EX-99.2
3
exhibit992-unauditedadjust.htm
EXHIBIT 99.2
Exhibit 99.2 - Unaudited Adjusted Condensed Consolidated Financial Statements
Exhibit 99.2
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
On February 9, 2015, the Board of Directors of Anixter International Inc. (the "Company") approved the disposition of its OEM Supply - Fasteners ("Fasteners") business. On February 11, 2015, the Company, through its wholly-owned subsidiary Anixter Inc., entered into a definitive asset purchase agreement with American Industrial Partners ("AIP") to sell its Fasteners business for $380.0 million in cash, subject to certain post-closing adjustments. On June 1, 2015, the Company, through its wholly-owned subsidiary Anixter Inc., completed the previously announced sale of its Fasteners business to AIP.
The following Unaudited Pro Forma Condensed Consolidated Financial Statements have been derived by the application of adjustments to the Company's historical consolidated financial statements. The Unaudited Pro Forma Condensed Consolidated Statement of Income for the fiscal year ended January 2, 2015 is presented as if the disposition had occurred at the beginning of the fiscal year. The Unaudited Pro Forma Condensed Consolidated Balance Sheet as of April 3, 2015 is presented as if the disposition had occurred on April 3, 2015. As a result of the decision to dispose of the Company's Fasteners business, the operating results of the Fasteners business were reflected as discontinued operations for the entire period in the first quarter of 2015, as reported in the Condensed Consolidated Statement of Income in the Company's Quarterly Report on Form 10-Q for the three months ended April 3, 2015. Therefore, an Unaudited Pro Forma Condensed Consolidated Statement of Income for the first quarter of 2015 has not been included.
The Unaudited Pro Forma Condensed Consolidated Financial Statements are being provided for informational purposes only and are not necessarily indicative of the results of operations or financial position that would have resulted if the disposition had actually occurred on the dates indicated and are not intended to project the Company's results of operations or financial position for any future period. The unaudited adjustments are based on estimates, available information and certain assumptions that the Company believes are reasonable, as described in the accompanying notes. The Unaudited Pro Forma Condensed Consolidated Financial Statements and the accompanying notes should be read in conjunction with the historical consolidated financial statements and accompanying notes included in the Company's Annual Report on Form 10-K for the fiscal year ended January 2, 2015 and the Company's Quarterly Report on Form 10-Q for the three months ended April 3, 2015.
ANIXTER INTERNATIONAL INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME
Year Ended January 2, 2015
As Reported
Pro Forma Adjustments
Pro Forma
(In millions, except per share amounts)
Net sales
$
6,445.5
$
(938.5
)
$
5,507.0
Cost of goods sold
4,977.1
(709.4
)
4,267.7
Gross profit
1,468.4
(229.1
)
1,239.3
Operating expenses
1,107.5
(178.3
)
929.2
Operating income
360.9
(50.8
)
310.1
Other expense:
Interest expense
(48.1
)
3.6
(a)
(44.5
)
Other, net
(18.0
)
2.0
(16.0
)
Income before income taxes
294.8
(45.2
)
249.6
Income tax expense
100.0
(13.8
)
86.2
Net income
$
194.8
$
(31.4
)
$
163.4
Income per share:
Basic
$
5.90
$
4.95
Diluted
$
5.84
$
4.90
Weighted-average common shares outstanding:
Basic
33.0
33.0
Diluted
33.3
33.3
(a) Reflects the assumed interest costs that would not have been incurred if the Company had the proceeds from the sales of the Fasteners business at the beginning of the period.
The Unaudited Pro Forma Condensed Consolidated Statement of Income does not include adjustments for income from transition services which are expected to approximate $2 million to $4 million pretax over the next 12 months.
ANIXTER INTERNATIONAL INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
April 3, 2015
As Reported
Pro Forma Adjustments
Pro Forma
(In millions, except share and per share amounts)
ASSETS
Current assets:
Cash and cash equivalents
$
101.2
$
320.0
(b)
$
421.2
Accounts receivable (Includes $480.7 at April 3, 2015 associated with securitization facility)
1,109.4
-
1,109.4
Inventories
839.0
-
839.0
Deferred income taxes
33.4
-
33.4
Other current assets
51.5
-
51.5
Current assets held for sale
419.1
(419.1
)
-
Total current assets
2,553.6
(99.1
)
2,454.5
Property and equipment, at cost
308.3
-
308.3
Accumulated depreciation
(200.7
)
-
(200.7
)
Net property and equipment
107.6
-
107.6
Goodwill
577.1
-
577.1
Other assets
270.9
-
270.9
Total assets
$
3,509.2
$
(99.1
)
$
3,410.1
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
682.5
$
-
$
682.5
Accrued expenses
169.7
-
169.7
Current liabilities of discontinued operations
131.8
(131.8
)
-
Total current liabilities
984.0
(131.8
)
852.2
Long-term debt (Includes $190.0 at April 3, 2015 associated with securitization facility)
1,202.0
-
1,202.0
Other liabilities
208.7
-
208.7
Total liabilities
2,394.7
(131.8
)
2,262.9
Stockholders' equity:
Common stock - $1.00 par value, 100,000,000 shares authorized, 33,238,071 shares issued and outstanding at April 3, 2015
33.2
-
33.2
Capital surplus
240.6
-
240.6
Retained earnings
1,018.9
32.7
(c)
1,051.6
Accumulated other comprehensive loss:
Foreign currency translation
(100.1
)
-
(100.1
)
Unrecognized pension liability, net
(78.1
)
-
(78.1
)
Total accumulated other comprehensive loss
(178.2
)
-
(178.2
)
Total stockholders' equity
1,114.5
32.7
1,147.2
Total liabilities and stockholders' equity
$
3,509.2
$
(99.1
)
$
3,410.1
(b) Reflects the receipt of cash proceeds of $380.0 million, net of transaction fees and taxes. The Company expects to use the net proceeds to reduce outstanding debt balances and for general corporate purposes.
(c) Reflects the adjustment to stockholders' equity related to the sale of the Fasteners business.

EX - 99 . 2 3 exhibit992 - unauditedadjust . htm EXHIBIT 99 . 2 Exhibit 99 . 2 - Unaudited Adjusted Condensed Consolidated Financial Statements Exhibit 99 . 2 UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS On February 9 , 2015 , the Board of Directors of Anixter International Inc . ( the " Company " ) approved the disposition of its OEM Supply - Fasteners ( " Fasteners " ) business . On February 11 , 2015 , the Company , through its wholly - owned subsidiary Anixter Inc . , entered into a definitive asset purchase agreement with American Industrial Partners ( " AIP " ) to sell its Fasteners business for $ 380.0 million in cash , subject to certain post - closing adjustments . On June 1 , 2015 , the Company , through its wholly - owned subsidiary Anixter Inc . , completed the previously announced sale of its Fasteners business to AIP . The following Unaudited Pro Forma Condensed Consolidated Financial Statements have been derived by the application of adjustments to the Company ' s historical consolidated financial statements . The Unaudited Pro Forma Condensed Consolidated Statement of Income for the fiscal year ended January 2 , 2015 is presented as if the disposition had occurred at the beginning of the fiscal year . The Unaudited Pro Forma Condensed Consolidated Balance Sheet as of April 3 , 2015 is presented as if the disposition had occurred on April 3 , 2015 . As a result of the decision to dispose of the Company 's Fasteners business , the operating results of the Fasteners business were reflected as discontinued operations for the entire period in the first quarter of 2015 , as reported in the Condensed Consolidated Statement of Income in the Company 's Quarterly Report on Form 10 - Q for the three months ended April 3 , 2015 . Therefore , an Unaudited Pro Forma Condensed Consolidated Statement of Income for the first quarter of 2015 has not been included . The Unaudited Pro Forma Condensed Consolidated Financial Statements are being provided for informational purposes only and are not necessarily indicative of the results of operations or financial position that would have resulted if the disposition had actually occurred on the dates indicated and are not intended to project the Company 's results of operations or financial position for any future period . The unaudited adjustments are based on estimates , available information and certain assumptions that the Company believes are reasonable , as described in the accompanying notes . The Unaudited Pro Forma Condensed Consolidated Financial Statements and the accompanying notes should be read in conjunction with the historical consolidated financial statements and accompanying notes included in the Company 's Annual Report on Form 10 - K for the fiscal year ended January 2 , 2015 and the Company 's Quarterly Report on Form 10 - Q for the three months ended April 3 , 2015 . ANIXTER INTERNATIONAL INC . UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME Year Ended January 2 , 2015 As Reported Pro Forma Adjustments Pro Forma ( In millions , except per share amounts ) Net sales $ 6,445 . 5 $ ( 938 . 5 ) $ 5,507 . 0 Cost of goods sold 4,977 . 1 ( 709 . 4 ) 4,267 . 7 Gross profit 1,468 . 4 ( 229 . 1 ) 1,239 . 3 Operating expenses 1,107 . 5 ( 178 . 3 ) 929 . 2 Operating income 360 . 9 ( 50 . 8 ) 310 . 1 Other expense : Interest expense ( 48 . 1 ) 3 . 6 ( a ) ( 44 . 5 ) Other , net ( 18 . 0 ) 2 . 0 ( 16 . 0 ) Income before income taxes 294 . 8 ( 45 . 2 ) 249 . 6 Income tax expense 100 . 0 ( 13 . 8 ) 86 . 2 Net income $ 194 . 8 $ ( 31 . 4 ) $ 163 . 4 Income per share : Basic $ 5 . 90 $ 4 . 95 Diluted $ 5 . 84 $ 4 . 90 Weighted - average common shares outstanding : Basic 33 . 0 33 . 0 Diluted 33 . 3 33 . 3 ( a ) Reflects the assumed interest costs that would not have been incurred if the Company had the proceeds from the sales of the Fasteners business at the beginning of the period . The Unaudited Pro Forma Condensed Consolidated Statement of Income does not include adjustments for income from transition services which are expected to approximate $ 2 million to $ 4 million pretax over the next 12 months . ANIXTER INTERNATIONAL INC . UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET April 3 , 2015 As Reported Pro Forma Adjustments Pro Forma ( In millions , except share and per share amounts ) ASSETS Current assets : Cash and cash equivalents $ 101 . 2 $ 320 . 0 ( b ) $ 421 . 2 Accounts receivable ( Includes $ 480.7 at April 3 , 2015 associated with securitization facility ) 1,109 . 4 - 1,109 . 4 Inventories 839 . 0 - 839 . 0 Deferred income taxes 33 . 4 - 33 . 4 Other current assets 51 . 5 - 51 . 5 Current assets held for sale 419 . 1 ( 419 . 1 ) - Total current assets 2,553 . 6 ( 99 . 1 ) 2,454 . 5 Property and equipment , at cost 308 . 3 - 308 . 3 Accumulated depreciation ( 200 . 7 ) - ( 200 . 7 ) Net property and equipment 107 . 6 - 107 . 6 Goodwill 577 . 1 - 577 . 1 Other assets 270 . 9 - 270 . 9 Total assets $ 3,509 . 2 $ ( 99 . 1 ) $ 3,410 . 1 LIABILITIES AND STOCKHOLDERS ' EQUITY Current liabilities : Accounts payable $ 682 . 5 $ - $ 682 . 5 Accrued expenses 169 . 7 - 169 . 7 Current liabilities of discontinued operations 131 . 8 ( 131 . 8 ) - Total current liabilities 984 . 0 ( 131 . 8 ) 852 . 2 Long - term debt ( Includes $ 190.0 at April 3 , 2015 associated with securitization facility ) 1,202 . 0 - 1,202 . 0 Other liabilities 208 . 7 - 208 . 7 Total liabilities 2,394 . 7 ( 131 . 8 ) 2,262 . 9 Stockholders ' equity : Common stock - $ 1.00 par value , 100,000,000 shares authorized , 33,238,071 shares issued and outstanding at April 3 , 2015 33 . 2 - 33 . 2 Capital surplus 240 . 6 - 240 . 6 Retained earnings 1,018 . 9 32 . 7 ( c ) 1,051 . 6 Accumulated other comprehensive loss : Foreign currency translation ( 100 . 1 ) - ( 100 . 1 ) Unrecognized pension liability , net ( 78 . 1 ) - ( 78 . 1 ) Total accumulated other comprehensive loss ( 178 . 2 ) - ( 178 . 2 ) Total stockholders ' equity 1,114 . 5 32 . 7 1,147 . 2 Total liabilities and stockholders ' equity $ 3,509 . 2 $ ( 99 . 1 ) $ 3,410 . 1 ( b ) Reflects the receipt of cash proceeds of $ 380.0 million , net of transaction fees and taxes . The Company expects to use the net proceeds to reduce outstanding debt balances and for general corporate purposes . ( c ) Reflects the adjustment to stockholders ' equity related to the sale of the Fasteners business .
O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY O O O O O O O O O O O O O O B-Parties.ACQUIRED_COMPANY O O O O O O O O O O O O O O O O O O O O O O B-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY O O O O O O O O O B-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY I-Parties.BUYING_COMPANY O O O O O O O O B-Parties.ACQUIRED_COMPANY O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O B-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY I-Parties.SELLING_COMPANY O O O O O O O O B-Parties.ACQUIRED_COMPANY O O B-Parties.BUYING_COMPANY O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O