Attached files
| file | filename |
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| 8-K - FORM 8-K - GENERAL CABLE CORP /DE/ | d839522d8k.htm |
Exhibit 99.1
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION
On December 22, 2014, General Cable Corporation (“General Cable” or the “Company”) completed the sale of its interest in Phelps Dodge International Philippines, Inc. (“PDP”) and Phelps Dodge Philippines Energy Products Corporation (“PDEP”) for cash consideration of $67.1 million. The Company sold its 60% interest to its joint venture partner, A. Soriano Corporation (Anscor).
The following unaudited pro forma condensed consolidated balance sheet and statements of operations were derived from the Company’s historical consolidated financial statements. The unaudited pro forma condensed consolidated balance sheet as of September 26, 2014 assumes the disposition of PDP and PDEP on that date. The unaudited pro forma condensed consolidated statements of operations for the nine months ended September 26, 2014 and the year ended December 31, 2013 give effect to the disposition of PDP and PDEP as if it occurred on January 1, 2013. The historical consolidated financial statements referred to above were included in General Cable’s Quarterly Report on Form 10-Q for the quarter ended September 26, 2014 and Annual Report on Form 10-K for the year ended December 31, 2013. The following unaudited pro forma condensed consolidated financial information should be read in conjunction with the historical consolidated financial statements and accompanying notes.
The pro forma adjustments are based on the best information available and assumptions that management believes are (a) directly attributable to the sale of PDP and PDEP, (b) are factually supportable and (c) with respect to the statement of operations, have a continuing impact on the consolidated results. The pro forma adjustments are described in the accompanying notes to the unaudited pro forma condensed consolidated financial information.
The unaudited pro forma condensed consolidated financial information is for illustrative purposes only and is not necessarily indicative of the results of operations that would have occurred if the PDP and PDEP disposition had occurred on January 1, 2013. The unaudited pro forma condensed consolidated financial information does not reflect future events that may occur after the sale, including potential general and administrative cost savings.
GENERAL CABLE CORPORATION AND SUBSIDIARIES
Pro Forma Condensed Consolidated Balance Sheet
(in millions, except share data)
(unaudited)
| September 26, 2014 | ||||||||||||
| Consolidated Historical |
Pro Forma Adjustments |
Pro Forma | ||||||||||
| Assets |
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| Current assets: |
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| Cash and cash equivalents |
$ | 272.4 | $ | 54.3 | (a), (b) | $ | 326.7 | |||||
| Receivables, net of allowances |
1,187.5 | (32.9 | ) (a) | 1,154.6 | ||||||||
| Inventories |
1,278.2 | (15.7 | ) (a) | 1,262.5 | ||||||||
| Deferred income taxes |
44.8 | (1.1 | ) (a) | 43.7 | ||||||||
| Prepaid expenses and other |
129.0 | (2.9 | ) (a) | 126.1 | ||||||||
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| Total current assets |
2,911.9 | 1.7 | 2,913.6 | |||||||||
| Property, plant and equipment, net |
887.9 | (39.5 | ) (a) | 848.4 | ||||||||
| Deferred income taxes |
17.8 | — | 17.8 | |||||||||
| Goodwill |
27.0 | — | 27.0 | |||||||||
| Intangible assets, net |
70.4 | — | 70.4 | |||||||||
| Unconsolidated affiliated companies |
19.3 | (1.3 | ) (c) | 18.0 | ||||||||
| Other non-current assets |
88.0 | (0.2 | ) (a) | 87.8 | ||||||||
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| Total assets |
$ | 4,022.3 | $ | (39.3 | ) | $ | 3,983.0 | |||||
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| Liabilities and Total Equity |
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| Current liabilities: |
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| Accounts payable |
$ | 855.6 | $ | (8.7 | ) (a) | $ | 846.9 | |||||
| Accrued liabilities |
403.2 | 5.3 | (a), (d) | 408.5 | ||||||||
| Current portion of long-term debt |
407.4 | — | 407.4 | |||||||||
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| Total current liabilities |
1,666.2 | (3.4 | ) | 1,662.8 | ||||||||
| Long-term debt |
1,116.4 | — | 1,116.4 | |||||||||
| Deferred income taxes |
215.5 | (10.2 | ) (a) | 205.3 | ||||||||
| Other liabilities |
213.6 | (1.0 | ) (a) | 212.6 | ||||||||
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| Total liabilities |
3,211.7 | (14.6 | ) | 3,197.1 | ||||||||
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| Commitments and contingencies |
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| Redeemable non-controlling interest |
16.3 | — | 16.3 | |||||||||
| Total equity: |
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| Common stock, $0.01 par value, issued and outstanding shares: |
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| September 26, 2014 – 48,670,009 (net of 10,139,959 treasury shares) |
0.6 | — | 0.6 | |||||||||
| Additional paid-in capital |
707.5 | — | 707.5 | |||||||||
| Treasury stock |
(185.4 | ) | — | (185.4 | ) | |||||||
| Retained earnings |
356.4 | 2.0 | (e) | 358.4 | ||||||||
| Accumulated other comprehensive income (loss) |
(160.1 | ) | 6.6 | (a) | (153.5 | ) | ||||||
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| Total Company shareholders’ equity |
719.0 | 8.6 | 727.6 | |||||||||
| Non-controlling interest |
75.3 | (33.3 | ) (f) | 42.0 | ||||||||
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| Total equity |
794.3 | (24.7 | ) | 769.6 | ||||||||
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| Total liabilities, redeemable non-controlling interest and equity |
$ | 4,022.3 | $ | (39.3 | ) | $ | 3,983.0 | |||||
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See accompanying notes to unaudited pro forma condensed consolidated financial information.
GENERAL CABLE CORPORATION AND SUBSIDIARIES
Pro Forma Condensed Consolidated Statement of Operations
(in millions, except per share data) (unaudited)
| Nine Fiscal Months Ended September 26, 2014 | ||||||||||||
| Consolidated Historical |
Pro Forma Adjustments |
Pro Forma | ||||||||||
| Net sales |
$ | 4,433.1 | $ | (111.0 | ) (a) | $ | 4,322.1 | |||||
| Cost of sales |
4,142.6 | (75.1 | ) (a) | 4,067.5 | ||||||||
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| Gross profit |
290.5 | (35.9 | ) | 254.6 | ||||||||
| Selling, general and administrative expenses |
338.2 | (23.4 | ) (a) | 314.8 | ||||||||
| Goodwill impairment charge |
155.1 | — | 155.1 | |||||||||
| Intangible asset impairment charges |
98.8 | — | 98.8 | |||||||||
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| Operating income (loss) |
(301.6 | ) | (12.5 | ) | (314.1 | ) | ||||||
| Other income (expense) |
(111.4 | ) | (0.1 | ) (a) | (111.5 | ) | ||||||
| Interest income (expense): |
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| Interest expense |
(85.6 | ) | — | (85.6 | ) | |||||||
| Interest income |
3.0 | — | 3.0 | |||||||||
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| (82.6 | ) | — | (82.6 | ) | ||||||||
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| Income (loss) before income taxes |
(495.6 | ) | (12.6 | ) | (508.2 | ) | ||||||
| Income tax (provision) benefit |
13.8 | 8.8 | (d) | 22.6 | ||||||||
| Equity in net earnings of unconsolidated affiliated companies |
0.9 | — | 0.9 | |||||||||
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| Net income (loss) including non-controlling interest |
(480.9 | ) | (3.8 | ) | (484.7 | ) | ||||||
| Less: preferred stock dividends |
— | — | — | |||||||||
| Less: net income (loss) attributable to non-controlling interest |
(16.5 | ) | (1.3 | ) (a) | (17.8 | ) | ||||||
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| Net income (loss) attributable to Company common shareholders |
$ | (464.4 | ) | $ | (2.5 | ) | $ | (466.9 | ) | |||
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| Earnings (loss) per share |
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| Earnings (loss) per common share-basic |
$ | (9.52 | ) | $ | (0.05 | ) | $ | (9.57 | ) | |||
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| Weighted average common shares-basic |
48.8 | 48.8 | 48.8 | |||||||||
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| Earnings (loss) per common share-assuming dilution |
$ | (9.52 | ) | $ | (0.05 | ) | $ | (9.57 | ) | |||
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| Weighted average common shares-assuming dilution |
48.8 | 48.8 | 48.8 | |||||||||
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See accompanying notes to unaudited pro forma condensed consolidated financial information.
GENERAL CABLE CORPORATION AND SUBSIDIARIES
Pro Forma Condensed Consolidated Statement of Operations
(in millions, except per share data) (unaudited)
| Fiscal Year Ended December 31, 2013 | ||||||||||||
| Consolidated Historical |
Pro Forma Adjustments |
Pro Forma | ||||||||||
| Net sales |
$ | 6,421.2 | $ | (127.3 | ) (a) | $ | 6,293.9 | |||||
| Cost of sales |
5,717.5 | (89.4 | ) (a) | 5,628.1 | ||||||||
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| Gross profit |
703.7 | (37.9 | ) | 665.8 | ||||||||
| Selling, general and administrative expenses |
492.0 | (23.3 | ) (a) | 468.7 | ||||||||
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| Operating income (loss) |
211.7 | (14.6 | ) | 197.1 | ||||||||
| Other income (expense) |
(66.7 | ) | (0.3 | ) (a) | (67.0 | ) | ||||||
| Interest income (expense): |
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| Interest expense |
(124.9 | ) | 0.1 | (a) | (124.8 | ) | ||||||
| Interest income |
6.9 | — | 6.9 | |||||||||
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| (118.0 | ) | 0.1 | (117.9 | ) | ||||||||
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| Income (loss) before income taxes |
27.0 | (14.8 | ) | 12.2 | ||||||||
| Income tax (provision) benefit |
(38.8 | ) | 4.0 | (d) | (34.8 | ) | ||||||
| Equity in net earnings of unconsolidated affiliated companies |
1.7 | — | 1.7 | |||||||||
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| Net income (loss) including non-controlling interest |
(10.1 | ) | (10.8 | ) | (20.9 | ) | ||||||
| Less: preferred stock dividends |
0.3 | — | 0.3 | |||||||||
| Less: net income (loss) attributable to non-controlling interest |
7.7 | (4.0 | ) (a) | 3.7 | ||||||||
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| Net income (loss) attributable to Company common shareholders |
$ | (18.1 | ) | $ | (6.8 | ) | $ | (24.9 | ) | |||
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| Earnings (loss) per share |
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| Earnings (loss) per common share-basic |
$ | (0.37 | ) | $ | (0.13 | ) | $ | (0.50 | ) | |||
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| Weighted average common shares-basic |
49.4 | 49.4 | 49.4 | |||||||||
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| Earnings (loss) per common share-assuming dilution |
$ | (0.37 | ) | $ | (0.13 | ) | $ | (0.50 | ) | |||
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| Weighted average common shares-assuming dilution |
49.4 | 49.4 | 49.4 | |||||||||
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See accompanying notes to unaudited pro forma condensed consolidated financial information.
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Pro Forma Adjustments
On December 22, 2014, General Cable Corporation (“General Cable” or the “Company”) completed the sale of its interest in Phelps Dodge International Philippines, Inc. (“PDP”) and Phelps Dodge Philippines Energy Products Corporation (“PDEP”) for cash consideration of $67.1 million. The Company sold its 60% interest to its joint venture partner, A. Soriano Corporation (Anscor).
The following pro forma adjustments are included in the unaudited pro forma condensed consolidated balance sheet and/or the unaudited pro forma condensed consolidated statements of operations:
| (a) | Represents the elimination of assets, liabilities and historical operating results included in the disposition of PDP and PDEP |
| (b) | Includes $67.1 million of cash proceeds from the sale of PDP and PDEP, net of cash to buyer |
| (c) | Represents the elimination of a $1.3 million unconsolidated affiliated company investment in a PDP subsidiary |
| (d) | Includes the impact on the Company’s global consolidated estimated tax computation excluding PDP and PDEP |
| (e) | Includes the estimated after-tax effect on retained earnings from the disposition of PDP and PDEP; including the after-tax gain on the sale |
| (f) | Represents the elimination of noncontrolling interest related to the 40% ownership by A. Soriano Corporation |
Items non-recurring in nature are not reflected in the pro forma adjustments in the condensed consolidated statements of operations.