This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Georgia Gulf Reports Third-Quarter 2012 Financial Results

In light of these risks, uncertainties, assumptions, and factors, the forward-looking events discussed in this communication may not occur. Other unknown or unpredictable factors could also have a material adverse effect on Georgia Gulf’s actual future results, performance, or achievements. For a further discussion of these and other risks and uncertainties applicable to Georgia Gulf and its business, see Georgia Gulf's Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and subsequent filings with the Securities and Exchange Commission (the “SEC”). As a result of the foregoing, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this communication. Georgia Gulf does not undertake, and expressly disclaims, any duty to update any forward-looking statement whether as a result of new information, future events, or changes in its expectations, except as required by law.

Additional Information and Where to Find it

This communication does not constitute an offer to buy, or solicitation of an offer to sell, any securities of Georgia Gulf, and no offer or sale of such securities will be made in any jurisdiction where it would be unlawful to do so. In connection with the Transaction, Georgia Gulf has filed with the Securities and Exchange Commission (“SEC”) a preliminary proxy statement on Schedule 14A and a registration statement on Form S-4 relating to the Transaction. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT AND THE PROSPECTUS FORMING PART OF THE REGISTRATION STATEMENT, AND ANY OTHER RELEVANT DOCUMENTS BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT GEORGIA GULF, PPG’S COMMODITY CHEMICALS BUSINESS AND THE TRANSACTION. Investors and security holders will be able to obtain these materials and other documents filed with the SEC free of charge at the SEC’s website, www.sec.gov. In addition, copies of the registration statement and proxy statement may be obtained free of charge by accessing Georgia Gulf’s website at www.GGC.com by clicking on the “Investors” link and then clicking on the “SEC Filings” link, or upon written request to Georgia Gulf at 115 Perimeter Center Place, Suite 460, Atlanta, Georgia 30346, Attention: Investor Relations. Shareholders may also read and copy any reports, statements and other information filed by Georgia Gulf with the SEC, at the SEC public reference room at 100 F Street, N.E., Washington D.C. 20549. Please call the SEC at 1-800-SEC-0330 or visit the SEC’s website for further information on its public reference room.

Participants in the Solicitation

Georgia Gulf, PPG, and certain of their respective directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from shareholders in respect of the Transaction under the rules of the SEC. Information regarding Georgia Gulf’s directors and executive officers is available in its 2011 Annual Report on Form 10-K filed with the SEC on February 24, 2012, and in its definitive proxy statement filed with the SEC on April 16, 2012, in connection with its 2012 annual meeting of stockholders. Information regarding PPG directors and executive officers is available in its 2011 Annual Report on Form 10-K filed with the SEC on February 16, 2012, and in its definitive proxy statement filed with the SEC on March 8, 2012, in connection with its 2012 annual meeting of stockholders. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise is contained in the registration statement and the prospectus that is a part thereof and the proxy statement and other relevant materials filed with the SEC.

GEORGIA GULF CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
       
September 30, December 31,
(In thousands, except share data) 2012 2011
Assets
Cash and cash equivalents $118,469 $88,575
Receivables, net of allowance for doubtful accounts of $4,066 at 2012 and $4,225 at 2011 389,018 256,749
Inventories 297,544 287,554
Prepaid expenses and other 11,092 15,750
Deferred income taxes 17,367 14,989
Total current assets 833,490 663,617
Property, plant and equipment, net 636,832 640,900
Goodwill 218,676 213,608
Intangible assets, net 44,292 46,715
Deferred income taxes 4,145 3,770
Other assets, net 63,596 75,601
Total assets $1,801,031 $1,644,211
Liabilities and Stockholders’ Equity
Current portion of long-term debt $49,841 $—
Accounts payable 213,433 168,187
Interest payable 9,650 20,931
Income taxes payable 14,832 1,202
Accrued compensation 33,749 19,743
Other accrued liabilities 64,356 68,825
Total current liabilities 385,861 278,888
Long-term debt 447,929 497,464
Lease financing obligation 113,773 109,899
Liability for unrecognized income tax benefits 18,755 23,711
Deferred income taxes 184,280 181,465
Other non-current liabilities 65,333 64,120
Total liabilities 1,215,931 1,155,547
Commitments and contingencies
Stockholders’ equity:
Preferred stock—$0.01 par value; 75,000,000 shares authorized; no shares issued
Common stock—$0.01 par value; 100,000,000 shares authorized; issued and outstanding: 34,538,268 at 2012 and 34,236,402 at 2011 345 342
Additional paid-in capital 486,384 480,530
Accumulated other comprehensive loss, net of tax (10,183) (18,151)
Retained earnings 108,554 25,943
Total stockholders’ equity 585,100 488,664
Total liabilities and stockholders’ equity $1,801,031 $1,644,211
 
 
GEORGIA GULF CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
       
Three Months Ended Nine Months Ended
September 30, September 30,
(In thousands, except per share data) 2012     2011 2012     2011
Net sales $813,502 $929,636 $2,541,144 $2,549,284
Operating costs and expenses:
Cost of sales 673,178 831,808 2,210,515 2,292,761
Selling, general and administrative expenses 53,476 43,412 152,932 130,080
Gain on sale of assets (1,864) (19,250) (1,150)
Transaction related costs, restructuring and other, net 14,790 1 26,370 1,027
Total operating costs and expenses 739,580 875,221 2,370,567 2,422,718
Operating income 73,922 54,415 170,577 126,566
Interest expense, net (14,638) (16,703) (43,574) (50,092)
Loss on early redemption of debt (1,100)
Foreign exchange (loss) gain (192) 160 (594) (780)
Income before income taxes 59,092 37,872 126,409 74,594
Provision for income taxes 19,756 3,514 38,141 13,521
Net income $39,336 $34,358 $88,268 $61,073
Earnings per share:
Basic $1.13 $0.99 $2.54 $1.75
Diluted $1.12 $0.99 $2.53 $1.75
 
Dividends declared per share of common stock $0.08 $- $0.16 $-
 
Weighted average common shares:
Basic 34,549 34,165 34,413 34,036
Diluted 34,882 34,211 34,641 34,065
 
 
GEORGIA GULF CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
       
Three Months Ended Nine Months Ended
September 30, September 30,
(In thousands) 2012     2011 2012     2011
Cash flows from operating activities:
Net income $39,336 $34,357 $88,268 $61,073
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 22,988 26,463 67,963 78,305
Loss on early redemption of debt 1,100
Foreign exchange (gain) loss (556) 809 (533) 724
Deferred income taxes (201) (507) (3,013) 4,686
Excess tax benefits from share- based payment arrangements (3,196) (3,490) (3,301) (3,555)
Share-based compensation 1,593 1,180 7,669 5,485
Gain on sale of assets (1,864) (19,250) (1,150)
Other non-cash items 1,902 (3,710) 3,745 (1,328)
Change in operating assets, liabilities and other 20,690 37,541 (75,844) (125,135)
Net cash provided by operating activities 80,692 92,643 65,704 20,205
Cash flows from investing activities:
Capital expenditures (15,150) (20,555) (55,819) (44,247)
Proceeds from sale of property, plant and equipment 1,864 174 23,579 326
Acquisition, net of cash acquired 252 (71,371)
Net cash used in investing activities (13,286) (20,129) (32,240) (115,292)
Cash flows from financing activities:
Repayments on asset based lending revolver (211,921) (183,400) (415,567)
Borrowings on asset based lending revolver 138,300 183,400 452,505
Repayment of long-term debt (22,917)
Fees paid related to financing activities (625) (625) (1,480)
Excess tax benefits from share- based payment arrangements 3,196 3,490 3,301 3,555
Stock compensation plan activity (4,724) (5,096) 39
Dividends Paid (2,778) (2,778)
Net cash (used in) provided by financing activities (4,931) (70,131) (5,198) 16,135
Effect of exchange rate changes on cash and cash equivalents 605 1,241 1,628 1,504
Net change in cash and cash equivalents 63,080 3,624 29,894 (77,448)
Cash and cash equivalents at beginning of period 55,389 41,686 88,575 122,758
Cash and cash equivalents at end of period $118,469 $45,310 $118,469 $45,310
 
 

GEORGIA GULF CORPORATION AND SUBSIDIARIES

SEGMENT INFORMATION
(Unaudited)
                         
Three Months Ended Nine Months Ended
September 30, September 30,

(In Thousands)

2012 2011 2012 2011
 
Segment net sales:
Chlorovinyls $ 329,101 $ 347,195 $ 998,475 $ 997,177
Building Products 246,214 262,535 685,826 694,195
Aromatics   238,187     319,906     856,843     857,912  
Net Sales $ 813,502   $ 929,636   $ 2,541,144   $ 2,549,284  
 
 
Segment operating income (loss):
Chlorovinyls $ 73,791 $ 46,261 2) $ 160,168 3) $ 121,826 5)
Building Products 14,711 14,313 23,715 19,138 6)
Aromatics 11,074 1,689 46,239 14,024
Unallocated corporate   (25,654 ) 1)   (7,848 )   (59,545 ) 4)   (28,422 )
Total operating income $ 73,922   $ 54,415   $ 170,577   $ 126,566  
1)   Includes $13.1 million of transaction related costs
2) Includes $1.9 million gain on sale of asset, offset by $1.3 million restructuring charge
3) Includes gain on sale of assets of $19.3 million
4) Includes $25.1 million of transaction related costs
5) Includes $0.8 million reversal of non-income tax reserve and $1.2 million gain on the sale of asset
6) Includes $3.0 million of transaction related costs and inventory purchase accounting adjustment, offset by $3.6 million reversal of non-income tax reserve.




6 of 7

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,880.36 -31.75 -0.19%
S&P 500 1,970.07 +0.12 0.01%
NASDAQ 4,462.9020 +20.2040 0.45%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs