UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| [X] |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|
| For the Quarterly Period Ended September 30, 2002 | ||
| OR | ||
| [ ] |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File Number: 0-233-59
ANCHOR GLASS CONTAINER CORPORATION
| Delaware | 59-3417812 | |
|
|
||
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
One Anchor Plaza, 4343 Anchor Plaza Parkway, Tampa, FL 33634-7513
813-884-0000
(Registrant’s telephone number, including area code)
None
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.
Number of shares outstanding of each class of common stock at November 14, 2002:
9,000,000 shares
ANCHOR GLASS CONTAINER CORPORATION
FORM 10-Q
For the Quarterly Period Ended September 30, 2002
INDEX
| Page No. | |||||||
| PART I — FINANCIAL INFORMATION | |||||||
| Item 1. | Financial Statements: | ||||||
| Condensed Statements of Operations and Comprehensive Income (Loss) - One Month Ended September 30, 2002 (Reorganized Company), Eight Months Ended August 31, 2002 and Nine Months Ended September 30, 2001 (Predecessor Company) |
3 | ||||||
| Condensed Statements of Operations and Comprehensive Income (Loss) - One Month Ended September 30, 2002 (Reorganized Company), Two Months Ended August 31, 2002 and Three Months Ended September 30, 2001 (Predecessor Company) |
4 | ||||||
| Condensed Balance Sheets - September 30, 2002 (Reorganized Company) and December 31, 2001 (Predecessor Company) |
5 | ||||||
| Condensed Statements of Cash Flows - One Month Ended September 30, 2002 (Reorganized Company), Eight Months Ended August 31, 2002 and Nine Months Ended September 30, 2002 and 2001 (Predecessor Company) |
6 | ||||||
| Condensed Statements of
Stockholders’ Equity (Deficit)- Eight Months Ended August 31, 2002 (Predecessor Company) and One Month Ended September 30, 2002 (Reorganized Company) |
7 | ||||||
| Notes to Condensed Financial Statements | 8 | ||||||
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 16 | |||||
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 22 | |||||
| Item 4. | Controls and Procedures | 23 | |||||
| PART II — OTHER INFORMATION | 23 | ||||||
| Item 1. | Legal Proceedings | 23 | |||||
| Item 2. | Changes in Securities and Use of Proceeds | 23 | |||||
| Item 3. | Defaults Upon Senior Securities | 24 | |||||
| Item 4. | Submission of Matters to a Vote of Security Holders | 24 | |||||
| Item 5. | Other Information | 24 | |||||
| Item 6. | Exhibits and Reports on Form 8-K | 24 | |||||
| SIGNATURES | 26 | ||||||
2
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements
ANCHOR GLASS CONTAINER CORPORATION
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(unaudited)
(dollars in thousands, except per share data)
| Reorganized | |||||||||||||||
| Company | Predecessor Company | ||||||||||||||
| One Month | Eight Months | Nine Months | |||||||||||||
| Ended | Ended | Ended | |||||||||||||
| September 30, | August 31, | September 30, | |||||||||||||
| 2002 | 2002 | 2001 | |||||||||||||
Net sales |
$ | 54,480 | $ | 504,195 | $ | 539,464 | |||||||||
Costs and expenses: |
|||||||||||||||
Cost of products sold |
50,447 | 451,619 | 503,512 | ||||||||||||
Selling and administrative expenses |
1,942 | 19,262 | 21,114 | ||||||||||||
Restructuring and other nonrecurring
items, net |
— | (395 | ) | — | |||||||||||
Related party provision and charges |
— | — | 19,500 | ||||||||||||
Income (loss) from operations |
2,091 | 33,709 | (4,662 | ) | |||||||||||
Reorganization items, net |
— | 47,389 | — | ||||||||||||
Other income (expense), net |
445 | 673 | (2 | ) | |||||||||||
Interest expense |
(2,571 | ) | (17,948 | ) | (21,932 | ) | |||||||||
Net income (loss) |
$ | (35 | ) | $ | 63,823 | $ | (26,596 | ) | |||||||
Preferred stock dividends |
$ | (4,100 | ) | $ | (10,543 | ) | |||||||||
Income (loss) applicable to common stock |
$ | 59,723 | $ | (37,139 | ) | ||||||||||
Basic and diluted net income (loss) per
share applicable to common stock |
$ | 11.37 | $ | (7.07 | ) | ||||||||||
Basic weighted average number of
common shares outstanding |
5,251,356 | 5,251,356 | |||||||||||||
Comprehensive income (loss): |
|||||||||||||||
Net income (loss) |
$ | (35 | ) | $ | 63,823 | $ | (26,596 | ) | |||||||
Other comprehensive income (loss): |
|||||||||||||||
Derivative income (loss) |
341 | 531 | (1,467 | ) | |||||||||||
Comprehensive income (loss) |
$ | 306 | $ | 64,354 | $ | (28,063 | ) | ||||||||
See Notes to Condensed Financial Statements.
3
ANCHOR GLASS CONTAINER CORPORATION
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(unaudited)
(dollars in thousands, except per share data)
| Reorganized | |||||||||||||||
| Company | Predecessor Company | ||||||||||||||
| One Month | Two Months | Three Months | |||||||||||||
| Ended | Ended | Ended | |||||||||||||
| September 30, | August 31, | September 30, | |||||||||||||
| 2002 | 2002 | 2001 | |||||||||||||
Net sales |
$ | 54,480 | $ | 125,935 | $ | 190,124 | |||||||||
Costs and expenses: |
|||||||||||||||
Cost of products sold |
50,447 | 110,948 | 174,775 | ||||||||||||
Selling and administrative expenses |
1,942 | 4,038 | 7,020 | ||||||||||||
Restructuring and other nonrecurring
items, net |
— | (1,824 | ) | — | |||||||||||
Income from operations |
2,091 | 12,773 | 8,329 | ||||||||||||
Reorganization items, net |
— | 50,089 | — | ||||||||||||
Other income (expense), net |
445 | 190 | (355 | ) | |||||||||||
Interest expense |
(2,571 | ) | (3,974 | ) | (7,006 | ) | |||||||||
Net income (loss) |
$ | (35 | ) | $ | 59,078 | $ | 968 | ||||||||
Preferred stock dividends |
$ | — | $ | (3,515 | ) | ||||||||||
Income (loss) applicable to common stock |
$ | 59,078 | $ | (2,547 | ) | ||||||||||
Basic and diluted net income (loss) per
share applicable to common stock |
$ | 11.25 | $ | (0.49 | ) | ||||||||||
Basic weighted average number of
common shares outstanding |
5,251,356 | 5,251,356 | |||||||||||||
Comprehensive income (loss): |
|||||||||||||||
Net income (loss) |
$ | (35 | ) | $ | 59,078 | $ | 968 | ||||||||
Other comprehensive income (loss): |
|||||||||||||||
Derivative income (loss) |
341 | — | (312 | ) | |||||||||||
Comprehensive income |
$ | 306 | $ | 59,078 | $ | 656 | |||||||||
See Notes to Condensed Financial Statements.
4
ANCHOR GLASS CONTAINER CORPORATION
CONDENSED BALANCE SHEETS
(dollars in thousands)
| Reorganized | Predecessor | ||||||||||
| Company | Company | ||||||||||
| September 30, 2002 | December 31, 2001 | ||||||||||
| (unaudited) | |||||||||||
ASSETS |
|||||||||||
Current assets: |
|||||||||||
Cash and cash equivalents |
$ | 288 | $ | 416 | |||||||
Restricted cash |
5,592 | — | |||||||||
Accounts receivable |
49,728 | 44,202 | |||||||||
Inventories: |
|||||||||||
Raw materials and manufacturing supplies |
23,814 | 22,171 | |||||||||
Finished products |
65,257 | 83,402 | |||||||||
Other current assets |
5,784 | 7,087 | |||||||||
Total current assets |
150,463 | 157,278 | |||||||||
Property, plant and equipment, net |
373,404 | 279,853 | |||||||||
Other assets |
12,438 | 26,042 | |||||||||
Goodwill and intangible assets |
7,900 | 67,411 | |||||||||
| $ | 544,205 | $ | 530,584 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
|||||||||||
Current liabilities: |
|||||||||||
Borrowings under revolving credit facility |
$ | 45,155 | $ | 50,981 | |||||||
Current maturities of long-term debt |
6,241 | 822 | |||||||||
Long-term debt classified as current |
— | 206,091 | |||||||||
Accounts payable |
49,749 | 46,671 | |||||||||
Accrued expenses |
27,634 | 23,781 | |||||||||
Accrued interest |
8,899 | 5,686 | |||||||||
Accrued compensation and employee benefits |
24,033 | 24,581 | |||||||||
Total current liabilities |
161,711 | 358,613 | |||||||||
Bonds and long-term capital leases |
174,974 | 1,541 | |||||||||
Long-term obligation to PBGC |
62,264 | — | |||||||||
Total long-term debt |
237,238 | 1,541 | |||||||||
Long-term pension liabilities |
— | 118,968 | |||||||||
Long-term post-retirement liabilities |
40,035 | 63,255 | |||||||||
Other long-term liabilities |
25,665 | 30,222 | |||||||||
| 302,938 | 213,986 | ||||||||||
Commitments and contingencies |
|||||||||||
Redeemable preferred stock |
— | 82,026 | |||||||||
Stockholders’ equity (deficit): |
|||||||||||
Preferred stock |
1 | 34 | |||||||||
Issuable preferred stock |
— | 21,731 | |||||||||
Common stock |
900 | 336 | |||||||||
Capital in excess of par value |
79,099 | 104,520 | |||||||||
Warrants |
— | 9,446 | |||||||||
Accumulated deficit |
(785 | ) | (184,109 | ) | |||||||
Accumulated other comprehensive income (loss) |
341 | (75,999 | ) | ||||||||
| 79,556 | (124,041 | ) | |||||||||
| $ | 544,205 | $ | 530,584 | ||||||||
See Notes to Condensed Financial Statements.
5
ANCHOR GLASS CONTAINER CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)
(dollars in thousands)
| Reorganized | ||||||||||||||
| Company | Predecessor Company | |||||||||||||
| One Month | Eight Months | Nine Months | ||||||||||||
| Ended | Ended | Ended | ||||||||||||
| September 30, | August 31, | September 30, | ||||||||||||
| 2002 | 2002 | 2001 | ||||||||||||
Cash flows from operating activities: |
||||||||||||||
Net income (loss) |
$ | (35 | ) | $ | 63,823 | $ | (26,596 | ) | ||||||
Adjustments to reconcile net income (loss) to
cash provided by operating activities: |
||||||||||||||
Depreciation and amortization |
4,806 | 37,330 | 42,281 | |||||||||||
Restructuring and other nonrecurring items, net |
— | (395 | ) | — | ||||||||||
Reorganization items, net |
— | (47,389 | ) | — | ||||||||||
Restructuring and reorganization payments |
(1,455 | ) | (4,835 | ) | — | |||||||||
Related party provision and charges |
— | — | 19,500 | |||||||||||
Other |
458 | (239 | ) | (780 | ) | |||||||||
Increase (decrease) in cash resulting from changes in
assets and liabilities |
6,203 | 4,819 | (14,732 | ) | ||||||||||
| 9,977 | 53,114 | 19,673 | ||||||||||||
Cash flows from investing activities: |
||||||||||||||
Expenditures for property, plant and equipment |
(5,448 | ) | (42,654 | ) | (26,160 | ) | ||||||||
Proceeds from sale of property, plant and equipment |
— | — | 13,974 | |||||||||||