-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MEtl8ewQd8MZ5aUAZajUB6yGx0biKycYXMMGt7apz3PcjNOFj6XUaQzjHAIeSzhn yObzpf7FbyH1P6Nt8dFtBA== 0000950131-03-002814.txt : 20030513 0000950131-03-002814.hdr.sgml : 20030513 20030513165659 ACCESSION NUMBER: 0000950131-03-002814 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030513 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030513 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TERRA INDUSTRIES INC CENTRAL INDEX KEY: 0000722079 STANDARD INDUSTRIAL CLASSIFICATION: AGRICULTURE CHEMICALS [2870] IRS NUMBER: 521145429 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08520 FILM NUMBER: 03696141 BUSINESS ADDRESS: STREET 1: 600 FOURTH ST STREET 2: PO BOX 6000 CITY: SIOUX CITY STATE: IA ZIP: 51102-6000 BUSINESS PHONE: 7122771340 MAIL ADDRESS: STREET 1: 600 FOURTH STREET STREET 2: PO BOX 6000 CITY: SIOUX CITY STATE: IA ZIP: 51102-6000 FORMER COMPANY: FORMER CONFORMED NAME: INSPIRATION RESOURCES CORP DATE OF NAME CHANGE: 19920517 8-K 1 d8k.txt FORM 8-K - -------------------------------------------------------------------------------- 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): May 13, 2003 Terra Industries, Inc. (Exact name of registrant as specified in its charter) Maryland 0-8520 52-1145429 (State or other (Commission File (IRS Employer jurisdiction of Number) Identification No.) incorporation)
Terra Centre 600 Fourth Street, P.O. Box 6000 Sioux City, Iowa 51102-6000 (Address of principal executive offices, including zip code) (712) 277-1340 (Registrant's telephone number) - -------------------------------------------------------------------------------- Item 5. Other Events Effective January 1, 2003, Terra Industries Inc. ("Terra"), adopted Statement of Financial Standards No. 145, "Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13 and Technical Corrections" to the financial information filed with our Form 10-K filing for the year ended December 31, 2002. Application of this statement reclassifies an extraordinary loss on early retirement of debt for the year ending December 31, 2001 to continuing operations. Terra is filing this Form 8-K to enable investors to compare the previous years' financial reporting to that including application of FASB Statement No. 145. Application of this statement does not affect consolidated operating revenues or net income, but does affect the 2001 reporting of financial information listed below. Item 7. Financial Statements and Exhibits. (c) Exhibits. Exhibit Number Description 23.1 Consent of Deloitte & Touche LLP 99.1 Financial information described in Item 5 above. Table of Contents Page ---- Updated information for the year ended December 31, 2002: Consolidated Statements of Operations 4 Consolidated Statements of Cash Flows 5 Notes to Consolidated Financial Statements - Note 1. Summary of Significant Accounting Policies 6 Note 3. Earnings Per Share 9 Note 19. Income Taxes 10 Note 21. Guarantor Subsidiaries 12 Note 25. Subsequent Event - Adoption of SFAS No. 145 20 Independent Auditors' Report 21 Financial Summary 22 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. TERRA INDUSTRIES, INC. By: /S/ MARK A. KALAFUT ------------------------------ Vice President, General Counsel and Corporate Secretary Date: May 13, 2003 3 EX-23.1 3 dex231.txt CONSENT OF DELOITTE & TOUCHE Exhibit 23.1 INDEPENDENT AUDITORS' CONSENT We consent to the incorporation by reference in Registration Statements Nos. 333-32869, 33-46735, 33-46734 and 33-30058 of Terra Industries Inc. and subsidiaries on Forms S-8 and Registration Statement Nos. 2-90808, 2-84876, 2-84669 and 333-68766 of Terra Industries Inc. and subsidiaries on Form S-3 of our reports dated January 30, 2003, except for Note 24, as to which the date is February 28, 2003 and Note 25, as to which the date is May 12, 2003, appearing in the current report on Form 8-K. DELOITTE & TOUCHE LLP Omaha, Nebraska May 12, 2003 EX-99.1 4 dex991.txt SELECTED FINANCIAL DATA- Exhibit 99.1 Consolidated Statements of Operations
Year ended December 31, - --------------------------------------------------------------------------------------------------------- (in thousands, except per-share amounts) 2002 2001 2000 - --------------------------------------------------------------------------------------------------------- Revenues Net sales $1,042,429 $1,032,610 $1,053,452 Other income, net 1,554 4,700 9,558 - --------------------------------------------------------------------------------------------------------- 1,043,983 1,037,310 1,063,010 - --------------------------------------------------------------------------------------------------------- Cost and Expenses Cost of sales 1,009,970 1,047,219 975,966 Selling, general and administrative expense 39,420 37,886 44,237 Product claim costs -- 14,023 -- - --------------------------------------------------------------------------------------------------------- 1,049,390 1,099,128 1,020,203 - --------------------------------------------------------------------------------------------------------- Income (loss) from operations (5,407) (61,818) 42,807 Insurance settlement costs -- -- (5,968) Interest income 543 3,364 3,869 Interest expense (53,800) (53,594) (51,511) Minority interest (1,510) 2,247 (5,379) Loss on early retirement of debt -- (3,042) -- - --------------------------------------------------------------------------------------------------------- Loss from continuing operations before income taxes (60,174) (112,843) (16,182) Income tax benefit (24,000) (33,000) (6,000) - --------------------------------------------------------------------------------------------------------- Loss from continuing operations (36,174) (79,843) (10,182) Discontinued operations, net of income taxes of $9.5 million (Note 12) (16,183) -- -- Cumulative effect of change in accounting principle (Note 2) (205,968) -- -- - --------------------------------------------------------------------------------------------------------- Net Loss $ (258,325) $ (79,843) $ (10,182) ========================================================================================================= Basic and Diluted Loss Per Share: Continuing operations $ (0.48) $ (1.06) $ (0.14) Discontinued operations (0.22) -- -- Cumulative effect of change in accounting principle (2.73) -- -- - --------------------------------------------------------------------------------------------------------- Net Loss Per Share $ (3.43) $ (1.06) $ (0.14) =========================================================================================================
See accompanying Notes to the Consolidated Financial Statements. 4 Consolidated Statements of Cash Flows
Year ended December 31, - ------------------------------------------------------------------------------------------------------------------- (in thousands) 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------- Operating Activities Net loss $(258,325) $ (79,843) $(10,182) Adjustments to reconcile net loss to net cash flows from operating activities: Loss from discontinued operations 16,183 --- --- Cumulative effect of change in accounting principle 205,968 --- --- Loss on early retirement of debt --- 3,042 --- Depreciation and amortization 105,856 130,772 125,630 Deferred income taxes (29,246) (32,533) 1,881 Minority interest in earnings (loss) 1,510 (2,247) 5,379 Change in current assets and liabilities: Accounts receivable 2,929 4,184 (7,644) Inventories 24,263 (10,635) 28,388 Other current assets 9,567 (20,808) 13,981 Accounts payable 17,461 13,366 (22,978) Accrued and other liabilities 52,931 (20,790) 11,078 Other (2,861) (354) (1,975) - ------------------------------------------------------------------------------------------------------------------- Net Cash Flows From Operating Activities 146,236 (15,846) 143,558 - ------------------------------------------------------------------------------------------------------------------- Investing Activities Purchase of property, plant and equipment (25,186) (14,838) (12,219) Plant turnaround costs (24,260) (30,408) (21,754) Other (7,203) 18,638 6,063 - ------------------------------------------------------------------------------------------------------------------- Net Cash Flows From Investing Activities (56,649) (26,608) (27,910) - ------------------------------------------------------------------------------------------------------------------- Financing Activities Net short-term debt repayments --- --- (6,000) Issuance of long-term debt --- 200,000 --- Principal payments on long-term debt and capital lease obligations (36,101) (236,752) (7,107) Stock issuance - net 608 180 7 Distributions to minority interests (1,846) (2,028) (1,119) Repurchase of TNCLP common units --- (1,671) (2,414) Deferred financing costs (1,173) (11,442) (6,697) - ------------------------------------------------------------------------------------------------------------------- Net Cash Flows from Financing Activities (38,512) (51,713) (23,330) - ------------------------------------------------------------------------------------------------------------------- Effect of Exchange Rate Changes on Cash 279 (133) (683) - ------------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Cash and Short-Term Investments 51,354 (94,300) 91,635 Cash and Short-Term Investments at Beginning of Year 7,125 101,425 9,790 - ------------------------------------------------------------------------------------------------------------------- Cash and Short-Term Investments at End of Year $ 58,479 $ 7,125 $101,425 =================================================================================================================== Supplemental disclosure of cash flow information: Interest Paid $ 54,267 $ 50,130 $ 50,851 =================================================================================================================== Income Taxes Received $ 5,292 $ 288 $ 14,058 =================================================================================================================== Supplemental schedule of non-cash investing and financing activities: Capital Lease Obligations $ 292 $ 366 $ --- ===================================================================================================================
See accompanying Notes to the Consolidated Financial Statements. 5 1. Summary of Significant Accounting Policies Basis of presentation: The Consolidated Financial Statements include the accounts of Terra Industries Inc. and all majority owned subsidiaries (Terra). All significant intercompany accounts and transactions have been eliminated. Minority interest in earnings and ownership has been recorded for the percentage of limited partnership common units not owned by Terra Industries Inc. for each respective period presented. Description of business: Terra produces nitrogen products for agricultural dealers and industrial users, and methanol for industrial users. Foreign exchange: Results of operations for the foreign subsidiaries are translated using average currency exchange rates during the period; assets and liabilities are translated using current rates. Resulting translation adjustments are recorded as foreign currency translation adjustments in accumulated other comprehensive income in stockholders' equity. Cash and short-term investments: Terra considers short-term investments with an original maturity of three months or less to be cash equivalents, which are reflected at their approximate fair value. Inventories: Inventories are stated at the lower of average cost and estimated net realizable value. The average cost of inventories is determined using the first-in, first-out method. Property, plant and equipment: Expenditures for plant and equipment additions, replacements and major improvements are capitalized. Related depreciation is charged to expense on a straight-line basis over estimated useful lives ranging from 15 to 22 years for buildings and 3 to 18 years for plants and equipment. Equipment under capital leases is recorded in property with the corresponding obligations in long-term debt. The amount capitalized is the present value at the beginning of the lease term of the aggregate future minimum lease payments. Maintenance and repair costs are expensed as incurred. Plant turnaround costs: Costs related to the periodic scheduled major maintenance of continuous process production facilities (plant turnarounds) are deferred and charged to product costs on a straight-line basis during the period until the next scheduled turnaround, generally two years. Amortization expense of $24.3 million, $23.3 million and $28.6 million was recorded for the years ended December 31, 2002, 2001 and 2000, respectively. Debt issuance costs: The costs related to the issuance of debt are amortized over the life of the debt on a straight-line method, which approximates the effective interest method. Amortization expense of deferred financing costs of $2.8 million, $3.1 million and $1.2 million was recorded for the years ended December 31, 2002, 2001 and 2000, respectively. Excess of costs over net assets of acquired businesses: Terra amortized costs in excess of fair value of net assets of businesses acquired using the straight-line method over periods ranging from 15 to 18 years. Unamortized costs were written off through a charge that was reported as the cumulative effect of accounting change during the 2002 first quarter. See Note 2 - Cumulative Effect of Change in Accounting Principle. Impairment of long-lived assets: In accordance with Statement of Financial Accounting Standards ("SFAS") No. 144, "Accounting for the Impairment of Long-Lived Assets", Terra reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the expected 6 future cash flows expected to result from the use of the asset (undiscounted and without interest charges) is less than the carrying amount of the asset, an impairment loss is recognized based on the difference between the carrying amount and the fair value of the asset. To date, no such impairment has occurred. Derivatives and financial instruments: Terra accounts for derivatives in accordance with SFAS No. 133 "Accounting from Derivative Instruments and Hedging Activities." SFAS No. 133 requires the recognition of derivatives in the balance sheet and the measurement of these instruments at fair value. Changes in the fair value of derivatives are recorded in earnings unless the normal purchase or sale exception applies or hedge accounting is elected. Terra enters into derivative instruments including futures contracts, swap agreements and purchased options to fix prices for a portion of future natural gas production requirements. Terra has designated, documented and assessed accounting for hedge relationships, which mostly resulted in cash flow hedges that require Terra to record the derivatives assets and liabilities at their fair value on the balance sheet with an offset in other comprehensive income ("OCI"). Hedge ineffectiveness is recorded in earnings. Amounts are removed from other comprehensive income as the underlying transactions occur and realized gains or losses are recorded. Accumulated other comprehensive (income) loss: Accumulated other comprehensive loss consisted of the following at December 31:
(in thousands) 2002 2001 - ------------------------------------------------------------------------------------------- Foreign currency translation adjustment $38,558 $63,072 Derivatives, net of taxes of ($2,652) and $2,763 (3,978) 4,512 Minimum pension liability, net of taxes of $17,310 and $7,257 29,088 10,886 - ------------------------------------------------------------------------------------------- Total $63,668 $78,470 ===========================================================================================
Revenue recognition: Revenue is recognized when title to finished product passes to the customer. Revenue is recognized as the net amount to be received after deducting estimated amounts for discounts and trade allowances. Revenues include amounts paid by customers for shipping and handling. Cost of sales and hedging transactions: Realized gains and losses from hedging activities and premiums paid for option contracts are deferred and recognized in the month to which the hedged transactions relate (see Note 13 - Derivative Financial Instruments). Costs associated with settlement of natural gas purchase contracts and costs for shipping and handling are included in cost of sales. Stock-based compensation: Terra accounts for its employee stock-based compensation plans in accordance with Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees," and related interpretations, which utilizes the intrinsic value method. Terra follows the disclosure provisions and accounts for non-employee stock-based compensation in accordance with Statement of Financial Accounting Standards ("SFAS") No. 123, "Accounting for Stock-Based Compensation." The pro forma impact on net loss and diluted loss per share of accounting for stock-based compensation using the fair value method required by SFAS 123, "Accounting for Stock-Based Compensation" follows:
(in thousands, except per-share data) 2002 2001 2000 - ------------------------------------------------------------------------------------------------- Net loss As reported $(258,325) $(79,843) $(10,182) Pro forma (258,385) (80,031) (11,123) Diluted loss per share As reported $ (3.43) $ (1.06) $ (0.14) Pro forma (3.43) (1.07) (0.15)
7 Per-share results: Basic earnings per share data are based on the weighted-average number of Common Shares outstanding during the period. Diluted earnings per share data are based on the weighted-average number of Common Shares outstanding and the effect of all dilutive potential common shares including stock options, restricted shares and contingent shares. Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Reclassifications: Certain reclassifications have been made to prior years' financial statements and notes to conform with current year presentation. Recently issued accounting standards: In July 2001, the Financial Accounting Standards Board ("FASB") issued SFAS No. 143, "Accounting for Asset Retirement Obligations". This standard requires Terra to record the fair value of a liability for an asset retirement obligation in the period in which it is incurred and is effective for Terra's fiscal year 2003. Terra does not expect the impact, if any, arising from the adoption of this standard to be material to our financial position. In April 2002, the FASB issued SFAS No. 145, "Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13 and Technical Corrections". SFAS 145 concludes that debt extinguishment used as part of a company's risk management strategy should not be classified as an extraordinary item. SFAS 145 also requires sale-leaseback accounting for certain lease modifications that have economic effects that are similar to sale-leaseback transactions. On adoption of SFAS No. 145, Terra has reclassified an extraordinary loss on early retirement of debt in 2001 to continuing operations. In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated with Exit or Disposal Activities". This standard requires that Terra recognize a liability for a cost associated with an exit or disposal activity when the liability is incurred rather than recognition of the liability at the date of a commitment to an exit plan and is effective for exit or disposal activities that are initiated after December 31, 2002. On December 2002, the FASB issued SFAS No. 148, "Accounting for Stock-Based Compensation-Transition and Disclosure". SFAS 148 amends SFAS No. 123 "Accounting for Stock-Based Compensation", to provide alternative methods of transition for a voluntary change to the fair value based method of accounting for stock-based employee compensation. In addition, this Statement amends the disclosure requirements of Statement 123 to require prominent disclosures in both annual and interim financial statements about the method of accounting for stock-based employee compensation and the effects of the method used on reported results. This standard was effective for Terra's fiscal year-end 2002. In November 2002, the FASB issued FASB Interpretation ("FIN") No. 45 "Guarantor's Accounting and Disclosure Requirements, Including Indirect Guarantees of Indebtedness of Others". FIN 45 clarifies that a guarantor is required to recognize, at the inception of a guarantee, a liability for the fair value of the obligation undertaken in issuing certain guarantees. FIN 45 also expands the disclosure to be made by a guarantor in its financial statements about its obligations under certain guarantees that it has issued. The provisions of FIN 45 are applicable on a prospective basis to guarantees issued or modified after December 31, 2002. The disclosure requirements of FIN 45 are effective for Terra in 2003. Terra believes that FIN 45 will not have a significant impact, if any, to our financial position. 8 3. Earnings Per Share The following table provides a calculation of Basic and Diluted Loss Per Share.
2002 2001 2000 --------- -------- -------- (in thousands, except per-share data) Basic and diluted loss per share computation: Loss from continuing operations $ (36,174) $(79,843) $(10,182) Loss from discontinued operations (16,183) -- -- --------- -------- -------- Loss before change in accounting principle (52,357) (79,843) (10,182) Cumulative effect of change in accounting principle (205,968) -- -- --------- -------- -------- Loss applicable to common shareholders $(258,325) $(79,843) $(10,182) ========= ======== ======== Basic and diluted weighted average shares outstanding 75,349 75,118 74,707 Loss per share from continuing operations $ (0.48) $ (1.06) $ (0.14) Loss per share from discontinued operations (0.22) -- -- --------- -------- -------- Loss per share before change in accounting principle (0.70) (1.06) (0.14) Cumulative effect of change in accounting principle (2.73) -- -- --------- -------- -------- Basic and diluted loss per share $ (3.43) $ (1.06) $ (0.14) ========= ======== ========
9 19. Income Taxes Components of the income tax provision (benefit) applicable to continuing operations are as follows:
2002 2001 2000 - ----------------------------------------------------------------------------------------------------------- (in thousands) Current: Federal $(28,863) $ (34,596) $(21,451) Foreign 218 (52) 215 State (5,227) (5,447) (1,592) - ----------------------------------------------------------------------------------------------------------- (33,872) (40,085) (22,828) - ----------------------------------------------------------------------------------------------------------- Deferred: Federal 9,284 9,899 9,612 Foreign (11) (4,670) 6,842 State 599 1,866 374 - ----------------------------------------------------------------------------------------------------------- 9,872 7,095 16,828 - ----------------------------------------------------------------------------------------------------------- Total income tax benefit $(24,000) $ (33,000) $ (6,000) =========================================================================================================== The following table reconciles the income tax provision (benefit) per the Statements of Operations to the federal statutory provision: 2002 2001 2000 - ----------------------------------------------------------------------------------------------------------- (in thousands) Loss from continuing operations before taxes: Domestic $(60,345) $ (77,469) $(36,782) Foreign 171 (35,374) 20,600 - ----------------------------------------------------------------------------------------------------------- $(60,174) $(112,843) $(16,182) =========================================================================================================== Statutory income tax provision (benefit): Domestic $(21,121) $ (26,961) $(12,874) Foreign 208 (11,521) 7,107 - ----------------------------------------------------------------------------------------------------------- (20,913) (38,482) (5,767) Purchased Canadian tax benefit --- --- (1,750) Foreign adjustments --- 6,801 --- Non-deductible expenses, primarily goodwill 70 6,216 6,152 State and local income taxes (2,353) (2,482) (1,126) Other (804) (5,053) (3,509) - ----------------------------------------------------------------------------------------------------------- Income tax benefit $(24,000) $ (33,000) $ (6,000) =========================================================================================================== The tax effect of net operating loss (NOL), tax credit carryforwards and temporary differences between reported and taxable earnings that rise to net deferred tax assets (liabilities) were as follows: 2002 2001 - ----------------------------------------------------------------------------------------------------------- (in thousands) Current deferred tax liability Accrued liabilities $ (11,898) $ (5,568) Inventory valuation 180 267 - ----------------------------------------------------------------------------------------------------------- Net current deferred tax liability (11,718) (5,301) - -----------------------------------------------------------------------------------------------------------
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Non-current deferred tax liability Depreciation (202,912) (196,190) Investments in partnership (20,278) (23,684) U.S. international tax allowance (14,688) (9,682) U.K. intercompany interest --- (3,815) Unfunded employee benefits 7,269 7,725 Discontinued business costs 12,707 4,540 Valuation allowance (21,276) (21,276) NOL, capital loss and tax credit carryforwards 151,629 127,563 Accumulated other comprehensive income 14,008 10,046 Other 793 (7,872) - -------------------------------------------------------------------------------- Net noncurrent deferred tax liability (72,748) (112,645) - -------------------------------------------------------------------------------- Net deferred tax liability $(84,466) $(117,946) ================================================================================ During 1996, after receiving a favorable ruling from Revenue Canada, Terra refreshed its tax basis in plant and equipment at its Canadian subsidiary by entering into a transaction with a Canadian subsidiary of Anglo American plc, resulting in a deferred tax asset for Terra. The refreshed amount of this tax basis was challenged by Revenue Canada in 2000. Terra's tax basis in certain other plants was also refreshed in 2001 due to ownership changes. Tax benefits of approximately $80 million related to these basis increases have not been recognized, pending ultimate resolution of these matters. The deferred tax asset related to NOLs includes $21.3 million which Terra's management believes more likely than not will not be realized. Therefore, a valuation allowance of $21.3 million has been provided by Terra. Terra will continue to assess the recoverability for these NOLs, which expire in 2011 and 2012. Components of income tax provision (benefit) included in net income other than from continuing operations are as follows: 2002 2001 2000 - -------------------------------------------------------------------------------- (in thousands) Current: Federal $ (9,456) $ -- $ -- - -------------------------------------------------------------------------------- $ (9,456) $ -- $ -- ================================================================================
11 21. Guarantor Subsidiaries The Parent files a consolidated United States federal income tax return. Beginning in 1995, the Parent adopted tax sharing agreements, under which all domestic operating subsidiaries provide for and remit income taxes to the Parent based on their pretax accounting income, adjusted for permanent differences between pretax accounting income and taxable income. The tax sharing agreements allocated the benefits of operating losses and temporary differences between financial reporting and tax basis income to the Parent. Condensed consolidating financial information regarding the Parent, TCAPI, the Guarantor Subsidiaries and subsidiaries of the Parent that are not guarantors of the Senior Secured Notes (see Note 11 - Long-term Debt) for December 31, 2002, 2001 and 2000 are presented below for purposes of complying with the reporting requirements of the Guarantor Subsidiaries. Guarantor subsidiaries include subsidiaries that own the Woodward, Oklahoma; Port Neal, Iowa and Beaumont, Texas plants as well as the corporate headquarters facility in Sioux City, Iowa. All other company facilities are owned by non-guarantor subsidiaries. Condensed Consolidating Statement of Financial Position for the Year Ended December 31, 2002:
Guarantor Non-Guarantor Parent TCAPI Subsidiaries Subsidiaries Eliminations Consolidated - ---------------------------------------------------------------------------------------------------------------------- (in thousands) Assets Cash and short-term investments $ 1 $ 15,388 $ --- $109,180 $ (66,090) $ 58,479 Accounts receivable --- --- 38,102 62,911 --- 101,013 Inventories --- --- 25,475 63,123 --- 88,598 Other current assets 6,391 --- 6,950 18,213 (353) 31,201 Total current assets 6,392 15,388 70,527 253,427 (66,443) 279,291 - ---------------------------------------------------------------------------------------------------------------------- Property, plant and equipment, net --- --- 396,722 397,753 (4,000) 790,475 Investments in and advanced to (from) affiliates 621,231 397,043 1,438,412 (76,472) (2,380,214) --- Other assets and deferred plant turnaround costs (479) 13,886 11,560 33,377 --- 58,344 - ---------------------------------------------------------------------------------------------------------------------- Total assets $ 627,144 $426,317 $1,917,221 $608,085 $(2,450,657) $1,128,110 ====================================================================================================================== Liabilities Debt due within one year $ --- $ --- $ 88 $ 55 $ --- $ 143 Accounts payable 201 1,525 107,647 51,985 (66,442) 94,916 Accrued and other liabilities 25,695 5,676 34,802 32,157 --- 98,330 - -------------------------------------------------------------------------------------------------------------------- Total current liabilities 25,896 7,201 142,537 84,197 (66,442) 193,389 - -------------------------------------------------------------------------------------------------------------------- Long-term debt 200,000 200,000 225 133 --- 400,358 Deferred income taxes 70,154 19,422 --- (16,828) --- 72,748 Pension and other liabilities 73,230 12,202 2,668 16,818 1 104,919 Minority interest --- 19,332 79,500 --- --- 98,832 - ---------------------------------------------------------------------------------------------------------------------- Total liabilities 369,280 258,157 224,930 84,320 (66,441) 870,246 - ---------------------------------------------------------------------------------------------------------------------- Stockholders' Equity Common stock 128,654 --- 73 49,709 (49,782) 128,654 Paid in capital 555,167 150,218 1,817,591 724,088 (2,691,897) 555,167 Accumulated other comprehensive income (loss) (63,668) (36,285) --- (18,238) 54,523 (63,668) Retained earnings (deficit) (362,289) 54,227 (125,373) (231,794) 302,940 (362,289) - ---------------------------------------------------------------------------------------------------------------------- Total stockholders' equity 257,864 168,160 1,692,291 523,765 (2,384,216) 257,864 - ---------------------------------------------------------------------------------------------------------------------- Total liabilities and stockholders' equity $ 627,144 $426,317 $1,917,221 $608,085 $(2,450,657) $1,128,110 ======================================================================================================================
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Condensed Consolidating Statement of Operations for the Year Ended December 31, 2002: Guarantor Non-Guarantor Parent TCAPI Subsidiaries Subsidiaries Eliminations Consolidated - ---------------------------------------------------------------------------------------------------------------------- (in thousands) Revenues Net sales $ -- $ -- $ 391,516 $643,745 $ 7,168 $1,042,429 Other income, net -- -- 4,640 4,082 (7,168) 1,554 - ---------------------------------------------------------------------------------------------------------------------- -- -- 396,156 647,827 -- 1,043,983 - ---------------------------------------------------------------------------------------------------------------------- Cost and Expenses Cost of sales -- -- 390,281 622,414 (2,725) 1,009,970 Selling, general and administrative expenses 3,634 (1,062) 25,627 10,159 1,062 39,420 - ---------------------------------------------------------------------------------------------------------------------- 3,634 (1,062) 415,908 632,573 (1,663) 1,049,390 - ---------------------------------------------------------------------------------------------------------------------- Loss from operations (3,634) 1,062 (19,752) 15,254 1,663 (5,407) Interest income 47 4,682 5,238 140 (9,564) 543 Interest expense (22,134) (31,608) (48) (9,542) 9,532 (53,800) Minority interest -- (295) (1,215) -- -- (1,510) Equity in the earnings (loss) of subsidiaries (240,629) (214,470) 9,898 983 444,218 -- - ---------------------------------------------------------------------------------------------------------------------- Loss from continuing operations before income taxes (266,350) (240,629) (5,879) 6,835 445,849 (60,174) Income tax benefit (provision) 24,208 -- -- (208) -- 24,000 - ---------------------------------------------------------------------------------------------------------------------- Income (loss) from continuing operations and cumulative effect of change in accounting principle (242,142) (240,629) (5,879) 6,627 445,849 (36,174) Discontinued operations, net of income taxes (16,183) -- -- -- -- (16,183) Cumulative effect of change in accounting principle -- -- (189,971) (15,997) -- (205,968) - ---------------------------------------------------------------------------------------------------------------------- Net Loss $(258,325) $ (240,629) $(195,850) $ (9,370) $445,849 $ (258,325) ======================================================================================================================
13 Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2002:
Guarantor Non-Guarantor Parent TCAPI Subsidiaries Subsidiaries Eliminations Consolidated - --------------------------------------------------------------------------------------------------------------------------- (in thousands) Operating Activities Net loss $(258,325) $(240,629) $(195,850) $ (9,370) $ 445,849 $(258,325) Cumulative effect of change in accounting principle -- -- 189,971 15,997 -- 205,968 Adjustments to reconcile net loss to net cash flows from operating activities: Depreciation and amortization -- 2,790 51,143 51,923 -- 105,856 Deferred income taxes (37,308) (380) 3,370 (8,555) 13,627 (29,246) Minority interest in earnings -- 295 1,215 -- -- 1,510 Equity in earnings (loss) of subsidiaries 240,629 214,470 (9,898) (983) (444,218) -- Change in operating assets and liabilities 24,275 (35,532) 94,027 65,320 (40,939) 107,151 Discontinued operations 16,183 -- -- -- -- 16,183 Other (2,578) -- -- -- (283) (2,861) - --------------------------------------------------------------------------------------------------------------------------- Net Cash Flows from Operating Activities (17,124) (58,986) 133,978 114,332 (25,964) 146,236 - --------------------------------------------------------------------------------------------------------------------------- Investing Activities Purchase of property, plant and equipment -- -- (3,004) (22,182) -- (25,186) Plant turnaround costs -- -- (8,191) (16,069) -- (24,260) Other -- -- 8,099 5,806 (21,108) (7,203) - --------------------------------------------------------------------------------------------------------------------------- Net Cash Flows from Investing Activities -- -- (3,096) (32,445) (21,108) (56,649) - --------------------------------------------------------------------------------------------------------------------------- Financing Activities Principal payments on long-term debt -- (36,277) (11) 187 -- (36,101) Change in investments and advances from (to) affiliates 4,914 119,442 (137,668) 38,385 (25,073) -- Stock issuance - net 608 -- -- -- -- 608 Distributions to minority interests -- (440) (1,406) -- -- (1,846) Deferred financing costs -- (1,173) -- -- -- (1,173) Other 11,603 (7,178) (8,730) (36,024) 40,329 -- - --------------------------------------------------------------------------------------------------------------------------- Net Cash Flows from Financing Activities 17,125 74,374 (147,815) 2,548 15,256 (37,339) - --------------------------------------------------------------------------------------------------------------------------- Effect of Foreign Exchange Rate on Cash -- -- -- -- 279 279 - --------------------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Cash and Short-term Investments 1 15,388 (16,933) 84,435 (31,537) 51,354 - --------------------------------------------------------------------------------------------------------------------------- Cash and Short-term investments at Beginning of Year -- -- 16,933 24,745 (34,553) 7,125 - --------------------------------------------------------------------------------------------------------------------------- Cash and Short-term Investments At End of Year $ 1 $ 15,388 $ -- $ 109,180 $ (66,090) $ 58,479 ===========================================================================================================================
14
Condensed Consolidating Statement of Financial Position for the Year Ended December 31, 2001: Guarantor Non-Guarantor (in thousands) Parent TCAPI Subsidiaries Subsidiaries Eliminations Consolidated - ----------------------------------------------------------------------------------------------------------------------------------- Assets Cash and short-term investments $ --- $ --- $ 16,933 $ 24,745 $ (34,553) $ 7,125 Accounts receivable --- 82 28,991 72,290 --- 101,363 Inventories --- --- 27,257 82,770 --- 110,027 Other current assets 5,723 --- 11,140 19,183 (904) 35,142 - ----------------------------------------------------------------------------------------------------------------------------------- Total current assets 5,723 82 84,321 198,988 (35,457) 253,657 - ----------------------------------------------------------------------------------------------------------------------------------- Property, plant and equipment, net --- --- 438,322 388,059 (1,399) 824,982 Excess of cost over net assets of acquired businesses --- --- 189,971 16,238 --- 206,209 Investments in and advanced to (from) affiliates 851,972 699,656 1,334,201 113,382 (2,999,211) --- Other assets and deferred plant turnaround costs 774 10,901 9,315 26,283 3,922 51,195 - ----------------------------------------------------------------------------------------------------------------------------------- Total assets $ 858,469 $ 710,639 $ 2,056,130 $ 742,950 $(3,032,145) $ 1,336,043 =================================================================================================================================== Liabilities Debt due within one year $ --- $ --- $ 68 $ --- $ --- $ 68 Accounts payable 78 412 32,075 42,512 --- 75,077 Accrued and other liabilities 875 42,403 15,113 11,416 (27,673) 42,134 - ----------------------------------------------------------------------------------------------------------------------------------- Total current liabilities 953 42,815 47,256 53,928 (27,673) 117,279 - ----------------------------------------------------------------------------------------------------------------------------------- Long-term debt 200,000 236,277 257 --- --- 436,534 Deferred income taxes 116,918 19,802 (3,370) (8,272) (12,433) 112,645 Pension and other liabilities 39,819 14,819 760 11,707 2,534 69,639 Minority interest --- 19,436 79,731 --- --- 99,167 - ----------------------------------------------------------------------------------------------------------------------------------- Total liabilities 357,690 333,149 124,634 57,363 (37,572) 835,264 - ----------------------------------------------------------------------------------------------------------------------------------- Stockholders' Equity Common stock 128,363 --- 73 49,709 (49,782) 128,363 Paid in capital 554,850 150,218 1,856,742 918,888 (2,925,848) 554,850 Accumulated other comprehensive income (loss) (78,470) (67,584) 2,398 (68,826) 134,012 (78,470) Retained earnings (deficit) (103,964) 294,856 72,283 (214,184) (152,955) (103,964) - ----------------------------------------------------------------------------------------------------------------------------------- Total stockholders' equity 500,779 377,490 1,931,496 685,587 (2,994,573) 500,779 - ----------------------------------------------------------------------------------------------------------------------------------- Total liabilities and stockholders' equity $ 858,469 $ 710,639 $ 2,056,130 $ 742,950 $(3,032,145) $ 1,336,043 ===================================================================================================================================
15 Condensed Consolidating Statement of Operations for the Year Ended December 31, 2001:
Guarantor Non-Guarantor Parent TCAPI Subsidiaries Subsidiaries Eliminations Consolidated -------- -------- ------------ ------------- ------------ ------------ (in thousands) Revenues Net sales $ --- $ --- $411,346 $621,163 $ 101 $1,032,610 Other income, net (2) --- 1,932 2,071 699 4,700 -------- -------- -------- -------- -------- ---------- (2) --- 413,278 623,234 800 1,037,310 -------- -------- -------- -------- -------- ---------- Cost and Expenses Cost of sales --- --- 438,444 605,122 3,653 1,047,219 Selling, general and administrative expenses 2,533 3,960 25,977 9,313 (3,897) 37,886 Product claim costs --- --- --- 14,023 14,023 -------- -------- -------- -------- -------- ---------- 2,533 3,960 464,421 628,458 (244) 1,099,128 -------- -------- -------- -------- -------- ---------- Loss from operations (2,535) (3,960) (51,143) (5,224) 1,044 (61,818) Interest income 465 3,685 --- 600 (1,386) 3,364 Interest expense (36,558) (10,352) 7,081 (14,997) 1,232 (53,594) Minority interest --- 440 1,807 --- --- 2,247 Loss on early retirement of debt --- (3,042) --- --- --- (3,042) Equity in the earnings (loss) of subsidiaries (64,503) (56,264) 6,088 (8,154) 122,833 --- -------- -------- -------- -------- -------- ---------- Loss from continuing operations before income taxes (103,131) (69,493) (36,167) (27,775) 123,723 (112,843) Income tax benefit (23,288) (4,990) --- (4,721) (1) (33,000) -------- -------- -------- -------- -------- ---------- Net Loss $(79,843) $(64,503) $(36,167) $(23,054) $123,724 $ (79,843) ======== ======== ======== ======== ======== ==========
16
Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2001: Guarantor Non-Guarantor Parent TCAPI Subsidiaries Subsidiaries Eliminations Consolidated - --------------------------------------------------------------------------------------------------------------------- (in thousands) Operating Activities Net loss $ (79,843) $ (64,503) $(36,167) $ (23,054) $ 123,724 $ (79,843) Adjustments to reconcile net loss to net cash flows from operating activities: Loss on early retirement of debt -- 3,042 -- -- -- 3,042 Depreciation and amortization -- 3,271 66,336 61,165 -- 130,772 Deferred income taxes (33,803) 2,620 (3,370) (12,227) 14,247 (32,533) Minority interest in earnings -- (440) (1,807) -- -- (2,247) Equity in earnings (loss) of subsidiaries 64,503 56,264 (6,088) 8,154 (122,833) -- Change in operating assets and liabilities (6,101) 36,247 4,376 (14,945) (54,260) (34,683) Other -- -- -- -- (354) (354) - --------------------------------------------------------------------------------------------------------------------- Net Cash Flows from Operating Activities (55,244) 36,501 23,280 19,093 (39,476) (15,846) - --------------------------------------------------------------------------------------------------------------------- Investing Activities Purchase of property, plant and equipment -- -- (4,443) (10,395) -- (14,838) Plant turnaround costs -- -- (7,427) (22,981) -- (30,408) Other -- -- 7,061 13,390 (1,813) 18,638 - --------------------------------------------------------------------------------------------------------------------- Net Cash Flows from Investing Activities -- -- (4,809) (19,986) (1,813) (26,608) - --------------------------------------------------------------------------------------------------------------------- Financing Activities Issuance of long-term debt -- 200,000 -- -- -- 200,000 Principal payments on long-term debt (158,755) 36,278 (8,650) (105,625) -- (236,752) Change in investments and advances from (to) affiliates 197,032 (339,731) 495 114,397 27,807 -- Stock issuance - net 180 -- -- -- -- 180 Distributions to minority interests -- (337) (1,691) -- -- (2,028) Repurchase of TNCLP common units -- (1,671) -- -- -- (1,671) Deferred financing costs and bond discounts -- (11,442) -- -- -- (11,442) Other 16,787 3,443 (3,536) 4,377 (21,071) -- - --------------------------------------------------------------------------------------------------------------------- Net Cash Flows from Financing Activities 55,244 (113,460) (13,382) 13,149 6,736 (51,713) - --------------------------------------------------------------------------------------------------------------------- Effect of Foreign Exchange Rate on Cash -- -- -- (133) -- (133) - --------------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Cash and Short-term Investments -- (76,959) 5,089 12,123 (34,553) (94,300) - --------------------------------------------------------------------------------------------------------------------- Cash and Short-term investments at Beginning of Year -- 76,959 11,844 12,622 -- 101,425 - --------------------------------------------------------------------------------------------------------------------- Cash and Short-term Investments At End of Year $ -- $ -- $ 16,933 $ 24,745 $ (34,553) $ 7,125 =====================================================================================================================
17 Condensed Consolidating Statement of Operations for the Year Ended December 31, 2000:
Guarantor Non-Guarantor Parent TCAPI Subsidiaries Subsidiaries Eliminations Consolidated - ---------------------------------------------------------------------------------------------------------------------- (in thousands) Revenues Net sales $ --- $ --- $383,628 $669,824 $ --- $1,053,452 Other income, net --- 401 4,205 4,952 --- 9,558 - ---------------------------------------------------------------------------------------------------------------------- --- 401 387,833 674,776 --- 1,063,010 - ---------------------------------------------------------------------------------------------------------------------- Cost and Expenses Cost of sales --- --- 376,337 595,376 --- 971,713 Selling, general and administrative expenses 1,471 1,089 31,709 14,221 --- 48,490 - ---------------------------------------------------------------------------------------------------------------------- 1,471 1,089 408,046 609,597 --- 1,020,203 - ---------------------------------------------------------------------------------------------------------------------- Income (loss) from operations (1,471) (688) (20,213) 65,179 --- 42,807 Insurance settlement costs --- --- (5,968) --- --- (5,968) Interest income 6 3,994 13,814 353 (14,298) 3,869 Interest expense (42,006) (792) (747) (22,894) 14,928 (51,511) Minority interest --- (995) (4,384) --- --- (5,379) Equity in the earnings (loss) of subsidiaries 20,232 17,300 42,199 19,402 (99,133) --- - ---------------------------------------------------------------------------------------------------------------------- Income (loss) from continuing operations before income taxes (23,239) 18,819 24,701 62,040 (98,503) (16,182) Income tax provision (benefit) (13,057) 7,500 --- 7,057 (7,500) (6,000) - ---------------------------------------------------------------------------------------------------------------------- Net Income (Loss) $(10,182) $11,319 $ 24,701 $ 54,983 $ (91,003) $ (10,182) ======================================================================================================================
18 Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2000:
Guarantor Non-Guarantor Parent TCAPI Subsidiaries Subsidiaries Eliminations Consolidated - --------------------------------------------------------------------------------------------------------------------------- (in thousands) Operating Activities Net income (loss) $ (10,182) $ 11,319 $ 24,701 $ 54,983 $ (91,003) $ (10,182) Adjustments to reconcile net loss to net cash flows from operating activities: Depreciation and amortization -- 925 63,733 60,972 -- 125,630 Deferred income taxes 76,326 (57,328) 92 3,092 (20,301) 1,881 Minority interest in earnings -- 996 4,383 -- -- 5,379 Equity in earnings (loss) of subsidiaries (20,232) (17,300) (42,199) (19,402) 99,133 -- Other non-cash items 286 -- -- -- (286) -- Change in operating assets and liabilities (4,422) (31,337) 29,811 33,410 (4,637) 22,825 Other -- -- -- -- (1,975) (1,975) - --------------------------------------------------------------------------------------------------------------------------- Net Cash Flows from Operating Activities 41,776 (92,725) 80,521 133,055 (19,069) 143,558 - --------------------------------------------------------------------------------------------------------------------------- Investing Activities Purchase of property, plant and equipment -- -- (1,676) (10,543) -- (12,219) Plant turnaround costs -- -- (7,774) (13,980) -- (21,754) Other -- -- 3,911 29,087 (26,935) 6,063 - --------------------------------------------------------------------------------------------------------------------------- Net Cash Flows from Investing Activities -- -- (5,539) 4,564 (26,935) (27,910) - --------------------------------------------------------------------------------------------------------------------------- Financing Activities Net short-term borrowings (repayments) -- (6,000) -- -- -- (6,000) Principal payments on long-term debt -- -- (2,493) (4,614) -- (7,107) Change in investments and advances from (to) affiliates (44,024) 181,367 (99,343) (99,934) 61,934 -- Stock issuance - net 2,240 -- -- -- (2,233) 7 Distributions to minority interests -- (207) (912) -- -- (1,119) Repurchase of TNCLP common units -- (2,414) -- -- -- (2,414) Deferred financing costs -- (6,697) -- -- -- (6,697) Other -- 4,135 11,157 (912) (14,380) -- - --------------------------------------------------------------------------------------------------------------------------- Net Cash Flows from Financing Activities (41,784) 170,184 (91,591) (105,460) 45,321 $ (23,330) Effect of Foreign Exchange Rate on Cash -- (683) -- (683) 683 (683) - --------------------------------------------------------------------------------------------------------------------------- Increase (Decrease) in Cash and Short-term Investments (8) 76,776 (16,609) 31,476 -- 91,635 - --------------------------------------------------------------------------------------------------------------------------- Cash and Short-term investments at Beginning of Year 8 183 28,453 (18,854) -- 9,790 - --------------------------------------------------------------------------------------------------------------------------- Cash and Short-term Investments At End of Year $ -- $ 76,959 $ 11,844 $ 12,622 $ -- $ 101,425 ===========================================================================================================================
19 25. Subsequent Event - Adoption of SFAS No. 145 On adoption of SFAS No. 145, "Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13 and Technical Corrections," Terra has reclassified an extraordinary loss on early retirement of debt in 2001 to continuing operations. Notes 1, 3, 19 and 21 have been updated to reflect this reclassification. 20 INDEPENDENT AUDITORS' REPORT To the Board of Directors and Stockholders of Terra Industries Inc: We have audited the accompanying consolidated statements of financial position of Terra Industries Inc. and subsidiaries as of December 31, 2002 and 2001, and the related consolidated statements of operations, cash flows and changes in stockholders' equity for each of the three years in the period ended December 31, 2002. These financial statements are the responsibility of Terra's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Terra Industries Inc. and subsidiaries at December 31, 2002 and 2001, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2002 in conformity with accounting principles generally accepted in the United States of America. As discussed in Note 2 to the consolidated financial statements, in 2002 the company changed its method of accounting for goodwill and other intangible assets to conform to Statement of Financial Accounting Standards No. 142. As discussed in Note 25 to the consolidated financial statements, the Company applied the provisions of Statement of Financial Accounting Standards No. 145, "Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13 and Technical Corrections" and reclassified an extraordinary loss on early retirement of debt in 2001 to continuing operations. DELOITTE & TOUCHE LLP Omaha, Nebraska January 30, 2003, except for Note 24, as to which the date is February 28, 2003 and Note 25, as to which the date is May 12, 2003 21 Financial Summary - --------------------------------------------------------------------------------
2002 2001 2000 1999 1998 - ---------------------------------------------------------------------------------------------------------------- (in thousands, except per-share and employee data) Financial Position Working capital $ 88,480 $ 136,378 $ 199,008 $ 152,959 $ 262,283 Total assets 1,128,110 1,336,043 1,512,552 1,601,445 2,037,768 Long-term debt 400,358 436,534 473,354 480,461 497,030 Stockholders' equity 257,864 500,779 610,797 657,002 747,852 Results of Operations Revenues $1,043,983 $ 1,037,310 $ 1,063,010 $ 833,443 $ 909,968 Costs and expenses (1,049,390) (1,099,128) (1,020,203) (896,485) (899,754) Infrequent item -- -- (5,968) -- -- Interest income 543 3,364 3,869 8,361 326 Interest expense (53,800) (53,594) (51,511) (53,076) (51,122) Minority interest (1,510) 2,247 (5,379) (8,341) (27,510) Loss on early retirement of debt -- (3,042) -- (15,188) -- Income tax benefit (provision) 24,000 33,000 6,000 51,923 24,761 - --------------------------------------------------------------------------------------------------------------- Income (loss) from continuing operations (36,174) (79,843) (10,182) (79,363) (43,331) Income (loss) from discontinued operations (16,183) -- -- (10,524) 17,082 Cumulative effect of change in accounting principle (205,968) -- -- -- -- - --------------------------------------------------------------------------------------------------------------- Net Income (Loss) $ (258,325) $ (79,843) $ (10,182) $ (89,887) $ (26,249) =============================================================================================================== Basic Earnings (Loss) Per Share: Continuing operations $ (0.48) $ (1.06) $ (0.14) $ (1.06) $ (0.58) Discontinued operations (0.22) -- -- (0.14) 0.23 Cumulative effect of change in accounting principle (2.73) -- -- -- -- - --------------------------------------------------------------------------------------------------------------- Net Income (Loss) $ (3.43) $ (1.06) $ (0.14) $ (1.20) $ (0.35) =============================================================================================================== Diluted Earnings (Loss) Per Share: Continuing operations $ (0.48) $ (1.06) $ (0.14) $ (1.06) $ (0.58) Discontinued operations (0.22) -- -- (0.14) 0.23 Cumulative effect of change in accounting principle (2.73) -- -- -- -- - --------------------------------------------------------------------------------------------------------------- Net Income (Loss) $ (3.43) $ (1.06) $ (0.14) $ (1.20) $ (0.35) Dividends Per Share $ -- $ -- $ -- $ 0.07 $ 0.20 =============================================================================================================== Capital Expenditures $ 25,186 $ 14,838 $ 12,219 $ 51,899 $ 55,327 =============================================================================================================== Full-time employees at end of period (unaudited) 1,207 1,248 1,279 1,351 4,185 ===============================================================================================================
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