<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 September 30, 1996
----------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from 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:
<TABLE>
<CAPTION>
Outstanding at
Class October 31, 1996
- ------------------------------------------- ----------------
<S> <C>
International Wire Group, Inc.
Common Stock 1,000
</TABLE>
1
<PAGE> 2
INTERNATIONAL WIRE GROUP, INC.
INDEX
<TABLE>
<S> <C>
PART I - FINANCIAL INFORMATION Page
----
International Wire Group, Inc.
Consolidated Balance Sheets as of September 30, 1996 and December 31, 1995.......................... 3
Consolidated Statements of Operations for the three and nine months ended
September 30, 1996 and three and four months ended September 30, 1995............................ 4
Consolidated Statements of Cash Flows for the nine months ended
September 30, 1996 and four months ended September 30, 1995...................................... 5
Notes to Consolidated Financial Statements.......................................................... 6
Signatures............................................................................................ 18
</TABLE>
2
<PAGE> 3
INTERNATIONAL WIRE GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
September 30, December 31,
1996 1995
-------------------------------------
ASSETS (Unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ -- $ --
Accounts receivable, less allowance of $ 1,151
and $860, respectively 76,100 47,180
Inventories 43,854 57,777
Prepaid expenses and other 2,746 2,858
--------------- ----------------
Total current assets 122,700 107,815
Property, plant and equipment, net 115,446 82,259
Deferred financing costs, net 20,660 16,688
Intangible assets, net 318,175 215,400
Other assets 7,176 5,758
--------------- ----------------
Total assets $ 584,157 $ 427,920
=============== ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term obligations $ 20,230 $ 12,662
Accounts payable 32,847 37,627
Accrued and other liabilities 35,066 26,011
Income taxes payable 3,782 --
Accrued interest 7,869 2,516
--------------- ----------------
Total current liabilities 99,794 78,816
Long-term obligations, less current maturities 426,512 326,015
Deferred income taxes 8,194 8,194
Other long-term liabilities 5,969 4,897
--------------- ----------------
Total liabilities 540,469 417,922
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 125,227 81,051
Carryover of predecessor basis (67,762) (67,762)
Accumulated deficit (13,781) (3,291)
--------------- ----------------
Total stockholders' equity 43,688 9,998
--------------- ----------------
Total liabilities and stockholders' equity $ 584,157 $ 427,920
=============== ================
</TABLE>
See accompanying notes to the consolidated financial statements.
3
<PAGE> 4
INTERNATIONAL WIRE GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Three Months Nine Months Four Months
Ended Ended Ended Ended
September 30, September 30, September 30, September 30,
1996 1995 1996 1995
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
Net sales . . . . . . . . . . . . . $ 133,496 $ 105,301 $ 399,612 $ 141,564
Operating expenses:
Cost of goods sold . . . . . . . 101,510 83,562 309,478 112,837
Selling, general and
administrative . . . . . . . . 10,485 8,433 31,063 10,970
Depreciation and amortization . . 6,987 4,423 19,933 5,897
Inventory valuation adjustment . -- -- 8,500 -
-
Expenses related to plant
closings . . . . . . . . . . . 2,000 -- 6,000 1,750
---------- --------- ----------- ---------
Operating income . . . . . . . . . 12,514 8,883 24,638 10,110
Other income (expense):
Interest expense . . . . . . . . (11,168) (8,285) (31,751) (11,064)
Amortization of deferred
financing costs . . . . . . . . (948) (619) (2,762) (864)
Other, net . . . . . . . . . . . 30 10 162 (173)
---------- --------- ----------- ---------
Income (loss) before income tax
provision . . . . . . . . . . . 428 (11) (9,713) (1,991)
Income tax provision . . . . . . . 202 1,341 777 1,271
---------- --------- ----------- ---------
Net income (loss) . . . . . . . . . $ 226 $ (1,352) $ (10,490) $ (3,262)
========== ========= =========== =========
</TABLE>
See accompanying notes to the consolidated financial statements
4
<PAGE> 5
INTERNATIONAL WIRE GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Four Months
Ended Ended
September 30, September 30,
1996 1995
-----------------------------------
<S> <C> <C>
Cash flows provided by (used in) operating
activities:
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (10,490) $ (3,262)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation and amortization . . . . . . . . . . . . . . . . 19,933 5,897
Amortization of deferred financing costs . . . . . . . . . . 2,762 864
Inventory valuation adjustment . . . . . . . . . . . . . . . 8,500 --
Change in assets and liabilities, net of acquisitions:
Accounts receivable . . . . . . . . . . . . . . . . . . . . (6,722) (3,802)
Inventories . . . . . . . . . . . . . . . . . . . . . . . . 12,299 (3,773)
Prepaid expenses and other . . . . . . . . . . . . . . . . (2,742) (724)
Accounts payable . . . . . . . . . . . . . . . . . . . . . (11,769) 3,955
Accrued and other liabilities . . . . . . . . . . . . . . . 2,203 1,175
Accrued interest . . . . . . . . . . . . . . . . . . . . . 5,353 6,218
Income taxes payable/refundable . . . . . . . . . . . . . . 4,497 554
Other long-term liabilities . . . . . . . . . . . . . . . . (428) (12)
--------------- ---------------
Net cash from operating activities . . . . . . . . . . . . . . . 23,396 7,090
--------------- ---------------
Cash flows provided by (used in) investing activities:
Acquisitions, net of cash . . . . . . . . . . . . . . . . . . . (160,259) (341,046)
Capital expenditures . . . . . . . . . . . . . . . . . . . . . (8,441) (3,204)
--------------- ---------------
Net cash from investing activities . . . . . . . . . . . . . . . (168,700) (344,250)
--------------- ---------------
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 . . . . . . . . . . . . . . (20,135) (2,577)
Financing fees and other . . . . . . . . . . . . . . . . . . . (7,800) (14,000)
--------------- ---------------
Net cash from financing activities . . . . . . . . . . . . . . . 145,304 336,111
--------------- ---------------
Net change in cash and cash equivalents . . . . . . . . . . . . . -- (1,049)
Cash and cash equivalents at beginning of the period . . . . . . -- --
--------------- ---------------
Cash and cash equivalents at end of the period . . . . . . . . . $ -- $ (1,049)
=============== ===============
</TABLE>
See accompanying notes to the consolidated financial statements
5
<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 nine months ended September 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.
6
<PAGE> 7
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
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.
Statement of Cash Flows
Interest paid and taxes refunded, net of payments, for the nine months
ended September 30, 1996 were $26,398 and $2,720, respectively.
3. Inventories
Inventories are valued at the lower of cost or market. Cost is
determined using the last-in, first-out ("LIFO") method.
The composition of inventories at September 30, 1996, is as follows:
<TABLE>
<S> <C>
Raw materials. . . . . . . . . . . . . . . $ 17,803
Work-in-process. . . . . . . . . . . . . . 12,304
Finished goods . . . . . . . . . . . . . . 13,747
----------
Total. . . . . . . . . . . . . . . . . . . $ 43,854
==========
</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 before 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 nine months ended September 30, 1996 and 1995 as
though the DWT Acquisition and related financing had occurred at the
beginning of the respective periods, is as follows:
7
<PAGE> 8
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
--------------------------
1996 1995 (1)
-------------------------
<S> <C> <C>
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 427,460 $ 453,219
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . (11,240) (2,454)
</TABLE>
(1) Data gives effect to the IW Acquisition as though it occurred as
of January 1, 1995.
6. Plant Closing Expense
In March and September, 1996, the Company recorded pretax charges to
operations of $4,000 and $2,000, respectively, to provide for plant
closing costs. The plant closing costs relate to consolidating certain
wire segment facilities and include provisions for certain shut-down
and severance related costs. A summary of activity related to plant
closing is as follows:
<TABLE>
<CAPTION>
NINE MONTHS FOUR MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
1996 1995
------------ ------------
<S> <C> <C>
Balance, beginning of period............................... $ 700 $ --
Charges to operations:
Facility shut-down costs................................. 3,872 731
Lease commitments........................................ 773 67
Key personnel and severance costs........................ 1,355 952
------- ------
6,000 1,750
Costs incurred:
Facility shut-down costs................................. (1,514) (254)
Lease commitments........................................ (67) (33)
Key personnel and severance costs........................ (783) (508)
------- ------
(2,364) (795)
------- ------
Balance, end of period..................................... $ 4,336 $ 955
======= ======
</TABLE>
8
<PAGE> 9
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
7. 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.
9
<PAGE> 10
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
TOTAL
TOTAL NON
COMPANY GUARANTOR GUARANTOR ELIMINATIONS TOTAL
------- --------- --------- ------------ -----
<S> <C> <C> <C> <C> <C>
BALANCE SHEET
As of September 30, 1996
ASSETS
Cash . . . . . . . . . . . . . . . . . . . . . $ -- $ (632) $ 632 $ -- $ --
Accounts receivable . . . . . . . . . . . . . -- 73,881 5,720 (3,501) 76,100
Inventory . . . . . . . . . . . . . . . . . . -- 43,719 135 -- 43,854
Other assets . . . . . . . . . . . . . . . . . -- 2,724 22 -- 2,746
--------- --------- --------- ----------- ---------
Total current assets . . . . . . . . . . . . -- 119,692 6,509 (3,501) 122,700
Property plant and equipment, net . . . . . . . -- 106,564 8,882 -- 115,446
Intangible assets, net . . . . . . . . . . . . . 20,660 318,175 -- -- 338,835
Investment in subsidiaries . . . . . . . . . . . 605,674 -- -- (605,674) --
Other assets . . . . . . . . . . . . . . . . . . -- 6,153 1,023 -- 7,176
--------- --------- --------- ----------- ---------
Total assets . . . . . . . . . . . . . . . . $ 626,334 $ 550,584 $ 16,414 $ (609,175) $ 584,157
========= ========= ========= =========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities . . . . . . . . . . . . . $ 27,165 $ 73,764 $ 2,366 $ (3,501) $ 99,794
Long-term obligations,less current
maturities . . . . . . . . . . . . . . . . . 422,022 4,490 -- -- 426,512
Other long-term liabilities . . . . . . . . . -- 14,163 -- -- 14,163
Intercompany (receivable) payable . . . . . . 76,735 (90,170) 13,435 -- --
--------- --------- --------- ----------- ---------
Total liabilities . . . . . . . . . . . . . 525,922 2,247 15,801 (3,501) 540,469
Stockholders' equity
Common stock . . . . . . . . . . . . . . . . . -- -- -- -- --
Preferred stock . . . . . . . . . . . . . . . -- 4 -- -- 4
Contributed capital . . . . . . . . . . . . . 114,193 583,046 18 (572,030) 125,227
Predecessor carryover . . . . . . . . . . . . -- (67,762) -- -- (67,762)
Retained earnings . . . . . . . . . . . . . . (13,781) 33,049 595 (33,644) (13,781)
--------- --------- --------- ----------- ---------
Total stockholders' equity . . . . . . . . . 100,412 548,337 613 (605,674) 43,688
--------- --------- --------- ----------- ---------
Total liabilities and stockholders'
equity . . . . . . . . . . . . . . . . . . $ 626,334 $ 550,584 $ 16,414 $ (609,175) $ 584,157
========= ========= ========= =========== =========
</TABLE>
10
<PAGE> 11
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
TOTAL
TOTAL NON
COMPANY GUARANTOR GUARANTOR ELIMINATIONS TOTAL
--------- --------- --------- ------------ -----
<S> <C> <C> <C> <C> <C>
STATEMENT OF OPERATIONS
For the three months ended September 30, 1996
Net sales . . . . . . . . . . . . . . . . . . . $ -- $133,496 $7,633 $ (7,633) $ 133,496
Operating expenses . . . . . . . . . . . . . . .
Cost of goods sold . . . . . . . . . . . . . . -- 104,675 4,468 (7,633) 101,510
Selling, general and administration . . . . . -- 7,886 2,599 -- 10,485
Depreciation and amortization . . . . . . . . -- 6,556 431 -- 6,987
Expenses related to plant closing . . . . . . -- 2,000 -- -- 2,000
--------- -------- ------ --------- ---------
Operating income (loss) . . . . . . . . . . . . -- 12,379 135 -- 12,514
Other income (expense)
Interest expense . . . . . . . . . . . . . . . (11,168) -- -- -- (11,168)
Amortization of deferred financing fees . . . (948) -- -- -- (948)
Equity in net income (loss) of subsidiaries. . 12,342 -- -- (12,342) --
Other. . . . . . . . . . . . . . . . . . . . . -- 30 -- -- 30
--------- -------- ------ --------- ---------
Income (loss) before income tax provision . . . 226 12,409 135 (12,342) 428
Income tax provision . . . . . . . . . . . . . . -- 98 104 -- 202
--------- -------- ------ --------- ---------
Net income (loss) . . . . . . . . . . . . . . . $ 226 $ 12,311 $ 31 $ (12,342) $ 226
========= ======== ====== ========= =========
</TABLE>
11
<PAGE> 12
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
TOTAL
TOTAL NON
COMPANY GUARANTOR GUARANTOR ELIMINATIONS TOTAL
--------- --------- --------- ------------ -----
<S> <C> <C> <C> <C> <C>
STATEMENT OF OPERATIONS
For the nine months ended September 30, 1996
Net sales . . . . . . . . . . . . . . . . . . . $ -- $399,612 $23,729 $ (23,729) $ 399,612
Operating expenses
Cost of goods sold . . . . . . . . . . . . . -- 320,248 12,959 (23,729) 309,478
Selling, general and administration . . . . . -- 23,377 7,686 -- 31,063
Depreciation and amortization . . . . . . . . -- 18,756 1,177 -- 19,933
Expenses related to plant closing . . . . . . -- 6,000 -- -- 6,000
Inventory valuation adjustment . . . . . . . -- 8,500 -- -- 8,500
-------- -------- ------- ---------- ----------
Operating income (loss) . . . . . . . . . . . . -- 22,731 1,907 -- 24,638
Other income (expense)
Interest expense . . . . . . . . . . . . . . (31,751) -- -- -- (31,751)
Amortization of deferred financing fees . . . (2,762) -- -- -- (2,762)
Equity in net income (loss) of subsidiaries . 24,023 -- -- (24,023) --
Other . . . . . . . . . . . . . . . . . . . . -- 162 -- -- 162
--------- -------- ------- ---------- ----------
Income (loss) before income tax provision . . . (10,490) 22,893 1,907 (24,023) (9,713)
Income tax provision . . . . . . . . . . . . . -- 507 270 -- 777
--------- -------- ------- ---------- ----------
Net income (loss) . . . . . . . . . . . . . . . $ (10,490) $ 22,386 $ 1,637 $ (24,023) $ (10,490)
========= ======== ======= ========== ==========
</TABLE>
12
<PAGE> 13
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
TOTAL
TOTAL NON
COMPANY GUARANTOR GUARANTOR ELIMINATIONS TOTAL
---------- --------- --------- ------------ -----
<S> <C> <C> <C> <C> <C>
STATEMENT OF CASH FLOWS
For the nine months ended September 30, 1996
Net cash from operating activities . . . . . . . . . . . . . . $ 14,515 $ 5,848 $ 3,033 $ -- $ 23,396
---------- --------- --------- --------- ----------
Cash flows provided by (used in) investing activities:
Acquisition, net of cash . . . . . . . . . . . . . . . . . . (160,259) -- -- -- (160,259)
---------- --------- --------- --------- ----------
Capital expenditures . . . . . . . . . . . . . . . . . . . . -- (6,011) (2,430) -- (8,441)
---------- --------- --------- --------- ----------
Net cash used in investing activities . . . . . . . . . . . . (160,259) (6,011) (2,430) -- (168,700)
---------- --------- --------- --------- ----------
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 . . . . . . . . . . . . . (19,695) (440) -- -- (20,135)
Cash dividends paid on preferred stock . . . . . . . . . . . -- -- -- -- --
Financing fees and other . . . . . . . . . . . . . . . . . . (7,800) -- -- -- (7,800)
---------- --------- --------- --------- ----------
Net cash from financing activities . . . . . . . . . . . . . . 145,744 (440) -- -- 145,304
---------- --------- --------- --------- ----------
Net change in cash and cash equivalents . . . . . . . . . . . $ -- $ (603) $ 603 $ -- $ --
========== ========= ========= ========= ==========
</TABLE>
13
<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>
14
<PAGE> 15
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
TOTAL
TOTAL NON
COMPANY GUARANTOR GUARANTOR ELIMINATIONS TOTAL
----------- ----------- ----------- ------------ -----------
<S> <C> <C> <C> <C> <C>
STATEMENT OF OPERATIONS
For the three months ended September 30, 1995
Net sales ........................................ $ -- $ 105,301 $ 4,772 $ (4,772) $ 105,301
Operating expenses
Cost of goods sold ............................. -- 86,326 2,008 (4,772) 83,562
Selling, general and administration ............ -- 6,469 1,964 -- 8,433
Depreciation and amortization .................. -- 3,706 717 -- 4,423
Expenses related to plant closing .............. -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Operating income (loss) .......................... -- 8,800 83 -- 8,883
Other income (expense)
Interest expense ............................... (8,285) -- -- -- (8,285)
Amortization of deferred financing fees ........ (619) -- -- -- (619)
Equity in net income (loss) of subsidiaries .... 7,552 -- -- (7,552) --
Other .......................................... -- 10 -- -- 10
----------- ----------- ----------- ----------- -----------
Income (loss) before income tax provision ........ (1,352) 8,810 83 (7,552) (11)
Income tax provision ............................. -- 692 649 -- 1,341
----------- ----------- ----------- ----------- -----------
Net income (loss) ................................ $ (1,352) $ 8,118 $ (566) $ (7,552) $ (1,352)
=========== =========== =========== =========== ===========
</TABLE>
15
<PAGE> 16
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
TOTAL
TOTAL NON
COMPANY GUARANTOR GUARANTOR ELIMINATIONS TOTAL
------- --------- --------- ------------ -----
<S> <C> <C> <C> <C> <C>
STATEMENT OF OPERATIONS
For the four months ended September 30, 1995
Net sales . . . . . . . . . . . . . . . . . . . . $ -- $ 141,564 $ 5,474 $ (5,474) $ 141,564
Operating expenses
Cost of goods sold . . . . . . . . . . . . . . -- 115,792 2,519 (5,474) 112,837
Selling, general and administration . . . . . -- 8,428 2,542 -- 10,970
Depreciation and amortization . . . . . . . . -- 4,945 952 -- 5,897
Expenses related to plant closing . . . . . . -- 1,750 -- -- 1,750
-------- --------- ------- -------- ---------
Operating income (loss) . . . . . . . . . . . . . -- 10,649 (539) -- 10,110
Other income (expense)
Interest expense . . . . . . . . . . . . . . . (11,064) -- -- -- (11,064)
Amortization of deferred financing fees . . . (864) -- -- -- (864)
Equity in net income (loss) of subsidiaries. . 8,666 -- -- (8,666) --
Other . . . . . . . . . . . . . . . . . . . . -- (173) -- -- (173)
-------- --------- ------- -------- ---------
Income (loss) before income tax provision . . . . (3,262) 10,476 (539) (8,666) (1,991)
Income tax provision . . . . . . . . . . . . . . -- 692 579 -- 1,271
-------- --------- ------- -------- ---------
Net income (loss) . . . . . . . . . . . . . . . . $ (3,262) $ 9,784 $(1,118) $ (8,666) $ (3,262)
======== ========= ======= ======== =========
</TABLE>
16
<PAGE> 17
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
TOTAL
TOTAL NON
COMPANY GUARANTOR GUARANTOR ELIMINATIONS TOTAL
------- --------- --------- ------------ -----
<S> <C> <C> <C> <C> <C>
STATEMENT OF CASH FLOWS
For the four months ended September 30, 1995
Net cash from operating activities . . . . . . . . . . . . $ 4,935 $ 1,423 $732 $ -- $ 7,090
--------- ------- ---- --------- ---------
Cash flows provided by (used in) investing activities:
Acquisition, net of cash . . . . . . . . . . . . . . . (341,046) -- -- -- (341,046)
Capital expenditures . . . . . . . . . . . . . . . . . -- (3,204) -- -- (3,204)
--------- ------- ---- --------- ---------
Net cash used in investing activities . . . . . . . . . . (341,046) (3,204) -- -- (344,250)
--------- ------- ---- --------- ---------
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 . . . . . . . . . . (2,577) -- -- -- (2,577)
Cash dividends paid on preferred stock . . . . . . . . -- -- -- -- --
Financing fees and other . . . . . . . . . . . . . . . (14,000) -- -- -- (14,000)
--------- ------- ---- --------- ---------
Net cash from financing activities . . . . . . . . . . . . 336,111 -- -- -- 336,111
--------- ------- ---- --------- ---------
Net change in cash and cash equivalents . . . . . . . . . $ -- $(1,781) $732 $ -- $ (1,049)
========= ======= ==== ========= =========
</TABLE>
17
<PAGE> 18
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
18
