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, 2004
Commission file number 1-14982
HUTTIG BUILDING PRODUCTS, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 43-0334550 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
| 555 Maryville University Drive | ||
| Suite 240 | ||
| St. Louis, Missouri | 63141 | |
| (Address of principal executive offices) | (Zip code) |
(314) 216-2600
(Registrant’s telephone number, including area code)
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 Exchange Act Rule 12b-2). Yes ¨ No x
The number of shares of Common Stock outstanding on June 30, 2004 was 19,435,701 shares.
- 1 -
| Page No. | ||||
| PART I. |
FINANCIAL INFORMATION | |||
| Item 1. |
Financial Statements |
|||
| Consolidated Balance Sheets as of June 30, 2004 (unaudited) and December 31, 2003 |
3-4 | |||
| 5 | ||||
| Consolidated Statements of Shareholders’ Equity for the six months ended June 30, 2004 and 2003 (unaudited) |
6 | |||
| Consolidated Statements of Cash Flows for the six months ended June 30, 2004 and 2003 (unaudited) |
7 | |||
| 8 | ||||
| Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
13 | ||
| Item 3. |
20 | |||
| Item 4. |
21 | |||
| PART II. |
OTHER INFORMATION | |||
| Item 1. |
22 | |||
| Item 4. |
22 | |||
| Item 6. |
23 | |||
| 24 | ||||
| 25 | ||||
- 2 -
HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARIES
AS OF JUNE 30, 2004 AND DECEMBER 31, 2003
(In Millions)
| June 30, 2004 |
December 31, 2003 | |||||
| (unaudited) | ||||||
| ASSETS |
||||||
| Current Assets: |
||||||
| Cash and equivalents |
$ | 5.2 | $ | 5.0 | ||
| Trade accounts receivable, net |
102.4 | 70.9 | ||||
| Inventories, net |
114.1 | 79.6 | ||||
| Other current assets |
5.6 | 7.0 | ||||
| Total current assets |
227.3 | 162.5 | ||||
| Property, Plant and Equipment: |
||||||
| Land |
6.5 | 6.5 | ||||
| Building and improvments |
33.4 | 32.9 | ||||
| Machinery and equipment |
37.2 | 37.3 | ||||
| Gross property, plant and equipment |
77.1 | 76.7 | ||||
| Less accumulated depreciation |
39.6 | 37.4 | ||||
| Property, plant and equipment, net |
37.5 | 39.3 | ||||
| Other Assets: |
||||||
| Goodwill, net |
13.6 | 13.6 | ||||
| Other |
2.8 | 3.0 | ||||
| Deferred income taxes |
4.7 | 7.6 | ||||
| Total other assets |
21.1 | 24.2 | ||||
| Total Assets |
$ | 285.9 | $ | 226.0 | ||
see notes to consolidated financial statements
- 3 -
HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2004 AND DECEMBER 31, 2003
(In Millions, Except Share and Per Share Data)
| June 30, 2004 |
December 31, 2003 |
|||||||
| (unaudited) | ||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Current Liabilities: |
||||||||
| Current portion of debt |
$ | 1.4 | $ | 1.4 | ||||
| Trade accounts payable |
89.7 | 63.6 | ||||||
| Deferred income taxes |
3.1 | 4.4 | ||||||
| Accrued compensation |
11.0 | 9.4 | ||||||
| Other accrued liabilities |
10.5 | 7.0 | ||||||
| Total current liabilities |
115.7 | 85.8 | ||||||
| Non-current Liabilities: |
||||||||
| Debt |
86.8 | 66.4 | ||||||
| Other non-current liabilities |
1.7 | 1.6 | ||||||
| Total non-current liabilities |
88.5 | 68.0 | ||||||
| Shareholders’ Equity: |
||||||||
| Preferred shares; $.01 par (5,000,000 shares authorized) |
— | — | ||||||
| Common shares; $.01 par (50,000,000 shares authorized; at June 30, 2004 and December 31, 2003 - 20,896,145 shares issued) |
0.2 | 0.2 | ||||||
| Additional paid-in capital |
33.4 | 33.4 | ||||||
| Retained earnings |
55.9 | 46.4 | ||||||
| Unearned compensation - restricted stock |
(0.1 | ) | (0.1 | ) | ||||
| Less: Treasury shares, at cost (1,460,444 shares at June 30, 2004 and December 31, 2003) |
(7.7 | ) | (7.7 | ) | ||||
| Total shareholders’ equity |
81.7 | 72.2 | ||||||
| Total Liabilities and Shareholders’ Equity |
$ | 285.9 | $ | 226.0 | ||||
see notes to consolidated financial statements
- 4 -
HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2004 AND 2003
(UNAUDITED)
(In Millions, Except Per Share Data)
| Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2004 |
2003 |
2004 |
2003 |
|||||||||||||
| Net Sales |
$ | 277.8 | $ | 225.4 | $ | 520.9 | $ | 421.9 | ||||||||
| Cost of Sales and Operating Expenses: |
||||||||||||||||
| Cost of sales |
220.9 | 181.5 | 415.6 | 342.9 | ||||||||||||
| Operating expenses |
45.1 | 38.1 | 86.5 | 77.9 | ||||||||||||
| Depreciation and amortization |
1.6 | 1.6 | 3.2 | 3.2 | ||||||||||||
| Gain on disposal of capital assets |
(0.5 | ) | — | (0.5 | ) | — | ||||||||||
| Total cost of sales and operating expenses |
267.1 | 221.2 | 504.8 | 424.0 | ||||||||||||
| Operating Profit (Loss) |
10.7 | 4.2 | 16.1 | (2.1 | ) | |||||||||||
| Other Income (Expense): |
||||||||||||||||
| Interest expense, net |
(1.2 | ) | (1.9 | ) | (2.2 | ) | (4.1 | ) | ||||||||
| Unrealized gain on derivatives |
— | 0.2 | — | 0.7 | ||||||||||||
| Total other expense, net |
(1.2 | ) | (1.7 | ) | (2.2 | ) | (3.4 | ) | ||||||||
| Income (Loss) Before Income Taxes |
9.5 | 2.5 | 13.9 | (5.5 | ) | |||||||||||
| Provision (Benefit) for Income Taxes |
2.7 | 0.9 | 4.4 | (2.1 | ) | |||||||||||
| Net Income (Loss) |
$ | 6.8 | $ | 1.6 | $ | 9.5 | $ | (3.4 | ) | |||||||
| Net Income (Loss) Per Basic Share |
$ | 0.35 | $ | 0.08 | $ | 0.49 | $ | (0.17 | ) | |||||||
| Weighted Average Basic Shares Outstanding |
19.4 | 19.5 | 19.4 | 19.5 | ||||||||||||
| Net Income (Loss) Per Dilutive Share |
$ | 0.34 | $ | 0.08 | $ | 0.48 | $ | (0.17 | ) | |||||||
| Weighted Average Diluted Shares Outstanding |
19.9 | 19.5 | 19.7 | 19.5 | ||||||||||||
see notes to consolidated financial statements
- 5 -
HUTTIG BUILDING PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 2004 AND 2003
(UNAUDITED)
(In Millions)
| Common Shares Outstanding, at Par Value |
Additional Paid-In Capital |
Retained Earnings |
Unearned Compensation- Restricted Stock |
Accumulated Other Comprehensive Loss |
Treasury Shares, at Cost |
Total Shareholders’ Equity |
|||||||||||||||||||||
| Balance at January 1, 2003 |
$ | 0.2 | $ | 33.5 | $ | 43.0 | $ | (0.4 | ) | $ | (0.6 | ) | $ | (7.5 | ) | $ | 68.2 | ||||||||||
| Net loss |
(3.4 | ) | (3.4 | ) | |||||||||||||||||||||||
| Fair market value adjustment of derivatives, net of tax |
0.6 | 0.6 | |||||||||||||||||||||||||
| Comprehensive (loss) income |
(3.4 | ) | 0.6 | (2.8 | ) | ||||||||||||||||||||||
| Restricted stock issued, net of forfeitures and amortization expense |
(0.1 | ) | 0.3 | (0.4 | ) | (0.2 | ) | ||||||||||||||||||||
| Balance at June 30, 2003 |
$ | 0.2 | $ | 33.4 | $ | 39.6 | $ | (0.1 | ) | $ | — | $ | (7.9 | ) | $ | 65.2 | |||||||||||
| Balance at January 1, 2004 |
$ | 0.2 | $ | 33.4 | $ | 46.4 | $ | (0.1 | ) | $ | — | $ | (7.7 | ) | $ | 72.2 | |||||||||||
| Net income |
9.5 | 9.5 | |||||||||||||||||||||||||