SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 12b-25
Commission File Number 333-58233
NOTIFICATION OF LATE FILING
(Check One): (X) Form 10-Q
For Period Ended: September 30, 2002
Nothing in this form shall be construed to imply that the
Commission has verified any information contained herein.
PART I
REGISTRANT INFORMATION
Full name of registrant DIAMOND BRANDS INCORPORATED
Address of principal executive office (Street and number) 1800 CLOQUET AVENUE
City, State and Zip Code CLOQUET, MINNESOTA 55720
PART II
RULE 12b-25 (b) AND (c)
If the subject report could not be filed without unreasonable
effort or expense and the registrant seeks relief pursuant to Rule
12b-25(b), the following should be completed. (Check box if appropriate.)
{ (a) The reasons described in reasonable detail in
{ Part III of this form could not be eliminated
{ without unreasonable effort or expense;
{ (b) The subject annual report, semi-annual report,
{ transition report on Form 10-K, 20-F, 11-K, or
{ Form N-SAR, or portion thereof will be filed on
( ) { or before the 15th calendar day following the
{ prescribed due date; or the subject quarterly
{ report or transition report on Form 10-Q, or
{ portion thereof will be filed on or before the
{ fifth calendar day following the prescribed due
{ date; and
{ (c) The accountant's statement or other exhibit
{ required by Rule 12b-25(c) has been attached if
{ applicable.
PART III
NARRATIVE
State below in reasonable detail the reasons why Form 10-K, 11-K,
20-F, 10-Q, N-SAR or the transition report portion thereof could not be
filed within the prescribed time period. (Attach extra sheets if needed)
Diamond Brands Operating Corp. (the "Operating Company"), Diamond
Brands Incorporated ("DBI"), the holding company for the Operating Company,
and certain of their direct and indirect subsidiaries (collectively,
"Diamond Brands") filed voluntary petitions seeking protection under
Chapter 11 of the United States Bankruptcy Code in the United States
Bankruptcy Court for the District of Delaware on May 22, 2001. Upon DBI's
exit from the Chapter 11 process, DBI expects to have undergone such
changes (including to its capital structure) as to require changes in its
quarterly report on Form 10-Q in order for such report to be accurate. In
light of these circumstances, DBI has been unable to prepare financial
statements for its quarterly report on Form 10-Q for the period ended
September 30, 2002.
While a plan of reorganization has not been finalized, any return
to the holders of the senior discount debentures of DBI and the senior
subordinated notes of DBOC is highly speculative.
PART IV
OTHER INFORMATION
(1) Name and telephone number of person to contact in regard to
this notification
William L. Olson (218) 879-6700
(Name) (Area Code) (Telephone Number)
(2) Have all other periodic reports required under Section 13 or
15(d) of the Securities Exchange Act of 1934 or Section 30 of the
Investment Company Act of 1940 during the preceding 12 months or for such
shorter period that the registrant was required to file such report(s) been
filed? If the answer is no, identify report(s)
( ) Yes (X ) No
DBI has not filed its annual report on Form 10-K for the period
ended December 31, 2000, its quarterly report on Form 10-Q for the period
ended March 31, 2001, its quarterly report on Form 10-Q for the period
ended June 30, 2001, its quarterly report on Form 10-Q for the period ended
September 30, 2001, its annual report on Form 10-K for the period ended
December 31, 2001, its quarterly report on Form 10-Q for the period ended
March 31, 2002 and its quarterly report on Form 10-Q for the period ended
June 30, 2002.
(3) Is it anticipated that any significant change in results of
operations from the corresponding period for the last fiscal year will be
reflected by the earnings statements to be included in the subject report
or portion thereof?
(X) Yes ( ) No
The following estimates are based on our financial statements,
which have not been finalized. DBI's consolidated net sales for the three
and nine month periods ended September 30, 2002, were approximately $23.6
million and $74.2 million, respectively, an increase of approximately .08%
from the comparable 2001 three month period and a decrease of approximately
..1% from the comparable 2001 nine month period. Operating income for the
three and nine month periods ended September 30, 2002, was approximately
$3.4 million and $11.3 million, respectively, compared to operating income
of $3.1 million and $8.3 million in the comparable 2001 three and nine
month periods. Restructuring expenses charged to operating income for the
three and nine month periods ended September 30, 2002, were approximately
$.7 million and $2.2 million, respectively, compared to restructuring
expenses of $1.3 million and $3.8 million for the comparable 2001 three and
nine month periods. These results reflect trends similar to those seen in
DBI's second fiscal quarter ended June 30, 2002.
DBI's consolidated interest expense for the three and nine month
periods ended September 30, 2002, was approximately $6.7 million and $18.7
million, respectively, compared to $6.0 million and $18.6 million in the
comparable 2001 three and nine month periods. Current accounting practices
dictate that post petition interest that will not be paid should not be
included in interest expense. Of the above interest expense for the three
and nine month periods ended September 30, 2002, post-petition interest of
approximately $4.0 million and $12.0 million, respectively, is included. Of
the above interest expense for the three and nine month periods ended
September 30, 2001, post-petition interest of approximately $3.9 million
and $5.5 million, respectively, is included.
DIAMOND BRANDS INCORPORATED
(Name of Registrant as Specified in Charter)
Has caused this notification to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: November 14, 2002 By: /s/ William L. Olson
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Name: William L. Olson
Title: Vice President of Finance