Subsidiary Guarantors

6 Months Ended

Jul. 02, 2011

Subsidiary Guarantors [Abstract]

Subsidiary Guarantors

Note 13 — Subsidiary Guarantors

The Company’s payment obligations under its 9.125% notes are fully and unconditionally guaranteed, jointly and severally, on a senior basis, by its domestic wholly owned subsidiaries, Gentek Holdings, LLC and Gentek Building Products, Inc. AMH New Finance, Inc. (formerly Carey New Finance, Inc.) is a co-issuer of the 9.125% notes and is a domestic wholly owned subsidiary of the Company having no operations, revenues or cash flows for the periods presented.

Associated Materials Canada Limited, Gentek Canada Holdings Limited and Gentek Buildings Products Limited Partnership are Canadian companies and do not guarantee the Company’s 9.125% notes. In the opinion of management, separate financial statements of the respective Subsidiary Guarantors would not provide additional material information that would be useful in assessing the financial composition of the Subsidiary Guarantors.

UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET
July 2, 2011 (Successor)
(In thousands)

					Subsidiary			Non-Guarantor			Reclassification/
	Company		Co-Issuer		Guarantors			Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	6,785	$	—	$	—		$	—			—		$	6,785
Accounts receivable, net		102,716		—		14,801			40,774			—			158,291
Intercompany receivables		368,466		—		6,953			2,364			(377,783	)		—
Inventories		129,534		—		16,848			47,047			—			193,429
Income taxes receivable		19,987		—		—			—			(19,987	)		—
Deferred income taxes		—		—		1,634			—			(1,634	)		—
Prepaid expenses		6,278		—		904			1,876			—			9,058
Total current assets		633,766		—		41,140			92,061			(399,404	)		367,563
Property, plant and equipment, net		86,105		—		3,452			47,903			—			137,460
Goodwill		353,433		—		28,978			191,501			—			573,912
Other intangible assets, net		486,525		—		50,780			188,635			—			725,940
Investment in subsidiaries		27,627		—		(20,385	)		—			(7,242	)		—
Intercompany receivable		—		730,000		—			—			(730,000	)		—
Other assets		25,184		—		11			3,131			—			28,326
Total assets	$	1,612,640	$	730,000	$	103,976		$	523,231		$	(1,136,646	)	$	1,833,201
Liabilities and Member’s Equity
Current liabilities:
Accounts payable	$	90,538	$	—	$	13,226		$	34,736			—		$	138,500
Intercompany payables		—		—		—			377,783			(377,783	)		—
Accrued liabilities		54,000		—		5,536			10,401			—			69,937
Deferred income taxes		11,407		—		—			6,649			(1,634	)		16,422
Income taxes payable		—		—		16,320			4,405			(19,987	)		738
Total current liabilities		155,945		—		35,082			433,974			(399,404	)		225,597
Deferred income taxes		85,191		—		14,661			44,816			—			144,668
Other liabilities		81,036		—		26,606			27,826			—			135,468
Long-term debt		820,800		730,000		—			37,000			(730,000	)		857,800
Member’s equity		469,668		—		27,627			(20,385	)		(7,242	)		469,668
Total liabilities and member’s equity	$	1,612,640	$	730,000	$	103,976		$	523,231		$	(1,136,646	)	$	1,833,201

UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For The Quarter Ended July 2, 2011 (Successor)
(In thousands)

						Subsidiary		Non-Guarantor		Reclassification/
	Company			Co-Issuer		Guarantors		Subsidiaries		Eliminations			Consolidated
Net sales	$	226,284		$	—	$	44,309	$	83,885	$	(44,019	)	$	310,459
Cost of sales		169,717			—		42,674		61,747		(44,019	)		230,119
Gross profit		56,567			—		1,635		22,138		—			80,340
Selling, general and administrative expenses		53,440			—		858		11,326		—			65,624
Income from operations		3,127			—		777		10,812		—			14,716
Interest expense, net		18,520			—		—		575		—			19,095
Foreign currency loss		—			—		—		124		—			124
(Loss) income before income taxes		(15,393	)		—		777		10,113		—			(4,503	)
Income taxes provision		—			—		—		2,690		—			2,690
(Loss) income before equity income from subsidiaries		(15,393	)		—		777		7,423		—			(7,193	)
Equity income from subsidiaries		8,200			—		7,423		—		(15,623	)		—
Net income (loss)	$	(7,193	)	$	—	$	8,200	$	7,423	$	(15,623	)	$	(7,193	)

UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For The Six Months Ended July 2, 2011 (Successor)
(In thousands)

						Subsidiary		Non-Guarantor		Reclassification/
	Company			Co-Issuer		Guarantors		Subsidiaries		Eliminations			Consolidated
Net sales	$	370,496		$	—	$	78,477	$	134,950	$	(76,728	)	$	507,195
Cost of sales		284,850			—		76,009		102,645		(76,728	)		386,776
Gross profit		85,646			—		2,468		32,305		—			120,419
Selling, general and administrative expenses		100,081			—		1,900		22,559		—			124,540
(Loss) income from operations		(14,435	)		—		568		9,746		—			(4,121	)
Interest expense, net		36,859			—		—		936		—			37,795
Foreign currency loss		—			—		—		94		—			94
(Loss) income before income taxes		(51,294	)		—		568		8,716		—			(42,010	)
Income taxes provision		—			—		—		2,301		—			2,301
(Loss) income before equity income from subsidiaries		(51,294	)		—		568		6,415		—			(44,311	)
Equity income from subsidiaries		6,983			—		6,415		—		(13,398	)		—
Net income (loss)	$	(44,311	)	$	—	$	6,983	$	6,415	$	(13,398	)	$	(44,311	)

UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For The Six Months Ended July 2, 2011 (Successor)
(In thousands)

									Non-
						Subsidiary			Guarantor
	Company			Co-Issuer		Guarantors			Subsidiaries			Consolidated
Net cash used in operating activities	$	(59,823	)	$	—	$	(2,188	)	$	(3,144	)	$	(65,155	)
Investing Activities
Supply center acquisition		(1,550	)		—		—			—			(1,550	)
Capital expenditures		(8,029	)		—		(15	)		(1,897	)		(9,941	)
Net cash used in investing activities		(9,579	)		—		(15	)		(1,897	)		(11,491	)
Financing Activities
Net borrowings under ABL facilities		32,800			—		—			37,000			69,800
Intercompany transactions		37,847			—		2,203			(40,050	)		—
Financing costs		(371	)		—		—			—			(371	)
Net cash provided by (used in) financing activities		70,276			—		2,203			(3,050	)		69,429
Effect of exchange rate changes on cash and cash equivalents		—			—		—			213			213
Net increase (decrease) in cash and cash equivalents		874			—		—			(7,878	)		(7,004	)
Cash and cash equivalents at beginning of period		5,911			—		—			7,878			13,789
Cash and cash equivalents at end of period	$	6,785		$	—	$	—		$	—		$	6,785

UNAUDITED CONDENSED CONSOLIDATING BALANCE SHEET
January 1, 2011 (Successor)
(In thousands)

					Subsidiary			Non-Guarantor			Reclassification/
	Company		Co-Issuer		Guarantors			Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	5,911	$	—	$	—		$	7,878		$	—		$	13,789
Accounts receivable, net		85,496		—		11,107			21,805			—			118,408
Intercompany receivables		406,309		—		9,257			2,264			(417,830	)		—
Inventories		99,228		—		10,870			36,117			—			146,215
Income taxes receivable		19,731		—		—			—			(16,440	)		3,291
Deferred income taxes		—		—		1,629			—			(1,629	)		—
Prepaid expenses		6,622		—		1,174			1,199			—			8,995
Total current assets		623,297		—		34,037			69,263			(435,899	)		290,698
Property, plant and equipment, net		86,636		—		4,014			47,212			—			137,862
Goodwill		353,434		—		28,978			184,011			—			566,423
Other intangible assets, net		495,850		—		51,006			184,158			—			731,014
Investment in subsidiaries		5,256		—		(42,289	)		—			37,033			—
Intercompany receivable		—		788,000		—			—			(788,000	)		—
Other assets		26,662		—		(1	)		3,246			—			29,907
Total assets	$	1,591,135	$	788,000	$	75,745		$	487,890		$	(1,186,866	)	$	1,755,904
Liabilities and Member’s Equity
Current liabilities:
Accounts payable	$	66,087	$	—	$	5,761		$	18,342		$	—		$	90,190
Intercompany payables		—		—		—			417,830			(417,830	)		—
Accrued liabilities		63,116		—		7,057			9,146			—			79,319
Deferred income taxes		11,454		—		—			10,164			(1,629	)		19,989
Income taxes payable		—		—		16,440			2,506			(16,440	)		2,506
Total current liabilities		140,657		—		29,258			457,988			(435,899	)		192,004
Deferred income taxes		85,191		—		14,661			44,816			—			144,668
Other liabilities		78,810		—		26,570			27,375			—			132,755
Long-term debt		788,000		788,000		—			—			(788,000	)		788,000
Member’s equity		498,477		—		5,256			(42,289	)		37,033			498,477
Total liabilities and member’s equity	$	1,591,135	$	788,000	$	75,745		$	487,890		$	(1,186,866	)	$	1,755,904

UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For The Quarter Ended July 3, 2010 (Predecessor)
(In thousands)

						Subsidiary		Non-Guarantor		Reclassification/
	Company			Co-Issuer		Guarantors		Subsidiaries		Eliminations			Consolidated
Net sales	$	239,861		$	—	$	50,352	$	88,987	$	(50,878	)	$	328,322
Cost of sales		173,694			—		47,425		66,223		(50,878	)		236,464
Gross profit		66,167			—		2,927		22,764		—			91,858
Selling, general and administrative expenses		43,199			—		296		10,094		—			53,589
Income from operations		22,968			—		2,631		12,670		—			38,269
Interest expense, net		18,614			—		—		183		—			18,797
Foreign currency loss		—			—		—		70		—			70
Income before income taxes		4,354			—		2,631		12,417		—			19,402
Income taxes (benefit) provision		(4,904	)		—		840		3,738		—			(326	)
Income before equity income from subsidiaries		9,258			—		1,791		8,679		—			19,728
Equity income from subsidiaries		10,470			—		8,679		—		(19,149	)		—
Net income	$	19,728		$	—	$	10,470	$	8,679	$	(19,149	)	$	19,728

UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For The Six Months Ended July 3, 2010 (Predecessor)
(In thousands)

						Subsidiary		Non-Guarantor			Reclassification/
	Company			Co-Issuer		Guarantors		Subsidiaries			Eliminations			Consolidated
Net sales	$	385,752		$	—	$	79,913	$	146,968		$	(80,074	)	$	532,559
Cost of sales		286,170			—		74,937		111,229			(80,074	)		392,262
Gross profit		99,582			—		4,976		35,739			—			140,297
Selling, general and administrative expenses		80,604			—		1,104		19,362			—			101,070
Income from operations		18,978			—		3,872		16,377			—			39,227
Interest expense, net		37,059			—		2		430			—			37,491
Foreign currency (gain)		—			—		—		(52	)		—			(52	)
(Loss) income before income taxes		(18,081	)		—		3,870		15,999			—			1,788
Income taxes (benefit) provision		(5,840	)		—		1,776		4,816			—			752
(Loss) income before equity income from subsidiaries		(12,241	)		—		2,094		11,183			—			1,036
Equity income from subsidiaries		13,277			—		11,183		—			(24,460	)		—
Net income	$	1,036		$	—	$	13,277	$	11,183		$	(24,460	)	$	1,036

UNAUDITED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For The Six Months Ended July 3, 2010 (Predecessor)
(In thousands)

						Subsidiary			Non-Guarantor
	Company			Co-Issuer		Guarantors			Subsidiaries			Consolidated
Net cash (used in) provided by operating activities	$	(26,372	)	$	—	$	3,739		$	3,260		$	(19,373	)
Investing Activities
Capital expenditures		(6,286	)		—		(54	)		(1,923	)		(8,263	)
Other		385			—		—			(385	)		—
Net cash used in investing activities		(5,901	)		—		(54	)		(2,308	)		(8,263	)
Financing Activities
Net borrowings under prior ABL Facility		5,000			—		—			—			5,000
Dividends from non-guarantor subsidiary		—			—		20,000			(20,000	)		—
Intercompany transactions		26,671			—		(23,640	)		(3,031	)		—
Financing costs		(106	)		—		—			—			(106	)
Net cash provided by (used in) financing activities		31,565			—		(3,640	)		(23,031	)		4,894
Effect of exchange rate changes on cash and cash equivalents		—			—		—			(971	)		(971	)
Net (decrease) increase in cash and cash equivalents		(708	)		—		45			(23,050	)		(23,713	)
Cash and cash equivalents at beginning of period		5,917			—		82			49,906			55,905
Cash and cash equivalents at end of period	$	5,209		$	—	$	127		$	26,856		$	32,192