EXOPACK HOLDING CORP

CIK:0001186362|SEC Filings

Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2013

Accumulated Other Comprehensive Income (Loss)

The following table summarizes the components and changes to the components of accumulated other comprehensive income (loss) for the six months ended June 30, 2013:



(in thousands of dollars)	Foreign Currency Translation Adjustments			Pension and Postretirement Plans Liability⁽¹⁾			Cumulative Tax Effect on Liability		Accumulated Other Comprehensive Income (Loss)
Balance as of December 31, 2012	$	41		$	(26,768	)	$	3,776	$	(22,951	)
Foreign currency translation	(2,347		)				—		(2,347		)
Amounts reclassified from accumulated other comprehensive income (loss)²	—			1,015			—		1,015
Balance as of June 30, 2013	$	(2,306	)	$	(25,753	)	$	3,776	$	(24,283	)


(1)	The accrued benefit obligation is actuarially determined on an annual basis as of December 31.

(2)

Amounts reclassified from accumulated other comprehensive income (loss) represent amortization of net actuarial loss related to the Company's Pension Plans and Postretirement Benefit Plan to selling, general and administrative expense in the condensed consolidated statement of income. See Note 6 for breakout of amounts reclassified from accumulated other comprehensive income (loss) by quarter. The Company recorded a deferred tax liability of $384,000 related to the pension and postretirement plan liabilities. This deferred tax liability was fully offset by a reduction to the valuation allowance against the Company's cumulative deferred tax asset pertaining to the Company's pension and postretirement plan liabilities. This accumulated other comprehensive income component is included in the computation of net periodic pension cost (see Note 6 for additional details).

Supplemental Guarantor Financial Information - Consolidating Statements of Cash Flows (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash flows from operating activities
Net (loss) income	$ (5,831)	$ (9,952)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	21,440	20,599
Stock compensation expense	201	285
(Gain) loss on sale and disposition of property, plant and equipment	(129)	(1)
Changes in operating assets and liabilities:
Receivables	3,429	(6,193)
Inventories	(11,248)	9,931
Prepaid expenses and other assets	(4,411)	874
Accounts payable and accrued and other liabilities	13,749	(10,367)
Income tax receivable/payable	(8)	204
Net cash provided by (used in) operating activities	17,582	5,290
Cash flows from investing activities:
Repayments from (Investment in) joint venture	(369)	62
Purchases of property, plant and equipment, including capitalized software	(22,149)	(11,709)
Proceeds from sales of property, plant and equipment	174	1
Net cash provided by (used in) investing activities	(22,344)	(11,646)
Cash flows from financing activities:
Repayments of term loan	(1,750)	(1,750)
Repayment of capital lease obligations	(1,393)	(1,223)
Deferred loan costs paid	(2,177)	(96)
Borrowings under revolving credit facility	385,926	345,973
Repayments of revolving credit facility	(374,258)	(335,445)
Net cash provided by (used in) financing activities	6,348	7,459
Effect of exchange rate changes on cash	(318)	(8)
Increase (decrease) in cash	1,268	1,095
Cash
Beginning of period	3,150	2,317
End of period	4,418	3,412
Parent
Cash flows from operating activities
Net (loss) income	(5,831)	(9,952)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	497	507
Equity in (earnings) loss of affiliates	(5,316)	(1,288)
Dividends received
Deferred income tax provision (benefit)	(1)
Stock compensation expense	201	285
(Gain) loss on sale and disposition of property, plant and equipment
Changes in operating assets and liabilities:
Receivables
Inventories
Prepaid expenses and other assets
Accounts payable and accrued and other liabilities		(1)
Income tax receivable/payable
Net cash provided by (used in) operating activities	(10,450)	(10,449)
Cash flows from investing activities:
Repayments from (Investment in) joint venture
Purchases of property, plant and equipment, including capitalized software
Proceeds from sales of property, plant and equipment
Investments in subsidiaries	(201)	(285)
Net cash provided by (used in) investing activities	(201)	(285)
Cash flows from financing activities:
Repayments of term loan
Repayment of capital lease obligations
Deferred loan costs paid	(3)	(96)
Dividends paid
Borrowings under revolving credit facility
Repayments of revolving credit facility
Intercompany (repayments) borrowings	10,654	10,830
Capital contribution from guarantors
Net cash provided by (used in) financing activities	10,651	10,734
Effect of exchange rate changes on cash
Increase (decrease) in cash
Cash
Beginning of period
End of period
Guarantor Subsidiaries
Cash flows from operating activities
Net (loss) income	5,316	1,288
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	18,950	18,203
Equity in (earnings) loss of affiliates	(6,629)	(1,670)
Dividends received	2,510	2,214
Deferred income tax provision (benefit)	405	(71)
Stock compensation expense	201	285
(Gain) loss on sale and disposition of property, plant and equipment	(159)	(1)
Changes in operating assets and liabilities:
Receivables	7,590	(1,771)
Inventories	(11,089)	7,310
Prepaid expenses and other assets	(407)	938
Accounts payable and accrued and other liabilities	7,988	(10,283)
Income tax receivable/payable	(98)	(158)
Net cash provided by (used in) operating activities	24,578	16,284
Cash flows from investing activities:
Repayments from (Investment in) joint venture	(369)	62
Purchases of property, plant and equipment, including capitalized software	(19,083)	(10,818)
Proceeds from sales of property, plant and equipment	174	1
Investments in subsidiaries
Net cash provided by (used in) investing activities	(19,278)	(10,755)
Cash flows from financing activities:
Repayments of term loan	(1,750)	(1,750)
Repayment of capital lease obligations	(1,393)	(1,223)
Deferred loan costs paid	(2,174)
Dividends paid
Borrowings under revolving credit facility	382,862	310,977
Repayments of revolving credit facility	(371,041)	(300,588)
Intercompany (repayments) borrowings	(8,916)	(11,564)
Capital contribution from guarantors		(800)
Net cash provided by (used in) financing activities	(2,412)	(4,948)
Effect of exchange rate changes on cash	(1,485)	(123)
Increase (decrease) in cash	1,403	458
Cash
Beginning of period	14	111
End of period	1,417	569
Nonguarantor Subsidiaries
Cash flows from operating activities
Net (loss) income	6,629	1,670
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	1,993	1,889
Equity in (earnings) loss of affiliates
Dividends received
Deferred income tax provision (benefit)	(14)	(19)
Stock compensation expense
(Gain) loss on sale and disposition of property, plant and equipment	30
Changes in operating assets and liabilities:
Receivables	(4,161)	(4,422)
Inventories	(159)	2,621
Prepaid expenses and other assets	(4,004)	(64)
Accounts payable and accrued and other liabilities	5,761	(83)
Income tax receivable/payable	90	362
Net cash provided by (used in) operating activities	6,165	1,954
Cash flows from investing activities:
Repayments from (Investment in) joint venture
Purchases of property, plant and equipment, including capitalized software	(3,066)	(891)
Proceeds from sales of property, plant and equipment
Investments in subsidiaries
Net cash provided by (used in) investing activities	(3,066)	(891)
Cash flows from financing activities:
Repayments of term loan
Repayment of capital lease obligations
Deferred loan costs paid
Dividends paid	(2,510)	(2,214)
Borrowings under revolving credit facility	3,064	34,996
Repayments of revolving credit facility	(3,217)	(34,857)
Intercompany (repayments) borrowings	(1,738)	734
Capital contribution from guarantors		800
Net cash provided by (used in) financing activities	(4,401)	(541)
Effect of exchange rate changes on cash	1,167	115
Increase (decrease) in cash	(135)	637
Cash
Beginning of period	3,136	2,206
End of period	3,001	2,843
Eliminations
Cash flows from operating activities
Net (loss) income	(11,945)	(2,958)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization
Equity in (earnings) loss of affiliates	11,945	2,958
Dividends received	(2,510)	(2,214)
Deferred income tax provision (benefit)
Stock compensation expense	(201)	(285)
(Gain) loss on sale and disposition of property, plant and equipment
Changes in operating assets and liabilities:
Receivables
Inventories
Prepaid expenses and other assets
Accounts payable and accrued and other liabilities
Income tax receivable/payable
Net cash provided by (used in) operating activities	(2,711)	(2,499)
Cash flows from investing activities:
Repayments from (Investment in) joint venture
Purchases of property, plant and equipment, including capitalized software
Proceeds from sales of property, plant and equipment
Investments in subsidiaries	201	285
Net cash provided by (used in) investing activities	201	285
Cash flows from financing activities:
Repayments of term loan
Repayment of capital lease obligations
Deferred loan costs paid
Dividends paid	2,510	2,214
Borrowings under revolving credit facility
Repayments of revolving credit facility
Intercompany (repayments) borrowings
Capital contribution from guarantors
Net cash provided by (used in) financing activities	2,510	2,214
Effect of exchange rate changes on cash
Increase (decrease) in cash
Cash
Beginning of period
End of period
Consolidated
Cash flows from operating activities
Net (loss) income	(5,831)	(9,952)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization	21,440	20,599
Equity in (earnings) loss of affiliates
Dividends received
Deferred income tax provision (benefit)	390	(90)
Stock compensation expense	201	285
(Gain) loss on sale and disposition of property, plant and equipment	(129)	(1)
Changes in operating assets and liabilities:
Receivables	3,429	(6,193)
Inventories	(11,248)	9,931
Prepaid expenses and other assets	(4,411)	874
Accounts payable and accrued and other liabilities	13,749	(10,367)
Income tax receivable/payable	(8)	204
Net cash provided by (used in) operating activities	17,582	5,290
Cash flows from investing activities:
Repayments from (Investment in) joint venture	(369)	62
Purchases of property, plant and equipment, including capitalized software	(22,149)	(11,709)
Proceeds from sales of property, plant and equipment	174	1
Investments in subsidiaries
Net cash provided by (used in) investing activities	(22,344)	(11,646)
Cash flows from financing activities:
Repayments of term loan	(1,750)	(1,750)
Repayment of capital lease obligations	(1,393)	(1,223)
Deferred loan costs paid	(2,177)	(96)
Dividends paid
Borrowings under revolving credit facility	385,926	345,973
Repayments of revolving credit facility	(374,258)	(335,445)
Intercompany (repayments) borrowings
Capital contribution from guarantors
Net cash provided by (used in) financing activities	6,348	7,459
Effect of exchange rate changes on cash	(318)	(8)
Increase (decrease) in cash	1,268	1,095
Cash
Beginning of period	3,150	2,317
End of period	$ 4,418	$ 3,412

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012	Dec. 31, 2011
Current assets
Cash	$ 4,418	$ 3,150	$ 3,412	$ 2,317
Trade accounts receivable (net of allowance for uncollectible accounts of $1,707 and $2,060 as of June 30, 2013 and December 31, 2012, respectively)	83,920	88,186
Other receivables	5,273	4,259
Inventories	100,706	90,103
Deferred income taxes	3,219	3,139
Prepaid expenses and other current assets	4,152	4,559
Total current assets	201,688	193,396
Property, plant, and equipment, net	226,891	223,298
Deferred financing costs, net	14,716	14,164
Intangible assets, net	86,794	85,413
Goodwill	69,630	69,673
Other assets	8,179	8,226
Total assets	607,898	594,170
Current liabilities
Revolving credit facility and current portion of long-term debt and capital leases	35,336	23,557
Accounts payable	72,873	62,432
Accrued liabilities	34,112	34,414
Income taxes payable	1,448	1,532
Total current liabilities	143,769	121,935
Long-term liabilities
Long-term debt, less current portion	574,500	576,250
Capital lease obligations, less current portion	11,659	13,163
Deferred income taxes	23,226	22,810
Other liabilities	30,417	28,723
Total long-term liabilities	639,802	640,946
Commitments and contingencies (Note 8)
Stockholder’s equity (deficit)
Preferred stock, par value, $0.001 per share - 100,000 shares authorized, no shares issued and outstanding as of June 30, 2013 and December 31, 2012
Common stock, par value, $0.001 per share - 2,900,000 shares authorized, 1 share issued and outstanding as of June 30, 2013 and December 31, 2012
(Distributions in excess of) Paid-in capital	(75,381)	(75,582)
Accumulated other comprehensive income (loss), net	(24,283)	(22,951)
Retained earnings (accumulated deficit)	(76,009)	(70,178)
Total stockholder’s equity (deficit)	(175,673)	(168,711)
Total liabilities and stockholder’s equity (deficit)	$ 607,898	$ 594,170