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 March 28, 2003 |
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| For the transition period from to |
Commission file number: 333-19495
RADNOR HOLDINGS CORPORATION
(Exact name of registrant as specified in its charter)
| Delaware |
23-2674715 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification Number) |
| Three Radnor Corporate Center, Suite 300 100 Matsonford Road, Radnor, Pennsylvania |
19087 | |
| (address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code: 610-341-9600
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
The number of shares outstanding of the Registrant’s common stock as of May 8, 2003:
| Class |
Number of Shares | |
| Voting Common Stock; $.10 par value |
600 | |
| Nonvoting Common Stock; $.10 par value |
245 | |
| Class B Nonvoting Common Stock; $.01 par value |
5,400 |
PART I—FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
RADNOR HOLDINGS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| March 28, |
December 27, |
|||||||
| ASSETS |
||||||||
| CURRENT ASSETS: |
||||||||
| Cash |
$ |
1,130 |
|
$ |
4,059 |
| ||
| Accounts receivable, net |
|
41,749 |
|
|
36,165 |
| ||
| Inventories, net |
|
46,940 |
|
|
37,715 |
| ||
| Prepaid expenses and other |
|
8,142 |
|
|
7,115 |
| ||
| Deferred tax asset |
|
1,554 |
|
|
1,838 |
| ||
| Total current assets |
|
99,515 |
|
|
86,892 |
| ||
| PROPERTY, PLANT AND EQUIPMENT, at cost: |
|
254,059 |
|
|
249,417 |
| ||
| LESS – ACCUMULATED DEPRECIATION |
|
(77,987 |
) |
|
(73,921 |
) | ||
| NET PROPERTY, PLANT AND EQUIPMENT |
|
176,072 |
|
|
175,496 |
| ||
| OTHER ASSETS |
|
25,280 |
|
|
21,744 |
| ||
| Total assets |
$ |
300,867 |
|
$ |
284,132 |
| ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
| CURRENT LIABILITIES: |
||||||||
| Accounts payable |
$ |
35,956 |
|
$ |
34,141 |
| ||
| Accrued liabilities |
|
16,538 |
|
|
15,154 |
| ||
| Current portion of long-term debt |
|
10,979 |
|
|
6,548 |
| ||
| Current portion of capitalized lease obligations |
|
1,163 |
|
|
1,141 |
| ||
| Total current liabilities |
|
64,636 |
|
|
56,984 |
| ||
| LONG-TERM DEBT, net of current portion |
|
216,822 |
|
|
205,928 |
| ||
| CAPITALIZED LEASE OBLIGATIONS, net of current portion |
|
1,292 |
|
|
1,597 |
| ||
| DEFERRED TAX LIABILITY |
|
6,317 |
|
|
7,816 |
| ||
| OTHER NON-CURRENT LIABILITIES |
|
1,753 |
|
|
1,746 |
| ||
| COMMITMENTS AND CONTINGENCIES |
|
— |
|
|
— |
| ||
| STOCKHOLDERS’ EQUITY: |
||||||||
| Common stock |
|
1 |
|
|
1 |
| ||
| Additional paid-in capital |
|
19,387 |
|
|
19,387 |
| ||
| Retained deficit |
|
(6,049 |
) |
|
(4,663 |
) | ||
| Cumulative translation adjustment |
|
(3,292 |
) |
|
(4,664 |
) | ||
| Total stockholders’ equity |
|
10,047 |
|
|
10,061 |
| ||
| Total liabilities and stockholders’ equity |
$ |
300,867 |
|
$ |
284,132 |
| ||
The accompanying notes are an integral part of these condensed consolidated financial statements.
2
RADNOR HOLDINGS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
(Unaudited)
| For the three months ended | |||||||
| March 28, |
March 29, | ||||||
| NET SALES |
$ |
80,253 |
|
$ |
71,448 | ||
| COST OF GOODS SOLD |
|
63,455 |
|
|
53,903 | ||
| GROSS PROFIT |
|
16,798 |
|
|
17,545 | ||
| OPERATING EXPENSES: |
|||||||
| Distribution |
|
4,883 |
|
|
5,125 | ||
| Selling, general and administrative |
|
6,704 |
|
|
7,187 | ||
| Other expenses (note 4) |
|
1,838 |
|
|
— | ||
| INCOME FROM OPERATIONS |
|
3,373 |
|
|
5,233 | ||
| OTHER EXPENSE: |
|||||||
| Interest, net |
|
5,418 |
|
|
5,012 | ||
| Other, net |
|
190 |
|
|
128 | ||
| INCOME (LOSS) BEFORE INCOME TAXES |
|
(2,235 |
) |
|
93 | ||
| PROVISION (BENEFIT) FOR INCOME TAXES: |
|||||||
| Current |
|
364 |
|
|
4 | ||
| Deferred |
|
(1,213 |
) |
|
31 | ||
|
|
(849 |
) |
|
35 | |||
| NET INCOME (LOSS) |
$ |
(1,386 |
) |
$ |
58 | ||
The accompanying notes are an integral part of these condensed consolidated financial statements.
3
RADNOR HOLDINGS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| For the three months ended |
||||||||
| March 28, 2003 |
March 29, 2002 |
|||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
| Net income (loss) |
$ |
(1,386 |
) |
$ |
58 |
| ||
| Adjustments to reconcile net income (loss) to net cash used in operating activities: |
||||||||
| Depreciation and amortization |
|
5,176 |
|
|
4,270 |
| ||
| Deferred income taxes |
|
(1,213 |
) |
|
31 |
| ||
| Income from unconsolidated affiliates |
|
(828 |
) |
|
(342 |
) | ||
| Changes in operating assets and liabilities, net of effects of disposition of businesses: |
||||||||
| Accounts receivable, net |
|
(4,660 |
) |
|
(3,692 |
) | ||
| Inventories, net |
|
(8,888 |
) |
|
1,349 |
| ||
| Prepaid expenses and other |
|
(700 |
) |
|
16 |
| ||
| Accounts payable |
|
1,453 |
|
|
(6,412 |
) | ||
| Accrued liabilities and other |
|
1,151 |
|
|
773 |
| ||
| Net cash used in continuing operations |
|
(9,895 |
) |
|
(3,949 |
) | ||
| Net cash used in discontinued operations |
|
— |
|
|
(34 |
) | ||
| Net cash used in operating activities |
|
(9,895 |
) |
|
(3,983 |
) | ||
| CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
| Capital expenditures |
|
(2,866 |
) |
|
(1,836 |
) | ||
| Distributions from unconsolidated affiliates |
|
1,529 |
|
|
1,663 |
| ||
| Investments in unconsolidated affiliates |
|
(1,473 |
) |
|
(1,988 |
) | ||
| Increase in other assets |
|
(654 |
) |
|
(170 |
) | ||
| Net cash used in investing activities |
|
(3,464 |
) |
|
(2,331 |
) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
| Proceeds from borrowings |
|
188,236 |
|
|
6,272 |
| ||
| Repayment of debt |
|
(172,527 |
) |
|
(2,981 |
) | ||
| Payments on capitalized lease obligations |
|
(283 |
) |
|
(244 |
) | ||
| Payment of financing costs |
|
(4,546 |
) |
|
— |
| ||
| Net cash provided by financing activities |
|
10,880 |
|
|
3,047 |
| ||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH |
|
(450 |
) |
|
(155 |
) | ||
| NET DECREASE IN CASH |
|
(2,929 |
) |
|
(3,422 |
) | ||
| CASH, beginning of period |
|
4,059 |
|
|
4,304 |
| ||