Positive Cash Flow From Operating Activities of
$8.7 million
New Management Structure Succeeding in
Improving Customer Service, Asset Management and Operational
Efficiencies
Additional Reductions in Cost Structure
Implemented
A. M. Castle & Co. (NYSE:CAS) (“the Company” or
“Castle”), a global distributor of specialty metal and plastic
products, value-added services and supply chain solutions, today
reported financial results for the three months ended
September 30, 2015.
President and CEO Steve Scheinkman commented, “Our transition
plan is succeeding on many important fronts, despite challenging
market conditions. Some of the initial proof points of this success
are: (1) Castle generated $8.7 million of positive operating cash
flow this quarter, the first quarter since 2013 that Castle
generated positive operating cash flow; (2) Borrowings under our
revolving credit facility were reduced by $5.2 million during the
quarter and we are fully engaged in a strategic refinancing process
to reduce our cost of capital going forward; (3) Operating
expenses, before restructuring charges, were reduced by $5.1
million on a sequential basis in the quarter and additional
initiatives have been implemented that we expect will yield further
expense reductions in the fourth quarter and through 2016; (4)
Gross margins, excluding a $22.3 million charge to write-down
inventory in the second quarter of 2015, improved from 24.9% to
25.4% sequentially, despite a deflationary pricing environment
driven by reductions in inter-branch transfers and double handling
achieved by the facility consolidations; (5) Our systems and
capabilities to effectively manage our assets are greatly improved
as evidenced by a further $13.2 million reduction in inventory on a
replacement cost basis during the quarter; and, (6) Customers are
embracing our new branch service strategy and we believe that we
have gained market share in our product lines measured in
comparative tons shipped during the quarter.”
Scheinkman continued, “The steel, plastics and other commodity
markets have been facing particularly challenging conditions and
these challenges are expected to continue in the fourth quarter.
Nevertheless, we believe the changes we have made in consolidating
facilities, reducing the cost structure, driving more
accountability down to the local branch level and improving
customer relationships are already yielding quantifiable
improvements for Castle and positioning us for long term
prosperity.”
During the quarter, the Company completed the closure and
consolidation of five facilities on or ahead of schedule and broke
ground on its new 208,000 square foot facility in Janesville,
Wisconsin. The Janesville facility is expected to begin providing
material to customers in November and is scheduled to become a
fully operational center of excellence for the Company's bar
business in the first quarter of 2016 allowing for the closure and
sale of its Franklin Park, Illinois facility.
Scheinkman added, “While maintaining our high standards for
safety, quality, delivery performance and focus on serving our
customers, our new branch managers working closely with our
operations teams were able to reposition approximately 16,000 tons
of metal as part of our facility consolidation plan. We expect to
realize the full impact of the actions taken this quarter on
operating expenses going forward as well as additional cost
reductions upon completion of the consolidation of the Franklin
Park facility into the new Janesville facility.”
Scheinkman stated, “While the steel industry in general faces a
challenging environment, the conditions are different for each of
our target markets. The energy market is particularly weak and this
trend is expected to continue for the foreseeable future.
Industrial markets are generally soft, but there are pockets of
opportunity, and our new, more nimble branch management strategies
are enabling us to capitalize on more of those opportunities. The
aerospace market remains strong, and we expect continued growth
opportunities in this market. As a result, in the aggregate we saw
our top line decrease by 7.5% from the previous quarter impacted
primarily by industry-wide commodity price declines and to a lesser
extent by volume declines including the elimination of unprofitable
products. From a volume perspective, while our quarter over quarter
tons sold to contractual accounts decreased by 8.6%, our
transactional business increased by 5.7%. With our local branch
management structure in place, supported by operational gains
achieved through our facility consolidations, we have become more
responsive to the needs of our customers resulting in the gains we
are seeing in the transactional markets.”
“We are very pleased with the progress we have made and the
early signs of success of our initiatives despite the challenging
market conditions. We have a lot more work to do, but we are
increasingly confident that Castle is on the right path to not only
respond to current challenges, but to thrive for the long term,”
concluded Scheinkman.
Third Quarter 2015 Results
Consolidated net sales were $184.7 million for the third quarter
2015 compared to $245.5 million in the third quarter 2014. The
Company reported a third quarter 2015 net loss of $26.3 million, or
a loss of $1.12 per diluted share, compared to a net loss of $7.3
million, or a loss of $0.31 per diluted share, in the prior year
period. Adjusted non-GAAP net loss, which excludes
restructuring activity and other items reconciled in the tables
below, for the third quarter 2015 was $20.8 million compared to
adjusted non-GAAP net loss of $12.9 million in the third quarter
2014. The Company reported third quarter 2015 negative EBITDA of
$9.8 million, compared to EBITDA of $6.5 million in the third
quarter 2014. Third quarter 2015 and third quarter 2014 results
were impacted by $2.3 million of foreign currency transaction gains
in each of those quarters. In addition, $1.5 million from equity
losses of the Company's joint venture negatively impacted the third
quarter 2015 results compared to the third quarter 2014 which was
positively impacted by $2.2 million from equity in the earnings of
the Company's joint venture. Exclusive of restructuring activity
and other items reconciled in the tables below, the Company
reported a third quarter 2015 adjusted negative EBITDA loss of $4.3
million compared with adjusted EBITDA of $0.8 million in the third
quarter 2014. The Company had an adjusted negative EBITDA loss of
$5.0 million in the second quarter 2015.
Total restructuring charges recorded during the third quarter of
2015 were $1.2 million compared to income from restructuring
activity of $5.1 million in the prior year period. Year-to-date,
total restructuring charges were $40.0 million, $14.6 million of
which represented cash charges. The cash charges to-date include an
estimated $5.5 million charge from the withdrawal of a
multi-employer pension plan that may be paid over 20 years. The
Company's total estimated cash and noncash charges to be incurred
as part of its restructuring initiatives remain consistent with its
initial estimated range of $49.5 million to $64.4 million. The
Company's estimate of cash proceeds related to the closure
facilities is approximately $23 million.
“We have continued to implement the significant cost saving and
asset management initiatives announced in April 2015,” said Pat
Anderson, Executive Vice President and CFO. “Our progress towards
this plan is evidenced by the improvement we have shown in our cash
flow, inventory reduction, operating expense, and EBITDA
performance. With a lowered cost structure and improved asset
management, we believe we are better positioned to generate
positive cash flow going forward, and we are fully engaged in a
strategic refinancing process focused on improving our capital
structure and lowering our interest expense.”
Net sales from the Metals segment during the third quarter 2015
were $150.6 million, which was 28.5% lower than the third quarter
2014 and 9.5% lower than the second quarter 2015. Tons sold per day
were down 27.3% compared to the third quarter 2014 and down 2.7%
compared to the second quarter 2015. Average selling price per ton
sold was down 1.4% from the third quarter 2014 and down 7.1% from
the second quarter 2015. The third quarter 2015 benefited from a
favorable product mix which offset some of the impact of
unfavorable pricing compared to the third quarter 2014 and the
second quarter 2015. In the Plastics segment, third quarter 2015
net sales were $34.1 million, which was 2.0% lower compared to the
third quarter 2014 but up 2.2% compared to the second quarter
2015.
Consolidated gross margins were 25.4% in the third quarter 2015
compared to 24.9% in the third quarter 2014. Gross margins in the
third quarter 2015 included LIFO income of $1.5 million compared to
a $0.4 million LIFO charge in the third quarter 2014. Excluding the
LIFO impact, Metals segment gross margins were 23.4% in the third
quarter 2015 compared to 24.4% in the prior year quarter. Metals
segment gross margins in the second quarter 2015, excluding the
$22.3 million restructuring charge for the write-down of inventory
and LIFO income of $1.5 million, were 22.9%.
Excluding restructuring charges of $1.2 million, operating
expenses were $57.8 million, or 31.3% of net sales, in the third
quarter 2015, compared to $66.0 million, or 26.9% of net sales in
third quarter 2014 (excluding restructuring income of $5.1
million), and $62.9 million, or 31.5% of net sales, in the second
quarter 2015 (excluding restructuring charges of $15.6
million).
Net cash used in operations was $6.4 million during the first
nine months of 2015, compared to net cash used in operations of
$44.8 million during the first nine months of 2014. For the three
months ended September 30, 2015, net cash flows from operations was
$8.7 million. The Company had $68.3 million of borrowings
outstanding under its revolving credit facility at
September 30, 2015 and $28.2 million of additional
unrestricted borrowing capacity available under the terms of the
revolving credit facility. There were $59.2 million in borrowings
under the revolving credit facility at December 31, 2014 and
$73.5 million at June 30, 2015. The Company’s net debt-to-capital
ratio was 85.5% at September 30, 2015 compared to 65.5% at
December 31, 2014. Total debt outstanding, net of
unamortized discount, was $322.7 million at September 30, 2015
and $310.1 million at December 31, 2014. Refer to the ‘Total
Debt’ table below for details related to the Company’s outstanding
debt obligations.
Scheinkman concluded, “The current soft market conditions and
customer inventory de-stocking in response to deflationary pricing
has certainly had an impact on our business as shipping tons and
pricing have continued to decline for most of the products we sell.
We believe, however, that the significant process changes we have
been implementing will serve to increase sales and lower our cost
structure helping to bring us back to positive EBITDA in 2016 and
position us for revenue growth that will drive profitability going
forward. With Castle’s asset rich balance sheet, coupled with the
operational improvements we are implementing, we are determined to
improve the Company’s capital structure, lower its cost of capital
and enhance financial flexibility.”
Webcast Information
Management will hold a conference call at 11:00 a.m. ET today to
review the Company's results for the third quarter ended
September 30, 2015 and discuss business conditions and
outlook. The call can be accessed via the internet live or as a
replay. Those who would like to listen to the call may access the
webcast through a link on the investor relations page of the
Company’s website at http://www.amcastle.com/investors or by
calling (888) 517-2458 or (847) 413-3538 and citing code 5673
805#.
An archived version of the conference call webcast will be
available for replay at the link above approximately three hours
following its conclusion, and will remain available until the next
earnings conference call.
About A. M. Castle & Co.
Founded in 1890, A. M. Castle & Co. is a global distributor
of specialty metal and plastic products and supply chain services,
principally serving the producer durable equipment, oil and gas,
commercial aircraft, heavy equipment, industrial goods,
construction equipment, retail, marine and automotive sectors of
the global economy. Its customer base includes many Fortune
500 companies as well as thousands of medium and smaller-sized
firms spread across a variety of industries. Within its metals
business, it specializes in the distribution of alloy and stainless
steels; nickel alloys; aluminum and carbon. Through its
wholly-owned subsidiary, Total Plastics, Inc., the Company also
distributes a broad range of value-added industrial plastics.
Together, Castle and its affiliated companies operate out of 42
service centers located throughout North America, Europe and
Asia. Its common stock is traded on the New York Stock
Exchange under the ticker symbol "CAS".
Regulation G Disclosure
This release and the financial statements included in this
release include non-GAAP financial measures. The non-GAAP financial
information should be considered supplemental to, and not as a
substitute for, or superior to, financial measures calculated in
accordance with GAAP. However, we believe that non-GAAP reporting,
giving effect to the adjustments shown in the reconciliation
contained in this release and in the attached financial statements,
provides meaningful information and therefore we use it to
supplement our GAAP reporting and guidance. Management often uses
this information to assess and measure the performance of our
business. We have chosen to provide this supplemental information
to investors, analysts and other interested parties to enable them
to perform additional analyses of operating results, to illustrate
the results of operations giving effect to the non-GAAP adjustments
shown in the reconciliations and to assist with period-over-period
comparisons of such operations. The exclusion of the charges
indicated herein from the non-GAAP financial measures presented
does not indicate an expectation by the Company that similar
charges will not be incurred in subsequent periods.
In addition, the Company believes that the use and presentation
of EBITDA, which is defined by the Company as income (loss) before
provision for income taxes plus depreciation and amortization, and
interest expense, less interest income, is widely used by the
investment community for evaluation purposes and provides
investors, analysts and other interested parties with additional
information in analyzing the Company’s operating
results. Adjusted non-GAAP net income (loss) and adjusted
EBITDA, which are defined as reported net income (loss) and EBITDA
adjusted for non-cash items and items which are not considered by
management to be indicative of the underlying results, are
presented as the Company believes the information is important to
provide investors, analysts and other interested parties additional
information about the Company’s financial
performance. Management uses EBITDA, adjusted non-GAAP net
income (loss) and adjusted EBITDA to evaluate the performance of
the business.
Cautionary Statement on Risks Associated with Forward Looking
Statements
Information provided and statements contained in this release
that are not purely historical are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended (“Securities Act”), Section 21E of the Securities Exchange
Act of 1934, as amended (“Exchange Act”), and the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements only speak as of the date of this release and the
Company assumes no obligation to update the information included in
this release. Such forward-looking statements include information
concerning our possible or assumed future results of operations,
including descriptions of our business strategy, and the cost
savings and other benefits that we expect to achieve from our
facility closures and organizational changes. These statements
often include words such as “believe,” “expect,” “anticipate,”
“intend,” “predict,” “plan,” "should," or similar expressions.
These statements are not guarantees of performance or results, and
they involve risks, uncertainties, and assumptions. Although we
believe that these forward-looking statements are based on
reasonable assumptions, there are many factors that could affect
our actual financial results or results of operations and could
cause actual results to differ materially from those in the
forward-looking statements, including our ability to effectively
manage our operational initiatives and restructuring activities,
the impact of volatility of metals and plastics prices, the
cyclical and seasonal aspects of our business, our ability to
effectively manage inventory levels, our ability to successfully
complete our strategic refinancing process, and the impact of our
substantial level of indebtedness, as well as including those risk
factors identified in Item 1A “Risk Factors” of our Annual Report
on Form 10-K for the fiscal year ended December 31, 2014. All
future written and oral forward-looking statements by us or persons
acting on our behalf are expressly qualified in their entirety by
the cautionary statements contained or referred to above. Except as
required by the federal securities laws, we do not have any
obligations or intention to release publicly any revisions to any
forward-looking statements to reflect events or circumstances in
the future, to reflect the occurrence of unanticipated events or
for any other reason.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three
MonthsEnded
For the Nine MonthsEnded
(Dollars in thousands, except per share data) Unaudited
September 30, September 30, 2015
2014 2015 2014 Net sales $ 184,676 $
245,469 $ 606,607 $ 748,371 Costs and expenses: Cost of materials
(exclusive of depreciation and amortization) 137,770 184,417
478,283 564,513 Warehouse, processing and delivery expense 29,392
34,440 87,340 106,568 Sales, general, and administrative expense
22,397 25,185 73,615 84,280 Restructuring expense (income) 1,204
(5,147 ) 17,653 (3,501 ) Depreciation and amortization expense
5,994 6,399 18,661 19,389 Impairment of goodwill — —
— 56,160 Total costs and expenses 196,757
245,294 675,552 827,409 Operating income
(loss) (12,081 ) 175 (68,945 ) (79,038 ) Interest expense, net
(10,506 ) (10,148 ) (31,426 ) (29,988 ) Other expense, net (2,270 )
(2,335 ) (4,532 ) (1,427 ) Loss before income taxes and equity in
earnings (losses) of joint venture (24,857 ) (12,308 ) (104,903 )
(110,453 ) Income tax benefit (expense) 17 2,770 (889
) 8,918 Loss before equity in earnings (losses) of joint
venture (24,840 ) (9,538 ) (105,792 ) (101,535 ) Equity in earnings
(losses) of joint venture (1,460 ) 2,213 (134 ) 5,914
Net loss $ (26,300 ) $ (7,325 ) $ (105,926 ) $ (95,621 ) Basic loss
per common share $ (1.12 ) $ (0.31 ) $ (4.50 ) $ (4.10 ) Diluted
loss per common share $ (1.12 ) $ (0.31 ) $ (4.50 ) $ (4.10 )
EBITDA (a) $ (9,817 ) $ 6,452 $ (54,950 ) $ (55,162 ) (a)
Earnings (loss) before interest, taxes, and depreciation and
amortization. See reconciliation to net loss below.
Reconciliation of
EBITDA and of Adjusted EBITDA to Net Loss:
For
theThreeMonthsEnded
For the Three
MonthsEnded
For the Nine MonthsEnded
(Dollars in thousands) Unaudited
September 30, June
30, September 30, 2015 2014 2015
2015 2014 Net loss $ (26,300 ) $ (7,325 ) $ (58,920 )
$ (105,926 ) $ (95,621 ) Depreciation and amortization expense
5,994 6,399 6,312 18,661 19,389 Interest expense, net 10,506 10,148
10,374 31,426 29,988 Income tax (benefit) expense (17 ) (2,770 )
1,731 889 (8,918 ) EBITDA (9,817 ) 6,452 (40,503 )
(54,950 ) (55,162 ) Non-GAAP net loss adjustments (b) 5,536
(5,616 ) 35,493 39,958 51,325 Adjusted EBITDA
$ (4,281 ) $ 836 $ (5,010 ) $ (14,992 ) $ (3,837 ) (b)
Non-GAAP net loss adjustments relate to restructuring activity,
foreign exchange losses (gains) on intercompany loans, unrealized
gains on commodity hedges, impairment of goodwill, impairment of
goodwill of the Company's joint venture, and gain on sale of
property, plant and equipment, as applicable, for all periods
presented. Refer to 'Reconciliation of Adjusted Non-GAAP Net Loss
to Reported Net Loss' table for additional details on these
amounts. Unrealized foreign exchange losses on intercompany loans
were not included in Adjusted EBITDA in the prior year period
presented as the amount was not significant; had losses been
included, Adjusted EBITDA would have been $2,946 and $(2,506),
respectively, for the three and nine-month period ended September
30, 2014.
Reconciliation of
Adjusted Non-GAAP Net Loss to Reported Net Loss:
For
theThreeMonthsEnded
(Dollars in thousands, except per share data)
For the Three
MonthsEnded
For the Nine MonthsEnded
Unaudited
September 30, June 30, September 30,
2015 2014 2015 2015 2014 Net
loss, as reported $ (26,300 ) $ (7,325 ) $ (58,920 ) $ (105,926 ) $
(95,621 ) Restructuring activity (a) 1,204 (5,147 ) 37,953 39,988
(3,501 ) Foreign exchange losses on intercompany loans(b) 2,709 —
(2,389 ) 4,142 — Impairment of goodwill — — — — 56,160 Impairment
of goodwill of equity investment joint venture(c) 1,763 — — 1,763 —
Unrealized losses (gains) on commodity hedges (140 ) (469 ) (71 )
(313 ) (1,334 ) Gain on sale of property, plant and equipment — —
(5,622 ) — Tax effect of adjustments — — — —
(7,260 ) Adjusted non-GAAP net loss $ (20,764 ) $ (12,941 )
$ (23,427 ) $ (65,968 ) $ (51,556 ) Adjusted non-GAAP basic loss
per share $ (0.88 ) $ (0.55 ) $ (0.99 ) $ (2.80 ) $ (2.21 )
Adjusted non-GAAP diluted loss per share $ (0.88 ) $ (0.55 ) $
(0.99 ) $ (2.80 ) $ (2.21 ) (a) Restructuring activity includes
amounts recorded to restructuring expense (income). For the nine
months ended September 30, 2015 and the three months ended June 30,
2015, amounts include a $22,335 inventory write-down charge
recorded to cost of materials in the Condensed Consolidated
Statements of Operations. (b) Unrealized foreign exchange
losses on intercompany loans were not included in the prior year
period presented as an adjustment to GAAP results as the amount was
not significant. Had the losses been included, adjusted non-GAAP
net loss, adjusted non-GAAP loss per share and adjusted non-GAAP
diluted loss per share would have been $(10,831), $(0.46), and
$(0.46), respectively, for the three-month period ended September
30, 2014. Adjusted non-GAAP net loss, adjusted non-GAAP loss per
share and adjusted non-GAAP diluted loss per share would have been
$(50,225), $(2.15), and $(2.15), respectively, for the nine-month
period ended September 30, 2014. (c) The Company's 50% joint
venture has determined that its goodwill balance of $3,525 was
impaired as of September 30, 2015. The Company has recorded $1,763
in equity in earnings (losses) of joint venture in the Condensed
Consolidated Statements of Operations to reflect its share of the
goodwill impairment.
CONDENSED CONSOLIDATED BALANCE
SHEETS As of (In thousands, except par value data)
September 30, December 31, Unaudited
2015 2014 ASSETS Current assets: Cash and cash
equivalents $ 11,972 $ 8,454 Accounts receivable, less allowances
of $3,756 and $3,375, respectively 108,700 131,003 Inventories,
principally on last-in first-out basis (replacement cost higher by
$126,085 and $129,779, respectively) 192,382 236,932 Prepaid
expenses and other current assets 16,684 9,458 Deferred income
taxes 974 685 Income tax receivable 1,886 2,886 Total
current assets 332,598 389,418 Investment in joint venture 36,995
37,443 Goodwill 12,973 12,973 Intangible assets, net 46,792 56,555
Prepaid pension cost 7,293 7,092 Other non-current assets 10,970
11,660 Property, plant and equipment: Land 3,592 4,466 Buildings
55,661 52,821 Machinery and equipment 183,283 183,923
Property, plant and equipment, at cost 242,536 241,210 Accumulated
depreciation (173,195 ) (168,375 ) Property, plant and equipment,
net 69,341 72,835 Total assets $ 516,962 $
587,976
LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable $ 71,730 $ 68,782 Accrued and other
current liabilities 44,890 27,670 Income tax payable 874 328
Current portion of long-term debt 514 737 Total
current liabilities 118,008 97,517 Long-term debt, less current
portion 322,216 309,377 Deferred income taxes 7,929 8,360
Build-to-suit liability 4,711 — Other non-current liabilities 3,547
3,655 Pension and postretirement benefit obligations 19,856 18,747
Commitments and contingencies Stockholders' equity: Preferred
stock, $0.01 par value—9,988 shares authorized (including 400
Series B Junior Preferred $0.00 par value shares); no shares issued
and outstanding at September 30, 2015 and December 31, 2014,
respectively — — Common stock, $0.01 par value—60,000 shares
authorized and 23,888 shares issued and 23,777 outstanding at
September 30, 2015 and 23,630 shares issued and 23,559 outstanding
at December 31, 2014 238 236 Additional paid-in capital 226,501
225,953 Accumulated deficit (135,350 ) (29,424 ) Accumulated other
comprehensive loss (49,669 ) (45,565 ) Treasury stock, at cost—111
shares at September 30, 2015 and 71 shares at December 31, 2014
(1,025 ) (880 ) Total stockholders' equity 40,695 150,320
Total liabilities and stockholders' equity $ 516,962
$ 587,976
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS For the Nine Months Ended (Dollars in
thousands)
September 30, Unaudited
2015
2014 Operating activities: Net loss $ (105,926 ) $ (95,621 )
Adjustments to reconcile net loss to net cash used in operating
activities: Depreciation and amortization 18,661 19,389
Amortization of deferred financing costs and debt discount 6,241
5,702 Impairment of goodwill — 56,160 Gain on sale of property,
plant and equipment (5,741 ) (5,606 ) Unrealized gains on commodity
hedges (313 ) (1,334 ) Unrealized foreign currency transaction
losses 4,142 — Equity in (earnings) losses of joint venture 134
(5,914 ) Dividends from joint venture 315 1,546 Pension curtailment
3,080 — Deferred income taxes (280 ) (8,043 ) Other, net 412 949
Changes in assets and liabilities: Accounts receivable 18,748
(20,922 ) Inventories 39,333 (39,690 ) Prepaid expenses and other
current assets (7,700 ) (2,593 ) Other non-current assets (2,789 )
2,558 Prepaid pension costs 1,272 518 Accounts payable 4,952 43,796
Income tax payable and receivable 1,188 (2,179 ) Accrued and other
current liabilities 18,260 7,182 Pension and postretirement benefit
obligations and other non-current liabilities (400 ) (731 ) Net
cash used in operating activities (6,411 ) (44,833 ) Investing
activities: Capital expenditures (5,393 ) (8,725 ) Proceeds from
sale of property, plant and equipment 7,742 7,148 Net
cash from (used in) investing activities 2,349 (1,577 ) Financing
activities: Proceeds from long-term debt 707,200 222,789 Repayments
of long-term debt (698,696 ) (195,343 ) Payments of build-to-suit
liability (500 ) — Other, net — 193 Net cash from
(used in) financing activities 8,004 27,639 Effect of exchange rate
changes on cash and cash equivalents (424 ) (253 ) Net change in
cash and cash equivalents 3,518 (19,024 ) Cash and cash
equivalents—beginning of year 8,454 30,829 Cash and
cash equivalents—end of period $ 11,972 $ 11,805
Total
Debt:
As of (Dollars in thousands)
September 30,
December 31, Unaudited
2015 2014 LONG-TERM
DEBT 12.75% Senior Secured Notes due December 15, 2016 $ 210,000 $
210,000 7.0% Convertible Notes due December 15, 2017 57,500 57,500
Revolving Credit Facility due December 10, 2019 68,300 59,200
Other, primarily capital leases 657 1,257 Less: unamortized
discount (13,727 ) (17,843 ) Total debt $ 322,730 $ 310,114 Less:
current portion (514 ) (737 ) Total long-term portion $ 322,216
$ 309,377
Reconciliation of
Total Debt to Net Debt and Net Debt-to-Capital:
As of (Dollars in thousands)
September 30,
December 31, Unaudited
2015 2014 Total debt $
322,730 $ 310,114 Less: Cash and cash equivalents (11,972 ) (8,454
) NET DEBT $ 310,758 $ 301,660 Stockholders'
equity $ 40,695 $ 150,320 Total debt 322,730 310,114
CAPITAL $ 363,425 $ 460,434 NET
DEBT-TO-CAPITAL 85.5 % 65.5 %
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version on businesswire.com: http://www.businesswire.com/news/home/20151105005414/en/
-At ALPHA IR-Analyst ContactMonica Gupta or Nick
Hughes(312) 445-2870Email: CAS@alpha-ir.comTraded: NYSE (CAS)