Attached files
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| 8-K - AMERON INTERNATIONAL CORP. 8-K - AMERON INTERNATIONAL CORP | a6482446.htm |
| EX-99.1 - EXHIBIT 99.1 - AMERON INTERNATIONAL CORP | a6482446ex99_1.htm |
| EX-10.1 - EXHIBIT 10.1 - AMERON INTERNATIONAL CORP | a6482446ex10_1.htm |
Exhibit 99.2
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Ameron International Corporation and Subsidiaries
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Unaudited Pro Forma Condensed Consolidated Statement of Income
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Nine Months Ended August 29, 2010
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Pro Forma
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(Dollars in thousands, except per share data)
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As Reported
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Adjustments
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Pro Forma
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Sales
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$ | 379,761 | $ | - | $ | 379,761 | |||||||
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Cost of sales
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(282,338 | ) | (282,338 | ) | |||||||||
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Gross profit
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97,423 | 97,423 | |||||||||||
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Selling, general and administrative expenses
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(75,516 | ) | (75,516 | ) | |||||||||
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Other income, net
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3,643 | 3,643 | |||||||||||
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Income before interest, income taxes and equity in loss of affiliate
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25,550 | 25,550 | |||||||||||
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Interest expense, net
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(655 | ) | (655 | ) | |||||||||
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Income before income taxes and equity in loss of affiliate
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24,895 | 24,895 | |||||||||||
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Provision for income taxes
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(4,008 | ) | (4,008 | ) | |||||||||
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Income before equity in loss of affiliate
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20,887 | 20,887 | |||||||||||
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Equity in loss of affiliate, net of taxes
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(1,353 | ) | 1,353 | a | - | ||||||||
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Net income
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$ | 19,534 | $ | 1,353 | $ | 20,887 | |||||||
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Net income per share allocated to Common Stock
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Basic
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$ | 2.11 | $ | .15 | b | $ | 2.26 | ||||||
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Diluted
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$ | 2.11 | $ | .15 | b | $ | 2.26 | ||||||
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Weighted-average shares (basic)
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9,200,511 | 9,200,511 | 9,200,511 | ||||||||||
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Weighted-average shares (diluted)
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9,215,993 | 9,215,993 | 9,215,993 | ||||||||||
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Ameron International Corporation and Subsidiaries
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Unaudited Pro Forma Condensed Consolidated Statement of Income
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Year Ended November 30, 2009
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Pro Forma
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(Dollars in thousands, except per share data)
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As Reported
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Adjustments
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Pro Forma
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Sales
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$ | 546,944 | $ | - | $ | 546,944 | |||||||
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Cost of sales
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(401,492 | ) | (401,492 | ) | |||||||||
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Gross profit
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145,452 | 145,452 | |||||||||||
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Selling, general and administrative expenses
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(99,976 | ) | (99,976 | ) | |||||||||
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Other income, net
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7,448 | 7,448 | |||||||||||
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Income from continuing operations before interest, income taxes and equity in loss of affiliate
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52,924 | 52,924 | |||||||||||
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Interest income, net
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588 | 588 | |||||||||||
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Income from continuing operations before income taxes and equity in loss of affiliate
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53,512 | 53,512 | |||||||||||
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Provision for income taxes
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(15,517 | ) | (15,517 | ) | |||||||||
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Income from continuing operations before equity in loss of affiliate
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37,995 | 37,995 | |||||||||||
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Equity in loss of affiliate, net of taxes
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(5,512 | ) | 5,512 | a | - | ||||||||
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Income from continuing operations
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32,483 | 5,512 | 37,995 | ||||||||||
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Income from discontinued operations, net of taxes
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817 | 817 | |||||||||||
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Net income
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$ | 33,300 | $ | 5,512 | $ | 38,812 | |||||||
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Basic earnings per share:
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Income from continuing operations
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$ | 3.54 | $ | .60 | c | $ | 4.14 | ||||||
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Income from discontinued operations, net of taxes
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$ | .09 | $ | - | $ | .09 | |||||||
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Net income
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$ | 3.63 | $ | .60 | $ | 4.23 | |||||||
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Diluted earnings per share:
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Income from continuing operations
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$ | 3.54 | $ | .60 | c | $ | 4.14 | ||||||
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Income from discontinued operations, net of taxes
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$ | .09 | $ | - | $ | .09 | |||||||
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Net income
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$ | 3.63 | $ | .60 | $ | 4.23 | |||||||
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Weighted-average shares (basic)
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9,166,558 | 9,166,558 | 9,166,558 | ||||||||||
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Weighted-average shares (diluted)
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9,184,771 | 9,184,771 | 9,184,771 | ||||||||||
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Ameron International Corporation and Subsidiaries
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Unaudited Pro Forma Condensed Consolidated Balance Sheet
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As of August 29, 2010
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Pro Forma
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(Dollars in thousands)
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As Reported
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Adjustments
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Pro Forma
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ASSETS
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Current assets
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Cash and cash equivalents
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$ | 179,946 | $ | 76,067 | d | $ | 256,013 | ||||||
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Receivables, less allowances of $4,860
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150,922 | 150,922 | |||||||||||
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Inventories
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63,887 | 63,887 | |||||||||||
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Deferred income taxes
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18,961 | 18,961 | |||||||||||
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Prepaid expenses and other current assets
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11,401 | 11,401 | |||||||||||
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Total current assets
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425,117 | 76,067 | 501,184 | ||||||||||
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Investments
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Equity method affiliate
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25,661 | (25,661 | ) | e | - | ||||||||
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Cost method affiliates
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3,784 | 3,784 | |||||||||||
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Property, plant and equipment
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Land
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46,041 | 46,041 | |||||||||||
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Buildings
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101,897 | 101,897 | |||||||||||
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Machinery and equipment
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364,722 | 364,722 | |||||||||||
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Construction in progress
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34,087 | 34,087 | |||||||||||
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Total property, plant and equipment at cost
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546,747 | 546,747 | |||||||||||
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Accumulated depreciation
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(301,591 | ) | (301,591 | ) | |||||||||
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Total property, plant and equipment, net
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245,156 | 245,156 | |||||||||||
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Deferred income taxes
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14,321 | 142 | f | 14,463 | |||||||||
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Goodwill and intangible assets, net of accumulated amortization of $1,281
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2,062 | 2,062 | |||||||||||
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Other assets
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46,826 | 5,000 | g | 51,826 | |||||||||
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Total assets
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$ | 762,927 | $ | 55,548 | $ | 818,475 | |||||||
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities
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Current portion of long-term debt
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$ | 7,539 | $ | - | $ | 7,539 | |||||||
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Trade payables
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43,234 | 43,234 | |||||||||||
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Accrued liabilities
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77,678 | 2,200 | h | 79,878 | |||||||||
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Income taxes payable
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4,313 | 19,543 | f | 23,856 | |||||||||
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Total current liabilities
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132,764 | 21,743 | 154,507 | ||||||||||
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Long-term debt, less current portion
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31,006 | 31,006 | |||||||||||
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Deferred income taxes
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1,755 | 1,755 | |||||||||||
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Other long-term liabilities
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94,256 | 94,256 | |||||||||||
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Total liabilities
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259,781 | 21,743 | 281,524 | ||||||||||
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Commitments and contingencies
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Stockholders' equity
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Common Stock, par value $2.50 per share, authorized 24,000,000 shares, outstanding 9,247,105 shares
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30,047 | 30,047 | |||||||||||
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Additional paid-in capital
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60,705 | 60,705 | |||||||||||
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Retained earnings
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511,427 | 29,335 | i | 540,762 | |||||||||
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Accumulated other comprehensive loss
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(41,964 | ) | 4,470 | j | (37,494 | ) | |||||||
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Treasury Stock (2,771,637 shares)
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(57,069 | ) | (57,069 | ) | |||||||||
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Total stockholders' equity
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503,146 | 33,805 | 536,951 | ||||||||||
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Total liabilities and stockholders' equity
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$ | 762,927 | $ | 55,548 | $ | 818,475 | |||||||
AMERON INTERNATIONAL CORPORATION AND SUBSIDIARIES
NOTES TO UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED FINANCIAL INFORMATION
Note 1 – Description of Transaction
On September 14, 2010, Ameron International Corporation (the “Company”) entered into a Stock Purchase Agreement (the “Agreement”) with Mitsui & Co. (U.S.A.), Inc. (“Mitsui”), Tokyo Steel Manufacturing Co., Ltd. (“Tokyo” and, together with the Company and Mitsui, “Sellers”) and Gerdau Ameristeel US Inc. (“Buyer”). Pursuant to the Agreement, the Company sold its 50% ownership interest in TAMCO to Buyer for $82.5 million in cash (“Investment Sale”) and the other two Sellers sold the remaining 50% interest in TAMCO to Buyer for an additional $82.5 million in cash. The Investment Sale was completed on October 21, 2010.
Note 2 – Pro Forma Adjustments
The accompanying unaudited pro forma condensed consolidated financial statements were prepared to reflect the effect of the Investment Sale on the Company’s historical results of operations and financial position. The unaudited pro forma condensed consolidated statements of income for the nine months ended August 29, 2010 and the year ended November 30, 2009 present the Company’s results of operations as if the Investment Sale had occurred on December 1, 2008. The unaudited pro forma condensed consolidated balance sheet gives effect to the Investment Sale as if the transaction had occurred on August 29, 2010.
The pro forma adjustments presented herein are based on estimates and certain information that is currently available and may change as additional information becomes available. The unaudited pro forma condensed consolidated financial statements are presented for informational purposes only and are not necessarily indicative of the results of operations or the financial position that would have been achieved had the Investment Sale been completed at the beginning of or as of the periods presented, nor are the pro forma condensed consolidated financial statements indicative of the future results of operations or future financial position of the Company.
The pro forma adjustments are as follows (dollars in thousands):
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a.
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These adjustments eliminate equity in losses of affiliate, which were directly attributable to TAMCO.
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b.
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These adjustments eliminate net loss per share allocated to Common Stock, under the two-class method, related to TAMCO.
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c.
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These adjustments eliminate net loss per share related to TAMCO.
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d.
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This adjustment reflects the $82,500 of cash consideration received from Buyer, less $1,433 for estimated closing working capital adjustment and $5,000 of proceeds held in escrow. Actual proceeds received on October 21, 2010 totaled $78,067, which is $2,000 higher than this pro forma adjustment due to the Company’s $2,000 advance to TAMCO in October 2010 which increased TAMCO's closing working capital and the amount the Company received as part of the estimated closing working capital purchase price adjustment.
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e.
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This adjustment eliminates the carrying value of the Company's investment in and advances to TAMCO as of August 29, 2010.
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f.
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These adjustments reflect the income taxes payable as a result of the transaction ($19,543), in addition a net increase in deferred tax assets relating to the Company's sale of TAMCO ($142).
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g.
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This adjustment reflects $5,000 of proceeds held in escrow to cover potential post-closing working capital adjustments to the sale proceeds or indemnity obligations of the Company as described in the Agreement.
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h.
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This adjustment reflects $2,200 in estimated transaction and other costs.
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i.
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This adjustment reflects the estimated gain on the sale of TAMCO as if the transaction had been consummated on August 29, 2010:
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Investment sale price
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$ | 82,500 | |||
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Less: pro forma closing working capital adjustment
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(1,433 | ) | |||
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Adjusted pro forma investment sale price
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81,067 | ||||
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Less:
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Investment in and advances to TAMCO
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(25,661 | ) | |||
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Accumulated other comprehensive loss
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(4,848 | ) | |||
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Estimated transaction and other costs
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(2,200 | ) | |||
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Estimated gain before taxes
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48,358 | ||||
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Estimated income taxes on gain
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(19,023 | ) | |||
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Estimated gain, net of taxes
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$ | 29,335 |
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j.
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This adjustment eliminates accumulated other comprehensive loss related to TAMCO’s defined benefit pension plans, net of tax of $378.
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