ROCKWOOD SPECIALTIES GROUP INC

CIK:0001261302|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Net sales	$ 940.9	$ 801.2	$ 2,854.9	$ 2,393.3
Cost of products sold	609.4	535.2	1,856.7	1,601.5
Gross profit	331.5	266.0	998.2	791.8
Selling, general and administrative expenses	176.0	167.7	537.8	501.8
Restructuring and other severance costs	4.5	1.5	9.5	2.8
Asset write-downs and other		0.1	0.3	2.4
Operating income	151.0	96.7	450.6	284.8
Other expenses, net:
Interest expense, net	(26.3)	(38.6)	(74.0)	(116.7)
Loss on early extinguishment/modification of debt	(0.1)	(1.6)	(16.6)	(1.6)
Foreign exchange (loss) gain on financing activities, net	(2.4)	0.9	1.8	0.8
Other, net			(0.1)	0.5
Other expenses, net	(28.8)	(39.3)	(88.9)	(117.0)
Income from continuing operations before taxes	122.2	57.4	361.7	167.8
Income tax provision	34.4	16.4	101.0	46.4
Income from continuing operations	87.8	41.0	260.7	121.4
Income from discontinued operations, net of tax		2.5	0.9	13.6
Gain on sale of discontinued operations, net of tax			119.4
Net income	87.8	43.5	381.0	135.0
Net income attributable to noncontrolling interest	(11.9)	(3.0)	(32.6)	(5.2)
Net income attributable to Rockwood Specialties Group, Inc.	75.9	40.5	348.4	129.8
Amounts attributable to Rockwood Specialties Group, Inc.:
Income from continuing operations	75.9	38.0	228.1	116.2
Income from discontinued operations		2.5	120.3	13.6
Net income	$ 75.9	$ 40.5	$ 348.4	$ 129.8

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Millions	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 381.0	$ 135.0
Adjustments to reconcile net income to net cash provided by operating activities:
Income from discontinued operations, net of tax	(0.9)	(13.6)
Gain on sale of discontinued operations, net of tax	(119.4)
Depreciation and amortization	200.2	188.4
Deferred financing costs amortization	3.7	4.5
Loss on early extinguishment/modification of debt	16.6	1.6
Foreign exchange gain on financing activities, net	(1.8)	(0.8)
Fair value adjustment of derivatives	(1.0)	(8.9)
Bad debt provision		(0.6)
Stock-based compensation	9.8	9.6
Deferred income taxes	21.3	23.9
Asset write-downs and other	0.3	2.4
Changes in assets and liabilities, net of the effect of foreign currency translation and acquisitions:
Accounts receivable	(79.6)	(68.9)
Inventories	(71.4)	(20.4)
Prepaid expenses and other assets	3.5	(3.5)
Accounts payable	(18.8)	(12.1)
Income taxes payable	34.6	0.4
Accrued expenses and other liabilities	(3.8)	127.2
Net cash provided by operating activities of continuing operations	374.3	364.2
Net cash (used in) provided by operating activities of discontinued operations	(1.8)	3.3
Net cash provided by operating activities	372.5	367.5
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(191.4)	(116.1)
Government grants received	9.8	1.5
Acquisitions, including payments for prior acquisitions	(0.8)	(0.9)
Proceeds on sale of assets	0.7	2.0
Net cash used in investing activities of continuing operations	(181.7)	(113.5)
Net cash provided by (used in) investing activities of discontinued operations, representing net sale proceeds in 2011	300.7	(1.6)
Net cash provided by (used in) investing activities	119.0	(115.1)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of Titanium Dioxide Pigments revolving credit facility		(14.3)
Prepayment of senior secured debt	(408.9)	(200.2)
Repayment of senior secured debt	(25.7)	(30.3)
Proceeds from borrowings		19.3
Payments on other long-term debt	(2.9)	(45.2)
Loan repayments to noncontrolling shareholders	(5.0)
Deferred financing costs	(5.3)	(0.3)
Fees related to early extinguishment/modification of debt	(13.4)
Distributions to noncontrolling shareholders	(9.8)
Net cash used in financing activities	(471.0)	(271.0)
Effect of exchange rate changes on cash and cash equivalents	(9.9)	(1.1)
Net increase (decrease) in cash and cash equivalents	10.6	(19.7)
Less net (decrease) increase in cash and cash equivalents from discontinued operations	(16.6)	1.7
Increase (decrease) in cash and cash equivalents from continuing operations	27.2	(21.4)
Cash and cash equivalents of continuing operations, beginning of period	303.2	286.2
Cash and cash equivalents of continuing operations, end of period	330.4	264.8
Supplemental disclosures of cash flow information:
Interest paid	73.1	112.8
Income taxes paid, net of refunds	45.1	26.3
Non-cash investing activities:
Acquisition of capital equipment	$ 21.9	$ 12.1

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Millions	Sep. 30, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 330.4	$ 303.2
Accounts receivable, net	512.5	436.8
Inventories	608.7	541.8
Deferred income taxes	22.3	82.7
Prepaid expenses and other current assets	60.1	79.1
Assets of discontinued operations		154.1
Total current assets	1,534.0	1,597.7
Property, plant and equipment, net	1,588.1	1,566.9
Goodwill	877.3	877.1
Other intangible assets, net	536.8	587.6
Deferred financing costs, net	15.7	17.2
Deferred income taxes	17.8	18.3
Other assets	42.2	38.5
Total assets	4,611.9	4,703.3
Current liabilities:
Accounts payable	223.7	249.6
Income taxes payable	46.3	20.2
Accrued compensation	157.4	165.2
Accrued expenses and other current liabilities	217.8	208.1
Deferred income taxes	2.6	2.6
Long-term debt, current portion	64.8	465.7
Liabilities of discontinued operations		27.6
Total current liabilities	712.6	1,139.0
Long-term debt	1,664.4	1,695.3
Pension and related liabilities	403.7	399.6
Deferred income taxes	110.1	77.9
Other liabilities	100.8	102.5
Total liabilities	2,991.6	3,414.3
Rockwood Specialties Group, Inc. stockholders' equity:
Common stock ($0.01 par value, 5,000 shares authorized, 1,910 shares issued and outstanding)
Paid-in capital	1,044.0	1,044.0
Accumulated other comprehensive income	96.9	135.7
Retained earnings (deficit)	168.3	(180.1)
Total Rockwood Specialties Group, Inc. stockholders' equity	1,309.2	999.6
Noncontrolling interest	311.1	289.4
Total equity	1,620.3	1,289.0
Total liabilities and equity	$ 4,611.9	$ 4,703.3