Supplemental Consolidating Guarantor and Non-Guarantor Financial Information |
24. |
Supplemental
Consolidating Guarantor and Non-Guarantor Financial
Information: |
The 10.875% Senior Notes
were issued by The Hillman Group, Inc. and are fully and
unconditionally guaranteed on a joint and several basis by The
Hillman Companies, Inc., Hillman Investment Company and each of
Hillman Group’s domestic subsidiaries. The non-guarantor
information presented represents our Australian, Canadian and
Mexican subsidiaries.
The following financial
information presents consolidating statements of operations,
balance sheets, and cash flows for The Hillman Group, Inc., all
guarantor subsidiaries, all non-guarantor subsidiaries and the
eliminations necessary to provide the consolidated results for The
Hillman Companies, Inc. and subsidiaries. For purposes of this
presentation, investments in subsidiaries have been accounted for
using the equity method of accounting. The principal consolidating
adjustments eliminate investment in subsidiary and intercompany
balances and transactions.
Consolidating
Statements of Comprehensive Income
For the year
ended December 31, 2012
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
|
Guarantors
The Hillman
Companies, Inc. |
|
|
Issuer
The Hillman
Group, Inc.
|
|
|
Guarantor
Subsidiaries |
|
|
Non-
Guarantor
Subsidiaries |
|
|
Consolidating
Adjustments |
|
|
Consolidated |
|
Net sales
|
|
$ |
— |
|
|
$ |
517,135 |
|
|
$ |
18,837 |
|
|
$ |
19,493 |
|
|
$ |
— |
|
|
$ |
555,465 |
|
Cost of sales
|
|
|
— |
|
|
|
247,964 |
|
|
|
14,162 |
|
|
|
12,878 |
|
|
|
12 |
|
|
|
275,016 |
|
Selling, general and
administrative expenses
|
|
|
1,043 |
|
|
|
174,667 |
|
|
|
3,717 |
|
|
|
8,903 |
|
|
|
— |
|
|
|
188,330 |
|
Acquisition and integration
expense
|
|
|
— |
|
|
|
3,031 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,031 |
|
Depreciation
|
|
|
— |
|
|
|
21,839 |
|
|
|
88 |
|
|
|
82 |
|
|
|
— |
|
|
|
22,009 |
|
Amortization
|
|
|
18,058 |
|
|
|
3,298 |
|
|
|
— |
|
|
|
396 |
|
|
|
— |
|
|
|
21,752 |
|
Intercompany administrative
(income) expense
|
|
|
— |
|
|
|
(347 |
) |
|
|
— |
|
|
|
347 |
|
|
|
— |
|
|
|
— |
|
Management and transaction
fees to related party
|
|
|
— |
|
|
|
155 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
155 |
|
Other (income) expense,
net
|
|
|
(358 |
) |
|
|
4,877 |
|
|
|
(11 |
) |
|
|
(304 |
) |
|
|
— |
|
|
|
4,204 |
|
Income from
operations
|
|
|
(18,743 |
) |
|
|
61,651 |
|
|
|
881 |
|
|
|
(2,809 |
) |
|
|
(12 |
) |
|
|
40,968 |
|
Intercompany interest
(income) expense
|
|
|
(12,232 |
) |
|
|
12,232 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest expense,
net
|
|
|
(279 |
) |
|
|
41,415 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
41,138 |
|
Interest expense on junior
subordinated debentures
|
|
|
12,610 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,610 |
|
Investment income on trust
common securities
|
|
|
(378 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(378 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before equity
in subsidiaries’ income
|
|
|
(18,464 |
) |
|
|
8,004 |
|
|
|
881 |
|
|
|
(2,811 |
) |
|
|
(12 |
) |
|
|
(12,402 |
) |
Equity in
subsidiaries’ income (loss)
|
|
|
4,786 |
|
|
|
(2,023 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,763 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes
|
|
|
(13,678 |
) |
|
|
5,981 |
|
|
|
881 |
|
|
|
(2,811 |
) |
|
|
(2,775 |
) |
|
|
(12,402 |
) |
Income tax provision
(benefit)
|
|
|
(6,456 |
) |
|
|
1,195 |
|
|
|
333 |
|
|
|
(240 |
) |
|
|
— |
|
|
|
(5,168 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ |
(7,222 |
) |
|
$ |
4,786 |
|
|
$ |
548 |
|
|
$ |
(2,571 |
) |
|
$ |
(2,775 |
) |
|
$ |
(7,234 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,051 |
|
|
|
— |
|
|
|
1,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
(loss)
|
|
$ |
(7,222 |
) |
|
$ |
4,786 |
|
|
$ |
548 |
|
|
$ |
(1,520 |
) |
|
$ |
(2,775 |
) |
|
$ |
(6,183 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidating
Statements of Comprehensive Income
For the year
ended December 31, 2011
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
|
Guarantors
The Hillman
Companies, Inc. |
|
|
Issuer
The Hillman
Group, Inc.
|
|
|
Guarantor
Subsidiaries |
|
|
Non-
Guarantor
Subsidiaries |
|
|
Consolidating
Adjustments |
|
|
Consolidated |
|
Net sales
|
|
$ |
— |
|
|
$ |
465,033 |
|
|
$ |
23,634 |
|
|
$ |
17,859 |
|
|
$ |
— |
|
|
$ |
506,526 |
|
Cost of sales
|
|
|
— |
|
|
|
227,719 |
|
|
|
14,627 |
|
|
|
10,223 |
|
|
|
(78 |
) |
|
|
252,491 |
|
Selling, general and
administrative expenses
|
|
|
19 |
|
|
|
155,891 |
|
|
|
7,026 |
|
|
|
6,830 |
|
|
|
— |
|
|
|
169,766 |
|
Acquisition and integration
expense
|
|
|
— |
|
|
|
2,642 |
|
|
|
— |
|
|
|
163 |
|
|
|
— |
|
|
|
2,805 |
|
Depreciation
|
|
|
— |
|
|
|
21,139 |
|
|
|
121 |
|
|
|
73 |
|
|
|
— |
|
|
|
21,333 |
|
Amortization
|
|
|
18,433 |
|
|
|
2,077 |
|
|
|
207 |
|
|
|
— |
|
|
|
— |
|
|
|
20,717 |
|
Intercompany administrative
(income) expense
|
|
|
— |
|
|
|
(240 |
) |
|
|
— |
|
|
|
238 |
|
|
|
2 |
|
|
|
— |
|
Management and transaction
fees to related party
|
|
|
— |
|
|
|
110 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
110 |
|
Other (income) expense,
net
|
|
|
(19 |
) |
|
|
447 |
|
|
|
(16 |
) |
|
|
441 |
|
|
|
(2 |
) |
|
|
851 |
|
Income from
operations
|
|
|
(18,433 |
) |
|
|
55,248 |
|
|
|
1,669 |
|
|
|
(109 |
) |
|
|
78 |
|
|
|
38,453 |
|
Intercompany interest
(income) expense
|
|
|
(12,231 |
) |
|
|
12,231 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest expense,
net
|
|
|
(426 |
) |
|
|
41,105 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
40,679 |
|
Interest expense on junior
subordinated debentures
|
|
|
12,610 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,610 |
|
Investment income on trust
common securities
|
|
|
(378 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(378 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before equity
in subsidiaries’ income
|
|
|
(18,008 |
) |
|
|
1,912 |
|
|
|
1,669 |
|
|
|
(109 |
) |
|
|
78 |
|
|
|
(14,458 |
) |
Equity in
subsidiaries’ income (loss)
|
|
|
2,599 |
|
|
|
836 |
|
|
|
— |
|
|
|
— |
|
|
|
(3,435 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes
|
|
|
(15,409 |
) |
|
|
2,748 |
|
|
|
1,669 |
|
|
|
(109 |
) |
|
|
(3,357 |
) |
|
|
(14,458 |
) |
Income tax provision
(benefit)
|
|
|
(5,552 |
) |
|
|
149 |
|
|
|
608 |
|
|
|
116 |
|
|
|
— |
|
|
|
(4,679 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ |
(9,857 |
) |
|
$ |
2,599 |
|
|
$ |
1,061 |
|
|
$ |
(225 |
) |
|
$ |
(3,357 |
) |
|
$ |
(9,779 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(179 |
) |
|
|
— |
|
|
|
(179 |
) |
Change in derivative
security value
|
|
|
— |
|
|
|
624 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
(loss)
|
|
$ |
(9,857 |
) |
|
$ |
3,223 |
|
|
$ |
1,061 |
|
|
$ |
(404 |
) |
|
$ |
(3,357 |
) |
|
$ |
(9,334 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidating
Statements of Comprehensive Income
For the seven
months ended December 31, 2010
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
|
Guarantors
The Hillman
Companies, Inc. |
|
|
Issuer
The Hillman
Group, Inc.
|
|
|
Guarantor
Subsidiaries |
|
|
Non-
Guarantor
Subsidiaries |
|
|
Consolidating
Adjustments |
|
|
Consolidated |
|
Net sales
|
|
$ |
— |
|
|
$ |
258,391 |
|
|
$ |
10,087 |
|
|
$ |
8,202 |
|
|
$ |
— |
|
|
$ |
276,680 |
|
Cost of sales
|
|
|
— |
|
|
|
124,556 |
|
|
|
7,709 |
|
|
|
4,241 |
|
|
|
48 |
|
|
|
136,554 |
|
Selling, general and
administrative expenses
|
|
|
283 |
|
|
|
84,773 |
|
|
|
1,964 |
|
|
|
3,740 |
|
|
|
— |
|
|
|
90,760 |
|
Acquisition and integration
expense
|
|
|
— |
|
|
|
11,145 |
|
|
|
— |
|
|
|
5 |
|
|
|
— |
|
|
|
11,150 |
|
Depreciation
|
|
|
— |
|
|
|
10,924 |
|
|
|
50 |
|
|
|
33 |
|
|
|
— |
|
|
|
11,007 |
|
Amortization
|
|
|
10,669 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10,669 |
|
Intercompany administrative
(income) expense
|
|
|
— |
|
|
|
(140 |
) |
|
|
— |
|
|
|
140 |
|
|
|
— |
|
|
|
— |
|
Management and transaction
fees to related party
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other (income) expense,
net
|
|
|
(283 |
) |
|
|
450 |
|
|
|
2 |
|
|
|
(314 |
) |
|
|
— |
|
|
|
(145 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
(10,669 |
) |
|
|
26,683 |
|
|
|
362 |
|
|
|
357 |
|
|
|
(48 |
) |
|
|
16,685 |
|
Intercompany interest
(income) expense
|
|
|
(7,135 |
) |
|
|
7,136 |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
Interest expense,
net
|
|
|
(248 |
) |
|
|
20,959 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
20,712 |
|
Interest on mandatorily
redeemable preferred stock and management purchased
options
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest expense on junior
subordinated debentures
|
|
|
7,356 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,356 |
|
Investment income on trust
common securities
|
|
|
(220 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(220 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before equity
in subsidiaries’ income
|
|
|
(10,422 |
) |
|
|
(1,412 |
) |
|
|
362 |
|
|
|
357 |
|
|
|
(48 |
) |
|
|
(11,163 |
) |
Equity in
subsidiaries’ income (loss)
|
|
|
(977 |
) |
|
|
435 |
|
|
|
— |
|
|
|
— |
|
|
|
542 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes
|
|
|
(11,399 |
) |
|
|
(977 |
) |
|
|
362 |
|
|
|
357 |
|
|
|
494 |
|
|
|
(11,163 |
) |
Income tax provision
(benefit)
|
|
|
(3,409 |
) |
|
|
— |
|
|
|
138 |
|
|
|
146 |
|
|
|
— |
|
|
|
(3,125 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ |
(7,990 |
) |
|
$ |
(977 |
) |
|
$ |
224 |
|
|
$ |
211 |
|
|
$ |
494 |
|
|
$ |
(8,038 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
Change in derivative
security value
|
|
|
— |
|
|
|
(624 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(624 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
(loss)
|
|
$ |
(7,990 |
) |
|
$ |
(1,601 |
) |
|
$ |
224 |
|
|
$ |
210 |
|
|
$ |
494 |
|
|
$ |
(8,663 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidating
Statements of Comprehensive Income
For the five
months ended May 28, 2010
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Predecessor |
|
|
|
Guarantors
The Hillman
Companies, Inc. |
|
|
Issuer
The Hillman
Group, Inc.
|
|
|
Guarantor
Subsidiaries |
|
|
Non-
Guarantor
Subsidiaries |
|
|
Consolidating
Adjustments |
|
|
Consolidated |
|
Net sales
|
|
$ |
— |
|
|
$ |
175,470 |
|
|
$ |
6,244 |
|
|
$ |
4,002 |
|
|
$ |
— |
|
|
$ |
185,716 |
|
Cost of sales
|
|
|
— |
|
|
|
83,169 |
|
|
|
4,679 |
|
|
|
1,925 |
|
|
|
— |
|
|
|
89,773 |
|
Selling, general and
administrative expenses
|
|
|
19,069 |
|
|
|
60,784 |
|
|
|
1,396 |
|
|
|
1,601 |
|
|
|
— |
|
|
|
82,850 |
|
Acquisition and
integration
|
|
|
— |
|
|
|
11,342 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,342 |
|
Depreciation
|
|
|
— |
|
|
|
7,192 |
|
|
|
32 |
|
|
|
59 |
|
|
|
— |
|
|
|
7,283 |
|
Amortization
|
|
|
2,663 |
|
|
|
— |
|
|
|
15 |
|
|
|
— |
|
|
|
— |
|
|
|
2,678 |
|
Intercompany administrative
(income) expense
|
|
|
— |
|
|
|
(100 |
) |
|
|
— |
|
|
|
100 |
|
|
|
— |
|
|
|
— |
|
Management and transaction
fees to related party
|
|
|
438 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
438 |
|
Other (income) expense,
net
|
|
|
(16 |
) |
|
|
(11 |
) |
|
|
217 |
|
|
|
(76 |
) |
|
|
— |
|
|
|
114 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
(22,154 |
) |
|
|
13,094 |
|
|
|
(95 |
) |
|
|
393 |
|
|
|
— |
|
|
|
(8,762 |
) |
Intercompany interest
(income) expense
|
|
|
(5,097 |
) |
|
|
5,096 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Interest expense,
net
|
|
|
(154 |
) |
|
|
8,480 |
|
|
|
— |
|
|
|
2 |
|
|
|
(1 |
) |
|
|
8,327 |
|
Interest on mandatorily
redeemable preferred stock and management purchased
options
|
|
|
5,488 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,488 |
|
Interest expense on junior
subordinated debentures
|
|
|
5,254 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,254 |
|
Investment income on trust
common securities
|
|
|
(158 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(158 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before equity
in subsidiaries’ income
|
|
|
(27,487 |
) |
|
|
(482 |
) |
|
|
(95 |
) |
|
|
391 |
|
|
|
— |
|
|
|
(27,673 |
) |
Equity in
subsidiaries’ income (loss)
|
|
|
(398 |
) |
|
|
84 |
|
|
|
— |
|
|
|
— |
|
|
|
314 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes
|
|
|
(27,885 |
) |
|
|
(398 |
) |
|
|
(95 |
) |
|
|
391 |
|
|
|
314 |
|
|
|
(27,673 |
) |
Income tax provision
(benefit)
|
|
|
(2,677 |
) |
|
|
— |
|
|
|
48 |
|
|
|
164 |
|
|
|
— |
|
|
|
(2,465 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ |
(25,208 |
) |
|
$ |
(398 |
) |
|
$ |
(143 |
) |
|
$ |
227 |
|
|
$ |
314 |
|
|
$ |
(25,208 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income
(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17 |
|
|
|
— |
|
|
|
17 |
|
Change in derivative
security value
|
|
|
— |
|
|
|
1,161 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income
(loss)
|
|
$ |
(25,208 |
) |
|
$ |
763 |
|
|
$ |
(143 |
) |
|
$ |
244 |
|
|
$ |
314 |
|
|
$ |
(24,030 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidating
Balance Sheet
As of
December 31, 2012
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
|
Guarantors
The
Hillman
Companies, Inc.
|
|
|
Issuer
The Hillman
Group, Inc.
|
|
|
Guarantor
Subsidiaries |
|
|
Non-
Guarantor
Subsidiaries |
|
|
Consolidating
Adjustments |
|
|
Consolidated |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$ |
1 |
|
|
$ |
62,917 |
|
|
$ |
429 |
|
|
$ |
2,201 |
|
|
$ |
— |
|
|
$ |
65,548 |
|
Restricted
investments
|
|
|
846 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
846 |
|
Accounts
receivable
|
|
|
— |
|
|
|
65,916 |
|
|
|
6,473 |
|
|
|
(10,045 |
) |
|
|
— |
|
|
|
62,344 |
|
Inventories
|
|
|
— |
|
|
|
105,028 |
|
|
|
4,678 |
|
|
|
4,404 |
|
|
|
(272 |
) |
|
|
113,838 |
|
Deferred income
taxes
|
|
|
10,359 |
|
|
|
— |
|
|
|
610 |
|
|
|
221 |
|
|
|
(726 |
) |
|
|
10,464 |
|
Other current
assets
|
|
|
— |
|
|
|
6,526 |
|
|
|
145 |
|
|
|
1,835 |
|
|
|
— |
|
|
|
8,506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
|
11,206 |
|
|
|
240,387 |
|
|
|
12,335 |
|
|
|
(1,384 |
) |
|
|
(998 |
) |
|
|
261,546 |
|
Intercompany notes
receivable
|
|
|
105,446 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(105,446 |
) |
|
|
— |
|
Investments in
subsidiaries
|
|
|
(637,376 |
) |
|
|
27,204 |
|
|
|
— |
|
|
|
— |
|
|
|
610,172 |
|
|
|
— |
|
Property and
equipment
|
|
|
— |
|
|
|
67,902 |
|
|
|
191 |
|
|
|
399 |
|
|
|
— |
|
|
|
68,492 |
|
Goodwill
|
|
|
418,946 |
|
|
|
24,512 |
|
|
|
58 |
|
|
|
11,542 |
|
|
|
280 |
|
|
|
455,338 |
|
Other
intangibles
|
|
|
311,832 |
|
|
|
46,047 |
|
|
|
250 |
|
|
|
8,515 |
|
|
|
— |
|
|
|
366,644 |
|
Restricted
investments
|
|
|
3,399 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,399 |
|
Deferred income
taxes
|
|
|
29,492 |
|
|
|
— |
|
|
|
(411 |
) |
|
|
977 |
|
|
|
(30,058 |
) |
|
|
— |
|
Deferred financing
fees
|
|
|
— |
|
|
|
12,858 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,858 |
|
Investment in trust common
securities
|
|
|
3,261 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,261 |
|
Other assets
|
|
|
— |
|
|
|
3,521 |
|
|
|
25 |
|
|
|
709 |
|
|
|
— |
|
|
|
4,255 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ |
246,206 |
|
|
$ |
422,431 |
|
|
$ |
12,448 |
|
|
$ |
20,758 |
|
|
$ |
473,950 |
|
|
$ |
1,175,793 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$ |
— |
|
|
$ |
31,873 |
|
|
$ |
517 |
|
|
$ |
181 |
|
|
$ |
— |
|
|
$ |
32,571 |
|
Current portion of senior
term loans
|
|
|
— |
|
|
|
3,200 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,200 |
|
Current portion of
capitalized lease and other obligations
|
|
|
— |
|
|
|
819 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
819 |
|
Accrued
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
|
|
— |
|
|
|
8,930 |
|
|
|
217 |
|
|
|
204 |
|
|
|
— |
|
|
|
9,351 |
|
Pricing
allowances
|
|
|
— |
|
|
|
3,457 |
|
|
|
3 |
|
|
|
597 |
|
|
|
— |
|
|
|
4,057 |
|
Income and other
taxes
|
|
|
(625 |
) |
|
|
2,447 |
|
|
|
25 |
|
|
|
645 |
|
|
|
— |
|
|
|
2,492 |
|
Interest
|
|
|
— |
|
|
|
2,868 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,868 |
|
Deferred
compensation
|
|
|
846 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
846 |
|
Other accrued
expenses
|
|
|
— |
|
|
|
9,822 |
|
|
|
40 |
|
|
|
1,535 |
|
|
|
— |
|
|
|
11,397 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
221 |
|
|
|
63,416 |
|
|
|
802 |
|
|
|
3,162 |
|
|
|
— |
|
|
|
67,601 |
|
Consolidating
Balance Sheet
As of
December 31, 2012
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
|
Guarantors
The Hillman
Companies, Inc.
|
|
|
Issuer
The Hillman
Group, Inc.
|
|
|
Guarantor
Subsidiaries |
|
|
Non-
Guarantor
Subsidiaries |
|
|
Consolidating
Adjustments |
|
|
Consolidated |
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY (CONTINUED) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intercompany debt
payable
|
|
|
— |
|
|
|
105,446 |
|
|
|
— |
|
|
|
— |
|
|
|
(105,446 |
) |
|
|
— |
|
Long term senior term
loans
|
|
|
— |
|
|
|
307,727 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
307,727 |
|
Long term portion of
capitalized lease and other obligations
|
|
|
— |
|
|
|
245 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
245 |
|
Long term senior
notes
|
|
|
— |
|
|
|
272,942 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
272,942 |
|
Junior subordinated
debentures
|
|
|
115,132 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
115,132 |
|
Deferred
compensation
|
|
|
3,399 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,399 |
|
Deferred income taxes,
net
|
|
|
146,042 |
|
|
|
— |
|
|
|
219 |
|
|
|
2,472 |
|
|
|
(30,784 |
) |
|
|
117,949 |
|
Other non-current
liabilities
|
|
|
714 |
|
|
|
5,473 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
265,508 |
|
|
|
755,249 |
|
|
|
1,021 |
|
|
|
5,634 |
|
|
|
(136,230 |
) |
|
|
891,182 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock with put
options:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $.01 par,
5,000 shares authorized, 198.4 issued and outstanding at
December 31, 2012.
|
|
|
14,116 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,116 |
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, $.01 par,
5,000 shares authorized, none issued and outstanding at
December 31, 2012.
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Common Stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $.01 par,
5,000 shares authorized, 4,801.6 issued and outstanding at
December 31, 2012.
|
|
|
— |
|
|
|
— |
|
|
|
50 |
|
|
|
— |
|
|
|
(50 |
) |
|
|
— |
|
Additional paid-in
capital
|
|
|
117,261 |
|
|
|
(131,642 |
) |
|
|
10,304 |
|
|
|
17,192 |
|
|
|
281,560 |
|
|
|
294,675 |
|
Accumulated
deficit
|
|
|
(150,679 |
) |
|
|
(201,176 |
) |
|
|
1,073 |
|
|
|
(2,458 |
) |
|
|
328,189 |
|
|
|
(25,051 |
) |
Accumulated other
comprehensive loss
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
390 |
|
|
|
481 |
|
|
|
871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’
equity
|
|
|
(33,418 |
) |
|
|
(332,818 |
) |
|
|
11,427 |
|
|
|
15,124 |
|
|
|
610,180 |
|
|
|
270,495 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders’ equity
|
|
$ |
246,206 |
|
|
$ |
422,431 |
|
|
$ |
12,448 |
|
|
$ |
20,758 |
|
|
$ |
473,950 |
|
|
$ |
1,175,793 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidating
Balance Sheet
As of
December 31, 2011
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
|
Guarantors
The Hillman
Companies, Inc. |
|
|
Issuer
The Hillman
Group, Inc.
|
|
|
Guarantor
Subsidiaries |
|
|
Non-
Guarantor
Subsidiaries |
|
|
Consolidating
Adjustments |
|
|
Consolidated |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$ |
1 |
|
|
$ |
8,852 |
|
|
$ |
547 |
|
|
$ |
2,627 |
|
|
$ |
— |
|
|
$ |
12,027 |
|
Restricted
investments
|
|
|
364 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
364 |
|
Accounts
receivable
|
|
|
— |
|
|
|
59,429 |
|
|
|
1,273 |
|
|
|
2,863 |
|
|
|
— |
|
|
|
63,565 |
|
Inventories
|
|
|
— |
|
|
|
95,757 |
|
|
|
5,117 |
|
|
|
3,361 |
|
|
|
(260 |
) |
|
|
103,975 |
|
Deferred income
taxes
|
|
|
8,176 |
|
|
|
1,676 |
|
|
|
587 |
|
|
|
211 |
|
|
|
(742 |
) |
|
|
9,908 |
|
Other current
assets
|
|
|
— |
|
|
|
10,620 |
|
|
|
3,976 |
|
|
|
(8,950 |
) |
|
|
— |
|
|
|
5,646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
|
|
8,541 |
|
|
|
176,334 |
|
|
|
11,500 |
|
|
|
112 |
|
|
|
(1,002 |
) |
|
|
195,485 |
|
Intercompany notes
receivable
|
|
|
105,446 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(105,446 |
) |
|
|
— |
|
Investments in
subsidiaries
|
|
|
(628,481 |
) |
|
|
91,378 |
|
|
|
— |
|
|
|
— |
|
|
|
537,103 |
|
|
|
— |
|
Property and
equipment
|
|
|
— |
|
|
|
65,897 |
|
|
|
174 |
|
|
|
271 |
|
|
|
— |
|
|
|
66,342 |
|
Goodwill
|
|
|
419,752 |
|
|
|
26,409 |
|
|
|
58 |
|
|
|
10,944 |
|
|
|
280 |
|
|
|
457,443 |
|
Other
intangibles
|
|
|
329,891 |
|
|
|
47,655 |
|
|
|
250 |
|
|
|
8,406 |
|
|
|
— |
|
|
|
386,202 |
|
Restricted
investments
|
|
|
3,390 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,390 |
|
Deferred income
taxes
|
|
|
28,200 |
|
|
|
321 |
|
|
|
(108 |
) |
|
|
561 |
|
|
|
(28,974 |
) |
|
|
— |
|
Deferred financing
fees
|
|
|
— |
|
|
|
13,055 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13,055 |
|
Investment in trust common
securities
|
|
|
3,261 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,261 |
|
Other assets
|
|
|
— |
|
|
|
1,676 |
|
|
|
25 |
|
|
|
972 |
|
|
|
— |
|
|
|
2,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ |
270,000 |
|
|
$ |
422,725 |
|
|
$ |
11,899 |
|
|
$ |
21,266 |
|
|
$ |
401,961 |
|
|
$ |
1,127,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$ |
— |
|
|
$ |
29,997 |
|
|
$ |
655 |
|
|
$ |
621 |
|
|
$ |
— |
|
|
$ |
31,273 |
|
Current portion of senior
term loans
|
|
|
— |
|
|
|
3,200 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,200 |
|
Current portion of
capitalized lease obligations
|
|
|
— |
|
|
|
31 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
31 |
|
Additional acquisition
consideration
|
|
|
— |
|
|
|
12,387 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,387 |
|
Accrued
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
|
|
— |
|
|
|
5,303 |
|
|
|
110 |
|
|
|
215 |
|
|
|
— |
|
|
|
5,628 |
|
Pricing
allowances
|
|
|
— |
|
|
|
5,291 |
|
|
|
— |
|
|
|
437 |
|
|
|
— |
|
|
|
5,728 |
|
Income and other
taxes
|
|
|
(549 |
) |
|
|
2,342 |
|
|
|
15 |
|
|
|
445 |
|
|
|
— |
|
|
|
2,253 |
|
Interest
|
|
|
— |
|
|
|
2,203 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,203 |
|
Deferred
compensation
|
|
|
364 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
364 |
|
Other accrued
expenses
|
|
|
— |
|
|
|
8,762 |
|
|
|
39 |
|
|
|
406 |
|
|
|
— |
|
|
|
9,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current
liabilities
|
|
|
(185 |
) |
|
|
69,516 |
|
|
|
819 |
|
|
|
2,124 |
|
|
|
— |
|
|
|
72,274 |
|
Consolidating
Balance Sheet
As of
December 31, 2011
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
|
Guarantors
The Hillman
Companies, Inc.
|
|
|
Issuer
The Hillman
Group, Inc.
|
|
|
Guarantor
Subsidiaries |
|
|
Non-
Guarantor
Subsidiaries |
|
|
Consolidating
Adjustments |
|
|
Consolidated |
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY (CONTINUED) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intercompany debt
payable
|
|
|
— |
|
|
|
105,446 |
|
|
|
— |
|
|
|
— |
|
|
|
(105,446 |
) |
|
|
— |
|
Long term senior term
loans
|
|
|
— |
|
|
|
310,550 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
310,550 |
|
Bank revolving
credit
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Long term portion of
capitalized lease obligations
|
|
|
— |
|
|
|
103 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
103 |
|
Long term senior
notes
|
|
|
— |
|
|
|
204,248 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
204,248 |
|
Junior subordinated
debentures
|
|
|
115,411 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
115,411 |
|
Deferred
compensation
|
|
|
3,390 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,390 |
|
Deferred income taxes,
net
|
|
|
149,704 |
|
|
|
448 |
|
|
|
199 |
|
|
|
3,253 |
|
|
|
(29,716 |
) |
|
|
123,888 |
|
Other non-current
liabilities
|
|
|
— |
|
|
|
7,193 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
268,320 |
|
|
|
697,504 |
|
|
|
1,018 |
|
|
|
5,377 |
|
|
|
(135,162 |
) |
|
|
837,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock with put
options:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $.01 par,
5,000 shares authorized, 198.4 issued and outstanding at
December 31, 2011.
|
|
|
12,247 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,247 |
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’
Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, $.01 par,
5,000 shares authorized, none issued and outstanding at
December 31, 2011.
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Common Stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $.01 par,
5,000 shares authorized, 4,801.6 issued and outstanding at
December 31, 2011.
|
|
|
— |
|
|
|
— |
|
|
|
50 |
|
|
|
— |
|
|
|
(50 |
) |
|
|
— |
|
Additional paid-in
capital
|
|
|
117,221 |
|
|
|
(68,624 |
) |
|
|
10,306 |
|
|
|
16,437 |
|
|
|
221,204 |
|
|
|
296,544 |
|
Accumulated
deficit
|
|
|
(127,788 |
) |
|
|
(206,155 |
) |
|
|
525 |
|
|
|
113 |
|
|
|
315,488 |
|
|
|
(17,817 |
) |
Accumulated other
comprehensive loss
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(661 |
) |
|
|
481 |
|
|
|
(180 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders’
equity
|
|
|
(10,567 |
) |
|
|
(274,779 |
) |
|
|
10,881 |
|
|
|
15,889 |
|
|
|
537,123 |
|
|
|
278,547 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders’ equity
|
|
$ |
270,000 |
|
|
$ |
422,725 |
|
|
$ |
11,899 |
|
|
$ |
21,266 |
|
|
$ |
401,961 |
|
|
$ |
1,127,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidating
Statement of Cash Flows
For the year
ended December 31, 2012
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
|
Guarantors
The
Hillman
Companies, Inc.
|
|
|
Issuer
The Hillman
Group, Inc.
|
|
|
Guarantor
Subsidiaries
|
|
|
Non-
Guarantor
Subsidiaries
|
|
|
Consolidating
Adjustments
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ |
(12,008 |
) |
|
$ |
6,809 |
|
|
$ |
548 |
|
|
$ |
(2,571 |
) |
|
$ |
(12 |
) |
|
$ |
(7,234 |
) |
Adjustments to reconcile
net loss to net cash (used for) provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
18,058 |
|
|
|
25,137 |
|
|
|
88 |
|
|
|
478 |
|
|
|
— |
|
|
|
43,761 |
|
Dispositions of property
and equipment
|
|
|
— |
|
|
|
271 |
|
|
|
21 |
|
|
|
— |
|
|
|
— |
|
|
|
292 |
|
Deferred income tax
provision (benefit)
|
|
|
(6,382 |
) |
|
|
1,686 |
|
|
|
300 |
|
|
|
(1,207 |
) |
|
|
— |
|
|
|
(5,603 |
) |
Deferred financing and
original issue discount amortization
|
|
|
(279 |
) |
|
|
2,459 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,180 |
|
Stock-based compensation
expense
|
|
|
714 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
714 |
|
Other non-cash interest and
change in value of interest rate swap
|
|
|
— |
|
|
|
(787 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(787 |
) |
Changes in operating
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
— |
|
|
|
2,431 |
|
|
|
(50 |
) |
|
|
(1,005 |
) |
|
|
— |
|
|
|
1,376 |
|
Inventories
|
|
|
— |
|
|
|
(9,788 |
) |
|
|
439 |
|
|
|
(1,043 |
) |
|
|
12 |
|
|
|
(10,380 |
) |
Other assets
|
|
|
— |
|
|
|
(6,003 |
) |
|
|
(1,319 |
) |
|
|
3,391 |
|
|
|
— |
|
|
|
(3,931 |
) |
Accounts payable
|
|
|
— |
|
|
|
(568 |
) |
|
|
(138 |
) |
|
|
(440 |
) |
|
|
— |
|
|
|
(1,146 |
) |
Other accrued
liabilities
|
|
|
(76 |
) |
|
|
3,623 |
|
|
|
121 |
|
|
|
1,478 |
|
|
|
— |
|
|
|
5,146 |
|
Other items, net
|
|
|
(27 |
) |
|
|
(1,645 |
) |
|
|
(3 |
) |
|
|
705 |
|
|
|
— |
|
|
|
(970 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used
for) operating activities
|
|
|
— |
|
|
|
23,625 |
|
|
|
7 |
|
|
|
(214 |
) |
|
|
— |
|
|
|
23,418 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from sale of
property and equipment
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
Capital
expenditures
|
|
|
— |
|
|
|
(23,973 |
) |
|
|
(128 |
) |
|
|
(212 |
) |
|
|
— |
|
|
|
(24,313 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used for investing
activities
|
|
|
— |
|
|
|
(23,973 |
) |
|
|
(125 |
) |
|
|
(212 |
) |
|
|
— |
|
|
|
(24,310 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayments of senior term
loans
|
|
|
— |
|
|
|
(3,200 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,200 |
) |
Borrowings of revolving
credit loans
|
|
|
— |
|
|
|
19,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19,000 |
|
Repayments of revolving
credit loans
|
|
|
— |
|
|
|
(19,000 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(19,000 |
) |
Payment of additional
acquisition consideration
|
|
|
— |
|
|
|
(12,387 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,387 |
) |
Principal payments under
capitalized lease obligations
|
|
|
— |
|
|
|
(47 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(47 |
) |
Borrowings under other
credit obligations
|
|
|
— |
|
|
|
1,119 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,119 |
|
Repayments of other credit
obligations
|
|
|
— |
|
|
|
(297 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(297 |
) |
Borrowings of senior
notes
|
|
|
— |
|
|
|
65,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
65,000 |
|
Premium on senior
notes
|
|
|
— |
|
|
|
4,225 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used for)
provided by financing activities
|
|
|
— |
|
|
|
54,413 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
54,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in
cash and cash equivalents
|
|
|
— |
|
|
|
54,065 |
|
|
|
(118 |
) |
|
|
(426 |
) |
|
|
— |
|
|
|
53,521 |
|
Cash and cash equivalents
at beginning of period
|
|
|
1 |
|
|
|
8,852 |
|
|
|
547 |
|
|
|
2,627 |
|
|
|
— |
|
|
|
12,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
at end of period
|
|
$ |
1 |
|
|
$ |
62,917 |
|
|
$ |
429 |
|
|
$ |
2,201 |
|
|
$ |
— |
|
|
$ |
65,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidating
Statement of Cash Flows
For the year
ended December 31, 2011
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
|
Guarantors
The
Hillman
Companies, Inc.
|
|
|
Issuer
The Hillman
Group, Inc.
|
|
|
Guarantor
Subsidiaries
|
|
|
Non-
Guarantor
Subsidiaries
|
|
|
Consolidating
Adjustments
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ |
(12,456 |
) |
|
$ |
1,763 |
|
|
$ |
1,061 |
|
|
$ |
(225 |
) |
|
$ |
78 |
|
|
$ |
(9,779 |
) |
Adjustments to reconcile
net loss to net cash (used for) provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
18,433 |
|
|
|
23,216 |
|
|
|
328 |
|
|
|
73 |
|
|
|
— |
|
|
|
42,050 |
|
Dispositions of property
and equipment
|
|
|
— |
|
|
|
42 |
|
|
|
11 |
|
|
|
— |
|
|
|
— |
|
|
|
53 |
|
Deferred income tax
provision (benefit)
|
|
|
(8,866 |
) |
|
|
(203 |
) |
|
|
1,350 |
|
|
|
3,085 |
|
|
|
— |
|
|
|
(4,634 |
) |
Deferred financing and
original issue discount amortization
|
|
|
(803 |
) |
|
|
2,814 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,011 |
|
Other non-cash interest and
change in value of interest rate swap
|
|
|
— |
|
|
|
1,250 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,250 |
|
Changes in operating
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
— |
|
|
|
(6,673 |
) |
|
|
2,162 |
|
|
|
70 |
|
|
|
— |
|
|
|
(4,441 |
) |
Inventories
|
|
|
— |
|
|
|
(7,647 |
) |
|
|
5,527 |
|
|
|
23 |
|
|
|
(78 |
) |
|
|
(2,175 |
) |
Other assets
|
|
|
— |
|
|
|
(4,691 |
) |
|
|
92 |
|
|
|
1,348 |
|
|
|
— |
|
|
|
(3,251 |
) |
Accounts payable
|
|
|
— |
|
|
|
387 |
|
|
|
(4 |
) |
|
|
289 |
|
|
|
— |
|
|
|
672 |
|
Other accrued
liabilities
|
|
|
(265 |
) |
|
|
4,053 |
|
|
|
(1,708 |
) |
|
|
211 |
|
|
|
— |
|
|
|
2,291 |
|
Other items, net
|
|
|
3,957 |
|
|
|
8,989 |
|
|
|
(9,361 |
) |
|
|
(3,419 |
) |
|
|
— |
|
|
|
166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used
for) operating activities
|
|
|
— |
|
|
|
23,300 |
|
|
|
(542 |
) |
|
|
1,455 |
|
|
|
— |
|
|
|
24,213 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment for TagWorks
acquisition
|
|
|
— |
|
|
|
(40,271 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(40,271 |
) |
Payment for Ook
acquisition
|
|
|
— |
|
|
|
(15,323 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(15,323 |
) |
Capital
expenditures
|
|
|
— |
|
|
|
(17,778 |
) |
|
|
(30 |
) |
|
|
(127 |
) |
|
|
— |
|
|
|
(17,935 |
) |
Other, net
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used for investing
activities
|
|
|
— |
|
|
|
(73,372 |
) |
|
|
(30 |
) |
|
|
(127 |
) |
|
|
— |
|
|
|
(73,529 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings of senior term
loans
|
|
|
— |
|
|
|
30,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
30,000 |
|
Repayments of senior term
loans
|
|
|
— |
|
|
|
(2,975 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,975 |
) |
Discount on senior term
loans
|
|
|
— |
|
|
|
(2,000 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,000 |
) |
Borrowings of revolving
credit loans
|
|
|
— |
|
|
|
9,444 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,444 |
|
Repayments of revolving
credit loans
|
|
|
— |
|
|
|
(21,444 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(21,444 |
) |
Payment of additional
acquisition consideration
|
|
|
— |
|
|
|
(12,490 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,490 |
) |
Principal payments under
capitalized lease obligations
|
|
|
— |
|
|
|
(30 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(30 |
) |
Borrowings of senior
notes
|
|
|
— |
|
|
|
50,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
50,000 |
|
Premium on senior
notes
|
|
|
— |
|
|
|
4,625 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,625 |
|
Financing fees,
net
|
|
|
— |
|
|
|
(1,372 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,372 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used for)
provided by financing activities
|
|
|
— |
|
|
|
53,758 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
53,758 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in
cash and cash equivalents
|
|
|
— |
|
|
|
3,686 |
|
|
|
(572 |
) |
|
|
1,328 |
|
|
|
— |
|
|
|
4,442 |
|
Cash and cash equivalents
at beginning of period
|
|
|
1 |
|
|
|
5,166 |
|
|
|
1,119 |
|
|
|
1,299 |
|
|
|
— |
|
|
|
7,585 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
at end of period
|
|
$ |
1 |
|
|
$ |
8,852 |
|
|
$ |
547 |
|
|
$ |
2,627 |
|
|
$ |
— |
|
|
$ |
12,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidating
Statement of Cash Flows
For the seven
months ended December 31, 2010
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor |
|
|
|
Guarantors
The Hillman
Companies, Inc. |
|
|
Issuer
The Hillman
Group, Inc.
|
|
|
Guarantor
Subsidiaries |
|
|
Non-
Guarantor
Subsidiaries |
|
|
Consolidating
Adjustments |
|
|
Consolidated |
|
|
|
|
|
|
|
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ |
(7,013 |
) |
|
$ |
(1,401 |
) |
|
$ |
224 |
|
|
$ |
211 |
|
|
$ |
(59 |
) |
|
$ |
(8,038 |
) |
Adjustments to reconcile
net loss to net cash (used for) provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
10,669 |
|
|
|
10,924 |
|
|
|
50 |
|
|
|
33 |
|
|
|
— |
|
|
|
21,676 |
|
Dispositions of property
and equipment
|
|
|
— |
|
|
|
60 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
60 |
|
Deferred income tax
provision (benefit)
|
|
|
(8,031 |
) |
|
|
(1,125 |
) |
|
|
176 |
|
|
|
3,320 |
|
|
|
— |
|
|
|
(5,660 |
) |
Deferred financing and
original issue discount amortization
|
|
|
2,590 |
|
|
|
(1,296 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,294 |
|
Other non-cash interest and
change in value of interest rate swap
|
|
|
— |
|
|
|
392 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
392 |
|
Changes in operating
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
— |
|
|
|
14,195 |
|
|
|
727 |
|
|
|
(236 |
) |
|
|
— |
|
|
|
14,686 |
|
Inventories
|
|
|
— |
|
|
|
(11,030 |
) |
|
|
(100 |
) |
|
|
(590 |
) |
|
|
59 |
|
|
|
(11,661 |
) |
Other assets
|
|
|
— |
|
|
|
(2,626 |
) |
|
|
38 |
|
|
|
1,444 |
|
|
|
(12 |
) |
|
|
(1,156 |
) |
Accounts payable
|
|
|
— |
|
|
|
7,229 |
|
|
|
(374 |
) |
|
|
196 |
|
|
|
— |
|
|
|
7,051 |
|
Other accrued
liabilities
|
|
|
(69 |
) |
|
|
(11,228 |
) |
|
|
4 |
|
|
|
417 |
|
|
|
5,096 |
|
|
|
(5,780 |
) |
Other items, net
|
|
|
199,620 |
|
|
|
(214,228 |
) |
|
|
21,567 |
|
|
|
(3,540 |
) |
|
|
(5,084 |
) |
|
|
(1,665 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used
for) operating activities
|
|
|
197,766 |
|
|
|
(210,134 |
) |
|
|
22,312 |
|
|
|
1,255 |
|
|
|
— |
|
|
|
11,199 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments for Quick Tag and
Laser Key licenses
|
|
|
— |
|
|
|
(12,750 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,750 |
) |
Payment for Servalite
acquisition
|
|
|
— |
|
|
|
— |
|
|
|
(21,335 |
) |
|
|
|
|
|
|
|
|
|
|
(21,335 |
) |
Capital
expenditures
|
|
|
— |
|
|
|
(9,518 |
) |
|
|
(64 |
) |
|
|
(93 |
) |
|
|
— |
|
|
|
(9,675 |
) |
Other, net
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used for investing
activities
|
|
|
— |
|
|
|
(22,268 |
) |
|
|
(21,399 |
) |
|
|
(93 |
) |
|
|
— |
|
|
|
(43,760 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings of senior term
loans
|
|
|
— |
|
|
|
290,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
290,000 |
|
Repayments of senior term
loans
|
|
|
— |
|
|
|
(149,756 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(149,756 |
) |
Borrowings of revolving
credit loans
|
|
|
— |
|
|
|
12,600 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,600 |
|
Repayments of revolving
credit loans
|
|
|
— |
|
|
|
(600 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(600 |
) |
Principal payments under
capitalized lease obligations
|
|
|
— |
|
|
|
(50 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(50 |
) |
Repayments of unsecured
subordinated notes
|
|
|
— |
|
|
|
(49,820 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(49,820 |
) |
Borrowings of senior
notes
|
|
|
— |
|
|
|
150,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
150,000 |
|
Financing fees,
net
|
|
|
— |
|
|
|
(15,729 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(15,729 |
) |
Purchase predecessor equity
securities
|
|
|
(506,407 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(506,407 |
) |
Proceeds from sale of
successor equity securities
|
|
|
308,641 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
308,641 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used for)
provided by financing activities
|
|
|
(197,766 |
) |
|
|
236,645 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
38,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in
cash and cash equivalents
|
|
|
— |
|
|
|
4,243 |
|
|
|
913 |
|
|
|
1,162 |
|
|
|
— |
|
|
|
6,318 |
|
Cash and cash equivalents
at beginning of period
|
|
|
1 |
|
|
|
923 |
|
|
|
206 |
|
|
|
137 |
|
|
|
— |
|
|
|
1,267 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
at end of period
|
|
$ |
1 |
|
|
$ |
5,166 |
|
|
$ |
1,119 |
|
|
$ |
1,299 |
|
|
$ |
— |
|
|
$ |
7,585 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidating
Statement of Cash Flows
For the five
months ended May 28, 2010
(Amounts in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Predecessor |
|
|
|
Guarantors
The Hillman
Companies, Inc. |
|
|
Issuer
The Hillman
Group, Inc. |
|
|
Guarantor
Subsidiaries |
|
|
Non-
Guarantor
Subsidiaries |
|
|
Consolidating
Adjustments |
|
|
Consolidated |
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$ |
(24,810 |
) |
|
$ |
(493 |
) |
|
$ |
(143 |
) |
|
$ |
227 |
|
|
$ |
11 |
|
|
$ |
(25,208 |
) |
Adjustments to reconcile
net loss to net cash (used for) provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
2,663 |
|
|
|
7,192 |
|
|
|
47 |
|
|
|
59 |
|
|
|
— |
|
|
|
9,961 |
|
Dispositions of property
and equipment
|
|
|
— |
|
|
|
74 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
74 |
|
Deferred income tax
provision (benefit)
|
|
|
(2,757 |
) |
|
|
733 |
|
|
|
45 |
|
|
|
58 |
|
|
|
— |
|
|
|
(1,921 |
) |
Deferred financing and
original issue discount amortization
|
|
|
(155 |
) |
|
|
670 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
515 |
|
Interest on mandatorily
redeemable preferred stock and management purchased
options
|
|
|
5,488 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,488 |
|
Stock-based compensation
expense
|
|
|
19,053 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19,053 |
|
Changes in operating
items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
— |
|
|
|
(15,724 |
) |
|
|
(658 |
) |
|
|
(434 |
) |
|
|
— |
|
|
|
(16,816 |
) |
Inventories
|
|
|
— |
|
|
|
2,383 |
|
|
|
477 |
|
|
|
110 |
|
|
|
(11 |
) |
|
|
2,959 |
|
Other assets
|
|
|
— |
|
|
|
597 |
|
|
|
(178 |
) |
|
|
(307 |
) |
|
|
12 |
|
|
|
124 |
|
Accounts payable
|
|
|
— |
|
|
|
1,890 |
|
|
|
(71 |
) |
|
|
11 |
|
|
|
— |
|
|
|
1,830 |
|
Other accrued
liabilities
|
|
|
(332 |
) |
|
|
9,561 |
|
|
|
176 |
|
|
|
43 |
|
|
|
(5,096 |
) |
|
|
4,352 |
|
Other items, net
|
|
|
850 |
|
|
|
(6,843 |
) |
|
|
— |
|
|
|
15 |
|
|
|
5,084 |
|
|
|
(894 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used
for) operating activities
|
|
|
— |
|
|
|
40 |
|
|
|
(305 |
) |
|
|
(218 |
) |
|
|
— |
|
|
|
(483 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
— |
|
|
|
(5,396 |
) |
|
|
(7 |
) |
|
|
(8 |
) |
|
|
— |
|
|
|
(5,411 |
) |
Other, net
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used for investing
activities
|
|
|
— |
|
|
|
(5,396 |
) |
|
|
(7 |
) |
|
|
(8 |
) |
|
|
— |
|
|
|
(5,411 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayments of senior term
loans
|
|
|
— |
|
|
|
(9,544 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,544 |
) |
Principal payments under
capitalized lease obligations
|
|
|
— |
|
|
|
(459 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(459 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used for financing
activities
|
|
|
— |
|
|
|
(10,003 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(10,003 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in cash and
cash equivalents
|
|
|
— |
|
|
|
(15,359 |
) |
|
|
(312 |
) |
|
|
(226 |
) |
|
|
— |
|
|
|
(15,897 |
) |
Cash and cash equivalents
at beginning of period
|
|
|
1 |
|
|
|
16,282 |
|
|
|
518 |
|
|
|
363 |
|
|
|
— |
|
|
|
17,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
at end of period
|
|
$ |
1 |
|
|
$ |
923 |
|
|
$ |
206 |
|
|
$ |
137 |
|
|
$ |
— |
|
|
$ |
1,267 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|