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Axiall Reports 2012 Financial Results

In light of these risks, uncertainties, assumptions, and factors, the forward-looking events discussed in this press release may not occur. Other unknown or unpredictable factors could also have a material adverse effect on Axiall’s actual future results, performance, or achievements. For a further discussion of these and other risks and uncertainties applicable to Axiall and its business, see Axiall’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and subsequent filings with 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 press release. Axiall 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.

AXIALL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
       

(In thousands, except share data)
As of December 31,
Assets 2012 2011
Cash and cash equivalents $ 200,314 $ 88,575
Receivables, net of allowance for doubtful accounts of $4,533 at 2012
and $4,225 at 2011 314,880 256,749
Inventories 288,356 287,554
Prepaid expenses and other 14,702 15,750
Deferred income taxes   21,127     14,989  
Total current assets 839,379 663,617
Property, plant and equipment, net 637,712 640,900
Goodwill 217,215 213,608
Intangible assets, net 43,423 46,715
Other assets, net   63,586     79,371  
Total assets $ 1,801,315   $ 1,644,211  
 
Liabilities and Stockholders' Equity
Accounts payable $ 211,224 $ 168,187
Interest payable 18,892 20,931
Income taxes payable 15,120 1,202
Accrued compensation 44,698 19,743

Other accrued liabilities
  61,159     68,825  
Total current liabilities 351,093 278,888
Long-term debt 448,091 497,464
Lease financing obligation 112,269 109,899
Liability for unrecognized income tax benefits 18,576 23,711
Deferred income taxes 177,914 181,465
Other non-current liabilities   89,825     64,120  
Total liabilities   1,197,768     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: 34,546,767 at 2012 and 34,236,402 at 2011
345 342
Additional paid-in capital 487,060 480,530
Accumulated other comprehensive loss, net of tax (21,870 ) (18,151 )
Retained earnings   138,012     25,943  
Total stockholders' equity   603,547     488,664  
Total liabilities and stockholders' equity $ 1,801,315   $ 1,644,211  
 
 
AXIALL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
                 
Three Months Ended Years Ended
December 31, December 31,

(In thousands, except per share data)
2012 2011 2012 2011
Net sales $ 784,692 $ 673,600 $ 3,325,836 $ 3,222,884
Operating costs and expenses:
Cost of sales 654,855 626,863 2,865,370 2,919,625
Selling, general and administrative expenses 50,566 38,141 203,497 168,221
Long-lived asset impairment charges (recoveries), net - 8,318 (824 ) 8,318
Transaction related costs, restructuring and other, net 11,638 2,245 38,833 3,271
Gain on sale of assets   -     -     (19,250 )   (1,150 )
Total operating costs and expenses   717,059     675,567     3,087,626     3,098,285  
Operating income (loss) 67,633 (1,967 ) 238,210 124,599
Interest expense (13,702 ) (15,357 ) (57,517 ) (65,645 )
Loss on redemption and other debt costs (2,720 ) (3,808 ) (2,720 ) (4,908 )
Foreign exchange gain (loss) 33 (6 ) (562 ) (786 )
Interest income   131     84     373     280  
Income before income taxes 51,375 (21,054 ) 177,784 53,540
Provision for (benefit from) income taxes   19,082     (17,739 )   57,223     (4,217 )
Net Income (loss) $ 32,293   $ (3,315 ) $ 120,561   $ 57,757  
 
Earnings (loss) per share:
Basic $ 0.93 $ (0.10 ) $ 3.47 $ 1.66
Diluted $ 0.92 $ (0.10 ) $ 3.45 $ 1.66
 
Weighted average common shares:
Basic 34,577 34,236 34,502 34,086
Diluted 34,982 34,236 34,774 34,122
 
 
AXIALL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
               
Three Months Ended Twelve Months Ended
December 31, December 31,

(In thousands)
2012 2011 2012 2011
Operating activities:
Net income (loss) $ 32,294 $ (3,315 ) $ 120,561 $ 57,757
Adjustments to reconcile net income to net cash provided

by operating activities:
Depreciation and amortization 21,894 23,214 89,857 101,522
Loss on redemption and other debt costs 2,720 3,808 2,720 4,908
Foreign exchange loss (gain) 86 (120 ) (447 ) 604
Deferred income taxes (2,167 ) (8,137 ) (8,463 ) (3,762 )
 
Excess tax benefits from share-based payment arrangements 553 - (2,747 ) (1,371 )
Long-lived asset impairment charges (recoveries), net - 8,318 (824 ) 8,318
Stock based compensation 1,404 1,173 9,073 6,658
Gain on sale of assets - - (19,250 ) (1,150 )
Other non-cash items 4,885 (3,736 ) 9,453 (2,802 )
Change in operating assets, liabilities and other, net   103,873     141,901     31,313     16,767  
Net cash provided by operating activities   165,542     163,106     231,246     187,449  
Investing activities:
Capital expenditures (24,519 ) (22,134 ) (80,338 ) (66,382 )
Proceeds from sale of assets 42 917 23,621 1,243
Acquisition, net of cash acquired   -     -     -     (71,371 )
Net cash used in investing activities   (24,477 )   (21,217 )   (56,717 )   (136,510 )
Financing activities:
Net change in ABL revolver - (36,503 ) - -
Long-term debt payments (51,500 ) (62,136 ) (51,500 ) (85,057 )
Fees paid related to financing activities (889 ) (531 ) (1,514 ) (2,011 )
Excess tax benefits from share-based payment

arrangements
(553 ) - 2,747 1,371
Dividends paid (5,540 ) - (8,318 ) -
Stock compensation plan activity   (137 )   -     (5,232 )   39  
Net cash used in financing activities (58,619 ) (99,170 ) (63,817 ) (85,658 )
Effect of exchange rate changes on cash and cash

equivalents
  (601 )   546     1,027     536  
Net change in cash and cash equivalents 81,845 43,265 111,739 (34,183 )
Cash and cash equivalents at beginning of year   118,469     45,310     88,575     122,758  
Cash and cash equivalents at end of year $ 200,314   $ 88,575   $ 200,314   $ 88,575  
 
 

AXIALL CORPORATION AND SUBSIDIARIES
SEGMENT INFORMATION
(Unaudited)
                   
Three Months Ended For the Twelve Months Ended
December 31, December 31,

(In thousands)
2012 2011 2012 2011
 
Segment net sales:
Chlorovinyls $ 346,433 $ 321,501 $ 1,344,908 $ 1,318,678
Building Products 190,812 189,704 876,638 883,899
Aromatics   247,447     162,395     1,104,290     1,020,307  
Net Sales $ 784,692   $ 673,600   $ 3,325,836   $ 3,222,884  
 
 
Segment operating income (loss):
Chlorovinyls $ 77,046 $ 21,477 $ 237,214

4)

 
$ 143,304

7)
Building Products (5,269 )

1)

 
(11,638 )

3)

 
18,447

5)

 
7,500

8)
Aromatics 18,331 (3,653 ) 64,569 10,370
Unallocated corporate   (22,475 )

2)

 
  (8,153 )   (82,020 )

6)

 
  (36,575 )
Total operating income (loss) $ 67,633   $ (1,967 ) $ 238,210   $ 124,599  
1)   Includes $1.0 million of restructuring costs.
2) Includes $10.7 million of transaction related costs.
3) Includes $2.4 million of restructuring costs and $8.3 million of asset impairment charges.
4) Includes $19.3 million gain on sale of assets, offset by $1.3 million of restructuring costs.
5) Includes $1.5 million of restructuring costs, offset by $0.8 million of long-lived asset impairment recoveries.
6) Includes $35.8 million of transaction related costs.
7) Includes $1.2 million gain related to the sale of assets.
8) Includes $2.7 million of restructuring costs, $8.3 million of asset impairment charges, $3.0 million of related costs and inventory purchase accounting adjustments, partially offset by $3.6 million reversal of non-income tax reserve.

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