þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the Quarterly Period Ended June 30, 2014 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 61-1488595 | |
(State or other jurisdiction of | (I.R.S. Employer Identification No.) | |
incorporation or organization) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | |||
(Do not check if a smaller reporting company) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
(in thousands, except per share information) | 2014 | 2013 | 2014 | 2013 | |||||||||||
Net sales | $ | 428,279 | $ | 367,887 | $ | 832,217 | $ | 740,886 | |||||||
Cost of sales | 290,286 | 253,404 | 566,286 | 511,597 | |||||||||||
Gross profit | 137,993 | 114,483 | 265,931 | 229,289 | |||||||||||
Operating expenses | |||||||||||||||
Selling, general and administrative expenses | 77,731 | 65,654 | 148,771 | 131,103 | |||||||||||
Transaction expenses | 682 | 1,806 | 810 | 1,815 | |||||||||||
Loss (gain) on sale of assets and other | (284 | ) | (115 | ) | 405 | 20 | |||||||||
Total operating expenses | 78,129 | 67,345 | 149,986 | 132,938 | |||||||||||
Earnings from equity investment | 5,940 | — | 11,248 | — | |||||||||||
Operating income | 65,804 | 47,138 | 127,193 | 96,351 | |||||||||||
Other expense (income) | |||||||||||||||
Interest expense | 7,725 | 3,111 | 15,475 | 6,474 | |||||||||||
Foreign exchange (gains) losses and other, net | 3,129 | 1,019 | 4,606 | (448 | ) | ||||||||||
Total other expense | 10,854 | 4,130 | 20,081 | 6,026 | |||||||||||
Income before income taxes | 54,950 | 43,008 | 107,112 | 90,325 | |||||||||||
Provision for income tax expense | 15,407 | 13,068 | 31,063 | 28,447 | |||||||||||
Net income | 39,543 | 29,940 | 76,049 | 61,878 | |||||||||||
Less: Income attributable to noncontrolling interest | 21 | 21 | (3 | ) | 19 | ||||||||||
Net income attributable to common stockholders | 39,522 | 29,919 | 76,052 | 61,859 | |||||||||||
Weighted average shares outstanding | |||||||||||||||
Basic | 92,649 | 91,032 | 92,391 | 89,790 | |||||||||||
Diluted | 95,695 | 94,606 | 95,363 | 94,501 | |||||||||||
Earnings per share | |||||||||||||||
Basic | $ | 0.43 | $ | 0.33 | $ | 0.82 | $ | 0.69 | |||||||
Diluted | $ | 0.41 | $ | 0.32 | $ | 0.80 | $ | 0.65 | |||||||
Other comprehensive income, net of tax: | |||||||||||||||
Net income | 39,543 | 29,940 | 76,049 | 61,878 | |||||||||||
Change in foreign currency translation, net of tax of $0 | 11,690 | (2,154 | ) | 12,720 | (24,903 | ) | |||||||||
Gain on pension liability | — | — | 2 | — | |||||||||||
Comprehensive income | 51,233 | 27,786 | 88,771 | 36,975 | |||||||||||
Less: comprehensive loss (income) attributable to noncontrolling interests | (15 | ) | 20 | 12 | 82 | ||||||||||
Comprehensive income attributable to common stockholders | $ | 51,218 | $ | 27,806 | $ | 88,783 | $ | 37,057 |
(in thousands, except share information) | June 30, 2014 | December 31, 2013 | |||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 32,642 | $ | 39,582 | |||
Accounts receivable—trade, net | 276,604 | 250,272 | |||||
Inventories | 458,004 | 441,049 | |||||
Prepaid expenses and other current assets | 21,730 | 29,707 | |||||
Costs and estimated profits in excess of billings | 34,656 | 24,012 | |||||
Deferred income taxes, net | 26,316 | 24,846 | |||||
Total current assets | 849,952 | 809,468 | |||||
Property and equipment, net of accumulated depreciation | 188,080 | 180,292 | |||||
Deferred financing costs, net | 14,385 | 15,658 | |||||
Intangibles | 295,710 | 295,352 | |||||
Goodwill | 824,400 | 802,318 | |||||
Investment in unconsolidated subsidiary | 58,121 | 60,292 | |||||
Other long-term assets | 4,696 | 5,489 | |||||
Total assets | $ | 2,235,344 | $ | 2,168,869 | |||
Liabilities and equity | |||||||
Current liabilities | |||||||
Current portion of long-term debt | $ | 914 | $ | 998 | |||
Accounts payable—trade | 129,639 | 100,221 | |||||
Accrued liabilities | 82,444 | 96,529 | |||||
Deferred revenue | 12,850 | 15,837 | |||||
Billings in excess of costs and profits recognized | 14,642 | 6,398 | |||||
Total current liabilities | 240,489 | 219,983 | |||||
Long-term debt, net of current portion | 436,650 | 512,077 | |||||
Deferred income taxes, net | 105,998 | 97,774 | |||||
Other long-term liabilities | 12,015 | 8,069 | |||||
Total liabilities | 795,152 | 837,903 | |||||
Commitments and contingencies | |||||||
Equity | |||||||
Common stock, $0.01 par value, 296,000,000 shares authorized, 93,883,314 and 92,803,389 shares issued | 938 | 928 | |||||
Additional paid-in capital | 847,996 | 826,064 | |||||
Treasury stock at cost, 3,615,194 and 3,585,098 shares | (31,130 | ) | (30,249 | ) | |||
Warrants | 82 | 687 | |||||
Retained earnings | 601,192 | 525,140 | |||||
Accumulated other comprehensive income | 20,515 | 7,785 | |||||
Total stockholders’ equity | 1,439,593 | 1,330,355 | |||||
Noncontrolling interest in subsidiary | 599 | 611 | |||||
Total equity | 1,440,192 | 1,330,966 | |||||
Total liabilities and equity | $ | 2,235,344 | $ | 2,168,869 |
Six Months Ended June 30, | |||||||
(in thousands, except share information) | 2014 | 2013 | |||||
Cash flows from operating activities | |||||||
Net income | $ | 76,049 | $ | 61,878 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation expense | 18,650 | 17,191 | |||||
Amortization of intangible assets | 13,678 | 11,060 | |||||
Share-based compensation expense | 9,414 | 8,173 | |||||
Deferred income taxes | 6,307 | 3,153 | |||||
Earnings from equity investment, net of distributions | 2,171 | — | |||||
Other | 2,337 | 907 | |||||
Changes in operating assets and liabilities | |||||||
Accounts receivable—trade | (24,780 | ) | (20,325 | ) | |||
Inventories | (11,695 | ) | 23,905 | ||||
Prepaid expenses and other current assets | 10,971 | (2,840 | ) | ||||
Accounts payable, deferred revenue and other accrued liabilities | 11,924 | (8,362 | ) | ||||
Costs and estimated profits in excess of billings, net | (1,943 | ) | (5,285 | ) | |||
Net cash provided by operating activities | $ | 113,083 | $ | 89,455 | |||
Cash flows from investing activities | |||||||
Acquisition of businesses, net of cash acquired | (37,682 | ) | (2,611 | ) | |||
Capital expenditures for property and equipment | (28,718 | ) | (30,065 | ) | |||
Proceeds from sale of business, property and equipment | 8,596 | 382 | |||||
Net cash used in investing activities | $ | (57,804 | ) | $ | (32,294 | ) | |
Cash flows from financing activities | |||||||
Borrowings under Credit Facility | — | 177,923 | |||||
Repayment of long-term debt | (75,511 | ) | (68,083 | ) | |||
Payment of contingent consideration | — | (11,435 | ) | ||||
Excess tax benefits from stock based compensation | 5,179 | 2,791 | |||||
Repurchases of stock | (881 | ) | (531 | ) | |||
Proceeds from stock issuance | 6,746 | 3,314 | |||||
Deferred financing costs | (5 | ) | (13 | ) | |||
Net cash provided by (used in) financing activities | $ | (64,472 | ) | $ | 103,966 | ||
Effect of exchange rate changes on cash | 2,253 | (2,710 | ) | ||||
Net increase (decrease) in cash and cash equivalents | (6,940 | ) | 158,417 | ||||
Cash and cash equivalents | |||||||
Beginning of period | 39,582 | 41,063 | |||||
End of period | $ | 32,642 | $ | 199,480 | |||
Noncash investing and financing activities | |||||||
Payment of contingent consideration via stock | $ | — | $ | 4,075 |
2014 Acquisition | ||||
Current assets, net of cash acquired | $ | 7,463 | ||
Property and equipment | 3,837 | |||
Intangible assets (primarily customer relationships) | 13,335 | |||
Non-tax-deductible goodwill | 19,007 | |||
Current liabilities | (1,914 | ) | ||
Deferred tax liabilities | (3,467 | ) | ||
Net assets acquired | $ | 38,261 |
• | Blohm + Voss Oil Tools GmbH and related entities ("B+V"), a manufacturer of pipe handling equipment used on offshore and onshore drilling rigs with locations in Hamburg, Germany and Willis, Texas. B+V is included in the Drilling & Subsea segment; and |
• | Moffat 2000 Ltd. ("Moffat"), a Newcastle, England based manufacturer of subsea pipeline inspection gauge launching and receiving systems, and subsea connectors. Moffat is included in the Drilling & Subsea segment. |
2013 Acquisitions | ||||
Current assets, net of cash acquired | $ | 60,669 | ||
Property and equipment | 4,545 | |||
Intangible assets (primarily customer relationships) | 59,242 | |||
Non-tax-deductible goodwill | 100,257 | |||
Current liabilities | (17,619 | ) | ||
Long-term liabilities | (7,879 | ) | ||
Deferred tax liabilities | (20,108 | ) | ||
Net assets acquired | $ | 179,107 |
June 30, 2014 | December 31, 2013 | ||||||
Raw materials and parts | $ | 138,949 | $ | 139,573 | |||
Work in process | 53,160 | 51,819 | |||||
Finished goods | 295,898 | 276,076 | |||||
Gross inventories | 488,007 | 467,468 | |||||
Inventory reserve | (30,003 | ) | (26,419 | ) | |||
Inventories | $ | 458,004 | $ | 441,049 |
Drilling & Subsea | Production & Infrastructure | Total | |||||||||
Goodwill Balance at January 1, 2014 net | $ | 723,355 | $ | 78,963 | $ | 802,318 | |||||
Acquisitions and divestitures | 15,352 | — | 15,352 | ||||||||
Impact of non-U.S. local currency translation | 6,749 | (19 | ) | 6,730 | |||||||
Goodwill Balance at June 30, 2014 net | $ | 745,456 | $ | 78,944 | $ | 824,400 |
June 30, 2014 | |||||||||||||
Gross carrying amount | Accumulated amortization | Net amortizable intangibles | Amortization period (in years) | ||||||||||
Customer relationships | $ | 295,665 | $ | (78,429 | ) | $ | 217,236 | 4-15 | |||||
Patents and technology | 32,403 | (7,234 | ) | 25,169 | 5-17 | ||||||||
Non-compete agreements | 7,323 | (5,322 | ) | 2,001 | 3-6 | ||||||||
Trade names | 49,822 | (13,994 | ) | 35,828 | 10-15 | ||||||||
Distributor relationships | 22,160 | (11,914 | ) | 10,246 | 8-15 | ||||||||
Trademark | 5,230 | — | 5,230 | Indefinite | |||||||||
Intangible Assets Total | $ | 412,603 | $ | (116,893 | ) | $ | 295,710 |
December 31, 2013 | |||||||||||||
Gross carrying amount | Accumulated amortization | Net amortizable intangibles | Amortization period (in years) | ||||||||||
Customer relationships | $ | 283,171 | $ | (67,435 | ) | $ | 215,736 | 4-15 | |||||
Patents and technology | 33,843 | (6,510 | ) | 27,333 | 5-17 | ||||||||
Non-compete agreements | 6,577 | (5,108 | ) | 1,469 | 3-6 | ||||||||
Trade names | 46,654 | (11,948 | ) | 34,706 | 10-15 | ||||||||
Distributor relationships | 22,160 | (11,282 | ) | 10,878 | 8-15 | ||||||||
Trademark | 5,230 | — | 5,230 | Indefinite | |||||||||
Intangible Assets Total | $ | 397,635 | $ | (102,283 | ) | $ | 295,352 |
June 30, 2014 | December 31, 2013 | ||||||
6.25% Senior Notes due October 2021 | $ | 403,005 | $ | 403,208 | |||
Senior secured revolving credit line | 33,004 | 108,000 | |||||
Other debt | 1,555 | 1,867 | |||||
Total debt | 437,564 | 513,075 | |||||
Less: current maturities | (914 | ) | (998 | ) | |||
Long-term debt | $ | 436,650 | $ | 512,077 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenue: | |||||||||||||||
Drilling & Subsea | $ | 279,251 | $ | 209,198 | $ | 541,020 | $ | 431,137 | |||||||
Production & Infrastructure | 149,369 | 158,905 | 291,944 | 310,115 | |||||||||||
Intersegment eliminations | (341 | ) | (216 | ) | (747 | ) | (366 | ) | |||||||
Total Revenue | $ | 428,279 | $ | 367,887 | $ | 832,217 | $ | 740,886 | |||||||
Operating income: | |||||||||||||||
Drilling & Subsea | $ | 50,336 | $ | 32,906 | $ | 97,401 | $ | 68,062 | |||||||
Production & Infrastructure | 26,562 | 22,824 | 50,444 | 44,198 | |||||||||||
Corporate | (10,696 | ) | (6,901 | ) | (19,437 | ) | (14,074 | ) | |||||||
Total segment operating income | 66,202 | 48,829 | 128,408 | 98,186 | |||||||||||
Transaction expenses | 682 | 1,806 | 810 | 1,815 | |||||||||||
Loss (gain) on sale of assets and other | (284 | ) | (115 | ) | 405 | 20 | |||||||||
Income from operations | $ | 65,804 | $ | 47,138 | $ | 127,193 | $ | 96,351 |
June 30, 2014 | December 31, 2013 | |||||||
Assets | ||||||||
Drilling & Subsea | $ | 1,693,929 | $ | 1,655,355 | ||||
Production & Infrastructure | 482,245 | 468,520 | ||||||
Corporate | 59,170 | 44,994 | ||||||
Total assets | $ | 2,235,344 | $ | 2,168,869 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net Income attributable to common stockholders | $ | 39,522 | $ | 29,919 | $ | 76,052 | $ | 61,859 | |||||||
Average shares outstanding (basic) | 92,649 | 91,032 | 92,391 | 89,790 | |||||||||||
Common stock equivalents | 3,046 | 3,574 | 2,972 | 4,711 | |||||||||||
Diluted shares | 95,695 | 94,606 | 95,363 | 94,501 | |||||||||||
Earnings per share | |||||||||||||||
Basic earnings per share | $ | 0.43 | $ | 0.33 | $ | 0.82 | $ | 0.69 | |||||||
Diluted earnings per share | $ | 0.41 | $ | 0.32 | $ | 0.80 | $ | 0.65 |
Condensed consolidating statements of operations and comprehensive income | ||||||||||||||||||||
Three months ended June 30, 2014 | ||||||||||||||||||||
FET (Parent) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Net sales | $ | — | $ | 312,663 | $ | 154,761 | $ | (39,145 | ) | $ | 428,279 | |||||||||
Cost of sales | — | 221,119 | 108,861 | (39,694 | ) | 290,286 | ||||||||||||||
Gross profit | — | 91,544 | 45,900 | 549 | 137,993 | |||||||||||||||
Operating expenses | ||||||||||||||||||||
Selling, general and administrative expenses | — | 59,536 | 18,195 | — | 77,731 | |||||||||||||||
Other operating expense | — | 512 | (114 | ) | — | 398 | ||||||||||||||
Total operating expenses | — | 60,048 | 18,081 | — | 78,129 | |||||||||||||||
Earnings from equity investment | — | 5,940 | — | — | 5,940 | |||||||||||||||
Equity earnings from affiliate, net of tax | 44,571 | 19,805 | — | (64,376 | ) | — | ||||||||||||||
Operating income | 44,571 | 57,241 | 27,819 | (63,827 | ) | 65,804 | ||||||||||||||
Other expense (income) | ||||||||||||||||||||
Interest expense (income) | 7,768 | (7 | ) | (36 | ) | — | 7,725 | |||||||||||||
Interest income with affiliate | — | (1,933 | ) | — | 1,933 | — | ||||||||||||||
Interest expense with affiliate | — | — | 1,933 | (1,933 | ) | — | ||||||||||||||
Foreign exchange (gains) losses and other, net | — | 676 | 2,453 | — | 3,129 | |||||||||||||||
Total other expense (income) | 7,768 | (1,264 | ) | 4,350 | — | 10,854 | ||||||||||||||
Income before income taxes | 36,803 | 58,505 | 23,469 | (63,827 | ) | 54,950 | ||||||||||||||
Provision for income tax expense | (2,719 | ) | 13,934 | 4,192 | — | 15,407 | ||||||||||||||
Net income | 39,522 | 44,571 | 19,277 | (63,827 | ) | 39,543 | ||||||||||||||
Less: Income attributable to noncontrolling interest | — | — | 21 | — | 21 | |||||||||||||||
Net income attributable to common stockholders | 39,522 | 44,571 | 19,256 | (63,827 | ) | 39,522 | ||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||
Net income | 39,522 | 44,571 | 19,277 | (63,827 | ) | 39,543 | ||||||||||||||
Change in foreign currency translation, net of tax of $0 | 11,690 | 11,690 | 11,690 | (23,380 | ) | 11,690 | ||||||||||||||
Comprehensive income | 51,212 | 56,261 | 30,967 | (87,207 | ) | 51,233 | ||||||||||||||
Less: comprehensive (income) loss attributable to noncontrolling interests | — | — | (15 | ) | — | (15 | ) | |||||||||||||
Comprehensive income attributable to common stockholders | $ | 51,212 | $ | 56,261 | $ | 30,952 | $ | (87,207 | ) | $ | 51,218 |
Condensed consolidating statements of operations and comprehensive income | ||||||||||||||||||||
Three months ended June 30, 2013 | ||||||||||||||||||||
FET (Parent) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Net sales | $ | — | $ | 284,334 | $ | 109,960 | $ | (26,407 | ) | $ | 367,887 | |||||||||
Cost of sales | — | 199,759 | 80,575 | (26,930 | ) | 253,404 | ||||||||||||||
Gross profit | — | 84,575 | 29,385 | 523 | 114,483 | |||||||||||||||
Operating expenses | ||||||||||||||||||||
Selling, general and administrative expenses | — | 52,616 | 13,038 | — | 65,654 | |||||||||||||||
Other operating expense | — | 1,665 | 26 | — | 1,691 | |||||||||||||||
Total operating expenses | — | 54,281 | 13,064 | — | 67,345 | |||||||||||||||
Equity earnings from affiliates, net of tax | 31,950 | 13,389 | — | (45,339 | ) | — | ||||||||||||||
Operating income | 31,950 | 43,683 | 16,321 | (44,816 | ) | 47,138 | ||||||||||||||
Other expense (income) | ||||||||||||||||||||
Interest expense (income) | 3,124 | — | (13 | ) | — | 3,111 | ||||||||||||||
Foreign exchange (gains) losses and other, net | — | 15 | 1,004 | — | 1,019 | |||||||||||||||
Total other expense (income) | 3,124 | 15 | 991 | — | 4,130 | |||||||||||||||
Income before income taxes | 28,826 | 43,668 | 15,330 | (44,816 | ) | 43,008 | ||||||||||||||
Provision for income tax expense | (1,093 | ) | 11,718 | 2,443 | — | 13,068 | ||||||||||||||
Net income | 29,919 | 31,950 | 12,887 | (44,816 | ) | 29,940 | ||||||||||||||
Less: Income attributable to noncontrolling interest | — | — | 21 | — | 21 | |||||||||||||||
Net income attributable to common stockholders | 29,919 | 31,950 | 12,866 | (44,816 | ) | 29,919 | ||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||
Net income | 29,919 | 31,950 | 12,887 | (44,816 | ) | 29,940 | ||||||||||||||
Change in foreign currency translation, net of tax of $0 | (2,154 | ) | (2,154 | ) | (2,154 | ) | 4,308 | (2,154 | ) | |||||||||||
Comprehensive income | 27,765 | 29,796 | 10,733 | (40,508 | ) | 27,786 | ||||||||||||||
Less: comprehensive (income) loss attributable to noncontrolling interests | — | — | 20 | — | 20 | |||||||||||||||
Comprehensive income attributable to common stockholders | $ | 27,765 | $ | 29,796 | $ | 10,753 | $ | (40,508 | ) | $ | 27,806 |
Condensed consolidating statements of operations and comprehensive income | ||||||||||||||||||||
Six months ended June 30, 2014 | ||||||||||||||||||||
FET (Parent) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Net sales | $ | — | $ | 610,695 | $ | 300,591 | $ | (79,069 | ) | $ | 832,217 | |||||||||
Cost of sales | — | 428,088 | 214,846 | (76,648 | ) | 566,286 | ||||||||||||||
Gross profit | — | 182,607 | 85,745 | (2,421 | ) | 265,931 | ||||||||||||||
Operating expenses | ||||||||||||||||||||
Selling, general and administrative expenses | — | 113,103 | 35,668 | — | 148,771 | |||||||||||||||
Other operating expense | — | 1,546 | (331 | ) | — | 1,215 | ||||||||||||||
Total operating expenses | — | 114,649 | 35,337 | — | 149,986 | |||||||||||||||
Earnings from equity investment | — | 11,248 | — | — | 11,248 | |||||||||||||||
Equity earnings from affiliate, net of tax | 86,139 | 31,640 | — | (117,779 | ) | — | ||||||||||||||
Operating income | 86,139 | 110,846 | 50,408 | (120,200 | ) | 127,193 | ||||||||||||||
Other expense (income) | ||||||||||||||||||||
Interest expense (income) | 15,518 | 16 | (59 | ) | — | 15,475 | ||||||||||||||
Interest income with affiliate | — | (3,883 | ) | — | 3,883 | — | ||||||||||||||
Interest expense with affiliate | — | — | 3,883 | (3,883 | ) | — | ||||||||||||||
Foreign exchange (gains) losses and other, net | — | 1,018 | 3,588 | — | 4,606 | |||||||||||||||
Total other expense (income) | 15,518 | (2,849 | ) | 7,412 | — | 20,081 | ||||||||||||||
Income before income taxes | 70,621 | 113,695 | 42,996 | (120,200 | ) | 107,112 | ||||||||||||||
Provision for income tax expense | (5,431 | ) | 27,556 | 8,938 | — | 31,063 | ||||||||||||||
Net income | 76,052 | 86,139 | 34,058 | (120,200 | ) | 76,049 | ||||||||||||||
Less: Income attributable to noncontrolling interest | — | — | (3 | ) | — | (3 | ) | |||||||||||||
Net income attributable to common stockholders | 76,052 | 86,139 | 34,061 | (120,200 | ) | 76,052 | ||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||
Net income | 76,052 | 86,139 | 34,058 | (120,200 | ) | 76,049 | ||||||||||||||
Change in foreign currency translation, net of tax of $0 | 12,720 | 12,720 | 12,720 | (25,440 | ) | 12,720 | ||||||||||||||
Change in pension liability | 2 | 2 | 2 | (4 | ) | 2 | ||||||||||||||
Comprehensive income | 88,774 | 98,861 | 46,780 | (145,644 | ) | 88,771 | ||||||||||||||
Less: comprehensive (income) loss attributable to noncontrolling interests | — | — | 12 | — | 12 | |||||||||||||||
Comprehensive income attributable to common stockholders | $ | 88,774 | $ | 98,861 | $ | 46,792 | $ | (145,644 | ) | $ | 88,783 |
Condensed consolidating statements of operations and comprehensive income | ||||||||||||||||||||
Six months ended June 30, 2013 | ||||||||||||||||||||
FET (Parent) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Net sales | $ | — | $ | 565,009 | $ | 226,432 | $ | (50,555 | ) | $ | 740,886 | |||||||||
Cost of sales | — | 395,149 | 166,072 | (49,624 | ) | 511,597 | ||||||||||||||
Gross profit | — | 169,860 | 60,360 | (931 | ) | 229,289 | ||||||||||||||
Operating expenses | ||||||||||||||||||||
Selling, general and administrative expenses | — | 104,999 | 26,104 | — | 131,103 | |||||||||||||||
Other operating expense | — | 1,854 | (19 | ) | — | 1,835 | ||||||||||||||
Total operating expenses | — | 106,853 | 26,085 | — | 132,938 | |||||||||||||||
Equity earnings from affiliates, net of tax | 65,998 | 26,383 | — | (92,381 | ) | — | ||||||||||||||
Operating income | 65,998 | 89,390 | 34,275 | (93,312 | ) | 96,351 | ||||||||||||||
Other expense (income) | ||||||||||||||||||||
Interest expense | 6,367 | 71 | 36 | — | 6,474 | |||||||||||||||
Foreign exchange (gains) losses and other, net | — | (523 | ) | 75 | — | (448 | ) | |||||||||||||
Total other expense (income) | 6,367 | (452 | ) | 111 | — | 6,026 | ||||||||||||||
Income before income taxes | 59,631 | 89,842 | 34,164 | (93,312 | ) | 90,325 | ||||||||||||||
Provision for income tax expense | (2,228 | ) | 23,844 | 6,831 | — | 28,447 | ||||||||||||||
Net income | 61,859 | 65,998 | 27,333 | (93,312 | ) | 61,878 | ||||||||||||||
Less: Income attributable to noncontrolling interest | — | — | 19 | — | 19 | |||||||||||||||
Net income attributable to common stockholders | 61,859 | 65,998 | 27,314 | (93,312 | ) | 61,859 | ||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||
Net income | 61,859 | 65,998 | 27,333 | (93,312 | ) | 61,878 | ||||||||||||||
Change in foreign currency translation, net of tax of $0 | (24,903 | ) | (24,903 | ) | (24,903 | ) | 49,806 | (24,903 | ) | |||||||||||
Comprehensive income | 36,956 | 41,095 | 2,430 | (43,506 | ) | 36,975 | ||||||||||||||
Less: comprehensive (income) loss attributable to noncontrolling interests | — | — | 82 | — | 82 | |||||||||||||||
Comprehensive income attributable to common stockholders | $ | 36,956 | $ | 41,095 | $ | 2,512 | $ | (43,506 | ) | $ | 37,057 |
Condensed consolidating balance sheets | ||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||
FET (Parent) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 10,490 | $ | 22,152 | $ | — | $ | 32,642 | ||||||||||
Accounts receivable—trade, net | — | 181,657 | 94,947 | — | 276,604 | |||||||||||||||
Inventories | — | 326,626 | 138,865 | (7,487 | ) | 458,004 | ||||||||||||||
Other current assets | 77 | 42,875 | 39,750 | — | 82,702 | |||||||||||||||
Total current assets | 77 | 561,648 | 295,714 | (7,487 | ) | 849,952 | ||||||||||||||
Property and equipment, net of accumulated depreciation | — | 146,245 | 41,835 | — | 188,080 | |||||||||||||||
Intangibles | — | 209,120 | 86,590 | — | 295,710 | |||||||||||||||
Goodwill | — | 522,898 | 301,502 | — | 824,400 | |||||||||||||||
Investment in unconsolidated subsidiary | — | 58,121 | — | — | 58,121 | |||||||||||||||
Investment in affiliates | 1,283,587 | 498,394 | — | (1,781,981 | ) | — | ||||||||||||||
Long-term loans and advances to affiliates | 577,549 | 97,316 | — | (674,865 | ) | — | ||||||||||||||
Other long-term assets | 14,385 | 3,789 | 907 | — | 19,081 | |||||||||||||||
Total assets | $ | 1,875,598 | $ | 2,097,531 | $ | 726,548 | $ | (2,464,333 | ) | $ | 2,235,344 | |||||||||
Liabilities and equity | ||||||||||||||||||||
Current liabilities | ||||||||||||||||||||
Accounts payable—trade | $ | — | $ | 91,889 | $ | 37,750 | $ | — | $ | 129,639 | ||||||||||
Accrued liabilities | — | 54,890 | 27,554 | — | 82,444 | |||||||||||||||
Current portion of debt and other current liabilities | — | 7,599 | 20,807 | — | 28,406 | |||||||||||||||
Total current liabilities | — | 154,378 | 86,111 | — | 240,489 | |||||||||||||||
Long-term debt, net of current portion | 436,005 | 606 | 39 | — | 436,650 | |||||||||||||||
Long-term loans and payables to affiliates | — | 575,381 | 99,484 | (674,865 | ) | — | ||||||||||||||
Other long-term liabilities | — | 83,579 | 34,434 | — | 118,013 | |||||||||||||||
Total liabilities | 436,005 | 813,944 | 220,068 | (674,865 | ) | 795,152 | ||||||||||||||
Total stockholder's equity | 1,439,593 | 1,283,587 | 505,881 | (1,789,468 | ) | 1,439,593 | ||||||||||||||
Noncontrolling interest in subsidiary | — | — | 599 | — | 599 | |||||||||||||||
Equity | 1,439,593 | 1,283,587 | 506,480 | (1,789,468 | ) | 1,440,192 | ||||||||||||||
Total liabilities and equity | $ | 1,875,598 | $ | 2,097,531 | $ | 726,548 | $ | (2,464,333 | ) | $ | 2,235,344 |
Condensed consolidating balance sheets | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
FET (Parent) | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Current assets | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 39,582 | $ | — | $ | 39,582 | ||||||||||
Accounts receivable—trade, net | — | 172,563 | 77,709 | — | 250,272 | |||||||||||||||
Inventories | — | 310,191 | 135,924 | (5,066 | ) | 441,049 | ||||||||||||||
Other current assets | 63 | 41,495 | 37,007 | — | 78,565 | |||||||||||||||
Total current assets | 63 | 524,249 | 290,222 | (5,066 | ) | 809,468 | ||||||||||||||
Property and equipment, net of accumulated depreciation | — | 143,180 | 37,112 | — | 180,292 | |||||||||||||||
Intangibles | — | 220,980 |