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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
OCTOBER 6, 1997
DNAP HOLDING CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware 0-12177 75-2632242
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
6701 San Pablo Avenue, Oakland, California 94608
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(510) 547-2395
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The Registrant's current report on Form 8-K filed on October 21, 1997 to report
the acquisition by the Registrant on October 6, 1997 of the minority interests
owned by members of the Batiz family (the "Batiz family") in International
Produce Holding Company, a Delaware corporation ("IPHC") and Agricola Batiz,
S.A. de C.V., a corporation organized under the laws of the United Mexican
States ("ABSA"), is amended to provide pro forma financial information as
required by item 7(b) of the report. There are no other changes to the report
as filed.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS.
(b) PRO FORMA FINANCIAL INFORMATION
Unaudited pro forma condensed financial information of DNAP Holding
Corporation and its subsidiaries filed as part of this report:
Unaudited pro forma condensed balance sheet as of September 30,
1997.
Unaudited pro forma condensed statement of operations for the
year ended December 31, 1996.
Unaudited pro forma condensed statement of operations for the
nine months ended September 30, 1997.
Notes to unaudited pro forma condensed financial statements.
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UNAUDITED PRO FORMA CONDENSED FINANCIAL INFORMATION
Set forth below are certain unaudited pro forma condensed financial
statements of DNAP Holding Corporation presenting the pro forma effects of the
acquisition of the minority interests in IPHC and ABSA, assuming that such
transaction occurred as of September 30, 1997 for the condensed balance sheet
and as of January 1, 1996 for the condensed statements of operations. The pro
forma condensed financial statements are based on historical financial
statements of DNAP Holding Corporation, giving effect to the acquisition
applying the purchase method of accounting and the assumptions and adjustments
as discussed in the accompanying notes to the pro forma condensed financial
statements. The unaudited condensed pro forma financial statements should be
read in conjunction with the company's historical financial statements and notes
thereto. The pro forma condensed financial statements are not necessarily
indicative of what actual results of operations would have been for the
periods had the transaction occurred on the dates indicated, nor are they
necessarily indicative of future operating results or financial position.
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DNAP HOLDING CORPORATION
PRO FORMA CONDENSED BALANCE SHEET (UNAUDITED)
Thousands of U.S. Dollars
AS OF SEPTEMBER 30, 1997
---------------------------------------
DNAP Pro forma Pro forma
Holding Corp. Adjustments Results
------------- ----------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 5,349 $ 2,122 (2) $ 7,471
Accounts receivable 16,729 (296)(2) 16,433
Notes receivable from related parties 2,719 (1,826)(2) 893
Advances to growers 6,684 6,684
Inventories 15,482 15,482
Other current assets 943 943
-------- ------- --------
Total current assets 47,906 -- 47,906
-------- ------- --------
Property, plant and equipment, net 35,002 35,002
Patents and trademarks, net 13,566 13,566
Goodwill, net 18,613 12,094 (1) 30,707
Deferred income taxes 2,851 2,851
Advances to related parties towards
Purchase of shares 5,000 (5,000)(1) --
Other assets 1,634 1,634
-------- ------- --------
Total assets $124,572 $ 7,094 $131,666
-------- ------- --------
-------- ------- --------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term bank loans $ 44,953 $ 44,953
Short-term notes payable to the former
owners of ABSA and IPHC -- $ 2,248 (1) 2,248
Current portion of long-term debt 440 440
Accounts payable and accrued expenses 19,657 19,657
Accounts due to related parties 12,493 2,561 (1) 15,054
Deferred income taxes 3,404 3,404
-------- ------- --------
Total current liabilities 80,947 4,809 85,756
Long-term debt 2,489 2,489
Long-term notes payable to the former
owners of ABSA and IPHC -- 4,972 (1) 4,972
-------- ------- --------
Total liabilities 83,436 9,781 93,217
-------- ------- --------
Minority interest 6,024 (2,687)(1) 3,337
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Stockholders' equity:
Preferred stock, $.01 par value, 5,000
shares authorized, no shares issued
and outstanding -- --
Common stock, $.01 par value, 25,000,000
shares authorized, 18,370,640 shares
issued and outstanding 184 184
Additional paid-in capital 78,720 78,720
Accumulated deficit (43,665) (43,665)
Cumulative translation adjustment (127) (127)
-------- ------- --------
Total stockholders' equity 35,112 35,112
-------- ------- --------
Total liabilities and stockholders'
equity $124,572 $ 7,094 $131,666
-------- ------- --------
-------- ------- --------
See accompanying notes to pro forma condensed financial statements.
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DNAP HOLDING CORPORATION
PRO FORMA CONDENSED STATEMENT OF OPERATIONS (UNAUDITED)
Thousands of U.S. Dollars
(except per share amounts)
<TABLE>
YEAR ENDED DECEMBER 31, 1996
---------------------------------------
DNAP Pro forma Pro forma
Holding Corp. Adjustments Results
------------- ----------- ---------
<S> <C> <C> <C>
Total revenues $ 192,985 $ 192,985
--------- --------- ---------
Cost of sales (176,353) (176,353)
Selling and administrative expenses (16,195) (16,195)
Research and development expenses (1,244) (1,244)
Purchased research and development (12,900) (12,900)
Amortization of goodwill, patents and trademarks (1,008) (605)(3) (1,613)
--------- --------- ---------
(207,700) (605) (208,305)
--------- --------- ---------
Operating income (loss) (14,715) (605) (15,320)
--------- --------- ---------
Interest expense (5,651) (1,482)(4) (7,133)
Interest income 2,169 2,169
Exchange gain (loss), net 569 569
Other non-operating income (expense) 2,058 2,058
--------- --------- ---------
(855) (1,482) (2,337)
--------- --------- ---------
Income (loss) before income tax (15,570) (2,087) (17,657)
Income tax benefit (expense) (2,738) (2,738)
--------- --------- ---------
Net income (loss) before minority interest (18,308) (2,087) (20,395)
Minority interest in net loss (income) of subsidiaries 1,274 (1,209)(5) 65
--------- --------- ---------
Net income (loss) $ (17,034) $ (3,296) $ (20,330)
--------- --------- ---------
--------- --------- ---------
Net income (loss) per Share $ ( 1.19) $ (1.42)
--------- ---------
--------- ---------
Weighted average shares outstanding 14,286 14,286
</TABLE>
See accompanying notes to pro forma condensed financial statements.
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DNAP HOLDING CORPORATION
PRO FORMA CONDENSED STATEMENT OF OPERATIONS (UNAUDITED)
Thousands of U.S. Dollars
(except per share amounts)
<TABLE>
NINE MONTHS ENDED SEPTEMBER 30, 1997
---------------------------------------
DNAP Pro forma Pro forma
Holding Corp. Adjustments Results
------------- ----------- ---------
<S> <C> <C> <C>
Total revenues $ 204,288 $ 204,288
--------- ---------- ---------
Cost of sales (191,701) (191,701)
Selling and administrative expenses (17,980) (17,980)
Research and development expenses (3,697) (3,697)
Purchased research and development (2,813) (2,813)
Amortization of goodwill, patents and trademarks (1,850) (454)(3) (2,304)
--------- ---------- ---------
(218,041) (454) (218,495)
--------- ---------- ---------
Operating income (loss) (13,753) (454) (14,207)
--------- ---------- ---------
Interest expense (3,850) (1,144)(4) (4,994)
Interest income 769 769
Exchange gain (loss), net 373 373
Other non-operating income (expense) 647 647
--------- ---------- ---------
(2,061) (1,144) (3,205)
--------- ---------- ---------
Income (loss) before income tax (15,814) (1,598) (17,412)
Income tax benefit (expense) (984) (984)
--------- ---------- ---------
Net income (loss) before minority interest (16,798) (1,598) (18,396)
Minority interest in net loss (income) of subsidiaries 3,061 (2,616)(5) 445
--------- ---------- ---------
Net income (loss) $ (13,737) $ (4,214) $ (17,951)
--------- ---------- ---------
--------- ---------- ---------
Net income (loss) per Share $ (0.75) $ (0.98)
--------- ---------
--------- ---------
Weighted average shares outstanding 18,371 18,371
</TABLE>
See accompanying notes to pro forma condensed financial statements.
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NOTES TO PRO FORMA CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
NOTE (1)
Adjustment to record the acquisition of the minority interest of ABSA and IPHC.
Consideration paid comprises $14.8 million. Debt obtained from: ELM $7.6
million; Debt to the Batiz family: $2.2 million as short-term and $ 5.0 million
as a long-term.
NOTE (2)
Adjustment to record the collection of receivables from related parties
(Batiz family) of $2.1 million at the closing.
NOTE (3)
Adjustment to record amortization of the goodwill acquired from the purchase of
the minority interest of ABSA $6.0 million and IPHC $6.1 million on a twenty-
year amortization period.
NOTE (4)
Adjustment to record interest expense related to the short and long term debt
to ELM and the Batiz family.
NOTE (5)
Adjustment to reflect the effect of the new stockholders' equity on the net
income of the corporation.
NOTE (6)
As the Company further evaluates the purchase price allocation related to the
acquisition of the Batiz family minority interests in ABSA and IPHC,
adjustments may be made to the purchase price allocation as reflected in the
pro forma condensed financial statements.
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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.
Date: November 26, 1997 DNAP HOLDING CORPORATION
By: /s/ ARTHUR H. FINNEL
----------------------------------
Arthur H. Finnel,
Executive Vice President
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