<PAGE>
As filed with the Securities and Exchange Commission on February 24, 1999
- -------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): February 9, 1999
GENESIS DIRECT, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
0-24173 22-3449666
(Commission File Number) (I.R.S. Employer Identification No.)
100 Plaza Drive, Secaucus, NJ 07094
(Address of Principal Executive Offices) (Zip Code)
(201) 867-2800
(Registrant's Telephone Number, Including Area Code)
________________________________________________________________________________
<PAGE>
Item 2. Acquisition or Disposition of Assets.
In February 1999, Genesis Direct, Inc. and its wholly-owned subsidiary,
Little Genesis, Inc. (together, the "Sellers"), entered into an agreement (the
"Agreement") with School Specialty, Inc. (the "Buyer"). Pursuant to the
Agreement, the Sellers agreed to sell, and the Buyer agreed to purchase, all of
the outstanding limited liability company interests of Sportime, LLC (the
"Company") for consideration of $23,000,000, payable in cash. The closing of the
disposition took place on February 9, 1999. The Company offers both traditional
and innovative recreational and athletic products to schools, camps, therapists
and other institutions.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(a) Financial Statements of Business Acquired.
-----------------------------------------
Not applicable.
(b) Pro Forma Financial Information.
-------------------------------
See Exhibit 99.1
(c) Exhibits.
--------
The following exhibits are filed herewith:
Exhibit
-------
No. Description
--- -----------
99.1 Pro Forma Financial Statements
<PAGE>
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.
GENESIS DIRECT, INC.
By: /s/ Ronald Benanto
---------------------------------
Ronald Benanto
Vice President and Chief Financial Officer
Date: February 24, 1999
<PAGE>
Exhibit 99.1
Index to Financial Statements
-----------------------------
<TABLE>
<CAPTION>
Page
----------------
<S> <C>
Unaudited Pro Forma Condensed Financial Statements F-2
Unaudited Pro Forma Condensed Balance Sheet - December 26, 1998 F-3
Unaudited Pro Forma Condensed Statement of Operations - F-4
Year ended March 28, 1998
Unaudited Pro Forma Condensed Statement of Operations -
Nine months ended December 26, 1998 F-5
Notes to Unaudited Pro Forma Condensed Financial Statements F-6
</TABLE>
<PAGE>
Genesis Direct, Inc.
Unaudited Pro Forma Condensed Financial Statements
On February 9, 1999, Genesis Direct, Inc. and Little Genesis, Inc. sold all of
the outstanding limited liability company interests of Sportime, LLC to School
Specialty, Inc. The following unaudited pro forma condensed balance sheet as of
December 26, 1998 has been prepared to present the financial position of Genesis
Direct, Inc. as though the disposition had been consummated on December 26,
1998. The following pro forma condensed statements of operations for the year
ended March 28, 1998 and the nine months ended December 26, 1998 have been
prepared to present the operations of Genesis Direct, Inc. assuming the
disposition had been completed on March 30, 1997. The acquisition of the
Sportime business was completed on January 7, 1998, and accordingly, the pro
forma condensed statement of operations for the year ended March 28, 1998
reflects the results of Sportime, LLC for the period subsequent to the
acquisition.
The unaudited pro forma condensed financial statements, including the notes
thereto, are qualified in their entirety by reference to, and should be read in
conjunction with, the historical consolidated financial statements of Genesis
Direct, Inc. included in its Annual Report on Form 10-K for the year ended March
28, 1998 and Quarterly Reports on Form 10-Q for the fiscal quarters ended June
27, 1998, September 26, 1998 and December 26, 1998. The unaudited pro forma
condensed balance sheet and statements of operations have been included herein
for comparative purposes only and do not purport to be indicative of the results
of operations which actually would have been obtained had the disposition been
completed on March 30, 1997. In addition, future results may vary significantly
from the results reflected in these pro forma financial statements.
F-2-
<PAGE>
Pro Forma Condensed Balance Sheet
December 26, 1998
(in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Genesis
------------ Elimination of
Direct, Inc. Sportime, LLC Pro Forma
------------ -------------- -----------
<S> <C> <C> <C>
Assets
Current assets:
Cash and cash equivalents .......................... $ 11,662 $ 379 (a) $ 33,935
(22,652)(b)
Accounts receivable, net ........................... 17,532 3,980 (a) 13,552
Merchandise inventory, net ......................... 62,119 4,797 (a) 57,322
Deferred advertising costs ......................... 12,218 2,323 (a) 9,895
Other current assets ............................... 4,955 101 (a) 4,854
Note receivable, current portion ................... 479 - 479
------------ -------------- ----------
Total current assets .............................. 108,965 (11,072) 120,037
Intangibles, net .................................... 9,747 78 (a) 9,669
Goodwill, net ....................................... 93,844 14,612 (a) 79,232
Property, equipment and leasehold improvements, net... 46,323 1,218 (a) 45,105
Note receivable, less current portion ............... 1,020 - 1,020
Other assets ........................................ 988 11 (a) 977
------------ -------------- ----------
$ 260,887 $ 4,847 $ 256,040
============ ============== ==========
Liabilities and stockholders' equity (deficiency)
Current liabilities:
Accounts payable ................................... $ 40,733 $ 1,371 (a) $ 39,362
Accrued expenses ................................... 45,772 2,979 (a) 42,793
Current portion of notes payable and long-term debt.. 24,043 - 24,043
Current portion of obligations under capital leases.. 1,996 14 (a) 1,982
Other current liabilities .......................... 2,181 94 (a) 2,087
------------ -------------- ----------
Total current liabilities ......................... 114,725 4,458 110,267
Notes payable and long-term debt, less current
portion.............................................. 18,227 292 (a) 17,935
Obligations under capital leases, net of current
portion.............................................. 3,293 60 (a) 3,233
Other liabilities ................................... 2,296 197 (a) 2,099
Common stockholders' equity (deficiency):
Common Stock ....................................... 323 - 323
Additional paid-in-capital........................... 278,542 - 278,542
Accumulated (deficit) earnings ..................... (156,519) (160)(b) (156,359)
------------ -------------- ----------
Total common stockholders' equity ................... 122,346 (160) 122,506
------------ -------------- ----------
Total liabilities and common stockholders' equity ... $ 260,887 $ 4,847 $ 256,040
============ ============== ==========
</TABLE>
F-3-
<PAGE>
Pro Forma Condensed Statement of Operations
Year Ended March 28, 1998
(in thousands, except share and per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Genesis
------------ Elimination of
Direct, Inc. Sportime, LLC Pro Forma
------------ -------------- -----------
<S> <C> <C> <C>
Net sales ................................. $ 107,210 $5,990(a) $ 101,220
Cost of goods sold ........................ 81,606 3,681(a) 77,925
----------------- ------------------ -----------------
Gross profit .............................. 25,604 2,309 23,295
Selling, general and administrative
expenses ................................. 97,840 2,281(a) 95,559
----------------- ------------------ -----------------
(Loss) income from operations ............. (72,236) 28 (72,264)
Interest expense .......................... 4,488 3(a) 4,485
Interest income ........................... 513 4(a) 509
Other income ............................... - (160)(b) 160
----------------- ------------------ -----------------
Net (loss) income ......................... (76,211) (131) (76,080)
Dividends accruing on Series A Preferred
Stock .................................... (2,439) - (2,439)
----------------- ------------------ -----------------
Net loss (income) attributable to common
stockholders ............................. $ (78,650) $ (131) $ (78,519)
================= ================== =================
Basic net loss per share .................. $ (8.89) $ (8.88)
================= =================
Weighted average common shares
outstanding .............................. 8,842,200 8,842,200
================= =================
</TABLE>
F-4-
<PAGE>
Pro Forma Condensed Statement of Operations
Nine Months Ended December 26, 1998
(in thousands, except share and per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Genesis
------------ Elimination of
Direct, Inc. Sportime, LLC Pro Forma
------------ -------------- -----------
<S> <C> <C> <C>
Net sales .................................... $ 192,773 $26,127(a) $ 166,646
Cost of goods sold ........................... 127,792 17,417(a) 110,375
--------------- ------------------ ---------------
Gross profit ................................. 64,981 8,710 56,271
Selling, general and administrative expenses... 121,152 6,501(a) 114,651
--------------- ------------------ ---------------
(Loss) income from operations ................ (56,171) 2,209 (58,380)
Interest expense ............................. 3,597 11(a) 3,586
Interest income .............................. 920 6(a) 914
--------------- ------------------ ---------------
Net (loss) income before extraordinary item .. (58,848) 2,204 (61,052)
Extraordinary item - loss on extinguishment
of debt....................................... (5,235) - (5,235)
--------------- ------------------ ---------------
Net (loss) income ............................ $ (64,083) $ 2,204 $ (66,287)
=============== ================== ===============
Basic net loss per share:
Loss before extraordinary item................ $ (2.13) $ (2.21)
Extraordinary item............................ (0.19) (0.19)
--------------- ---------------
Net loss...................................... $ (2.32) $ (2.40)
=============== ===============
Weighted average shares - basic................ 27,630,445 27,630,445
=============== ===============
</TABLE>
F-5-
<PAGE>
Genesis Direct, Inc.
Notes to Unaudited Pro Forma Condensed Financial Statements
1. Disposition
On February 9, 1999, Genesis Direct, Inc. and its wholly-owned subsidiary,
Little Genesis, Inc., sold all of the outstanding limited liability company
interests of Sportime, LLC for consideration of $23,000,000, payable in cash.
The acquisition of the Sportime business was completed on January 7, 1998, and
accordingly, the pro forma condensed statement of operations for the year ended
March 28, 1998 reflects the results of Sportime, LLC for the period subsequent
to the acquisition.
2. Pro Forma Adjustments
Balance Sheet
(a) Elimination of disposed Sportime, LLC assets and liabilities.
(b) Net proceeds from disposition of Sportime, LLC and resulting net gain.
Statements of Operations
(a) Elimination of Sportime, LLC operating results for the respective periods.
(b) Net gain resulting from disposition of Sportime, LLC.
F-6-
