Attached files
| file | filename |
|---|---|
| EXCEL - IDEA: XBRL DOCUMENT - Tower International, Inc. | Financial_Report.xls |
| 8-K - FORM 8-K - Tower International, Inc. | v330155_8k.htm |
| EX-2.1 - EXHIBIT 2.1 - Tower International, Inc. | v330155_ex2-1.htm |
Exhibit 99.1
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The following unaudited pro forma condensed consolidated financial statements are presented to illustrate the effects of the divestiture of the Company’s Korean subsidiary Seojin Industrial Company Ltd. (“Seojin”). The unaudited pro forma condensed consolidated balance sheet as of September 30, 2012 illustrates the estimated effects of the divestiture of Seojin as if these activities had occurred on September 30, 2012. The unaudited pro forma condensed consolidated statements of operations for the interim period ended September 30, 2012 and the years ended December 31, 2011, 2010 and 2009 sets forth the estimated effects the divestiture of Seojin had on the Company’s condensed consolidated statements of operations as if these activities had occurred in their entirety at the beginning of the earliest period presented.
The unaudited pro forma condensed consolidated financial statements presented herein are for informational purposes only and do not purport to present what the Company’s actual results would have been had the Sale occurred on the date assumed, or to project our results of operations or financial position for any future period. The pro forma financial statements include assumptions that are believed to be reasonable and represent all material information that is necessary to fairly present pro forma financial statements.
The unaudited pro forma condensed consolidated financial statements, including the notes thereto, should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto in the Company’s Annual Report on Form 10-K as of and for the fiscal year ended December 31, 2011, as filed with the United States Securities and Exchange Commission on March 8, 2012.
TOWER INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data - unaudited)
| September 30, 2012 | ||||||||||||||
| As Reported | Pro Forma Adjustments | Notes | Pro Forma | |||||||||||
| ASSETS | ||||||||||||||
| Cash and cash equivalents | $ | 118,970 | $ | (14,329 | ) | (a) | $ | 121,941 | ||||||
| 17,300 | (b) | |||||||||||||
| Accounts receivable, net | 345,525 | (17,663 | ) | (a) | 327,862 | |||||||||
| Inventories | 104,548 | (11,919 | ) | (a) | 92,629 | |||||||||
| Deferred tax asset - current | 7,680 | (879 | ) | (a) | 6,801 | |||||||||
| Assets held for sale | 4,197 | (4,197 | ) | (a) | - | |||||||||
| Prepaid tooling, notes receivable, and other | 76,593 | (5,109 | ) | (a) | 94,784 | |||||||||
| 23,300 | (b) | |||||||||||||
| Total current assets | 657,513 | (13,496 | ) | 644,017 | ||||||||||
| Property, plant and equipment, net | 699,327 | (142,908 | ) | (a) | 556,419 | |||||||||
| Goodwill | 63,251 | - | 63,251 | |||||||||||
| Deferred tax asset - non-current | 11,532 | (8,935 | ) | (a) | 2,597 | |||||||||
| Other assets, net | 28,887 | (8,688 | ) | (a) | 20,199 | |||||||||
| Total assets | $ | 1,460,510 | $ | (174,027 | ) | $ | 1,286,483 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
| Short-term debt and current maturities of capital lease obligations | $ | 158,438 | $ | (100,571 | ) | (a) | $ | 57,867 | ||||||
| Accounts payable | 371,664 | (63,716 | ) | (a) | 307,948 | |||||||||
| Accrued liabilities | 132,313 | (5,220 | ) | (a) | 127,093 | |||||||||
| Total current liabilities | 662,415 | (169,507 | ) | 492,908 | ||||||||||
| Long-term debt, net of current maturities | 482,131 | (22,000 | ) | (a) | 460,131 | |||||||||
| Obligations under capital leases, net of current maturities | 10,794 | - | 10,794 | |||||||||||
| Deferred tax liability - non-current | 14,292 | (5,579 | ) | (a) | 8,713 | |||||||||
| Pension liability | 80,304 | - | 80,304 | |||||||||||
| Other non-current liabilities | 90,186 | (3,976 | ) | (a) | 86,210 | |||||||||
| Total non-current liabilities | 677,707 | (31,555 | ) | 646,152 | ||||||||||
| Total liabilities | 1,340,122 | (201,062 | ) | 1,139,060 | ||||||||||
| Stockholders' Equity: | ||||||||||||||
| Tower International, Inc.'s stockholders' equity | ||||||||||||||
| Common stock, $0.01 par value, 350,000,000 authorized, 20,830,425 issued and 20,247,134 outstanding at September 30, 2012 | 208 | - | 208 | |||||||||||
| Additional paid in capital | 319,904 | - | 319,904 | |||||||||||
| Treasury stock, at cost, 583,291 shares as of September 30, 2012 | (8,297 | ) | - | (8,297 | ) | |||||||||
| Accumulated deficit | (182,580 | ) | 30,626 | (b) | (151,954 | ) | ||||||||
| Accumulated other comprehensive loss | (83,148 | ) | (3,591 | ) | (a) | (86,739 | ) | |||||||
| Total Tower International, Inc.'s stockholders' equity | 46,087 | 27,035 | 73,122 | |||||||||||
| Noncontrolling interests in subsidiaries | 74,301 | - | 74,301 | |||||||||||
| Total stockholders' equity | 120,388 | 27,035 | 147,423 | |||||||||||
| Total liabilities and stockholders' equity | $ | 1,460,510 | $ | (174,027 | ) | $ | 1,286,483 | |||||||
See accompanying notes to the unaudited pro forma consolidated financial statements.
TOWER INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
| Nine Months Ended September 30, 2012 | ||||||||||||||
| As Reported | Pro
Forma Adjustments | Notes | Pro Forma | |||||||||||
| Revenues | $ | 1,825,269 | $ | (248,499 | ) | (a) | $ | 1,576,770 | ||||||
| Cost of sales | 1,637,682 | (238,803 | ) | (a) | 1,398,879 | |||||||||
| Gross profit | 187,587 | (9,696 | ) | 177,891 | ||||||||||
| Selling, general and administrative expenses | 106,153 | (4,902 | ) | (a) | 101,251 | |||||||||
| Amortization expense | 3,439 | - | 3,439 | |||||||||||
| Restructuring and related asset impairment charges, net | 7,953 | - | 7,953 | |||||||||||
| Operating income / (loss) | 70,042 | (4,794 | ) | 65,248 | ||||||||||
| Interest expense | 46,890 | (5,641 | ) | (a) | 41,249 | |||||||||
| Interest income | 957 | (126 | ) | (a) | 831 | |||||||||
| Other expense | - | - | - | |||||||||||
| Income / (loss) before provision for income taxes | 24,109 | 721 | 24,830 | |||||||||||
| Provision for income taxes | 17,570 | 143 | (a) | 17,713 | ||||||||||
| Net income / (loss) | 6,539 | 578 | 7,117 | |||||||||||
| Less: Net income attributable to the noncontrolling interests | 4,627 | - | 4,627 | |||||||||||
| Net income / (loss) attributable to Tower International, Inc. | $ | 1,912 | $ | 578 | $ | 2,490 | ||||||||
| Weighted average common shares outstanding | ||||||||||||||
| Basic | 20,098,355 | 20,098,355 | 20,098,355 | |||||||||||
| Diluted | 20,533,788 | 20,533,788 | 20,533,788 | |||||||||||
| Net income / (loss) per share attributable to Tower International, Inc.: | ||||||||||||||
| Basic | $ | 0.10 | $ | 0.02 | $ | 0.12 | ||||||||
| Diluted | 0.09 | 0.02 | 0.11 | |||||||||||
See accompanying notes to the unaudited pro forma consolidated financial statements.
TOWER INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
| Year Ended December 31, 2011 | ||||||||||||||
| As Reported | Pro
Forma Adjustments | Notes | Pro Forma | |||||||||||
| Revenues | $ | 2,406,089 | $ | (352,381 | ) | (a) | $ | 2,053,708 | ||||||
| Cost of sales | 2,149,977 | (329,427 | ) | (a) | 1,820,550 | |||||||||
| Gross profit | 256,112 | (22,954 | ) | 233,158 | ||||||||||
| Selling, general and administrative expenses | 158,392 | (6,839 | ) | (a) | 151,553 | |||||||||
| Amortization expense | 4,589 | - | 4,589 | |||||||||||
| Restructuring and related asset impairment charges, net | 2,660 | - | 2,660 | |||||||||||
| Operating income | 90,471 | (16,115 | ) | 74,356 | ||||||||||
| Interest expense | 62,133 | (7,877 | ) | (a) | 54,256 | |||||||||
| Interest income | 978 | (229 | ) | (a) | 749 | |||||||||
| Other expense | 1,331 | - | 1,331 | |||||||||||
| Income before provision for income taxes | 27,985 | (8,467 | ) | 19,518 | ||||||||||
| Provision for income taxes | 14,812 | (1,519 | ) | (a) | 13,293 | |||||||||
| Net income | 13,173 | (6,948 | ) | 6,225 | ||||||||||
| Less: Net income attributable to the noncontrolling interests | 5,109 | - | 5,109 | |||||||||||
| Net income attributable to Tower International, Inc. | $ | 8,064 | $ | (6,948 | ) | $ | 1,116 | |||||||
| Weighted average common shares outstanding | ||||||||||||||
| Basic | 19,364,433 | 19,364,433 | 19,364,433 | |||||||||||
| Diluted | 20,069,532 | 20,069,532 | 20,069,532 | |||||||||||
| Net income per share attributable to Tower International, Inc.: | ||||||||||||||
| Basic | $ | 0.42 | $ | (0.36 | ) | $ | 0.06 | |||||||
| Diluted | 0.40 | (0.35 | ) | 0.05 | ||||||||||
See accompanying notes to the unaudited pro forma consolidated financial statements.
TOWER INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
| Year Ended December 31, 2010 | ||||||||||||||
| As Reported | Pro
Forma Adjustments | Notes | Pro Forma | |||||||||||
| Revenues | $ | 1,997,058 | $ | (275,731 | ) | (a) | $ | 1,721,327 | ||||||
| Cost of sales | 1,786,476 | (250,777 | ) | (a) | 1,535,699 | |||||||||
| Gross profit | 210,582 | (24,954 | ) | 185,628 | ||||||||||
| Selling, general and administrative expenses | 143,975 | (5,962 | ) | (a) | 138,013 | |||||||||
| Amortization expense | 3,265 | - | 3,265 | |||||||||||
| Restructuring and related asset impairment charges, net | 14,288 | - | 14,288 | |||||||||||
| Operating income | 49,054 | (18,992 | ) | 30,062 | ||||||||||
| Interest expense | 66,872 | (7,724 | ) | (a) | 59,148 | |||||||||
| Interest income | 962 | (391 | ) | (a) | 571 | |||||||||
| Other expense | 1,300 | - | 1,300 | |||||||||||
| Income / (loss) before provision for income taxes | (18,156 | ) | (11,659 | ) | (29,815 | ) | ||||||||
| Provision / (benefit) for income taxes | 10,297 | 4,064 | (a) | 14,361 | ||||||||||
| Net income / (loss) | (28,453 | ) | (15,723 | ) | (44,176 | ) | ||||||||
| Less: Net income attributable to the noncontrolling interests | 8,441 | - | 8,441 | |||||||||||
| Net income / (loss) attributable to Tower International, Inc. | $ | (36,894 | ) | $ | (15,723 | ) | $ | (52,617 | ) | |||||
| Weighted average common shares outstanding | ||||||||||||||
| Basic | 13,865,509 | 13,865,509 | 13,865,509 | |||||||||||
| Diluted | 13,865,509 | 13,865,509 | 13,865,509 | |||||||||||
| Net income / (loss) per share attributable to Tower International, Inc.: | ||||||||||||||
| Basic | $ | (2.66 | ) | $ | (1.13 | ) | $ | (3.79 | ) | |||||
| Diluted | (2.66 | ) | (1.13 | ) | (3.79 | ) | ||||||||
See accompanying notes to the unaudited pro forma consolidated financial statements.
TOWER INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
| Year Ended December 31, 2009 | ||||||||||||||
| As Reported | Pro
Forma Adjustments | Notes | Pro Forma | |||||||||||
| Revenues | $ | 1,634,405 | $ | (190,363 | ) | (a) | $ | 1,444,042 | ||||||
| Cost of sales | 1,536,752 | (176,337 | ) | (a) | 1,360,415 | |||||||||
| Gross profit | 97,653 | (14,026 | ) | 83,627 | ||||||||||
| Selling, general and administrative expenses | 118,331 | (4,739 | ) | (a) | 113,592 | |||||||||
| Amortization expense | 2,784 | - | 2,784 | |||||||||||
| Restructuring and related asset impairment charges, net | 13,436 | (215 | ) | (a) | 13,221 | |||||||||
| Operating income / (loss) | (36,898 | ) | (9,072 | ) | (45,970 | ) | ||||||||
| Interest expense | 57,881 | (6,437 | ) | (a) | 51,444 | |||||||||
| Interest income | 982 | (214 | ) | (a) | 768 | |||||||||
| Other expense | (33,661 | ) | - | (33,661 | ) | |||||||||
| Income / (loss) before provision for income taxes | (60,136 | ) | (2,849 | ) | (62,985 | ) | ||||||||
| Provision / (benefit) for income taxes | (1,104 | ) | (83 | ) | (a) | (1,187 | ) | |||||||
| Net income / (loss) | (59,032 | ) | (2,766 | ) | (61,798 | ) | ||||||||
| Less: Net income attributable to the noncontrolling interests | 8,904 | - | 8,904 | |||||||||||
| Net income / (loss) attributable to Tower International, Inc. | $ | (67,936 | ) | $ | (2,766 | ) | $ | (70,702 | ) | |||||
| Weighted average common shares outstanding | ||||||||||||||
| Basic | 12,467,866 | 12,467,866 | 12,467,866 | |||||||||||
| Diluted | 12,467,866 | 12,467,866 | 12,467,866 | |||||||||||
| Net income / (loss) per share attributable to Tower International, Inc.: | ||||||||||||||
| Basic | $ | (5.45 | ) | $ | (0.22 | ) | $ | (5.67 | ) | |||||
| Diluted | (5.45 | ) | (0.22 | ) | (5.67 | ) | ||||||||
See accompanying notes to the unaudited pro forma consolidated financial statements.
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO UNAUDITED PRO FORMA ADJUSTMENTS
| (a) | The pro forma adjustments remove all previously reported balances related to the disposed operation. |
| (b) | Total cash proceeds to be received of approximately $47 million, consisting of $23.3 million less applicable fees of $6 million at closing, $18.6 million to be received in January 2013, and the final payment of $4.7 million to be received in December 2013. The transaction resulted in a net gain of approximately $31 million. |