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Previous: RAYOVAC CORP, 8-K/A, 1999-10-26 |
Next: GO2NET INC, 424B3, 1999-10-26 |
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
(AMENDMENT NO. 2)
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
August 9, 1999
--------------------------------------------------
(Date of earliest event reported)
Rayovac Corporation
- --------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
<TABLE>
<S> <C> <C>
Wisconsin 001-13615 22-2423556
- -------------------------- ---------------------------- ------------------------
(State of (Commission File No.) (IRS Employer
Incorporation) Identification No.)
</TABLE>
601 Rayovac Drive, Madison, Wisconsin 53711
- --------------------------------------------------------------------------------
(Address of principal executive offices, including zip code)
(608) 275-3340
- -------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
Not Applicable
- --------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
Page 1 of 3
<PAGE>
This second amendment to the Company's Form 8-K amends and supplements
certain of the exhibits thereto.
Item 7. FINANCIAL STATEMENTS, PRO FORMA INFORMATION AND EXHIBITS
c) EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT NUMBER DESCRIPTION
<S> <C>
2.1* Share Purchase Agreement made as of June 11, 1999, by
and among the Company, Vidor Battery Company, Rayovac
Latin America, Ltd., substantially all the shareholders
of ROV Limited, ROV Limited, ESB ROV Ltd., Duranmas,
S.A., certain second-tier subsidiaries of ROV Limited,
Ray-O-Vac Overseas Corporation, and Alfredo J. Diez and
Richard T. Doyle, Jr., as selling group
representatives.
2.2* Form of Stock Purchase Agreement entered into on or
around June 11, 1999, by and among the Company, Rayovac
Latin America, Ltd. and certain persons who hold
minority interests in certain of the operating
subsidiaries of Ray-O-Vac Overseas Corporation.
4.11* Second Amended and Restated Credit Agreement, dated as
of August 9, 1999, by and among the Company, the lenders
party thereto and Bank of America, N.A. as
Administrative Agent.
4.12* Second Supplemental Indenture dated as August 6, 1999
by and among the Company, ROV Holding Inc., Rovcal,
Inc., Vidor Battery Company and HSBC Bank USA.
23.1 Written consent of PricewaterhouseCoopers LLP.
99.1* Consolidated Financial Statements of ROV Limited and
Subsidiaries (with report of independent certified
public accountants thereon).
99.2* Unaudited Condensed Consolidated Financial Statements
of ROV Limited and Subsidiaries.
99.3 Unaudited Pro Forma Condensed Consolidated Financial
Statements.
</TABLE>
* previously filed
Page 2 of 3
<PAGE>
SIGNATURE
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.
RAYOVAC CORPORATION
Date: October 26, 1999 By:
/S/ Randall J. Steward
------------------------
Name: Randall J. Steward
Title: Executive Vice President of
Administration and Chief Financial
Officer
Page 3 of 3
<PAGE>
Exhibit 23.1
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
We consent to the incorporation by reference in the registration statement of
Rayovac Corporation on Form S-8 (File No. 333-42443) of our report dated
March 31, 1999, except for notes 6 and 13, as to which the date is June 11,
1999, on our audit of the consolidated financial statements of ROV Limited as
of December 31, 1998, and for the year then ended, which report is included
in this Form 8-K/A.
PricewaterhouseCoopers LLP
Miami, Florida
October 25, 1999
<PAGE>
Exhibit 99.3
Unaudited Pro Forma Condensed Consolidated Financial Statements
The accompanying unaudited pro forma condensed consolidated balance sheet as of
July 4, 1999 reflects the combined financial position of Rayovac Corporation
(the "Company"), after giving effect to the acquisition of (1) the consumer
battery business of ROV Limited and Subsidiaries ("ROV Limited") and (2) the
license held by ROV Limited to use the "Rayovac" trade name and trademark
(collectively the "Acquisition"), as if the transaction had been consummated as
of July 4, 1999. The unaudited pro forma condensed consolidated statements of
operations reflect the Company's historical operating results for the nine
months ended July 4, 1999 and fiscal year ended September 30, 1998 with ROV
Limited's historical results for the nine months ended June 25, 1999 and fiscal
year ended December 31, 1998, respectively, and include pro forma adjustments as
if the transaction had been consummated at October 1, 1997. The unaudited pro
forma statements of operations for the nine months ended June 25, 1999, include
the three month period ended December 31, 1998, which also was included in the
fiscal year ended December 31, 1998. Summarized operating information about the
duplicate quarter is as follows:
<TABLE>
<CAPTION>
<S> <C>
Net Sales $29,652
Gross Profit 12,474
Total Operating Expenses 6,350
Income from Operations 6,124
Net Income 4,916
</TABLE>
Acquisition related expenditures, which the Company estimates will be
approximately $4.1 million on a pre-tax basis, were included in the unaudited
pro forma condensed consolidated balance sheet. The Company anticipates that
approximately $0.4 million of non-recurring acquisition related expense on a
pretax basis and an extraordinary item of approximately $3.8 million
(approximately $2.4 million net of tax) related to the write-off of unamortized
debt finance fees will be recognized within the twelve months succeeding the
transaction. These charges are not reflected in the unaudited pro forma
condensed consolidated statements of operations. The pro forma adjustments,
which are described in the accompanying notes, are based on available
information and certain assumptions that management of the Company believe are
reasonable.
The unaudited pro forma condensed consolidated financial statements are
presented for illustrative purposes only and are not necessarily indicative of
the operating results or financial position that would have been achieved if the
Acquisition had been consummated on the dates indicated, nor are they
necessarily indicative of the future operating results or financial position of
the combined company. The unaudited pro forma condensed consolidated financial
statements do not give effect to any cost savings or integration costs which may
result from the combination of the Company's and ROV Limited's operations.
These unaudited pro forma condensed consolidated financial statements are based
on, and should be read in conjunction with, the historical consolidated
financial statements and related notes thereto of the Company (previously filed)
and ROV Limited (included herein).
1
<PAGE>
RAYOVAC CORPORATION
Unaudited Pro Forma Condensed Consolidated Balance Sheet as of July 4, 1999
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
Historical
------------------------------------------
Rayovac ROV LTD
Corporation and Subsidiaries
As of As of
7/4/99 6/25/99
------ -------
-ASSETS-
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 1,384 $ 13,096
Receivables 90,391 14,561
Inventories 66,053 14,911
Prepaid expenses and other 20,046 1,172
------------------------------------------
Total current assets 177,874 43,740
Property, plant and equipment, net 79,202 16,059
Investments - 50
Goodwill 7,183 -
Tradename - -
Deferred charges and other 35,298 1,100
------------------------------------------
Total assets $ 299,557 $ 60,949
------------------------------------------
------------------------------------------
-LIABILITIES AND SHAREHOLDERS' EQUITY -
Current liabilities:
Current maturities of long-term debt $ 7,485 $ 6,294
Accounts payable 56,967 4,988
Accrued liabilities:
Wages and benefits and other 24,273 6,318
Recapitalization and other special charges 2,384 -
------------------------------------------
------------------------------------------
Total current liabilities 91,109 17,600
Long-term debt, net of current maturities 151,660 9
Employee benefit obligations, net of current portion 12,279 3,374
Minority Interest - 3,681
Other 3,975 508
------------------------------------------
Total liabilities 259,023 25,172
Shareholders' equity 40,534 35,777
------------------------------------------
Total liabilities and shareholders' equity $ 299,557 $ 60,949
------------------------------------------
------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
---------------------
Pro Forma Pro Forma
Eliminations (A) Adjustments(b) Consolidated)
---------------- -------------- -------------
<S> <C> <C> <C>
Current assets:
Cash and cash equivalents $ (9,234) $ - $ 5,246
Receivables (4,860) (39) 100,053
Inventories (7) (448) 80,509
Prepaid expenses and other (158) (2,804) 18,256
---------------------------------------------------------------
Total current assets (14,259) (3,291) 204,064
Property, plant and equipment, net (82) 12,732 107,911
Investments - - 50
Goodwill - 28,196 35,379
Tradename - 90,000 90,000
Deferred charges and other (150) - 36,248
---------------------------------------------------------------
Total assets $ (14,491) $ 127,637 $ 473,652
---------------------------------------------------------------
---------------------------------------------------------------
-LIABILITIES AND SHAREHOLDERS' EQUITY -
Current liabilities:
Current maturities of long-term debt $ - $ - $ 13,779
Accounts payable (2,610) - 59,345
Accrued liabilities:
Wages and benefits and other (956.0) 7,025 36,660
Recapitalization and other special charges - - 2,384
---------------------------------------------------------------
---------------------------------------------------------------
Total current liabilities (3,566) 7,025 112,168
Long-term debt, net of current maturities - 149,145 300,814
Employee benefit obligations, net of current portion - - 15,653
Minority Interest (3,681) -
Other - - 4,483
---------------------------------------------------------------
Total liabilities (7,247) 156,170 433,118
Shareholders' equity (7,244) (28,533) 40,534
---------------------------------------------------------------
Total liabilities and shareholders' equity $ (14,491) $ 127,637 $ 473,652
---------------------------------------------------------------
---------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THESE STATEMENTS.
2
<PAGE>
RAYOVAC CORPORATION
Unaudited Pro Forma Condensed Consolidated Statement of Operations
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
Historical
---------------------------------------
Rayovac ROV LTD
Corporation and Subsidiaries
9 Months 9 Months
Ended 7/4/99 Ended 6/25/99
------------------ --------------------
<S> <S> <C>
Net sales $ 391,951 $ 73,339
Cost of goods sold 203,883 42,504
-----------------------------------------
Gross profit 188,068 30,835
Selling 113,148 10,456
General and administrative 25,971 8,240
Research and development 6,408 -
Other special charges 2,220 -
-----------------------------------------
Total operating expenses 147,747 18,696
Income from operations 40,321 12,139
Other expense (income):
Interest expense 10,778 990
Other expense (income) (452) (1,177)
-----------------------------------------
10,326 (187)
Income before income taxes and extraordinary item 29,995 12,326
Income tax expense 10,789 2,732
-----------------------------------------
Income before extraordinary item 19,206 9,594
Extraordinary item - -
-----------------------------------------
Net Income $ 19,206 $ 9,594
-----------------------------------------
-----------------------------------------
BASIC EARNINGS PER SHARE
Average shares outstanding 27,485
Income before extraordinary item $ 0.70
Extraordinary item
-------------------
-------------------
Net income $ 0.70
-------------------
-------------------
DILUTED EARNINGS PER SHARE
Average shares outstanding and common stock equivalents 29,262
Income before extraordinary item $ 0.66
Extraordinary item
-------------------
-------------------
Net income $ 0.66
-------------------
-------------------
</TABLE>
<TABLE>
<CAPTION>
Pro Forma Pro Forma
Adjustments Consolidated
--------------- -------------------
<S> <C> <C>
Net sales $ (2,761) (A) $ 462,529
Cost of goods sold (2,178) (A) 244,209
---------------- -------------------
Gross profit (583) 218,320
Selling - 123,604
General and administrative 1,338 (A)(C) 35,549
Research and development - 6,408
Other special charges - 2,220
---------------- -------------------
Total operating expenses 1,338 167,781
Income from operations (1,921) 50,539
Other expense (income):
Interest expense 8,949 (D) 20,717
Other expense (income) - (1,629)
---------------- -------------------
8,949 19,088
Income before income taxes and extraordinary item (10,870) 31,451
Income tax expense (2,833) (E) 10,688
---------------- -------------------
Income before extraordinary item (8,036) 20,764
Extraordinary item - -
---------------- -------------------
Net Income $ (8,036) $ 20,764
---------------- -------------------
---------------- -------------------
BASIC EARNINGS PER SHARE
Average shares outstanding 27,485
Income before extraordinary item $ 0.76
Extraordinary item
-------------------
-------------------
Net income $ 0.76
-------------------
-------------------
DILUTED EARNINGS PER SHARE
Average shares outstanding and common stock equivalents 29,262
Income before extraordinary item $ 0.71
Extraordinary item
-------------------
-------------------
Net income $ 0.71
-------------------
-------------------
</TABLE>
3[caad 234]I
<PAGE>
RAYOVAC CORPORATION
Unaudited Pro Forma Condensed Consolidated Statement of Operations
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
Historical
----------------------------------------
Rayovac ROV LTD
Corporation and Subsidiaries
12 Months 12 Months Pro Forma
Ended 9/30/98 Ended 12/31/98 Adjustments
------------------ -------------------- ---------------
<S> <C> <C> <C>
Net sales $ 495,733 $ 97,057 $ (5,456)
Cost of goods sold 258,027 58,515 (3,819)
-----------------------------------------------------------
Gross profit 237,706 38,542 (1,637)
Selling 148,875 13,689 -
General and administrative 35,877 10,432 2,940
Research and development 6,226 - -
Other special charges 6,183 - -
-----------------------------------------------------------
Total operating expenses 197,161 24,121 2,940
Income from operations 40,545 14,421 (4,577)
Other expense (income):
Interest expense 15,670 1,213 11,931
Other expense (income) (155) 995 -
-----------------------------------------------------------
15,515 2,208 11,931
Income before income taxes and extraordinary item 25,030 12,213 (16,508)
Income tax expense 8,660 3,131 (4,390)
-----------------------------------------------------------
Income before extraordinary item 16,370 9,082 (12,119)
Extraordinary item (1,975) - -
-----------------------------------------------------------
Net Income $ 14,395 $ 9,082 $ (12,119)
-----------------------------------------------------------
-----------------------------------------------------------
BASIC EARNINGS PER SHARE
Average shares outstanding 26,477
Income before extraordinary item $ 0.62
Extraordinary item (0.08)
-------------------
-------------------
Net income $ 0.54
-------------------
-------------------
DILUTED EARNINGS PER SHARE
Average shares outstanding and common stock equivalents 28,091
Income before extraordinary item $ 0.58
Extraordinary item (0.07)
-------------------
-------------------
Net income $ 0.51
-------------------
-------------------
</TABLE>
<TABLE>
<CAPTION>
Pro Forma
Consolidated
-------------------
<S> <C>
Net sales (A) $ 587,334
Cost of goods sold (A) 312,723
-------------------
Gross profit 274,611
Selling 162,564
General and administrative (C) 49,249
Research and development 6,226
Other special charges 6,183
-------------------
Total operating expenses 224,222
Income from operations 50,389
Other expense (income):
Interest expense (D) 28,814
Other expense (income) 840
-------------------
29,654
Income before income taxes and extraordinary item 20,735
Income tax expense (E) 7,401
-------------------
Income before extraordinary item 13,333
Extraordinary item (1,975)
-------------------
Net Income $ 11,358
-------------------
-------------------
BASIC EARNINGS PER SHARE
Average shares outstanding 26,477
Income before extraordinary item $ 0.50
Extraordinary item (0.08)
-------------------
-------------------
Net income $ 0.42
-------------------
-------------------
DILUTED EARNINGS PER SHARE
Average shares outstanding and common stock equivalents 28,091
Income before extraordinary item $ 0.47
Extraordinary item (0.07)
-------------------
-------------------
Net income $ 0.40
-------------------
-------------------
</TABLE>
4
<PAGE>
Notes to unaudited pro forma condensed consolidated financial statements.
(A) To reflect elimination of (1) sales and cost of goods sold for
shipments from the Company to ROV Limited, (2) receivables and payables
between the Company and ROV Limited, (3) removal of assets and
liabilities of ROV Limited subsidiaries not purchased by Rayovac and
(4) removal of expenses booked by ROV Limited in the period October
through December 1998 that relate to prior periods.
(B) To reflect the excess of acquisition cost over the estimated fair value
of net assets acquired (goodwill). The purchase price, purchase-price
allocation, and financing of the transaction are summarized as follows:
Acquisition Price:
<TABLE>
<CAPTION>
<S> <C>
Purchased price paid through additional borrowings $149,145
Other 2,804
--------------------
$151,949
Allocated to:
Historical book value of acquired assets and liabilities $28,533
Adjustments to reflect assets and liabilities at fair value
Receivables (39)
Inventory (448)
Property, plant, & equip. (primarily land) 12,732
Trade name 90,000
Liabilities and restructuring accruals to eliminate excess
capacities at the acquired entity (7,025)
--------------------
Total allocation $123,753
--------------------
Excess purchase price over allocation to identifiable assets and
liabilities (goodwill) at July 4, 1999 $28,196
Adjustment for operations through acquisition date (610)
--------------------
Goodwill at acquisition date $27,586
The consideration to be paid for the acquisition is subject to adjustments
based on changes in the net book value of assets acquired. In addition
certain valuations and related income tax effects are preliminary and
subject to change.
</TABLE>
(C) To reflect the amortization of goodwill and trade name on a straight
line basis over 40 years. The principal factors considered in
determining the use of a 40 year amortization period include; (1) the
Rayovac trade name has been in existence for approximately 80 years and
is considered viable indefinitely and (2) the existing and projected
cash flows are adequate to support the carrying value of the intangible
assets to be recorded.
(D) To reflect the increase in interest expense resulting from the amended
senior credit facilities to finance the purchase price. The interest
rate on the amended senior credit facilities is assumed to be 7.43
percent. A change of 1/8 percent in the interest rate would result in a
change in annual interest expense and net income of $293 and $187
before and after taxes, respectively.
5
<PAGE>
(E) To reflect the income tax effect of (1) increased interest and
amortization of a portion of the trade name and (2) the margin
eliminated on sales between the Company and Rayovac Limited assuming a
tax rate of 36 percent. The remaining portion of the trade name and all
the goodwill is in a non taxed entity.
6
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