Condensed Consolidating Financial Statements and Victor Technologies Group, Inc. (Parent) Financial Information (Tables)

6 Months Ended

Jun. 30, 2012

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Statement of Operations

VICTOR TECHNOLOGIES GROUP, INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2012

(unaudited)

(Dollars in thousands)



	Parent Victor Technologies Group, Inc.		Guarantors			Non- Guarantors			Eliminations			Consolidated
Net sales	$	—	$	107,150		$	25,107		$	—		$	132,257
Cost of goods sold	—		64,994			20,120			—			85,114
Gross margin	—		42,156			4,987			—			47,143
Selling, general and administrative expenses	—		23,974			3,485			—			27,459
Amortization of intangibles	—		1,584			—			—			1,584
Restructuring	—		848			—			—			848
Operating income	—		15,750			1,502			—			17,252
Other income (expense):
Interest, net	—		(8,431		)	(22		)	—			(8,453		)
Amortization of deferred financing costs	—		(604		)	—			—			(604		)
Equity in net income (loss) of subsidiaries	5,986		—			—			(5,986		)	—
Income (loss) before income tax provision	5,986		6,715			1,480			(5,986		)	8,195
Income tax provision	—		1,819			390			—			2,209
Net income (loss)	$	5,986	$	4,896		$	1,090		$	(5,986	)	$	5,986

VICTOR TECHNOLOGIES GROUP, INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

THREE MONTHS ENDED JUNE 30, 2011

(unaudited)

(Dollars in thousands)



	Parent Victor Technologies Group, Inc.			Guarantors			Non- Guarantors			Eliminations			Consolidated
Net sales	$	—		$	133,450		$	27,576		$	(31,757	)	$	129,269
Cost of goods sold	—			87,886			21,859			(28,270		)	81,475
Gross margin	—			45,564			5,717			(3,487		)	47,794
Selling, general and administrative expenses	(2		)	23,253			4,474			—			27,725
Amortization of intangibles	—			1,583			—			—			1,583
Restructuring	—			615			—			—			615
Operating income (loss)	2			20,113			1,243			(3,487		)	17,871
Other income (expense):
Interest, net	—			(6,022		)	(34		)	—			(6,056		)
Amortization of deferred financing costs	—			(432		)	—			—			(432		)
Equity in net income (loss) of subsidiaries	6,070			—			—			(6,070		)	—
Income (loss) before income tax provision	6,072			13,659			1,209			(9,557		)	11,383
Income tax provision	—			4,656			655			—			5,311
Net income (loss)	$	6,072		$	9,003		$	554		$	(9,557	)	$	6,072

VICTOR TECHNOLOGIES GROUP, INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

SIX MONTHS ENDED JUNE 30, 2012

(unaudited)

(Dollars in thousands)



	Parent Victor Technologies Group, Inc.		Guarantors			Non- Guarantors			Eliminations			Consolidated
Net sales	$	—	$	211,027		$	48,101		$	—		$	259,128
Cost of goods sold	—		129,432			38,685			—			168,117
Gross margin	—		81,595			9,416			—			91,011
Selling, general and administrative expenses	—		46,833			7,068			—			53,901
Amortization of intangibles	—		3,167			—			—			3,167
Restructuring	—		1,659			—			—			1,659
Operating income (loss)	—		29,936			2,348			—			32,284
Other income (expense):
Interest, net	—		(15,137		)	(46		)	—			(15,183		)
Amortization of deferred financing costs	—		(1,100		)	—			—			(1,100		)
Equity in net income (loss) of subsidiaries	11,198		—			—			(11,198		)	—
Income (loss) before income tax provision	11,198		13,699			2,302			(11,198		)	16,001
Income tax provision	—		4,448			355			—			4,803
Net income (loss)	$	11,198	$	9,251		$	1,947		$	(11,198	)	$	11,198

VICTOR TECHNOLOGIES GROUP, INC.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

SIX MONTHS ENDED JUNE 30, 2011

(unaudited)

(Dollars in thousands)



	Parent Victor Technologies Group, Inc.			Guarantors			Non- Guarantors			Eliminations			Consolidated
Net sales	$	—		$	253,056		$	49,010		$	(56,300	)	$	245,766
Cost of goods sold	—			175,914			38,664			(49,832		)	164,746
Gross margin	—			77,142			10,346			(6,468		)	81,020
Selling, general and administrative expenses	(2		)	45,329			7,228			—			52,555
Amortization of intangibles	—			3,129			—			—			3,129
Restructuring	—			615			—			—			615
Operating income (loss)	2			28,069			3,118			(6,468		)	24,721
Other income (expense):
Interest, net	484			(12,768		)	(69		)	—			(12,353		)
Amortization of deferred financing costs	—			(821		)	—			—			(821		)
Equity in net income (loss) of subsidiaries	5,674			—			—			(5,674		)	—
Income (loss) before income tax provision	6,160			14,480			3,049			(12,142		)	11,547
Income tax provision	—			4,184			1,203			—			5,387
Net income (loss)	$	6,160		$	10,296		$	1,846		$	(12,142	)	$	6,160

Condensed Consolidating Statement of Comprehensive Income

VICTOR TECHNOLOGIES GROUP, INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

THREE MONTHS ENDED JUNE 30, 2012

(unaudited)

(Dollars in thousands)



	Parent Victor Technologies Group, Inc.			Guarantors			Non- Guarantors			Eliminations			Consolidated
Net income	$	5,986		$	4,896		$	1,090		$	(5,986	)	$	5,986
Other comprehensive income, net of tax:
Foreign currency translation adjustments	(2,081		)	(3,611		)	(866		)	4,477			(2,081		)
Pension and postretirement	56			47			9			(56		)	56
Comprehensive income	$	3,961		$	1,332		$	233		$	(1,565	)	$	3,961

VICTOR TECHNOLOGIES GROUP, INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

THREE MONTHS ENDED JUNE 30, 2011

(unaudited)

(Dollars in thousands)



	Parent Victor Technologies Group, Inc.		Guarantors		Non- Guarantors		Eliminations			Consolidated
Net income	$	6,072	$	9,003	$	554	$	(9,557	)	$	6,072
Other comprehensive income, net of tax:
Foreign currency translation adjustments	1,595		1,896		180		(2,076		)	1,595
Pension and postretirement	6		6		—		(6		)	6
Comprehensive income	$	7,673	$	10,905	$	734	$	(11,639	)	$	7,673

VICTOR TECHNOLOGIES GROUP, INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

SIX MONTHS ENDED JUNE 30, 2012

(unaudited)

(Dollars in thousands)



	Parent Victor Technologies Group, Inc.		Guarantors		Non- Guarantors			Eliminations			Consolidated
Net income	$	11,198	$	9,251	$	1,947		$	(11,198	)	$	11,198
Other comprehensive income, net of tax:
Foreign currency translation adjustments	215		1,391		(50		)	(1,341		)	215
Pension and postretirement	39		38		1			(39		)	39
Comprehensive income	$	11,452	$	10,680	$	1,898		$	(12,578	)	$	11,452

VICTOR TECHNOLOGIES GROUP, INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME

SIX MONTHS ENDED JUNE 30, 2011

(unaudited)

(Dollars in thousands)



	Parent Victor Technologies Group, Inc.		Guarantors		Non- Guarantors		Eliminations			Consolidated
Net income	$	6,160	$	10,296	$	1,846	$	(12,142	)	$	6,160
Other comprehensive income, net of tax:
Foreign currency translation adjustments	2,982		3,949		781		(4,730		)	2,982
Pension and postretirement	10		9		1		(10		)	10
Comprehensive income	$	9,152	$	14,254	$	2,628	$	(16,882	)	$	9,152

Condensed Consolidating Balance Sheet

VICTOR TECHNOLOGIES GROUP, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

JUNE 30, 2012

(unaudited)

(Dollars in thousands)



	Parent Victor Technologies Group, Inc.			Guarantors			Non- Guarantors			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—		$	12,564		$	4,204		$	—		$	16,768
Accounts receivable, net	—			67,237			14,118			—			81,355
Inventories	—			89,168			12,071			—			101,239
Prepaid expenses and other	—			5,271			6,208			—			11,479
Deferred tax assets	—			2,823			—			—			2,823
Total current assets	—			177,063			36,601			—			213,664
Property, plant and equipment, net	—			61,049			12,177			—			73,226
Goodwill	—			182,649			—			—			182,649
Intangibles, net	—			133,737			3,650			—			137,387
Deferred financing fees	—			16,725			—			—			16,725
Other assets	—			503			—			—			503
Investment in and advances to subsidiaries	174,467			79,232			—			(253,699		)	—
Total assets	$	174,467		$	650,958		$	52,428		$	(253,699	)	$	624,154
LIABILITIES AND SHAREHOLDER'S EQUITY (DEFICIT)
Current Liabilities:
Current maturities of long-term obligations	$	—		$	1,246		$	416		$	—		$	1,662
Accounts payable	—			29,576			7,723			—			37,299
Accrued and other liabilities	—			32,137			5,506			—			37,643
Accrued interest	—			1,480			—			—			1,480
Income taxes payable	—			342			795			—			1,137
Deferred tax liability	—			3,584			—			—			3,584
Total current liabilities	—			68,365			14,440			—			82,805
Long-term obligations, less current maturities	—			357,698			155			—			357,853
Deferred tax liabilities	—			81,012			—			—			81,012
Other long-term liabilities	—			15,298			1,782			—			17,080
Net equity (deficit) and advances to / from subsidiaries	89,063			16,368			(36,952		)	(68,479		)	—
Stockholder's equity (deficit):
Common stock	—			2,555			55,145			(57,700		)	—
Additional paid-in-capital	84,171			111,586			15,569			(127,154		)	84,172
Accumulated deficit	3,259			4,032			1,901			(5,933		)	3,259
Accumulated other comprehensive income (loss)	(2,026		)	(5,956		)	388			5,567			(2,027		)
Total stockholder's equity (deficit)	85,404			112,217			73,003			(185,220		)	85,404
Total liabilities and stockholder's equity (deficit)	$	174,467		$	650,958		$	52,428		$	(253,699	)	$	624,154

VICTOR TECHNOLOGIES GROUP, INC.

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2011

(Dollars in thousands)



	Parent Victor Technologies Group, Inc.			Guarantors			Non- Guarantors			Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—		$	15,298		$	5,558		$	—		$	20,856
Accounts receivable, net	—			56,893			11,677			—			68,570
Inventories	—			85,345			10,666			—			96,011
Prepaid expenses and other	—			7,057			4,915			—			11,972
Deferred tax assets	—			2,823			—			—			2,823
Total current assets	—			167,416			32,816			—			200,232
Property, plant and equipment, net	—			61,971			11,890			—			73,861
Deferred financing fees	—			13,416			—			—			13,416
Other assets	—			502			—			—			502
Goodwill	—			182,429			—			—			182,429
Intangibles, net	—			136,515			3,750			—			140,265
Investment in and advances to subsidiaries	191,135			79,232			—			(270,367		)	—
Total assets	$	191,135		$	641,481		$	48,456		$	(270,367	)	$	610,705
LIABILITIES AND SHAREHOLDER'S EQUITY (DEFICIT)
Current Liabilities:
Current maturities of long-term obligations	$	—		$	1,276		$	439		$	—		$	1,715
Accounts payable	—			23,299			6,406			—			29,705
Accrued and other liabilities	—			38,120			5,440			—			43,560
Accrued interest	—			1,081			—			—			1,081
Income taxes payable	—			1,929			946			—			2,875
Deferred tax liability	—			3,584			—			—			3,584
Total current liabilities	—			69,289			13,231			—			82,520
Long-term obligations, less current maturities	—			263,246			361			—			263,607
Deferred tax liabilities	—			78,927			—			—			78,927
Other long-term liabilities	—			16,184			1,897			—			18,081
Net equity (deficit) and advances to / from subsidiaries	23,565			108,505			(39,149		)	(92,921		)	—
Stockholder's equity (deficit):
Common stock	—			2,555			55,145			(57,700		)	—
Additional paid-in-capital	177,790			111,207			15,456			(126,663		)	177,790
Accumulated deficit	(7,939		)	(323		)	1,044			(721		)	(7,939		)
Accumulated other comprehensive income (loss)	(2,281		)	(8,109		)	471			7,638			(2,281		)
Total stockholder's equity (deficit)	167,570			105,330			72,116			(177,446		)	167,570
Total liabilities and stockholder's equity (deficit)	$	191,135		$	641,481		$	48,456		$	(270,367	)	$	610,705

Condensed Consolidating Statement of Cash Flows

VICTOR TECHNOLOGIES GROUP, INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2012

(unaudited)

(Dollars in thousands)



	Parent Victor Technologies Group, Inc.			Guarantors			Non- Guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	11,576		$	7,516		$	(1,679	)	$	(11,198	)	$	6,215
Cash flows from investing activities:
Capital expenditures	—			(4,787		)	(913		)	—			(5,700		)
Other	—			(389		)	100			—			(289		)
Net cash provided by (used in) investing activities	—			(5,176		)	(813		)	—			(5,989		)
Cash flows from financing activities:
Issuance of Additional Notes of Senior Secured Notes due 2017	—			100,000			—			—			100,000
Senior Secured Notes discount	—			(5,200		)	—			—			(5,200		)
Repayments of other long-term obligations	—			(594		)	(224		)	—			(818		)
Deferred financing fees	—			(4,409		)	—			—			(4,409		)
Dividend payment to Parent	(93,507		)	—			—			—			(93,507		)
Proceeds from exercise of stock options	31			—			—			—			31
Changes in net equity	82,419			(95,014		)	1,397			11,198			—
Other, net	(519		)	—			—			—			(519		)
Net cash provided by (used in) financing activities	(11,576		)	(5,217		)	1,173			11,198			(4,422		)
Effect of exchange rate changes on cash and cash equivalents	—			143			(35		)	—			108
Total increase (decrease) in cash and cash equivalents	—			(2,734		)	(1,354		)	—			(4,088		)
Total cash and cash equivalents beginning of period	—			15,298			5,558			—			20,856
Total cash and cash equivalents end of period	$	—		$	12,564		$	4,204		$	—		$	16,768

VICTOR TECHNOLOGIES GROUP, INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2011

(unaudited)

(Dollars in thousands)



	Parent Victor Technologies Group, Inc.			Guarantors			Non- Guarantors			Eliminations			Consolidated
Cash flows from operations:
Net cash provided by (used in) operating activities	$	(1,164	)	$	1,441		$	1,641		$	(11,897	)	$	(9,979	)
Cash flows from investing activities:
Capital expenditures	—			(5,530		)	(2,385		)	—			(7,915		)
Other	—			(322		)	—			—			(322		)
Net cash provided by (used in) investing activities	—			(5,852		)	(2,385		)	—			(8,237		)
Cash flows from financing activities:
Repayments of other long-term obligations	—			(1,934		)	540			—			(1,394		)
Repayment of Senior Subordinated Notes	(176,095		)	—			—			—			(176,095		)
Use of Trusteed Assets for redemption of Senior Subordinated Notes	183,685			—			—			—			183,685
Changes in net equity	(6,426		)	(6,750		)	1,279			11,897			—
Other	—			(275		)	—			—			(275		)
Net cash provided by (used in) financing activities	1,164			(8,959		)	1,819			11,897			5,921
Effect of exchange rate changes on cash and cash equivalents	—			386			176			—			562
Total increase (decrease) in cash and cash equivalents	—			(12,984		)	1,251			—			(11,733		)
Total cash and cash equivalents beginning of period	—			18,692			3,707			—			22,399
Total cash and cash equivalents end of period	$	—		$	5,708		$	4,958		$	—		$	10,666