-----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, UF6b9xDVtleKuc6LDcgfih5RlYaP2uMv6ghA/Ig2tEe6jUHifqwY2PRnsyUO08Ai BoZfQIPW14m3IB+NqNsRaQ== 0000931763-01-000467.txt : 20010321 0000931763-01-000467.hdr.sgml : 20010321 ACCESSION NUMBER: 0000931763-01-000467 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20010319 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010320 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PARAGON TRADE BRANDS INC CENTRAL INDEX KEY: 0000889429 STANDARD INDUSTRIAL CLASSIFICATION: CONVERTED PAPER & PAPERBOARD PRODS (NO CONTAINERS/BOXES) [2670] IRS NUMBER: 911554663 STATE OF INCORPORATION: DE FISCAL YEAR END: 1230 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-11368 FILM NUMBER: 1572267 BUSINESS ADDRESS: STREET 1: 180 TECHNOLOGY PARLWAY CITY: NORCROSS STATE: GA ZIP: 30092 BUSINESS PHONE: 6789695000 MAIL ADDRESS: STREET 1: 180 TECHNOLOGY PKWY CITY: NORCROSS STATE: GA ZIP: 30092 8-K 1 0001.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): March 19, 2001 PARAGON TRADE BRANDS, INC. (Exact name of registrant as specified in its charter) Delaware 1-11368 91-1554663 (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 180 TECHNOLOGY PARKWAY NORCROSS, GEORGIA 30092 (Address of Principal Executive Offices) (678) 969-5000 (Registrant's telephone number, including area code) Exhibit Index is at Page 4 Item 5. Other Events. The registrant reports an offsetting change between two components of its consolidated statement of operations for the fiscal fourth quarter and year ended December 31, 2000, which was previously released on February 16, 2001. The change was a result of a reallocation of income tax expense between continuing operations and discontinued operations. The change did not effect net income, earnings from continuing operations before interest, taxes, depreciation and amortization adjusted for non-recurring items (EBITDA), net cash provided by operating activities, or any balance sheet amounts as previously reported in the February 16, 2001 release. Earnings from continuing operations for the fiscal fourth quarter of 2000 was $8.1 million compared to $13.9 million as previously reported. Gain on operation/disposal of discontinued operations - net of tax for the fiscal fourth quarter of 2000 was $8.1 million compared to $2.3 million as previously reported. Earnings from continuing operations for the year ended December 31, 2000 was $7.6 million compared to $13.4 million as previously reported. Loss on operation/disposal of discontinued operations - net of tax for the year ended December 31, 2000 was $17.6 million compared to $23.3 million as previously reported. Item 7. Financial Statements and Exhibits. The following exhibits are filed as part of this Report: EXHIBIT NO. DESCRIPTION - ----------- ----------- 99.1 Paragon Trade Brands, Inc. and Subsidiaries - Consolidated Statement of Operations - Consolidated Balance Sheets - Condensed Consolidated Statements of Cash Flows 99.2 Press Release, dated February 16, 2001 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. PARAGON TRADE BRANDS, INC. (Registrant) Dated: March 19, 2001 By: /s/ DAVID C. NICHOLSON ------------------------------ Name: David C. Nicholson Title: Chief Financial Officer EXHIBIT INDEX Exhibit Number Description - -------------- ----------- 99.1 Paragon Trade Brands, Inc. and Subsidiaries - Consolidated Statement of Operations - Consolidated Balance Sheets - Condensed Consolidated Statements of Cash Flows 99.2 Press Release, dated February 16, 2001 EX-99.1 2 0002.txt FINANCIAL STATEMENTS
PARAGON TRADE BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS Exhibit 99.1 (AMOUNTS IN 000's EXCEPT PER SHARE DATA) Successor Predecessor Successor Company Company Company ------------ ------------- -------------- Fourteen Thirteen Forty-Eight Weeks Ended Weeks Ended Weeks Ended Dec. 31, 2000 Dec. 26, 1999 Dec. 31, 2000 ------------- ------------- ------------- Sales, net of discounts and allowances.......................... $166,813 $121,943 $507,334 Cost of sales................................................... 130,165 107,091 407,561 -------- -------- -------- Gross profit.................................................... 36,648 14,852 99,773 Selling, general and administrative expense..................... 15,949 18,734 61,310 Research and development expense................................ 1,162 861 4,081 Plant closure expenses.......................................... - 28 - -------- -------- -------- Operating profit (loss)......................................... 19,537 (4,771) 34,382 Equity in (loss) earnings of unconsolidated subsidiaries.................................................. (1,223) 1,223 582 Interest expense................................................ 4,530 178 16,318 Other income - net.............................................. 2,022 1,474 3,854 -------- -------- -------- Earnings (loss) before income taxes, bankruptcy costs and extraordinary item....................... 15,806 (2,252) 22,500 Bankruptcy costs................................................ - 2,462 - -------- -------- -------- Earnings (loss) from continuing operations before Income taxes and extraordinary item........................... 15,806 (4,714) 22,500 Provision for (benefit from) income taxes....................... 7,720 (1,025) 7,587 -------- -------- -------- Earnings (loss) from continuing operations...................... 8,086 (3,689) 14,913 Gain (loss) on operation/disposal of discontinued operations - net of tax....................................... 8,119 (3,848) (16,384) -------- -------- -------- Earnings (loss) before extraordinary items and cumulative effect of change in accounting principle........... 16,205 (7,537) (1,471) Extraordinary item - gain from discharge of debt................ - - - Cumulative effect of change in accounting principle............. (295) - (295) -------- -------- -------- Net income (loss)............................................... $ 15,910 $ (7,537) $ (1,766) ======== ======== ======== Basic - earnings (loss) per share............................... $ 1.33 $ (.63) $ (.15) Diluted - earnings (loss) per share............................. $ 1.30 $ (.63) $ (.15) Weighted average common shares outstanding - basic.............. 11,996 11,950 11,970 -------- -------- -------- Predecessor Company ------------------------------ Five Fifty-Two Weeks Ended Weeks Ended Jan. 28, 2000 Dec. 26, 1999 -------------- ------------- Sales, net of discounts and allowances.......................... $ 49,767 $486,918 Cost of sales................................................... 40,721 417,524 -------- -------- Gross profit.................................................... 9,046 69,394 Selling, general and administrative expense..................... 5,728 75,726 Research and development expense................................ 313 3,644 Plant closure expenses.......................................... - 1,555 -------- -------- Operating profit (loss)......................................... 3,005 (11,531) Equity in (loss) earnings of unconsolidated subsidiaries.................................................. - 2,339 Interest expense................................................ 75 482 Other income - net.............................................. 97 3,474 -------- -------- Earnings (loss) before income taxes, bankruptcy costs and extraordinary item....................... 3,027 (6,200) Bankruptcy costs................................................ 10,399 9,538 -------- -------- Earnings (loss) from continuing operations before Income taxes and extraordinary item............................. (7,372) (15,738) Provision for (benefit from) income taxes....................... (100) (1,350) -------- -------- Earnings (loss) from continuing operations...................... (7,272) (14,388) Gain (loss) on operation/disposal of discontinued operations - net of tax....................................... (1,195) (13,988) -------- -------- Earnings (loss) before extraordinary items and cumulative effect of change in accounting principle........... (8,467) (28,376) Extraordinary item - gain from discharge of debt................ 123,043 - Cumulative effect of change in accounting principle............. - - -------- -------- Net income (loss)............................................... $114,576 $(28,376) ======== ======== Basic - earnings (loss) per share............................... $ 9.59 $ (2.37) Diluted - earnings (loss) per share............................. $ 9.59 $ (2.37) Weighted average common shares outstanding - basic.............. 11,950 11,950 -------- --------
PARAGON TRADE BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (DOLLAR AMOUNTS IN THOUSANDS)
Successor Predecessor Company Company As of As of Assets December 31, 2000 December 26,1999 - -------------------------------------------------------------- ----------------- ---------------- Cash and cash equivalents $ 43,780 $ 11,657 Receivables 79,796 84,084 Inventories 42,519 40,086 Current portion of deferred income taxes 1,219 5,557 Other current assets 1,975 2,729 Net current assets of discontinued operations 2,385 11,594 -------- -------- Total current assets 171,674 155,707 Net property, plant and equipment 84,288 90,892 Assets held for sale 3,571 2,312 Goodwill - 30,900 Investment in and advances to 86,255 79,144 unconsolidated subsidiaries Other assets 10,185 11,290 Net non-current assets of discontinued operations 11,117 30,275 -------- -------- Total assets $367,090 $400,520 ======== ======== Liabilities and Shareholders' Equity (Deficit) - -------------------------------------------------------------- Accounts payable $ 50,252 $ 42,240 Accrued liabilities 49,201 34,259 -------- -------- Total current liabilities 99,453 76,499 Liabilities subject to compromise - 406,723 Long-term debt 146,000 - Other long-term liabilities 1,219 7,115 -------- -------- Total liabilities 246,672 490,337 Total shareholders' equity (deficit) 120,418 (89,817) -------- -------- Total liabilities and shareholders' equity (deficit) $367,090 $400,520 ======== ========
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollar amounts in thousands)
Successor Predecessor Company Company ----------------- ------------------------------ Forty-Eight Weeks Five Fifty-Two Ended Weeks Ended Weeks Ended Dec. 31, 2000 Jan. 28, 2000 Dec. 26, 1999 ----------------- ------------- -------------- Cash flows from operating activities: Earnings (loss) from continuing operations before extraordinary item.... $ 14,913 $ (7,272) $(14,388) Adjustments to reconcile earnings (loss) to net cash provided by (used in) operating activities: Depreciation and amortization........................................ 20,150 2,328 33,043 Deferred income taxes................................................ 128 382 (166) Equity in earnings of unconsolidated subsidiaries, net of dividends......................................................... 582 - (1,546) Write-down of assets................................................. 846 173 660 Changes in operating assets and liabilities: Accounts receivable.................................................. (9,521) (4,039) 4,566 Inventories and prepaid expenses..................................... 2,056 (1,934) 9,687 Accounts payable..................................................... 12,133 (6,404) (1,062) Checks issued but not cleared........................................ (1,359) 1,509 (4,908) Prepetition reclamation payment authorized by court.................. - - (546) Liabilities subject to compromise.................................... - (13,032) - Accrued liabilities.................................................. 12,470 7,254 491 Other................................................................ 6,377 (429) (4,032) -------- -------- -------- Net cash provided by (used in) operating activities of continuing operations............................................. 58,775 (21,464) 21,799 Net cash used in operating activities of discontinued operations........................................... 1,116 (1,569) (15,294) -------- -------- -------- Net cash provided by (used in) operating activities.................. 59,891 (23,033) 6,505 -------- -------- -------- Cash flows from investing activities: Expenditures for property and equipment................................ (16,881) (658) (25,351) Proceeds from sale of property and equipment........................... 3,410 104 6,414 Repayment of advance from unconsolidated subsidiary, at equity......... 10,579 - 5,612 Investment in unconsolidated subsidiary, at cost....................... - - (186) Investment in and advances to unconsolidated subsidiaries, at equity............................................................ (647) (1,200) (2,760) Proceeds from sale of Changing Paradigms, Inc.......................... - - 350 Other.................................................................. (1,501) 1,570 (855) -------- -------- -------- Net cash used in investing activities of continuing operations........................................................ (5,040) (184) (16,776) Net cash used in investing activities of discontinued operations........................................... (477) (87) (609) -------- -------- -------- Net cash used in investing activities................................ (5,517) (271) (17,385) -------- -------- -------- Cash flows from financing activities: Proceeds from credit facility.......................................... - 15,000 - Repayments of credit facility.......................................... (15,000) - - Sale of common stock................................................... 1,053 - - -------- -------- -------- Net cash (used in) provided by financing activities.................. (13,947) 15,000 - -------- -------- -------- Net increase (decrease) in cash and cash equivalents................... 40,427 (8,304) (10,880) Cash and cash equivalents at beginning of period....................... 3,353 11,657 22,537 -------- -------- -------- Cash and cash equivalents at end of period............................. $ 43,780 $ 3,353 $ 11,657 ======== ======== ========
EX-99.2 3 0003.txt PRESS RELEASE [Logo of Paragon] Exhibit 99.2 NEWS FOR IMMEDIATE RELEASE - --------------------- Contact: Kurt P. Ross ------- Guy B. Lawrence Ross & Lawrence tel: (212) 308-3333 E-mail: kpross@rosslawpr.com PARAGON TRADE BRANDS REPORTS FOURTH QUARTER AND YEAR END RESULTS STRONG SALES GROWTH AND IMPROVED OPERATING PERFORMANCE CONTINUE Norcross, GA, February 16, 2001 - Paragon Trade Brands, Inc. (OTC Bulletin Board: PGTR) today announced its results for the quarter and fifty-three week year ended December 31, 2000. The Company's 2000 fiscal fourth quarter and fiscal year included one additional week compared to the 1999 fiscal fourth quarter and fiscal year. Paragon reported net sales for the quarter of $166.8 million compared to $121.9 million for the fiscal fourth quarter of 1999, an increase of 37 percent. Net earnings from continuing operations was $13.9 million ($1.13 per diluted share) compared to a loss adjusted for non-recurring items of $1.2 million ($.10 per diluted share) in the fiscal fourth quarter of 1999. Earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA) for the fiscal fourth quarter totaled $25.2 million compared to $6.7 million adjusted for non-recurring items for the fiscal fourth quarter of 1999. In the fiscal fourth quarter of 1999, non-recurring items of $2.8 million of expense relates primarily to bankruptcy proceedings. Net income in the fiscal fourth quarter was $15.9 million ($1.30 per diluted share) compared to a loss of $7.5 million ($.63 per diluted share) in the prior year. For the fifty-three week year ended December 31, 2000, the Company reported net sales of $557.1 million compared to $486.2 million for the fifty-two week year ended December 26, 1999, an increase of 15 percent. Net earnings from continuing operations adjusted for non-recurring items were $28.7 million ($2.38 per diluted share) compared to a loss of $3.0 million ($.25 per diluted share) in fiscal year 1999. Earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA), adjusted for non-recurring items, for fiscal 2000 totaled $69.6 million compared to $28.9 million for fiscal 1999. Non-recurring items in fiscal 2000 of $15.3 million of expense relates primarily to bankruptcy proceedings. In fiscal 1999, the non-recurring items of $11.7 million of expense related primarily to bankruptcy and plant closure costs. Net income in the 2000 fiscal year was $112.8 million ($9.44 per diluted share) compared to a loss of $28.4 million ($2.37 per diluted share) in the prior fiscal year. In August 2000, the Company made a decision to concentrate on its core infant care business. In connection with this decision the Company intends to sell its Gaffney, South Carolina femcare and adult incontinence assets. The consolidated financial statements of the Company have been restated to reflect the discontinued operation's results and the anticipated losses from the disposal of the assets. Commenting on the results, Chairman and Chief Executive Officer Michael Riordan said, "We are pleased to report fourth quarter sales growth in excess of 25 percent on a basis comparable to last year. We finished 2000 with increased earnings, cash flow and a healthy balance sheet. Our exit from the femcare and adult incontinence business is proceeding in accordance with our plans and under budget. We recently added new capacity to our system to accommodate the increased order volume generated by our strengthening position in the marketplace. We will continue to invest in our business by expanding our capacity to produce both diapers and training pants in 2001. This year was important in regaining our position in the marketplace and re-establishing our financial stability." Paragon Trade Brands is the leading manufacturer of store brand infant disposable diapers in the United States and, through its wholly owned subsidiary, Paragon Trade Brands (Canada) Inc., is the leading marketer of store brand infant disposable diapers in Canada. Paragon manufactures a line of premium and economy diapers and training pants, which are distributed throughout the United States and Canada, primarily through grocery and food stores, mass merchandisers, warehouse clubs, toy stores and drug stores that market the products under their own store brand names. Through its international joint ventures, Paragon is also a leading supplier of infant disposable diapers and other absorbent personal care products in Mexico, Argentina, Brazil and China. Statements made in this press release, other than those concerning historical information, should be considered forward-looking statements. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in the Company's forward-looking statements. Factors which could affect the Company's financial results, including, but not limited to: increased raw material prices and product costs; new product and packaging introductions by competitors; increased price and promotion pressure from competitors; new competitors in the market; increased financial leverage; and patent litigation, are described in the Company's periodic filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K. Readers are cautioned not to place undue reliance on the forward-looking statements contained herein, which speak only as of the date hereof, and which are made by management pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. ### David C. Nicholson Executive Vice President and Chief Financial Officer Paragon Trade Brands, Inc. 180 Technology Parkway Norcross, GA 30092 678/969-5200
PARAGON TRADE BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (AMOUNTS IN 000's EXCEPT PER SHARE DATA) Successor Predecessor Successor Company Company Company ------------- ------------- ------------- Fourteen Thirteen Forty-Eight Weeks Ended Weeks Ended Weeks Ended Dec. 31, 2000 Dec. 26, 1999 Dec. 31, 2000 ------------- ------------- ------------- Sales, net of discounts and allowances.......................... $166,813 $121,943 $507,334 Cost of sales................................................... 130,165 107,091 407,561 -------- -------- -------- Gross profit.................................................... 36,648 14,852 99,773 Selling, general and administrative expense..................... 15,949 18,734 61,310 Research and development expense................................ 1,162 861 4,081 Plant closure expenses.......................................... - 28 - -------- -------- -------- Operating profit (loss)......................................... 19,537 (4,771) 34,382 Equity in (loss) earnings of unconsolidated subsidiaries.................................................. (1,223) 1,223 582 Interest expense................................................ 4,530 178 16,318 Other income - net.............................................. 2,022 1,474 3,854 -------- -------- -------- Earnings (loss) before income taxes, bankruptcy costs and extraordinary item....................... 15,806 (2,252) 22,500 Bankruptcy costs................................................ - 2,462 - -------- -------- -------- Earnings (loss) from continuing operations before Income taxes and extraordinary item............................. 15,806 (4,714) 22,500 Provision for (benefit from) income taxes....................... 1,951 (665) 1,818 -------- -------- -------- Earnings (loss) from continuing operations...................... 13,855 (4,049) 20,682 Gain (loss) on operation/disposal of discontinued operations - net of tax....................................... 2,350 (3,488) (22,153) -------- -------- -------- Earnings (loss) before extraordinary items and cumulative effect of change in accounting principle........... 16,205 (7,537) (1,471) Extraordinary item - gain from discharge of debt................ - - - Cumulative effect of change in accounting principle............. (295) - (295) -------- -------- -------- Net income (loss)............................................... $ 15,910 $ (7,537) $ (1,766) ======== ======== ======== Basic - earnings (loss) per share............................... $ 1.33 $ (.63) $ (.15) Diluted - earnings (loss) per share............................. $ 1.30 $ (.63) $ (.15) Weighted average common shares outstanding - basic.............. 11,996 11,950 11,970 -------- -------- -------- Predecessor Company ----------------------------- Five Fifty-Two Weeks Ended Weeks Ended Jan. 28, 2000 Dec. 26, 1999 ------------- ------------- Sales, net of discounts and allowances.......................... $ 49,767 $486,183 Cost of sales................................................... 40,721 417,524 -------- -------- Gross profit.................................................... 9,046 68,659 Selling, general and administrative expense..................... 5,728 74,991 Research and development expense................................ 313 3,644 Plant closure expenses.......................................... - 1,555 -------- -------- Operating profit (loss)......................................... 3,005 (11,531) Equity in (loss) earnings of unconsolidated subsidiaries.................................................. - 2,339 Interest expense................................................ 75 482 Other income - net.............................................. 97 3,474 -------- -------- Earnings (loss) before income taxes, bankruptcy costs and extraordinary item....................... 3,027 (6,200) Bankruptcy costs................................................ 10,399 9,538 -------- -------- Earnings (loss) from continuing operations before Income taxes and extraordinary item............................. (7,372) (15,738) Provision for (benefit from) income taxes....................... (100) (990) -------- -------- Earnings (loss) from continuing operations...................... (7,272) (14,748) Gain (loss) on operation/disposal of discontinued operations - net of tax....................................... (1,195) (13,628) -------- -------- Earnings (loss) before extraordinary items and cumulative effect of change in accounting principle........... (8,467) (28,376) Extraordinary item - gain from discharge of debt................ 123,043 - Cumulative effect of change in accounting principle............. - - -------- -------- Net income (loss)............................................... $114,576 $(28,376) ======== ======== Basic - earnings (loss) per share............................... $ 9.59 $ (2.37) Diluted - earnings (loss) per share............................. $ 9.59 $ (2.37) Weighted average common shares outstanding - basic.............. 11,950 11,950 -------- --------
PARAGON TRADE BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (DOLLAR AMOUNTS IN THOUSANDS) Successor Predecessor Company Company As of As of Assets December 31, 2000 December 26,1999 - ------------------------------------------------------- ----------------- ---------------- Cash and cash equivalents $ 43,780 $ 11,657 Receivables 79,796 84,084 Inventories 42,519 40,086 Current portion of deferred income taxes 1,219 5,557 Other current assets 1,975 2,729 Net current assets of discontinued operations 2,385 11,594 -------- -------- Total current assets 171,674 155,707 Net property, plant and equipment 84,288 90,892 Assets held for sale 3,571 2,312 Goodwill - 30,900 Investment in and advances to 86,255 79,144 unconsolidated subsidiaries Other assets 10,185 11,290 Net non-current assets of discontinued operations 11,117 30,275 -------- -------- Total assets $367,090 $400,520 ======== ======== Liabilities and Shareholders' Equity (Deficit) Accounts payable $ 50,252 $ 42,240 Accrued liabilities 49,201 34,259 -------- -------- Total current liabilities 99,453 76,499 Liabilities subject to compromise - 406,723 Long-term debt 146,000 - Other long-term liabilities 1,219 7,115 -------- -------- Total liabilities 246,672 490,337 Total shareholders' equity (deficit) 120,418 (89,817) -------- -------- Total liabilities and shareholders' equity (deficit) $367,090 $400,520 ======== ========
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollar amounts in thousands)
Successor Predecessor Company Company ----------------- ------------------------------ Forty-Eight Weeks Five Fifty-Two Ended Weeks Ended Weeks Ended Dec. 31, 2000 Jan. 28, 2000 Dec. 26, 1999 ----------------- ------------- ------------- Cash flows from operating activities: Earnings (loss) from continuing operations before extraordinary item..... $ 20,682 $ (7,272) $(14,748) Adjustments to reconcile earnings (loss) to net cash provided by (used in) operating activities: Depreciation and amortization.......................................... 20,150 2,328 33,043 Deferred income taxes.................................................. 128 382 (166) Equity in earnings of unconsolidated subsidiaries, net of dividends........................................................... 582 - (1,546) Write-down of assets................................................... 846 173 660 Changes in operating assets and liabilities: Accounts receivable.................................................... (9,521) (4,039) 4,566 Inventories and prepaid expenses....................................... 2,056 (1,934) 9,687 Accounts payable....................................................... 12,133 (6,404) (1,062) Checks issued but not cleared.......................................... (1,359) 1,509 (4,908) Prepetition reclamation payment authorized by court.................... - - (546) Liabilities subject to compromise...................................... - (13,032) - Accrued liabilities.................................................... 12,470 7,254 491 Other.................................................................. 6,377 (429) (4,032) -------- -------- -------- Net cash provided by (used in) operating activities of continuing operations............................................... 64,544 (21,464) 21,439 Net cash used in operating activities of discontinued operations............................................. (4,653) (1,569) (14,934) -------- -------- -------- Net cash provided by (used in) operating activities.................... 59,891 (23,033) 6,505 -------- -------- -------- Cash flows from investing activities: Expenditures for property and equipment.................................. (16,881) (658) (25,351) Proceeds from sale of property and equipment............................. 3,410 104 6,414 Repayment of advance from unconsolidated subsidiary, at equity........... 10,579 - 5,612 Investment in unconsolidated subsidiary, at cost......................... - - (186) Investment in and advances to unconsolidated subsidiaries, at equity.............................................................. (647) (1,200) (2,760) Proceeds from sale of Changing Paradigms, Inc............................ - - 350 Other.................................................................... (1,501) 1,570 (855) -------- -------- -------- Net cash used in investing activities of continuing operations.......................................................... (5,040) (184) (16,776) Net cash used in investing activities of discontinued operations............................................. (477) (87) (609) -------- -------- -------- Net cash used in investing activities.................................. (5,517) (271) (17,385) -------- -------- -------- Cash flows from financing activities: Proceeds from credit facility............................................ - 15,000 - Repayments of credit facility............................................ (15,000) - - Sale of common stock..................................................... 1,053 - - -------- -------- -------- Net cash (used in) provided by financing activities.................... (13,947) 15,000 - -------- -------- -------- Net increase (decrease) in cash and cash equivalents..................... 40,427 (8,304) (10,880) Cash and cash equivalents at beginning of period......................... 3,353 11,657 22,537 -------- -------- -------- Cash and cash equivalents at end of period............................... $ 43,780 $ 3,353 $ 11,657 ======== ======== ========
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