Constar International (CNST)

CNST » Topics » Cash Flow

This excerpt taken from the CNST 10-K filed Mar 31, 2009.

Cash Flow

 

(dollars in millions)

   December 31,  
   2008     2007  

Net cash provided by operations

   $ 14.1     $ 10.3  
                

Net cash used in investing activities

   $ (23.5 )   $ (25.5 )
                

Net cash provided by financing activities

   $ 19.6     $ —    
                

Net cash provided by operations for 2008 compared to 2007 increased principally as a result of improved working capital performance, offset in part, by reduced profitability in 2008. Days sales in accounts receivable

 

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decreased to approximately 27.0 days at December 31, 2008 from 32.3 days at December 31, 2007. Average days sales in accounts receivable for the twelve months ended December 31, 2008 were 29.8 days compared to 31.3 days last year. Inventory days decreased to approximately 32.6 days at December 31, 2008 from 37.7 days at December 31, 2007 due to the reduced volume anticipated with the new cold fill supply agreement with Pepsi. Average inventory days for 2008 were 32.6 days compared to 30.7 days last year. Days payable in accounts payable and accrued liabilities were 62.5 days at both December 31, 2008 and December 31, 2007. During 2008, average days payable were approximately 52.6 days compared to 52.5 days during 2007. Working capital is impacted by the normal timing of purchases to meet customer demand and the timing of payments to vendors in accordance with negotiated terms that may vary from year to year and during the year.

The decrease in net cash used in investing activities was due to a decrease in capital spending offset in part by lower proceeds from the sale of property and equipment as compared to 2007.

Net cash provided by financing activities for 2008 was $19.6 million and consisted of net borrowings under the Revolver Loan.

These excerpts taken from the CNST 10-K filed Mar 31, 2008.

Cash Flow

 

      December 31,  
(dollars in millions)    2007     2006  

Net cash provided by operations

   $ 10.3     $ 44.3  
                

Net cash used in investing activities

   $ (25.5 )   $ (22.6 )
                

Net cash (used in) financing activities

   $ —       $ (12.3 )
                

Net cash provided by operations for 2007 compared to 2006 decreased due to lower profitability in 2007 and a reduced benefit from improvements in working capital. Days sales in accounts receivable increased slightly to approximately 28.0 days at December 31, 2007 from 27.5 days at December 31, 2006. Average days sales in accounts receivable for the twelve months ended December 31, 2007 were 31.2 days compared to 30.8 days last year. Inventory days increased to approximately 34.5 days at December 31, 2007 from 28.2 days at December 31, 2006 due to a build up of inventory in anticipation of higher demand. Average inventory days for 2007 were 31.6 days compared to 32.4 days last year. Days payable in accounts payable and accrued liabilities increased to 57.2 days at December 31, 2007 compared to 54.0 days at December 31, 2006. The increase in days payable was primarily a result of the timing of payments to our resin vendors. During 2007, average days payable were approximately 52.1 days, compared to 52.4 days last year. Working capital is impacted by the normal timing of purchases to meet customer demand and the timing of payments to vendors in accordance with negotiated terms that may vary from year to year and during the year. On January 3, 2008, we made a payment of approximately $10.8 million to a vendor in the normal course of business.

 

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The increase in net cash used in investing activities was due to an increase in capital spending related to new business initiatives, implementation of the Company’s Best Cost Producer program, and general plant maintenance. The Company’s Best Cost Producer program is an ongoing initiative to continually reduce manufacturing costs and improve operating efficiencies at its manufacturing facilities. This initiative has in the past resulted in restructuring charges.

Net cash provided by financing activities for the 2007 was essentially zero as the company was able to finance its cash requirements for 2007 from operating results, continued improvements in working capital and cash on hand as of December 31, 2006.

Cash Flow

 























































































    December 31, 
(dollars in millions)  2007  2006 

Net cash provided by operations

  $10.3  $44.3 
         

Net cash used in investing activities

  $(25.5) $(22.6)
         

Net cash (used in) financing activities

  $—    $(12.3)
         

Net cash provided by operations for 2007 compared to 2006 decreased due to lower profitability in
2007 and a reduced benefit from improvements in working capital. Days sales in accounts receivable increased slightly to approximately 28.0 days at December 31, 2007 from 27.5 days at December 31, 2006. Average days sales in accounts
receivable for the twelve months ended December 31, 2007 were 31.2 days compared to 30.8 days last year. Inventory days increased to approximately 34.5 days at December 31, 2007 from 28.2 days at December 31, 2006 due to a build up of
inventory in anticipation of higher demand. Average inventory days for 2007 were 31.6 days compared to 32.4 days last year. Days payable in accounts payable and accrued liabilities increased to 57.2 days at December 31, 2007 compared to 54.0
days at December 31, 2006. The increase in days payable was primarily a result of the timing of payments to our resin vendors. During 2007, average days payable were approximately 52.1 days, compared to 52.4 days last year. Working capital is
impacted by the normal timing of purchases to meet customer demand and the timing of payments to vendors in accordance with negotiated terms that may vary from year to year and during the year. On January 3, 2008, we made a payment of
approximately $10.8 million to a vendor in the normal course of business.

 


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The increase in net cash used in investing activities was due to an increase in capital spending related
to new business initiatives, implementation of the Company’s Best Cost Producer program, and general plant maintenance. The Company’s Best Cost Producer program is an ongoing initiative to continually reduce manufacturing costs and improve
operating efficiencies at its manufacturing facilities. This initiative has in the past resulted in restructuring charges.

Net cash
provided by financing activities for the 2007 was essentially zero as the company was able to finance its cash requirements for 2007 from operating results, continued improvements in working capital and cash on hand as of December 31, 2006.

This excerpt taken from the CNST 10-K filed Mar 29, 2007.

Cash Flow

 

(dollars in millions)    December 31,  
   2006     2005     2004  

Net cash provided by operations

   $ 44.3     $ 26.6     $ 23.5  
                        

Net cash used in investing activities

   $ (22.6 )   $ (30.6 )   $ (21.9 )
                        

Net cash provided by (used in) financing activities

   $ (12.3 )   $ 4.8     $ (9.3 )
                        

Net cash provided by operations for 2006 compared to 2005 increased due to the improved operating performance previously mentioned above. In addition, days sales in accounts receivable improved to approximately 27.5 days at December 31, 2006 from 28.9 days at December 31, 2005. Inventory days decreased to approximately 39.2 days at December 31, 2006 from 44.4 days at December 31, 2005. Days payable in accounts payable and accrued liabilities were 54.1 at December 31, 2006 compared to 57.4 at December 31, 2005.

The decrease in net cash used in investing activities was due to a decrease in capital spending on equipment for conventional products which was partially offset by an increase in capital spending to expand custom capacity needed to meet customer supply agreements.

Net cash used in financing activities for 2006 was primarily comprised of net repayments of $10.5 million on the Revolver Loan and the repayment of $1.5 million of debt associated with the Turkey operation. Net cash provided by financing activities during 2005 was primarily comprised of the net proceeds from the Senior Notes of $220.0 million offset by the repayment of amounts outstanding under the Company’s former revolver facility and two term loans of $196.9 million and costs associated with the debt refinancing of $10.8 million. Proceeds from and repayments of the revolver loan in 2006 each increased over 2005 because of the implementation of a lockbox mechanism in 2005 which resulted in more frequent borrowings and repayments.

 

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This excerpt taken from the CNST 10-Q filed May 15, 2006.

Cash Flow

The following table shows selected cash flow data.

 

($ in millions)        2006             2005      

Net cash used in operations

   $ (9.1 )   $ (1.9 )
                

Net cash used in investing activities

   $ (6.6 )   $ (8.0 )
                

Net cash provided by financing activities

   $ 13.9     $ 15.2  
                

Net cash used in operations was $9.1 million in the first three months of 2006 compared to $1.9 million in the first three months of 2005. Days sales in accounts receivable improved to approximately 34.8 days at March 31, 2006 from 41.3 days at March 31, 2005. Inventory days improved to approximately 44.8 days at March 31, 2006 compared to 52.3 days at March 31, 2005. Actual payment terms related to accounts payable remained approximately the same during the first quarter of 2006 as they were in 2005; however, the timing of payments can significantly impact the cash flow in a quarter compared to a previous quarter. The Company made a payment of approximately $11.0 million on March 30, 2006 related to accounts payable. The timing of this payment was the principal reason for the decline in net cash used in operations for the first quarter of 2006 compared to the first quarter of 2005.

Net cash used for investing activities decreased $1.4 million to $6.6 million in the first three months of 2006 from $8.0 million for 2005, reflecting a decrease in capital spending on equipment for conventional products which was partially offset by an increase to expand custom capacity needed to meet customer supply agreements.

Net cash provided by financing activities was $13.9 million in the first three months of 2006. The 2006 amount was primarily comprised of the net amount of $15.1 million borrowed on the Revolver Loan less the repayment of $1.5 million of debt associated with the Turkey operation. Net cash provided by financing activities of $15.2 million in the first three months of 2005 was primarily comprised of the net proceeds from the Senior Notes of $220.0 million offset by the repayment of amounts outstanding under the Company’s former revolver facility and two term loans of $196.9 million and costs associated with the debt refinancing of $10.8 million. Proceeds from and repayment of the revolver loan in 2006 each increased over 2005 because of the implementation of a lockbox mechanism in 2005 which resulted in more frequent borrowings and repayments.

 

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This excerpt taken from the CNST 10-K filed Mar 29, 2006.

Cash Flow

 

The following table shows selected cash flow data.

 

($ in millions)    2005

    2004

    2003

 

Net cash flow from operations

   $ 24.0     $ 28.1     $ 25.0  
    


 


 


Net cash (used in) investing activities

   $ (30.6 )   $ (21.9 )   $ (50.9 )
    


 


 


Net cash provided by (used in) financing activities

   $ 7.5     $ (13.9 )   $ 20.5  
    


 


 


 

Net cash provided by operations was $24.0 million compared to $28.1 million in 2004. The principal reason for the decline of $4.8 million related to the net impact of the following items: a cash payment for litigation settlement in 2005 of $1.5 million compared to a cash receipt related to litigation of $25.1 million in 2004, a decline in profitability from 2004, cash payments related to financing costs of $3.4 million in 2005 and reductions in working capital in 2005 compared to increases in 2004. The Company has an ongoing program to reduce outstanding receivables from customers and minimize inventory while delivering superior customer service.

 

Net cash used for investing activities increased $8.7 million to $30.6 million in the twelve months of 2005 from $21.9 million for 2004, reflecting an increase in capital spending on equipment to expand custom capacity needed to meet customer supply agreements and reduced spending on equipment for conventional products.

 

Net cash provided by financing activities was $7.5 million in 2005 reflecting net proceeds from the secured notes of $220.0 million offset by the repayment of amounts outstanding under the Company’s former revolver facility and two term loans of $196.9 million. Costs associated with the debt refinancing were $10.8 million. Proceeds from and repayment of the revolver loan in 2005 each increased over 2004 because of the implementation of a lockbox mechanism in 2005 which resulted in more frequent borrowings and repayments than in 2004.

 

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This excerpt taken from the CNST 10-Q filed Nov 9, 2005.

Cash Flow

 

Net cash provided by operating activities was $22.0 million in the nine months ended September 30, 2005 as compared to $22.5 million during the nine months ended September 30, 2004. During the first nine months of 2005, the Company’s accounts payable and accrued expenses increased $19.7 million as compared to an increase of $23.7 million increase in that balance during the same period in 2004. This increase was a result of higher raw material prices. This increase was more than offset by an increase to accounts receivable of $15.7 million during the first nine months of 2005 as compared to a $29.0 million increase in that balance during the same period in 2004. The increase in accounts receivable, net, reflects the seasonal increase in sales volume during the second and third quarter of the fiscal year compared to the fourth quarter. During the first nine months of 2005, the Company’s inventory level decreased $5.8 million as compared to an increase of $4.9 million during the same period in 2004. The decrease in inventory in 2005 was the result of additional sales unit volume and the Company’s emphasis to reduce its investment in working capital.

 

Net cash used for investing activities increased $4.3 million to $23.4 million in the first nine months of 2005 from $19.1 million for the same period in 2004, reflecting an increase in capital spending on equipment for custom products partially offset by reduced spending on equipment for conventional products.

 

Net cash provided by financing activities was $.6 million in the first nine months of 2005 reflecting net proceeds from the Senior Notes of $220.0 million offset by the repayment of amounts outstanding under its former revolver facility and two term loans of $196.9 million. Costs associated with the debt refinancing were $10.8 million. Net cash used in by financing activities was $0.9 million in the first nine months of 2004 reflecting a repayment on the Term B loan of $0.9 million.

 

This excerpt taken from the CNST 10-Q filed Aug 18, 2005.

Cash Flow

 

Net cash provided by operating activities was $1.3 million in the six months ended June 30, 2005 as compared to $5.2 million during the six months ended June 30, 2004. During the first six months of 2005, the Company’s accounts payable and accrued expenses increased $17.5 million as compared to an increase of $14.1 million increase in that balance during the same period in 2004. This increase was a result of higher raw material prices. This increase was more than offset by an increase to accounts receivable of $25.0 million during the first six months of 2005 as compared to $30.5 million increase in that balance during the same period in 2004. The increase in accounts receivable, net, reflects the seasonal increase in sales volume during the second quarter of the fiscal year compared to the fourth quarter. During the first six months of 2005, the Company’s inventory level decreased $1.4 million as compared to an increase of $2.3 million during the same period in 2004. The decrease in inventory in 2005 was the result of additional sales unit volume and the Company’s emphasis to reduce its investment in working capital.

 

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Net cash used for investing activities increased $3.1 million to $19.1 million in the first six months of 2005 from $16.0 million for the same period in 2004, reflecting an increase in capital spending on equipment for custom products partially offset by reduced spending on equipment for conventional products.

 

Net cash provided by financing activities was $17.2 million in the first six month of 2005 reflecting net proceeds from the Senior Notes of $220.0 million offset by the repayment of amounts outstanding under its former revolver facility and two term loans of $196.9 million. Costs associated with the debt refinancing were $10.8 million. Net cash provided by financing activities was $8.1 million in the first six months of 2004 reflecting an $11.5 million increase in the Company’s former revolving loan facility offset by $0.6 million for the scheduled quarterly payments on the term loan, and a $2.8 million change in outstanding cash overdrafts.

 

This excerpt taken from the CNST 10-Q filed Aug 9, 2005.

Cash Flow

 

Net cash provided by operating activities was $1.3 million in the six months ended June 30, 2005 as compared to $5.2 million during the six months ended June 30, 2004. During the first six months of 2005, the Company’s accounts payable and accrued expenses increased $17.5 million as compared to an increase of $14.1 million increase in that balance during the same period in 2004. This increase was a result of higher raw material prices. This increase was more than offset by an increase to accounts receivable of $25.0 million during the first six months of 2005 as compared to $30.5 million increase in that balance during the same period in 2004. The increase in accounts receivable, net, reflects the seasonal increase in sales volume during the second quarter of the fiscal year compared to the fourth quarter. During the first six months of 2005, the Company’s inventory level decreased $1.4 million as compared to an increase of $2.3 million during the same period in 2004. The decrease in inventory in 2005 was the result of additional sales unit volume and the Company’s emphasis to reduce its investment in working capital.

 

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Net cash used for investing activities increased $3.1 million to $19.1 million in the first six months of 2005 from $16.0 million for the same period in 2004, reflecting an increase in capital spending on equipment for custom products partially offset by reduced spending on equipment for conventional products.

 

Net cash provided by financing activities was $17.2 million in the first six month of 2005 reflecting net proceeds from the Senior Notes of $220.0 million offset by the repayment of amounts outstanding under its former revolver facility and two term loans of $196.9 million. Costs associated with the debt refinancing were $10.8 million. Net cash provided by financing activities was $8.1 million in the first six months of 2004 reflecting an $11.5 million increase in the Company’s former revolving loan facility offset by $0.6 million for the scheduled quarterly payments on the term loan, and a $2.8 million change in outstanding cash overdrafts.

 

This excerpt taken from the CNST 10-Q filed May 10, 2005.

Cash Flow

 

Net cash used in operating activities was $1.9 million in the first quarter of 2005 as compared to $2.0 million provided by operating activities in the first quarter of 2004. Cash used in operating activities was attributable to seasonality in the first quarter of 2005 as well as an increase in raw material prices.

 

Net cash used for investing activities decreased $1.1 million to $8.0 million in the first quarter of 2005 from $9.1 million in the first quarter of 2004, reflecting a decrease in capital spending on equipment for conventional products offset by spending on additional equipment for custom products.

 

Net cash provided by financing activities was $15.2 million in the first quarter of 2005 reflecting net proceeds from the Senior Notes offset by the repayment of amounts outstanding under its former revolver facility and two term loans. Net cash provided by financing activities was $11.4 million in the first quarter of 2004 reflecting $0.3 million for the scheduled quarterly payments on the term loan, $3.3 million change in outstanding cash overdrafts and a $15.0 million increase in its former revolving loan facility.

 

This excerpt taken from the CNST 10-K filed Mar 31, 2005.

Cash Flow

 

The following table shows selected cash flow data.

 

    

2004


   

2003


    Increase (decrease)

 
($ in millions)        Amount

    %

 

Net cash provided by operating activities

   $ 28.1     $ 25.0     $ 3.1     12.4  

Net cash used for investing activities

   $ (21.9 )   $ (50.9 )   $ (29.0 )   (57.0 )

Net cash (used for)/provided by financing activities

   $ (13.9 )   $ 20.5     $ (34.4 )   (167.8 )

 

Net cash provided by operating activities increased $3.1 million, or 12.4%, to $28.1 million in 2004 from $25.0 million in the 2003. The increase in net cash provided by operating activities during 2004 was primarily due to improved margins and $25.1 million litigation proceeds, offset by a higher raw material costs, which led to an increased investment in inventory, increased accounts receivable and increased interest expense.

 

Net cash used for investing activities decreased to $21.9 million in 2004 from $50.9 million in 2003, reflecting a decrease in capital spending associated with capacity for conventional products.

 

Net cash used for financing activities was $13.9 million in 2004 reflecting decreased borrowings under the Revolver Loan, the scheduled quarterly payments on the Term B Loan and the change in outstanding cash overdrafts. Net cash provided by financing activities was $20.5 million in 2003 reflecting decreased borrowings under the Revolver Loan offset by financing obtained in the form of a $75 million Second Lien Loan. This was combined with the proceeds from a $1.5 million loan that was entered into by the Company’s affiliate in Turkey.

 

This excerpt taken from the CNST 8-K filed Feb 2, 2005.

Cash Flow

 

The following table shows selected cash flow data for the nine months ended September 30, 2004 and the nine months ended September 30, 2003.

 

    

Nine months ended

September 30,


    (Decrease)

 
   2004

    2003

    Amount

    %

 
     (dollars in millions)        

Net cash provided by operating activities

   $ 19.9     $ 39.4     $ (19.5 )   (49.5 )

Net cash used for investing activities

     (19.1 )     (41.0 )     (21.9 )   (53.4 )

Net cash provided by (used for) financing activities

     (0.9 )     24.5       (25.4 )   (103.7 )

 

Net cash provided by operating activities was $19.9 million in the first nine months of 2004 as compared to $39.4 million in the first nine months of 2003. During the first nine months of 2004, our inventory level increased $4.8 million as compared to a decrease of $2.9 million during the same period in 2003. Accounts payable and accrued liabilities increased $26.6 million in the nine months ending September 30, 2004, as compared to an increase of $29.0 million in the same period in 2003. In addition, there was an increase of $29.1 million in accounts receivable, net, during the first nine months of 2004 which is consistent with the $21.2 million increase in that balance during the same period in 2003. The increase in accounts receivable, net, reflects the seasonal increase in sales volumes during the third quarter of the fiscal year as compared to the fourth quarter. These changes in working capital combined with increases in interest expense and selling and administrative expenses led to the reduction in net cash provided by operating activities during the first nine months of 2004.

 

Net cash used for investing activities decreased $21.9 million to $19.1 million in the first nine months of 2004 from $41.0 million in the first nine months of 2003, reflecting a decrease in capital spending associated with capacity for conventional products.

 

Net cash used in financing activities was $0.9 million in the first nine months of 2004 reflecting the scheduled quarterly payments on the Term B Loan. Net cash provided by financing activities was $24.5 million in the first nine months of 2003 reflecting $1.1 million for the scheduled quarterly payments on the Term B Loan and a $25.0 million increase in the Revolver Loan. This was combined with the proceeds from a $1.5 million loan that was entered into by our affiliate in Turkey during the first nine months of 2003.

 

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The following table shows selected cash flow data for the year ended December 31, 2003 and the year ended December 31, 2002.

 

    

Year ended

December 31,


    Increase (decrease)

 
     2003

    2002

      Amount  

    %

 
     (dollars in millions)        

Net cash provided by operating activities

   $ 30.5     $ 63.3     $ (32.8 )   (51.8 )

Net cash used for investing activities

     (50.9 )     (29.2 )     21.7     74.3  

Net cash provided by (used for) financing activities

     15.0       (17.7 )     32.7     184.8  

 

Net cash provided by operating activities declined $32.8 million, or 51.8%, to $30.5 million in 2003 from $63.3 million in the 2002. A decline in gross profit was the major factor contributing to the decline in cash provided by operating activities.

 

Net cash used for investing activities increased to $50.9 million in 2003 from $29.2 million in 2002, reflecting an increase in capital spending that was primarily related to expansions of manufacturing capacity at our Dallas and Orlando facilities.

 

Net cash provided by financing activities was $15.0 million in 2003 reflecting additional borrowings under the Revolver Loan offset by financing obtained in the form of a $75 million Second Lien Loan. This was combined with the proceeds from a $1.5 million loan that was entered into by our affiliate in Turkey. Net cash used for financing activities was $17.7 million in 2002 due to repayments of intercompany borrowings with Crown.

 

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