Guarantor and Non-guarantor Financial Statements | Note 18—Guarantor and Non-guarantor Financial Statements Our senior secured notes are, jointly and severally, fully and unconditionally guaranteed, on a senior basis, by all of our existing and future 100% owned domestic subsidiaries ("Guarantor Subsidiaries"). The non-guarantor subsidiaries are our foreign subsidiaries and discontinued operations. The following condensed financial information illustrates the composition of the combined Guarantor Subsidiaries: CONDENSED CONSOLIDATED BALANCE SHEETS December 31, 2015 (In thousands) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Total ASSETS Cash and cash equivalents $ 12,127 $ — $ 17,632 $ — $ 29,759 Accounts and other receivables, net 34,900 14,348 16,366 366 65,980 Intercompany receivable 123,479 67,504 58,430 (249,413) — Inventories 20,352 19,169 8,637 (366) 47,792 Other current assets 3,689 2,957 1,753 — 8,399 Total current assets 194,547 103,978 102,818 (249,413) 151,930 Property, plant, and equipment, net 78,527 95,526 50,709 — 224,762 Goodwill 96,283 — — — 96,283 Intangible assets, net 109,461 2,330 — — 111,791 Investments in and advances to subsidiaries and affiliates 221,676 — — (221,676) — Other non-current assets 5,903 345 15,702 — 21,950 TOTAL $ 706,397 $ 202,179 $ 169,229 $ (471,089) $ 606,716 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 18,239 $ 35,890 $ 17,653 $ — $ 71,782 Intercompany payable 239,042 — 10,371 (249,413) — Accrued payroll and compensation 1,485 5,448 2,299 — 9,232 Accrued interest payable 12,521 — — — 12,521 Accrued and other liabilities 4,549 8,792 15,022 — 28,363 Total current liabilities 275,836 50,130 45,345 (249,413) 121,898 Long term debt 307,285 — 66 — 307,351 Deferred and non-current income taxes 17,969 (4,754) (82) — 13,133 Other non-current liabilities 34,453 40,575 18,452 — 93,480 Stockholders' equity 70,854 116,228 105,448 (221,676) 70,854 TOTAL $ 706,397 $ 202,179 $ 169,229 $ (471,089) $ 606,716 December 31, 2014 (In thousands) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Total ASSETS Cash and cash equivalents $ 22,710 $ — $ 7,063 — $ 29,773 Accounts and other receivables, net 35,630 20,994 6,543 403 63,570 Intercompany Receivable 191,272 5,086 53,055 (249,413) — Inventories 18,693 21,352 3,423 (403) 43,065 Other current assets 4,970 3,386 5,116 — 13,472 Total current assets 273,275 50,818 75,200 (249,413) 149,880 Property, plant, and equipment, net 78,603 101,648 31,932 — 212,183 Goodwill 96,283 4,414 — — 100,697 Intangible assets, net 115,465 2,498 — — 117,963 Investments in and advances to subsidiaries and affiliates 128,372 — — (128,372) — Other non-current assets 3,118 3,774 10,807 — 17,699 TOTAL $ 695,116 $ 163,152 $ 117,939 $ (377,785) $ 598,422 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 15,209 $ 31,931 $ 9,312 — $ 56,452 Intercompany payable 249,407 - 6 (249,413) — Accrued payroll and compensation 4,002 5,458 1,160 — 10,620 Accrued interest payable 12,428 — — — 12,428 Accrued and other liabilities 4,183 10,060 3,328 — 17,571 Total current liabilities 285,229 47,449 13,806 (249,413) 97,071 Long term debt 323,234 — — — 323,234 Deferred and non-current income taxes 41,775 (20,736) 332 — 21,371 Other non-current liabilities 14,075 93,245 18,623 — 125,943 Stockholders' equity 30,803 43,194 85,178 (128,372) 30,803 TOTAL $ 695,116 $ 163,152 $ 117,939 $ (377,785) $ 598,422 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) Year Ended December 31, 2015 (In thousands) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Total Net sales $ 497,378 $ 299,502 $ 121,478 $ (232,784) $ 685,574 Cost of goods sold 458,225 263,381 115,624 (231,361) 605,869 Gross profit 39,153 36,121 5,854 (1,423) 79,705 Operating expenses 44,397 1,118 356 — 45,871 Impairment of goodwill — 4,414 — — 4,414 Income (loss) from operations (5,244) 30,589 5,498 (1,423) 29,420 Other income (expense): Interest expense, net (35,117) (197) 1,938 — (33,376) Equity in earnings of subsidiaries 31,131 — — (31,131) — Other income (expense), net (344) — (3,799) — (4,143) Income (loss) before income taxes from continuing operations (9,574) 30,392 3,637 (32,554) (8,099) Income tax provision (benefit) (1,940) 578 1,224 — (138) Income (loss) from continuing operations (7,634) 29,814 2,413 (32,554) (7,961) Discontinued operations, net of tax — — (103) — (103) Net income (loss) $ (7,634) $ 29,814 $ 2,310 $ (32,554) $ (8,064) Loss attributable in noncontrolling interest — — (430) — (430) Net income(loss) attributable to stockholders $ (7,634) $ 29,814 $ 2,740 $ (32,554) $ (7,634) Comprehensive income (loss) $ 24,579 $ 47,824 $ (2,890) $ (44,934) $ 24,579 Year Ended December 31, 2014 (In thousands) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Total Net sales $ 473,264 $ 313,242 $ 131,269 $ (212,597) $ 705,178 Cost of goods sold 426,969 293,644 121,939 (210,852) 631,700 Gross profit 46,295 19,598 9,330 (1,745) 73,478 Operating expenses 39,428 1,228 184 — 40,840 Income (loss) from operations 6,867 18,370 9,146 (1,745) 32,638 Other income (expense): — — — — — Interest expense, net (34,777) (226) 1,290 — (33,713) Equity in earnings of subsidiaries 23,581 — — (23,581) — Other income (expense), net (2,571) 453 (1,388) — (3,506) Income (loss) before income taxes from continuing operations (6,900) 18,597 9,048 (25,326) (4,581) Income tax provision (benefit) (4,593) 1,068 998 — (2,527) Income (loss) from continuing operations (2,307) 17,529 8,050 (25,326) (2,054) Discontinued operations, net of tax — — (253) — (253) Net income (loss) $ (2,307) $ 17,529 $ 7,797 $ (25,326) $ (2,307) Comprehensive income (loss) $ (33,233) $ (19,022) $ (2,521) $ 21,543 $ (33,233) Year Ended December 31, 2013 (In thousands) Parent Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Total Net sales $ 429,175 $ 288,220 $ 132,776 $ (207,288) $ 642,883 Cost of goods sold 403,996 277,955 123,535 (206,559) 598,927 Gross profit 25,179 10,265 9,241 (729) 43,956 Operating expenses 43,118 1,747 323 — 45,188 Income (loss) from operations (17,939) 8,518 8,918 (729) (1,232) Other income expense: — — — — — Interest expense, net (35,664) (800) 1,437 — (35,027) Equity in earnings of subsidiaries 11,786 — — (11,786) — Other income (expense), net (259) 222 (283) — (320) Income (loss) before income taxes from continuing operations (42,076) 7,940 10,072 (12,515) (36,579) Income tax provision (benefit) (3,763) (8,438) 1,957 — (10,244) Income (loss) from continuing operations (38,313) 16,378 8,115 (12,515) (26,335) Discontinued operations, net of tax — — (11,978) — (11,978) Net income (loss) $ (38,313) $ 16,378 $ (3,863) $ (12,515) $ (38,313) Comprehensive income (loss) $ (5,191) $ 32,012 $ 10,044 $ (42,056) $ (5,191) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Year Ended December 31, 2015 (In thousands) Parent Company Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Total CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ (7,634) $ 29,814 $ 2,310 $ (32,554) $ (8,064) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation 11,294 18,961 4,261 — 34,516 Amortization – deferred financing costs 2,478 — — — 2,478 Amortization – other intangible assets 8,108 168 — — 8,276 Impairment of goodwill — 4,414 — — 4,414 (Gain) loss on disposal of assets 621 (192) (53) — 376 Deferred income taxes (1,944) 435 (261) — (1,770) Non-cash stock-based compensation 2,040 — — — 2,040 Equity in earnings of subsidiaries and affiliates (32,188) — — 32,188 — Change in other operating items 52,515 (57,280) 3,813 1,423 471 Net cash provided by (used in) operating activities 35,290 (3,680) 10,070 1,057 42,737 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant, and equipment (10,734) (10,597) (1,118) — (22,449) Proceeds from notes receivable (6,963) (36,539) (39,204) 82,706 — Payment on notes receivable (11,015) 82,342 37,991 (109,318) — Other (4,315) (1,903) 4,114 — (2,104) Net cash provided by (used in) investing activities (33,027) 33,303 1,783 (26,612) (24,553) CASH FLOWS FROM FINANCING ACTIVITIES: Payment on notes payable (27,800) (101,803) — 81,603 (48,000) Proceeds from notes payable 14,830 74,770 1,880 (58,600) 32,880 Other 124 (2,590) (3,164) 2,552 (3,078) Net cash provided by (used in) financing activities (12,846) (29,623) (1,284) 25,555 (18,198) Net increase (decrease) in cash and cash equivalents (10,583) — 10,569 — (14) Cash and cash equivalents, beginning of period 22,710 — 7,063 — 29,773 Cash and cash equivalents, end of period $ 12,127 $ — $ 17,632 $ — $ 29,759 Year Ended December 31, 2014 (In thousands) Parent Company Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Total CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ (2,307) $ 17,529 $ 7,797 $ (25,326) $ (2,307) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and impairment 11,261 18,301 4,173 — 33,735 Amortization – deferred financing costs 2,479 — — — 2,479 Amortization – other intangible assets 7,970 168 — — 8,138 (Gain) loss on disposal of assets 593 (228) 27 — 392 Deferred income taxes (3,097) 925 (139) — (2,311) Non-cash stock-based compensation 2,456 — — — 2,456 Equity in earnings of subsidiaries and affiliates (24,923) — — 24,923 — Change in other operating items 57,454 (62,615) (5,309) 403 (10,067) Net cash provided by (used in) operating activities 51,886 (25,920) 6,549 — 32,515 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant, and equipment (10,151) (14,813) (681) — (25,645) Proceeds from notes receivable (628) (200,078) (39,249) 239,955 — Payment on notes receivable (19,031) 162,777 38,036 (181,782) — Other (671) 1,305 — — 634 Net cash provided by (used in) investing activities (30,481) (50,809) (1,894) 58,173 (25,011) CASH FLOWS FROM FINANCING ACTIVITIES: Payment on notes payable (147,455) (52,327) — 181,782 (18,000) Proceeds from notes payable 117,742 132,213 — (239,955) 10,000 Other — (3,157) — — (3,157) Net cash provided by (used in) financing activities (29,713) 76,729 — (58,173) (11,157) Net increase (decrease) in cash and cash equivalents (8,308) — 4,655 — (3,653) Cash and cash equivalents, beginning of period 31,018 — 2,408 — 33,426 Cash and cash equivalents, end of period $ 22,710 $ — $ 7,063 $ — $ 29,773 Year Ended December 31, 2013 (In thousands) Parent Company Guarantor Subsidiaries Non-guarantor Subsidiaries Eliminations Total CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ (38,313) $ 16,378 $ (3,863) $ (12,515) $ (38,313) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation 10,503 19,584 5,492 — 35,579 Amortization – deferred financing costs 2,684 — — — 2,684 Amortization – other intangible assets 8,583 167 — — 8,750 Loss on disposal of assets 761 176 11,150 — 12,087 Deferred income taxes (3,910) (8,438) (687) — (13,035) Non-cash stock-based compensation 2,411 — — — 2,411 Equity in earnings of subsidiaries and affiliates (12,205) — — 12,205 — Change in other operating items 77,131 (50,391) (39,139) 310 (12,089) Net cash provided by (used in) operating activities 47,645 (22,524) (27,047) — (1,926) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant, and equipment (15,283) (19,573) (3,999) — (38,855) Proceeds from notes receivable (73,047) (185,927) (39,204) 298,178 — Payments on notes receivable 29,207 187,368 37,991 (254,566) — Other 14,944 — 32,000 — 46,944 Net cash provided by (used in) investing activities (44,179) (18,132) 26,788 43,612 8,089 CASH FLOWS FROM FINANCING ACTIVITIES: Payments on notes payable (245,359) (29,207) — 254,566 (20,000) Proceeds from notes payable 250,131 73,047 — (298,178) 25,000 Other (1,333) (3,155) — — (4,488) Net cash provided by (used in) financing activities 3,439 40,685 — (43,612) 512 Net increase (decrease) in cash and cash equivalents 6,905 29 (259) — 6,675 Cash and cash equivalents, beginning of period 24,113 (29) 2,667 — 26,751 Cash and cash equivalents, end of period $ 31,018 $ — $ 2,408 $ — $ 33,426 |