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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
AMENDMENT NO. 2 TO CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: November 5, 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 (IRS Employer ID
incorporation or organization) Number) 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 dated April 14, 1998, as amended June 12, 1998, reporting the Company's
acquisition of all of the issued and outstanding stock of Mercer Forge
Corporation ("Mercer") to adjust the pro forma financial statements. The amended
items are as follows:
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL STATEMENTS AND EXHIBITS
(b) Pro Forma Financial Information
- Pro Forma Consolidated Statements of Income for the year ended
September 30, 1997 and for the six months ended March 31, 1998 and
related notes
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NEENAH FOUNDRY COMPANY
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF INCOME
Year Ended September 30, 1997
(In thousands)
<TABLE>
<CAPTION>
Neenah Foundry
---------------------------------------------------------------------------------------
Predecessor Pro Forma Historical Pro Forma
-------------- -------------- ------------------ ------------------
Seven Months Seven Months Five Months
Ended Pro Forma Ended Ended Year Ended
April 30, 1997 Adjustments April 30, 1997 September 30, 1997 September 30, 1997
-------------- ----------- -------------- ------------------ ------------------
<S> <C> <C> <C> <C> <C>
Net sales .................................. $ 92,963 $ - $ 92,963 $ 87,093 $180,056
Cost of sales .............................. 65,101 506 65,607 60,166 125,773
--------- --------- ---------- ---------- ---------
Gross profit ............................... 27,862 (506) 27,356 26,927 54,283
Selling, general and administrative
expenses ................................. 10,023 (2,042) 7,981 7,088 15,069
Amortization of intangible assets........... - 2,869 2,869 3,678 6,547
--------- --------- ---------- ---------- ---------
Total operating expenses ................. 10,023 827 10,850 10,766 21,616
--------- --------- ---------- ---------- ---------
Operating income ........................... 17,839 (1,333) 16,506 16,161 32,667
Net interest income (expense) .............. 870 (12,946) (12,076) (8,832) (20,908)
--------- --------- ---------- ---------- ---------
Income before income taxes ................. 18,709 (14,279) 4,430 7,329 11,759
Provision for income taxes ................. 6,927 (4,647) 2,280 3,479 5,759
--------- --------- ---------- ---------- ---------
Net income ................................. $ 11,782 $ (9,632) $ 2,150 $ 3,850 $ 6,000
========= ========= ========== ========== =========
<CAPTION>
Historical
-------------------------------------
Mercer Deeter
----------------- -----------------
Year Ended Year Ended Pro Forma
November 30, 1997 December 31, 1997 Adjustments Pro Forma
----------------- ----------------- ----------- ---------
<S> <C> <C> <C> <C>
Net sales .................................. $ 43,220 $ 14,296 $ - $237,572
Cost of sales .............................. 33,105 7,873 1,893 (a) 168,644
--------- --------- --------- ---------
Gross profit ............................... 10,115 6,423 (1,893) 68,928
Selling, general and administrative
expenses ................................. 3,437 5,954 210 (a) 24,670
1,455 (a)
Amortization of intangible assets........... 25 - 922 (a) 8,949
--------- --------- --------- ---------
Total operating expenses ................. 3,462 5,954 2,587 33,619
--------- --------- --------- ---------
Operating income ........................... 6,653 469 (4,480) 35,309
Net interest income (expense) .............. (780) (387) (3,591)(b) (25,666)
--------- --------- --------- ---------
Income before income taxes ................. 5,873 82 (8,071) 9,643
Provision for income taxes ................. 2,169 - (2,859)(c) 5,069
--------- --------- --------- ---------
Net income ................................. $ 3,704 $ 82 $(5,212) $ 4,574
========= ========= ========= =========
</TABLE>
See accompanying Notes to Unaudited Pro Forma Consolidated Statements of Income.
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NEENAH FOUNDRY COMPANY
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF INCOME
Six Months Ended March 31, 1998
(In thousands)
<TABLE>
<CAPTION>
Historical
--------------------------------------
Neenah Pro Forma
Foundry Mercer Deeter Adjustments Pro Forma
--------- --------- --------- ----------- ----------
<S> <C> <C> <C> <C> <C>
Net sales .................................. $ 89,825 $ 27,529 $ 5,916 $ -- $ 123,270
Cost of sales .............................. 64,079 20,632 3,407 947 (a) 89,065
--------- --------- --------- --------- ---------
Gross profit ............................... 25,746 6,897 2,509 (947) 34,205
(778)(a)
Selling, general and administrative
expenses ................................. 7,972 1,812 4,111 105 (a) 13,222
1,405 (a)
Amortization of intangible assets .......... 2,459 41 -- 461 (a) 4,366
--------- --------- --------- --------- ---------
Total operating expenses ................. 10,431 1,853 4,111 1,193 17,588
--------- --------- --------- --------- ---------
Operating income ........................... 15,315 5,044 (1,602) (2,140) 16,617
Net interest income (expense) .............. (10,489) (485) (196) (1,698)(b) (12,868)
--------- --------- --------- --------- ---------
Income before income taxes ................. 4,826 4,559 (1,798) (3,838) 3,749
Provision for income taxes ................. 2,486 1,436 -- (1,351)(c) 2,571
--------- --------- --------- --------- ---------
Net income ................................. $ 2,340 $ 3,123 $ (1,798) $ (2,487) $ 1,178
========= ========= ========= ========= =========
</TABLE>
See accompanying Notes to Unaudited Pro Forma Consolidated Statements of Income.
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NEENAH FOUNDRY COMPANY
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands)
(a) The pro forma adjustments to cost of sales, selling, general and
administrative expenses and amortization of intangible assets are comprised
of the following:
<TABLE>
<CAPTION>
Year Ended September 30, 1997 Six Months Ended March 31, 1998
---------------------------------- ----------------------------------
Proforma Proforma
Historical Proforma Adjustment Historical Proforma Adjustment
---------- -------- ---------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C>
Depreciation of property, plant and equipment:
Cost of sales $ 7,021 $ 8,914 $ 1,893 $ 3,888 $ 4,835 $ 947
Selling, general and administrative 1,876 2,086 210 1,245 1,350 105
Amortization of identifiable intangible
assets 5,319 6,774 1,455 1,515 2,920 1,405
Amortization of goodwill 1,253 2,175 922 985 1,446 461
Elimination of certain non-recurring
expenses incurred by Deeter prior to
Acquisition - - - - (778) (778)
</TABLE>
(b) Adjustment to record interest expense and amortization of deferred financing
costs on the debt incurred to finance the Acquisitions, calculated as
follows:
<TABLE>
<CAPTION>
Year Ended Six Months Ended
September 30, 1997 March 31, 1998
------------------ ----------------
<S> <C> <C>
Tranche B Term Loan ($55,000 @ 8.25%) $ 4,538 $ 2,269
Amortization of deferred financing costs (over 5 years) 220 110
Reduction in interest expense related to indebtedness
satisfied in connection with the Acquisitions (1,167) (681)
------- -------
$ 3,591 $ 1,698
======= =======
</TABLE>
(c) Adjustment to record the tax effect on the above adjustments using the
marginal effective income tax rate of 40%. All adjustments were
tax-effected except for goodwill amortization.
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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 5, 1998 /s/ Gary LaChey
-----------------------------
Gary LaChey
Vice President-Finance, Secretary & Treasurer
(Principal Financial Officer and Duly
Authorized Officer)
