WireCo WorldGroup Inc.

CIK:0001522182|SEC Filings

Consolidated Statements of Operations (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Net sales	$ 156,438	$ 173,814	$ 305,439	$ 354,170
Cost of sales	(119,025)	(133,032)	(231,403)	(271,387)
Gross profit	37,413	40,782	74,036	82,783
Other operating expenses:
Selling expenses	(8,714)	(9,912)	(17,248)	(19,687)
Administrative expenses	(16,547)	(17,786)	(36,164)	(35,758)
Amortization expense	(2,167)	(2,174)	(4,245)	(4,483)
Total other operating expenses	(27,428)	(29,872)	(57,657)	(59,928)
Operating income	9,985	10,910	16,379	22,855
Other income (expense):
Interest expense, net	(16,204)	(16,637)	(35,175)	(35,625)
Foreign currency exchange losses, net	(13,869)	(2,689)	(17,413)	(6,966)
Other income (expense), net	(1,910)	80	(1,851)	(228)
Total other expense, net	(31,983)	(19,246)	(54,439)	(42,819)
Loss before income taxes	(21,998)	(8,336)	(38,060)	(19,964)
Income tax benefit (expense)	123	(6,709)	(4,289)	852
Net loss	(21,875)	(15,045)	(42,349)	(19,112)
Less: Net loss attributable to non-controlling interests	(214)	(926)	(741)	(246)
Net loss attributable to WireCo WorldGroup (Cayman) Inc.	$ (21,661)	$ (14,119)	$ (41,608)	$ (18,866)

Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net loss	$ (42,349)	$ (19,112)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	21,529	22,514
Amortization of debt issuance costs, discounts and premium	3,820	3,836
Share-based compensation	3,310	3,852
Unrealized gains on derivative instruments, net	0	(23,649)
Realized losses on derivative instruments, net	18,607	0
Proceeds from derivative instruments	28,704	0
Unrealized foreign currency exchange losses (gains), net	(3,627)	27,951
Provision for deferred income taxes	1,245	(30)
Other adjustments	2,032	(131)
Changes in assets and liabilities:
Accounts receivable	(1,348)	4,319
Inventories	(1,177)	11,153
Prepaid expenses and other assets	(768)	(2,465)
Interest payable	(76)	(103)
Accounts payable	(4,119)	(19,781)
Other accrued liabilities	2,269	3,350
Net cash provided by operating activities	28,052	11,704
Cash flows from investing activities:
Capital expenditures	(9,013)	(17,462)
Net cash used in investing activities	(9,013)	(17,462)
Cash flows from financing activities:
Principal payments on long-term debt	(7,349)	(16,324)
Debt issuance costs paid	0	(1,067)
Borrowings under revolving credit agreement	53,250	47,400
Repayments under revolving credit agreement	(42,550)	(40,550)
Net cash provided by (used in) financing activities	3,351	(10,541)
Effect of exchange rates on cash and cash equivalents	(326)	(3,852)
Increase (decrease) in cash and cash equivalents	22,064	(20,151)
Cash and cash equivalents, beginning of period	21,060	58,195
Cash and cash equivalents, end of period	43,124	38,044
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest, net of interest capitalized	30,777	33,865
Cash paid for income taxes, net of refunds	$ 4,279	$ 3,384

Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 43,124	$ 21,060
Restricted cash	1,819	1,522
Accounts receivable, less allowance for doubtful accounts of $2,259 and $2,180, at June 30, 2016 and December 31, 2015, respectively	128,412	124,463
Other receivables	3,395	2,779
Inventories, net	188,403	186,964
Prepaid expenses and other current assets	7,728	8,133
Total current assets	372,881	344,921
Property, plant and equipment, less accumulated depreciation of $192,508 and $196,653, at June 30, 2016 and December 31, 2015, respectively	272,960	283,655
Intangible assets, net	99,630	102,765
Goodwill	182,782	181,738
Non-current deferred income tax assets	142	1,459
Non-current derivative assets	0	47,519
Other non-current assets	9,235	9,272
Total assets	937,630	971,329
Current liabilities:
Current maturities of long-term debt	827,208	8,948
Interest payable	6,085	6,159
Accounts payable	67,890	72,153
Accrued compensation and benefits	19,081	18,516
Other current liabilities	23,575	22,967
Total current liabilities	943,839	128,743
Long-term debt, excluding current maturities	0	811,090
Non-current deferred income tax liabilities	34,476	34,214
Other non-current liabilities	14,620	13,711
Total liabilities	992,935	987,758
Commitments and contingencies
Stockholders’ deficit:
Common stock, $0.01 par value. 3,000,000 shares authorized; 2,054,374 and 2,005,205 shares issued and outstanding, respectively at June 30, 2016 and December 31, 2015	21	21
Additional paid-in capital	243,689	240,379
Accumulated other comprehensive loss	(80,584)	(80,694)
Accumulated deficit	(205,871)	(164,263)
Treasury stock, at cost. 49,169 shares at June 30, 2016 and December 31, 2015	(14,465)	(14,465)
Total stockholders’ deficit attributable to WireCo WorldGroup (Cayman) Inc.	(57,210)	(19,022)
Non-controlling interests	1,905	2,593
Total stockholders’ deficit	(55,305)	(16,429)
Total liabilities and stockholders’ deficit	$ 937,630	$ 971,329