Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Edgen Group Inc. | edgen_8k-080212.htm |
| EX-99.1 - EXHIBIT 99.1 - Edgen Group Inc. | ex99-1.htm |
Exhibit 99.2
TABLE OF CONTENTS
Edgen Group Inc.
Unaudited Condensed Combined Consolidated Financial Information for Each of the Five Quarters Ended March 31, 2012
|
Unaudited Condensed Combined Consolidated Balance Sheets
|
1
|
|
Unaudited Condensed Combined Consolidated Statements of Operations
|
2
|
|
Unaudited Condensed Combined Consolidated Statements of Comprehensive Income (Loss)
|
3
|
|
Unaudited Condensed Combined Consolidated Statements of Stockholders’ Equity (Deficit)
|
4
|
|
Unaudited Condensed Combined Consolidated Statements of Cash Flows
|
5
|
EDGEN GROUP INC.
UNAUDITED CONDENSED COMBINED CONSOLIDATED BALANCE SHEETS
(In thousands)
|
March 31,
2012
|
December 31,
2011
|
September 30,
2011
|
June 30,
2011
|
March 31,
2011
|
||||||||||||||||
|
ASSETS
|
||||||||||||||||||||
|
CURRENT ASSETS:
|
||||||||||||||||||||
|
Cash and cash equivalents
|
$ | 13,246 | $ | 26,269 | $ | 11,957 | $ | 58,697 | $ | 61,289 | ||||||||||
|
Accounts receivable - net of allowance for doubtful accounts of $2,207, $2,056, $1,841, $1,816, and 1,653, respectively
|
272,458 | 261,155 | 204,569 | 211,253 | 165,376 | |||||||||||||||
|
Inventory
|
365,433 | 339,371 | 315,036 | 274,917 | 252,807 | |||||||||||||||
|
Income tax receivable
|
975 | 1,209 | 1,352 | 1,923 | 19,071 | |||||||||||||||
|
Prepaid expenses and other current assets
|
9,542 | 9,025 | 7,772 | 7,362 | 7,917 | |||||||||||||||
|
Deferred tax asset - net
|
213 | 209 | 177 | 145 | 214 | |||||||||||||||
|
Total current assets
|
661,867 | 637,238 | 540,863 | 554,297 | 506,674 | |||||||||||||||
|
PROPERTY, PLANT AND EQUIPMENT - NET
|
46,377 | 46,647 | 47,414 | 48,766 | 49,917 | |||||||||||||||
|
GOODWILL
|
23,667 | 22,965 | 23,058 | 23,737 | 23,774 | |||||||||||||||
|
OTHER INTANGIBLE ASSETS - NET
|
165,542 | 172,036 | 179,548 | 187,527 | 195,064 | |||||||||||||||
|
OTHER ASSETS
|
2,101 | 503 | 337 | 839 | 807 | |||||||||||||||
|
DEFERRED TAX ASSET - NET
|
1,155 | 1,044 | 819 | 149 | - | |||||||||||||||
|
DEFERRED FINANCING COSTS
|
18,828 | 20,307 | 21,642 | 20,860 | 22,434 | |||||||||||||||
|
TOTAL ASSETS
|
$ | 919,537 | $ | 900,740 | $ | 813,681 | $ | 836,175 | $ | 798,670 | ||||||||||
|
LIABILITIES AND DEFICIT
|
||||||||||||||||||||
|
CURRENT LIABILITIES:
|
||||||||||||||||||||
|
Managed cash overdrafts
|
$ | 16,013 | $ | 6,488 | $ | 10,005 | $ | 10,284 | $ | 7,746 | ||||||||||
|
Accounts payable
|
234,011 | 223,428 | 167,632 | 174,818 | 136,423 | |||||||||||||||
|
Accrued expenses and other current liabilities
|
16,074 | 21,350 | 16,441 | 16,247 | 12,948 | |||||||||||||||
|
Income taxes payable
|
4,737 | 4,307 | 4,586 | 5,024 | 3,017 | |||||||||||||||
|
Deferred revenue
|
2,819 | 5,139 | 2,342 | 2,000 | 1,270 | |||||||||||||||
|
Accrued interest payable
|
12,453 | 26,982 | 12,716 | 27,017 | 12,711 | |||||||||||||||
|
Deferred tax liability - net
|
1,100 | 991 | 794 | - | - | |||||||||||||||
|
Current portion of long term debt and capital lease
|
10,417 | 19,244 | 9,726 | 8,947 | 8,158 | |||||||||||||||
|
Total current liabilities
|
297,624 | 307,929 | 224,242 | 244,337 | 182,273 | |||||||||||||||
|
DEFERRED TAX LIABILITY - NET
|
4,046 | 4,544 | 4,682 | 4,754 | 5,403 | |||||||||||||||
|
OTHER LONG TERM LIABILITIES
|
1,270 | 783 | 787 | 290 | 293 | |||||||||||||||
|
LONG TERM DEBT AND CAPITAL LEASE
|
690,975 | 664,601 | 660,951 | 664,318 | 684,755 | |||||||||||||||
|
Total liabilities
|
993,915 | 977,857 | 890,662 | 913,699 | 872,724 | |||||||||||||||
|
COMMITMENTS AND CONTINGENCIES
|
||||||||||||||||||||
|
PREDECESSOR NET DEFICIT:
|
||||||||||||||||||||
|
Net deficit
|
(51,709 | ) | (51,799 | ) | (52,078 | ) | (54,948 | ) | (51,637 | ) | ||||||||||
|
Accumulated other comprehensive loss
|
(23,010 | ) | (25,648 | ) | (25,171 | ) | (22,678 | ) | (22,465 | ) | ||||||||||
|
Total predecessor net deficit
|
(74,719 | ) | (77,447 | ) | (77,249 | ) | (77,626 | ) | (74,102 | ) | ||||||||||
|
NON-CONTROLLING INTEREST
|
341 | 330 | 268 | 102 | 48 | |||||||||||||||
|
Total deficit
|
(74,378 | ) | (77,117 | ) | (76,981 | ) | (77,524 | ) | (74,054 | ) | ||||||||||
|
TOTAL LIABILITIES AND DEFICIT
|
$ | 919,537 | $ | 900,740 | $ | 813,681 | $ | 836,175 | $ | 798,670 | ||||||||||
1
EDGEN GROUP INC.
UNAUDITED CONDENSED COMBINED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands)
|
Three months ended
|
||||||||||||||||||||
|
March 31,
2012
|
December 31,
2011
|
September 30,
2011
|
June 30,
2011
|
March 31,
2011
|
||||||||||||||||
|
SALES
|
$ | 505,831 | $ | 475,926 | $ | 457,166 | $ | 415,106 | $ | 327,011 | ||||||||||
|
OPERATING EXPENSES:
|
||||||||||||||||||||
|
Cost of sales (exclusive of depreciation and amortization shown below)
|
447,418 | 420,752 | 398,867 | 359,917 | 284,732 | |||||||||||||||
|
Selling, general and administrative expense
|
23,028 | 24,005 | 25,105 | 22,128 | 19,728 | |||||||||||||||
|
Depreciation and amortization expense
|
8,239 | 8,830 | 8,933 | 8,930 | 8,918 | |||||||||||||||
|
Total operating expenses
|
478,685 | 453,587 | 432,905 | 390,975 | 313,378 | |||||||||||||||
|
INCOME FROM OPERATIONS
|
27,146 | 22,339 | 24,261 | 24,131 | 13,633 | |||||||||||||||
|
OTHER INCOME (EXPENSE):
|
||||||||||||||||||||
|
Other income - net
|
305 | 121 | 71 | 504 | 1,282 | |||||||||||||||
|
Interest expense - net
|
(22,046 | ) | (21,962 | ) | (20,733 | ) | (22,060 | ) | (21,725 | ) | ||||||||||
|
INCOME (LOSS) BEFORE INCOME TAX EXPENSE
|
5,405 | 498 | 3,599 | 2,575 | (6,810 | ) | ||||||||||||||
|
INCOME TAX EXPENSE
|
1,304 | 773 | 1,193 | 1,566 | 556 | |||||||||||||||
|
NET INCOME (LOSS)
|
$ | 4,101 | $ | (275 | ) | $ | 2,406 | $ | 1,009 | $ | (7,366 | ) | ||||||||
|
NET INCOME (LOSS) ATTRIBUTABLE TO:
|
||||||||||||||||||||
|
Predecessor
|
$ | 4,090 | $ | (337 | ) | $ | 2,240 | $ | 955 | $ | (7,372 | ) | ||||||||
|
Non-controlling interest
|
11 | 62 | 166 | 54 | 6 | |||||||||||||||
|
Edgen Group Inc.
|
- | - | - | - | - | |||||||||||||||
2
EDGEN GROUP INC.
UNAUDITED CONDENSED COMBINED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In thousands)
|
Three months ended
|
||||||||||||||||||||
|
March 31,
2012
|
December 31,
2011
|
September 30,
2011
|
June 30,
2011
|
March 31,
2011
|
||||||||||||||||
|
NET INCOME (LOSS)
|
$ | 4,101 | $ | (275 | ) | $ | 2,406 | $ | 1,009 | $ | (7,366 | ) | ||||||||
|
OTHER COMPREHENSIVE INCOME (LOSS):
|
||||||||||||||||||||
|
Foreign currency translation adjustments
|
2,638 | (477 | ) | (2,493 | ) | (213 | ) | 3,066 | ||||||||||||
|
COMPREHENSIVE INCOME (LOSS)
|
$ | 6,739 | $ | (752 | ) | $ | (87 | ) | $ | 796 | $ | (4,300 | ) | |||||||
|
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO:
|
||||||||||||||||||||
|
Predecessor
|
$ | 6,728 | $ | (814 | ) | $ | (253 | ) | $ | 742 | $ | (4,306 | ) | |||||||
|
Non-controlling interest
|
11 | 62 | 166 | 54 | 6 | |||||||||||||||
|
Edgen Group Inc.
|
- | - | - | - | - | |||||||||||||||
3
EDGEN GROUP INC.
UNAUDITED CONDENSED COMBINED CONSOLIDATED STATEMENTS STOCKHOLDERS’ DEFICIT
(In thousands, except unit data)
| Predecessor |
Edgen Group Inc.
|
Accumulated other
|
Non-
|
Total
|
||||||||||||||||||||||||||||
|
net
|
Common stock
|
Additional
|
Retained
|
comprehensive
|
controlling
|
stockholders'
|
||||||||||||||||||||||||||
|
deficit
|
Class A
|
Class B
|
paid in capital
|
earnings
|
loss
|
interest
|
deficit
|
|||||||||||||||||||||||||
|
Balances at December 31, 2010
|
$ | (44,841 | ) | $ | - | $ | - | $ | - | $ | - | $ | (25,531 | ) | $ | 42 | $ | (70,330 | ) | |||||||||||||
|
Net income (loss)
|
(7,372 | ) | - | - | - | - | - | 6 | (7,366 | ) | ||||||||||||||||||||||
|
Other comprehensive income
|
- | - | - | - | - | 3,066 | - | 3,066 | ||||||||||||||||||||||||
|
Amortization of unit-based compensation
|
576 | - | - | - | - | - | - | 576 | ||||||||||||||||||||||||
|
Distributions to owners of Predecessor interest
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
|
Balances at March 31, 2011
|
(51,637 | ) | - | - | - | - | (22,465 | ) | 48 | (74,054 | ) | |||||||||||||||||||||
|
Net income
|
955 | - | - | - | - | - | 54 | 1,009 | ||||||||||||||||||||||||
|
Other comprehensive loss
|
- | - | - | - | - | (213 | ) | - | (213 | ) | ||||||||||||||||||||||
|
Amortization of unit-based compensation
|
686 | - | - | - | - | - | - | 686 | ||||||||||||||||||||||||
|
Distributions to owners of Predecessor interest
|
(4,952 | ) | - | - | - | - | - | - | (4,952 | ) | ||||||||||||||||||||||
|
Balances at June 30, 2011
|
(54,948 | ) | - | - | - | - | (22,678 | ) | 102 | (77,524 | ) | |||||||||||||||||||||
|
Net income
|
2,240 | - | - | - | - | - | 166 | 2,406 | ||||||||||||||||||||||||
|
Other comprehensive loss
|
- | - | - | - | - | (2,493 | ) | - | (2,493 | ) | ||||||||||||||||||||||
|
Amortization of unit-based compensation
|
686 | - | - | - | - | - | - | 686 | ||||||||||||||||||||||||
|
Distributions to owners of Predecessor interest
|
(56 | ) | - | - | - | - | - | - | (56 | ) | ||||||||||||||||||||||
|
Balances at September 30, 2011
|
(52,078 | ) | - | - | - | - | (25,171 | ) | 268 | (76,981 | ) | |||||||||||||||||||||
|
Net income (loss)
|
(337 | ) | - | - | - | - | - | 62 | (275 | ) | ||||||||||||||||||||||
|
Other comprehensive loss
|
- | - | - | - | - | (477 | ) | - | (477 | ) | ||||||||||||||||||||||
|
Amortization of unit-based compensation
|
684 | - | - | - | - | - | - | 684 | ||||||||||||||||||||||||
|
Distributions to owners of Predecessor interest
|
(68 | ) | - | - | - | - | - | - | (68 | ) | ||||||||||||||||||||||
|
Balances at December 31, 2011
|
(51,799 | ) | - | - | - | - | (25,648 | ) | 330 | (77,117 | ) | |||||||||||||||||||||
|
Net income
|
4,090 | - | - | - | - | - | 11 | 4,101 | ||||||||||||||||||||||||
|
Other comprehensive income
|
- | - | - | - | - | 2,638 | - | 2,638 | ||||||||||||||||||||||||
|
Amortization of unit-based compensation
|
702 | - | - | - | - | - | - | 702 | ||||||||||||||||||||||||
|
Distributions to owners of Predecessor interest
|
(4,702 | ) | - | - | - | - | - | - | (4,702 | ) | ||||||||||||||||||||||
|
Balances at March 31, 2012
|
$ | (51,709 | ) | $ | - | $ | - | $ | - | $ | - | $ | (23,010 | ) | $ | 341 | $ | (74,378 | ) | |||||||||||||
4
EDGEN GROUP INC.
UNAUDITED CONDENSED COMBINED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
|
Three months
March 31,
2012
|
Year ended
December 31,
2011
|
Nine months
September 30,
2011
|
Six months
June 30,
2011
|
Three months
March 31,
2011
|
||||||||||||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||||||||||
|
Net income
|
$ | 4,101 | $ | (4,226 | ) | (3,951 | ) | $ | (6,357 | ) | $ | (7,366 | ) | |||||||
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
|
||||||||||||||||||||
|
Depreciation and amortization
|
8,239 | 35,611 | 26,781 | 17,848 | 8,918 | |||||||||||||||
|
Amortization of deferred financing costs
|
1,500 | 5,048 | 3,665 | 3,148 | 1,573 | |||||||||||||||
|
Noncash accrual of interest on Seller Note
|
1,072 | 3,843 | 2,759 | 1,716 | 986 | |||||||||||||||
|
Amortization of discount on long term debt
|
323 | 1,205 | 891 | 584 | 288 | |||||||||||||||
|
Equity-based compensation expense
|
702 | 2,632 | 1,948 | 1,262 | 576 | |||||||||||||||
|
Allowance for doubtful accounts
|
138 | 380 | 27 | (70 | ) | (212 | ) | |||||||||||||
|
Provision for inventory allowances and writedowns
|
375 | 1,251 | 876 | 500 | 125 | |||||||||||||||
|
Deferred income tax benefit
|
(605 | ) | (1,251 | ) | (1,086 | ) | (1,314 | ) | (441 | ) | ||||||||||
|
Loss on foreign currency transactions
|
29 | 456 | 657 | (202 | ) | (235 | ) | |||||||||||||
|
Unrealized loss on derivative instruments
|
22 | 497 | 639 | (158 | ) | (265 | ) | |||||||||||||
|
Gain on sale of property, plant and equipment
|
(35 | ) | (996 | ) | (983 | ) | (992 | ) | (977 | ) | ||||||||||
|
Changes in operating assets and liabilities:
|
||||||||||||||||||||
|
Accounts receivable
|
(10,974 | ) | (108,362 | ) | (50,453 | ) | (55,773 | ) | (9,929 | ) | ||||||||||
|
Inventory
|
(25,139 | ) | (104,005 | ) | (79,169 | ) | (37,576 | ) | (15,089 | ) | ||||||||||
|
Income tax receivable
|
244 | 18,365 | 18,235 | 17,685 | 525 | |||||||||||||||
|
Prepaid expenses and other current assets
|
(1,776 | ) | (2,160 | ) | (1,017 | ) | (935 | ) | (1,236 | ) | ||||||||||
|
Accounts payable
|
10,238 | 107,259 | 50,347 | 56,743 | 15,454 | |||||||||||||||
|
Accrued expenses and other current liabilities
|
(22,217 | ) | 8,631 | (12,997 | ) | 1,499 | (16,146 | ) | ||||||||||||
|
Income tax payable
|
365 | 2,463 | 2,713 | 2,992 | 956 | |||||||||||||||
|
Other
|
- | 49 | (130 | ) | (213 | ) | (103 | ) | ||||||||||||
|
Net cash provided by (used in) operating activities
|
(33,398 | ) | (33,310 | ) | (40,248 | ) | 387 | (22,598 | ) | |||||||||||
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||||||||
|
Purchases of property, plant and equipment
|
(810 | ) | (2,998 | ) | (2,549 | ) | (2,614 | ) | (346 | ) | ||||||||||
|
Proceeds from the sale of property, plant and equipment
|
37 | 6,291 | 6,276 | 6,270 | 6,208 | |||||||||||||||
|
Net cash provided by (used in) investing activities
|
(773 | ) | 3,293 | 3,727 | 3,656 | 5,862 | ||||||||||||||
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||||||||
|
Deferred financing costs
|
- | (1,309 | ) | (1,309 | ) | - | - | |||||||||||||
|
Principal payments on long term debt and capital lease
|
(11,996 | ) | (7,411 | ) | (4,985 | ) | (3,343 | ) | (1,698 | ) | ||||||||||
|
Distributions to owners of Predecessor interest
|
(4,702 | ) | (5,076 | ) | (5,008 | ) | (4,952 | ) | - | |||||||||||
|
Proceeds from revolving credit facilities
|
196,365 | 324,267 | 175,434 | 89,548 | 41,722 | |||||||||||||||
|
Payments to revolving credit facilities
|
(168,819 | ) | (320,744 | ) | (186,184 | ) | (98,548 | ) | (31,722 | ) | ||||||||||
|
Managed cash overdraft
|
9,529 | 4,809 | 8,288 | 8,586 | 6,015 | |||||||||||||||
|
Net cash provided by (used in) financing activities
|
20,377 | (5,464 | ) | (13,764 | ) | (8,709 | ) | 14,317 | ||||||||||||
|
Effect of exchange rate changes on cash and cash equivalents
|
771 | (1,114 | ) | (622 | ) | 499 | 844 | |||||||||||||
|
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
(13,023 | ) | (36,595 | ) | (50,907 | ) | (4,167 | ) | (1,575 | ) | ||||||||||
|
CASH AND CASH EQUIVALENTS - beginning of period
|
26,269 | 62,864 | 62,864 | 62,864 | 62,864 | |||||||||||||||
|
CASH AND CASH EQUIVALENTS - end of period
|
$ | 13,246 | $ | 26,269 | $ | 11,957 | $ | 58,697 | $ | 61,289 | ||||||||||
5
EDGEN GROUP INC.
UNAUDITED CONDENSED COMBINED CONSOLIDATED SEGMENT INFORMATION
(In thousands)
|
Three months ended
|
||||||||||||||||||||
|
March 31,
2012
|
December 31,
2011
|
September 30,
2011
|
June 30,
2011
|
March 31,
2011
|
||||||||||||||||
|
Sales:
|
||||||||||||||||||||
|
E&I
|
$ | 277,676 | $ | 258,663 | $ | 244,838 | $ | 222,549 | $ | 185,562 | ||||||||||
|
OCTG
|
228,155 | 217,263 | 212,328 | 192,619 | 141,449 | |||||||||||||||
|
Intersegment sales
|
- | - | - | (62 | ) | - | ||||||||||||||
| $ | 505,831 | $ | 475,926 | $ | 457,166 | $ | 415,106 | $ | 327,011 | |||||||||||
|
Intersegment sales:
|
||||||||||||||||||||
|
E&I
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
|
OCTG
|
- | - | - | 62 | - | |||||||||||||||
| $ | - | $ | - | $ | - | $ | 62 | $ | - | |||||||||||
|
Selling, general and administrative expense:
|
||||||||||||||||||||
|
E&I
|
$ | 15,562 | $ | 16,985 | $ | 18,464 | $ | 16,232 | $ | 14,913 | ||||||||||
|
OCTG
|
3,755 | 3,898 | 3,825 | 3,335 | 2,879 | |||||||||||||||
|
Corporate
|
3,711 | 3,122 | 2,816 | 2,561 | 1,936 | |||||||||||||||
| $ | 23,028 | $ | 24,005 | $ | 25,105 | $ | 22,128 | $ | 19,728 | |||||||||||
|
Depreciation and amortization:
|
||||||||||||||||||||
|
E&I
|
$ | 4,576 | $ | 5,200 | $ | 5,296 | $ | 5,303 | $ | 5,292 | ||||||||||
|
OCTG
|
3,663 | 3,630 | 3,637 | 3,627 | 3,626 | |||||||||||||||
|
Corporate
|
- | - | - | - | - | |||||||||||||||
| $ | 8,239 | $ | 8,830 | $ | 8,933 | $ | 8,930 | $ | 8,918 | |||||||||||
|
Income (loss) from operations:
|
||||||||||||||||||||
|
E&I
|
$ | 17,311 | $ | 12,921 | $ | 13,174 | $ | 14,235 | $ | 6,489 | ||||||||||
|
OCTG
|
13,546 | 12,540 | 13,903 | 12,457 | 9,080 | |||||||||||||||
|
Corporate
|
(3,711 | ) | (3,122 | ) | (2,816 | ) | (2,561 | ) | (1,936 | ) | ||||||||||
| $ | 27,146 | $ | 22,339 | $ | 24,261 | $ | 24,131 | $ | 13,633 | |||||||||||
|
March 31,
2012
|
December 31,
2011
|
September 30,
2011
|
June 30,
2011
|
March 31,
2011
|
||||||||||||||||
|
Total assets:
|
||||||||||||||||||||
|
E&I
|
$ | 541,981 | $ | 537,872 | $ | 469,287 | $ | 489,559 | $ | 462,688 | ||||||||||
|
OCTG
|
377,556 | 362,868 | 344,394 | 346,616 | 335,982 | |||||||||||||||
|
Corporate
|
- | - | - | - | - | |||||||||||||||
| $ | 919,537 | $ | 900,740 | $ | 813,681 | $ | 836,175 | $ | 798,670 | |||||||||||
6