<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
AMENDMENT NO.3 TO CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: November 20, 1998
NEENAH FOUNDRY COMPANY
(Exact name of registrant as it appears in its charter)
Wisconsin 333-28751 39-1580331
(State or other jurisdiction of (Commission File Number) (IRS Employer
incorporation or organization) ID Number)
2121 Brooks Avenue, P.O. Box 729, Neenah, Wisconsin 54957
(Address of principal executive offices) (Zip Code)
(920) 725-7000
(Registrant's telephone number, including area code)
None
(Former name or former address
if changed since last report)
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Neenah Foundry Company (the "Company") hereby amends Item 7 of the Company's
Form 8-K/A dated November 19, 1998 reporting the Company's acquisition of all of
the issued and outstanding stock of Dalton Corporation ("Dalton") to adjust the
pro forma financial statements. The amended items are as follows:
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(b) Pro Forma Financial Information
- Pro Forma Consolidated Balance Sheet as of June 30, 1998 and
related notes
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NEENAH FOUNDRY COMPANY
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
June 30, 1998
(In thousands)
<TABLE>
<CAPTION>
Historical
------------------------------------
Neenah Pro Forma
Foundry Dalton ACP Adjustments Pro Forma
--------- -------- --------- ------------- ---------
<S> <C> <C> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents ...................... $ 9,741 $ 226 $ -- $ 81 (a) $ 10,048
Accounts receivable, net ....................... 38,333 22,526 7,747 -- 68,606
Inventories .................................... 26,686 12,634 2,496 1,268 (b) 43,084
Other current assets ........................... 2,936 1,728 281 -- 4,945
Prepaid income taxes ........................... 1,155 -- 438 -- 1,593
Deferred income taxes .......................... 1,710 -- -- 2,425 (b) 4,135
--------- --------- --------- --------- ---------
Total current assets ................. 80,561 37,114 10,962 3,774 132,411
Property, plant and equipment .................... 138,116 74,850 17,783 (38,623)(b) 192,126
Less accumulated depreciation .................... 9,820 41,403 4,533 (41,403)(b) 14,353
--------- --------- --------- --------- ---------
128,296 33,447 13,250 2,780 177,773
Identifiable intangible assets, net .............. 41,951 -- -- 27,919 (b) 69,870
Goodwill, net .................................... 147,487 -- 6,254 30,185 (b) 183,926
Other assets ..................................... 3,756 3,450 784 3,534 (a)
(315)(b)
1,697 (c)
(652)(d) 12,254
--------- --------- --------- --------- ---------
$ 402,051 $ 74,011 $ 31,250 $ 68,922 $ 576,234
========= ========= ========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable ............................... $ 14,558 $ 10,308 $ 3,853 -- $ 28,719
Income taxes payable ........................... -- 78 -- -- 78
Accrued liabilities ............................ 15,601 9,559 2,856 (237)(b) 27,779
Current portion of long-term debt .............. 827 36,264 1,746 (37,844)(a)
2,250 (a) 3,243
--------- --------- --------- --------- ---------
Total current liabilities ............ 30,986 56,209 8,455 (35,831) 59,819
Long-term debt ................................... 251,715 -- 19,083 (12,248)(a)
116,750 (a)
(6,746)(e) 368,554
Postretirement benefit obligations ............... 5,137 -- -- -- 5,137
Deferred income taxes ............................ 54,592 -- 2,405 12,868 (b)
(260)(d) 69,605
Other liabilities ................................ 2,151 2,945 -- 2,892 (b) 7,988
--------- --------- --------- --------- ---------
Total liabilities .................... 344,581 59,154 29,943 77,425 511,103
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Preferred stock, par value $100 per share --
authorized 3,000 shares, no shares
issued or outstanding ................... -- -- -- -- --
Common stock, par value $100 per share --
authorized 11,000 shares, issued
and outstanding 1,000 shares ............ 100 350 4,254 (350)(b)
(4,254)(e) 100
Additional paid in capital ..................... 48,750 11,385 (4,481) (11,385)(b)
4,254 (e)
6,746 (e) 55,269
Retained earnings .............................. 8,620 41,815 1,534 (41,815)(b)
(392)(d) 9,762
Treasury stock ................................. -- (38,446) -- 38,446 (b) --
Minimum pension liability adjustment, net of tax -- (247) -- 247 (b) --
--------- --------- --------- --------- ---------
Total stockholders' equity ........... 57,470 14,857 1,307 (8,503) 65,131
--------- --------- --------- --------- ---------
$ 402,051 $ 74,011 $ 31,250 $ 68,922 $ 576,234
========= ========= ========= ========= =========
</TABLE>
See accompanying Notes to Unaudited Pro Forma Consolidated Balance Sheet.
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NEENAH FOUNDRY COMPANY
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
(Dollars in thousands)
<TABLE>
<S> <C> <C>
(a) Adjustment to reflect the net effect on cash of the Dalton and ACP
Acquisitions, as follows:
Proceeds from Tranche A Term Loan $ 20,000
Proceeds from Tranche B Term Loan 70,000
Proceeds from Multi-Draw Acquisition Revolver 29,000
Less deferred financing cost (1,697)
---------
117,303
Purchase price:
Acquisition of Dalton common stock $ (62,995)
Fees and expenses incurred in connection with
the Dalton Acquisition (601)
Satisfaction of Dalton outstanding indebtedness (including
$2,749 borrowed subsequent to June 30, 1998) (39,013)
Satisfaction of ACP outstanding indebtedness (including
$785 borrowed subsequent to June 30, 1998) (14,613)
---------
(117,222)
---------
$ 81
=========
(b) Adjustment to reflect the allocation of the $63,596 purchase cost
of Dalton:
Net assets acquired at historical cost $ 14,857
Fair value adjustments(1):
Eliminate LIFO reserve 973
Inventory step-up 295
Write-up property, plant, and equipment(2) 2,780
Record intangible assets(3) 27,919
Adjustment to accrued ESOP contribution 1,006
Adjustment to pension liability (1,092)
Deferred compensation (2,935)
Other 51
Record deferred income taxes associated with the
valuation of Dalton assets and liabilities (10,443)
Cost in excess of net assets acquired- goodwill(4) 30,185
---------
$ 63,596
=========
</TABLE>
- ---------------------
(1) For all other recorded assets and liabilities of Dalton, the historical book
values were estimated to approximate their fair values at the balance sheet
date.
(2) The fair value of property, plant and equipment was based on an outside
appraisal completed in connection with the acquisition. The write-up has
been allocated to the fixed asset categories as shown below. The remaining
economic useful lives used in depreciating the new basis of the depreciable
fixed assets are also indicated:
<TABLE>
<CAPTION>
Remaining Economic
Allocated excess Useful Life
---------------- ------------------
<S> <C> <C>
Land $ 183 n/a
Buildings and improvements (781) 10 to 35 years
Machinery and equipment 3,378 5 to 15 years
</TABLE>
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(3) The fair value of intangible assets was based on an outside valuation
completed in connection with the Dalton Acquisition For purposes of the
proforma financial information, the valuation of the intangible assets and
amortization periods are shown below:
<TABLE>
<CAPTION>
Amortization
Fair Value Period
---------- ------------
<S> <C> <C>
Assembled workforce $ 5,522 5 years
Customer list 12,341 10 years
Backlog 1,239 4 months
Trade name 5,053 40 years
Facilities in place 3,764 40 years
</TABLE>
(4) An amortization period of 40 years will be used for goodwill because the
period expected to be benefited exceeds 40 years.
- ---------------------
(c) Adjustment to record the transaction costs of $1,697 (made up of financing
costs). For purposes of the proforma consolidated balance sheet, the amount
is shown as part of other assets and amortized over 5 years, the life of the
Term Loan.
(d) Adjustment to write off deferred financing costs related to outstanding
indebtedness of ACP which was satisfied in connection with the ACP
Acquisition.
(e) Adjustment to account for the contribution of the capital stock of
ACP and the contribution of the subordinated debt of ACP to capital.
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this amendment to be signed on its behalf by
the undersigned hereunto duly authorized.
NEENAH FOUNDRY COMPANY
DATE: November 20, 1998 /s/ Gary LaChey
---------------------------------
Gary LaChey
Vice President-Finance, Secretary & Treasurer
(Principal Financial Officer and Duly Authorized
Officer)
