<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, 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:
Outstanding at
Class April 30, 1996
- ------------------------------ ------------------------------
International Wire Group, Inc. 1,000
Common Stock
<PAGE> 2
INTERNATIONAL WIRE GROUP, INC.
INDEX
PART I. FINANCIAL INFORMATION
<TABLE>
<CAPTION>
Page
----
<S> <C>
International Wire Group, Inc.
Consolidated Balance Sheets as of March 31, 1996 and December 31,
1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Consolidated Statement of Operations for the three months ended
March 31, 1996 . . . . . . . . . . . . . . . . . . . . . . . . . 2
Consolidated Statement of Cash Flows for the three months ended
March 31, 1996 . . . . . . . . . . . . . . . . . . . . . . . . . 3
Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . 4
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
</TABLE>
(i)
<PAGE> 3
INTERNATIONAL WIRE GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
-------- --------
(Unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . . $ 5,014 $ -
Accounts receivable, less allowance of $904
and $860, respectively . . . . . . . . . . . . . . . . . 78,103 47,180
Inventories . . . . . . . . . . . . . . . . . . . . . . . . 62,175 57,777
Prepaid expenses and other . . . . . . . . . . . . . . . . 3,498 2,858
-------- --------
Total current assets . . . . . . . . . . . . . . . . . . 148,790 107,815
Property, plant and equipment, net . . . . . . . . . . . . 116,666 82,259
Deferred financing costs, net . . . . . . . . . . . . . . . 22,565 16,688
Intangible assets, net . . . . . . . . . . . . . . . . . . 324,086 215,400
Other assets . . . . . . . . . . . . . . . . . . . . . . . 5,677 5,758
-------- --------
Total assets . . . . . . . . . . . . . . . . . . . . . . $617,784 $427,920
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Current maturities of long-term obligations . . . . . . . . $ 20,431 $ 12,662
Accounts payable . . . . . . . . . . . . . . . . . . . . . 43,666 37,627
Accrued and other liabilities . . . . . . . . . . . . . . . 33,448 26,011
Accrued interest . . . . . . . . . . . . . . . . . . . . . 9,033 2,516
-------- --------
Total current liabilities . . . . . . . . . . . . . . . 106,578 78,816
Long-term obligations, less current maturities . . . . . . . . 449,546 326,015
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . 8,194 8,194
Other long-term liabilities . . . . . . . . . . . . . . . . . . 6,296 4,897
-------- --------
Total liabilities . . . . . . . . . . . . . . . . . . . 570,614 417,922
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 and 0 shares authorized, issued and
outstanding as of March 31, 1996 and December 31, 1995,
respectively. . . . . . . . . . . . . . . . . . . . . . . 4 -
Contributed capital . . . . . . . . . . . . . . . . . . . . 125,113 81,051
Carryover of predecessor basis . . . . . . . . . . . . . . (67,762) (67,762)
Accumulated deficit . . . . . . . . . . . . . . . . . . . . (10,185) (3,291)
---------- ---------
Total stockholders' equity . . . . . . . . . . . . . . . 47,170 9,998
--------- ---------
Total liabilities and stockholders' equity . . . . . . . $617,784 $427,920
======== ========
</TABLE>
See accompanying notes to the consolidated financial statements
1
<PAGE> 4
INTERNATIONAL WIRE GROUP, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1996
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<S> <C>
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $118,807
Operating expenses:
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93,475
Selling, general and administrative . . . . . . . . . . . . . . . . . . . . . 9,721
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . 6,044
Inventory valuation adjustment . . . . . . . . . . . . . . . . . . . . . . . 2,000
Expenses related to plant closings . . . . . . . . . . . . . . . . . . . . . 4,000
--------
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,567
Other income (expense):
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,572)
Amortization of deferred financing costs . . . . . . . . . . . . . . . . . . (723)
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
--------
Loss before income tax provision . . . . . . . . . . . . . . . . . . . . . . . . (6,639)
Income tax provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255
--------
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (6,894)
========
</TABLE>
See accompanying notes to the consolidated financial statements
2
<PAGE> 5
INTERNATIONAL WIRE GROUP, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1996
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<S> <C>
Cash flows provided by (used in) operating activities:
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (6,894)
Adjustments to reconcile net loss to net cash provided
by (used in) operating activities:
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . 6,044
Amortization of deferred financing costs . . . . . . . . . . . . . . . . . . 723
Inventory valuation adjustment . . . . . . . . . . . . . . . . . . . . . . . 2,000
Change in assets and liabilities, net of acquisitions:
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . (8,568)
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292
Prepaid expenses and other . . . . . . . . . . . . . . . . . . . . . . . (335)
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,150)
Accrued and other liabilities . . . . . . . . . . . . . . . . . . . . . 2,724
Accrued interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,517
Income taxes payable/refundable . . . . . . . . . . . . . . . . . . . . 19
Other long-term liabilities . . . . . . . . . . . . . . . . . . . . . . (101)
--------
Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . (729)
--------
Cash flows provided by (used in) investing activities:
Acquisitions, net of cash . . . . . . . . . . . . . . . . . . . . . . . . . . . (160,259)
Capital expenditures, net . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,537)
--------
Net cash from investing activities . . . . . . . . . . . . . . . . . . . . . . . . (162,796)
--------
Cash flows provided by (used in) financing activities:
Equity proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,039
Proceeds from issuance of long-term obligations . . . . . . . . . . . . . . . . 128,200
Borrowing of long-term obligations . . . . . . . . . . . . . . . . . . . . . . 3,100
Financing fees and other . . . . . . . . . . . . . . . . . . . . . . . . . . . (7,800)
--------
Net cash from financing activities . . . . . . . . . . . . . . . . . . . . . . . . 168,539
--------
Net change in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . 5,014
Cash and cash equivalents at beginning of the period . . . . . . . . . . . . . . . -
--------
Cash and cash equivalents at end of the period . . . . . . . . . . . . . . . . . . $ 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 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. 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 appliance, computer and data
communications, automotive 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, 1996, 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, 1996 were
$3,055 and $236, 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 December 31, 1995 to
March 31, 1996 the Company wrote down the copper valuation in
inventory, the effect of which increased loss before income tax
provision by approximately $2,000.
4
<PAGE> 7
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The composition of inventories at March 31, 1996 is as follows:
<TABLE>
<S> <C>
Raw materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22,894
Work-in-process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,974
Finished goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,307
-------
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $62,175
=======
</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 (discussed in Note 6). 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. LONG-TERM OBLIGATIONS
The composition of long-term obligations at March 31, 1996 is as
follows:
<TABLE>
<S> <C>
Credit Agreement:
Revolving credit facility . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 28,000
Term Facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286,125
Senior Subordinated Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000
Capital leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,875
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 977
--------
469,977
Less, current maturities . . . . . . . . . . . . . . . . . . . . . . . . . . . (20,431)
--------
$449,546
========
</TABLE>
The schedule of principal payments for long-term obligations at March
31, 1996 is as follows:
<TABLE>
<S> <C>
1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,369
1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,959
1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,719
1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,054
2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67,503
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313,373
--------
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $469,977
========
</TABLE>
5
<PAGE> 8
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Credit Agreement
In connection with the IW Acquisition, Group and Holding entered into
a Credit Agreement (the "Credit Agreement") dated as of June 12, 1995
with certain financial institutions. The Credit Agreement was amended
in connection with the DWT Acquisition (discussed in Note 6) pursuant
to an Amendment to the Credit Agreement dated March 5, 1996 (the
"Amended Credit Agreement"). Borrowings under the Amended Credit
Agreement are collateralized by first priority mortgages and liens on
all of the assets of Group. In addition, borrowings under the Amended
Credit Agreement are guaranteed by Holding.
The Amended Credit Agreement provides senior secured financing of up
to $363,500 consisting of a $111,000 term loan (the "Term A Loan"), an
$82,500 term loan (the "Term B Loan"), a $95,000 term loan (the "Term
C Loan") (collectively the "Term Facility") and a $75,000 revolving
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 on 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 on 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) 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) plus 2.0% or (b) the
Eurodollar Rate (as defined) 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), plus 2.5% or (b) the
Eurodollar Rate (as defined) plus 3.5%. 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 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 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.
6
<PAGE> 9
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
6. DWT ACQUISITION
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 total consideration paid in connection with the
DWT Acquisition, including fees and expenses, consisted of (i) cash in
the amount of $173,239, subject to final adjustments, and (ii)
warrants for the purchase of 2,000,000 shares of Common Stock, par
value $.01 per share, of Holding. The cash portion of the
consideration paid and the transaction fees and expenses incurred in
connection with the DWT Acquisition were funded with (i) $128,200 of
senior debt under the Amended Credit Agreement, (ii) $35,000 from the
issuance of 35,000,000 shares of Common Stock, par value $.01 per
share, of Holding, (iii) $39 from the issuance of 3,888,889 shares of
Class A Common Stock, par value $.01 per share, of Holding, and (iv) $
10,000 from the issuance of 400,000 shares of Series A Senior
Cumulative Exchangeable Redeemable Preferred Stock, par value $.01 per
share, of the Company (sold in units together with warrants for the
purchase of shares of Common Stock, par value $.01 per share, of
Holding).
The DWT 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 . . . . . . . . . . . . . . . . . . . . $ 36,250
Property, plant and equipment . . . . . . . . . . . . 35,819
Goodwill . . . . . . . . . . . . . . . . . . . . . . . 110,337
Fees and costs . . . . . . . . . . . . . . . . . . . . 7,800
Current liabilities . . . . . . . . . . . . . . . . . (15,467)
Other liabilities . . . . . . . . . . . . . . . . . . (1,500)
--------
$173,239
========
</TABLE>
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 three months ended March 31, 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> 10
INTERNATIONAL WIRE GROUP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
----------------------------------
1996 1995 (1)
-------- --------
<S> <C> <C>
Net sales . . . . . . . . . . . . . . . . . . . $146,045 $166,805
Net income (loss) . . . . . . . . . . . . . . . (5,808) 1,051
</TABLE>
___________________
(1) Data gives effect to the IW Acquisition as though it occurred as
of January 1, 1995.
7. 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 shut-down costs from the period of plant
closure to the date of disposal, commitment costs for leased equipment
and facilities and severance related costs. A summary of activity
related to plant closing is as follows:
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31, 1996
--------------
<S> <C>
Balance, beginning of period................................ $ 700
Charges to operations:
Facility shut-down costs.................................. 2,500
Lease commitments......................................... 570
Key personnel and severance costs......................... 930
------
4,000
Costs incurred:
Facility shut-down costs.................................. --
Lease commitments......................................... --
Key personnel and severance costs......................... --
------
--
------
Balance, end of period...................................... $4,700
======
</TABLE>
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.
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 and for the three months ended
March 31, 1996
ASSETS
Cash . . . . . . . . . . . . . . . . . $ -- $ 4,617 $ 397 $ -- $ 5,014
Accounts receivable. . . . . . . . . . -- 76,456 4,671 (3,024) 78,103
Inventory. . . . . . . . . . . . . . . -- 62,152 23 -- 62,175
Other assets . . . . . . . . . . . . . -- 3,474 24 -- 3,498
--------- --------- --------- --------- ---------
Total current assets. . . . . . . . -- 146,699 5,115 (3,024) 148,790
Property plant and equipment, net . . . . -- 107,905 8,761 -- 116,666
Intangible assets, net . . . . . . . . . 22,565 324,086 -- -- 346,651
Investment in subsidiaries. . . . . . . . 585,052 -- -- (585,052) --
Other assets. . . . . . . . . . . . . . . -- 5,012 665 -- 5,677
--------- --------- --------- --------- ---------
Total assets. . . . . . . . . . . . $ 607,617 $ 583,702 $ 14,541 $(588,076) $ 617,784
========= ========= ========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities. . . . . . . . . . $ 28,603 $ 79,318 $ 1,681 $ (3,024) $ 106,578
Long-term obligations, less current
maturities. . . . . . . . . . . . . 444,555 4,991 -- -- 449,546
Other long-term liabilities. . . . . . -- 14,490 -- -- 14,490
Intercompany (receivable) payable. . . 19,527 (32,441) 12,914 -- --
--------- --------- --------- --------- ---------
Total liabilities . . . . . . . . . 492,685 66,358 14,595 (3,024) 570,614
--------- --------- --------- --------- ---------
Stockholders' equity
Common stock -- -- -- -- --
Preferred stock. . . . . . . . . . . . 4 -- -- -- 4
Contributed capital. . . . . . . . . . 125,113 572,012 18 (572,030) 125,113
Predecessor carryover. . . . . . . . . -- (67,762) -- -- (67,762)
Retained earnings. . . . . . . . . . . (10,185) 13,094 (72) (13,022) (10,185)
--------- --------- --------- --------- ---------
Total stockholders' equity. . . . . 114,932 517,344 (54) (585,052) 47,170
--------- --------- --------- --------- ---------
Total liabilities and stockholders'
equity. . . . . . . . . . . . . . $ 607,617 $ 583,702 $ 14,541 $(588,076) $ 617,784
========= ========= ========= ========= =========
</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, 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>
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, 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 . . . . . . . . . 3,150 -- -- -- 3,150
Financing fees and other . . . . . . . . . . . . . . (7,800) -- -- -- (7,800)
--------- --------- --------- ------ ---------
Net cash from financing activities. . . . . . . . . . . 168,539 -- -- -- 168,539
--------- --------- --------- ------ ---------
Net change in cash and cash equivalents . . . . . . . . $ -- $ 4,646 $ 368 $ -- $ 5,014
========= ========= ========= ====== =========
</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
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
13
