SHERIDAN GROUP INC

CIK:0001056035|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract]
Net sales	$ 66,388,389	$ 65,009,967	$ 134,439,007	$ 134,952,225
Cost of sales	52,328,510	51,646,706	106,705,068	107,903,404
Gross profit	14,059,879	13,363,261	27,733,939	27,048,821
Selling and administrative expenses	8,271,079	8,234,292	16,394,544	16,737,126
Gain on disposition of fixed assets	(5,405)	(81,865)	(58,148)	(77,789)
Restructuring costs	(4,144)	(1,819)	62,604	2,945
Amortization of intangibles	421,463	421,463	842,926	842,926
Total operating expenses	8,682,993	8,572,071	17,241,926	17,505,208
Operating income	5,376,886	4,791,190	10,492,013	9,543,613
Other (income) expense:
Interest expense	4,843,227	5,332,736	9,815,742	10,839,206
Interest income	(763)	(341)	(17,877)	(5,233)
Gain on repurchase of notes payable	0	(337,332)	(678,678)	(755,282)
Other, net	24,988	48,597	38,398	46,162
Total other expense	4,867,452	5,043,660	9,157,585	10,124,853
Income (loss) before income taxes	509,434	(252,470)	1,334,428	(581,240)
Income tax expense (benefit)	404,385	(237,132)	834,508	(400,222)
Net income (loss)	$ 105,049	$ (15,338)	$ 499,920	$ (181,018)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash flows provided by operating activities:
Net income (loss)	$ 499,920	$ (181,018)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation	8,576,521	8,368,652
Amortization of intangible assets	842,926	842,926
Provision for doubtful accounts	8,169	(15,021)
Stock-based compensation	9,274	5,390
Amortization of deferred financing costs and debt discount, included in interest expense	2,178,269	2,437,210
Deferred income tax provision (benefit)	771,728	(475,658)
Gain on repurchase of notes payable	(678,678)	(755,282)
Gain on disposition of fixed assets	(58,148)	(77,789)
Changes in operating assets and liabilities
Accounts receivable	1,894,025	2,684,608
Inventories	653,281	(823,585)
Other current assets	85,824	1,478,923
Refundable income taxes	0	87,281
Other assets	(36,840)	39,991
Accounts payable	(1,827,839)	(2,157,108)
Accrued expenses	(158,370)	1,849,580
Income taxes payable	(49,337)	0
Other liabilities	(23,731)	(30,233)
Net cash provided by operating activities	12,686,994	13,278,867
Cash flows used in investing activities:
Purchases of property, plant and equipment	(3,714,902)	(4,227,161)
Interest capitalized in connection with purchases of property, plant and equipment	(116,826)	(108,000)
Proceeds from sale of fixed assets, net of disposal costs	76,050	80,880
Net cash used in investing activities	(3,755,678)	(4,254,281)
Cash flows used in financing activities:
Borrowing of working capital facility	42,953,431	52,753,285
Repayment of working capital facility	(46,102,000)	(54,300,000)
Repayment of long term debt	(5,671,468)	(7,444,586)
Payment of deferred financing costs in connection with working capital facility	(7,500)	(15,000)
Net cash used in financing activities	(8,827,537)	(9,006,301)
Net increase in cash and cash equivalents	103,779	18,285
Cash and cash equivalents at beginning of period	1,597,556	475,324
Cash and cash equivalents at end of period	1,701,335	493,609
Non-cash investing and financing activities
Asset additions in accounts payable	$ 351,654	$ 1,169,772

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 1,701,335	$ 1,597,556
Accounts receivable, net of allowance for doubtful accounts of $359,750 and $282,174, respectively	23,641,797	25,543,990
Inventories, net	16,658,852	17,312,133
Other current assets	4,161,166	4,231,477
Total current assets	46,163,150	48,685,156
Property, plant and equipment, net	87,621,748	93,136,696
Intangibles, net	26,321,927	27,164,853
Goodwill	33,978,641	33,978,641
Deferred financing costs, net	1,268,222	2,270,854
Other assets	1,099,166	1,062,326
Total assets	196,452,854	206,298,526
Current liabilities:
Accounts payable	12,571,511	15,151,602
Accrued expenses	12,996,068	13,154,439
Current portion of notes payable and working capital facility	119,643,942	0
Income taxes payable	10,071	59,408
Total current liabilities	145,221,592	28,365,449
Notes payable and working capital facility	0	127,974,519
Deferred income taxes and other liabilities	21,635,659	20,872,149
Total liabilities	166,857,251	177,212,117
Stockholder's Equity
Common stock, $0.01 par value; 100 shares authorized; 1 share issued and outstanding at June 30, 2013 and December 31, 2012	0	0
Additional paid-in capital	42,126,469	42,117,195
Accumulated deficit	(12,530,866)	(13,030,786)
Total stockholder's equity	29,595,603	29,086,409
Total liabilities and stockholder's equity	$ 196,452,854	$ 206,298,526