UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 4, 2008
QUANEX BUILDING PRODUCTS
CORPORATION
(Exact name of registrant as
specified in its charter)
| Delaware | 1-33913 | 26-1561397 | ||
| (State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
| 1900 West Loop South, Suite
1500, Houston, Texas |
77027 | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code: 713-961-4600
| (Former name or former address if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition
On December 4, 2008, Quanex Building Products Corporation (the “Company”) issued a press release (the “Press Release”) reporting its earnings results for the fiscal fourth quarter and fiscal year 2008. The foregoing is qualified by reference to the Press Release which is filed as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
The press release attached hereto as Exhibit 99.1 contains “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. Statements that use the words “expect,” “should,” “believe,” “will,” “might,” or similar words reflecting future expectations or beliefs are forward-looking statements. Factors that could impact future results may include, without limitation, the effect of both domestic and global economic conditions, the impact of competitive products and pricing, and the availability and cost of raw materials. For a more complete discussion of factors that may affect the Company’s future performance, please refer to the Company’s Information Statement attached as Exhibit 99.1 to the Company’s Registration Statement on Form 10, filed April 4, 2008 and effective April 9, 2008, in particular the sections titled “Risk Factors” and “Special Note About Forward-Looking Statements” contained therein.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Retirement of Director
As previously announced last May, Mr. Raymond A. Jean retired from his role as Executive Chairman and a member of the Board of Directors of Quanex Building Products Corporation, on December 4, 2008.
Item 9.01. Financial Statements and Exhibits.
| (a) | Financial Statements of businesses acquired. |
Not applicable
| (b) | Pro forma financial information. |
Not applicable
| (c) | Exhibits. |
| 99.1 | Press Release dated December 4, 2008 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| QUANEX BUILDING PRODUCTS CORPORATION (Registrant) |
||
| December 4, 2008 | /s/ Brent L. Korb | |
| (Date) | Brent L. Korb Senior Vice President – Finance and Chief Financial Officer (Principal Financial Officer) |
Exhibit Index
| 99.1 | Press Release dated December 4, 2008 |
Exhibit 99.1
| Quanex Building Products | News Release |
Quanex Building Products Corporation
Fiscal Fourth Quarter and Fiscal 2008 Results
Fiscal Fourth Quarter and Fiscal 2008 Results
4th Quarter EPS from Continuing Operations of $0.32 before a LIFO Gain
Company’s Sales Outperformed the Market for the Quarter and Year
$65 Million Cash and Equivalents Less Debt
Company’s Sales Outperformed the Market for the Quarter and Year
$65 Million Cash and Equivalents Less Debt
Houston, Texas, December 4, 2008 — Quanex Building Products Corporation (NYSE:NX) today reported
fiscal fourth quarter and fiscal 2008 results for the period ending October 31, 2008. Income from
continuing operations for the quarter and year were $11.9 million and $30.8 million, respectively,
and diluted earnings per share from continuing operations for the quarter and year were $0.32 and
$0.80, respectively, before spinoff related costs and LIFO impact.
Including spinoff related costs and LIFO impact, income from continuing operations for the quarter
and year were $15.0 million and $15.9 million, respectively, and diluted earnings per share from
continuing operations for the quarter and year were $0.40 and $0.41, respectively.
Fiscal Fourth Quarter and Fiscal 2008 Highlights
| • | David D. Petratis, the company’s president and chief executive officer, assumed the additional role of chairman of the board upon the planned retirement of Raymond A. Jean, effective December 5. | |
| • | Jairaj T. Chetnani joined the company as vice president and treasurer effective December 1. | |
| • | Net sales in the quarter were $246.3 million versus $255.5 million in the year ago quarter. 2008 net sales were $868.9 million compared to $964 million in 2007. | |
| • | Cash provided by operating activities from continuing operations in 2008 was $53 million. | |
| • | Capital expenditures for the fiscal year were $15.8 million. | |
| • | Cash and equivalents less debt totaled $65 million at year end. | |
| • | LIFO transactions: recorded a fourth quarter LIFO gain of $5.1 million ($3.1 million after tax, $0.08 per diluted share). For 2008, recorded a LIFO charge of $0.4 million ($0.2 million after tax, $0.01 per diluted share). LIFO activity in 2008 was primarily associated with the aluminum sheet business. | |
| • | Spinoff related costs: recorded fiscal 2008 costs of $26.5 million ($14.7 million after tax, $0.38 per diluted share). |
1
Fiscal Fourth Quarter and Fiscal 2008 Commentary
ENGINEERED PRODUCTS ($ in millions)
| 4th qtr 2008 | 4th qtr 2007 | FY 2008 | FY 2007 | |||||||||||||
Net Sales |
$ | 112.9 | $ | 123.9 | $ | 407.9 | $ | 457.8 | ||||||||
Operating Inc. |
$ | 10.1 | $ | 13.2 | $ | 29.9 | $ | 43.8 | ||||||||
Engineered Products is focused on providing window and door customers with value-added fenestration
products and components. Key market drivers are housing starts and remodeling activity.
“The U.S. housing market deteriorated 35% in our fiscal fourth quarter compared to the year ago
quarter, and starts for fiscal 2008 were off 31% compared to a year ago. Residential remodeling
activity was estimated to be down 10% in fiscal 2008 compared to last year. Net sales for the
quarter and year at our Engineered Products segment were down 9% and 11%, respectively. Our
ability to consistently outperform the market, even in this very tough economic environment, is
testimony to the market-leading positions our customers hold in the window and door industry, and
importantly, our collaboration with them on new product and program initiatives,” said David D.
Petratis, president and chief executive officer of Quanex Building Products. “We believe
Engineered Products has one of the best combinations of engineering and design support, innovative
products and components, and logistical support in the industry, all backed by the considerable
financial strength of Quanex Building Products,” continued Petratis.
ALUMINUM SHEET PRODUCTS (in millions)
| 4th qtr 2008 | 4th qtr 2007 | FY 2008 | FY 2007 | |||||||||||||
Net Sales |
$ | 139.0 | $ | 136.1 | $ | 479.9 | $ | 524.2 | ||||||||
Operating Inc. |
$ | 12.6 | $ | 18.3 | $ | 40.3 | $ | 65.7 | ||||||||
Shipped pounds |
81 | 84 | 285 | 311 | ||||||||||||
Aluminum Sheet Products is a leading provider of common alloy aluminum sheet products for the
building and construction, transportation and other consumer durable markets. Key market drivers
are housing starts and remodeling activity, which together represent about 65% of the segment’s
sales.
“Shipments at Nichols Aluminum were approximately 81 million pounds in the quarter, down 4% from
the year ago quarter. 2008 shipments of 285 million pounds were off 8% from last year. Spread per
pound (selling price less material cost) was down 5% from both the fourth quarter 2007 and third
quarter of 2008. We were pleased with the spread at Nichols, however, reduced shipments and a
lower mix of painted sheet hurt their bottom line,” Petratis said.
2
Cash Flow
“Our cash and equivalents less debt at year end were $65 million. We have one remaining favorable cash true-up item for taxes related to the merger of Quanex Corporation with Gerdau S.A. We currently estimate the true-up to be $15 million, down from the original estimate of $20 million as the various tax returns near completion. We expect to receive this cash in the first calendar quarter of 2009. Operating cash flow from continuing operations in 2008 came in at $53 million. We continue to closely monitor our working capital, and at quarter end, our conversion cycle, the time required to convert a customer order to cash, was approximately 31 days,” continued Petratis.
“Our cash and equivalents less debt at year end were $65 million. We have one remaining favorable cash true-up item for taxes related to the merger of Quanex Corporation with Gerdau S.A. We currently estimate the true-up to be $15 million, down from the original estimate of $20 million as the various tax returns near completion. We expect to receive this cash in the first calendar quarter of 2009. Operating cash flow from continuing operations in 2008 came in at $53 million. We continue to closely monitor our working capital, and at quarter end, our conversion cycle, the time required to convert a customer order to cash, was approximately 31 days,” continued Petratis.
Outlook
The company’s fiscal first quarter segment operating income has historically been its lowest when compared to the other quarters of the year as there are fewer production days and a marked decline in residential building and remodeling activity during this time. This seasonality will be exacerbated given today’s weak economic conditions. First quarter 2009 expectations indicate the company will report an operating loss of between $7 million to $11 million before taking into account approximately $5.5 million of corporate expenses (excluding any LIFO impact). The majority of the loss is expected to come from Aluminum Sheet Products due to significantly lower shipments and a deteriorating spread. As in most years, the company expects to report improved operating results each sequential quarter of fiscal 2009.
The company’s fiscal first quarter segment operating income has historically been its lowest when compared to the other quarters of the year as there are fewer production days and a marked decline in residential building and remodeling activity during this time. This seasonality will be exacerbated given today’s weak economic conditions. First quarter 2009 expectations indicate the company will report an operating loss of between $7 million to $11 million before taking into account approximately $5.5 million of corporate expenses (excluding any LIFO impact). The majority of the loss is expected to come from Aluminum Sheet Products due to significantly lower shipments and a deteriorating spread. As in most years, the company expects to report improved operating results each sequential quarter of fiscal 2009.
While the company expects to continue to outperform the market, the overall economic volatility and
the ongoing uncertainty surrounding 2009 housing starts and residential remodeling activity does
not allow it to reasonably predict fiscal 2009 operating income at this time. However, the company
does expect to be profitable for the year. The company will continue to monitor and analyze ongoing
economic changes and the impact those changes will have on its operating performance throughout the
year. Estimates for fiscal 2009 depreciation / amortization, and capital expenditures are $35
million and $18 million, respectively.
Non-GAAP Financial Measures
Income from Continuing Operations Before Spinoff Related Costs and LIFO Impact
Income from Continuing Operations Before Spinoff Related Costs and LIFO Impact
Income from continuing operations before spinoff related costs and LIFO impact is a non-GAAP
financial measure. The company believes this non-GAAP financial measure provides a consistent
basis for comparison between quarters and years, and enhances the understanding of the performance
of its operations as they are not influenced by certain costs incurred during the periods that are
believed to be special and related to specific, infrequent items.
3
Set forth below is a reconciliation of reported income from continuing operations and reported
diluted earnings per share from continuing operations to income from continuing operations before
spinoff related costs and LIFO impact and diluted earnings per share from continuing operations
before spinoff related costs and LIFO impact. The company does not intend for this information to
be considered in isolation or as a substitute for other measures prepared in accordance with GAAP.
| Three months ended October 31, | Twelve months ended October 31, | |||||||||||||||||||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||||||||||||||||||
| (in millions except | Net | Diluted | Net | Diluted | Net | Diluted | Net | Diluted | ||||||||||||||||||||||||
| diluted EPS) | Income | EPS | Income | EPS | Income | EPS | Income | EPS | ||||||||||||||||||||||||
Income from continuing operations, as reported |
$ | 15.0 | $ | 0.40 | $ | 17.6 | $ | 0.44 | $ | 15.9 | $ | 0.41 | $ | 57.1 | $ | 1.45 | ||||||||||||||||
LIFO charge (income) |
(3.1 | ) | (0.08 | ) | (0.3 | ) | — | 0.2 | 0.01 | (0.8 | ) | (0.03 | ) | |||||||||||||||||||
After-tax reconciling items associated with the
company’s spinoff: |
||||||||||||||||||||||||||||||||
Stock based compensation expense |
— | — | — | — | 13.7 | 0.36 | — | — | ||||||||||||||||||||||||
Transaction costs |
— | — | — | — | 2.9 | 0.08 | — | — | ||||||||||||||||||||||||
Executive incentives & other
benefits |
— | — | — | — | 0.5 | — | — | — | ||||||||||||||||||||||||
Selling, general & administrative
expense |
— | — | — | — | 17.1 | 0.44 | — | — | ||||||||||||||||||||||||
Rabbi trust merger consideration |
— | — | — | — | (2.4 | ) | (0.06 | ) | — | — | ||||||||||||||||||||||
Total after-tax spinoff related
costs |
— | — | — | — | 14.7 | 0.38 | — | — | ||||||||||||||||||||||||
Income from continuing operations, excluding
LIFO & spinoff related costs |
$ | 11.9 | $ | 0.32 | $ | 17.3 | $ | 0.44 | $ | 30.8 | $ | 0.80 | $ | 56.3 | $ | 1.42 | ||||||||||||||||
Diluted weighted average common shares
outstanding (in thousands) |
37,466 | 39,703 | 38,528 | 39,509 | ||||||||||||||||||||||||||||
Dividend Declared
The Board of Directors declared a quarterly cash dividend of $0.03 per share on the company’s common stock, payable December 31, 2008, to shareholders of record on December 18, 2008.
The Board of Directors declared a quarterly cash dividend of $0.03 per share on the company’s common stock, payable December 31, 2008, to shareholders of record on December 18, 2008.
Corporate Profile
Quanex Building Products Corporation is an industry-leading manufacturer of value-added, engineered materials and components serving the building products markets. It is an ROIC-driven company that grows shareholder returns through a combination of organic growth via new products and programs and strategic acquisitions.
Quanex Building Products Corporation is an industry-leading manufacturer of value-added, engineered materials and components serving the building products markets. It is an ROIC-driven company that grows shareholder returns through a combination of organic growth via new products and programs and strategic acquisitions.
4
Financial Statistics as of 10/31/08
Book value per common share: $14.55; Total debt to capitalization: 0.5%; Actual number of common shares outstanding: 37,657,891
Book value per common share: $14.55; Total debt to capitalization: 0.5%; Actual number of common shares outstanding: 37,657,891
Definitions
Book value per common share — calculated as total stockholders’ equity as of balance sheet date divided by actual number of common shares outstanding;
Total debt to capitalization — calculated as the sum of both the current and long term portion of debt, as of balance sheet date, divided by the sum of both the current and long term portion of debt plus total stockholders’ equity as of balance sheet date;
Operating margin — combined operating income of aluminum sheet products and engineered products divided by combined net sales.
Book value per common share — calculated as total stockholders’ equity as of balance sheet date divided by actual number of common shares outstanding;
Total debt to capitalization — calculated as the sum of both the current and long term portion of debt, as of balance sheet date, divided by the sum of both the current and long term portion of debt plus total stockholders’ equity as of balance sheet date;
Operating margin — combined operating income of aluminum sheet products and engineered products divided by combined net sales.
Statements that use the words “expect,” “should,” “believe,” “will,” “might,” or similar words
reflecting future expectations or beliefs are forward-looking statements. The statements found
above are based on current expectations. Actual results or events may differ materially from this
release. Factors that could impact future results may include, without limitation, the effect of
both domestic and global economic conditions, the impact of competitive products and pricing, and
the availability and cost of raw materials. For a more complete discussion of factors that may
affect the company’s future performance, please refer to the company’s Registration Statement on
Form 10, filed with the SEC on April 4, 2008 pursuant to the Securities Exchange Act of 1934, in
particular the section titled, “Special Note About Forward-Looking Statements” contained therein.
Financial Contact: Jeff Galow, 713-877-5327
Media Contact: Valerie Calvert, 713-877-5305
Media Contact: Valerie Calvert, 713-877-5305
For additional information, visit the company’s website at www.quanex.com.
5
QUANEX BUILDING PRODUCTS CORPORATION
INDUSTRY SEGMENT INFORMATION
(In thousands)
(Unaudited)
INDUSTRY SEGMENT INFORMATION
(In thousands)
(Unaudited)
| Three months ended | Twelve months ended | |||||||||||||||
| October 31, | October 31, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
Net sales: |
||||||||||||||||
| $ | 112,866 | $ | 123,866 | Engineered Products |
$ | 407,896 | $ | 457,764 | ||||||||
| 139,037 | 136,123 | Aluminum Sheet Products |
479,925 | 524,215 | ||||||||||||
| 251,903 | 259,989 | Building Products |
887,821 | 981,979 | ||||||||||||
| (5,558 | ) | (4,463 | ) | Eliminations |
(18,888 | ) | (18,005 | ) | ||||||||
| $ | 246,345 | $ | 255,526 | Net sales |
$ | 868,933 | $ | 963,974 | ||||||||
Operating income: |
||||||||||||||||
| $ | 10,101 | $ | 13,220 | Engineered Products |
$ | 29,881 | $ | 43,815 | ||||||||
| 12,565 | 18,330 | Aluminum Sheet Products |
40,260 | 65,732 | ||||||||||||
| 22,666 | 31,550 | Building Products |
70,141 | 109,547 | ||||||||||||
| 1,332 | (4,152 | ) | *Corporate and Other |
(49,160 | ) | (21,378 | ) | |||||||||
| $ | 23,998 | $ | 27,398 | *Operating Income (Loss) |
$ | 20,981 | $ | 88,169 | ||||||||
| * | Corporate and Other and Operating Income for the three and twelve months ended October 31, 2008 include | |
| $5.1 million LIFO income and $0.4 million LIFO expense, respectively. In addition, Corporate and Other and | ||
| Operating Income for the twelve months ended October 31, 2008 include $26.5 million of special charges | ||
| associated with the spin-off / merger transaction which predominantly occurred in the second quarter of 2008. |
6
QUANEX BUILDING PRODUCTS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
| Three months ended | Twelve months ended | |||||||||||||||
| October 31, | October 31, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| $ | 246,345 | $ | 255,526 | Net sales |
$ | 868,933 | $ | 963,974 | ||||||||
| 199,080 | 201,389 | Cost of sales (exclusive of items shown separately below) |
717,376 | 767,138 | ||||||||||||
| 14,822 | 16,325 | Selling, general and administrative expense |
95,504 | 70,676 | ||||||||||||
| 8,445 | 10,414 | Depreciation and amortization |
35,072 | 37,991 | ||||||||||||
| 23,998 | 27,398 | Operating income (loss) |
20,981 | 88,169 | ||||||||||||
| (124 | ) | (139 | ) | Interest expense |
(480 | ) | (591 | ) | ||||||||
| 312 | 124 | Other, net |
5,188 | 383 | ||||||||||||
| 24,186 | 27,383 | Income (loss) from continuing operations before income taxes |
25,689 | 87,961 | ||||||||||||
| (9,176 | ) | (9,774 | ) | Income tax expense |
(9,785 | ) | (30,830 | ) | ||||||||
| 15,010 | 17,609 | Income (loss) from continuing operations |
15,904 | 57,131 | ||||||||||||
| — | 24,470 | Income (loss) from discontinued operations, net of taxes |
5,675 | 77,491 | ||||||||||||
| $ | 15,010 | $ | 42,079 | Net income (loss) |
$ | 21,579 | $ | 134,622 | ||||||||
Basic earnings per common share: |
||||||||||||||||
| $ | 0.40 | $ | 0.47 | Earnings (loss) from continuing operations |
$ | 0.43 | $ | 1.54 | ||||||||
| $ | — | $ | 0.66 | Income (loss) from discontinued operations |
$ | 0.15 | $ | 2.10 | ||||||||
| $ | 0.40 | $ | 1.13 | Basic earnings (loss) per common share |
$ | 0.58 | $ | 3.64 | ||||||||
Diluted earnings per common share: |
||||||||||||||||
| $ | 0.40 | $ | 0.44 | Earnings (loss) from continuing operations |
$ | 0.41 | $ | 1.45 | ||||||||
| $ | — | $ | 0.62 | Income (loss) from discontinued operations |
$ | 0.15 | $ | 1.96 | ||||||||
| $ | 0.40 | $ | 1.06 | Diluted earnings (loss) per share |
$ | 0.56 | $ | 3.41 | ||||||||
Weighted average common shares outstanding: |
||||||||||||||||
| 37,333 | 37,075 | Basic |
37,274 | 36,982 | ||||||||||||
| 37,466 | 39,703 | Diluted |
38,528 | 39,509 | ||||||||||||
7
QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| October 31, | October 31, | |||||||
| 2008 | 2007 | |||||||
Assets |
||||||||
| $ | 67,413 | Cash and equivalents |
$ | 1,778 | ||||
| 101,211 | Accounts and notes receivable, net |
80,095 | ||||||
| 63,848 | Inventories, net |
53,556 | ||||||
| 10,932 | Deferred income taxes |
5,370 | ||||||
| 6,239 | Other current assets |
4,372 | ||||||
| — | Current assets of discontinued operations |
431,326 | ||||||
| 249,643 | Total current assets |
576,497 | ||||||
| 157,389 | Property, plant and equipment, net |
173,590 | ||||||
| 3,875 | Deferred income taxes |
— | ||||||
| 196,338 | Goodwill |
196,385 | ||||||
| 62,476 | Intangible assets, net |
68,199 | ||||||
| 11,126 | Other assets |
9,225 | ||||||
| — | Assets of discontinued operations |
310,926 | ||||||
| $ | 680,847 | Total assets |
$ | 1,334,822 | ||||
Liabilities and stockholders’ equity |
||||||||
| $ | 79,512 | Accounts payable |
$ | 68,167 | ||||
| 38,316 | Accrued liabilities |
37,102 | ||||||
| — | Income taxes payable |
— | ||||||
| 363 | Current maturities of long-term debt |
1,464 | ||||||
| — | Current liabilities of discontinued operations |
242,570 | ||||||
| 118,191 | Total current liabilities |
349,303 | ||||||
| 2,188 | Long-term debt |
2,551 | ||||||
| — | Deferred income taxes |
34,457 | ||||||
| 2,485 | Non-current environmental reserves |
4,239 | ||||||
| 10,155 | Other liabilities |
13,889 | ||||||
| — | Liabilities of discontinued operations |
47,234 | ||||||
| 133,019 | Total liabilities |
451,673 | ||||||
| 547,828 | Total stockholders’ equity |
883,149 | ||||||
| $ | 680,847 | Total liabilities and stockholders’ equity |
$ | 1,334,822 | ||||
8
QUANEX BUILDING PRODUCTS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)
CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)
| Twelve months ended | ||||||||
| October 31, | ||||||||
| 2008 | 2007 | |||||||
Operating activities: |
||||||||
Net income |
$ | 21,579 | $ | 134,622 | ||||
Income from discontinued operations |
(5,675 | ) | (77,491 | ) | ||||
Net income from continuing operations |
15,904 | 57,131 | ||||||
Adjustments to reconcile net income to cash provided by
operating activities: |
||||||||
Depreciation and amortization |
35,111 | 38,000 | ||||||
Deferred income taxes |
2,984 | 796 | ||||||
Stock-based compensation |
26,378 | 4,925 | ||||||
| 80,377 | 100,852 | |||||||
Changes in assets and liabilities, net of effects from
acquisitions, dispositions and the Separation: |
||||||||
Decrease (Increase) in accounts and notes receivable |
(21,495 | ) | (1,140 | ) | ||||
Decrease (Increase) in inventory |
(10,398 | ) | 2,012 | |||||
Decrease (Increase) in other current assets |
(390 | ) | 177 | |||||
Increase (Decrease) in accounts payable |
11,406 | (868 | ) | |||||
Increase (Decrease) in accrued liabilities |
(3,285 | ) | (2,356 | ) | ||||
Increase (Decrease) in income taxes payable |
1,088 | (736 | ) | |||||
Increase (Decrease) in deferred pension and postretirement benefits |
(2,515 | ) | 2,851 | |||||
Other, net |
(1,824 | ) | 3,518 | |||||
Cash provided by (used for) operating activities from
continuing operations |
52,964 | 104,310 | ||||||
Cash provided by (used for) operating activities from
discontinued operations |
25,127 | 119,764 | ||||||
Cash provided by (used for) operating activities |
78,091 | 224,074 | ||||||
Investing activities: |
||||||||
Capital expenditures, net of retirements |
(15,815 | ) | (15,904 | ) | ||||
Other, net |
(23 | ) | — | |||||
Cash provided by (used for) investing activities from
continuing operations |
(15,838 | ) | (15,904 | ) | ||||
Cash provided by (used for) investing activities from
discontinued operations |
34,113 | (121,070 | ) | |||||
Cash provided by (used for) investing activities |
18,275 | (136,974 | ) | |||||
Financing activities: |
||||||||
Repayments of long-term debt |
(1,464 | ) | (2,721 | ) | ||||
Common dividends paid |
(2,258 | ) | — | |||||
Funding from Separation |
32,735 | — | ||||||
Transfers to Quanex Corporation |
— | (86,312 | ) | |||||
Other, net |
(302 | ) | — | |||||
Cash provided by (used for) financing activities from
continuing operations |
28,711 | (89,033 | ) | |||||
Cash provided by (used for) financing activities from
discontinued operations |
(46,183 | ) | 68,906 | |||||
Cash provided by (used for) financing activities |
(17,472 | ) | (20,127 | ) | ||||
Effect of exchange rate changes on cash and equivalents |
(202 | ) | 158 | |||||
LESS: (Increase) Decrease in cash and equivalents from
discontinued operations |
(13,057 | ) | (67,600 | ) | ||||
Increase (Decrease) in cash and equivalents from continuing operations |
65,635 | (469 | ) | |||||
Beginning of period cash and equivalents |
1,778 | 2,247 | ||||||
End of period cash and equivalents |
$ | 67,413 | $ | 1,778 | ||||
9