Edgen Murray II, L.P.

CIK:0001487544|SEC Filings

Consolidated statements of operations (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
SALES	$ 911,612	$ 627,713	$ 773,323
OPERATING EXPENSES:
Cost of sales (exclusive of depreciation and amortization shown below)	777,108	536,807	672,595
Selling, general and administrative expense, net of service fee income	75,029	65,256	70,693
Depreciation and amortization expense	21,091	20,269	20,136
Impairment of goodwill		62,805
Total operating expenses	873,228	685,137	763,424
INCOME (LOSS) FROM OPERATIONS	38,384	(57,424)	9,899
OTHER INCOME (EXPENSE):
Equity in earnings of unconsolidated affiliate	3,680	1,029
Other income-net	1,366	190	1,447
Loss on prepayment of debt			(7,523)
Interest expense-net	(63,870)	(64,208)	(47,085)
LOSS BEFORE INCOME TAX EXPENSE (BENEFIT)	(20,440)	(120,413)	(43,262)
INCOME TAX EXPENSE (BENEFIT)	4,088	(22,125)	(22,373)
NET LOSS	(24,528)	(98,288)	(20,889)
NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST	288	14
NET LOSS AVAILABLE TO COMMON PARTNERSHIP INTERESTS	$ (24,816)	$ (98,302)	$ (20,889)

Consolidated statements of cash flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
NET LOSS	$ (24,528)	$ (98,288)	$ (20,889)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	21,091	20,269	20,136
Amortization of deferred financing costs	2,558	3,684	2,372
Impairment of goodwill		62,805
Equity in earnings of unconsolidated affiliate	(3,680)	(1,029)
Distributions received from unconsolidated affiliate	835
Amortization of discount on long-term debt	740	654	14
Noncash accrual of interest on note payable			363
Loss on prepayment of debt			7,523
Unit-based compensation expense	854	825	2,065
Allowance for doubtful accounts	317	126	1,632
Provision for inventory allowances and writedowns	1,251	2,515	24,175
Deferred income tax benefit	(1,251)	(5,022)	(9,470)
Loss on foreign currency transactions	456	1,559	853
Unrealized loss on derivative instruments	497	176	7,264
Gain on sale of property, plant, and equipment	(994)	(357)	(22)
Changes in operating assets and liabilities:
Accounts receivable	(95,508)	1,977	98,245
Inventory	(69,058)	23,399	104,239
Income tax receivable	18,365	2,187	(21,225)
Prepaid expenses and other current assets	(2,029)	3,229	7,010
Accounts payable	82,099	2,965	(92,224)
Accrued expenses, other current liabilities, and deferred revenue	7,387	7,126	(12,023)
Income tax payable	2,463	380	(27,199)
Other	557	1,029	(969)
Net cash provided by (used in) operating activities	(57,578)	30,209	91,870
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in unconsolidated affiliate		(10,000)
Purchase of PetroSteel		(4,000)	(4,000)
Purchases of property, plant, and equipment	(2,848)	(13,999)	(4,140)
Proceeds from the sale of property, plant, and equipment	6,277	1,170	176
Net cash provided by (used in) investing activities	3,429	(26,829)	(7,964)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt			460,624
Deferred financing costs	(1,309)	(1,209)	(13,311)
Principal payments on long-term debt and capital lease	(379)	(4,315)	(493,916)
Proceeds from EM Revolving Credit Facility	170,495	12,760	187,732
Payments to EM Revolving Credit Facility	(149,972)	(12,760)	(192,025)
Managed cash overdraft	168	(56)	(8,976)
Net cash provided by (used in) financing activities	19,003	(5,580)	(59,872)
Effect of exchange rate changes on cash and cash equivalents	(1,114)	(1,055)	(9)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(36,260)	(3,255)	24,025
CASH AND CASH EQUIVALENTS-beginning of period	62,478	65,733	41,708
CASH AND CASH EQUIVALENTS-end of period	$ 26,218	$ 62,478	$ 65,733

Consolidated balance sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
CURRENT ASSETS:
Cash and cash equivalents	$ 26,218	$ 62,478
Accounts receivable-net of allowance for doubtful accounts of $1,739 and $1,725, respectively	198,663	104,831
Inventory	196,004	128,482
Income tax receivable	1,209	19,595
Prepaid expenses and other current assets	8,616	6,039
Deferred tax asset-net	209	35
Asset held for sale		5,224
Total current assets	430,919	326,684
PROPERTY, PLANT, AND EQUIPMENT-NET	45,510	49,287
GOODWILL	22,965	22,912
OTHER INTANGIBLE ASSETS-NET	25,447	40,766
OTHER ASSETS	503	812
DEFERRED TAX ASSET-NET	1,044	38
DEFERRED FINANCING COSTS	11,489	12,678
INVESTMENT IN UNCONSOLIDATED AFFILIATE	13,180	10,843
TOTAL ASSETS	551,057	464,020
CURRENT LIABILITIES:
Managed cash overdrafts	112	2
Accounts payable	147,202	68,812
Accrued expenses and other current liabilities	15,848	10,140
Income taxes payable	4,307	2,046
Deferred revenue	5,139	2,304
Accrued interest payable	26,443	26,340
Deferred tax liability-net	991	38
Current portion of long term debt and capital lease	358	318
Total current liabilities	200,400	110,000
DEFERRED TAX LIABILITY-NET	4,544	5,470
OTHER LONG TERM LIABILITIES	783	319
LONG TERM DEBT AND CAPITAL LEASE	500,383	479,493
Total liabilities	706,110	595,282
COMMITMENTS AND CONTINGENCIES
DEFICIT:
General partner	1	1
Limited partners	(129,736)	(105,774)
Accumulated other comprehensive loss	(25,648)	(25,531)
Total partners' deficit	(155,383)	(131,304)
Non-controlling interest	330	42
Total deficit	(155,053)	(131,262)
TOTAL LIABILITIES AND DEFICIT	$ 551,057	$ 464,020