Sunbeam 2001 Annual Report Download - page 19

counted for as a purchase with the purchase
price allocated to the assets purchased and li-
abilities assumed based on their estimated fair
values as of the date of acquisition. These assets
were sold effective November 26, 2001.
On December 21, 1999, the Company ac-
quired a 51 percent equity interest in Microlin,
LLC (‘‘Microlin’’), a developer of proprietary
battery technology. The initial cash outlay for
this investment was $1.5 million, with an agree-
ment to fund working capital needs over the
next several years. This investment was sold
effective November 1, 2001.
Effective May 24, 1999, the Company sold
its plastic packaging product line, which pro-
duced coextruded high-barrier plastic sheet and
containers for the food processing industry, for
$28.7 million in cash. This transaction resulted
in a gain of $19.7 million. Proceeds from the
sale were used for debt repayment. The Com-
pany’s sales from this product line were
$13.0 million in 1999.
Effective April 25, 1999, the Company ac-
quired the net assets of Triangle Plastics, Inc.
and its TriEnda subsidiary (‘‘Triangle Plastics’’),
a manufacturer of heavy gauge industrial ther-
moformed parts for original equipment manu-
facturers in the heavy trucking, agricultural,
portable toilet, recreational and construction
markets, and producer of plastic thermoformed
products for material handling applications,
for $148.0 million in cash plus acquisition costs.
The transaction was accounted for as a pur-
chase with the purchase price allocated to the
assets purchased and liabilities assumed based
on their estimated fair values as of the date of
acquisition. These assets were sold effective No-
vember 26, 2001.
3. Pro Forma Financial Information
The following unaudited pro forma finan-
cial information presents a summary of consoli-
dated results of the Company as if the sale of
the assets of the Triangle, TriEnda and Synergy
World plastic thermoforming operations (as de-
scribed in Note 2 above) had occurred at the
beginning of each period presented. The pro
forma financial information also reflects the
sale of the Company’s interest in Microlin that
became effective November 1, 2001. The pro
forma information assumes the proceeds from
the sale of thermoformed assets and recovery of
income taxes were received at the beginning of
each period, and assumes a 35.0% effective
income tax rate for all periods.
(in thousands, except per
share amounts) 2001 2000
Net sales .................. $241,679 $257,995
Earnings before interest,
taxes and minority
interest ................. 20,530 26,676
Net income ............... 7,260 11,251
Diluted earnings per share . . $ 1.14 $ 1.76
The Company’s pro forma net income ad-
justed to reflect the elimination of all special
charges (credits) and reorganization expenses,
all losses on divestitures of assets, and the write-
off of debt issuance and amendment costs
would have been $12.0 million, or $1.88 per
share, for 2001 and $11.4 million, or $1.78 per
share, for 2000.
4. Business Segment Information
Following the sale of the Triangle, TriEnda
and Synergy World plastic thermoforming as-
sets and the third quarter 2001 appointment of
new executive management, the Company re-
organized its business segments to reflect the
new business and management strategy. Prior
periods have been reclassified to conform to
the current segment definitions.
The Company is now organized into two
distinct segments: Consumer Products and Ma-
terials Based Group. The Company’s operating
segments are managed by the Company’s Chief
Executive Officer and, with respect to the Con-
sumer Products segment, the division presi-
dent for consumer products as well. They are
responsible for the segments’ performance and
are also part of the Company’s operating
decision-making group.
The Consumer Products segment markets
a line of home food preservation products un-
der Ball威, Kerr威and Bernardin威brands. Prod-
ucts include home canning jars which are
sourced from major commercial glass container
manufacturers, home canning metal closures,
and related food products, which are distrib-
uted through a wide variety of retail outlets.
The Materials Based Group provides cast
zinc strip and fabricated zinc products prima-
rily for zinc coinage and industrial applica-
Alltrista
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