Form: 10-Q

Quarterly report pursuant to Section 13 or 15(d)

May 15, 2015


THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES
Supplemental Consolidating Guarantor and Non-Guarantor Financial Information
(dollars in thousands)


EXHIBIT 99.1


On June 30, 2014, affiliates of CCMP Capital Advisors, LLC (“CCMP”) and Oak Hill Capital Partners III, L.P., Oak Hill Capital
Management Partners III, L.P. and OHCP III HC RO, L.P.), together with certain current and former members of Hillman’s
management, consummated a merger transaction (the “Merger Transaction”) pursuant to the terms and conditions of an Agreement and Plan of Merger dated as of May 16, 2014.

The Company, through Hillman Group, had issued $265,000 in aggregate principal amount of 10.875% Senior Notes that were
scheduled to mature on June 1, 2018. In connection with the Merger Transaction, the 10.875% Senior Notes were repaid and
terminated.

Hillman Group issued $330,000 aggregate principal amount of its senior notes due July 15, 2022 (the “6.375% Senior Notes”). The 6.375% Senior Notes, of which $330,000 aggregate principal amount was outstanding as of March 31, 2015, are fully and
unconditionally guaranteed on a joint and several basis by The Hillman Companies, Inc., Hillman Investment Company, and certain of the Company’s wholly-owned subsidiaries. The non-guarantor information presented represents our Australian, Canadian, and Mexican subsidiaries.

The following financial information presents condensed consolidating statements of comprehensive loss, balance sheets, and cash flows for the Hillman Group, all guarantor subsidiaries, all non-guarantor subsidiaries, and the eliminations necessary to provide the consolidated results for the Hillman Companies and subsidiaries. For purposes of this presentation, we have accounted for investments in our subsidiaries using the equity method of accounting. The principal consolidating adjustments eliminate investment in subsidiary and intercompany balances and transactions.





THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES
Supplemental Consolidating Guarantor and Non-Guarantor Financial Information




Condensed Consolidating Statements of Comprehensive Loss (Unaudited)
For the three months ended March 31, 2015
(dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Successor
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantors
 
Issuer
 
 
 
Non-
 
 
 
 
 
 
 
 
 
The Hillman
 
The Hillman
 
Guarantor
 
Guarantor
 
Consolidating
 
 
 
 
 
 
 
Companies, Inc.
 
Group, Inc.
 
Subsidiaries
 
Subsidiaries
 
Adjustments
 
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
$

 
$
144,121

 
$
5,113

 
$
31,462

 
$

 
$
180,696

 
Cost of sales (exclusive of depreciation and
 
 
 
 
 
 
 
 
 
 
 

 
 
amortization shown separately below)
 

 
79,045

 
3,692

 
20,611

 

 
103,348

 
Selling, general and administrative expenses
 
254

 
49,923

 
1,018

 
10,503

 

 
61,698

 
Transaction, acquisition and integration expenses
 

 
165

 

 

 

 
165

 
Depreciation
 

 
6,949

 
17

 
571

 

 
7,537

 
Amortization
 
8,974

 

 
54

 
489

 

 
9,517

 
Intercompany administrative (income) expense
 

 
(108
)
 

 
108

 

 

 
Management fees to related party
 

 
151

 

 

 

 
151

 
Other (income) expense, net
 
(50
)
 
1,541

 
(2
)
 
(259
)
 

 
1,230

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) income from operations
 
(9,178
)

6,455


334


(561
)



(2,950
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intercompany interest (income) expense
 
(3,057
)
 
3,057

 

 

 

 

 
Interest (income) expense, net
 
(235
)
 
11,263

 

 
1,599

 

 
12,627

 
Interest expense on junior subordinated debentures
 
3,152

 

 

 

 

 
3,152

 
Investment income on trust common securities
 
(95
)
 

 

 

 

 
(95
)
 
 
(Loss) income before equity in subsidiaries' income
(8,943
)

(7,865
)

334


(2,160
)



(18,634
)
 
Equity in subsidiaries' (loss) income
 
(8,708
)
 
(843
)
 

 

 
9,551

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) income before income taxes
 
(17,651
)

(8,708
)

334


(2,160
)

9,551


(18,634
)
 
 
Income tax (benefit) provision
 
(7,786
)
 

 
156

 
(1,139
)
 

 
(8,769
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income
 
$
(9,865
)

$
(8,708
)

$
178


$
(1,021
)

$
9,551


$
(9,865
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive (loss) income:
 
 
 

 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 

 
(7,229
)
 

 
(24,528
)
 
21,245

 
(10,512
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total comprehensive (loss) income
 
$
(9,865
)

$
(15,937
)

$
178


$
(25,549
)

$
30,796


$
(20,377
)


            








Page 2 of 9


THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES
Supplemental Consolidating Guarantor and Non-Guarantor Financial Information




Condensed Consolidating Statements of Comprehensive Loss (Unaudited)
For the three months ended March 31, 2014
(dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Predecessor
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantors
 
Issuer
 
 
 
Non-
 
 
 
 
 
 
 
 
 
The Hillman
 
The Hillman
 
Guarantor
 
Guarantor
 
Consolidating
 
 
 
 
 
 
 
Companies, Inc.
 
Group, Inc.
 
Subsidiaries
 
Subsidiaries
 
Adjustments
 
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
$

 
$
115,365

 
$
7,307

 
$
32,107

 
$

 
$
154,779

 
Cost of sales (exclusive of depreciation and
 
 
 
 
 
 
 
 
 
 
 
 
 
  amortization shown below)
 

 
54,735

 
5,106

 
19,574

 

 
79,415

 
Selling, general and administrative expenses
 
526

 
42,363

 
1,726

 
11,228

 

 
55,843

 
Transaction, acquisition and integration expenses
 

 

 

 

 

 

 
Depreciation
 

 
6,196

 
21

 
651

 

 
6,868

 
Amortization
 
4,515

 
772

 

 
257

 

 
5,544

 
Intercompany administrative (income) expense
 

 
(108
)
 

 
108

 

 

 
Other (income) expense, net
 
(18
)
 
32

 
(129
)
 
(373
)
 

 
(488
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) income from operations
 
(5,023
)
 
11,375


583

 
662

 

 
7,597

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intercompany interest (income) expense
 
(3,058
)
 
3,058

 

 

 

 

 
Interest (income) expense, net
 
(51
)
 
9,916

 

 
1,680

 

 
11,545

 
Interest expense on junior subordinated debentures
3,152

 

 

 

 

 
3,152

 
Investment income on trust common securities
 
(95
)
 

 

 

 

 
(95
)
 
 
(loss) income before equity in subsidiaries' income
(4,971
)
 
(1,599
)
 
583

 
(1,018
)
 

 
(7,005
)
 
Equity in subsidiaries' income (loss)
 
(1,842
)
 
(243
)
 

 

 
2,085

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) income before income taxes
 
(6,813
)
 
(1,842
)
 
583

 
(1,018
)
 
2,085

 
(7,005
)
 
 
Income tax (benefit) provision
 
(2,751
)
 

 
244

 
(436
)
 

 
(2,943
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income
 
$
(4,062
)
 
$
(1,842
)
 
$
339

 
$
(582
)
 
$
2,085

 
$
(4,062
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive (loss) income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 

 
(4,067
)
 

 
20

 

 
(4,047
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total comprehensive (loss) income
 
$
(4,062
)
 
$
(5,909
)
 
$
339

 
$
(562
)
 
$
2,085

 
$
(8,109
)




Page 3 of 9


THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES
Supplemental Consolidating Guarantor and Non-Guarantor Financial Information




Condensed Consolidating Balance Sheet (Unaudited)
 
As of March 31, 2015
 
(dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Successor
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantors
 
Issuer
 
 
 
Non-
 
 
 
 
 
 
 
 
 
 
 
The Hillman
 
The Hillman
 
Guarantor
 
Guarantor
 
Consolidating
 
 
 
 
 
 
 
 
 
Companies, Inc.
 
Group, Inc.
 
Subsidiaries
 
Subsidiaries
 
Adjustments
 
Consolidated
 
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
1

 
$
600

 
$
380

 
$
1,156

 
$

 
$
2,137

 
 
 
Restricted investments
 
494

 

 

 

 

 
494

 
 
 
Accounts receivable, net
 

 
80,713

 
2,040

 
25,349

 

 
108,102

 
 
 
Inventories, net
 

 
156,788

 
5,314

 
65,989

 
(492
)
 
227,599

 
 
 
Deferred income taxes, net
 
10,611

 
277

 
514

 
1,318

 
(87
)
 
12,633

 
 
 
Other current assets
 

 
7,689

 
162

 
2,243

 

 
10,094

 
 
 
 
Total current assets
 
11,106

 
246,067

 
8,410

 
96,055

 
(579
)
 
361,059

 
 
 
Intercompany notes receivable
 
105,446

 
110,768

 
(7,033
)
 
(103,735
)
 
(105,446
)
 

 
 
 
Intercompany interest receivable
 
3,057

 
2,450

 

 

 
(5,507
)
 

 
 
 
Investments in subsidiaries
 
(847,170
)
 
69,419

 
4,300

 
250,469

 
522,982

 

 
 
 
Property and equipment, net
 

 
100,304

 
281

 
11,741

 

 
112,326

 
 
 
Goodwill
 
789,870

 
338,696

 
3,240

 
35,102

 
(548,026
)
 
618,882

 
 
 
Other intangibles, net
 
737,740

 

 
4,629

 
43,696

 

 
786,065

 
 
 
Restricted investments
 
1,720

 

 

 

 

 
1,720

 
 
 
Deferred income taxes
 
58,404

 
143

 
(610
)
 
1,132

 
(59,069
)
 

 
 
 
Deferred financing fees, net
 

 
23,483

 

 

 

 
23,483

 
 
 
Investment in trust common securities
 
3,261

 

 

 

 

 
3,261

 
 
 
Other assets
 

 
3,023

 
25

 
45

 

 
3,093

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
863,434

 
$
894,353

 
$
13,242

 
$
334,505

 
$
(195,645
)
 
$
1,909,889

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
 

 
$
57,979

 
$
152

 
$
18,733

 

 
$
76,864

 
 
 
Current portion of senior term loans
 

 
5,500

 

 

 

 
5,500

 
 
 
Current portion of capitalized lease and other obligations

 
207

 

 

 

 
207

 
 
 
Intercompany interest payable
 

 
3,057

 

 
2,450

 
(5,507
)
 

 
 
 
Accrued expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and wages
 

 
6,210

 
123

 
1,286

 

 
7,619

 
 
 
 
Pricing allowances
 

 
4,538

 
5

 
2,097

 

 
6,640

 
 
 
 
Income and other taxes
 
(213
)
 
2,423

 
68

 
500

 

 
2,778

 
 
 
 
Interest
 

 
4,795

 

 

 

 
4,795

 
 
 
 
Deferred compensation
 
494

 

 

 

 

 
494

 
 
 
 
Other accrued expenses
 

 
7,546

 
40

 
1,732

 

 
9,318

 
 
 
 
 
Total current liabilities
 
281

 
92,255

 
388

 
26,798

 
(5,507
)
 
114,215

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Page 4 of 9


THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES
Supplemental Consolidating Guarantor and Non-Guarantor Financial Information



 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Condensed Consolidating Balance Sheet (Unaudited)
 
As of March 31, 2015
 
(dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Successor
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantors
 
Issuer
 
 
 
Non-
 
 
 
 
 
 
 
 
 
 
 
The Hillman
 
The Hillman
 
Guarantor
 
Guarantor
 
Consolidating
 
 
 
 
 
 
 
 
 
Companies, Inc.
 
Group, Inc.
 
Subsidiaries
 
Subsidiaries
 
Adjustments
 
Consolidated
 
 
  LIABILITIES AND STOCKHOLDERS' EQUITY(CONTINUED)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intercompany debt payable
 

 
105,446

 

 

 
(105,446
)
 

 
 
 
Long term senior term loans
 

 
540,375

 

 

 

 
540,375

 
 
 
Bank revolving credit
 

 
29,000

 

 

 

 
29,000

 
 
 
Long term capitalized leases and other obligations
 

 
350

 

 

 

 
350

 
 
 
Long term senior notes
 

 
330,000

 

 

 

 
330,000

 
 
 
Junior subordinated debentures
 
130,448

 

 

 

 

 
130,448

 
 
 
Deferred compensation
 
1,720

 

 

 

 

 
1,720

 
 
 
Deferred income taxes, net
 
306,873

 

 
2,022

 
13,375

 
(59,156
)
 
263,114

 
 
 
Other non-current liabilities
 

 
6,593

 

 
1,644

 

 
8,237

 
 
 
 
 
Total liabilities
 
439,322

 
1,104,019

 
2,410

 
41,817

 
(170,109
)
 
1,417,459

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commitments and Contingencies
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stockholders' Equity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Stock:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock, $.01 par, 5,000 shares authorized, none issued and outstanding at March 31, 2015
 

 

 

 

 

 

 
 
 
Common Stock:
 
 
 
 
 
 
 
 
 
 
 


 
 
 
 
Common stock, $.01 par, 5,000 shares authorized, issued and outstanding at March 31, 2015
 

 

 
50

 

 
(50
)
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 
 
 
Additional paid-in capital
 
631,726

 
5,842

 
10,197

 
375,287

 
(478,784
)
 
544,268

 
 
 
Accumulated deficit
 
(207,614
)
 
(199,959
)
 
585

 
(12,505
)
 
390,691

 
(28,802
)
 
 
 
Accumulated other comprehensive (loss) income
 

 
(15,549
)
 

 
(70,094
)
 
62,607

 
(23,036
)
 
 
 
 
Total stockholders' equity
 
424,112

 
(209,666
)
 
10,832

 
292,688

 
(25,536
)
 
492,430

 
 
 
 
 
Total liabilities and stockholders' equity
 
$
863,434

 
$
894,353

 
$
13,242

 
$
334,505

 
$
(195,645
)
 
$
1,909,889

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Page 5 of 9


THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES
Supplemental Consolidating Guarantor and Non-Guarantor Financial Information




Condensed Consolidating Balance Sheet (Unaudited)
 
As of December 31, 2014
 
(dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Successor
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantors
 
Issuer
 
 
 
Non-
 
 
 
 
 
 
 
 
 
 
 
The Hillman
 
The Hillman
 
Guarantor
 
Guarantor
 
Consolidating
 
 
 
 
 
 
 
 
 
Companies, Inc.
 
Group, Inc.
 
Subsidiaries
 
Subsidiaries
 
Adjustments
 
Consolidated
 
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
1

 
$
13,191

 
$
696

 
$
4,597

 

 
$
18,485

 
 
 
Restricted investments
 
494

 

 

 

 

 
494

 
 
 
Accounts receivable, net
 

 
65,270

 
1,175

 
23,439

 

 
89,884

 
 
 
Inventories, net
 

 
141,472

 
5,687

 
57,885

 
(321
)
 
204,723

 
 
 
Deferred income taxes, net
 
11,191

 
277

 
538

 
1,331

 
(98
)
 
13,239

 
 
 
Other current assets
 

 
8,142

 
124

 
2,058

 

 
10,324

 
 
 
 
Total current assets
 
11,686

 
228,352

 
8,220

 
89,310

 
(419
)
 
337,149

 
 
 
Intercompany notes receivable
 
105,446

 
112,977

 
(6,975
)
 
(106,002
)
 
(105,446
)
 

 
 
 
Intercompany interest receivable
 

 
948

 

 

 
(948
)
 

 
 
 
Investments in subsidiaries
 
(840,201
)
 
69,419

 
4,300

 
271,714

 
494,768

 

 
 
 
Property and equipment, net
 

 
101,299

 
298

 
12,934

 

 
114,531

 
 
 
Goodwill
 
789,870

 
338,696

 
3,240

 
37,780

 
(548,026
)
 
621,560

 
 
 
Other intangibles, net
 
746,714

 

 
4,682

 
47,545

 

 
798,941

 
 
 
Restricted investments
 
1,750

 

 

 

 

 
1,750

 
 
 
Deferred income taxes
 
53,715

 
143

 
(477
)
 
(2
)
 
(53,379
)
 

 
 
 
Deferred financing fees, net
 

 
24,407

 

 

 

 
24,407

 
 
 
Investment in trust common securities
 
3,261

 

 

 

 

 
3,261

 
 
 
Other assets
 

 
1,317

 
25

 
72

 

 
1,414

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
Total assets
 
$
872,241

 
$
877,558

 
$
13,313

 
$
353,351

 
$
(213,450
)
 
$
1,903,013

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts payable
 

 
$
53,487

 
$
422

 
$
12,553

 

 
$
66,462

 
 
 
Current portion of senior term loans
 

 
5,500

 

 

 

 
5,500

 
 
 
Current portion of capitalized lease and other obligations

 
207

 

 

 

 
207

 
 
 
Intercompany interest payable
 

 

 

 
948

 
(948
)
 

 
 
 
Accrued expenses:
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
Salaries and wages
 

 
4,144

 
120

 
983

 

 
5,247

 
 
 
 
Pricing allowances
 

 
3,621

 
3

 
3,038

 

 
6,662

 
 
 
 
Income and other taxes
 
(581
)
 
2,325

 
37

 
1,520

 

 
3,301

 
 
 
 
Interest
 

 
10,587

 

 

 

 
10,587

 
 
 
 
Deferred compensation
 
494

 

 

 

 

 
494

 
 
 
 
Other accrued expenses
 

 
6,990

 
40

 
393

 

 
7,423

 
 
 
 
 
Total current liabilities
 
(87
)
 
86,861

 
622

 
19,435

 
(948
)
 
105,883

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Page 6 of 9


THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES
Supplemental Consolidating Guarantor and Non-Guarantor Financial Information



Condensed Consolidating Balance Sheet (Unaudited)
 
As of December 31, 2014
 
(dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Successor
 
 
 
 
 
 
 
Guarantors
 
Issuer
 
 
 
Non-
 
 
 
 
 
 
 
 
 
 
 
The Hillman
 
The Hillman
 
Guarantor
 
Guarantor
 
Consolidating
 
 
 
 
 
 
 
 
 
Companies, Inc.
 
Group, Inc.
 
Subsidiaries
 
Subsidiaries
 
Adjustments
 
Consolidated
 
 
  LIABILITIES AND STOCKHOLDERS' EQUITY(CONTINUED)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intercompany debt payable
 

 
105,446

 

 

 
(105,446
)
 

 
 
 
Long term senior term loans
 

 
541,750

 

 

 

 
541,750

 
 
 
Long term capitalized leases and other obligations
 

 
400

 

 

 

 
400

 
 
 
Long term senior notes
 

 
330,000

 

 

 

 
330,000

 
 
 
Junior subordinated debentures
 
130,685

 

 

 

 

 
130,685

 
 
 
Deferred compensation
 
1,750

 

 

 

 

 
1,750

 
 
 
Deferred income taxes, net
 
310,804

 

 
2,037

 
14,417

 
(53,477
)
 
273,781

 
 
 
Other non-current liabilities
 

 
4,359

 

 
1,262

 

 
5,621

 
 
 
 
 
Total liabilities
 
443,152


1,068,816


2,659


35,114


(159,871
)

1,389,870

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commitments and Contingencies
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stockholders' Equity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Stock:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock, $.01 par, 5,000 shares authorized, none issued and outstanding at December 31, 2014
 

 

 

 

 

 

 
 
 
Common Stock:
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
Common stock, $.01 par, 5,000 shares authorized, issued and outstanding at December 31, 2014
 

 

 
50

 

 
(50
)
 

 
 
 
Additional paid-in capital
 
632,602

 
5,842

 
10,197

 
375,287

 
(479,324
)
 
544,604

 
 
 
Accumulated deficit
 
(203,513
)
 
(188,780
)
 
407

 
(11,484
)
 
384,433

 
(18,937
)
 
 
 
Accumulated other comprehensive (loss) income
 

 
(8,320
)
 

 
(45,566
)
 
41,362

 
(12,524
)
 
 
 
 
Total stockholders' equity
 
429,089


(191,258
)

10,654


318,237


(53,579
)

513,143


 
 
 
 
Total liabilities and stockholders' equity
 
$
872,241


$
877,558


$
13,313


$
353,351


$
(213,450
)

$
1,903,013


 
 
 
 
 
 
















Page 7 of 9


THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES
Supplemental Consolidating Guarantor and Non-Guarantor Financial Information



 
Consolidating Statement of Cash Flows (Unaudited)
 
For the three months ended March 31, 2015
 
(dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Successor
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantors
 
Issuer
 
 
 
Non-
 
 
 
 
 
 
 
 
 
 
The Hillman
 
The Hillman
 
Guarantor
 
Guarantor
 
Consolidating
 
 
 
 
 
 
 
 
Companies, Inc.
 
Group, Inc.
 
Subsidiaries
 
Subsidiaries
 
Adjustments
 
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income
 
$
(1,157
)
 
$
(7,865
)
 
$
178

 
$
(1,021
)
 

 
$
(9,865
)
 
 
Adjustments to reconcile net (loss) income to net cash
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
provided by used for operating activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
8,974

 
6,949

 
70

 
1,061

 

 
17,054

 
 
 
Dispositions of property and equipment
 

 
16

 

 
47

 

 
63

 
 
 
Deferred income tax (benefit) provision
 
(8,040
)
 

 
142

 
(1,262
)
 

 
(9,160
)
 
 
 
Deferred financing and original issue discount amortization
 
(237
)
 
924

 

 

 

 
687

 
 
 
Stock-based compensation expense
 
204

 

 

 

 

 
204

 
 
 
Other non-cash interest and change in value of interest rate swap
 

 
1,543

 

 

 

 
1,543

 
 
 
Changes in operating items:
 
 
 
 
 
 
 
 
 
 
 


 
 
 
 
Accounts receivable
 

 
(15,443
)
 
(865
)
 
(1,649
)
 

 
(17,957
)
 
 
 
 
Inventories
 

 
(15,145
)
 
373

 
(12,841
)
 

 
(27,613
)
 
 
 
 
Other assets
 
(3,057
)
 
3,281

 
20

 
7,690

 

 
7,934

 
 
 
 
Accounts payable
 

 
4,492

 
(270
)
 
6,828

 

 
11,050

 
 
 
 
Interest payable on junior subordinated debentures
 

 

 

 

 

 

 
 
 
 
Other accrued liabilities
 
368

 
(2,248
)
 
36

 
(1,279
)
 

 
(3,123
)
 
 
 
 
Other items, net
 
3,485

 
(3,447
)
 

 
(367
)
 

 
(329
)
 
 
 
Net cash provided by (used for) operating activities
 
540


(26,943
)

(316
)

(2,793
)



(29,512
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 

 
(5,994
)
 

 
(434
)
 

 
(6,428
)
 
 
 
Net cash (used for) provided by investing activities
 


(5,994
)



(434
)



(6,428
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Repayments of senior term loans
 

 
(1,375
)
 

 

 

 
(1,375
)
 
 
  Borrowings on revolving credit loans
 

 
29,000

 

 

 

 
29,000

 
 
  Principal payments under capitalized lease obligations
 

 
(50
)
 

 

 

 
(50
)
 
 
  Purchase of stock from a former member of management
 
(540
)
 

 

 

 

 
(540
)
 
 
 
Net cash (used for) financing activities
 
(540
)

27,575








27,035

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash
 

 
(7,229
)
 

 
(214
)
 

 
(7,443
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (decrease) increase in cash and cash equivalents
 


(12,591
)

(316
)

(3,441
)



(16,348
)
 
Cash and cash equivalents at beginning of period
 
1

 
13,191

 
696

 
4,597

 

 
18,485

 
Cash and cash equivalents at end of period
 
1


600


380


1,156




2,137





Page 8 of 9


THE HILLMAN COMPANIES, INC. AND SUBSIDIARIES
Supplemental Consolidating Guarantor and Non-Guarantor Financial Information



 
Condensed Consolidating Statement of Cash Flows (Unaudited)
 
For the three months ended March 31, 2014
 
(dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Predecessor
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantors
 
Issuer
 
 
 
Non-
 
 
 
 
 
 
 
 
 
 
The Hillman
 
The Hillman
 
Guarantor
 
Guarantor
 
Consolidating
 
 
 
 
 
 
 
 
Companies, Inc.
 
Group, Inc.
 
Subsidiaries
 
Subsidiaries
 
Adjustments
 
Consolidated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from operating activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
(2,220
)
 
$
(1,599
)
 
$
339

 
$
(582
)
 

 
$
(4,062
)
 
 
Adjustments to reconcile net income (loss) to net cash
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
provided by operating activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
4,515

 
6,948

 
23

 
697

 

 
12,183

 
 
 
Deferred income tax (benefit) provision
 
(1,741
)
 

 
112

 
(746
)
 

 
(2,375
)
 
 
 
Deferred financing and original issue discount amortization
 
(50
)
 
743

 

 

 

 
693

 
 
 
Stock-based compensation expense
 
508

 

 

 

 

 
508

 
 
 
Changes in operating items:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounts receivable
 

 
(5,473
)
 
85

 
(1,655
)
 

 
(7,043
)
 
 
 
 
Inventories
 

 
(3,588
)
 
(86
)
 
(2,956
)
 

 
(6,630
)
 
 
 
 
Other assets
 
(3,058
)
 
(2,881
)
 
1,328

 
9,357

 

 
4,746

 
 
 
 
Accounts payable
 

 
6,390

 
(350
)
 
(2,439
)
 

 
3,601

 
 
 
 
Interest payable on junior subordinated debentures
 
1,019

 

 

 

 

 
1,019

 
 
 
 
Other accrued liabilities
 
(99
)
 
1,018

 
(36
)
 
407

 

 
1,290

 
 
 
 
Other items, net
 
652

 
(533
)
 
(853
)
 
200

 

 
(534
)
 
 
 
Net cash (used for) provided by operating activities
 
(474
)
 
1,025

 
562

 
2,283

 

 
3,396

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 

 
(6,216
)
 
(9
)
 
(700
)
 

 
(6,925
)
 
 
 
Net cash used for investing activities
 

 
(6,216
)
 
(9
)
 
(700
)
 

 
(6,925
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repayments of senior term loans
 

 
(992
)
 

 

 

 
(992
)
 
 
Proceeds from exercise of stock options
 
474

 

 

 

 

 
474

 
 
Principal payments under capitalized lease obligations
 

 
(41
)
 

 

 

 
(41
)
 
 
 
Net cash provided by (used for) financing activities
 
474

 
(1,033
)
 

 

 

 
(559
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Effect of exchange rate changes on cash
 

 
(4,067
)
 

 
(184
)
 

 
(4,251
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Net (decrease) increase in cash and cash equivalents
 

 
(10,291
)
 
553

 
1,399

 

 
(8,339
)
 
Cash and cash equivalents at beginning of period
 
1

 
27,553

 
792

 
6,623

 

 
34,969

 
Cash and cash equivalents at end of period
 
1

 
17,262

 
1,345

 
8,022

 

 
26,630




Page 9 of 9