UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2002
Commission File Number 000-22371
DECRANE AIRCRAFT HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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34-1645569 |
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
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2361 Rosecrans Avenue, Suite 180, El Segundo, CA 90245 |
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(Address, including zip code, of principal executive offices) |
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(310) 725-9123 |
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(Registrant’s telephone number, including area code) |
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(Not Applicable) |
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(Former address and telephone number of principal executive offices, if changed since last report) |
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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.
ý Yes o No
The number of shares of Registrant’s Common Stock, $.01 par value, outstanding as of August 9, 2002 was 100 shares.
Table of Contents
PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DECRANE AIRCRAFT HOLDINGS, INC. AND SUBSIDIARIES
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(In thousands, except share data) |
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June 30, |
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December 31, |
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(Unaudited) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
8,995 |
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$ |
9,794 |
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Accounts receivable, net |
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49,276 |
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58,451 |
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Inventories |
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84,279 |
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86,498 |
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Deferred income taxes |
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10,428 |
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14,063 |
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Prepaid expenses and other current assets |
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3,821 |
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2,559 |
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Total current assets |
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156,799 |
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171,365 |
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Property and equipment, net |
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55,033 |
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61,073 |
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Other assets, principally intangibles, net |
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410,155 |
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413,273 |
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Total assets |
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$ |
621,987 |
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$ |
645,711 |
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Liabilities, Mandatorily Redeemable Preferred Stock and Stockholder’s Equity |
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Current liabilities: |
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Current portion of long-term debt |
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$ |
17,609 |
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$ |
13,899 |
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Accounts payable |
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17,431 |
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19,051 |
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Accrued liabilities |
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37,001 |
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56,626 |
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Income taxes payable |
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222 |
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133 |
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Total current liabilities |
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72,263 |
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89,709 |
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Long-term debt |
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386,979 |
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386,351 |
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Deferred income taxes |
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26,696 |
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33,597 |
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Other long-term liabilities |
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7,744 |
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7,438 |
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Commitments and contingencies (Note 10) |
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Mandatorily redeemable preferred stock |
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31,055 |
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28,240 |
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Stockholder’s equity: |
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Common stock, $.01 par value, 1,000 shares
authorized; 100 shares |
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— |
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— |
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Additional paid-in capital |
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119,338 |
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122,469 |
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Notes receivable for shares sold |
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(2,532 |
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(2,668 |
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Accumulated deficit |
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(18,857 |
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(17,323 |
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Accumulated other comprehensive loss |
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(699 |
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(2,102 |
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Total stockholder’s equity |
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97,250 |
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100,376 |
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Total liabilities and stockholder’s equity |
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$ |
621,987 |
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$ |
645,711 |
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The accompanying notes are an integral part of the consolidated financial statements.
1
DECRANE AIRCRAFT HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
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Three Months Ended |
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Six Months Ended |
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(In thousands) |
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2002 |
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2001 |
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2002 |
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2001 |
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(Unaudited) |
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Revenues |
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$ |
86,332 |
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$ |
102,780 |
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$ |
172,495 |
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$ |
201,931 |
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Cost of sales |
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64,494 |
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70,204 |
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124,942 |
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134,310 |
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Gross profit |
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21,838 |
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32,576 |
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47,553 |
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67,621 |
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Operating expenses: |
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Selling, general and administrative expenses |
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14,794 |
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13,436 |
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30,291 |
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28,096 |
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Amortization of intangible assets |
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1,431 |
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4,955 |
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