OAK BROOK, Ill., March 14, 2019 (GLOBE NEWSWIRE) -- A. M. Castle & Co. (OTCQX: CTAM) (the
"Company" or "Castle"), a global distributor of specialty metal and supply chain solutions, today reported its fourth quarter
and full year 2018 financial results.
Full Year 2018 Financial Highlights:
- Generated net sales of $582.0 million, a 12.2% year-over-year increase compared to $518.8 million in 2017 ($164.9 million and
$353.9 million for the four-month Successor period ended December 31, 2017 and eight-month Predecessor period ended August 31,
2017, respectively).
- Reported an operating loss of $16.7 million compared to an operating loss of $27.5 million in 2017 ($13.1 million and $14.4
million for the four-month Successor period ended December 31, 2017 and eight-month Predecessor period ended August 31, 2017,
respectively).
- Reported a net loss of $37.1 million, which included $33.2 million of interest expense, of which $21.7 million was non-cash
related to long-term debt held primarily by majority shareholders, and $4.9 million was non-cash related to the Company's pension
plan.
- Achieved EBITDA of $0.3 million and adjusted EBITDA of $3.9 million, including foreign currency gains of $0.1 million and
$0.9 million, respectively, compared to EBITDA of $67.5 million, which included a net gain on reorganization items of $72.4
million, and an adjusted EBITDA loss of $11.7 million, including foreign currency gains of $7.2 million and $1.1 million,
respectively, in the full year of 2017.
Chairman and CEO Steve Scheinkman commented, “One of our goals for 2018 was to continue to grow our top-line and
we have done that as demonstrated by our double-digit year-over-year revenue growth driven by strong pricing and increased volumes
for the majority of the year. In addition, our continued focus on improving our working capital efficiency is generating stronger
operating results, which we believe will continue into 2019. The liquidity generated from both increased profitability
performance and more effective working capital management are allowing us to make additional investments to support our valued
business partners."
Fourth quarter 2018 financial results:
- Generated net sales of $137.6 million, an 11.7% year-over-year increase compared to $123.2 million in the fourth quarter of
2017.
- Reported an operating loss of $9.3 million, compared to an operating loss of $11.7 million in the fourth quarter of 2017.
- Reported a net loss of $16.8 million, which included $9.2 million of interest expense, of which $6.2 million was non-cash
related to long-term debt held primarily by majority shareholders, and $1.2 million was non-cash related to the Company's pension
plan, compared to a net loss of $12.5 million for the fourth quarter of 2017, which included $7.4 million of interest expense, of
which $4.8 million was non-cash related to long term-debt held primarily by majority shareholders, and $1.2 million was non-cash
related to the Company's pension plan.
- Reported an EBITDA loss of $6.3 million and an adjusted EBITDA loss of $4.3 million in the fourth quarter of 2018, including
foreign currency loss of $1.1 million and a foreign currency gain of $0.2 million, respectively, compared to an EBITDA loss of
$5.9 million and an adjusted EBITDA loss of $5.9 million, including foreign currency gains of $1.6 million and $1.2 million,
respectively, in the fourth quarter of 2017.
Commenting on the fourth quarter financial results, Mr. Scheinkman continued, “The momentum we saw in our
operating performance and EBITDA growth throughout the first three quarters of 2018 and into the early fourth quarter dissipated
somewhat late in the quarter when volumes are traditionally lower and as we moved some aged inventory out of our network. Even with
that slowdown, however, we are pleased to have delivered year-over-year improvements in our fourth quarter and full year 2018
results and believe we have laid a solid operational foundation for continued success in 2019.”
President Marec Edgar added, “We have seen operating performance bounce back with a return to positive EBITDA
for both January and February of 2019, even with the negative impacts from the historic severe weather that occurred throughout the
Midwestern U.S., and we believe many of the end markets we serve are trending positively for 2019. We continue to work closely with
our customers and mill partners to respond to changes in their local and global supply chains and have made internal realignments
to become more nimble in anticipating and responding to those changes. We believe these actions will allow us to build on our
improvements from 2018 and deliver more value to our stakeholders at all levels going forward.”
Presentation of Predecessor and Successor Financial Results
The Company adopted fresh-start reporting as of August 31, 2017, the date the Company's Amended Prepackaged
Joint Chapter 11 Plan of Reorganization became effective and the Company emerged from its Chapter 11 cases (the "Effective Date").
As a result of the application of fresh-start reporting, the Company’s financial statements for periods prior to the Effective Date
are not comparable to those for periods subsequent to the Effective Date. References to “Successor” refer to the Company on or
after the Effective Date. References to “Predecessor” refer to the Company prior to the Effective Date. Operating results for the
Successor and Predecessor periods are not necessarily indicative of the results to be expected for a full fiscal year. References
such as the “Company,” “we,” “our” and “us” refer to A.M. Castle & Co. and its subsidiaries, whether Predecessor and/or Successor,
as appropriate.
About A. M. Castle & Co.
Founded in 1890, A. M. Castle & Co. is a global distributor of specialty metal and supply chain services,
principally serving the producer durable equipment, commercial aircraft, heavy equipment, industrial goods, construction equipment,
and retail sectors of the global economy. Its customer base includes many Fortune 500 companies as well as thousands of medium
and smaller-sized firms spread across a variety of industries. It specializes in the distribution of alloy and stainless
steels; nickel alloys; aluminum and carbon. Together, Castle and its affiliated companies operate out of 21 metals service
centers located throughout North America, Europe and Asia. Its common stock is traded on the OTCQX® Best Market under the
ticker symbol "CTAM".
Non-GAAP Financial Measures
This release and the financial information included in this release include non-GAAP financial measures,
including any combination of and comparison to combined Predecessor and Successor results. The non-GAAP financial information
should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with
GAAP. Investors should recognize that these non-GAAP financial measures might not be comparative to similarly titled measures of
other companies. However, we believe that non-GAAP reporting, giving effect to the adjustments shown in the reconciliation
contained in this release and in the attached financial statements, provides meaningful information, and therefore we use it to
supplement our GAAP reporting and guidance. Management often uses this information to assess and measure the performance of our
business. We have chosen to provide this supplemental information to investors, analysts and other interested parties to enable
them to perform additional analysis of operating results, to illustrate the results of operations giving effect to the non-GAAP
adjustments shown in the reconciliations and to assist with period-over-period comparisons of such operations. The exclusion of the
charges indicated herein from the non-GAAP financial measures presented does not indicate an expectation by the Company that
similar charges will not be incurred in subsequent periods.
In addition, the Company believes that the use and presentation of EBITDA, which is defined by the Company as
loss before provision for income taxes plus depreciation and amortization, and interest expense, is widely used by the investment
community for evaluation purposes and provides investors, analysts and other interested parties with additional information in
analyzing the Company’s operating results. EBITDA, adjusted non-GAAP net loss and adjusted EBITDA are presented as the Company
believes the information is important to provide investors, analysts and other interested parties additional information about the
Company’s financial performance. Management uses EBITDA, adjusted non-GAAP net loss and adjusted EBITDA to evaluate the performance
of the business.
Cautionary Statement on Risks Associated with Forward Looking Statements
Information provided and statements contained in this release that are not purely historical are forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”), Section 21E of the
Securities Exchange Act of 1934, as amended (“Exchange Act”), and the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements only speak as of the date of this release and the Company assumes no obligation to update the
information included in this release. Such forward-looking statements include information concerning our possible or assumed
future results of operations, including descriptions of our business strategy, and the cost savings and other benefits that we
expect to achieve from our restructuring, as well as the anticipated increase in our borrowing capacity under our Credit Facility.
These statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “predict,” “plan,” “should,” or similar
expressions. These statements are not guarantees of performance or results, and they involve risks, uncertainties, and
assumptions. Although we believe that these forward-looking statements are based on reasonable assumptions, there are many
factors that could affect our actual financial results or results of operations and could cause actual results to differ materially
from those in the forward-looking statements. These factors include our ability to effectively manage our operational initiatives
and implemented restructuring activities, the impact of volatility of metals prices, the impact of imposed tariffs and/or duties,
the cyclical and seasonal aspects of our business, our ability to effectively manage inventory levels, and the impact of our
substantial level of indebtedness, as well as including those risk factors identified in our Annual Report on Form 10-K for the
fiscal year ended December 31, 2018, which we expect to file shortly. All future written and oral forward-looking statements by us
or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to
above. Except as required by the federal securities laws, we do not have any obligations or intention to release publicly any
revisions to any forward-looking statements to reflect events or circumstances in the future, to reflect the occurrence of
unanticipated events or for any other reason.
| Consolidated Statements of Operations |
| |
Successor |
|
|
Predecessor |
| |
Year Ended
December 31, 2018 |
|
September 1, 2017 through
December 31, 2017
*As Adjusted |
|
|
January 1, 2017
through
August 31, 2017
*As Adjusted |
| (Dollars in thousands, except per share data) |
|
|
|
| Net sales |
$ |
581,970 |
|
|
$ |
164,942 |
|
|
|
$ |
353,926 |
|
| Costs and expenses: |
|
|
|
|
|
|
| Cost of materials (exclusive of depreciation and amortization) |
437,052 |
|
|
127,828 |
|
|
|
266,495 |
|
| Warehouse, processing and delivery expense |
83,635 |
|
|
25,353 |
|
|
|
50,314 |
|
| Sales, general and administrative expense |
68,933 |
|
|
21,645 |
|
|
|
40,766 |
|
| Restructuring expense, net |
— |
|
|
— |
|
|
|
566 |
|
| Depreciation and amortization expense |
9,082 |
|
|
3,213 |
|
|
|
10,150 |
|
| Total costs and expenses |
598,702 |
|
|
178,039 |
|
|
|
368,291 |
|
| Operating loss |
(16,732 |
) |
|
(13,097 |
) |
|
|
(14,365 |
) |
| Interest expense, net |
33,172 |
|
|
9,220 |
|
|
|
26,629 |
|
| Financial restructuring expense |
— |
|
|
— |
|
|
|
7,024 |
|
| Unrealized (gain) loss on embedded debt conversion option |
— |
|
|
(2,352 |
) |
|
|
146 |
|
| Other income, net |
(7,980 |
) |
|
(5,591 |
) |
|
|
(8,436 |
) |
| Reorganization items, net |
— |
|
|
2,141 |
|
|
|
(74,531 |
) |
| (Loss) income before income taxes |
(41,924 |
) |
|
(16,515 |
) |
|
|
34,803 |
|
| Income tax benefit |
(4,779 |
) |
|
(3,188 |
) |
|
|
(1,387 |
) |
| Net (loss) income |
$ |
(37,145 |
) |
|
$ |
(13,327 |
) |
|
|
$ |
36,190 |
|
| |
|
|
|
|
|
|
| * Adjusted due to the adoption of ASU No. 2017-07, "Compensation – Retirement Benefits (Topic
715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." |
| Reconciliation of Reported Net (Loss) Income to EBITDA and Adjusted EBITDA: |
Successor |
|
|
Predecessor |
| (Dollars in thousands) |
Year Ended
December 31, 2018 |
|
September 1, 2017 through
December 31, 2017
*As Adjusted |
|
|
January 1, 2017
through
August 31, 2017
*As Adjusted |
| Unaudited |
|
|
|
| Net (loss) income, as reported |
$ |
(37,145 |
) |
|
$ |
(13,327 |
) |
|
|
$ |
36,190 |
|
| Depreciation and amortization expense |
9,082 |
|
|
3,213 |
|
|
|
10,150 |
|
| Interest expense, net |
33,172 |
|
|
9,220 |
|
|
|
26,629 |
|
| Income tax benefit |
(4,779 |
) |
|
(3,188 |
) |
|
|
(1,387 |
) |
| EBITDA |
330 |
|
|
(4,082 |
) |
|
|
71,582 |
|
| Non-GAAP adjustments (a) |
3,554 |
|
|
(1,012 |
) |
|
|
(78,212 |
) |
| Adjusted EBITDA |
$ |
3,884 |
|
|
$ |
(5,094 |
) |
|
|
$ |
(6,630 |
) |
| |
|
|
|
|
|
|
| (a) Refer to "Reconciliation of Reported (Net Loss) Income to Adjusted Non-GAAP Net Loss" table
for additional details on these amounts. |
| * Adjusted due to the adoption of ASU No. 2017-07, "Compensation – Retirement Benefits (Topic
715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." |
| Reconciliation of Reported Net Loss to EBITDA and Adjusted EBITDA: |
|
Successor |
| (Dollars in thousands) |
|
Three Months
Ended
December 31, 2018 |
|
Three Months
Ended
December 31, 2017
*As Adjusted |
| Unaudited |
|
|
| Net loss, as reported |
|
$ |
(16,836 |
) |
|
$ |
(12,506 |
) |
| Depreciation expense |
|
2,117 |
|
|
2,711 |
|
| Interest expense, net |
|
9,171 |
|
|
7,416 |
|
| Income tax benefit |
|
(753 |
) |
|
(3,474 |
) |
| EBITDA |
|
(6,301 |
) |
|
(5,853 |
) |
| Non-GAAP adjustments (a) |
|
2,043 |
|
|
(48 |
) |
| Adjusted EBITDA |
|
$ |
(4,258 |
) |
|
$ |
(5,901 |
) |
| |
| (a) Refer to "Reconciliation of Reported Net Loss to Adjusted Non-GAAP Net Loss" table for
additional details on these amounts. |
| * Adjusted due to the adoption of ASU No. 2017-07, "Compensation – Retirement Benefits (Topic 715):
Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." |
| |
|
|
|
|
|
| Reconciliation of Reported Net (Loss) Income to Adjusted Non-GAAP Net (Loss) Income: |
|
Successor |
|
|
Predecessor |
| (Dollars in thousands) |
|
Year Ended
December 31, 2018 |
|
September 1, 2017 through
December 31, 2017
*As Adjusted |
|
|
January 1, 2017
through
August 31, 2017
*As Adjusted |
| Unaudited |
|
|
|
|
| Net (loss) income, as reported |
|
$ |
(37,145 |
) |
|
$ |
(13,327 |
) |
|
|
$ |
36,190 |
|
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
| Reorganization items, net(a) |
|
— |
|
|
2,141 |
|
|
|
(74,531 |
) |
| Noncash compensation expense |
|
2,784 |
|
|
866 |
|
|
|
630 |
|
| Foreign exchange loss (gain) on intercompany loans |
|
770 |
|
|
(1,667 |
) |
|
|
(4,457 |
) |
| Unrealized gain on embedded debt conversion option |
|
— |
|
|
(2,352 |
) |
|
|
146 |
|
| Non-GAAP adjustments to arrive at Adjusted EBITDA |
|
3,554 |
|
|
(1,012 |
) |
|
|
(78,212 |
) |
| Non-cash interest expense(b) |
|
21,662 |
|
|
5,823 |
|
|
|
3,810 |
|
| Total non-GAAP adjustments |
|
25,216 |
|
|
4,811 |
|
|
|
(74,402 |
) |
| Tax effect of adjustments |
|
— |
|
|
— |
|
|
|
— |
|
| Adjusted non-GAAP net loss |
|
$ |
(11,929 |
) |
|
$ |
(8,516 |
) |
|
|
$ |
(38,212 |
) |
| |
|
|
|
|
|
|
|
| (a) During the pendency of the Company's chapter 11 cases, expenses and income directly associated
with the chapter 11 proceedings were reported separately in reorganization items, net in the Company’s Consolidated Statements
of Operations. |
| (b) Non-cash interest expense for the year ended December 31, 2018 includes interest paid in kind
of $13,502 and amortization of debt discount of $8,160. Non-cash interest expense for the period September 1, 2017 through
December 31, 2017 includes interest paid in kind of $3,865 and amortization of debt discount of $1,958. Non-cash interest
expense for the period January 1, 2017 through August 31, 2017 includes and amortization of debt discount of $3,810. |
| * Adjusted due to the adoption of ASU No. 2017-07, "Compensation – Retirement Benefits (Topic
715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." |
| |
|
|
| Reconciliation of Reported Net Loss to Adjusted Non-GAAP Net Loss: |
|
Successor |
| (Dollars in thousands) |
|
Three Months
Ended
December 31, 2018 |
|
Three Months
Ended
December 31, 2017
*As Adjusted |
| Unaudited |
|
|
| Net loss, as reported |
|
$ |
(16,836 |
) |
|
$ |
(12,506 |
) |
| Non-GAAP adjustments: |
|
|
|
|
| Reorganization items, net(a) |
|
— |
|
|
2,013 |
|
| Noncash compensation expense |
|
721 |
|
|
651 |
|
| Foreign exchange loss (gain) on intercompany loans |
|
1,322 |
|
|
(360 |
) |
| Unrealized gain on embedded debt conversion option |
|
— |
|
|
(2,352 |
) |
| Non-GAAP adjustments to arrive at Adjusted EBITDA |
|
2,043 |
|
|
(48 |
) |
| Non-cash interest expense(b) |
|
6,145 |
|
|
4,799 |
|
| Total non-GAAP adjustments |
|
8,188 |
|
|
4,751 |
|
| Tax effect of adjustments |
|
— |
|
|
— |
|
| Adjusted non-GAAP net loss |
|
$ |
(8,648 |
) |
|
$ |
(7,755 |
) |
| |
|
|
|
|
| (a) During the pendency of the Company's chapter 11 cases, expenses and income directly associated
with the chapter 11 proceedings were reported separately in reorganization items, net in the Company’s Consolidated Statements
of Operations. |
| (b) Non-cash interest expense for the three months ended December 31, 2018 includes interest paid
in kind of $3,747 and amortization of debt discount of $2,398. Non-cash interest expense for the three months ended December
31, 2017 includes interest paid in kind of $2,914 and amortization of debt discount of $1,885. |
| * Adjusted due to the adoption of ASU No. 2017-07, "Compensation – Retirement Benefits (Topic 715):
Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." |
| |
|
| CONSOLIDATED BALANCE SHEETS |
Successor |
| (Dollars in thousands, except par value data) |
December 31,
2018 |
|
December 31,
2017 |
| ASSETS |
|
|
|
| Current assets: |
|
|
|
| Cash and cash equivalents |
$ |
8,668 |
|
|
$ |
11,104 |
|
| Accounts receivable, less allowances of $1,364 and $1,586, respectively |
79,757 |
|
|
74,370 |
|
| Inventories |
160,686 |
|
|
154,491 |
|
| Prepaid expenses and other current assets |
14,344 |
|
|
12,274 |
|
| Income tax receivable |
1,268 |
|
|
1,576 |
|
| Total current assets |
264,723 |
|
|
253,815 |
|
| Goodwill and intangible assets, net |
8,176 |
|
|
8,176 |
|
| Prepaid pension cost |
1,754 |
|
|
10,745 |
|
| Deferred income taxes |
1,261 |
|
|
1,278 |
|
| Other noncurrent assets |
1,278 |
|
|
1,344 |
|
| Property, plant and equipment: |
|
|
|
| Land |
5,577 |
|
|
5,581 |
|
| Buildings |
21,218 |
|
|
21,296 |
|
| Machinery and equipment |
38,394 |
|
|
33,011 |
|
| Property, plant and equipment, at cost |
65,189 |
|
|
59,888 |
|
| Accumulated depreciation |
(11,989 |
) |
|
(2,961 |
) |
| Property, plant and equipment, net |
53,200 |
|
|
56,927 |
|
| Total assets |
$ |
330,392 |
|
|
$ |
332,285 |
|
| LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY |
|
|
|
| Current liabilities: |
|
|
|
| Accounts payable |
$ |
42,719 |
|
|
$ |
41,757 |
|
| Accrued payroll and employee benefits |
11,307 |
|
|
7,963 |
|
| Accrued and other current liabilities |
5,324 |
|
|
5,968 |
|
| Income tax payable |
1,589 |
|
|
262 |
|
| Short-term borrowings |
5,498 |
|
|
5,854 |
|
| Current portion of long-term debt |
119 |
|
|
118 |
|
| Total current liabilities |
66,556 |
|
|
61,922 |
|
| Long-term debt, less current portion |
246,027 |
|
|
199,903 |
|
| Deferred income taxes |
7,540 |
|
|
16,166 |
|
| Build-to-suit liability |
9,975 |
|
|
10,148 |
|
| Other noncurrent liabilities |
3,334 |
|
|
3,784 |
|
| Pension and postretirement benefit obligations |
6,321 |
|
|
6,377 |
|
| Commitments and contingencies |
|
|
|
| Stockholders’ (deficit) equity: |
|
|
|
| Common stock, $0.01 par value—200,000 Class A shares authorized with 3,803 shares issued and outstanding at
December 31, 2018 and 3,734 shares issued and outstanding at December 31, 2017 |
38 |
|
|
37 |
|
| Additional paid-in capital |
55,421 |
|
|
49,944 |
|
| Accumulated deficit |
(50,472 |
) |
|
(13,327 |
) |
| Accumulated other comprehensive loss |
(14,348 |
) |
|
(2,669 |
) |
| Total stockholders’ (deficit) equity |
(9,361 |
) |
|
33,985 |
|
| Total liabilities and stockholders’ (deficit) equity |
$ |
330,392 |
|
|
$ |
332,285 |
|
A.M. Castle & Co.
Consolidated Statements of Cash Flows |
| |
Successor |
|
|
Predecessor |
| |
Year Ended
December 31, 2018 |
|
September 1, 2017
through
December 31, 2017 |
|
|
January 1, 2017
through
August 31, 2017 |
| (Dollars in thousands) |
|
|
|
| Operating activities: |
|
|
|
|
|
|
| Net (loss) income |
$ |
(37,145 |
) |
|
$ |
(13,327 |
) |
|
|
$ |
36,190 |
|
| Adjustments to reconcile net (loss) income to net cash used in operating activities: |
|
|
|
|
|
|
| Depreciation and amortization |
9,082 |
|
|
3,213 |
|
|
|
10,150 |
|
| Amortization of deferred financing costs and debt discount |
8,160 |
|
|
1,958 |
|
|
|
3,810 |
|
| Unrealized (gain) loss on embedded debt conversion option |
— |
|
|
(2,352 |
) |
|
|
146 |
|
| Noncash interest paid in kind |
13,502 |
|
|
3,865 |
|
|
|
— |
|
| Noncash reorganization items, net |
— |
|
|
— |
|
|
|
(87,107 |
) |
| Loss on sale of property, plant & equipment |
64 |
|
|
26 |
|
|
|
7 |
|
| Unrealized foreign currency transaction loss (gain) |
580 |
|
|
(1,709 |
) |
|
|
(4,439 |
) |
| Deferred income taxes |
(7,071 |
) |
|
(3,437 |
) |
|
|
(953 |
) |
| Non-cash compensation expense |
2,784 |
|
|
866 |
|
|
|
630 |
|
| Other, net |
631 |
|
|
634 |
|
|
|
537 |
|
| Changes in assets and liabilities: |
|
|
|
|
|
|
| Accounts receivable |
(6,100 |
) |
|
(2,205 |
) |
|
|
(6,061 |
) |
| Inventories |
(7,730 |
) |
|
(1,978 |
) |
|
|
(2,703 |
) |
| Prepaid expenses and other current assets |
(2,955 |
) |
|
752 |
|
|
|
(3,100 |
) |
| Other noncurrent assets |
740 |
|
|
324 |
|
|
|
1,664 |
|
| Prepaid pension costs |
(2,717 |
) |
|
(1,395 |
) |
|
|
(849 |
) |
| Accounts payable |
1,370 |
|
|
(4,548 |
) |
|
|
8,602 |
|
| Accrued payroll and employee benefits |
3,453 |
|
|
945 |
|
|
|
(2,670 |
) |
| Income tax payable and receivable |
1,624 |
|
|
(828 |
) |
|
|
(340 |
) |
| Accrued and other current liabilities |
(1,120 |
) |
|
(773 |
) |
|
|
(3,332 |
) |
| Postretirement benefit obligations and other noncurrent liabilities |
(933 |
) |
|
(585 |
) |
|
|
(471 |
) |
| Net cash used in operating activities |
(23,781 |
) |
|
(20,554 |
) |
|
|
(50,289 |
) |
| Investing activities: |
|
|
|
|
|
|
| Capital expenditures |
(5,687 |
) |
|
(3,742 |
) |
|
|
(2,850 |
) |
| Proceeds from sale of property, plant and equipment |
77 |
|
|
31 |
|
|
|
619 |
|
| Cash collateralization of letters of credit |
— |
|
|
— |
|
|
|
7,492 |
|
| Net cash (used in) from investing activities |
(5,610 |
) |
|
(3,711 |
) |
|
|
5,261 |
|
| Financing activities: |
|
|
|
|
|
|
| Short-term borrowings, net |
(115 |
) |
|
1,720 |
|
|
|
3,797 |
|
| Proceeds from long-term debt including credit facilities |
49,954 |
|
|
22,973 |
|
|
|
195,026 |
|
| Repayments of long-term debt including credit facilities |
(21,130 |
) |
|
(25 |
) |
|
|
(175,414 |
) |
| Payments of debt issue costs |
(499 |
) |
|
— |
|
|
|
(1,831 |
) |
| Payments of build-to-suit liability |
(897 |
) |
|
— |
|
|
|
(3,000 |
) |
| Net cash from financing activities |
27,313 |
|
|
24,668 |
|
|
|
18,578 |
|
| Effect of exchange rate changes on cash and cash equivalents |
(358 |
) |
|
637 |
|
|
|
890 |
|
| Net change in cash and cash equivalents |
(2,436 |
) |
|
1,040 |
|
|
|
(25,560 |
) |
| Cash and cash equivalents—beginning of period |
11,104 |
|
|
10,064 |
|
|
|
35,624 |
|
| Cash and cash equivalents—end of period |
$ |
8,668 |
|
|
$ |
11,104 |
|
|
|
$ |
10,064 |
|
| |
|
| LONG-TERM DEBT |
Successor |
| (Dollars in thousands) |
December 31,
2018 |
|
December 31,
2017 |
| |
|
|
|
| 5.00% / 7.00% Second Lien Notes due August 31, 2022 |
$ |
180,894 |
|
|
$ |
168,767 |
|
| Floating rate Revolving A Credit Facility due February 28, 2022 |
108,488 |
|
|
101,047 |
|
| 12.00% Revolving B Credit Facility due February 28, 2022 |
22,875 |
|
|
— |
|
| Other, primarily capital leases |
180 |
|
|
288 |
|
| Less: unvested restricted Second Lien Notes due August 31, 2022 |
(1,378 |
) |
|
(2,144 |
) |
| Less: unamortized discount |
(64,491 |
) |
|
(67,937 |
) |
| Less: unamortized debt issuance costs |
(422 |
) |
|
— |
|
| Total long-term debt |
246,146 |
|
|
200,021 |
|
| Less: current portion of long-term debt |
119 |
|
|
118 |
|
| Total long-term portion |
$ |
246,027 |
|
|
$ |
199,903 |
|
For Further Information:
Ed Quinn
+1 (847) 455-7111
Email: Inquiries@amcastle.com
