SECURITIES AND EXCHANGE COMMISSION
Form 10-Q
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(Mark One)
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þ
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QUARTERLY REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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| FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 27, 2002 | ||
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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| FOR THE TRANSITION PERIOD FROM TO . | ||
Commission file number 333-62227
AMERICAN COMMERCIAL LINES LLC
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Delaware
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52-2106600 | |
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(State or Other Jurisdiction of Incorporation or Organization) |
(IRS Employer Identification No.) |
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| 1701 East Market Street | ||
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Jeffersonville, Indiana
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47130 | |
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(Address of Principal Executive
Offices)
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(Zip Code) | |
(812) 288-0100
Not Applicable
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o
As of October 31, 2002 the registrant had 100 membership interests outstanding.
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements
AMERICAN COMMERCIAL LINES LLC
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
| Quarters Ended | ||||||||||
| September 27, | September 28, | |||||||||
| 2002 | 2001 | |||||||||
| (Unaudited) | ||||||||||
| (Dollars in thousands) | ||||||||||
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OPERATING REVENUE
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$ | 179,657 | $ | 207,341 | ||||||
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OPERATING EXPENSE
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Materials, Supplies and Other
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78,495 | 87,667 | ||||||||
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Restructuring Cost
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83 | — | ||||||||
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Rent
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13,150 | 14,249 | ||||||||
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Labor and Fringe Benefits
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42,597 | 41,807 | ||||||||
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Fuel
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19,936 | 23,915 | ||||||||
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Depreciation and Amortization
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15,866 | 14,107 | ||||||||
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Gain on Property Dispositions, Net
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— | (5,032 | ) | |||||||
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Taxes, Other Than Income Taxes
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6,398 | 6,464 | ||||||||
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Total Operating Expenses
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176,525 | 183,177 | ||||||||
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OPERATING INCOME
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3,132 | 24,164 | ||||||||
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OTHER EXPENSE
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Interest Expense
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14,915 | 16,959 | ||||||||
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Other, Net
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730 | 1,912 | ||||||||
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Total Other Expense
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15,645 | 18,871 | ||||||||
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(LOSS) INCOME BEFORE INCOME TAXES
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(12,513 | ) | 5,293 | |||||||
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INCOME TAXES
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129 | 89 | ||||||||
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NET (LOSS) INCOME
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$ | (12,642 | ) | $ | 5,204 | |||||
The accompanying notes are an integral part of the consolidated financial statements.
1
AMERICAN COMMERCIAL LINES LLC
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
| December 29, | ||||||||||||||
| May 29 to | 2001 | Nine Months Ended | ||||||||||||
| September 27, | to May 28, | September 28, | ||||||||||||
| 2002 | 2002 | 2001 | ||||||||||||
| (Unaudited) | ||||||||||||||
| (Dollars in thousands) | ||||||||||||||
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OPERATING REVENUE
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$ | 235,651 | $ | 284,805 | $ | 573,323 | ||||||||
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OPERATING EXPENSE
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Materials, Supplies and Other
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101,994 | 138,092 | 258,672 | |||||||||||
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Restructuring Cost
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83 | 13,493 | — | |||||||||||
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Rent
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17,525 | 23,121 | 42,765 | |||||||||||
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Labor and Fringe Benefits
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54,578 | 65,760 | 123,130 | |||||||||||
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Fuel
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26,844 | 30,434 | 71,606 | |||||||||||
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Depreciation and Amortization
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21,497 | 21,824 | 42,473 | |||||||||||
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Gain on Property Dispositions, Net
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— | (455 | ) | (16,106 | ) | |||||||||
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Taxes, Other Than Income Taxes
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8,672 | 10,926 | 19,859 | |||||||||||
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Total Operating Expenses
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231,193 | 303,195 | 542,399 | |||||||||||
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OPERATING INCOME (LOSS)
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4,458 | (18,390 | ) | 30,924 | ||||||||||
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OTHER EXPENSE
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Interest Expense
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19,533 | 25,712 | 55,039 | |||||||||||
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Other, Net
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1,098 | 827 | 399 | |||||||||||
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Total Other Expense
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20,631 | 26,539 | 55,438 | |||||||||||
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LOSS BEFORE INCOME TAXES, EXTRAORDINARY ITEM AND
CUMULATIVE EFFECT OF ACCOUNTING CHANGE
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(16,173 | ) | (44,929 | ) | (24,514 | ) | ||||||||
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INCOME TAXES (BENEFIT)
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165 | (919 | ) | 351 | ||||||||||
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LOSS BEFORE EXTRAORDINARY ITEM AND CUMULATIVE
EFFECT OF ACCOUNTING CHANGE
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(16,338 | ) | (44,010 | ) | (24,865 | ) | ||||||||
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EXTRAORDINARY ITEM — GAIN ON EARLY
EXTINGUISHMENT OF DEBT
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— | — | 1,885 | |||||||||||
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CUMULATIVE EFFECT OF ACCOUNTING CHANGE
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— | — | (490 | ) | ||||||||||
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NET LOSS
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$ | (16,338 | ) | $ | (44,010 | ) | $ | (23,470 | ) | |||||
The accompanying notes are an integral part of the consolidated financial statements.
2
AMERICAN COMMERCIAL LINES LLC
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
| May 29 to | December 29, | Nine Months Ended | ||||||||||||||
| September 27, | 2001 to May 28, | September 28, | ||||||||||||||
| 2002 | 2002 | 2001 | ||||||||||||||
| (Unaudited) | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||
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OPERATING ACTIVITIES
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Net Loss
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$ | (16,338 | ) | $ | (44,010 | ) | $ | (23,470 | ) | |||||||
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Adjustments to Reconcile Net Loss to Net Cash
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Provided by (Used in) Operating Activities:
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Depreciation and Amortization
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21,497 | 21,824 | 42,473 | |||||||||||||
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Interest Accretion and Debt Issuance Cost
Amortization
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1,680 | 1,245 | 3,284 | |||||||||||||
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Gain on Property Dispositions
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— | (455 | ) | (16,106 | ) | |||||||||||
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Other Operating Activities
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1,157 | (5,422 | ) | (1,147 | ) | |||||||||||
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Changes in Operating Assets and Liabilities:
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Accounts Receivable
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(6,681 | ) | (3,240 | ) | (13,291 | ) | ||||||||||
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Materials and Supplies
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(5,621 | ) | (5,160 | ) | (3,840 | ) | ||||||||||
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Accrued Interest
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9,562 | 10,332 | (7,471 | ) | ||||||||||||
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Other Current Assets
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5,297 | (3,149 | ) | (4,214 | ) | |||||||||||
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Other Current Liabilities
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(3,795 | ) | 8,357 | 22,845 | ||||||||||||
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Net Cash Provided by (Used in) Operating
Activities
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6,758 | (19,678 | ) | (937 | ) | |||||||||||
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INVESTING ACTIVITIES
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Property Additions
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(5,998 | ) | (5,605 | ) | (13,025 | ) | ||||||||||
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Proceeds from Property Dispositions
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643 | 988 | 22,911 | |||||||||||||
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Net Change in Restricted Cash
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(104 | ) | — | — | ||||||||||||
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Proceeds from Sale of Terminals
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— | — | 8,241 | |||||||||||||
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Other Investing Activities
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(1,749 | ) | (2,859 | ) | (7,933 | ) | ||||||||||
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Net Cash (Used in) Provided by Investing
Activities
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(7,208 | ) | (7,476 | ) | 10,194 | |||||||||||
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FINANCING ACTIVITIES
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Danielson Holding Corporation Investment
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— | 25,000 | — | |||||||||||||
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Short-Term Borrowings
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5,000 | — | 8,250 | |||||||||||||
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Long-Term Debt Repaid
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(8,040 | ) | (25,190 | ) | (40,709 | ) | ||||||||||
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Bank Overdrafts
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(1,442 | ) | 1,149 | (6,672 | ) | |||||||||||
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Debt Costs
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— | — | (3,462 | ) | ||||||||||||
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Other Financing Activities
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(928 | ) | (173 | ) | 102 | |||||||||||
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Net Cash (Used in) Provided by Financing
Activities
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(5,410 | ) | 786 | (42,491 | ) | |||||||||||
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Net Decrease in Cash and Cash Equivalents
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(5,860 | ) | (26,368 | ) | (33,234 | ) | ||||||||||
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Cash and Cash Equivalents at Beginning of Period
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20,885 | 47,253 | 59,568 | |||||||||||||
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Cash and Cash Equivalents at End of Period
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$ | 15,025 | $ | 20,885 | $ | 26,334 | ||||||||||
The accompanying notes are an integral part of the consolidated financial statements.
3
AMERICAN COMMERCIAL LINES LLC
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| September 27, | December 28, | |||||||||
| 2002 | 2001 | |||||||||
| (Unaudited) | ||||||||||
| (Dollars in thousands) | ||||||||||
| ASSETS | ||||||||||
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CURRENT ASSETS
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Cash and Cash Equivalents
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$ | 15,025 | $ | 47,253 | ||||||
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Cash, Restricted
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6,668 | — | ||||||||
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Accounts Receivable, Net
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49,946 | 54,785 | ||||||||
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Materials and Supplies
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42,116 | 31,335 | ||||||||
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Other Current Assets
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26,877 | 29,633 | ||||||||
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Total Current Assets
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140,632 | 163,006 | ||||||||
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PROPERTIES — Net
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599,672 | 464,133 | ||||||||
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PENSION ASSETS
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21,407 | 26,067 | ||||||||
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OTHER ASSETS
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77,164 | 104,730 | ||||||||
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Total Assets
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$ | 838,875 | $ | 757,936 | ||||||
| LIABILITIES | ||||||||||
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CURRENT LIABILITIES
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Accounts Payable
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$ | 29,501 | $ | 29,737 | ||||||
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Accrued Payroll and Fringe Benefits
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14,969 | 17,206 | ||||||||
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Deferred Revenue
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13,618 | 11,890 | ||||||||
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Accrued Claims and Insurance Premiums
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26,961 | 24,200 | ||||||||
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Accrued Interest
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10,584 | 18,659 | ||||||||
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Short-Term Debt
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39,000 | 84,000 | ||||||||
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Current Portion of Long-Term Debt
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574,604 | 608,519 | ||||||||
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Other Current Liabilities
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39,353 | 50,469 | ||||||||
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Total Current Liabilities
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748,590 | 844,680 | ||||||||
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LONG-TERM DEBT
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— | — | ||||||||
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PENSION LIABILITY
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— | 18,907 | ||||||||
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OTHER LONG-TERM LIABILITIES
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21,627 | 42,368 | ||||||||
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Total Liabilities
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770,217 | 905,955 | ||||||||
| MEMBER’S EQUITY (DEFICIT) | ||||||||||
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Member’s Interest
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85,025 | 220,074 | ||||||||
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Other Capital
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1,695 | 166,580 | ||||||||
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Unearned Compensation
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(1,507 | ) | — | |||||||
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Retained Deficit
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(16,338 | ) | (532,816 | ) | ||||||
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Accumulated Other Comprehensive Loss
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(217 | ) | (1,857 | ) | ||||||
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Total Member’s Equity (Deficit)
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68,658 | (148,019 | ) | |||||||
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Total Liabilities and Member’s Equity
(Deficit)
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$ | 838,875 | $ | 757,936 | ||||||
The accompanying notes are an integral part of the consolidated financial statements.
4
AMERICAN COMMERCIAL LINES LLC
CONDENSED CONSOLIDATED STATEMENT OF MEMBER’S EQUITY (DEFICIT)
| Accumulated | ||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||
| Member’s | Other | Unearned | Retained | Comprehensive | ||||||||||||||||||||||
| Interest | Capital | Compensation | Deficit | Income (Loss) | Total | |||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||
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Balance at December 28, 2001
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$ | 220,074 | $ | 166,580 | $ | — | $ | (532,816 | ) | $ | (1,857 | ) | $ | (148,019 | ) | |||||||||||
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Comprehensive Loss:
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Net loss
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— | — | — | |||||||||||||||||||||||