Delaware |
43-1455766 |
(State
or other jurisdiction of |
(I.R.S.
employer |
incorporation
or organization |
identification
number) |
16401
Swingley Ridge Road, Seventh Floor |
|
Chesterfield,
Missouri |
63017 |
(Address
of principal executive offices) |
(Zip
code) |
Title
of Each Class |
Name
of Each Exchange on Which Registered | |
Common
Stock, Par Value $0.01 Per Share |
New
York Stock Exchange | |
Preferred
Stock Purchase Rights |
New
York Stock Exchange |
· |
generate
profitable organic and strategic growth, |
· |
expand
geographic reach and portfolio of value-added oil service
products, |
· |
achieve
the best safety record in the oil service industry,
and |
· |
generate
superior returns on capital employed in all business
units. |
· |
Maverick
Tube, L.P., our primary U.S. producer of energy and industrial products
other than steel electrical conduit, |
· |
Prudential
Steel Ltd., our Canadian producer of energy and industrial products,
acquired in 2000, |
· |
Precision
Tube Technology L.P. and SeaCAT L.P., our coiled tubing producers,
acquired in 2002 and 2003, respectively, |
· |
Texas
Arai, a division of Maverick Tube, L.P., and our producer of API and
premium couplings, acquired in 2004; and |
· |
Republic
Conduit, a division of Maverick C&P, Inc., our primary producer of
steel electrical conduit, acquired in 2002. |
Location |
Segment
and Products |
Product
Sizes (1) |
Acreage |
Building
Square Footage | ||||
Maverick
Tube, L.P. |
||||||||
Hickman,
AR |
Energy:
OCTG and line pipe
Industrial:
HSS, standard pipe and piling products |
1½”-16” |
225 |
920,000 | ||||
Conroe,
TX |
Energy:
OCTG and line pipe |
4½”-8⅝” |
117 |
244,000 | ||||
Counce,
TN |
Energy:
OCTG and line pipe
Industrial:
Rigid conduit and standard pipe |
4½”-8” |
133 |
64,000 | ||||
Prudential
Steel Ltd. |
||||||||
Calgary,
AB |
Energy:
OCTG and line pipe
Industrial:
HSS |
2⅜”-12¾” |
93 |
415,300 | ||||
Precision
Tube Technology L.P. and SeaCAT L.P. |
||||||||
Houston,
TX |
Energy:
Coiled steel tubing and coiled umbilicals |
¾”-5”
½”
-2” |
61
15 |
68,100
79,300 |
Location |
Segment
and Products |
Product
Sizes (1) |
Acreage |
Building
Square Footage | ||||
Texas
Arai |
||||||||
Houston,
TX |
Energy:
API and premium couplings |
2⅜”-20” |
22 |
244,137 | ||||
Republic
Conduit |
||||||||
Cedar
Springs, GA |
Industrial:
Steel electrical conduit |
½”-2½” |
85 |
130,000 | ||||
Ferndale,
MI |
Industrial:
Steel electrical conduit and mechanical tubing |
½”-4” |
20 |
212,000 | ||||
Elyria,
OH |
Industrial:
Steel electrical conduit, rigid conduit, and mechanical
tubing |
¾”-3½” |
57 |
180,000 |
(1) |
Represents
outside diameter measurement. |
· |
OCTG, |
· |
line
pipe, |
· |
coiled
tubing, and |
· |
couplings. |
· |
close
to steel sources and on the inland waterway, which should result in lower
inbound freight costs, |
· |
centrally
located, which should reduce outbound freight costs,
and |
· |
in
an area of the country with cost-effective
labor. |
· |
general
economic conditions, |
· |
industry
capacity utilization, |
· |
import
duties, and |
· |
other
trade restrictions and currency exchange
rates. |
· |
the
possibility management may be distracted from regular business concerns by
the need to integrate operations, |
· |
unforeseen
difficulties in integrating operations and
systems, |
· |
problems
relating to assimilating and retaining the employees of the acquired
business, |
· |
accounting
issues that arise in connection with the
acquisition, |
· |
challenges
in retaining customers, and |
· |
potential
adverse short-term effects on operating
results. |
· |
loss
of life, |
· |
personal
injury, |
· |
property
damage, |
· |
damage
to equipment and facilities, |
· |
pollution,
and |
· |
loss
of production or suspension of operations. |
· |
a
greater percentage of our cash flow would be required to be used to
service our indebtedness, |
· |
we
may not be able to generate sufficient cash flow from operations to enable
us to meet our debt service and other fixed-charge
requirements, |
· |
we
may not be able to obtain additional financing for working capital,
capital expenditures, acquisitions or general corporate and other
purposes, |
· |
our
flexibility in planning for, or reacting to changes in, our businesses and
the industries in which we compete may be limited,
and |
· |
we
may be put at a possible competitive disadvantage with respect to our
competitors that have relatively less
indebtedness. |
· |
the
creation or incurrence of additional
indebtedness, |
· |
the
creation or incurrence of liens, |
· |
investments, |
· |
mergers,
acquisitions or changes of existence, ownership or business
operations, |
· |
the
sale or other disposition of assets other than inventory in the ordinary
course of business, |
· |
the
declaration or payment of dividends or the purchase, redemption,
retirement or other acquisition of capital
stock, |
· |
transactions
with affiliates, |
· |
capital
expenditures in excess of $30 million in any calendar year,
and |
· |
granting
of any negative pledge in any agreement, contract or understanding with a
third party. |
2004 |
2003 | ||||||||||||
Quarter |
High |
Low |
High |
Low |
|||||||||
First |
$ |
23.97 |
$ |
17.00 |
$ |
18.71 |
$ |
12.17 |
|||||
Second |
$ |
27.65 |
$ |
20.11 |
$ |
21.53 |
$ |
16.88 |
|||||
Third |
$ |
31.82 |
$ |
26.08 |
$ |
19.36 |
$ |
14.29 |
|||||
Fourth |
$ |
31.75 |
$ |
25.75 |
$ |
20.99 |
$ |
15.76 |
2004 |
2003 | ||||||||||||
Quarter |
High |
Low |
High |
Low |
|||||||||
First |
C$32.03 |
C$22.00 |
C$27.61 |
C$19.25 |
|||||||||
Second |
C$36.75 |
C$28.00 |
C$28.96 |
C$24.28 |
|||||||||
Third |
C$41.36 |
C$34.36 |
C$25.12 |
C$19.60 |
|||||||||
Fourth |
C$40.00 |
C$32.11 |
C$28.30 |
C$20.50 |
(in
thousands, except per share data) |
Year
Ended December 31, | |||||||||||||||
2004 |
2003 |
2002 |
2001 |
2000 |
||||||||||||
Statement
of Income Data: |
||||||||||||||||
Net
sales |
$ |
1,456,264 |
$ |
884,317 |
$ |
452,913 |
$ |
544,933 |
$ |
562,023 |
||||||
Cost
of goods sold |
1,047,777 |
783,353 |
409,916 |
441,843 |
488,397 |
|||||||||||
Gross
profit |
408,487 |
100,964 |
42,997 |
103,090 |
73,626 |
|||||||||||
Selling,
general and administrative |
88,058 |
56,142 |
34,032 |
30,372 |
25,466 |
|||||||||||
Restructuring
charges (1) |
- |
584 |
1,186 |
8,061 |
- |
|||||||||||
Trade
case relief |
(3,633 |
) |
(1,104 |
) |
(2,709 |
) |
- |
- |
||||||||
Start-up
costs (2) |
- |
- |
- |
1,101 |
267 |
|||||||||||
Income
from operations |
324,062 |
45,342 |
10,488 |
63,556 |
47,893 |
|||||||||||
Transaction
costs (3) |
- |
- |
- |
- |
11,253 |
|||||||||||
Interest
expense |
10,374 |
9,637 |
4,325 |
3,090 |
3,177 |
|||||||||||
Income
from continuing operations before income taxes and cumulative effect of
accounting change |
313,688 |
35,705 |
6,163 |
60,466 |
33,463 |
|||||||||||
Provision
for income taxes |
118,308 |
12,748 |
3,277 |
21,228 |
14,736 |
|||||||||||
Income
from continuing operations before cumulative effect of accounting
change |
195,380 |
22,957 |
2,886 |
39,238 |
18,727 |
|||||||||||
Loss
from operations of discontinued DOM facility, less applicable income tax
benefit (4) |
- |
- |
- |
(957 |
) |
(2,162 |
) | |||||||||
Gain
(loss) on disposal of DOM facility (4) |
- |
- |
518 |
(10,240 |
) |
- |
||||||||||
Income
before cumulative effect of accounting change |
195,380 |
22,957 |
3,404 |
28,041 |
16,565 |
|||||||||||
Cumulative
effect of accounting change |
(1,584 |
) |
- |
- |
- |
- |
||||||||||
Net
income |
$ |
193,796 |
$ |
22,957 |
$ |
3,404 |
$ |
28,041 |
$ |
16,565 |
||||||
Diluted
earnings per share from continuing operations |
$ |
4.57 |
$ |
0.55 |
$ |
0.08 |
$ |
1.15 |
$ |
0.54 |
||||||
Diluted
earnings per share |
$ |
4.54 |
$ |
0.55 |
$ |
0.09 |
$ |
0.82 |
$ |
0.48 |
||||||
Average
shares deemed outstanding (5) |
42,751 |
42,196 |
38,492 |
34,117 |
34,525 |
|||||||||||
Other
Data: |
||||||||||||||||
Depreciation
and amortization |
$ |
27,698 |
$ |
22,411 |
$ |
19,954 |
$ |
14,841 |
$ |
12,602 |
||||||
Capital
expenditures |
34,820 |
20,902 |
22,809 |
25,784 |
51,780 |
|||||||||||
Balance
Sheet Data: |
||||||||||||||||
(End
of period) |
||||||||||||||||
Working
capital |
$ |
471,083 |
$ |
253,663 |
$ |
201,195 |
$ |
142,316 |
$ |
118,828 |
||||||
Total
assets |
1,002,437 |
670,726 |
595,883 |
357,447 |
390,818 |
|||||||||||
Current
maturities of long-term debt |
3,298 |
3,533 |
2,977 |
938 |
866 |
|||||||||||
Short-term
revolving credit facility |
- |
- |
- |
3,219 |
20,766 |
|||||||||||
Long-term
revolving credit facility |
54,660 |
50,213 |
132,927 |
62,000 |
62,038 |
|||||||||||
Other
long-term debt (less current maturities) |
122,981 |
124,209 |
2,742 |
5,991 |
6,929 |
|||||||||||
Stockholders’
equity |
595,664 |
384,798 |
338,286 |
225,383 |
213,256 |
(1) |
The
Company recorded a restructuring charge for the write-down of property and
equipment and accrual of other cash obligations of $584, $1,186 and $8,061
for the years ended December 31, 2003, 2002, and 2001, respectively,
resulting from the closing of the Longview facility and the relocation of
most of that facility’s production equipment to Hickman, Arkansas.
|
(2) |
Represents
the operating loss of the Company’s large diameter pipe and tubing
facility, which began operations in October 2000, and the Longview
facility, which began operations in December
1998. |
(3) |
In
connection with the Prudential combination, the Company recorded
transaction costs of $11,253 for the year ended December 31, 2000.
Transaction costs include investment banking, legal, accounting, printing,
severance pay, and other costs directly related to the
combination. |
(4) |
The
Company decided to discontinue its DOM business during
2001. |
(5) |
The
Company adopted EITF 04-8 during 2004 and has included the diluted effect
of the convertible notes and the new notes in diluted earnings per share
for all periods presented. |
· |
Our
Business —
a general description of the key drivers that affect our business and the
industries in which we operate. |
· |
Our
Business Strategy — a
description of the strategic initiatives on which we focus and the goals
we seek to achieve. |
· |
Results
of Operations —
an analysis of our Company’s results of operations for the three years
presented in our financial statements. |
· |
Liquidity
and Capital Resources —
an analysis of cash flows, sources and uses of cash, off-balance sheet
arrangements and contractual obligations, the potential impact of currency
exchange, and an overview of financial position.
|
· |
Critical
Accounting Estimates —
a description of accounting estimates that require critical judgments and
estimates. |
Year
Ended December 31, | ||||||||||
2004 |
2003 |
2002 |
||||||||
U.S.
Market Activity: |
||||||||||
Average
rig count |
1,190 |
1,031 |
831 |
|||||||
Average
U.S. energy prices: |
||||||||||
Oil
per barrel (West Texas |
||||||||||
Intermediate) |
$ |
41.42 |
$ |
31.26 |
$ |
26.18 |
||||
Natural
gas per MCF |
$ |
5.67 |
$ |
5.50 |
$ |
3.29 |
||||
U.S.
OCTG Consumption: |
||||||||||
(in
thousands of tons) |
||||||||||
U.S.
producer shipments |
2,090 |
1,871 |
1,465 |
|||||||
Imports |
1,105 |
758 |
490 |
|||||||
Inventory
(increase)/decrease |
(122 |
) |
(1 |
) |
209 |
|||||
Used
pipe |
55 |
62 |
93 |
|||||||
Total U.S. consumption |
3,128 |
2,690 |
2,257 |
|||||||
Canadian
Market Activity: |
||||||||||
Average
rig count |
369 |
372 |
262 |
|||||||
Average
Canadian energy prices: |
||||||||||
Natural
gas per U.S. $ per MCF |
$ |
5.20 |
$ |
4.92 |
$ |
2.68 |
||||
Canadian
OCTG Consumption: |
||||||||||
(in
thousands of tons) |
||||||||||
Canadian
producer shipments |
567 |
539 |
405 |
|||||||
Imports |
379 |
403 |
195 |
|||||||
Inventory
(increase)/decrease |
(93 |
) |
(116 |
) |
2 |
|||||
Total Canadian consumption |
853 |
826 |
602 |
2004
vs. 2003 | |||||||||||||
2004 |
2003 |
Change |
%
Change |
||||||||||
Energy
tons shipped |
861,484 |
882,109 |
(20,625 |
) |
(2.3 |
%) | |||||||
Industrial
tons shipped |
392,423 |
399,535 |
(7,112 |
) |
(1.8 |
%) | |||||||
Total
tons shipped |
1,253,907 |
1,281,644 |
(27,737 |
) |
(2.2 |
%) | |||||||
Net
sales |
$ |
1,456.3 |
$ |
884.3 |
$ |
572.0 |
64.7 |
% | |||||
Cost
of goods sold |
1,047.8 |
783.3 |
264.5 |
33.8 |
% | ||||||||
Gross
profit |
408.5 |
101.0 |
307.5 |
304.5 |
% | ||||||||
Income
from operations |
324.1 |
45.3 |
278.8 |
615.5 |
% | ||||||||
Income
from continuing operations before income taxes and cumulative effect of
accounting change |
313.7 |
35.7 |
278.0 |
778.7 |
% | ||||||||
Income
before cumulative effect of accounting change |
195.4 |
23.0 |
172.4 |
749.6 |
% | ||||||||
Net
income |
193.8 |
23.0 |
170.8 |
742.6 |
% | ||||||||
Diluted
earnings per share before cumulative effect of accounting
change |
4.57 |
0.55 |
4.02 |
730.9 |
% | ||||||||
Diluted
earnings per share |
4.54 |
0.55 |
3.99 |
725.5 |
% | ||||||||
|
2003
vs. 2002 | ||||||||||||
2003 |
2002 |
Change |
%
Change |
||||||||||
Energy
tons shipped |
882,109 |
575,994 |
306,115 |
53.1 |
% | ||||||||
Industrial
tons shipped |
399,535 |
164,858 |
234,677 |
142.4 |
% | ||||||||
Total
tons shipped |
1,281,644 |
740,852 |
540,792 |
73.0 |
% | ||||||||
Net
sales |
$ |
884.3 |
$ |
452.9 |
$ |
431.4 |
95.3 |
% | |||||
Cost
of goods sold |
783.3 |
409.9 |
373.4 |
91.1 |
% | ||||||||
Gross
profit |
101.0 |
43.0 |
58.0 |
134.9 |
% | ||||||||
Income
from operations |
45.3 |
10.5 |
34.8 |
331.4 |
% | ||||||||
Income
from continuing operations before income taxes |
35.7 |
6.2 |
29.5 |
475.8 |
% | ||||||||
Income
from continuing operations |
23.0 |
2.9 |
20.1 |
693.1 |
% | ||||||||
Net
income |
23.0 |
3.4 |
19.6 |
576.5 |
% | ||||||||
Diluted
earnings per share from continuing operations |
0.55 |
0.08 |
0.47 |
587.5 |
% | ||||||||
Diluted
earnings per share |
0.55 |
0.09 |
0.46 |
511.1 |
% |
2004 |
2003 |
2002 |
||||||||
Net
cash provided by continuing operating activities |
$ |
47,060 |
$ |
26,892 |
$ |
31,723 |
||||
Net
cash used by investing activities |
$ |
(71,073 |
) |
$ |
(24,838 |
) |
$ |
(199,800 |
) | |
Net
cash provided by financing activities |
$ |
7,270 |
$ |
23,520 |
$ |
168,295 |
Payments
Due by Period | ||||||||||||||||
Less
Than |
1-3 |
3-5 |
More
than |
|||||||||||||
Contractual
Obligations |
Total |
1
Year |
Years |
Years |
5
Years |
|||||||||||
Total
debt (1) |
$ |
178,868 |
$ |
57,759 |
$ |
1,109 |
$ |
-- |
$ |
120,000 |
||||||
Estimated
interest payments (2) |
136,994 |
4,915 |
9,679 |
9,600 |
112,800 |
|||||||||||
Operating
leases (3) |
17,767 |
5,278 |
8,117 |
3,657 |
715 |
|||||||||||
Purchase
obligations (4) |
24,748 |
24,748 |
-- |
-- |
-- |
|||||||||||
Other
liabilities (5) |
5,061 |
5,061 |
-- |
-- |
-- |
|||||||||||
Total
contractual cash obligations |
$ |
363,438 |
$ |
97,761 |
$ |
18,905 |
$ |
13,257 |
$ |
233,515 |
(1) |
Amounts
represent the expected cash payment for our total debt and do not include
deferred issuance costs and the fair market valuation of our current
interest rate swap agreement. |
(2) |
Amounts
represent the expected cash payment for interest on our fixed rate
long-term debt. |
(3) |
We
entered into operating leases in the normal course of business. Some lease
agreements provide us with the option to renew the lease. Our future
operating lease payments would change if we exercised these renewal
options and if we entered into additional operating lease
agreements. |
(4) |
Purchase
obligations include agreements to purchase goods or services that are
enforceable and legally binding and that specify all significant terms,
including fixed or minimum quantities to be purchased, fixed, minimum or
variable price provisions, and the approximate timing of the transactions.
Purchase obligations exclude agreements that are cancelable at any time
without penalty. |
(5) |
Amounts
represent other liabilities, where both the timing and amount of payments
streams are known. Amounts do not include payments for pension payments
for various postretirement benefit plans and payments for deferred taxes
and other tax liabilities, as such amounts have not been determined beyond
2005 but include expected employer contributions for the year ended
December 31, 2005. Pension assumptions are as follows: 6.0% discount, 7.0%
expected return on plan assets, and a 4.5% rate of compensation
increase. |
/s/
C. Robert Bunch |
||
C.
Robert Bunch |
||
Chairman
of the Board and
Chief
Executive Officer |
/s/
Pamela G. Boone |
||
Pamela
G. Boone |
||
Principal
Financial Officer |
December
31, | |||||||
ASSETS |
2004 |
2003 |
|||||
Current
assets: |
|||||||
Cash
and cash equivalents |
$ |
14,721 |
$ |
29,202 |
|||
Short-term
investments |
19,965 |
- |
|||||
Accounts
receivable, less allowances of $6,641 and $5,414 in 2004 and 2003,
respectively |
160,240
|
117,115
|
|||||
Inventories
|
447,080 |
184,025 |
|||||
Deferred
income taxes |
9,488 |
5,534 |
|||||
Income
taxes refundable |
- |
590 |
|||||
Prepaid
expenses and other current assets |
8,404 |
6,267 |
|||||
Total
current assets |
659,898 |
342,733 |
|||||
Property,
plant and equipment, net of accumulated depreciation |
211,534
|
189,434
|
|||||
Goodwill |
85,984 |
82,982 |
|||||
Other
acquired intangibles, net of accumulated amortization |
34,522 |
35,304 |
|||||
Notes
receivable |
- |
9,500 |
|||||
Other
assets |
10,499
|
10,773
|
|||||
$ |
1,002,437 |
$ |
670,726 |
||||
LIABILITIES
AND STOCKHOLDERS' EQUITY |
|||||||
Current
liabilities: |
|||||||
Accounts
payable |
$ |
98,957 |
$ |
47,557 |
|||
Accrued
expenses and other liabilities |
42,809 |
34,391 |
|||||
Deferred
revenue |
14,387 |
3,386 |
|||||
Income
taxes payable |
29,364 |
203 |
|||||
Current
maturities of long-term debt |
3,298
|
3,533
|
|||||
Total
current liabilities |
188,815 |
89,070 |
|||||
Long-term
debt, less current maturities |
2,981
|
4,209
|
|||||
Convertible
senior subordinated notes |
120,000 |
120,000 |
|||||
Revolving
credit facility |
54,660
|
50,213
|
|||||
Other
liabilities |
21,387 |
16,436 |
|||||
Deferred
income taxes |
18,930
|
6,000
|
|||||
STOCKHOLDERS'
EQUITY |
|||||||
Preferred
stock, $0.01 par value; 5,000,000 authorized shares; |
|||||||
1
share issued and outstanding |
-
|
-
|
|||||
Common
stock, $0.01 par value; 80,000,000 authorized shares;
42,645,309 |
|||||||
and
42,001,662 shares issued and outstanding in 2004 and 2003,
respectively |
426 |
420 |
|||||
Additional
paid-in capital |
238,895 |
227,048 |
|||||
Unamortized
value of restricted stock |
(1,416 |
) |
- |
||||
Treasury
stock, 12,864 shares |
(222 |
) |
- |
||||
Retained
earnings |
355,988
|
162,192
|
|||||
Accumulated
other comprehensive income (loss) |
1,993 |
(4,862 |
) | ||||
595,664
|
384,798
|
||||||
See
accompanying notes. |
$ |
1,002,437 |
$ |
670,726 |
Year
Ended December 31, | ||||||||||
2004 |
2003 |
2002 |
||||||||
Net
sales |
$ |
1,456,264 |
$ |
884,317 |
$ |
452,913 |
||||
Cost
of goods sold |
1,047,777 |
783,353 |
409,916 |
|||||||
Gross
profit |
408,487 |
100,964 |
42,997
|
|||||||
Selling,
general and administrative |
88,058
|
56,142
|
34,032
|
|||||||
Restructuring
charges |
- |
584 |
1,186
|
|||||||
Trade
case relief |
(3,633 |
) |
(1,104 |
) |
(2,709 |
) | ||||
Income
from operations |
324,062
|
45,342
|
10,488
|
|||||||
Interest
expense |
10,374
|
9,637
|
4,325
|
|||||||
Income
from continuing operations before income taxes and cumulative effect of
accounting change |
313,688
|
35,705
|
6,163
|
|||||||
Provision
for income taxes |
118,308
|
12,748
|
3,277
|
|||||||
Income
from continuing operations before cumulative effect of accounting
change |
195,380 |
22,957 |
2,886 |
|||||||
Gain
on disposal of DOM facility (net of income tax provision of
$250) |
- |
- |
518 |
|||||||
Income
before cumulative effect of accounting change |
195,380 |
22,957 |
3,404 |
|||||||
Cumulative
effect of accounting change (net of income tax benefit of
$951) |
(1,584 |
) |
- |
- |
||||||
Net
income |
$ |
193,796 |
$ |
22,957 |
$ |
3,404 |
||||
Basic
earnings (loss) per share |
||||||||||
Income
from continuing operations |
$ |
4.61 |
$ |
0.55 |
$ |
0.08 |
||||
Income
from discontinued operations |
-
|
-
|
0.01
|
|||||||
Loss
from cumulative effect of accounting change |
(0.04 |
) |
- |
- |
||||||
Net
income |
$ |
4.58 |
$ |
0.55 |
$ |
0.09 |
||||
Diluted
earnings (loss) per share |
||||||||||
Income
from continuing operations |
$ |
4.57 |
$ |
0.55 |
$ |
0.08 |
||||
Income
from discontinued operations |
- |
- |
0.01
|
|||||||
Loss
from cumulative effect of accounting change |
(0.04 |
) |
- |
- |
||||||
Net
income |
$ |
4.54 |
$ |
0.55 |
$ |
0.09 |
||||
Pro
forma income and earnings per share assuming accounting change described
in Note 3 is applied retroactively: |
||||||||||
Income
before cumulative effect of accounting change |
$ |
195,292 |
$ |
20,899 |
$ |
2,209 |
||||
Basic
earnings per share before cumulative effect of accounting
change |
$ |
4.61 |
$ |
0.50 |
$ |
0.06 |
||||
Diluted
earnings per share before cumulative effect of accounting
change |
$ |
4.57 |
$ |
0.50 |
$ |
0.06 |
||||
See
accompanying notes. |
|
Unamortized |
Accumulated |
|||||||||||||||||||||||
|
Additional |
Value
of |
Other |
||||||||||||||||||||||
|
Common
Stock |
Paid-In |
Restricted |
Treasury |
Retained |
Comprehensive |
Stockholders’ |
||||||||||||||||||
|
Shares |
Amount |
Capital |
Stock |
Stock |
Earnings |
Income
(Loss |
) |
Equity |
||||||||||||||||
Balance
at December 31, 2001 |
32,812,036
|
$ |
340 |
$ |
114,307 |
$ |
- |
$ |
(11,525 |
) |
$ |
135,831 |
$ |
(13,570 |
) |
$ |
225,383 |
||||||||
Net
income |
-
|
-
|
-
|
-
|
-
|
3,404
|
-
|
3,404
|
|||||||||||||||||
Minimum
pension liability (net of $528 tax benefit) |
-
|
-
|
-
|
-
|
-
|
-
|
(1,001 |
) |
(1,001 |
) | |||||||||||||||
Foreign
currency translation |
-
|
-
|
-
|
-
|
-
|
-
|
852 |
852 |
|||||||||||||||||
Comprehensive
income |
3,255
|
||||||||||||||||||||||||
Sale
of treasury stock |
1,201,000 |
-
|
4,328
|
- |
11,525 |
-
|
-
|
15,853 |
|||||||||||||||||
Exercise
of stock options - directors and employees |
180,940
|
2
|
1,072
|
- |
- |
-
|
-
|
1,074 |
|||||||||||||||||
Issuance
of common stock |
6,749,000 |
67 |
92,593 |
- |
- |
- |
- |
92,660 |
|||||||||||||||||
Tax
benefit associated with the exercise of non-qualified |
|||||||||||||||||||||||||
stock
options |
-
|
-
|
61
|
-
|
-
|
-
|
-
|
61
|
|||||||||||||||||
Balance
at December 31, 2002 |
40,942,976
|
409
|
212,361
|
- |
- |
139,235
|
(13,719 |
) |
338,286
|
||||||||||||||||
Net
income |
-
|
-
|
-
|
-
|
-
|
22,957
|
-
|
22,957
|
|||||||||||||||||
Minimum
pension liability (net of $177 tax expense) |
-
|
-
|
-
|
-
|
-
|
-
|
338 |
338 |
|||||||||||||||||
Cash
flow hedges (net of $137 tax benefit) |
- |
- |
- |
- |
- |
- |
(254 |
) |
(254 |
) | |||||||||||||||
Foreign
currency translation |
-
|
-
|
-
|
-
|
-
|
-
|
8,773 |
8,773 |
|||||||||||||||||
Comprehensive
income |
31,814
|
||||||||||||||||||||||||
Exercise
of stock options - directors and employees |
325,010
|
4
|
2,306
|
- |
- |
-
|
-
|
2,310 |
|||||||||||||||||
Issuance
of common stock |
733,676 |
7 |
12,097 |
- |
- |
- |
- |
12,104 |
|||||||||||||||||
Tax
benefit associated with the exercise of non-qualified |
|||||||||||||||||||||||||
stock
options |
-
|
-
|
284
|
-
|
-
|
-
|
-
|
284
|
|||||||||||||||||
Balance
at December 31, 2003 |
42,001,662
|
420
|
227,048
|
- |
- |
162,192
|
(4,862 |
) |
384,798
|
||||||||||||||||
Net
income |
-
|
-
|
-
|
-
|
-
|
193,796
|
-
|
193,796
|
|||||||||||||||||
Minimum
pension liability (net of $854 tax benefit) |
-
|
-
|
-
|
-
|
-
|
-
|
(1,648 |
) |
(1,648 |
) | |||||||||||||||
Cash
flow hedges (net of $7 tax benefit) |
- |
- |
- |
- |
- |
- |
241 |
241 |
|||||||||||||||||
Foreign
currency translation |
-
|
-
|
-
|
-
|
-
|
-
|
8,262 |
8,262 |
|||||||||||||||||
Comprehensive
income |
200,651
|
||||||||||||||||||||||||
Exercise
of stock options - directors and employees |
550,407
|
5 |
6,917 |
- |
- |
-
|
-
|
6,922 |
|||||||||||||||||
Stock
issued under restricted stock plan, net of forfeitures |
80,376 |
1 |
1,875 |
(1,654 |
) |
(222 |
) |
- |
- |
- |
|||||||||||||||
Share-based
compensation |
- |
- |
450 |
238 |
- |
- |
- |
688 |
|||||||||||||||||
Tax
benefit associated with the exercise of non-qualified |
|||||||||||||||||||||||||
stock
options |
-
|
-
|
2,605 |
-
|
-
|
-
|
-
|
2,605 |
|||||||||||||||||
Balance
at December 31, 2004 |
42,632,445
|
$ |
426 |
$ |
238,895 |
$ |
(1,416 |
) |
$ |
(222 |
) |
$ |
355,988 |
$ |
1,993 |
$ |
595,664 |
||||||||
See
accompanying notes. |
Year
Ended December 31, | ||||||||||
2004 |
2003 |
2002 |
||||||||
OPERATING
ACTIVITIES |
||||||||||
Income
from continuing operations |
$ |
193,796 |
$ |
22,957 |
$ |
2,886 |
||||
Adjustments
to reconcile income from continuing operations |
||||||||||
to
net cash provided by operating activities: |
||||||||||
Cumulative
effect of accounting change |
1,584 |
- |
- |
|||||||
Depreciation |
24,883 |
20,550 |
18,843 |
|||||||
Amortization |
2,815 |
1,861 |
1,111 |
|||||||
Income
tax benefit associated with the exercise of non-qualified stock
options |
2,605 |
284 |
61 |
|||||||
Share-based
compensation expense |
688 |
- |
- |
|||||||
Deferred
income taxes |
6,683 |
4,141 |
(5,375 |
) | ||||||
Provision
for losses on accounts receivable |
1,203 |
298 |
444 |
|||||||
Loss
on sale of equipment |
274 |
376 |
39 |
|||||||
Noncash
impairment charge |
3,767 |
- |
- |
|||||||
Noncash
portion of restructuring charges |
- |
150 |
861
|
|||||||
Changes
in operating assets and liabilities, net of effect of acquisitions:
|
||||||||||
Accounts
receivable |
(34,615 |
) |
(40,943 |
) |
1,033
|
|||||
Inventories
|
(239,174 |
) |
40,298 |
(21,430 |
) | |||||
Prepaid
expenses and other current assets |
(1,265 |
) |
3,075 |
(7,335 |
) | |||||
Other
assets |
(5,027 |
) |
1,678 |
5,144 |
||||||
Accounts
payable |
42,876 |
(36,202 |
) |
46,622 |
||||||
Accrued
expenses and other liabilities |
34,966 |
7,591 |
(10,030 |
) | ||||||
Deferred
revenue |
11,001 |
778 |
(1,151 |
) | ||||||
Cash
provided by continuing operating activities |
47,060 |
26,892 |
31,723
|
|||||||
INVESTING
ACTIVITIES |
||||||||||
Cash
paid for acquisitions, net of cash received |
(22,133 |
) |
(4,000 |
) |
(177,064 |
) | ||||
Purchase
of investments |
(50,065 |
) |
- |
- |
||||||
Proceeds
from sale of investments |
30,100 |
- |
- |
|||||||
Expenditures
for property, plant and equipment |
(34,820 |
) |
(20,902 |
) |
(22,809 |
) | ||||
Proceeds
from disposal of equipment |
5,845
|
64
|
73
|
|||||||
Cash
used by investing activities |
(71,073 |
) |
(24,838 |
) |
(199,800 |
) |
Year
Ended December 31, | ||||||||||
2004 |
2003 |
2002 |
||||||||
FINANCING
ACTIVITIES |
||||||||||
Net
borrowings (repayments) on credit facility |
4,660
|
(89,514 |
) |
66,388
|
||||||
Proceeds
from convertible senior subordinated notes |
- |
120,000 |
- |
|||||||
Principal
payments on long-term borrowings and notes |
(3,740 |
) |
(2,977 |
) |
(938 |
) | ||||
Net
principal payments (borrowings) on long-term note
receivable |
239 |
(1,669 |
) |
- |
||||||
Deferred
debt costs |
(811 |
) |
(4,630 |
) |
(4,452 |
) | ||||
Proceeds
from sale of treasury stock |
- |
- |
15,853 |
|||||||
Proceeds
from exercise of stock options |
6,922
|
2,310
|
1,074
|
|||||||
Proceeds
from sale of common stock |
-
|
-
|
90,370
|
|||||||
Cash
provided by financing activities |
7,270 |
23,520 |
168,295 |
|||||||
DISCONTINUED
OPERATIONS |
||||||||||
Gain
from discontinued operations |
- |
- |
518 |
|||||||
Adjustments
to reconcile gain from discontinued operations |
||||||||||
to
net cash provided by discontinued operations: |
||||||||||
Depreciation
|
- |
- |
376
|
|||||||
Gain
on disposal |
- |
- |
(518 |
) | ||||||
Change
in operating assets and liabilities of discontinued
operations |
-
|
-
|
(742 |
) | ||||||
Proceeds
from sale of discontinued operations |
- |
- |
1,238 |
|||||||
Net
cash provided by discontinued operations |
- |
- |
872
|
|||||||
Effect
of exchange rate changes on cash |
2,262 |
1,077 |
(479 |
) | ||||||
Increase
(decrease) in cash and cash equivalents |
(14,481 |
) |
26,651 |
611 |
||||||
Cash
and cash equivalents at beginning of year |
29,202
|
2,551
|
1,940
|
|||||||
Cash
and cash equivalents at end of year |
$ |
14,721 |
$ |
29,202 |
$ |
2,551 |
||||
Supplemental
disclosures of cash flow information: |
||||||||||
Cash
paid during the year for: |
||||||||||
Interest |
$ |
8,647 |
$ |
7,520 |
$ |
3,154 |
||||
Income
taxes |
$ |
76,742 |
$ |
7,964 |
$ |
11,964 |
||||
Noncash
investing and financing activities: |
||||||||||
Note
receivable for sale of discontinued operations |
$ |
- |
$ |
954 |
$ |
6,877 |
||||
Stock
issued for acquisitions |
$ |
- |
$ |
12,104 |
$ |
2,290 |
||||
See
accompanying notes. |
Land
and leasehold improvements |
10
to 20 years |
Buildings |
20
to 40 years |
Machinery
and equipment |
2
to 12 years |
Furniture
and fixtures |
2
to 10 years |
Computer
software |
3
to 7 years |
2004 |
2003 |
2002 |
||||||||
Numerator
for Basic and Diluted EPS |
||||||||||
Income
from continuing operations before cumulative effect of accounting
change |
$ |
195,380 |
$ |
22,957 |
$ |
2,886 |
||||
Gain
on disposal of DOM facility, net of taxes |
- |
- |
518 |
|||||||
Cumulative
effect of accounting change, net of benefit for income
taxes |
(1,584 |
) |
- |
- |
||||||
Numerator
for basic EPS |
193,796 |
22,957 |
3,404 |
|||||||
Interest
on the Old Notes |
111 |
62 |
- |
|||||||
Numerator
for diluted EPS |
$ |
193,907 |
$ |
23,019 |
$ |
3,404 |
2004 |
2003 |
2002 |
||||||||
Denominator
for Basic EPS |
||||||||||
Average
shares outstanding - basic |
42,349 |
41,747 |
38,144 |
|||||||
Denominator
for Diluted EPS |
42,349 |
41,747 |
38,144 |
|||||||
Dilutive
effect of unvested restricted stock and outstanding stock
options |
244 |
363 |
348 |
|||||||
Dilutive
effect of the Old Notes |
156 |
86 |
- |
|||||||
Dilutive
effect of the New Notes |
2 |
- |
- |
|||||||
Average
shares deemed outstanding - diluted |
42,751 |
42,196 |
38,492 |
2004 |
2003 |
2002 |
||||||||
Net
income, as reported |
$ |
193,796 |
$ |
22,957 |
$ |
3,404 |
||||
Add:
total stock-based employee compensation expense included in reported net
earnings, net of related tax effects |
421 |
- |
- |
|||||||
Deduct:
total stock-based employee compensation expense determined under fair
value-based method for all awards, net of related tax
effects |
(1,459 |
) |
(2,012 |
) |
(1,120 |
) | ||||
Pro
forma net income |
$ |
192,758 |
$ |
20,945 |
$ |
2,284 |
||||
Basic
earnings per share |
||||||||||
Net
income - as reported |
$ |
4.58 |
$ |
0.55 |
$ |
0.09 |
||||
Net
income - pro forma |
$ |
4.55 |
$ |
0.50 |
$ |
0.06 |
||||
Diluted
earnings per share |
||||||||||
Net
income - as reported |
$ |
4.54 |
$ |
0.55 |
$ |
0.09 |
||||
Net
income - pro forma |
$ |
4.51 |
$ |
0.50 |
$ |
0.06 |
Accumulated |
|||||||||||||
|
Foreign |
Minimum |
Cash |
Other |
|||||||||
|
Currency |
Pension |
Flow |
Comprehensive |
|||||||||
|
Translation |
Liability |
Hedges |
Income
(Loss |
) | ||||||||
Balance
at December 31, 2001 |
$ |
(12,904 |
) |
$ |
(666 |
) |
$ |
- |
$ |
(13,570 |
) | ||
Unrealized
gains (losses) |
852 |
(1,001 |
) |
- |
(149 |
) | |||||||
Balance
at December 31, 2002 |
(12,052 |
) |
(1,667 |
) |
- |
(13,719 |
) | ||||||
Unrealized
gains (losses) |
8,773 |
338 |
(254 |
) |
8,857 |
||||||||
Balance
at December 31, 2003 |
(3,279 |
) |
(1,329 |
) |
(254 |
) |
(4,862 |
) | |||||
Unrealized
gains (losses) |
8,262 |
(1,648 |
) |
241 |
6,855 |
||||||||
Balance
at December 31, 2004 |
$ |
4,983 |
$ |
(2,977 |
) |
$ |
(13 |
) |
$ |
1,993 |
Cash
costs: |
||||
Employee
severance cost - including medical |
$ |
2,742 |
||
Other |
100 |
|||
Total
restructuring costs |
$ |
2,842 |
Employee | ||||||||||
|
Severance |
Other |
Total |
|||||||
Balance,
December 31, 2002 |
$ |
- |
$ |
- |
$ |
- |
||||
New
charges |
2,742 |
100 |
2,842 |
|||||||
Cash
payments |
(1,052 |
) |
- |
(1,052 |
) | |||||
Balance,
December 31, 2003 |
1,690 |
100 |
1,790 |
|||||||
Adjustment |
73 |
(73 |
) |
- |
||||||
Cash
payments |
(1,326 |
) |
(27 |
) |
(1,353 |
) | ||||
Balance,
December 31, 2004 |
$ |
437 |
$ |
- |
$ |
437 |
2004 |
2003 |
||||||
Finished
goods |
$ |
207,194 |
$ |
98,575 |
|||
Work-in-process |
44,380 |
10,252 |
|||||
Raw
materials |
113,007 |
34,748 |
|||||
In-transit
materials |
70,760 |
28,275 |
|||||
Storeroom
parts |
11,739 |
12,175 |
|||||
$ |
447,080 |
$ |
184,025 |
2004 |
2003 |
||||||
Land |
$ |
9,072 |
$ |
8,735 |
|||
Land
and leasehold improvements |
11,676 |
10,643 |
|||||
Buildings |
64,477 |
61,105 |
|||||
Machinery
and equipment |
257,520 |
223,722 |
|||||
Computer
software |
25,182 |
12,358 |
|||||
Furniture
and fixtures |
3,215 |
4,243 |
|||||
Construction-in-process |
20,176 |
19,959 |
|||||
391,318 |
340,765 |
||||||
Accumulated
depreciation |
(179,784 |
) |
(151,331 |
) | |||
$ |
211,534 |
$ |
189,434 |
|
Energy |
Industrial |
Total |
|||||||
Balance,
December 31, 2002 |
$ |
43,131 |
$ |
50,053 |
$ |
93,184 |
||||
Acquisitions
and purchase accounting adjustments |
7,198 |
(17,400 |
) |
(10,202 |
) | |||||
Balance,
December 31, 2003 |
50,329 |
32,653 |
82,982 |
|||||||
Purchase
accounting adjustments |
3,002 |
- |
3,002 |
|||||||
Balance,
December 31, 2004 |
$ |
53,331 |
$ |
32,653 |
$ |
85,984 |
|
|
|||||||||
|
Republic
Conduit |
SeaCAT |
Total |
|||||||
Trademarks/brand
name - indefinite life |
$ |
24,700 |
$ |
2,100 |
$ |
26,800 |
||||
Software
- 2-year useful life |
400 |
- |
400 |
|||||||
Patent
- 9-year useful life |
- |
100 |
100 |
|||||||
Customer
relationships - 26-year useful life |
2,300 |
- |
2,300 |
|||||||
Customer
relationships - 17-year useful life |
- |
5,900 |
5,900 |
|||||||
$ |
27,400 |
$ |
8,100 |
$ |
35,500 |
|
Trademarks/ |
Customer |
||||||||||||||
Brand
Names |
Software |
Patent |
Relationships |
Total |
||||||||||||
December
31, 2004 |
||||||||||||||||
Intangible
assets |
$ |
26,800 |
$ |
400 |
$ |
100 |
$ |
8,200 |
$ |
35,500 |
||||||
Less
accumulated amortization |
- |
400 |
15 |
563 |
978 |
|||||||||||
$ |
26,800 |
$ |
- |
$ |
85 |
$ |
7,637 |
$ |
34,522 |
|||||||
December
31, 2003 |
||||||||||||||||
Intangible
assets |
$ |
26,800 |
$ |
400 |
$ |
100 |
$ |
8,200 |
$ |
35,500 |
||||||
Less
accumulated amortization |
- |
80 |
3 |
113 |
196 |
|||||||||||
$ |
26,800 |
$ |
320 |
$ |
97 |
$ |
8,087 |
$ |
35,304 |
2004 |
2003 |
||||||
Senior
revolving credit facility, secured by certain accounts receivable,
inventories, property, plant and equipment, and all or part of the voting
stock of the Company’s subsidiaries; due on March 31, 2006; interest
payable monthly (4.4% at December 31, 2004) at either U.S. or Canadian
prime, Bankers’ Acceptance rates plus stamping fees, or the LIBOR rate,
adjusted by an interest margin, depending upon excess
availability |
$ |
54,660 |
$ |
50,213 |
|||
Convertible
senior subordinated notes, unsecured; due June 15, 2033; interest payable
semi-annually at 4.0% |
120,000 |
120,000 |
|||||
Capital
lease obligation, secured by property and plant (net book value $5,472 at
December 31, 2004); payable in monthly installments (including
interest at 8.0%) of $59; final payment due on August 1,
2007 |
1,708 |
2,261 |
|||||
Note
payable, secured by property and plant (net book value $2,225 at
December 31, 2004); due on May 1, 2006, which was pre-paid on March
1, 2005; interest payable quarterly at 11.0% |
2,500 |
5,000 |
|||||
PCD
debt obligations |
2,071 |
- |
|||||
Capital
lease obligation, final payment due February 1, 2004 |
- |
481 |
|||||
180,939 |
177,955 |
||||||
Current
maturities |
(3,298 |
) |
(3,533 |
) | |||
$ |
177,641 |
$ |
174,422 |
|
Total
Minimum
Lease
Payments |
Interest |
Present
Value of Minimum Lease Payments |
|||||||
2005 |
$ |
714 |
$ |
115 |
$ |
599 |
||||
2006 |
712 |
65 |
647 |
|||||||
2007 |
476 |
14 |
462 |
|||||||
$ |
1,902 |
$ |
194 |
$ |
1,708 |
Qualifying
Cash Flow Hedges |
Notional
Amount |
Fair
Value
Asset/(Liability) |
|
Description |
||||||
Interest
rate swaps
(floating
to fixed rate swaps) |
$ |
50,000 |
$ |
35 |
Effectively
converts the interest rate on an equivalent amount of variable rate
borrowings to a fixed rate |
|||||
Foreign
currency hedges
(floating
to fixed exchange rates) |
$ |
30,000 |
$ |
(3,117 |
) |
Effectively
hedges the variability in forecasted cash flows due to the foreign
currency risk associated with the settlement of nonfunctional currency
denominated debt |
2004 |
2003 |
2002 |
||||||||
Domestic |
$ |
238,229 |
$ |
7,576 |
$ |
(8,161 |
) | |||
Foreign |
75,459 |
28,129 |
14,324 |
|||||||
$ |
313,688 |
$ |
35,705 |
$ |
6,163 |
2004 |
2003 |
2002 |
||||||||
Current: |
||||||||||
Federal |
$ |
79,580 |
$ |
514 |
$ |
878 |
||||
State |
5,145 |
12 |
(89 |
) | ||||||
Foreign |
25,251 |
8,477 |
7,617 |
|||||||
109,976 |
9,003 |
8,406 |
||||||||
Deferred: |
||||||||||
Domestic |
1,160 |
2,388 |
(2,686 |
) | ||||||
Foreign |
7,172 |
1,357 |
(2,443 |
) | ||||||
8,332 |
3,745 |
(5,129 |
) | |||||||
$ |
118,308 |
$ |
12,748 |
$ |
3,277 |
2004 |
2003 |
2002 |
||||||||
Provision
at U.S. statutory tax rate |
$ |
109,791 |
$ |
12,497 |
$ |
2,157 |
||||
State
and local taxes, net of federal tax benefit |
5,002 |
86 |
(89 |
) | ||||||
Taxes
on foreign income in excess of (less than) |
||||||||||
U.S.
statutory rate |
(853 |
) |
(89 |
) |
160 |
|||||
Increase
in state tax rate |
511 |
- |
- |
|||||||
Taxes
on foreign dividends |
- |
- |
1,776 |
|||||||
Valuation
allowances |
57 |
53 |
(1,001 |
) | ||||||
Permanent
items |
(575 |
) |
129 |
(426 |
) | |||||
Other |
4,375 |
72 |
700 |
|||||||
$ |
118,308 |
$ |
12,748 |
$ |
3,277 |
2004 |
2003 |
||||||
Deferred
tax assets: |
|||||||
Various
accrued liabilities and reserves |
$ |
9,771 |
$ |
2,669 |
|||
Net
operating loss carryforwards |
7,329 |
3,298 |
|||||
Alternative
minimum tax carryforwards |
- |
5,282 |
|||||
Foreign
tax credit carryforwards |
6,886 |
12,362 |
|||||
Pension
plans |
770 |
675 |
|||||
Asset
valuations |
1,508 |
1,335 |
|||||
Valuation
allowances: |
|||||||
Foreign
tax credit carryforwards |
(6,886 |
) |
(6,877 |
) | |||
Net
operating loss carryforwards |
(109 |
) |
(53 |
) | |||
Total
deferred tax assets |
19,269 |
18,691 |
|||||
Deferred
tax liabilities: |
|||||||
Plant,
equipment and intangible assets |
28,711 |
19,157 |
|||||
Net
deferred tax liabilities |
$ |
(9,442 |
) |
$ |
(466 |
) |
Pension
Benefits |
Postretirement | ||||||||||||
|
and
SERP |
Benefit
Plan | |||||||||||
2004 |
2003 |
2004 |
2003 |
||||||||||
Change
in benefit obligation: |
|||||||||||||
Benefit
obligation at beginning of year |
$ |
42,627 |
$ |
32,390 |
$ |
1,883 |
$ |
1,441 |
|||||
Service
cost |
1,704 |
1,507 |
100 |
59 |
|||||||||
Interest
cost |
3,137 |
2,534 |
189 |
117 |
|||||||||
Plan
amendments |
3,202 |
- |
- |
- |
|||||||||
Actuarial
loss |
5,242 |
213 |
1,081 |
- |
|||||||||
Benefits
paid |
(1,417 |
) |
(1,215 |
) |
(83 |
) |
(55 |
) | |||||
Foreign
currency translation change |
3,145 |
7,198 |
138 |
321 |
|||||||||
Benefit
obligation at end of year |
$ |
57,640 |
$ |
42,627 |
$ |
3,308 |
$ |
1,883 |
|||||
Change
in fair value of plan assets: |
|||||||||||||
Fair
value of plan assets at beginning of year |
$ |
36,624 |
$ |
26,478 |
$ |
- |
$ |
- |
|||||
Employer
contributions |
4,369 |
2,120 |
- |
- |
|||||||||
Actual
return on plan assets |
4,028 |
3,357 |
- |
- |
|||||||||
Benefits
paid |
(1,417 |
) |
(1,215 |
) |
- |
- |
|||||||
Foreign
currency translation change |
2,703 |
5,884 |
- |
- |
|||||||||
Fair
value of plan assets at end of year |
$ |
46,307 |
$ |
36,624 |
$ |
- |
$ |
- |
|||||
Funded
status: |
|||||||||||||
Underfunded
status at end of year |
$ |
(11,333 |
) |
$ |
(6,003 |
) |
$ |
(3,308 |
) |
$ |
(1,883 |
) | |
Unrecognized
actuarial loss |
13,553 |
9,265 |
1,302 |
504 |
|||||||||
Unrecognized
transition obligation (asset) |
(5,287 |
) |
(5,557 |
) |
486 |
267 |
|||||||
Unrecognized
prior service cost |
5,243 |
2,356 |
- |
- |
|||||||||
Prepaid
(accrued) benefit cost |
$ |
2,176 |
$ |
61 |
$ |
(1,520 |
) |
$ |
(1,112 |
) | |||
Amounts
recognized in the balance sheets: |
|||||||||||||
Prepaid
benefit costs |
$ |
2,582 |
$ |
1,962 |
$ |
- |
$ |
- |
|||||
Accrued
benefit liability |
(9,318 |
) |
(5,935 |
) |
(1,520 |
) |
(1,112 |
) | |||||
Intangible
asset |
4,448 |
2,022 |
- |
- |
|||||||||
Accumulated
other comprehensive income |
4,464 |
2,012 |
- |
- |
|||||||||
Net
amount recognized |
$ |
2,176 |
$ |
61 |
$ |
(1,520 |
) |
$ |
(1,112 |
) |
Pension
Benefits |
Postretirement |
||||||
|
and
SERP |
Benefit
Plan |
|||||
Estimated
future benefit payments are as follows at December 31, 2004
(in
thousands): |
|||||||
2005 |
$ |
2,222 |
$ |
89 |
|||
2006 |
2,423 |
98 |
|||||
2007 |
2,528 |
111 |
|||||
2008 |
2,766 |
125 |
|||||
2009 |
2,927 |
135 |
|||||
2010
through 2013 |
17,951 |
864 |
|||||
$ |
30,817 |
$ |
1,422 |
||||
Employer
contributions expected for the year ended December 31, 2005
(in
thousands): |
|||||||
Contributions
required by funding regulations or laws |
$ |
2,992 |
$ |
- |
|||
Additional
discretionary contributions |
1,374 |
76 |
|||||
$ |
4,366 |
$ |
76 |
2004 |
2003 |
2002 |
||||||||
Pension
benefit costs: |
||||||||||
Service
cost |
$ |
1,704 |
$ |
1,507 |
$ |
1,048 |
||||
Interest
cost |
3,137 |
2,534 |
1,963 |
|||||||
Expected
return on plan assets |
(2,783 |
) |
(2,256 |
) |
(1,985 |
) | ||||
Amortization
of prior service cost |
489 |
242 |
131 |
|||||||
Amortization
of transition asset |
(680 |
) |
(633 |
) |
(518 |
) | ||||
Recognized
net actuarial gain |
389 |
685 |
197 |
|||||||
$ |
2,256 |
$ |
2,079 |
$ |
836 |
2004 |
2003 |
2002 |
||||||||
Postretirement
benefit plan costs: |
||||||||||
Service
cost |
$ |
100 |
$ |
59 |
$ |
45 |
||||
Interest
cost |
189 |
117 |
88 |
|||||||
Recognized
net actuarial loss |
113 |
57 |
46 |
|||||||
$ |
402 |
$ |
233 |
$ |
179 |
|
|
|
Postretirement | ||||||||||
|
Pension
Benefits |
Benefit
Plan | |||||||||||
2004 |
2003 |
2004 |
2003 |
||||||||||
Discount
rate |
6.0 |
% |
6.5 |
% |
6.0 |
% |
6.5 |
% | |||||
Expected
return on plan assets |
7.0 |
% |
7.0 |
% |
- |
- |
|||||||
Rate
of compensation increase |
4.5 |
% |
4.3 |
% |
- |
- |
|
1.0% Increase |
1.0%
Decrease |
|||||
Effect
on total service and interest cost components |
$ |
58 |
$ |
38 |
|||
Effect
on accumulated postretirement benefit obligations |
$ |
590 |
$ |
465 |
Energy |
Industrial |
||||||||||||
|
Products |
Products |
Corporate |
Total |
|||||||||
Year
Ended December 31, 2004 |
|||||||||||||
Net
sales |
$ |
954,440 |
$ |
501,824 |
$ |
- |
$ |
1,456,264 |
|||||
Income
from operations |
172,488 |
151,574 |
- |
324,062 |
|||||||||
Identifiable
assets |
691,324 |
248,081 |
63,032 |
1,002,437 |
|||||||||
Goodwill
and intangible assets |
60,967 |
59,539 |
- |
120,506 |
|||||||||
Depreciation
and amortization |
16,943 |
4,655 |
6,100 |
27,698 |
|||||||||
Capital
expenditures |
19,186 |
9,904 |
5,730 |
34,820 |
|||||||||
Year
Ended December 31, 2003 |
|||||||||||||
Net
sales |
$ |
621,955 |
$ |
262,362 |
$ |
- |
$ |
884,317 |
|||||
Income
from operations |
44,428 |
914 |
- |
45,342 |
|||||||||
Identifiable
assets |
439,747 |
150,976 |
80,003 |
670,726 |
|||||||||
Goodwill
and intangible assets |
58,336 |
59,950 |
- |
118,286 |
|||||||||
Depreciation
and amortization |
14,337 |
3,558 |
4,516 |
22,411 |
|||||||||
Capital
expenditures |
7,278 |
6,438 |
7,186 |
20,902 |
|||||||||
Year
Ended December 31, 2002 |
|||||||||||||
Net
sales |
$ |
375,097 |
$ |
77,816 |
$ |
- |
$ |
452,913 |
|||||
Income
from operations |
10,374 |
114 |
- |
10,488 |
|||||||||
Identifiable
assets |
313,636 |
224,719 |
57,528 |
595,883 |
|||||||||
Goodwill
and intangible assets |
43,131 |
50,053 |
- |
93,184 |
|||||||||
Depreciation
and amortization |
10,123 |
5,591 |
4,240 |
19,954 |
|||||||||
Capital
expenditures |
15,260 |
3,806 |
3,743 |
22,809 |
Other | |||||||||||||
|
U.S. |
Canada |
Countries |
Total |
|||||||||
Year
Ended December 31, 2004 |
|||||||||||||
Net
sales |
$ |
1,040,163 |
$ |
394,355 |
$ |
21,746 |
$ |
1,456,264 |
|||||
Long-lived
assets |
306,153 |
25,887 |
- |
332,040 |
|||||||||
Year
Ended December 31, 2003 |
|||||||||||||
Net
sales |
$ |
567,075 |
$ |
296,739 |
$ |
20,503 |
$ |
884,317 |
|||||
Long-lived
assets |
286,589 |
21,131 |
- |
307,720 |
|||||||||
Year
Ended December 31, 2002 |
|||||||||||||
Net
sales |
$ |
281,676 |
$ |
159,364 |
$ |
11,873 |
$ |
452,913 |
|||||
Long-lived
assets |
253,277 |
18,628 |
523 |
272,428 |
|||||||||
2005 |
$ |
5,278 |
||
2006 |
4,372 |
|||
2007 |
3,745 |
|||
2008 |
3,106 |
|||
2009 |
551 |
|||
Thereafter |
715 |
|||
$ |
17,767 |
Weighted |
Weighted |
|||||||||
Shares Under |
Average |
Average |
||||||||
|
Option |
Exercise
Price |
Fair
Value |
|||||||
Options
outstanding at December 31, 2001 |
1,261,963 |
10.98 |
||||||||
Options
exercised |
(180,940 |
) |
6.11 |
|||||||
Options
forfeited |
(55,650 |
) |
20.41 |
|||||||
Options
granted |
410,000 |
13.28 |
$ |
6.78 |
||||||
Options
outstanding at December 31, 2002 |
1,435,373 |
11.89 |
||||||||
Options
exercised |
(325,010 |
) |
7.02 |
|||||||
Options
forfeited |
(106,326 |
) |
20.41 |
|||||||
Options
granted |
185,000 |
16.39 |
$ |
7.88 |
||||||
Options
outstanding at December 31, 2003 |
1,189,037 |
$ |
13.18 |
|||||||
Options
exercised |
(550,407 |
) |
12.51 |
|||||||
Options
forfeited |
(7,504 |
) |
16.02 |
|||||||
Options
granted |
91,668 |
21.56 |
$ |
9.76 |
||||||
Options
outstanding at December 31, 2004 |
722,794 |
$ |
14.73 |
|
Options Outstanding |
Options
Exercisable | ||||||||||||||
|
Weighted Average |
Weighted |
Weighted |
|||||||||||||
Range
of |
Remaining |
Average |
Average |
|||||||||||||
Exercise
Price |
Options |
Contractual
Life |
Exercise
Price |
Options |
Exercise
Price |
|||||||||||
$6.80
- $7.13 |
67,601 |
4.0
years |
$ |
7.00 |
67,601 |
$ |
7.00 |
|||||||||
$10.37
- $15.95 |
480,858 |
7.5
years |
$ |
13.57 |
284,193 |
$ |
13.34 |
|||||||||
$16.99
- $24.40 |
174,335 |
4.5
years |
$ |
20.92 |
136,000 |
$ |
21.12 |
|||||||||
$6.80
- $24.40 |
722,794 |
6.5
years |
$ |
14.73 |
487,794 |
$ |
14.63 |
Quarter
Ended |
March
31, |
June
30, |
September
30, |
December
31, |
|||||||||
2004 |
2004 |
2004 |
2004 |
||||||||||
Net
sales |
$ |
311,298 |
$ |
348,088 |
$ |
400,684 |
$ |
396,194 |
|||||
Gross
profit |
70,540 |
119,264 |
134,012 |
84,671 |
|||||||||
Income
before cumulative effect of accounting change |
30,325 |
57,997 |
68,533 |
38,525 |
|||||||||
Net
income |
28,741 |
57,997 |
68,533 |
38,525 |
|||||||||
Basic
earnings per share before cumulative effect of accounting
change |
0.72 |
1.37 |
1.62 |
0.90 |
|||||||||
Basic
earnings per share |
0.68 |
1.37 |
1.62 |
0.90 |
|||||||||
Diluted
earnings per share before cumulative effect of accounting
change |
0.72 |
1.36 |
1.60 |
0.90 |
|||||||||
Diluted
earnings per share |
0.68 |
1.36 |
1.60 |
0.90 |
|||||||||
Quarter
Ended |
March
31, |
June
30, |
September
30, |
December
31, |
|||||||||
2003 |
2003 |
2003 |
2003 |
||||||||||
Net
sales |
$ |
219,438 |
$ |
194,925 |
$ |
226,753 |
$ |
243,201 |
|||||
Gross
profit |
14,909 |
15,646 |
29,765 |
40,644 |
|||||||||
Net
income |
242 |
1,063 |
8,677 |
12,975 |
|||||||||
Basic
earnings per share |
0.01 |
0.03 |
0.21 |
0.31 |
|||||||||
Diluted
earnings per share |
0.01 |
0.03 |
0.21 |
0.31 |
|
Additions |
|||||||||||||||
Classification |
Balance
at Beginning
of
Year |
Charged
to Cost and Expenses |
Charged
to
Other Accounts |
Adjustments
|
Balance
at End of Year |
|||||||||||
Year
ended December 31, 2002: |
||||||||||||||||
Deducted
from asset account: |
||||||||||||||||
Accounts
receivable allowances |
$ |
2,412 |
$ |
449 |
$ |
2,327 |
$ |
-- |
$ |
5,188 |
||||||
Valuation
allowance for deferred |
||||||||||||||||
income
taxes |
$ |
4,342 |
$ |
6,877 |
$ |
-- |
$ |
(2,870 |
) |
$ |
8,349 |
|||||
Year
ended December 31, 2003: |
||||||||||||||||
Deducted
from asset account: |
||||||||||||||||
Accounts
receivable allowances |
$ |
5,188 |
$ |
298 |
$ |
-- |
($72 |
) |
$ |
5,414 |
||||||
Valuation
allowance for deferred |
||||||||||||||||
income
taxes |
$ |
8,349 |
$ |
53 |
$ |
-- |
$ |
(1,472 |
) |
$ |
6,930 |
|||||
Year
ended December 31, 2004: |
||||||||||||||||
Deducted
from asset account: |
||||||||||||||||
Accounts
receivable allowances |
$ |
5,414 |
$ |
1,376 |
$ |
-- |
$ |
149 |
$ |
6,641 |
||||||
Valuation
allowance for deferred |
||||||||||||||||
income
taxes |
$ |
6,930 |
$ |
65 |
$ |
-- |
$ |
-- |
$ |
6,995 |
ITEM
12 |
1. |
Financial
Statements |
2. |
Schedule |
Maverick
Tube Corporation | |
(registrant) |
March
15, 2005 |
/s/
Pamela G. Boone |
Pamela
G. Boone, Vice President - Treasurer and Assistant
Secretary |
March
15, 2005 |
/s/
C. Robert Bunch |
C.
Robert Bunch, Chairman and
Chief
Executive Officer and Director
(Principal
Executive Officer) |
March
15, 2005 |
/s/
Pamela G. Boone |
Pamela
G. Boone
(Principal
Financial Officer) |
March
15, 2005 |
/s/
C. Adams Moore |
C.
Adams Moore, Director |
March
15, 2005 |
/s/
David H. Kennedy |
David
H. Kennedy, Director |
March
15, 2005 |
/s/
Gerald Hage |
Gerald
Hage, Director |
March
15, 2005 |
/s/
Greg Eisenberg |
Greg
Eisenberg, Director |
March
15, 2005 |
/s/
Paul C. McDermott |
Paul
C. McDermott, Director |
March
15, 2005 |
/s/
Wayne P. Mang |
Wayne
P. Mang, Director |
EXHIBIT |
|
NUMBER |
DESCRIPTION |
2.1
|
Combination
Agreement by and between the Registrant and Prudential Steel Ltd. dated as
of June 11, 2000 (incorporated herein by reference to Annex B to our
definitive proxy statement filed on August 11, 2000).
|
2.2
|
Form
of Plan of Arrangement involving and affecting Prudential Steel Ltd. and
the holders of its common shares and options (incorporated herein by
reference to Annex D to our definitive proxy statement filed on August 11,
2000).
|
2.3
|
Stock
Purchase Agreement dated as of February 12, 2002 by and among the
Registrant, Precision Tube Holding Corporation and the shareholders of
Precision Tube Holding Corporation (incorporated herein by reference to
Exhibit 2.1 to the Registrant’s current report on Form 8-K filed on
February 14, 2002).
|
2.4
|
Asset
Purchase Agreement By and Among The LTV Corporation, the Other Sellers
Named Herein and the Registrant dated as of October 15, 2002 (incorporated
herein by reference to Exhibit 2.1 to the Registrant’s current report on
Form 8-K filed on October 16, 2002).
|
2.5
|
Plan
of Reorganization and Agreement of Merger dated as of February 19, 2003 by
and among the Registrant, SC Acquisition, L.P., SeaCAT Corporation and
certain shareholders of SeaCAT Corporation (incorporated herein by
reference to Exhibit 2.1 to the Registrant’s current report on Form 8-K
filed on February 20, 2003).
|
3.1
|
Amended
and Restated Certificate of Incorporation of the registrant, as amended
(incorporated herein by reference to Exhibit 3.1 to the Registrant’s
quarterly report on Form 10-Q for the quarter ended September 30,
2000).
|
3.2
|
Amended
and Restated Bylaws of the Registrant (incorporated herein by reference to
Exhibit 3.1 to the Registrant’s current report on Form 8-K filed on March
2, 2005).
|
4.1
|
Form
of Amended and Restated Shareholder Rights Agreement, dated as of
September 22, 2000 between the Registrant and Harris Trust and Savings
Bank (which includes as Exhibit A thereto the Form of Preferred Stock
Rights Certificate) (incorporated herein by reference to Exhibit (5) of
the Registrant’s Form 8-A/A filed on September 26, 2000).
|
4.2
|
Form
of Stock Certificate for Common Stock (incorporated herein by reference to
Exhibit 4.1 to the Registrant’s registration statement on Form S-1 (File
No. 33-37363)).
|
4.3
|
Form
of Stock Certificate for Series II or Special Voting Preferred Stock
(incorporated herein by reference to Exhibit 4.3 to the Registrant’s
annual report on Form 10-K for the fiscal year ended December 31,
2000).
|
4.4
|
Form
of Share Capital and other Provisions to be included in the Articles of
Incorporation of Maverick Tube (Canada) Inc. (incorporated herein by
reference to Annex E to our definitive proxy statement filed on August 11,
2000).
|
4.5
|
Form
of Support Agreement by and between the Registrant and Maverick Tube
(Canada) Inc. (incorporated herein by reference to Annex F to our
definitive proxy statement filed on August 11, 2000).
|
4.6
|
Form
of Voting and Exchange Trust Agreement by and between the Registrant,
Maverick Tube (Canada), Inc. and CIBC Mellon Trust Company (incorporated
herein by reference to Annex G to our definitive proxy statement filed on
August 11, 2000).
|
4.7
|
Indenture,
dated as of June 9, 2003, between Maverick Tube Corporation and the Bank
of New York (the “2003 Indenture”) (incorporated herein by reference to
Exhibit 4.3 to the Registrant’s registration statement on Form S-3, filed
on July 11, 2003 (File No. 33-106976)).
|
4.8
|
Form
of 4.00% Convertible Senior Subordinated Note due 2033 (incorporated
herein by reference to Exhibit A of the 2003 Indenture).
|
4.9
|
Registration
Rights Agreement dated as of June 9, 2003 by and among Maverick Tube
Corporation and J.P. Morgan Securities, Inc., Jefferies & Co., Inc.
and Raymond James & Associates, Inc. (incorporated herein by reference
to Exhibit 4.5 to the Registrant’s registration statement on Form S-3,
filed on July 11, 2003 (File No. 33-106976)).
|
EXHIBIT |
|
NUMBER |
DESCRIPTION |
4.10
|
Supplemental
Indenture, dated as of October 24, 2003, between Maverick Tube Corporation
and the Bank of New York (incorporated herein by reference to Exhibit 4.6
to the Registrant’s Registration Statement on Form S-3/A, filed on October
27, 2003 (File No. 33-106976)).
|
4.11
|
Form
of Indenture between Maverick Tube Corporation and The Bank of New York,
as trustee, governing the 2004 4.00% Convertible Senior Subordinated Note
due 2033 (“2004 Indenture”) (incorporated herein by reference to Exhibit
4.1 to the Registrant’s registration statement on Form S-4, filed on
December 20, 2004 (File No. 333-120923)).
|
4.12
|
Form
of 2004 4.00% Convertible 4.00% Convertible Senior Subordinated Note due
2033 (incorporated herein by reference to Exhibit A of the 2004
Indenture).
|
10.1
|
Lease
and Agreement dated July 24, 1992, by and between the Registrant and the
Arkansas Development Finance Authority (incorporated herein by reference
to Exhibit 10.7 to the Registrant’s annual report on Form 10-K for the
fiscal year ended September 30, 1992).
|
10.2*
|
Maverick
Tube Corporation Savings for Retirement Plan effective on February 15,
1988, as amended (incorporated herein by reference to Exhibit 10.11 to the
Registrant’s annual report on Form 10-K for the fiscal year ended
September 30, 1993).
|
10.3*
|
The
Maverick Tube Corporation 1994 Stock Option Plan (the “1994 Employee
Plan”) (incorporated herein by reference to Exhibit 10.17 of the
Registrant’s annual report on Form 10-K for the fiscal year ended
September 30, 1994).
|
10.3.1*
|
Amendment
#1 to the 1994 Employee Plan (incorporated herein by reference to Exhibit
10.21 of the Registrant’s annual report on Form 10-K for the fiscal year
ended September 30, 1997).
|
10.4*
|
The
Maverick Tube Corporation Director Stock Option Plan (the “1994 Director
Plan”) (incorporated herein by reference to Exhibit 10.18 of the
Registrant’s annual report on Form 10-K for the fiscal year ended
September 30, 1994).
|
10.4.1*
|
Amendment
#1 to the 1994 Director Plan (incorporated herein by reference to Exhibit
10.24 of the Registrant’s annual report on Form 10-K for the fiscal year
ended September 30, 1996).
|
10.4.2*
|
Form
of Director Non-Qualified Stock Option Agreement issuable under the 1994
Director Plan.
|
10.5*
|
Amended
and Restated Maverick Tube Corporation 2004 Omnibus Incentive Plan (“2004
Employee Plan”)
|
10.5.1*
|
Form
of Non-Qualified Stock Option Agreement issuable under the 2004 Employee
Plan.
|
10.5.2*
|
Form
of Restricted Stock Award Agreement issuable under the 2004 Employee
Plan.
|
10.5.3*
|
Form
of Restricted Stock Unit Award Agreement issuable under the 2004 Employee
Plan.
|
10.6*
|
Maverick
Tube Corporation 2004 Stock Incentive Plan for Non-Employee Directors
(incorporated herein by reference to Attachment C to the registrant’s
definitive proxy statement filed on March 29, 2004), as amended by First
Amendment dated February 23, 2005 (incorporated herein by reference to
Exhibit 10.1 to Registrant’s current report on Form 8-K filed on March 2,
2005).
|
10.7*
|
Form
of Deferred Compensation Agreement between the Registrant and Messrs.
Gregg Eisenberg, T. Scott Evans and Sudhakar Kanthamneni dated October 1,
1995 (incorporated herein by reference to Exhibit 10.22 of the
Registrant’s annual report on Form 10-K for the fiscal year ended
September 30, 1996).
|
10.8*
|
Form
of Severance Agreement dated December 10, 1998, by and among the
Registrant and Gregg Eisenberg, Sudhakar Kanthamneni and T. Scott Evans
(incorporated herein by reference to Exhibit 10.16 of the Registrant’s
annual report on Form 10-K for the fiscal year ended September 30,
1998).
|
EXHIBIT |
|
NUMBER |
DESCRIPTION |
10.9
|
Agreement
of Limited Partnership between the Registrant, Maverick Investment
Corporation and Maverick Tube L.P. (incorporated herein by reference to
Exhibit 10.13 of the Registrant’s annual report on Form 10-K for the
fiscal year ended September 30, 1998).
|
10.10*
|
Amended
and Restated Prudential Steel Ltd. Stock Option Plan (incorporated herein
by reference to Exhibit 99.1 of the Registrant’s registration statement on
Form S-8 filed on September 27, 2000 (File No. 333-46740)).
|
10.11*
|
Amended
and Restated Prudential Steel Ltd. Pension Plan for Salaried Employees
restated effective January 1, 1992 and including amendments to January 1,
1998 (incorporated herein by reference to Exhibit 10.15 of the
Registrant’s annual report on Form 10-K for the fiscal year ended December
31, 2000 (in Canadian dollars)).
|
10.12
|
Lease
and Agreement dated January 10, 2001, by and between the Registrant and
Commercial Resins Company, Inc. (incorporated herein by reference to
Exhibit 10.18 of the Registrant’s annual report on Form 10-K for the
fiscal year ended December 31, 2000).
|
10.13*
|
Prudential
Steel Ltd. Supplemental Employees’ Retirement Plan dated as of January 1,
1994 (incorporated herein by reference to Exhibit 10.19 of the
Registrant’s annual report on Form 10-K for the fiscal year ended December
31, 2000).
|
10.14
|
First
Amendment to Amended and Restated Secured Credit Agreement (incorporated
herein by reference to Exhibit 10.1 of the Registrant’s quarterly report
on Form 10-Q for the period ended March 31, 2001).
|
10.15*
|
Second
Amendment to the 1994 Stock Option Plan (incorporated herein by reference
to Exhibit 10.2 of the Registrant’s quarterly report on Form 10-Q for the
period ended March 31, 2001).
|
10.16
|
Amending
Letter to the Letter Agreement dated December 27, 2000 between Prudential
Steel Ltd. and Royal Bank of Canada (incorporated herein by reference to
Exhibit 10.1 of the Registrant’s quarterly report on Form 10-Q for the
period ended September 30, 2001).
|
10.17
|
Waiver
Letter to the Amended and Restated Secured Credit Agreement among the
Registrant and Harris Trust and Savings Bank as Agent dated as of December
28, 2000 (incorporated herein by reference to Exhibit 10.2 of the
Registrant’s quarterly report on Form 10-Q for the period ended September
30, 2001).
|
10.18
|
Amended
and Restated Credit Agreement dated as of December 31, 2002 by and among
the Registrant and its subsidiaries, on the one hand, and JP Morgan Chase
Bank, CIT Business Credit Canada Inc., General Electric Capital
Corporation, and other financial lenders now or hereinafter a party to the
agreement, on the other hand (incorporated herein by reference to Exhibit
10.1 of the Registrant’s current report on Form 8-K filed on January 3,
2003).
|
10.18.1
|
First
Amendment dated as of February 28, 2003 (incorporated herein by reference
to Exhibit 10.1 of the Registrant’s quarterly report on Form 10-Q for the
period ended June 30, 2003).
|
10.18.2
|
Second
Amendment dated as of June 2, 2003 (incorporated herein by reference to
Exhibit 10.2 of the Registrant’s quarterly report on Form 10-Q for the
period ended June 30, 2003).
|
10.18.3
|
Third
Amendment dated as of September 19, 2003 (incorporated herein by reference
to Exhibit 10.1 of the Registrant’s quarterly report on Form 10-Q for the
period ended September 30, 2003).
|
10.18.4
|
Fourth
Amendment dated as of December 16, 2003 (incorporated herein by reference
to Exhibit 10.27 of the Registrant’s annual report on Form 10-K, as
amended, for the period ended December 31, 2003).
|
10.18.5
|
Fifth
Amendment dated as of March 10, 2004 (incorporated herein by reference to
Exhibit 10.29 of the Registrant’s annual report on Form 10-K, for the
period ended December 31, 2003).
|
10.18.6
|
Sixth
Amendment dated as of April 9, 2004 (incorporated herein by reference to
Exhibit 10.1 of the Registrant’s quarterly report on Form 10-Q, for the
period ended June 30, 2004).
|
EXHIBIT |
||
NUMBER |
DESCRIPTION | |
10.18.7
|
Seventh
Amendment dated as of August 18, 2004 (incorporated herein by reference to
Exhibit 10.1 of the Registrant’s quarterly report on Form 10-Q, for the
period ended September 30, 2004).
| |
10.18.8
|
Eighth
Amendment dated as of December 20, 2004 (incorporated herein by reference
to Exhibit 99.4 of the Registrant’s Amendment No. 2 to registration
statement on Form S-4 as filed on December 23, 2004 (File No.
333-120923).
| |
10.19
|
Collective
Bargaining Agreement between the Registrant and the United Steelworkers of
America, effective as of January 1, 2003 through November 15, 2005
(incorporated herein by reference to Exhibit 10.30 of the Registrant’s
annual report on Form 10-K for the fiscal year ended December 31,
2002).
| |
10.20
|
Collective
Bargaining Agreement between the Registrant and the United Steelworkers of
America, effective as of January 1, 2003 through November 15, 2005
(incorporated herein by reference to Exhibit 10.31 of the Registrant’s
annual report on Form 10-K for the fiscal year ended December 31,
2002).
| |
10.21*
|
Employment
contract between the Registrant and Jim Cowan dated February 20, 2003
(incorporated herein by reference to Exhibit 10.3 of the Registrant’s
quarterly report on Form 10-Q for the period ended March 31,
2003).
| |
10.22*
|
Severance
Agreement dated February 19, 2003, by and among the Registrant and Jim
Cowan (incorporated herein by reference to Exhibit 10.28 of the
Registrant’s annual report on Form 10-K, as amended, for the period ended
December 31, 2003).
| |
10.23*
|
Severance
Agreement, entered into as of May 11, 2004, by and between the Registrant
and Pamela G. Boone (the “Boone Severance Agreement”) (incorporated herein
by reference to Exhibit 10.1 of the Registrant’s current report on Form
8-K filed on January 14, 2005).
| |
10.23.1*
|
Addendum
to the Boone Severance Agreement dated March 13, 2005.
| |
10.24*
|
Agreement
and General Release, entered into as of October 15, 2004, by and between
the Registrant and Gregg Eisenberg.
| |
10.25*
|
Severance
Agreement dated May 11, 2004, by and between the Registrant and Richard W.
Preckel.
| |
12
|
Computation
of Earnings to Fixed Charges.
| |
21
|
Subsidiaries
of the Registrant.
| |
23.1
|
Consent
of Ernst & Young LLP, independent auditors.
| |
31.1
|
Certification
of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a)
of the Securities Exchange Act, as amended.
| |
31.2
|
Certification
of principal financial officer pursuant to Rule 13a-14(a) and Rule
15d-14(a) of the Securities Exchange Act, as amended.
| |
32.1
|
Certificate
(Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002) of Chief Executive Officer.
| |
32.2
|
Certificate
(Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002) of principal financial
officer.
| |
*
|
Management
contract or compensatory plan or arrangement
|