Form: 10-K

Annual report pursuant to Section 13 and 15(d)

March 28, 2016



Exhibit 99.1


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


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 December 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 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:


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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



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


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

 




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


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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



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


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





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


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
)
 




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


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
)
 




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


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
)




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


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
)
 




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


 
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




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


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




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


 
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





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


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