Attached files
| file | filename |
|---|---|
| EX-99.1 - EX-99.1 - PAPERWEIGHT DEVELOPMENT CORP | d497693dex991.htm |
| 8-K - 8-K - PAPERWEIGHT DEVELOPMENT CORP | d497693d8k.htm |
Exhibit 99.2
Paperweight Development Corp.
and Subsidiaries
(debtor-in-possession)
Q3 2017 Financial Statements
(unaudited)
For satisfaction of Section 6.01(b) of the Superpriority Senior Debtor-in-Possession Credit Agreement
dated as of October 2, 2017.
Privileged and Confidential. Prepared at the direction of legal counsel.
PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
(debtor-in-possession)
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(dollars in thousands, except share data)
| October 1, 2017 |
December 31, 2016 |
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| ASSETS | ||||||||
| Current assets |
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| Cash and cash equivalents |
$ | 9,063 | $ | 6,397 | ||||
| Accounts receivable, less allowance for doubtful accounts of $400 and $323, respectively |
55,387 | 41,297 | ||||||
| Inventories |
94,159 | 86,392 | ||||||
| Other current assets |
6,423 | 4,478 | ||||||
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| Total current assets |
165,032 | 138,564 | ||||||
| Property, plant and equipment, net |
196,805 | 206,413 | ||||||
| Intangible assets, net |
32,983 | 34,697 | ||||||
| Other assets |
8,053 | 7,495 | ||||||
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| Total assets |
$ | 402,873 | $ | 387,169 | ||||
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| LIABILITIES, REDEEMABLE COMMON STOCK, ACCUMULATED DEFICIT AND ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||||||
| Current liabilities |
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| Current portion of long-term debt, net |
$ | 240,185 | $ | 982 | ||||
| Accounts payable |
— | 49,433 | ||||||
| Accrued interest |
623 | 3,258 | ||||||
| Other accrued liabilities |
41,477 | 44,939 | ||||||
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| Total current liabilities |
282,285 | 98,612 | ||||||
| Long-term debt, net |
— | 437,515 | ||||||
| Postretirement benefits other than pension |
— | 20,842 | ||||||
| Accrued pension |
— | 111,963 | ||||||
| Other long-term liabilities |
50 | 30,536 | ||||||
| Liabilities subject to compromise |
462,814 | — | ||||||
| Commitments and contingencies (Note 12) |
— | — | ||||||
| Redeemable common stock, $0.01 par value, shares authorized: 30,000,000, shares issued and outstanding: 5,823,112 and 6,260,418 |
91,760 | 100,641 | ||||||
| Accumulated deficit |
(450,573 | ) | (431,887 | ) | ||||
| Accumulated other comprehensive income |
16,537 | 18,947 | ||||||
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| Total liabilities, redeemable common stock, accumulated deficit and accumulated other comprehensive income |
$ | 402,873 | $ | 387,169 | ||||
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The accompanying notes are an integral part of these condensed consolidated financial statements.
PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
(debtor-in-possession)
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(unaudited)
(dollars in thousands)
| For the Three Months Ended October 1, 2017 |
For the Three Months Ended October 2, 2016 |
For the Nine Months Ended October 1, 2017 |
For the Nine Months Ended October 2, 2016 |
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| Net sales |
$ | 163,513 | $ | 169,189 | $ | 494,183 | $ | 523,280 | ||||||||
| Cost of sales |
132,750 | 139,852 | 404,040 | 427,486 | ||||||||||||
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| Gross profit |
30,763 | 29,337 | 90,143 | 95,794 | ||||||||||||
| Selling, general and administrative expenses |
23,677 | 25,917 | 71,362 | 78,922 | ||||||||||||
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| Operating income (loss) |
7,086 | 3,420 | 18,781 | 16,872 | ||||||||||||
| Other expense |
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| Interest expense, net |
12,356 | 10,179 | 36,582 | 30,550 | ||||||||||||
| Debt modification/extinguishment expense |
2,365 | — | 2,365 | — | ||||||||||||
| Reorganization items, net |
3,070 | — | 3,070 | — | ||||||||||||
| Foreign exchange (gain) loss |
(203 | ) | 95 | (771 | ) | (223 | ) | |||||||||
| Other expense |
351 | 280 | 937 | 802 | ||||||||||||
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| Income (loss) before income taxes |
(10,853 | ) | (7,134 | ) | (23,402 | ) | (14,257 | ) | ||||||||
| Provision for income taxes |
(97 | ) | 76 | 43 | 234 | |||||||||||
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| Net income (loss) |
(10,756 | ) | (7,210 | ) | (23,445 | ) | (14,491 | ) | ||||||||
| Other comprehensive income (loss): |
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| Changes in retiree plans |
(913 | ) | (913 | ) | (2,738 | ) | (2,743 | ) | ||||||||
| Unrealized gains (losses) on derivatives |
400 | 372 | 328 | (473 | ) | |||||||||||
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| Total other comprehensive income (loss) |
(513 | ) | (541 | ) | (2,410 | ) | (3,216 | ) | ||||||||
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| Comprehensive income (loss) |
$ | (11,269 | ) | $ | (7,751 | ) | $ | (25,855 | ) | $ | (17,707 | ) | ||||
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The accompanying notes are an integral part of these condensed consolidated financial statements.
PAPERWEIGHT DEVELOPMENT CORP. AND SUBSIDIARIES
(debtor-in-possession)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED
(unaudited)
(dollars in thousands)
| October 1, 2017 |
October 2, 2016 |
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| Cash flows from operating activities: |
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| Net income (loss) |
$ | (23,445 | ) | $ | (14,491 | ) | ||
| Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: |
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| Depreciation |
17,128 | 17,935 | ||||||
| Amortization of intangible assets and other |
1,989 | 1,968 | ||||||
| Amortization of financing fees |
2,816 | 1,429 | ||||||
| Amortization of debt discount |
823 | 591 | ||||||
| Employer 401(k) noncash matching contributions |
915 | 1,245 | ||||||
| Foreign exchange (gain) loss |
(799 | ) | (260 | ) | ||||
| Noncash (gain) loss on hedging |
166 | — | ||||||
| Loss (gain) on disposals of equipment |
14 | 46 | ||||||
| (Increase)/decrease in assets and increase/(decrease) in liabilities: |
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| Accounts receivable |
(13,760 | ) | (5,521 | ) | ||||
| Inventories |
(7,660 | ) | 1,647 | |||||
| Other current assets |
(1,937 | ) | 1,950 | |||||
| Accounts payable and other accrued liabilities |
13,825 | (7,838 | ) | |||||
| Accrued pension |
(3,614 | ) | 3,463 | |||||
| Other, net |
(4,929 | ) | (3,309 | ) | ||||
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| Net cash provided (used) by operating activities |
(18,468 | ) | (1,145 | ) | ||||
| Cash flows from investing activities: |
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| Proceeds from sale of equipment |
4 | 46 | ||||||
| Additions to property, plant and equipment |
(6,984 | ) | (11,521 | ) | ||||
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| Net cash provided (used) by investing activities |
(6,980 | ) | (11,475 | ) | ||||
| Cash flows from financing activities: |
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| Debt acquisition costs |
(800 | ) | — | |||||
| Proceeds of first lien term loan |
20,000 | — | ||||||
| Payments relating to capital lease obligations |
(190 | ) | (208 | ) | ||||
| Proceeds from revolving line of credit |
411,265 | 271,400 | ||||||
| Payments of revolving line of credit |
(381,300 | ) | (258,000 | ) | ||||
| Payments of State of Ohio loans |
(899 | ) | (1,167 | ) | ||||
| Proceeds from issuance of redeemable common stock |
708 | 850 | ||||||
| Payments to redeem common stock |
(5,490 | ) | (6,093 | ) | ||||
| Increase (decrease) in cash overdraft |
(15,208 | ) | 7,669 | |||||
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| Net cash provided (used) by financing activities |
28,086 | 14,451 | ||||||
| Effect of foreign exchange rate changes on cash and cash equivalents |
28 | 37 | ||||||
| Change in cash and cash equivalents |
2,666 | 1,868 | ||||||
| Cash and cash equivalents at beginning of period |
6,397 | 1,817 | ||||||
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| Cash and cash equivalents at end of period |
$ | 9,063 | $ | 3,685 | ||||
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The accompanying notes are an integral part of these condensed consolidated financial statements.