PRESTIGE
BRANDS HOLDINGS, INC.
|
||||
|
|
|
|
|
Delaware
|
|
20-1297589
|
|
001-32433
|
(State
of Incorporation)
|
|
(I.R.S.
Employer Identification No.)
|
|
(Commission
File Number)
|
|
|
|
|
|
PRESTIGE
BRANDS INTERNATIONAL, LLC
|
||||
|
|
|
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|
Delaware
|
|
20-0941337
|
|
333-11715218-18
|
(State
of Incorporation)
|
|
(I.R.S.
Employer Identification No.)
|
|
(Commission
File Number)
|
(Exact
name of Registrants as specified in their
charters)
|
90
North Broadway
Irvington,
New York 10533
|
|
(914)
524-6810
|
(Address
of Principal Executive Offices)
|
|
(Registrants’
telephone number, including area
code)
|
Title
of each class:
|
|
Name
on each exchange on which registered:
|
Common
Stock, Prestige Brands Holdings, Inc.,
par
value $.01 per share
|
|
New
York Stock Exchange
|
Part I
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|
|
|
|
|
Item
1.
|
Business
|
2
|
Item
2.
|
Properties
|
17
|
Item
3.
|
Legal
Proceedings
|
17
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
18
|
|
|
|
Part II
|
|
|
|
|
|
Item
5.
|
Market
for the Registrants’ Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
18
|
Item
6.
|
Selected
Financial Data
|
19
|
Item
7.
|
Management’s
Discussion and Analysis of Financial Condition and Results Of
Operations
|
22
|
Item
7A.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
35
|
Item
8.
|
Financial
Statements and Supplementary Data
|
35
|
Item
9.
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
36
|
Item
9A.
|
Controls
and Procedures
|
36
|
Item
9B.
|
Other
Information
|
37
|
|
|
|
Part III
|
|
|
|
|
|
Item
10.
|
Directors
and Executive Officers of the Registrant
|
38
|
Item
11.
|
Executive
Compensation
|
38
|
Item
12.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
38
|
Item
13.
|
Certain
Relationships and Related Transactions
|
38
|
Item
14.
|
Principal
Accountant Fees and Services
|
38
|
|
|
|
Part IV
|
|
|
|
|
|
Item
15.
|
Exhibits
and Financial Statement Schedules
|
39
|
|
Signatures
|
45
|
Major Brands
|
|
Market
Position(1)
|
|
Market Segment
|
|
Market
Share(1)
|
|
ACV(1)
|
|
|
|
|
|
|
|
(%)
|
|
(%)
|
|
Over-the-Counter
Drug:
|
|
|
|
|
|
|
|
|
|
Chloraseptic
|
|
#1
|
|
Liquid
Sore Throat Relief
|
|
49.4
|
%
|
96
|
%
|
Clear
eyes
|
|
#2
|
|
Redness
Relief
|
|
16.7
|
|
92
|
|
Compound
W
|
|
#2
|
|
Wart
Removal
|
|
33.7
|
|
88
|
|
Murine
|
|
#3
|
|
Personal
Ear Care
|
|
16.0
|
|
63
|
|
Little
Remedies(2)
|
|
N/A
|
|
|
|
N/A
|
|
N/A
|
|
New-Skin
|
|
#1
|
|
Liquid
Bandages
|
|
37.7
|
|
89
|
|
Household
Cleaning:
|
|
|
|
|
|
|
|
|
|
Comet
|
|
#2
|
|
Abrasive
Tub and Tile Cleaner
|
|
29.9
|
|
95
|
|
Spic
and Span
|
|
#6
|
|
All
Purpose Cleaner
|
|
2.6
|
|
63
|
|
Personal
Care:
|
|
|
|
|
|
|
|
|
|
Cutex
|
|
#1
|
|
Nail
Polish Remover
|
|
29.0
|
|
91
|
|
Denorex
|
|
#4
|
|
Medicated
Shampoo
|
|
10.0
|
|
74
|
|
|
Percentage of
Gross
Sales to
Top 50 Customers(1)
|
|||||||||
Channel of Distribution
|
2003
|
2004
|
2005
|
|||||||
Mass
|
36.2
|
%
|
37.8
|
%
|
39.1
|
%
|
||||
Food
|
28.8
|
26.1
|
23.0
|
|||||||
Drug
|
23.1
|
23.4
|
23.9
|
|||||||
Dollar
|
5.9
|
7.2
|
9.4
|
|||||||
Club
|
5.6
|
4.6
|
2.8
|
|||||||
Other
|
0.4
|
0.9
|
1.8
|
Channel
of Distribution
|
|
Customers
|
Mass
|
|
Kmart
|
|
|
Meijer
|
|
|
Target
|
|
|
Wal-Mart
|
Drug
|
|
CVS
|
|
|
Rite
Aid
|
|
|
Walgreens
|
Food
|
|
Ahold
|
|
|
Albertsons
|
|
|
Kroger
|
|
|
Publix
|
|
|
Safeway
|
|
|
Supervalu
|
Dollar
|
|
Dollar
General
|
|
|
Family
Dollar
|
|
|
Dollar
Tree
|
Club
|
|
Costco
|
|
|
Sam’s
Club
|
|
|
BJ’s
Wholesale Club
|
Fiscal Year Ended March 31,
|
|||||||||||||
2001
|
2002
|
||||||||||||
(In
thousands, except per share data)
|
(predecessor basis)
|
||||||||||||
|
(As
Previously Reported)
|
(As
Restated)
|
|
(As
Previously Reported)
|
|
(As
Restated)
|
|
||||||
Income
Statement Data:
|
|||||||||||||
Total
revenues
|
$
|
8,655
|
$
|
7,475
|
$
|
46,201
|
$
|
46,253
|
|||||
Cost
of sales
|
3,075
|
2,656
|
18,699
|
18,735
|
|||||||||
Gross
profit
|
5,580
|
4,819
|
27,502
|
27,518
|
|||||||||
Advertising
and promotion expenses
|
149
|
125
|
5,230
|
5,205
|
|||||||||
Depreciation
and amortization expense
|
305
|
305
|
3,992
|
3,992
|
|||||||||
General
and administrative expenses
|
560
|
560
|
8,576
|
8,576
|
|||||||||
Interest
expense, net
|
2,051
|
2,051
|
8,766
|
8,766
|
|||||||||
Other
expense
|
124
|
124
|
—
|
—
|
|||||||||
Income
from continuing operations before taxes
|
2,391
|
1,654
|
938
|
979
|
|||||||||
Provision/(benefit)
for income taxes
|
(77
|
)
|
(365
|
)
|
311
|
368
|
|||||||
Income
from continuing operations
|
2,468
|
2,019
|
627
|
611
|
|||||||||
Income/(loss)
from discontinued operations
|
60
|
60
|
(67
|
)
|
(66
|
)
|
|||||||
Cumulative
effect of change in accounting principle
|
—
|
—
|
—
|
—
|
|||||||||
Net
income/(loss)
|
$
|
2,528
|
$
|
2,079
|
$
|
560
|
$
|
545
|
|||||
Other
Financial Data:
|
|||||||||||||
Capital
expenditures
|
$
|
123
|
$
|
123
|
$
|
95
|
$
|
95
|
|||||
Cash
provided by (used in):
|
|||||||||||||
Operating
activities
|
1,978
|
1,978
|
3,940
|
3,940
|
|||||||||
Investing
activities
|
(37,542
|
)
|
(37,542
|
)
|
(4,412
|
)
|
(4,412
|
)
|
|||||
Financing
activities
|
36,491
|
36,491
|
5,526
|
5,526
|
|||||||||
Balance
Sheet Data (at period end):
|
|||||||||||||
Cash
and cash equivalents
|
$
|
2,830
|
$
|
2,830
|
$
|
7,884
|
$
|
7,884
|
|||||
Total
assets
|
151,292
|
150,531
|
174,783
|
174,039
|
|||||||||
Total
long term debt, including current maturities
|
80,918
|
80,918
|
93,530
|
93,530
|
|||||||||
Members’/shareholders’
equity
|
46,030
|
45,580
|
59,201
|
58,737
|
Year Ended
March 31,
|
April 1, 2003
to February 5,
|
February 6,
2004
to March 31,
|
Fiscal Year
Ended
March 31,
|
|||||||||||
In
thousands, except per share data)
|
2003
|
2004
|
2004
|
2005
|
||||||||||
(predecessor basis)
|
(successor basis)
|
|||||||||||||
Income
Statement Data:
|
(Restated)
|
(Restated)
|
||||||||||||
Total
revenues
|
|
|
$
|
71,734
|
|
$
68,402
|
|
$
|
16,876
|
|
$
|
289,069
|
|
|
Cost
of sales (1)
|
|
|
27,017
|
|
26,855
|
|
9,351
|
|
139,009
|
|
||||
Gross
profit
|
|
|
44,717
|
|
41,547
|
|
7,525
|
|
150,060
|
|
||||
Advertising
and promotion expenses
|
|
|
11,116
|
|
10,061
|
|
1,267
|
|
29,697
|
|
||||
Depreciation
and amortization expense
|
|
|
5,274
|
|
4,498
|
|
931
|
|
9,800
|
|
||||
General
and administrative expenses
|
|
|
12,075
|
|
12,068
|
|
1,649
|
|
20,198
|
|
||||
Interest
expense, net
|
|
|
9,747
|
|
8,157
|
|
1,725
|
|
44,726
|
|
||||
Other
expense (2)
|
|
|
685
|
|
1,404
|
|
—
|
|
26,863
|
|
||||
Income
from continuing operations before taxes
|
|
|
5,820
|
|
5,359
|
|
1,953
|
|
18,776
|
|
||||
Provision/(benefit)
for income taxes
|
|
|
3,287
|
|
2,214
|
|
724
|
|
8,556
|
|
||||
Income
from continuing operations
|
|
|
2,533
|
|
3,145
|
|
1,229
|
|
10,220
|
|
||||
Income/(loss)
from discontinued operations
|
|
(5,644
|
) |
—
|
|
—
|
|
—
|
|
|||||
Cumulative
effect of change in accounting principle
|
|
|
(11,785
|
) |
—
|
|
—
|
|
—
|
|
||||
Net
income/(loss)
|
|
|
$
|
(14,896
|
) |
$
3,145
|
|
1,229
|
|
10,220
|
|
|||
Cumulative
preferred dividends on Senior Preferred and Class B Preferred
units
|
|
|
|
|
|
|
(1,390
|
)
|
(25,395
|
)
|
||||
Net
income (loss) available to common shareholders
|
|
|
|
|
|
|
$
|
(161
|
)
|
$
|
(15,175
|
)
|
||
Basic
and diluted net income (loss) per common share
|
|
|
|
|
|
|
$
|
(0.01
|
)
|
$
|
(0.55
|
)
|
||
Basic
and diluted weighted average shares outstanding
|
|
|
|
|
|
|
24,472
|
|
27,546
|
|
||||
Other
Financial Data:
|
|
|
|
|
|
|
|
|
|
|
||||
Capital
expenditures
|
|
|
$
421
|
|
$
66
|
|
$
|
42
|
|
$
|
365
|
|
||
Cash
provided by (used in):
|
|
|
|
|
|
|
|
|
|
|
||||
Operating
activities
|
|
|
12,519
|
|
7,843
|
|
(1,706
|
)
|
51,042
|
|
||||
Investing
activities
|
|
(2,165
|
) |
(576
|
) |
(166,874
|
)
|
(425,844
|
)
|
|||||
Financing
activities
|
|
|
(14,708
|
) |
(8,629
|
) |
171,973
|
|
376,743
|
|
||||
Balance
Sheet Data (at period end):
|
|
|
|
|
|
|
|
|
|
|
||||
Cash
and cash equivalents
|
|
|
$
3,530
|
|
$ 2,868
|
|
$
|
3,393
|
|
$
|
5,334
|
|
||
Total
assets
|
|
|
142,056
|
|
145,130
|
|
325,358
|
|
996,600
|
|
||||
Total
long term debt, including current maturities
|
|
|
81,866
|
|
71,469
|
|
148,694
|
|
495,360
|
|
||||
Members’/shareholders’
equity
|
|
|
43,858
|
|
50,122
|
|
125,948
|
|
382,047
|
|
|
|
Fiscal year ended
March 31
|
|
|||||||
|
|
2005
|
|
2004
|
|
2004
|
|
|||
|
|
(successor basis)
|
|
(combined basis(1))
|
|
(pro forma basis(2))
|
|
|||
(Unaudited)
|
|
(Restated)
|
|
(Restated)
|
|
(Restated)
|
|
|||
Net
Sales
|
|
|
|
|
|
|
|
|||
Over-the-counter
drug
|
|
$
|
159,010
|
|
$
|
55,000
|
|
$
|
137,758
|
|
Personal
care
|
|
32,162
|
|
28,496
|
|
34,863
|
|
|||
Household
cleaning
|
|
97,897
|
|
1,395
|
|
96,170
|
|
|||
Other
|
|
—
|
|
387
|
|
387
|
|
|||
Total
net sales
|
|
$
|
289,069
|
|
$
|
85,278
|
|
$
|
269,178
|
|
|
|
|
|
|
|
|
|
|||
Gross
Profit
|
|
|
|
|
|
|
|
|||
Over-the-counter
drug
|
|
$
|
98,440
|
|
$
|
34,133
|
|
$
|
86,959
|
|
Personal
care
|
|
15,762
|
|
14,114
|
|
16,804
|
|
|||
Household
cleaning
|
|
35,858
|
|
438
|
|
35,815
|
|
|||
Other
|
|
—
|
|
387
|
|
387
|
|
|||
Total
gross profit
|
|
$
|
150,060
|
|
$
|
49,072
|
|
$
|
139,965
|
|
|
|
|
|
|
|
|
|
|||
Contribution
Margin
|
|
|
|
|
|
|
|
|||
Over-the-counter
drug
|
|
$
|
79,897
|
|
$
|
28,208
|
|
$
|
70,113
|
|
Personal
care
|
|
10,264
|
|
8,757
|
|
10,315
|
|
|||
Household
cleaning
|
|
30,202
|
|
392
|
|
25,832
|
|
|||
Other
|
|
—
|
|
387
|
|
387
|
|
|||
Total
contribution margin
|
|
$
|
120,363
|
|
$
|
37,744
|
|
$
|
106,647
|
|
|
|
Fiscal year ended
March 31
|
|
||||
Reconciliation of Net Income to Adjusted EBITDA:
|
|
2005
|
|
2004
|
|
||
|
|
(successor basis)
|
|
(combined basis
(1))
|
|
||
|
(Restated)
|
(Restated)
|
|
||||
Net
income
|
|
$
|
10,220
|
|
$
|
4,374
|
|
Interest
expense, net
|
|
44,726
|
|
9,882
|
|
||
Provision
for income taxes
|
|
8,556
|
|
2,938
|
|
||
Depreciation
and amortization
|
|
9,800
|
|
5,429
|
|
||
Loss
on extinguishment of debt
|
|
26,863
|
|
—
|
|
||
Charges
due to inventory step-up
|
|
5,335
|
|
1,805
|
|
||
Other
non-recurring items
|
|
636
|
|
—
|
|
||
Adjusted
EBITDA
|
|
$
|
106,136
|
|
$
|
24,428
|
|
|
|
|
|
|
|
Prestige Holdings
|
|
||||||
|
|
Predecessor
|
|
Period from
|
|
Total for
|
|
||||||
|
|
Fiscal Year Ended
|
|
Period from
|
|
February 6, 2004
|
|
Twelve Months
|
|
||||
|
|
March 31,
|
|
April 1, 2003 to
|
|
to March 31,
|
|
Ended
|
|
||||
|
|
2003
|
|
February 5, 2004
|
|
2004
|
|
March 31, 2004
|
|
||||
(Restated)
|
(Restated)
|
(Restated)
|
(Restated)
|
||||||||||
Net
Sales:
|
|
|
|
|
|
|
|
(unaudited)
|
|
||||
Over-the-Counter
Drug
|
|
$
|
40,330
|
|
$
|
43,712
|
|
$
|
11,288
|
|
$
|
55,000
|
|
Personal
Care
|
|
31,013
|
|
24,357
|
|
4,139
|
|
28,496
|
|
||||
Household
Cleaning
|
|
—
|
|
—
|
|
1,395
|
|
1,395
|
|
||||
Other(1)
|
|
391
|
|
333
|
|
54
|
|
387
|
|
||||
Total
|
|
$
|
71,734
|
|
$
|
68,402
|
|
$
|
16,876
|
|
$
|
85,278
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross
profit:
|
|
|
|
|
|
|
|
|
|
||||
Over-the-Counter
Drug
|
|
$
|
28,113
|
|
$
|
28,620
|
|
$
|
5,513
|
|
$
|
34,133
|
|
Personal
Care
|
|
16,213
|
|
12,594
|
|
1,520
|
|
14,114
|
|
||||
Household
Cleaning
|
|
—
|
|
—
|
|
438
|
|
438
|
|
||||
Other
|
|
391
|
|
333
|
|
54
|
|
387
|
|
||||
Total
|
|
$
|
44,717
|
|
$
|
41,547
|
|
$
|
7,525
|
|
$
|
49,072
|
|
|
|
|
|
|
|
|
|
|
|
||||
Contribution
margin:
|
|
|
|
|
|
|
|
|
|
||||
Over-the-Counter
Drug
|
|
$
|
22,261
|
|
$
|
23,406
|
|
$
|
4,802
|
|
$
|
28,208
|
|
Personal
Care
|
|
10,949
|
|
7,747
|
|
1,010
|
|
8,757
|
|
||||
Household
Cleaning
|
|
—
|
|
—
|
|
392
|
|
392
|
|
||||
Other
|
|
391
|
|
333
|
|
54
|
|
387
|
|
||||
Total
|
|
$
|
33,601
|
|
$
|
31,486
|
|
$
|
6,258
|
|
$
|
37,744
|
|
|
|
Fiscal Year Ended
December 31,
|
|
||||
|
|
2002
|
|
2003
|
|
||
Net
sales:
|
|
|
|
|
|
||
Over-the-Counter Drug
|
|
$
|
26,812
|
|
$
|
83,251
|
|
Personal
Care
|
|
8,384
|
|
6,646
|
|
||
Household
Cleaning
|
|
75,370
|
|
77,173
|
|
||
Total
|
|
$
|
110,566
|
|
$
|
167,070
|
|
|
|
|
|
|
|
||
Gross
profit:
|
|
|
|
|
|
||
Over-the-Counter Drug
|
|
$
|
17,172
|
|
$
|
51,219
|
|
Personal
Care
|
|
2,735
|
|
2,605
|
|
||
Household
Cleaning
|
|
32,211
|
|
30,582
|
|
||
Total
|
|
$
|
52,118
|
|
$
|
84,406
|
|
|
|
|
|
|
|
||
Contribution
margin:
|
|
|
|
|
|
||
Over-the-Counter Drug
|
|
$
|
12,261
|
|
$
|
39,193
|
|
Personal
Care
|
|
902
|
|
1,363
|
|
||
Household
Cleaning
|
|
28,822
|
|
24,325
|
|
||
Total
|
|
$
|
41,985
|
|
$
|
64,881
|
|
|
|
Fiscal Year Ended
|
|
|||||||
|
|
2005
|
|
2004
|
|
2003
|
|
|||
|
|
(Successor
Basis)
|
|
(Combined
Basis
(1))
|
|
(Predecessor
Basis)
|
|
|||
Cash
provided by (used in):
|
|
|
|
|
|
|
|
|||
Operating
activities
|
|
$
|
51,042
|
|
$
|
6,137
|
|
$
|
12,519
|
|
Investing
activities
|
|
(425,844
|
)
|
(167,450
|
)
|
(2,165
|
)
|
|||
Financing
activities
|
|
376,743
|
|
163,344
|
|
(14,708
|
)
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments Due by Period
|
|
||||||||||||||
|
|
|
|
Less than
|
|
1 to 3
|
|
4 to 5
|
|
After 5
|
|
||||||
Contractual Obligations
|
|
Total
|
|
1 Year
|
|
Years
|
|
Years
|
|
Years
|
|
||||||
|
|
(in millions)
|
|
||||||||||||||
Long-term
debt
|
|
$
|
495.4
|
|
$
|
3.7
|
|
$
|
7.5
|
|
$
|
7.5
|
|
$
|
476.7
|
|
|
Interest
on long-term debt(1)
|
|
218.7
|
|
31.7
|
|
62.4
|
|
62.0
|
|
62.6
|
|
||||||
Operating
leases
|
|
1.6
|
|
0.5
|
|
0.7
|
|
0.4
|
|
—
|
|
||||||
Total
contractual cash obligations
|
|
$
|
715.7
|
|
$
|
35.9
|
|
$
|
70.6
|
|
$
|
69.9
|
|
$
|
539.3
|
|
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
|
|
FINANCIAL
STATEMENTS AND SUPPLEMENTARY
DATA
|
|
CHANGES
IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
|
CONTROLS
AND PROCEDURES
|
a) |
The
Company did not maintain effective controls over the completeness
and
accuracy of revenue in accordance with the requirements of SAB No.
104.
Specifically, the Company’s controls failed to ensure that risk of loss
had passed to the customer before revenue was
recognized.
|
b) |
The
Company did not maintain effective controls over the classification
of
promotions and allowances in accordance with the requirements of
EITF
01-09. Specifically, the Company’s controls failed to prevent or detect
the incorrect classification of promotions and allowances as an operating
expense instead of as a reduction of
revenue.
|
c) |
The
Company did not maintain effective controls over the completeness
and
accuracy of deferred income tax balances. Specifically, the Company’s
controls failed to ensure that adjustments to deferred income taxes
for
increases in graduated federal income tax rates were timely recognized
in
the Company’s financial statements.
|
d) |
The
Company did not maintain effective controls over the accuracy of
the
computation of earnings per share. Specifically, the Company’s controls
failed to ensure that unvested restricted shares of common stock
were
properly considered in the computation of earnings per
share.
|
· |
The
Company is enhancing its guidelines and implementing controls in
connection with the issuance of trade promotional allowances.
Additionally, the Company will provide training to employees on the
proper
accounting and documentation policies related to trade promotional
allowances and implement new policies to ensure compliance throughout
the
year.
|
· |
The
Company is taking measures to enhance the controls over the selection,
application and monitoring of its accounting policies to ensure consistent
application of accounting policies that are generally accepted in
the
United States of America. The Company is also integrating reporting
lines,
increasing communication and supervision across operating and accounting
organizations, and increasing the review of existing accounting policies.
Specifically as it relates to the accounting for revenue recognition,
the
Company is changing its controls and accounting policies surrounding
the
review, analysis and recording of shipments and shipping terms with
customers, including the selection and monitoring of appropriate
assumptions and guidelines to be applied during the review and analysis
of
all customer terms. Specifically, the Company is implementing controls
over the accounting, monitoring, and analysis of all customer shipping
terms and conditions to ensure transactions are recorded consistent
with
generally accepted accounting
principles.
|
· |
With
respect to the computation of earnings per share, the Company will
provide
training to employees on the proper accounting related to the proper
treatment of unvested shares in the basic and diluted
computations.
|
OTHER
INFORMATION
|
DIRECTORS
AND EXECUTIVE OFFICERS OF THE
REGISTRANT
|
EXECUTIVE
COMPENSATION
|
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
|
CERTAIN
RELATIONSHIPS AND RELATED
TRANSACTIONS
|
PRINCIPAL
ACCOUNTANT FEES AND
SERVICES
|
EXHIBITS
AND FINANCIAL STATEMENT
SCHEDULES
|
Prestige
Brands Holdings, Inc.
|
Reports
of independent registered public accounting firm (PricewaterhouseCoopers
LLP)
|
Statements
of operations (for year ended March 31, 2005, the period from
February 6, 2004 to March 31, 2004 (successor basis) and the
period from April 1, 2003 to February 5, 2004 and the year ended
March 31, 2003 (predecessor basis))
|
Balance
sheets (as of March 31, 2005 and 2004 (successor
basis))
|
Statements
of cash flows (for year ended March 31, 2005, the period from
February 6, 2004 to March 31, 2004 (successor basis) and the
period from April 1, 2003 to February 5, 2004 and the year ended
March 31, 2003 (predecessor basis))
|
Statements
of members’ and shareholders’ equity and comprehensive income (for year
ended March 31, 2005, the period from February 6, 2004 to
March 31, 2004 (successor basis) and the period from April 1,
2003 to February 5, 2004 and the year ended March 31, 2003
(predecessor basis))
|
Notes
to consolidated financial statements
|
Schedule II—Valuation
and Qualifying Accounts
|
|
Prestige
Brands International, LLC
|
Reports
of independent registered public accounting firm (PricewaterhouseCoopers
LLP)
|
Statements
of operations (for year ended March 31, 2005, the period from
February 6, 2004 to March 31, 2004 (successor basis) and the
period from April 1, 2003 to February 5, 2004 and the year ended
March 31, 2003 (predecessor basis))
|
Balance
sheets (as of March 31, 2005 and 2004 (successor
basis))
|
Statements
of cash flows (for year ended March 31, 2005, the period from
February 6, 2004 to March 31, 2004 (successor basis) and the
period from April 1, 2003 to February 5, 2004 and the year ended
March 31, 2003 (predecessor basis))
|
Statements
of members’ equity and comprehensive income (for year ended March 31,
2005, the period from February 6, 2004 to March 31, 2004
(successor basis) and the period from April 1, 2003 to
February 5, 2004 and the year ended March 31, 2003 (predecessor
basis))
|
Notes
to consolidated financial statements
|
Schedule II—Valuation
and Qualifying Accounts
|
|
Bonita
Bay Holdings, Inc.
|
Report
of independent registered certified public accountants (Ernst &
Young LLP)
|
Consolidated
balance sheets (at December 31, 2003 and 2002)
|
Consolidated
statements of income (for the years ended December 31, 2003, 2002 and
2001)
|
Consolidated
statements of stockholders’ equity (for the years ended December 31,
2003, 2002 and 2001)
|
Consolidated
statements of cash flows (for the years ended December 31, 2003, 2002
and 2001)
|
Notes
to consolidated financial
statements
|
3.1
|
|
Amended
and Restated Certificate of Incorporation of Prestige Brands
Holdings, Inc.*
|
3.2
|
|
Amended
and Restated Bylaws of Prestige Brands
Holdings, Inc.*
|
3.3
|
|
Certificate
of Incorporation of Prestige Brands, Inc.**
|
3.4
|
|
Bylaws
of Prestige Brands, Inc.**
|
3.5
|
|
Certificate
of Formation of Prestige Brands
International, LLC.**
|
3.6
|
|
Limited
Liability Company Agreement of Prestige Brands
International, LLC.**
|
3.7
|
|
Certificate
of Incorporation of Prestige Household
Holdings, Inc.**
|
3.8
|
|
Bylaws
of Prestige Household Holdings, Inc.**
|
3.9
|
|
Certificate
of Incorporation of Prestige Household
Brands, Inc.**
|
3.10
|
|
Bylaws
of Prestige Household Brands, Inc.**
|
3.11
|
|
Certificate
of Incorporation of The Comet Products Corporation.**
|
3.12
|
|
Bylaws
of The Comet Products Corporation.**
|
3.13
|
|
Certificate
of Incorporation of The Spic and Span Company.**
|
3.14
|
|
Bylaws
of The Spic and Span Company.**
|
3.15
|
|
Certificate
of Incorporation of Prestige Products
Holdings, Inc.**
|
3.16
|
|
Bylaws
of Prestige Products Holdings, Inc.**
|
3.17
|
|
Certificate
of Formation of Prestige Acquisition
Holdings, LLC.**
|
3.18
|
|
Limited
Liability Company Agreement of Prestige Acquisition
Holdings, LLC.**
|
3.19
|
|
Articles
of Incorporation of Bonita Bay Holdings, Inc.**
|
3.20
|
|
Bylaws
of Bonita Bay Holdings, Inc.**
|
3.21
|
|
Articles
of Incorporation of Prestige Brands
Holdings, Inc.**
|
3.22
|
|
Bylaws
of Prestige Brands Holdings, Inc.**
|
3.23
|
|
Articles
of Incorporation of Prestige Brands
International, Inc.**
|
3.24
|
|
Bylaws
of Prestige Brands International, Inc.**
|
3.25
|
|
Certificate
of Incorporation of Prestige Brands Financial
Corporation.**
|
3.26
|
|
Bylaws
of Prestige Brands Financial Corporation.**
|
3.27
|
|
Certificate
of Incorporation of Medtech Holdings, Inc.**
|
3.28
|
|
Bylaws
of Medtech Holdings, Inc. (f/k/a Pecos Acquisition
Company).**
|
3.29
|
|
Certificate
of Incorporation of Medtech Products Inc.**
|
3.30
|
|
Bylaws
of Medtech Products Inc.**
|
3.31
|
|
Articles
of Incorporation of Pecos Pharmaceutical, Inc.**
|
3.32
|
|
Bylaws
of Pecos Pharmaceutical, Inc. (f/k/a Stuart Millheiser
Incorporated).**
|
3.33
|
|
Certificate
of Incorporation of The Cutex Company.**
|
3.34
|
|
Bylaws
of The Cutex Company.**
|
3.35
|
|
Certificate
of Incorporation of Prestige Personal Care
Holdings, Inc.**
|
3.36
|
|
Bylaws
of Prestige Personal Care Holdings, Inc.**
|
3.37
|
|
Certificate
of Incorporation of Prestige Personal Care, Inc.**
|
3.38
|
|
Bylaws
of Prestige Personal Care, Inc.**
|
3.39
|
|
Certificate
of Incorporation of The Denorex Company.**
|
3.40
|
|
Bylaws
of The Denorex Company.**
|
3.41
|
|
Certificate
of Incorporation of
Vetco, Inc.**
|
3.42
|
|
Bylaws
of Vetco, Inc. (f/k/a Vetco
Pharmaceuticals, Inc.).**
|
4.1
|
|
Form of
stock certificate for common stock.*
|
4.2
|
|
Indenture,
dated April 6, 2004, among Prestige Brands, Inc., each Guarantor
thereto and U.S. Bank National Association, as
Trustee.*
|
10.1
|
|
Credit
Agreement, dated April 6, 2004, among Prestige Brands, Inc.,
Prestige Brands International, LLC, the Lenders thereto, the Issuers
thereto, Citicorp North America, Inc. as Administrative Agent and as
Tranche C Agent, Bank of America, N.A. as Syndication Agent and
Merrill Lynch Capital, a division of Merrill Lynch Business Financial
Services Inc., as Documentation Agent.*
|
10.1.1
|
|
Form of
Amendment No. 1 to the Credit Agreement, dated as of April 6,
2004, among Prestige Brands, Inc., Prestige Brands International,
LLC, the Lenders thereto, the Issuers thereto, Citicorp North
America, Inc., as administrative agent, Bank of America, N.A., as
syndication agent, and Merrill Lynch Capital, a division of Merrill
Lynch
Business Financial Services, Inc., as documentation
agent.*
|
10.2
|
|
Pledge
and Security Agreement, dated April 6, 2004, by Prestige
Brands, Inc. and each of the Grantors party thereto, in favor of
Citicorp North America, Inc. as Administrative Agent and
Tranche C Agent.*
|
10.3
|
|
Intercreditor
Agreement, dated April 6, 2004, between Citicorp North
America, Inc. as Administrative Agent and as Tranche C Agent,
Prestige Brands, Inc., Prestige Brands International, LLC and each of
the Subsidiary Guarantors thereto.*
|
10.4
|
|
Indenture,
dated April 6, 2004, among Prestige Brands, Inc., each Guarantor
thereto and U.S. Bank National Association, as
Trustee.*
|
10.5
|
|
Purchase
Agreement, dated April 6, 2004, among Prestige Brands, Inc.,
each Guarantor thereto and Citicorp North America, Inc. as
Representative of the Initial Purchasers.*
|
10.6
|
|
Registration
Rights Agreement, dated April 6, 2004, among Prestige
Brands, Inc., each Guarantor thereto, Citigroup Global
Markets Inc., Banc of America Securities LLC and Merrill Lynch,
Pierce, Fenner & Smith Incorporated.*
|
10.7
|
|
Third
Amended and Restated Limited Liability Company Agreement of Prestige
International Holdings, LLC, dated April 6, 2004.*
|
10.8
|
|
Unit
Purchase Agreement, dated February 6, 2004, by and among
Medtech/Denorex, LLC, GTCR Fund VIII, L.P., GTCR Fund VIII/B,
L.P., GTCR Co-Invest II, L.P. and the TCW/Crescent Purchasers
thereto.*
|
10.9
|
|
First
Amendment, Acknowledgment and Supplement to Unit Purchase Agreement,
dated
April 6, 2004, to the Unit Purchase Agreement, dated February 6,
2004, by and among Medtech/Denorex, LLC, GTCR Fund VIII, L.P., GTCR
Fund VIII/B, L.P., GTCR Co-Invest II, L.P. and the TCW/Crescent
Purchasers thereto.*
|
10.10
|
|
Second
Amendment, Acknowledgement and Supplement to Unit Purchase Agreement,
dated April 6, 2004, to the Unit Purchase Agreement, dated
February 6, 2004, by and among Medtech/Denorex, LLC, GTCR
Fund VIII, L.P., GTCR Fund VIII/B, L.P., GTCR Co-Invest II,
L.P. and the TCW/Crescent Purchasers thereto as amended by the First
Amendment, Acknowledgement and Supplement to Unit Purchase Agreement,
dated April 6, 2004.*
|
10.11
|
|
Securityholders
Agreement, dated February 6, 2004, among Medtech/Denorex, LLC, GTCR
Fund VIII, L.P., GTCR Fund VIII/B, L.P., GTCR Co-Invest II,
L.P., GTCR Capital Partners, L.P., the TCW/Crescent Purchasers and
the
TCW/Crescent Lenders thereto, each Executive thereto and each of
the Other
Securityholders thereto.*
|
10.12
|
|
First
Amendment and Acknowledgement to Securityholders Agreement, dated
April 6, 2004, to the Securityholders Agreement, dated
February 6, 2004, among Medtech/Denorex, LLC, GTCR Fund VIII,
L.P., GTCR Fund VIII/B, L.P., GTCR Co-Invest II, L.P., GTCR
Capital Partners, L.P., the TCW/Crescent Purchasers and the TCW/Crescent
Lenders thereto, each Executive thereto and each of the Other
Securityholders thereto.*
|
10.13
|
|
Registration
Rights Agreement, dated February 6, 2004, among Medtech/Denorex, LLC,
GTCR Fund VIII, L.P., GTCR Fund VIII/B, L.P., GTCR
Co-Invest II, L.P., GTCR Capital Partners, L.P., the TCW/Crescent
Purchasers and the TCW/Crescent Lenders thereto, each Executive thereto
and each of the Other Securityholders thereto.*
|
10.14
|
|
First
Amendment and Acknowledgement to Registration Rights Agreement, dated
April 6, 2004, to the Registration Rights Agreement, dated
February 6, 2004, among Medtech/Denorex, LLC, GTCR Fund VIII,
L.P., GTCR Fund VIII/B, L.P., GTCR Co-Invest II, L.P., GTCR
Capital Partners, L.P., the TCW/Crescent Purchasers and the TCW/Crescent
Lenders thereto, each Executive thereto and each of the Other
Securityholders thereto.*
|
10.15
|
|
Senior
Preferred Investor Rights Agreement, dated March 5, 2004, among
Medtech/Denorex, LLC, GTCR Fund VIII, L.P., TSG3 L.P., J. Gary
Shansby, Charles H. Esserman, Michael L. Mauze, James L.
O’Hara and each Subsequent Securityholder thereto.*
|
10.16
|
|
Amended
and Restated Professional Services Agreement, dated April 6, 2004, by
and between GTCR Golder Rauner II, L.L.C. and Prestige
Brands, Inc.*
|
10.17
|
|
Amended
and Restated Management Company Services Agreement, dated April 6,
2004, among Prestige Brands, Inc., Prestige Brands
International, Inc., Medtech Products, Inc., The Spic and Span
Company, The Comet Products Corporation and The Denorex
Company.*
|
10.18
|
|
Senior
Management Agreement, dated February 6, 2004, by and among
Medtech/Denorex, LLC, Medtech/Denorex Management, Inc. and
Peter C. Mann.*
|
10.19
|
|
First
Amendment and Acknowledgement to Senior Management Agreement, dated
March 5, 2004, to the Senior Management Agreement, dated
February 6, 2004, by and among Medtech/Denorex, LLC, Medtech/Denorex
Management, Inc. and Peter C. Mann.*
|
10.20
|
|
Second
Amendment and Acknowledgement to Senior Management Agreement, dated
April 6, 2004, to the Senior Management Agreement, dated
February 6, 2004, by and among Medtech/Denorex, LLC, Medtech/Denorex
Management, Inc. and Peter C. Mann and amended by the First
Amendment and Acknowledgement to Senior Management Agreement, dated
March 5, 2004.*
|
10.21
|
|
Senior
Management Agreement, dated February 6, 2004, by and among
Medtech/Denorex, LLC, Medtech/Denorex Management, Inc. and
Peter J. Anderson.*
|
10.22
|
|
First
Amendment and Acknowledgement to Senior Management Agreement, dated
March 5, 2004, to the Senior Management Agreement, dated
February 6, 2004, by and among Medtech/Denorex, LLC, Medtech/Denorex
Management, Inc. and Peter J. Anderson.*
|
10.23
|
|
Second
Amendment and Acknowledgement to Senior Management Agreement, dated
April 6, 2004, to the Senior Management Agreement, dated
February 6, 2004, by and among Medtech/Denorex, LLC, Medtech/Denorex
Management, Inc. and Peter J. Anderson and amended by the First
Amendment and Acknowledgement to Senior Management Agreement, dated
March 5, 2004.*
|
10.24
|
|
Senior
Management Agreement, dated February 6, 2004, by and among
Medtech/Denorex, LLC, Medtech/Denorex Management, Inc. and
Gerard F. Butler.*
|
10.25
|
|
First
Amendment and Acknowledgement to Senior Management Agreement, dated
March 5, 2004, to the Senior Management Agreement, dated
February 6, 2004, by and among Medtech/Denorex, LLC, Medtech/Denorex
Management, Inc. and Gerard F. Butler.*
|
10.26
|
|
Second
Amendment and Acknowledgement to Senior Management Agreement, dated
April 6, 2004, to the Senior Management Agreement, dated
February 6, 2004, by and among Medtech/Denorex, LLC, Medtech/Denorex
Management, Inc. and Gerard F. Butler and amended by the First
Amendment and Acknowledgement to Senior Management Agreement, dated
March 5, 2004.*
|
10.27
|
|
Senior
Management Agreement, dated February 6, 2004, by and among
Medtech/Denorex, LLC, Medtech/Denorex Management, Inc. and
Michael A. Fink.*
|
10.28
|
|
First
Amendment and Acknowledgement to Senior Management Agreement, dated
March 5, 2004, to the Senior Management Agreement, dated
February 6, 2004, by and among Medtech/Denorex, LLC, Medtech/Denorex
Management, Inc. and Michael A.
Fink.*
|
10.29
|
|
Second
Amendment and Acknowledgement to Senior Management Agreement, dated
April 6, 2004, to the Senior Management Agreement, dated
February 6, 2004, by and among Medtech/Denorex, LLC, Medtech/Denorex
Management, Inc. and Michael A. Fink and amended by the First
Amendment and Acknowledgement to Senior Management Agreement, dated
March 5, 2004.*
|
10.29.1
|
|
Senior
Management Agreement, dated March 17, 2004, by and among
Medtech/Denorex, LLC, Medtech/Denorex Management, Inc. and Charles
Schrank.*
|
10.29.2
|
|
First
Amendment and Acknowledgement to Senior Management Agreement, dated
April 6, 2004, to the Senior Management Agreement, dated
March 17, 2004, by and among Medtech/Denorex, LLC, Medtech/Denorex
Management, Inc. and Charles Schrank.*
|
10.29.3
|
|
Senior
Management Agreement, dated March 17, 2004, by and among
Medtech/Denorex, LLC, Medtech/Denorex Management, Inc. and Eric M.
Millar.*
|
10.29.4
|
|
First
Amendment and Acknowledgement to Senior Management Agreement, dated
April 6, 2004, to the Senior Management Agreement, dated
March 17, 2004, by and among Medtech/Denorex, LLC, Medtech/Denorex
Management, Inc. and Eric M. Millar.*
|
10.29.5
|
|
Omnibus
Consent and Amendment to Securityholders Agreement, Registration
Rights
Agreement, Senior Management Agreements and Unit Purchase Agreement,
dated
as of July 6, 2004.*
|
10.29.6
|
|
Form of
Amended and Restated Senior Management Agreement by and among Prestige
International Holdings, LLC, Prestige Brands Holdings, Inc. and
Peter C. Mann.*
|
10.29.7
|
|
Form of
Amended and Restated Senior Management Agreement by and among Prestige
International Holdings, LLC, Prestige Brands Holdings, Inc. and
Peter J. Anderson.*
|
10.29.8
|
|
Form of
Amended and Restated Senior Management Agreement by and among Prestige
International Holdings, LLC, Prestige Brands Holdings, Inc. and
Gerald F. Butler.*
|
10.29.9
|
|
Form of
Amended and Restated Senior Management Agreement by and among Prestige
International Holdings, LLC, Prestige Brands Holdings, Inc. and
Michael A. Fink.*
|
10.29.10
|
|
Form of
Amended and Restated Senior Management Agreement by and among Prestige
International Holdings, LLC, Prestige Brands Holdings, Inc. and
Charles Shrank.*
|
10.29.11
|
|
Form of
Amended and Restated Senior Management Agreement by and among Prestige
International Holdings, LLC, Prestige Brands Holdings, Inc. and Eric
M. Millar.*
|
10.30
|
|
Distribution
Agreement, dated April 24, 2003, by and between Medtech
Holdings, Inc. and OraSure
Technologies, Inc.***
|
10.31
|
|
License
Agreement, dated June 2, 2003, between Zengen, Inc. and Prestige
Brands International, Inc.***
|
10.32
|
|
Patent
and Technology License Agreement, dated October 2, 2001, between The
Procter & Gamble Company and Prestige Brands
International, Inc.***
|
10.33
|
|
Amendment,
dated April 30, 2003, to the Patent and Technology License Agreement,
dated October 2, 2001, between The Procter & Gamble Company
and Prestige Brands International, Inc.***
|
10.34
|
|
Contract
Manufacturing Agreement, dated February 1, 2001, among The
Procter & Gamble Manufacturing Company, P&G International
Operations SA, Prestige Brands International, Inc. and Prestige
Brands International (Canada) Corp.***
|
10.35
|
|
Manufacturing
Agreement, dated December 30, 2002, by and between Prestige Brands
International, Inc. and Abbott Laboratories.***
|
10.36
|
|
Amendment
No. 4 and Restatement of Contract Manufacturing Agreement, dated
May 1, 2002, by and between The Procter & Gamble Company and
Prestige Brands International, Inc.***
|
10.37
|
|
Letter
Agreement, dated April 15, 2004, between Prestige Brands, Inc.
and Carrafiello Diehl &
Associates, Inc.***
|
10.38
|
|
Prestige
Brands Holdings, Inc. 2005 Long-Term Equity Incentive
Plan.*
|
10.39
|
|
Form of
Exchange Agreement by and among Prestige Brands Holdings, Inc.,
Prestige
|
|
|
International
Holdings, LLC and the common unitholders listed on the signature
pages thereto.*
|
10.40
|
|
Storage
and Handling Agreement dated April 13, 2005 by and between Prestige
Brands Inc. and Warehousing Specialists, Inc.****
|
10.41
|
|
Transportation
Management Agreement dated April 13, 2005 by and between Prestige
Brands Inc. and Nationwide Logistics, Inc.****
|
21.1
|
|
Subsidiaries
of the Registrant.*
|
23.1
|
|
Consent
of PricewaterhouseCoopers LLP.
|
23.2
|
|
Consent
of Ernst & Young LLP.
|
31.1
|
|
Rule 13a-14(a)/
15d-14(a) Certification, executed by Peter C. Mann, Chairman,
President and Chief Executive Officer of Prestige Brands
Holdings, Inc.
|
31.2
|
|
Rule 13a-14(a)/
15d-14(a) Certification, executed by Peter J. Anderson, Chief
Financial Officer of Prestige Brands
Holdings, Inc.
|
31.3
|
|
Rule 13a-14(a)/
15d-14(a) Certification, executed by Peter C. Mann, Manager,
President and Chief Executive Officer of Prestige Brands International,
LLC.
|
31.4
|
|
Rule 13a-14(a)/
15d-14(a) Certification, executed by Peter J. Anderson, Chief
Financial Officer of Prestige Brands International,
LLC.
|
32.1
|
|
Certification
required by Rule 13a-14(b) or Rule 15d-14(b) and
Section 1350 of Chapter 63 of Title 18 of the United States Code 302
(18 U.S.C. 1350), executed by Peter C. Mann, Chairman, President
and Chief
Executive Officer of Prestige Brands
Holdings, Inc.
|
32.2
|
|
Certification
required by Rule 13a-14(b) or Rule 15d-14(b) and
Section 1350 of Chapter 63 of Title 18 of the United States Code 302
(18 U.S.C. 1350) executed by Peter J. Anderson, Chief Financial Officer
of
Prestige Brands Holdings, Inc.
|
32.3
|
|
Certification
required by Rule 13a-14(b) or Rule 15d-14(b) and
Section 1350 of Chapter 63 of Title 18 of the United States Code 302
(18 U.S.C. 1350), executed by Peter C. Mann, Manager, President and
Chief
Executive Officer of Prestige Brands International,
LLC.
|
32.4
|
|
Certification
required by Rule 13a-14(b) or Rule 15d-14(b) and
Section 1350 of Chapter 63 of Title 18 of the United States Code 302
(18 U.S.C. 1350) executed by Peter J. Anderson, Chief Financial Officer
of
Prestige Brands International, LLC.
|
99.1
|
|
Code
of Conduct and Code of Ethics for Senior Financial Employees.
+
|
|
PRESTIGE
BRANDS HOLDINGS, INC.
|
||||
|
|
|
|||
|
|
|
|||
|
By:
|
/s/
PETER J. ANDERSON
|
|
||
|
Name:
|
Peter
J. Anderson
|
|||
|
Title:
|
Chief
Financial Officer
|
|||
|
|
|
|
|
|
|
PRESTIGE
BRANDS INTERNATIONAL, LLC
|
|||
|
|
|||
|
|
|||
|
By:
|
/s/
PETER J. ANDERSON
|
|
|
|
Name:
|
Peter
J. Anderson
|
||
|
Title:
|
Chief
Financial Officer
|
||
|
|
|
|
|
Prestige
Brands Holdings, Inc.
|
F-2
|
Reports
of independent registered public accounting firm (PricewaterhouseCoopers
LLP)
|
F-3
|
Statements
of operations (for year ended March 31, 2005, the period from
February 6, 2004 to March 31, 2004 (successor basis) and the
period from April 1, 2003 to February 5, 2004 and the year ended
March 31, 2003 (predecessor basis))
|
F-5
|
Balance
sheets (as of March 31, 2005 and 2004 (successor
basis))
|
F-6
|
Statements
of cash flows (for year ended March 31, 2005, the period from
February 6, 2004 to March 31, 2004 (successor basis) and the
period from April 1, 2003 to February 5, 2004 and the year ended
March 31, 2003 (predecessor basis))
|
F-7
|
Statements
of members’ and shareholders’ equity and comprehensive income (for year
ended March 31, 2005, the period from February 6, 2004 to
March 31, 2004 (successor basis) and the period from April 1,
2003 to February 5, 2004 and the year ended March 31, 2003
(predecessor basis))
|
F-9
|
Notes
to consolidated financial statements
|
F-12
|
Schedule II—Valuation
and Qualifying Accounts
|
F-39
|
|
|
Prestige
Brands International, LLC
|
F-40
|
Reports
of independent registered public accounting firm (PricewaterhouseCoopers
LLP)
|
F-41
|
Statements
of operations (for year ended March 31, 2005, the period from
February 6, 2004 to March 31, 2004 (successor basis) and the
period from April 1, 2003 to February 5, 2004 and the year ended
March 31, 2003 (predecessor basis))
|
F-43
|
Balance
sheets (as of March 31, 2005 and 2004 (successor
basis))
|
F-44
|
Statements
of cash flows (for year ended March 31, 2005, the period from
February 6, 2004 to March 31, 2004 (successor basis) and the
period from April 1, 2003 to February 5, 2004 and the year ended
March 31, 2003 (predecessor basis))
|
F-45
|
Statements
of members’ equity and comprehensive income (for year ended March 31,
2005, the period from February 6, 2004 to March 31, 2004
(successor basis) and the period from April 1, 2003 to
February 5, 2004 and the year ended March 31, 2003 (predecessor
basis))
|
F-47
|
Notes
to consolidated financial statements
|
F-49
|
Schedule II—Valuation
and Qualifying Accounts
|
F-73
|
|
|
Bonita
Bay Holdings, Inc.
|
F-74
|
Report
of independent registered certified public accountants (Ernst &
Young LLP)
|
F-75
|
Consolidated
balance sheets (at December 31, 2003 and 2002)
|
F-76
|
Consolidated
statements of income (for the years ended December 31, 2003, 2002 and
2001)
|
F-77
|
Consolidated
statements of stockholders’ equity (for the years ended December 31,
2003, 2002 and 2001)
|
F-78
|
Consolidated
statements of cash flows (for the years ended December 31, 2003, 2002
and 2001)
|
F-79
|
Notes
to consolidated financial statements
|
F-80
|
/s/
PRICEWATERHOUSECOOPERS LLP
|
|
|
|
Salt
Lake City, Utah
|
|
June 3,
2005, except for the fourth paragraph of Note 1
and
Note 2 for which the date is January 9,
2006
|
/s/
PRICEWATERHOUSECOOPERS LLP
|
|
|
|
Salt
Lake City, Utah
|
|
July 2,
2004, except for the fourth paragraph of Note 1
and
Note 2 for which the date is January 9,
2006
|
|
|
Year Ended
March 31, 2005
|
|
February 6, 2004
to March 31, 2004
|
|
April 1, 2003
to February 5, 2004
|
|
Year Ended
March 31, 2003
|
|
||||
(Restated)
|
(Restated)
|
||||||||||||
|
|
(successor basis)
|
|
(predecessor basis)
|
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||
Net
sales
|
|
$
|
288,918
|
|
$
|
16,822
|
|
$
|
68,069
|
|
$
|
71,343
|
|
Other
revenues
|
|
151
|
|
—
|
|
—
|
|
—
|
|
||||
Other
revenues—related parties
|
|
—
|
|
54
|
|
333
|
|
391
|
|
||||
Total
revenues
|
|
289,069
|
16,876
|
|
68,402
|
|
71,734
|
|
|||||
Cost
of Sales:
|
|
|
|
|
|
|
|
|
|
||||
Cost
of sales
|
|
139,009
|
|
9,351
|
|
26,855
|
|
27,017
|
|
||||
Gross
profit
|
|
150,060
|
|
7,525
|
|
41,547
|
|
44,717
|
|
||||
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
||||
Advertising
and promotion
|
|
29,697
|
|
1,267
|
|
10,061
|
|
11,116
|
|
||||
General
and administrative
|
|
20,198
|
|
1,649
|
|
12,068
|
|
12,075
|
|
||||
Depreciation
|
|
1,899
|
|
41
|
|
247
|
|
301
|
|
||||
Amortization
of intangible assets
|
|
7,901
|
|
890
|
|
4,251
|
|
4,973
|
|
||||
Loss
on forgiveness of related party receivable
|
|
—
|
|
—
|
|
1,404
|
|
—
|
|
||||
Total
operating expenses
|
|
59,695
|
|
3,847
|
|
28,031
|
|
28,465
|
|
||||
Operating
income
|
|
90,365
|
|
3,678
|
|
13,516
|
|
16,252
|
|
||||
Other
Income (Expenses)
|
|
|
|
|
|
|
|
|
|
||||
Interest
income
|
|
371
|
|
10
|
|
38
|
|
59
|
|
||||
Interest
expense
|
|
(45,097
|
)
|
(1,735
|
)
|
(8,195
|
)
|
(9,806
|
)
|
||||
Loss
on disposal of property and equipment
|
|
(9
|
)
|
—
|
|
—
|
|
—
|
|
||||
Loss
on extinguishment of debt
|
|
(26,854
|
)
|
—
|
|
—
|
|
(685
|
)
|
||||
Total
other income (expense)
|
|
(71,589
|
)
|
(1,725
|
)
|
(8,157
|
)
|
(10,432
|
)
|
||||
Income
from continuing operations before income taxes
|
|
18,776
|
|
1,953
|
|
5,359
|
|
5,820
|
|
||||
Provision
for Income Taxes
|
|
(8,556)
|
(724
|
)
|
(2,214
|
)
|
(3,287
|
)
|
|||||
Income
from continuing operations
|
|
10,220
|
|
1,229
|
|
3,145
|
|
2,533
|
|
||||
Discontinued
Operations
|
|
|
|
|
|
|
|
|
|||||
Loss
from operations of discontinued Pecos reporting unit, net of income
tax
benefit of $1,848
|
|
—
|
|
—
|
|
—
|
|
(3,385
|
)
|
||||
Loss
on disposal of Pecos reporting unit, net of income tax benefit of
$1,233
|
|
—
|
|
—
|
|
—
|
|
(2,259
|
)
|
||||
Income
(loss) before cumulative effect of change in accounting
principle
|
|
10,220
|
|
1,229
|
|
3,145
|
|
(3,111
|
)
|
||||
Cumulative
effect of change in accounting principle, net of income tax benefit
of
$6,467
|
|
—
|
|
—
|
|
—
|
|
(11,785
|
)
|
||||
Net
income (loss)
|
|
10,220
|
|
1,229
|
|
$
|
3,145
|
|
$
|
(14,896
|
)
|
||
Cumulative
preferred dividends on Senior Preferred and Class B Preferred
units
|
|
(25,395
|
)
|
(1,390
|
)
|
|
|
|
|
||||
Net
loss available to members and common shareholders
|
|
$
|
(15,175
|
)
|
$
|
(161)
|
)
|
|
|
|
|
||
Basic
and diluted net loss per common share
|
|
$
|
(0.55
|
)
|
$
|
(0.01)
|
|
|
|
|
|
||
Basic
and diluted weighted average shares outstanding
|
|
27,546
|
|
24,472
|
|
|
|
|
|
|
|
March 31,
|
|
||||
|
|
2005
|
|
2004
|
|
||
(Restated)
|
|||||||
|
|
(successor basis)
|
|
||||
ASSETS
|
|
|
|
|
|
||
Current
assets:
|
|
|
|
|
|
||
Cash
|
|
$
|
5,334
|
|
$
|
3,393
|
|
Accounts
receivable
|
|
35,918
|
|
13,369
|
|
||
Inventories
|
|
24,833
|
|
10,660
|
|
||
Deferred
income tax asset
|
|
5,699
|
|
1,647
|
|
||
Prepaid
expenses and other current assets
|
|
3,152
|
|
234
|
|
||
Total
current assets
|
|
74,936
|
|
29,303
|
|
||
Property
and equipment
|
|
2,324
|
|
880
|
|
||
Goodwill
|
|
294,731
|
|
55,781
|
|
||
Other
long-term assets
|
|
624,609
|
|
239,394
|
|
||
Total
assets
|
|
$
|
996,600
|
|
$
|
325,358
|
|
|
|
|
|
|
|
||
LIABILITIES
AND MEMBERS’ AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
||
Current
liabilities:
|
|
|
|
|
|
||
Accounts
payable
|
|
$
|
21,705
|
|
$
|
5,281
|
|
Accrued
expenses
|
|
11,589
|
|
6,561
|
|
||
Current
portion of long-term debt
|
|
3,730
|
|
2,000
|
|
||
Total
current liabilities
|
37,024
|
|
13,842
|
|
|||
Long-term
debt
|
|
491,630
|
|
146,694
|
|
||
Deferred
income tax liability
|
|
85,899
|
|
38,874
|
|
||
Total
liabilities
|
|
614,553
|
|
199,410
|
|
||
Commitments
and contingencies (Note 12)
|
|
|
|
|
|
||
Members’
and Shareholders’ equity:
|
|
|
|
|
|
||
Senior
Preferred Units, -0- and 23 units issued and outstanding at March 31,
2005, and 2004, respectively
|
|
—
|
|
17,768
|
|
||
Class B
Preferred Units, -0- and 107 units issued and outstanding at
March 31, 2005, and 2004, respectively
|
|
—
|
|
96,807
|
|
||
Common
Units, -0- and 57,902 units issued and outstanding at March 31, 2005
and 2004, respectively
|
|
—
|
|
5,273
|
|
||
Preferred
stock—par value $0.01 per share, 5,000 shares authorized, no shares issued
or outstanding
|
|
—
|
|
—
|
|
||
Common
stock—par value $0.01 per share, 250,000 shares authorized and 49,998
shares issued and outstanding at March 31, 2005
|
|
500
|
|
—
|
|
||
Treasury
stock—2 shares at cost
|
|
(4
|
)
|
—
|
|
||
Additional
paid in capital
|
|
378,251
|
|
4,871
|
|
||
Accumulated
other comprehensive income
|
|
320
|
|
—
|
|
||
Retained
earnings
|
|
2,980
|
|
1,229
|
|
||
Total
members’ and shareholders’ equity
|
|
382,047
|
|
125,948
|
|
||
Total
liabilities and members’ and shareholders’ equity
|
|
$
|
996,600
|
|
$
|
325,358
|
|
|
|
Year Ended
March 31, 2005
|
|
February 6, 2004
to March 31, 2004
|
|
April 1, 2003
to February 5, 2004
|
|
Year Ended
March 31, 2003
|
|
||||
(Restated)
|
(Restated)
|
||||||||||||
|
|
(successor basis)
|
|
(predecessor basis)
|
|
||||||||
Operating
Activities
|
|
|
|
|
|
|
|
|
|
||||
Net
income (loss)
|
|
$
|
10,220
|
|
$
|
1,229
|
|
$
|
3,145
|
|
$
|
(14,896
|
)
|
Adjustments
to reconcile net income (loss) to net cash provided by (used in)
operating
activities:
|
|
|
|
|
|
|
|
|
|
||||
Cumulative
effect of change in accounting principle, net of income tax benefit
of
$6,467
|
|
—
|
|
—
|
|
—
|
|
11,785
|
|
||||
Loss
on extinguishment of debt
|
|
26,854
|
|
—
|
|
—
|
|
685
|
|
||||
Depreciation
|
|
1,899
|
|
41
|
|
247
|
|
301
|
|
||||
Loss
on disposal of property and equipment
|
|
9
|
|
—
|
|
—
|
|
91
|
|
||||
Amortization
of intangible assets
|
|
7,901
|
|
890
|
|
4,251
|
|
4,973
|
|
||||
Amortization
of deferred financing costs and debt discount
|
|
2,943
|
|
134
|
|
1,271
|
|
1,912
|
|
||||
Amortization
of deferred compensation
|
|
—
|
|
—
|
|
67
|
|
79
|
|
||||
Increase
in long-term debt due to accrued interest
|
|
—
|
|
—
|
|
376
|
|
251
|
|
||||
Deferred
income taxes
|
|
8,344
|
|
696
|
|
1,718
|
|
1,622
|
|
||||
Other
|
|
—
|
|
71
|
|
—
|
|
—
|
|
||||
Changes
in operating assets and liabilities, net of effects of purchase of
businesses:
|
|
|
|
|
|
|
|
|
|
||||
Accounts
receivable
|
|
(7,227
|
)
|
(951
|
)
|
743
|
|
(1,130
|
)
|
||||
Accounts
receivable—related parties
|
|
—
|
|
53
|
|
326
|
|
(364
|
)
|
||||
Inventories
|
|
2,922
|
|
207
|
|
(1,712
|
)
|
3,474
|
|
||||
Prepaid
expenses and other current assets
|
|
(1,490
|
)
|
(52
|
)
|
259
|
|
2,216
|
|
||||
Accounts
payable
|
|
5,059
|
|
1,106
|
|
(262
|
)
|
(638
|
)
|
||||
Accounts
payable—related parties
|
|
—
|
|
(532
|
)
|
(1,111
|
)
|
464
|
|
||||
Accrued
expenses
|
|
(6,392
|
)
|
(4,272
|
)
|
(1,811
|
)
|
2,529
|
|
||||
Income
taxes payable
|
|
—
|
|
(326)
|
|
336
|
(835
|
)
|
|||||
Net
cash provided by (used in) operating activities
|
|
51,042
|
|
(1,706
|
)
|
7,843
|
|
12,519
|
|
||||
Investing
Activities
|
|
|
|
|
|
|
|
|
|
||||
Purchase
of property and equipment
|
|
(365
|
)
|
(42
|
)
|
(66
|
)
|
(421
|
)
|
||||
Change
in restricted cash
|
|
—
|
|
700
|
|
—
|
|
(700
|
)
|
||||
Purchase
of intangibles
|
|
—
|
|
—
|
|
(510
|
)
|
(256
|
)
|
||||
Purchase
of businesses, net of cash acquired
|
|
(425,479
|
)
|
(167,532
|
)
|
—
|
|
(788
|
)
|
||||
Net
cash used in investing activities
|
|
(425,844
|
)
|
(166,874
|
)
|
(576
|
)
|
(2,165
|
)
|
||||
Financing
Activities
|
|
|
|
|
|
|
|
|
|
||||
Proceeds
from borrowings
|
|
698,512
|
|
154,786
|
|
13,539
|
|
4,220
|
|
||||
Repayment
of borrowings
|
|
(529,538
|
)
|
(80,146
|
)
|
(24,682
|
)
|
(18,862
|
)
|
||||
Payment
of deferred financing costs
|
|
(24,539
|
)
|
(2,841
|
)
|
(115
|
)
|
(76
|
)
|
||||
Payment
on interest rate swap liability
|
|
—
|
|
(197
|
)
|
—
|
|
—
|
|
||||
Prepayment
penalty
|
|
(10,875
|
)
|
—
|
|
—
|
|
—
|
|
||||
Premium
on interest rate cap
|
|
(2,283
|
)
|
—
|
|
—
|
|
—
|
|
||||
Proceeds
from issuance of Denorex Class A shares
|
|
—
|
|
—
|
|
—
|
|
12
|
|
||||
Purchase
of treasury stock
|
|
(4
|
)
|
—
|
|
—
|
|
(4
|
)
|
||||
Proceeds
from issuance of treasury stock
|
|
—
|
|
—
|
|
—
|
|
2
|
|
||||
Proceeds
from capital contributions
|
|
—
|
|
—
|
|
2,629
|
|
—
|
|
||||
Issuance
of common stock in initial public offering, net
|
|
416,832
|
|
—
|
|
—
|
|
—
|
|
||||
Redemption
of preferred units
|
|
(199,836
|
)
|
—
|
|
—
|
|
—
|
|
||||
Redemption
of common units
|
|
(30,248
|
)
|
—
|
|
—
|
|
—
|
|
||||
Proceeds
from issuance of equity, net
|
|
58,722
|
|
100,371
|
|
—
|
|
—
|
|
||||
Net
cash provided by (used in) financing activities
|
|
376,743
|
|
171,973
|
|
(8,629
|
)
|
(14,708
|
)
|
||||
Increase
(decrease) in cash
|
|
1,941
|
|
3,393
|
|
(1,362
|
)
|
(4,354
|
)
|
||||
Cash
at beginning of period
|
|
3,393
|
|
—
|
|
3,530
|
|
7,884
|
|
||||
Cash
at end of period
|
|
$
|
5,334
|
|
$
|
3,393
|
|
$
|
2,168
|
|
$
|
3,530
|
|
|
|
Year Ended
March 31, 2005
|
|
February 6, 2004
to March 31, 2004
|
|
April 1, 2003
to February 5, 2004
|
|
Year Ended
March 31, 2003
|
|
||||
|
|
(successor basis)
|
|
(predecessor basis)
|
|
||||||||
Supplemental
cash flow information
|
|
|
|
|
|
|
|
|
|
||||
Interest
paid
|
|
$
|
42,155
|
|
$
|
2,357
|
|
$
|
5,491
|
|
$
|
8,553
|
|
Income
taxes paid (refunded)
|
|
$
|
2,689
|
|
$
|
(31
|
)
|
$
|
159
|
|
$
|
174
|
|
Supplemental
disclosure of non-cash investing and financing
activities:
|
|
|
|
|
|
|
|
|
|
||||
Fair
value of assets acquired, net of cash acquired
|
|
$
|
655,542
|
|
$
|
318,380
|
|
$
|
—
|
|
$
|
—
|
|
Fair
value of liabilities assumed
|
|
(229,971
|
)
|
(131,371
|
)
|
—
|
|
—
|
|
||||
Purchase
price funded with non-cash capital contribution
|
|
(92
|
)
|
(19,477
|
)
|
—
|
|
—
|
|
||||
Cash
paid to purchase businesses
|
|
$
|
425,479
|
|
$
|
167,532
|
|
$
|
—
|
|
$
|
—
|
|
|
|
Senior
|
|
|
|
Class B
|
|
|
|
|
|
|
|
Medtech
|
|
Denorex
|
|
|||||||||
|
|
preferred
|
|
|
|
preferred
|
|
|
|
Common
|
|
|
|
common stock
|
|
common stock
|
|
|||||||||
|
|
units
|
|
Amount
|
|
units
|
|
Amount
|
|
units
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|||||
Predecessor Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Balance
at March 31, 2002 as previously reported
|
—
|
$
—
|
—
|
$ —
|
—
|
$
—
|
7,145
|
$
|
71
|
112
|
$
|
1
|
||||||||||||||
Effects
of restatement
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||
Balance
at March 31, 2002 (Restated)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
7,145
|
|
71
|
|
112
|
|
1
|
|
|||||
Issuance
of Denorex Class A shares
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
13
|
|
—
|
|
|||||
Purchase
of treasury stock
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Issuance
of shares from treasury
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Amortization
of deferred compensation
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Components
of Comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net
loss (Restated)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Unrealized
loss on interest rate swap net of income tax benefit
of $38
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Total
comprehensive loss (Restated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance
at March 31, 2003 (Restated)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
7,145
|
|
71
|
|
125
|
|
1
|
|
|||||
Amortization
of deferred compensation
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Contribution
of capital
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Components
of Comprehensive income
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Net
income (Restated)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Unrealized
gain on interest rate swap net of income tax expense
of $148
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Total
comprehensive income (Restated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance
at February 5, 2004 (Restated)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
7,145
|
|
71
|
|
125
|
|
1
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Successor
Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Issuance
of Preferred and Common Units
|
|
—
|
|
—
|
|
101
|
|
95,622
|
|
50,000
|
|
4,749
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Issuance
of Preferred and Common Units in conjunction with Medtech
Acquisition
|
|
—
|
|
—
|
|
1
|
|
1,185
|
|
5,282
|
|
524
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Adjustments
related to Medtech Acquisition (Restated)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(7,145
|
)
|
(71
|
)
|
(125
|
)
|
(1
|
)
|
|||||
Issuance
of Preferred Units in conjunction with Spic and Span
Acquisition
|
|
23
|
|
17,768
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Issuance
of warrants in connection with Medtech Acquisition Debt
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Issuance
of Preferred and Common Units upon exercise of warrants
|
|
—
|
|
—
|
|
5
|
|
—
|
|
2,620
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Net
income and comprehensive income
(Restated)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Balance
at March 31, 2004 (Restated)
|
|
23
|
|
$
|
17,768
|
|
107
|
|
$
|
96,807
|
|
57,902
|
|
$
|
5,273
|
|
—
|
|
$
|
—
|
|
—
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
paid-in
capital
|
|
Deferred
compensation
|
|
Medtech
treasury
stock
|
|
Accumulated
other
comprehensive
Income (loss)
|
|
Retained
earnings
(accumulated
deficit)
|
|
Total
|
|
|||||||
Predecessor Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Balance
at March 31, 2002 as previously reported
|
$
|
56,780
|
$
|
(219
|
)
|
$
—
|
$
|
(478
|
)
|
$
|
3,046
|
$
|
59,201
|
|||||||
Effects
of restatement
|
—
|
—
|
—
|
(464
|
)
|
(464
|
)
|
|||||||||||||
Balance
at March 31, 2002 (Restated)
|
|
56,780
|
|
$
|
(219
|
)
|
—
|
|
(478
|
)
|
2,582
|
|
$
|
58,737
|
|
|||||
Issuance
of Denorex Class A shares
|
|
12
|
|
—
|
|
—
|
|
—
|
|
—
|
|
12
|
|
|||||||
Purchase
of treasury stock
|
|
—
|
|
—
|
|
(4
|
)
|
—
|
|
—
|
|
(4
|
)
|
|||||||
Issuance
of shares from treasury
|
|
—
|
|
—
|
|
2
|
|
—
|
|
—
|
|
2
|
|
|||||||
Amortization
of deferred compensation
|
|
—
|
|
79
|
|
—
|
|
—
|
|
—
|
|
79
|
|
|||||||
Components
of Comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net
loss (Restated)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(14,896
|
)
|
(14,896
|
)
|
|||||||
Unrealized
loss on interest rate swap net of
income
tax benefit of $38
|
|
—
|
|
—
|
|
—
|
|
(71
|
)
|
—
|
|
(71
|
)
|
|||||||
Total
comprehensive loss (Restated)
|
|
|
|
|
|
|
|
|
|
|
|
(14,967
|
)
|
|||||||
Balance
at March 31, 2003 (Restated)
|
|
56,792
|
|
(140
|
)
|
(2
|
)
|
(549
|
)
|
(12,314
|
)
|
43,859
|
|
|||||||
Amortization
of deferred compensation
|
|
—
|
|
67
|
|
—
|
|
—
|
|
—
|
|
67
|
|
|||||||
Contribution
of capital
|
|
2,629
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,629
|
|
|||||||
Components
of Comprehensive income
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Net
income (Restated)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,145
|
|
3,145
|
|
|||||||
Unrealized
gain on interest rate swap net of income tax expense of
$148
|
|
—
|
|
—
|
|
—
|
|
423
|
|
—
|
|
423
|
|
|||||||
Total
comprehensive income (Restated)
|
|
|
|
|
|
|
|
|
|
|
|
3,568
|
|
|||||||
Balance
at February 5, 2004 (Restated)
|
|
59,421
|
|
(73
|
)
|
(2
|
)
|
(126
|
)
|
(9,169
|
)
|
50,123
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Successor
Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Issuance
of Preferred and Common Units
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
100,371
|
|
|||||||
Issuance
of Preferred and Common Units in
conjunction
with Medtech Acquisition
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,709
|
|
|||||||
Adjustments
related to Medtech Acquisition (Restated)
|
|
(59,421
|
)
|
73
|
|
2
|
|
126
|
|
9,169
|
|
(50,123
|
)
|
|||||||
Issuance
of Preferred Units in conjunction with
Spic
and Span Acquisition
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
17,768
|
|
|||||||
Issuance
of warrants in connection with
Medtech
Acquisition Debt
|
|
4,871
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4,871
|
|
|||||||
Issuance
of Preferred and Common Units
upon
exercise of warrants
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Net
income and comprehensive income (Restated)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,229
|
|
1,229
|
|
|||||||
Balance
at March 31, 2004 (Restated)
|
|
$
|
4,871
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,229
|
|
$
|
125,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior
Preferred Units
|
|
Class B
Preferred Units
|
|
Common Units
|
|
Common Stock
|
|
Treasury
|
|
Additional
Paid-in
|
|
Accumulated
Other
Comprehensive
|
|
Retained
|
|
|
|
||||||||||||||||||
|
|
Units
|
|
Amount
|
|
Units
|
|
Amount
|
|
Units
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Stock
|
|
Capital
|
|
Income (loss)
|
|
Earnings
|
|
Total
|
|
||||||||||
Successor
Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance
at March 31, 2004 (Restated)
|
|
23
|
|
$
|
17,768
|
|
107
|
|
$
|
96,807
|
|
57,902
|
|
$
|
5,273
|
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
4,871
|
|
$
|
—
|
|
$
|
1,229
|
|
$
|
125,948
|
|
|
Issuance
of Preferred and Common Units for cash
|
|
|
|
|
|
58
|
|
58,385
|
|
1,839
|
|
148
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
58,533
|
|
||||||||||
Issuance
of Preferred and Common Units in conjunction with Bonita Bay
Acquisition
|
|
|
|
|
|
|
91
|
|
19
|
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
92
|
|
|||||||||||
Repurchase/cancellation
of Preferred and Common Units in conjunction with Bonita Bay
Acquisition
|
|
|
|
|
|
(2
|
)
|
—
|
|
(1,987
|
)
|
(46
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(46
|
)
|
||||||||||
Issuance
of restricted Common Units to management for cash
|
|
|
|
|
|
—
|
|
—
|
|
337
|
|
235
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
235
|
|
||||||||||
Exchange
of Common Units for common stock
|
|
|
|
|
|
—
|
|
—
|
|
(58,110
|
)
|
(5,611
|
)
|
26,666
|
|
267
|
|
—
|
|
5,344
|
|
—
|
|
—
|
|
—
|
|
||||||||||
Issuance
of Common Stock in initial public offering, net
|
|
|
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
28,000
|
|
280
|
|
—
|
|
416,552
|
|
—
|
|
—
|
|
416,832
|
|
||||||||||
Redemption
of Preferred Units
|
|
(23
|
)
|
(17,768
|
)
|
(163
|
)
|
(155,283
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(18,315
|
)
|
—
|
|
(8,469
|
)
|
(199,835
|
)
|
||||||||||
Retirement
of common stock
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(4,666
|
)
|
(47
|
)
|
—
|
|
(30,201
|
)
|
—
|
|
—
|
|
(30,248
|
)
|
||||||||||
Purchase
of treasury stock
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(4
|
)
|
—
|
|
—
|
|
—
|
|
(4
|
)
|
||||||||||
Components
of comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net
income (Restated)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
10,220
|
|
10,220
|
|
||||||||||
Unrealized
gain on interest rate caps net of income tax expense of
$200
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
320
|
|
—
|
|
320
|
|
||||||||||
Total
comprehensive income (Restated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,540
|
|
||||||||||
Balance
at March 31, 2005 (Restated)
|
|
—
|
|
$
|
—
|
|
—
|
|
$
|
—
|
|
—
|
|
$
|
—
|
|
50,000
|
|
$
|
500
|
|
$
|
(4
|
)
|
$
|
378,251
|
|
$
|
320
|
|
$
|
2,980
|
|
$
|
382,047
|
|
Machinery
|
|
5 years
|
|
Computer
equipment
|
|
3 years
|
|
Furniture
and fixtures
|
|
7 years
|
|
Trademarks
|
|
15-30
years
|
|
(predecessor
basis)
|
|
Trademarks
|
|
5-30
years
|
|
(successor
basis)
|
|
Fiscal
Year Ended March 31, 2005
|
||||||||||||||||
(In
thousands, except
per
share data)
|
Previously
Reported
|
Revenue
Recognition
|
Cooperative
Advertising
|
Income
Taxes
|
As
Restated
|
|||||||||||
Revenues
|
||||||||||||||||
Net
sales
|
$
|
303,167
|
$
|
(5,611
|
)
|
$
|
(8,638
|
)
|
$
|
--
|
$
|
288,918
|
||||
Other
revenues
|
151
|
151
|
||||||||||||||
Total
revenues
|
303,318
|
(5,611
|
)
|
(8,638
|
)
|
--
|
289,069
|
|||||||||
Cost
of Sales
|
||||||||||||||||
Costs
of sales
|
141,348
|
(2,339
|
)
|
139,009
|
||||||||||||
Gross
profit
|
161,970
|
(3,272
|
)
|
(8,638
|
)
|
--
|
150,060
|
|||||||||
Operating
Expenses
|
||||||||||||||||
Advertising
and promotion
|
38,402
|
(67
|
)
|
(8,638
|
)
|
29,697
|
||||||||||
General
and administrative
|
20,198
|
20,198
|
||||||||||||||
Depreciation
|
1,899
|
1,899
|
||||||||||||||
Amortization
of intangible assets
|
7,901
|
7,901
|
||||||||||||||
Total
operating expenses
|
68,400
|
(67
|
)
|
(8,638
|
)
|
--
|
59,695
|
|||||||||
Operating
income
|
93,570
|
(3,205
|
)
|
--
|
--
|
90,365
|
||||||||||
Other
income (expense)
|
||||||||||||||||
Interest
income
|
371
|
371
|
||||||||||||||
Interest
expense
|
(45,097
|
)
|
(45,097
|
)
|
||||||||||||
Loss
on extinguishment of debt
|
(26,863
|
)
|
(26,863
|
)
|
||||||||||||
Total
other income (expense)
|
(71,589
|
)
|
--
|
--
|
--
|
(71,589
|
)
|
|||||||||
Income
before provision for income taxes
|
21,981
|
(3,205
|
)
|
--
|
--
|
18,776
|
||||||||||
Provision
for income taxes
|
8,522
|
(1,113
|
)
|
--
|
1,147
|
8,556
|
||||||||||
Net
income
|
13,459
|
(2,092
|
)
|
--
|
(1,147
|
)
|
10,220
|
|||||||||
Cumulative
preferred dividend on Senior Preferred and
Class
B Preferred
Units
|
(25,395
|
)
|
(25,395
|
)
|
||||||||||||
Net
loss available to common shareholders
|
$
|
(11,936
|
)
|
$
|
(2,092
|
)
|
$
|
--
|
$
|
(1,147
|
)
|
$
|
(15,175
|
)
|
||
Basic
earnings per share
|
$
|
(0.41
|
)
|
$
|
(0.55
|
)
|
||||||||||
Diluted
earnings per share
|
$
|
(0.41
|
)
|
$
|
(0.55
|
)
|
||||||||||
Average
shares outstanding:
Basic
|
29,389
|
27,546
|
||||||||||||||
Diluted
|
29,389
|
27,546
|
Period
February 6, 2004 to March 31, 2004
(Successor)
|
|||||||||||||
(In
thousands, except
per
share data)
|
Previously
Reported
|
Revenue
Recognition
|
Cooperative
Advertising
|
As
Restated
|
|||||||||
Revenues
|
|||||||||||||
Net
sales
|
$
|
18,807
|
$
|
(1,597
|
)
|
$
|
(388
|
)
|
$
|
16,822
|
|||
Other
revenues
|
54
|
54
|
|||||||||||
Total
revenues
|
18,861
|
(1,597
|
)
|
(388
|
)
|
16,876
|
|||||||
Cost
of Sales
|
|||||||||||||
Costs
of sales
|
10,023
|
(672
|
)
|
9,351
|
|||||||||
Gross
profit
|
8,838
|
(925
|
)
|
(388
|
)
|
7,525
|
|||||||
Operating
Expenses
|
|||||||||||||
Advertising
and promotion
|
1,689
|
(34
|
)
|
(388
|
)
|
1,267
|
|||||||
General
and administrative
|
1,649
|
1,649
|
|||||||||||
Depreciation
|
41
|
41
|
|||||||||||
Amortization
of intangible assets
|
890
|
890
|
|||||||||||
Total
operating expenses
|
4,269
|
(34
|
)
|
(388
|
)
|
3,847
|
|||||||
Operating
income
|
4,569
|
(891
|
)
|
--
|
3,678
|
||||||||
Other
income (expense)
|
|||||||||||||
Interest
income
|
10
|
10
|
|||||||||||
Interest
expense
|
(1,735
|
)
|
(1,735
|
)
|
|||||||||
Total
other income (expense)
|
(1,725
|
)
|
--
|
--
|
(1,725
|
)
|
|||||||
Income
before provision for
income
taxes
|
2,844
|
(891
|
)
|
1,953
|
|||||||||
Provision
for income taxes
|
1,054
|
(330
|
)
|
724
|
|||||||||
Net
income
|
1,790
|
(561
|
)
|
--
|
1,229
|
||||||||
Cumulative
preferred dividend on Senior Preferred and Class B Preferred
Units
|
(1,390
|
)
|
(1,390
|
)
|
|||||||||
Net
loss available to common shareholders
|
$
|
400
|
$
|
(561
|
)
|
$
|
--
|
$
|
(161
|
)
|
|||
Basic
earnings per share
|
$
|
0.02
|
$
|
(0.01
|
)
|
||||||||
Diluted
earnings per share
|
$
|
0.02
|
$
|
(0.01
|
)
|
||||||||
Average
shares outstanding:
Basic
|
26,571
|
24,472
|
|||||||||||
Diluted
|
26,571
|
24,472
|
Period
April 1, 2003 to February 5, 2004
(Predecessor)
|
|||||||||||||
(In
thousands)
|
Previously
Reported
|
Revenue
Recognition
|
Cooperative
Advertising
|
As
Restated
|
|||||||||
Revenues
|
|||||||||||||
Net
sales
|
$
|
68,726
|
$
|
1,930
|
$
|
(2,587
|
)
|
$
|
68,069
|
||||
Other
revenues
|
333
|
333
|
|||||||||||
Total
revenues
|
69,059
|
1,930
|
(2,587
|
)
|
68,402
|
||||||||
Cost
of Sales
|
|||||||||||||
Costs
of sales
|
26,254
|
601
|
26,855
|
||||||||||
Gross
profit
|
42,805
|
1,329
|
(2,587
|
)
|
41,547
|
||||||||
Operating
Expenses
|
|||||||||||||
Advertising
and promotion
|
12,601
|
47
|
(2,587
|
)
|
10,061
|
||||||||
General
and administrative
|
12,068
|
12,068
|
|||||||||||
Depreciation
|
247
|
247
|
|||||||||||
Amortization
of intangible assets
|
4,251
|
4,251
|
|||||||||||
Loss on forgiveness of related party receivable
|
1,404
|
1,404
|
|||||||||||
Total
operating expenses
|
30,571
|
47
|
(2,587
|
)
|
28,031
|
||||||||
Operating
income
|
12,234
|
1,282
|
--
|
13,516
|
|||||||||
Other
income (expense)
|
|||||||||||||
Interest
income
|
38
|
38
|
|||||||||||
Interest
expense
|
(8,195
|
)
|
(8,195
|
)
|
|||||||||
Total
other income (expense)
|
(8,157
|
)
|
--
|
--
|
(8,157
|
)
|
|||||||
Income
before provision for
income
taxes
|
4,077
|
1,282
|
5,359
|
||||||||||
Provision
for income taxes
|
1,684
|
530
|
2,214
|
||||||||||
Net
income
|
$
|
2,393
|
$
|
752
|
$
|
--
|
$
|
3,145
|
|||||
Fiscal
Year Ended March 31, 2003
(Predecessor)
|
|||||||||||||
(In
thousands)
|
Previously
Reported
|
Revenue
Recognition
|
Cooperative
Advertising
|
As
Restated
|
|||||||||
Revenues
|
|||||||||||||
Net
sales
|
$
|
76,048
|
$
|
(1,567
|
)
|
$
|
(3,138
|
)
|
$
|
71,343
|
|||
Other
revenues
|
391
|
391
|
|||||||||||
Total
revenues
|
76,439
|
(1,567
|
)
|
(3,138
|
)
|
71,734
|
|||||||
Cost
of Sales
|
|||||||||||||
Costs
of sales
|
27,475
|
(458
|
)
|
27,017
|
|||||||||
Gross
profit
|
48,964
|
(1,109
|
)
|
(3,138
|
)
|
44,717
|
|||||||
Operating
Expenses
|
|||||||||||||
Advertising
and promotion
|
14,274
|
(20
|
)
|
(3,138
|
)
|
11,116
|
|||||||
General
and administrative
|
12,075
|
12,075
|
|||||||||||
Depreciation
|
301
|
301
|
|||||||||||
Amortization
of intangible assets
|
4,973
|
4,973
|
|||||||||||
Total
operating expenses
|
31,623
|
(20
|
)
|
(3,138
|
)
|
28,465
|
|||||||
Operating
income
|
17,341
|
(1,089
|
)
|
--
|
16,252
|
||||||||
Other
income (expense)
|
|||||||||||||
Interest
income
|
59
|
59
|
|||||||||||
Interest
expense
|
(9,806
|
)
|
(9,806
|
)
|
|||||||||
Loss
on extinguishment of debt
|
(685
|
)
|
(685
|
)
|
|||||||||
Total
other income (expense)
|
(10,432
|
)
|
--
|
--
|
(10,432
|
)
|
|||||||
Income
before provision for
income
taxes
|
6,909
|
(1,089
|
)
|
5,820
|
|||||||||
Provision
for income taxes
|
3,902
|
(615
|
)
|
|
3,287
|
||||||||
Income
from continuing operations
|
3,007
|
(474
|
)
|
--
|
2,533
|
||||||||
Discontinued
Operations
|
|||||||||||||
Loss
from operations of discontinued Pecos reporting unit, net of tax
benefit
of $1,848
|
(3,385
|
)
|
(3,385
|
)
|
|||||||||
Loss
on disposal of Pecos reporting unit, net of income tax benefit of
$1,233
|
(2,259
|
)
|
(2,259
|
)
|
|||||||||
Loss
before cumulative effect of change in accounting principle
|
(2,637
|
)
|
(474
|
)
|
--
|
(3,111
|
)
|
||||||
Cumulative
effect of change in accounting principle, net of income tax benefit
of
$6,567
|
(11,785
|
)
|
(11,785
|
)
|
|||||||||
Net
loss
|
$
|
(14,422
|
)
|
$
|
(474
|
)
|
$
|
--
|
$
|
(14,896
|
)
|
(In
thousands, except share data)
|
March
31, 2005
|
||||||
Assets
|
As
Previously Reported
|
As
Restated
|
|||||
Current
assets
|
|||||||
Cash
|
$
|
5,334
|
$
|
5,334
|
|||
Accounts
receivable
|
43,893
|
35,918
|
|||||
Inventories
|
21,580
|
24,833
|
|||||
Deferred
income tax assets
|
5,699
|
5,699
|
|||||
Prepaid
expenses and other current assets
|
3,152
|
3,152
|
|||||
Total
current assets
|
79,658
|
74,936
|
|||||
Property
and equipment
|
2,324
|
2,324
|
|||||
Goodwill
|
294,544
|
294,731
|
|||||
Intangible
assets
|
608,613
|
608,613
|
|||||
Other
long-term assets
|
15,996
|
15,996
|
|||||
Total
Assets
|
$
|
1,001,135
|
$
|
996,600
|
|||
Liabilities
and Shareholders’ Equity
|
|||||||
Current
liabilities
|
|||||||
Accounts
payable
|
$
|
21,705
|
$
|
21,705
|
|||
Accrued
liabilities
|
13,472
|
11,589
|
|||||
Current
portion of long-term debt
|
3,730
|
3,730
|
|||||
Total
current liabilities
|
38,907
|
37,024
|
|||||
Long-term
debt
|
491,630
|
491,630
|
|||||
Deferred
income tax liabilities
|
84,752
|
85,899
|
|||||
Total
liabilities
|
615,289
|
614,553
|
|||||
Shareholders’
Equity
|
|||||||
Preferred
stock - $0.01 per share par value
|
|||||||
Authorized
- 5,000 shares
|
|||||||
Issued
and outstanding - None
|
--
|
--
|
|||||
Common
stock - $.01 per share par value
|
|||||||
Authorized
- 250,000 shares
|
|||||||
Issued
and outstanding - 50,000 shares
|
500
|
500
|
|||||
Additional
paid-in capital
|
378,251
|
378,251
|
|||||
Treasury
stock - 2 shares at cost
|
(4
|
)
|
(4
|
)
|
|||
Accumulated
other comprehensive income
|
320
|
320
|
|||||
Retained
earnings
|
6,779
|
2,980
|
|||||
Total
shareholders’ equity
|
385,846
|
382,047
|
|||||
Total
Liabilities and Shareholders’ Equity
|
$
|
1,001,135
|
$
|
996,600
|
(In
thousands, except equity unit data)
|
March
31, 2004
|
||||||
Assets
|
As
Previously Reported
|
As
Restated
|
|||||
Current
assets
|
|||||||
Cash
|
$
|
3,393
|
$
|
3,393
|
|||
Accounts
receivable
|
15,732
|
13,369
|
|||||
Inventories
|
9,748
|
10,660
|
|||||
Deferred
income tax assets
|
1,647
|
1,647
|
|||||
Prepaid
expenses and other current assets
|
234
|
234
|
|||||
Total
current assets
|
30,754
|
29,303
|
|||||
Property
and equipment
|
880
|
880
|
|||||
Goodwill
|
55,594
|
55,781
|
|||||
Intangible
assets
|
236,611
|
236,611
|
|||||
Other
long-term assets
|
2,783
|
2,783
|
|||||
Total
Assets
|
$
|
326,622
|
$
|
325,358
|
|||
Liabilities
and Members’ Equity
|
|||||||
Current
liabilities
|
|||||||
Accounts
payable
|
$
|
5,281
|
$
|
5,281
|
|||
Accrued
liabilities
|
7,264
|
6,561
|
|||||
Current
portion of long-term debt
|
2,000
|
2,000
|
|||||
Total
current liabilities
|
14,545
|
13,842
|
|||||
Long-term
debt
|
146,694
|
146,694
|
|||||
Deferred
income tax liabilities
|
38,874
|
38,874
|
|||||
Total
liabilities
|
200,113
|
199,410
|
|||||
Members’
Equity
|
|||||||
Senior
Preferred Units - 23 units issued and outstanding
|
17,768
|
17,768
|
|||||
Class
B Preferred Units - 107 units issued and outstanding
|
96,807
|
96,807
|
|||||
Common
Units - 57,902 units issued and outstanding
|
5,273
|
5,273
|
|||||
Additional
paid-in capital
|
4,871
|
4,871
|
|||||
Retained
earnings
|
1,790
|
1,229
|
|||||
Total
members’ equity
|
126,509
|
125,948
|
|||||
Total
Liabilities and Members’ Equity
|
$
|
326,622
|
$
|
325,358
|
|
|
Medtech
|
|
Spic and Span
|
|
||
Medtech
revolving credit facility
|
|
$
|
195
|
|
$
|
11,650
|
|
Medtech
term loan facility
|
|
100,000
|
|
—
|
|
||
Medtech
subordinated notes
|
|
42,941
|
|
—
|
|
||
Issuance
of Preferred and Common Units
|
|
106,951
|
|
17,768
|
|
||
Total
sources of funds
|
|
$
|
250,087
|
|
$
|
29,418
|
|
|
|
Medtech
|
|
Spic and Span
|
|
Total
|
|
|||
Cash
|
|
$
|
2,168
|
|
$
|
1,063
|
|
$
|
3,231
|
|
Restricted
cash
|
|
700
|
|
—
|
|
700
|
|
|||
Accounts
receivable
|
|
10,622
|
|
1,849
|
|
12,471
|
|
|||
Inventories
|
|
9,959
|
|
908
|
|
10,867
|
|
|||
Prepaid
expenses and other current assets
|
|
151
|
|
31
|
|
182
|
|
|||
Property
and equipment
|
|
434
|
|
445
|
|
879
|
|
|||
Goodwill
|
|
55,639
|
|
—
|
|
55,639
|
|
|||
Intangible
assets
|
|
209,330
|
|
28,171
|
|
237,501
|
|
|||
Deferred
income taxes
|
|
—
|
|
141
|
|
141
|
|
|||
Accounts
payable
|
|
(6,672
|
)
|
(1,644
|
)
|
(8,316
|
)
|
|||
Accrued
liabilities
|
|
(6,264
|
)
|
(1,341
|
)
|
(7,605
|
)
|
|||
Long-term
debt
|
|
(71,868
|
)
|
(6,981
|
)
|
(78,849
|
)
|
|||
Deferred
income taxes
|
|
(36,601
|
)
|
—
|
|
(36,601
|
)
|
|||
|
|
$
|
167,598
|
|
$
|
22,642
|
|
$
|
190,240
|
|
Revolving
Credit Facility
|
|
$
|
3,512
|
|
Tranche
B Term Loan Facility
|
|
355,000
|
|
|
Tranche
C Term Loan Facility
|
|
100,000
|
|
|
9.25%
Senior Subordinated Notes
|
|
210,000
|
|
|
Issuance
of Preferred and Common units
|
|
58,579
|
|
|
Total
sources of funds
|
|
$
|
727,091
|
|
Cash
|
|
$
|
4,304
|
|
Accounts
receivable
|
|
13,186
|
|
|
Inventories
|
|
16,185
|
|
|
Prepaid
expenses and other current assets
|
|
1,391
|
|
|
Property
and equipment
|
|
2,982
|
|
|
Goodwill
|
|
217,234
|
|
|
Intangible
assets
|
|
352,460
|
|
|
Accounts
payable and accrued liabilities
|
|
(21,189
|
)
|
|
Long-term
debt
|
|
(172,898
|
)
|
|
Deferred
income taxes
|
|
(34,429
|
)
|
|
|
|
$
|
379,226
|
|
Accounts
receivable
|
|
$
|
2,136
|
|
Inventories
|
|
910
|
|
|
Prepaid
expenses and other current assets
|
|
37
|
|
|
Property
and equipment
|
|
5
|
|
|
Goodwill
|
|
21,858
|
|
|
Intangible
assets
|
|
27,158
|
|
|
Accounts
payable and accrued liabilities
|
|
(1,455
|
)
|
|
|
|
$
|
50,649
|
|
|
|
Pro Forma
Twelve months ended
March 31, 2005
|
|
Pro Forma
Twelve months ended
March 31, 2004
|
|
||
|
|
(unaudited)
|
|
(unaudited)
|
|
||
(Restated)
|
(Restated)
|
||||||
Net
sales
|
|
$
|
295,247
|
|
$
|
282,418
|
|
Income
before income taxes
|
|
$
|
29,277
|
|
$
|
37,921
|
|
Net
income
|
|
$
|
17,733
|
|
$
|
23,156
|
|
|
|
March 31,
|
|
||||
|
|
2005
|
|
2004
|
|
||
(Restated)
|
|||||||
|
|
(successor basis)
|
|
||||
Accounts
receivable
|
|
$
|
36,985
|
|
$
|
13,775
|
|
Other
receivables
|
|
835
|
|
341
|
|
||
Less
allowances for discounts, returns and bad debts
|
|
(1,902
|
)
|
(747
|
)
|
||
|
|
$
|
35,918
|
|
$
|
13,369
|
|
|
|
March 31,
|
|
||||
|
|
2005
|
|
2004
|
|
||
(Restated)
|
|||||||
|
|
(successor basis)
|
|
||||
Packaging
and raw materials
|
|
$
|
3,587
|
|
$
|
1,562
|
|
Finished
goods
|
|
21,246
|
|
9,098
|
|
||
|
|
$
|
24,833
|
|
$
|
10,660
|
|
|
|
March 31,
|
|
||||
|
|
2005
|
|
2004
|
|
||
|
|
(Successor Basis)
|
|
||||
Machinery
|
|
$
|
2,828
|
|
$
|
—
|
|
Computer
equipment
|
|
771
|
|
341
|
|
||
Furniture
and fixtures
|
|
515
|
|
555
|
|
||
Leasehold
improvements
|
|
173
|
|
19
|
|
||
|
|
4,287
|
|
915
|
|
||
Less
accumulated depreciation
|
|
(1,963
|
)
|
(35
|
)
|
||
|
|
$
|
2,324
|
|
$
|
880
|
|
Balance
as of March 31, 2003
|
|
$
|
—
|
|
Goodwill
acquired in the Medtech Acquisition
(Restated)
|
|
55,781
|
|
|
Balance
as of March 31, 2004
(Restated)
|
|
55,781
|
|
|
Goodwill
acquired in the Bonita Bay Acquisition
|
|
217,234
|
|
|
Goodwill
acquired in the Vetco Acquisition
|
|
21,858
|
|
|
Purchase
accounting adjustments related to fiscal 2004 acquisitions
|
|
(142
|
)
|
|
Balance
as of March 31, 2005 (Restated)
|
|
$
|
294,731
|
|
|
|
Year ended
March 31,
2003
|
|
|
(Restated)
|
||||
|
|
(predecessor basis)
|
|
|
Net
loss
|
|
$
|
(14,896
|
)
|
Add
back the cumulative effect of change in accounting principle, net
of
income tax benefit
of
$6,467, related to the adoption of SFAS 142
|
|
11,785
|
|
|
Adjusted
net loss
|
|
$
|
(3,111
|
)
|
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying
Amount
|
|
|||
|
|
|
|
(successor basis)
|
|
|
|
|||
Intangible
assets:
|
|
|
|
|
|
|
|
|||
Indefinite
lived trademarks
|
|
$
|
522,346
|
|
$
|
—
|
|
$
|
522,346
|
|
Amortizable
intangible assets:
|
|
|
|
|
|
|
|
|||
Trademarks
|
|
94,900
|
|
(8,775
|
)
|
86,125
|
|
|||
Non-compete
agreement
|
|
158
|
|
(16
|
)
|
142
|
|
|||
|
|
617,404
|
|
(8,791
|
)
|
608,613
|
|
|||
Deferred
financing costs, net
|
|
13,193
|
|
—
|
|
13,193
|
|
|||
Fair
value of interest rate caps
|
|
2,803
|
|
—
|
|
2,803
|
|
|||
Total
|
|
$
|
633,400
|
|
$
|
(8,791
|
)
|
$
|
624,609
|
|
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying
Amount
|
|
|||
|
|
|
|
(successor basis)
|
|
|
|
|||
Intangible
assets:
|
|
|
|
|
|
|
|
|||
Indefinite
lived trademarks
|
|
$
|
181,361
|
|
$
|
—
|
|
$
|
181,361
|
|
Amortizable
intangible assets:
|
|
|
|
|
|
|
|
|||
Trademarks
|
|
56,140
|
|
(890
|
)
|
55,250
|
|
|||
|
|
237,501
|
|
(890
|
)
|
236,611
|
|
|||
Deferred
financing costs, net
|
|
2,783
|
|
—
|
|
2,783
|
|
|||
Total
|
|
$
|
240,284
|
|
$
|
(890
|
)
|
$
|
239,394
|
|
Year ending March 31,
|
|
|||
2006
|
$
|
8,592
|
||
2007
|
8,592
|
|||
2008
|
8,592
|
|||
2009
|
8,592
|
|||
2010
|
7,168
|
|||
Thereafter
|
44,731
|
|||
Total
|
$
|
86,267
|
|
|
March 31,
|
|
||||
|
|
2005
|
|
2004
|
|
||
(Restated)
|
|||||||
|
|
(successor basis)
|
|
||||
Accrued
marketing costs
|
|
$
|
2,693
|
|
$
|
1,631
|
|
Reserve
for Pecos returns
|
|
242
|
|
1,186
|
|
||
Accrued
payroll
|
|
2,004
|
|
1,345
|
|
||
Accrued
commissions
|
|
184
|
|
296
|
|
||
Interest
payable
|
|
7,060
|
|
1,241
|
|
||
Income
taxes payable
|
|
(1,144)
|
|
(508)
|
|
||
Other
|
|
550
|
|
1,370
|
|
||
|
|
$
|
11,589
|
|
$
|
6,561
|
|
|
|
March 31,
|
|
||||
|
|
2005
|
|
2004
|
|
||
|
|
(successor basis)
|
|
||||
Tranche
B Term Loan Facility
|
|
$
|
369,360
|
|
$
|
—
|
|
Senior
Subordinated Notes
|
|
126,000
|
|
—
|
|
||
Medtech
Revolving Credit Facility
|
|
—
|
|
10,548
|
|
||
Medtech
Term Loan Facility
|
|
—
|
|
100,000
|
|
||
Medtech
Subordinated Notes
|
|
—
|
|
38,146
|
|
||
|
|
495,360
|
|
148,694
|
|
||
Less:
current portion
|
|
(3,730
|
)
|
(2,000
|
)
|
||
Long-term
debt
|
|
$
|
491,630
|
|
$
|
146,694
|
|
Year ending March 31,
|
|
|||
2006
|
$
|
3,730
|
||
2007
|
3,730
|
|||
2008
|
3,730
|
|||
2009
|
3,730
|
|||
2010
|
3,730
|
|||
Thereafter
|
476,710
|
|||
|
$
|
495,360
|
|
Operating
|
|||
Year ending
March 31,
|
Leases
|
|||
2006
|
$
|
471
|
||
2007
|
371
|
|||
2008
|
371
|
|||
2009
|
371
|
|||
2010
|
32
|
|||
|
$
|
1,616
|
||
|
|
|
Year Ended
March 31,
2005
|
|
February 6, 2004
to March 31,
2004
|
|
April 1, 2003
to February 5,
2004
|
|
Year Ended
March 31,
2003
|
|
||||
(Restated)
|
|||||||||||||
|
|
(successor basis)
|
|
(predecessor basis)
|
|
||||||||
Current:
|
|
|
|
|
|
|
|
|
|
||||
Federal
|
|
$
|
(544)
|
|
$
|
4
|
|
$
|
406
|
$
|
1,781
|
|
|
State
|
|
654
|
|
24
|
|
90
|
(116
|
)
|
|||||
Foreign
|
|
102
|
|
—
|
|
—
|
|
—
|
|
||||
Deferred:
|
|
|
|
|
|
|
|
|
|
||||
Federal
|
|
7,495
|
|
662
|
|
1,620
|
|
1,530
|
|
||||
State
|
|
849
|
|
34
|
|
98
|
|
92
|
|
||||
Provision
for income taxes from continuing operations
|
|
8,556
|
|
724
|
|
2,214
|
|
3,287
|
|
||||
Benefit
for income taxes from loss from operations of discontinued Pecos
reporting
unit
|
|
—
|
|
—
|
|
—
|
|
(1,848
|
)
|
||||
Benefit
for income taxes from loss on disposal of Pecos reporting
unit
|
|
—
|
|
—
|
|
—
|
|
(1,233
|
)
|
||||
Benefit
for income taxes from cumulative effect of changes in accounting
principle
|
|
—
|
|
—
|
|
—
|
|
(6,467
|
)
|
||||
|
|
$
|
8,556
|
|
$
|
724
|
|
$
|
2,214
|
|
$
|
(6,261
|
)
|
|
|
March 31,
|
|
||||
|
|
2005
|
|
2004
|
|
||
(Restated)
|
|||||||
|
|
(successor basis)
|
|
||||
Deferred
tax assets:
|
|
|
|
|
|
||
Allowance
for doubtful accounts and sales returns
|
|
$
|
992
|
|
$
|
622
|
|
Inventory
capitalization
|
|
359
|
|
83
|
|
||
Inventory
reserve
|
|
567
|
|
45
|
|
||
Inventory
step-up
|
|
—
|
|
(122
|
)
|
||
Net
operating loss carryforwards
|
|
7,990
|
|
8,306
|
|
||
Property
and equipment
|
|
50
|
|
—
|
|
||
State
income taxes
|
|
2,978
|
|
747
|
|
||
Other
|
|
430
|
|
270
|
|
||
Reserve
for coupons
|
|
114
|
|
—
|
|
||
Vacation
accrual
|
|
93
|
|
—
|
|
||
AMT
tax credit carryforwards
|
|
278
|
|
—
|
|
||
Deferred
tax liabilities:
|
|
|
|
|
|
||
Intangible
assets
|
|
(93,851
|
)
|
(47,145
|
)
|
||
Interest
rate caps
|
|
(200
|
)
|
—
|
|
||
Property
and equipment
|
|
—
|
|
(33
|
)
|
||
Other
|
|
—
|
|
—
|
|
||
|
|
$
|
(80,200
|
)
|
$
|
(37,227
|
)
|
|
|
Year Ended
March 31,
2005
|
|
February 6
to March 31,
2004
|
|
April 1, 2003
to February 5,
2004
|
|
Year Ended
March 31,
2003
|
|
||||
(Restated)
|
|||||||||||||
|
|
(successor basis)
|
|
(predecessor basis)
|
|
||||||||
Income
tax provision at statutory rate
|
|
$
|
6,384
|
|
$
|
664
|
|
$
|
1,822
|
|
$
|
1,979
|
|
Foreign
income tax provision
|
|
102
|
|
—
|
|
—
|
|
—
|
|
||||
State
income taxes (net of federal income tax benefit)
|
|
901
|
|
23
|
|
165
|
|
(106
|
)
|
||||
Increase
in graduated income tax rate on deferred tax liabilities
|
1,147
|
—
|
—
|
—
|
|||||||||
Change
in effective state tax rate
|
|
—
|
|
—
|
|
—
|
|
190
|
|
||||
Amortization
of intangible assets
|
|
—
|
|
—
|
|
94
|
|
193
|
|
||||
Valuation
allowance
|
|
—
|
|
—
|
|
321
|
|
992
|
|
||||
Other
|
|
22
|
|
37
|
|
(188
|
)
|
39
|
|
||||
Provision
for income taxes from continuing operations
|
|
$
|
8,556
|
|
$
|
724
|
|
$
|
2,214
|
|
$
|
3,287
|
|
|
|
Year
Ended
March 31,
2005
|
|
February 6,
2004
to
March 31,
2004
|
|
||
(Restated)
|
|||||||
Numerator
|
|||||||
Net
income as reported
|
|
$
|
10,220
|
|
$
|
1,229
|
|
Cumulative
preferred dividends on Senior Preferred and Class B Preferred
units
|
|
(25,395
|
)
|
(1,390
|
)
|
||
Net
loss available to common shareholders
|
|
$
|
(15,175
|
)
|
$
|
(161
|
)
|
Denominator
|
|||||||
Weighted
average shares:
|
|||||||
Basic
|
27,546
|
24,472
|
|||||
Diluted
|
27,546
|
24,472
|
|||||
Earnings
per Common Share
|
|||||||
Basic
|
$
|
(0.55
|
)
|
$
|
(0.01
|
)
|
|
Diluted
|
$
|
(0.55)
|
$
|
(0.01
|
)
|
Year ended
March 31, 2005 (Restated)
(successor
basis)
|
Over-the-Counter
Drug
|
Personal
Care
|
Household
Cleaning
|
Other
|
Consolidated
|
|||||||||||
Net
sales
|
$
|
159,010
|
$
|
32,162
|
$
|
97,746
|
$
|
—
|
$
|
288,918
|
||||||
Other
revenues
|
—
|
—
|
151
|
—
|
151
|
|||||||||||
Total
revenues
|
159,010
|
32,162
|
97,897
|
—
|
289,069
|
|||||||||||
Cost
of sales
|
60,570
|
16,400
|
62,039
|
—
|
139,009
|
|||||||||||
Gross
profit
|
98,440
|
15,762
|
35,858
|
—
|
150,060
|
|||||||||||
Advertising
and promotion
|
18,543
|
5,498
|
5,656
|
—
|
29,697
|
|||||||||||
Contribution
margin
|
$
|
79,897
|
$
|
10,264
|
$
|
30,202
|
$
|
—
|
120,363
|
|||||||
Other
operating expenses
|
29,998
|
|||||||||||||||
Operating
income
|
90,365
|
|||||||||||||||
Other
income (expense)
|
(71,589
|
)
|
||||||||||||||
Provision
from income taxes
|
(8,556
|
)
|
||||||||||||||
Net
income
|
$
|
10,220
|
||||||||||||||
|
Period from February 6, 2004 to
March 31, 2004
(Restated)
(successor basis)
|
Over-the-Counter
Drug
|
Personal
Care
|
Household
Cleaning
|
Other
|
Consolidated
|
|||||||||||
Net
sales
|
$
|
11,288
|
$
|
4,139
|
$
|
1,395
|
$
|
—
|
$
|
16,822
|
||||||
Other
revenues—related party
|
—
|
—
|
—
|
54
|
54
|
|||||||||||
Total
revenues
|
11,288
|
4,139
|
1,395
|
54
|
16,876
|
|||||||||||
Cost
of sales
|
5,775
|
2,619
|
957
|
—
|
9,351
|
|||||||||||
Gross
profit
|
5,513
|
1,520
|
438
|
54
|
7,525
|
|||||||||||
Advertising
and promotion
|
711
|
510
|
46
|
—
|
1,267
|
|||||||||||
Contribution
margin
|
$
|
4,802
|
$
|
1,010
|
$
|
392
|
$
|
54
|
6,258
|
|||||||
Other
operating expenses
|
2,580
|
|||||||||||||||
Operating
income
|
3,678
|
|||||||||||||||
Other
income (expense)
|
(1,725
|
)
|
||||||||||||||
Provision
for income taxes
|
(724
|
)
|
||||||||||||||
Net
income
|
$
|
1,229
|
||||||||||||||
|
Period from April 1, 2003 to February 5, 2004
(Restated)
(predecessor basis)
|
Over-the-Counter
Drug
|
Personal Care
|
Other
|
Consolidated
|
|||||||||
Net
sales
|
$
|
43,712
|
$
|
24,357
|
$
|
—
|
$
|
68,069
|
|||||
Other
revenues—related party
|
—
|
—
|
333
|
333
|
|||||||||
Total
revenues
|
43,712
|
24,357
|
333
|
68,402
|
|||||||||
Cost
of sales
|
15,092
|
11,763
|
—
|
26,855
|
|||||||||
Gross
profit
|
28,620
|
12,594
|
333
|
41,547
|
|||||||||
Advertising
and promotion
|
5,214
|
4,847
|
—
|
10,061
|
|||||||||
Contribution
margin
|
$
|
23,406
|
$
|
7,747
|
$
|
333
|
31,486
|
||||||
Other
operating expenses
|
17,970
|
||||||||||||
Operating
income
|
13,516
|
||||||||||||
Other
income (expense)
|
(8,157
|
)
|
|||||||||||
Provision
for income taxes
|
(2,214
|
)
|
|||||||||||
Net
income
|
$
|
3,145
|
|||||||||||
|
Year ended March 31, 2003
(Restated)
(predecessor basis)
|
Over-the-Counter
Drug
|
Personal Care
|
Other
|
Consolidated
|
|||||||||
Net
sales
|
$
|
40,330
|
$
|
31,013
|
$
|
—
|
$
|
71,343
|
|||||
Other
revenues—related party
|
—
|
—
|
391
|
391
|
|||||||||
Total
revenues
|
40,330
|
31,013
|
391
|
71,734
|
|||||||||
Cost
of sales
|
12,217
|
14,800
|
—
|
27,017
|
|||||||||
Gross
profit
|
28,113
|
16,213
|
391
|
44,717
|
|||||||||
Advertising
and promotion
|
5,852
|
5,264
|
—
|
11,116
|
|||||||||
Contribution
margin
|
$
|
22,261
|
$
|
10,949
|
$
|
391
|
33,601
|
||||||
Other
operating expenses
|
17,349
|
||||||||||||
Operating
income
|
16,252
|
||||||||||||
Other
income (expense)
|
(10,432
|
)
|
|||||||||||
Provision
for income taxes
|
(3,287
|
)
|
|||||||||||
Discontinued
operations
|
(5,644
|
)
|
|||||||||||
Cumulative
effect of change in accounting principle
|
(11,785
|
)
|
|||||||||||
Net
(loss)
|
$
|
(14,896
|
)
|
||||||||||
|
|
|
Quarter Ended
|
|
Period from
Jan 1,
2004
through
|
|
Period
from Feb. 6,
2004
through
|
|
Quarter Ended
|
|
|||||||||||||||||||
|
|
June 30,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
Feb. 5,
|
|
Mar. 31,
|
|
June 30,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
Mar. 31,
|
|
|||||||||
|
|
2003
|
|
2003
|
|
2003
|
|
2004
|
|
2004
|
|
2004
|
|
2004
|
|
2004
|
|
2005
|
|
|||||||||
(Restated)
|
||||||||||||||||||||||||||||
Income
Statement Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total
revenues
|
|
$
|
19,685
|
|
$
|
22,808
|
|
$
|
18,931
|
|
$
|
6,978
|
|
$
|
16,876
|
|
$
|
58,755
|
|
$
|
79,958
|
|
$
|
73,043
|
|
$
|
77,313
|
|
Cost
of sales
|
|
7,411
|
|
9,041
|
|
7,567
|
|
2,836
|
|
9,351
|
|
33,138
|
|
37,941
|
|
33,241
|
|
34,689
|
|
|||||||||
Gross
profit
|
|
12,274
|
|
13,767
|
|
11,364
|
|
4,142
|
|
7,525
|
|
25,617
|
|
42,017
|
|
39,802
|
|
42,624
|
|
|||||||||
Advertising
and promotion expenses
|
|
3,290
|
|
4,014
|
|
2,286
|
|
471
|
|
1,267
|
|
10,785
|
|
8,449
|
|
5,168
|
|
5,295
|
|
|||||||||
Depreciation
and amortization expenses
|
|
1,312
|
|
1,318
|
|
1,319
|
|
549
|
|
931
|
|
2,289
|
|
2,254
|
|
2,605
|
|
2,652
|
|
|||||||||
General
and administrative expenses
|
|
2,441
|
|
2,493
|
|
2,879
|
|
4,255
|
|
1,649
|
|
4,921
|
|
4,502
|
|
5,690
|
|
5,085
|
|
|||||||||
Interest
expense, net
|
|
2,171
|
|
2,217
|
|
2,148
|
|
1,621
|
|
1,725
|
|
11,049
|
|
10,834
|
|
11,994
|
|
10,849
|
|
|||||||||
Other
expense
|
|
—
|
|
—
|
|
—
|
|
1,404
|
|
—
|
|
7,567
|
|
—
|
|
—
|
|
19,296
|
|
|||||||||
Income
from continuing operations before taxes
|
|
3,060
|
|
3,725
|
|
2,732
|
|
(4158
|
)
|
1,953
|
|
(10,994
|
)
|
15,978
|
|
14,345
|
|
(553
|
)
|
|||||||||
Provision/(benefit)
for income taxes
|
|
1,073
|
|
1,565
|
|
1,084
|
|
(1,508
|
)
|
724
|
|
(3,902
|
)
|
6,076
|
5,218
|
|
1,164
|
|
||||||||||
Net
income/(loss)
|
|
$
|
1,987
|
|
$
|
2,160
|
|
$
|
1,648
|
|
$
|
(2,650
|
)
|
1,229
|
|
(7,092
|
)
|
9,902
|
|
9,127
|
|
(1,717
|
)
|
|||||
Cumulative
preferred dividends on Senior Preferred and Class B
Preferred units
|
|
|
|
|
|
|
|
|
|
(1,390
|
)
|
(3,619
|
)
|
(3,827
|
)
|
(3,895
|
)
|
(14,054
|
)
|
|||||||||
Net
income (loss) available to common shareholders
|
|
|
|
|
|
|
|
|
|
$
|
(161)
|
))
|
$
|
(10,711
|
)
|
$
|
6,075
|
|
$
|
5,232
|
|
$
|
(15,771
|
)
|
||||
Net
income (loss) per common share
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Basic
|
|
|
|
|
|
|
|
|
|
$
(0.01)
|
|
$
(0.44)
|
|
$
0.25
|
|
$
0.21
|
|
$
(0.43
|
)
|
|||||||||
Diluted
|
|
|
|
|
|
|
|
|
|
$
(0.01)
|
|
$
(0.44)
|
|
$
0.23
|
|
$
0.20
|
|
$
(0.43
|
)
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted
Average Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Basic
|
|
|
|
|
|
|
|
|
|
24,472
|
|
24,511
|
|
24,615
|
|
24,725
|
|
36,497
|
|
|||||||||
Diluted
|
|
|
|
|
|
|
|
|
|
24,472
|
|
24,511
|
|
26,512
|
|
26,613
|
|
36,497
|
|
|
Quarter Ended
|
|
Period from
Jan 1,
2004 through
|
|
Period
from Feb. 6,
2004
through
|
|
Quarter Ended
|
|
|||||||||||||||||||
|
|
June 30,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
Feb. 5,
|
|
Mar. 31,
|
|
June 30,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
Mar. 31,
|
|
|||||||||
|
|
2003
|
|
2003
|
|
2003
|
|
2004
|
|
2004
|
|
2004
|
|
2004
|
|
2004
|
|
2005
|
|
|||||||||
(As
Previously Reported)
|
||||||||||||||||||||||||||||
Income
Statement Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total
revenues
|
|
$
|
19,377
|
|
$
|
23,781
|
|
$
|
19,219
|
|
$
|
6,682
|
|
$
|
18,861
|
|
$
|
67,757
|
|
$
|
81,346
|
|
$
|
75,854
|
|
$
|
78,361
|
|
Cost
of sales
|
|
7,047
|
|
9,040
|
|
7,485
|
|
2,682
|
|
10,023
|
|
36,123
|
|
37,843
|
|
33,923
|
|
33,459
|
|
|||||||||
Gross
profit
|
|
12,330
|
|
14,741
|
|
11,734
|
|
4,000
|
|
8,838
|
|
31,634
|
|
43,503
|
|
41,931
|
|
44,902
|
|
|||||||||
Advertising
and promotion expenses
|
|
4,208
|
|
5,046
|
|
2,736
|
|
611
|
|
1,689
|
|
13,771
|
|
10,304
|
|
7,265
|
|
7,062
|
|
|||||||||
Depreciation
and amortization expenses
|
|
1,312
|
|
1,318
|
|
1,319
|
|
549
|
|
931
|
|
2,289
|
|
2,254
|
|
2,605
|
|
2,652
|
|
|||||||||
General
and administrative expenses
|
|
2,441
|
|
2,493
|
|
2,879
|
|
4,255
|
|
1,649
|
|
4,921
|
|
4,502
|
|
5,690
|
|
5,085
|
|
|||||||||
Interest
expense, net
|
|
2,171
|
|
2,217
|
|
2,148
|
|
1,621
|
|
1,725
|
|
11,049
|
|
10,834
|
|
11,994
|
|
10,849
|
|
|||||||||
Other
expense
|
|
—
|
|
—
|
|
—
|
|
1,404
|
|
—
|
|
7,567
|
|
—
|
|
—
|
|
19,296
|
|
|||||||||
Income
from continuing operations before taxes
|
|
2,198
|
|
3,667
|
|
2,652
|
|
(4,440
|
)
|
2,844
|
|
(7,963
|
)
|
15,609
|
|
14,377
|
|
(42
|
)
|
|||||||||
Provision/(benefit)
for income taxes
|
|
771
|
|
1,541
|
|
1,052
|
|
(1,680
|
)
|
1,054
|
|
(2,826
|
)
|
5,936
|
5,230
|
|
182
|
|
||||||||||
Net
income/(loss)
|
|
$
|
1,427
|
|
$
|
2,126
|
|
$
|
1,600
|
|
$
|
(2,760
|
)
|
1,790
|
|
(5,137
|
)
|
9,673
|
|
9,147
|
|
(224
|
)
|
|||||
Cumulative
preferred dividends on Senior Preferred and Class B
Preferred units
|
|
|
|
|
|
|
|
|
|
(1,390
|
)
|
(3,619
|
)
|
(3,827
|
)
|
(3,895
|
)
|
(14,054
|
)
|
|||||||||
Net
income (loss) available to common shareholders
|
|
|
|
|
|
|
|
|
|
$
|
400
|
))
|
$
|
(8,756
|
)
|
$
|
5,846
|
|
$
|
5,252
|
|
$
|
(14,278
|
)
|
||||
Net
income (loss) per common share
|
|
|
|
|
|
|
|
|
|
$
0.02
|
$
(0.33
|
) |
$ 0.22
|
$ 0.20
|
$
(0.37
|
)
|
||||||||||||
Basic
and diluted weighted average shares outstanding
|
26,571
|
26,516
|
26,512
|
26,613
|
38,074
|
|
|
Balance at
Beginning of
Year
|
|
Charged to
Expense
|
|
Deductions
|
|
Other
|
|
Balance at
End of
Year
|
|
|||||
(Restated)
|
||||||||||||||||
Predecessor
Basis
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Year
ended March 31, 2003
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deferred
tax valuation allowance
|
|
$
|
427
|
|
$
|
992
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,419
|
|
Reserves
for sales returns and discounts
|
|
206
|
|
4,234
|
|
4,218
|
|
—
|
|
222
|
|
|||||
Allowance
for doubtful accounts
|
|
57
|
|
126
|
|
94
|
|
—
|
|
89
|
|
|||||
Allowance
for inventory obsolescence
|
|
184
|
|
87
|
|
193
|
|
—
|
|
78
|
|
|||||
Pecos
returns reserve
|
|
888
|
|
7,556
|
|
4,340
|
|
—
|
|
4,104
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Period
from April 1, 2003 to February 5, 2004
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deferred
tax valuation allowance
|
|
1,419
|
|
325
|
|
—
|
|
—
|
|
1,744
|
|
|||||
Reserves
for sales returns and discounts
|
|
222
|
|
3,348
|
|
3,025
|
|
—
|
|
545
|
|
|||||
Allowance
for doubtful accounts
|
|
89
|
|
166
|
|
114
|
|
—
|
|
141
|
|
|||||
Allowance
for inventory obsolescence
|
|
78
|
|
350
|
|
340
|
|
—
|
|
88
|
|
|||||
Pecos
returns reserve
|
|
4,104
|
|
—
|
|
2,755
|
|
—
|
|
1,349
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Successor
Basis
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Period
from February 6, 2004 to March 31, 2004
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deferred
tax valuation allowance
|
|
1,744
|
|
—
|
|
—
|
|
(1,744
|
)(1)
|
—
|
|
|||||
Reserves
for sales returns and discounts
|
|
652
|
|
315
|
|
568
|
|
288
|
(2)
|
687
|
|
|||||
Allowance
for doubtful accounts
|
|
141
|
|
46
|
|
140
|
|
13
|
(2)
|
60
|
|
|||||
Allowance
for inventory obsolescence
|
|
88
|
|
70
|
|
60
|
|
26
|
(2)
|
124
|
|
|||||
Pecos
returns reserve
|
|
1,349
|
|
—
|
|
163
|
|
—
|
|
1,186
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Year
ended March 31, 2005
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Reserves
for sales returns and discounts
|
|
687
|
|
10,245
|
|
9,280
|
|
—
|
|
1,652
|
|
|||||
Allowance
for doubtful accounts
|
|
60
|
|
32
|
|
33
|
|
191
|
(3)
|
250
|
|
|||||
Allowance
for inventory obsolescence
|
|
124
|
|
769
|
|
266
|
|
823
|
(3)
|
1,450
|
|
|||||
Pecos
returns reserve
|
|
1,186
|
|
—
|
|
944
|
|
—
|
|
242
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
PRICEWATERHOUSECOOPERS LLP
|
|
|
|
Salt
Lake City, Utah
|
|
June 3,
2005, except for the fourth paragraph of Note 1
and
Note 2 for which the date is January 9,
2006
|
/s/
PRICEWATERHOUSECOOPERS LLP
|
|
|
|
Salt
Lake City, Utah
|
|
July 2,
2004, except for the fourth paragraph of Note 1
and
Note 2 for which the date is January 9,
2006
|
|
|
Year Ended
March 31, 2005
|
|
February 6, 2004
to March 31, 2004
|
|
April 1, 2003
to February 5, 2004
|
|
Year Ended
March 31, 2003
|
|
||||
(Restated)
|
(Restated)
|
||||||||||||
|
|
(successor basis)
|
|
(predecessor basis)
|
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
||||
Net
sales
|
|
$
|
288,918
|
|
$
|
16,822
|
|
$
|
68,069
|
|
$
|
71,343
|
|
Other
revenues
|
|
151
|
|
—
|
|
—
|
|
—
|
|
||||
Other
revenues—related parties
|
|
—
|
|
54
|
|
333
|
|
391
|
|
||||
Total
revenues
|
|
289,069
|
|
16,876
|
|
68,402
|
|
71,734
|
|
||||
Cost
of Sales:
|
|
|
|
|
|
|
|
|
|
||||
Cost
of sales
|
|
139,009
|
|
9,351
|
|
26,855
|
|
27,017
|
|
||||
Gross
profit
|
|
150,060
|
|
7,525
|
|
41,547
|
|
44,717
|
|
||||
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
||||
Advertising
and promotion
|
|
29,697
|
|
1,267
|
|
10,061
|
|
11,116
|
|
||||
General
and administrative
|
|
20,198
|
|
1,649
|
|
12,068
|
|
12,075
|
|
||||
Depreciation
|
|
1,899
|
|
41
|
|
247
|
|
301
|
|
||||
Amortization
of intangible assets
|
|
7,901
|
|
890
|
|
4,251
|
|
4,973
|
|
||||
Loss
on forgiveness of related party receivable
|
|
—
|
|
—
|
|
1,404
|
|
—
|
|
||||
Total
operating expenses
|
|
59,695
|
|
3,847
|
|
28,031
|
|
28,465
|
|
||||
Operating
income
|
|
90,365
|
|
3,678
|
|
13,516
|
|
16,252
|
|
||||
Other
Income (Expenses)
|
|
|
|
|
|
|
|
|
|
||||
Interest
income
|
|
371
|
|
10
|
|
38
|
|
59
|
|
||||
Interest
expense
|
|
(45,097
|
)
|
(1,735
|
)
|
(8,195
|
)
|
(9,806
|
)
|
||||
Loss
on disposal of property and equipment
|
|
(9
|
)
|
—
|
|
—
|
|
—
|
|
||||
Loss
on extinguishment of debt
|
|
(26,854
|
)
|
—
|
|
—
|
|
(685
|
)
|
||||
Total
other income (expense)
|
|
(71,589
|
)
|
(1,725
|
)
|
(8,157
|
)
|
(10,432
|
)
|
||||
Income
from continuing operations before income taxes
|
|
18,776
|
|
1,953
|
|
5,359
|
|
5,820
|
|
||||
Provision
for Income Taxes
|
|
(8,556
|
)
|
(724
|
)
|
(2,214
|
)
|
(3,287
|
)
|
||||
Income
from continuing operations
|
|
10,220
|
|
1,229
|
|
3,145
|
|
2,533
|
|
||||
Discontinued
Operations
|
|
|
|
|
|
|
|
|
|
||||
Loss
from operations of discontinued Pecos reporting unit, net of income
tax
benefit of $1,848
|
|
—
|
|
—
|
|
—
|
|
(3,385
|
)
|
||||
Loss
on disposal of Pecos reporting unit, net of income tax benefit of
$1,233
|
|
—
|
|
—
|
|
—
|
|
(2,259
|
)
|
||||
Income
(loss) before cumulative effect of change in accounting
principle
|
|
10,220
|
|
1,229
|
|
3,145
|
|
(3,111
|
)
|
||||
Cumulative
effect of change in accounting principle, net of income tax benefit
of $6,467
|
|
—
|
|
—
|
|
—
|
|
(11,785
|
)
|
||||
Net
income (loss)
|
|
$
|
10,220
|
|
$
|
1,229
|
|
$
|
3,145
|
|
$
|
(14,896
|
)
|
|
|
March 31,
|
|
||||
|
|
2005
|
|
2004
|
|
||
(Restated)
|
|||||||
|
|
(successor basis)
|
|
||||
ASSETS
|
|
|
|
|
|
||
Current
assets:
|
|
|
|
|
|
||
Cash
|
|
$
|
5,334
|
|
$
|
3,393
|
|
Accounts
receivable
|
|
35,918
|
|
13,369
|
|
||
Inventories
|
|
24,833
|
|
10,660
|
|
||
Deferred
income tax asset
|
|
5,699
|
|
1,647
|
|
||
Prepaid
expenses and other current assets
|
|
3,152
|
|
234
|
|
||
Total
current assets
|
|
74,936
|
|
29,303
|
|
||
Property
and equipment
|
|
2,324
|
|
880
|
|
||
Goodwill
|
|
294,731
|
|
55,781
|
|
||
Other
long-term assets
|
|
624,609
|
|
239,394
|
|
||
Total
assets
|
|
$
|
996,600
|
|
$
|
325,358
|
|
|
|
|
|
|
|
||
LIABILITIES
AND MEMBERS’ EQUITY
|
|
|
|
|
|
||
Current
liabilities:
|
|
|
|
|
|
||
Accounts
payable
|
|
$
|
21,705
|
|
$
|
5,281
|
|
Accrued
expenses
|
|
11,589
|
|
6,561
|
|
||
Current
portion of long-term debt
|
|
3,730
|
|
2,000
|
|
||
Total
current liabilities
|
|
37,024
|
|
13,842
|
|
||
Long-term
debt
|
|
491,630
|
|
146,694
|
|
||
Deferred
income tax liability
|
|
85,899
|
|
38,874
|
|
||
Total
liabilities
|
|
614,553
|
|
199,410
|
|
||
Commitments
and contingencies (Note 12)
|
|
|
|
|
|
||
Members’
equity
|
|
|
|
|
|
||
Prestige
contributed capital
|
|
370,278
|
|
124,719
|
|
||
Accumulated
other comprehensive income
|
|
320
|
|
—
|
|
||
Retained
earnings
|
|
11,449
|
|
1,229
|
|
||
Total
members’ equity
|
|
382,047
|
125,948
|
|
|||
Total
liabilities and members’ equity
|
|
$
|
996,600
|
|
$
|
325,358
|
|
|
|
Year Ended
March 31, 2005
|
|
February 6, 2004
to March 31, 2004
|
|
April 1, 2003
to February 5, 2004
|
|
Year Ended
March 31, 2003
|
|
||||
(Restated)
|
(Restated)
|
||||||||||||
|
|
(successor basis)
|
|
(predecessor basis)
|
|
||||||||
Operating
Activities
|
|
|
|
|
|
|
|
|
|
||||
Net
income (loss)
|
|
$
|
10,220
|
|
$
|
1,229
|
|
$
|
3,145
|
|
$
|
(14,896
|
)
|
Adjustments
to reconcile net income (loss) to net cash provided by (used in)
operating
activities:
|
|
|
|
|
|
|
|
|
|
||||
Cumulative
effect of change in accounting principle, net of income tax benefit
of
$6,467
|
|
—
|
|
—
|
|
—
|
|
11,785
|
|
||||
Loss
on extinguishment of debt
|
|
26,854
|
|
—
|
|
—
|
|
685
|
|
||||
Depreciation
|
|
1,899
|
|
41
|
|
247
|
|
301
|
|
||||
Loss
on disposal of property and equipment
|
|
9
|
|
—
|
|
—
|
|
91
|
|
||||
Amortization
of intangible assets
|
|
7,901
|
|
890
|
|
4,251
|
|
4,973
|
|
||||
Amortization
of deferred financing costs and debt discount
|
|
2,943
|
|
134
|
|
1,271
|
|
1,912
|
|
||||
Amortization
of deferred compensation
|
|
—
|
|
—
|
|
67
|
|
79
|
|
||||
Increase
in long-term debt due to accrued interest
|
|
—
|
|
—
|
|
376
|
|
251
|
|
||||
Deferred
income taxes
|
|
8,344
|
|
696
|
|
1,718
|
|
1,622
|
|
||||
Other
|
|
—
|
|
71
|
|
—
|
|
—
|
|
||||
Changes
in operating assets and liabilities, net of effects of purchase of
businesses:
|
|
|
|
|
|
|
|
|
|
||||
Accounts
receivable
|
|
(7,227
|
)
|
(951
|
)
|
743
|
|
(1,130
|
)
|
||||
Accounts
receivable—related parties
|
|
—
|
|
53
|
|
326
|
|
(364
|
)
|
||||
Inventories
|
|
2,922
|
|
207
|
|
(1,712
|
)
|
3,474
|
|
||||
Prepaid
expenses and other current assets
|
|
(1,490
|
)
|
(52
|
)
|
259
|
|
2,216
|
|
||||
Accounts
payable
|
|
5,059
|
|
1,106
|
|
(262
|
)
|
(638
|
)
|
||||
Accounts
payable—related parties
|
|
—
|
|
(532
|
)
|
(1,111
|
)
|
464
|
|
||||
Accrued
expenses
|
|
(6,392
|
)
|
(4,272
|
)
|
(1,811
|
)
|
2,529
|
|
||||
Income
taxes payable
|
|
—
|
|
(326)
|
336
|
(835
|
)
|
||||||
Net
cash provided by (used in) operating activities
|
|
51,042
|
|
(1,706
|
)
|
7,843
|
|
12,519
|
|
||||
Investing
Activities
|
|
|
|
|
|
|
|
|
|
||||
Purchase
of property and equipment
|
|
(365
|
)
|
(42
|
)
|
(66
|
)
|
(421
|
)
|
||||
Change
in restricted cash
|
|
—
|
|
700
|
|
—
|
|
(700
|
)
|
||||
Purchase
of intangibles
|
|
—
|
|
—
|
|
(510
|
)
|
(256
|
)
|
||||
Purchase
of businesses, net of cash acquired
|
|
(425,479
|
)
|
(167,532
|
)
|
—
|
|
(788
|
)
|
||||
Net
cash used in investing activities
|
|
(425,844
|
)
|
(166,874
|
)
|
(576
|
)
|
(2,165
|
)
|
||||
Financing
Activities
|
|
|
|
|
|
|
|
|
|
||||
Proceeds
from borrowings
|
|
698,512
|
|
154,786
|
|
13,539
|
|
4,220
|
|
||||
Repayment
of borrowings
|
|
(529,538
|
)
|
(80,146
|
)
|
(24,682
|
)
|
(18,862
|
)
|
||||
Payment
of deferred financing costs
|
|
(24,539
|
)
|
(2,841
|
)
|
(115
|
)
|
(76
|
)
|
||||
Payment
on interest rate swap liability
|
|
—
|
|
(197
|
)
|
—
|
|
—
|
|
||||
Prepayment
penalty
|
|
(10,875
|
)
|
—
|
|
—
|
|
—
|
|
||||
Premium
on interest rate cap
|
|
(2,283
|
)
|
—
|
|
—
|
|
—
|
|
||||
Proceeds
from issuance of Denorex Class A shares
|
|
—
|
|
—
|
|
—
|
|
12
|
|
||||
Purchase
of treasury stock
|
|
—
|
|
—
|
|
—
|
|
(4
|
)
|
||||
Proceeds
from issuance of treasury stock
|
|
—
|
|
—
|
|
—
|
|
2
|
|
||||
Proceeds
from capital contributions
|
|
—
|
|
—
|
|
2,629
|
|
—
|
|
||||
Contribution
of capital from parent
|
|
245,466
|
|
100,371
|
|
—
|
|
—
|
|
||||
Net
cash provided by (used in) financing activities
|
|
376,743
|
|
171,973
|
|
(8,629
|
)
|
(14,708
|
)
|
||||
Increase
(decrease) in cash
|
|
1,941
|
|
3,393
|
|
(1,362
|
)
|
(4,354
|
)
|
||||
Cash
at beginning of period
|
|
3,393
|
|
—
|
|
3,530
|
|
7,884
|
|
||||
Cash
at end of period
|
|
$
|
5,334
|
|
$
|
3,393
|
|
$
|
2,168
|
|
$
|
3,530
|
|
|
|
Year Ended
March 31, 2005
|
|
February 6, 2004
to March 31, 2004
|
|
April 1, 2003
to February 5, 2004
|
|
Year Ended
March 31, 2003
|
|
||||
|
|
(successor basis)
|
|
(predecessor basis)
|
|
||||||||
Supplemental
cash flow information
|
|
|
|
|
|
|
|
|
|
||||
Interest
paid
|
|
$
|
42,155
|
|
$
|
2,357
|
|
$
|
5,491
|
|
$
|
8,553
|
|
Income
taxes paid (refunded)
|
|
$
|
2,689
|
|
$
|
(31
|
)
|
$
|
159
|
|
$
|
174
|
|
Supplemental
disclosure of non-cash investing and financing
activities:
|
|
|
|
|
|
|
|
|
|
||||
Fair
value of assets acquired, net of cash acquired
|
|
$
|
655,542
|
|
$
|
318,380
|
|
$
|
—
|
|
$
|
—
|
|
Fair
value of liabilities assumed
|
|
(229,971
|
)
|
(131,371
|
)
|
—
|
|
—
|
|
||||
Purchase
price funded with non-cash capital contribution
|
|
(92
|
)
|
(19,477
|
)
|
—
|
|
—
|
|
||||
Cash
paid to purchase businesses
|
|
$
|
425,479
|
|
$
|
167,532
|
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
Retained
|
|
|
|
|||||||||
|
|
Prestige
|
|
Medtech
|
|
Denorex
|
|
Additional
|
|
|
|
Medtech
|
|
other
|
|
earnings
|
|
|
|
|||||||||||||
|
|
Contributed
|
|
common stock
|
|
common stock
|
|
paid-in
|
|
Deferred
|
|
treasury
|
|
comprehensive
|
|
(accumulated
|
|
|
|
|||||||||||||
|
|
Capital
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
capital
|
|
compensation
|
|
Stock
|
|
Income (loss)
|
|
deficit)
|
|
Total
|
|
|||||||||
Predecessor Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance
at March 31, 2002 as previously reported
|
$ —
|
7,145
|
$
|
71
|
112
|
$
|
1
|
$
|
56,780
|
$
|
(219
|
)
|
$
—
|
$
|
(478
|
)
|
$
|
3,046
|
$
|
59,201
|
||||||||||||
Effect
of restatement
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(464
|
)
|
(464
|
)
|
|||||||||||||||||||
Balance
at March 31, 2002 (Restated)
|
|
—
|
|
7,145
|
|
|
71
|
|
112
|
|
|
1
|
|
|
56,780
|
|
(219
|
)
|
—
|
|
(478
|
)
|
2,582
|
|
58,737
|
|
||||||
Issuance
of Denorex Class A shares
|
|
—
|
|
—
|
|
—
|
|
13
|
|
—
|
|
12
|
|
—
|
|
—
|
|
—
|
|
—
|
|
12
|
|
|||||||||
Purchase
of treasury stock
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(4
|
)
|
—
|
|
—
|
|
(4
|
)
|
|||||||||
Issuance
of shares from treasury
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2
|
|
—
|
|
—
|
|
2
|
|
|||||||||
Amortization
of deferred compensation
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
79
|
|
—
|
|
—
|
|
—
|
|
79
|
|
|||||||||
Components
of Comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net
loss (Restated)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(14,896
|
)
|
(14,896
|
)
|
|||||||||
Unrealized
loss on interest rate swap net of income tax benefit
of $38
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(71
|
)
|
—
|
|
(71
|
)
|
|||||||||
Total
comprehensive loss (Restated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(14,967
|
)
|
|||||||||
Balance
at March 31, 2003 (Restated)
|
|
—
|
|
7,145
|
|
71
|
|
125
|
|
1
|
|
56,792
|
|
(140
|
)
|
(2
|
)
|
(549
|
)
|
(12,314
|
)
|
43,859
|
|
|||||||||
Amortization
of deferred compensation
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
67
|
|
—
|
|
—
|
|
—
|
|
67
|
|
|||||||||
Contribution
of capital
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,629
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,629
|
|
|||||||||
Components
of Comprehensive income
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Net
income
(Restated)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,145
|
|
3,145
|
|
|||||||||
Unrealized
gain on interest rate swap net of income tax expense
of $148
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
423
|
|
—
|
|
423
|
|
|||||||||
Total
comprehensive income (Restated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,568
|
|
|||||||||
Balance
at February 5, 2004 (Restated)
|
|
—
|
|
7,145
|
|
71
|
|
125
|
|
1
|
|
59,421
|
|
(73
|
)
|
(2
|
)
|
(126
|
)
|
(9,169
|
)
|
50,123
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Successor
Basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash
contribution of capital related to the Medtech Acquisition, net
of
offering costs
|
|
100,371
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
100,371
|
|
|||||||||
Issuance
of Prestige LLC units in conjunction with Medtech
Acquisition
|
|
1,709
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,709
|
|
|||||||||
Adjustments
related to Medtech Acquisition (Restated)
|
|
—
|
|
(7,145
|
)
|
(71
|
)
|
(125
|
)
|
(1
|
)
|
(59,421
|
)
|
73
|
|
2
|
|
126
|
|
9,169
|
|
(50,123
|
)
|
|||||||||
Issuance
of Prestige LLC units in conjunction with Spic and Span
Acquisition
|
|
17,768
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
17,768
|
|
|||||||||
Issuance
of Prestige LLC warrants in conjunction with Medtech
Acquisition
|
|
4,871
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4,871
|
|
|||||||||
Net
income and comprehensive income (Restated)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,229
|
0
|
1,229
|
|
|||||||||
Balance
at March 31, 2004 (Restated)
|
|
$
|
124,719
|
|
—
|
|
$
|
—
|
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,229
|
|
$
|
125,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prestige
Contributed
Capital
|
|
Accumulated
Other
Comprehensive
Income (loss)
|
|
Retained
Earnings
|
|
Total
|
|
||||
Successor
Basis
|
|
|
|
|
|
|
|
|
|
||||
Balance
at March 31, 2004 (Restated)
|
|
$
|
124,719
|
|
$
|
—
|
|
$
|
1,229
|
|
$
|
125,948
|
|
Contribution
of capital from parent
|
|
245,559
|
|
—
|
|
—
|
|
245,559
|
|
||||
Components
of comprehensive income:
|
|
|
|
|
|
|
|
|
|
||||
Net
income (Restated)
|
|
—
|
|
—
|
|
10,220
|
|
10,220
|
|
||||
Unrealized
gain on interest rate caps net of income tax expense of
$200
|
|
—
|
|
320
|
|
—
|
|
320
|
|
||||
Total
comprehensive income (Restated)
|
|
|
|
|
|
|
|
10,540
|
|
||||
Balance
at March 31, 2005 (Restated)
|
|
$
|
370,278
|
|
$
|
320
|
|
$
|
11,449
|
|
$
|
382,047
|
|
Machinery
|
|
5 years
|
|
Computer
equipment
|
|
3 years
|
|
Furniture
and fixtures
|
|
7 years
|
|
Trademarks
|
|
15-30
years
|
|
(predecessor
basis)
|
|
Trademarks
|
|
5-30
years
|
|
(successor
basis)
|
|
Fiscal
Year Ended March 31, 2005
|
||||||||||||||||
(In
thousands)
|
Previously
Reported
|
Revenue
Recognition
|
Cooperative
Advertising
|
Income
Taxes
|
As
Restated
|
|||||||||||
Revenues
|
||||||||||||||||
Net
sales
|
$
|
303,167
|
$
|
(5,611
|
)
|
$
|
(8,638
|
)
|
$
|
--
|
$
|
288,918
|
||||
Other
revenues
|
151
|
151
|
||||||||||||||
Total
revenues
|
303,318
|
(5,611
|
)
|
(8,638
|
)
|
--
|
289,069
|
|||||||||
Cost
of Sales
|
||||||||||||||||
Costs
of sales
|
141,348
|
(2,339
|
)
|
139,009
|
||||||||||||
Gross
profit
|
161,970
|
(3,272
|
)
|
(8,638
|
)
|
--
|
150,060
|
|||||||||
Operating
Expenses
|
||||||||||||||||
Advertising
and promotion
|
38,402
|
(67
|
)
|
(8,638
|
)
|
29,697
|
||||||||||
General
and administrative
|
20,198
|
20,198
|
||||||||||||||
Depreciation
|
1,899
|
1,899
|
||||||||||||||
Amortization of intangible assets
|
7,901
|
7,901
|
||||||||||||||
Total
operating expenses
|
68,400
|
(67
|
)
|
(8,638
|
)
|
--
|
59,695
|
|||||||||
Operating
income
|
93,570
|
(3,205
|
)
|
--
|
--
|
90,365
|
||||||||||
Other
income (expense)
|
||||||||||||||||
Interest
income
|
371
|
371
|
||||||||||||||
Interest
expense
|
(45,097
|
)
|
(45,097
|
)
|
||||||||||||
Loss
on extinguishment of debt
|
(26,863
|
)
|
(26,863
|
)
|
||||||||||||
Total
other income (expense)
|
(71,589
|
)
|
--
|
--
|
--
|
(71,589
|
)
|
|||||||||
Income
before provision for income taxes
|
21,981
|
(3,205
|
)
|
--
|
--
|
18,776
|
||||||||||
Provision
for income taxes
|
8,522
|
(1,113
|
)
|
--
|
1,147
|
8,556
|
||||||||||
Net
income
|
$
|
13,459
|
$
|
(2,092
|
)
|
$
|
--
|
$
|
(1,147
|
)
|
$
|
10,220
|
Period
February 6, 2004 to March 31, 2004
(Successor)
|
|||||||||||||
(In
thousands)
|
Previously
Reported
|
Revenue
Recognition
|
Cooperative
Advertising
|
As
Restated
|
|||||||||
Revenues
|
|||||||||||||
Net
sales
|
$
|
18,807
|
$
|
(1,597
|
)
|
$
|
(388
|
)
|
$
|
16,822
|
|||
Other
revenues
|
54
|
54
|
|||||||||||
Total
revenues
|
18,861
|
(1,597
|
)
|
(388
|
)
|
16,876
|
|||||||
Cost
of Sales
|
|||||||||||||
Costs
of sales
|
10,023
|
(672
|
)
|
9,351
|
|||||||||
Gross
profit
|
8,838
|
(925
|
)
|
(388
|
)
|
7,525
|
|||||||
Operating
Expenses
|
|||||||||||||
Advertising
and promotion
|
1,689
|
(34
|
)
|
(388
|
)
|
1,267
|
|||||||
General
and administrative
|
1,649
|
1,649
|
|||||||||||
Depreciation
|
41
|
41
|
|||||||||||
Amortization
of intangible assets
|
890
|
890
|
|||||||||||
Total
operating expenses
|
4,269
|
(34
|
)
|
(388
|
)
|
3,847
|
|||||||
Operating
income
|
4,569
|
(891
|
)
|
--
|
3,678
|
||||||||
Other
income (expense)
|
|||||||||||||
Interest
income
|
10
|
10
|
|||||||||||
Interest
expense
|
(1,735
|
)
|
(1,735
|
)
|
|||||||||
Total
other income (expense)
|
(1,725
|
)
|
--
|
--
|
(1,725
|
)
|
|||||||
Income
before provision for
income
taxes
|
2,844
|
(891
|
)
|
1,953
|
|||||||||
Provision
for income taxes
|
1,054
|
(330
|
)
|
724
|
|||||||||
Net
income
|
$
|
1,790
|
$
|
(561
|
)
|
$
|
--
|
$
|
1,229
|
Period
April 1, 2003 to February 5, 2004
(Predecessor)
|
|||||||||||||
(In
thousands)
|
Previously
Reported
|
Revenue
Recognition
|
Cooperative
Advertising
|
As
Restated
|
|||||||||
Revenues
|
|||||||||||||
Net
sales
|
$
|
68,726
|
$
|
1,930
|
$
|
(2,587
|
)
|
$
|
68,069
|
||||
Other
revenues
|
333
|
333
|
|||||||||||
Total
revenues
|
69,059
|
1,930
|
(2,587
|
)
|
68,402
|
||||||||
Cost
of Sales
|
|||||||||||||
Costs
of sales
|
26,254
|
601
|
26,855
|
||||||||||
Gross
profit
|
42,805
|
1,329
|
(2,587
|
)
|
41,547
|
||||||||
Operating
Expenses
|
|||||||||||||
Advertising
and promotion
|
12,601
|
47
|
(2,587
|
)
|
10,061
|
||||||||
General
and administrative
|
12,068
|
12,068
|
|||||||||||
Depreciation
|
247
|
247
|
|||||||||||
Amortization
of intangible assets
|
4,251
|
4,251
|
|||||||||||
Loss on forgiveness of related party receivable
|
1,404
|
1,404
|
|||||||||||
Total
operating expenses
|
30,571
|
47
|
(2,587
|
)
|
28,031
|
||||||||
Operating
income
|
12,234
|
1,282
|
--
|
13,516
|
|||||||||
Other
income (expense)
|
|||||||||||||
Interest
income
|
38
|
38
|
|||||||||||
Interest
expense
|
(8,195
|
)
|
(8,195
|
)
|
|||||||||
Total
other income (expense)
|
(8,157
|
)
|
--
|
--
|
(8,157
|
)
|
|||||||
Income
before provision for
income
taxes
|
4,077
|
1,282
|
5,359
|
||||||||||
Provision
for income taxes
|
1,684
|
530
|
2,214
|
||||||||||
Net
income
|
$
|
2,393
|
$
|
752
|
$
|
--
|
$
|
3,145
|
Fiscal
Year Ended March 31, 2003
(Predecessor)
|
|||||||||||||
(In
thousands)
|
Previously
Reported
|
Revenue
Recognition
|
Cooperative
Advertising
|
As
Restated
|
|||||||||
Revenues
|
|||||||||||||
Net
sales
|
$
|
76,048
|
$
|
(1,567
|
)
|
$
|
(3,138
|
)
|
$
|
71,343
|
|||
Other
revenues
|
391
|
391
|
|||||||||||
Total
revenues
|
76,439
|
(1,567
|
)
|
(3,138
|
)
|
71,734
|
|||||||
Cost
of Sales
|
|||||||||||||
Costs
of sales
|
27,475
|
(458
|
)
|
27,017
|
|||||||||
Gross
profit
|
48,964
|
(1,109
|
)
|
(3,138
|
)
|
44,717
|
|||||||
Operating
Expenses
|
|||||||||||||
Advertising
and promotion
|
14,274
|
(20
|
)
|
(3,138
|
)
|
11,116
|
|||||||
General
and administrative
|
12,075
|
12,075
|
|||||||||||
Depreciation
|
301
|
301
|
|||||||||||
Amortization
of intangible assets
|
4,973
|
4,973
|
|||||||||||
Total
operating expenses
|
31,623
|
(20
|
)
|
(3,138
|
)
|
28,465
|
|||||||
Operating
income
|
17,341
|
(1,089
|
)
|
--
|
16,252
|
||||||||
Other
income (expense)
|
|||||||||||||
Interest
income
|
59
|
59
|
|||||||||||
Interest
expense
|
(9,806
|
)
|
(9,806
|
)
|
|||||||||
Loss
on extinguishment of debt
|
(685
|
)
|
(685
|
)
|
|||||||||
Total
other income (expense)
|
(10,432
|
)
|
--
|
--
|
(10,432
|
)
|
|||||||
Income
before provision for
income
taxes
|
6,909
|
(1,089
|
)
|
5,820
|
|||||||||
Provision
for income taxes
|
3,902
|
(615
|
)
|
--
|
3,287
|
||||||||
Income
from continuing operations
|
3,007
|
(474
|
)
|
2,533
|
|||||||||
Discontinued
Operations
|
|||||||||||||
Loss
from operations of discontinued Pecos reporting unit, net of tax
benefit
of $1,848
|
(3,385
|
)
|
(3,385
|
)
|
|||||||||
Loss
on disposal of Pecos reporting unit, net of income tax benefit of
$1,233
|
(2,259
|
)
|
(2,259
|
)
|
|||||||||
Loss
before cumulative effect of change in accounting principle
|
(2,637
|
)
|
(474
|
)
|
--
|
(3,111
|
)
|
||||||
Cumulative
effect of change in accounting principle, net of income tax benefit
of
$6,567
|
(11,785
|
)
|
(11,785
|
)
|
|||||||||
Net
loss
|
$
|
(14,422
|
)
|
$
|
(474
|
)
|
$
|
--
|
$
|
(14,896
|
)
|
(In
thousands)
|
March
31, 2005
|
||||||
Assets
|
As
Previously Reported
|
As
Restated
|
|||||
Current
assets
|
|||||||
Cash
|
$
|
5,334
|
$
|
5,334
|
|||
Accounts
receivable
|
43,893
|
35,918
|
|||||
Inventories
|
21,580
|
24,833
|
|||||
Deferred
income tax assets
|
5,699
|
5,699
|
|||||
Prepaid
expenses and other current assets
|
3,152
|
3,152
|
|||||
Total
current assets
|
79,658
|
74,936
|
|||||
Property
and equipment
|
2,324
|
2,324
|
|||||
Goodwill
|
294,544
|
294,731
|
|||||
Intangible
assets
|
608,613
|
608,613
|
|||||
Other
long-term assets
|
15,996
|
15,996
|
|||||
Total
Assets
|
$
|
1,001,135
|
$
|
996,600
|
|||
Liabilities
and Members' Equity
|
|||||||
Current
liabilities
|
|||||||
Accounts
payable
|
$
|
21,705
|
$
|
21,705
|
|||
Accrued
liabilities
|
13,472
|
11,589
|
|||||
Current
portion of long-term debt
|
3,730
|
3,730
|
|||||
Total
current liabilities
|
38,907
|
37,024
|
|||||
Long-term
debt
|
491,630
|
491,630
|
|||||
Deferred
income tax liabilities
|
84,752
|
85,899
|
|||||
Total
liabilities
|
615,289
|
614,553
|
|||||
Members’
Equity
|
|||||||
Contributed
capital - Prestige Holdings
|
370,277
|
370,278
|
|||||
Accumulated
other comprehensive income
|
320
|
320
|
|||||
Retained
earnings
|
15,249
|
11,449
|
|||||
Total
members’ equity
|
385,846
|
382,047
|
|||||
Total
liabilities and members’ equity
|
$
|
1,001,135
|
$
|
996,600
|
(In
thousands)
|
March
31, 2004
|
||||||
Assets
|
As
Previously Reported
|
As
Restated
|
|||||
Current
assets
|
|||||||
Cash
|
$
|
3,393
|
$
|
3,393
|
|||
Accounts
receivable
|
15,732
|
13,369
|
|||||
Inventories
|
9,748
|
10,660
|
|||||
Deferred
income tax assets
|
1,647
|
1,647
|
|||||
Prepaid
expenses and other current assets
|
234
|
234
|
|||||
Total
current assets
|
30,754
|
29,303
|
|||||
Property
and equipment
|
880
|
880
|
|||||
Goodwill
|
55,594
|
55,781
|
|||||
Intangible
assets
|
236,611
|
236,611
|
|||||
Other
long-term assets
|
2,783
|
2,783
|
|||||
Total
Assets
|
$
|
326,622
|
$
|
325,358
|
|||
Liabilities
and Members’ Equity
|
|||||||
Current
liabilities
|
|||||||
Accounts
payable
|
$
|
5,281
|
$
|
5,281
|
|||
Accrued
liabilities
|
7,264
|
6,561
|
|||||
Current
portion of long-term debt
|
2,000
|
2,000
|
|||||
Total
current liabilities
|
14,545
|
13,842
|
|||||
Long-term
debt
|
146,694
|
146,694
|
|||||
Deferred
income tax liabilities
|
38,874
|
38,874
|
|||||
Total
liabilities
|
200,113
|
199,410
|
|||||
Members’
Equity
|
|||||||
Contributed
capital - Prestige Holdings
|
124,719
|
124,719
|
|||||
Retained
earnings
|
1,790
|
1,229
|
|||||
Total
members’ equity
|
126,509
|
125,948
|
|||||
Total
liabilities and members’ equity
|
$
|
326,622
|
$
|
325,358
|
|
|
Medtech
|
|
Spic and Span
|
|
||
Medtech
revolving credit facility
|
|
$
|
195
|
|
$
|
11,650
|
|
Medtech
term loan facility
|
|
100,000
|
|
—
|
|
||
Medtech
subordinated notes
|
|
42,941
|
|
—
|
|
||
Issuance
of Preferred and Common Units
|
|
106,951
|
|
17,768
|
|
||
Total
sources of funds
|
|
$
|
250,087
|
|
$
|
29,418
|
|
|
|
Medtech
|
|
Spic and Span
|
|
Total
|
|
|||
Cash
|
|
$
|
2,168
|
|
$
|
1,063
|
|
$
|
3,231
|
|
Restricted
cash
|
|
700
|
|
—
|
|
700
|
|
|||
Accounts
receivable
|
|
10,622
|
|
1,849
|
|
12,471
|
|
|||
Inventories
|
|
9,959
|
|
908
|
|
10,867
|
|
|||
Prepaid
expenses and other current assets
|
|
151
|
|
31
|
|
182
|
|
|||
Property
and equipment
|
|
434
|
|
445
|
|
879
|
|
|||
Goodwill
|
|
55,639
|
|
—
|
|
55,639
|
|
|||
Intangible
assets
|
|
209,330
|
|
28,171
|
|
237,501
|
|
|||
Deferred
income taxes
|
|
—
|
|
141
|
|
141
|
|
|||
Accounts
payable
|
|
(6,672
|
)
|
(1,644
|
)
|
(8,316
|
)
|
|||
Accrued
liabilities
|
|
(6,264
|
)
|
(1,341
|
)
|
(7,605
|
)
|
|||
Long-term
debt
|
|
(71,868
|
)
|
(6,981
|
)
|
(78,849
|
)
|
|||
Deferred
income taxes
|
|
(36,601
|
)
|
—
|
|
(36,601
|
)
|
|||
|
|
$
|
167,598
|
|
$
|
22,642
|
|
$
|
190,240
|
|
Revolving
Credit Facility
|
|
$
|
3,512
|
|
Tranche
B Term Loan Facility
|
|
355,000
|
|
|
Tranche
C Term Loan Facility
|
|
100,000
|
|
|
9.25%
Senior Subordinated Notes
|
|
210,000
|
|
|
Issuance
of Preferred and Common units
|
|
58,579
|
|
|
Total
sources of funds
|
|
$
|
727,091
|
|
Cash
|
|
$
|
4,304
|
|
Accounts
receivable
|
|
13,186
|
|
|
Inventories
|
|
16,185
|
|
|
Prepaid
expenses and other current assets
|
|
1,391
|
|
|
Property
and equipment
|
|
2,982
|
|
|
Goodwill
|
|
217,234
|
|
|
Intangible
assets
|
|
352,460
|
|
|
Accounts
payable and accrued liabilities
|
|
(21,189
|
)
|
|
Long-term
debt
|
|
(172,898
|
)
|
|
Deferred
income taxes
|
|
(34,429
|
)
|
|
|
|
$
|
379,226
|
|
Accounts
receivable
|
|
$
|
2,136
|
|
Inventories
|
|
910
|
|
|
Prepaid
expenses and other current assets
|
|
37
|
|
|
Property
and equipment
|
|
5
|
|
|
Goodwill
|
|
21,858
|
|
|
Intangible
assets
|
|
27,158
|
|
|
Accounts
payable and accrued liabilities
|
|
(1,455
|
)
|
|
|
|
$
|
50,649
|
|
|
|
Pro Forma
|
|
Pro Forma
|
|
||
|
|
Twelve months ended
|
|
Twelve months ended
|
|
||
|
|
March 31, 2005
|
|
March 31, 2004
|
|
||
|
|
(unaudited)
|
|
(unaudited)
|
|
||
(Restated)
|
(Restated)
|
||||||
Net
sales
|
|
$
|
295,247
|
|
$
|
282,418
|
|
Income
before income taxes
|
|
$
|
29,277
|
|
$
|
37,921
|
|
Net
income
|
|
$
|
17,733
|
|
$
|
23,156
|
|
|
|
March 31,
|
|
||||
|
|
2005
|
|
2004
|
|
||
(Restated)
|
|||||||
|
|
(successor basis)
|
|
||||
Accounts
receivable
|
|
$
|
36,985
|
|
$
|
13,775
|
|
Other
receivables
|
|
835
|
|
341
|
|
||
Less
allowances for discounts, returns and bad debts
|
|
(1,902
|
)
|
(747
|
)
|
||
|
|
$
|
35,918
|
|
$
|
13,369
|
|
|
|
March 31,
|
|
||||
|
|
2005
|
|
2004
|
|
||
(Restated)
|
|||||||
|
|
(successor basis)
|
|
||||
Packaging
and raw materials
|
|
$
|
3,587
|
|
$
|
1,562
|
|
Finished
goods
|
|
21,246
|
|
9,098
|
|
||
|
|
$
|
24,833
|
|
$
|
10,660
|
|
|
|
March 31,
|
|
||||
|
|
2005
|
|
2004
|
|
||
|
|
(Successor Basis)
|
|
||||
Machinery
|
|
$
|
2,828
|
|
$
|
—
|
|
Computer
equipment
|
|
771
|
|
341
|
|
||
Furniture
and fixtures
|
|
515
|
|
555
|
|
||
Leasehold
improvements
|
|
173
|
|
19
|
|
||
|
|
4,287
|
|
915
|
|
||
Less
accumulated depreciation
|
|
(1,963
|
)
|
(35
|
)
|
||
|
|
$
|
2,324
|
|
$
|
880
|
|
Balance
as of March 31, 2003
|
|
$
|
—
|
|
Goodwill
acquired in the Medtech Acquisition (Restated)
|
|
55,781
|
|
|
Balance
as of March 31, 2004 (Restated)
|
|
55,781
|
|
|
Goodwill
acquired in the Bonita Bay Acquisition
|
|
217,234
|
|
|
Goodwill
acquired in the Vetco Acquisition
|
|
21,858
|
|
|
Purchase
accounting adjustments related to fiscal 2004 acquisitions
|
|
(142
|
)
|
|
Balance
as of March 31, 2005 (Restated)
|
|
$
|
294,731
|
|
|
|
Year ended
March 31,
2003
|
|
|
|
|
(predecessor basis)
|
|
|
(Restated)
|
||||
Net
loss
|
|
$
|
(14,896
|
)
|
Add
back the cumulative effect of change in accounting principle, net
of
income tax
benefit
of $6,467, related to the adoption of SFAS 142
|
|
11,785
|
|
|
Adjusted
net loss
|
|
$
|
(3,111
|
)
|
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying
Amount
|
|
|||
|
|
(successor basis)
|
|
|||||||
Intangible
assets:
|
|
|
|
|
|
|
|
|||
Indefinite
lived trademarks
|
|
$
|
522,346
|
|
$
|
—
|
|
$
|
522,346
|
|
Amortizable
intangible assets:
|
|
|
|
|
|
|
|
|||
Trademarks
|
|
94,900
|
|
(8,775
|
)
|
86,125
|
|
|||
Non-compete
agreement
|
|
158
|
|
(16
|
)
|
142
|
|
|||
|
|
617,404
|
|
(8,791
|
)
|
608,613
|
|
|||
Deferred
financing costs, net
|
|
13,193
|
|
—
|
|
13,193
|
|
|||
Fair
value of interest rate caps
|
|
2,803
|
|
—
|
|
2,803
|
|
|||
Total
|
|
$
|
633,400
|
|
$
|
(8,791
|
)
|
$
|
624,609
|
|
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying
Amount
|
|
|||
|
|
(successor basis)
|
|
|||||||
Intangible
assets:
|
|
|
|
|
|
|
|
|||
Indefinite
lived trademarks
|
|
$
|
181,361
|
|
$
|
—
|
|
$
|
181,361
|
|
Amortizable
intangible assets:
|
|
|
|
|
|
|
|
|||
Trademarks
|
|
56,140
|
|
(890
|
)
|
55,250
|
|
|||
|
|
237,501
|
|
(890
|
)
|
236,611
|
|
|||
Deferred
financing costs, net
|
|
2,783
|
|
—
|
|
2,783
|
|
|||
Total
|
|
$
|
240,284
|
|
$
|
(890
|
)
|
$
|
239,394
|
|
Year ending March 31,
|
|
|||
2006
|
$
|
8,592
|
||
2007
|
8,592
|
|||
2008
|
8,592
|
|||
2009
|
8,592
|
|||
2010
|
7,168
|
|||
Thereafter
|
44,731
|
|||
Total
|
$
|
86,267
|
|
|
March 31,
|
|
||||
|
|
2005
|
|
2004
|
|
||
|
|
(successor basis)
|
|
||||
(Restated)
|
|||||||
Accrued
marketing costs
|
|
$
|
2,693
|
|
$
|
1,631
|
|
Reserve
for Pecos returns
|
|
242
|
|
1,186
|
|
||
Accrued
payroll
|
|
2,004
|
|
1,345
|
|
||
Accrued
commissions
|
|
184
|
|
296
|
|
||
Interest
payable
|
|
7,060
|
|
1,241
|
|
||
Income
taxes payable
|
|
(1,144
|
)
|
(508
|
)
|
||
Other
|
|
550
|
|
1,370
|
|
||
|
|
$
|
11,589
|
|
$
|
6,561
|
|
|
|
March 31,
|
|
||||
|
|
2005
|
|
2004
|
|
||
|
|
(successor basis)
|
|
||||
Tranche
B Term Loan Facility
|
|
$
|
369,360
|
|
$
|
—
|
|
Senior
Subordinated Notes
|
|
126,000
|
|
—
|
|
||
Medtech
Revolving Credit Facility
|
|
—
|
|
10,548
|
|
||
Medtech
Term Loan Facility
|
|
—
|
|
100,000
|
|
||
Medtech
Subordinated Notes
|
|
—
|
|
38,146
|
|
||
|
|
495,360
|
|
148,694
|
|
||
Less:
current portion
|
|
(3,730
|
)
|
(2,000
|
)
|
||
Long-term
debt
|
|
$
|
491,630
|
|
$
|
146,694
|
|
Year ending March 31,
|
|
|||
2006
|
$
|
3,730
|
||
2007
|
3,730
|
|||
2008
|
3,730
|
|||
2009
|
3,730
|
|||
2010
|
3,730
|
|||
Thereafter
|
476,710
|
|||
|
$
|
495,360
|
Year ending
March 31,
|
Operating
Leases
|
|||
2006
|
471
|
|||
2007
|
371
|
|||
2008
|
371
|
|||
2009
|
371
|
|||
2010
|
32
|
|||
|
$
|
1,616
|
||
|
|
|
Year Ended
March 31,
2005
|
|
February 6, 2004
to March 31,
2004
|
|
April 1, 2003
to February 5,
2004
|
|
Year Ended
March 31,
2003
|
|
||||
|
|
(successor basis)
|
|
(predecessor basis)
|
|
||||||||
Current:
|
|
(Restated)
|
|
(Restated)
|
|
||||||||
Federal
|
|
$
|
(544)
|
|
$
|
4
|
|
$
|
406
|
$
|
1,781
|
|
|
State
|
|
654
|
|
24
|
|
90
|
(116
|
)
|
|||||
Foreign
|
|
102
|
|
—
|
|
—
|
|
—
|
|
||||
Deferred:
|
|
|
|
|
|
|
|
|
|
||||
Federal
|
|
7,495
|
|
662
|
|
1,620
|
|
1,530
|
|
||||
State
|
|
849
|
|
34
|
|
98
|
|
92
|
|
||||
Provision
for income taxes from continuing operations
|
|
8,556
|
|
724
|
|
2,214
|
|
3,287
|
|
||||
Benefit
for income taxes from loss from operations of discontinued Pecos
reporting
unit
|
|
—
|
|
—
|
|
—
|
|
(1,848
|
)
|
||||
Benefit
for income taxes from loss on disposal of Pecos reporting
unit
|
|
—
|
|
—
|
|
—
|
|
(1,233
|
)
|
||||
Benefit
for income taxes from cumulative effect of changes in accounting
principle
|
|
—
|
|
—
|
|
—
|
|
(6,467
|
)
|
||||
|
|
$
|
8,556
|
|
$
|
724
|
|
$
|
2,214
|
|
$
|
(6,261
|
)
|
|
|
March 31,
|
|
||||
|
|
2005
|
|
2004
|
|
||
|
|
(successor basis)
|
|
||||
Deferred
tax assets:
|
|
(Restated)
|
|
||||
Allowance
for doubtful accounts and sales returns
|
|
$
|
992
|
|
$
|
622
|
|
Inventory
capitalization
|
|
359
|
|
83
|
|
||
Inventory
reserve
|
|
567
|
|
45
|
|
||
Inventory
step-up
|
|
—
|
|
(122
|
)
|
||
Net
operating loss carryforwards
|
|
7,990
|
|
8,306
|
|
||
Property
and equipment
|
|
50
|
|
—
|
|
||
State
income taxes
|
|
2,978
|
|
747
|
|
||
Other
|
|
430
|
|
270
|
|
||
Reserve
for coupons
|
|
114
|
|
—
|
|
||
Vacation
accrual
|
|
93
|
|
—
|
|
||
AMT
tax credit carryforwards
|
|
278
|
|
—
|
|
||
Deferred
tax liabilities:
|
|
|
|
|
|
||
Intangible
assets
|
|
(93,851
|
)
|
(47,145
|
)
|
||
Interest
rate caps
|
|
(200
|
)
|
—
|
|
||
Property
and equipment
|
|
—
|
|
(33
|
)
|
||
Other
|
|
—
|
|
—
|
|
||
|
|
$
|
(80,200
|
)
|
$
|
(37,227
|
)
|
|
|
Year Ended
March 31,
2005
|
|
February 6
to March 31,
2004
|
|
April 1, 2003
to February 5,
2004
|
|
Year Ended
March 31,
2003
|
|
||||
|
|
(successor basis)
|
|
(predecessor basis)
|
|
||||||||
(Restated)
|
(Restated)
|
||||||||||||
Income
tax provision at statutory rate
|
|
$
|
6,384
|
|
$
|
664
|
|
$
|
1,822
|
|
$
|
1,979
|
|
Foreign
income tax provision
|
|
102
|
|
—
|
|
—
|
|
—
|
|
||||
State
income taxes (net of federal income tax benefit)
|
|
901
|
|
23
|
|
165
|
|
(106
|
)
|
||||
Increase
in graduated income tax rate on deferred tax liabilities
|
1,147
|
—
|
—
|
—
|
|||||||||
Change
in effective state tax rate
|
|
—
|
|
—
|
|
—
|
|
190
|
|
||||
Amortization
of intangible assets
|
|
—
|
|
—
|
|
94
|
|
193
|
|
||||
Valuation
allowance
|
|
—
|
|
—
|
|
321
|
|
992
|
|
||||
Other
|
|
22
|
|
37
|
|
(188
|
)
|
39
|
|
||||
Provision
for income taxes from continuing operations
|
|
$
|
8,556
|
|
$
|
724
|
|
$
|
2,214
|
|
$
|
3,287
|
|
Year ended
March 31, 2005 (Restated)
(successor
basis)
|
Over-the-Counter
Drug
|
Personal
Care
|
Household
Cleaning
|
Other
|
Consolidated
|
|||||||||||
Net
sales
|
$
|
159,010
|
$
|
32,162
|
$
|
97,746
|
$
|
—
|
$
|
288,918
|
||||||
Other
revenues
|
—
|
—
|
151
|
—
|
151
|
|||||||||||
Total
revenues
|
159,010
|
32,162
|
97,897
|
—
|
289,069
|
|||||||||||
Cost
of sales
|
60,570
|
16,400
|
62,039
|
—
|
139,009
|
|||||||||||
Gross
profit
|
98,440
|
15,762
|
35,858
|
—
|
150,060
|
|||||||||||
Advertising
and promotion
|
18,543
|
5,498
|
5,656
|
—
|
29,697
|
|||||||||||
Contribution
margin
|
$
|
79,897
|
$
|
10,264
|
$
|
30,202
|
$
|
—
|
120,363
|
|||||||
Other
operating expenses
|
29,998
|
|||||||||||||||
Operating
income
|
90,365
|
|||||||||||||||
Other
income (expense)
|
(71,589
|
)
|
||||||||||||||
Provision
from income taxes
|
(8,556
|
)
|
||||||||||||||
Net
income
|
$
|
10,220
|
||||||||||||||
|
Period from February 6, 2004 to
March 31, 2004
(Restated)
(successor basis)
|
Over-the-Counter
Drug
|
Personal
Care
|
Household
Cleaning
|
Other
|
Consolidated
|
|||||||||||
Net
sales
|
$
|
11,288
|
$
|
4,139
|
$
|
1,395
|
$
|
—
|
$
|
16,822
|
||||||
Other
revenues—related party
|
—
|
—
|
—
|
54
|
54
|
|||||||||||
Total
revenues
|
11,288
|
4,139
|
1,395
|
54
|
16,876
|
|||||||||||
Cost
of sales
|
5,775
|
2,619
|
957
|
—
|
9,351
|
|||||||||||
Gross
profit
|
5,513
|
1,520
|
438
|
54
|
7,525
|
|||||||||||
Advertising
and promotion
|
711
|
510
|
46
|
—
|
1,267
|
|||||||||||
Contribution
margin
|
$
|
4,802
|
$
|
1,010
|
$
|
392
|
$
|
54
|
6,258
|
|||||||
Other
operating expenses
|
2,580
|
|||||||||||||||
Operating
income
|
3,678
|
|||||||||||||||
Other
income (expense)
|
(1,725
|
)
|
||||||||||||||
Provision
for income taxes
|
(724
|
)
|
||||||||||||||
Net
income
|
$
|
1,229
|
||||||||||||||
|
Period from April 1, 2003 to February 5, 2004
(Restated)
(predecessor basis)
|
Over-the-Counter
Drug
|
Personal Care
|
Other
|
Consolidated
|
|||||||||
Net
sales
|
$
|
43,712
|
$
|
24,357
|
$
|
—
|
$
|
68,069
|
|||||
Other
revenues—related party
|
—
|
—
|
333
|
333
|
|||||||||
Total
revenues
|
43,712
|
24,357
|
333
|
68,402
|
|||||||||
Cost
of sales
|
15,092
|
11,763
|
—
|
26,855
|
|||||||||
Gross
profit
|
28,620
|
12,594
|
333
|
41,547
|
|||||||||
Advertising
and promotion
|
5,214
|
4,847
|
—
|
10,061
|
|||||||||
Contribution
margin
|
$
|
23,406
|
$
|
7,747
|
$
|
333
|
31,486
|
||||||
Other
operating expenses
|
17,970
|
||||||||||||
Operating
income
|
13,516
|
||||||||||||
Other
income (expense)
|
(8,157
|
)
|
|||||||||||
Provision
for income taxes
|
(2,214
|
)
|
|||||||||||
Net
income
|
$
|
3,145
|
|||||||||||
|
Year ended March 31, 2003
(Restated)
(predecessor basis)
|
Over-the-Counter
Drug
|
Personal Care
|
Other
|
Consolidated
|
|||||||||
Net
sales
|
$
|
40,330
|
$
|
31,013
|
$
|
—
|
$
|
71,343
|
|||||
Other
revenues—related party
|
—
|
—
|
391
|
391
|
|||||||||
Total
revenues
|
40,330
|
31,013
|
391
|
71,734
|
|||||||||
Cost
of sales
|
12,217
|
14,800
|
—
|
27,017
|
|||||||||
Gross
profit
|
28,113
|
16,213
|
391
|
44,717
|
|||||||||
Advertising
and promotion
|
5,852
|
5,264
|
—
|
11,116
|
|||||||||
Contribution
margin
|
$
|
22,261
|
$
|
10,949
|
$
|
391
|
33,601
|
||||||
Other
operating expenses
|
17,349
|
||||||||||||
Operating
income
|
16,252
|
||||||||||||
Other
income (expense)
|
(10,432
|
)
|
|||||||||||
Provision
for income taxes
|
(3,287
|
)
|
|||||||||||
Discontinued
operations
|
(5,644
|
)
|
|||||||||||
Cumulative
effect of change in accounting principle
|
(11,785
|
)
|
|||||||||||
Net
(loss)
|
$
|
(14,896
|
)
|
||||||||||
|
|
|
Quarter Ended
|
|
Period from
Jan 1,
2004
through
|
|
Period
from Feb. 6,
2004
through
|
|
Quarter Ended
|
|
|||||||||||||||||||
|
|
June 30,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
Feb. 5,
|
|
Mar. 31,
|
|
June 30,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
Mar. 31,
|
|
|||||||||
|
|
2003
|
|
2003
|
|
2003
|
|
2004
|
|
2004
|
|
2004
|
|
2004
|
|
2004
|
|
2005
|
|
|||||||||
(Restated)
|
||||||||||||||||||||||||||||
Income
Statement Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total
revenues
|
|
$
|
19,685
|
|
$
|
22,808
|
|
$
|
18,931
|
|
$
|
6,978
|
|
$
|
16,876
|
|
$
|
58,755
|
|
$
|
79,958
|
|
$
|
73,043
|
|
$
|
77,313
|
|
Cost
of sales
|
|
7,411
|
|
9,041
|
|
7,567
|
|
2,836
|
|
9,351
|
|
33,138
|
|
37,941
|
|
33,241
|
|
34,689
|
|
|||||||||
Gross
profit
|
|
12,274
|
|
13,767
|
|
11,364
|
|
4,142
|
|
7,525
|
|
25,617
|
|
42,017
|
|
39,802
|
|
42,624
|
|
|||||||||
Advertising
and promotion expenses
|
|
3,290
|
|
4,014
|
|
2,286
|
|
471
|
|
1,267
|
|
10,785
|
|
8,449
|
|
5,168
|
|
5,295
|
|
|||||||||
Depreciation
and amortization expenses
|
|
1,312
|
|
1,318
|
|
1,319
|
|
549
|
|
931
|
|
2,289
|
|
2,254
|
|
2,605
|
|
2,652
|
|
|||||||||
General
and administrative expenses
|
|
2,441
|
|
2,493
|
|
2,879
|
|
4,255
|
|
1,649
|
|
4,921
|
|
4,502
|
|
5,690
|
|
5,085
|
|
|||||||||
Interest
expense, net
|
|
2,171
|
|
2,217
|
|
2,148
|
|
1,621
|
|
1,725
|
|
11,049
|
|
10,834
|
|
11,994
|
|
10,849
|
|
|||||||||
Other
expense
|
|
—
|
|
—
|
|
—
|
|
1,404
|
|
—
|
|
7,567
|
|
—
|
|
—
|
|
19,296
|
|
|||||||||
Income
from continuing operations before taxes
|
|
3,060
|
|
3,725
|
|
2,732
|
|
(4,158
|
)
|
1,953
|
|
(10,994
|
)
|
15,978
|
|
14,345
|
|
(553
|
)
|
|||||||||
Provision/(benefit)
for income taxes
|
|
1,073
|
|
1,565
|
|
1,084
|
|
(1,508
|
)
|
724
|
|
(3,902
|
)
|
6,076
|
5,218
|
|
1,164
|
|
||||||||||
Net
income/(loss)
|
|
$
|
1,987
|
|
$
|
2,160
|
|
$
|
1,648
|
|
$
|
(2,650
|
)
|
$
1,229
|
|
$
(7,092
|
)
|
$
9,902
|
|
$
9,127
|
|
$
(1,717
|
)
|
|
|
Quarter Ended
|
|
Period from
Jan 1,
2004 through
|
|
Period
from Feb. 6,
2004
through
|
|
Quarter Ended
|
|
||||||||||||||||||||
|
|
June 30,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
Feb. 5,
|
|
Mar. 31,
|
|
June 30,
|
|
Sept. 30,
|
|
Dec. 31,
|
|
Mar. 31,
|
|
||||||||||
|
|
2003
|
|
2003
|
|
2003
|
|
2004
|
|
2004
|
|
2004
|
|
2004
|
|
2004
|
|
2005
|
|
||||||||||
(As
Previously Reported)
|
|||||||||||||||||||||||||||||
Income
Statement Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total
revenues
|
|
$
|
19,377
|
|
$
|
23,781
|
|
$
|
19,219
|
|
$
|
6,682
|
|
$
|
18,861
|
|
$
|
67,757
|
|
$
|
81,346
|
|
$
|
75,854
|
|
$
|
78,361
|
|
|
Cost
of sales
|
|
7,047
|
|
9,040
|
|
7,485
|
|
2,682
|
|
10,023
|
|
36,123
|
|
37,843
|
|
33,923
|
|
33,459
|
|
||||||||||
Gross
profit
|
|
12,330
|
|
14,741
|
|
11,734
|
|
4,000
|
|
8,838
|
|
31,634
|
|
43,503
|
|
41,931
|
|
44,902
|
|
||||||||||
Advertising
and promotion expenses
|
|
4,208
|
|
5,046
|
|
2,736
|
|
611
|
|
1,689
|
|
13,771
|
|
10,304
|
|
7,265
|
|
7,062
|
|
||||||||||
Depreciation
and amortization expenses
|
|
1,312
|
|
1,318
|
|
1,319
|
|
549
|
|
931
|
|
2,289
|
|
2,254
|
|
2,605
|
|
2,652
|
|
||||||||||
General
and administrative expenses
|
|
2,441
|
|
2,493
|
|
2,879
|
|
4,255
|
|
1,649
|
|
4,921
|
|
4,502
|
|
5,690
|
|
5,085
|
|
||||||||||
Interest
expense, net
|
|
2,171
|
|
2,217
|
|
2,148
|
|
1,621
|
|
1,725
|
|
11,049
|
|
10,834
|
|
11,994
|
|
10,849
|
|
||||||||||
Other
expense
|
|
—
|
|
—
|
|
—
|
|
1,404
|
|
—
|
|
7,567
|
|
—
|
|
—
|
|
19,296
|
|
||||||||||
Income
from continuing operations before taxes
|
|
2,198
|
|
3,667
|
|
2,652
|
|
(4,440
|
)
|
2,844
|
|
(7,963
|
)
|
15,609
|
|
14,377
|
|
(42
|
)
|
||||||||||
Provision/(benefit)
for income taxes
|
|
771
|
|
1,541
|
|
1,052
|
|
(1,680
|
)
|
1,054
|
|
(2,826
|
)
|
5,936
|
5,230
|
|
182
|
|
|||||||||||
Net
income/(loss)
|
|
$
|
1,427
|
|
$
|
2,126
|
|
$
|
1,600
|
|
$
|
(2,760
|
)
|
$
1,790
|
|
$
(5,137
|
)
|
$
9,673
|
|
$
9,147
|
|
$
(224
|
)
|
|
|
Balance at
Beginning of
Year
|
|
Charged to
Expense
|
|
Deductions
|
|
Other
|
|
Balance at
End of
Year
|
|
|||||
Predecessor
Basis
|
|
|
|
|
|
(Restated)
|
|
|
|
|
|
|||||
Year
ended March 31, 2003
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deferred
tax valuation allowance
|
|
$
|
427
|
|
$
|
992
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,419
|
|
Reserves
for sales returns and discounts
|
|
206
|
|
4,234
|
|
4,218
|
|
—
|
|
222
|
|
|||||
Allowance
for doubtful accounts
|
|
57
|
|
126
|
|
94
|
|
—
|
|
89
|
|
|||||
Allowance
for inventory obsolescence
|
|
184
|
|
87
|
|
193
|
|
—
|
|
78
|
|
|||||
Pecos
returns reserve
|
|
888
|
|
7,556
|
|
4,340
|
|
—
|
|
4,104
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Period
from April 1, 2003 to February 5, 2004
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deferred
tax valuation allowance
|
|
1,419
|
|
325
|
|
—
|
|
—
|
|
1,744
|
|
|||||
Reserves
for sales returns and discounts
|
|
222
|
|
3,348
|
|
3,025
|
|
—
|
|
545
|
|
|||||
Allowance
for doubtful accounts
|
|
89
|
|
166
|
|
114
|
|
—
|
|
141
|
|
|||||
Allowance
for inventory obsolescence
|
|
78
|
|
350
|
|
340
|
|
—
|
|
88
|
|
|||||
Pecos
returns reserve
|
|
4,104
|
|
—
|
|
2,755
|
|
—
|
|
1,349
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Successor
Basis
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Period
from February 6, 2004 to March 31, 2004
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deferred
tax valuation allowance
|
|
1,744
|
|
—
|
|
—
|
|
(1,744
|
)(1)
|
—
|
|
|||||
Reserves
for sales returns and discounts
|
|
652
|
|
315
|
568
|
|
288
|
(2)
|
687
|
|
||||||
Allowance
for doubtful accounts
|
|
141
|
|
46
|
|
140
|
|
13
|
(2)
|
60
|
|
|||||
Allowance
for inventory obsolescence
|
|
88
|
|
70
|
|
60
|
|
26
|
(2)
|
124
|
|
|||||
Pecos
returns reserve
|
|
1,349
|
|
—
|
|
163
|
|
—
|
|
1,186
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Year
ended March 31, 2005
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Reserves
for sales returns and discounts
|
|
687
|
|
10,245
|
|
9,280
|
|
—
|
|
1,652
|
|
|||||
Allowance
for doubtful accounts
|
|
60
|
|
32
|
|
33
|
|
191
|
(3)
|
250
|
|
|||||
Allowance
for inventory obsolescence
|
|
124
|
|
769
|
|
266
|
|
823
|
(3)
|
1,450
|
|
|||||
Pecos
returns reserve
|
|
1,186
|
|
—
|
|
944
|
|
—
|
|
242
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/
ERNST & YOUNG LLP
|
|
|
|
Tampa,
Florida
|
|
February 20,
2004
|
|
|
2003
|
|
2002
|
|
||
ASSETS
|
|
|
|
|
|
||
Current
assets:
|
|
|
|
|
|
||
Cash
and cash equivalents
|
|
$
|
7,153,906
|
|
$
|
7,463,528
|
|
Accounts
receivable, net of allowance for doubtful accounts and discounts
of
$365,891 and $1,226,501, respectively
|
|
23,119,991
|
|
15,595,726
|
|
||
Inventories
|
|
10,625,913
|
|
12,441,162
|
|
||
Prepaid
expenses
|
|
1,017,608
|
|
2,274,036
|
|
||
Deferred
income taxes
|
|
—
|
|
340,902
|
|
||
Total
current assets
|
|
41,917,418
|
|
38,115,354
|
|
||
Property
and equipment, net
|
|
3,272,853
|
|
4,504,950
|
|
||
Other
noncurrent assets:
|
|
|
|
|
|
||
Trademarks
and other purchased product rights, net
|
|
310,190,618
|
|
310,784,569
|
|
||
Debt
issuance costs, net
|
|
7,884,590
|
|
9,410,802
|
|
||
Other
|
|
224,360
|
|
11,252
|
|
||
Total
other noncurrent assets
|
|
318,299,568
|
|
320,206,623
|
|
||
Total
assets
|
|
$
|
363,489,839
|
|
$
|
362,826,927
|
|
|
|
|
|
|
|
||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
||
Current
liabilities:
|
|
|
|
|
|
||
Accounts
payable
|
|
$
|
10,726,036
|
|
$
|
9,848,417
|
|
Accrued
expenses
|
|
5,680,223
|
|
3,542,773
|
|
||
Deferred
income taxes
|
|
117,471
|
|
—
|
|
||
Income
taxes payable
|
|
1,353,207
|
|
1,363,495
|
|
||
Current
maturities of long-term debt
|
|
25,260,000
|
|
20,910,000
|
|
||
Total
current liabilities
|
|
43,136,937
|
|
35,664,685
|
|
||
Deferred
income taxes
|
|
15,451,791
|
|
6,968,263
|
|
||
Other
long-term liabilities
|
|
590,664
|
|
1,238,360
|
|
||
Long-term
debt, net of current maturities
|
|
153,817,551
|
|
177,780,431
|
|
||
Common
stock warrants
|
|
2,355,330
|
|
2,684,569
|
|
||
Stockholders’
equity:
|
|
|
|
|
|
||
Class A,
voting common stock, no par value; 125,000,000 shares authorized,
52,746,509
and 59,014,709 shares issued and outstanding
|
|
57,643,125
|
|
70,598,392
|
|
||
Class B,
nonvoting common stock, no par value; 50,000,000 shares
authorized;
34,340,506 shares issued and outstanding
|
|
47,330,446
|
|
47,330,446
|
|
||
Receivable
from sale of stock
|
|
(1,186,333
|
)
|
(1,122,684
|
)
|
||
Retained
earnings
|
|
44,503,941
|
|
22,231,550
|
|
||
Accumulated
other comprehensive loss
|
|
(153,613
|
)
|
(547,085
|
)
|
||
Total
stockholders’ equity
|
|
148,137,566
|
|
138,490,619
|
|
||
Total
liabilities and stockholders’ equity
|
|
$
|
363,489,839
|
|
$
|
362,826,927
|
|
|
|
2003
|
|
2002
|
|
2001
|
|
|||
Sales
|
|
$
|
183,920,595
|
|
$
|
122,353,757
|
|
$
|
61,367,894
|
|
Returns,
discounts and allowances
|
|
(16,850,740
|
)
|
(11,787,626
|
)
|
(6,399,577
|
)
|
|||
Net
sales
|
|
167,069,855
|
|
110,566,131
|
|
54,968,317
|
|
|||
Cost
of sales
|
|
82,663,523
|
|
58,447,880
|
|
26,488,911
|
|
|||
Gross
profit
|
|
84,406,332
|
|
52,118,251
|
|
28,479,406
|
|
|||
Operating
expenses:
|
|
|
|
|
|
|
|
|||
Advertising
and promotion
|
|
19,525,302
|
|
10,132,868
|
|
7,425,355
|
|
|||
Depreciation
and amortization
|
|
1,744,253
|
|
744,439
|
|
4,155,245
|
|
|||
General
and administrative
|
|
9,733,510
|
|
5,555,994
|
|
4,138,169
|
|
|||
Total
operating expenses
|
|
31,003,065
|
|
16,433,301
|
|
15,718,769
|
|
|||
Income
from operations
|
|
53,403,267
|
|
35,684,950
|
|
12,760,637
|
|
|||
Loss
on extinguishment of debt
|
|
—
|
|
—
|
|
(1,604,300
|
)
|
|||
Interest
expense
|
|
(17,482,602
|
)
|
(8,111,635
|
)
|
(6,212,878
|
)
|
|||
Interest
income
|
|
175,220
|
|
103,238
|
|
13,432
|
|
|||
Income
before income taxes
|
|
36,095,885
|
|
27,676,553
|
|
4,956,891
|
|
|||
Provision
for income taxes
|
|
13,823,494
|
|
11,106,800
|
|
1,874,126
|
|
|||
Net
income
|
|
$
|
22,272,391
|
|
$
|
16,569,753
|
|
$
|
3,082,765
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
||||||||
|
|
Common stock
|
|
|
|
Receivable
|
|
|
|
|
|
other
|
|
|
|
||||||||||||||
|
|
Class A
|
|
Class B
|
|
Treasury
|
|
from sale
|
|
Retained
|
|
Comprehensive
|
|
comprehensive
|
|
|
|
||||||||||||
|
|
Shares
|
|
Value
|
|
Shares
|
|
Value
|
|
stock
|
|
of stock
|
|
earnings
|
|
income
|
|
loss
|
|
Total
|
|
||||||||
Balance,
December 31, 2000
|
|
45,830,780
|
|
$
|
45,830,780
|
|
1,791,220
|
|
$
|
1,791,220
|
|
$
|
—
|
|
$
|
—
|
|
$
|
2,579,032
|
|
|
|
$
|
—
|
|
$
|
50,201,032
|
|
|
Repurchase
of Class A common stock
|
|
(10,000,000
|
)
|
—
|
|
—
|
|
—
|
|
(14,000,000
|
)
|
—
|
|
—
|
|
|
|
—
|
|
(14,000,000
|
)
|
||||||||
Issuance
of Class A common stock, net of stock issuance costs
|
|
15,673,929
|
|
9,148,070
|
|
—
|
|
—
|
|
14,000,000
|
|
(1,059,035
|
)
|
—
|
|
|
|
—
|
|
22,089,035
|
|
||||||||
Issuance
of Class B common stock, net of stock issuance costs
|
|
—
|
|
—
|
|
32,549,286
|
|
44,501,930
|
|
—
|
|
—
|
|
—
|
|
|
|
—
|
|
44,501,930
|
|
||||||||
Exercise
of stock options
|
|
10,000
|
|
10,000
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
—
|
|
10,000
|
|
||||||||
Issuance
of common stock warrants
|
|
—
|
|
1,042,704
|
|
—
|
|
1,037,296
|
|
—
|
|
—
|
|
—
|
|
|
|
—
|
|
2,080,000
|
|
||||||||
Net
income
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,082,765
|
|
$
|
3,082,765
|
|
—
|
|
3,082,765
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
3,082,765
|
|
|
|
|
|
|||||||
Balance,
December 31, 2001
|
|
51,514,709
|
|
56,031,554
|
|
34,340,506
|
|
47,330,446
|
|
—
|
|
(1,059,035
|
)
|
5,661,797
|
|
|
|
—
|
|
107,964,762
|
|
||||||||
Issuance
of Class A common stock, net of stock issuance costs
|
|
7,500,000
|
|
14,575,238
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
—
|
|
14,575,238
|
|
||||||||
Exercise
of stock options
|
|
14,000
|
|
14,000
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
—
|
|
14,000
|
|
||||||||
Repurchase
and retirement of Class A common stock
|
|
(14,000
|
)
|
(22,400
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
—
|
|
(22,400
|
)
|
||||||||
Interest
on receivable from sale of stock
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(63,649
|
)
|
—
|
|
|
|
—
|
|
(63,649
|
)
|
||||||||
Net
income
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
16,569,753
|
|
$
|
16,569,753
|
|
—
|
|
16,569,753
|
|
|||||||
Other
comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Change
in fair value of interest rate swap and collar agreements, net of
income taxes of $360,873
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(547,085
|
)
|
(547,085
|
)
|
(547,085
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
16,022,668
|
|
|
|
|
|
|||||||
Balance,
December 31, 2002
|
|
59,014,709
|
|
70,598,392
|
|
34,340,506
|
|
47,330,446
|
|
—
|
|
(1,122,684
|
)
|
22,231,550
|
|
|
|
(547,085
|
)
|
138,490,619
|
|
||||||||
Issuance
of Class A common stock, net of stock issuance costs
|
|
166,300
|
|
332,600
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
—
|
|
332,600
|
|
||||||||
Exercise
of stock options
|
|
28,167
|
|
32,467
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
—
|
|
32,467
|
|
||||||||
Repurchase
and retirement of Class A common stock
|
|
(6,462,667
|
)
|
(13,320,334
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
—
|
|
(13,320,334
|
)
|
||||||||
Interest
on receivable from sale of stock
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(63,649
|
)
|
—
|
|
|
|
—
|
|
(63,649
|
)
|
||||||||
Net
income
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
22,272,391
|
|
$
|
22,272,391
|
|
—
|
|
22,272,391
|
|
|||||||
Other
comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Change
in fair value of interest rate swap and collar agreements, net of
income taxes of $254,224
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
393,472
|
|
393,472
|
|
393,472
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
22,665,863
|
|
|
|
|
|
|||||||
Balance,
December 31, 2003
|
|
52,746,509
|
|
$
|
57,643,125
|
|
34,340,506
|
|
$
|
47,330,446
|
|
$
|
—
|
|
$
|
(1,186,333
|
)
|
$
|
44,503,941
|
|
|
|
$
|
(153,613
|
)
|
$
|
148,137,566
|
|
|
|
2003
|
|
2002
|
|
2001
|
|
|||
Operating
activities
|
|
|
|
|
|
|
|
|||
Net
income
|
|
$
|
22,272,391
|
|
$
|
16,569,753
|
|
$
|
3,082,765
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|||
Loss
on extinguishment of debt
|
|
—
|
|
—
|
|
1,604,300
|
|
|||
Accretion
of debt discount to interest expense
|
|
483,916
|
|
—
|
|
475,700
|
|
|||
Depreciation
and amortization
|
|
1,744,253
|
|
744,439
|
|
4,155,245
|
|
|||
Deferred
taxes
|
|
8,687,680
|
|
5,411,113
|
|
1,386,714
|
|
|||
Interest
earned on receivable from sale of stock
|
|
(63,649
|
)
|
(63,649
|
)
|
—
|
|
|||
Reallocation
of purchase price
|
|
743,956
|
|
—
|
|
—
|
|
|||
Paid
in kind interest
|
|
503,964
|
|
—
|
|
—
|
|
|||
Changes
in assets and liabilities:
|
|
|
|
|
|
|
|
|||
Accounts
receivable
|
|
(7,524,265
|
)
|
(5,488,194
|
)
|
(1,514,875
|
)
|
|||
Income
taxes receivable
|
|
—
|
|
—
|
|
(27,000
|
)
|
|||
Inventories
|
|
1,815,249
|
|
(3,604,299
|
)
|
(2,130,237
|
)
|
|||
Prepaid
expenses
|
|
1,256,428
|
|
(1,155,804
|
)
|
(710,036
|
)
|
|||
Debt
issuance costs
|
|
2,039,300
|
|
1,003,209
|
|
1,504,738
|
|
|||
Accounts
payable
|
|
877,619
|
|
6,595,828
|
|
1,283,214
|
|
|||
Accrued
expenses
|
|
2,137,450
|
|
606,502
|
|
1,684,825
|
|
|||
Income
taxes payable
|
|
(10,288
|
)
|
1,390,495
|
|
(892,308
|
)
|
|||
Net
cash provided by operating activities
|
|
34,964,004
|
|
22,009,393
|
|
9,903,045
|
|
|||
|
|
|
|
|
|
|
|
|||
Investing
activities
|
|
|
|
|
|
|
|
|||
Purchases
of fixed assets
|
|
(369,654
|
)
|
(241,916
|
)
|
(120,452
|
)
|
|||
Acquisition
of Clear eyes/Murine brands
|
|
(295,367
|
)
|
(110,700,129
|
)
|
—
|
|
|||
Acquisition
of Comet brand
|
|
(4,638
|
)
|
—
|
|
(144,805,862
|
)
|
|||
Disposals
of fixed assets
|
|
7,496
|
|
—
|
|
—
|
|
|||
Changes
in other noncurrent assets
|
|
(213,108
|
)
|
—
|
|
—
|
|
|||
Net
cash used in investing activities
|
|
(875,271
|
)
|
(110,942,045
|
)
|
(144,926,314
|
)
|
|||
|
|
|
|
|
|
|
|
|||
Financing
activities
|
|
|
|
|
|
|
|
|||
Issuance
of common stock, net of stock issuance costs
|
|
332,600
|
|
14,575,238
|
|
52,590,965
|
|
|||
Exercise
of stock options
|
|
32,467
|
|
14,000
|
|
10,000
|
|
|||
Repurchase
and retirement of common stock
|
|
(13,320,334
|
)
|
(22,400
|
)
|
—
|
|
|||
Reallocation/issuance
of common stock warrants
|
|
(329,239
|
)
|
2,684,569
|
|
2,080,000
|
|
|||
Payments
under line of credit agreement
|
|
—
|
|
(1,000,000
|
)
|
—
|
|
|||
Payments
under long-term debt
|
|
(35,600,761
|
)
|
(23,475,000
|
)
|
(51,705,000
|
)
|
|||
Proceeds
from debt
|
|
15,000,000
|
|
108,740,431
|
|
136,500,000
|
|
|||
Debt
issuance costs
|
|
(513,088
|
)
|
(5,929,626
|
)
|
(5,255,780
|
)
|
|||
Net
cash (used in) provided by financing activities
|
|
(34,398,355
|
)
|
95,587,212
|
|
134,220,185
|
|
|||
Net
(decrease) increase in cash
|
|
(309,622
|
)
|
6,654,560
|
|
(803,084
|
)
|
|||
Cash
at beginning of year
|
|
7,463,528
|
|
808,968
|
|
1,612,052
|
|
|||
Cash
at end of year
|
|
$
|
7,153,906
|
|
$
|
7,463,528
|
|
$
|
808,968
|
|
|
|
|
|
|
|
|
|
|||
Supplemental
disclosures of cash flow information
|
|
|
|
|
|
|
|
|||
Cash
paid for interest
|
|
$
|
15,751,257
|
|
$
|
7,508,000
|
|
$
|
3,635,301
|
|
Cash
paid for income taxes
|
|
$
|
5,167,219
|
|
$
|
4,294,769
|
|
$
|
1,392,412
|
|
|
|
2003
|
|
2002
|
|
||
Balance
as of January 1
|
|
$
|
102,795,660
|
|
$
|
—
|
|
Additional
Clear eyes/Murine Brands closing costs
|
|
295,367
|
|
102,795,660
|
|
||
Clear
eyes/Murine international closings
|
|
(743,956
|
)
|
—
|
|
||
Balance
as of December 31
|
|
$
|
102,347,071
|
|
$
|
102,795,660
|
|
Year ending December 31:
|
Amount
|
|||
2004
|
$
|
2,072,097
|
||
2005
|
1,949,136
|
|||
2006
|
1,665,258
|
|||
2007
|
1,167,386
|
|||
2008
|
1,019,479
|
|||
Thereafter
|
11,234
|
|||
|
$
|
7,884,590
|
|
|
2003
|
|
2002
|
|
2001
|
|
|||
Net
income, as reported
|
|
$
|
22,272,391
|
|
$
|
16,569,753
|
|
$
|
3,082,765
|
|
Less
total stock-based employee compensation expense determined under
fair
value based method for all awards, net of related tax
effects
|
|
(312,838
|
)
|
(351,779
|
)
|
(314,482
|
)
|
|||
Pro
forma net income
|
|
$
|
21,959,553
|
|
$
|
16,217,974
|
|
$
|
2,768,283
|
|
|
|
Useful Life
in Years
|
|
2003
|
|
2002
|
|
||
Computer
equipment and software
|
|
3
|
|
$
|
645,549
|
|
$
|
500,557
|
|
Furniture
and fixtures
|
|
5
|
|
147,428
|
|
131,898
|
|
||
Office
equipment
|
|
5
|
|
55,112
|
|
48,862
|
|
||
Leasehold
improvements
|
|
7
|
|
102,105
|
|
88,255
|
|
||
Plates,
dies and molds
|
|
7
|
|
312,705
|
|
133,191
|
|
||
Manufacturing
equipment
|
|
7
|
|
4,088,470
|
|
4,088,470
|
|
||
|
|
|
|
5,351,369
|
|
4,991,233
|
|
||
Less
accumulated depreciation
|
|
|
|
(2,078,516
|
)
|
(486,283
|
)
|
||
|
|
|
|
$
|
3,272,853
|
|
$
|
4,504,950
|
|
|
Useful Life
in Years
|
2003
|
2002
|
|||||||
Prell
trademark
|
Indefinite
|
$
|
10,693,394
|
$
|
10,693,394
|
|||||
Chloraseptic
trademark
|
Indefinite
|
58,654,300
|
58,654,300
|
|||||||
Chloraseptic
noncompete agreement
|
3
|
1,600,000
|
1,600,000
|
|||||||
Comet
trademark
|
Indefinite
|
144,810,500
|
144,805,862
|
|||||||
Clear
eyes/Murine trademarks
|
Indefinite
|
102,347,071
|
102,795,660
|
|||||||
|
318,105,265
|
318,549,216
|
||||||||
Less
accumulated amortization
|
(7,914,647
|
)
|
(7,764,647
|
)
|
||||||
|
$
|
310,190,618
|
$
|
310,784,569
|
|
|
2003
|
|
2002
|
|
||
Tranche
A term note payable to a bank group, payable in quarterly installments
of
principal and interest through December 30, 2007. Interest is payable
at LIBOR plus an applicable margin through December 30, 2007. At
December 31, 2003 and December 31, 2002 the rate was
approximately 5.19% and 5.75%, respectively. The note
is collateralized by substantially all of the Company’s
assets.
|
|
$
|
86,866,172
|
|
$
|
110,000,000
|
|
Tranche
B term note payable to a bank group, payable in quarterly installments
of
principal and interest through December 30, 2008. Interest is payable
at LIBOR plus an applicable margin through December 30, 2008. At
December 31, 2003 and December 31, 2002, the rate was
approximately 5.69% and 6.75%, respectively. The note
is collateralized by substantially all of the Company’s
assets.
|
|
68,683,828
|
|
63,000,000
|
|
||
Senior
subordinated notes payable with a fixed interest rate of 15% (of
which 2%
is Paid in Kind interest accrued in the notes payable balance). Interest
is payable quarterly, with principal and any remaining interest due
in
full on December 31, 2009. The notes are recorded at the face amount
of $24,895,000 and $28,375,000 less unamortized discount in the amount
of
$1,871,414, and $2,684,569, for the years ended December 31, 2003 and
December 31, 2002, respectively. Refer to
Note 9.
|
|
23,527,551
|
|
25,690,431
|
|
||
|
|
179,077,551
|
|
198,690,431
|
|
||
Less
current portion
|
|
(25,260,000
|
)
|
(20,910,000
|
)
|
||
|
|
$
|
153,817,551
|
|
$
|
177,780,431
|
|
Year ending December 31:
|
Amount
|
|||
2004
|
$
|
25,260,000
|
||
2005
|
27,460,000
|
|||
2006
|
29,660,000
|
|||
2007
|
26,590,064
|
|||
2008
|
46,579,936
|
|||
Thereafter
|
23,527,551
|
|||
|
$
|
179,077,551
|
|
|
2003
|
|
2002
|
|
2001
|
|
|||
Current:
|
|
|
|
|
|
|
|
|||
Federal
|
|
$
|
4,407,875
|
|
$
|
4,447,314
|
|
$
|
416,172
|
|
State
|
|
605,550
|
|
1,248,373
|
|
71,240
|
|
|||
Foreign
|
|
122,389
|
|
—
|
|
—
|
|
|||
|
|
5,135,814
|
|
5,695,687
|
|
487,412
|
|
|||
Deferred:
|
|
|
|
|
|
|
|
|||
Federal
|
|
7,240,443
|
|
4,225,175
|
|
1,183,852
|
|
|||
State
|
|
1,447,237
|
|
1,185,938
|
|
202,862
|
|
|||
|
|
8,687,680
|
|
5,411,113
|
|
1,386,714
|
|
|||
Total
provision
|
|
$
|
13,823,494
|
|
$
|
11,106,800
|
|
$
|
1,874,126
|
|
|
|
2003
|
|
2002
|
|
2001
|
|
|||
Income
tax provision at statutory rate:
|
|
$
|
12,644,965
|
|
$
|
9,686,794
|
|
$
|
1,685,343
|
|
Increase
(decrease) in income tax due to:
|
|
|
|
|
|
|
|
|||
Meals &
entertainment
|
|
10,036
|
|
6,605
|
|
7,994
|
|
|||
Officer
life insurance
|
|
5,170
|
|
—
|
|
—
|
|
|||
State
income taxes net
|
|
1,282,910
|
|
1,315,533
|
|
180,789
|
|
|||
Adjustment
to deferred tax liability due to rate change
|
|
(83,366
|
)
|
97,868
|
|
—
|
|
|||
Earned
income exclusion
|
|
(36,221
|
)
|
—
|
|
—
|
|
|||
|
|
$
|
13,823,494
|
|
$
|
11,106,800
|
|
$
|
1,874,126
|
|
|
|
2003
|
|
2002
|
|
||
Deferred
tax assets:
|
|
|
|
|
|
||
Accounting
fees
|
|
$
|
33,296
|
|
$
|
15,972
|
|
Allowance
for doubtful accounts
|
|
143,612
|
|
487,534
|
|
||
Accrued
legal fees
|
|
51,025
|
|
37,517
|
|
||
Accrued
other
|
|
7,959
|
|
—
|
|
||
Cash
flow hedge/interest rate swap
|
|
231,835
|
|
492,248
|
|
||
Total
deferred tax assets
|
|
$
|
467,727
|
|
$
|
1,033,271
|
|
|
|
|
|
|
|
||
Deferred
tax liabilities:
|
|
|
|
|
|
||
Prepaid
expenses
|
|
$
|
(353,363
|
)
|
$
|
(200,121
|
)
|
Fixed
assets
|
|
(221,417
|
)
|
(30,885
|
)
|
||
Intangible
assets
|
|
(15,462,209
|
)
|
(7,429,626
|
)
|
||
Total
deferred tax liabilities
|
|
(16,036,989
|
)
|
(7,660,632
|
)
|
||
Net
deferred tax liability
|
|
$
|
(15,569,262
|
)
|
$
|
(6,627,361
|
)
|
|
|
2003
|
|
2002
|
|
2001
|
|
|||||||||
|
|
Shares
|
|
Weighted
Average
Exercise Price
|
|
Shares
|
|
Weighted
Average
Exercise Price
|
|
Shares
|
|
Weighted
Average
Exercise Price
|
|
|||
Outstanding,
beginning of year
|
|
3,890,500
|
|
$
|
1.12
|
|
3,184,500
|
|
$
|
1.00
|
|
2,625,000
|
|
$
|
1.00
|
|
Granted
|
|
848,000
|
|
2.00
|
|
750,000
|
|
1.60
|
|
829,500
|
|
1.00
|
|
|||
Exercised
|
|
(28,167
|
)
|
1.60
|
|
(14,000
|
)
|
1.00
|
|
(10,000
|
)
|
1.00
|
|
|||
Canceled
or expired
|
|
(91,833
|
)
|
1.54
|
|
(30,000
|
)
|
1.00
|
|
(260,000
|
)
|
1.00
|
|
|||
Outstanding,
end of year
|
|
4,618,500
|
|
$
|
1.26
|
|
3,890,500
|
|
$
|
1.12
|
|
3,184,500
|
|
$
|
1.00
|
|
Options
vested at year-end
|
|
3,113,333
|
|
$
|
1.05
|
|
1,805,604
|
|
$
|
1.01
|
|
802,833
|
|
$
|
1.00
|
|
Weighted
Average fair value of options granted
|
|
|
|
$
|
.30
|
|
|
|
$
|
.51
|
|
|
|
$
|
.34
|
|
Exercise Price
Range
|
|
Shares
|
|
Weighted
Average
Exercise Price
|
|
Weighted Average
Remaining
Contractual Life
(years)
|
|
Shares
Exercisable
|
|
Weighted
Average
Exercise Price
of Shares
Exercisable
|
|
||
$1.00
|
|
3,068,500
|
|
$
|
1.00
|
|
6.17
|
|
2,789,333
|
|
$
|
1.00
|
|
$1.40—$1.60
|
|
722,000
|
|
$
|
1.53
|
|
7.94
|
|
324,000
|
|
$
|
1.50
|
|
$ 2.00
|
|
828,000
|
|
$
|
2.00
|
|
8.76
|
|
—
|
|
—
|
|
|
|
|
4,618,500
|
|
|
|
|
|
3,113,333
|
|
|
|
Year
ending December 31:
|
Amount
|
|||
2004
|
$
|
259,624
|
||
2005
|
219,850
|
|||
2006
|
150,245
|
|||
2007
|
37,561
|
|||
|
$
|
667,280
|