INTERLINE BRANDS, INC./DE

CIK:0001292900|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 26, 2015

Jun. 27, 2014

Jun. 26, 2015

Jun. 27, 2014

Income Statement [Abstract]

Net sales

^[1]

$ 447,708

$ 425,542

$ 859,455

$ 818,011

Cost of sales

296,434

279,972

566,122

536,651

Gross profit

151,274

145,570

293,333

281,360

Operating Expenses:

Selling, general and administrative expenses

118,363

114,240

234,238

228,215

Depreciation and amortization

13,083

12,594

26,193

25,198

Merger related expenses

656

102

Total operating expenses

132,102

126,834

261,087

253,515

Operating income

19,172

18,736

32,246

27,845

Impairment of other intangible assets

(67,500)

Loss on extinguishment of debt, net

(19)

(4,172)

Interest expense

(12,766)

(14,506)

(25,633)

(30,190)

Interest and other income

142

205

330

397

Income (loss) before income taxes

6,548

(63,084)

288

(73,620)

Income tax expense (benefit)

2,639

(24,507)

135

(28,949)

Net income (loss)

$ 3,909

$ (38,577)

$ 153

$ (44,671)

[1]	The Company continually refines its product classification groupings and, as a result, stock keeping units are periodically realigned within product categories. Therefore, the prior periods in these tables have been recast to be consistent with current presentation.

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 26, 2015	Jun. 27, 2014
Cash Flows from Operating Activities:
Net Loss	$ 153	$ (44,671)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	26,193	25,198
Impairment of other intangible assets	0	67,500
Amortization of deferred lease incentive obligation	(378)	(421)
Amortization of deferred debt financing costs	(1,982)	(2,050)
Amortization of debt discount (premium)	63	(508)
Tender premiums and expenses related to debt extinguishments	(4,043)	(18,510)
Write-off of unamortized OpCo Notes fair value adjustment	0	(17,803)
Write-off of deferred debt issuance costs	2,612	3,465
Share-based compensation	1,798	1,528
Excess tax benefits from share-based compensation	6	0
Deferred income taxes	196	(22,601)
Provision for doubtful accounts	232	1,550
(Gain) loss on disposal of property and equipment	(21)	37
Other	353	(63)
Changes in assets and liabilities:
Accounts receivable - trade	(34,121)	(28,788)
Inventories	(34,310)	(15,364)
Prepaid expenses and other current assets	3,492	3,602
Other assets	1,138	(117)
Accounts payable	25,792	16,684
Accrued expenses and other current liabilities	1,122	3,688
Accrued interest	(3,516)	(2,434)
Income taxes	(341)	1,633
Other liabilities	18	(11)
Net cash (used in) provided by operating activities	(3,494)	12,664
Cash Flows from Investing Activities:
Purchases of property and equipment, net	(10,643)	(9,241)
Net cash used in investing activities	(10,643)	(9,241)
Cash Flows from Financing Activities:
Proceeds from ABL Facility	187,000	47,000
Payments on ABL Facility	(86,000)	(72,000)
Proceeds from issuance of Term Loan Facility, net	0	349,125
Payments on Term Loan Facility	(1,750)	(875)
Partial redemption of HoldCo Notes	(80,000)	0
Repayment of OpCo Notes	0	(300,000)
Payment of tender premiums and expenses related to debt extinguishments	(4,043)	(18,510)
Payment of deferred debt financing costs	71	8,024
Increase in purchase card payable, net	32	422
Payments on capital lease obligations	(10)	(131)
Proceeds from issuance of common stock	0	165
Excess tax benefits from share-based compensation	(6)	0
Purchases of treasury stock	134	0
Net cash provided by (used in) financing activities	15,018	(2,828)
Effect of exchange rate changes on cash and cash equivalents	(247)	25
Net increase in cash and cash equivalents	634	620
Cash and cash equivalents at beginning of period	6,064	6,102
Cash and cash equivalents at end of period	6,698	6,722
Cash paid (received) during the period for:
Interest	27,021	31,004
Income taxes, net of refunds	279	(7,960)
Schedule of Non-Cash Investing and Financing Activities:
Capital expenditures incurred but not yet paid	$ 4,121	$ 621

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 26, 2015	Dec. 26, 2014
Current Assets:
Cash and cash equivalents	$ 6,698	$ 6,064
Accounts receivable - trade (net of allowance for doubtful accounts of $3,926 and $4,190 as of June 26, 2015 and December 26, 2014, respectively)	211,688	177,878
Inventories	336,919	302,743
Prepaid expenses and other current assets	39,102	42,596
Income taxes receivable	4,472	4,139
Deferred income taxes	29,978	30,290
Total current assets	628,857	563,710
Property and equipment, net	56,986	54,844
Goodwill	486,439	486,439
Other intangible assets, net	324,873	345,314
Other assets	9,022	10,315
Total assets	1,506,177	1,460,622
Current Liabilities:
Accounts payable	153,846	126,116
Accrued expenses and other current liabilities	97,398	96,272
Accrued interest	13,788	17,305
Current portion of long-term debt	3,500	83,500
Current portion of capital leases	0	10
Total current liabilities	268,532	323,203
Long-Term Liabilities:
Deferred income taxes	116,242	116,358
Long-term debt, net of current portion	801,411	702,099
Other liabilities	2,089	2,445
Total liabilities	$ 1,188,274	$ 1,144,105
Commitments and contingencies (see Note 4)
Stockholders' Equity:
Common stock; $0.01 par value, 2,500,000 authorized; 1,502,767 and 1,501,418 shares issued and 1,499,280 and 1,499,142 shares outstanding as of June 26, 2015 and December 26, 2014, respectively	$ 15	$ 15
Additional paid-in capital	402,299	400,231
Accumulated deficit	(81,703)	(81,856)
Accumulated other comprehensive loss	(1,591)	(1,165)
Treasury stock, at cost, 3,487 and 2,276 shares held as of June 26, 2015 and December 26, 2014, respectively	(1,117)	(708)
Total stockholders' equity	317,903	316,517
Total liabilities and stockholders' equity	$ 1,506,177	$ 1,460,622