<PAGE>
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
----------- OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2000
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 001-14789
GENTEK INC.
(Exact name of Registrant as specified in its charter)
<TABLE>
<S> <C>
DELAWARE 02-0505547
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
LIBERTY LANE
HAMPTON, NEW HAMPSHIRE 03842
(Address of principal executive offices) (Zip Code)
</TABLE>
Registrant's telephone number, including area code: (603) 929-2264
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
--- ---
The number of shares of Common Stock outstanding at November 10, 2000 was
20,323,389.
The number of shares of Class B Common Stock outstanding at November 10, 2000
was 4,750,107.
================================================================================
<PAGE>
GENTEK INC.
FORM 10-Q
QUARTERLY PERIOD ENDED SEPTEMBER 30, 2000
INDEX
<TABLE>
<CAPTION>
PAGE NO.
--------
<S> <C>
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Consolidated Statements of Operations - Three Months and Nine Months
Ended September 30, 1999 and 2000......................................................... 1
Consolidated Balance Sheets - December 31, 1999 and
September 30, 2000........................................................................ 2
Consolidated Statements of Cash Flows - Nine Months Ended
September 30, 1999 and 2000............................................................... 3
Notes to the Consolidated Financial Statements............................................. 4-14
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations................................................... 15-17
Item 3. Quantitative and Qualitative Disclosure about Market Risk............................. 18
PART II. OTHER INFORMATION:
Item 1. Legal Proceedings..................................................................... 19
Item 2. Changes in Securities and Use of Proceeds............................................. 19
Item 3. Defaults upon Senior Securities....................................................... 19
Item 4. Submission of Matters to a Vote of Security Holders................................... 19
Item 5. Other Information..................................................................... 19
Item 6. Exhibits and Reports on Form 8-K...................................................... 19
SIGNATURES..................................................................................... 20
EXHIBIT INDEX.................................................................................. 21
EXHIBITS ..................................................................................... 22
</TABLE>
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GENTEK INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------- -------------
1999 2000 1999 2000
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net revenues............................................................ $283,779 $353,376 $660,717 $1,045,215
Cost of sales........................................................... 210,596 253,423 493,757 750,961
Selling, general and administrative expense............................. 37,651 55,166 90,328 163,017
Purchased in-process research and development........................... -- 5,800 -- 5,800
-------- -------- -------- ----------
Operating profit.................................................. 35,532 38,987 76,632 125,437
Interest expense........................................................ 14,196 19,061 28,735 55,460
Interest income......................................................... 146 484 739 1,088
Other (income) expense, net............................................. (664) (647) (913) (3,362)
-------- -------- -------- ----------
Income from continuing operations before income
taxes and extraordinary item..................................... 22,146 21,057 49,549 74,427
Income tax provision.................................................... 10,896 10,055 23,890 32,643
-------- -------- -------- ----------
Income from continuing operations before
extraordinary item............................................... 11,250 11,002 25,659 41,784
Income from discontinued operations (net of tax)..... -- -- 1,006 --
-------- -------- -------- ----------
Income before extraordinary item.................................. 11,250 11,002 26,665 41,784
Extraordinary item - loss from extinguishment of debt (net
of tax 3,231)........................................................... -- -- 4,939 --
-------- -------- -------- ----------
Net income................................................... $ 11,250 $ 11,002 $ 21,726 $ 41,784
======== ======== ======== ==========
EARNINGS PER COMMON SHARE - BASIC:
Income from continuing operations....................................... $ .54 $ .44 $ 1.22 $ 1.71
Income from discontinued operations (net of tax)........................ -- -- .05 --
Extraordinary item - loss from extinguishment of debt
(net of tax)........................................................... -- -- .23 --
-------- -------- -------- ----------
Net income................................................... $ .54 $ .44 $ 1.04 $ 1.71
======== ======== ======== ==========
EARNINGS PER COMMON SHARE - ASSUMING DILUTION:
Income from continuing operations....................................... $ .52 $ .43 $ 1.19 $ 1.67
Income from discontinued operations (net of tax)........................ -- -- .05 --
Extraordinary item - loss from extinguishment of debt
(net of tax)........................................................... -- -- .23 --
-------- -------- -------- ----------
Net income................................................... $ .52 $ .43 $ 1.01 $ 1.67
======== ======== ======== ==========
</TABLE>
See the accompanying notes to the consolidated financial statements.
-1-
<PAGE>
GENTEK INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
(UNAUDITED)
ASSETS
<TABLE>
<CAPTION>
DECEMBER 31, SEPTEMBER 30,
1999 2000
---- ----
<S> <C> <C>
Current assets:
Cash and cash equivalents................................................... $ 20,687 $ 19,739
Receivables, net............................................................ 214,822 237,060
Inventories................................................................. 125,297 134,385
Deferred income taxes....................................................... 25,682 30,535
Other current assets........................................................ 15,375 18,500
---------- ----------
Total current assets..................................................... 401,863 440,219
Property, plant and equipment, net................................................. 386,174 448,303
Goodwill, net ..................................................................... 386,490 365,144
Other assets 78,959 74,134
---------- ----------
Total assets............................................................. $1,253,486 $1,327,800
========== ==========
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable............................................................. $ 104,212 $ 111,835
Accrued liabilities.......................................................... 157,544 163,992
Current portion of long-term debt............................................ 18,758 23,841
---------- ----------
Total current liabilities................................................ 280,514 299,668
Long-term debt..................................................................... 705,357 788,682
Other liabilities.................................................................. 212,592 212,897
---------- ----------
Total liabilities........................................................ 1,198,463 1,301,247
---------- ----------
Equity:
Preferred Stock, $.01 par value; authorized 10,000,000
shares; none issued or outstanding.......................................... -- --
Common Stock, $.01 par value; authorized 100,000,000
shares; issued: 16,876,017 and 20,251,357 shares at
December 31, 1999 and September 30, 2000, respectively...................... 169 203
Class B Common Stock, $.01 par value; authorized
40,000,000 shares; issued and outstanding:
3,958,421 and 4,750,107 shares at December 31, 1999 and
September 30, 2000, respectively............................................ 40 48
Paid in capital.............................................................. 50,071 6,029
Accumulated other comprehensive loss......................................... (3,489) (25,398)
Retained earnings............................................................ 8,509 46,541
Treasury stock, at cost: 18,058 and 63,569 shares at
December 31, 1999 and September 30, 2000, respectively...................... (277) (870)
---------- ----------
Total equity............................................................. 55,023 26,553
---------- ----------
Total liabilities and equity............................................. $1,253,486 $1,327,800
========== ==========
</TABLE>
See the accompanying notes to the consolidated financial statements.
-2-
<PAGE>
GENTEK INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
--------------
1999 2000
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income......................................................... $ 21,726 $ 41,784
Adjustments to reconcile net income to net cash
Depreciation and amortization.................................... 33,528 50,326
Net loss (gain) on disposition of long-term assets............... 229 (966)
Purchased in process research and development.................... -- 5,800
Unrealized exchange gain......................................... (779) --
Long-term incentive plan costs................................... 607 616
Loss on extinguishment of debt................................... 8,170 --
Income from discontinued operations.............................. (1,006) --
Increase in receivables.......................................... (26,812) (28,482)
Increase in inventories.......................................... (339) (16,947)
Increase (decrease) in accounts payable.......................... (410) 8,430
Increase in accrued liabilities.................................. 11,326 9,639
Decrease in other liabilities and assets, net.................... (3,198) (8,415)
--------- ---------
Net cash provided by continuing operations................... 43,042 61,785
Cash flows from investing activities:
Capital expenditures............................................... (27,589) (55,409)
Proceeds from sales or disposals of long term assets............... 354 6,201
Cash provided by discontinued operations........................... 122,711 --
Acquisition of businesses, net of cash acquired*................... (445,020) (135,928)
Other investing activities......................................... -- (3,646)
--------- ---------
Net cash used for investing activities....................... (349,544) (188,782)
Cash flows from financing activities:
Proceeds from sale of stock........................................ -- 37,973
Proceeds from long-term debt....................................... 846,827 275,522
Repayment of long-term debt........................................ (573,435) (185,449)
Payment to acquire treasury stock.................................. (635) (597)
Exercise of stock options.......................................... -- 292
Dividends.......................................................... (2,079) (3,752)
Capital contributions.............................................. 9,378 3,982
--------- ---------
Net cash provided by financing activities.................... 280,056 127,971
--------- ---------
Effect of exchange rate changes on cash................................... (320) (1,922)
--------- ---------
Increase (decrease) in cash and cash equivalents.......................... (26,766) (948)
Cash and cash equivalents at beginning of period.......................... 61,598 20,687
--------- ---------
Cash and cash equivalents at end of period................................ $ 34,832 $ 19,739
========= =========
Supplemental information:
Cash paid for income taxes......................................... $ 25,020 $ 22,987
========= =========
Cash paid for interest............................................. $ 17,696 $ 59,037
========= =========
*Purchase of businesses net of cash acquired:
Working Capital, other than cash................................... $ (79,008) $ (2,631)
Plant, property and equipment (158,078) (6,040)
Other assets....................................................... (341,309) (39,180)
Noncurrent liabilities............................................. 133,375 1,923
--------- ---------
Cash used to acquire businesses.................................. (445,020) (45,928)
Cash to acquire Digital Communications Group....................... -- (90,000)
--------- ---------
Total cash used to acquire businesses............................ $(445,020) $(135,928)
========= =========
</TABLE>
See the accompanying notes to the consolidated financial statements.
-3-
<PAGE>
GENTEK INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000
(DOLLARS IN THOUSANDS)
(UNAUDITED)
NOTE 1 - BASIS OF PRESENTATION
GenTek Inc. ("GenTek" or the "Company") was spun off from The General
Chemical Group Inc. ("GCG") on April 30, 1999 (the "Spinoff"). The Spinoff has
been treated as a reverse spinoff for financial statement purposes because a
greater proportion of the former assets and operations of GCG are held by
GenTek. Accordingly, the financial position and results of operations of the
industrial chemicals business that remained with GCG have been reflected as
discontinued operations.
On August 25, 2000, the Company acquired the Digital Communications
Group ("Digital") of Prestolite Wire Corporation ("Prestolite") for $90,000 and
reflected such payment as a reduction to paid in capital. Digital manufactures
voice and data-quality copper and fiber-optic cable for the telecommunications
industry. As Prestolite is controlled by the controlling shareholder of GenTek,
the transaction has been accounted for in a manner similar to a pooling of
interests, and accordingly, the accompanying financial information has been
restated to include the accounts of Digital for all periods presented. Separate
and combined results of GenTek and Digital are as follows:
<TABLE>
<CAPTION>
GENTEK DIGITAL ADJUSTMENTS COMBINED
------ ------- ----------- --------
<S> <C> <C> <C> <C>
Six months ended June 30, 2000:
Net revenues............................. $642,132 $ 53,402 $(3,696) $691,838
Net income............................... 28,749 2,033 -- 30,782
Nine months ended September 30, 1999:
Net revenues............................. $609,324 $ 51,415 $ (22) $660,717
Extraordinary item....................... 4,939 -- -- 4,939
Net income............................... 23,834 (2,108) -- 21,726
</TABLE>
Adjustments represent elimination of intercompany sales.
The accompanying unaudited consolidated financial statements have been
prepared by the Company pursuant to the rules and regulations of the Securities
and Exchange Commission (the "SEC"). In the opinion of management, all
adjustments (consisting of normal recurring adjustments) considered necessary
for a fair presentation have been included. In addition, the Company recorded
adjustments to the carrying values of its assets and liabilities to reflect
refinements in purchase price allocations for acquisitions made within the last
year. Operating results for the nine months ended September 30, 2000 are not
necessarily indicative of the results that may be expected for the year ended
December 31, 2000. These statements should be read in conjunction with the
financial statements and the notes thereto included in the Company's Annual
Report on Form 10-K for the year ended December 31, 1999.
-4-
<PAGE>
GENTEK INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000
(DOLLARS IN THOUSANDS)
(UNAUDITED)
NOTE 2 - COMPREHENSIVE INCOME
Total comprehensive income is comprised of net income, unrealized gains
and losses on marketable securities and foreign currency translation gains and
losses. Total comprehensive income for the three months ended September 30, 1999
and 2000 was $11,314 and $842, respectively. Total comprehensive income for the
nine months ended September 30, 1999 and 2000 was $21,896 and $19,875,
respectively.
NOTE 3 - CAPITAL STOCK
On February 22, 2000, the Company issued 3,371,340 shares of Common
Stock and 791,685 shares of Class B Common Stock in connection with the
Company's rights offering. Pursuant to the rights offering, the holders of
record of the Company's Common Stock and Class B Common Stock as of January 24,
2000 received, at no cost, 0.20 rights to purchase one share of Common Stock or
Class B Common Stock of the Company, as appropriate, for each share of such
stock they held as of the record date. Each whole right entitled the holder to
purchase one share of Common Stock or Class B Stock, as the case may be, at the
price of $9.43 per share. The net proceeds to the Company from this issuance of
Common Stock and Class B Common Stock were approximately $38 million and were
used to repay existing indebtedness and for general corporate purposes.
NOTE 4 - EARNINGS PER SHARE
The computation of basic earnings per share is based on the weighted
average number of common shares and issuable shares outstanding during the
period. The computation of diluted earnings per share also includes the exercise
of all stock options and restricted units, using the treasury stock method.
The shares outstanding used for the basic and diluted earnings per
common share computation are reconciled as follows:
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------- -------------
1999 2000 1999 2000
---- ---- ---- ----
<S> <C> <C> <C> <C>
Basic earnings per common share:
Weighted average common shares
outstanding................................ 20,989,245 25,285,153 20,942,676 24,431,351
========== ========== ========== ==========
Diluted earnings per common share:
Weighted average common shares
outstanding................................ 20,989,245 25,285,153 20,942,676 24,431,351
Options and restricted units................ 442,800 544,402 494,766 518,386
---------- ---------- ---------- ----------
Total................................. 21,432,045 25,829,555 21,437,442 24,949,737
========== ========== ========== ==========
</TABLE>
At September 30, 1999 and 2000 options to purchase 1,574,500 shares and
389,500 shares of common stock, respectively, were not included in the
computation of diluted earnings per common share because the exercise price was
greater than the average market price of the common shares.
-5-
<PAGE>
GENTEK INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000
(DOLLARS IN THOUSANDS)
(UNAUDITED)
NOTE 5 - INCOME TAXES
Prior to its acquisition, Digital was a division of Prestolite, which
is an S-Corporation and, consequently, is not subject to federal income taxes.
The pro forma income tax provision that would have been reported by the Company
had Prestolite not been an S-Corporation prior to the acquisition, was $11,108
and $11,415 for the three months ended September 30, 1999 and 2000,
respectively, and $23,092 and $34,816 for the nine months ended September 30,
1999 and 2000, respectively.
On July 14, 2000, legislation was enacted in Germany reducing income
tax rates beginning January 1, 2000. Accordingly, the Company recorded a charge
of $2,800 to income tax expense reflecting the revaluation of deferred tax
assets at the new, lower effective tax rates.
NOTE 6 - ACQUISITION
On May 31, 2000, the Company acquired approximately 85 percent (81
percent on a fully diluted basis) of the outstanding stock of Con-X Corporation,
an emerging leader in the development of automated cross-connect systems for
digital subscriber line and other broadband service providers. Funding for this
transaction was provided by existing cash and borrowings under the Company's
existing credit facilities. The acquisition was accounted for under the purchase
method, and accordingly, the net assets and results of operations are included
in the financial statements from the acquisition date. During the third quarter,
the Company received a definitive appraisal of the tangible and intangible
assets acquired, including in-process research and development. Accordingly, the
Company recorded a non-cash charge of $5,800 as this technology had not yet
reached technological feasibility and had no future alternative use. The value
assigned to purchased in-process research and development was determined by
employment of a discounted cash flow model. The estimated cash flows span a
twelve year period. These net cash flows were discounted back to their present
value using a risk adjusted discount rate of 60 percent. If these projects are
not successfully developed, the value of other intangible assets acquired may
become impaired. The remaining purchase price was allocated to tangible and
intangible assets, including goodwill and existing technology, less liabilities
assumed. The allocations of purchase price are based on information available to
the Company which is subject to change as such information is finalized.
Management believes that the assumptions used in the valuation of purchased
in-process technology reasonably estimate the future benefits attributable to
the purchased in-process technology. No assurance can be given that actual
results will not deviate from those assumptions in future periods.
NOTE 7 - ADDITIONAL FINANCIAL INFORMATION
The components of inventories were as follows:
<TABLE>
<CAPTION>
DECEMBER 31, SEPTEMBER 30,
1999 2000
---- ----
<S> <C> <C>
Raw materials........................... $ 54,189 $ 54,190
Work in process......................... 19,806 23,207
Finished products....................... 47,093 51,863
Supplies and containers................. 4,209 5,125
-------- --------
$125,297 $134,385
======== ========
</TABLE>
-6-
<PAGE>
GENTEK INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000
(DOLLARS IN THOUSANDS)
(UNAUDITED)
NOTE 8 - LONG-TERM DEBT
Long-term debt consists of the following:
<TABLE>
<CAPTION>
DECEMBER 31, SEPTEMBER 30,
------------ ------------
MATURITIES 1999 2000
---------- ---- ----
<S> <C> <C> <C>
Bank Term Loans - floating rate.................... 2000-2007 $249,250 $497,188
Revolving Credit Facility - floating rate.......... 2005 220,000 92,000
Senior Subordinated Notes - 11%.................... 2009 200,000 200,000
Other Debt - floating rate......................... 54,865 23,335
-------- ---------
Total Debt................................... 724,115 812,523
Less: Current Portion....................... 18,758 23,841
-------- ---------
Net Long-Term Debt........................... $705,357 $788,682
======== =========
</TABLE>
On August 9, 2000, the Company entered into a restated and amended
credit agreement, under which the Company added $50,000 to its existing $100,000
Tranche A Term Loan and a new $200,000 Tranche C Term Loan. Tranche C is payable
in equal quarterly installments of $500 commencing December 31, 2000 with four
quarterly balloon payments in 2007, and final maturity on October 31, 2007. The
proceeds from these additional borrowings were used to repay existing borrowings
on the Company's revolving credit facility and for the acquisition of Digital
from Prestolite.
NOTE 9 - DIVIDENDS
On September 15, 2000, GenTek's Board of Directors declared a quarterly
cash dividend of $.05 per share of Common Stock and Class B Common Stock,
payable September 30, 2000, to shareholders of record on September 23, 2000.
NOTE 10 - RELATED PARTY TRANSACTIONS
ALLOCATIONS
Prior to its acquisition, Digital was a division of Prestolite Wire
Corporation. Prestolite provided certain services to Digital such as accounting,
legal, human resources, information technology and other corporate services. The
accompanying statements of operations include allocations of $3,049 and $2,292
for the nine months ended September 30, 1999 and 2000, respectively. Interest
expense of $3,357 and $3,518 for the nine month periods ended September 30, 1999
and 2000, respectively, has been charged to Digital based on a net assets basis
utilizing Prestolite's effective interest rate and the cash flows of Digital.
These allocations were made consistently in each period, and management believes
the allocations are reasonable. However, such allocations are not necessarily
indicative of the level of expenses that might have been incurred had Digital
been operating as a stand-alone entity or which might be expected to be incurred
as part of GenTek.
-7-
<PAGE>
GENTEK INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000
(DOLLARS IN THOUSANDS)
(UNAUDITED)
MANAGEMENT AGREEMENT
The Company is party to a management agreement with Latona Associates
("Latona"), a company controlled by a stockholder of the Company, under which
the Company receives corporate supervisory and administrative services and
strategic guidance. Prior to the Spinoff, Latona provided these services to
GenTek's businesses pursuant to a substantially similar agreement with GCG. The
Company was charged $3,618 and $3,477 for the nine months ended September 30,
1999 and 2000, respectively. In addition, the Company paid $600 in connection
with acquisitions.
TRANSITION SUPPORT AGREEMENT
GenTek provides GCG with certain administrative services pursuant to a
transition support agreement entered into in connection with the Spinoff. For
the nine months ended September 30, 1999 and 2000, GenTek charged GCG $1,534 and
$1,296, respectively, related to this agreement.
OTHER TRANSACTIONS
GCG supplies soda ash and calcium chloride to GenTek. For the nine
months ended September 30, 1999 and 2000, purchases from GCG amounted to $10,045
and $3,390, respectively.
NOTE 11 - SEGMENT INFORMATION
Industry segment information for continuing operations is summarized as
follows:
<TABLE>
<CAPTION>
TOTAL REVENUES OPERATING PROFIT
NINE MONTHS ENDED NINE MONTHS ENDED
----------------- -----------------
SEPTEMBER 30, SEPTEMBER 30,
------------- -------------
1999 2000 1999 2000
---- ---- ---- ----
<S> <C> <C> <C> <C>
Performance Products.............................. $254,613 $ 269,124 $34,071 $ 37,018
Manufacturing..................................... 315,102 428,079 48,939 53,001
Telecommunications Equipment...................... 91,002 348,012 4,190 38,981
-------- ---------- ------- --------
Total Segment............................ 660,717 1,045,215 87,200 129,000
Eliminations and other corporate expenses......... -- -- (10,568) (3,563)
-------- ---------- ------- --------
Consolidated...................................... $660,717 $1,045,215 76,632 125,437
======== ==========
Interest expense.................................. 28,735 55,460
Other income, net................................. 1,652 4,450
------- --------
Consolidated income from continuing
operations before income taxes and
extraordinary item............................... $49,549 $ 74,427
======= ========
</TABLE>
-8-
<PAGE>
GENTEK INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000
(DOLLARS IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
IDENTIFIABLE ASSETS
-------------------
DECEMBER 31, SEPTEMBER 30,
------------ -------------
1999 2000
---- ----
<S> <C> <C>
Performance Products.......................... $ 360,597 $ 379,881
Manufacturing................................. 467,886 474,582
Telecommunications Equipment.................. 411,617 457,408
Corporate..................................... 13,386 15,929
---------- ----------
Consolidated.................................. $1,253,486 $1,327,800
========== ==========
</TABLE>
NOTE 12 - SUMMARIZED FINANCIAL INFORMATION
The Company's Senior Subordinated Notes due 2009 are fully and
unconditionally guaranteed, on a joint and several basis, by all of the
Company's wholly owned, domestic subsidiaries ("Subsidiary Guarantors"). The
non-guarantor subsidiaries are foreign or are part of the Industrial Chemicals
Business, which are no longer part of GenTek as a result of the Spinoff.
The following condensed consolidating financial information illustrates
the composition of the combined Subsidiary Guarantors. The Company believes that
the separate complete financial statements of the respective guarantors would
not provide additional material information which would be useful in assessing
the financial composition of the Subsidiary Guarantors.
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
NON-
SUBSIDIARY GUARANTOR
PARENT GUARANTORS SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------ ---------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net revenues......................................... $ - $190,101 $100,034 $ (6,356) $283,779
Cost of sales........................................ - 144,300 72,652 (6,356) 210,596
Selling, general and administrative expenses......... 615 22,215 14,821 - 37,651
-------- -------- -------- -------- --------
Operating profit................................. (615) 23,586 12,561 - 35,532
Interest expense ................................... 9,120 10,368 3,573 (8,865) 14,196
Other (income) expense, net.......................... (9,052) (1,408) 785 8,865 (810)
-------- -------- -------- -------- --------
Income before income taxes....................... (683) 14,626 8,203 - 22,146
Income tax provision................................. (112) 7,011 3,997 - 10,896
Equity in income from subsidiaries................... 11,821 4,206 - (16,027) -
-------- -------- -------- -------- --------
Net income ................................... $ 11,250 $ 11,821 $ 4,206 $(16,027) $ 11,250
======== ======== ======== ======== ========
</TABLE>
-9-
<PAGE>
GENTEK INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000
(DOLLARS IN THOUSANDS)
(UNAUDITED)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SUBSIDIARY NON-GUARANTOR
PARENT GUARANTORS SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------ ---------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Net revenues......................................... $ - $210,789 $155,960 $(13,373) $353,376
Cost of sales........................................ - 160,329 106,467 (13,373) 253,423
Selling, general and administrative expense.......... 733 31,889 28,344 - 60,966
-------- -------- -------- -------- --------
Operating profit................................. (733) 18,571 21,149 - 38,987
Interest expense ................................... 13,845 15,015 4,117 (13,916) 19,061
Other (income) expense, net.......................... (13,825) (1,680) 458 13,916 (1,131)
-------- -------- -------- -------- --------
Income before income taxes....................... (753) 5,236 16,574 - 21,057
Income tax provision................................. (298) 2,304 8,049 - 10,055
Equity in income from subsidiaries................... 11,457 8,525 - (19,982) -
-------- -------- -------- -------- --------
Net income....................................... $ 11,002 $ 11,457 $ 8,525 $(19,982) $ 11,002
======== ======== ======== ======== ========
</TABLE>
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
SUBSIDIARY NON-GUARANTOR
PARENT GUARANTORS SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------ ---------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Net revenues......................................... $ - $506,901 $175,238 $(21,422) $660,717
Cost of sales........................................ - 381,909 133,270 (21,422) 493,757
Selling, general and administrative expenses......... 7,299 63,910 19,119 - 90,328
-------- -------- -------- -------- --------
Operating profit................................. (7,299) 61,082 22,849 - 76,632
Interest expense ................................... 20,874 22,139 6,187 (20,465) 28,735
Other (income) expense, net.......................... (20,399) (3,235) 1,517 20,465 (1,652)
-------- -------- -------- -------- --------
Income from continuing operations before
income taxes and extraordinary item............ (7,774) 42,178 15,145 - 49,549
Income tax provision................................. (3,197) 20,338 6,749 - 23,890
Equity in income from subsidiaries................... 31,242 9,402 - (40,644) -
-------- -------- -------- -------- --------
Income from continuing operations before
extraordinary item............................. 26,665 31,242 8,396 (40,644) 25,659
Income from discontinued operations
(net of tax)....................................... - - 1,006 - 1,006
-------- -------- -------- -------- --------
Income before extraordinary item..................... 26,665 31,242 9,402 (40,644) 25,665
Extraordinary item - loss from extinguishment
of debt (net of tax of $3,231)..................... 4,939 - - - 4,939
-------- -------- -------- -------- --------
Net income....................................... $ 21,726 $ 31,242 $ 9,402 $(40,644) $ 21,726
======== ======== ======== ======== =========
</TABLE>
-10-
<PAGE>
GENTEK INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000
(DOLLARS IN THOUSANDS)
(UNAUDITED)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
NON-
SUBSIDIARY GUARANTOR
PARENT GUARANTORS SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------ ---------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net revenues......................................... $ - $618,494 $460,750 $(34,029) $1,045,215
Cost of sales........................................ - 469,928 315,062 (34,029) 750,961
Selling, general and administrative expense.......... 2,291 79,966 86,560 - 168,817
-------- -------- -------- -------- ----------
Operating profit................................. (2,291) 68,600 59,128 - 125,437
Interest expense ................................... 37,327 42,205 16,343 (40,415) 55,460
Other (income) expense, net.......................... (37,291) (5,636) (1,938) 40,415 (4,450)
-------- -------- -------- -------- ----------
Income before income taxes....................... (2,327) 32,031 44,723 - 74,427
Income tax provision................................. (1,091) 14,056 19,678 - 32,643
Equity in income from subsidiaries................... 43,020 25,045 - (68,065) -
-------- -------- -------- -------- ---------
Net income ................................... $ 41,784 $ 43,020 $ 25,045 $(68,065) $ 41,784
======== ======== ======== ======== =========
</TABLE>
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1999
<TABLE>
<CAPTION>
NON-
SUBSIDIARY GUARANTOR
PARENT GUARANTORS SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------ ---------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Current assets:
Cash and cash equivalents.................... $ 51 $ 6,175 $ 14,461 $ - $ 20,687
Receivables, net............................. - 109,037 105,785 - 214,822
Inventories.................................. - 62,194 63,103 - 125,297
Other current assets......................... 523 29,472 11,062 - 41,057
------- --------- --------- --------- ----------
Total current assets......................... 574 206,878 194,411 - 401,863
Property, plant and equipment, net............... - 282,227 103,947 - 386,174
Goodwill, net of amortization.................... - 121,027 265,463 - 386,490
Intercompany receivable (payable)................ 514,067 (400,878) (113,189) - -
Investment in subsidiaries....................... 66,927 79,736 - (146,663) -
Other assets..................................... 245 38,403 40,311 - 78,959
-------- --------- --------- --------- ----------
Total assets ............................... $581,813 $ 327,393 $ 490,943 $(146,663) $1,253,486
======== ========= ========= ========= ==========
Current liabilities:
Accounts payable............................. $ 16 $ 48,732 $ 55,464 $ - $ 104,212
Accrued liabilities.......................... 6,202 71,785 79,557 - 157,544
Current portion of long-term debt............ 1,250 1,255 16,253 - 18,758
-------- --------- --------- --------- ----------
Total current liabilities.................... 7,468 121,772 151,274 - 280,514
Long-term debt ............................... 518,750 8,019 178,588 - 705,357
Other liabilities ............................... 572 130,675 81,345 - 212,592
-------- --------- --------- --------- ----------
Total liabilities............................ 526,790 260,466 411,207 - 1,198,463
Equity........................................... 55,023 66,927 79,736 (146,663) 55,023
-------- --------- --------- --------- ----------
Total liabilities and equity................. $581,813 $ 327,393 $ 490,943 $(146,663) $1,253,486
======== ========= ========= ========= ==========
</TABLE>
-11-
<PAGE>
GENTEK INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000
(DOLLARS IN THOUSANDS)
(UNAUDITED)
CONDENSED CONSOLIDATING BALANCE SHEET
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
SUBSIDIARY NON-GUARANTOR
PARENT GUARANTORS SUBSIDIARIES ELIMINATIONS CONSOLIDATED
------ ---------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Current assets:
Cash and cash equivalents.................... $ 30 $ (1,812) $ 21,521 $ - $ 19,739
Receivables, net............................. - 134,447 102,613 - 237,060
Inventories.................................. - 67,042 67,343 - 134,385
Other current assets......................... 311 29,559 19,165 - 49,035
-------- --------- -------- ----------- ----------
Total current assets......................... 341 229,236 210,642 - 440,219
Property, plant and equipment, net............... - 303,822 144,481 - 448,303
Goodwill, net of amortization.................... - 128,702 236,442 - 365,144
Intercompany receivable (payable)................ 626,222 (621,025) (5,197) - -
Investment in subsidiaries....................... 44,656 207,922 - (252,578) -
Other assets..................................... 245 61,931 11,958 74,134
-------- --------- -------- --------- ----------
Total assets ............................... $671,464 $ 310,588 $598,326 $(252,578) $1,327,800
======== ========= ======== ========= ==========
Current liabilities:
Accounts payable............................. $ 32 $ 39,667 $ 72,136 $ - $ 111,835
Accrued liabilities.......................... 3,050 93,437 67,505 - 163,992
Current portion of long-term debt............ 6,687 219 16,935 - 23,841
-------- --------- -------- --------- ----------
Total current liabilities.................... 9,769 133,323 156,576 - 299,668
Long-term debt ............................... 634,375 849 153,458 - 788,682
Other liabilities ............................... 767 131,760 80,370 - 212,897
-------- --------- -------- --------- ----------
Total liabilities............................ 644,911 265,932 390,404 - 1,301,247
Equity........................................... 26,553 44,656 207,922 (252,578) 26,553
-------- --------- -------- --------- ----------
Total liabilities and equity ................ $671,464 $ 310,588 $598,326 $(252,578) $1,327,800
======== ========= ======== ========= ==========
</TABLE>
-12-
<PAGE>
GENTEK INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000
(DOLLARS IN THOUSANDS)
(UNAUDITED)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
NON-
SUBSIDIARY GUARANTOR
PARENT GUARANTORS SUBSIDIARIES CONSOLIDATED
------ ---------- ------------ ------------
<S> <C> <C> <C> <C>
Net cash provided by (used in) operating
activities ..................................................... $ (1,144) $ 35,409 $ 8,777 $ 43,042
-------- --------- --------- ---------
Cash flows from investing activities:
Acquisition of businesses net of cash
acquired .................................................. -- (445,020) -- (445,020)
Cash provided by discontinued operations .................... -- -- 122,711 122,711
Other ....................................................... -- (23,605) (3,630) (27,235)
-------- --------- --------- ---------
Net cash provided by (used in) investing
activities ..................................................... -- (468,625) 119,081 (349,544)
-------- --------- --------- ---------
Cash flows from financing activities:
Intercompany cash transfers ................................. (215,169) 320,787 (105,618) --
Other ....................................................... 213,286 63,066 3,704 280,056
-------- --------- --------- ---------
Net cash provided by (used in) financing
activities ..................................................... (1,883) 383,853 (101,914) 280,056
-------- --------- --------- ---------
Effect of exchange rates on cash ................................ -- -- (320) (320)
-------- --------- --------- ---------
Increase (decrease) in cash and cash
equivalents..................................................... (3,027) (49,363) 25,624 (26,766)
Cash and cash equivalents at beginning
of year ........................................................ 3,147 57,447 1,004 61,598
-------- --------- --------- ---------
Cash and cash equivalents at end of period ...................... $ 120 $ 8,084 $ 26,628 $ 34,832
======== ========= ========= =========
</TABLE>
-13-
<PAGE>
GENTEK INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONCLUDED)
FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2000
(DOLLARS IN THOUSANDS)
(UNAUDITED)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
NON-
SUBSIDIARY GUARANTOR
PARENT GUARANTORS SUBSIDIARIES CONSOLIDATED
------ ---------- ------------ ------------
<S> <C> <C> <C> <C>
Net cash provided by (used in) operating
activities........................................ $ (3,964) $ 16,838 $ 48,911 $ 61,785
---------- ----------- ----------- -----------
Cash flows from investing activities:
Acquisition of businesses net of cash
acquired..................................... - (135,928) - (135,928)
Other.......................................... - (40,007) (12,847) (52,854)
---------- ----------- ----------- -----------
Net cash provided by (used in) investing
activities...................................... - (175,935) (12,847) (188,782)
---------- ----------- ----------- -----------
Cash flows from financing activities:
Proceeds from sale of stock.................... 37,973 - - 37,973
Intercompany cash transfers.................... (151,035) 151,279 (244) -
Other.......................................... 117,005 (169) (26,838) 89,998
---------- ----------- ----------- -----------
Net cash provided by (used in) financing
activities...................................... 3,943 151,110 (27,082) 127,971
---------- ----------- ----------- -----------
Effect of exchange rates on cash................... - - (1,922) (1,922)
---------- ----------- ----------- -----------
Increase (decrease) in cash and cash
equivalents..................................... (21) (7,987) 7,060 (948)
Cash and cash equivalents at beginning
of year......................................... 51 6,175 14,461 20,687
---------- ----------- ----------- -----------
Cash and cash equivalents at end of period......... $ 30 $ (1,812) $ 21,521 $ 19,739
========== =========== =========== ===========
</TABLE>
-14-
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
This Form 10-Q contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. The Company's actual results could differ materially from
those set forth in the forward-looking statements. Certain factors that might
cause such a difference include those discussed in the section entitled
"Management's Discussion and Analysis of Financial Condition and Results of
Operations - Forward-Looking Statements" contained in the Company's Form 10-K
for the year ended December 31, 1999.
Results of Operations
Net revenues for the three months ended September 30, 2000 were $353.4
million, which is 25 percent higher than the prior year level of $283.8 million.
Net revenues for the nine month period ended September 30, 2000 were $1,045.2
million or 58 percent higher than the prior year level of $660.7 million. The
increase for the third quarter is principally due to the acquisition of Krone AG
(Telecommunications Segment) in the third quarter of 1999. The increase for the
nine month period is primarily the result of the abovementioned Krone
acquisition and the acquisition of Noma Industries Limited (Manufacturing
Segment) as well as higher sales in the Performance Products Segment and the
remainder of the Manufacturing and Telecommunications Equipment Segments.
Gross profit for the three month period ended September 30, 2000 was
$100.0 million which was $26.8 million or 37 percent higher than the prior year
level. Gross profit for the nine month period ended September 30, 2000 was
$294.3 million or 76 percent higher than the prior year. These increases were
principally related to the abovementioned acquisitions. Gross profit as a
percentage of net revenues for the first nine months of 2000 was 28.2 percent
compared with 25.3 percent for the prior year principally due to the acquisition
of Krone, which has higher margins than the existing businesses.
Selling, general and administrative expense increased $17.5 million and
$72.7 million for the three and nine month periods ended September 30, 2000,
respectively, principally due to the abovementioned acquisition of Krone.
During the third quarter of 2000, the Company recorded a $5.8 million
charge for in-process research and development expense related to the Con-X
acquisition. The value assigned to purchased in-process research and development
was comprised of the following projects: Enterprise ($1,700), AMDF ($2,400) and
others ($1,700). The estimated fair value of these projects was determined by
employment of a discounted cash flow model. The net cash flows from such
projects were based on management's best estimates of revenue, cost of sales,
research and development costs, selling, general and administrative costs, and
income taxes from such projects. The estimated cash flows span a twelve year
period. These net cash flows were discounted back to their present value using a
risk adjusted discount rate of 60 percent. This discount rate is higher than
GenTek's weighted average cost of capital due to the inherent uncertainties
surrounding the successful completion of the purchased in-process technology,
the useful life of such technology, the profitability levels of such technology
and the uncertainty of the timing of product introduction and then existing
competing products. If these projects are not successfully developed, the value
of other intangible assets acquired may become impaired. Management believes
that the assumptions used in the valuation of purchased in-process technology
reasonably estimate the future benefits attributable to the purchased in-process
technology. No assurance can be given that actual results will not deviate from
those assumptions in future periods.
-15-
<PAGE>
Interest expense was $19.1 million and $55.5 million for the three and
nine month periods ended September 30, 2000 as compared with $14.2 million and
$28.7 million for the comparable periods of 1999, principally due to higher
outstanding debt balances related to the Company's acquisitions.
Other income for the nine month period ended September 30, 2000 was
$3.4 million as compared with $0.9 million for the comparable period for the
prior year. This increase is principally related to a $1.0 million gain on
disposition of a long term asset and higher foreign currency transaction gains.
Prior to its acquisition, Digital was a division of Prestolite, which
is an S-Corporation and, consequently, is not subject to federal income taxes.
The pro forma income tax provision that would have been reported by the Company
had Prestolite not been an S-Corporation prior to the acquisition, was $11,108
and $11,415 for the three months ended September 30, 1999 and 2000,
respectively, and $23,092 and $34,816 for the nine months ended September 30,
1999 and 2000 respectively.
On July 14, 2000 legislation was enacted in Germany reducing income tax
rates beginning January 1, 2001. Accordingly, during the third quarter of 2000
the Company recorded a $2.8 million charge to income tax expense reflecting the
revaluation of the deferred tax assets at the new lower effective tax rates.
Financial Condition, Liquidity and Capital Resources
Cash and cash equivalents were $19.7 million at September 30, 2000
compared with $20.7 million at December 31, 1999. During the first nine months
of 2000, the Company generated cash flow from operations of $61.8 million, had
net proceeds from long-term debt of $90.1 million and net proceeds from the sale
of stock and other long-term assets of $44.2 million which was used to make
acquisitions of $135.9 million and capital expenditures of $55.4 million.
The Company had working capital of $140.6 million at September 30, 2000
as compared with $121.3 million at December 31, 1999. This increase in working
capital principally reflects higher accounts receivable and inventory balances,
partially offset by higher accounts payable and accrued liabilities.
On August 9, 2000, the Company entered into an amendment to its credit
facility which added $250,000 of additional term loans. The Company used
approximately $90,000 of the proceeds to purchase the Digital Communications
Group of Prestolite Wire Corporation and the remainder to repay existing
borrowings under its revolving credit facility.
Other Matters
In June 2000, the FASB issued SFAS No. 138, "Accounting for Certain
Derivative Financial Instruments and Certain Hedging Activities - an amendment
of FASB Statement No. 133". This statement amends the accounting and reporting
standards of SFAS 133 for certain derivative instruments and for certain hedging
activities. The Company plans to adopt SFAS 133 and SFAS 138 in the first
quarter of fiscal 2001. The Company does not expect that the adoption of these
pronouncements will have a material effect on its Consolidated Financial
Statements.
-16-
<PAGE>
In December 1999, the Securities and Exchange Commission ("SEC") issued
Staff Accounting Bulletin No. 101 "Revenue Recognition in Financial Statements"
("SAB 101"). SAB 101 was issued to provide guidance in applying generally
accepted accounting principles to revenue recognition issues including
nonrefundable, up-front fees and the disclosure of judgements as to the
appropriateness of the principles relating to revenue recognition accounting
policies. The SEC has delayed the required implementation date of SAB 101 until
no later than the fourth fiscal quarter of 2000. The Company does not expect
that the implementation of SAB 101 will have a material effect on its
Consolidated Financial Statements.
-17-
<PAGE>
ITEM 3. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK
The Company's cash flows and earnings are subject to fluctuations
resulting from changes in interest rates and changes in foreign currency
exchange rates and the Company selectively uses financial instruments to manage
these risks. The Company's objective in managing its exposure to changes in
foreign currency exchange rates and interest rates is to reduce volatility on
earnings and cash flow associated with such changes. The Company has not
entered, and does not intend to enter, into financial instruments for
speculation or trading purposes.
The Company measures the market risk related to its holding of
financial instruments based on changes in interest rates and foreign currency
rates using a sensitivity analysis. The sensitivity analysis measures the
potential loss in fair values, cash flows and earnings based on a hypothetical
10 percent change in interest and currency exchange rates. The Company used
current market rates on its debt and derivative portfolio to perform the
sensitivity analysis. Such analysis indicates that a hypothetical 10 percent
change in interest rates or foreign currency exchange rates would not have a
material impact on the fair values, cash flows or earnings of the Company.
-18-
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
On September 7, 2000, the U.S. Environmental Protection Agency ("EPA")
issued to the Company an Initial Administrative Order (an "IAO") pursuant to
Section 3008 (h) of the Resource Conservation and Recovery Act ("RCRA"), which
requires that the Company conduct an environmental investigation of certain
portions of its North Claymont, Delaware facility (the "Facility") and, if
necessary, propose and implement corrective measures to address any historical
environmental contamination at the Facility. The Company is working
cooperatively with EPA and Honeywell Inc. (formerly AlliedSignal Inc.), prior
owner of the Facility and current owner of a plant adjacent to the Facility, to
implement the actions required under the IAO. The requirements of the IAO will
be performed over the course of the next several years. The Company believes
that its current accruals are sufficient to cover the anticipated costs of this
matter, and that it will not have a material adverse effect on the Company's
results of operation or financial condition.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
NONE
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
NONE
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
NONE
ITEM 5. OTHER INFORMATION
NONE
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
10.12 Credit Agreement, dated as of April 30,
1999, as amended and restated as of August
9, 2000, among the Company, Noma Company,
the several lenders from time to time
parties hereto, The Chase Manhattan Bank, as
Administrative Agent, The Bank of Nova
Scotia, as Syndication Agent, and Bankers
Trust Company as Documentation Agent.
27 Financial Data Schedule.
(b) The Company did not file any current reports on Form
8-K during the last quarter covered by this report.
-19-
<PAGE>
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.
GENTEK INC.
-------------------------------------------------
Registrant
Date November 14, 2000 /s/ Richard R. Russell
------------------ --------------------------------------------
RICHARD R. RUSSELL
President and Chief Executive Officer
(Principal Executive Officer) and Director
Date November 14, 2000 /s/ Stewart A. Fisher
------------------ ---------------------------------------------
STEWART A. FISHER
Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
-20-
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION PAGE
----------- ----------- ----
<S> <C> <C>
27 Financial Data Schedule................................. 22
</TABLE>
-21-
