Allied Defense Group Inc (ADG, Financial) filed Annual Report for the period ended 2011-12-31.
Allied Defense Group Inc has a market cap of $50.16 million; its shares were traded at around $0 with a P/E ratio of 0.6.
As of September 30, 2011, the estimated total net costs to be incurred during liquidation was $3.310 million, consisting of $3.510 million estimated costs offset by $0.200 million of investment income. During the quarter ended December 31, 2011, $0.551 million of costs were incurred. The estimate of costs to be incurred during liquidation was reduced by $0.071 million. This is the net effect of a $0.114 million increase in insurance costs, primarily for directors and officers liability insurance, and a $0.187 million decrease in compliance costs for accounting and legal services. As of December 31, 2011, the estimate of remaining costs to be incurred through 2013 is $2.888 million. Future investment income is estimated to be $0.200 million resulting in estimated total net costs to be incurred during liquidation of $2.688 million as of December 31, 2011.
Our estimate of $2.688 million in net remaining costs to be incurred during liquidation consists of $0.297 million in compensation for remaining employees and directors; $0.564 million for compliance and other office costs, including resident filing fees and costs to settle remaining leases; $0.321 million for insurance; $1.556 million in fees for professional service providers including legal representation relating to the DOJ subpoena; and $0.150 million in income taxes related to the repatriation of foreign monies; offset by interest income of $0.2 million estimated to be received on our cash and short-term investment balances during liquidation. Our estimates are based on the assumption that liquidation will occur no later than December 31, 2013.
As of December 31, 2010, the estimate of net costs to be incurred during liquidation was $3.963 million, consisting of $4.113 million in estimated costs, offset by $0.150 million in estimated investment income. During the year ended December 31, 2011, $2.409 million in costs were incurred. The estimate of costs to be incurred increased by $1.184 million during the year, decreasing the net assets in liquidation per share by $0.15.
The primary causes for the increase were the extension of the liquidation period through 2013 based on advice of FCPA counsel ($0.800 million), the settlement of litigation with a former executive of the Company ($0.200 million), and additional accounting and legal fees costs to be incurred as a result of the direction by the Securities and Exchange Commission staff that the Company must continue to file quarterly and annual financial statements ($0.250 million) and an increase in the premium costs for directors and officers liability insurance ($0.150 million). These increases were offset by the estimate of sublease income from the Companys former executive offices ($0.200 million).
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Allied Defense Group Inc has a market cap of $50.16 million; its shares were traded at around $0 with a P/E ratio of 0.6.
Highlight of Business Operations:
Net assets in liquidation at December 31, 2011 are $44.333 million compared to $45.629 million at December 31, 2010. The change in net assets in liquidation is due to: (i) adjustments of assets to fair value, (ii) income earned on investments, and (iii) adjustments to estimated costs to be incurred during liquidation. The net assets in liquidation per share as of December 31, 2011 has been adjusted to $5.38 as compared to $5.54 as of December 31, 2010 and March 31, 2011, $5.40 as of June 30, 2011 and $5.37 as of September 30, 2011.As of September 30, 2011, the estimated total net costs to be incurred during liquidation was $3.310 million, consisting of $3.510 million estimated costs offset by $0.200 million of investment income. During the quarter ended December 31, 2011, $0.551 million of costs were incurred. The estimate of costs to be incurred during liquidation was reduced by $0.071 million. This is the net effect of a $0.114 million increase in insurance costs, primarily for directors and officers liability insurance, and a $0.187 million decrease in compliance costs for accounting and legal services. As of December 31, 2011, the estimate of remaining costs to be incurred through 2013 is $2.888 million. Future investment income is estimated to be $0.200 million resulting in estimated total net costs to be incurred during liquidation of $2.688 million as of December 31, 2011.
Our estimate of $2.688 million in net remaining costs to be incurred during liquidation consists of $0.297 million in compensation for remaining employees and directors; $0.564 million for compliance and other office costs, including resident filing fees and costs to settle remaining leases; $0.321 million for insurance; $1.556 million in fees for professional service providers including legal representation relating to the DOJ subpoena; and $0.150 million in income taxes related to the repatriation of foreign monies; offset by interest income of $0.2 million estimated to be received on our cash and short-term investment balances during liquidation. Our estimates are based on the assumption that liquidation will occur no later than December 31, 2013.
As of December 31, 2010, the estimate of net costs to be incurred during liquidation was $3.963 million, consisting of $4.113 million in estimated costs, offset by $0.150 million in estimated investment income. During the year ended December 31, 2011, $2.409 million in costs were incurred. The estimate of costs to be incurred increased by $1.184 million during the year, decreasing the net assets in liquidation per share by $0.15.
The primary causes for the increase were the extension of the liquidation period through 2013 based on advice of FCPA counsel ($0.800 million), the settlement of litigation with a former executive of the Company ($0.200 million), and additional accounting and legal fees costs to be incurred as a result of the direction by the Securities and Exchange Commission staff that the Company must continue to file quarterly and annual financial statements ($0.250 million) and an increase in the premium costs for directors and officers liability insurance ($0.150 million). These increases were offset by the estimate of sublease income from the Companys former executive offices ($0.200 million).
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