EXHIBIT 99.2
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The following unaudited pro forma financial information as of and for the
year ended December 31, 2001 has been derived form our audited consolidated
financial statements as of such date and for such period and gives pro forma
effect to (1) the Dispositions and the Transactions as if they had been
consummated as of January 1, 2001, in the case of statement of operations and
other operating data; and (2) the Tax Refunds and the Transactions as if they
had been consummated as of December 31, 2001, in the case of balance sheet data.
See "Terms Used in this Offering Memorandum," "The Acquisition," "Use of
Proceeds" and "Management's Discussion and Analysis of Financial Condition and
Results of Operations--General--Alltrista Divestitures."
The unaudited pro forma financial information is not necessarily indicative
of our results of operations or financial position had the events reflected
herein actually been consummated at the assumed dates, nor is it necessarily
indicative of our results of operations or financial position for any future
period. The unaudited pro forma financial information should be read in
conjunction with the consolidated financial statements, including the related
notes, included elsewhere in this offering memorandum.
The pro forma adjustments related to the purchase price allocation and
financing of the Acquisition are preliminary and based on information obtained
to date and are subject to revision as additional information becomes available.
Revisions to the preliminary purchase price allocation and financing of the
Acquisition may have a significant impact on the unaudited pro forma
information.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
AS OF DECEMBER 31, 2001
DISPOSITIONS-
RELATED
ALLTRISTA PRO FORMA
AS REPORTED ADJUSTMENTS
------------- ---------------------
(DOLLARS IN THOUSANDS)
ASSETS
Current assets
Cash and cash equivalents ................. $ 6,376
Accounts receivable, net .................. 13,986
Income taxes receivable ................... 16,252 $ (15,700)(a)
Inventories, net .......................... 26,994
Deferred taxes on income .................. 4,832 (4,832)(a)
Other current assets ...................... 3,134
--------- -----------
Total current assets ..................... 71,574 (20,532)
--------- -----------
Property, plant and equipment, net ......... 43,543
Goodwill, net .............................. 15,487
Deferred taxes on income ................... 25,417 (17,968)(a)
Other assets ............................... 5,282
--------- -----------
Total assets ............................... $ 161,303 $ (38,500)
========= ===========
LIABILITIES AND EQUITY
Current liabilities
Short-term and current portion of
long-term debt ........................... $ 28,500 $ (23,500)(a)
Accounts payable .......................... 14,197
Other current liabilities ................. 20,842
--------- -----------
Total current liabilities ................ 63,539 (23,500)
--------- -----------
Noncurrent liabilities
Long-term debt ............................ 56,375 (15,000)(a)
Other noncurrent liabilities .............. 6,260
--------- -----------
Total noncurrent liabilities ............. 62,635 (15,000)
Equity ..................................... 35,129
--------- -----------
Total liabilities and equity ............... $ 161,303 $ (38,500)
========= ===========
ACQUISITION-
RELATED
ALLTRISTA TILIA PRO FORMA PRO FORMA
PRO FORMA AS REPORTED ADJUSTMENTS COMBINED
----------- ------------- ------------------- ------------
(DOLLARS IN THOUSANDS)
ASSETS
Current assets
Cash and cash equivalents ................. $ 6,376 $ 18,915 $ (1,875)(b) $ 23,416
Accounts receivable, net .................. 13,986 22,982 36,968
Income taxes receivable ................... 552 -- 552
Inventories, net .......................... 26,994 24,453 51,447
Deferred taxes on income .................. -- 5,632 5,632
Other current assets ...................... 3,134 1,888 5,022
--------- ---------- ----------- ---------
Total current assets ..................... 51,042 73,870 (1,875) 123,037
--------- ---------- ----------- ---------
Property, plant and equipment, net ......... 43,543 3,267 46,810
Goodwill, net .............................. 15,487 -- 100,935(c) 116,422
Deferred taxes on income ................... 7,449 122 7,571
Other assets ............................... 5,282 1,146 12,000(d) 18,214
(214)(e)
--------- ---------- ----------- ---------
Total assets ............................... $ 122,803 $ 78,405 $ 110,846 $ 312,054
========= ========== ============ =========
LIABILITIES AND EQUITY
Current liabilities
Short-term and current portion of
long-term debt ........................... $ 5,000 $ -- $ (5,000)(f) $ --
Accounts payable .......................... 14,197 3,535 17,732
Other current liabilities ................. 20,842 17,305 38,147
--------- ---------- ----------- ---------
Total current liabilities ................ 40,039 20,840 (5,000) 55,879
--------- ---------- ----------- ---------
Noncurrent liabilities
Long-term debt ............................ 41,375 -- (41,375)(f) 215,000
50,000 (g)
15,000 (h)
150,000 (i)
Other noncurrent liabilities .............. 6,260 -- 6,260
--------- ---------- ----------- ---------
Total noncurrent liabilities ............. 47,635 -- 173,625 221,260
Equity ..................................... 35,129 57,565 (57,565)(j) 34,915
(214)(e)
--------- ---------- ------------ ---------
Total liabilities and equity ............... $ 122,803 $ 78,405 $ 110,846 $ 312,054
========= ========== ============ =========
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
AND OTHER OPERATING DATA
YEAR ENDED DECEMBER 31, 2001
DISPOSITIONS-
RELATED
ALLTRISTA PRO FORMA
AS REPORTED ADJUSTMENTS
------------- ---------------------
(DOLLARS IN THOUSANDS, EXCEPT PER
SHARE AMOUNTS)
Net sales ........................................ $ 304,978 $ (62,588)(k)
(711)(l)
Costs and expenses
Cost of sales ................................... 233,676 (60,901)(k)
Selling, general and administrative expenses..... 52,212 (9,061)(k)
(1,670)(l)
Goodwill amortization ........................... 5,153 (4,044)(k)
Special charges (credits) and reorganization
expenses ....................................... 4,978 345(k)
Loss on divestitures of assets .................. 122,887 (122,426)(m)
---------- -------------
Income (loss) before interest, taxes and
minority interest ............................... (113,928) 134,458
Interest expense, net ............................ 11,791 (3,602)(n)
---------- -------------
Income (loss) before taxes and minority
interest ........................................ (125,719) 138,060
Income tax provision (benefit) ................... (40,443) 44,352(o)
Minority interest in loss of consolidated
subsidiary ...................................... 153 (153)(p)
---------- -------------
Net income (loss) ................................ $ (85,429) $ 93,861
========== =============
Basic earnings (loss) per share .................. $ (13.43)
Diluted earnings (loss) per share ................ (13.43)
Weighted average shares outstanding:
Basic ........................................... 6,363
Diluted ......................................... 6,363
Other Data:
EBITDA(u) ....................................... $ 32,734 $ 3,564
Depreciation and amortization ................... 18,797 8,813
Capital expenditures ............................ 9,707 3,000
ACQUISITION-
RELATED
ALLTRISTA TILIA PRO FORMA PRO FORMA
PRO FORMA AS REPORTED ADJUSTMENTS COMBINED
-------------- ------------- ------------------- --------------
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Net sales ........................................ $ 241,679 $ 183,825 $ 425,504
Costs and expenses
Cost of sales ................................... 172,775 89,668 262,443
Selling, general and administrative expenses..... 41,481 61,718 $ 1,000(q) 104,199
Goodwill amortization ........................... 1,109 -- 1,109
Special charges (credits) and reorganization
expenses ....................................... 5,323 803 6,126
Loss on divestitures of assets .................. 461 -- 461
---------- --------- ------------- ----------
Income (loss) before income taxes and
minority interest ............................... 20,530 31,636 (1,000) 51,166
Interest expense, net ............................ 8,189 344 (8,189)(r) 19,619
18,375(s)
900(t)
---------- --------- ------------- ----------
Income (loss) before taxes and minority
interest ........................................ 12,341 31,292 (12,086) 31,547
Income tax provision (benefit) ................... 3,909 8,513 (1,381)(o) 11,041
Minority interest in loss of consolidated
subsidiary ...................................... -- -- --
---------- --------- ------------ ----------
Net income (loss) ................................ $ 8,432 $ 22,779 $ (10,705) $ 20,506
========== ========= ============ ==========
Basic earnings (loss) per share .................. $ 1.33 $ 3.22
Diluted earnings (loss) per share ................ 1.32 3.22
Weighted average shares outstanding:
Basic ........................................... 6,363 6,363
Diluted ......................................... 6,377 6,377
Other Data:
EBITDA(u) ....................................... $ 36,298 $ 34,051 $ -- $ 70,349
Depreciation and amortization ................... 9,984 1,612 1,000 12,596
Capital expenditures ............................ 6,707 1,984 -- 8,691
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2001
Balance sheet adjustments:
(a) Adjustment to reflect the use of the Tax Refunds to repay existing
debt, thereby reducing income taxes receivable and deferred tax
assets.
(b) Adjustment to reflect the use of cash on hand to fund a portion of the
purchase price of Tilia.
(c) Adjustment to reflect estimated goodwill to be recorded with the
Acquisition calculated as the purchase price plus related expenses
($163.5 million) related to the Acquisition less the net equity of
Tilia and amounts allocated to specifically identifiable intangible
assets ($5.0 million).
(d) Adjustment to reflect the following:
(i) estimated fair value of Tilia's identifiable intangible assets
(primarily patents) of $5.0 million to be amortized over an
average five-year life;
(ii) estimated expenses of this offering of $5.0 million to be
amortized over the ten-year term of the Senior Subordinated Notes
due 2012; and
(iii)estimated expenses of the new senior credit facility of $2.0
million to be amortized over the five-year term.
(e) Adjustment to reflect the write-off of remaining debt issue costs
relating to Alltrista's existing senior credit facility.
(f) Adjustment to reflect the repayment of Alltrista's existing credit
facility in conjunction with the Transactions.
(g) Adjustment to reflect the initial borrowing under the new senior
credit facility in conjunction with the Transactions.
(h) Adjustment to reflect the subordinated seller notes to be issued in
conjunction with the Transactions:
(i) $10.0 million non-interest bearing note due March 31, 2003, and
(ii) $5.0 million note due June 30, 2005.
(i) Adjustment to reflect the issuance of the Senior Subordinated Notes
due 2012.
(j) Adjustment to reflect the elimination of the existing stockholders'
equity of Tilia.
Statement of operations adjustments:
(k) Adjustment to reflect the elimination of the operating results of the
TPD Assets.
(l) Adjustment to reflect the elimination of the operating results of
Microlin, LLC.
(m) Adjustment to reflect the elimination of the loss on the Dispositions.
(n) Adjustment to reflect the elimination of interest expense related to
the debt repayment resulting from the Tax Refunds.
(o) Adjustment to reflect an effective tax rate of 35.0%.
(p) Adjustment to reflect the elimination of the minority interest's share
in the loss of Microlin, LLC.
(q) Adjustment to reflect the amortization of estimated identifiable
intangible assets. See note (d)(i) above.
(r) Adjustment to reflect the elimination of historical Alltrista interest
expense in conjunction with the Transactions.
(s) Adjustment to reflect pro forma interest expense relating to:
(i) the new senior credit facility based upon Alltrista's 2001
effective borrowing rate;
(ii) the interest bearing subordinated seller note described in note
(g)(ii) above based upon Alltrista's 2001 effective borrowing
rate; and
(iii) the Senior Subordinated Notes due 2012.
(t) Adjustment to reflect amortization of debt issue costs for both the
new senior credit facility and the Senior Subordinated Notes due 2012.
See note (d) above.
(u) "EBITDA" is calculated as income (loss) before interest, taxes and
minority interest plus (i) depreciation and amortization, (ii) special
charges (credits) and reorganization expenses and (iii) loss (gain) on
divestiture of assets and product lines. EBITDA is not intended to
represent cash flow from operations as defined by accounting
principles generally accepted in the United States and should not be
used as an alternative to net income as an indicator of operating
performance or to cash flow as a measure of liquidity. EBITDA is
included in this offering memorandum because it is a basis upon which
our management assesses financial performance. While EBITDA is
frequently used as a measure of operations and the ability to meet
debt service requirements, it is not necessarily comparable to other
similarly titled captions of other companies due to potential
inconsistencies in the method of calculation.