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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549

FORM 10-Q
(Mark one)

 
{X}
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
For the quarterly period ended September 30, 2004


OR

{  }
Transition report pursuant to section 13 or 15(d) of the securities exchange act of 1934

Commission file number 001-11549
 
BLOUNT INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of
Incorporation or organization)
63 0780521
(I.R.S. Employer
Identification No.)
 
4909 SE International Way
Portland, Oregon
(Address of principal executive offices)
 
97222-4679
(Zip Code)
 
(503) 653-8881
(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class
Common Stock, $.01 par value
Name of each exchange
on which registered
New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: 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.

Yes  {X}
No {  }

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Securities Exchange Act of 1934).

Yes  {  }
No  (X}

Indicate the number of shares outstanding of each of the issued classes of common stock, as of the latest practicable date.

Class of Common Stock
Outstanding at September 30, 2004
$ .01 Par Value
    44,799,116
 

 
  Page 1  
 

 
 
BLOUNT INTERNATIONAL, INC. AND SUBSIDIARIES

INDEX

 
Page No.
 
Part I Consolidated Financial Information
 
  
Item 1 - Consolidated Financial Statements    
 
  
Unaudited Consolidated Statements of Income
Three and nine months ended September 30, 2004 and 2003 (restated)
 
3
 
Unaudited Consolidated Balance Sheets
September 30, 2004 and December 31, 2003
 
4
 
Unaudited Consolidated Statements of Cash Flows
Nine months ended September 30, 2004 and 2003
 
5
 
Unaudited Consolidated Statements of Changes in
Stockholders' Equity (Deficit) - three and nine months
ended September 30, 2004 and 2003
 
6
 
Notes to Unaudited Consolidated Financial Statements
 
7
 
Item 2 - Management's Discussion and Analysis
 
23
 
Item 4 - Controls and Procedures
 
31
 
Part II    Other Information    
 
  
Item 6 - Exhibits and Reports on Form 8-K
 
31
 
Signature
 
32
 


  
  Page 2  
 

ITEM 1 - FINANCIAL STATEMENTS

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
Blount International, Inc. and Subsidiaries
 
 
 
  
Three months
ended September 30,
Nine months
ended September 30,
(Dollar amounts in millions, except
per share data)
    
2004
    
(Restated)
2003
    
2004
    
(Restated)
2003
  
                           
Sales
  
 
$173.7
  
 
$145.8
  
 
$508.5
  
 
$399.9
  
Cost of sales
    
113.5
    
95.6
    
333.0
    
262.2
  
Gross profit
    
60.2
    
50.2
    
175.5
    
137.7
  
Selling, general and administrative expenses
    
29.1
    
26.0
    
88.7
    
75.7
  
Restructuring expenses
                     
0.2
  
Operating income
   
31.1
    
24.2
    
86.8
    
61.8
  
Interest expense
    
(17.5
)
  
(17.4
)
  
(52.1
)
  
(52.7
)
Interest income    
    
0.8
    
0.2
    
2.1
    
4.0
  
Other expense (Note 10)
   
(43.7
)
  
(0.2
)
  
(43.7
)
  
(3.3
)
Income (loss) before income taxes
    
( 29.3
)
  
6.8
    
(6.9
)
  
9.8
  
Provision for income taxes
    
2.5
    
43.0
    
8.9
    
44.2
  
Net loss
  
 
$(31.8
)
 
$(36.2
)
 
$(15.8
)
 
$(34.4
)
                           
Basic loss per share
  
 
$(0.79
)
 
$(1.17
)
 
$(0.46
)
 
$(1.12
)
                           
Diluted loss per share
  
 
$(0.79
)
 
$(1.17
)
 
$(0.46
)
 
$(1.12
)
                           

 
The accompanying notes are an integral part of these consolidated financial statements.

  
  Page 3  
 

UNAUDITED CONSOLIDATED BALANCE SHEETS
Blount International, Inc. and Subsidiaries

               
(Dollar amounts in millions, except share and per share data)
    
 
 
September 30,
2004
    
Audited
December 31,
(Restated)
2003
  
               
Assets
              
               
Current assets:
              
Cash and cash equivalents
  
$
21.7
  
$
35.2
  
Accounts receivable, net of allowance for doubtful accounts of $2.7 and $3.0 respectively
    
78.6
    
64.4
  
Inventories
    
81.5
    
67.7
  
Other current assets
    
31.0
    
29.7
  
Total current assets
    
212.8
    
197.0
  
Property, plant and equipment, net of accumulated depreciation of $200.3 and $191.1 respectively
    
92.0
    
92.0
  
Goodwill
    
76.9
    
76.9
  
Other assets
    
41.1
    
38.1
  
Total Assets
  
$
422.8
  
$
404.0
  
               
Liabilities and Stockholders’ Equity (Deficit)
              
Current liabilities:
              
Notes payable and current maturities of long-term debt
  
$
2.7
  
$
6.6
  
Accounts payable
    
34.8
    
29.7
  
Accrued expenses
    
71.7
    
73.7
  
Current deferred income taxes
    
0.2
        
Total current liabilities
    
109.4
    
110.0
  
Long-term debt, exclusive of current maturities    
    
517.7
    
603.9
  
Deferred income taxes, exclusive of current portion
    
2.9
    
2.8
  
Other liabilities
    
75.3
    
81.0
  
Total Liabilities
    
705.3
    
797.7
  
Stockholders’ equity (deficit):
              
Common stock: par value $0.01 per share, 100,000,000 shares authorized, 44,799,116 and 30,827,738 outstanding
    
0.4
    
0.3
  
Capital in excess of par value of stock
    
552.1
    
424.6
  
Accumulated deficit
    
(832.2
)
  
(816.4
)
Deferred stock compensation
    
(0.1
)
      
Accumulated other comprehensive income
    
(2.7
)
  
(2.2
)
Total Stockholders’ Deficit
    
(282.5
)
  
( 393.7
)
Total Liabilities and Stockholders’ Equity (Deficit)