UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1999
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 333-59541
GREAT LAKES ACQUISITION CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 76-0576974
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
551 Fifth Avenue, Suite 3600, New York, New York 10176
(Address of principal executive office) (Zip Code)
(212) 370-5770
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former
fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.
Yes [X] No [ ].
<PAGE> 1
<TABLE>
GREAT LAKES ACQUISITION CORPORATION
FORM 10-Q June 30, 1999
CONTENTS
<CAPTION>
Page No.
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets -
December 31, 1998 and June 30, 1999 . . . . . . . . . . . . . . 2
Condensed Consolidated Statements of Operations -
For the period January 1, 1998 to May 21, 1998 (predecessor),
the period May 22, 1998 to June 30, 1998 and the six months
ended June 30,1999 (Company). . . . . . . . . . . . . . . . . .3
Condensed Consolidated Statements of Operations -
For the period April 1, 1998 to May 21, 1998 (predecessor),
the period May 22, 1998 to June 30, 1998 and the three months
ended June 30,1999 (Company). . . . . . . . . . . . . . . . . .4
Condensed Consolidated Statements of Stockholders' Equity -
For the six months ended June 30, 1999. . . . . . . . . . . . . 5
Condensed Consolidated Statements of Cash Flows -
For the period January 1, 1998 to May 21, 1998 (predecessor),
the period May 22, 1998 to June 30, 1998 and the six months
ended June 30,1999 (Company). . . . . . . . . . . . . . . . . .6
Notes to Condensed Consolidated Financial Statements. . . . . . 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations . . . . . . . . . 9
PART II. OTHER INFORMATION
Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . 11
Item 2. Changes in Securities . . . . . . . . . . . . . . . . . . . . . 11
Item 3. Defaults Upon Senior Securities . . . . . . . . . . . . . . . . 11
Item 4. Submission of Matters to a Vote of Security Holders . . . . . . 11
Item 5. Other Information . . . . . . . . . . . . . . . . . . . . . . . 11
Item 6. Exhibits and Reports on Form 8-K. . . . . . . . . . . . . . . . 11
</TABLE>
<PAGE> 2
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
GREAT LAKES ACQUISITION CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
<CAPTION>
December 31, June 30,
1998 1999
--------- ---------
(Audited) (Unaudited)
<S> <C> <C>
ASSETS
Current Assets
Cash $ 10,403 $ 13,347
Accounts receivable, net 18,961 30,298
Inventories 37,702 39,022
Income taxes receivable 1,274 -
Prepaid expenses and other current assets 9,456 7,050
--------- ---------
Total Current Assets 77,796 89,717
Property, plant and equipment, net 214,101 208,568
Goodwill 176,220 173,984
Capitalized financing costs 19,587 18,384
Other assets 5,182 4,071
--------- ---------
$492,886 $494,724
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 18,897 $ 17,845
Accrued expenses 13,285 13,880
Income taxes payable - 1,642
Current portion of long-term debt 10,009 11,371
--------- ---------
Total Current Liabilities 42,191 44,738
Long-term debt, less current portion 321,089 317,891
Other long-term liabilities 4,876 5,976
Deferred taxes 58,390 56,865
Stockholders' Equity
Common stock, par value $0.01 per share,
65,330 shares authorized and outstanding 1 1
Additional paid-in capital 65,329 65,329
Retained earnings 1,010 3,924
--------- ---------
66,340 69,254
--------- ---------
$492,886 $494,724
========= =========
<FN>
See notes to condensed consolidated financial statements.
</TABLE>
<PAGE> 3
<TABLE>
GREAT LAKES ACQUISITION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands)
<CAPTION>
PREDECESSOR COMPANY
----------- --------------------------
Period from Period from For the Six
January 1 May 22 to Months Ended
to May 21, to June 30, June 30,
1998 1998 1999
--------- --------- ---------
<S> <C> <C> <C>
Net Sales $ 90,849 $ 28,511 $ 122,366
Cost of Goods Sold 67,168 20,676 90,961
--------- --------- ---------
Gross Profit 23,681 7,835 31,405
Selling, general and administrative
expenses 13,070 1,720 9,711
--------- --------- ---------
Operating Income 10,611 6,115 21,694
Other income (expense):
Interest, net (1,776) (3,777) (17,187)
Other, net (472) 491 697
--------- --------- --------
(2,248) (3,286) (16,490)
Income Before Income Taxes
and Extraordinary Item 8,363 2,829 5,204
Income taxes 2,839 2,198 2,290
--------- --------- --------
Income before extraordinary item 5,524 631 2,914
Extraordinary loss on early
extinguishment of debt 7,113 - -
--------- --------- --------
Net income (loss) $ (1,589) $ 631 $ 2,914
========= ========= ========
<FN>
See notes to condensed consolidated financial statements.
</TABLE>
<PAGE> 4
<TABLE>
GREAT LAKES ACQUISITION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands)
<CAPTION>
PREDECESSOR COMPANY
----------- --------------------------
Period from Period from For the Three
April 1 May 22 to Months Ended
to May 21, to June 30, June 30,
1998 1998 1999
--------- --------- ---------
<S> <C> <C> <C>
Net Sales $ 28,779 $ 28,511 $ 62,003
Cost of Goods Sold 21,485 20,676 46,437
--------- --------- ---------
Gross Profit 7,294 7,835 15,566
Selling, general and administrative
expenses 10,386 1,720 4,906
--------- --------- ---------
Operating Income (3,092) 6,115 10,660
Other income (expense):
Interest, net (619) (3,777) (8,572)
Other, net (400) 491 410
--------- --------- ---------
(1,019) (3,286) (8,162)
Income Before Income Taxes
and Extraordinary Item (4,111) 2,829 2,498
Income taxes (benefit) (1,568) 2,198 1,162
--------- --------- ---------
Income before extraordinary item (2,543) 631 1,336
Extraordinary loss on early
extinguishment of debt 7,113 - -
--------- --------- ---------
Net income (loss) $ (9,656) $ 631 $ 1,336
========= ========= =========
<FN>
See notes to condensed consolidated financial statements.
</TABLE>
<PAGE> 5
<TABLE>
GREAT LAKES ACQUISITION CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(Unaudited)
(In thousands)
<CAPTION>
Additional Total
Common Paid-In Retained Stockholders'
Stock Capital Earnings Equity
---------- ---------- ---------- ----------
<S > <C> <C> <C> <C>
Balance at December 31, 1998 $ 1 $ 65,329 $ 1,010 $ 66,340
Net Income - - 2,914 2,914
---------- ---------- ---------- ----------
Balance at June 30, 1999 $ 1 $ 65,329 $ 3,924 $ 69,254
========== ========== ========== ==========
<FN>
See notes to condensed consolidated financial statements.
</TABLE>
<PAGE> 6
<TABLE>
GREAT LAKES ACQUISITION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
<CAPTION>
PREDECESSOR COMPANY
----------- --------------------------
Period from Period from For the Six
January 1 May 22 to Months Ended
to May 21, to June 30, June 30,
1998 1998 1999
--------- --------- ---------
<S> <C> <C> <C>
Net income $ (1,589) $ 631 $ 2,914
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 3,546 2,260 11,472
Deferred taxes - - (1,525)
Changes in operating assets and
liabilities:
Accounts receivables 6,886 (4,296) (11,337)
Inventories (1,938) (452) (1,320)
Other current assets (1,193) (331) 2,406
Income taxes payable (4,765) 1,833 2,916
Accounts payable and accrued
expenses 9,164 (3,341) (457)
Other, net 2,627 (868) 1,938
--------- --------- ---------
Net cash provided (used) by
operating activities $ 12,738 $ (4,564) $ 7,007
Investing activities:
Capital expenditures (9,058) (1,848) (2,227)
Acquisition of Great Lakes Carbon
Corporation-net of cash acquired - (275,902) -
--------- --------- ---------
Net cash used by investing activities (9,058) (277,750) (2,227)
Financing Activities:
Repayment of long-term debt (161) (65,035) (5,202)
Additions to long-term debt 4,928 316,976 3,366
Deferred financing costs - (25,000) -
Capital contribution - 65,330 -
--------- --------- ---------
Net cash provided by
financing activities 4,767 292,271 (1,836)
--------- --------- ---------
Increase (decrease) in cash 8,447 9,957 2,944
Cash at beginning of period 43,596 - 10,403
--------- --------- ---------
Cash at end of period $ 52,043 $ 9,957 $ 13,347
========= ========= =========
<FN>
See notes to condensed consolidated financial statements.
</TABLE>
<PAGE> 7
GREAT LAKES ACQUISITION CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 1999
(Unaudited)
1. Organization and Basis of Presentation
Great Lakes Acquisition Corp. (the "Company") was incorporated under the
laws of Delaware on March 31, 1998. The Company is a 99.49% owned subsidiary
of American Industrial Capital Fund II, L.P. ("AIP"). On May 18, 1998, the
Company canceled its previously issued shares of common stock and issued
65,000 shares of its common stock for approximately $65 million. On May 22,
1998, the Company issued an additional 330 shares of common stock for $330,000.
On May 22, 1998, the Company acquired all of the issued and outstanding stock
of Great Lakes Carbon Corporation ("GLC") in a transaction accounted for as a
purchase (the "Acquisition"). Accordingly, the purchase price has been
allocated to the assets acquired and liabilities assumed based on estimates of
the respective fair values at the Acquisition date.
The accompanying financial statements as of June 30, 1999 reflect the
consolidated financial position, results of operations, and cash flow of the
Company subsequent to the date of Acquisition. The accompanying predecessor
financial statements for the period prior to the date of Acquisition are
presented under the historical basis of accounting of GLC and do not reflect
any adjustments that would be required as a result of the Acquisition by the
Company. The Company had no substantive operations prior to May 22, 1998.
The accompanying unaudited consolidated financial statements have been
prepared in accordance with Article 10 of Regulation S-X and, therefore, do
not include all information and footnotes necessary for a fair presentation of
financial position, results of operations, and cash flows in conformity with
generally accepted accounting principles. The information furnished reflects
all adjustments (consisting of normal recurring adjustments) which are, in the
opinion of management, necessary for a fair summary of the results of
operations.
2. Acquisition
As consideration for the acquisition of GLC described above, the Company paid
the former shareholders of GLC aproximately $323,000,000 and incurred
transaction costs of approximately $25,000,000. The total purchase price was
funded by a cash contribution from AIP and affiliates of, and certain other
individuals associated with, AIP of $65,330,000; available cash at GLC of
approximately $52,000,000; proceeds of $175,000,000 from the sale by GLC of
10 1/4% Senior Subordinated Notes; borrowings by GLC of $111,000,000 pursuant
to a new credit facility; and proceeds of $30,050,072 from the sale by the
Company of 13 1/8% Senior Discount Debentures. In addition, as a condition to
the transaction, GLC repurchased its then outstanding 10% Senior Secured Notes
through a public tender offer for total consideration of $74,106,500 (excluding
accrued interest).
<PAGE> 8
GREAT LAKES ACQUISITION CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 1999
(Unaudited)
3. Inventories
Inventories are as follows:
December 31, June 30,
1998 1999
--------- ---------
(In thousands)
Raw materials $ 18,837 $ 26,364
Finished goods 12,996 6,318
Supplies and spare parts 5,869 6,340
--------- ---------
$ 37,702 $ 39,022
========= =========
4. Accrued Expenses
Accrued expenses included interest payable and employee profit sharing payable
of $2,635,000 and $2,437,000, respectively, at December 31, 1998 and interest
payable of $3,468,000 at June 30, 1999.
<PAGE> 9
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
General
Through its wholly-owned operating subsidiary, GLC, the Company is
the world's largest producer of calcined petroleum coke ("CPC"). The Company
produces anode grade CPC, which is the principal raw material used in the
production of carbon anodes used in primary aluminum production, and industrial
grade CPC, which is used in a variety of specialty metals and materials
applications. CPC is produced from raw petroleum coke ("RPC") utilizing a high
temperature, rotary kiln process. RPC is a by-product of the petroleum
refining process and constitutes the largest single component of the Company's
cost of goods sold. The Company's principal source of revenues and profits are
sales of anode grade CPC to the aluminum industry. Historically, the Company's
profitability has been primarily a function of its CPC sales volumes, CPC
pricing and the cost of RPC.
Basis of Presentation
The Company acquired GLC on May 22, 1998. The following discussion
provides an assessment of the consolidated results of operations and liquidity
and capital resources for the Company and the Predecessor. Unless otherwise
indicated, 1998 historical results represent the combined operating results of
the Predecessor from January 1, 1998 to May 21, 1998 and the Company from the
date of the Acquisition through December 31, 1998. The Company had no
substantive operations prior to the Acquisition.
As further discussed in Note 1 to the Condensed Consolidated Financial
Statements, the Acquisition was accounted for as a purchase. Accordingly, the
operating results for the periods subsequent to May 21, 1998 reflect the
results of operations of the Company subsequent to the Acquisition and include
the impact of adjustments required under the purchase method of accounting.
Results of Operations
Three Months Ended June 30, 1999 Versus Three Months Ended June 30, 1998.
The Company's net sales for the quarter ended June 30, 1999 increased
8.2% to $62.0 million from $57.3 million in the comparable 1998 period. Net
sales of anode grade CPC increased 2.9% to $49.6 million and net sales of
industrial grade CPC increased 25.8% to $10.8 million.
The increase in anode grade CPC net sales was primarily the result of
a 9.9% increase in sales volume to 322,719 tons which was partially offset by
a 6.4% decline in the average per ton selling price attributable to continued
pressure from weak aluminum prices. The increase in sales volume reflects the
impact of the startup of a second kiln expansion at La Plata, Argentina.
The increase in industrial grade CPC net sales was the result of a
39.1% increase in sales volume to 81,089 tons which was partially offset by a
9.6% decrease in selling price. The increase in sales volume was due mainly
to greater shipments into the titanium dioxide market during the 1999 quarter.
The Company's gross profit for the second quarter increased by 2.9% to
$15.6 million from $15.1 million in 1998. The increase in gross profit was
due to the increase in sales discussed above partially offset by an increase
in cost of goods sold. The increase in cost of goods sold was the result of
higher sales volume offset in part by a decrease in average per ton costs
<PAGE> 10
principally due to lower raw material prices. Additional depreciation related
to the Acquisition in the 1999 quarter compared to 1998 amounted to $0.8
million and represented 19.2% of the gross increase in cost of goods sold.
Operating income increased by 252.6% to $10.7 million from $3.0 million
in the 1998 period. The improvement in operating income was due to a 60%
decrease in selling, general and administrative expenses and the increase in
gross profit discussed above. The decrease in selling, general and
administrative expenses was primarily the result of the absense in the 1999
period of payments made in the prior year quarter for certain non-recurring
fees and expenses under agreements that were terminated upon consumation of the
Acquisition, partially offset by increased amortization expense, related mainly
to goodwill established when the Company was acquired, and higher sales
commissions expense.
Results before income taxes increased 294.9% to a profit of $2.5
million from a loss of $1.3 million in the comparable 1998 period. The
increase was primarily attributable to the improvement in operating income
discussed above offset by a $4.2 million increase in net interest expense.
The increase in net interest expense was due mainly to the greater amount of
debt incurred by the Company in order to finance the Acquisition.
The Company's effective tax rate decreased to 46.5% in the 1999 period
from 49.1% in the 1998 period primarily as a result of the tax effects of
income from foreign operations present in the prior year period.
An extraordinary loss on early extinguishment of debt of $7.1 million
(net of income tax benefit of $4.0 million) was recognized during the period
prior to the Acquisition in 1998. This loss relates to the premium and
unamortized debt issuance costs associated with the tender offer for and
repurchase of the 10% Senior Secured Notes in connection with the Acquisition.
As a result of the factors discussed above, results for the three months ended
June 30, 1999 increased 114.8% to a profit of $1.3 million from a loss of $9.0
million in the 1998 period.
Adjusted EBITDA for the second quarter increased by 8.8% to $16.3
million in 1999 from $15.0 million in 1998 for the reasons set forth above.
Six Months Ended June 30, 1999 Versus Six Months Ended June 30, 1998.
The Company's net sales for the six months ended June 30, 1999
increased 2.5% to $122.4 million from $119.4 million in the comparable 1998
period. Net sales of anode grade CPC decreased 2.1% to $98.6 million and net
sales of industrial grade CPC increased 22.4% to $21.6 million.
The decrease in anode grade CPC net sales was primarily the result of
a 5.9% decline in the average per ton selling price partially offset by a 4.0%
increase in sales volume to 634,611 tons. The decline in the average per ton
selling price is attributable to continued pressure from weak aluminum prices.
The increase in sales volume reflects the impact of the startup of a second
kiln expansion at La Plata, Argentina.
The increase in industrial grade CPC net sales was the result of a
33.1% increase in sales volume to 164,129 tons which was partially offset by
an 8.0% decrease in selling price. The increase in sales volume was due
mainly to greater shipments into the titanium dioxide market during 1999.
The Company's gross profit for the six months ended June 30, 1999
decreased by 0.4% to $31.4 million from $31.5 million in 1998. The decrease
in gross profit was due to higher cost of goods sold partially offset by the
increase in sales discussed above. The increase in cost of goods sold was
the result of higher sales volume and increased depreciation expense related
to the Acquisition offset in large measure by a decrease in average per ton
costs principally due to lower raw material prices. The additional
<PAGE> 11
Acquisition-related depreciation in 1999 compared to 1998 amounted to $2.1
million and represented 68.3% of the gross increase in cost of goods sold.
Operating income increased by 29.7% to $21.7 million from $16.7 million
in 1998. The improvement in operating income was due to a 34% decrease in
selling, general and administrative expenses offset by the decrease in gross
profit discussed above. The decrease in selling, general and administrative
expenses was primarily the result of the absense in 1999 of payments made in
the prior year for certain non-recurring fees and expenses under agreements
that were terminated upon consumation of the Acquisition, partially offset by
increased amortization expense, related mainly to goodwill established when
the Company was acquired, and higher sales commission and management fee
expenses.
Income before income taxes decreased 53.5% to $5.2 million from $11.2
million in 1998. The decrease was primarily attributable to an $11.6 increase
in net interest expense offset by the improvement in operating income discussed
above. The increase in net interest expense was due mainly to the greater
amount of debt incurred by the Company in order to finance the Acquisition.
The Company's effective tax rate remained essentially unchanged at 44%
compared to 45% in 1998 as higher amounts of non-deductable amortization of
goodwill in 1999 compensated for the tax effects of income from foreign
operations present in the prior year period.
An extraordinary loss on early extinguishment of debt of $7.1 million
(net of income tax benefit of $4.0 million) was recognized during the period
prior to the Acquisition in 1998. This loss relates to the premium and
unamortized debt issuance costs associated with the tender offer for and
repurchase of the 10% Senior Secured Notes in connection with the Acquisition.
As a result of the factors discussed above, results for the six months ended
June 30, 1999 increased 404.2% to a profit of $2.9 million from a loss of $1.0
million in the 1998 period.
Adjusted EBITDA for the six month period increased by 5.1% to $33.1
million in 1999 from $31.5 million in 1998 for the reasons set forth above.
Liquidity and Capital Resources
The Company's liquidity requirements are primarily for debt service,
capital expenditures and general working capital needs. The timing of
inventory receipts and product shipments, all of which are entirely U.S.
dollar-denominated transactions, can have a substantial impact on the
Company's working capital requirements. Capital investments generally relate
to facility maintenance and projects to improve plant throughput and product
quality. It is anticipated that capital investments for 1999 will be
approximately $5.5 million.
The Company expects to meet its liquidity needs, including debt
service, through cash from operations and its revolving credit facility. The
revolving credit facility provides for borrowings of up to $25.0 million,
including a $7.5 million sub-limit for letters of credit. As of August 6,
1999, no funds had been drawn down on this line of credit and approximately
$3.2 million in letters of credit were outstanding under this credit agreement.
Year 2000
The Year 2000 ("Y2K") issue is the result of date-sensitive devices,
systems and computer programs that were developed using two digits rather than
four to define the applicable year. Any such technologies may recognize a
year containing "00" as the year 1900 rather than the year 2000. This could
<PAGE> 12
result in a system failure or miscalculations causing disruptions of
operations, including a temporary inability to engage in normal business
activities.
The Company has completed its Y2K compliance assessment and expects to
complete any required remediation efforts in order to be Y2K compliant by the
end of the third quarter of 1999. Costs for Y2K efforts are not being
accumulated separately. The Company believes that the costs to the Company
for historical and future remediation of Y2K issues will not have a material
adverse effect on the Company.
The Company, like most companies, will also be subject to Y2K risk
from its reliance on third parties for a wide variety of goods and servies,
such as raw materials and electricity. The extent to which such reliance could
have a material adverse effect on the Company is indiscernible.
Based on preliminary communications with customers and suppliers to
determine the extent of their Y2K efforts, the Company believes its exposure to
Y2K risk from material third party relationships is not material. The Company
believes that appropriate actions have been taken to minimize the risk to its
operations and financial condition.
Contingency plans that address a reasonably likely worst-case scenario
are currently being developed. These plans will address the key systems and
third parties that present potential significant risk. The plans will analyze
the strategies and resources necessary to restore operations in the unlikely
event that an interruption does occur. The plans will also outline a recovery
program detailing the necessary participants, processes and equipment needed
to restore operations. Contingency plans are expected to be finalized by the
end of the third quarter of 1999.
<PAGE> 13
GREAT LAKES ACQUISITION CORPORATION
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Refer to the Company's annual report on form 10K dated
March 31, 1999.
Item 2. Change in Securities
Not applicable.
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 5. Other Information
Not applicable.
Item 6. Exhibits and Reports on Form 8-K
(a) List of Exhibits:
Not applicable.
(b) Reports on Form 8-K
The Company filed no reports on Form 8-K with the Commission during
the three months ended June 30, 1999.
<PAGE> 14
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
GREAT LAKES ACQUISITION CORPORATION
Date: 8/6/99 /s/James D. Mckenzie
James D. McKenzie
President and Chief Executive Officer
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1999
<CASH> 13,347
<SECURITIES> 0
<RECEIVABLES> 31,474
<ALLOWANCES> 1,176
<INVENTORY> 39,022
<CURRENT-ASSETS> 89,717
<PP&E> 225,457
<DEPRECIATION> 16,889
<TOTAL-ASSETS> 494,724
<CURRENT-LIABILITIES> 44,738
<BONDS> 317,891
0
0
<COMMON> 1
<OTHER-SE> 69,253
<TOTAL-LIABILITY-AND-EQUITY> 494,724
<SALES> 122,366
<TOTAL-REVENUES> 122,366
<CGS> 90,961
<TOTAL-COSTS> 90,961
<OTHER-EXPENSES> 146
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 17,187
<INCOME-PRETAX> 5,204
<INCOME-TAX> 2,290
<INCOME-CONTINUING> 2,914
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,914
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
