EXHIBIT 13.1
Selected Financial Information included in Registrant’s 2008 Annual Report to Shareholders
Dollars in thousands, except per-share amounts
Year end December, 31 | 2008(e) | 2007 | 2006(e) (h) | 2005(e) | 2004(e) | 2003 | 2002(b) (f) | 2001 | 2000 | 1999(e) | ||||||||||||||||||||||||||||||
Operating Results: | ||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 810,207 | $ | 814,160 | $ | 689,480 | $ | 568,133 | $ | 544,767 | $ | 513,632 | $ | 433,761 | $ | 419,594 | $ | 441,828 | $ | 460,592 | ||||||||||||||||||||
Gross profit (e) | $ | 109,337 | $ | 157,669 | $ | 123,164 | $ | 86,542 | $ | 100,462 | $ | 108,206 | $ | 107,928 | $ | 114,424 | $ | 138,099 | $ | 138,959 | ||||||||||||||||||||
Gross profit margin | 13.5 | % | 19.4 | % | 17.9 | % | 15.2 | % | 18.4 | % | 21.1 | % | 24.9 | % | 27.3 | % | 31.3 | % | 30.2 | % | ||||||||||||||||||||
Selling, general and administrative expenses | $ | 88,451 | $ | 91,568 | $ | 87,566 | $ | 71,535 | $ | 68,574 | $ | 68,479 | $ | 56,631 | $ | 55,716 | $ | 61,185 | $ | 64,131 | ||||||||||||||||||||
Impairment of goodwill and other intangible assets(e) | $ | 11,890 | $ | — | $ | — | $ | 9,179 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||
Income (loss) from operations (IFO) (e) | $ | (5,548 | ) | $ | 66,101 | $ | 19,264 | $ | (8,917 | ) | $ | 23,895 | $ | 39,727 | $ | 51,297 | $ | 58,708 | $ | 76,914 | $ | 73,837 | ||||||||||||||||||
IFO margin | (0.7 | )% | 8.1 | % | 2.8 | % | (1.6 | )% | 4.4 | % | 7.7 | % | 11.8 | % | 14.0 | % | 17.4 | % | 16.0 | % | ||||||||||||||||||||
Equity earnings (loss) — pretax | $ | — | $ | — | $ | 1,986 | $ | (4,100 | ) | $ | (1,435 | ) | $ | 4,429 | $ | 6,379 | $ | 6,384 | $ | 12,016 | $ | 8,857 | ||||||||||||||||||
Other income (expense)(e) (f) | $ | 1,119 | $ | 8,778 | $ | (3,236 | ) | $ | 2,567 | $ | 2,369 | $ | 3,484 | $ | (12,740 | ) | $ | 3,500 | $ | 3,765 | $ | 4,410 | ||||||||||||||||||
Earnings (loss) before interest and income taxes after minority interest (EBIT)(e) (f) | $ | (4,429 | ) | $ | 74,879 | $ | 17,948 | $ | (10,484 | ) | $ | 24,829 | $ | 47,640 | $ | 44,936 | $ | 68,592 | $ | 92,695 | $ | 87,104 | ||||||||||||||||||
EBIT margin | (0.5 | )% | 9.2 | % | 2.6 | % | (1.8 | )% | 4.6 | % | 9.3 | % | 10.4 | % | 16.3 | % | 21.0 | % | 18.9 | % | ||||||||||||||||||||
Interest expense(h) | $ | 69,720 | $ | 65,888 | $ | 46,594 | $ | 15,255 | $ | 13,049 | $ | 13,436 | $ | 8,263 | $ | 9,360 | $ | 12,216 | $ | 12,501 | ||||||||||||||||||||
Income (loss) before income taxes(e) (f) (h) | $ | (74,149 | ) | $ | 8,991 | $ | (28,580 | ) | $ | (25,705 | ) | $ | 11,780 | $ | 34,204 | $ | 36,673 | $ | 59,232 | $ | 80,479 | $ | 74,603 | |||||||||||||||||
Provision (benefit) for income taxes | $ | 6,314 | $ | 11,298 | $ | (7,747 | ) | $ | (6,384 | ) | $ | 3,528 | $ | 5,131 | $ | 8,618 | $ | 19,840 | $ | 33,613 | $ | 31,175 | ||||||||||||||||||
Effective tax rate | (8.5 | )% | 125.7 | % | 27.1 | % | 24.8 | % | 30.0 | % | 15.0 | % | 23.5 | % | 33.5 | % | 41.8 | % | 41.8 | % | ||||||||||||||||||||
Net (loss) income(b) (e) (f) (h) | $ | (80,463 | ) | $ | (2,307 | ) | $ | (20,899 | ) | $ | (19,355 | ) | $ | 8,252 | $ | 29,073 | $ | 28,055 | $ | 39,392 | $ | 46,866 | $ | 43,428 | ||||||||||||||||
Net income margin | (9.9 | )% | (0.3 | )% | (3.0 | )% | (3.4 | )% | 1.5 | % | 5.7 | % | 6.5 | % | 9.4 | % | 10.6 | % | 9.4 | % | ||||||||||||||||||||
Per-Share Amounts: | ||||||||||||||||||||||||||||||||||||||||
Diluted net (loss) income(b) (e) (f) (h) | $ | (5.48 | ) | $ | (0.16 | ) | $ | (1.47 | ) | $ | (1.39 | ) | $ | 0.60 | $ | 2.11 | $ | 1.82 | $ | 2.53 | $ | 3.01 | $ | 2.64 | ||||||||||||||||
Dividends paid | $ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.40 | $ | 0.40 | $ | 0.40 | $ | 0.30 | $ | 0.30 | $ | 0.30 | $ | 0.30 | ||||||||||||||||||||
Other Information: | ||||||||||||||||||||||||||||||||||||||||
EBIT | $ | (4,429 | ) | $ | 74,879 | $ | 17,948 | $ | (10,484 | ) | $ | 24,829 | $ | 47,640 | $ | 44,936 | $ | 68,592 | $ | 92,695 | $ | 87,104 | ||||||||||||||||||
Depreciation & amortization(b) | $ | 44,430 | $ | 41,572 | $ | 35,556 | $ | 32,217 | $ | 29,505 | $ | 28,109 | $ | 19,143 | $ | 18,843 | $ | 18,352 | $ | 18,753 | ||||||||||||||||||||
EBITDA(c) (e) (f) | $ | 40,001 | $ | 116,451 | $ | 53,504 | $ | 21,733 | $ | 54,334 | $ | 75,749 | $ | 64,079 | $ | 87,435 | $ | 111,047 | $ | 105,857 | ||||||||||||||||||||
EBITDA margin | 4.9 | % | 14.3 | % | 7.8 | % | 3.8 | % | 10.0 | % | 14.7 | % | 14.8 | % | 20.8 | % | 25.1 | % | 23.0 | % | ||||||||||||||||||||
Employees | 7,306 | 7,442 | 7,156 | 3,563 | 3,808 | 3,838 | 3,837 | 3,218 | 3,270 | 3,552 | ||||||||||||||||||||||||||||||
Balance Sheet Data: | ||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 821,554 | $ | 899,471 | $ | 878,131 | $ | 595,784 | $ | 578,204 | $ | 551,116 | $ | 524,527 | $ | 468,082 | $ | 446,707 | $ | 434,395 | ||||||||||||||||||||
Total liabilities | $ | 879,443 | $ | 806,356 | $ | 790,281 | $ | 476,179 | $ | 434,641 | $ | 411,259 | $ | 384,309 | $ | 302,717 | $ | 313,436 | $ | 342,552 | ||||||||||||||||||||
Working capital(a) | $ | 206,886 | $ | 213,819 | $ | 200,060 | $ | 162,426 | $ | 160,265 | $ | 150,999 | $ | 133,301 | $ | 114,421 | $ | 135,837 | $ | 129,632 | ||||||||||||||||||||
% of net sales(g) | 25.5 | % | 26.3 | % | 26.2 | % | 28.6 | % | 29.4 | % | 29.4 | % | 30.7 | % | 27.3 | % | 30.7 | % | 28.1 | % | ||||||||||||||||||||
Total borrowings — net | $ | 550,257 | $ | 496,634 | $ | 491,232 | $ | 261,679 | $ | 225,372 | $ | 230,933 | $ | 191,178 | $ | 148,032 | $ | 161,404 | $ | 184,626 | ||||||||||||||||||||
Cash Flow Data: | ||||||||||||||||||||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (1,040 | ) | $ | 51,457 | $ | 54,858 | $ | 38,113 | $ | 42,750 | $ | 29,210 | $ | 55,001 | $ | 52,930 | $ | 37,423 | $ | 70,597 | |||||||||||||||||||
Capital expenditures | $ | 45,717 | $ | 43,121 | $ | 73,598 | $ | 44,270 | $ | 40,482 | $ | 25,718 | $ | 17,535 | $ | 36,863 | $ | 18,621 | $ | 11,069 |
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Year end December, 31 | 2008(e) | 2007 | 2006(e) (h) | 2005(e) | 2004(e) | 2003 | 2002(b) (f) | 2001 | 2000 | 1999(e) | ||||||||||||||||||||||||||||||
Acquisitions and related costs | $ | — | $ | — | $ | 78,434 | $ | 28,948 | $ | — | $ | — | $ | 62,046 | $ | — | $ | — | $ | — | ||||||||||||||||||||
Proceeds from asset sales and other | $ | 117 | $ | 8,213 | $ | — | $ | 212 | $ | 16,623 | $ | 897 | $ | 3,523 | $ | (1,563 | ) | $ | (63 | ) | $ | 94 | ||||||||||||||||||
Dividends received from equity investments | $ | — | $ | — | $ | — | $ | — | $ | 980 | $ | 4,900 | $ | 4,659 | $ | 4,918 | $ | 2,940 | $ | 517 | ||||||||||||||||||||
Free cash flow(d) | $ | (46,640 | ) | $ | 16,549 | $ | (97,174 | ) | $ | (34,893 | ) | $ | 19,871 | $ | 9,289 | $ | (16,398 | ) | $ | 19,422 | $ | 21,679 | $ | 60,139 | ||||||||||||||||
Shares repurchased | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 38,918 | $ | 26,837 | $ | 1,229 | $ | 4,053 | $ | 42,828 | ||||||||||||||||||||
Dividends paid | $ | 1,466 | $ | 1,446 | $ | 1,417 | $ | 5,536 | $ | 5,481 | $ | 5,506 | $ | 4,574 | $ | 4,588 | $ | 4,569 | $ | 4,821 |
(a) | Defined as net accounts receivable plus net inventory less accounts payable. | |
(b) | Effective January 1, 2002, we adopted SFAS 142, “Goodwill and Other Intangible Assets.” | |
(c) | We believe that EBITDA (earnings before interest, taxes, depreciation and amortization), a non-GAAP financial measure, is a useful metric for evaluating our financial performance, as it is a measure that we use internally to assess performance. | |
(d) | We believe that Free Cash Flow (net cash (used in) provided by operating activities, less capital expenditures and acquisition & related costs, plus proceeds from asset sales and other, and dividends received from equity investments), is a useful metric for evaluating our financial performance, as it is the measure that we use internally to assess performance. | |
(e) | Includes special charges of $45,498 and $18,492 in 2008 and 2006, respectively and is disclosed in note 9 to the Consolidated Financial Statements. We incurred $27,236 in 2005 for our capacity realignment and closure of our City of Industry, California facility, the North American salaried workforce reduction program and the Syracuse China asset impairment. We incurred $14,519 in 2004 for our capacity realignment and closure of our City of Industry, California facility. We incurred $991 in 1999 for the closure of our Canadian facility. | |
(f) | 2002, includes $13,634 of expenses related to an abandoned acquisition. | |
(g) | The 2006 calculations include Crisa pro forma net sales for 2006. | |
(h) | Interest expense includes a special charge of $4,906 in 2006 as disclosed in note 9 to the Consolidated Financial Statements. |
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