<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A-2
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 29, 1998
SERACARE, INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-21781 95-4343492
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(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification
incorporation) Number)
1925 Century Park East, Suite 1970, Los Angeles, California 90067
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (310) 772-7777
Not Applicable
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(Former name or former address, if changed since last report)
Total sequentially numbered pages in this document: __.
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(b) Pro forma financial information
1. Unaudited Pro forma Consolidated Statement of Operations of
the Company for the six months ended August 31, 1998.
3. Unaudited Pro forma Consolidated Statement of
Operations of the Company for the twelve months ended
February 28, 1998.
2
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SERACARE, INC.
Date: March 10, 1999 By: /S/ Barry D. Plost
------------------- --------------------------------------------
Barry D. Plost
Chairman of the Board, President
and Chief Executive Officer
By: /S/ Jerry L. Burdick
--------------------------------------------
Jerry L. Burdick
Executive Vice President and
Chief Financial Officer
3
<PAGE>
Item 7. (b) Pro forma financial information
The following unaudited pro forma condensed Consolidated Statement of Operations
for the six months ended August 31, 1998 is based on the unaudited historical
Consolidated Financial Statements of the Company included in the Company's
Quarterly Report on Form 10QSB and has been adjusted to give effect to the
acquisition of American Plasma, Inc. using the purchase method of accounting and
the assumptions and adjustments in the accompanying notes to the Pro Forma
Statements. The unaudited pro forma Statement of Operations for the twelve
months ended February 28, 1998 is based on the audited historical Consolidated
Financial Statements of the Company included in the Company's Annual Report on
Form 10KSB and has been adjusted to give effect to the acquisitions of: American
Plasma, Inc.; Western States Group, Inc.; The operating assets of Consolidated
Technologies, Inc.; and the five plasma collection centers acquired from
American Plasma Managemenrt, Inc. et al, using the purchase method of accounting
and the assumptions and adjustments in the accompanying notes to the Pro Forma
Statements. The Historical Unaudited Balance Sheet of the Company as of August
31, 1998 included in the Company's Quarterly Report on Form 10QSB gives effect
to the acquisition of American Plasma, Inc. The pro forma condensed consolidated
statements of operation give effect to the indicated transactions as if they
occurred on the first day of each such period.
The pro forma adjustments are based upon available information and certain
assumptions that the Company believes are reasonable. The pro forma statements
of operation do not purport to represent what the Company's financial results of
operations would actually have been had the transaction in fact occurred on such
dates or to project the Company's financial position or results of operations
for any future period.
The Pro Forma Statements and the Notes thereto should be read in conjunction
with the historical Consolidated Financial Statements of the Company and Notes
thereto included in the Company's Annual Report on Form 10KSB for the year ended
February 28, 1998 which is hereby incorporated by this reference and the
historical Consolidated Financial Statements of American Plasma, Inc. and Notes
thereto for the years ended December 31, 1997 and 1996 included in the initial
filing of this Form 8-K.
4
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SERACARE, INC.
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED AUGUST 31, 1998
(In whole dollars, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
American Pro forma
SeraCare, Inc. Plasma, Inc. Adjustments Proforma
Historical (2) Historical (3) (1) Consolidated
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Net sales $ 18,873,000 $ 4,020,879 $ (2,000) $ 22,891,879
Cost of Sales 14,655,794 3,785,029 42,268 18,483,091
------------- ------------- ------------- -------------
Gross profit 4,217,206 235,850 (44,268) 4,408,788
General and administrative expenses 1,728,397 348,804 (213,794) 1,863,407
------------- ------------- ------------- -------------
Net income (loss) from operations 2,488,809 (112,954) 169,526 2,545,381
Interest income (expense) - net (2,046,763) (18,430) (236,570) (2,301,763)
Other income (expense) - net 451,436 (2,599) 2,599 451,436
------------- ------------- ------------- -------------
Income before taxes $ 893,482 (133,983) (64,445) 695,054
Taxes on Income 52,273 (52,273) -
------------- ------------- ------------- -------------
Net income (loss) $ 893,482 $ (81,710) $ (116,718) $ 695,054
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
Earnings (loss) per common share
Basic $ 0.096
-------------
-------------
Diluted $ 0.059
-------------
-------------
Weighted Average Common Shares
Basic 7,243,918
-------------
-------------
Diluted 11,777,067
-------------
-------------
</TABLE>
<PAGE>
SERACARE, INC.
NOTES TO PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED AUGUST 31, 1998
(Unaudited)
1. Proforma adjustments for the six months ended August 31, 1998 consist of
the following:
<TABLE>
<CAPTION>
SALES
<S> <C>
Eliminate income not related to operation acquired (2,000)
----------
DIRECT COSTS
Add amortization of donor base & FDA licenses acquired 34,580
Add depreciation of fair market value of property
and equipment acquired 55,000
Eliminate depreciation of old basis in property and equipment 47,312
----------
42,268
----------
GENERAL AND ADMINISTRATIVE EXPENSES
Add amortization of goodwill from acquitision 66,052
Eliminate amortization of old basis in goodwill (43,490)
Eliminate administrative overhead not acquired (236,358)
----------
(213,794)
----------
INTEREST INCOME (EXPENSE) - NET
Add interest expense on cash borrowed and used in acquisitions:
American Plasma, Inc. (255,000)
Eliminate interest expense on obligations not acquired 18,430
----------
(236,570)
----------
OTHER INCOME (EXPENSE) - NET
Eliminate other expense not related to operation
acquired 2,599
----------
TAXES ON INCOME
Historical taxes on income have been eliminated
in favor of an overall calculation which reflects
available loss carryforwards (52,273)
----------
</TABLE>
2. SeraCare, Inc. Historical includes two months of activity for American
Plasma, Inc.
3. American Plasma, Inc. Historical reflects four months of activity, from
March 1, 1998 to June 30, 1998
<PAGE>
SERACARE, INC.
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED FEBRUARY 28, 1998
(In whole dollars, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
American
Consolidated Plasma
American Western States Technologies, Management, Pro forma
SeraCare, Inc. Plasma, Inc. Group, Inc. Inc. Historical Inc.Historical Adjustments Proforma
Historical (2) Historical (3) Historical (4) (4) (5) (1) Consolidated
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net sales 12,410,970 17,263,349 7,885,895 3,356,257 4,501,503 (126,000) 45,291,974
Cost of sales 10,774,398 15,535,267 5,938,863 2,315,687 3,622,152 (67,313) 38,119,054
--------------- ------------ --------------- ------------ ------------- ------------ --------------
Gross profit 1,636,572 1,728,082 1,947,032 1,040,570 879,351 (58,687) 7,172,920
General and
administrative expenses 1,479,296 1,054,297 1,626,575 827,557 1,175,453 (2,576,060) 3,587,118
--------------- ------------ --------------- ------------ ------------- --------------- --------------
Net income (loss) from
operations 157,276 673,785 320,457 213,013 (296,102) 2,517,373 3,585,802
Interest income
(expense) - net (533,105) (76,218) 14,060 (171,296) (92,973) (1,913,349) (2,772,881)
Other income
(expense) - net 854,682 (33,211) 44,857 41,483 64,560 (31,349) 941,022
--------------- ------------ --------------- ------------ ------------- --------------- --------------
Income before taxes 478,853 564,356 379,374 83,200 (324,515) 572,675 1,753,943
Taxes on income - - - - - - -
--------------- ------------ --------------- ------------ ------------- --------------- --------------
Net income (loss) 478,853 564,356 379,374 83,200 (324,515) 572,675 1,753,943
--------------- ------------ --------------- ------------ ------------- --------------- --------------
--------------- ------------ --------------- ------------ ------------- --------------- --------------
Earnings (loss)
per common share
Basic 0.326
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--------------
Diluted 0.206
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--------------
Weighted Average
Common Shares
Basic 5,379,677
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--------------
Diluted 8,499,627
--------------
--------------
</TABLE>
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SERACARE, INC.
NOTES TO PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED FEBRUARY 28, 1998
(Unaudited)
1. PROFORMA ADJUSTMENTS FOR THE SIX MONTHS ENDED AUGUST 31, 1998 CONSIST OF THE
FOLLOWING:
<TABLE>
<CAPTION>
SALES
<S> <C>
AMERICAN PLASMA MANAGEMENT INC.
Eliminate income not related to operation acquired (126,000)
---------------
DIRECT COSTS
WESTERN STATES GROUP, INC.
Add amortization of goodwill from acquisition 90,870 CONSOLIDATED
TECHNOLOGIES, INC.
Eliminate Cone Bio Products & Cenetro Consulting Fees
relating to operations not acquired (2,611)
Eliminate expense of Seguin Lab not acquired (175,539)
Add amortization of goodwill from acquisition 231,400
Change in manufacturing processing from outside vendor
to Consolidated Technologies, Inc. (248,388)
AMERICAN PLASMA MANAGEMENT, INC.
Add amortization of donor base & FDA licenses acquired 35,625
AMERICAN PLASMA, INC.
Add amortization of donor base & FDA licenses acquired 103,740 Add
depreciation of fair market value of property
and equipment acquired 165,000
Eliminate depreciation of old basis in property and
equipment (267,410)
---------------
(67,313)
---------------
</TABLE>
<PAGE>
SERACARE, INC.
NOTES TO PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED FEBRUARY 28, 1998
(Unaudited)
<TABLE>
<CAPTION>
GENERAL AND ADMINISTRATIVE EXPENSES
<S> <C>
WESTERN STATES GROUP, INC.
Eliminate non-business donations (6,222)
Eliminate non-business professional fees (36,572)
Elimination of pension plan expense - plan desolved (56,153)
Elimination of expenses of condo not acquired (10,294)
Reduce executive salaries and bonuses as per agreement (626,392)
CONSOLIDATED TECHNOLOGIES, INC.
Adjust executive salaries as per agreement 15,890
Elimination of sales department (76,161)
Eliminate administrative salaries and expenses not
acquired, including family members (455,161)
AMERICAN PLASMA MANAGEMENT, INC.
Eliminate administrative overhead not acquired (673,635)
AMERICAN PLASMA, INC.
Add amortization of goodwill from acquisition 198,156
Eliminate amortization of old basis in goodwill (130,470)
Eliminate administrative overhead not acquired (719,046)
---------------
(2,576,060)
---------------
INTEREST INCOME (EXPENSE) - NET
Eliminate interest income - WS (12,027)
Eliminate interest expense on obligations not acquired:
CTI 187,642
American Plasma Mangement, Inc. 56,973
American Plasma, Inc. 76,218
Amortization of deferred debenture discount allocable
to acquisition of WS and CTI (493,210)
Add interest expense on cash borrowed and used in acquisitions:
WS and CTI (963,320)
American Plasma, Inc. (765,625)
---------------
(1,913,349)
---------------
</TABLE>
<PAGE>
NOTES TO PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED FEBRUARY 28, 1998
(Unaudited)
<TABLE>
<CAPTION>
OTHER INCOME (EXPENSE) - NET
<S> <C>
Eliminate other (income) expense not related to operation
acquired
American Plasma Management, Inc. (64,560)
American Plasma, Inc. 33,211
---------------
(31,349)
---------------
</TABLE>
TAXES ON INCOME
Historical taxes on income have been eliminated in favor of an overall
calculation which reflects available loss carryforwards
2. INCLUDED IN SERACARE, INC. HISTORICAL ARE TWO MONTHS OF ACTIVITY FOR
WESTERN STATES GROUP, INC. AND CONSOLIDATED TECHNOLOGIES, INC. AND THREE
MONTHS OF ACTIVITY FOR AMERICAN PLASMA MANAGEMENT, INC.
3. AMERICAN PLASMA, INC. HISTORICAL REFLECTS TWELVE MONTHS OF ACTIVITY, FROM
MARCH 1, 1997 TO FEBRUARY 28, 1998.
4. WESTERN STATES GROUP, INC. HISTORICAL AND CONSOLIDATED TECHNOLOGIES, INC.
HISTORICAL REFLECTS TEN MONTHS OF ACTIVITY, FROM MARCH 1, 1997 TO DECEMBER
31, 1997.
5. AMERICAN PLASMA MANAGEMENT, INC. HISTORICAL REFLECTS NINE MONTHS OF
ACTIVITY, FROM MARCH 1, 1997 TO NOVEMBER 30, 1997.
