Safety Products Holdings, Inc. and Norcross Safety Products L.L.C. Announce First Quarter 2006 Results.OAK BROOK A brook is a small stream. Brook may refer to the following places:
United States
For the first quarter of 2006, 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 of the Company were $141.9 million compared to $119.9 million in the first quarter 2005. Adjusted earnings before interest, taxes, depreciation, and amortization Earnings before interest, taxes, depreciation, and amortization (EBITDA) A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. ("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 to $24.0 million from $18.1 million in the first quarter of 2005 for NSP, and increased to $23.9 million from $17.9 million in the first quarter of 2005 for the Company, which represented an increase of 32.7% and 33.4%, respectively. The Company's net sales increase of $22.0 million, or 18.3%, was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to increased net sales in each of its three operating segments. In the general safety and preparedness pre·par·ed·ness n. The state of being prepared, especially military readiness for combat. Noun 1. preparedness - the state of having been made ready or prepared for use or action (especially military action); "putting them segment, the net sales increase of $16.5 million, or 19.9%, reflects a combination of overall organic growth and incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. net sales resulting from the acquisition of The Fibre-Metal Products Company ("Fibre-Metal"), which offset unfavorable exchange rates. In our fire service segment, net sales increased $1.1 million, or 4.7%, due primarily to incremental net sales from the acquisition of American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Firewear, Inc. ("American Firewear"). In our electrical safety segment, net sales increased $4.4 million, or 31.1%, primarily driven by strong overall market demand and new product penetration The successful unauthorized breach of a security perimeter. See penetration test. . The Company's gross profit increased by $9.4 million, or 21.2%, primarily due to the increase in net sales and gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. improvement. Gross profit margin of 37.9% in the first quarter of 2006 compared favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to the 37.0% gross profit margin in the prior-year quarter. Excluding the impact of $0.7 million of inventory purchase accounting adjustments, the Company's gross profit increased $10.1 million, or 22.8% and the Company's gross profit margin improved to 38.4%. In the first quarter of 2006, income from operations increased $0.7 million, or 4.4% for NSP and increased $0.8 million, or 4.9% for the Company. Included in income from operations for the three months ended April 1, 2006 were: (1) inventory purchase accounting charges of $0.7 million; (2) incremental amortization expense of $2.6 million related to purchase accounting; and (3) non-cash management incentive compensation charges of $0.8 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's option plan. Excluding these charges, income from operations increased by $4.8 million, or 30.8% for NSP and $4.9 million, or 31.6% for the Company. In our general safety and preparedness segment (after adjusting for incremental charges related to purchase accounting of $1.9 million), income from operations increased by $4.4 million, or 50.1% primarily due to higher net sales volume and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. margin realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. . In our fire service segment (after adjusting for incremental charges related to purchase accounting of $1.0 million), income from operations decreased by $0.7 million, or 16.3% as higher net sales were offset by lower margin realization (in part due to the American Firewear integration) and higher general and administrative expenses. In our electrical safety segment (after adjusting for incremental charges related to purchase accounting of $0.4 million), income from operations increased by $1.6 million, or 42.4% primarily due to higher net sales and favorable plant performance. Our corporate expenses increased $1.2 million for NSP and $1.1 million for the Company, primarily due to management incentive compensation charges of $0.8 million related to our equity option plan and higher payroll payroll a list of employees, their salary rates, tax deductions, amounts paid, payroll tax, long service leave entitlements. costs during the three month period ended April 1, 2006. In November November: see month. 2005, the Company completed the acquisition of all of the issued and outstanding capital stock of Fibre-Metal. The purchase price of $68.7 million (including $0.7 million of acquisition costs) was financed through $65.0 million of additional term borrowings under a senior credit facility and cash on the balance sheet. In February February: see month. 2006, the Company completed the acquisition of all of the issued and outstanding capital stock of American Firewear. The purchase price of $5.5 million consisted of $4.5 million in cash (including $0.2 million of acquisition costs and net of cash acquired of $0.2 million) and the issuance of a $1.0 million subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. seller note. As of April 1, 2006, NSP and the Company had working capital of $137.2 million and $141.5 million and cash of $11.3 million and $11.9 million, respectively. The Company's capital expenditures were $2.3 million in the first quarter of 2006 and $1.3 million in the first quarter of 2005. The following table reconciles net income to EBITDA and Adjusted EBITDA for NSP:
Predecessor (1) Successor (1)
--------------- ---------------
Three Months Ended
-------------------------------
April 2, April 1,
2005 2006
--------------- ---------------
Net income $8,292 $6,794
Add:
Interest expense, net 5,349 6,299
Income tax expense 1,574 3,554
Depreciation and amortization expense 2,847 5,865
--------------- ---------------
EBITDA (2) 18,062 22,512
Add:
Management incentive compensation -- 800
Inventory purchase accounting
adjustment -- 741
Gain on sale of property, plant and
equipment -- (79)
--------------- ---------------
Adjusted EBITDA (2) $18,062 $23,974
=============== ===============
The following table reconciles net income to EBITDA and Adjusted
EBITDA for the Company:
Predecessor (1) Successor (1)
--------------- ---------------
Three Months Ended
-------------------------------
April 2, April 1,
2005 2006
--------------- ---------------
Net income $3,194 $3,687
Add:
Interest expense, net 10,293 11,085
Income tax expense 1,604 1,835
Depreciation and amortization expense 2,847 5,865
--------------- ---------------
EBITDA (2) 17,938 22,472
Add:
Management incentive compensation -- 800
Inventory purchase accounting
adjustment -- 741
Gain on sale of property, plant and
equipment -- (79)
--------------- ---------------
Adjusted EBITDA (2) $17,938 $23,934
=============== ===============
(1) The information for the three months ended April 1, 2006 and the
three months ended April 2, 2005 has been derived from the
unaudited statements of operation.
(2) EBITDA and Adjusted EBITDA do not represent and should not be
considered as an alternative to net income or cash flow from
operations, as determined by accounting principles generally
accepted in the United States (GAAP), and NSP's and the Company's
calculations thereof may not be comparable to that reported by
other companies. EBITDA and Adjusted EBITDA are calculated above
as it is a basis upon which NSP and the Company assesses their
liquidity position and because we believe that they present useful
information to investors regarding a company's ability to service
and/or incur indebtedness. This belief is based on NSP's and the
Company's negotiations with its lenders who have indicated that
the amount of indebtedness it will be permitted to incur will be
based, in part, on measures similar to their EBITDA and Adjusted
EBITDA. EBITDA and Adjusted EBITDA do not take into account NSP's
and the Company's working capital requirements, debt service
requirements and other commitments and, accordingly, are not
necessarily indicative of amounts that may be available for
discretionary use.
We are a leading designer, manufacturer and marketer of branded products in the fragmented frag·ment n. 1. A small part broken off or detached. 2. An incomplete or isolated portion; a bit: overheard fragments of their conversation; extant fragments of an old manuscript. 3. personal protection equipment industry. We manufacture and market a full line of personal protection equipment for workers in the general safety and preparedness, fire service and electrical safety industries. We sell our products under trusted, long-standing long-stand·ing adj. Of long duration or existence: a long-standing friendship. long-standing Adjective existing for a long time and well-recognized brand names, including North, KCL KCL - Kyoto Common Lisp , Fibre-Metal, Morning Pride, Ranger Ranger Any of a series of unmanned probes launched from 1961 to 1965 by NASA. The project was NASA's earliest attempt to explore the Moon's surface. Ranger 4 (1962) became the first U.S. spacecraft to hit the Moon, crash-landing on its surface as planned. , Servus Servus (Czech: Servus, Hungarian: Szervusz, Polish: Serwus, German: Servus, Romanian: Servus, Ukrainian: Сервус) is a greeting or parting salute. , Pro-Warrington, American Firewear and Salisbury Salisbury, town and district, England Salisbury (sôlz`bərē) or New Sarum (sâr`əm), town (1991 pop. 36,890) and district, Wiltshire, S England. . Our broad product offering includes, among other things, respiratory respiratory /res·pi·ra·to·ry/ (res´pi-rah-tor?e) pertaining to respiration. res·pi·ra·to·ry adj. Of, relating to, used in, or affecting respiration. protection, protective footwear Footwear consists of garments worn on the feet. It is worn for a variety of reasons, including protection against the environment, hygiene and adornment. Usually, socks and other hosiery are worn between the feet and the footwear, except for sandals and flip flops (thongs). , hand protection, bunker gear Bunker gear is a term used in many fire departments to refer to the system of outer protective clothing worn by firefighters, also commonly known as "turnout gear" or "structural gear". and linemen n. pl. 1. the football players who line up on the line of scrimmage. Noun 1. linemen - the football players who line up on the line of scrimmage equipment. We have scheduled a conference call to discuss our financial results on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , May 12th at 10:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . The call in number is (877) 690-6769. A recording of the conference call will be available for 72 hours after the completion of the call. The recording can be accessed by dialing (800) 633-8284 and entering reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. number 21291954. This press release contains forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information. These statements reflect management's expectations, estimates, and assumptions based on information available at the time of the statement. 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. include, but are not limited to, statements regarding future events, plans, goals, objectives, and expectations. The words ''anticipate,'' ''believe,'' ''estimate,'' ''expect,'' ''plan,'' ''intent,'' ''likely,'' ''will,'' ''should,'' and similar expressions are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties, and other factors, including those set forth below, which may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements 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 those statements. Important factors that could cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by those statements include, but are not limited to: (i) our high degree of leverage and significant debt service obligations; (ii) the impact of current and future laws and governmental regulations affecting us or our product offerings; (iii) the impact of governmental spending; (iv) our ability to retain existing customers, maintain key supplier status with those customers with which we have achieved such status, and obtain new customers; (v) the highly competitive nature of the personal protection equipment industry; (vi) any future changes in management; (vii) acceptance by consumers of new products we develop or acquire; (viii) the importance and costs of product innovation; (ix) unforeseen problems associated with international sales, including gains and losses from foreign currency exchange and restrictions on the efficient repatriation Repatriation The process of converting a foreign currency into the currency of one's own country. Notes: If you are American, converting British Pounds back to U.S. dollars is an example of repatriation. of earnings; (x) the unpredictability of patent protection and other intellectual property issues; (xi) cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. of current orders; (xii) the outcome of pending product liability claims and the availability of indemnification Indemnification Used in insurance policy agreements as to compensation for damage or loss. In the context of corporate governance, Director Indemnification uses the bylaws and/or charter to indemnify officers and directors from certain legal expenses and judgements resulting from for those claims; (xiii) general risks associated with the personal protection equipment industry; and (xiv) the successful integration of acquired companies on economically ec·o·nom·i·cal adj. 1. Prudent and thrifty in management; not wasteful or extravagant. See Synonyms at sparing. 2. Intended to save money, as by efficient operation or elimination of unnecessary features; economic: acceptable terms. We undertake no obligation to publicly update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, or changes to future results over time.
Norcross Safety Products L.L.C.
Consolidated Statements of Operations
(Amounts in Thousands) (Unaudited)
Predecessor (1) Successor (1)
--------------- ---------------
Three Months Ended
-------------------------------
April 2, April 1,
2005 2006
--------------- ---------------
Net sales $119,944 $141,876
Cost of goods sold 75,602 88,145
--------------- ---------------
Gross profit 44,342 53,731
Operating expenses:
Selling 11,378 12,875
Distribution 6,274 7,926
General and administrative 10,943 13,917
Amortization of intangibles 142 2,726
--------------- ---------------
Total operating expenses 28,737 37,444
--------------- ---------------
Income from operations 15,605 16,287
Other expense (income):
Interest expense 5,599 6,462
Interest income (250) (163)
Other, net 386 (371)
--------------- ---------------
Income before income taxes and minority
interest 9,870 10,359
Income tax expense 1,574 3,554
Minority interest 4 11
--------------- ---------------
Net income $8,292 $6,794
=============== ===============
(1) On July 19, 2005, all the outstanding units of NSP were acquired
by Holdings, with the result that NSP became a wholly-owned
subsidiary of Holdings. NSP's financial position and results of
operations prior to the acquisition are presented separately in
the consolidated financial statements as "Predecessor" financial
statements, while the financial position and results of operations
following the acquisition are presented as "Successor" financial
statements. Due to the revaluation of assets as a result of
purchase accounting associated with the acquisition, the
pre-acquisition financial statements are not comparable with those
after the acquisition in certain respects.
Norcross Safety Products L.L.C.
Consolidated Balance Sheets
(Amounts in Thousands) (Unaudited)
December 31, April 1,
2005 (1) 2006
--------------- ---------------
Assets
Current assets:
Cash and cash equivalents $20,683 $11,346
Accounts receivable, less allowance of
$2,317 and $2,267 in 2005 and 2006,
respectively 68,286 79,288
Inventories 93,462 97,523
Deferred income taxes 3,230 3,230
Prepaid expenses and other current
assets 3,135 2,753
--------------- ---------------
Total current assets 188,796 194,140
Property, plant, and equipment, net 67,315 66,973
Deferred financing costs, net 7,513 7,186
Goodwill, net 136,487 141,010
Other intangible assets, net 276,842 274,981
Other noncurrent assets 5,109 4,902
--------------- ---------------
Total assets $682,062 $689,192
=============== ===============
Liabilities and member's equity
Current liabilities:
Accounts payable $21,229 $25,234
Accrued expenses 34,683 28,703
Current maturities of long-term
obligations 2,735 3,016
--------------- ---------------
Total current liabilities 58,647 56,953
Pension, post-retirement and deferred
compensation 32,340 32,071
Long-term obligations 309,664 309,638
Other noncurrent liabilities 5,376 5,360
Deferred income taxes 52,496 52,345
Minority interest 176 187
--------------- ---------------
400,052 399,601
Member's equity:
Contributed capital 221,068 222,018
Retained earnings 308 6,929
Accumulated other comprehensive income 1,987 3,691
--------------- ---------------
Total member's equity 222,363 232,638
--------------- ---------------
Total liabilities and member's equity $682,062 $689,192
=============== ===============
(1) Information was obtained from audited financial statements.
Norcross Safety Products L.L.C.
Consolidated Statements of Cash Flows
(Amounts in Thousands) (Unaudited)
Predecessor (1) Successor (1)
--------------- ---------------
Three Months Ended
-------------------------------
April 2, April 1,
2005 2006
--------------- ---------------
Operating activities
Net income $8,292 $6,794
Adjustments to reconcile net income to
net cash used in operating activities:
Depreciation 2,705 3,139
Amortization of intangibles 142 2,726
Amortization of deferred financing
costs 461 327
Amortization of original issue
discount (premium) 25 (251)
Deferred income taxes 237 (151)
Minority interest 4 11
Management incentive compensation -- 800
Gain on sale of property, plant, and
equipment -- (79)
Changes in operating assets and
liabilities:
Accounts receivable (8,540) (10,337)
Inventories (969) (3,104)
Prepaid expenses and other current
assets 220 382
Other noncurrent assets 73 73
Accounts payable 2,445 3,768
Accrued expenses (7,533) (6,092)
Pension, postretirement and
deferred compensation 14 (269)
Other noncurrent liabilities (6) (15)
Other (6) (7)
--------------- ---------------
Net cash used in operating activities (2,436) (2,285)
Investing activities
Purchase of businesses, net of cash
acquired (431) (5,636)
Purchases of property, plant, and
equipment (1,327) (2,291)
Proceeds from sale of property, plant,
and equipment -- 113
--------------- ---------------
Net cash used in investing activities (1,758) (7,814)
Financing activities
Proceeds from borrowings -- 1,000
Payments of debt (13,013) (494)
Capital contribution -- 150
Due from NSP Holdings L.L.C. (178) --
Dividends to Safety Products Holdings, Inc. -- (173)
--------------- ---------------
Net cash (used in) provided by
financing activities (13,191) 483
Effect of exchange rate changes on cash (1,424) 279
--------------- ---------------
Net decrease in cash and cash
equivalents (18,809) (9,337)
Cash and cash equivalents at beginning
of period 35,731 20,683
--------------- ---------------
Cash and cash equivalents at end of
period $16,922 $11,346
=============== ===============
(1) On July 19, 2005, all the outstanding units of NSP were acquired
by Holdings, with the result that NSP became a wholly-owned
subsidiary of Holdings. NSP's financial position and results of
operations prior to the acquisition are presented separately in
the consolidated financial statements as "Predecessor" financial
statements, while the financial position and results of operations
following the acquisition are presented as "Successor" financial
statements. Due to the revaluation of assets as a result of
purchase accounting associated with the acquisition, the
pre-acquisition financial statements are not comparable with those
after the acquisition in certain respects.
Safety Products Holdings, Inc.
Consolidated Statements of Operations
(Amounts in Thousands) (Unaudited)
Predecessor (1) Successor (1)
--------------- ---------------
Three Months Ended
-------------------------------
April 2, April 1,
2005 2006
--------------- ---------------
Net sales $119,944 $141,876
Cost of goods sold 75,602 88,145
--------------- ---------------
Gross profit 44,342 53,731
Operating expenses:
Selling 11,378 12,875
Distribution 6,274 7,926
General and administrative 11,067 13,957
Amortization of intangibles 142 2,726
--------------- ---------------
Total operating expenses 28,861 37,484
--------------- ---------------
Income from operations 15,481 16,247
Other expense (income):
Interest expense 10,721 11,248
Interest income (428) (163)
Other, net 386 (371)
--------------- ---------------
Income before income taxes and minority
interest 4,802 5,533
Income tax expense 1,604 1,835
Minority interest 4 11
--------------- ---------------
Net income $3,194 $3,687
=============== ===============
(1) On July 19, 2005, all the outstanding units of NSP were acquired
by Holdings from NSP Holdings L.L.C. ("NSP Holdings"), with the
result that Holdings became the sole unit holder of NSP and
assumed, pursuant to a supplemental indenture, the obligations of
NSP Holdings and NSP Holdings Capital Corp. ("Capital") under
their outstanding $100 million 11 3/4% Senior Pay in Kind Notes
due 2012 and the indenture governing such notes. NSP Holdings'
financial position and results of operations prior to the
acquisition are presented separately in the consolidated financial
statements as "Predecessor" financial statements, while the
financial position and results of operations of Holdings following
the acquisition are presented as "Successor" financial statements.
Due to the revaluation of assets as a result of purchase
accounting associated with the acquisition, the pre-acquisition
financial statements are not comparable with those after the
acquisition in certain respects.
Safety Products Holdings, Inc.
Consolidated Balance Sheets
(Amounts in Thousands) (Unaudited)
December 31, April 1,
2005 (1) 2006
--------------- ---------------
Assets
Current assets:
Cash and cash equivalents $20,819 $11,896
Accounts receivable, less allowance of
$2,317 and $2,267 in 2005 and 2006,
respectively 68,286 79,288
Inventories 93,462 97,523
Deferred income taxes 3,230 3,230
Prepaid expenses and other current
assets 3,206 2,794
--------------- ---------------
Total current assets 189,003 194,731
Property, plant, and equipment, net 67,315 66,973
Deferred financing costs, net 19,669 18,836
Goodwill, net 135,718 140,241
Other intangible assets, net 276,842 274,981
Other noncurrent assets 5,109 4,902
--------------- ---------------
Total assets $693,656 $700,664
=============== ===============
Liabilities and shareholders' equity
Current liabilities:
Accounts payable $21,229 $25,234
Accrued expenses 34,137 25,894
Current maturities of long-term
obligations 1,846 2,098
--------------- ---------------
Total current liabilities 57,212 53,226
Pension, post-retirement and deferred
compensation 32,340 32,071
Long-term obligations 441,393 445,676
Other noncurrent liabilities 5,376 5,360
Deferred income taxes 50,268 50,499
Minority interest 176 187
--------------- ---------------
529,553 533,793
Shareholders' equity:
Common shares 110 110
Contributed capital 109,560 110,923
Accumulated deficit (4,766) (1,079)
Accumulated other comprehensive income 1,987 3,691
--------------- ---------------
Total shareholders' equity 106,891 113,645
--------------- ---------------
Total liabilities and shareholders'
equity $693,656 $700,664
=============== ===============
(1) Information was obtained from audited financial statements.
Safety Products Holdings, Inc.
Consolidated Statements of Cash Flows
(Amounts in Thousands) (Unaudited)
Predecessor (1) Successor (1)
--------------- ---------------
Three Months Ended
-------------------------------
April 2, April 1,
2005 2006
--------------- ---------------
Operating activities
Net income $3,194 $3,687
Adjustments to reconcile net income to
net cash used in operating activities:
Depreciation 2,705 3,139
Amortization of intangibles 142 2,726
Amortization of deferred financing
costs 601 833
Amortization of net original issue
discount (premium) 25 (35)
Deferred income taxes 237 231
Minority interest 4 11
Noncash interest 4,982 4,064
Management incentive compensation -- 800
Gain on sale of property, plant and
equipment -- (79)
Changes in operating assets and
liabilities:
Accounts receivable (8,540) (10,337)
Inventories (969) (3,104)
Prepaid expenses and other current
assets 220 412
Other noncurrent assets 73 73
Accounts payable 2,445 3,768
Accrued expenses (7,499) (8,353)
Pension, postretirement and
deferred compensation 14 (269)
Other noncurrent liabilities (6) (15)
Other (6) (9)
--------------- ---------------
Net cash used in operating activities (2,378) (2,457)
Investing activities
Purchase of businesses, net of cash
acquired (431) (5,636)
Purchases of property, plant, and
equipment (1,327) (2,291)
Proceeds from sale of property, plant,
and equipment -- 113
--------------- ---------------
Net cash used in investing activities (1,758) (7,814)
Financing activities
Payments for deferred financing costs (3,700) --
Proceeds from borrowings 100,000 1,000
Payments of debt (13,013) (494)
Capital contribution -- 563
Distributions on preferred units (60,000) --
Distributions on common units (2,500) --
--------------- ---------------
Net cash provided by financing
activities 20,787 1,069
Effect of exchange rate changes on cash (1,424) 279
--------------- ---------------
Net increase (decrease) in cash and
cash equivalents 15,227 (8,923)
Cash and cash equivalents at beginning
of period 35,731 20,819
--------------- ---------------
Cash and cash equivalents at end of
period $50,958 $11,896
=============== ===============
(1) On July 19, 2005, all the outstanding units of NSP were acquired
by Holdings from NSP Holdings, with the result that Holdings
became the sole unit holder of NSP and assumed, pursuant to a
supplemental indenture, the obligations of NSP Holdings and
Capital under their outstanding $100 million 11 3/4% Senior Pay in
Kind Notes due 2012 and the indenture governing such notes. NSP
Holdings' financial position and results of operations prior to
the acquisition are presented separately in the consolidated
financial statements as "Predecessor" financial statements, while
the financial position and results of operations of Holdings
following the acquisition are presented as "Successor" financial
statements. Due to the revaluation of assets as a result of
purchase accounting associated with the acquisition, the
pre-acquisition financial statements are not comparable with those
after the acquisition in certain respects.
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