<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q/A
AMENDMENT NO. 1
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
-------------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period ______________________ to ________________________
33-93970
(Commission File Number)
INTERNATIONAL WIRE GROUP, INC.
(Exact name of Registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation or organization)
43-1705942
(I.R.S. Employer Identification No.)
101 SOUTH HANLEY ROAD
ST. LOUIS, MO 63105
(314) 719-1000
(Address, including zip code, and telephone number, including
area code, of Registrant's principal executive offices)
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 [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:
Outstanding at
Class July 31, 1996
-------------- -------------
International Wire Group, Inc.
Common Stock 1,000
1
<PAGE> 2
INTERNATIONAL WIRE GROUP, INC.
INDEX
<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION PAGE
<S> <C>
International Wire Group, Inc.
Consolidated Balance Sheets as of June 30, 1996 and December 31, 1995 . . . . . . . 1
Consolidated Statements of Operations for the three and six months
ended June 30, 1996 and one month ended June 30, 1995 . . . . . . . . . . . . . . 2
Consolidated Statements of Cash Flows for the six months
ended June 30, 1996 and one month ended June 30, 1995 . . . . . . . . . . . . . . 3
Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . 4
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
</TABLE>
(i)
<PAGE> 3
INTERNATIONAL WIRE GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
-------------- --------------
(Unaudited)
ASSETS
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 2,836 $ --
Accounts receivable, less allowance of $1,076
and $860, respectively 80,758 47,180
Inventories 50,612 57,777
Prepaid expenses and other 3,614 2,858
--------- ----------
Total current assets 137,820 107,815
Property, plant and equipment, net 116,591 82,259
Deferred financing costs, net 21,609 16,688
Intangible assets, net 320,398 215,400
Other assets 6,866 5,758
--------- ----------
Total assets $ 603,284 $ 427,920
========= ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term obligations $ 21,973 $ 12,662
Accounts payable 36,070 37,627
Accrued and other liabilities 35,974 26,011
Income taxes payable 3,286 --
Accrued interest 3,677 2,516
--------- ----------
Total current liabilities 100,980 78,816
Long-term obligations, less current maturities 444,568 326,015
Deferred income taxes 8,194 8,194
Other long-term liabilities 6,194 4,897
--------- ----------
Total liabilities 559,936 417,922
Stockholders' equity:
Common stock, $.01 par value, 1,000 shares
authorized, issued and outstanding 0 0
Series A Senior Cumulative Exchangeable Redeemable
Preferred Stock, $.01 par value, 400,000 shares
authorized, issued and outstanding 4 --
Contributed capital 125,113 81,051
Carryover of predecessor basis (67,762) (67,762)
Accumulated deficit (14,007) (3,291)
--------- ----------
Total stockholders' equity 43,348 9,998
--------- ----------
Total liabilities and stockholders' equity $ 603,284 $ 427,920
========= ==========
</TABLE>
See accompanying notes to the consolidated financial statements
1
<PAGE> 4
INTERNATIONAL WIRE GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
Three Months Six Months One Month
Ended Ended Ended
June 30, June 30, June 30,
1996 1996 1995
---------------- --------------- --------------
<S> <C> <C> <C>
Net sales $ 147,309 $ 266,116 $ 36,263
Operating expenses:
Cost of goods sold 114,493 207,968 29,275
Selling, general and
administrative 10,857 20,578 2,537
Depreciation and amortization 6,902 12,946 1,474
Inventory valuation adjustment 6,500 8,500 --
Expenses related to plant
closings -- 4,000 1,750
---------------- --------------- --------------
Operating income (loss) 8,557 12,124 1,227
Other income (expense):
Interest expense (11,011) (20,583) (2,779)
Amortization of deferred
financing costs (1,091) (1,814) (245)
Other, net 43 132 (183)
---------------- --------------- --------------
-- --
Loss before income tax provision (3,502) (10,141) (1,980)
Income tax provision (benefit) 320 575 (70)
---------------- --------------- --------------
Net loss $ (3,822) $ (10,716) $ (1,910)
================ =============== ==============
</TABLE>
See accompanying notes to the consolidated financial statements
2
<PAGE> 5
INTERNATIONAL WIRE GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months One Month
Ended Ended
June 30, June 30,
1996 1995
---------------- ---------------
<S> <C> <C>
Cash flows provided by (used in) operating activities:
Net loss $ (10,716) $ (1,910)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation and amortization 12,946 1,474
Amortization of deferred financing costs 1,814 245
Inventory valuation adjustment 8,500 --
Change in assets and liabilities, net of acquisitions:
Accounts receivable (11,380) 1,599
Inventories 5,541 (3,056)
Prepaid expenses and other (2,751) (265)
Accounts payable (8,546) 1,772
Accrued and other liabilities 3,111 4,521
Accrued interest 1,161 1,676
Income taxes payable/refundable 4,001 171
Other long-term liabilities (203) (33)
---------------- -------------
Net cash from operating activities 3,478 6,194
---------------- -------------
Cash flows provided by (used in) investing activities:
Acquisitions, net of cash (160,259) (341,046)
Capital expenditures, net (5,486) (707)
---------------- -------------
Net cash from investing activities (165,745) (341,753)
---------------- -------------
Cash flows provided by (used in) financing activities:
Equity proceeds 45,039 15,188
Proceeds from issuance of long-term obligations 128,200 337,500
Repayment of long-term obligations (336) (3,009)
Financing fees and other (7,800) (14,000)
---------------- -------------
Net cash from financing activities 165,103 335,679
---------------- -------------
Net change in cash and cash equivalents 2,836 120
Cash and cash equivalents at beginning of the period 0 0
---------------- -------------
Cash and cash equivalents at end of the period $ 2,836 $ 120
================ =============
</TABLE>
See accompanying notes to the consolidated financial statements
3
<PAGE> 6
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
1. THE COMPANY
International Wire Group, Inc. ("Group" or the "Company"), a Delaware
corporation, was formed to participate in the transactions
contemplated by the IW Acquisition (as described below). On June 12,
1995, Wirekraft Holdings Corp. ("Wirekraft"), Omega Wire Corp.
("Omega"), International Wire Holding Company ("Holding", the parent
company of Group), Group, Wirekraft Acquisition Company and certain
shareholders of Wirekraft and Omega entered into a series of
acquisitions and mergers (the "IW Acquisition") pursuant to which
Group acquired all of the common equity securities (and all securities
convertible into such securities) of Wirekraft and all of the common
equity securities of Omega. On March 5, 1996, Wire Technologies, Inc.
("Wire Technologies"), a wholly-owned subsidiary of the Company,
acquired the businesses of Hoosier Wire, Inc., Dekko Automotive Wire,
Inc., Albion Wire, Inc. and Silicones, Inc., a group of affiliated
companies operating together under the tradename Dekko Wire Technology
Group (the "DWT Acquisition").
The Company through its two segments, the Wire segment and the Harness
segment, is engaged in the design, manufacture and marketing of
non-insulated and insulated copper wire and wire harnesses. The
Company's products are used by a wide variety of customers primarily
in the automotive, appliance, computer and data communications and
industrial equipment industries.
2. BASIS OF PRESENTATION
Unaudited Interim Consolidated Financial Statements
The unaudited interim consolidated financial statements reflect all
adjustments consisting only of normal recurring adjustments which are,
in the opinion of management, necessary for a fair presentation of
financial position and results of operations. The results for the
three and six months ended June 30, 1996, are not necessarily
indicative of the results that may be expected for a full fiscal year.
Senior Subordinated Notes
The Senior Subordinated Notes due 2005 ("the Senior Notes") were
issued under an indenture, dated June 12, 1995 (the "Indenture") in
connection with the IW Acquisition. The Senior Notes represent
unsecured general obligations of Group and are subordinated to all
Senior Debt (as defined in the Indenture) of Group. The Senior Notes,
which were originally sold pursuant to an exemption from the
registration requirements of the Securities Act of 1933, as amended,
were exchanged for identical notes registered under such Act in
November, 1995.
The Senior Notes are fully and unconditionally (as well as jointly and
severally) guaranteed on an unsecured, senior subordinated basis by
each subsidiary of the Company (the "Guarantor Subsidiaries") other
than Electro Componentes de Mexico, S.A. de C.V. and Wirekraft
Industries de Mexico, S.A. de C.V. (The "Non-Guarantor Subsidiaries").
Each of the Guarantor Subsidiaries and Non-Guarantor Subsidiaries is
wholly owned by the Company.
4
<PAGE> 7
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Statement of Cash Flows
Interest paid and taxes refunded, net of payments, for the six months
ended June 30, 1996 were $19,422 and $3,426, respectively.
3. INVENTORIES
Inventories are valued at the lower of cost or market. Cost is
determined using the last-in, first-out ("LIFO") method. As a result
of a decline in copper prices from the period March 31, 1996 to June
30, 1996 the Company wrote down the copper valuation in inventory, the
effect of which increased the loss before income tax provision by
approximately $6,500.
The composition of inventories at June 30, 1996, is as follows:
<TABLE>
<S> <C>
Raw materials $ 19,684
Work-in-process 12,997
Finished goods 17,931
------------
Total $ 50,612
============
</TABLE>
4. INTANGIBLE ASSETS
The Company's management has begun a comprehensive review of the
strategic position of its individual business units. This analysis
included the closing of certain Wirekraft facilities and the recent
DWT Acquisition. As a result, the Company is assessing the carrying
value of goodwill. While the Company has not yet completed this
assessment, a possible outcome may be a write-off of a portion of the
goodwill presently carried on its books. The Company expects to
conclude on this matter in the near term, but not later than the
filing of its Form 10-K for the current fiscal year.
5. DWT ACQUISITION
The results of operations of Wire Technologies have been included in
the consolidated financial statements since the date of the DWT
Acquisition. Pro forma data, which show condensed results of
operations for the six months ended June 30, 1996 and 1995 as though
the DWT Acquisition and related financing had occurred at the
beginning of the respective periods, is as follows:
<TABLE>
<CAPTION>
Six Months Ended
June 30,
1996 1995(1)
-------------- --------------
<S> <C> <C>
Net sales $ 293,964 $ 317,072
Net income (loss) (10,368) (2,772)
</TABLE>
- -----------------
(1) Data gives effect to the IW Acquisition as though it occurred
as of January 1, 1995.
5
<PAGE> 8
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
6. PLANT CLOSING EXPENSE
In March 1996, the Company recorded a pretax charge to operations of
$4,000 to provide for plant closing costs. The plant closing costs include
provisions for certain shut-down, commitment costs for leased equipment and
facilities and severance related costs. A summary of activity related to
plant closing is as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED ONE MONTH ENDED
JUNE 30, 1996 JUNE 30, 1995
---------------- ---------------
<S> <C>
Balance, beginning of period................................ $ 700 $ --
Charges to operations:
Facility shut-down costs.................................. 2,500 731
Lease commitments......................................... 570 67
Key personnel and severance costs......................... 930 952
------ -------
4,000 1,750
Costs incurred:
Facility shut-down costs.................................. (202) --
Lease commitments......................................... -- --
Key personnel and severance costs......................... -- --
------ -------
(202) --
------ -------
Balance, end of period...................................... $4,498 $ 1,750
====== =======
</TABLE>
7. RESTATEMENT OF FINANCIAL INFORMATION
The Company has restated its previously issued financial statements for the
one month ended June 30, 1995 to reflect certain adjustments. These
adjustments relate primarily to the recognition of certain costs
associated with plant closings.
The impact of these adjustments on the Company's financial results as
originally reported is summarized below:
<TABLE>
<CAPTION>
FOR THE ONE MONTH ENDING
JUNE 30, 1995
--------------------------
AS REPORTED AS RESTATED
------------ -----------
(AMOUNTS IN THOUSANDS)
<S> <C> <C>
Income (loss) before income taxes . . . . . . . $ (30) $ (1,980)
Net income (loss) . . . . . . . . . . . . . . . $ 40 $ (1,910)
Retained earnings (deficit) . . . . . . . . . . $ 40 $ (1,910)
</TABLE>
These adjustments are reflected in the Company's accompanying consolidated
statements of operations.
6
<PAGE> 9
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
8. GUARANTOR SUBSIDIARIES
The Senior Notes are fully and unconditionally (as well as jointly and
severally) guaranteed on an unsecured, senior subordinated basis by each
subsidiary of the Company (the "Guarantor Subsidiaries") other than Electro
Componentes de Mexico, S.A. de C.V. and Wirekraft Industries de Mexico, S.A. de
C.V. (the "Non-Guarantor Subsidiaries"). Each of the Guarantor Subsidiaries and
Non-Guarantor Subsidiaries is wholly owned by the Company.
The following condensed, consolidating financial statements of the Company
include the accounts of the Company, the combined accounts of the Guarantor
Subsidiaries and the combined accounts of the Non-Guarantor Subsidiaries. Given
the size of the Non-Guarantor Subsidiaries relative to the Company on a
consolidated basis, separate financial statements of the respective Guarantor
Subsidiaries are not presented because management has determined that such
information is not material in assessing the Guarantor Subsidiaries.
7
<PAGE> 10
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
TOTAL TOTAL
COMPANY GUARANTOR NON-GUARANTOR ELIMINATIONS TOTAL
--------- --------- ------------- ------------ ---------
<S> <C> <C> <C> <C> <C>
BALANCE SHEET
As of June 30, 1996
ASSETS
Cash ...................................... $ -- $ 2,694 $ 142 $ -- $ 2,836
Accounts receivable........................ -- 78,037 6,412 (3,691) 80,758
Inventory ................................. -- 50,433 179 -- 50,612
Other assets .............................. -- 3,590 24 -- 3,614
---------- ---------- --------- ----------- ---------
Total current assets .................... -- 134,754 6,757 (3,691) 137,820
Property, plant and equipment, net ........ -- 107,901 8,690 -- 116,591
Intangible assets, net .................... 21,609 320,398 -- -- 342,007
Investment in subsidiaries ................ 593,332 -- -- (593,332) --
Other assets .............................. -- 5,939 927 -- 6,866
---------- ---------- --------- ----------- ---------
Total assets ............................ $ 614,941 $ 568,992 $ 16,374 $ (597,023) $ 603,284
========== =========== ========== ============ ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities ........................ $ 24,746 $ 77,479 $ 2,446 $ (3,691) $ 100,980
Long-term obligations, less current
maturities ............................... 439,832 4,736 -- -- 444,568
Other long-term liabilities ................ -- 14,388 -- 14,388
Intercompany (receivable) payable .......... 39,257 (52,603) 13,346 -- --
---------- ---------- --------- ----------- ---------
Total liabilities ....................... 503,835 44,000 15,792 (3,691) 559,936
Stockholders' equity
Common Stock ............................... -- -- -- -- --
Preferred stock ............................ -- 4 -- -- 4
Contributed capital......................... 125,113 572,012 18 (572,030) 125,113
Predecessor basis .......................... -- (67,762) -- -- (67,762)
Retained earnings........................... (14,007) 20,738 564 (21,302) (14,007)
---------- ---------- --------- ----------- ---------
Total stockholders' equity .............. 111,106 524,992 582 (593,332) 43,348
---------- ---------- --------- ----------- ---------
Total liabilities and
stockholders' equity .................. $ 614,941 $ 568,992 $ 16,374 $ (597,023) $ 603,284
========== ========== ========= =========== =========
</TABLE>
8
<PAGE> 11
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
TOTAL TOTAL
COMPANY GUARANTOR NON-GUARANTOR ELIMINATIONS TOTAL
--------- --------- ------------- ------------ -----
<S> <C> <C> <C> <C> <C>
STATEMENT OF OPERATIONS
For the three months ended June 30,
1996
Net sales ................................ $ -- $ 147,309 $ 8,453 $ (8,453) $ 147,309
Operating expenses:
Cost of goods sold .................... -- 118,176 4,770 (8,453) 114,493
Selling, general and administrative ... -- 8,258 2,599 -- 10,857
Depreciation and amortization ......... -- 6,465 437 -- 6,902
Inventory valuation adjustment ........ -- 6,500 -- -- 6,500
--------- ---------- --------- ----------- ----------
Operating income (loss) .................. -- 7,910 647 -- 8,557
Other income (expense) ...................
Interest expense ...................... (11,011) -- -- -- (11,011)
Amortization of deferred financing
costs ............................... (1,091) -- -- -- (1,091)
Equity in net income (loss) of
subsidiaries ........................ 8,280 -- -- (8,280) --
Other ................................. -- 43 -- -- 43
--------- ---------- --------- ----------- ----------
Income (loss) before income tax
provision ........................... (3,822) 7,953 647 (8,280) (3,502)
Income tax provision ..................... -- 309 11 -- 320
--------- ---------- --------- ----------- -----------
Net income (loss) ........................ $ (3,822) $ 7,644 $ 636 $ (8,280) $ (3,822)
========= ========== ========== =========== ===========
</TABLE>
9
<PAGE> 12
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
TOTAL TOTAL
COMPANY GUARANTOR NON-GUARANTOR ELIMINATIONS TOTAL
--------- --------- ------------- ------------ -------
<S> <C> <C> <C> <C> <C>
STATEMENT OF OPERATIONS
For the six months ended June 30, 1996
Net sales................................ $ -- $266,116 $16,096 $(16,096) $ 266,116
Operating expenses
Cost of goods sold .................. -- 215,573 8,491 (16,096) 207,968
Selling, general and administrative.. -- 15,491 5,087 -- 20,578
Depreciation and amortization ....... -- 12,200 746 -- 12,946
Inventory valuation adjustment ...... -- 8,500 -- -- 8,500
Expenses related to plant closings... -- 4,000 -- -- 4,000
-------- -------- ------- -------- ---------
Operating income (loss).................. -- 10,352 1,772 -- 12,124
Other income (expense)...................
Interest expense..................... (20,583) -- -- -- (20,583)
Amortization of deferred financing
costs.............................. (1,814) -- -- -- (1,814)
Equity in net income (loss) of
subsidiaries....................... 11,681 -- -- (11,681) --
Other ............................... -- 132 -- -- 132
-------- -------- ------- -------- ---------
Income (loss) before income tax
provision ......................... (10,716) 10,484 1,772 (11,681) (10,141)
Income tax provision .................... -- 409 166 -- 575
-------- -------- ------- -------- ---------
Net income (loss)........................ $(10,716) $ 10,075 $ 1,606 $(11,681) $ (10,716)
======== ======== ======= ======== =========
</TABLE>
10
<PAGE> 13
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
TOTAL TOTAL
COMPANY GUARANTOR NON-GUARANTOR ELIMINATIONS TOTAL
------- --------- ------------- ------------ -----
<S> <C> <C> <C> <C> <C>
STATEMENT OF CASH FLOWS
For the six months ended June 30, 1996
Net cash from operating activities................. $ (5,069) $ 6,627 $ 1,920 $ -- $ 3,478
----------- ------------ --------- ------- -----------
Cash flows provided by (used in)
investing activities:
Acquisition, net of cash......................... (160,259) -- -- -- (160,259)
Capital expenditures............................. -- (3,679) (1,807) -- (5,486)
----------- ------------ --------- ------- -----------
Net cash used in investing activities.............. (160,259) (3,679) (1,807) -- (165,745)
----------- ------------ --------- ------- -----------
Cash flows provided by (used in)
financing activities:
Equity proceeds.................................. 45,039 -- -- -- 45,039
Proceeds from issuance of long-term
obligations................................... 128,200 -- -- -- 128,200
Repayment of long-term obligations............... (111) (225) -- -- (336)
Financing fees and other......................... (7,800) -- -- (7,800)
----------- ------------ --------- ------- -----------
Net cash from financing activities................. 165,328 (225) -- -- 165,103
----------- ------------ --------- ------- -----------
Net change in cash................................. $ -- $ 2,723 $ 113 $ -- $ 2,836
=========== ============ ========= ======= ===========
</TABLE>
11
<PAGE> 14
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
TOTAL TOTAL
COMPANY GUARANTOR NON-GUARANTOR ELIMINATIONS TOTAL
--------- --------- ------------- ------------ ---------
<S> <C> <C> <C> <C> <C>
BALANCE SHEET
As of December 31, 1995
ASSETS
Cash............................ $ -- $ (29) $ 29 $ -- $ --
Accounts receivable............. -- 46,945 1,012 (777) 47,180
Inventory....................... -- 57,777 -- -- 57,777
Other assets.................... -- 2,858 -- -- 2,858
--------- -------- ------- --------- ---------
Total current assets.... -- 107,551 1,041 (777) 107,815
Property plant and equipment,
net.......................... -- 74,630 7,629 -- 82,259
Intangible assets, net.......... 16,688 215,400 -- -- 232,088
Investment in subsidiaries...... 416,212 -- -- (416,212) --
Other assets.................... -- 5,565 193 -- 5,758
--------- -------- ------- --------- ---------
Total assets............ $ 432,900 $403,146 $ 8,863 $(416,989) $ 427,920
========= ======== ======= ========= =========
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities............. $ 15,815 $ 62,537 $ 1,241 $ (777) $ 78,816
Long term obligations, less
current maturities........... 321,001 5,014 -- -- 326,015
Other long-term liabilities..... (3,615) 16,706 -- -- 13,091
Intercompany (receivable)
payable...................... 21,939 (30,585) 8,646 -- --
--------- -------- ------- --------- ---------
Total liabilities....... 355,140 53,672 9,887 (777) 417,922
Stockholder's equity
Common stock................. -- -- -- -- --
Contributed capital.......... 81,051 406,573 18 (406,591) 81,051
Predecessor carryover........ -- (67,762) -- -- (67,762)
Retained earnings............ (3,291) 10,663 (1,042) (9,621) (3,291)
--------- -------- ------- --------- ---------
Total stockholder's
equity................ 77,760 349,474 (1,024) (416,212) 9,998
--------- -------- ------- --------- ---------
Total liabilities and
stockholder's
equity................ $ 432,900 $403,146 $ 8,863 $(416,989) $ 427,920
========= ======== ======= ========= =========
</TABLE>
12
<PAGE> 15
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
TOTAL TOTAL
COMPANY GUARANTOR NON-GUARANTOR ELIMINATIONS TOTAL
--------- --------- ------------- ------------ -------
<S> <C> <C> <C> <C> <C>
STATEMENT OF OPERATIONS
For the one month ended June 30, 1995
Net sales................................ $ -- $ 36,263 $ 702 $ (702) $ 36,263
Operating expenses
Cost of goods sold .................. -- 29,466 511 (702) 29,275
Selling, general and administrative.. -- 1,959 578 -- 2,537
Depreciation and amortization ....... -- 1,239 235 -- 1,474
Expenses related to plant closings... -- 1,750 -- -- 1,750
-------- -------- ------- -------- --------
Operating income (loss).................. -- 1,849 (622) -- 1,227
Other income (expense)...................
Interest expense..................... (2,779) -- -- -- (2,779)
Amortization of deferred financing
costs.............................. (245) -- -- -- (245)
Equity in net income (loss) of
subsidiaries....................... 1,114 -- -- (1,114) --
Other ............................... -- (183) -- -- (183)
-------- -------- ------- -------- --------
Income (loss) before income tax
provision ......................... (1,910) 1,666 (622) (1,114) (1,980)
Income tax provision .................... -- -- (70) -- (70)
-------- -------- ------- -------- --------
Net income (loss)........................ $ (1,910) $ 1,666 $ (552) $ (1,114) $ (1,910)
======== ======== ======= ======== ========
</TABLE>
13
<PAGE> 16
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
TOTAL TOTAL
COMPANY GUARANTOR NON-GUARANTOR ELIMINATIONS TOTAL
------- --------- ------------- ------------ -----
<S> <C> <C> <C> <C> <C>
STATEMENT OF CASH FLOWS
For the one month ended June 30, 1995
Net cash from operating activities................. $ 5,367 $ 618 $ 209 $ -- $ 6,194
----------- ------------ --------- ------- -----------
Cash flows provided by (used in)
investing activities:
Acquisition, net of cash......................... (341,046) -- -- -- (341,046)
Capital expenditures............................. -- (367) (340) -- (707)
----------- ------------ --------- ------- -----------
Net cash used in investing activities.............. (341,046) (367) (340) -- (341,753)
----------- ------------ --------- ------- -----------
Cash flows provided by (used in)
financing activities:
Equity proceeds.................................. 15,188 -- -- -- 15,188
Proceeds from issuance of long-term
obligations................................... 337,500 -- -- -- 337,500
Repayment of long-term obligations............... (3,009) -- -- (3,009)
Financing fees and other......................... (14,000) -- -- (14,000)
----------- ------------ --------- ------- -----------
Net cash from financing activities................. 335,679 -- -- 335,679
----------- ------------ --------- ------- -----------
Net change in cash................................. $ -- $ 251 $ (131) $ -- $ 120
=========== ============ ========= ======= ===========
</TABLE>
14
<PAGE> 17
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
INTERNATIONAL WIRE GROUP, INC.
Dated: November 7, 1997 By : /s/ DAVID M. SINDELAR
---------------------
Name : David M. Sindelar
Title : Senior Vice President
15
