<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 March 31, 1997
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 April 30, 1997
- ------- ----------------
<S> <C>
International Wire Group, Inc.
Common Stock 1,000
</TABLE>
<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 March 31, 1997 and December 31, 1996........... 1
Consolidated Statements of Operations for the three months ended March 31, 1997
and the three months ended March 31, 1996...................................... 2
Consolidated Statements of Cash Flows for the three months
ended March 31, 1997 and three months ended March 31, 1996..................... 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>
March 31, December 31,
1997 1996
------------------------------
ASSETS (Unaudited)
<S> <C> <C>
Current assets:
Cash............................................................... $ 3,825 $ --
Accounts receivable, less allowance of $ 1,343
and $1,363, respectively......................................... 106,032 71,181
Inventories........................................................ 72,830 60,362
Prepaid expenses and other......................................... 9,679 5,060
Deferred income taxes.............................................. 4,741 4,741
--------- ---------
Total current assets............................................... 197,107 141,344
Property, plant and equipment, net.................................. 158,719 118,551
Deferred financing costs, net....................................... 23,401 21,222
Intangible assets, net.............................................. 247,980 244,655
Other assets........................................................ 7,100 5,248
--------- ---------
Total assets....................................................... $ 634,307 $ 531,020
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Current maturities of long-term obligations........................ $ 21,944 $ 20,948
Accounts payable................................................... 45,155 45,832
Accrued and other liabilities...................................... 56,512 41,183
Accrued interest................................................... 9,649 4,648
--------- ---------
Total current liabilities.......................................... 133,260 112,611
Long-term obligations, less current maturities...................... 510,818 426,719
Deferred income taxes............................................... 15,532 14,719
Other long-term liabilities......................................... 18,856 12,162
--------- ---------
Total liabilities.................................................. 678,466 566,211
Stockholders' equity (deficit):
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, $25 liquidation value,
0 and 400,000 shares authorized, issued and outstanding as of
March 31, 1997 and December 31, 1996, respectively................ -- 4
Contributed capital................................................ 114,080 125,340
Carryover of predecessor basis..................................... (67,762) (67,762)
Accumulated deficit................................................ (90,477) (92,773)
--------- ---------
Total stockholders' equity (deficit)............................... (44,159) (35,191)
--------- ---------
Total liabilities and stockholders' equity (deficit)............... $ 634,307 $ 531,020
========= =========
</TABLE>
See accompanying notes to the consolidated financial statements
1
<PAGE> 4
INTERNATIONAL WIRE GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
March 31, March 31,
1997 1996
--------- ---------
<S> <C> <C>
Net sales............................................. $ 176,153 $ 118,807
Operating expenses:
Cost of goods sold................................... 137,913 93,475
Selling, general and
administrative....................................... 13,308 9,721
Depreciation and amortization........................ 7,511 6,044
Inventory valuation adjustment....................... -- 2,000
Expenses related to plant
closings............................................. 500 4,000
--------- ---------
Operating income...................................... 16,921 3,567
Other income (expense):
Interest expense..................................... (12,011) (9,572)
Amortization of deferred
financing costs...................................... (995) (723)
Other, net........................................... 11 89
--------- ---------
Income (loss) before income tax provision............. 3,926 (6,639)
Income tax provision.................................. 1,630 255
--------- ---------
Net income (loss)..................................... $ 2,296 $ (6,894)
========= =========
</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>
Three Months Three Months
Ended Ended
March 31, March 31,
1997 1996
--------- ---------
<S> <C> <C>
Cash flows provided by (used in) operating
activities:
Net income(loss)................................................ $ 2,296 $ (6,894)
Adjustments to reconcile net income (loss) to net cash provided
by (used in) operating activities:
Depreciation and amortization................................... 7,511 6,044
Amortization of deferred financing costs........................ 995 723
Inventory valuation adjustment.................................. -- 2,000
Change in assets and liabilities, net of
acquisitions:
Accounts receivable............................................. (19,379) (8,568)
Inventories..................................................... 12,958 292
Prepaid expenses and other...................................... (1,159) (335)
Accounts payable................................................ (14,655) (3,150)
Accrued and other liabilities................................... 1,963 2,743
Accrued interest................................................ 5,001 6,517
Other long-term liabilities..................................... (139) (101)
------- -------
Net cash used in operating activities............................ (4,608) (729)
------- -------
Cash flows provided by (used in) investing
activities:
Acquisitions, net of cash....................................... (58,996) (160,259)
Capital expenditures............................................ (3,038) (2,537)
------- -------
Net cash from investing activities............................... (62,034) (162,796)
------- -------
Cash flows provided by (used in) financing
activities:
Equity proceeds................................................. -- 45,039
Proceeds from issuance of long-term
obligations..................................................... 65,000 128,200
Borrowing (repayment) of long-term obligations.................. 10,095 3,100
Cash dividends paid on preferred stock.......................... (1,378) --
Financing fees and other........................................ (3,250) (7,800)
------- -------
Net cash from financing activities............................... 70,467 168,539
------- -------
Net change in cash............................................... 3,825 5,014
Cash at beginning of the
period.......................................................... -- --
------- -------
Cash at end of the period........................................ $ 3,825 $ 5,014
======= =======
</TABLE>
See accompanying notes to the consolidated financial statements
3
<PAGE> 6
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT 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"). On
February 12, 1997, the Company acquired all of the issued and outstanding
common stock of Camden Wire Co., Inc. ("Camden") a wholly-owned subsidiary
of Oneida LTD. (the "Camden Acquisition"). See Note 3.
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 months ended
March 31, 1997 are not necessarily indicative of the results that may be
expected for a full fiscal year.
Statement of Cash Flows
Interest and taxes paid for the three months ended March 31, 1997 were
$7,010 and $166, respectively.
3. CAMDEN ACQUISITION
On February 12, 1997, the Company completed the Camden Acquisition. The
total consideration of $65,000 paid in connection with the Camden
Acquisition, including fees and expenses, consisted of (i) cash and (ii) the
assumption of debt related to Industrial Revenue Bonds. The cash portion of
the consideration paid and the transaction fees and expenses incurred in
connection with the Camden Acquisition were funded with $65,000 of senior
debt under the Amended and Restated Credit Agreement.
4
<PAGE> 7
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
The Camden Acquisition was accounted for using the purchase method of
accounting whereby the total acquisition cost has been preliminarily
allocated to the consolidated assets and liabilities based upon their
estimated respective fair values. The purchase price allocations are still
in process. It is not expected that the final allocation of the purchase
cost will result in a materially different allocation than is presented
herein. The total acquisition cost is preliminarily allocated to the
acquired net assets as follows:
<TABLE>
<S> <C>
Current assets..................................................... $ 49,666
Property, plant & equipment........................................ 42,041
Goodwill........................................................... 3,572
Other, non-current................................................. 1,728
Fees and costs..................................................... 3,250
Current liabilities................................................ (27,612)
Other liabilities.................................................. (7,645)
--------
$ 65,000
========
</TABLE>
Unaudited pro forma results of operations of the Company for the three
months ended March 31, 1997 and March 31, 1996 are included below. Such pro
forma presentation has been prepared assuming that the Camden Acquisition
and related financing had occurred as of January 1, 1997 and January 1,
1996, respectively, and that the DWT Acquisition and related financing had
occurred as of January 1, 1996.
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1997 1996
----- -----
<S> <C> <C>
Net sales..................................... $ 195,144 $ 180,568
Net income (loss)............................. $ 1,231 $ (3,939)
</TABLE>
4. 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 March 31, 1997 is as follows:
<TABLE>
<S> <C>
Raw materials...................................................... $ 33,946
Work-in-process.................................................... 16,743
Finished goods..................................................... 22,141
--------
Total $ 72,830
========
</TABLE>
5. LONG-TERM OBLIGATIONS
The composition of long-term obligations at March 31, 1997 is as follows:
<TABLE>
<S> <C>
Credit Agreement:
Revolving credit facility......................................... $ 18,800
Term facility..................................................... 331,488
Senior subordinated and exchange notes............................. 160,000
Industrial revenue bonds........................................... 15,500
Other 6,974
---------
532,762
Less, current maturities........................................... (21,944)
---------
$ 510,818
=========
</TABLE>
5
<PAGE> 8
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
The schedule of principal payments for long-term obligations at March 31,
1997 is as follows:
<TABLE>
<S> <C>
1997............................................... $ 16,173
1998............................................... 24,153
1999............................................... 29,493
2000............................................... 62,669
2001............................................... 57,508
Thereafter......................................... 342,766
---------
Total $ 532,762
=========
</TABLE>
In connection with the Camden Acquisition, Holding and the Company entered
into an Amended and Restated Credit Agreement dated as of February 12, 1997
with certain financial institutions. The Amended and Restated Credit
Agreement provides senior secured financing of up to $428.5 million,
consisting of an $111.0 million, Term A loan, an $115.0 million Term B loan,
an $127.5 million Term C loan (collectively the "Term Facility") and a $75.0
million revolving loan and letter of credit facility (the "Revolver").
Mandatory principal payments of the Term Facility are due in quarterly
installments. The final installment on the Term A loan is due September 30,
2000 at which time the Revolver is also due. The final installments on the
Term B Loan and Term C Loan are due September 30, 2002 and September 30,
2003, respectively.
Borrowings under the Term A Loan and Revolver bear interest, at the option
of Group, at a rate per annum equal to (a) the Alternate Base Rate (as
defined in the Amended Credit Agreement) plus 1.5% or (b) the Eurodollar
Rate (as defined in the Amended Credit Agreement) plus 2.5%. Borrowings
under the Term B Loan bear interest, at the option of Group, at a rate per
annum equal to (a) the Alternate Base Rate (as defined in the Amended and
Restated Credit Agreement) plus 2.0% or (b) the Eurodollar Rate (as defined
in the Amended and Restated Credit Agreement) plus 3.0%. Borrowings under
the Term C Loan bear interest, at the option of Group, at a rate per annum
equal to (a) the Alternate Base Rate (as defined in the Amended and Restated
Credit Agreement plus 2.5% or (b) the Eurodollar Rate (as defined in the
Amended and Restated Credit Agreement) plus 3.5%. The Alternate Base Rate
and Eurodollar Rate margins are established quarterly based on a formula as
defined in the Amended and Restated Credit Agreement. Interest payment dates
vary depending on the interest rate option to which the Term Facility and
the Revolver are tied, but generally interest is payable quarterly. The
Amended and Restated Credit Agreement contains several financial covenants
which, among other things, require Group to maintain certain financial
ratios and restrict Group's ability to incur indebtedness, make capital
expenditures and pay dividends.
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 Acquisitions. 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.
6
<PAGE> 9
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
Exchange Notes
In February 1997, the Company exchanged $10,000 of Series A Senior
Cumulative Exchangeable Redeemable Preferred Stock (the "Preferred Stock")
for 14.0% Senior Subordinated Notes due June 1, 2005 (the "Exchange Notes")
and paid all dividends in arrears related to the Preferred Stock. The
Exchange Notes were issued under an indenture dated February 12, 1997 (the
"Exchange Indenture"). The Exchange Notes represent unsecured general
obligations of Group, are subordinated to all Senior Indebtedness (as
defined in the Exchange Indenture) of Group and rank on equal terms with the
Senior Notes.
The Exchange 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 Exchange Notes mature on June 1, 2005. Interest on the Exchange Notes is
payable semi-annually on each June 1 and December 1. The Exchange Notes bear
interest at the rate of 14.0% per annum. The Exchange Notes may not be
redeemed prior to June 1, 2000, except in the event of a Change of Control
(as defined) or Initial Public Offering (as defined) and at such applicable
premium (as defined). The Exchange Notes are redeemable, at the Company's
option, at the redemption prices of 105.875% at June 1, 2000, and at
decreasing prices to 100% at June 1, 2003, and thereafter, with accrued
interest. In addition, prior to June 1, 1998, the Company may redeem within
guidelines specified in the Indenture, up to $3,000 of the Exchange Notes
with the proceeds of one or more Equity Offerings (as defined) by the
Company or Holding at a redemption price of 110%, with accrued interest.
Industrial Revenue Bonds
In connection with the Camden Acquisition the company assumed debt related
to two Industrial Revenue Bonds (the "IRB's"), totaling $15,500. The IRB's
are due in August 2005 and March 2016 in the amounts of $9,000 and $6,500
respectively. The IRB's bear interest at a rate per annum which is tied to
the Tax Exempt Money Market Index. Rates change weekly and interest is paid
monthly.
7
<PAGE> 10
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
6. PLANT CLOSING EXPENSE
In March 1997, the Company recorded a pretax charge to operations of $500
to provide for plant closing costs. The plant closing costs relate to
consolidating a wire segment facility and include provisions for certain
shut-down costs of $375 and severance related costs of $125. Following is
a summary of activity in the accounts related to the plant closing
activities:
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS
ENDED ENDED
MARCH 31, 1997 MARCH 31, 1996
---------------- ----------------
<S> <C> <C>
Balance, beginning of period ..................... $2,462 $ 700
Charges to operations:
Facility shut-down costs........................ 375 2,500
Lease commitments............................... -- 570
Key personnel and severance costs............... 125 930
------ ------
500 4,000
------ ------
Costs incurred:
Facility shut-down costs........................ (317) --
Lease commitments............................... (57) --
Key personnel and severance costs............... (118) --
------ ------
(492) --
------ ------
Balance, end of period ........................... $2,470 $4,700
====== ======
</TABLE>
7. GUARANTOR SUBSIDIARIES
The Senior Notes and Exchange 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.
8
<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>
BALANCE SHEET
As of March 31, 1997
ASSETS
Cash....................................................... $ -- $ 2,276 $ 1,549 $ -- $ 3,825
Accounts receivable........................................ -- 106,068 376 (412) 106,032
Inventory.................................................. -- 72,830 -- -- 72,830
Other assets............................................... 4,741 9,679 -- -- 14,420
-------- --------- ------- --------- --------
Total current assets.................................... 4,741 190,853 1,925 (412) 197,107
Property plant and equipment, net............................. -- 149,740 8,979 -- 158,719
Intangible assets, net........................................ 23,401 247,980 -- -- 271,381
Investment in subsidiaries.................................... 550,159 -- -- (550,159) --
Other assets.................................................. -- 5,962 1,138 -- 7,100
-------- --------- ------- --------- --------
Total assets............................................ $578,301 $ 594,535 $12,042 $(550,571) $634,307
======== ========= ======= ========= ========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities........................................ $ 30,669 $ 100,891 $ 2,112 $ (412) $133,260
Long-term obligations, less current maturities............. 489,268 21,550 -- -- 510,818
Other long-term liabilities................................ 15,532 18,846 10 -- 34,388
Intercompany (receivable) payable.......................... 19,229 (27,268) 8,039 -- --
-------- --------- ------- --------- --------
Total liabilities....................................... 554,698 114,019 10,161 (412) 678,466
Stockholders' equity (deficit)
Common stock............................................... -- -- -- -- --
Preferred stock............................................ -- -- -- -- --
Contributed capital........................................ 114,080 572,012 18 (572,030) 114,080
Predecessor carryover...................................... -- (67,762) -- -- (67,762)
Retained earnings.......................................... (90,477) (23,734) 1,863 21,871 (90,477)
-------- --------- ------- --------- --------
Total stockholders' equity (deficit).................... 23,603 480,516 1,881 (550,159) (44,159)
-------- --------- ------- --------- --------
Total liabilities and stockholders' equity (deficit).... $578,301 $ 594,535 $12,042 $(550,571) $634,307
======== ========= ======= ========= ========
</TABLE>
9
<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 three months ended March 31, 1997
Net sales........................................... $ -- $176,153 $ 8,566 $ (8,566) $176,153
Operating expenses
Cost of goods sold............................... -- 142,833 3,646 (8,566) 137,913
Selling, general and administration.............. -- 10,286 3,022 -- 13,308
Depreciation and amortization.................... -- 7,077 434 -- 7,511
Impairment, unusual and plant closing charges.... -- 500 -- -- 500
-------- -------- ------- -------- --------
Operating income (loss)............................. -- 15,457 1,464 -- 16,921
Other income (expense)..............................
Interest expense................................. (12,011) -- -- -- (12,011)
Amortization of deferred financing fees.......... (995) -- -- -- (995)
Equity in net income (loss) of subsidiaries...... 15,302 -- -- (15,302) --
Other............................................ -- 14 (3) -- 11
-------- -------- ------- -------- --------
Income (loss) before income tax provision........... 2,296 15,471 1,461 (15,302) 3,926
Income tax provision................................ -- 1,499 131 -- 1,630
-------- -------- ------- -------- --------
Net income (loss)................................... $ 2,296 $ 13,972 $ 1,330 $(15,302) $ 2,296
======== ======== ======= ======== ========
</TABLE>
10
<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 three months ended March 31, 1997
Net cash from operating activities................... $(53,956) $ 47,301 $ 2,047 $ -- $ (4,608)
-------- -------- ------- ------ --------
Cash flows provided by (used
in) investing activities:
Acquisition, net of cash.......................... -- (58,996) -- -- (58,996)
Capital expenditures.............................. -- (2,402) (636) -- (3,038)
-------- -------- ------- ------ --------
Net cash used in investing activities................ -- (61,398) (636) -- (62,034)
-------- -------- ------- ------ --------
Cash flows provided by (used in) financing
activities:
Equity proceeds................................... -- -- -- -- --
Proceeds from issuance of long-term obligations... 48,489 16,511 -- -- 65,000
Repayment of long-term obligations................ 10,095 -- -- -- 10,095
Cash dividends paid on preferred stock............ (1,378) -- -- -- (1,378)
Financing fees and other.......................... (3,250) -- -- -- (3,250)
-------- -------- ------- ------ --------
Net cash from financing activities................... 53,956 16,511 -- -- 70,467
-------- -------- ------- ------ --------
Net change in cash................................... $ -- $ 2,414 $ 1,411 $ -- $ 3,825
======== ======== ======= ====== ========
</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, 1996
ASSETS
Cash........................... $ -- $ (138) $ 138 $ -- $ --
Accounts receivable............ -- 70,010 1,902 (731) 71,181
Inventory...................... -- 59,648 714 -- 60,362
Other assets................... 5,375 4,314 112 -- 9,801
--------- --------- ------- --------- ---------
Total current assets... 5,375 133,834 2,866 (731) 141,344
Property plant and equipment,
net......................... -- 109,774 8,777 -- 118,551
Intangible assets, net......... 19,722 246,155 -- -- 265,877
Investment in subsidiaries..... 534,857 -- -- (534,857) --
Other assets................... -- 4,368 880 -- 5,248
--------- --------- ------- --------- ---------
Total assets........... $ 559,954 $ 494,131 $12,523 $(535,588) $ 531,020
========= ========= ======= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities............ $ 24,620 $ 85,866 $ 2,856 $ (731) $ 112,611
Long term obligations, less
current maturities.......... 420,422 6,297 -- -- 426,719
Other long-term liabilities.... 6,081 20,790 10 -- 26,881
Intercompany (receivable)
payable..................... 76,260 (85,366) 9,106 -- --
--------- --------- ------- --------- ---------
Total liabilities...... 527,383 27,587 11,972 (731) 566,211
Stockholders' equity (deficit)
Common stock................ -- -- -- -- --
Preferred stock............. 4 -- -- -- 4
Contributed capital......... 125,340 572,012 18 (572,030) 125,340
Predecessor carryover....... -- (67,762) -- -- (67,762)
Retained earnings........... (92,773) (37,706) 533 37,173 (92,773)
--------- --------- ------- --------- ---------
Total stockholders'
equity (deficit)..... 32,571 466,544 551 (534,857) (35,191)
--------- --------- ------- --------- ---------
Total liabilities and
stockholders' equity
(deficit)............ $ 559,954 $ 494,131 $12,523 $(535,588) $ 531,020
========= ========= ======= ========= =========
</TABLE>
12
<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 March 31, 1996
Net sales............................................ $ -- $118,807 $7,643 $(7,643) $ 118,807
Operating expenses
Cost of goods sold................................ -- 97,397 3,721 (7,643) 93,475
Selling, general and administration............... -- 7,233 2,488 -- 9,721
Depreciation and amortization..................... -- 5,735 309 -- 6,044
Inventory valuation adjustment ................... -- 2,000 -- -- 2,000
Expenses related to plant closings................ -- 4,000 -- -- 4,000
------- -------- ------ ------- ---------
Operating income (loss).............................. -- 2,442 1,125 -- 3,567
Other income (expense)...............................
Interest expense.................................. (9,572) -- -- -- (9,572)
Amortization of deferred financing fees........... (723) -- -- -- (723)
Equity in net income (loss) of subsidiaries....... 3,401 -- -- (3,401) --
Other............................................. -- 89 -- -- 89
------- -------- ------ ------- ---------
Income (loss) before income tax provision............ (6,894) 2,531 1,125 (3,401) (6,639)
Income tax provision................................. -- 100 155 -- 255
------- -------- ------ ------- ---------
Net income (loss).................................... $(6,894) $ 2,431 $ 970 $(3,401) $ (6,894)
======= ======== ====== ======= =========
</TABLE>
13
<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 CASH FLOWS
For the three months ended March 31, 1996
Net cash from operating activities. . . . . . . . . . . $ (8,280) $ 5,742 $ 1,809 $ -- $ (729)
--------- --------- --------- ------ ---------
Cash flows provided by (used in) investing activities:
Acquisition, net of cash . . . . . . . . . . . . . . (160,259) -- -- -- (160,259)
Capital expenditures, net. . . . . . . . . . . . . . -- (1,096) (1,441) -- (2,537)
--------- --------- --------- ------ ---------
Net cash used in investing activities . . . . . . . . . (160,259) (1,096) (1,441) -- (162,796)
--------- --------- --------- ------ ---------
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 . . . . . . . . . 3,100 -- -- -- 3,100
Financing fees and other . . . . . . . . . . . . . . (7,800) -- -- -- (7,800)
--------- --------- --------- ------ ---------
Net cash from financing activities. . . . . . . . . . . 168,539 -- -- -- 168,539
--------- --------- --------- ------ ---------
Net change in cash. . . . . . . . . . . . . . . . . . . $ -- $ 4,646 $ 368 $ -- $ 5,014
========= ========= ========= ====== =========
</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
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