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Previous: CAPITAL SOUTHWEST VENTURE CORP, NSAR-A, 1996-11-22 |
Next: DANIEL INDUSTRIES INC, 10-K, 1996-11-22 |
<PAGE>
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
November 7, 1996
CULBRO CORPORATION
(Exact name of registrant as specified in charter)
Filing Fee #026093
New York 1-1210 13-0762310
-------- ------ ----------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
387 Park Avenue South, New York, New York 10016-8899
- ----------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 448-3800
--------------
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<PAGE>
ITEM 2. DISPOSITION OF ASSETS
On November 7, 1996, Culbro Corporation (the "Corporation") completed the
sale of all of the outstanding common stock of each of the companies that
comprised the Corporation's labeling and packaging systems business, CMS
Gilbreth Packaging Systems, Inc. ("CMS Gilbreth"), to Impaxx, Inc. for net
proceeds, after expenses, of approximately $36 million. The net proceeds
from the sale of CMS Gilbreth were used to reduce the amount outstanding
under the Corporation's Credit Agreement and repay the remaining amount
outstanding under the Corporation's Senior Notes. The Corporation provided
for a pretax loss on the sale of CMS Gilbreth of approximately $5.6 million
in its 1996 Third Quarter Form 10-Q.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(b) Pro forma financial information.
The following unaudited proforma consolidated financial information gives
effect to the Corporation's disposition of CMS Gilbreth. The unaudited pro
forma consolidated statements of operations assume that the disposition
occurred at the beginning of each period presented and the net proceeds from
the sale were used to reduce the amount outstanding under the Corporation's
Credit Agreement and repay the Corporation's Senior Notes. The unaudited pro
forma consolidated balance sheet presented assumes that the disposition
occurred at the balance sheet date. This unaudited pro forma consolidated
financial information may not necessarily reflect the results of operations
and financial position that would have been achieved had the disposition taken
place at the beginning of the fiscal years presented. The pro forma
consolidated financial information should be read in conjunction with the
Corporation's financial statements included under Item 7 of the Corporation's
1995 Form 10-K.
Unaudited pro forma consolidated statement of operations
for the fiscal year ended November 27, 1993 3
Unaudited pro forma consolidated statement of operations
for the fiscal year ended December 3, 1994 4
Unaudited pro forma consolidated statement of operations
for the fiscal year ended December 2, 1995 5
Unaudited pro forma consolidated statement of operations
for the nine months ended September 2, 1995 6
Unaudited pro forma consolidated statement of operations
for the nine months ended August 31, 1996 7
Unaudited pro forma consolidated condensed balance sheet as of
August 31, 1996 8
Notes to unaudited pro forma consolidated financial information 9
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<PAGE>
Culbro Corporation
Unaudited Pro Forma Consolidated Statement of Operations
Year Ended November 27, 1993
(dollars in thousands except per share data)
<TABLE>
<CAPTION>
Historical Adjustments Pro Forma
---------- ----------- ---------
<S> <C> <C> <C>
Net sales and other revenue $1,364,576 $(46,896)(1) $1,317,680
Cost and expenses:
Cost of goods sold 1,219,742 (32,256)(1) 1,187,486
Selling, general and administrative expenses 126,055 (9,709)(1) 116,346
---------- ----------- ---------
Operating profit 18,779 (4,931) 13,848
Loss from equity investment (290) - (290)
Fees on sales of accounts receivable 476 - 476
Interest expense, net 14,411 (3,033)(4) 11,378
---------- ----------- ---------
Income before taxes 3,602 (1,898) 1,704
Income tax provision 1,877 (810)(5) 1,067
---------- ----------- ---------
Income before cumulative
effect of accounting change 1,725 (1,088) 637
Accretion of Series A preferred stock of Eli Witt (705) - (705)
---------- ----------- ---------
Income (loss) from continuing operations
available to common shareholders before
cumulative effect of accounting change $1,020 $(1,088) $ (68)
---------- ----------- ---------
---------- ----------- ---------
Income (loss) per common share from continuing
operations before cumulative effect of
accounting change $0.24 $(0.02)
---------- ---------
---------- ---------
Average common shares outstanding 4,308,000 4,308,000
---------- ---------
---------- ---------
</TABLE>
See accompanying notes to unaudited pro forma consolidated financial
information.
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<PAGE>
Culbro Corporation
Unaudited Pro Forma Consolidated Statement of Operations
Year Ended December 3, 1994
(dollars in thousands except per share data)
<TABLE>
<CAPTION>
Historical Adjustments Pro Forma
---------- ----------- ---------
<S> <C> <C> <C>
Net sales and other revenue $185,415 $(51,080)(1) $134,335
Cost and expenses:
Cost of goods sold 117,193 (34,108)(1) 83,085
Selling, general and administrative expenses 55,443 (10,946)(1) 44,497
Other expense 4,000 (400)(1) 3,600
---------- ----------- ---------
Operating profit 8,779 (5,626) 3,153
Gain on sale of Eli Witt common stock 2,691 - 2,691
Loss from equity investments, net (1,728) - (1,728)
Other nonoperating income, net 1,446 - 1,446
Interest expense, net 8,614 (2,862)(4) 5,752
---------- ----------- ---------
Income (loss) before taxes 2,574 (2,764) (190)
Income tax provision 1,422 (1,196)(5) 226
---------- ----------- ---------
Income (loss) from continuing operations $1,152 $(1,568) $(416)
---------- ----------- ---------
---------- ----------- ---------
Income (loss) per common share from
continuing operations $0.27 $(0.10)
---------- ---------
---------- ---------
Average common shares outstanding 4,308,000 4,308,000
---------- ---------
---------- ---------
</TABLE>
See accompanying notes to unaudited pro forma consolidated financial
information.
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<PAGE>
Culbro Corporation
Unaudited Pro Forma Consolidated Statement of Operations
Year Ended December 2, 1995
(dollars in thousands except per share data)
<TABLE>
<CAPTION>
Historical Adjustments Pro Forma
---------- ----------- ---------
<S> <C> <C> <C>
Net sales and other revenue $220,044 $(51,048)(1) $168,996
Cost and expenses:
Cost of goods sold 131,269 (33,197)(1) 98,072
Selling, general and administrative expenses 63,833 (11,553)(1) 52,280
---------- ----------- ---------
Operating profit 24,942 (6,298) 18,644
Gain on insurance settlement 2,586 - 2,586
Other nonoperating income, net 116 - 116
Loss from equity investments, net (153) - (153)
Interest expense, net 9,275 (2,889)(4) 6,386
---------- ----------- ---------
Income before income taxes 18,216 (3,409) 14,807
Income tax provision 7,027 (1,495)(5) 5,532
---------- ----------- ---------
Income from continuing operations $11,189 $(1,914) $ 9,275
---------- ----------- ---------
---------- ----------- ---------
Income per common share from continuing
operations $2.52 $ 2.09
---------- ---------
---------- ---------
Average common shares and equivalents
outstanding 4,440,000 4,440,000
---------- ---------
---------- ---------
</TABLE>
See accompanying notes to unaudited pro forma consolidated financial
information.
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<PAGE>
Culbro Corporation
Unaudited Pro Forma Consolidated Statement of Operations
Nine Months Ended September 2, 1995
(dollars in thousands except per share data)
<TABLE>
<CAPTION>
Historical Adjustments Pro Forma
---------- ----------- ---------
<S> <C> <C> <C>
Net sales and other revenue $160,336 $(39,490) (1) $120,846
Cost and expenses:
Cost of goods sold 97,630 (25,667) (1) 71,963
Selling, general and administrative expenses 44,065 (8,915) (1) 35,150
---------- ----------- ---------
Operating profit 18,641 (4,908) 13,733
Gain on insurance settlement 2,105 - 2,105
Other nonoperating income, net 644 - 644
Loss from equity investments, net (50) - (50)
Interest expense, net 7,078 (2,181) (4) 4,897
---------- ----------- ---------
Income before taxes 14,262 (2,727) 11,535
Income tax provision 5,705 (1,397) (5) 4,308
---------- ----------- ---------
Income from continuing operations $8,557 $(1,330) $7,227
---------- ----------- ---------
---------- ----------- ---------
Income per common share from continuing
operations $1.95 $1.65
---------- ---------
---------- ---------
Average common shares and equivalents
outstanding 4,386,000 4,386,000
---------- ---------
---------- ---------
</TABLE>
See accompanying notes to unaudited pro forma consolidated financial
information.
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<PAGE>
Culbro Corporation
Unaudited Pro Forma Consolidated Statement of Operations
Nine Months Ended August 31, 1996
(dollars in thousands except per share data)
<TABLE>
<CAPTION>
Historical Adjustments Pro Forma
---------- ----------- ---------
<S> <C> <C> <C>
Net sales and other revenue $137,505 $ - $137,505
Cost and expenses:
Cost of goods sold 79,113 - 79,113
Selling, general and administrative expenses 41,952 - 41,952
---------- ----------- ---------
Operating profit 16,440 - 16,440
Other nonoperating income, net 1,511 - 1,511
Income from equity investment 26 - 26
Interest expense, net 6,950 (2,230)(4) 4,720
---------- ----------- ---------
Income before income taxes 11,027 2,230 13,257
Income tax provision 4,367 847(5) 5,214
---------- ----------- ---------
Income from continuing operations $6,660 $1,383 $8,043
---------- ----------- ---------
---------- ----------- ---------
Income per common share from continuing
operations $1.43 $1.73
---------- ---------
---------- ---------
Average common shares and equivalents
outstanding 4,656,000 4,656,000
---------- ---------
---------- ---------
</TABLE>
See accompanying notes to unaudited pro forma consolidated financial
information.
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<PAGE>
Culbro Corporation
Unaudited Pro Forma Consolidated Condensed Balance Sheet
August 31, 1996
(dollars in thousands except per share data)
<TABLE>
<CAPTION>
Historical Adjustments Pro Forma
---------- ----------- ---------
<S> <C> <C> <C>
ASSETS
Currents Assets
Receivables, net $28,845 $28,845
Inventories 79,230 79,230
All other current assets 10,201 10,201
---------- ---------
Total current assets 118,276 118,276
Property and equipment, net 64,006 64,006
Real estate held for sale or lease, net 29,007 29,007
Net assets of discontinued operation 36,879 (36,879) (2) -
All other noncurrent assets 42,384 42,384
---------- ----------- ---------
Total assets $290,552 $(36,879) $253,673
---------- ----------- ---------
---------- ----------- ---------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable & accrued liabilities $17,611 $17,611
All other current liabilities 11,331 (7,098) (3) 4,233
---------- ----------- ---------
Total current liabilities 28,942 (7,098) 21,844
Long-term debt 99,398 (29,781) (3) 69,617
All other noncurrent liabilities 29,430 - 29,430
---------- ----------- ---------
Total liabilities 157,770 (36,879) 120,891
Shareholders' equity 132,782 - 132,782
---------- ----------- ---------
Total liabilities and shareholders' equity $290,552 $(36,879) $253,673
---------- ----------- ---------
---------- ----------- ---------
</TABLE>
See accompanying notes to unaudited pro forma consolidated financial
information.
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<PAGE>
Culbro Corporation
Notes to Unaudited Pro Forma Consolidated Financial Information
1. To remove amounts related to CMS Gilbreth's results of operations.
2. To remove assets and liabilities of CMS Gilbreth.
3. To reduce debt reflecting net proceeds received from the sale of CMS
Gilbreth.
4. To adjust interest expense for net proceeds received from the sale of CMS
Gilbreth. The net proceeds were assumed to be used to reduce the
Corporation's debt under its Senior Notes and Credit Agreement.
5. To adjust income tax expense (benefit) for removal of CMS Gilbreth's
results of operations and adjustment of interest expense.
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<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 thereunto duly authorized.
CULBRO CORPORATION
DATE: November 21, 1996 /s/ Jay M. Green
-------------------------------------
Jay M. Green
Executive Vice President
Chief Financial Officer and Treasurer
DATE: November 21, 1996 /s/ Joseph Aird
-------------------------------------
Joseph Aird
Senior Vice President-Controller
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