Consolidating Balance Sheet (Unaudited) | |||||||||||||||||||||||||||||
As of December 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 | $ | 3,023 | $ | 612 | $ | 7,749 | $ | — | $ | 11,385 | |||||||||||||||||
Restricted investments | 639 | — | — | — | — | 639 | |||||||||||||||||||||||
Accounts receivable, net | — | 55,665 | 1,020 | 16,896 | — | 73,581 | |||||||||||||||||||||||
Inventories, net | — | 171,999 | 5,447 | 67,040 | (803 | ) | 243,683 | ||||||||||||||||||||||
Deferred income taxes | 12,666 | 277 | 501 | 604 | (167 | ) | 13,881 | ||||||||||||||||||||||
Other current assets | — | 7,671 | 75 | 2,156 | — | 9,902 | |||||||||||||||||||||||
Total current assets | 13,306 | 238,635 | 7,655 | 94,445 | (970 | ) | 353,071 | ||||||||||||||||||||||
Intercompany notes receivable | 105,446 | 117,368 | (4,645 | ) | (112,723 | ) | (105,446 | ) | — | ||||||||||||||||||||
Intercompany interest receivable | — | 6,359 | — | — | (6,359 | ) | — | ||||||||||||||||||||||
Investments in subsidiaries | (891,702 | ) | 55,647 | 4,178 | 220,764 | 611,113 | — | ||||||||||||||||||||||
Property and equipment, net | — | 101,034 | 308 | 9,050 | — | 110,392 | |||||||||||||||||||||||
Goodwill | 814,413 | 350,968 | 3,240 | 31,735 | (584,841 | ) | 615,515 | ||||||||||||||||||||||
Other intangibles, net | 710,820 | — | 4,467 | 38,196 | — | 753,483 | |||||||||||||||||||||||
Restricted investments | 1,382 | — | — | — | — | 1,382 | |||||||||||||||||||||||
Deferred income taxes | 52,604 | 143 | (979 | ) | 2,909 | (54,677 | ) | — | |||||||||||||||||||||
Deferred financing fees | — | 20,711 | — | — | — | 20,711 | |||||||||||||||||||||||
Investment in trust common securities | 3,261 | — | — | — | — | 3,261 | |||||||||||||||||||||||
Other assets | — | 3,102 | 25 | 3,505 | — | 6,632 | |||||||||||||||||||||||
Total assets | $ | 809,530 | $ | 893,967 | $ | 14,249 | $ | 287,881 | $ | (141,180 | ) | $ | 1,864,447 | ||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||||||
Accounts payable | $ | — | $ | 51,095 | $ | 710 | $ | 13,203 | $ | — | $ | 65,008 | |||||||||||||||||
Current portion of senior term loans | — | 5,500 | — | — | — | 5,500 | |||||||||||||||||||||||
Current portion of capitalized lease and other obligations | — | 217 | — | — | — | 217 | |||||||||||||||||||||||
Interest payable on Junior Subordinated Debentures | — | — | — | — | — | — | |||||||||||||||||||||||
Intercompany interest payable | — | — | — | 6,359 | (6,359 | ) | — | ||||||||||||||||||||||
Accrued expenses: | — | ||||||||||||||||||||||||||||
Salaries and wages | — | 4,861 | 94 | 453 | — | 5,408 | |||||||||||||||||||||||
Pricing allowances | — | 3,991 | 3 | 3,222 | — | 7,216 | |||||||||||||||||||||||
Income and other taxes | (357 | ) | 2,497 | 28 | 814 | — | 2,982 | ||||||||||||||||||||||
Interest | — | 9,843 | — | — | — | 9,843 | |||||||||||||||||||||||
Deferred compensation | 639 | — | — | — | — | 639 | |||||||||||||||||||||||
Other accrued expenses | — | 6,325 | 38 | 1,546 | — | 7,909 | |||||||||||||||||||||||
Total current liabilities | 282 | 84,329 | 873 | 25,597 | (6,359 | ) | 104,722 | ||||||||||||||||||||||
Consolidating Balance Sheet (Unaudited) | |||||||||||||||||||||||||||||
As of December 31, 2015 | |||||||||||||||||||||||||||||
(Amounts 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 | — | 536,250 | — | — | — | 536,250 | |||||||||||||||||||||||
Bank revolving credit | — | 28,000 | — | — | — | 28,000 | |||||||||||||||||||||||
Long term portion of capitalized leases and other obligations | — | 310 | — | — | — | 310 | |||||||||||||||||||||||
Long term senior notes | — | 330,000 | — | — | — | 330,000 | |||||||||||||||||||||||
Junior subordinated debentures | 129,707 | — | — | — | — | 129,707 | |||||||||||||||||||||||
Deferred compensation | 1,382 | — | — | — | — | 1,382 | |||||||||||||||||||||||
Deferred income taxes, net | 300,008 | — | 1,967 | 12,082 | (54,844 | ) | 259,213 | ||||||||||||||||||||||
Other non-current liabilities | — | 6,003 | — | 316 | — | 6,319 | |||||||||||||||||||||||
Total liabilities | $ | 431,379 | $ | 1,090,338 | $ | 2,840 | $ | 37,995 | $ | (166,649 | ) | $ | 1,395,903 | ||||||||||||||||
Commitments and Contingencies (Note 17) | |||||||||||||||||||||||||||||
Stockholders' Equity: | |||||||||||||||||||||||||||||
Preferred Stock: | |||||||||||||||||||||||||||||
Preferred stock, $.01 par, 5,000 shares authorized, none issued and outstanding at December 31, 2015 | — | — | — | — | — | — | |||||||||||||||||||||||
Common Stock: | |||||||||||||||||||||||||||||
Common stock, $.01 par, 5,000 shares authorized, issued and outstanding at December 31, 2015 | — | — | 50 | — | (50 | ) | — | ||||||||||||||||||||||
Additional paid-in capital | 633,612 | 5,842 | 10,197 | 375,287 | (479,184 | ) | 545,754 | ||||||||||||||||||||||
Accumulated deficit | (255,461 | ) | (178,533 | ) | 1,162 | (29,875 | ) | 420,687 | (42,020 | ) | |||||||||||||||||||
Accumulated other comprehensive (loss) income | — | (23,680 | ) | — | (95,526 | ) | 84,016 | (35,190 | ) | ||||||||||||||||||||
Total stockholders' equity | 378,151 | (196,371 | ) | 11,409 | 249,886 | 25,469 | 468,544 | ||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 809,530 | $ | 893,967 | $ | 14,249 | $ | 287,881 | $ | (141,180 | ) | $ | 1,864,447 |
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 | 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 | — | 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 | |||||||||||||||||||||
Consolidating Balance Sheet (Unaudited) | ||||||||||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||||||
(Amounts 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 portion of 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 (Note 17) | ||||||||||||||||||||||||||||
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 |
Consolidating Statements of Comprehensive Loss (Unaudited) | ||||||||||||||||||||||||||||
For the year ended December 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 | $ | — | $ | 626,283 | $ | 19,375 | $ | 141,253 | $ | — | $ | 786,911 | ||||||||||||||||
Cost of sales (exclusive of depreciation | ||||||||||||||||||||||||||||
and amortization shown separately below) | — | 326,337 | 13,677 | 95,515 | — | 435,529 | ||||||||||||||||||||||
Selling, general and administrative expenses | 1,292 | 201,613 | 3,988 | 45,652 | — | 252,545 | ||||||||||||||||||||||
Acquisition and integration expense | — | 257 | — | — | — | 257 | ||||||||||||||||||||||
Depreciation | — | 27,040 | 75 | 1,912 | — | 29,027 | ||||||||||||||||||||||
Amortization | 35,893 | — | 215 | 1,895 | — | 38,003 | ||||||||||||||||||||||
Intercompany administrative (income) expense | — | (434 | ) | — | 434 | — | — | |||||||||||||||||||||
Management and transaction fees to related party | — | 630 | — | — | — | 630 | ||||||||||||||||||||||
Other (income) expense, net | (2 | ) | 1,626 | 13 | 1,885 | — | 3,522 | |||||||||||||||||||||
(Loss) income from operations | (37,183 | ) | 69,214 | 1,407 | (6,040 | ) | — | 27,398 | ||||||||||||||||||||
Intercompany interest (income) expense | (12,232 | ) | 12,232 | — | — | — | — | |||||||||||||||||||||
Interest (income) expense, net | (977 | ) | 45,550 | — | 6,011 | — | 50,584 | |||||||||||||||||||||
Interest expense on junior subordinated debentures | 12,609 | — | — | — | — | 12,609 | ||||||||||||||||||||||
Investment income on trust common securities | (378 | ) | — | — | — | — | (378 | ) | ||||||||||||||||||||
(Loss) income before equity in subsidiaries' income | (36,205 | ) | 11,432 | 1,407 | (12,051 | ) | — | (35,417 | ) | |||||||||||||||||||
Equity in subsidiaries' income (loss) | 2,214 | (9,218 | ) | — | — | 7,004 | — | |||||||||||||||||||||
(Loss) income before income taxes | (33,991 | ) | 2,214 | 1,407 | (12,051 | ) | 7,004 | (35,417 | ) | |||||||||||||||||||
Income tax (benefit) provision | (10,908 | ) | — | 530 | (1,956 | ) | — | (12,334 | ) | |||||||||||||||||||
Net (loss) income | $ | (23,083 | ) | $ | 2,214 | $ | 877 | $ | (10,095 | ) | $ | 7,004 | $ | (23,083 | ) | |||||||||||||
Other comprehensive (loss) income: | ||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | (15,360 | ) | — | (49,960 | ) | 42,654 | (22,666 | ) | |||||||||||||||||||
Total comprehensive (loss) income | $ | (23,083 | ) | $ | (13,146 | ) | $ | 877 | $ | (60,055 | ) | $ | 49,658 | $ | (45,749 | ) |
Consolidating Statements of Comprehensive Loss (Unaudited) | ||||||||||||||||||||||||||||
For the period from June 30, 2014 through 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 | |||||||||||||||||||||||
Net sales | $ | — | $ | 292,255 | $ | 10,326 | $ | 74,711 | $ | — | $ | 377,292 | ||||||||||||||||
Cost of sales (exclusive of depreciation and | ||||||||||||||||||||||||||||
amortization shown separately below) | — | 137,849 | 7,275 | 48,097 | — | 193,221 | ||||||||||||||||||||||
Selling, general and administrative expenses | 718 | 90,929 | 2,236 | 21,971 | — | 115,854 | ||||||||||||||||||||||
Transaction, acquisition and integration expenses | — | 22,102 | 21 | 596 | — | 22,719 | ||||||||||||||||||||||
Depreciation | — | 15,821 | 37 | 1,419 | — | 17,277 | ||||||||||||||||||||||
Amortization | 16,403 | 1,544 | 108 | 1,073 | — | 19,128 | ||||||||||||||||||||||
Intercompany administrative (income) expense | — | (216 | ) | — | 216 | — | — | |||||||||||||||||||||
Management and transaction fees to related party | — | 276 | — | — | — | 276 | ||||||||||||||||||||||
Other (income) expense, net | (43 | ) | 1,857 | (63 | ) | (1,175 | ) | — | 576 | |||||||||||||||||||
(Loss) income from operations | (17,078 | ) | 22,093 | 712 | 2,514 | — | 8,241 | |||||||||||||||||||||
Intercompany interest (income) expense | (6,115 | ) | 6,115 | — | — | — | — | |||||||||||||||||||||
Interest (income) expense, net | (457 | ) | 24,213 | — | 3,494 | — | 27,250 | |||||||||||||||||||||
Interest expense on junior subordinated debentures | 6,305 | — | — | — | — | 6,305 | ||||||||||||||||||||||
Investment income on trust common securities | (189 | ) | — | — | — | — | (189 | ) | ||||||||||||||||||||
(Loss) income before equity in subsidiaries' income | (16,622 | ) | (8,235 | ) | 712 | (980 | ) | — | (25,125 | ) | ||||||||||||||||||
Equity in subsidiaries' (loss) income | (9,743 | ) | (1,508 | ) | — | — | 11,251 | — | ||||||||||||||||||||
(Loss) income before income taxes | (26,365 | ) | (9,743 | ) | 712 | (980 | ) | 11,251 | (25,125 | ) | ||||||||||||||||||
Income tax (benefit) provision | (7,428 | ) | — | 313 | 927 | — | (6,188 | ) | ||||||||||||||||||||
Net (loss) income | $ | (18,937 | ) | $ | (9,743 | ) | $ | 399 | $ | (1,907 | ) | $ | 11,251 | $ | (18,937 | ) | ||||||||||||
Other comprehensive (loss) income: | ||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | (8,320 | ) | — | (45,566 | ) | 41,362 | (12,524 | ) | |||||||||||||||||||
Total comprehensive (loss) income | $ | (18,937 | ) | $ | (18,063 | ) | $ | 399 | $ | (47,473 | ) | $ | 52,613 | $ | (31,461 | ) |
Consolidating Statements of Comprehensive Income (Loss) (Unaudited) | |||||||||||||||||||||||||||
For the six months ended June 29, 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 | $ | — | $ | 263,194 | $ | 16,053 | $ | 78,130 | $ | — | $ | 357,377 | |||||||||||||||
Cost of sales (exclusive of depreciation and | |||||||||||||||||||||||||||
amortization shown separately below) | — | 123,971 | 11,185 | 48,186 | — | 183,342 | |||||||||||||||||||||
Selling, general and administrative expenses | 39,324 | 90,090 | 3,656 | 23,692 | — | 156,762 | |||||||||||||||||||||
Transaction, acquisition and integration expenses | — | 31,681 | — | — | — | 31,681 | |||||||||||||||||||||
Depreciation | — | 12,789 | 48 | 1,312 | — | 14,149 | |||||||||||||||||||||
Amortization | 9,029 | 1,543 | — | 521 | — | 11,093 | |||||||||||||||||||||
Intercompany administrative (income) expense | — | (216 | ) | — | 216 | — | — | ||||||||||||||||||||
Management and transaction fees to related party | — | 15 | — | — | — | 15 | |||||||||||||||||||||
Other (income) expense, net | (95 | ) | 151 | 10 | (343 | ) | — | (277 | ) | ||||||||||||||||||
(Loss) income from operations | (48,258 | ) | 3,170 | 1,154 | 4,546 | — | (39,388 | ) | |||||||||||||||||||
Intercompany interest (income) expense | (6,117 | ) | 6,117 | — | — | — | — | ||||||||||||||||||||
Interest (income) expense, net | (103 | ) | 19,802 | — | 3,451 | — | 23,150 | ||||||||||||||||||||
Interest expense on junior subordinated debentures | 6,305 | — | — | — | — | 6,305 | |||||||||||||||||||||
Investment income on trust common securities | (189 | ) | — | — | — | — | (189 | ) | |||||||||||||||||||
(Loss) income before equity in subsidiaries' income | (48,154 | ) | (22,749 | ) | 1,154 | 1,095 | — | (68,654 | ) | ||||||||||||||||||
Equity in subsidiaries' (loss) income | (21,498 | ) | 1,251 | — | — | 20,247 | — | ||||||||||||||||||||
(Loss) income before income taxes | (69,652 | ) | (21,498 | ) | 1,154 | 1,095 | 20,247 | (68,654 | ) | ||||||||||||||||||
Income tax (benefit) provision | (25,126 | ) | — | 426 | 572 | — | (24,128 | ) | |||||||||||||||||||
Net (loss) income | $ | (44,526 | ) | $ | (21,498 | ) | $ | 728 | $ | 523 | $ | 20,247 | $ | (44,526 | ) | ||||||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||||||
Foreign currency translation adjustments | — | (151 | ) | — | (102 | ) | 158 | (95 | ) | ||||||||||||||||||
Total comprehensive (loss) income | $ | (44,526 | ) | $ | (21,649 | ) | $ | 728 | $ | 421 | $ | 20,405 | $ | (44,621 | ) |
Consolidating Statements of Comprehensive Loss (Unaudited) | ||||||||||||||||||||||||||||
For the year ended December 31, 2013 | ||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||
Predecessor | ||||||||||||||||||||||||||||
Guarantors | Issuer | Non- | ||||||||||||||||||||||||||
The Hillman | The Hillman | Guarantor | Guarantor | Consolidating | ||||||||||||||||||||||||
Companies, Inc. | Group, Inc. | Subsidiaries | Subsidiaries | Adjustments | Consolidated | |||||||||||||||||||||||
Net sales | $ | — | $ | 529,949 | $ | 31,886 | $ | 139,806 | $ | — | $ | 701,641 | ||||||||||||||||
Cost of sales (exclusive of depreciation | ||||||||||||||||||||||||||||
and amortization shown separately below) | — | 251,491 | 22,836 | 84,999 | — | 359,326 | ||||||||||||||||||||||
Selling, general and administrative expenses | 9,370 | 168,073 | 6,589 | 41,619 | — | 225,651 | ||||||||||||||||||||||
Acquisition and integration expense | — | 2,931 | 74 | 5,633 | — | 8,638 | ||||||||||||||||||||||
Depreciation | — | 22,381 | 85 | 2,330 | — | 24,796 | ||||||||||||||||||||||
Amortization | 18,058 | 3,087 | — | 967 | — | 22,112 | ||||||||||||||||||||||
Intercompany administrative (income) expense | — | (348 | ) | — | 348 | — | — | |||||||||||||||||||||
Management and transaction fees to related party | — | 77 | — | — | — | 77 | ||||||||||||||||||||||
Other (income) expense, net | (364 | ) | 3,661 | (158 | ) | 1,461 | — | 4,600 | ||||||||||||||||||||
Income from operations | (27,064 | ) | 78,596 | 2,460 | 2,449 | — | 56,441 | |||||||||||||||||||||
Intercompany interest (income) expense | (12,232 | ) | 12,259 | — | (27 | ) | — | — | ||||||||||||||||||||
Interest (income) expense, net | (190 | ) | 41,930 | — | 6,398 | — | 48,138 | |||||||||||||||||||||
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 | (26,874 | ) | 24,407 | 2,460 | (3,922 | ) | — | (3,929 | ) | |||||||||||||||||||
Equity in subsidiaries' income (loss) | 21,936 | (2,471 | ) | — | — | (19,465 | ) | — | ||||||||||||||||||||
Income (loss) before income taxes | (4,938 | ) | 21,936 | 2,460 | (3,922 | ) | (19,465 | ) | (3,929 | ) | ||||||||||||||||||
Income tax provision (benefit) | (3,790 | ) | — | 867 | 142 | — | (2,781 | ) | ||||||||||||||||||||
Net income (loss) | $ | (1,148 | ) | $ | 21,936 | $ | 1,593 | $ | (4,064 | ) | $ | (19,465 | ) | $ | (1,148 | ) | ||||||||||||
Other comprehensive (loss) income: | ||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | (5,643 | ) | — | (99 | ) | — | (5,742 | ) | |||||||||||||||||||
Total comprehensive (loss) income | $ | (1,148 | ) | $ | 16,293 | $ | 1,593 | $ | (4,163 | ) | $ | (19,465 | ) | $ | (6,890 | ) |
Consolidating Statement of Cash Flows (Unaudited) | ||||||||||||||||||||||||||||
For the year ended December 31, 2015 | ||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||
Successor | ||||||||||||||||||||||||||||
Consol- | ||||||||||||||||||||||||||||
Guarantors | Issuer | Non- | idating | |||||||||||||||||||||||||
The Hillman | The Hillman | Guarantor | Guarantor | Adjust- | ||||||||||||||||||||||||
Companies, Inc. | Group, Inc. | Subsidiaries | Subsidiaries | ments | Consolidated | |||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||||
Net (loss) income | $ | (25,297 | ) | $ | 11,432 | $ | 877 | $ | (10,095 | ) | $ | — | $ | (23,083 | ) | |||||||||||||
Adjustments to reconcile net (loss) income to net cash | ||||||||||||||||||||||||||||
provided by (used for) operating activities: | ||||||||||||||||||||||||||||
Depreciation and amortization | 35,894 | 27,039 | 289 | 3,808 | — | 67,030 | ||||||||||||||||||||||
Loss (gain) on dispositions of property and equipment | — | 416 | 30 | (851 | ) | — | (405 | ) | ||||||||||||||||||||
Deferred income tax (benefit) provision | (11,160 | ) | — | 469 | (2,525 | ) | — | (13,216 | ) | |||||||||||||||||||
Deferred financing and original issue discount amortization | (978 | ) | 3,696 | — | — | — | 2,718 | |||||||||||||||||||||
Stock-based compensation expense | 1,290 | — | — | — | — | 1,290 | ||||||||||||||||||||||
Other non-cash interest and change in value of interest rate swap | — | 1,629 | — | — | — | 1,629 | ||||||||||||||||||||||
Changes in operating items: | ||||||||||||||||||||||||||||
Accounts receivable | — | 9,605 | 155 | 1,711 | — | 11,471 | ||||||||||||||||||||||
Inventories | — | (30,045 | ) | 240 | (19,177 | ) | — | (48,982 | ) | |||||||||||||||||||
Other assets | — | (26,455 | ) | (2,281 | ) | 26,780 | — | (1,956 | ) | |||||||||||||||||||
Accounts payable | — | (2,392 | ) | 288 | 3,117 | — | 1,013 | |||||||||||||||||||||
Other accrued liabilities | 224 | (150 | ) | (37 | ) | 870 | — | 907 | ||||||||||||||||||||
Other items, net | 167 | (497 | ) | — | (263 | ) | — | (593 | ) | |||||||||||||||||||
Net cash provided by (used for) operating activities | 140 | (5,722 | ) | 30 | 3,375 | — | (2,177 | ) | ||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||
Capital expenditures | — | (26,767 | ) | (114 | ) | (1,318 | ) | — | (28,199 | ) | ||||||||||||||||||
Proceeds from sale of property and equipment | — | — | — | 2,182 | — | 2,182 | ||||||||||||||||||||||
Net cash (used for) provided by investing activities | — | (26,767 | ) | (114 | ) | 864 | — | (26,017 | ) | |||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||
Repayments of senior term loans | — | (5,500 | ) | — | — | — | (5,500 | ) | ||||||||||||||||||||
Borrowings of revolving credit loans | — | 55,000 | — | — | — | 55,000 | ||||||||||||||||||||||
Repayments of revolving credit loans | — | (27,000 | ) | — | — | — | (27,000 | ) | ||||||||||||||||||||
Principal payments under capitalized lease obligations | — | (158 | ) | — | — | — | (158 | ) | ||||||||||||||||||||
Purchase of Holdco stock from a former member of management | (540 | ) | — | — | — | — | (540 | ) | ||||||||||||||||||||
Proceeds from Holdco sale of stock | 400 | — | — | — | — | 400 | ||||||||||||||||||||||
Net cash (used for) provided by financing activities | (140 | ) | 22,342 | — | — | — | 22,202 | |||||||||||||||||||||
Effect of exchange rate changes on cash | — | (21 | ) | — | (1,087 | ) | — | (1,108 | ) | |||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (10,168 | ) | (84 | ) | 3,152 | — | (7,100 | ) | |||||||||||||||||||
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 | $ | 3,023 | $ | 612 | $ | 7,749 | $ | — | $ | 11,385 |
Consolidating Statement of Cash Flows (Unaudited) | |||||||||||||||||||||||||||
For the period from June 30, 2014 through December 31, 2014 | |||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||
Successor | |||||||||||||||||||||||||||
Consol- | |||||||||||||||||||||||||||
Guarantors | Issuer | Non- | idating | ||||||||||||||||||||||||
The Hillman | The Hillman | Guarantor | Guarantor | Adjust- | |||||||||||||||||||||||
Companies, Inc. | Group, Inc. | Subsidiaries | Subsidiaries | ments | Consolidated | ||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||
Net (loss) income | $ | (9,194 | ) | $ | (8,243 | ) | $ | 407 | $ | (1,907 | ) | $ | — | $ | (18,937 | ) | |||||||||||
Adjustments to reconcile net (loss) income to net cash | |||||||||||||||||||||||||||
provided by operating activities: | |||||||||||||||||||||||||||
Depreciation and amortization | 16,403 | 17,365 | 34 | 2,603 | — | 36,405 | |||||||||||||||||||||
Dispositions of property and equipment | — | 49 | 13 | 58 | — | 120 | |||||||||||||||||||||
Deferred income tax (benefit) provision | (7,372 | ) | 54 | (24 | ) | 116 | — | (7,226 | ) | ||||||||||||||||||
Deferred financing and original issue discount amortization | 457 | 1,948 | — | — | — | 2,405 | |||||||||||||||||||||
Stock-based compensation expense | 675 | — | — | — | — | 675 | |||||||||||||||||||||
Other non-cash interest expense | — | 935 | — | — | — | 935 | |||||||||||||||||||||
Changes in operating items: | |||||||||||||||||||||||||||
Accounts receivable | — | 15,756 | 1,136 | 5,542 | — | 22,434 | |||||||||||||||||||||
Inventories | — | (17,298 | ) | 24 | 2,633 | — | (14,641 | ) | |||||||||||||||||||
Other assets | — | 4,406 | (323 | ) | (12,480 | ) | — | (8,397 | ) | ||||||||||||||||||
Accounts payable | — | 1,484 | (400 | ) | 5,103 | — | 6,187 | ||||||||||||||||||||
Interest payable on junior subordinated debentures | (1,019 | ) | — | — | — | — | (1,019 | ) | |||||||||||||||||||
Other accrued liabilities | 108 | (24,782 | ) | (73 | ) | (3,544 | ) | — | (28,291 | ) | |||||||||||||||||
Other items, net | 185,629 | (185,784 | ) | (202 | ) | (2,442 | ) | — | (2,799 | ) | |||||||||||||||||
Net cash provided by (used for) operating activities | 185,687 | (194,110 | ) | 592 | (4,318 | ) | — | (12,149 | ) | ||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||
Acquisition of Hillman Companies, Inc. | (729,616 | ) | — | — | — | — | (729,616 | ) | |||||||||||||||||||
Capital expenditures | — | (13,961 | ) | (64 | ) | (950 | ) | — | (14,975 | ) | |||||||||||||||||
Net cash (used for) investing activities | (729,616 | ) | (13,961 | ) | (64 | ) | (950 | ) | — | (744,591 | ) | ||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||
Borrowings of senior term loans | — | 550,000 | — | — | — | 550,000 | |||||||||||||||||||||
Repayments of senior term loans | — | (387,157 | ) | — | — | — | (387,157 | ) | |||||||||||||||||||
Borrowings on revolving credit loans | — | 16,000 | — | — | — | 16,000 | |||||||||||||||||||||
Repayments of revolving credit loans | — | (16,000 | ) | — | — | — | (16,000 | ) | |||||||||||||||||||
Principal payments under capitalized lease obligations | — | (112 | ) | — | — | — | (112 | ) | |||||||||||||||||||
Borrowings of senior notes | — | 330,000 | — | — | — | 330,000 | |||||||||||||||||||||
Repayment of senior notes | — | (265,000 | ) | — | — | — | (265,000 | ) | |||||||||||||||||||
Capital contribution from parent | 542,929 | — | — | — | — | 542,929 | |||||||||||||||||||||
Capital contribution from board member | 1,000 | — | — | — | — | 1,000 | |||||||||||||||||||||
Financing fees | — | (26,355 | ) | — | — | — | (26,355 | ) | |||||||||||||||||||
Repayments of other credit obligations | — | (70 | ) | — | — | — | (70 | ) | |||||||||||||||||||
Net cash (used for) financing activities | 543,929 | 201,306 | — | — | — | 745,235 | |||||||||||||||||||||
Effect of exchange rate changes on cash | — | (2,527 | ) | — | (513 | ) | — | (3,040 | ) | ||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (9,292 | ) | 528 | (5,781 | ) | — | (14,545 | ) | ||||||||||||||||||
Cash and cash equivalents at beginning of period | 1 | 22,483 | 168 | 10,378 | — | 33,030 | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 1 | $ | 13,191 | $ | 696 | $ | 4,597 | $ | — | $ | 18,485 |
Consolidating Statement of Cash Flows (Unaudited) | ||||||||||||||||||||||||||||
For the six months ended June 29, 2014 | ||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||
Predecessor | ||||||||||||||||||||||||||||
Consol- | ||||||||||||||||||||||||||||
Guarantors | Issuer | Non- | idating | |||||||||||||||||||||||||
The Hillman | The Hillman | Guarantor | Guarantor | Adjust- | ||||||||||||||||||||||||
Companies, Inc. | Group, Inc. | Subsidiaries | Subsidiaries | ments | Consolidated | |||||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||||||||
Net (loss) income | $ | (23,029 | ) | $ | (22,749 | ) | $ | 728 | $ | 524 | $ | — | $ | (44,526 | ) | |||||||||||||
Adjustments to reconcile net (loss) income to net cash | ||||||||||||||||||||||||||||
provided by operating activities: | ||||||||||||||||||||||||||||
Depreciation and amortization | 9,029 | 14,332 | 48 | 1,833 | — | 25,242 | ||||||||||||||||||||||
Deferred income tax (benefit) provision | (24,245 | ) | — | 206 | (419 | ) | — | (24,458 | ) | |||||||||||||||||||
Deferred financing and original issue discount amortization | (103 | ) | 1,477 | — | — | — | 1,374 | |||||||||||||||||||||
Stock-based compensation expense | 39,229 | — | — | — | — | 39,229 | ||||||||||||||||||||||
Changes in operating items: | ||||||||||||||||||||||||||||
Accounts receivable | — | (17,638 | ) | (633 | ) | (6,996 | ) | — | (25,267 | ) | ||||||||||||||||||
Inventories | — | (17,769 | ) | (666 | ) | 584 | — | (17,851 | ) | |||||||||||||||||||
Other assets | — | (3,199 | ) | 678 | 11,320 | — | 8,799 | |||||||||||||||||||||
Accounts payable | — | 25,944 | 236 | (5,369 | ) | — | 20,811 | |||||||||||||||||||||
Interest payable on junior subordinated debentures | 1,019 | — | — | — | — | 1,019 | ||||||||||||||||||||||
Other accrued liabilities | (123 | ) | 28,651 | (4 | ) | 2,659 | — | 31,183 | ||||||||||||||||||||
Other items, net | (2,251 | ) | (1,168 | ) | (659 | ) | 235 | — | (3,843 | ) | ||||||||||||||||||
Net cash provided by (used for) operating activities | (474 | ) | 7,881 | (66 | ) | 4,371 | — | 11,712 | ||||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||||||||
Capital expenditures | — | (12,224 | ) | (57 | ) | (652 | ) | — | (12,933 | ) | ||||||||||||||||||
Net cash (used for) investing activities | — | (12,224 | ) | (57 | ) | (652 | ) | — | (12,933 | ) | ||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||||||||
Repayments of senior term loans | — | (992 | ) | — | — | — | (992 | ) | ||||||||||||||||||||
Principal payments under capitalized lease obligations | — | (84 | ) | — | — | — | (84 | ) | ||||||||||||||||||||
Proceeds from exercise of stock options | 474 | — | — | — | — | 474 | ||||||||||||||||||||||
Net cash (used for) financing activities | 474 | (1,076 | ) | — | — | — | (602 | ) | ||||||||||||||||||||
Effect of exchange rate changes on cash | — | (151 | ) | — | 35 | — | (116 | ) | ||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (5,570 | ) | (123 | ) | 3,754 | — | (1,939 | ) | |||||||||||||||||||
Cash and cash equivalents at beginning of period | 1 | 27,553 | 791 | 6,624 | — | 34,969 | ||||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 1 | $ | 21,983 | $ | 668 | $ | 10,378 | $ | — | $ | 33,030 |
Consolidating Statement of Cash Flows (Unaudited) | |||||||||||||||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||
Predecessor | |||||||||||||||||||||||||||
Consol- | |||||||||||||||||||||||||||
Guarantors | Issuer | Non- | idating | ||||||||||||||||||||||||
The Hillman | The Hillman | Guarantor | Guarantor | Adjust- | |||||||||||||||||||||||
Companies, Inc. | Group, Inc. | Subsidiaries | Subsidiaries | ments | Consolidated | ||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||||||
Net (loss) income | $ | (23,084 | ) | $ | 24,407 | $ | 1,593 | $ | (4,064 | ) | $ | — | $ | (1,148 | ) | ||||||||||||
Adjustments to reconcile net loss to net cash (used for) | |||||||||||||||||||||||||||
provided by operating activities: | |||||||||||||||||||||||||||
Depreciation and amortization | 18,058 | 25,468 | 85 | 3,297 | — | 46,908 | |||||||||||||||||||||
Dispositions of property and equipment | — | 768 | 6 | 3 | — | 777 | |||||||||||||||||||||
Deferred income tax provision (benefit) | (4,268 | ) | — | 816 | (172 | ) | — | (3,624 | ) | ||||||||||||||||||
Deferred financing and original issue discount amortization | (190 | ) | 2,682 | — | — | — | 2,492 | ||||||||||||||||||||
Stock-based compensation expense | 9,006 | — | — | — | — | 9,006 | |||||||||||||||||||||
Other non-cash interest and change in value of interest rate swap | — | (418 | ) | — | — | — | (418 | ) | |||||||||||||||||||
Changes in operating items: | |||||||||||||||||||||||||||
Accounts receivable | — | (4,066 | ) | (596 | ) | (4,436 | ) | — | (9,098 | ) | |||||||||||||||||
Inventories | — | 3,672 | (867 | ) | (14,272 | ) | — | (11,467 | ) | ||||||||||||||||||
Other assets | — | (1,566 | ) | (620 | ) | (1,903 | ) | — | (4,089 | ) | |||||||||||||||||
Accounts payable | — | (6,263 | ) | 304 | 14,368 | — | 8,409 | ||||||||||||||||||||
Other accrued liabilities | 57 | (3,723 | ) | (419 | ) | 6,797 | — | 2,712 | |||||||||||||||||||
Other items, net | 421 | (102,480 | ) | (1 | ) | 103,125 | — | 1,065 | |||||||||||||||||||
Net cash provided by (used for) operating activities | — | (61,519 | ) | 301 | 102,743 | — | 41,525 | ||||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||||||
Payment for Paulin acquisition | — | (918 | ) | 206 | (102,704 | ) | — | (103,416 | ) | ||||||||||||||||||
Capital expenditures | — | (37,086 | ) | (151 | ) | (801 | ) | — | (38,038 | ) | |||||||||||||||||
Proceeds from sale of property and equipment | — | 792 | 7 | — | — | 799 | |||||||||||||||||||||
Net cash used for investing activities | — | (37,212 | ) | 62 | (103,505 | ) | — | (140,655 | ) | ||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||||||
Borrowings of senior term loans | — | 76,800 | — | — | — | 76,800 | |||||||||||||||||||||
Repayments of senior term loans | — | (3,776 | ) | — | — | — | (3,776 | ) | |||||||||||||||||||
Discount on senior senior term loans | — | (3,152 | ) | — | — | — | (3,152 | ) | |||||||||||||||||||
Principal payments under capitalized lease obligations | — | (503 | ) | — | — | — | (503 | ) | |||||||||||||||||||
Borrowings under other credit obligations | — | 324 | — | — | — | 324 | |||||||||||||||||||||
Repayments of other credit obligations | — | (683 | ) | — | — | — | (683 | ) | |||||||||||||||||||
Net cash (used for) provided by financing activities | — | 69,010 | — | — | — | 69,010 | |||||||||||||||||||||
Effect on exhange rate changes on cash | — | (5,643 | ) | — | 5,184 | — | (459 | ) | |||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | — | (35,364 | ) | 363 | 4,422 | — | (30,579 | ) | |||||||||||||||||||
Cash and cash equivalents at beginning of period | 1 | 62,917 | 429 | 2,201 | — | 65,548 | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 1 | $ | 27,553 | $ | 792 | $ | 6,623 | $ | — | $ | 34,969 |