MATERIAL SCIENCES CORP

CIK:0000755003|SEC Filings

Sale of Elk Grove Village Building

9 Months Ended

Nov. 30, 2013

(16)

Sale of Elk Grove Village Building. In April 2011, after receiving authorization from the Board of Directors, management committed to a plan to sell the building located at 2200 East Pratt Boulevard in Elk Grove Village, Illinois (the “Facility”). This building houses our corporate offices and housed our coil coating assets before they were sold in April 2010.

On July 23, 2012, MSC began leasing a portion of the Facility to Main Steel Polishing Company, Inc. The lease includes approximately 240,000 square feet of the 280,000 square foot Facility. MSC entered into this lease to enhance the attractiveness of the Facility to potential buyers.

On August 31, 2012, MSC sold the Facility to Torburn Partners, Inc. (“Torburn”) for cash. The net proceeds from the sale were approximately $9.2 million, which reflects all selling costs and the executory costs related to the lease discussed above. The Company recognized a gain of approximately $3.2 million on the sale. MSC entered into a four-year lease with Torburn under which MSC continues to occupy approximately 35,000 square feet of office space in the Facility to house its corporate and domestic operations.

Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Nov. 30, 2013	Nov. 30, 2012
Cash Flows From: Operating Activities:
Net Income	$ 3,452	$ 7,642
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation, Amortization and Accretion	2,924	3,546
Equity in Results of Joint Venture	(114)	(204)
Deferred Income Taxes	1,680	3,462
Gain on Sales of Assets		(3,216)
Compensatory Effect of Stock Plans	628	460
Changes in Assets and Liabilities:
Receivables	(3,115)	(391)
Income Taxes Receivable	1,091	(1,341)
Prepaid Expenses	(266)	(112)
Inventories	2,364	(3,254)
Accounts Payable	2,448	(273)
Accrued Expenses	(1,085)	(90)
Pension and Postretirement Liabilities	(2,628)	(1,299)
Other, Net	(920)	(406)
Net Cash Provided by Operating Activities	6,459	4,524
Investing Activities:
Capital Expenditures	(4,615)	(3,465)
Investment in Research Entity	(210)
Proceeds from Sale of Assets		9,180
Net Cash Provided by (Used In) Investing Activities	(4,825)	5,715
Financing Activities:
Purchases of Treasury Stock		(2,333)
Restricted Cash	(1,123)
Issuance of Common Stock	455	4
Net Cash Used in Financing Activities	(668)	(2,329)
Effect of Exchange Rate Changes on Cash	(138)	(17)
Net Increase (Decrease) in Cash and Cash Equivalents	828	7,893
Cash and Cash Equivalents at Beginning of Period	37,508	28,201
Cash and Cash Equivalents at End of Period	38,336	36,094
Non-Cash Transactions:
Capital Expenditures in Accounts Payable at End of Period	303	797
Supplemental Cash Flow Disclosures:
Interest Paid	12	24
Income Taxes Paid (Refunded), Net	$ (1,413)	$ 1,818

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Nov. 30, 2013	Feb. 28, 2013
Current Assets:
Cash and Cash Equivalents	$ 38,336	$ 37,508
Restricted Cash	1,123
Receivables, Less Reserves and Allowances of $817 and $489, Respectively	20,871	17,675
Income Taxes Receivable	377	1,392
Prepaid Expenses	823	554
Inventories	22,654	24,944
Short Term Deferred Tax Assets	5,516	4,191
Total Current Assets	89,700	86,264
Property, Plant and Equipment	124,508	120,586
Accumulated Depreciation	(94,415)	(91,426)
Net Property, Plant and Equipment	30,093	29,160
Other Assets:
Investment in Joint Venture	2,328	2,394
Long Term Deferred Tax Assets	5,984	9,147
Other	320	141
Total Other Assets	8,632	11,682
Total Assets	128,425	127,106
Current Liabilities:
Accounts Payable	12,660	11,061
Accrued Payroll Related Expenses	2,561	2,594
Accrued Expenses	4,836	5,799
Total Current Liabilities	20,057	19,454
Long-Term Liabilities:
Pension and Postretirement Liabilities	4,716	7,344
Long-Term incentives	1,333	2,652
Other	2,588	2,720
Total Long-Term Liabilities	8,637	12,716
Commitments and Contingencies
Shareowners' Equity:
Preferred Stock
Common Stock	383	381
Additional Paid-In Capital	82,171	81,089
Treasury Stock at Cost	(76,756)	(76,756)
Retained Earnings	96,499	93,046
Accumulated Other Comprehensive Income (Loss)	(2,566)	(2,824)
Total Shareowners' Equity	99,731	94,936
Total Liabilities and Equity	$ 128,425	$ 127,106