[X] |
Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended: September 29, 2002
|
[ ] |
Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from:
to
|
| Delaware |
36-2556469 | |
| (State or other jurisdiction |
(I.R.S. Employer | |
| of incorporation) |
Identification No.) |
| 825 East Wisconsin Avenue |
||
| Appleton, Wisconsin |
54912-0359 | |
| (Address of principal executive offices) |
(Zip Code) |
| Exact name of Registrant as specified in its charter |
State or other jurisdiction
of incorporation or organization |
Number of Shares
Outstanding as of September 29, 2002 |
I.R.S. Employer Identification Number |
Address, including zip code, and telephone number, including area code, of Registrants principal executive office |
Registration No. | |||||
| Paperweight Development Corp. |
Wisconsin |
11,602,845 |
39-2014992 |
825 East Wisconsin Avenue, Appleton, Wisconsin 54912-0359 (920) 734-9841 |
333-82084-01 | |||||
| WTA Inc. |
Delaware |
1 |
51-0329653 |
c/o Delaware Corporate Management, Inc. Suite 1300 1105 North Market Street
Wilmington, Delaware 19899 (302) 651-8339 |
333-82084-02 | |||||
| Page Number | ||||||
| PART I |
FINANCIAL INFORMATION |
|||||
| Item 1 |
Financial Statements (unaudited) |
|||||
| 1 | ||||||
| 2 | ||||||
| 3 | ||||||
| 4 | ||||||
| Item 2 |
25 | |||||
| Item 3 |
32 | |||||
| Item 4 |
32 | |||||
| PART II |
OTHER INFORMATION |
|||||
| Item 2 |
33 | |||||
| Item 6 |
33 | |||||
| 35 | ||||||
| September 29, 2002 |
December 29, 2001 | |||||
| (unaudited) |
||||||
| ASSETS |
||||||
| Current assets |
||||||
| Cash and cash equivalents |
$ |
19,225 |
$ |
35,702 | ||
| Accounts receivable, less allowance for doubtful accounts of $1,664 and $1,585, respectively |
|
115,094 |
|
105,348 | ||
| Inventories |
|
115,866 |
|
134,598 | ||
| Other current assets |
|
14,117 |
|
12,010 | ||
| |
|
|
| |||
| Total current assets |
|
264,302 |
|
287,658 | ||
| Property, plant and equipment, net |
|
508,597 |
|
531,776 | ||
| Intangible assets, less accumulated amortization of $8,386 and $1,289, respectively |
|
129,382 |
|
136,479 | ||
| Other assets |
|
25,439 |
|
46,385 | ||
| |
|
|
| |||
| Total assets |
$ |
927,720 |
$ |
1,002,298 | ||
| |
|
|
| |||
| LIABILITIES, REDEEMABLE COMMON STOCK AND RETAINED EARNINGS |
||||||
| Current liabilities |
||||||
| Current portion of long-term bank debt |
$ |
20,220 |
$ |
24,125 | ||
| Accounts payable |
|
46,687 |
|
49,217 | ||
| Accrued interest expense |
|
9,219 |
|
2,403 | ||
| Accrued income taxes |
|
23,531 |
|
6,578 | ||
| Restructuring reserve |
|
4,877 |
|
5,464 | ||
| Other accrued liabilities |
|
65,198 |
|
61,406 | ||
| |
|
|
| |||
| Total current liabilities |
|
169,732 |
|
149,193 | ||
| Other long-term bank debt |
|
136,177 |
|
240,875 | ||
| Variable rate industrial development bonds |
|
8,650 |
|
8,650 | ||
| Capital lease obligation |
|
4,042 |
|
4,314 | ||
| Postretirement benefits other than pension |
|
58,283 |
|
57,178 | ||
| Accrued pension |
|
8,476 |
|
15,954 | ||
| Other long-term liabilities |
|
19,171 |
|
21,959 | ||
| Senior subordinated notes payable |
|
225,068 |
|
250,000 | ||
| Deferred payment obligation |
|
152,687 |
|
141,896 | ||
| Commitments and contingencies (Note 11) |
|
|
|
| ||
| Redeemable common stock, $0.01 par value; shares authorized: 30,000,000; shares issued and outstanding: 11,602,845 and
10,684,373, respectively |
|
133,820 |
|
104,663 | ||
| Retained earnings |
|
11,614 |
|
7,616 | ||
| |
|
|
| |||
| Total liabilities, redeemable common stock and retained earnings |
$ |
927,720 |
$ |
1,002,298 | ||
| |
|
|
| |||
| (Successor Basis) |
(Predecessor Basis) |
(Successor Basis) |
(Predecessor Basis) |
|||||||||||||
| Three Months Ended September 29, 2002 |
Three Months Ended September 30, 2001 |
Nine Months Ended September 29, 2002 |
Nine Months Ended September 30, 2001 |
|||||||||||||
| Net sales |
$ |
229,030 |
|
$ |
249,112 |
|
$ |
682,304 |
|
$ |
728,610 |
| ||||
| Cost of sales |
|
158,314 |
|
|
169,092 |
|
|
477,706 |
|
|
515,549 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Gross profit |
|
70,716 |
|
|
80,020 |
|
|
204,598 |
|
|
213,061 |
| ||||
| Selling, general and administrative |
|
37,699 |
|
|
35,655 |
|
|
117,882 |
|
|
110,410 |
| ||||
| Restructuring and other charges |
|
|
|
|
5,517 |
|
|
|
|
|
6,385 |
| ||||
| Environmental expense |
|
|
|
|
779 |
|
|
|
|
|
21,703 |
| ||||
| Litigation settlement |
|
|
|
|
361 |
|
|
|
|
|
361 |
| ||||
| Equipment relocation expenses |
|
|
|
|
141 |
|
|
|
|
|
463 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Operating income |
|
33,017 |
|
|
37,567 |
|
|
86,716 |
|
|
73,739 |
| ||||
| Other expense (income) |
||||||||||||||||
| Interest expense |
|
15,844 |
|
|
7,678 |
|
|
53,616 |
|
|
22,815 |
| ||||
| Debt extinguishment expenses |
|
|
|
|
|
|
|
11,754 |
|
|
|
| ||||
| Interest income |
|
(316 |
) |
|
(2,671 |
) |
|
(881 |
) |
|
(8,216 |
) | ||||
| Foreign exchange loss (gain) |
|
383 |
|
|
304 |
|
|
(46 |
) |
|
361 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Income before income taxes |
|
17,106 |
|
|
32,256 |
|
|
22,273 |
|
|
58,779 |
| ||||
| Provision for income taxes |
|
128 |
|
|
6,647 |
|
|
167 |
|
|
16,952 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Income from continuing operations |
|
16,978 |
|
|
25,609 |
|
|
22,106 |
|
|
41,827 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Discontinued operations, net of tax: |
||||||||||||||||
| Loss from discontinued operations |
|
|
|
|
(8,027 |
) |
|
|
|
|
(9,496 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net income |
$ |
16,978 |
|
$ |
17,582 |
|
$ |
22,106 |
|
$ |
32,331 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| (Successor Basis) |
(Predecessor Basis) |
|||||||
| Nine Months Ended September 29, 2002 |
Nine Months Ended September 30, 2001 |
|||||||
| Cash flows from operating activities: |
||||||||
| Income from continuing operations |
$ |
22,106 |
|
$ |
41,827 |
| ||
| Adjustments to reconcile income from continuing operations to net cash provided by operating activities of continuing
operations: |
||||||||
| Depreciation |
|
44,135 |
|
|
32,151 |
| ||
| Amortization of intangible assets |
|
7,097 |
|
|
399 |
| ||
| Amortization of financing fees |
|
9,028 |
|
|
55 |
| ||
| Employer 401(k) noncash matching contributions |
|
5,789 |
|
|
|
| ||
| Foreign exchange (gain) loss |
|
(46 |
) |
|
361 |
| ||
| Loss on disposal of equipment |
|
1,198 |
|
|
5,079 |
| ||
| Debt extinguishment expenses |
|
11,754 |
|
|
|
| ||
| Accretion of deferred payment and capital lease obligations |
|
11,022 |
|
|
262 |
| ||
| (Increase)/decrease in assets and increase/(decrease) in liabilities: |
||||||||
| Accounts receivable |
|
(9,700 |
) |
|
13,006 |
| ||
| Inventories |
|
18,732 |
|
|
28,549 |
| ||
| Other current assets |
|
(2,107 |
) |
|
1,185 |
| ||
| Accounts payable and other accrued liabilities |
|
7,512 |
|
|
(18,089 |
) | ||
| Accrued income taxes |
|
16,953 |
|
|
(3,292 |
|||