UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-Q

 

QUARTERLY REPORT UNDER
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

 

 

ý		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		For the quarterly period ended April 2, 2005
OR
o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		For the transition period from              to

 

Commission File Number: 333-110531

 

NORCROSS SAFETY PRODUCTS L.L.C.

(Exact name of Registrant as Specified in its Charter)

 

Delaware		61-1283304
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)
2211 York Road, Suite 215 Oak Brook, Illinois 60523		60523
(Address of Principal Executive Offices)		(Zip Code)
Registrant’s telephone number, including area code:
(630) 572-5715

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes ý   No o

 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2).   Yes o   No ý

 

On May 11, 2005 Norcross Safety Products L.L.C. had 100 units outstanding, all of which were owned by a holding company.

 

 

NORCROSS SAFETY PRODUCTS L.L.C.
FORM 10-Q QUARTERLY REPORT

For the Quarterly Period Ended April 2, 2005

 

TABLE OF CONTENTS

 

PART I Financial Information
		Item 1.		Financial Statements (Unaudited)	1
				Consolidated Balance Sheets	1
				Consolidated Statements of Operations	2
				Consolidated Statements of Cash Flows	3
		Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
		Item 3.		Quantitative and Qualitative Disclosures About Market Risk	23
		Item 4.		Controls and Procedures	24
PART II Other Information					25
		Item 1.		Legal Proceedings	25
		Item 6.		Exhibits and Reports on Form 8-K	27
Signatures					28
Form 10-Q Listing of Exhibits					29

 

i

 

PART I
FINANCIAL INFORMATION

 

Item 1. Financial Statements (Unaudited)

 

NORCROSS SAFETY PRODUCTS L.L.C.

CONSOLIDATED BALANCE SHEETS

(Amounts in Thousands) (Unaudited)

 

		December 31, 2004 (1)			April 2, 2005
Assets
Current assets:
Cash and cash equivalents		$	35,731		$	16,922
Accounts receivable, less allowance of $2,063 and $2,165 in 2004 and 2005, respectively		61,167			69,707
Inventories		82,532			83,503
Deferred income taxes		60			60
Prepaid expenses and other current assets		3,183			2,980
Total current assets		182,673			173,172
Property, plant, and equipment, net		51,809			49,581
Deferred financing costs, net		9,394			8,934
Goodwill, net		132,662			132,986
Other intangible assets, net		6,256			6,080
Other noncurrent assets		5,689			5,491
Total assets		$	388,483		$	376,244
Liabilities and member’s equity
Current liabilities:
Accounts payable		$	17,871		$	20,315
Accrued expenses		28,127			20,596
Current maturities of long-term obligations		15,252			2,690
Total current liabilities		61,250			43,601
Pension, post-retirement, and deferred compensation		22,923			22,937
Long-term obligations		238,314			237,889
Other noncurrent liabilities		1,653			1,646
Deferred income taxes		4,799			5,036
Minority interest		142			139
		267,831			267,647
Member’s equity:
Contributed capital		116,060			116,060
Accumulated deficit		(42,447		)	(34,155		)
Due from NSP Holdings L.L.C.		(17,740		)	(17,918		)
Accumulated other comprehensive income		3,529			1,009
Total member’s equity		59,402			64,996
Total liabilities and member’s equity		$	388,483		$	376,244

 

(1)          December 31, 2004 balances were obtained from audited financial statements.

 

See notes to unaudited consolidated financial statements.

 

1

 

NORCROSS SAFETY PRODUCTS L.L.C.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in Thousands) (Unaudited)

 

		Three months ended
		April 3, 2004			April 2, 2005
Net sales		$	109,073		$	120,423
Cost of goods sold		68,707			75,602
Gross profit		40,366			44,821
Operating expenses:
Selling		10,404			11,857
Distribution		5,368			6,274
General and administrative		9,968			10,943
Amortization of intangibles		126			142
Total operating expenses		25,866			29,216
Income from operations		14,500			15,605
Other expense (income):
Interest expense		5,636			5,599
Interest income		(35		)	(250		)
Other, net		534			386
Income before income taxes and minority interest		8,365			9,870
Income tax expense		1,033			1,574
Minority interest		5			4
Net income		$	7,327		$	8,292

 

See notes to unaudited consolidated financial statements.

 

2

 

NORCROSS SAFETY PRODUCTS L.L.C.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in Thousands) (Unaudited)

 

		Three months ended
		April 3, 2004			April 2, 2005
Operating activities
Net income		$	7,327		$	8,292
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation		2,853			2,705
Amortization of intangibles		126			142
Amortization of deferred financing costs		441			461
Amortization of original issue discount		22			25
Deferred income taxes		(46		)	237
Minority interest		5			4
Changes in operating assets and liabilities:
Accounts receivable		(9,029		)	(8,540		)
Inventories		(1,315		)	(969		)
Prepaid expenses and other current assets		(388		)	220
Other noncurrent assets		(30		)	73
Accounts payable		202			2,445
Accrued expenses		(7,229		)	(7,533		)
Pension, postretirement, and deferred compensation		787			14
Other noncurrent liabilities		(2		)	(6		)
Other		3			(6		)
Net cash used in operating activities		(6,273		)	(2,436		)
Investing activities
Purchase of businesses, net of cash acquired		(112		)	(431		)
Purchases of property, plant, and equipment		(1,507		)	(1,327		)
Due from NSP Holdings L.L.C.		(178		)	(178		)
Net cash used in investing activities		(1,797		)	(1,936		)
Financing activities
Payments of debt		(937		)	(13,013		)
Net cash used in financing activities		(937		)	(13,013		)
Effect of exchange rate changes on cash		(474		)	(1,424		)
Net decrease in cash and cash equivalents		(9,481		)	(18,809		)
Cash and cash equivalents at beginning of period		16,341			35,731
Cash and cash equivalents at end of period		$	6,860		$	16,922

 

See notes to unaudited consolidated financial statements

 

3

 

NORCROSS SAFETY PRODUCTS L.L.C.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in Thousands) (Unaudited)

 

1.              Basis of Presentation

 

The accompanying unaudited consolidated financial statements of Norcross Safety Products L.L.C. (the Company) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements.

 

In the opinion of management, all adjustments (consisting only of adjustments of a normal and recurring nature) considered necessary for a fair presentation of the financial position and results of operations have been included. Interim results are not necessarily indicative of the results that might be expected for any other interim period or for the fiscal year ending December 31, 2005. The financial statements presented should be read in conjunction with the consolidated financial statements and footnotes thereto included in our 2004 consolidated financial statements.

 

Certain account balances have been reclassified from the prior year to conform with current year presentation.

 

2.              Inventories

 

Inventories consist of the following:

 

		December 31, 2004			April 2, 2005
At FIFO cost:
Raw materials		$	21,726		$	24,393
Work in process		10,419			10,973
Finished goods		52,045			49,795
		84,190			85,161
Adjustment to LIFO cost		(1,658		)	(1,658		)
		$	82,532		$	83,503

 

4

 

3.              Debt

 

The Company’s debt consists of the following:

 

		December 31, 2004			April 2, 2005
Revolving credit facilities		$	—		$	—
Term loan		97,725			85,200
Senior subordinated notes		152,500			152,500
European term loans		469			358
Arbin seller notes		454			430
Subordinated seller notes		3,121			2,801
Capital lease obligations		207			175
Unamortized discount on senior subordinated notes		(910		)	(885		)
		253,566			240,579
Less: Current maturities of long-term obligations		15,252			2,690
		$	238,314		$	237,889

 

Aggregate maturities of long-term debt as of April 2, 2005, are as follows:

 

2006		$	2,690
2007		3,293
2008		1,223
2009		81,197
2010		34
Thereafter		152,142
		$	240,579

 

5

 

4.              Employee Benefit Plans

 

The following table sets forth the components of net periodic benefit cost:

 

		Three months ended April 3, 2004						Three months ended April 2, 2005
		Pension Benefits			Post-retirement Benefits			Pension Benefits			Post-retirement Benefits
Service cost		$	373		$	7		$	417		$	6
Interest cost		872			20			905			20
Expected return on plan assets		(668		)	—			(777		)	—
Amortization of prior service cost		1			4			1			4
Amortization of actuarial loss		212			21			284			22
		$	790		$	52		$	830		$	52

 

6

 

5.              Legal Proceedings

 

The Company is subject to various claims arising in the ordinary course of business. Most of these lawsuits and claims are product liability matters that arise out of the use of respiratory product lines manufactured by the Company’s North Safety Products subsidiary. As of April 2, 2005, the Company’s North Safety Products subsidiary, along with its predecessors and/or the former owners of such business were named as defendants in approximately 864 lawsuits involving respirators manufactured and sold by it or its predecessors . The Company is also monitoring an additional 11 lawsuits in which it feels that North Safety Products, its predecessors and/or the former owners of such businesses may be named as defendants. Collectively, these 875 lawsuits represent a total of approximately 26,300 plaintiffs. Approximately 91% of these lawsuits involve plaintiffs alleging injury resulting from exposure to silica dust, with the remainder alleging injury resulting from exposure to other particles, including asbestos. These lawsuits typically allege that the purported injuries resulted in part from respirators that were negligently designed or manufactured. Invensys plc (“Invensys”), formerly Siebe plc, is contractually obligated to indemnify the Company for any losses, including costs of defending claims, resulting from respiratory products manufactured or sold prior to the acquisition of North Safety Products in October 1998.

 

In addition, the Company’s North Safety Products subsidiary is contractually entitled to indemnification from Norton Company, an affiliate of Saint-Gobain, which owned the North Safety Products business prior to Invensys. Pursuant to a December 14, 1982 asset purchase agreement, Siebe Norton, Inc., a newly formed wholly-owned subsidiary of Norton Company, acquired the assets of Norton’s Safety Products Division and the stock of this company was in turn acquired by Siebe Gorman Holdings PLC. Under the terms of the Agreement, Siebe Norton, Inc. did not assume any liability for claims relating to products shipped by Norton Company prior to the closing date. Moreover, Norton Company covenanted in the Agreement to indemnify Siebe Norton and its successors and assigns against any liability resulting from or arising out of any state of facts, omissions or events existing or occurring on or before the closing date, including, without limitation, any claims arising from products shipped by Norton Company or any of its affiliates prior to the closing date. Siebe Norton, whose name was subsequently changed to Siebe North Inc., was subsequently acquired by the Company as part of the 1998 acquisition of the North Safety Products business from Invensys.

 

Despite these indemnification arrangements, the Company could potentially be liable for losses or claims relating to products manufactured prior to the October 1998 acquisition date if Invensys fails to meet its obligations to indemnify the Company and the Company could potentially be liable for losses and claims relating to products sold prior to January 10, 1983 if both Invensys and Norton fail to meet their obligations to indemnify the Company. The Company could also be liable if the alleged exposure involved the use of a product manufactured by the Company after its October 1998 acquisition of the North Safety Products business. Invensys is currently handling the defense of all of the cases prior to October 1998 in which North Safety Products, its predecessors and/or former owners of such business have been named as defendants. The Company is jointly with Invensys handling the defense of all of the cases which allege exposure, including periods pre and post October 1998.  The Company will individually handle the defense of all cases with exclusive post October 1998 exposure, however, it has not been involved in a case with exclusive post October 1998 exposure to date.  As of April 2, 2005, Invensys has sent us requests for reimbursement totaling $147, relating to settled cases in which Invensys claims that the period of alleged exposure included periods after October 1998. Based on information provided to the Company by Invensys, the Company believes that Invensys has made payments with respect to settlement of these claims of $4 for the three months ended April 2, 2005 . The Company believes that Invensys has the ability to pay these claims based on its current financial position, as publicly disclosed by Invensys.

 

Consistent with the current environment being experienced by companies involved in silica and asbestos-related litigation, there has been an increase in the number of asserted claims that could

 

7

 

potentially involve the Company. Based upon information provided to the Company by Invensys, the Company believes activity related to these lawsuits was as follows for the three months ended April 2, 2005:

 

Beginning lawsuits		858
New lawsuits		66
Settlements		(3	)
Dismissals and other		(46	)
Ending lawsuits		875

 

Plaintiffs have asserted specific dollar claims in approximately a quarter of the approximately 864 cases pending as of April 2, 2005 in which North Safety Products, its predecessors and/or the former owners of such businesses have been named as defendants. A majority of jurisdictions prohibit specifying damages in tort cases such as these, and most of the remaining jurisdictions do not require such specification. In those cases in which plaintiffs choose to assert specific dollar amounts in their complaints, brought in states that permit such pleading, the amounts claimed are typically not meaningful as an indicator of a company’s potential liability. This is because (1) the amounts claimed typically bear no relation to the level of the plaintiff’s injury, (2) the complaints typically assert claims against numerous defendants, and (3) many cases are brought on behalf of plaintiffs who have not suffered any medical injury, and, ultimately, are resolved without any payment or payment of a small fraction of the damages initially claimed. Of the 864 complaints maintained in the Company’s records, 648 do not specify the amount of damages sought, 41 generally allege damages in excess of $50, three allege compensatory damages in excess of $50 and an unspecified amount of punitive damages, 92 allege compensatory damages and punitive damages, each in excess of $25, three generally allege damages in excess of $100, 19 allege compensatory damages and punitive damages, each in excess of $50, 29 generally allege damages of $15,000, one generally alleges damages not to exceed $290,000, one alleges compensatory damages and punitive damages, each in excess of $10, one alleges compensatory and punitive damages, each in excess of $15, one alleges punitive damages in excess of $25, one alleges punitive damages in excess of $50, 18 generally allege damages in excess of $15, three generally allege damages in excess of $25, one generally alleges damages in excess of $4, and two allege compensatory and punitive damages, each in excess of $15,000. The Company currently does not have access to the complaints with respect to the previously mentioned additional 11 monitored cases, and therefore do not know whether these cases allege specific damages, or if so, the amount of such damages, but are in the process of seeking to obtain such information.  Due to the reasons noted above and to the indemnification arrangements benefiting the Company, it does not believe that the damage amounts specified in these complaints are a meaningful factor in any assessment of the Company’s potential liability.

 

The Company recorded a $1,250 liability and charge to operating expenses to establish a reserve for respiratory claims during the year ended December 31, 2004, which remains outstanding as of April 2, 2005.  The Company believes that this reserve represents a reasonable estimate of the Company’s probable and estimable liabilities for claims alleging injury resulting from exposure to silica dust and other particles, including asbestos, as determined by the Company in consultation with an independent consultant.  The Company believes that a five-year projection of claims and defense costs is the most reasonable approach.  However, it is possible that the Company may incur liabilities in excess of the amounts currently reserved.  This reserve will be re-evaluated periodically and additional charges or credits will be recorded to operating expenses as additional information becomes available.

 

8

 

The Company is not otherwise involved in any material lawsuits. The Company historically has not been required to pay any material liability claims. The Company maintains insurance against product liability claims (with the exception of asbestosis and silicosis cases, for which coverage is not commercially available), but it is possible that insurance coverage will not continue to be available on terms acceptable to the Company or that such coverage will not be adequate for liabilities actually incurred.  In connection with the North Safety Products acquisition, the Company recorded a $2,500 reserve for potential uninsured product liability claims of North Safety Products for periods prior to October 1998. The reserve was established at the date of acquisition and relates to potential claims primarily associated with fall protection products sold in Canada. Through December 31, 2003, the Company incurred charges of $200 against this reserve, which reduced the balance to $2,300.  During 2004, the Company reduced this reserve to $1,000 to reflect its current expectations of the liability based on information available and recorded a $1,300 credit to operating expenses. The $1,000 reserve remains outstanding as of April 2, 2005. This reserve is re-evaluated periodically, and additional charges or credits will be recorded to operating expenses as additional information becomes available.

 

It is possible that the Company may incur liabilities in an amount in excess of amounts currently reserved. However, taking into account currently available information, historical experience, and the Company’s indemnification from Invensys, but recognizing the inherent uncertainties in the projection of any future events, the Company believes that these suits or claims should not result in final judgments or settlements in excess of its reserve.

 

6.              Segment Data

 

The following table presents information about the Company by segment:

 

		General Industrial			Fire Service			Utility/ High Voltage			Corporate			Eliminations			Total
Three Months Ended April 3, 2004
Net sales—third parties		$	76,464		$	20,293		$	12,316		$	—		$	—		$	109,073
Net sales—intersegment		2,722			—			—			—			(2,722		)	—
Income (loss) from operations		8,946			3,941			2,717			(1,104		)	—			14,500
Three Months Ended April 2, 2005
Net sales—third parties		83,220			23,000			14,203			—			—			120,423
Net sales—intersegment		2,558			—			—			—			(2,558		)	—
Income (loss) from operations		8,812			4,381			3,685			(1,273		)	—			15,605

 

9

 

7.              Subsidiary Guarantors

 

All of the Company’s direct or indirect 100% owned active domestic subsidiaries, fully, unconditionally, jointly and severally guarantee its senior credit facility and the senior subordinated notes. Separate financial statements of the guarantor subsidiaries are not separately presented because, in the opinion of management, such financial statements are not material to investors. The non-guarantor subsidiaries include wholly owned subsidiaries of the Company organized under the laws of foreign jurisdictions and inactive subsidiaries, all of which are included in the consolidated financial statements. The following is summarized combining financial information for Norcross Safety Products L.L.C. on a stand-alone basis (NSP), Norcross Capital Corp. (NCC), the guarantor subsidiaries of the Company and the non-guarantor subsidiaries of the Company:

 

		NSP			NCC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
April 2, 2005
Current assets:
Cash and cash equivalents		$	17,549		$	—		$	(3,020	)	$	2,393		$	—		$	16,922
Accounts receivable, net		10,901			—			33,068			25,738			—			69,707
Inventories		9,083			—			35,112			39,308			—			83,503
Deferred income taxes		—			—			—			60			—			60
Prepaid expenses and other current assets		1,028			—			1,112			840			—			2,980
Total current assets		38,561			—			66,272			68,339			—			173,172
Property, plant, and equipment, net		4,579			—			25,404			19,598			—			49,581
Deferred financing costs, net		8,934			—			—			—			—			8,934
Goodwill, net		426			—			105,091			27,469			—			132,986
Other intangible assets, net		3,775			—			—			2,305			—			6,080
Investment in subsidiaries		173,702			—			41,908			—			(215,610		)	—
Other noncurrent assets		—			—			3,650			1,841			—			5,491
Total assets		$	229,977		$	—		$	242,325		$	119,552		$	(215,610	)	$	376,244
Current liabilities:
Accounts payable		$	2,707		$	—		$	10,841		$	6,767		$	—		$	20,315
Accrued expenses		5,922			—			6,947			7,727			—			20,596
Current maturities of long-term obligations		1,198			—			276			1,216			—			2,690
Total current liabilities		9,827			—			18,064			15,710			—			43,601
Pension, post-retirement, and deferred compensation		141			—			22,104			692			—			22,937
Long-term obligations		237,617			—			35			237			—			237,889
Intercompany balances		(82,604		)	—			32,495			50,109			—			—
Other noncurrent liabilities		—			—			1,593			53			—			1,646
Deferred income taxes		—			—			—			5,036			—			5,036
Minority interest		—			—			—			139			—			139
		155,154			—			56,227			56,266			—			267,647
Member’s equity:
Contributed capital		116,060			—			148,417			49,280			(197,697		)	116,060
Accumulated deficit		(34,155		)	—			19,617			(1,704		)	(17,913		)	(34,155		)
Due from NSP Holdings L.L.C.		(17,918		)	—			—			—			—			(17,918		)
Accumulated other comprehensive loss		1,009			—			—			—			—			1,009
Total member’s equity		64,996			—			168,034			47,576			(215,610		)	64,996
Total liabilities and member’s equity		$	229,977		$	—		$	242,325		$	119,552		$	(215,610	)	$	376,244

 

10

 

		NSP			NCC			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total
December 31, 2004
Current assets:
Cash and cash equivalents		$	32,859		$	—		$	(2,780	)	$	5,652		$	—		$	35,731
Accounts receivable, net		10,940			—			27,140			23,087			—			61,167
Inventories		9,572			—			33,175			39,785			—			82,532
Deferred income taxes		—			—			—			60			—			60
Prepaid expenses and other current assets		947			—			1,281			955			—			3,183
Total current assets		54,318			—			58,816			69,539			—			182,673
Property, plant and equipment, net		4,722			—			25,964			21,123			—			51,809
Deferred financing costs, net		9,394			—			—			—			—			9,394
Goodwill, net		426			—			104,833			27,403			—			132,662
Other intangible assets, net		3,730			—			—			2,526			—			6,256
Investment in subsidiaries		167,009			—			42,555			—			(209,564		)	—
Other noncurrent assets		—			—			3,689			2,000			—			5,689
Total assets		$	239,599		$	—		$	235,857		$	122,591		$	(209,564	)	$	388,483
Current liabilities:
Accounts payable		$	3,614		$	—		$	7,296		$	6,961		$	—		$	17,871
Accrued expenses		10,937			—			9,349			7,841			—			28,127
Current maturities of long-term obligations		13,358			—			567			1,327			—			15,252
Total current liabilities		27,909			—			17,212			16,129			—			61,250
Pension, post-retirement and deferred compensation		147			—			22,042			734			—			22,923
Long-term obligations		237,957			—			68			289			—			238,314
Intercompany balances		(85,816		)	—			33,954			51,862			—			—
Other noncurrent liabilities		—			—			1,589			64			—			1,653
Deferred income taxes		—			—			—			4,799			—			4,799
Minority interest		—			—			—			142			—			142
		152,288			—			57,653			57,890			—			267,831
Member’s equity:
Contributed capital		116,060			—			148,417			49,280			(197,697		)	116,060
Accumulated deficit		(42,447		)	—			12,575			(708		)	(11,867		)	(42,447		)
Due from NSP Holdings L.L.C.		(17,740		)	—			—			—			—			(17,740		)
Accumulated other comprehensive income		3,529			—			—			—			—			3,529
Total member’s equity		59,402			—			160,992			48,572			(209,564		)	59,402
Total liabilities and member’s equity		$	239,599		$	—		$	235,857		$	122,591		$	(209,564	)	$	388,483

 

11

 

		NSP			NCC			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total
Three Months Ended April 2, 2005
Third party		$	17,941		$	—		$	60,980		$	41,502		$	—		$	120,423
Intercompany		2,201			—			2,148			2,340			(6,689		)	—
Net sales		20,142			—			63,128			43,842			(6,689		)	120,423
Cost of goods sold		13,213			—			40,527			28,551			(6,689		)	75,602
Gross profit		6,929			—			22,601			15,291			—			44,821
Operating expenses:
Selling		963			—			5,657			5,237			—			11,857
Distribution		1,105			—			2,382			2,787			—			6,274
General and administrative		1,931			—			5,944			3,068			—			10,943
Amortization of intangibles		79			—			—			63			—			142
Total operating expenses		4,078			—			13,983			11,155			—			29,216
Income from operations		2,851			—			8,618			4,136			—			15,605
Other expense (income):
Interest expense		5,551			—			11			37			—			5,599
Interest income		(226		)	—			—			(24		)	—			(250		)
Intercompany charges		(10,761		)	—			(495		)	1,697			9,559			—
Other, net		(5		)	—			(3		)	394			—			386
Income (loss) before income taxes and minority interest		8,292			—			9,105			2,032			(9,559		)	9,870
Income tax expense		—			—			94			1,480			—			1,574
Minority interest		—			—			—			4			—			4
Net income (loss)		$	8,292		$	—		$	9,011		$	548		$	(9,559	)	$	8,292

 

12