##### 



UNITED STATES
 SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q/A
 Amendment No. 1
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
 For the Quarterly Period Ended April 3, 2005
 Commission File Number 333-53276
 U.S. CAN CORPORATION
  06-1094196
 DELAWARE
 700 EAST BUTTERFIELD ROAD
SUITE 250
LOMBARD, ILLINOIS 60148
 (630) 678-8000
  o þ
  o þ




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##### 



U.S. CAN CORPORATION AND SUBSIDIARIES
 FORM
10-Q
 FOR THE QUARTERLY PERIOD ENDED APRIL 3, 2005
 TABLE OF CONTENTS
 PagePART I FINANCIAL INFORMATIONItem 1. Financial Statements (Unaudited)Consolidated Statements of Operations for the Quarterly Periods Ended
April 3, 2005 and April 4, 2004 (As Restated)
    
    
    3Consolidated Balance Sheets as of April 3, 2005 and December 31, 2004
    
    
    4Consolidated Statements of Cash Flows for the Quarterly Periods Ended
April 3, 2005 and April 4, 2004 (As Restated)
    
    
    5Notes to Consolidated Financial Statements
    
    
    6Item 2. Managements Discussion and Analysis of Financial Condition
and Results of Operations
    
    
    18Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    20Item 4. Controls and Procedures
    
    
    21PART II OTHER INFORMATIONItem 1. Legal Proceedings
    
    
    23Item 5. Other Information
    
    
    23Item 6. Exhibits
    
    
    24
  EXPLANATORY NOTE
  INCLUSION OF FORWARD-LOOKING INFORMATION
  2




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##### 



U.S. CAN CORPORATION AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF OPERATIONS
(000s OMITTED)
 For the Quarterly Period EndedAs Restated (SeeNote (2))April 3, 2005
    
    
    April 4, 2004(Unaudited)Net Sales
    
    $
    230,445
    
    
    $
    213,467Cost of Sales
    
    
    198,446
    
    
    
    193,623Gross profit
    
    
    31,999
    
    
    
    19,844Selling, General and Administrative Expenses
    
    
    10,908
    
    
    
    9,804Special Charges
    
    
    513
    
    
    
    482Other Income
    
    
    (167
    )
    
    
    (380
    )Interest Expense
    
    
    12,940
    
    
    
    12,717Bank Financing Fees
    
    
    729
    
    
    
    1,378Income (Loss) before income taxes
    
    
    7,076
    
    
    
    (4,157
    )Provision for Income Taxes
    
    
    1,090
    
    
    
    513Net Income (Loss)
    
    
    5,986
    
    
    
    (4,670
    )Preferred Stock Dividend Requirement
    
    
    (4,134
    )
    
    
    (3,824
    )Net Income (Loss) Attributable to Common Stockholders
    
    $
    1,852
    
    
    $
    (8,494
    )
 
 3




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##### 



U.S. CAN CORPORATION AND SUBSIDIARIES
 
 CONSOLIDATED BALANCE SHEETS
(000s OMITTED, except per share data)
 April 3,
    
    
    December 31,2005
    
    
    2004(Unaudited)ASSETSCURRENT ASSETS:Cash and cash equivalents
    
    $
    3,478
    
    
    $
    7,108Accounts receivable, net of allowances
    
    
    95,226
    
    
    
    78,523Inventories
    
    
    115,672
    
    
    
    105,267Deferred income taxes
    
    
    6,573
    
    
    
    7,525Other current assets
    
    
    24,305
    
    
    
    30,811Total current assets
    
    
    245,254
    
    
    
    229,234PROPERTY, PLANT AND EQUIPMENT, less accumulated
depreciation and amortization
    
    
    220,231
    
    
    
    227,022GOODWILL
    
    
    27,384
    
    
    
    27,384DEFERRED INCOME TAXES
    
    
    23,183
    
    
    
    23,199OTHER NON-CURRENT ASSETS
    
    
    49,846
    
    
    
    50,913Total assets
    
    $
    565,898
    
    
    $
    557,752LIABILITIES AND STOCKHOLDERS EQUITYCURRENT LIABILITIES:Current maturities of long-term debt and capital lease obligations
    
    $
    6,470
    
    
    $
    9,445Accounts payable
    
    
    93,460
    
    
    
    100,978Accrued expenses
    
    
    52,354
    
    
    
    55,562Restructuring reserves
    
    
    3,453
    
    
    
    4,347Income taxes payable
    
    
    1,210
    
    
    
    479Total current liabilities
    
    
    156,947
    
    
    
    170,811LONG TERM DEBT
    
    
    573,021
    
    
    
    550,551LONG TERM LIABILITIES PURSUANT TO EMPLOYEE
BENEFIT PLANS
    
    
    65,716
    
    
    
    68,882OTHER LONG-TERM LIABILITIES
    
    
    3,752
    
    
    
    3,684Total liabilities
    
    
    799,436
    
    
    
    793,928REDEEMABLE PREFERRED STOCK, 200,000 shares authorized,
106,667 shares issued & outstanding
    
    
    166,387
    
    
    
    162,253STOCKHOLDERS EQUITY:Common stock, $10.00 par value, 100,000 shares authorized,
53,333 shares issued & outstanding
    
    
    533
    
    
    
    533Additional paid in capital
    
    
    52,800
    
    
    
    52,800Accumulated other comprehensive loss
    
    
    (22,386
    )
    
    
    (19,038
    )Accumulated deficit
    
    
    (430,872
    )
    
    
    (432,724
    )Total stockholders equity / (deficit)
    
    
    (399,925
    )
    
    
    (398,429
    )Total liabilities and stockholders equity
    
    $
    565,898
    
    
    $
    557,752
 
 4




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##### 



U.S. CAN CORPORATION AND SUBSIDIARIES
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
(000s OMITTED)
 For the Quarterly Period EndedAs Restated (SeeNote (2))April 3, 2005
    
    
    April 4, 2004(Unaudited)CASH FLOWS FROM OPERATING ACTIVITIES:Net income (loss)
    
    $
    5,986
    
    
    $
    (4,670
    )Adjustments to reconcile net income (loss) to net cash used for
operating activities:Depreciation and amortization
    
    
    9,790
    
    
    
    11,198Special Charges
    
    
    513
    
    
    
    482Deferred income taxes
    
    
    
    
    
    
    (327
    )Change in operating assets and liabilities:Accounts receivable
    
    
    (18,165
    )
    
    
    (7,882
    )Inventories
    
    
    (12,329
    )
    
    
    (4,654
    )Accounts payable
    
    
    (4,925
    )
    
    
    (1,693
    )Accrued expenses
    
    
    (5,397
    )
    
    
    (6,188
    )Other, net
    
    
    5,563
    
    
    
    (2,957
    )Net cash used for operating activities
    
    
    (18,964
    )
    
    
    (16,691
    )CASH FLOWS FROM INVESTING ACTIVITIES:Capital expenditures
    
    
    (5,695
    )
    
    
    (3,719
    )Proceeds from the sale of property
    
    
    232
    
    
    
    1,018Dividends from Formametal S.A.
    
    
    646
    
    
    
    608Net cash used for investing activities
    
    
    (4,817
    )
    
    
    (2,093
    )CASH FLOWS FROM FINANCING ACTIVITIES:Net borrowings under revolving line of credit
    
    
    23,200
    
    
    
    Payments of other long-term debt, including capital lease obligations
    
    
    (6,301
    )
    
    
    (602
    )Borrowings of other debt
    
    
    2,804
    
    
    
    2,169Payment of debt financing costs
    
    
    (5
    )
    
    
    Net cash provided by financing activities
    
    
    19,698
    
    
    
    1,567EFFECT OF EXCHANGE RATE CHANGES ON CASH
    
    
    453
    
    
    
    (450
    )DECREASE IN CASH AND CASH EQUIVALENTS
    
    
    (3,630
    )
    
    
    (17,667
    )CASH AND CASH EQUIVALENTS, beginning of period
    
    
    7,108
    
    
    
    22,964CASH AND CASH EQUIVALENTS, end of period
    
    $
    3,478
    
    
    $
    5,297
 
 5




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##### 



U.S. CAN CORPORATION AND SUBSIDIARIES
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
April 3, 2005
(Unaudited)
 (1) PRINCIPLES OF REPORTING
  STOCK-BASED COMPENSATION
   For The Quarterly Periods EndedApril 3, 2005
    
    
    April 4, 2004(As Restated)Net Income (Loss)
    
    $
    5,986
    
    
    $
    (4,670
    )Stock-Based Compensation Cost,
net of tax  fair value
method
    
    
    (23
    )
    
    
    (30
    )Pro-Forma Net Income (Loss)
    
    $
    5,963
    
    
    $
    (4,700
    )
  (2) RESTATEMENT
  6




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##### 



For the Quarterly Period EndedApril 4, 2004(Unaudited)ASAS RESTATED
    
    PREVIOUSLYREPORTEDCost of Sales
    
    $
    193,623
    
    
    $
    194,095Gross Profit
    
    
    19,844
    
    
    
    19,372Loss Before Income Taxes
    
    
    (4,157
    )
    
    
    (4,629
    )Provision for Income Taxes
    
    
    513
    
    
    
    332Net Loss
    
    
    (4,670
    )
    
    
    (4,961
    )Net Loss Attributable to Common Stockholders
    
    $
    (8,494
    )
    
    $
    (8,785
    )
 (3) SUPPLEMENTAL CASH FLOW INFORMATION
  (4) SPECIAL CHARGES
 2005
   January 1,
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    April 3,2005
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2005Balance
    
    
    Additions
    
    
    Cash Payments
    
    
    Other (b)
    
    
    BalanceEmployee Separation
    
    $
    3.2
    
    
    $
    0.4
    
    
    $
    (0.5
    )
    
    $
    (0.1
    )
    
    $
    3.0Facility Closing
Costs
    
    
    4.1
    
    
    
    0.1
    
    
    
    (0.7
    )
    
    
    
    
    
    
    3.5Total
    
    $
    7.3
    
    
    $
    0.5
    
    
    $
    (1.2
    )
    
    $
    (0.1
    )
    
    $
    6.5
    (a)
 
 (a)
    
    Includes $3.1 million classified as other long-term liabilities as of April 3, 2005.(b)
    
    Non-cash foreign currency translation impact 2004
  7




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##### 



January 1,
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    April 4,2004
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2004Balance
    
    
    Additions
    
    
    Cash Payments
    
    
    Other (b)
    
    
    BalanceEmployee Separation
    
    $
    4.3
    
    
    $
    0.5
    
    
    $
    (1.3
    )
    
    $
    (0.1
    )
    
    $
    3.4Facility Closing
Costs
    
    
    3.6
    
    
    
    
    
    
    
    (0.3
    )
    
    
    
    
    
    
    3.3Total
    
    $
    7.9
    
    
    $
    0.5
    
    
    $
    (1.6
    )
    
    $
    (0.1
    )
    
    $
    6.7
    (a)
 
 (a)
    
    Includes $4.6 million classified as other long-term liabilities as of April 4, 2004.(b)
    
    Non-cash foreign currency translation impact (5) INVENTORIES
  April 3,
    
    
    December 31,2005
    
    
    2004Raw materials
    
    $
    33,860
    
    
    $
    35,849Work in process
    
    
    43,666
    
    
    
    38,758Finished goods
    
    
    38,146
    
    
    
    30,660$
    115,672
    
    
    $
    105,267
 (6) COMPREHENSIVE NET INCOME (LOSS)
  April 3,
    
    
    December 31,2005
    
    
    2004Foreign Currency Translation Adjustment
    
    $
    (3,431
    )
    
    $
    220Minimum Pension Liability Adjustment
    
    
    (18,955
    )
    
    
    (19,258
    )Total Accumulated Other Comprehensive Loss
    
    $
    (22,386
    )
    
    $
    (19,038
    )
  For the Quarterly Periods EndedApril 3,
    
    
    April 4,2005
    
    
    2004(As Restated)Net Income (Loss)
    
    $
    5,986
    
    
    $
    (4,670
    )Foreign Currency Translation Adjustment
    
    
    (3,348
    )
    
    
    (1,434
    )Comprehensive Income (Loss)
    
    $
    2,638
    
    
    $
    (6,104
    )
 (7) BENEFIT PLANS
  8




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##### 



U.S.
 April 3, 2005
    
    
    April 4, 2004Service cost
    
    $
    321
    
    
    $
    252Interest cost
    
    
    716
    
    
    
    686Return on assets
    
    
    (729
    )
    
    
    (677
    )Recognized loss
    
    
    51
    
    
    
    4Recognized prior service cost
    
    
    141
    
    
    
    122Net periodic pension cost
    
    $
    500
    
    
    $
    387
 Non-U.S.
 April 3, 2005
    
    
    April 4, 2004Service cost
    
    $
    90
    
    
    $
    88Interest cost
    
    
    1,127
    
    
    
    1,129Return on assets
    
    
    (950
    )
    
    
    (864
    )Recognized loss
    
    
    160
    
    
    
    208Net periodic pension cost
    
    $
    427
    
    
    $
    561
   U.S.
 April 3, 2005
    
    
    April 4, 2004Service cost
    
    $
    98
    
    
    $
    87Interest cost
    
    
    373
    
    
    
    351Recognized loss
    
    
    80
    
    
    
    48Recognized prior service cost
    
    
    (213
    )
    
    
    (226
    )Net periodic pension cost
    
    $
    338
    
    
    $
    260
  (8) BUSINESS SEGMENTS
  9




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##### 



April 3,
    
    
    April 4,2005
    
    
    2004(As Restated)REVENUES FROM EXTERNAL CUSTOMERS:Aerosol
    
    $
    105,122
    
    
    $
    92,155International
    
    
    79,598
    
    
    
    78,398Paint, Plastic & General Line
    
    
    36,625
    
    
    
    33,426Custom & Specialty
    
    
    9,100
    
    
    
    9,488Total revenues
    
    $
    230,445
    
    
    $
    213,467INCOME (LOSS) BEFORE INCOME TAXES:Aerosol
    
    $
    21,754
    
    
    $
    14,807International
    
    
    503
    
    
    
    (1,574
    )Paint, Plastic & General Line
    
    
    4,391
    
    
    
    3,505Custom & Specialty
    
    
    2,498
    
    
    
    (354
    )Total Segment Income From Operations
    
    
    29,146
    
    
    
    16,384Unallocated Selling, General & Administrative Expenses (a)
    
    
    (8,055
    )
    
    
    (6,344
    )Special Charges (b)
    
    
    (513
    )
    
    
    (482
    )Other Income (c)
    
    
    167
    
    
    
    380Interest Expense
    
    
    (12,940
    )
    
    
    (12,717
    )Bank Financing Fees
    
    
    (729
    )
    
    
    (1,378
    )Income (Loss) before income taxes
    
    $
    7,076
    
    
    $
    (4,157
    )
 
 (a)
    
    Represents domestic Selling, General & Administrative expenses. The
Company does not allocate these costs to its domestic segments.(b)
    
    Management does not evaluate segment performance including such charges.
See Note (4) for further information on the Companys special charges.(c)
    
    Other income represents the Companys share of the net income of its joint
venture equity investment in Argentina, and dividends related to a cost based
investment. (9) COMMITMENTS AND CONTINGENCIES
 Environmental
  10




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##### 



Legal
   (10) SUBSIDIARY GUARANTOR INFORMATION
    11




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##### 



U.S. CAN CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE QUARTERLY PERIOD ENDED APRIL 3, 2005
(unaudited)
(000s omitted)
 USC May
    
    
    USC Europe/ MayUnited
    
    
    Verpackungen
    
    
    VerpackungenU.S. Can
    
    
    States Can
    
    
    Holding
    
    
    GmbH & Co., KG
    
    
    
    
    
    
    U.S. CanCorporation
    
    
    Company
    
    
    (Guarantor
    
    
    (Non-Guarantor
    
    
    
    
    
    
    Corporation(Parent)
    
    
    (Issuer)
    
    
    Subsidiaries)
    
    
    Subsidiaries)
    
    
    Eliminations
    
    
    ConsolidatedNET SALES
    
    $
    
    
    
    $
    150,847
    
    
    $
    
    
    
    $
    79,598
    
    
    $
    
    
    
    $
    230,445COST OF SALES
    
    
    
    
    
    
    122,204
    
    
    
    
    
    
    
    76,242
    
    
    
    
    
    
    
    198,446Gross profit
    
    
    
    
    
    
    28,643
    
    
    
    
    
    
    
    3,356
    
    
    
    
    
    
    
    31,999SELLING, GENERAL AND
ADMINISTRATIVE EXPENSE
    
    
    
    
    
    
    8,055
    
    
    
    
    
    
    
    2,853
    
    
    
    
    
    
    
    10,908SPECIAL CHARGES
    
    
    
    
    
    
    89
    
    
    
    
    
    
    
    424
    
    
    
    
    
    
    
    513OTHER INCOME
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (167
    )
    
    
    
    
    
    
    (167
    )INTEREST (INCOME)
EXPENSE
    
    
    
    
    
    
    11,719
    
    
    
    1,629
    
    
    
    (408
    )
    
    
    
    
    
    
    12,940BANK FINANCING FEES
    
    
    
    
    
    
    729
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    729EQUITY INCOME (LOSS)
FROM SUBSIDIARIES
    
    
    5,986
    
    
    
    (2,065
    )
    
    
    (526
    )
    
    
    
    
    
    
    (3,395
    )
    
    
    Income (loss)
before income taxes
    
    
    5,986
    
    
    
    5,986
    
    
    
    (2,155
    )
    
    
    654
    
    
    
    (3,395
    )
    
    
    7,076PROVISION FOR
INCOME TAXES
    
    
    
    
    
    
    
    
    
    
    53
    
    
    
    1,037
    
    
    
    
    
    
    
    1,090NET INCOME (LOSS)
    
    
    5,986
    
    
    
    5,986
    
    
    
    (2,208
    )
    
    
    (383
    )
    
    
    (3,395
    )
    
    
    5,986PREFERRED STOCK DIVIDEND
REQUIREMENT
    
    
    (4,134
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,134
    )NET INCOME (LOSS)
ATTRIBUTABLE TO
COMMON STOCKHOLDERS
    
    $
    1,852
    
    
    $
    5,986
    
    
    $
    (2,208
    )
    
    $
    (383
    )
    
    $
    (3,395
    )
    
    $
    1,852
 12




---



##### 



U.S. CAN CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
RESTATED FOR THE QUARTERLY PERIOD ENDED APRIL 4, 2004
(unaudited)
(000s omitted)
 Restated
    
    
    USC May
    
    
    USC Europe/ MayRestated
    
    
    United
    
    
    Verpackungen
    
    
    Verpackungen
    
    
    
    
    
    
    RestatedU.S. Can
    
    
    States Can
    
    
    Holding
    
    
    GmbH & Co., KG
    
    
    
    
    
    
    U.S. CanCorporation
    
    
    Company
    
    
    (Guarantor
    
    
    (Non-Guarantor
    
    
    Restated
    
    
    Corporation(Parent)
    
    
    (Issuer)
    
    
    Subsidiaries)
    
    
    Subsidiaries)
    
    
    Eliminations
    
    
    ConsolidatedNET SALES
    
    $
    
    
    
    $
    135,069
    
    
    $
    
    
    
    $
    78,398
    
    
    $
    
    
    
    $
    213,467COST OF SALES
    
    
    
    
    
    
    117,111
    
    
    
    
    
    
    
    76,512
    
    
    
    
    
    
    
    193,623Gross profit
    
    
    
    
    
    
    17,958
    
    
    
    
    
    
    
    1,886
    
    
    
    
    
    
    
    19,844SELLING, GENERAL AND
ADMINISTRATIVE
EXPENSES
    
    
    
    
    
    
    6,344
    
    
    
    
    
    
    
    3,460
    
    
    
    
    
    
    
    9,804SPECIAL CHARGES
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    482
    
    
    
    
    
    
    
    482OTHER INCOME
    
    
    
    
    
    
    (224
    )
    
    
    
    
    
    
    (156
    )
    
    
    
    
    
    
    (380
    )INTEREST EXPENSE
    
    
    
    
    
    
    10,922
    
    
    
    1,353
    
    
    
    442
    
    
    
    
    
    
    
    12,717BANK FINANCING FEES
    
    
    
    
    
    
    1,288
    
    
    
    
    
    
    
    90
    
    
    
    
    
    
    
    1,378EQUITY LOSS
FROM SUBSIDIARIES
    
    
    (4,670
    )
    
    
    (4,374
    )
    
    
    (822
    )
    
    
    
    
    
    
    9,866
    
    
    
    Loss before income taxes
    
    
    (4,670
    )
    
    
    (4,746
    )
    
    
    (2,175
    )
    
    
    (2,432
    )
    
    
    9,866
    
    
    
    (4,157
    )PROVISION (BENEFIT) FOR
INCOME TAXES
    
    
    
    
    
    
    (76
    )
    
    
    75
    
    
    
    514
    
    
    
    
    
    
    
    513NET LOSS
    
    
    (4,670
    )
    
    
    (4,670
    )
    
    
    (2,250
    )
    
    
    (2,946
    )
    
    
    9,866
    
    
    
    (4,670
    )PREFERRED STOCK DIVIDEND
REQUIREMENT
    
    
    (3,824
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,824
    )NET LOSS ATTRIBUTABLE TO
COMMON STOCKHOLDERS
    
    $
    (8,494
    )
    
    $
    (4,670
    )
    
    $
    (2,250
    )
    
    $
    (2,946
    )
    
    $
    9,866
    
    
    $
    (8,494
    )
 13




---



##### 



U.S. CAN CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 CONDENSED CONSOLIDATING BALANCE SHEET
AS OF APRIL 3, 2005
(unaudited)
(000s omitted)
 USC Europe/USC May
    
    
    MayVerpackungen
    
    
    VerpackungenU.S. Can
    
    
    United States
    
    
    Holding
    
    
    GmbH (Non-
    
    
    
    
    
    
    U.S. CanCorporation
    
    
    Can Company
    
    
    (Subsidiary
    
    
    Guarantor
    
    
    
    
    
    
    Corporation(Parent)
    
    
    (Issuer)
    
    
    Guarantor)
    
    
    Subsidiaries)
    
    
    Eliminations
    
    
    ConsolidatedCURRENT ASSETS:Cash and cash equivalents
    
    $
    
    
    
    $
    996
    
    
    $
    
    
    
    $
    2,482
    
    
    $
    
    
    
    $
    3,478Accounts receivable
    
    
    
    
    
    
    64,961
    
    
    
    
    
    
    
    30,265
    
    
    
    
    
    
    
    95,226Inventories
    
    
    
    
    
    
    74,636
    
    
    
    
    
    
    
    41,036
    
    
    
    
    
    
    
    115,672Deferred income taxes
    
    
    
    
    
    
    6,573
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,573Other current assets
    
    
    
    
    
    
    6,217
    
    
    
    
    
    
    
    18,088
    
    
    
    
    
    
    
    24,305Total current assets
    
    
    
    
    
    
    153,383
    
    
    
    
    
    
    
    91,871
    
    
    
    
    
    
    
    245,254NET PROPERTY, PLANT AND
EQUIPMENT
    
    
    
    
    
    
    124,844
    
    
    
    
    
    
    
    95,387
    
    
    
    
    
    
    
    220,231GOODWILL
    
    
    
    
    
    
    27,384
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    27,384DEFERRED INCOME TAXES
    
    
    
    
    
    
    22,867
    
    
    
    
    
    
    
    316
    
    
    
    
    
    
    
    23,183OTHER NON-CURRENT ASSETS
    
    
    
    
    
    
    36,305
    
    
    
    
    
    
    
    13,541
    
    
    
    
    
    
    
    49,846INTERCOMPANY
ADVANCES
    
    
    
    
    
    
    289,801
    
    
    
    
    
    
    
    
    
    
    
    (289,801
    )
    
    
    INVESTMENT IN
SUBSIDIARIES
    
    
    
    
    
    
    
    
    
    
    61,835
    
    
    
    
    
    
    
    (61,835
    )
    
    
    Total assets
    
    $
    
    
    
    $
    654,584
    
    
    $
    61,835
    
    
    $
    201,115
    
    
    $
    (351,636
    )
    
    $
    565,898CURRENT LIABILITIESCurrent
maturities of
long-term debt
    
    $
    
    
    
    $
    3,935
    
    
    $
    
    
    
    $
    2,535
    
    
    $
    
    
    
    $
    6,470Accounts payable
    
    
    
    
    
    
    41,922
    
    
    
    
    
    
    
    51,538
    
    
    
    
    
    
    
    93,460Restructuring reserves
    
    
    
    
    
    
    1,171
    
    
    
    
    
    
    
    2,282
    
    
    
    
    
    
    
    3,453Income taxes payable
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,210
    
    
    
    
    
    
    
    1,210Accrued Expenses
    
    
    
    
    
    
    37,189
    
    
    
    
    
    
    
    15,165
    
    
    
    
    
    
    
    52,354Total current liabilities
    
    
    
    
    
    
    84,217
    
    
    
    
    
    
    
    72,730
    
    
    
    
    
    
    
    156,947TOTAL LONG TERM DEBT
    
    
    854
    
    
    
    572,167
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    573,021LONG-TERM LIABILITIES PURSUANT
TO EMPLOYEE BENEFIT PLANS
    
    
    
    
    
    
    39,475
    
    
    
    896
    
    
    
    25,345
    
    
    
    
    
    
    
    65,716OTHER LONG-TERM
LIABILITIES
    
    
    
    
    
    
    2,784
    
    
    
    
    
    
    
    968
    
    
    
    
    
    
    
    3,752PREFERRED STOCK
    
    
    166,387
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    166,387INTERCOMPANY LOANS
    
    
    112,058
    
    
    
    
    
    
    
    128,488
    
    
    
    49,255
    
    
    
    (289,801
    )
    
    
    INVESTMENT IN
SUBSIDIARIES
    
    
    120,626
    
    
    
    76,567
    
    
    
    
    
    
    
    
    
    
    
    (197,193
    )
    
    
    STOCKHOLDERS EQUITY
    
    
    (399,925
    )
    
    
    (120,626
    )
    
    
    (67,549
    )
    
    
    52,817
    
    
    
    135,358
    
    
    
    (399,925
    )Total liabilities and
stockholders equity
    
    $
    
    
    
    $
    654,584
    
    
    $
    61,835
    
    
    $
    201,115
    
    
    $
    (351,636
    )
    
    $
    565,898
 14




---



##### 



U.S. CAN CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 CONDENSED CONSOLIDATING BALANCE SHEET
As of December 31, 2004
(000s omitted)
 USC Europe/USC May
    
    
    MayVerpackungen
    
    
    VerpackungenU.S. Can
    
    
    United States
    
    
    Holding
    
    
    GmbH (Non-
    
    
    
    
    
    
    U.S. CanCorporation
    
    
    Can Company
    
    
    (Subsidiary
    
    
    Guarantor
    
    
    
    
    
    
    Corporation(Parent)
    
    
    (Issuer)
    
    
    Guarantor)
    
    
    Subsidiaries)
    
    
    Eliminations
    
    
    ConsolidatedCURRENT ASSETS:Cash and cash equivalents
    
    $
    
    
    
    $
    927
    
    
    $
    
    
    
    $
    6,181
    
    
    $
    
    
    
    $
    7,108Accounts receivable
    
    
    
    
    
    
    50,115
    
    
    
    
    
    
    
    28,408
    
    
    
    
    
    
    
    78,523Inventories
    
    
    
    
    
    
    62,861
    
    
    
    
    
    
    
    42,406
    
    
    
    
    
    
    
    105,267Deferred income taxes
    
    
    
    
    
    
    6,660
    
    
    
    
    
    
    
    865
    
    
    
    
    
    
    
    7,525Other current assets
    
    
    
    
    
    
    8,376
    
    
    
    
    
    
    
    22,435
    
    
    
    
    
    
    
    30,811Total current assets
    
    
    
    
    
    
    128,939
    
    
    
    
    
    
    
    100,295
    
    
    
    
    
    
    
    229,234NET PROPERTY, PLANT AND
EQUIPMENT
    
    
    
    
    
    
    126,418
    
    
    
    
    
    
    
    100,604
    
    
    
    
    
    
    
    227,022GOODWILL
    
    
    
    
    
    
    27,384
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    27,384DEFERRED INCOME TAXES
    
    
    
    
    
    
    22,867
    
    
    
    
    
    
    
    332
    
    
    
    
    
    
    
    23,199OTHER NON-CURRENT ASSETS
    
    
    
    
    
    
    36,715
    
    
    
    
    
    
    
    14,198
    
    
    
    
    
    
    
    50,913INTERCOMPANY
ADVANCES
    
    
    
    
    
    
    286,028
    
    
    
    
    
    
    
    
    
    
    
    (286,028
    )
    
    
    INVESTMENT IN
SUBSIDIARIES
    
    
    
    
    
    
    
    
    
    
    64,954
    
    
    
    
    
    
    
    (64,954
    )
    
    
    Total assets
    
    $
    
    
    
    $
    628,351
    
    
    $
    64,954
    
    
    $
    215,429
    
    
    $
    (350,982
    )
    
    $
    557,752CURRENT LIABILITIESCurrent
maturities of
long-term debt
    
    $
    
    
    
    $
    3,965
    
    
    $
    
    
    
    $
    5,480
    
    
    $
    
    
    
    $
    9,445Accounts payable
    
    
    
    
    
    
    41,716
    
    
    
    
    
    
    
    59,262
    
    
    
    
    
    
    
    100,978Restructuring reserves
    
    
    
    
    
    
    1,947
    
    
    
    
    
    
    
    2,400
    
    
    
    
    
    
    
    4,347Income taxes payable
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    479
    
    
    
    
    
    
    
    479Accrued Expenses
    
    
    
    
    
    
    39,244
    
    
    
    
    
    
    
    16,318
    
    
    
    
    
    
    
    55,562Total current liabilities
    
    
    
    
    
    
    86,872
    
    
    
    
    
    
    
    83,939
    
    
    
    
    
    
    
    170,811TOTAL LONG TERM DEBT
    
    
    854
    
    
    
    549,697
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    550,551LONG-TERM LIABILITIES PURSUANT
TO EMPLOYEE BENEFIT PLANS
    
    
    
    
    
    
    41,652
    
    
    
    591
    
    
    
    26,639
    
    
    
    
    
    
    
    68,882OTHER LONG-TERM
LIABILITIES
    
    
    
    
    
    
    2,782
    
    
    
    
    
    
    
    902
    
    
    
    
    
    
    
    3,684PREFERRED STOCK
    
    
    162,253
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    162,253INTERCOMPANY LOANS
    
    
    112,057
    
    
    
    
    
    
    
    127,111
    
    
    
    46,860
    
    
    
    (286,028
    )
    
    
    INVESTMENT IN
SUBSIDIARIES
    
    
    123,265
    
    
    
    70,613
    
    
    
    
    
    
    
    
    
    
    
    (193,878
    )
    
    
    STOCKHOLDERS EQUITY
    
    
    (398,429
    )
    
    
    (123,265
    )
    
    
    (62,748
    )
    
    
    57,089
    
    
    
    128,924
    
    
    
    (398,429
    )Total liabilities and
stockholders equity
    
    $
    
    
    
    $
    628,351
    
    
    $
    64,954
    
    
    $
    215,429
    
    
    $
    (350,982
    )
    
    $
    557,752
 15




---



##### 



U.S. CAN CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE QUARTERLY PERIOD ENDED APRIL 3, 2005
(unaudited)
(000s omitted)
 USC MayUnited
    
    
    Verpackungen
    
    
    USC Europe / MayU.S. Can
    
    
    States Can
    
    
    Holding
    
    
    Verpackungen
    
    
    U.S. CanCorporation
    
    
    Company
    
    
    (Subsidiary
    
    
    (Non-Guarantor
    
    
    Corporation(Parent)
    
    
    (Issuer)
    
    
    Guarantor)
    
    
    Subsidiaries)
    
    
    ConsolidatedCASH FLOWS USED FOR OPERATING ACTIVITIES
    
    $
    
    
    
    $
    (15,167
    )
    
    $
    (2,217
    )
    
    $
    (1,580
    )
    
    $
    (18,964
    )CASH FLOWS FROM INVESTING ACTIVITIES:Capital expenditures
    
    
    
    
    
    
    (4,071
    )
    
    
    
    
    
    
    (1,624
    )
    
    
    (5,695
    )Proceeds from sale of property
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    232
    
    
    
    232Dividends from Formametal S.A.
    
    
    
    
    
    
    646
    
    
    
    
    
    
    
    
    
    
    
    646Net cash used for investing activities
    
    
    
    
    
    
    (3,425
    )
    
    
    
    
    
    
    (1,392
    )
    
    
    (4,817
    )CASH FLOWS FROM FINANCING ACTIVITIES:Changes in intercompany advances
    
    
    
    
    
    
    (3,774
    )
    
    
    2,217
    
    
    
    1,557
    
    
    
    Net borrowings under revolving line of credit
    
    
    
    
    
    
    23,200
    
    
    
    
    
    
    
    
    
    
    
    23,200Payments of other long-term debt
    
    
    
    
    
    
    (1,028
    )
    
    
    
    
    
    
    (5,273
    )
    
    
    (6,301
    )Borrowings of other debt
    
    
    
    
    
    
    268
    
    
    
    
    
    
    
    2,536
    
    
    
    2,804Payments of debt financing costs
    
    
    
    
    
    
    (5
    )
    
    
    
    
    
    
    
    
    
    
    (5
    )Net cash (used for) provided by financing
activities
    
    
    
    
    
    
    18,661
    
    
    
    2,217
    
    
    
    (1,180
    )
    
    
    19,698EFFECT OF EXCHANGE RATE CHANGES ON CASH
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    453
    
    
    
    453INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
    
    
    
    
    
    
    69
    
    
    
    
    
    
    
    (3,699
    )
    
    
    (3,630
    )CASH AND CASH EQUIVALENTS, beginning of period
    
    
    
    
    
    
    927
    
    
    
    
    
    
    
    6,181
    
    
    
    7,108CASH AND CASH EQUIVALENTS, end of period
    
    $
    
    
    
    $
    996
    
    
    $
    
    
    
    $
    2,482
    
    
    $
    3,478
 16




---



##### 



U.S. CAN CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued)
 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE QUARTERLY PERIOD ENDED APRIL 4, 2004
(unaudited)
(000s omitted)
 USC MayUnited
    
    
    Verpackungen
    
    
    USC Europe / MayU.S. Can
    
    
    States Can
    
    
    Holding
    
    
    Verpackungen
    
    
    U.S. CanCorporation
    
    
    Company
    
    
    (Subsidiary
    
    
    (Non-Guarantor
    
    
    Corporation(Parent)
    
    
    (Issuer)
    
    
    Guarantor)
    
    
    Subsidiaries)
    
    
    ConsolidatedCASH FLOWS USED FOR OPERATING ACTIVITIES
    
    $
    
    
    
    $
    (11,648
    )
    
    $
    (2,250
    )
    
    $
    (2,793
    )
    
    $
    (16,691
    )CASH FLOWS FROM INVESTING ACTIVITIES:Capital expenditures
    
    
    
    
    
    
    (3,354
    )
    
    
    
    
    
    
    (365
    )
    
    
    (3,719
    )Proceeds from sale of property
    
    
    
    
    
    
    1,018
    
    
    
    
    
    
    
    
    
    
    
    1,018Dividends from Formametal S.A.
    
    
    
    
    
    
    608
    
    
    
    
    
    
    
    
    
    
    
    608Net cash used for investing activities
    
    
    
    
    
    
    (1,728
    )
    
    
    
    
    
    
    (365
    )
    
    
    (2,093
    )CASH FLOWS FROM FINANCING ACTIVITIES:Changes in intercompany advances
    
    
    
    
    
    
    (1,268
    )
    
    
    2,250
    
    
    
    (982
    )
    
    
    Payments of other long-term debt
    
    
    
    
    
    
    (602
    )
    
    
    
    
    
    
    
    
    
    
    (602
    )Borrowings of other debt
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,169
    
    
    
    2,169Net cash (used for) provided by financing
activities
    
    
    
    
    
    
    (1,870
    )
    
    
    2,250
    
    
    
    1,187
    
    
    
    1,567EFFECT OF EXCHANGE RATE CHANGES ON CASH
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (450
    )
    
    
    (450
    )DECREASE IN CASH AND
CASH EQUIVALENTS
    
    
    
    
    
    
    (15,246
    )
    
    
    
    
    
    
    (2,421
    )
    
    
    (17,667
    )CASH AND CASH EQUIVALENTS, beginning of
period
    
    
    
    
    
    
    16,854
    
    
    
    
    
    
    
    6,110
    
    
    
    22,964CASH AND CASH EQUIVALENTS, end of period
    
    $
    
    
    
    $
    1,608
    
    
    $
    
    
    
    $
    3,689
    
    
    $
    5,297
 17




---



##### 



Item 2. Managements Discussion and Analysis of Financial Condition and Results of
Operations
   Use of Estimates; Significant Accounting Policies
  Results of Operations
  For the quarterly periods ended April 3, 2005 and April 4, 2004Revenue
    
    
    Gross Profit(in 000s)
    
    
    (in 000s)
    
    
    Percentage to Sales2005
    
    
    2004
    
    
    2005
    
    
    2004
    
    
    2005
    
    
    2004(As Restated)
    
    
    
    
    
    
    (As Restated)Aerosol
    
    $
    105,122
    
    
    $
    92,155
    
    
    $
    21,754
    
    
    $
    14,807
    
    
    
    20.7
    %
    
    
    16.1
    %International
    
    
    79,598
    
    
    
    78,398
    
    
    
    3,356
    
    
    
    1,886
    
    
    
    4.2
    %
    
    
    2.4
    %Paint, Plastic & General Line
    
    
    36,625
    
    
    
    33,426
    
    
    
    4,391
    
    
    
    3,505
    
    
    
    12.0
    %
    
    
    10.5
    %Custom & Specialty
    
    
    9,100
    
    
    
    9,488
    
    
    
    2,498
    
    
    
    (354
    )
    
    
    27.5
    %
    
    
    (3.7
    )%Total
    
    $
    230,445
    
    
    $
    213,467
    
    
    $
    31,999
    
    
    $
    19,844
    
    
    
    13.9
    %
    
    
    9.3
    %
   18




---



##### 



January 1,
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    April 3,2005
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2005Balance
    
    
    Additions
    
    
    Cash Payments
    
    
    Other (b)
    
    
    BalanceEmployee Separation
    
    $
    3.2
    
    
    $
    0.4
    
    
    $
    (0.5
    )
    
    $
    (0.1
    )
    
    $
    3.0Facility Closing
Costs
    
    
    4.1
    
    
    
    0.1
    
    
    
    (0.7
    )
    
    
    
    
    
    
    3.5Total
    
    $
    7.3
    
    
    $
    0.5
    
    
    $
    (1.2
    )
    
    $
    (0.1
    )
    
    $
    6.5
    (a)
 
 (a)
    
    Includes $3.1 million classified as other long-term liabilities as of April 3,
2005.(b)
    
    Non-cash foreign currency translation impact    Liquidity and Capital Resources
  19




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##### 



Item 3. Quantitative and Qualitative Disclosures About Market Risk
  20




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##### 



Item 4. Controls and Procedures
         §
    
    In December 2004, the Company hired a new Finance Director for its Laon,
France facility.§
    
    The Company has hired an internal auditor to provide internal audit
services for the Company, including the Companys European operations.
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##### 



§
    
    The Company continues the process of implementing a detailed system at each
European location to provide support to the audit process, including reports,
checklists and site visits.
    22




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##### 



PART
II
 OTHER INFORMATION
 
 Item 1. Legal Proceedings
 Environmental Matters
     Litigation
   
 Item 5. Other Information
  23




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##### 



Item 6. Exhibits
  31.1
    
    Certification of Chief Executive Officer Pursuant to Section
13a-15 of the Securities and Exchange Act of 193431.2
    
    Certification of Principal Financial Officer Pursuant to Section
13a-15 of the Securities and Exchange Act of 1934
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##### 



SIGNATURES
  U.S. CAN CORPORATIONDate: October 4, 2005
    
    By:
    
    /s/ Michael M. RajkovicMichael M. RajkovicExecutive Vice President andChief Financial Officer(Duly authorized officer and principalfinancial officer)
 25