Cambridge-Lee Holdings Consolidated Results of Operations for Q1 2016

By Business Wire News June 3, 2016

READING, Pa.

Cambridge-Lee Holdings, Inc., has announced its unaudited consolidated results for the first quarter of 2016.

CAMBRIDGE-LEE HOLDINGS, INC. AND SUBSIDIARIES
(A Wholly Owned Subsidiary of Tubo de Pasteje S.A. de C.V.)

CONSOLIDATED BALANCE SHEETS
As of March 31, 2015 and March 31, 2016

Figures in US Dollars		12/31/2015			3/31/2015			3/31/2016
Assets
Current Assets:
Cash and cash equivalents	$	2,062,000		$	2,267,000		$	3,006,000
Accounts Receivable – Net		30,963,000			47,954,000			43,341,000
Accounts Receivable – Affiliates		3,701,000			3,231,000			1,419,000
Accounts Receivable – Refundable Income Tax		5,793,000			0			2,011,000
Other Receivables		255,000			6,067,000			360,000
Inventories — net		51,646,000			61,279,000			47,754,000
Other current assets		4,474,000			6,349,000			4,358,000
Deferred income taxes		0			1,980,000			0
Total current assets		98,894,000			129,127,000			102,249,000

Restricted Cash
Note Receivable — Affiliate		8,990,000			8,990,000			8,990,000
Property, Plant, and Equipment — Net		80,240,000			84,436,000			78,089,000
Deferred Financing Fees — Net		1,487,000			1,749,000			0
Other Long-Term Assets		1,766,000			411,000			2,993,000
Total	$	191,377,000		$	224,713,000		$	192,321,000

Liabilities and Shareholders’ Equity
Current Liabilities:
Current portion of long-term debt		852,000			178,000			848,000
Revolving credit facility		6,500,000			22,663,000			11,000,000
Trade Accounts Payable		10,138,000			18,367,000			12,941,000
Affiliates Payable		168,000			515,000			(2,033,000	)
Accrued expenses and taxes other than income tax		11,383,000			15,077,000			13,925,000
Income taxes payable		299,000			(391,000	)		(3,646,000	)
Total current liabilities		29,340,000			56,409,000			33,035,000

Long-Term Debt		38,399,000			39,737,000			38,189,000
Long-Term Obligations — Other		2,134,000			1,610,000			1,960,000
Deferred Revenue		597,000						.
Deferred Income Taxes		4,994,000			7,129,000			4,994,000
Total liabilities		75,464,000			104,885,000			78,178,000

SHAREHOLDERS’ EQUITY:
Common stock, no par — authorized, 1,500 shares;
issued and outstanding, 1,000 shares		1,000			1,000			1,000
Additional paid-in capital		84,205,000			84,205,000			84,205,000
Investment in Parent		(60,000,000	)		(60,000,000	)		(60,000,000	)
Excess of liabilities assumed over book value
of assets transferred		(17,514,000	)		(17,514,000	)		(17,514,000	)
Retained earnings		106,630,000			110,176,000			104,913,000
Accumulated other comprehensive income (loss)		(2,749,000	)		(2,499,000	)		(2,749,000	)
Noncontrolling owner’s interest		5,340,000			5,458,000			5,287,000
Total shareholders’ equity		115,913,000			119,827,000			114,143,000

TOTAL	$	191,377,000		$	224,712,000		$	192,321,000

CAMBRIDGE-LEE HOLDINGS, INC. AND SUBSIDIARIES
(A Wholly Owned Subsidiary of Tubo de Pasteje S.A. de C.V.)

CONSOLIDATED STATEMENTS OF OPERATIONS
As of March 31, 2015 and March 31, 2016

Figures in US Dollars		12/31/2015			3/31/2015			3/31/2016

Revenues:
Net Sales	$	374,201,000		$	96,900,000		$	83,266,000
Cost of Sales		343,384,000			88,763,000			77,288,000
Gross Income		30,817,000			8,137,000			5,978,000

Selling, General and Administrative Expenses		35,783,000			8,894,000			8,491,000

Operating Income		(4,966,000	)		(757,000	)		(2,513,000	)

Other Expense:
Interest — net		(2,312,000	)		(572,000	)		(478,000	)
Other — net		130,000			(1,000	)		55,000
		(7,148,000	)		(1,330,000	)		(2,936,000	)
Total Other Expense		(2,182,000	)		(573,000	)		(423,000	)

Income From Continuing Operations Before Provision for Income Taxes		(7,148,000	)		(1,330,000	)		(2,937,000	)

Provision for Income Taxes		(2,661,000	)		(497,000	)		(1,165,000	)

Net Income from Continuing Operations		(4,487,000	)		(833,000	)		(1,772,000	)

COMPREHENSIVE (LOSS) INCOME—Pension unrecognized		(258,000	)
gain (loss) adjustment—net of tax benefit of $161,000
for 2015 and tax benefit of $675,000 for 2014


Net Income		(4,745,000	)		(833,000	)		(1,772,000	)

Net Income Attributable to Noncontrolling Interest		(142,000	)		(25,000	)		(53,000	)

Net Income Attributable to Cambridge-Lee Holdings, Inc.		(4,603,000	)		(808,000	)		(1,719,000	)

CAMBRIDGE-LEE HOLDINGS, INC. AND SUBSIDIARIES
(A Wholly Owned Subsidiary of Tubo de Pasteje S.A. de C.V.)

STATEMENT OF CASH FLOW

		Figures in US Dollars	March 31, 2016
OPERATING ACTIVITIES:
Net income (loss)			(1,772,000)
Less Net income (loss) from disposition
Net income (loss)			(1,772,000)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:
	Noncontrolling interest		–
	Depreciation and amortization		2,152,000
	Allowance for doubtful accounts receivable		(339,000)
	Net periodic pension (benefit) cost		–
	(Gain) loss on sale of property, plant and equipment		–

Changes in assets and liabilities which provided (used) cash:			(11,956,000)
	(Increase) decrease in accounts and notes receivable		3,892,000
	(Increase) decrease in inventories		270,000
	Increase (decrease) in other long term obligations		4,576,000
	Increase (decrease) in accts payable, accrued exp. & amounts due to affiliates		(163,000)

		Total adjustments	(1,568,000)

		Net cash provided by (used in) operating activities	(3,340,000)

CASH FLOWS FROM INVESTING ACTIVITIES:
	Purchases of property, plant and equipment		–
	Gain on disposition		–
	Reduction of CIP down payment		–
	Change in restricted cash balance		–

		Net cash provided by (used in) investing activities	–

CASH FLOWS FROM FINANCING ACTIVITIES:
	Increase (decrease) in revolving credit facility		4,495,000
	Borrowings under long term debt arrangements		–
	Principal payments under long term debt arrangements		–
	Proceeds from long term debt		(210,000)
	Principal payments on long-term debt		–
	Payment under capital lease obligations		–
		Net cash provided by (used in) financing activities	4,285,000

EFFECT OF EXCHANGE RATE CHANGES ON CASH

Net increase in cash and cash equivalents			944,000
Cash and cash equivalents at beginning of period			2,062,000

Cash and cash equivalents at end of period			3,006,000