Doane Pet Care Reports Fiscal 2005 Fourth Quarter and Full Year Results.BRENTWOOD Brentwood, city and district, England Brentwood, city (1991 pop. 51,212) and district, Essex, SE England. Brentwood is mainly residential but produces some agricultural equipment, film, and prefabricated concrete. , Tenn. -- Doane Pet Care Doane Pet Care (DPC) is a leading manufacturer of dry pet food and pet snacks and treats in the United States. Production DPC manufactures store brands for its retail customers and national brands for consumer pet food companies; it also produces and sells its own Company (the "Company") today reported net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight and earnings results for its fiscal 2005 fourth quarter and full year. Due to the October October: see month. 24, 2005 acquisition of the Company's Parent by Ontario Teachers' Pension Plan The Ontario Teachers' Pension Plan (OTPP), commonly referred to as Teachers', is the organization responsible for administering pensions for public school teachers of Ontario. The OTPP also invests the plan's pension fund. Board ("the Acquisition"), results for the fiscal 2005 fourth quarter and full year periods reported below are on a combined basis to include results of operations for the predecessor predecessor - parent and successor 1. SuccessoR - A language for distributed computing derived from SR. ["SuccessoR: Refinements to SR", R.A. Olsson et al, TR 84-3, U Arizona 1984]. 2. successor - daughter periods as detailed below in the section titled "Note to Financial Statements and Supplemental Data Presentations." Quarterly Results For the fourth quarter of fiscal 2005 on a combined basis, the Company's net sales were $249.2 million compared to $271.0 million for the fourth quarter of fiscal 2004, a decrease of 8.0%. This decrease was primarily due to the Company's domestic cost-sharing arrangements and the related impact of passing through lower commodity costs, as well as the impact of the previously announced discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of non-manufactured product distribution in the U.S. In addition, the positive benefit of higher European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. sales volumes was moderated by unfavorable foreign currency exchange rate fluctuations, which had a 2.3% negative impact on total net sales. The Company reported a net loss of $25.3 million on a combined basis for its fiscal 2005 fourth quarter compared to a net loss of $4.8 million for its fiscal 2004 fourth quarter. The Company's loss from operations on a combined basis was $8.4 million in the 2005 period compared to income from operations of $18.2 million in the 2004 period. The positive impact of lower global commodity costs was moderated by higher fuel and natural gas costs, which impacted the Company's transportation, packaging and certain other raw material costs. The net positive impact of these operational items was more than offset by several charges related to the Acquisition including: 1) transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). totaling $21.7 million; 2) a $1.8 million one time increase in cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold resulting from a fair value adjustment to inventory; and 3) increases of $1.1 million and $1.8 million in depreciation and amortization expenses, respectively, resulting from fair value adjustments to property, plant, equipment and customer intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. . In addition, the period-over-period change in the Company's income from operations was impacted by a $6.0 million unfavorable change in the fair value of the Company's derivative instruments Derivative instruments Contracts such as options and futures whose price is derived from the price of an underlying financial asset. . Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become increased 12.4%, or $3.2 million, in the 2005 fourth quarter to $29.0 million on a combined basis from $25.8 million for the 2004 fourth quarter primarily due to lower global commodity costs, partially offset by the related pass-through pass-through n. 1. An opening between two rooms, especially a shelved space between a kitchen and dining room that is used for passing food. 2. A route through which something is permitted to pass. 3. impact of the Company's cost-sharing arrangements and the energy related cost pressures. Net cash provided by operating activities was $13.7 million on a combined basis for the 2005 fourth quarter compared to net cash provided by operating activities of $28.0 million for the 2004 fourth quarter. The positive benefit of higher Adjusted EBITDA was offset by an increase in amounts due from customers in the 2005 fourth quarter compared to 2004 because of higher year end promotional activities and strong December December: see month. customer order activity. The Company believes cash flows from operating activities is the most directly comparable GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). financial measure to the non-GAAP Adjusted EBITDA liquidity measure typically reported in its earnings releases. The calculation of Adjusted EBITDA is explained below in the section titled "Adjusted EBITDA Supplemental Information." Full Year Results For fiscal 2005, the Company's net sales decreased 5.7% to $991.6 million on a combined basis from $1.1 billion for fiscal 2004. This decrease was primarily due to the Company's domestic cost-sharing arrangements, and the related impact of passing through lower commodity costs, and lower domestic sales volume, including the impact of the previously announced discontinuation of non-manufactured product distribution in the U.S., moderated by higher European sales volume. The Company reported a net loss of $44.7 million on a combined basis for fiscal 2005 compared to a net loss of $45.6 million for fiscal 2004. Income from operations was $32.4 million for the current fiscal year compared to $35.1 million for fiscal 2004. The decrease in income from operations in 2005 was due to $23.4 million of transaction costs and $4.7 million in charges related to the fair value adjustments incurred in connection with the Acquisition and $8.8 million of charges related to plant closings and other cost savings initiatives. These items were moderated by lower global commodity costs in 2005 and $5.1 million in favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlements. Fiscal 2004 results were impacted by $6.7 million of other operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. , of which $7.0 million related to the Company's European restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). . In addition, the period-over-period change in the Company's income from operations was impacted by a $2.8 million favorable change in the fair value of the Company's derivative instruments. Adjusted EBITDA increased 21.8%, or $18.7 million, to $104.6 million on a combined basis for fiscal 2005 from $85.9 million for fiscal 2004 principally due to lower global commodity costs, partially offset by the related pass-through impact of the Company's domestic cost-sharing arrangements and the energy related cost pressures. Net cash provided by operating activities was $36.9 million on a combined basis for fiscal 2005 compared to $21.3 million for fiscal 2004. The positive year over year improvement in cash flow from operating activities was due to higher Adjusted EBITDA. The Acquisition On October 24, 2005, pursuant to the Agreement and Plan of Merger dated August 28, 2005, Ontario Teachers' Pension Plan Board, or OTPP OTPP Ontario Teachers' Pension Plan (Canada) OTPP Other Than Private Passenger (commercial insurance business) , acquired beneficial ownership of substantially all of the outstanding capital stock of the Company's Parent, Doane Pet Care Enterprises, Inc., or Parent. The purchase price associated with the Acquisition was allocated as follows:
Fair value of assets acquired:
Current assets $ 173.6
Property, plant and equipment 288.5
Intangible assets 286.0
Goodwill 321.2
Other assets 26.3
---------
Gross assets acquired 1,095.6
Liabilities assumed (153.8)
Deferred tax liabilities, net (93.1)
---------
Purchase price of net assets acquired $ 848.7
=========
For further information concerning the Acquisition and the related recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. transactions, referred to as the Financing Transactions, please refer to the Company's 2005 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . Comments and Outlook Doug DOUG Dumb Old Utility Guy Cahill Cahill is a surname of Irish origin. The name refers to:
1. (programming) volatile - volatile variable. 2. (storage) volatile - See non-volatile storage. commodities cost structure, an improved capital structure as a result of our ownership change, as well as our ongoing productivity and cost savings focus, our future business prospects remain quite strong. We are, however, exercising near term caution for the first quarter of 2006 due to the impact higher energy costs are having on our packaging, freight The price or compensation paid for the transportation of goods by a carrier. Freight is also applied to the goods transported by such carriers. The liability of a carrier for freight damaged, lost, or destroyed during shipment is determined by contract, statute, or and other operating costs operating costs npl → gastos mpl operacionales , as well as lower than planned volume due to reduced promotional activity. We are in the process of implementing price increases to alleviate Alleviate To make something easier to be endured. Mentioned in: Kinesiology, Applied the impact of these higher costs, and will see the resulting benefit of these actions beginning in the 2006 second quarter." Note to Financial Statements and Supplemental Data Presentations In the accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge and narrative, due to the Acquisition of the Company's Parent on October 24, 2005, results for the period from January January: see month. 2 through October 23, 2005 represent the predecessor period and results for the period from October 24 through December 31, 2005 represent the successor period. Results for the fiscal 2005 fourth quarter on a combined basis represent the mathematical addition of the predecessor period from October 2 through October 23, 2005 and the successor period from October 24 through December 31, 2005. Results for fiscal 2005 on a combined basis represent the mathematical addition of the predecessor period from January 2 through October 23, 2005 and the successor period from October 24 through December 31, 2005. The approach of combining results is not consistent with GAAP and may yield results that are not strictly comparable on a period-to-period basis primarily due to the impact of required purchase accounting adjustments and the new basis of accounting established as a result of the Acquisition. The Company believes, however, that this is the most meaningful way to present its results of operations and cash flows. Such results are not indicative indicative: see mood. of what the results for the fiscal 2005 fourth quarter and full year would have been had the Acquisition not occurred. Adjusted EBITDA Supplemental Information Adjusted EBITDA is a non-GAAP liquidity measure presented in this press release as a supplemental disclosure to cash flows from operating activities. Management believes that Adjusted EBITDA is a useful presentation to investors in addition to GAAP cash flows from operating activities because of the significant impact working capital fluctuations can have on reported cash flows from operating activities. Management also believes Adjusted EBITDA is an analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. indicator Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. of cash generated for purposes of assessing the Company's ability to service its debt and fund capital expenditures. In addition, management believes that Adjusted EBITDA is of interest to the Company's investors and lenders because it is the basis for the calculation of the financial covenant covenant (kŭv`ənənt), agreement entered into voluntarily by two or more parties to do or refrain from doing certain acts. In the Bible and in theology the covenant is the agreement or engagement of God with man as revealed in the tests under the Company's senior credit facility. The Company's management uses Adjusted EBITDA to evaluate its business, to allocate To reserve a resource such as memory or disk. See memory allocation. resources and capital and to measure performance for incentive compensation purposes. However, Adjusted EBITDA should be considered in addition to, not as a substitute for, cash flows from operating activities. The Company has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments and other charges, and to a lesser extent, income tax payments, which are not reflected in Adjusted EBITDA. The Company defines Adjusted EBITDA as cash flows from operating activities, including income from joint ventures, before interest paid, income taxes paid, changes in working capital and certain other charges. These other charges include SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 133 gains and losses as well as charges associated with strategic and financial initiatives, including acquisitions, divestitures, financing transactions and restructuring efforts such as plant closings. A reconciliation of Adjusted EBITDA to GAAP net loss and GAAP cash flows from operating activities is included as a table below. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. All statements in this press release other than statements of historical facts, including those comments made in the section above titled "Comments and Outlook" regarding our business prospects and the impact of rising costs on our outlook, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. Readers should not place undue reliance on any forward-looking statements, which speak only as of the date made. Although the Company believes the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. It is important to note that actual results could differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Factors that could cause results to differ materially include without limitation: reliance on a few customers for a large portion of the Company's sales and its ability to maintain relationships with these customers; the Company's exposure to, and ability to manage, its market risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc commodity, oil and natural gas prices, interest rates and foreign currency exchange rates; changes in demand for the Company's products; future capital expenditures and the Company's ability to finance these capital expenditures; the Company's ability to make required principal and interest payments on its senior credit facility and other indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. and to comply with the financial covenants under its debt agreements; the Company's business strategies and other plans and objectives for future operations; general economic and business conditions and changes in market trends; business opportunities that may be presented to and pursued by the Company from time to time; risks related to the Company's international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. ; risks related to product liability claims and product recalls; the outcome of any legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. in which the Company or any of its subsidiaries may be a party; the impact of existing and new accounting pronouncements; and other factors. Further information concerning factors that could cause actual results to differ materially from those in the forward-looking statements are contained from time to time in the Company's SEC filings, including without limitation the Company's 2005 Annual Report on Form 10-K. The Company undertakes no obligation to update or revise the forward-looking statements for any new information, future events or otherwise. All forward-looking statements attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the Company are expressly qualified in their entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. by this cautionary statement. About the Company Doane Pet Care Company, based in Brentwood, Tennessee Brentwood is a city in Williamson County, Tennessee, United States. The population was 23,445 as of the U.S. Census Bureau's 2000 census, and as of 2007, Brentwood's population has increased to over 30,000. Brentwood is an affluent Nashville suburb. , is the largest manufacturer of store brand pet food and the second largest manufacturer of dry pet food overall in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The Company is also a leading manufacturer of store brand pet food in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). . The
Company sells to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 650 customers around the world and serves many of the top pet food retailers in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe. The Company offers its customers a full range of pet food products for dogs and cats, including dry, wet, soft-dry, treats and dog biscuits dog biscuits npl → biscuits mpl pour chien dog biscuits dog npl → Hundekuchen pl dog biscuits npl . For more information about the Company, including its SEC filings and past press releases, please visit www.doanepetcare.com. However, no information contained therein shall be deemed to be a part of this press release.
DOANE PET CARE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Millions)
Fourth quarter
-------------------------------------------------
Successor Predecessor
Period Period
October 24 October 2
through through Combined
December 31, October 23, basis Predecessor
2005 2005 2005 2004
------------ ----------- ----------- -----------
(unaudited) (unaudited) (unaudited) (audited)
Net sales $ 196.1 $ 53.1 $ 249.2 $ 271.0
Cost of goods sold 162.2 43.8 206.0 222.8
------------ ----------- ----------- -----------
Gross profit 33.9 9.3 43.2 48.2
% of net sales 17.3% 17.5% 17.3% 17.8%
Operating expenses:
Promotion and
distribution 11.4 3.4 14.8 15.0
Selling, general
and administrative 9.7 3.1 12.8 13.4
Amortization 2.3 0.3 2.6 0.9
Transaction costs - 21.7 21.7 -
Other operating
expenses (income),
net (0.6) 0.3 (0.3) 0.7
------------ ----------- ----------- -----------
Income (loss) from
operations 11.1 (19.5) (8.4) 18.2
Interest expense,
net 11.2 4.8 16.0 18.3
Debt extinguishments - - - 4.1
Other income, net (0.4) (0.1) (0.5) (0.6)
------------ ----------- ----------- -----------
Income (loss)
before income
taxes 0.3 (24.2) (23.9) (3.6)
Income tax expense 1.1 0.3 1.4 1.2
------------ ----------- ----------- -----------
Net loss $ (0.8) $ (24.5) $ (25.3) $ (4.8)
============ =========== =========== ===========
Note: The information contained in the column titled "Combined Basis
2005" is a Non-GAAP presentation. Please refer to the narrative
section above titled "Note to Financial Statements and Supplemental
Data Presentations" for further information.
DOANE PET CARE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Millions)
Year ended
-------------------------------------------------
Successor Predecessor
Period Period
October 24 January 2
through through Combined
December 31, October 23, basis Predecessor
2005 2005 2005 2004
------------ ----------- ----------- -----------
(audited) (audited) (unaudited) (audited)
Net sales $ 196.1 $ 795.5 $ 991.6 $ 1,051.2
Cost of goods sold 162.2 654.3 816.5 896.2
------------ ----------- ----------- -----------
Gross profit 33.9 141.2 175.1 155.0
% of net sales 17.3% 17.7% 17.7% 14.7%
Operating expenses:
Promotion and
distribution 11.4 46.3 57.7 56.8
Selling, general
and administrative 9.7 41.5 51.2 51.8
Amortization 2.3 3.4 5.7 4.3
Transaction costs - 23.4 23.4 0.3
Other operating
expenses (income),
net (0.6) 5.3 4.7 6.7
------------ ----------- ----------- -----------
Income from
operations 11.1 21.3 32.4 35.1
Interest expense,
net 11.2 61.9 73.1 72.9
Debt extinguishments - - - 4.1
Other income, net (0.4) (0.8) (1.2) (1.4)
------------ ----------- ----------- -----------
Income (loss)
before income
taxes 0.3 (39.8) (39.5) (40.5)
Income tax expense 1.1 4.1 5.2 5.1
------------ ----------- ----------- -----------
Net loss $ (0.8) $ (43.9) $ (44.7) $ (45.6)
============ =========== =========== ===========
Note: The information contained in the column titled "Combined Basis
2005" is a Non-GAAP presentation. Please refer to the narrative
section above titled "Note to Financial Statements and Supplemental
Data Presentations" for further information.
DOANE PET CARE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Millions, except Par Value and Shares)
Successor Predecessor
end of 2005 end of 2004
----------- -----------
(audited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $ 8.2 $ 28.8
Accounts receivable, net 105.1 112.4
Inventories 65.2 68.3
Deferred tax assets 5.4 2.4
Prepaid expenses and other current assets 8.7 7.1
----------- -----------
Total current assets 192.6 219.0
Property, plant and equipment, net 285.0 258.1
Intangible assets 287.4 77.9
Goodwill 321.1 328.0
Other assets 23.2 18.9
----------- -----------
Total assets $ 1,109.3 $ 901.9
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 3.2 $ 3.7
Accounts payable 80.0 102.2
Accrued liabilities 56.7 59.2
----------- -----------
Total current liabilities 139.9 165.1
----------- -----------
Long-term debt:
Long-term debt, excluding current maturities 561.1 580.1
Senior Preferred Stock (Redeemable),
3,000,000 shares authorized, 1,200,000
shares issued and outstanding at end of 2004 - 106.4
----------- -----------
Total long-term debt 561.1 686.5
Deferred tax liabilities 98.8 33.6
Other long-term liabilities 8.2 9.5
----------- -----------
Total liabilities 808.0 894.7
----------- -----------
Commitments and contingencies
Stockholders' equity:
Common stock, $0.01 par value; 1,000 shares
authorized; issued and outstanding at end
of 2004 - -
Class A common stock, $0.01 par value; 2,000
shares authorized; 1,001 shares issued and
outstanding at end of 2005 - -
Class B common stock, $0.01 par value; 100
shares authorized; 71.32 shares issued and
outstanding at end of 2005 - -
Additional paid-in-capital 303.1 115.7
Accumulated other comprehensive income (loss) (1.0) 62.7
Accumulated deficit (0.8) (171.2)
----------- -----------
Total stockholders' equity 301.3 7.2
----------- -----------
Total liabilities and stockholders'
equity $ 1,109.3 $ 901.9
=========== ===========
DOANE PET CARE COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Millions)
Year ended
-------------------------------------------------
Successor Predecessor
Period Period
October 24 January 2
through through Combined
December 31, October 23, basis Predecessor
2005 2005 2005 2004
------------ ----------- ----------- -----------
(audited) (audited) (unaudited) (audited)
Cash flows from
operating
activities:
Net loss $ (0.8) $ (43.9) $ (44.7) $ (45.6)
Items not
requiring
(providing) cash:
Depreciation 7.5 28.5 36.0 35.0
Amortization 2.3 3.5 5.8 5.3
Deferred income
tax expense 0.2 3.6 3.8 4.4
Equity in joint
ventures (0.3) (0.4) (0.7) (1.0)
Non-cash
interest
expense 0.9 18.3 19.2 20.2
Debt
extinguishments - - - 4.1
Asset
impairments - 6.1 6.1 0.2
Transaction costs - 22.4 22.4 -
Changes in current
assets and
liabilities (3.3) (7.7) (11.0) (1.3)
------------ ----------- ----------- -----------
Net cash
provided by
operating
activities 6.5 30.4 36.9 21.3
------------ ----------- ----------- -----------
Cash flows from
investing
activities:
Capital
expenditures (8.9) (17.2) (26.1) (18.9)
Proceeds from sale
of assets 0.3 0.1 0.4 0.9
Other, net (0.4) (1.4) (1.8) (2.1)
------------ ----------- ----------- -----------
Net cash used
in investing
activities (9.0) (18.5) (27.5) (20.1)
------------ ----------- ----------- -----------
Cash flows from
financing
activities:
Net repayments
under revolving
credit agreements - - - (16.0)
Proceeds from
issuance of
senior credit
facilities 160.0 - 160.0 195.0
Proceeds from
issuance of 10
5/8% senior
subordinated
notes 150.8 - 150.8 -
Other proceeds
from issuance of
long-term debt - - - 13.1
Repayments on
long-term debt
related to
Transactions (471.0) - (471.0) -
Other repayments
on long-term debt (0.9) (2.6) (3.5) (185.5)
Payments for debt
issuance costs (9.1) (1.9) (11.0) (8.4)
Proceeds from
issuance of
equity 298.3 - 298.3 -
Distribution to
equity holders (127.2) - (127.2) -
Payments of
Transaction costs (25.8) - (25.8) -
------------ ----------- ----------- -----------
Net cash used
in financing
activities (24.9) (4.5) (29.4) (1.8)
------------ ----------- ----------- -----------
Effect of exchange
rate changes on
cash and cash
equivalents (0.1) (0.5) (0.6) 0.1
------------ ----------- ----------- -----------
Increase
(decrease) in
cash and cash
equivalents (27.5) 6.9 (20.6) (0.5)
Cash and cash
equivalents,
beginning of period 35.7 28.8 28.8 29.3
------------ ----------- ----------- -----------
Cash and cash
equivalents, end of
period $ 8.2 $ 35.7 $ 8.2 $ 28.8
============ =========== =========== ===========
Note: The information contained in the column titled "Combined Basis
2005" is a Non-GAAP presentation. Please refer to the narrative
section above titled "Note to Financial Statements and Supplemental
Data Presentations" for further information.
DOANE PET CARE COMPANY AND SUBSIDIARIES
SUPPLEMENTAL DATA
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA AND
CASH FLOWS FROM OPERATIONS
(Dollars in Millions)
(Unaudited)
Fourth quarter
-------------------------------------------------
Successor Predecessor
Period Period
October 24 October 2
through through Combined
December 31, October 23, basis Predecessor
2005 2005 2005 2004
------------ ----------- ----------- -----------
Net loss $ (0.8) $ (24.5) $ (25.3) $ (4.8)
Adjustments to net
loss:
Interest expense,
net 11.2 4.8 16.0 18.3
Income tax expense 1.1 0.3 1.4 1.2
Depreciation 7.5 2.0 9.5 9.5
Amortization 2.3 0.3 2.6 1.2
SFAS 133 (gain) loss 0.8 0.8 1.6 (4.4)
Inventory fair value
adjustment 1.8 - 1.8 -
Debt extinguishments - - - 4.1
Transaction costs - 21.7 21.7 -
Other operating
expenses (income),
net (0.6) 0.3 (0.3) 0.7
------------ ----------- ----------- -----------
Adjusted
EBITDA 23.3 5.7 29.0 25.8
Changes in current
assets and
liabilities (3.3) 27.8 24.5 12.0
Adjustments to net
loss which are
changes in current
assets and liabilities:
Change in interest
payable 1.1 (3.5) (2.4) (1.1)
Change in income
taxes payable (0.6) - (0.6) -
SFAS 133 gain (loss) (0.8) (0.8) (1.6) 4.4
Inventory fair value
adjustment (1.8) - (1.8) -
Transaction costs
payable - (21.4) (21.4) -
Other operating
income (expenses),
net (0.4) 1.1 0.7 0.3
Adjustments to net
loss which (require)
provide cash:
Interest paid (11.4) - (11.4) (11.9)
Income taxes
received (paid) (0.3) 0.1 (0.2) -
Transaction costs
paid - (0.3) (0.3) -
Other operating
income (expenses),
net, received
(paid) 1.0 (1.4) (0.4) (1.2)
Equity in joint
ventures (0.3) (0.1) (0.4) (0.3)
------------ ----------- ----------- -----------
Net cash
provided by
operating
activities $ 6.5 $ 7.2 $ 13.7 $ 28.0
============ =========== =========== ===========
Note: The information contained in the column titled "Combined Basis
2005" is a Non-GAAP presentation. Please refer to the narrative
section above titled "Note to Financial Statements and Supplemental
Data Presentations" for further information.
DOANE PET CARE COMPANY AND SUBSIDIARIES
SUPPLEMENTAL DATA
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA AND
CASH FLOWS FROM OPERATIONS
(Dollars in Millions)
(Unaudited)
Year ended
-------------------------------------------------
Successor Predecessor
Period Period
October 24 January 2
through through Combined
December 31, October 23, basis Predecessor
2005 2005 2005 2004
------------ ----------- ----------- -----------
Net loss $ (0.8) $ (43.9) $ (44.7) $ (45.6)
Adjustments to net
loss:
Interest expense,
net 11.2 61.9 73.1 72.9
Income tax expense 1.1 4.1 5.2 5.1
Depreciation 7.5 28.5 36.0 35.0
Amortization 2.3 3.5 5.8 5.3
SFAS 133 (gain) loss 0.8 (1.5) (0.7) 2.1
Inventory fair value
adjustment 1.8 - 1.8 -
Debt extinguishments - - - 4.1
Transaction costs - 23.4 23.4 0.3
Other operating
expenses (income),
net (0.6) 5.3 4.7 6.7
------------ ----------- ----------- -----------
Adjusted
EBITDA 23.3 81.3 104.6 85.9
Changes in current
assets and
liabilities (3.3) 14.7 11.4 (1.3)
Adjustments to net
loss which are
changes in current
assets and liabilities:
Change in interest
payable 1.1 (1.3) (0.2) (0.1)
Change in income
taxes payable (0.6) (0.2) (0.8) 0.2
SFAS 133 gain (loss) (0.8) 1.5 0.7 (2.1)
Inventory fair value
adjustment (1.8) - (1.8) -
Transaction costs
payable - (22.4) (22.4) -
Other operating
income (expenses),
net (0.4) (1.4) (1.8) 0.6
Adjustments to net
loss which (require)
provide cash:
Interest paid (11.4) (42.3) (53.7) (52.6)
Income taxes paid (0.3) (0.3) (0.6) (0.9)
Transaction costs
paid - (1.0) (1.0) (0.3)
Other operating
income (expenses),
net, received
(paid) 1.0 2.2 3.2 (7.1)
Equity in joint
ventures (0.3) (0.4) (0.7) (1.0)
------------ ----------- ----------- -----------
Net cash
provided by
operating
activities $ 6.5 $ 30.4 $ 36.9 $ 21.3
============ =========== =========== ===========
Note: The information contained in the column titled "Combined Basis
2005" is a Non-GAAP presentation. Please refer to the narrative
section above titled "Note to Financial Statements and Supplemental
Data Presentations" for further information.
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion