Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Altra Industrial Motion Corp. | b85254e8vk.htm |
| EX-10.1 - EX-10.1 - Altra Industrial Motion Corp. | b85254exv10w1.htm |
Exhibit 99.1
Summary Selected Financial Data
The following table sets forth summary historical financial data for the years ended December
31, 2008, 2009 and 2010. The financial data as of and for the years ended December 31, 2008, 2009
and 2010 have been derived from our audited consolidated financial statements. You should read the
information set forth below in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our
consolidated financial statements and the related notes to those consolidated financial statements
for the years ended December 31, 2008, 2009 and 2010 included in our Annual Report on Form 10-K for
the year ended December 31, 2010.
The summary consolidated historical financial data as of December 31, 2008, 2009 and 2010 and
for the fiscal years ended December 31, 2008, 2009 and 2010 has been derived from our consolidated
historical financial statements included in our Annual Report on Form 10-K for the fiscal year
ended December 31, 2010. Such financial data as of and
for the fiscal year ended December 31, 2008 has been audited by Ernst & Young LLP. Such financial
data as of and for the fiscal years ended December 31, 2009 and 2010 have been audited by Deloitte
& Touche LLP.
| Year Ended December 31, | ||||||||||||
| 2008 | 2009 | 2010 | ||||||||||
| (dollars in thousands, except share and per share data) | ||||||||||||
Statement of Operations Data: |
||||||||||||
Net sales |
$ | 635,336 | $ | 452,846 | $ | 520,162 | ||||||
Cost of sales |
449,244 | 329,825 | 366,151 | |||||||||
Gross profit |
186,092 | 123,021 | 154,011 | |||||||||
Operating expenses: |
||||||||||||
Selling, general and administrative expenses |
99,185 | 81,117 | 89,478 | |||||||||
Research and development expenses |
6,589 | 6,261 | 6,731 | |||||||||
Goodwill impairment |
31,810 | — | — | |||||||||
Gain on settlement / curtailment of post employment
benefit and pension plans |
(925 | ) | (1,467 | ) | — | |||||||
Restructuring costs |
2,310 | 7,286 | 2,726 | |||||||||
Loss on disposal of assets |
1,584 | 545 | — | |||||||||
| 140,553 | 93,742 | 98,935 | ||||||||||
Income from operations |
$ | 45,539 | $ | 29,279 | $ | 55,076 | ||||||
Total other non-operating income and expense |
22,090 | 33,957 | 20,547 | |||||||||
Income (loss) from continuing operations before taxes |
23,449 | (4,678 | ) | 34,529 | ||||||||
Provision (benefit) for income taxes |
16,731 | (2,364 | ) | 10,004 | ||||||||
Income (loss) from continuing operations |
$ | 6,718 | $ | (2,314 | ) | $ | 24,525 | |||||
Weighted average shares, basic |
25,496 | 25,945 | 26,399 | |||||||||
Weighted average shares, diluted |
26,095 | 25,945 | 26,535 | |||||||||
Basic earnings per share from continuing operations |
$ | 0.26 | $ | (0.09 | ) | $ | 0.93 | |||||
Diluted earnings per share from continuing operations |
$ | 0.26 | $ | (0.09 | ) | $ | 0.92 | |||||
Other Financial Data: |
||||||||||||
EBITDA (1) |
$ | 72,856 | $ | 50,370 | $ | 74,203 | ||||||
Adjusted EBITDA (2) |
103,337 | 63,197 | 80,790 | |||||||||
Depreciation and amortization |
21,068 | 22,072 | 20,036 | |||||||||
Capital expenditures |
19,289 | 9,194 | 17,295 | |||||||||
| As of December 31, | ||||||||||||
| 2008 | 2009 | 2010 | ||||||||||
| (dollars in thousands) | ||||||||||||
Balance Sheet Data: |
||||||||||||
Cash and cash equivalents |
$ | 52,073 | $ | 51,497 | $ | 72,723 | ||||||
Total assets |
513,584 | 465,199 | 508,102 | |||||||||
Total debt |
261,523 | 217,549 | 216,502 | |||||||||
Long-term liabilities, excluding long-term debt |
46,870 | 41,907 | 43,349 | |||||||||
Stockholders’ equity |
128,865 | 138,943 | 164,752 | |||||||||
| (1) | EBITDA, as used herein, represents income (loss) from continuing operations plus provision (benefit) for income taxes, net interest expense, and depreciation and amortization. We have included information concerning EBITDA, because we believe that such information is used by certain investors as one measure of a company’s historical ability to service debt. | ||
| (2) | Adjusted EBITDA, as used herein, represents EBITDA before other non-operating expense (income), restructuring costs, gain from curtailment on post retirement benefit plan, goodwill impairment, loss on disposal of assets, stock based compensation, acquisition related expenses, and inventory adjustment related to the economic downturn. We consider Adjusted EBITDA to be an important measure of performance from core operations because Adjusted EBITDA excludes various income and expense items that we believe are not indicative of our operating performance. We believe that Adjusted EBITDA is useful to investors in evaluating our ability to incur and service debt, make capital expenditures and meet working capital requirements. We also believe that Adjusted EBITDA is useful to investors in evaluating our operating performance compared to that of other companies in the same industry, as the calculation of Adjusted EBITDA eliminates, among other things, the effects of financing and other transactions and costs and the accounting effects of capital spending, all of which may vary from one company to another for reasons unrelated to overall operating performance. Our calculation of Adjusted EBITDA is not necessarily comparable to that of other similarly titled measures reported by other companies. Adjusted EBITDA is not a presentation made in accordance with U.S. GAAP and accordingly should not be considered as an alternative to, or more meaningful than, earnings from operations, cash flows from operations or other traditional indications of a company’s operating performance or liquidity. The following table provides a reconciliation of income (loss) from continuing operations to Adjusted EBITDA: |
| Year Ended December 31, | ||||||||||||
| 2008 | 2009 | 2010 | ||||||||||
| (dollars in thousands) | ||||||||||||
Income (loss) from continuing operations |
$ | 6,718 | $ | (2,314 | ) | $ | 24,525 | |||||
Adjustments: |
||||||||||||
Provision / (benefit) for income taxes |
16,731 | (2,364 | ) | 10,004 | ||||||||
Interest expense, net |
28,339 | 32,976 | 19,638 | |||||||||
Depreciation |
15,379 | 16,534 | 15,010 | |||||||||
Amortization |
5,689 | 5,538 | 5,026 | |||||||||
EBITDA |
72,856 | 50,370 | 74,203 | |||||||||
Adjustments: |
||||||||||||
Other non operating expense |
(6,249 | ) | 981 | 909 | ||||||||
Restructuring costs (a) |
2,310 | 7,286 | 2,726 | |||||||||
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| Year Ended December 31, | ||||||||||||
| 2008 | 2009 | 2010 | ||||||||||
| (dollars in thousands) | ||||||||||||
(Gain) / loss from settlement of post
employment benefits & pensions (b) |
(925 | ) | (1,467 | ) | — | |||||||
Goodwill impairment (c) |
31,810 | — | — | |||||||||
Loss on disposal of assets (d) |
1,584 | 545 | — | |||||||||
Stock based compensation (e) |
1,951 | 3,267 | 2,136 | |||||||||
Inventory adjustment(f) |
— | 2,215 | — | |||||||||
Acquisition related expenses (g) |
— | — | 816 | |||||||||
Adjusted EBITDA |
$ | 103,337 | $ | 63,197 | $ | 80,790 | ||||||
| (a) | Represents costs associated with reducing headcount, consolidating operating facilities and relocating manufacturing to lower cost areas. | ||
| (b) | In October 2007, we renegotiated our contract with the labor union at our Erie, Pennsylvania facility, resulting in a provision to close the plant by December 2008 and triggering a special retirement pension feature and plan curtailment. In August 2008, an announcement was made that we would no longer be closing the plant in Erie, Pennsylvania and that we would continue to employ those employees that had not previously been terminated. In connection with the change at the Erie, Pennsylvania plant, as employees were terminated, we recorded a post-retirement benefit plan curtailment gain. In March 2009, we reached a new collective bargaining agreement with the union at our Erie, Pennsylvania facility, resulting in a provision that eliminates benefits that employees were entitled to receive through the existing other post employment benefit plan (“OPEB”). OPEB benefits will no longer be available for retired and active employees. | ||
| (c) | In the fourth quarter of 2008, we recorded a non-cash impairment of goodwill related to our TB Wood’s, Huco and Warner Linear businesses. The impairment was driven by the economic downturn. | ||
| (d) | Represents the loss on sale or abandonment of fixed assets at various locations. | ||
| (e) | Represents non-cash stock based compensation for key management. | ||
| (f) | Represents a non-cash inventory charge taken in the first quarter of 2009 due to the economic downturn. | ||
| (g) | Represents one-time expenses related to the Bauer Acquisition. |
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