/raid1/www/Hosts/bankrupt/TCR_Public/040814.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Saturday, August 14, 2004, Vol. 8, No. 171
Headlines
AIR CANADA: Reports Higher July 2004 Traffic Results
AVALON DIGITAL: Files Feb. to June 2004 Monthly Operating Reports
COVANTA ENERGY: Reports $13 Million Net Income in June 2004
ENRON CORP: Wind Trust's June 2004 Monthly Cash Report
EXIDE TECH: Posts $1.7 Billion Combined 2nd Quarter Net Income
HAYES LEMMERZ: Creditor Trust Releases 2nd Quarter 2004 Results
INSILCO HOLDING: Reports $13.2 Million in Assets at June 30
MARINER: Reports $3.3 Million Second Quarter 2004 Net Income
MIRANT CORP: Reports $32 Million Net Income for Second Quarter
PACIFIC GAS: PG&E Reports $412 Million 2nd Quarter Net Income
SK GLOBAL: SK Corp. Releases First Half of 2004 Financial Results
SOLUTIA INC: Reports $19 Million Net Loss in June 2004
SOLUTIA INC: Second Quarter Net Loss Tops $98 Million
UNITED AIRLINES: Reports Highest-Ever July Load Factor
USG CORPORATION: Reports $21.7 Million Earnings in June 2004
W.R. GRACE: Submits Amended First Quarter 2004 Financial Results
W.R. GRACE: Submits Amended Second Quarter 2004 Financial Results
W.R. GRACE: Reports Amended 4th Qtr. & Year-End Financial Results
WESTPOINT STEVENS: 2nd Quarter Net Loss Narrows to $24 Million
WESTPOINT STEVENS: Reports $14.2 Million Net Loss in June 2004
WESTPOINT STEVENS: JP Stevens & Co.'s June 2004 Operating Report
WESTPOINT STEVENS: JP Stevens Enterprises' June Operating Report
WESTPOINT STEVENS: WP Stevens I Posts $3.2 Million Income in May
WESTPOINT STEVENS: WP Stevens Stores' June 2004 Operating Report
*********
AIR CANADA: Reports Higher July 2004 Traffic Results
----------------------------------------------------
Air Canada mainline flew 12.8 per cent more revenue passenger
miles (RPMs) in July 2004 than in July 2003, according to
preliminary traffic figures. Overall, capacity increased by 9.5
per cent, resulting in a load factor of 80.4 per cent, compared to
78.1 per cent in July 2003; an increase of 2.3 percentage points.
In the domestic market, capacity decreased by 4.5 per cent while
traffic was flat resulting in a domestic load factor of 78.2 per
cent - a 3.5 percentage point increase year over year.
Jazz, Air Canada's regional airline subsidiary, flew 7.5 per
cent more revenue passenger miles in July 2004 than in July 2003,
according to preliminary traffic figures. Capacity increased by
0.4 per cent, resulting in a load factor of 66.7 per cent,
compared to 62.3 per cent in July 2003; an increase of 4.4
percentage points.
"A continuing recovery of traffic combined with disciplined
capacity management resulted in a fourth consecutive month of
record system load factors in July," said Rob Peterson, Executive
Vice President and Chief Financial Officer. "Yields on the
domestic and international services continued to rebound strongly
from the depressed 2003 levels. Within Canada we tightened
capacity on all routes, while on the Atlantic we added
frequencies on the strong London and Paris services. The sharp
increase in Pacific capacity reflected the reinstatement of SARS
related 2003 reductions while new Latin American and sun
destinations drove up the capacity in the 'other and charter'
category."
AIR CANADA MAINLINE
(Includes Tango, Zip & Jetz)
JULY
-----------------------------------
2004 2003 Change
---------- ---------- -----------
Traffic (RPMs millions) 4,259 3,775 +12.8%
Capacity (ASMs millions) 5,294 4,833 +9.5%
---------- ---------- -----------
Load Factor 80.4% 78.1% +2.3 pts
========== ========== ===========
Canada RPMs 1,312 1,312 0.0%
ASMs 1,678 1,757 -4.5%
---------- ---------- -----------
Load Factor 78.2% 74.7% +3.5 pts
========== ========== ===========
U.S. Trans-border RPMs 550 546 +0.7%
ASMs 752 740 +1.6%
---------- ---------- -----------
Load Factor 73.1% 73.8% -0.7 pts
========== ========== ===========
Atlantic RPMs 1,343 1,340 +0.2%
ASMs 1,599 1,628 -1.8%
---------- ---------- -----------
Load Factor 84.0% 82.3% +1.7 pts
========== ========== ===========
Pacific RPMs 783 369 +112.2%
ASMs 934 446 +109.4%
---------- ---------- -----------
Load Factor 83.8% 82.7% +1.1 pts
========== ========== ===========
Other & Charter RPMs 271 208 +30.3%
ASMs 331 262 +26.3%
---------- ---------- -----------
Load Factor 81.9% 79.4% +2.5 pts
========== ========== ===========
AIR CANADA MAINLINE
(Includes Tango, Zip & Jetz)
YEAR-TO-DATE
-----------------------------------
2004 2003 Change
---------- ---------- -----------
Traffic (RPMs millions) 24,290 21,614 +12.4%
Capacity (ASMs millions) 31,605 29,348 +7.7%
---------- ---------- -----------
Load Factor 76.9% 73.6% +3.3 pts
========== ========== ===========
Canada RPMs 7,283 6,794 +7.2%
ASMs 9,571 9,505 +0.7%
---------- ---------- -----------
Load Factor 76.1% 71.5% +4.6 pts
========== ========== ===========
U.S. Trans-border RPMs 3,920 4,126 -5.0%
ASMs 5,730 6,186 -7.4%
---------- ---------- -----------
Load Factor 68.4% 66.7% +1.7 pts
========== ========== ===========
Atlantic RPMs 6,194 6,432 -3.7%
ASMs 7,569 7,921 -4.4%
---------- ---------- -----------
Load Factor 81.8% 81.2% +0.6 pts
========== ========== ===========
Pacific RPMs 4,585 2,587 +77.2%
ASMs 5,679 3,536 +60.6%
---------- ---------- -----------
Load Factor 80.7% 73.2% +7.5 pts
========== ========== ===========
Other & Charter RPMs 2,308 1,675 +37.8%
ASMs 3,056 2,200 +38.9%
---------- ---------- -----------
Load Factor 75.5% 76.1% -0.6 pts
========== ========== ===========
AIR CANADA REGIONAL (Jazz)
JULY
-----------------------------------
2004 2003 Change
---------- ---------- -----------
Traffic (RPMs millions) 158 147 +7.5%
Capacity (ASMs millions) 237 236 +0.4%
---------- ---------- -----------
Load Factor 66.7% 62.3% +4.4 pts
========== ========== ===========
AIR CANADA REGIONAL (Jazz)
YEAR-TO-DATE
-----------------------------------
2004 2003 Change
---------- ---------- -----------
Traffic (RPMs millions) 979 933 +4.9%
Capacity (ASMs millions) 1,580 1,546 +2.2%
---------- ---------- -----------
Load Factor 62.0% 60.3% +1.7 pts
========== ========== ===========
AVALON DIGITAL: Files Feb. to June 2004 Monthly Operating Reports
-----------------------------------------------------------------
Avalon Digital Marketing Systems, Inc. filed its monthly operating
reports for February, March, April, May and June, 2004 with the
U.S. Bankruptcy Court this week.
The Debtor's Monthly Balance Sheets show:
2 0 0 4
--------------------------------------------------
Feb. 29 March 31 Apr. 30 May 31 Jun. 30
------- -------- ------- ------- -------
Cur. Assets 423,608 343,278 162,872 141,489 137,114
Tot. Assets 837,157 724,983 516,995 468,254 436,748
Postpetition
Debt 638,402 717,389 612,736 643,161 650,387
Prepetition
Debt 9,571,862 9,510,212 9,495,081 9,437,391 9,430,295
Total
Equity (9,373,107)(9,502,618)(9,590,822)(9,612,298)(9,643,934)
On September 5, 2003, Avalon Digital Marketing Systems, Inc., a
Delaware corporation filed a voluntary petition for reorganization
under Chapter 11 of the United States Bankruptcy Code in the U.S.
Bankruptcy Court in Salt Lake City, Utah. The case has been
assigned to Judge Glen E. Clark and the case is being administered
under Case Number 03-35180.
Full-text copies of Avalon Digital's Monthly Operating Reports are
available at no charge at:
Month Ending June 30, 2004
http://www.sec.gov/Archives/edgar/data/1095792/000009631304000190/avalondigitalexh991604.txt
Month Ending May 31, 2004
http://www.sec.gov/Archives/edgar/data/1095792/000009631304000189/avalondigitalexh991504.txt
Month Ending April 30, 2004
http://www.sec.gov/Archives/edgar/data/1095792/000009631304000186/avalondigitalexh991404.txt
Month Ending March 31, 2004
http://www.sec.gov/Archives/edgar/data/1095792/000009631304000184/avalondigitalexh991304.txt
Month Ending February 29, 2004
http://www.sec.gov/Archives/edgar/data/1095792/000009631304000182/avalondigitalexh991204.txt
COVANTA ENERGY: Reports $13 Million Net Income in June 2004
---------------------------------------------------------------
Covanta Energy Corporation And Subsidiaries
Consolidated Balance Sheets
At June 30, 2004
(In Thousands)
ASSETS
Current Assets:
Cash and cash equivalents $62,673
Restricted funds for emergence costs 45,568
Restricted funds held in trust 113,349
Receivables - net 132,666
Unbilled services receivables 50,839
Deferred income taxes 6,538
Prepaid expenses and other current assets 73,591
----------
Total current assets 485,224
Property plant and equipment - net 906,179
Restricted funds held in trust 113,773
Other non-current receivables - net 13,653
Unbilled services receivables 98,260
Service and energy contracts - net 197,669
Unamortized contract acquisition costs - net -
Goodwill and other intangibles 992
Investments in and advances to investees 73,075
Other assets 33,934
----------
Total assets $1,922,759
==========
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Liabilities:
Current Liabilities:
Current portion of long-term debt $22
Current portion of project debt 106,629
Accounts payable 16,953
Federal Income Tax Payable 1,780
Accrued expenses 101,159
Accrued emergence costs 45,568
Deferred income 22,070
-----------
Total current liabilities 294,181
Long-term debt 320,531
Project debt 838,748
Deferred income taxes 213,541
Deferred income -
Other liabilities 111,140
Liabilities subject to compromise -
----------
Total Liabilities 1,778,141
Minority interests 83,614
----------
Shareholders' Equity (Deficit):
Successor Common stock -
Predecessor preferred stock -
Predecessor common stock -
Capital surplus 47,525
Notes receivable from key employees -
Retained Earnings (Deficit) 13,985
Accumulated other comprehensive loss (506)
----------
Total Shareholders' Equity (Deficit) 61,004
----------
Total Liabilities and Shareholders' Equity $1,922,759
==========
Covanta Energy Corporation And Subsidiaries -- Successor
Consolidated Statement of Operations
For the Three Months Ended June 30, 2004
(In Thousands)
Service revenues $123,936
Electricity and steam sales 55,739
Construction revenues 288
Other revenues-net 36
----------
Total revenues 179,999
----------
Plant operating expenses 108,975
Construction costs 225
Depreciation and amortization 16,904
Net interest on project debt 10,701
Other operating costs and expenses 616
Selling, general and administrative expenses 11,576
Other expense, net (42)
----------
Total costs and expenses 148,955
----------
Operating income 31,044
Equity in income from unconsolidated investments 5,252
Interest expense - net (10,001)
Reorganization items -
----------
Income (loss) from continuing operations before
income taxes and minority interests 26,295
Income tax expense (11,558)
Minority interests (1,733)
----------
Income (loss) from continuing operations before
discontinued operations 13,004
Gain from discontinued operations, net -
----------
Net income $13,004
==========
Covanta Energy Corporation And Subsidiaries -- Predecessor
Consolidated Cash Flow Statement
For the period January 1 through March 10, 2004
(In Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $29,563
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities
of Continuing Operations:
Gain on cancellation of prepetition debt (510,680)
Fresh start adjustments 214,927
Fresh start tax adjustments 214,756
Loss (gain) from discontinued operations -
Reorganization items 58,282
Payment of reorganization items (49,782)
Depreciation and amortization 13,426
Deferred income taxes (7)
Provision for doubtful accounts 852
Equity in income from unconsolidated investments (4,817)
Amortization of project debt premium & discount -
Accretion on principal of senior secured notes -
Cumulative effect of change in
accounting principles, net -
Other 2,268
Management of Operating Assets and Liabilities:
Decrease (Increase) in Assets:
Receivables 5,406
Restricted funds for emergence costs -
Unbilled service receivables -
Other assets (17,705)
Increase (Decrease) in Liabilities:
Accounts payable 3,853
Accrued expenses 17,730
Accrued emergence costs -
Deferred income 229
Other liabilities 1,437
----------
Net cash provided by operating activities
of continuing operations (20,262)
----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of businesses -
Proceeds from sale of Property, Plant & Equipment 86
Proceeds from sale of marketable securities
available for sale 87
Proceeds from sale of investment -
Investments in facilities (4,192)
Distributions from investees and joint ventures 6,401
Increase in investments in and advances to
investees and joint ventures (279)
Other -
----------
Net cash provided by investing activities
of continuing operations 2,103
----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings for facilities -
New borrowings -
Decrease(increase) in restricted
funds held in trust (96,742)
Payment of project debt (28,089)
Paymen of recourse debt (80,507)
Distributions to secured lenders and 9.25% holders 29,825
Proceeds from issuance of stock (530)
Distribution to minority partners 175
Proceeds from sale of minority interests -
----------
Net cash used in financing activities
of continuing operations (175,868)
----------
Net cash provided by discontinued operations -
----------
NET DECREASE IN CASH AND CASH EQUIVALENTS (194,027)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 260,902
----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $66,875
==========
Covanta Energy Corporation And Subsidiaries -- Successor
Consolidated Cash Flow Statement
For the period March 11 through June 30, 2004
(In Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $13,985
Adjustments to Reconcile Net Income to Net Cash
Provided by (Used In) Operating Activities
of Continuing Operations:
Gain on cancellation of prepetition debt -
Fresh start adjustments -
Fresh start tax adjustments -
Loss (gain) from discontinued operations -
Reorganization items -
Payment of reorganization items -
Depreciation and amortization 20,399
Deferred income taxes 5,568
Provision for doubtful accounts 768
Equity in income from unconsolidated investments (5,405)
Amortization of project debt premium & discount (4,152)
Accretion on principal of senior secured notes 1,035
Cumulative effect of change in
accounting principles, net -
Other 2,838
Management of Operating Assets and Liabilities:
Decrease (Increase) in Assets:
Receivables 4,778
Restricted funds for emergence costs 54,418
Unbilled service receivables 4,120
Other assets 5,767
Increase (Decrease) in Liabilities:
Accounts payable (6,618)
Accrued expenses (8,162)
Accrued emergence costs (54,418)
Deferred income (5,412)
Other liabilities (4,709)
----------
Net cash provided by (used in) operating
activities of continuing operations 24,800
----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of businesses -
Proceeds from sale of Property, Plant & Equipment 54
Proceeds from sale of marketable securities
available for sale -
Proceeds from sale of investment -
Investments in facilities (4,867)
Distributions from investees and joint ventures 6,996
Increase in investments in and advances to
investees and joint ventures -
Other 2,348
----------
Net cash provided by (used in) investing
activities of continuing operations 4,531
----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings for facilities 1,208
New borrowings -
Decrease (Increase) in restricted
funds held in trust (18,525)
Payment of project debt (5,866)
Payment of recourse debt (8,554)
Distributions to secured lenders and 9.25% holders -
Proceeds from issuance of stock -
Distribution to minority partners (1,796)
Proceeds from sale of minority interests -
----------
Net cash used in financing activities
of continuing operations (33,533)
----------
Net cash provided by discontinued operations -
----------
NET DECREASE IN CASH AND CASH EQUIVALENTS (4,202)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 66,875
----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $62,673
==========
A full-text copy of Covanta's Form 10-Q Report is available for
free at:
http://www.sec.gov/Archives/edgar/data/73902/000095013704006360/c87304e10vq.htm
Headquartered in Fairfield, New Jersey, Covanta Energy Corporation
-- http://www.covantaenergy.com/-- is a publicly traded holding
company whose subsidiaries develop, own or operate power
generation facilities and water and wastewater facilities in the
United States and abroad. The Company filed for Chapter 11
protection on April 1, 2002 (Bankr. S.D.N.Y. Case No. 02-40826).
Deborah M. Buell, Esq., and James L. Bromley, Esq., at Cleary,
Gottlieb, Steen & Hamilton represent the Debtors in their
restructuring efforts. When the Debtors filed for protection from
its creditors, they listed $3,280,378,000 in assets and
$3,031,462,000 in liabilities.
ENRON CORP: Wind Trust's June 2004 Monthly Cash Report
------------------------------------------------------
Wind Systems Trust
Combined Summary Report of Cash and Disbursements
For the Period June 1 to 30, 2004
Beginning Cash Balance $41,077,175
Total Cash Receipts 27,316,170
Total Cash Disbursements (27,128,168)
----------
Ending Cash Balance $41,265,177
==========
ZWHC, LLC, Consolidated
The Trust and its Subsidiaries
Combined Summary Report of Cash and Disbursements
For the Period June 1 to 30, 2004
Beginning Cash Balance $7,246,721
Total Cash Receipts 389,467
Total Cash Disbursements (422,197)
----------
Ending Cash Balance $7,213,991
=========
Wind Development Trust
Combined Summary Report of Cash and Disbursements
For the Period June 1 to 30, 2004
Beginning Cash Balance $19,788,800
Total Cash Receipts 574,442
Total Cash Disbursements (538,935)
----------
Ending Cash Balance $19,824,307
==========
Headquartered in Houston, Texas, Enron Corporation is in the midst
of restructuring various businesses for distribution as ongoing
companies to its creditors and liquidating its remaining
operations. Before the company agreed to be acquired, controversy
over accounting procedures had caused Enron's stock price and
credit rating to drop sharply. The Company filed for chapter 11
protection on December 2, 2001 (Bankr. S.D.N.Y. Case No.: 01-
16033) Martin J. Bienenstock, Esq., and Brian S. Rosen, Esq., at
Weil, Gotshal & Manges, LLP, represent the Debtors in their
restructuring efforts. (Enron Bankruptcy News, Issue No. 121;
Bankruptcy Creditors' Service, Inc., 215/945-7000)
EXIDE TECH: Posts $1.7 Billion Combined 2nd Quarter Net Income
--------------------------------------------------------------
Exide Technologies (NASDAQ: XIDE), a global leader in stored
electrical energy solutions, reported financial results for the
first quarter of fiscal 2005 ended June 30, 2004.
As a result of the Company's emergence from Chapter 11 on May 5,
2004, financial results for the quarter are split between
"Successor Company" and "Predecessor Company." For the period
April 1 to May 5, 2004, Exide (Predecessor Company) reported net
income of $1.749 billion, including an extraordinary gain from
the discharge of liabilities of $1.56 billion, related Fresh
Start accounting adjustments of $228.4 million and reorganization
costs associated with the bankruptcy of $18.4 million. For the
period May 6 to June 30, 2004, Exide (Successor Company) reported
net income of $33.6 million, including a non-cash gain of $43.6
million from the mark-to-market of warrants issued as part of the
Company's Plan of Reorganization and reorganization costs of $1.7
million.
For purposes of the presentation of results of operations, unless
otherwise indicated, the results of the Predecessor Company for
the period April 1, 2004 through May 5, 2004 have been combined
with the results of the Successor Company for the period
subsequent to emergence.
Combined consolidated net income for the quarter was $1.782
billion, including the extraordinary gain from the discharge of
liabilities of $1.56 billion, related Fresh Start accounting
adjustments of $228.4 million and reorganization costs associated
with the bankruptcy of $20.1 million. First quarter results also
included the non-cash gain of $43.6 million from the mark-to-
market of warrants issued by the Company. Excluding
reorganization items and the mark-to-market gain, higher lead
prices in the quarter, which were partially offset by higher
average selling prices and cost reductions, negatively affected
earnings.
Consolidated net sales for the first quarter of fiscal 2005 rose
nearly 5% to $612.5 million from $584.6 million in the first
quarter of fiscal 2004, largely due to favorable currency
exchange rates and the effect of pricing actions.
"We have made continued progress this quarter executing our
restructuring and strategic growth initiatives," said Craig H.
Muhlhauser, President and Chief Executive Officer of Exide
Technologies. "We are focused on strengthening Exide's position
as an industry leader and creating long-term value for our
shareholders. The Company remains committed to successfully
implementing our restructuring plans while improving our
operating cash flow, driving cost reductions, improving quality,
developing new business and mitigating the impact of increasing
lead prices on our financial results. Key to our success is
Exide's employee commitment to delivering innovative technologies
and products and superior service and solutions to our customers
worldwide. We have the financial foundation in place to support
our future growth and profitability."
As previously stated, results for the first fiscal quarter of 2005
reflect the implementation of Fresh Start accounting in accordance
with the Company's emergence from Chapter 11. Adopting Fresh Start
reporting has resulted in material adjustments to the historical
carrying values of the Company's assets and liabilities, and has
required the Company to allocate the reorganization value to its
assets based upon estimated fair values. The Company's Form 10-Q,
being filed with the U.S. Securities and Exchange Commission,
provides a discussion of the effects of Fresh Start accounting on
earnings.
Transportation Business
For its Transportation business, the Company reported income of
$10.4 million before reorganization items, income taxes, minority
interest and cumulative effect of change in accounting principle
compared to $23.8 million in the first quarter of fiscal 2004.
The reduction in reported income was principally attributable to
the impact of higher lead costs and Fresh Start accounting
adjustments affecting depreciation and inventory.
Net sales were $377.9 million for the first fiscal quarter of
fiscal 2005 compared to $357.3 million for the same period in
fiscal 2004. Currency effects improved Transportation net sales
in the first quarter of fiscal 2005 by approximately $10.8
million. The remaining change in net sales was due to higher
average selling prices and third-party lead sales.
Transportation revenues in North America declined slightly due to
reduced unit volumes, principally in the aftermarket channel,
while European volumes declined slightly in the original equipment
channel. Average selling prices for the first quarter of fiscal
2005 were higher than the first quarter of fiscal 2004, primarily
from the effect of lead-related pricing adjustments.
Industrial Energy Business
For the Industrial Energy business, the Company reported income of
$10.4 million before reorganization items, income taxes, minority
interest and cumulative effect of change in accounting principle
compared to $14.0 million in the first quarter of the previous
fiscal year.
Net sales were $234.7 million for the first quarter of fiscal 2005
compared to $227.3 million for the same period in fiscal 2004.
Currency positively impacted Industrial Energy net sales in the
first quarter of fiscal 2005 by approximately $11 million. Lower
telecommunication market volumes in Asia and competitive pricing
pressures in Europe, within both the original equipment and
aftermarket channels were partially offset by higher forklift
battery volumes in North America and Europe.
Lead Pricing
During the quarter, the average price of lead, which comprises
approximately one-third of the Company's cost of goods sold, was
EUR674 ($813 USD) per metric tonne on the London Metal Exchange
versus the prior year first quarter average of EUR402 ($456 USD)
per metric tonne. Exide continues to implement programs to help
mitigate the impact of higher and volatile prices for lead on both
segments of the Company's business. The adverse impact of these
higher lead prices on cost of goods sold for the first quarter was
approximately $25 million. The Company estimates that it
recovered approximately 50-60% of these higher lead costs through
pricing and related actions during the first quarter of fiscal
2005. Cost of goods sold was also negatively impacted from higher
depreciation and the step-up of inventories due to Fresh Start
reporting by approximately $3.0 million and $2.6 million
respectively. The Company's initiatives for reducing the impact
of higher lead prices on earnings and cash flow include selective
pricing actions, programs to secure higher return rates on spent
batteries from customers and hedging strategies.
About Exide Technologies
Exide Technologies, with operations in 89 countries and fiscal
2004 net sales of approximately $2.5 billion, is one of the
world's largest producers and recyclers of lead-acid batteries.
The Company's two global business groups -- industrial energy and
transportation -- provide a comprehensive range of stored
electrical energy products and services for industrial and
transportation applications. Transportation markets include
original-equipment and aftermarket automotive, heavy-duty truck,
agricultural and marine applications, and new technologies for
hybrid vehicles and 42-volt automotive applications. Industrial
markets include network power applications such as
telecommunications systems, fuel-cell load leveling, electric
utilities, railroads, photovoltaic (solar-power related) and
uninterruptible power supply (UPS), and motive-power applications
including lift trucks, mining and other commercial vehicles.
Further information about Exide, including its financial results,
is available at http://www.exide.com
A full-text copy of Exide Technologies' financial results for the
period ending June 30, 2004 is available for free at:
http://www.sec.gov/Archives/edgar/data/813781/000119312504138759/d10q.htm
Exide Technologies and Subsidiaries
Unaudited Condensed Consolidated Balance Sheets
As of June 30, 2004
(in thousands)
Assets
Current Assets:
Cash and cash equivalents $42,973
Restricted cash 2,581
Receivables (net of allowance of doubtful accounts) 625,936
Inventories 434,603
Prepaid expense 20,512
Deferred financing costs, net -
Deferred income taxes 34,410
----------
Total current assets 1,161,015
----------
Property Plant & Equipment, net 814,900
----------
Goodwill, net 399,388
Other intangibles, net 197,843
Deferred financing costs -
Deferred income taxes 95,768
Investment in subsidiaries & affiliates 7,175
Other assets 34,825
----------
734,999
----------
Total Assets $2,710,914
==========
Liabilities & Stockholder's Equity
Current liabilities:
Accounts payable $285,185
Accrued expenses 367,700
Current maturities of long-term debt 3,748
Short term borrowings 11,181
Warrants liability 30,688
----------
Total current liabilities 698,502
Long-term debt 540,720
Non-current retirement obligations 319,214
Non-current deferred tax liability 111,650
Other non-current liabilities 112,628
Liabilities Subject to Compromise -
----------
Total Liabilities 1,782,714
----------
Minority interest 12,236
----------
Stockholders' equity:
Common stock 234
Paid in capital 888,157
Retained Earnings 33,627
Notes receivable-stock award plan -
Accumulated other comprehensive loss (6,054)
----------
Total Stockholder's Equity 915,964
----------
Total Liabilities & Stockholder's Equity $2,710,914
==========
Exide Technologies and Subsidiaries -- Predecessor Company
Unaudited Condensed Consolidated Statements of Operations
April 1, 2004 to May 5, 2004
(in thousands)
Net Sales $214,607
Cost of Sales 179,137
----------
Gross Profit 35,470
Operating Expenses:
Selling, marketing and advertising 24,504
General and administrative 17,940
Restructuring and other 602
Purchased research and development -
Goodwill impairment charge -
Other (income) expense, net 6,222
Interest expense, net 8,870
----------
58,138
----------
Income before reorganization items, income tax,
minority interest and cumulative effect of change
in accounting principle (22,668)
Reorganization Items 18,434
Fresh start accounting adjustment, net (228,371)
Gain on Discharge of
liabilities subject to compromise (1,558,839)
Income tax (benefit) provision (2,482)
Minority interest 26
----------
Net income before change in accounting principle 1,748,564
Cumulative effect of change in accounting principle -
----------
Net Income $1,748,564
==========
Exide Technologies and Subsidiaries -- Successor Company
Unaudited Condensed Consolidated Statements of Operations
May 6, 2004 to June 30, 2004
(in thousands)
Net Sales $397,928
Cost of Sales 333,129
----------
Gross Profit 64,799
Operating Expenses:
Selling, marketing and advertising 41,288
General and administrative 23,389
Restructuring and other 2,447
Purchased research and development -
Goodwill impairment charge -
Other (income) expense, net (42,876)
Interest expense, net 6,026
----------
30,274
----------
Income before reorganization items, income tax,
minority interest and cumulative effect of change
in accounting principle 34,525
Reorganization Items 1,693
Income tax (benefit) provision (828)
Minority interest 33
----------
Net income before change in accounting principle 33,627
Cumulative effect of change in accounting principle -
----------
Net Income $33,627
==========
Exide Technologies and Subsidiaries -- Predecessor Company
Unaudited Condensed Consolidated Statements Of Cash Flows
April 1, 2004 to May 5, 2004
(in thousands)
Cash Flows From Operating Activities:
Net income $1,748,564
Adjustments to reconcile net loss:
Depreciation and amortization 7,848
Net loss (gain) on asset sales -
Effect of change in accounting principle -
Amortization of original issue discount on notes -
Gain on discharge of liabilities subject to
compromise (1,558,839)
Fresh start accounting adjustments, net (228,371)
Provision for doubtful accounts 473
Non-cash provision for restructuring 18
Reorganization items, net 18,434
Goodwill impairment charge -
Minority interest 26
Amortization of deferred financing costs 1,251
Net change from sales of receivables:
European securitization -
U.S. securitization -
Other, net -
Changes in assets and liabilities:
Receivables 45,924
Inventories (10,873)
Prepaid expenses 286
Accounts payable (20,967)
Accrued expenses (20,564)
Non-current liabilities (294)
Other, net 9,898
----------
Net cash used in operating activities (7,186)
Cash Flows From Investing Activities:
Capital expenditures (7,152)
Proceeds from sales of assets 2,800
----------
Net cash used in investing activities (4,352)
Cash Flows From Financing Activities:
Increase (decrease) in short-term borrowings, net 2,425
Borrowings under DIP Credit Facility -
Repayments under DIP Credit Facility -
Repayments under 9.125% Senior Notes (110,082)
Borrowings under Replacement DIP Credit Facility 121,258
Repayments under Replacement DIP Credit Facility (452,875)
Borrowings under Senior Secured Credit Facility 500,000
European asset securitization -
Decrease in other debt (2,412)
Financing costs (23,146)
Dividends paid -
----------
Net cash provided by financing activities 35,168
----------
Effect of Exchange Rate Changes on Cash (1,447)
----------
Net Increase (Decrease) In Cash 22,183
Cash And Cash Equivalents, Beginning Of Period 37,413
----------
Cash And Cash Equivalents, End Of Period $59,596
==========
Exide Technologies and Subsidiaries -- Successor Company
Unaudited Condensed Consolidated Statements Of Cash Flows
May 6, 2004 to June 30, 2004
(in thousands)
Cash Flows From Operating Activities:
Net income $33,627
Adjustments to reconcile net loss:
Depreciation and amortization 21,699
Net loss (gain) on asset sales -
Effect of change in accounting principle -
Unrealized gain on Warrants (43,612)
Provision for doubtful accounts 590
Non-cash provision for restructuring 84
Reorganization items, net 1,693
Goodwill impairment charge -
Minority interest 33
Amortization of deferred financing costs -
Net change from sales of receivables:
European securitization -
U.S. securitization -
Other, net -
Changes in assets and liabilities:
Receivables (5,781)
Inventories (17,317)
Prepaid expenses 572
Accounts payable 3,576
Accrued expenses (3,536)
Non-current liabilities (588)
Other, net (6,849)
----------
Net cash used in operating activities (15,809)
Cash Flows From Investing Activities:
Capital expenditures (8,332)
Proceeds from sales of assets 3,600
----------
Net cash used in investing activities (4,732)
Cash Flows From Financing Activities:
Increase (decrease) in short-term borrowings, net 376
Increase in other debt 2,776
Financing costs -
Dividends paid -
----------
Net cash provided by financing activities 3,152
----------
Effect of Exchange Rate Changes on Cash 766
----------
Net Increase (Decrease) In Cash (16,623)
Cash And Cash Equivalents, Beginning Of Period 59,596
----------
Cash And Cash Equivalents, End Of Period $42,973
==========
HAYES LEMMERZ: Creditor Trust Releases 2nd Quarter 2004 Results
---------------------------------------------------------------
HLI Creditor Trust
Unaudited Cash Balance Sheet
As of June 30, 2004
Assets:
Cash $5,988,667
Liabilities:
Trust Expenses Reserve, net 5,988,667
Expense advance account 0
Reimbursements to Reorganized Debtors account 0
Claimholder distribution reserve 0
----------
$5,988,667
==========
HLI Creditor Trust
Unaudited Statement of Cash Receipts and Disbursements
Period from June 3, 2003 through May 31, 2004
Cash Receipts:
Funding of Expense Advance $1,250,000
Trust Recoveries 10,414,021
Interest Income 5,739
----------
11,669,760
----------
Cash Disbursements:
Repayment of expense advance (1,250,000)
Trust Expenses (4,659,175)
----------
(5,909,175)
----------
Net increase (decrease) in cash 5,760,585
Cash at beginning of period -
----------
Cash at end of period $5,760,585
==========
HLI Creditor Trust
Unaudited Statement of Cash Receipts and Disbursements
For the Period April 1, 2004 through June 30, 2004
Cash Receipts:
Funding of Expense Advance $0
Trust Recoveries 7,500,065
Interest Income 4,208
----------
7,504,273
----------
Cash Disbursements:
Repayment of expense advance (1,250,000)
Reimbursements to Reorganized
Debtors (0)
Distributions to beneficiaries (0)
Trust Expenses (2,874,917)
----------
(4,124,917)
----------
Net increase (decrease) in cash 3,379,356
Cash at beginning of period 2,609,311
----------
Cash at end of period $5,988,667
==========
INSILCO HOLDING: Reports $13.2 Million in Assets at June 30
-----------------------------------------------------------
For the month ending June 30, 2004, Insilco Holding Co., reports
no income and no expenses. At June 30, 2004, on a consolidated
basis, Insilco reports $13.2 million in total assets, $51.7
million in current liabilities and $211.9 million in long-term
debt.
A full-text copy of Insilco's June 2004 Monthly Operating Report
is available at no charge at:
http://www.sec.gov/Archives/edgar/data/1068049/000107261304001457/exhibit99_12884.txt
Insilco International Holding Company is a holding company and
Signal Caribe is a non-operating company and thus there is no
activity to report for these two companies.
The following companies were sold in March 2003 and thus have no
activity for the current or future reporting periods:
Precision Cable Manufacturing 02-13675
Stewart Stamping Corporation 02-13678
EFI Metal Forming, Inc. 02-13677
Eyelets for Industry, Inc. 02-13676
Stewart Connector Systems 02-13679
Signal Transformer Co. Inc. 02-13681
InNet Technologies 02-13673
On December 16, 2002, Insilco Holding Co., the parent Company of
Insilco Technologies, Inc., and seven of its subsidiaries (Insilco
International Holding, Inc., Precision Cable Mfg. Co. Inc.,
Stewart Stamping Corporation, InNet Technologies, Inc., Stewart
Connector Systems, Inc., Eyelets For Industry, Inc., and its
subsidiary EFI Metal Forming, Inc., and Signal Transformer Co.,
Inc., and its subsidiary Signal Caribe, Inc.) filed voluntary
petitions for relief under Chapter 11 of the United States
Bankruptcy Code with the United States Bankruptcy Court for the
District of Delaware, Case No. 02-13672.
MARINER: Reports $3.3 Million Second Quarter 2004 Net Income
------------------------------------------------------------
Mariner Health Care, Inc. (OTC Bulletin Board: MHCA) announced net
income for the 2004 second quarter of $3.4 million as compared to
a net loss of ($1.7) million for the comparable 2003 period.
Revenues decreased $14.8 million, or 3.5% to $411.8 million from
$426.6 million for the same period last year, primarily due to
facilities divested during the three months ended December 31,
2003. For facilities operated at June 30, 2004, revenues
increased 9.4% to $411.6 million from $376.2 million for the
three months ended June 30, 2003. Mariner achieved a significant
improvement in Adjusted EBITDA (earnings before interest, taxes,
depreciation and amortization, and certain divestiture and merger
related items) to $27.1 million for the second quarter ended
June 30, 2004 as compared to $14.7 million for the same period in
2003.
Six Month Results
Consolidated revenues for the six months ended June 30, 2004
decreased 3.5% to $817.9 million from $847.1 million for the
comparable 2003 period. The decrease in revenues is primarily
related to the divestiture of facilities during the fourth
quarter of 2003. Mariner recorded net income of $9.6 million for
the six months ended June 30, 2004 as compared to net income of
$1.1 million for the comparable 2003 period. Adjusted EBITDA was
$52.8 million for the six months ended June 30, 2004, as compared
to $32.5 million for the comparable 2003 six-month period. Our
average per diem rate for Medicare Part A for same facility
operations increased 8.9%, from $298.13 in the six months ended
June 30, 2003 to $324.77 for the six months ended June 30, 2004.
This resulted in increased revenues of $17.6 million.
Operating Commentary
As a percentage of total revenues, same facility Medicare
revenues grew slightly, increasing to 32.3% for the second
quarter of 2004 from 32.1% for the same period in 2003. Same
facility Medicare revenues associated with Mariner's skilled
nursing and long-term acute care hospital segments accounted for
25.7% and 6.5% of total revenues, respectively, for the second
quarter of 2004 compared to 25.6% and 6.4% of total revenues,
respectively for the second quarter of 2003.
"Our operational focus continued to yield results during the
quarter," said C. Christian Winkle, Chief Executive Officer.
"For the second quarter of 2004, our Adjusted EBITDA margin
improved to 6.6% from 3.4% from the same period last year.
Furthermore, profitability of both our skilled nursing facility
and long-term acute care hospital groups continued to show
improvement during the quarter. These improvements reflect the
continued success of our operational strategies."
Merger Agreement
On June 29, 2004, the Company entered into a merger
agreement with National Senior Care, Inc. and NCARE Acquisition
Corp., a wholly owned subsidiary of NSC established for the
purpose of acquiring the Company. Pursuant to the Merger
Agreement, NCARE will acquire the issued and outstanding shares of
common stock of the Company for $30.00 per share in cash. The
merger is expected to close in the fourth quarter of 2004 and is
subject to various conditions contained in the Merger Agreement,
including but not limited to the approval of the stockholders of
the Company, receipt of financing by NSC and other regulatory,
governmental and licensing approvals. Once the Company receives a
commitment letter from NSC and NCARE containing customary terms in
connection with the financing necessary to consummate the merger,
the Company expects to seek stockholder approval of the merger.
About Mariner Health Care
Mariner, headquartered in Atlanta, Georgia, is one of the
largest long-term care operators in the United States. Mariner,
through its subsidiaries and affiliates, operates 256 skilled
nursing and assisted living facilities as well as eleven long-
term acute care hospitals representing 31,399 beds across the
country. Additional Company information is available at
http://www.marinerhealthcare.com
A full-text copy of Mariner's third quarter results filed on Form
10-Q with the Securities and Exchange Commission is available for
free at:
http://www.sec.gov/Archives/edgar/data/882287/000095014404007875/g90284e10vq.htm
Mariner Health Care, Inc.
Condensed Consolidated Balance Sheets
At June 30, 2004
(in thousands)
Assets
Current assets
Cash and cash equivalents $26,815
Receivables, net of allowance for doubtful
accounts of $102,213 and $97,448 239,912
Prepaid expenses and other current assets 21,887
----------
Total current assets 288,614
Property and equipment, net 535,946
Reorganization value 192,771
Goodwill, net of accumulated amortization of $970 6,797
Restricted investments 17,397
Other assets 35,804
----------
Total Assets $1,077,329
==========
Liabilities and Stockholders' Equity
Current liabilities
Current maturities of long-term debt $17,381
Accounts payable 45,961
Accrued compensation and benefits 66,945
Accrued insurance obligations 72,312
Other current liabilities 53,147
----------
Total current liabilities 255,746
Long-term debt, net of current maturities 367,107
Long-term insurance reserves 160,218
Other liabilities 25,253
Minority interest 3,355
----------
Total liabilities 811,679
Stockholders' equity
Preferred stock -
Common stock 200
Warrants to purchase common stock -
Capital surplus 361,094
Unearned compensation (403)
Accumulated deficit (95,265)
Accumulated other comprehensive income 24
----------
Total stockholders' equity 265,650
----------
Total Liabilities and Stockholders' Equity $1,077,329
==========
Mariner Health Care, Inc.
Condensed Consolidated Statements of Operations
For The Three Months Ended June 30, 2004
(in thousands)
Net revenue $411,772
Costs and expenses
Operating expenses
Wage and related costs 231,162
Supplies 23,012
Insurance 16,772
Provision for bad debt 3,822
Rent expense 8,092
Other 74,462
----------
Total operating expenses 357,322
General and administrative 27,344
Merger related costs 2,142
Depreciation and amortization 10,618
----------
Total costs and expenses 397,426
----------
Operating income 14,346
Other income (expenses):
Interest expense (8,489)
Interest income 739
Other (31)
(Loss) Income from continuing operations before taxes 6,565
(Benefit) provision for income taxes 732
----------
(Loss) income from continuing operations 5,833
Discontinued operations
(Loss) gain on sale of discontinued
operations, net of tax (709)
Loss from discontinued operations, net of tax (1,772)
----------
Net income (loss) $3,352
==========
Mariner Health Care, Inc.
Condensed Consolidated Statement of Cash Flows
Six Months Ended June 30, 2004
(in thousands)
Cash flows from operating activities
Net income $9,579
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for bad debts 7,126
Gain from divestitures and sales (1,828)
Depreciation and amortization 20,275
Amortization of deferred financing costs 981
Stock compensation 231
Minority interest and other 36
Provision (benefit) for income taxes 1,627
Loss from discontinued operations 2,088
Changes in operating assets and liabilities:
Receivables (15,274)
Prepaid expenses and other current assets 3,422
Accounts payable (23,589)
Accrued and other current liabilities 11,497
Insurance obligations (12,909)
Other (5,760)
----------
Net cash (utilized) provided by operating
activities from continuing operations
before reorganization items (2,498)
----------
Net cash utilized by discontinued operations (2,093)
----------
Payment of reorganization items, net (3,416)
Cash flows from investing activities
Purchases of property and equipment (16,436)
Proceeds from divestitures and sales 7,737
Restricted investments 1,590
Collections on notes receivable 5,145
Insurance proceeds -
----------
Net cash utilized by investing activities (1,964)
Cash flows from financing activities
Repayment of long-term debt (5,148)
----------
Net cash utilized by financing activities (5,148)
(Decrease) increase in cash and cash equivalents (15,119)
Cash and cash equivalents, beginning of period 41,934
----------
Cash and cash equivalents, end of period $26,815
==========
MIRANT CORP: Reports $32 Million Net Income for Second Quarter
--------------------------------------------------------------
Mirant Corporation and Subsidiaries
Unaudited Consolidated Balance Sheet
As of June 30, 2004
ASSETS
Cash and cash equivalents $1,274,000,000
Funds on deposit 304,000,000
Receivables, net 1,092,000,000
Price risk management assets 150,000,000
Inventories 300,000,000
Other 266,000,000
---------------
Total Current Assets 3,386,000,000
Property, plant and equipment, net 6,567,000,000
Non-current Assets:
Goodwill, net of amortization 587,000,000
Other intangible assets, net 275,000,000
Investments 245,000,000
Notes and other receivables 0
Price risk management assets 132,000,000
Other 463,000,000
---------------
Total Non-current Assets 1,702,000,000
---------------
TOTAL ASSETS $11,655,000,000
===============
LIABILITIES AND EQUITY
Current Liabilities:
Short-term debt $25,000,000
Current portion of long-term debt 202,000,000
Accounts payable and accrued liabilities 488,000,000
Price risk management liabilities 248,000,000
Transition power agreements 125,000,000
Other 257,000,000
---------------
Total current liabilities 1,345,000,000
Non-current Liabilities:
Long-term debt 1,261,000,000
Price risk management liabilities 123,000,000
Transition power agreements 8,000,000
Other 690,000,000
---------------
Total Non-current liabilities 2,082,000,000
Liabilities subject to compromise 8,816,000,000
Minority interest in subsidiaries 165,000,000
Stockholders' Equity:
Common stock 4,000,000
Additional paid-in capital 4,918,000,000
Accumulated deficit (5,617,000,000)
Accumulated other comprehensive loss (56,000,000)
Treasury stock, at cost (2,000,000)
---------------
TOTAL STOCKHOLDERS' DEFICIT (753,000,000)
---------------
TOTAL LIABILITIES & STOCKHOLDERS DEFICIT $11,655,000,000
===============
Mirant Corporation and Subsidiaries
Unaudited Consolidated Statements of Income
For the three months ended June 30, 2004
REVENUES:
Generation $1,126,000,000
Integrated utilities and distribution 136,000,000
Net trading revenue 2,000,000
---------------
Total Operating Revenues 1,264,000,000
Cost of fuel, electricity and other products 768,000,000
---------------
Gross Margin 496,000,000
---------------
OPERATING EXPENSES:
Operations and maintenance 251,000,000
Depreciation and amortization 77,000,000
Impairment losses and restructuring charges 53,000,000
Gain on sale of assets, net 1,000,000
---------------
Total Operating Expenses 382,000,000
---------------
Income before non-operating income
and expense 114,000,000
OTHER INCOME AND EXPENSES:
Interest expense (33,000,000)
Interest rate hedging losses 0
Gain on sales of investments, net 0
Equity in income of affiliates 7,000,000
Other, net 2,000,000
Minority interest 0
Interest income 2,000,000
---------------
Total other expense, net 11,000,000
Income from continuing operations before taxes 125,000,000
Provision for income taxes 73,000,000
Reorganization items, net 13,000,000
Minority interest 7,000,000
---------------
Income from continuing operations 32,000,000
Income(loss) from discontinued operations, net 0
---------------
Loss before change in accounting principle 32,000,000
---------------
NET INCOME $32,000,000
===============
Mirant Corporation and Subsidiaries
Unaudited Consolidated Statements of Cash Flows
For the six months ended June 30, 2004
Cash Flows from Operating Activities:
Net income $62,000,000
Adjustments:
Equity in income of affiliates (14,000,000)
Dividends received from equity investments 12,000,000
Change in accounting principles 0
Restructuring charges 48,000,000
Gain on sale of assets and investments (15,000,000)
Depreciation and amortization 161,000,000
Amortization of power agreements (236,000,000)
Non-cash changes for reorganization items 91,000,000
Amortization of transition power agreements 0
Price risk management activities, net (66,000,000)
Deferred income taxes 5,000,000
Minority interest 12,000,000
Interest rate hedging losses 0
Other, net 4,000,000
Change in operating assets and liabilities:
Receivables, net 113,000,000
Other current assets (117,000,000)
Other assets (12,000,000)
Accounts payable and accrued liabilities (303,000,000)
Taxes accrued 19,000,000
Other current liabilities 8,000,000
Other liabilities (23,000,000)
---------------
Total adjustments (313,000,000)
---------------
Net cash provided by operating activities (251,000,000)
---------------
Cash Flows from Investing Activities:
Capital expenditures (60,000,000)
Cash paid for acquisitions (21,000,000)
Issuance of notes receivable 0
Repayments on notes receivable 1,000,000
Proceeds from the sale of assets 3,000,000
Cash paid in relation to disposition (12,000,000)
---------------
Net cash provided by investing activities (89,000,000)
---------------
Cash Flows from Financing Activities:
Proceeds from issuance of debt 132,000,000
Repayment of long-term debt (101,000,000)
Payment dividends to minority interests (7,000,000)
Issuance of short-term debt, net (3,000,000)
Change in debt service reserve fund 4,000,000
---------------
Net cash from financing activities 25,000,000
---------------
Exchange rate effect on cash 0
---------------
Net increase in cash (315,000,000)
Cash, beginning of period 1,589,000,000
---------------
Cash, end of period $1,274,000,000
===============
A full-text copy of Mirant Corporation's Form 10-Q Report is
available at no charge at:
http://www.sec.gov/Archives/edgar/data/1010775/000104746904025860/a2141502z10-q.htm
Headquartered in Atlanta, Georgia, Mirant Corporation --
http://www.mirant.com/-- together with its direct and indirect
subsidiaries, generate, sell and deliver electricity in North
America, the Philippines and the Caribbean. The Company filed for
chapter 11 protection on July 14, 2003 (Bankr. N.D. Tex.
03-46590). Thomas E. Lauria, Esq., at White & Case LLP represent
the Debtors in their restructuring efforts. When the Company
filed for protection from their creditors, they listed
$20,574,000,000 in assets and $11,401,000,000 in debts. (Mirant
Bankruptcy News, Issue No. 41; Bankruptcy Creditors' Service,
Inc., 215/945-7000)
PACIFIC GAS: PG&E Reports $412 Million 2nd Quarter Net Income
-------------------------------------------------------------
A full-text copy of Pacific Gas and Electric Company's second
quarter results on Form 10-Q is available for free at the
Securities and Exchange Commission at:
http://www.sec.gov/Archives/edgar/data/75488/000100498004000189/pge10q_q2.htm
Pacific Gas and Electric Company
Unaudited Consolidated Balance Sheets
At June 30, 2004
(in millions)
ASSETS
Current Assets:
Cash and cash equivalents $553
Restricted cash 2,144
Accounts receivable:
Customers (net of allowance for
doubtful accounts) 2,034
Related parties 3
Regulatory balancing accounts 817
Inventories:
Gas stored underground and fuel oil 160
Materials and supplies 127
Prepaid expenses and other 40
----------
Total current assets 5,878
Property, Plant and Equipment:
Electric 20,924
Gas 8,465
Construction work in progress 388
----------
Total property, plant and equipment 29,777
Accumulated depreciation and decommissioning (11,238)
----------
Net property, plant and equipment 18,539
Other Non-current Assets:
Regulatory assets 6,811
Nuclear decommissioning funds 1,522
Other 1,041
----------
Total other non-current assets 9,374
----------
TOTAL ASSETS $33,791
==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities Not Subject to Compromise:
Current Liabilities:
Long-term debt, classified as current $458
Current portion of rate reduction bonds 290
Accounts payable:
Trade creditors 528
Disputed claims:
Related parties 45
Regulatory balancing accounts 315
Other 453
Interest payable 420
Income taxes payable 332
Deferred income taxes 106
Other 768
----------
Total current liabilities 5,863
Non-current Liabilities:
Long-term debt 7,845
Rate reduction bonds 729
Regulatory liabilities 3,997
Asset retirement obligations 1,259
Deferred income taxes 3,423
Deferred tax credits 123
Preferred stock with redemption provisions 126
Other 1,784
----------
Total non-current liabilities 19,286
Liabilities Subject to Compromise:
Financing debt -
Trade creditors -
----------
Total liabilities subject to compromise -
Commitments and Contingencies -
Shareholders' Equity
Preferred Stock With Mandatory Redemption Provisions:
Non-redeemable, 5% to 6%,
outstanding 5,784,825 shares 145
Redeemable, 4.36% to 7.04%, outstanding 5,973,456 149
Common stock, $5 par value, authorized
800,000,000 shares, issued 321,314,760 shares 1,606
Common stock held by subsidiary, at cost, 19,481,213 (475)
Additional pad-in capital 2,040
Reinvested earnings 5,180
Accumulated other comprehensive loss (3)
----------
Total Shareholders' Equity 8,642
----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $33,791
==========
Pacific Gas and Electric Company
Unaudited Consolidated Statements of Operations
Three months ended June 30, 2004
(in millions)
Operating Revenues:
Electric $2,063
Natural gas 686
----------
Total operating revenues 2,749
Operating Expenses:
Cost of electricity 685
Cost of natural gas 278
Operating and maintenance 748
Recognition of regulatory assets -
Depreciation, amortization, and decommissioning 352
Reorganization professional fees and expenses 4
----------
Total operating (gain) expenses 2,067
----------
Operating Income 682
Reorganization interest income -
Interest income 23
Interest expense (non-contractual interest of
$31 million in 2004 and $67 million in 2003) (158)
Other income (expense), net 24
----------
Income (loss) Before Income Taxes 571
Income tax provision (benefit) 159
----------
Income (loss) Before Cumulative Effect of
Changes in Accounting Principles 412
Cumulative Effect of changes in
acctg principles, net -
----------
Net Income (loss) $412
==========
Pacific Gas and Electric Company
Unaudited Consolidated Statements of Cash Flows
Six months ended June 30, 2004
(in millions)
Cash Flows From Operating Activities:
Net income (loss) $3,486
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation, amortization, and decommissioning 650
Recognition of regulatory assets (4,900)
Deferred income taxes and tax credits, net 2,105
Other deferred charges and non-current liabilities 79
Gain on sale of assets (18)
Cumulative effect of a change in acctg principle -
Net effect of changes in operating assets & liabilities:
Restricted cash 93
Accounts receivable (35)
Inventories 5
Accounts payable 170
Accrued taxes 288
Regulatory balancing accounts, net (440)
Other working capital 287
Payments authorized by the Bankruptcy Court on
amounts classified as liabilities
subject to compromise (737)
Other, net (128)
----------
Net cash provided by operating activities 620
Cash Flows From Investing Activities:
Capital expenditures (737)
Proceeds from sale of assets 25
Increase in restricted cash (1,834)
Other, net (54)
----------
Net cash used by investing activities (2,600)
Cash Flows From Financing Activities:
Net proceeds from issuance of long-term debt 6,892
Long-term debt matured, redeemed, or repurchased (7,098)
Rate reduction bonds matured (141)
Dividends paid (88)
Preferred stock with
mandatory redemption provisions redeemed (11)
----------
Net cash provided (used) by financing activities (446)
Net change in cash and cash equivalents (2,426)
Cash and cash equivalents at January 1, 2004 2,979
----------
Cash and cash equivalents at March 31, 2004 $553
==========
Headquartered in San Francisco, California, Pacific Gas and
Electric Company -- http://www.pge.com/-- a wholly owned
subsidiary of PG&E Corporation (NYSE:PCG), is one of the largest
combination natural gas and electric utilities in the United
States. The Company filed for Chapter 11 protection on April 6,
2001 (Bankr. N.D. Calif. Case No. 01-30923). James L. Lopes,
Esq., William J. Lafferty, Esq., and Jeffrey L. Schaffer, Esq., at
Howard, Rice, Nemerovski, Canady, Falk & Rabkin represent the
Debtors in their restructuring efforts. On June 30, 2001, the
Company listed $23,216,000,000 in assets and $22,152,000,000 in
debts. Pacific Gas and Electric emerged from chapter 11
protection on April 12, 2004, paying all creditors 100 cents-on-
the-dollar plus post-petition interest. (Pacific Gas Bankruptcy
News, Issue No. 81; Bankruptcy Creditors' Service, Inc., 215/945-
7000)
SK GLOBAL: SK Corp. Releases First Half of 2004 Financial Results
-----------------------------------------------------------------
SK Corporation
Balance Sheet
As of June 30, 2004
(in Korean won)
Assets 15,102,800,000,000
Liabilities 9,197,700,000,000
(Debt) (5,305,300,000,000)
------------------
Shareholders' Equity 5,905,100,000,000
(Paid-in Capital) (647,000,000,000)
------------------
Debt/Equity (%) 155.8%
------------------
Net Debt to Equity (%) 92.5%
==================
SK Corporation
Non-Operating Income/Expenses
For the first half of 2004
(in Korean won)
Net Interest Expense (120,400,000,000)
Net F/X Related 79,000,000,000
Equity Method Gain 363,000,000,000
Others (53,300,000,000)
------------------
Net Non-Operating Income 268,300,000,000
==================
SK Corporation
Sales & Profit
For the first half of 2004
(in Korean won)
Sales 7,965,300,000,000
Operating Profit 748,600,000,000
Non-Operating Profit 268,300,000,000
------------------
Pretax Income 1,016,900,000,000
==================
SK Corporation
Divisional Sales
For the first half of 2004
(in Korean won)
Petroleum 5,528,400,000,000
Petrochem 1,939,800,000,000
Lube 234,500,000,000
E&P 100,500,000,000
Others 162,100,000,000
------------------
Total 7,965,300,000,000
==================
SK Corporation
Divisional Operating Profit
For the first half of 2004
(in Korean won)
Petroleum 368,800,000,000
Petrochem 261,900,000,000
Lube 35,100,000,000
E&P 80,600,000,000
Others 2,200,000,000
------------------
Total 748,600,000,000
==================
SK Corporation
Net Debts
End of June 2004
(in Korean won)
Short-Term Debts 2,222,000,000,000
Long-Term Debts 3,083,300,000,000
-----------------
Total 5,305,300,000,000
Interest Bearing Debts 792,100,000,000
-----------------
Total Debts 6,097,400,000,000
-----------------
Cash & Cash Equivalent 635,300,000,000
-----------------
Net Debts 5,462,100,000,000
=================
A free copy of SK Corporation's First Half of 2004 Financial
Results is available at:
http://bankrupt.com/misc/half_year_financial_results.pdf
Headquartered in Fort Lee, New Jersey, SK Global America,
Inc., is a subsidiary of SK Global Co., Ltd., one of the world's
leading trading companies. The Debtors file for chapter 11
protection on July 21, 2003 (Bankr. S.D.N.Y. Case No. 03-14625).
Albert Togut, Esq., and Scott E. Ratner, Esq., at Togut, Segal &
Segal, LLP, represent the Debtors in their restructuring efforts.
When they filed for bankruptcy, the Debtors reported
$3,268,611,000 in assets and $3,167,800,000 of liabilities.
(SK Global Bankruptcy News, Issue No. 21; Bankruptcy Creditors'
Service, Inc., 215/945-7000)
SOLUTIA INC: Reports $19 Million Net Loss in June 2004
------------------------------------------------------
Solutia Chapter 11 Debtors
Unaudited Statement of Consolidated Financial Position
As of June 30, 2004
ASSETS
Current Assets:
Cash $52,000,000
Trade Receivables, net 201,000,000
Account Receivables-Unconsolidated Subsidiaries 64,000,000
Inventories 156,000,000
Other Current Assets 78,000,000
--------------
Total Current Assets 551,000,000
Property, plant and equipment, net 724,000,000
Investments in Subsidiaries and Affiliates 503,000,000
Intangible Assets, net 102,000,000
Other Assets 151,000,000
--------------
TOTAL ASSETS $2,031,000,000
==============
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current Liabilities:
Accounts Payable $130,000,000
Other Current Liabilities 171,000,000
--------------
Total Current Liabilities 301,000,000
Long-Term Debt 344,000,000
Other Long-Term Liabilities 236,000,000
--------------
Total Liabilities not Subject to Compromise 881,000,000
Liabilities Subject to Compromise 2,301,000,000
Shareholders' Deficit (1,151,000,000)
--------------
TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT $2,031,000,000
==============
Solutia Chapter 11 Debtors
Unaudited Consolidated Statement of Operations
For the Month Ended June 30, 2004
Total Net Sales $193,000,000
Total Cost Of Goods Sold 187,000,000
--------------
Gross Profit 6,000,000
Total MAT Expense 18,000,000
--------------
Operating Loss (12,000,000)
Equity Earnings (Loss) from Affiliates 2,000,000
Interest Expense, net (5,000,000)
Other Income, net 1,000,000
Reorganization Items:
Professional fees (4,000,000)
Provision for rejected executory contracts -
Employee retention plan (1,000,000)
--------------
Total Reorganization Items (5,000,000)
--------------
Loss Before Taxes (19,000,000)
Income Taxes -
--------------
NET LOSS ($19,000,000)
==============
Headquartered in St. Louis, Missouri, Solutia, Inc. --
http://www.solutia.com/-- with its subsidiaries, make and sell a
variety of high-performance chemical-based materials used in a
broad range of consumer and industrial applications. The Company
filed for chapter 11 protection on December 17, 2003 (Bankr.
S.D.N.Y. Case No. 03-17949). When the Debtors filed for
protection from their creditors, they listed $2,854,000,000 in
assets and $3,223,000,000 in debts. (Solutia Bankruptcy News,
Issue No. 21; Bankruptcy Creditors' Service, Inc., 215/945-7000)
SOLUTIA INC: Second Quarter Net Loss Tops $98 Million
-----------------------------------------------------
A full-text copy of Solutia, Inc.'s Form 10-Q Report is available
for free at:
http://www.sec.gov/Archives/edgar/data/1043382/000106880004000485/sol10q.txt
Solutia, Inc.
Condensed Consolidating Balance Sheet
As of June 30, 2004
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $98,000,000
Trade receivables, net 341,000,000
Miscellaneous receivables 87,000,000
Inventories 248,000,000
Prepaid expenses and other assets 28,000,000
--------------
Total current assets 802,000,000
Property, plant and equipment, net 858,000,000
Investments in affiliates 193,000,000
Goodwill 97,000,000
Identified intangible assets, net 42,000,000
Other assets 201,000,000
--------------
TOTAL ASSETS $2,193,000,000
==============
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities:
Accounts payable $155,000,000
Accrued liabilities 264,000,000
Short-term debt -
--------------
Total current liabilities 419,000,000
Long-term debt 599,000,000
Other liabilities 288,000,000
--------------
Total liabilities not subject to compromise 1,306,000,000
Liabilities subject to compromise 2,194,000,000
Total shareholders' deficit (1,307,000,000)
--------------
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT $2,193,000,000
==============
Solutia, Inc.
Condensed Consolidating Statement of Operations
Three Months Ended June 30, 2004
Net sales $699,000,000
Cost of goods sold 655,000,000
--------------
Gross profit 44,000,000
Marketing expenses 40,000,000
Administrative expenses 33,000,000
Technological expenses 16,000,000
Amortization expense 1,000,000
--------------
Operating loss (46,000,000)
Equity loss from affiliates (3,000,000)
Interest expense (23,000,000)
Other income, net -
Loss on debt modification -
Reorganization items, net (24,000,000)
--------------
Loss before income tax expense (benefit) (96,000,000)
Income tax expense (benefit) 2,000,000
--------------
Loss from continuing operations (98,000,000)
Loss from discontinued operations, net of tax -
--------------
NET LOSS ($98,000,000)
==============
Solutia, Inc.
Condensed Consolidating Statement of Cash Flows
Six Months Ended June 30, 2004
Increase (decrease) in cash and cash equivalents
Operating Activities:
Net loss ($198,000,000)
Adjustments to reconcile to Cash From Operations:
Depreciation and amortization 64,000,000
Loss from discontinued operations, net of tax -
Amortization of deferred credits (19,000,000)
Restructuring expenses and other charges 138,000,000
Reorganization items, net 49,000,000
Other, net 3,000,000
Changes in assets and liabilities:
Income and deferred taxes (2,000,000)
Trade receivables (60,000,000)
Inventories (8,000,000)
Accounts payable 77,000,000
Liabilities subject to compromise (27,000,000)
Other assets and liabilities (21,000,000)
--------------
Cash used in operating activities (4,000,000)
Investing activities:
Property, plant and equipment purchases (22,000,000)
Acquisition and investment payments (36,000,000)
Other investing activities -
--------------
Cash provided by (used in) investing activities (58,000,000)
--------------
Financing activities:
Net change in short-term debt obligations (361,000,000)
Proceeds from long-term debt obligations 300,000,000
Net change in cash collateralized letters of credit 76,000,000
Deferred debt issuance costs (13,000,000)
Other financing activities (1,000,000)
--------------
Cash provided by (used in) financing activities 1,000,000
--------------
Increase (Decrease) in cash and cash equivalents (61,000,000)
Cash and cash equivalents:
Beginning of year 159,000,000
--------------
End of period $98,000,000
==============
Headquartered in St. Louis, Missouri, Solutia, Inc. --
http://www.solutia.com/-- with its subsidiaries, make and sell a
variety of high-performance chemical-based materials used in a
broad range of consumer and industrial applications. The Company
filed for chapter 11 protection on December 17, 2003 (Bankr.
S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection
from their creditors, they listed $2,854,000,000 in assets and
$3,223,000,000 in debts. (Solutia Bankruptcy News, Issue No. 21;
Bankruptcy Creditors' Service, Inc., 215/945-7000).
UNITED AIRLINES: Reports Highest-Ever July Load Factor
------------------------------------------------------
United Airlines (OTC BB: UALAQ.OB) reported its July load factor
of 84.8% in its traffic results for July 2004. This load factor
is 1.9 points above July 2003 and the company's second-highest
ever after June 2004's load factor of 86%. It also is the fourth
month in a row the airline has broken its load-factor record for
the month.
United's total scheduled revenue passenger miles (RPMs)
increased in July 2004 by 10.6% on a capacity increase of 8.2%
available seat miles (ASMs) vs. the same period in 2003.
2004 2003 Percent
July July Change
-------- -------- -------
Scheduled Service Only:
Revenue Plane Miles 71,284,000 66,274,000 7.6
Number Of Departures 55,069 52,869 4.2
Revenue Passengers 6,816,000 6,316,000 7.9
Revenue Passenger Miles (000):
North America 7,187,793 6,616,803 8.6
Pacific 2,058,639 1,545,503 33.2
Atlantic 1,439,137 1,405,078 2.4
Latin America 276,719 345,666 -19.9
System 10,962,288 9,913,050 10.6
Available Seat Miles (000):
North America 8,502,734 8,096,779 5.0
Pacific 2,452,922 1,818,340 34.9
Atlantic 1,641,048 1,626,285 0.9
Latin America 331,109 409,648 -19.2
System 12,927,813 11,951,052 8.2
Passenger Load Factor (Percent):
North America 84.5 81.7 2.8
Pacific 83.9 85.0 -1.1
Atlantic 87.7 86.4 1.3
Latin America 83.6 84.4 -0.8
System 84.8 82.9 1.9
Cargo Ton Miles (000):
Freight 132,365 113,568 16.6
Mail 29,628 34,473 -14.1
System 161,993 148,041 9.4
Total System Inc Charter (000):
Revenue Passenger Miles 10,999,538 9,934,156 10.7
Available Seat Miles 12,972,276 11,983,206 8.3
Revenue Psgr. Km. 17,701,557 15,987,037 10.7
Available Seat Km. 20,876,284 19,284,573 8.3
Total Revenue Ton Miles 1,261,846 1,141,455 10.6
Total Avail. Ton Miles 2,036,582 1,877,620 8.5
Total Rev. Ton Km. 1,829,650 1,654,971 10.6
Total Avail. Ton Km. 2,973,410 2,741,325 8.5
Year To Date
----------------------- Percent
2004 2003 Change
-------- -------- -------
Scheduled Service Only:
Revenue Plane Miles 460,941,000 434,099,000 6.2
Number Of Departures 358,054 348,678 2.7
Revenue Passengers 41,169,000 38,299,000 7.5
Revenue Passenger Miles (000):
North America 42,470,687 39,146,333 8.5
Pacific 13,303,724 9,833,496 35.3
Atlantic 8,813,215 7,838,858 12.4
Latin America 2,061,824 2,219,962 -7.1
System 66,649,450 59,038,649 12.9
Available Seat Miles (000):
North America 54,592,456 51,545,422 5.9
Pacific 15,692,501 13,465,733 16.5
Atlantic 10,748,733 10,113,714 6.3
Latin America 2,652,038 3,042,443 -12.8
System 83,685,728 78,167,312 7.1
Passenger Load Factor (Percent):
North America 77.8 75.9 1.9
Pacific 84.8 73.0 11.8
Atlantic 82.0 77.5 4.5
Latin America 77.7 73.0 4.7
System 79.6 75.5 4.1
Cargo Ton Miles (000):
Freight 873,757 910,405 -4.0
Mail 212,326 222,331 -4.5
System 1,086,083 1,132,736 -4.1
Total System Inc Charter (000):
Revenue Passenger Miles 67,003,107 59,514,745 12.6
Available Seat Miles 84,117,726 78,747,297 6.8
Revenue Psgr. Km. 107,828,726 95,777,079 12.6
Available Seat Km. 135,370,656 126,728,025 6.8
Total Revenue Ton Miles 7,786,419 7,084,495 9.9
Total Avail. Ton Miles 13,257,155 12,408,327 6.8
Total Rev. Ton Km. 11,290,210 10,273,732 9.9
Total Avail. Ton Km. 19,355,446 18,116,157 6.8
Headquartered in Chicago, Illinois, UAL Corporation --
http://www.united.com/-- through United Air Lines, Inc., is the
holding company for United Airlines -- the world's second largest
air carrier. The Company filed for chapter 11 protection on
December 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M.
Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq.,
and Steven R. Kotarba, Esq., at Kirkland & Ellis represent the
Debtors in their restructuring efforts. When the Company filed
for protection from their creditors, they listed $24,190,000,000
in assets and $22,787,000,000 in debts. (United Airlines
Bankruptcy News, Issue No. 56; Bankruptcy Creditors' Service,
Inc., 215/945-7000)
USG CORPORATION: Reports $21.7 Million Earnings in June 2004
------------------------------------------------------------
USG Corporation, et al.
Consolidated Balance Sheet 30-June-2004
__________________________ ____________
Assets:
Cash and cash equivalents $444,098,000
Marketable Securities 65,171,000
Restricted Cash 25,606,000
Receivables 422,285,000
Inventories 309,183,000
Income taxes receivable 20,005,000
Deferred income taxes 43,577,000
Other current assets 45,536,000
-------------
Total current assets 1,375,461,000
Property, plant and equipment, net 1,572,043,000
Marketable Securities 210,499,000
Deferred income taxes 148,460,000
Goodwill 41,201,000
Other assets 355,842,000
-------------
Total Assets $3,703,506,000
=============
Liabilities and Stockholders' Equity:
Accounts payable $240,419,000
Accrued expenses 184,114,000
Taxes on income 26,307,000
-------------
Total current liabilities 450,840,000
Other liabilities 414,755,000
Liabilities subject to compromise 2,239,383,000
Stockholders' Equity:
Common stock 4,998,000
Treasury stock (258,035,000)
Capital received in excess of par value 101,604,000
Accumulated other comprehensive income/(loss) 13,302,000
Retained earnings 736,659,000
-------------
Total stockholders' equity 598,528,000
-------------
Total Liabilities and Stockholders' Equity $3,703,506,000
=============
USG Corporation, et al. Month Ending
Consolidated Income Statement 30-June-2004
__________________________ ____________
Net sales $371,703,000
Cost of products sold 306,175,000
Selling and administrative expenses 23,374,000
Chapter 11 reorganization expenses 4,368,000
Interest expense 322,000
Interest income (156,000)
Other (income)/expense, net (84,000)
-------------
Earnings/(loss) before income taxes 37,704,000
Income taxes (benefit) 15,971,000
-------------
Net Earnings/(loss) $21,733,000
=============
Headquartered in Chicago, Illinois, USG Corporation --
http://www.usg.com/-- through its subsidiaries, is a leading
manufacturer and distributor of building materials producing a
wide range of products for use in new residential, new
nonresidential and repair and remodel construction, as well as
products used in certain industrial processes. The Company filed
for chapter 11 protection on June 25, 2001 (Bankr. Del. Case No.
01-02094). David G. Heiman, Esq., and Paul E. Harner, Esq., at
Jones, Day, Reavis & Pogue represent the Debtors in their
restructuring efforts. When the Debtors filed for protection from
their creditors, they listed $3,252,000,000 in assets and
$2,739,000,000 in debts. (USG Bankruptcy News, Issue No. 70;
Bankruptcy Creditors' Service, Inc., 215/945-7000)
W.R. GRACE: Submits Amended First Quarter 2004 Financial Results
----------------------------------------------------------------
W.R. Grace & Co. amends its report on Form 10-Q for the quarterly
period ended March 31, 2004 for the restatement of its
consolidated financial statements to correct the U.S. dollar
translation of a third party's interest in a small consolidated
joint venture.
"Due to a currency conversion error, the third party interest was
mistakenly calculated at $20.0 million instead of $200,000, a
condition that was discovered as part of Grace's second quarter
2004 financial review. The effect of this non-cash correction to
Grace's December 31, 2003 balance sheet was to increase
shareholders' equity by $19.8 million and to decrease liabilities
by the same amount. This condition had no effect on originally
reported net loss, per share amounts, net sales, operating income
or any other element of Grace's Consolidated Statement of
Operations for the year ended December 31, 2003, or for the three
months ended March 31, 2004," W.R. Grace Chairman and Chief
Executive Officer Paul J. Norris explains.
A full-text copy of W.R. Grace's Amended Form 10-Q is available
for free at:
http://sec.gov/Archives/edgar/data/1045309/000095013604002510/0000950136-04-002510.txt
W. R. Grace & Co. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
==================================== Mar. 31, Dec. 31,
Amounts in millions 2004 2003
------------------------------------ -------- --------
ASSETS
Current Assets
Cash and cash equivalents $325.3 $309.2
Accounts and other receivables, net 353.8 347.5
Inventories 226.2 214.6
Deferred income taxes 29.4 29.8
Other current assets 27.4 27.8
-------- --------
Total Current Assets 962.1 928.9
Properties and equipment, net 635.1 656.6
Goodwill 84.2 85.2
Cash value of life insurance policies, net 92.9 90.8
Deferred income taxes 591.8 587.1
Asbestos-related insurance expected to be
realized after one year 267.8 269.4
Other assets 257.6 256.2
-------- --------
Total Assets $2,891.5 $2,874.2
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Liabilities Not Subject to Compromise
Current Liabilities
Debt payable within one year $15.9 $6.8
Accounts payable 110.1 101.8
Income taxes payable 19.9 16.6
Other current liabilities 111.2 129.2
-------- --------
Total Current Liabilities 257.1 254.4
Deferred income taxes 35.1 35.3
Other liabilities 304.4 296.0
-------- --------
Total Liabilities Not Subject
to Compromise 596.6 585.7
Liabilities Subject to Compromise 2,447.7 2,452.3
-------- --------
Total Liabilities 3,044.3 3,038.0
-------- --------
Shareholders' Equity (Deficit)
Common stock 0.8 0.8
Paid-in capital 431.6 432.1
Accumulated deficit (155.1) (170.9)
Treasury stock, at cost (135.2) (135.9)
Accumulated other comprehensive loss (294.9) (289.9)
-------- --------
Total Shareholders' Equity (Deficit) (152.8) (163.8)
-------- --------
Total Liabilities and Shareholders'
Equity (Deficit) $2,891.5 $2,874.2
======== ========
W. R. Grace & Co. and Subsidiaries
Consolidated Statements of Operations Three Months Ended
(Unaudited) March 31,
==================================== ===================
Amounts in millions 2004 2003
------------------------------------ -------- --------
Net sales $518.5 $444.8
Cost of goods sold, exclusive
of depreciation and amortization 331.7 296.7
Selling, general & administrative
expenses, exclusive of
net pension expense 102.2 91.7
Depreciation and amortization 27.2 24.7
Research and development expenses 12.7 14.1
Net pension expense 12.3 13.5
Interest expense & related financing costs 3.9 4.2
Provision for environmental remediation - 2.0
-------- --------
486.8 441.1
(Loss) income before Chapter 11 expenses,
income taxes and minority interest 31.7 3.7
Chapter 11 expenses, net (4.5) (2.7)
Benefit from (provision for) income taxes (10.9) (3.1)
Minority interest in consolidated entities (0.5) (0.2)
-------- --------
Net (loss) income $15.8 ($2.3)
======== ========
W. R. Grace & Co. and Subsidiaries
Consolidated Statements of Cash Flows Three Months Ended
(Unaudited) March 31,
==================================== ===================
Amounts in millions 2004 2003
------------------------------------ -------- --------
OPERATING ACTIVITIES
(Loss) income before Chapter 11
expenses, income taxes and minority
interest $31.7 $3.7
Reconciliation to net cash provided
by operating activities:
Depreciation and amortization 27.2 24.7
Interest accrued on prepetition debt
subject to compromise 2.7 2.9
Loss (gain) on disposal of assets 0.2 0.3
Provision for environmental remediation - 2.0
Net income from life insurance policies (1.5) (3.1)
Changes in assets and liabilities:
Working capital items (33.2) (17.9)
Contributions to defined benefit
pension plans (2.4) (1.1)
Expenditures for asbestos-related
litigation (2.6) (3.1)
Proceeds from asbestos-related insurance (1.9) (2.3)
Expenditures for env. remediation 1.6 1.1
Expenditures for postretirement benefits (2.9) (3.1)
Expenditures for retained obligations
of discontinued operations (0.4) -
Changes in accruals and other
non-cash items 14.5 13.7
-------- --------
Net cash provided by operating activities
before income taxes and Chapter 11 expenses 33.0 17.8
Chapter 11 expenses paid, net (2.0) (3.8)
Income taxes paid, net of refunds (10.3) (4.3)
-------- --------
Net cash provided by operating activities 20.7 9.7
INVESTING ACTIVITIES
Capital expenditures (9.1) (18.0)
Investment in life insurance policies (4.6) (4.9)
Proceeds from life insurance policies 5.3 3.6
Proceeds from sales of investments 0.1 0.7
-------- --------
Net cash used for investing activities (8.3) (18.6)
FINANCING ACTIVITIES
Net payments of loans secured by cash
value of life insurance policies (1.3) (0.9)
Borrowings under credit facilities, net 8.9 (0.6)
Borrowings under DIP facility, net (0.5) (2.2)
Repayment of borrowings under DIP facility - -
-------- --------
Net cash used for financing activities 7.1 (3.7)
Effect of currency exchange rate changes
on cash and cash equivalents (3.4) 4.4
-------- --------
Increase in cash and cash equivalents 16.1 (8.2)
Cash & cash equivalents, beginning of period 309.2 283.6
-------- --------
Cash & cash equivalents, end of period $325.3 $275.4
======== ========
Headquartered in Columbia, Maryland, W.R. Grace & Co., --
http://www.grace.com/-- supplies catalysts and silica products,
especially construction chemicals and building materials, and
container products globally. The Debtors filed for chapter 11
protection on April 2, 2001 (Bankr. Del. Case No: 01-01139).
James H.M. Sprayregen, Esq., at Kirkland & Ellis and Laura Davis
Jones, Esq., at Pachulski, Stang, Ziehl et al. represent the
Debtors in their restructuring efforts. (W.R. Grace Bankruptcy
News, Issue No. 69; Bankruptcy Creditors' Service, Inc., 215/945-
7000)
W.R. GRACE: Submits Amended Second Quarter 2004 Financial Results
-----------------------------------------------------------------
On August 9, 2004, W.R. Grace & Co. filed its Form 10-Q for the
quarter ended June 30, 2004 with the Securities and Exchange
Commission.
A full-text copy of W.R. Grace's Form 10-Q is available for free
at:
http://sec.gov/Archives/edgar/data/1045309/000095013604002506/0000950136-04-002506.txt
W. R. Grace & Co. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
================================== June 30, Dec. 31,
Amounts in millions 2004 2003
---------------------------------- -------- --------
ASSETS
Current Assets
Cash and cash equivalents $371.7 $309.2
Accounts and other receivables, net 400.8 347.5
Inventories 224.3 214.6
Deferred income taxes 29.5 29.8
Other current assets 22.6 27.8
-------- --------
Total Current Assets 1,048.9 928.9
Properties and equipment, net 621.7 656.6
Goodwill 84.8 85.2
Cash value of life insurance policies, net 96.6 90.8
Deferred income taxes 613.7 587.1
Asbestos-related insurance expected to be
realized after one year 264.0 269.4
Other assets 257.3 256.2
-------- --------
Total Assets $2,987.0 $2,874.2
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Liabilities Not Subject to Compromise
Current Liabilities
Debt payable within one year $13.0 $6.8
Accounts payable 114.8 101.8
Income taxes payable 25.3 16.6
Other current liabilities 145.4 129.2
-------- --------
Total Current Liabilities 298.5 254.4
Deferred income taxes 34.3 35.3
Unfunded defined benefit pension liability 315.6 278.5
Other liabilities 60.2 17.5
-------- --------
Total Liabilities Not Subject to Compromise 708.6 585.7
Liabilities Subject to Compromise 2,447.5 2,452.3
-------- --------
Total Liabilities 3,156.1 3,038.8
-------- --------
Shareholders' Equity (Deficit)
Common stock 0.8 0.8
Paid-in capital 430.5 432.1
Accumulated deficit (133.8) (170.9)
Treasury stock, at cost (133.9) (135.9)
Accumulated other comprehensive loss (332.7) (289.9)
-------- --------
Total Shareholders' Equity (Deficit) (169.1) (163.8)
-------- --------
Total Liabilities and Shareholders'
Equity (Deficit) $2,987.0 $2,874.2
======== ========
W. R. Grace & Co. and Subsidiaries
Consolidated Statement of Operations Three Months Ended
(Unaudited) June 30,
================================== ==================
Amounts in millions 2004 2003
---------------------------------- -------- --------
Net sales $572.4 $503.4
Cost of goods sold, exclusive of
depreciation and amortization 357.6 329.7
Selling, general and administrative
expenses, exclusive of
net pension expense 112.2 94.7
Depreciation and amortization 26.3 25.3
Research and development expenses 13.0 14.2
Net pension expense 14.9 13.2
Interest expense and related financing costs 3.9 4.1
Other (income) expense 4.6 (2.1)
Provision for environmental remediation - 0.5
-------- --------
532.5 479.6
(Loss) Income before Chapter 11 expenses,
income taxes and minority interest 39.9 23.8
Chapter 11 expenses, net (3.0) (6.8)
Provision for income taxes (13.0) (10.2)
Minority interest in consolidated entities (2.6) (0.3)
-------- --------
Net (loss) income $21.3 $6.5
======== ========
W. R. Grace & Co. and Subsidiaries
Consolidated Statement of Cash Flows Six Months Ended
(Unaudited) June 30,
================================== ==================
Amounts in millions 2004 2003
---------------------------------- -------- --------
OPERATING ACTIVITIES
(Loss) Income before Chapter 11
expenses, income taxes and minority
interest $71.6 $27.5
Reconciliation to net cash provided
by operating activities:
Depreciation and amortization 53.5 50.0
Interest accrued on pre-petition debt
subject to compromise 5.4 5.8
Loss on sale of investments and
disposals of assets 0.3 0.9
Provision for environmental remediation - 2.5
Net income from life insurance policies (2.2) (4.3)
Changes in assets and liabilities:
Working capital items (41.6) (42.2)
Contributions to defined benefit
pension plans (5.2) (3.0)
Contributions to postretirement
benefit plans (5.5) (5.7)
Expenditures for asbestos-related litigation (3.8) (5.8)
Proceeds from asbestos-related insurance 5.4 10.2
Expenditures for environmental remediation (2.9) (6.0)
Expenditures for retained obligations of
discontinued operations (0.7) (0.7)
Changes in accruals and other
non-cash items 31.4 28.4
-------- --------
Net cash provided by operating activities
before income taxes and Chapter 11 expenses 105.7 57.6
Chapter 11 expenses paid, net (6.1) (10.2)
Income taxes paid, net of refunds (13.8) (11.7)
-------- --------
Net cash provided by operating activities 85.8 35.7
INVESTING ACTIVITIES
Capital expenditures (22.5) (44.8)
Business acquired, net of cash acquired - (2.2)
Investment in life insurance policies (11.4) (9.1)
Proceeds from life insurance policies 10.5 5.4
Proceeds from sales of investments
and disposals of assets 1.3 0.8
-------- --------
Net cash used for investing activities (22.1) (49.9)
FINANCING ACTIVITIES
Net payments of loans secured by cash
value of life insurance policies (2.7) (1.4)
Borrowings under credit facilities, net 6.3 4.7
Borrowings under DIP facility, net (1.0) 27.0
Repayment of borrowings under DIP facility - -
Exercise of stock options 0.2 -
-------- --------
Net cash provided by financing activities 2.8 30.3
-------- --------
Effect of currency exchange rate changes
on cash and cash equivalents (4.0) 18.2
-------- --------
Increase (decrease) in cash and
cash equivalents: 62.5 34.3
Cash and cash equivalents, beginning of period 309.2 283.6
-------- --------
Cash and cash equivalents, end of period $371.7 $317.9
======== ========
Headquartered in Columbia, Maryland, W.R. Grace & Co., --
http://www.grace.com/-- supplies catalysts and silica products,
especially construction chemicals and building materials, and
container products globally. The Debtors filed for chapter 11
protection on April 2, 2001 (Bankr. Del. Case No: 01-01139).
James H.M. Sprayregen, Esq., at Kirkland & Ellis and Laura Davis
Jones, Esq., at Pachulski, Stang, Ziehl et al. represent the
Debtors in their restructuring efforts. (W.R. Grace Bankruptcy
News, Issue No. 69; Bankruptcy Creditors' Service, Inc., 215/945-
7000)
W.R. GRACE: Reports Amended 4th Qtr. & Year-End Financial Results
-----------------------------------------------------------------
W.R. Grace & Co. amends its report on Form 10-K for the fiscal
year ended December 31, 2003 for the restatement of its
consolidated financial statements to correct the balance sheet,
statement of shareholders' equity, statement of cash flows, and
statement of comprehensive income, for the U.S. dollar
translation of a third party's interest in a small consolidated
joint venture.
In a regulatory filing with the Securities and Exchange
Commission dated August 9, 2004, W.R. Grace Chairman and Chief
Executive Officer Paul J. Norris reports that due to a currency
conversion error, the third party interest was mistakenly
calculated at $20.0 million instead of $200,000, a condition that
was discovered as part of Grace's second quarter 2004 financial
review. "The effect of this non-cash correction to Grace's
December 31, 2003 balance sheet was to increase shareholders'
equity by $19.8 million and to decrease liabilities by the same
amount. This condition had no effect on originally reported net
loss, per share amounts, net sales, operating income or any other
element of Grace's Consolidated Statement of Operations for the
year ended December 31, 2003 or on any of the financial
statements for the interim quarters in 2003," Mr. Norris
explains.
A full-text copy of W.R. Grace's Amended Form 10-K is available
for free at:
http://sec.gov/Archives/edgar/data/1045309/000095013604002507/0000950136-04-002507.txt
W. R. Grace & Co. and Subsidiaries
Consolidated Balance Sheet
(Unaudited) December 31,
==================================== ===================
Amounts in millions 2003 2002
------------------------------------ -------- --------
ASSETS
Current Assets
Cash and cash equivalents $309.2 $283.6
Accounts and other receivables, net 347.5 316.6
Inventories 214.6 173.6
Deferred income taxes 29.8 20.6
Other current assets 27.8 35.9
-------- --------
Total Current Assets 928.9 830.3
Properties and equipment, net 656.6 622.2
Goodwill 85.2 65.2
Cash value of life insurance policies, net 90.8 82.4
Deferred income taxes 587.1 574.1
Asbestos-related insurance expected to be
realized after one year 269.4 282.6
Other assets 256.2 234.9
-------- --------
Total Assets $2,874.2 $2,691.7
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Liabilities Not Subject to Compromise
Current Liabilities
Debt payable within one year $6.8 $4.3
Accounts payable 101.8 100.3
Income taxes payable 16.6 11.4
Other current liabilities 129.2 131.3
-------- --------
Total Current Liabilities 254.4 247.3
Deferred income taxes 35.3 30.5
Other liabilities 296.0 301.4
-------- --------
Total Liabilities Not Subject
to Compromise 585.7 579.2
Liabilities Subject to Compromise 2,452.3 2,334.7
-------- --------
Total Liabilities 3,038.0 2,913.9
-------- --------
Shareholders' Equity (Deficit)
Common stock 0.8 0.8
Paid-in capital 432.1 433.0
Accumulated deficit (170.9) (115.7)
Treasury stock, at cost (135.9) (137.0)
Accumulated other comprehensive loss (289.9) (403.3)
-------- --------
Total Shareholders' Equity (Deficit) (163.8) (222.2)
-------- --------
Total Liabilities and Shareholders'
Equity (Deficit) $2,874.2 $2,691.7
======== ========
W. R. Grace & Co. and Subsidiaries
Consolidated Statement of Operations Year Ended
(Unaudited) December 31,
==================================== ===================
Amounts in millions, except per 2003 2002
share amounts
------------------------------------ -------- --------
Net sales $1,980.5 $1,819.7
Other income 16.7 22.5
-------- --------
1,997.2 1,842.2
Cost of goods sold, exclusive
of depreciation and amortization 1,289.8 1,148.1
Selling, general & administrative
expenses, exclusive of
net pension expense 365.6 345.1
Depreciation and amortization 102.9 94.9
Research and development expenses 52.0 51.5
Net pension expense 52.7 19.5
Interest expense & related financing costs 15.6 20.0
Provision for environmental remediation 142.5 70.7
Provision for asbestos related claims 30.0 --
-------- --------
2,051.1 1,749.8
(Loss) income before Chapter 11 expenses,
income taxes and minority interest (53.9) 92.4
Chapter 11 expenses, net (14.8) (30.1)
Benefit from (provision for) income taxes 12.3 (38.0)
Minority interest in consolidated entities 1.2 (2.2)
-------- --------
Net (loss) income ($55.2) $22.1
======== ========
W. R. Grace & Co. and Subsidiaries
Consolidated Statement of Cash Flows Year Ended
(Unaudited) December 31,
==================================== ===================
Amounts in millions 2003 2002
------------------------------------ -------- --------
OPERATING ACTIVITIES
(Loss) income before Chapter 11
expenses, income taxes and minority
interest ($53.9) $92.4
Reconciliation to net cash provided
by operating activities:
Depreciation and amortization 102.9 94.9
Interest accrued on prepetition debt
subject to compromise 11.2 14.5
Loss (gain) on disposal of assets 1.5 (1.9)
Provision for environmental remediation 142.5 70.7
Provision for asbestos-related claims 30.0 --
Net income from life insurance policies (5.6) (4.7)
Changes in assets and liabilities:
Working capital items (42.3) 22.2
Contributions to defined benefit
pension plans (60.5) (10.2)
Contributions to post-retirement plans (12.6) (21.5)
Expenditures for asbestos-related
litigation (10.4) (13.1)
Proceeds from asbestos-related insurance 13.2 10.8
Expenditures for env. remediation (11.2) (20.8)
Expenditures for retained obligations
of discontinued operations (1.3) (4.5)
Pension expense and other non-cash items 52.0 25.6
-------- --------
Net cash provided by operating activities
before income taxes and Chapter 11 expenses 155.5 254.4
Chapter 11 expenses paid, net (17.5) (27.1)
Income taxes paid, net of refunds (27.2) (31.8)
-------- --------
Net cash provided by operating activities 110.8 195.5
INVESTING ACTIVITIES
Capital expenditures (86.4) (91.1)
Businesses acquired in purchase
transactions, net of cash acquired (26.9) (28.5)
Investment in life insurance policies (11.6) (16.4)
Proceeds from life insurance policies 11.9 19.4
Proceeds from sales of investments
and disposals of assets 3.9 5.9
-------- --------
Net cash used for investing activities (109.1) (110.7)
FINANCING ACTIVITIES
Net payments of loans secured by cash
value of life insurance policies (3.1) (5.1)
Borrowings under credit facilities, net 2.3 (2.8)
Borrowings under DIP facility, net 46.1 18.7
epayment of borrowings under DIP facility (50.0) (20.0)
-------- --------
Net cash used for financing activities (4.7) (9.2)
Effect of currency exchange rate changes
on cash and cash equivalents 28.6 16.1
-------- --------
Increase in cash and cash equivalents 25.6 91.7
Cash & cash equivalents, beginning of period 283.6 191.9
-------- --------
Cash & cash equivalents, end of period $309.2 $283.6
======== ========
Headquartered in Columbia, Maryland, W.R. Grace & Co., --
http://www.grace.com/-- supplies catalysts and silica products,
especially construction chemicals and building materials, and
container products globally. The Debtors filed for chapter 11
protection on April 2, 2001 (Bankr. Del. Case No: 01-01139).
James H.M. Sprayregen, Esq., at Kirkland & Ellis and Laura Davis
Jones, Esq., at Pachulski, Stang, Ziehl et al. represent the
Debtors in their restructuring efforts. (W.R. Grace Bankruptcy
News, Issue No. 69; Bankruptcy Creditors' Service, Inc., 215/945-
7000)
WESTPOINT STEVENS: 2nd Quarter Net Loss Narrows to $24 Million
--------------------------------------------------------------
WestPoint Stevens Inc. (OTC Bulletin Board: WSPT) reported results
for the second quarter ended June 30, 2004.
The Company's net sales for the second quarter of 2004 increased
4.7% to $383.0 million compared with $365.7 million a year ago.
Bed Product sales decreased 3% due to slower sales of bedding
accessories, Bath Product sales increased 29% given WestPoint
Stevens increased market share due to a competitor's liquidation,
and Other (Mill Stores and International) sales decreased,
primarily from a reduction in the Company's mill store sales as a
result of restructuring initiatives that have reduced the total
number of retail stores to 37 from 57 in the year ago period.
Furthermore, one of the Company's foreign subsidiaries, WestPoint
Stevens (Europe) Ltd., filed for bankruptcy in the United Kingdom
in August of 2003 and is in the process of liquidating. WestPoint
Stevens Stores' same-store sales increased 7% for the remaining
stores in the second quarter of 2004 versus the year ago period.
Net income for the second quarter of 2004 was a loss of $24.0
million compared with a loss of $72.0 million in 2003.
Loss before taxes for the second quarter of 2004 was $33.1 million
compared with a loss before taxes in 2003 of $106.8 million.
Included in the second quarter of 2004 were $9.0 million in
expenses related to the Company's restructuring initiatives, and
$8.4 million in expenses related to the current bankruptcy
proceedings compared with $16.6 million in expenses in the second
quarter of 2003 related to WestPoint Stevens previously announced
restructuring initiatives and $6.2 million in expenses related to
the current bankruptcy proceedings.
M. L. "Chip" Fontenot, WestPoint Stevens President and CEO,
commented, "The retail environment was more challenging for home
fashions in the second quarter as retailers experienced slower
sales growth in textile home furnishings. Nevertheless, we
increased our market share in bath products in the quarter and
are maintaining the high service levels that our customers expect
from WestPoint Stevens. Furthermore, we remain adequately funded
with availability under our $300 million debtor-in-possession
facility of $120 million at the end of the second quarter."
Mr. Fontenot continued, "The Company is in the final stages of
revising its business plan and is continuing to move forward on a
consensual basis with negotiating new terms for a Chapter 11 plan
of reorganization with all its major creditor constituencies. On
July 30, the Company received an additional extension of its
exclusive period to file such a plan through October 1, 2004."
A full-text copy of WestPoint Stevens' Second Quarter 2004
Report is available for free at the Securities and Exchange
Commission at:
http://www.sec.gov/Archives/edgar/data/852952/000085295204000014/wpst0604q.htm
WESTPOINT STEVENS, INC.
Condensed Consolidated Balance Sheets
At June 30, 2004
Assets
Current Assets
Cash and cash equivalents $10,096,000
Accounts receivable 229,872,000
Inventories 417,291,000
Prepaid expenses and other current assets 20,157,000
--------------
Total current assets 677,416,000
Property, Plant and Equipment, net 592,264,000
Other Assets
Deferred financing fees 6,082,000
Other assets 1,110,000
--------------
TOTAL ASSETS $1,276,872,000
==============
Liabilities and Stockholders' Equity (Deficit)
Current Liabilities
Senior Credit Facility $486,419,000
Second-Lien Facility 165,000,000
DIP Credit Agreement 136,137,000
Accrued interest payable 5,611,000
Accounts payable 51,974,000
Other accrued liabilities 140,638,000
--------------
Total current liabilities 985,779,000
Non-current Liabilities
Deferred income taxes 5,373,000
Pension and other liabilities 144,994,000
--------------
Total non-current liabilities 150,367,000
Liabilities Subject to Compromise 1,087,450,000
Stockholders' Equity (Deficit) (946,724,000)
--------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,276,872,000
==============
WESTPOINT STEVENS, INC.
Condensed Consolidated Statements of Income
Three Months Ended June 30, 2004
Net sales $382,992,000
Cost of goods sold 330,667,000
--------------
Gross earnings (loss) 52,325,000
Selling, general and administrative expenses 56,292,000
Restructuring and impairment charge 3,473,000
Goodwill impairment charge -
--------------
Operating earnings (loss) (7,440,000)
Interest expense 19,099,000
Other expense (income)-net (1,820,000)
Chapter 11 expenses 8,383,000
--------------
Income (loss) before income tax expense (benefit) (33,102,000)
Income tax expense (benefit) (9,108,000)
--------------
Net income (loss) ($23,994,000)
==============
WESTPOINT STEVENS, INC.
Condensed Consolidated Statements of Cash Flows
Six Months Ended June 30, 2004
Cash flows from operating activities:
Net loss ($38,873,000)
Adjustments to reconcile net loss to net cash
provided by (used for) operating activities:
Depreciation and other amortization 33,300,000
Deferred income taxes (15,439,000)
Changes in working capital (17,667,000)
Other-net 5,837,000
Non-cash component of restructuring
and impairment charge 1,818,000
Goodwill impairment charge -
--------------
Net cash used for operating activities (31,024,000)
Cash flows from investing activities:
Capital expenditures (10,883,000)
Net proceeds from sale of assets 5,493,000
--------------
Net cash used for investing activities (5,390,000)
Cash flows from financing activities:
Senior Credit Facility:
Borrowings -
Repayments (4,270,000)
DIP Credit Agreement:
Borrowings 426,120,000
Repayments (379,000,000)
Fees associated with DIP Credit Agreement -
Trade Receivables Program -
--------------
Net cash provided by financing activities 42,850,000
Net increase in cash and cash equivalents 6,436,000
Cash and cash equivalents at beginning of period 3,660,000
--------------
Cash and cash equivalents at end of period $10,096,000
==============
Headquartered in West Point, Georgia, WestPoint Stevens, Inc., --
http://www.westpointstevens.com/-- is the #1 US maker of bed
linens and bath towels and also makes comforters, blankets,
pillows, table covers, and window trimmings. It makes the Martex,
Utica, Stevens, Lady Pepperell, Grand Patrician, and Vellux
brands, as well as the Martha Stewart bed and bath lines; other
licensed brands include Ralph Lauren, Disney, and Joe Boxer.
Department stores, mass retailers, and bed and bath stores are its
main customers. (Federated, J.C. Penney, Kmart, Sears, and Target
account for more than half of sales.) It also has nearly 60 outlet
stores. Chairman and CEO Holcombe Green controls 8% of WestPoint
Stevens. The Company filed for chapter 11 protection on June 1,
2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq.,
at Weil, Gotshal & Manges, LLP, represents the Debtors in their
restructuring efforts. (WestPoint Bankruptcy News, Issue No. 27;
Bankruptcy Creditors' Service, Inc., 215/945-7000)
WESTPOINT STEVENS: Reports $14.2 Million Net Loss in June 2004
--------------------------------------------------------------
WESTPOINT STEVENS, INC.
Balance Sheet
At June 30, 2004
(in thousands)
Assets
Current Assets
Cash and cash equivalents $4,823
Short-term investments -
Accounts receivable, net 222,082
Inventories 380,441
Prepaid expenses and other current assets 19,662
----------
Total current assets 627,008
Total investments and other assets 124,279
Goodwill -
Property, Plant and Equipment, net 576,342
----------
TOTAL ASSETS $1,327,629
==========
Liabilities and Stockholders' Equity (Deficit)
Liabilities Not Subject to Compromise:
Senior Credit Facility $440,730
DIP Credit Agreement 136,137
Second lien facility 165,000
Accrued interest payable 5,611
Accounts payable - trade 50,712
Accounts payable - intercompany 146,964
Other accrued liabilities 124,665
Deferred income taxes 5,373
Pension and other liabilities 141,549
----------
Total liabilities not subject to compromise 1,216,741
Liabilities Subject to Compromise
Senior notes 1,000,000
Deferred financing fees (5,905)
Accrued interest payable on Senior Notes 36,130
Accounts payable 27,069
Other payables and accrued liabilities 8,238
Pension and other liabilities 18,844
----------
Total liabilities not subject to compromise 1,084,376
----------
Total Liabilities 2,301,117
Shareholders' Equity (Deficit)
Equity of subsidiaries (123,757)
Common stock 711
Capital surplus/Treasury Stock 51,436
Retained earnings (deficit) (785,597)
Minimum pension liability adjustment (101,921)
Other adjustments (14,360)
Unearned compensation -
----------
Stockholders' Equity (Deficit) (973,488)
----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $1,327,629
==========
WESTPOINT STEVENS, INC.
Statement of Operations
Month Ended June 30, 2004
(in thousands)
Total sales $117,295
Cost of sales 103,987
----------
Gross profit 13,308
Selling and administrative expenses
Selling expenses 3,896
Warehousing and shipping 6,129
Advertising 410
Division administrative expense 937
MIS expense 1,508
Corporate administrative expense 1,289
----------
Total selling and administrative expense 14,169
Restructuring and impairment charge 3,473
Goodwill impairment charge -
----------
Profit (loss) from operations (4,334)
Interest expense
Interest expense - outside 5,841
Capitalized interest expense -
Interest expense - intercompany 227
Interest income 24
Interest income - intercompany -
----------
Net interest expense 6,044
Other expense
Miscellaneous 1,843
Royalties - intercompany 3,700
Transaction gain/loss -
----------
Total other expense 5,543
Other income
Royalties - intercompany -
Dividends -
Sale of assets -
Miscellaneous 2
----------
Total other income 2
----------
Net other expense 5,541
----------
Income (loss) before Chapter 11 reorganization
expenses and income taxes (benefit) and
extraordinary items (15,919)
Chapter 11 reorganization expenses 3,783
Income tax expense (benefit) (5,476)
Extraordinary item - net of taxes -
----------
Net Income (loss) ($14,226)
==========
WESTPOINT STEVENS, INC.
Statement of Cash Flows
Month Ended June 30, 2004
(in thousands)
Cash flows from operations:
Net income (loss) ($14,226)
Restructuring 1,818
Equity adjustments (3,738)
Depreciation and amortization expense 4,892
Gain on sale of assets -
Working Capital Changes
Decrease/(increase) - accounts receivable (1,193)
Decrease/(increase) - inventories 13,746
Decrease/(increase) - other current assets 3,244
Decrease/(increase) - other non-current
assets & debts 1,313
Increase/(decrease) - accounts payable (trade) (748)
Increase/(decrease) - a/p (intercompany) 1,516
Increase/(decrease) - accrued liabilities 16,633
Increase/(decrease) - accrued interest payable 1,391
Increase/(decrease) - pension and other liabilities 1,438
Increase/(decrease) - deferred federal income tax (11,837)
----------
Total cash flows from operations 14,249
Cash flows from investing activities:
Capital expenditures (1,839)
Transfers (214)
Net proceeds from sale of assets -
----------
Total cash flows from investing (2,053)
Cash flows from financing activities:
Increase/(decrease)- DIP Credit Agreement (9,506)
----------
Total cash flows from financing (9,506)
Beginning cash balance 2,133
Change in cash 2,690
----------
Ending cash balance $4,823
==========
Headquartered in West Point, Georgia, WestPoint Stevens, Inc., --
http://www.westpointstevens.com/-- is the #1 US maker of bed
linens and bath towels and also makes comforters, blankets,
pillows, table covers, and window trimmings. It makes the Martex,
Utica, Stevens, Lady Pepperell, Grand Patrician, and Vellux
brands, as well as the Martha Stewart bed and bath lines; other
licensed brands include Ralph Lauren, Disney, and Joe Boxer.
Department stores, mass retailers, and bed and bath stores are its
main customers. (Federated, J.C. Penney, Kmart, Sears, and Target
account for more than half of sales.) It also has nearly 60 outlet
stores. Chairman and CEO Holcombe Green controls 8% of WestPoint
Stevens. The Company filed for chapter 11 protection on June 1,
2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq.,
at Weil, Gotshal & Manges, LLP, represents the Debtors in their
restructuring efforts. (WestPoint Bankruptcy News, Issue No. 27;
Bankruptcy Creditors' Service, Inc., 215/945-7000)
WESTPOINT STEVENS: JP Stevens & Co.'s June 2004 Operating Report
----------------------------------------------------------------
J.P. STEVENS & CO., INC.
Balance Sheet
At June 30, 2004
(in thousands)
Assets
Current Assets
Cash and cash equivalents -
Accounts receivable - intercompany $110,738
Prepaid expenses and other current assets 11
----------
Total current assets 110,749
Total investments & other assets 2,697
Goodwill -
----------
TOTAL ASSETS $113,446
==========
Liabilities and Stockholders' Equity (Deficit)
Liabilities Not Subject to Compromise
Accounts payable - intercompany -
Other accrued liabilities -
Deferred income taxes -
Pension and other liabilities -
----------
Total Liabilities Not Subject to Compromise -
Liabilities Subject to Compromise -
Shareholders' Equity (Deficit)
Equity of subsidiaries $10,503
Common stock -
Capital surplus/Treasury Stock -
Retained earnings (deficit) 102,943
Minimum pension liability adjustment -
Other adjustments -
Unearned compensation -
----------
Stockholders' Equity (Deficit) 113,446
----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $113,446
==========
J.P. Stevens & Co., Inc., reports no income or cash flow for
June 2004.
Headquartered in West Point, Georgia, WestPoint Stevens, Inc., --
http://www.westpointstevens.com/-- is the #1 US maker of bed
linens and bath towels and also makes comforters, blankets,
pillows, table covers, and window trimmings. It makes the Martex,
Utica, Stevens, Lady Pepperell, Grand Patrician, and Vellux
brands, as well as the Martha Stewart bed and bath lines; other
licensed brands include Ralph Lauren, Disney, and Joe Boxer.
Department stores, mass retailers, and bed and bath stores are its
main customers. (Federated, J.C. Penney, Kmart, Sears, and Target
account for more than half of sales.) It also has nearly 60 outlet
stores. Chairman and CEO Holcombe Green controls 8% of WestPoint
Stevens. The Company filed for chapter 11 protection on June 1,
2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq.,
at Weil, Gotshal & Manges, LLP, represents the Debtors in their
restructuring efforts. (WestPoint Bankruptcy News, Issue No. 27;
Bankruptcy Creditors' Service, Inc., 215/945-7000)
WESTPOINT STEVENS: JP Stevens Enterprises' June Operating Report
----------------------------------------------------------------
J.P. STEVENS ENTERPRISES, INC.
Balance Sheet
At June 30, 2004
(in thousands)
Assets
Current Assets
Cash and cash equivalents $18
Accounts receivable - intercompany 16,060
Prepaid expenses and other current assets -
----------
Total current assets 16,078
Total investments & other assets -
Goodwill -
----------
TOTAL ASSETS $16,078
==========
Liabilities and Stockholders' Equity (Deficit)
Liabilities Not Subject to Compromise:
Accounts payable - intercompany -
Other accrued liabilities $173
Deferred income taxes -
Pension and other liabilities -
----------
Total Liabilities Not Subject to Compromise 173
Liabilities Subject to Compromise -
----------
Total liabilities 173
Shareholders' Equity (Deficit)
Equity of subsidiaries -
Common stock 2
Capital surplus/Treasury Stock -
Retained earnings (deficit) 15,903
Minimum pension liability adjustment -
Other adjustments -
Unearned compensation -
----------
Stockholders' Equity (Deficit) 15,905
----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $16,078
==========
J.P. STEVENS ENTERPRISES, INC.
Statement of Operations
Month Ended June 30, 2004
(in thousands)
Net sales -
Cost of goods sold -
----------
Gross earnings -
Selling and administrative expenses
Selling expenses $2
Warehousing and shipping -
Advertising -
Division administrative expense -
MIS expense -
Corporate administrative expense -
----------
Total selling and administrative expense 2
Restructuring and impairment charge -
Goodwill impairment charge -
----------
Operating earnings (loss) (2)
Interest expense
Interest expense - outside -
Capitalized interest expense -
Interest expense - intercompany -
Interest income -
Interest income - intercompany 60
----------
Net interest expense (60)
Other expense
Miscellaneous -
Royalties - intercompany -
Transaction gain/loss -
----------
Total other expense -
Other income
Royalties - intercompany 175
Dividends -
Sale of assets -
Miscellaneous -
----------
Total other income 175
----------
Net other expense (175)
----------
Income (loss) before Chapter 11 reorganization
expenses and income taxes (benefit) and
extraordinary items 233
Chapter 11 reorganization expenses -
Income tax expense (benefit) 81
Extraordinary item - net of taxes -
----------
Net Income (loss) $152
==========
J.P. STEVENS ENTERPRISES, INC.
Statement of Cash Flows
Month Ended June 30, 2004
(in thousands)
Cash flows from operations:
Net income (loss) $152
Non-cash items
Depreciation and amortization -
Working Capital Changes
Decrease/(increase) - a/r (intercompany) (69)
Decrease/(increase) - inventories -
Decrease/(increase) - other current assets -
Decrease/(increase) - other non-current assets -
Increase/(decrease) - accounts payable (trade) -
Increase/(decrease) - a/p (intercompany) -
Increase/(decrease) - accrued liabilities (100)
Increase/(decrease) - accrued interest payable -
Increase/(decrease) - pension & other liabilities -
Increase/(decrease) - deferred federal income tax -
----------
Total cash flows from operations (17)
Cash flows from investing activities
Capital expenditures -
Net proceeds from sale of assets -
----------
Total cash flows from investing -
Cash flows from financing activities
Increase/(decrease)- DIP Credit Agreement -
----------
Total cash flows from financing -
Beginning cash balance 35
Change in cash (17)
----------
Ending cash balance $18
==========
Headquartered in West Point, Georgia, WestPoint Stevens, Inc., --
http://www.westpointstevens.com/-- is the #1 US maker of bed
linens and bath towels and also makes comforters, blankets,
pillows, table covers, and window trimmings. It makes the Martex,
Utica, Stevens, Lady Pepperell, Grand Patrician, and Vellux
brands, as well as the Martha Stewart bed and bath lines; other
licensed brands include Ralph Lauren, Disney, and Joe Boxer.
Department stores, mass retailers, and bed and bath stores are its
main customers. (Federated, J.C. Penney, Kmart, Sears, and Target
account for more than half of sales.) It also has nearly 60 outlet
stores. Chairman and CEO Holcombe Green controls 8% of WestPoint
Stevens. The Company filed for chapter 11 protection on June 1,
2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq.,
at Weil, Gotshal & Manges, LLP, represents the Debtors in their
restructuring efforts. (WestPoint Bankruptcy News, Issue No. 27;
Bankruptcy Creditors' Service, Inc., 215/945-7000)
WESTPOINT STEVENS: WP Stevens I Posts $3.2 Million Income in May
----------------------------------------------------------------
WESTPOINT STEVENS, INC., I
Balance Sheet
At June 30, 2004
(in thousands)
Assets
Current Assets
Cash and cash equivalents $143
Accounts receivable - intercompany -
Inventories 14,262
Prepaid expenses and other current assets -
----------
Total current assets 14,405
Total investments and other assets 124,052
Property, Plant and Equipment, net 12,596
Goodwill -
----------
TOTAL ASSETS $151,053
==========
Liabilities and Stockholders' Equity (Deficit)
Liabilities Not Subject to Compromise
Senior Credit Facility -
DIP Credit Agreement -
Long-term debt classified as current -
Accrued interest payable -
Accounts payable - trade $759
Accounts payable - intercompany 4,844
Other accrued liabilities 8,132
Deferred income taxes -
Pension and other liabilities -
----------
Total Liabilities Not Subject to Compromise 13,735
Liabilities Subject to Compromise
Senior notes -
Deferred financing fees -
Accrued interest payable on Senior Notes -
Accounts payable 1,400
Other payables and accrued liabilities -
Pension and other liabilities -
----------
Total Liabilities Subject to Compromise 1,400
----------
Total liabilities 15,135
Shareholders' Equity (Deficit)
Equity of subsidiaries -
Common stock 1
Capital surplus/Treasury Stock 70,559
Retained earnings (deficit) 65,358
Minimum pension liability adjustment -
Other adjustments -
Unearned compensation -
----------
Shareholders' Equity (Deficit) 135,918
----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $151,053
==========
WESTPOINT STEVENS, INC., I
Statement of Operations
Month Ended June 30, 2004
(in thousands)
Net sales $3,410
Cost of goods sold 2,016
----------
Gross earnings 1,394
Selling and administrative expenses
Selling expenses 2
Warehousing and shipping 201
Advertising -
Division administrative expense -
MIS expense -
Corporate administrative expense 170
----------
Total selling and administrative expense 373
Restructuring and impairment charge -
Goodwill impairment charge -
----------
Operating earnings (loss) 1,021
Interest expense
Interest expense - outside -
Capitalized interest expense -
Interest expense - intercompany -
Interest income -
Interest income - intercompany 300
----------
Net interest expense (300)
Other expense
Miscellaneous -
Royalties - intercompany 190
Transaction gain/loss -
----------
Total other expense 190
Other income
Royalties - intercompany 3,806
Dividends -
Sale of assets -
Miscellaneous -
----------
Total other income 3,806
----------
Net other expense (3,616)
----------
Income (loss) before Chapter 11 reorganization
expenses and income taxes (benefit) and
extraordinary items 4,937
Chapter 11 reorganization expenses -
Income tax expense (benefit) 1,730
Extraordinary item - net of taxes -
----------
Net Income (loss) $3,207
==========
WESTPOINT STEVENS, INC., I
Statement of Cash Flows
Month Ended June 30, 2004
(in thousands)
Cash flows from operations:
Net income (loss) $3,207
Non-cash items
Depreciation and amortization 111
Working Capital Changes
Decrease/(increase) - a/r (customers) -
Decrease/(increase) - a/r (intercompany) -
Decrease/(increase) - inventories (1,517)
Decrease/(increase) - other current assets -
Decrease/(increase) - other non-current assets -
Increase/(decrease) - accounts payable (trade) 6
Increase/(decrease) - a/p (intercompany) (476)
Increase/(decrease) - accrued liabilities (1,251)
Increase/(decrease) - accrued interest payable -
Increase/(decrease) - pension & other liabilities -
Increase/(decrease) - deferred federal income tax -
----------
Total cash flows from operations 80
Cash flows from investing activities:
Capital expenditures -
Transfers -
Net proceeds from sale of assets -
----------
Total cash flows from investing -
Cash flows from financing activities:
Increase/(decrease)- DIP Credit Agreement -
----------
Total cash flows from financing -
Beginning cash balance 63
Change in cash 80
----------
Ending cash balance $143
==========
Headquartered in West Point, Georgia, WestPoint Stevens, Inc., --
http://www.westpointstevens.com/-- is the #1 US maker of bed
linens and bath towels and also makes comforters, blankets,
pillows, table covers, and window trimmings. It makes the Martex,
Utica, Stevens, Lady Pepperell, Grand Patrician, and Vellux
brands, as well as the Martha Stewart bed and bath lines; other
licensed brands include Ralph Lauren, Disney, and Joe Boxer.
Department stores, mass retailers, and bed and bath stores are its
main customers. (Federated, J.C. Penney, Kmart, Sears, and Target
account for more than half of sales.) It also has nearly 60 outlet
stores. Chairman and CEO Holcombe Green controls 8% of WestPoint
Stevens. The Company filed for chapter 11 protection on June 1,
2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq.,
at Weil, Gotshal & Manges, LLP, represents the Debtors in their
restructuring efforts. (WestPoint Bankruptcy News, Issue No. 27;
Bankruptcy Creditors' Service, Inc., 215/945-7000)
WESTPOINT STEVENS: WP Stevens Stores' June 2004 Operating Report
----------------------------------------------------------------
WESTPOINT STEVENS STORES, INC.
Balance Sheet
At June 30, 2004
(in thousands)
Assets
Current Assets
Cash and cash equivalents $1,788
Accounts receivable - customers 164
Accounts receivable - intercompany 3,865
Total Inventories 20,970
Prepaid expenses and other current assets 803
----------
Total current assets 27,590
Total investments & other assets -
Goodwill -
Property, plant and equipment, net 2,519
----------
TOTAL ASSETS $30,109
==========
Liabilities and Stockholders' Equity (Deficit)
Liabilities Not Subject to Compromise
Accounts payable - trade $606
Accounts payable -intercompany -
Other accrued liabilities 3,930
Deferred income taxes -
Pension and other liabilities -
----------
Total Liabilities Not Subject to Compromise 4,536
----------
Liabilities Subject to Compromise
Accounts payable 1,673
----------
Total liabilities 6,209
Shareholders' Equity (Deficit)
Equity of subsidiaries -
Common stock 1
Capital surplus/Treasury Stock 15,955
Retained earnings (deficit) 7,944
Minimum pension liability adjustment -
Other adjustments -
Unearned compensation -
----------
Stockholders' Equity (Deficit) 23,900
----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) $30,109
==========
WESTPOINT STEVENS STORES, INC.
Statement of Operations
Month Ended June 30, 2004
(in thousands)
Net sales $7,172
Cost of goods sold 4,392
----------
Gross earnings 2,780
Selling and administrative expenses
Selling expenses 2,094
Warehousing and shipping 176
Advertising 199
Division administrative expense 274
MIS expense 56
Corporate administrative expense 82
----------
Total selling and administrative expense 2,881
Restructuring and impairment charge -
Goodwill impairment charge -
----------
Operating earnings (loss) (101)
Interest expense
Interest expense - outside -
Capitalized interest expense -
Interest expense - intercompany 154
Interest income -
Interest income - intercompany -
----------
Net interest expense 154
Other expense
Miscellaneous -
Royalties - intercompany -
Transaction gain/loss -
----------
Total other expense -
Other income
Royalties Intercompany -
Dividends -
Sale of assets -
Miscellaneous -
----------
Total other income -
----------
Net other expense -
----------
Income (loss) before Chapter 11 reorganization
expenses and income taxes (benefit) and
extraordinary items (255)
Chapter 11 reorganization expenses -
Income tax expense (benefit) (89)
Extraordinary item - net of taxes -
----------
Net Income (loss) ($166)
==========
WESTPOINT STEVENS STORES, INC.
Statement of Cash Flows
Month Ended June 30, 2004
(in thousands)
Cash flows from operations:
Net income (loss) ($166)
Non-cash items
Depreciation and amortization 56
Gain on sale of assets -
Working Capital Changes
Decrease/(increase) - a/r (customers) 16
Decrease/(increase) - a/r (intercompany) (996)
Decrease/(increase) - inventories 596
Decrease/(increase) - other current assets 69
Decrease/(increase) - other non-current assets -
Increase/(decrease) - accounts payable (trade) 164
Increase/(decrease) - a/p (intercompany) -
Increase/(decrease) - accrued liabilities 394
Increase/(decrease) - accrued interest payable -
Increase/(decrease) - pension & other liabilities -
Increase/(decrease) - deferred federal income tax -
----------
Total cash flows from operations 133
Cash flows from investing activities
Capital expenditures (27)
Transfers 214
Net proceeds from sale of assets -
----------
Total cash flows from investing 187
Cash flows from financing activities
Increase/(decrease)- DIP Credit Agreement -
----------
Total cash flows from financing -
Beginning cash balance 1,468
Change in cash 320
----------
Ending cash balance $1,788
==========
Headquartered in West Point, Georgia, WestPoint Stevens, Inc., --
http://www.westpointstevens.com/-- is the #1 US maker of bed
linens and bath towels and also makes comforters, blankets,
pillows, table covers, and window trimmings. It makes the Martex,
Utica, Stevens, Lady Pepperell, Grand Patrician, and Vellux
brands, as well as the Martha Stewart bed and bath lines; other
licensed brands include Ralph Lauren, Disney, and Joe Boxer.
Department stores, mass retailers, and bed and bath stores are its
main customers. (Federated, J.C. Penney, Kmart, Sears, and Target
account for more than half of sales.) It also has nearly 60 outlet
stores. Chairman and CEO Holcombe Green controls 8% of WestPoint
Stevens. The Company filed for chapter 11 protection on June 1,
2003 (Bankr. S.D.N.Y. Case No. 03-13532). John J. Rapisardi, Esq.,
at Weil, Gotshal & Manges, LLP, represents the Debtors in their
restructuring efforts. (WestPoint Bankruptcy News, Issue No. 27;
Bankruptcy Creditors' Service, Inc., 215/945-7000)
*********
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for bond issues that reportedly trade well below par. Prices are
obtained by TCR editors from a variety of outside sources during
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*********
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