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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-K/A
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1998
COMMISSION FILE NUMBER 1-11831
SABRATEK CORPORATION
(Exact name of registrant as specified in its charter)
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<S> <C>
DELAWARE 36-3700639
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
8111 NORTH ST. LOUIS AVENUE, SKOKIE, ILLINOIS 60076
(address of principal executive offices) (Zip Code)
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Registrant's telephone number, including area code: (847) 720-2400
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act:
(TITLE OF CLASS)
Common Stock, $.01 Par Value
(TITLE OF CLASS)
Series B Preferred Stock Purchase Rights
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No ___
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [ ]
The aggregate market value of the common stock, par value $.01 per share,
held by non-affiliates based upon the reported last sale price of the common
stock on March 17, 1999 was approximately $132,944,333.25.
As of March 17, 1999, there were 9,875,584 shares of common stock, par
value $.01 per share, outstanding.
The Index to Exhibits appears on page 47.
DOCUMENTS INCORPORATED BY REFERENCE
The registrant's definitive 1999 Proxy Statement which will be filed
pursuant to Regulation 14A is incorporated by reference into Part III of this
Annual Report on Form 10-K.
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ITEM 6. SELECTED FINANCIAL DATA
The selected financial data with respect to Sabratek's statements of
operations for each of the years in the five year period ended December 31, 1998
and the balance sheet data as of December 31, 1998, 1997, 1996, 1995 and 1994
are derived from Sabratek's audited financial statements. The financial data for
Sabratek should be read in conjunction with Sabratek's Financial Statements and
Notes thereto and "Management's Discussion and Analysis of Financial Condition
and Results of Operations," included elsewhere herein.
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<CAPTION>
YEAR ENDED DECEMBER 31,
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1998 1997 1996 1995 1994
---- ---- ---- ---- ----
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<S> <C> <C> <C> <C> <C>
STATEMENT OF OPERATIONS DATA:
Net sales................................... $ 66,910 $43,058 $ 17,696 $ 4,040 $ 3,315
Cost of sales............................... 29,966 18,720 8,748 2,902 2,481
Provision for inventory reserve............. 2,116 -- -- -- --
-------- ------- -------- -------- -------
Gross margin................................ 34,828 24,338 8,948 1,138 834
Selling, general and administrative
expenses.................................. 26,248 18,256 8,474 6,874 4,108
-------- ------- -------- -------- -------
Operating income (loss)..................... 8,580 6,082 474 (5,736) (3,274)
Interest expense............................ (3,623) (45) (319) (222) (260)
Other income (expense), including interest
income.................................... 3,402 1,209 615 (78) (21)
Stock appreciation rights(1)................ -- -- (1,628) -- --
Provision for income taxes.................. 3,487 -- -- -- --
-------- ------- -------- -------- -------
Net income (loss)........................... $ 4,872 $ 7,246 $ (858) $ (6,036) $(3,555)
======== ======= ======== ======== =======
Basic income (loss) per share............... $ 0.47 $ 0.75 $ (0.17) $ (3.72) $ --
======== ======= ======== ======== =======
Basic weighted average shares
outstanding(2)............................ 10,316 9,614 5,143 1,622 --
======== ======= ======== ======== =======
Diluted income (loss) per share............. $ 0.44 $ 0.67 $ (0.17) $ (3.72) $ --
======== ======= ======== ======== =======
Diluted weighted average shares
outstanding(2)............................ 11,146 10,895 5,143 1,622 --
======== ======= ======== ======== =======
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<CAPTION>
YEAR ENDED DECEMBER 31,
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1998 1997 1996 1995 1994
---- ---- ---- ---- ----
(IN THOUSANDS)
<S> <C> <C> <C> <C> <C>
BALANCE SHEET DATA:
Working capital............................. $ 70,969 $48,156 $ 24,587 $ (1,101) $ 999
Total assets................................ 152,679 71,167 32,951 4,179 3,338
Short-term debt (including current portion
of long term obligations)(3).............. 33 25 303 775 91
Debt and Long-term obligations.............. 85,216 264 24 2,512 464
Accumulated deficit......................... (2,192) (7,064) (14,310) (13,452) (7,416)
Total stockholders' equity (deficit)........ 58,029 64,415 28,650 (2,821) 1,151
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(1) For the year ended December 31, 1996, a non-recurring charge in the amount
of approximately $1.6 million was recorded to recognize obligations under
certain stock appreciation rights in connection with Sabratek's June 1996
initial public offering.
(2) See Note (2) to the Financial Statements for an explanation of the
calculation of weighted average shares outstanding.
(3) Includes capital lease obligations.
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SIGNATURES
Pursuant to the Requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
SABRATEK CORPORATION
By: /s/ K. SHAN PADDA
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Chairman and Chief Executive Officer
April 9, 1999
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(Date)
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities indicated on April 9, 1999.
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<CAPTION>
SIGNATURE TITLE
--------- -----
<C> <S>
/s/ K. SHAN PADDA Chairman of the Board, Chief Executive
- --------------------------------------------- Officer and Director
K. Shan Padda
/s/ DORON C. LEVITAS Vice Chairman of the Board, Chief
- --------------------------------------------- Administrative Officer, Vice
Doron C. Levitas President -- International Operations,
Secretary and Director
/s/ STEPHEN L. HOLDEN President and Treasurer
- ---------------------------------------------
Stephen L. Holden
/s/ PAUL S. JUREWICZ Senior Vice President and Chief Financial
- --------------------------------------------- Officer
Paul S. Jurewicz
/s/ SCOTT SKOOGLUND Vice President -- Finance and Assistant
- --------------------------------------------- Secretary, Principal Accounting Officer
Scott Skooglund
/s/ WILLIAM D. LAUTMAN Director
- ---------------------------------------------
William D. Lautman
/s/ L. PETER SMITH Director
- ---------------------------------------------
L. Peter Smith
/s/ FRANCIS V. COOK, M.D. Director
- ---------------------------------------------
Francis V. Cook, M.D.
/s/ EDSON W. SPENCER, JR. Director
- ---------------------------------------------
Edson W. Spencer, Jr.
/s/ MARVIN SAMSON Director
- ---------------------------------------------
Marvin Samson
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<CAPTION>
SIGNATURE TITLE
--------- -----
<C> <S>
/s/ WILLIAM H. LOMICKA Director
- ---------------------------------------------
William H. Lomicka
/s/ MARK LAMPERT Director
- ---------------------------------------------
Mark Lampert
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