AXIALL CORPORATION AND SUBSIDIARIES |
||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||||
(Unaudited) |
||||||||||
|
|
|
|
|
|
|
||||
(In thousands, except share data) |
|
|
As of December 31, |
|||||||
Assets |
|
|
2012 |
|
|
2011 |
||||
Cash and cash equivalents |
|
|
$ |
200,314 |
|
|
|
$ |
88,575 |
|
Receivables, net of allowance for doubtful accounts of $4,533 at 2012 |
|
|
|
|
|
|
||||
and $4,225 at 2011 |
|
|
|
314,880 |
|
|
|
|
256,749 |
|
Inventories |
|
|
|
288,356 |
|
|
|
|
287,554 |
|
Prepaid expenses and other |
|
|
|
14,702 |
|
|
|
|
15,750 |
|
Deferred income taxes |
|
|
|
21,127 |
|
|
|
|
14,989 |
|
Total current assets |
|
|
|
839,379 |
|
|
|
|
663,617 |
|
Property, plant and equipment, net |
|
|
|
637,712 |
|
|
|
|
640,900 |
|
Goodwill |
|
|
|
217,215 |
|
|
|
|
213,608 |
|
Intangible assets, net |
|
|
|
43,423 |
|
|
|
|
46,715 |
|
Other assets, net |
|
|
|
63,586 |
|
|
|
|
79,371 |
|
Total assets |
|
|
$ |
1,801,315 |
|
|
|
$ |
1,644,211 |
|
|
|
|
|
|
|
|
||||
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
||||
Accounts payable |
|
|
$ |
211,224 |
|
|
|
$ |
168,187 |
|
Interest payable |
|
|
|
18,892 |
|
|
|
|
20,931 |
|
Income taxes payable |
|
|
|
15,120 |
|
|
|
|
1,202 |
|
Accrued compensation |
|
|
|
44,698 |
|
|
|
|
19,743 |
|
Other accrued liabilities |
|
|
|
61,159 |
|
|
|
|
68,825 |
|
Total current liabilities |
|
|
|
351,093 |
|
|
|
|
278,888 |
|
Long-term debt |
|
|
|
448,091 |
|
|
|
|
497,464 |
|
Lease financing obligation |
|
|
|
112,269 |
|
|
|
|
109,899 |
|
Liability for unrecognized income tax benefits |
|
|
|
18,576 |
|
|
|
|
23,711 |
|
Deferred income taxes |
|
|
|
177,914 |
|
|
|
|
181,465 |
|
Other non-current liabilities |
|
|
|
89,825 |
|
|
|
|
64,120 |
|
Total liabilities |
|
|
|
1,197,768 |
|
|
|
|
1,155,547 |
|
|
|
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Stockholders' equity: |
|
|
|
|
|
|
||||
Preferred stock - $0.01 par value; 75,000,000 shares authorized; no |
|
|
|
|
|
|
||||
shares issued |
|
|
|
- |
|
|
|
|
- |
|
Common stock - $0.01 par value; 100,000,000 shares authorized; issued and outstanding: 34,546,767 at 2012 and 34,236,402 at 2011 |
|
|
|
|
|
|
||||
|
|
|
345 |
|
|
|
|
342 |
|
|
Additional paid-in capital |
|
|
|
487,060 |
|
|
|
|
480,530 |
|
Accumulated other comprehensive loss, net of tax |
|
|
|
(21,870 |
) |
|
|
|
(18,151 |
) |
Retained earnings |
|
|
|
138,012 |
|
|
|
|
25,943 |
|
Total stockholders' equity |
|
|
|
603,547 |
|
|
|
|
488,664 |
|
Total liabilities and stockholders' equity |
|
|
$ |
1,801,315 |
|
|
|
$ |
1,644,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AXIALL CORPORATION AND SUBSIDIARIES |
|||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Three Months Ended |
|
|
|
Years Ended |
||||||||||||||
|
|
|
December 31, |
|
|
|
December 31, |
||||||||||||||
(In thousands, except per share data) |
|
|
2012 |
|
|
2011 |
|
|
|
2012 |
|
|
2011 |
||||||||
Net sales |
|
|
$ |
784,692 |
|
|
|
$ |
673,600 |
|
|
|
|
$ |
3,325,836 |
|
|
|
$ |
3,222,884 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cost of sales |
|
|
|
654,855 |
|
|
|
|
626,863 |
|
|
|
|
|
2,865,370 |
|
|
|
|
2,919,625 |
|
Selling, general and administrative expenses |
|
|
|
50,566 |
|
|
|
|
38,141 |
|
|
|
|
|
203,497 |
|
|
|
|
168,221 |
|
Long-lived asset impairment charges (recoveries), net |
|
|
|
- |
|
|
|
|
8,318 |
|
|
|
|
|
(824 |
) |
|
|
|
8,318 |
|
Transaction related costs, restructuring and other, net |
|
|
|
11,638 |
|
|
|
|
2,245 |
|
|
|
|
|
38,833 |
|
|
|
|
3,271 |
|
Gain on sale of assets |
|
|
|
- |
|
|
|
|
- |
|
|
|
|
|
(19,250 |
) |
|
|
|
(1,150 |
) |
Total operating costs and expenses |
|
|
|
717,059 |
|
|
|
|
675,567 |
|
|
|
|
|
3,087,626 |
|
|
|
|
3,098,285 |
|
Operating income (loss) |
|
|
|
67,633 |
|
|
|
|
(1,967 |
) |
|
|
|
|
238,210 |
|
|
|
|
124,599 |
|
Interest expense |
|
|
|
(13,702 |
) |
|
|
|
(15,357 |
) |
|
|
|
|
(57,517 |
) |
|
|
|
(65,645 |
) |
Loss on redemption and other debt costs |
|
|
|
(2,720 |
) |
|
|
|
(3,808 |
) |
|
|
|
|
(2,720 |
) |
|
|
|
(4,908 |
) |
Foreign exchange gain (loss) |
|
|
|
33 |
|
|
|
|
(6 |
) |
|
|
|
|
(562 |
) |
|
|
|
(786 |
) |
Interest income |
|
|
|
131 |
|
|
|
|
84 |
|
|
|
|
|
373 |
|
|
|
|
280 |
|
Income before income taxes |
|
|
|
51,375 |
|
|
|
|
(21,054 |
) |
|
|
|
|
177,784 |
|
|
|
|
53,540 |
|
Provision for (benefit from) income taxes |
|
|
|
19,082 |
|
|
|
|
(17,739 |
) |
|
|
|
|
57,223 |
|
|
|
|
(4,217 |
) |
Net Income (loss) |
|
|
$ |
32,293 |
|
|
|
$ |
(3,315 |
) |
|
|
|
$ |
120,561 |
|
|
|
$ |
57,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
$ |
0.93 |
|
|
|
$ |
(0.10 |
) |
|
|
|
$ |
3.47 |
|
|
|
$ |
1.66 |
|
Diluted |
|
|
$ |
0.92 |
|
|
|
$ |
(0.10 |
) |
|
|
|
$ |
3.45 |
|
|
|
$ |
1.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic |
|
|
|
34,577 |
|
|
|
|
34,236 |
|
|
|
|
|
34,502 |
|
|
|
|
34,086 |
|
Diluted |
|
|
|
34,982 |
|
|
|
|
34,236 |
|
|
|
|
|
34,774 |
|
|
|
|
34,122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AXIALL CORPORATION AND SUBSIDIARIES |
||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
||||||||||||||
|
|
|
December 31, |
|
|
December 31, |
||||||||||||||
(In thousands) |
|
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
||||||||
Operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
|
|
$ |
32,294 |
|
|
|
$ |
(3,315 |
) |
|
|
$ |
120,561 |
|
|
|
$ |
57,757 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
|
|
21,894 |
|
|
|
|
23,214 |
|
|
|
|
89,857 |
|
|
|
|
101,522 |
|
Loss on redemption and other debt costs |
|
|
|
2,720 |
|
|
|
|
3,808 |
|
|
|
|
2,720 |
|
|
|
|
4,908 |
|
Foreign exchange loss (gain) |
|
|
|
86 |
|
|
|
|
(120 |
) |
|
|
|
(447 |
) |
|
|
|
604 |
|
Deferred income taxes |
|
|
|
(2,167 |
) |
|
|
|
(8,137 |
) |
|
|
|
(8,463 |
) |
|
|
|
(3,762 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excess tax benefits from share-based payment arrangements |
|
|
|
553 |
|
|
|
|
- |
|
|
|
|
(2,747 |
) |
|
|
|
(1,371 |
) |
Long-lived asset impairment charges (recoveries), net |
|
|
|
- |
|
|
|
|
8,318 |
|
|
|
|
(824 |
) |
|
|
|
8,318 |
|
Stock based compensation |
|
|
|
1,404 |
|
|
|
|
1,173 |
|
|
|
|
9,073 |
|
|
|
|
6,658 |
|
Gain on sale of assets |
|
|
|
- |
|
|
|
|
- |
|
|
|
|
(19,250 |
) |
|
|
|
(1,150 |
) |
Other non-cash items |
|
|
|
4,885 |
|
|
|
|
(3,736 |
) |
|
|
|
9,453 |
|
|
|
|
(2,802 |
) |
Change in operating assets, liabilities and other, net |
|
|
|
103,873 |
|
|
|
|
141,901 |
|
|
|
|
31,313 |
|
|
|
|
16,767 |
|
Net cash provided by operating activities |
|
|
|
165,542 |
|
|
|
|
163,106 |
|
|
|
|
231,246 |
|
|
|
|
187,449 |
|
Investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures |
|
|
|
(24,519 |
) |
|
|
|
(22,134 |
) |
|
|
|
(80,338 |
) |
|
|
|
(66,382 |
) |
Proceeds from sale of assets |
|
|
|
42 |
|
|
|
|
917 |
|
|
|
|
23,621 |
|
|
|
|
1,243 |
|
Acquisition, net of cash acquired |
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
(71,371 |
) |
Net cash used in investing activities |
|
|
|
(24,477 |
) |
|
|
|
(21,217 |
) |
|
|
|
(56,717 |
) |
|
|
|
(136,510 |
) |
Financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net change in ABL revolver |
|
|
|
- |
|
|
|
|
(36,503 |
) |
|
|
|
- |
|
|
|
|
- |
|
Long-term debt payments |
|
|
|
(51,500 |
) |
|
|
|
(62,136 |
) |
|
|
|
(51,500 |
) |
|
|
|
(85,057 |
) |
Fees paid related to financing activities |
|
|
|
(889 |
) |
|
|
|
(531 |
) |
|
|
|
(1,514 |
) |
|
|
|
(2,011 |
) |
Excess tax benefits from share-based payment arrangements |
|
|
|
(553 |
) |
|
|
|
- |
|
|
|
|
2,747 |
|
|
|
|
1,371 |
|
Dividends paid |
|
|
|
(5,540 |
) |
|
|
|
- |
|
|
|
|
(8,318 |
) |
|
|
|
- |
|
Stock compensation plan activity |
|
|
|
(137 |
) |
|
|
|
- |
|
|
|
|
(5,232 |
) |
|
|
|
39 |
|
Net cash used in financing activities |
|
|
|
(58,619 |
) |
|
|
|
(99,170 |
) |
|
|
|
(63,817 |
) |
|
|
|
(85,658 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
|
|
(601 |
) |
|
|
|
546 |
|
|
|
|
1,027 |
|
|
|
|
536 |
|
Net change in cash and cash equivalents |
|
|
|
81,845 |
|
|
|
|
43,265 |
|
|
|
|
111,739 |
|
|
|
|
(34,183 |
) |
Cash and cash equivalents at beginning of year |
|
|
|
118,469 |
|
|
|
|
45,310 |
|
|
|
|
88,575 |
|
|
|
|
122,758 |
|
Cash and cash equivalents at end of year |
|
|
$ |
200,314 |
|
|
|
$ |
88,575 |
|
|
|
$ |
200,314 |
|
|
|
$ |
88,575 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AXIALL CORPORATION AND SUBSIDIARIES |
|
||||||||||||||||||||||||||
SEGMENT INFORMATION |
|
||||||||||||||||||||||||||
(Unaudited) |
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
Three Months Ended |
|
|
|
For the Twelve Months Ended |
|
|||||||||||||||||
|
|
|
|
|
December 31, |
|
|
|
December 31, |
|
|||||||||||||||||
(In thousands) |
|
|
2012 |
|
|
|
2011 |
|
|
|
2012 |
|
2011 |
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Segment net sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Chlorovinyls |
|
|
$ |
346,433 |
|
|
|
|
$ |
321,501 |
|
|
|
|
$ |
1,344,908 |
|
|
$ |
1,318,678 |
|
|
||||
|
Building Products |
|
|
|
190,812 |
|
|
|
|
|
189,704 |
|
|
|
|
|
876,638 |
|
|
|
883,899 |
|
|
||||
|
Aromatics |
|
|
|
247,447 |
|
|
|
|
|
162,395 |
|
|
|
|
|
1,104,290 |
|
|
|
1,020,307 |
|
|
||||
Net Sales |
|
|
|
$ |
784,692 |
|
|
|
|
$ |
673,600 |
|
|
|
|
$ |
3,325,836 |
|
|
$ |
3,222,884 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Segment operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Chlorovinyls |
|
|
$ |
77,046 |
|
|
|
|
$ |
21,477 |
|
|
|
|
$ |
237,214 |
|
4) |
|
$ |
143,304 |
|
7) |
|||
|
Building Products |
|
|
|
(5,269 |
) |
1) |
|
|
|
|
(11,638 |
) |
3) |
|
|
|
|
18,447 |
|
5) |
|
|
7,500 |
|
8) |
|
|
Aromatics |
|
|
|
18,331 |
|
|
|
|
|
(3,653 |
) |
|
|
|
|
64,569 |
|
|
|
10,370 |
|
|
||||
|
Unallocated corporate |
|
|
|
(22,475 |
) |
2) |
|
|
|
|
(8,153 |
) |
|
|
|
|
(82,020 |
) |
6) |
|
|
(36,575 |
) |
|
||
Total operating income (loss) |
|
|
$ |
67,633 |
|
|
|
|
$ |
(1,967 |
) |
|
|
|
$ |
238,210 |
|
|
$ |
124,599 |
|
|
1) |
|
Includes $1.0 million of restructuring costs. |
2) |
|
Includes $10.7 million of transaction related costs. |
3) |
|
Includes $2.4 million of restructuring costs and $8.3 million of asset impairment charges. |
4) |
|
Includes $19.3 million gain on sale of assets, offset by $1.3 million of restructuring costs. |
5) |
|
Includes $1.5 million of restructuring costs, offset by $0.8 million of long-lived asset impairment recoveries. |
6) |
|
Includes $35.8 million of transaction related costs. |
7) |
|
Includes $1.2 million gain related to the sale of assets. |
8) |
|
Includes $2.7 million of restructuring costs, $8.3 million of asset impairment charges, $3.0 million of related costs and inventory purchase accounting adjustments, partially offset by $3.6 million reversal of non-income tax reserve. |
Source: Axiall Corporation
Axiall Corporation
Investor Relations
Martin Jarosick, 770-395-4524
or
Media
Alan Chapple, 770-395-4538