Polypore International, Inc.

CIK:0001292556|SEC Filings

Condensed consolidated statements of income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Income Statement [Abstract]
Net sales	$ 148,324	$ 166,621	$ 286,232	$ 327,623
Cost of goods sold	98,530	107,983	187,182	210,469
Gross profit	49,794	58,638	99,050	117,154
Selling, general and administrative expenses	34,645	38,207	67,986	74,363
Operating income	15,149	20,431	31,064	42,791
Other (income) expense:
Interest expense, net	3,204	5,613	6,375	15,233
Foreign currency and other	2,599	(1,760)	(7,841)	(1,162)
Integrated sale transactions expenses	1,126	0	4,080	0
Costs related to purchase of 7.5% senior notes	0	(24,937)	0	(24,937)
Write-off of loan acquisition costs and other expenses associated with refinancing of senior credit agreement	0	1,148	0	1,148
Other (income) expense total	6,929	29,938	2,614	40,156
Income (loss) from continuing operations before income taxes	8,220	(9,507)	28,450	2,635
Income taxes	2,233	(5,158)	7,763	(1,758)
Income (loss) from continuing operations	5,987	(4,349)	20,687	4,393
Loss from discontinued operations, net of income taxes	0	(328)	0	(328)
Net income (loss)	5,987	(4,677)	20,687	4,065
Net income attributable to noncontrolling interest	338	208	653	553
Net income (loss) attributable to Polypore International, Inc.	5,649	(4,885)	20,034	3,512
Net income (loss) attributable to Polypore International, Inc.:
Income (loss) from continuing operations	5,649	(4,557)	20,034	3,840
Loss from discontinued operations	0	(328)	0	(328)
Net income (loss) attributable to Polypore International, Inc.	$ 5,649	$ (4,885)	$ 20,034	$ 3,512
Net income (loss) attributable to Polypore International, Inc. per share - basic:
Continuing operations (in dollars per share)	$ 0.13	$ (0.10)	$ 0.45	$ 0.09
Discontinued operations (in dollars per share)	0.00	(0.01)	0.00	(0.01)
Net income (loss) attributable to Polypore International, Inc. per share (in dollars per share)	0.13	(0.11)	0.45	0.08
Net income (loss) attributable to Polypore International, Inc. per share - diluted:
Continuing operations (in dollars per share)	0.12	(0.10)	0.44	0.08
Discontinued operations (in dollars per share)	0.00	(0.01)	0.00	0.00
Net income (loss) attributable to Polypore International, Inc. per share (in dollars per share)	$ 0.12	$ (0.11)	$ 0.44	$ 0.08
Weighted average shares outstanding:
Basic (in shares)	44,744,379	44,886,206	44,731,997	44,885,467
Diluted (in shares)	45,804,856	44,886,206	45,434,261	45,469,493

Condensed consolidated statements of cash flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014
Operating activities:
Net income (loss)	$ 20,687	$ 4,065
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	21,040	22,084
Amortization expense	5,546	5,569
Amortization of loan acquisition costs	698	1,067
Stock-based compensation	6,521	11,510
Deferred income taxes	(4,872)	(12,978)
Foreign currency gain	(3,857)	(995)
Costs related to purchase of 7.5% senior notes	0	24,937
Write-off of loan acquisition costs and other expenses associated with refinancing of senior credit agreement	0	1,148
Changes in operating assets and liabilities:
Accounts receivable	(380)	(9,166)
Inventories	(5,146)	(2,220)
Prepaid and other current assets	(1,415)	2,923
Accounts payable and accrued liabilities	1,686	(11,607)
Income taxes payable	4,213	3,717
Other, net	2,845	4,448
Net cash provided by operating activities	47,566	44,502
Investing activities:
Purchases of property, plant and equipment, net	(24,472)	(8,937)
Net cash used in investing activities	(24,472)	(8,937)
Financing activities:
Principal payments on debt	(12,500)	(7,500)
Proceeds from revolving credit facility	100,000	33,000
Payments on revolving credit facility	(100,000)	(14,000)
Repurchases of common stock	(1,732)	(9,458)
Proceeds from stock option exercises	61	1,002
Proceeds from new senior credit agreement	0	500,000
Principal payments in connection with refinancing of senior credit agreement	0	(273,750)
Purchase of 7.5% senior notes	0	(385,542)
Loan acquisition costs	0	(4,033)
Net cash used in financing activities	(14,171)	(160,281)
Effect of exchange rate changes on cash and cash equivalents	(4,622)	(1,467)
Net increase (decrease) in cash and cash equivalents	4,301	(126,183)
Cash and cash equivalents at beginning of period	44,458	163,423
Cash and cash equivalents at end of period	$ 48,759	$ 37,240

Condensed consolidated balance sheets - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Current assets:
Cash and cash equivalents	$ 48,759	$ 44,458
Accounts receivable, net	118,750	121,755
Inventories	102,673	101,176
Prepaid and other	17,803	16,673
Total current assets	287,985	284,062
Property, plant and equipment, net	550,106	558,235
Goodwill	444,512	444,512
Intangibles and loan acquisition costs, net	71,481	78,303
Other	9,602	10,180
Total assets	1,363,686	1,375,292
Current liabilities:
Accounts payable	28,539	24,358
Accrued liabilities	52,182	52,697
Income taxes payable	6,560	2,310
Current portion of debt	25,000	25,000
Total current liabilities	112,281	104,365
Debt, less current portion	450,000	462,500
Pension obligations, less current portion	112,914	121,038
Deferred income taxes	34,373	40,319
Other	$ 30,267	$ 29,736
Commitments and contingencies
Shareholders’ equity:
Preferred stock - 15,000,000 shares authorized, no shares issued and outstanding	$ 0	$ 0
Common stock, $.01 par value - 200,000,000 shares authorized, 47,508,844 issued and 45,008,223 outstanding at July 4, 2015 and 47,330,740 issued and 44,859,492 outstanding at January 3, 2015	475	473
Paid-in capital	606,997	600,418
Retained earnings	191,321	171,287
Accumulated other comprehensive loss	(80,382)	(61,308)
Treasury stock, at cost - 2,500,621 shares at July 4, 2015 and 2,471,248 shares at January 3, 2015	(102,730)	(100,998)
Total Polypore International, Inc. shareholders’ equity	615,681	609,872
Noncontrolling interest	8,170	7,462
Total shareholders’ equity	623,851	617,334
Total liabilities and shareholders’ equity	$ 1,363,686	$ 1,375,292