RDA Holding Co.

CIK:0001503813|SEC Filings

Consolidated Statements of Comprehensive Loss (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Revenue	$ 230.1	$ 312.4	$ 753.9	$ 959.8
Product, distribution and editorial expenses	109.5	146.2	346.5	439.2
Promotion, marketing and administrative expenses	134.0	196.7	454.0	581.5
Impairment of assets	85.0	10.3	203.7	238.0
Other operating items, net	1.7	10.5	3.4	16.7
Operating loss	(100.1)	(51.3)	(253.7)	(315.6)
Interest expense	14.4	15.3	47.2	43.3
Gain on deconsolidation of subsidiary	0	0	(0.8)	(8.5)
Other income, net	(1.4)	(2.3)	(4.3)	(2.7)
Loss before income taxes and discontinued operations	(113.1)	(64.3)	(295.8)	(347.7)
Income tax (benefit) expense	(6.4)	1.6	(55.9)	(10.4)
Loss from continuing operations	(106.7)	(65.9)	(239.9)	(337.3)
(Loss) income from discontinued operations, net of taxes	(0.5)	(10.9)	16.5	(61.7)
Net loss	(107.2)	(76.8)	(223.4)	(399.0)
Comprehensive loss	$ (102.4)	$ (121.7)	$ (220.0)	$ (394.7)

Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities:
Net loss	$ (223.4)	$ (399.0)
Adjustments to reconcile net loss to operating cash flows:
(Income) loss from discontinued operations, net of taxes	(16.5)	61.7
Depreciation and amortization	43.2	50.2
Benefit for deferred income taxes	(13.4)	(19.2)
Amortization of debt discounts	2.1	1.4
Amortization of debt issuance costs	3.9	1.8
Gain on deconsolidation of subsidiary	(0.8)	(8.5)
Impairment of assets	203.7	238.0
Gain on derivatives and warrants	(3.2)	(1.1)
Equity-based compensation expense	0.4	16.7
Net gain on sale or disposal of certain assets	(1.0)	(1.9)
Changes in assets and liabilities, net of effects of dispositions:
Restricted cash	(0.1)	(0.4)
Accounts receivable, net	45.1	23.0
Inventories	(2.7)	(18.0)
Prepaid and deferred promotion costs	11.4	3.6
Other assets	(21.7)	(35.4)
Unearned revenue	16.8	20.0
Income taxes	(55.9)	0.2
Accounts payable and accrued expenses	(59.4)	(10.0)
Other liabilities	(0.4)	(8.0)
Net change in cash due to continuing operating activities	(71.9)	(84.9)
Net change in cash due to discontinued operating activities	(19.6)	(12.7)
Net change in cash due to operating activities	(91.5)	(97.6)
Cash flows from investing activities:
Capital expenditures	(8.0)	(11.3)
Purchase of business	0	(2.7)
Proceeds from sale of a business	175.0	0
Proceeds from sale of assets	2.8	9.5
Investing restricted cash	0.1	0
Net change in cash due to continuing investing activities	169.9	(4.5)
Net change in cash due to discontinued investing activities	2.3	(1.2)
Net change in cash due to investing activities	172.2	(5.7)
Cash flows from financing activities:
Proceeds from borrowings	50.0	55.0
Debt payments	(57.7)	0
Proceeds from long-term revolving credit facility	0	40.0
Repayments of long-term revolving credit facility	(35.0)	(4.0)
Debt payments to related parties	(45.0)	0
Cash paid for financing fees	(2.6)	(2.2)
Cash used to net settle equity-based compensation	0	(7.6)
Repurchase of Successor Company common stock	0	(43.3)
Tax effect of equity-based compensation	1.1	0
Financing restricted cash	(11.0)	0
Payment of prepayment penalty to related parties	(5.0)	0
Net change in cash due to continuing financing activities	(105.2)	37.9
Net change in cash due to discontinued financing activities	(0.2)	(0.1)
Net change in cash due to financing activities	(105.4)	37.8
Effect of exchange rate changes on cash and cash equivalents	0.5	(0.5)
Net change in cash and cash equivalents	(24.2)	(66.0)
Cash and cash equivalents at beginning of period	112.3	169.4
Cash and cash equivalents at end of period	88.1	103.4
Supplemental information
Cash paid for interest	40.9	38.1
Cash paid for income taxes	$ 3.7	$ 6.0

Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 88.1	$ 112.3
Restricted cash	15.0	5.4
Accounts receivable, net	127.3	174.4
Inventories	64.4	62.3
Prepaid and deferred promotion costs	17.0	28.2
Prepaid expenses and other current assets	112.8	99.3
Assets held for sale	14.7	153.8
Total current assets	439.3	635.7
Property and equipment, net	44.3	51.1
Restricted cash	8.3	6.5
Goodwill	256.1	388.7
Other intangible assets, net	205.1	304.7
Prepaid pension assets	148.1	135.4
Other noncurrent assets	44.6	42.0
Total assets	1,145.8	1,564.1
Current liabilities:
Current portion of long-term debt	58.0	0
Accounts payable	96.6	133.2
Accrued expenses	103.5	131.9
Income taxes payable	2.4	8.8
Unearned revenue	220.0	227.8
Other current liabilities	22.2	22.0
Liabilities held for sale	11.2	36.8
Total current liabilities	513.9	560.5
Long-term debt	454.7	603.8
Unearned revenue	106.5	89.6
Accrued pension	4.3	4.3
Postretirement and postemployment benefits other than pensions	8.2	9.2
Other noncurrent liabilities	134.3	154.1
Total liabilities	1,221.9	1,421.5
Treasury stock, at cost: 1,041,827 and 1,058,316 shares	(30.2)	(30.7)
Paid-in capital, including warrants	595.6	594.3
Accumulated deficit	(646.6)	(422.8)
Accumulated other comprehensive income	5.1	1.8
Total stockholders’ (deficit) equity	(76.1)	142.6
Total liabilities and stockholders’ (deficit) equity	1,145.8	1,564.1
Common Stock Series A Voting
Current liabilities:
Common stock	0	0
Common Stock Series B Non-voting
Current liabilities:
Common stock	$ 0	$ 0