | Canadian facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt instrument, description of variable rate basis | Canadian prime | |||||||||||
Federal Funds Effective Rate | US facility | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt instrument, description of variable rate basis | Federal Funds Effective Rate | |||||||||||
Debt instrument, additional basis rate | 0.50% | |||||||||||
Subsequent Event | Line of credit | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt Instrument, covenant minimum availability | $ 7,500 | $ 10,000 | ||||||||||
Debt instrument, consecutive business days, period | 5 days | |||||||||||
Debt Instrument, covenant minimum availability block | $ 10,000 | |||||||||||
Scenario, Forecast | Line of credit | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt Instrument, covenant minimum availability | $ 10,000 | $ 7,500 | ||||||||||
Debt instrument, consecutive business days, period | 5 days | 5 days | ||||||||||
Debt Instrument, covenant minimum availability block | $ 20,000 | $ 7,500 | $ 10,000 | |||||||||
UNITED STATES | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Notes payable, related parties | 20,000 | |||||||||||
CANADA | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Notes payable, related parties | $ 7,500 | |||||||||||
Senior notes | Original 9.125% Secured Senior Notes | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt instrument, interest rate, stated percentage | 9.125% | 9.125% | ||||||||||
Minimum | Line of credit | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt instrument, consecutive business days, period | 5 days | |||||||||||
Maximum | Line of credit | ||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||
Debt instrument, consecutive business days, period | 30 days |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Income Tax Disclosure [Abstract] | ||
Loss before income taxes | $ (26,880) | $ (37,789) |
Income tax expense | $ 1,132 | $ 533 |
Effective tax rate | (4.20%) | (1.40%) |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive Loss (Table 1 Change in AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax [Roll Forward] | ||
Beginning Balance | $ (18,901) | $ (23,781) |
Other comprehensive income before reclassifications, net of tax of $0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss, net of tax of $14 | 17 | 148 |
Ending Balance | (18,884) | (23,633) |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, before Tax [Roll Forward] | ||
Beginning Balance | (68,006) | (36,842) |
Other comprehensive income before reclassifications, net of tax of $0 | 11,018 | (11,586) |
Amounts reclassified from accumulated other comprehensive loss, net of tax of $14 | 0 | 0 |
Ending Balance | (56,988) | (48,428) |
Other Comprehensive Income (Loss), Before Tax [Roll Forward] | ||
Beginning Balance | (86,907) | (60,623) |
Other comprehensive income before reclassifications, net of tax of $0 | 11,018 | (11,586) |
Amounts reclassified from accumulated other comprehensive loss, net of tax of $14 | 17 | 148 |
Ending Balance | (75,872) | (72,061) |
Othe comprehensive income before reclassifications, tax | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss, tax | $ 14 | $ 17 |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Loss (Table 2 Reclassifications out of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Net of tax | $ 17 | $ 148 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Amortization of unrecognized prior service costs | 6 | 7 |
Amortization of unrecognized cumulative actuarial net loss | 25 | 158 |
Total before tax | 31 | 165 |
Tax expense | (14) | (17) |
Net of tax | $ 17 | $ 148 |
Stock Plans (Details)
Stock Plans (Details) $ / shares in Units, $ in Millions | May. 31, 2015$ / shares | Jun. 30, 2015USD ($)shares | Apr. 30, 2015shares | Mar. 31, 2015shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Increase in number of shares authorized (in shares) | 1,500,000 | |||
Number of shares authorized (in shares) | 9,050,076 | 7,550,076 | ||
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Plan modification, number of shares affected (in shares) | 4,500,000 | |||
Plan modification, number of employees affected | 17 | |||
Weighted average exercise price prior to modification | $ / shares | $ 9.23 | |||
Average remaining contractual life | 8 years 9 months 18 days | |||
Incremental compensation cost | $ | $ 0.3 |
Retirement Plans (Details)
Retirement Plans (Details) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016USD ($)plan | Apr. 04, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||
Number of underfunded plans | plan | 3 | |
Domestic Plans | ||
Net periodic benefit cost: | ||
Service cost | $ 316 | $ 331 |
Interest cost | 827 | 806 |
Expected return on assets | (854) | (973) |
Prior service costs (credits) | 3 | 3 |
Cumulative actuarial net loss (gain) | 21 | 104 |
Net periodic benefit cost | 313 | 271 |
Foreign Plans | ||
Net periodic benefit cost: | ||
Service cost | 620 | 641 |
Interest cost | 770 | 791 |
Expected return on assets | (832) | (938) |
Prior service costs (credits) | 5 | 6 |
Cumulative actuarial net loss (gain) | 49 | 59 |
Net periodic benefit cost | 612 | 559 |
OPEB Plans | ||
Net periodic benefit cost: | ||
Service cost | 3 | 4 |
Interest cost | 31 | 43 |
Expected return on assets | 0 | 0 |
Prior service costs (credits) | (2) | (2) |
Cumulative actuarial net loss (gain) | (45) | (5) |
Net periodic benefit cost | $ (13) | $ 40 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Environmental Issue - USD ($) $ in Millions | 3 Months Ended | |
Apr. 02, 2016 | Jan. 03, 2015 | |
Loss Contingencies [Line Items] | ||
Environmental remediation funding | $ 0.1 | |
Letters of credit outstanding | $ 0.3 | |
Accrual for environmental loss contingencies | $ 1 |
Business Segments (Table) (Deta
Business Segments (Table) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Revenue from External Customer [Line Items] | ||
Revenues | $ 236,281 | $ 220,366 |
Vinyl windows | ||
Revenue from External Customer [Line Items] | ||
Revenues | 86,634 | 82,254 |
Vinyl siding products | ||
Revenue from External Customer [Line Items] | ||
Revenues | 38,585 | 35,165 |
Metal products | ||
Revenue from External Customer [Line Items] | ||
Revenues | 29,820 | 28,407 |
Third-party manufactured products | ||
Revenue from External Customer [Line Items] | ||
Revenues | 52,227 | 47,499 |
Other products and services | ||
Revenue from External Customer [Line Items] | ||
Revenues | $ 29,015 | $ 27,041 |
Business Segments Textual (Deta
Business Segments Textual (Details) | 3 Months Ended |
Apr. 02, 2016 | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
Subsidiary Guarantors (Textural
Subsidiary Guarantors (Textural) (Details) | 3 Months Ended |
Apr. 02, 2016 | |
Gentek Holdings, LLC and Gentek Building Products | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percent of guarantor subsidiaries | 100.00% |
AMH New Finance, Inc | |
Condensed Financial Statements, Captions [Line Items] | |
Ownership percent of guarantor subsidiaries | 100.00% |
Senior notes | 9.125% Senior Secured Notes, due 2017 | |
Condensed Financial Statements, Captions [Line Items] | |
Debt instrument, interest rate, stated percentage | 9.125% |
Subsidiary Guarantors Table - C
Subsidiary Guarantors Table - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Apr. 02, 2016 | Jan. 02, 2016 | Apr. 04, 2015 | Jan. 03, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 6,071 | $ 9,394 | $ 4,059 | $ 5,963 |
Accounts receivable, net | 131,066 | 127,043 | ||
Intercompany receivables | 0 | 0 | ||
Inventories | 133,313 | 123,374 | ||
Income taxes receivable | 1,724 | 1,612 | ||
Deferred income taxes | 1,502 | 1,502 | ||
Prepaid expenses and other current assets | 14,887 | 14,163 | ||
Total current assets | 288,563 | 277,088 | ||
Property, plant and equipment, net | 90,380 | 90,794 | ||
Goodwill | 308,139 | 302,908 | ||
Other intangible assets, net | 396,823 | 397,953 | ||
Intercompany receivable | 0 | 0 | ||
Other assets | 4,538 | 4,593 | ||
Total assets | 1,088,443 | 1,073,336 | ||
Current liabilities: | ||||
Accounts payable | 97,540 | 91,563 | ||
Intercompany payables | 0 | 0 | ||
Accrued liabilities | 92,353 | 83,630 | ||
Deferred income taxes | 1,231 | 436 | ||
Income taxes payable | 419 | 36 | ||
Total current liabilities | 191,543 | 175,665 | ||
Deferred income taxes | 83,390 | 82,102 | ||
Other liabilities | 113,310 | 113,123 | ||
Deficit in subsidiaries | 0 | 0 | ||
Long-term debt | 931,495 | 916,807 | ||
Member’s deficit | (231,295) | (214,361) | ||
Total liabilities and member’s deficit | 1,088,443 | 1,073,336 | ||
Company | ||||
Current assets: | ||||
Cash and cash equivalents | 5,249 | 8,356 | 4,059 | 5,933 |
Accounts receivable, net | 99,578 | 103,506 | ||
Intercompany receivables | 335,181 | 352,323 | ||
Inventories | 88,936 | 88,440 | ||
Income taxes receivable | 0 | 0 | ||
Deferred income taxes | 244 | 243 | ||
Prepaid expenses and other current assets | 12,366 | 12,114 | ||
Total current assets | 541,554 | 564,982 | ||
Property, plant and equipment, net | 63,047 | 65,277 | ||
Goodwill | 203,841 | 203,841 | ||
Other intangible assets, net | 280,115 | 285,115 | ||
Intercompany receivable | 0 | 0 | ||
Other assets | 3,589 | 3,572 | ||
Total assets | 1,092,146 | 1,122,787 | ||
Current liabilities: | ||||
Accounts payable | 67,200 | 68,213 | ||
Intercompany payables | 1,794 | 1,794 | ||
Accrued liabilities | 81,125 | 71,446 | ||
Deferred income taxes | 767 | 0 | ||
Income taxes payable | 34 | 36 | ||
Total current liabilities | 150,920 | 141,489 | ||
Deferred income taxes | 50,149 | 50,147 | ||
Other liabilities | 76,513 | 76,641 | ||
Deficit in subsidiaries | 141,185 | 153,964 | ||
Long-term debt | 904,674 | 914,907 | ||
Member’s deficit | (231,295) | (214,361) | ||
Total liabilities and member’s deficit | 1,092,146 | 1,122,787 | ||
Co-Issuer | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Inventories | 0 | 0 | ||
Income taxes receivable | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Intercompany receivable | 832,340 | 832,684 | ||
Other assets | 0 | 0 | ||
Total assets | 832,340 | 832,684 | ||
Current liabilities: | ||||
Accounts payable | 0 | 0 | ||
Intercompany payables | 0 | 0 | ||
Accrued liabilities | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Income taxes payable | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Deficit in subsidiaries | 0 | 0 | ||
Long-term debt | 832,340 | 832,684 | ||
Member’s deficit | 0 | 0 | ||
Total liabilities and member’s deficit | 832,340 | 832,684 | ||
Subsidiary Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 26 | 152 | 0 | 0 |
Accounts receivable, net | 6,286 | 6,903 | ||
Intercompany receivables | 68,728 | 67,591 | ||
Inventories | 8,461 | 5,527 | ||
Income taxes receivable | 198 | 178 | ||
Deferred income taxes | 1,258 | 1,258 | ||
Prepaid expenses and other current assets | 969 | 955 | ||
Total current assets | 85,926 | 82,564 | ||
Property, plant and equipment, net | 1,285 | 1,303 | ||
Goodwill | 16,713 | 16,713 | ||
Other intangible assets, net | 32,521 | 32,633 | ||
Intercompany receivable | 0 | 0 | ||
Other assets | 85 | 1 | ||
Total assets | 136,530 | 133,214 | ||
Current liabilities: | ||||
Accounts payable | 7,381 | 4,183 | ||
Intercompany payables | 0 | 0 | ||
Accrued liabilities | 4,364 | 4,876 | ||
Deferred income taxes | 0 | 0 | ||
Income taxes payable | 0 | 0 | ||
Total current liabilities | 11,745 | 9,059 | ||
Deferred income taxes | 11,920 | 11,920 | ||
Other liabilities | 19,625 | 19,676 | ||
Deficit in subsidiaries | 234,425 | 246,523 | ||
Long-term debt | 0 | 0 | ||
Member’s deficit | (141,185) | (153,964) | ||
Total liabilities and member’s deficit | 136,530 | 133,214 | ||
Non-Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 796 | 886 | 0 | 30 |
Accounts receivable, net | 25,202 | 16,634 | ||
Intercompany receivables | 1,794 | 1,794 | ||
Inventories | 35,916 | 29,407 | ||
Income taxes receivable | 1,526 | 1,434 | ||
Deferred income taxes | 0 | 1 | ||
Prepaid expenses and other current assets | 1,552 | 1,094 | ||
Total current assets | 66,786 | 51,250 | ||
Property, plant and equipment, net | 26,048 | 24,214 | ||
Goodwill | 87,585 | 82,354 | ||
Other intangible assets, net | 84,187 | 80,205 | ||
Intercompany receivable | 0 | 0 | ||
Other assets | 864 | 1,020 | ||
Total assets | 265,470 | 239,043 | ||
Current liabilities: | ||||
Accounts payable | 22,959 | 19,167 | ||
Intercompany payables | 403,909 | 419,914 | ||
Accrued liabilities | 6,864 | 7,308 | ||
Deferred income taxes | 464 | 436 | ||
Income taxes payable | 385 | 0 | ||
Total current liabilities | 434,581 | 446,825 | ||
Deferred income taxes | 21,321 | 20,035 | ||
Other liabilities | 17,172 | 16,806 | ||
Deficit in subsidiaries | 0 | 0 | ||
Long-term debt | 26,821 | 1,900 | ||
Member’s deficit | (234,425) | (246,523) | ||
Total liabilities and member’s deficit | 265,470 | 239,043 | ||
Reclassification/ Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable, net | 0 | 0 | ||
Intercompany receivables | (405,703) | (421,708) | ||
Inventories | 0 | 0 | ||
Income taxes receivable | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | (405,703) | (421,708) | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Intercompany receivable | (832,340) | (832,684) | ||
Other assets | 0 | 0 | ||
Total assets | (1,238,043) | (1,254,392) | ||
Current liabilities: | ||||
Accounts payable | 0 | 0 | ||
Intercompany payables | (405,703) | (421,708) | ||
Accrued liabilities | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Income taxes payable | 0 | 0 | ||
Total current liabilities | (405,703) | (421,708) | ||
Deferred income taxes | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Deficit in subsidiaries | (375,610) | (400,487) | ||
Long-term debt | (832,340) | (832,684) | ||
Member’s deficit | 375,610 | 400,487 | ||
Total liabilities and member’s deficit | $ (1,238,043) | $ (1,254,392) |
Subsidiary Guarantors Table -54
Subsidiary Guarantors Table - Condensed Consolidating Statement of Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net sales | $ 236,281 | $ 220,366 |
Cost of sales | 183,228 | 178,463 |
Gross profit | 53,053 | 41,903 |
Selling, general and administrative expenses | 59,433 | 58,470 |
(Loss) income from operations | (6,380) | (16,567) |
Interest expense, net | 20,883 | 20,706 |
Foreign currency (gain) | (383) | 516 |
Loss before income taxes | (26,880) | (37,789) |
Income tax expense | 1,132 | 533 |
Loss before equity loss from subsidiaries | (28,012) | (38,322) |
Equity income from subsidiaries | 0 | 0 |
Net (loss) income | (28,012) | (38,322) |
Other comprehensive income (loss): | ||
Pension and other postretirement benefit adjustments, net of tax | 17 | 148 |
Foreign currency translation adjustments, net of tax | 11,018 | (11,586) |
Total comprehensive income (loss) | (16,977) | (49,760) |
Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net sales | 195,331 | 179,638 |
Cost of sales | 156,216 | 148,967 |
Gross profit | 39,115 | 30,671 |
Selling, general and administrative expenses | 47,257 | 47,657 |
(Loss) income from operations | (8,142) | (16,986) |
Interest expense, net | 20,817 | 18,788 |
Foreign currency (gain) | 0 | 0 |
Loss before income taxes | (28,959) | (35,774) |
Income tax expense | 778 | 726 |
Loss before equity loss from subsidiaries | (29,737) | (36,500) |
Equity income from subsidiaries | 1,725 | (1,822) |
Net (loss) income | (28,012) | (38,322) |
Other comprehensive income (loss): | ||
Pension and other postretirement benefit adjustments, net of tax | 17 | 148 |
Foreign currency translation adjustments, net of tax | 11,018 | (11,586) |
Total comprehensive income (loss) | (16,977) | (49,760) |
Co-Issuer | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net sales | 0 | 0 |
Cost of sales | 0 | 0 |
Gross profit | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 |
(Loss) income from operations | 0 | 0 |
Interest expense, net | 0 | 0 |
Foreign currency (gain) | 0 | 0 |
Loss before income taxes | 0 | 0 |
Income tax expense | 0 | 0 |
Loss before equity loss from subsidiaries | 0 | 0 |
Equity income from subsidiaries | 0 | 0 |
Net (loss) income | 0 | 0 |
Other comprehensive income (loss): | ||
Pension and other postretirement benefit adjustments, net of tax | 0 | 0 |
Foreign currency translation adjustments, net of tax | 0 | 0 |
Total comprehensive income (loss) | 0 | 0 |
Subsidiary Guarantors | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net sales | 32,308 | 30,162 |
Cost of sales | 29,895 | 28,806 |
Gross profit | 2,413 | 1,356 |
Selling, general and administrative expenses | 1,703 | 844 |
(Loss) income from operations | 710 | 512 |
Interest expense, net | 0 | 1,661 |
Foreign currency (gain) | 0 | 0 |
Loss before income taxes | 710 | (1,149) |
Income tax expense | (19) | 24 |
Loss before equity loss from subsidiaries | 729 | (1,173) |
Equity income from subsidiaries | 996 | (649) |
Net (loss) income | 1,725 | (1,822) |
Other comprehensive income (loss): | ||
Pension and other postretirement benefit adjustments, net of tax | 35 | 58 |
Foreign currency translation adjustments, net of tax | 11,018 | (11,586) |
Total comprehensive income (loss) | 12,778 | (13,350) |
Non-Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net sales | 47,857 | 47,248 |
Cost of sales | 36,332 | 37,372 |
Gross profit | 11,525 | 9,876 |
Selling, general and administrative expenses | 10,473 | 9,969 |
(Loss) income from operations | 1,052 | (93) |
Interest expense, net | 66 | 257 |
Foreign currency (gain) | (383) | 516 |
Loss before income taxes | 1,369 | (866) |
Income tax expense | 373 | (217) |
Loss before equity loss from subsidiaries | 996 | (649) |
Equity income from subsidiaries | 0 | 0 |
Net (loss) income | 996 | (649) |
Other comprehensive income (loss): | ||
Pension and other postretirement benefit adjustments, net of tax | 40 | 48 |
Foreign currency translation adjustments, net of tax | 11,018 | (11,586) |
Total comprehensive income (loss) | 12,054 | (12,187) |
Reclassification/ Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net sales | (39,215) | (36,682) |
Cost of sales | (39,215) | (36,682) |
Gross profit | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 |
(Loss) income from operations | 0 | 0 |
Interest expense, net | 0 | 0 |
Foreign currency (gain) | 0 | 0 |
Loss before income taxes | 0 | 0 |
Income tax expense | 0 | 0 |
Loss before equity loss from subsidiaries | 0 | 0 |
Equity income from subsidiaries | (2,721) | 2,471 |
Net (loss) income | (2,721) | 2,471 |
Other comprehensive income (loss): | ||
Pension and other postretirement benefit adjustments, net of tax | (75) | (106) |
Foreign currency translation adjustments, net of tax | (22,036) | 23,172 |
Total comprehensive income (loss) | $ (24,832) | $ 25,537 |
Subsidiary Guarantors Table -55
Subsidiary Guarantors Table - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Apr. 04, 2015 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $ (15,228) | $ (26,671) |
Investing Activities | ||
Capital expenditures | (1,975) | (6,069) |
Proceeds from the sale of assets | 86 | 6 |
Payments on loans to affiliates | 0 | 0 |
Receipts on loans to affiliates | 0 | 0 |
Net cash provided by (used in) investing activities | (1,889) | (6,063) |
Financing Activities | ||
Borrowings under ABL facilities | 38,789 | 44,570 |
Payments under ABL facilities | (50,900) | (13,749) |
Promissory note, related parties | 27,500 | |
Financing costs | (1,624) | 0 |
Borrowings from affiliates | 0 | 0 |
Repayments to affiliates | 0 | 0 |
Net cash (used in) provided by financing activities | 13,765 | 30,821 |
Effect of exchange rate changes on cash and cash equivalents | 29 | 9 |
Net decrease in cash and cash equivalents | (3,323) | (1,904) |
Cash and cash equivalents at beginning of period | 9,394 | 5,963 |
Cash and cash equivalents at end of period | 6,071 | 4,059 |
Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (988) | (20,313) |
Investing Activities | ||
Capital expenditures | (1,057) | (5,408) |
Proceeds from the sale of assets | 82 | 5 |
Payments on loans to affiliates | 0 | 0 |
Receipts on loans to affiliates | 0 | 2,000 |
Net cash provided by (used in) investing activities | (975) | (3,403) |
Financing Activities | ||
Borrowings under ABL facilities | 15,000 | 31,400 |
Payments under ABL facilities | (44,900) | (11,200) |
Promissory note, related parties | 20,000 | |
Financing costs | (1,614) | |
Borrowings from affiliates | 10,370 | 1,642 |
Repayments to affiliates | 0 | 0 |
Net cash (used in) provided by financing activities | $ (1,144) | 21,842 |
Effect of exchange rate changes on cash and cash equivalents | 0 | |
Net decrease in cash and cash equivalents | $ (3,107) | (1,874) |
Cash and cash equivalents at beginning of period | 8,356 | 5,933 |
Cash and cash equivalents at end of period | 5,249 | 4,059 |
Co-Issuer | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $ 0 | 0 |
Investing Activities | ||
Capital expenditures | 0 | |
Proceeds from the sale of assets | 0 | |
Payments on loans to affiliates | $ 0 | 0 |
Receipts on loans to affiliates | 0 | 0 |
Net cash provided by (used in) investing activities | $ 0 | 0 |
Financing Activities | ||
Borrowings under ABL facilities | 0 | |
Payments under ABL facilities | 0 | |
Promissory note, related parties | $ 0 | |
Borrowings from affiliates | 0 | 0 |
Repayments to affiliates | 0 | 0 |
Net cash (used in) provided by financing activities | $ 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | |
Net decrease in cash and cash equivalents | $ 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Subsidiary Guarantors | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 3,324 | 1,707 |
Investing Activities | ||
Capital expenditures | $ (80) | (65) |
Proceeds from the sale of assets | 0 | |
Payments on loans to affiliates | $ (3,370) | (1,642) |
Receipts on loans to affiliates | 0 | 0 |
Net cash provided by (used in) investing activities | $ (3,450) | (1,707) |
Financing Activities | ||
Borrowings under ABL facilities | 0 | |
Payments under ABL facilities | 0 | |
Promissory note, related parties | $ 0 | |
Borrowings from affiliates | 0 | 0 |
Repayments to affiliates | 0 | 0 |
Net cash (used in) provided by financing activities | $ 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | |
Net decrease in cash and cash equivalents | $ (126) | 0 |
Cash and cash equivalents at beginning of period | 152 | 0 |
Cash and cash equivalents at end of period | 26 | 0 |
Non-Guarantor Subsidiaries | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (17,564) | (8,065) |
Investing Activities | ||
Capital expenditures | (838) | (596) |
Proceeds from the sale of assets | 4 | 1 |
Payments on loans to affiliates | 0 | 0 |
Receipts on loans to affiliates | (7,000) | 0 |
Net cash provided by (used in) investing activities | (7,834) | (595) |
Financing Activities | ||
Borrowings under ABL facilities | 23,789 | 13,170 |
Payments under ABL facilities | (6,000) | (2,549) |
Promissory note, related parties | 7,500 | |
Financing costs | (10) | |
Borrowings from affiliates | 0 | 0 |
Repayments to affiliates | 0 | (2,000) |
Net cash (used in) provided by financing activities | 25,279 | 8,621 |
Effect of exchange rate changes on cash and cash equivalents | 29 | 9 |
Net decrease in cash and cash equivalents | (90) | (30) |
Cash and cash equivalents at beginning of period | 886 | 30 |
Cash and cash equivalents at end of period | 796 | 0 |
Reclassification/ Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Investing Activities | ||
Capital expenditures | 0 | 0 |
Proceeds from the sale of assets | 0 | |
Payments on loans to affiliates | 3,370 | 1,642 |
Receipts on loans to affiliates | 7,000 | (2,000) |
Net cash provided by (used in) investing activities | 10,370 | (358) |
Financing Activities | ||
Borrowings under ABL facilities | 0 | 0 |
Payments under ABL facilities | 0 | 0 |
Promissory note, related parties | 0 | |
Borrowings from affiliates | (10,370) | (1,642) |
Repayments to affiliates | 0 | 2,000 |
Net cash (used in) provided by financing activities | (10,370) | 358 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net decrease in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | $ 0 | $ 0 |