<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14D-1
Tender Offer Statement Pursuant to Section 14(d)(1)
of the Securities Exchange Act of 1934
(Amendment No. 1)
Douglas & Lomason Company
(Name of Subject Company)
Magna Acquisition Corporation
(Bidder)
Common Stock, Par Value $2.00 Per Share
(Title of Class of Securities)
258777101
(CUSIP Number of Class of Securities)
J. Brian Colburn
Executive Vice President, Special Projects
and Secretary
Magna International Inc.
36 Apple Creek Boulevard
Markham, Ontario
Canada L3R 4Y4
(905) 477-7766
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications on Behalf of Bidder)
Copies to:
Scott M. Freeman
Sidley & Austin
875 Third Avenue
New York, New York 10022
(212) 906-2000
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Magna Acquisition Corporation (the "Purchaser") and Magna
International Inc. ("Parent") hereby amend and supplement their combined Tender
Offer Statement on Schedule 14D-1, originally filed on September 5, 1996, with
respect to the Purchaser's offer to purchase all outstanding shares of Common
Stock, par value $2.00 per share, of Douglas & Lomason Company, a Michigan
corporation, as set forth in this Amendment No. 1.
ITEM 10. ADDITIONAL INFORMATION
The response to Item 10(b) and (c) is hereby amended by the addition
of the following paragraph:
The information contained in the press release issued by Parent on
September 23, 1996, a copy of which is attached hereto as Exhibit
(a)(10), is incorporated herein by reference.
ITEM 11. MATERIAL TO BE FILED AS EXHIBITS.
Item 11 is hereby amended to add the following exhibit:
(a) (10) Text of press release issued on September 23, 1996.
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SIGNATURE
After due inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: September 23, 1996
MAGNA ACQUISITION CORPORATION
By: /s/ J. Brian Colburn
--------------------------------
Name: J. Brian Colburn
Title: Secretary
By: /s/ Graham J. Orr
--------------------------------
Name: Graham J. Orr
Title: Treasurer
MAGNA INTERNATIONAL INC.
By: /s/ J. Brian Colburn
--------------------------------
Name: J. Brian Colburn
Title: Executive Vice-
President, Special
Projects and
Secretary
By: /s/ Graham J. Orr
--------------------------------
Name: Graham J. Orr
Title: Executive Vice-
President,
Corporate
Development
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EXHIBIT INDEX
EXHIBIT
NUMBER EXHIBIT
- ------- -------
(a)(10) Text of Press Release
issued on September 23, 1996
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Exhibit (a)(10)
PRESS RELEASE
MAGNA ANNOUNCES 1996 FOURTH QUARTER AND FISCAL YEAR RESULTS
September 23, 1996, Markham, Ontario, Canada....Magna International Inc. (TSE:
MG.A, MG.B; ME: MG.A; NYSE: MGA) today reported sales, profits and earnings per
share for the fourth quarter and fiscal year ended July 31, 1996.
<TABLE>
<CAPTION>
Years Ended Three Months Ended
July 31 July 31
1996 1995 1996 1995
(Restated) (Restated)
<S> <C> <C> <C> <C>
Sales $5,856.2 $4,795.4 $1,659.0 $1,202.3
Income before income
taxes and minority
interest $ 484.3 $ 485.1* $ 134.7 $ 118.0*
Net income $ 309.0 $ 317.0* $ 86.1 $ 83.0*
Fully diluted earnings $ 4.71 $ 5.16* $ 1.25 $ 1.36*
per share
- excl. Tesma share gain $ 4.88 $ 1.08
</TABLE>
*Includes a $17 million gain on the issue of shares by Tesma.
All results are reported in millions of Canadian dollars, except per share
figures.
Sales for the fourth quarter and fiscal year 1996 were $1.66 billion and $5.86
billion, representing increases of 38% and 22%, respectively, over each of the
comparable periods of the prior fiscal year. The higher sales levels in the
fourth quarter reflect a 6% increase in North American vehicle production, a
33% increase in average North American content per vehicle, a 29% increase in
European production sales and a 39% increase in tooling sales.
Net income for the fourth quarter of fiscal 1996 was $86.1 million, a 30%
increase from the comparable period of fiscal 1995 excluding the $17 million
gain on the issue of shares by Tesma in fiscal 1995. This increase reflects
higher sales and an increase in equity income, partially offset by a lower
gross margin percentage and by increases in selling, general and administrative
costs, interest expense and depreciation and amortization charges. Net income
for the fiscal year 1996 was $309 million compared to $317 million in fiscal
1995.
..../2
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Fully diluted earnings per share for the fourth quarter of fiscal 1996 were
$1.25, a 16% increase over the comparable period in fiscal 1995, excluding the
gain on the issue of shares by Tesma in fiscal 1995. Fully diluted earnings
per share for the 1996 fiscal year were $4.71 compared to $5.16 for fiscal year
1995.
During the 1996 fiscal year, cash generated from operations was $522 million.
Net investment activities were $481 million, including investments of $331
million in fixed assets and $148 million on acquisitions of subsidiaries.
The Board of Directors declared a dividend of $0.27 per share with respect to
the Class A Subordinate Voting Shares and Class B Shares for the quarter ended
July 31, 1996 payable on October 15, 1996 to shareholders of record on
September 30, 1996.
Magna also announced today the termination of the waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act applicable to the cash tender offer
by its direct wholly owned subsidiary Magna Acquisition Corporation for all
outstanding common shares of Douglas & Lomason Company ("D&L"). Subject to the
satisfaction of other conditions to the tender offer, Magna expects to accept
for payment all common shares of D&L validly tendered and not withdrawn and that
payment for such shares will commence promptly thereafter. Under the terms of
the tender offer, the tender offer and withdrawal rights will expire at 12:00
midnight, New York City time, on Wednesday, October 2, 1996, unless extended.
Magna, one of the most diversified automotive suppliers in the world, designs,
develops and manufactures automotive systems, assemblies and components
primarily for sale to original equipment manufacturers of cars and light trucks
in North America, Mexico and Europe. Magna's products include exterior
decorative systems, interior products including seating systems, instrument,
door and other panels, airbags and steering wheels, stamped and welded metal
parts and assemblies, sunroofs, electro-mechanical devices and assemblies,
various engine, powertrain and fueling and cooling components, and a variety of
plastic parts, including body panels and fascias.
Magna has over 25,000 employees in 100 manufacturing operations in 10
countries.
For further information, please contact Graham Orr, Executive Vice-President,
Corporate Development at 905-477-7766.
..../3
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<TABLE>
<CAPTION>
MAGNA INTERNATIONAL INC. YEARS ENDED THREE MONTHS ENDED
CONSOLIDATED STATEMENTS ----------- ------------------
OF INCOME AND RETAINED EARNINGS (Unaudited)
(Canadian dollars in JULY 31 JULY 31
millions, except per 1996 1995 1996 1995
share figures) ---- ---- ---- ----
(Restated) (Restated)
<S> <C> <C> <C> <C>
Sales $5,856.2 $4,795.4 $1,659.0 $1,202.3
- ------------------------------------------------------------------------------
Cost of goods sold 4,811.2 3,855.7 1,371.7 987.4
Depreciation and
amortization 190.3 163.2 50.2 38.6
Selling, general and
administrative 377.8 313.7 103.6 76.1
Interest 12.2 2.5 3.9
Equity income (19.6) (7.8) (5.1) (0.8)
- ------------------------------------------------------------------------------
Operating income 484.3 468.1 134.7 101.0
Other income 17.0 17.0
- ------------------------------------------------------------------------------
Income before income taxes
and minority interest 484.3 485.1 134.7 118.0
Income taxes 156.0 156.4 43.5 32.9
Minority interest 19.3 11.7 5.1 2.1
- ------------------------------------------------------------------------------
Net income 309.0 317.0 86.1 83.0
Retained earnings,
beginning of period 561.8 329.5 735.3 495.4
Dividends on Class A
Subordinate Voting Shares
and Class B Shares (68.2) (65.2) (18.8) (16.6)
Surrender of stock options (19.5)
- ------------------------------------------------------------------------------
Retained earnings, end
of period $ 802.6 $ 561.8 $ 802.6 $ 561.8
- ------------------------------------------------------------------------------
Earnings per Class A
Subordinate Voting Share
or Class B Share:
Basic $ 4.97 $ 5.20 $ 1.34 $ 1.36
- ------------------------------------------------------------------------------
Fully diluted $ 4.71 $ 5.16 $ 1.25 $ 1.36
==============================================================================
Cash dividends paid per
Class A Subordinate Voting
Share or Class B Share $ 1.08 $ 1.08 $ 0.27 $ 0.27
==============================================================================
</TABLE>
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MAGNA INTERNATIONAL INC. YEARS ENDED THREE MONTHS ENDED
CONSOLIDATED STATEMENTS -------------- ------------------
OF CASH FLOWS (Unaudited)
(Canadian dollars in millions) JULY 31 JULY 31
1996 1995 1996 1995
<TABLE> ---- ---- ---- ----
<S> <C> <C> <C> <C>
(Restated) (Restated)
Cash provided from (used for):
OPERATING ACTIVITIES -
Net income $ 309.0 $ 317.0 $ 86.1 $ 83.0
Items not involving current cash flows 212.9 155.4 55.3 30.7
- ------------------------------------------------------------------------------
521.9 472.4 141.4 113.7
Changes in non-cash working capital (224.9) 0.5 81.3 32.8
- ------------------------------------------------------------------------------
297.0 472.9 222.7 146.5
- ------------------------------------------------------------------------------
INVESTMENT ACTIVITIES -
Fixed asset additions (330.7) (295.6) (77.0) (94.9)
Purchase of subsidiaries (147.5) (102.8) (34.1) (53.3)
(Increase) decrease in investments
and other (23.1) (67.8) 9.0 (13.1)
Proceeds from disposition of
fixed assets and other 19.9 84.2 3.7 16.9
Cash acquired on acquisition
of subsidiary 17.1
- ------------------------------------------------------------------------------
(481.4) (364.9) (98.4) (144.4)
- ------------------------------------------------------------------------------
FINANCING ACTIVITIES -
Issues of Class A Subordinate
Voting Shares 506.3 13.8 506.0 8.0
Issue of convertible subordinated
debentures 454.1 145.3 145.3
Net issues (repayments) of debt 5.4 (62.9) (12.5) (8.1)
Issue of shares by subsidiary 36.7 36.7
Conversion of convertible subordinated
debentures to Class A Subordinate
Voting Shares (0.2)
(Repayment) issue of notes payable
on acquisition of subsidiary (35.5) 35.5 35.5
Surrender of stock options (19.5)
Dividends paid to [net of capital
contributions by] minority interests (1.6) (6.4) (0.8) (1.9)
Dividends (68.2) (65.2) (18.8) (16.6)
- ------------------------------------------------------------------------------
860.3 77.3 473.9 198.9
- ------------------------------------------------------------------------------
Net increase in cash 675.9 185.3 598.2 201.0
Cash, beginning of period 413.9 228.6 491.6 212.9
- ------------------------------------------------------------------------------
Cash, end of period $1,089.8 $ 413.9 $1,089.8 $ 413.9
- ------------------------------------------------------------------------------
</TABLE>
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MAGNA INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEETS
(Canadian dollars in millions)
<TABLE>
<CAPTION>
JULY 31 JULY 31
1996 1995
------- ----------
(Restated)
<S> <C> <C>
ASSETS
Current assets:
Cash $1,089.8 $ 413.9
Accounts receivable 927.2 670.6
Inventories 526.1 446.9
Prepaid expenses and other 24.3 29.9
- ----------------------------------------------------------------
2,567.4 1,561.3
- ----------------------------------------------------------------
Investments 82.6 75.4
Fixed assets (net) 1,509.5 1,304.7
Goodwill 126.5 89.8
Other assets 97.9 78.6
- ----------------------------------------------------------------
TOTAL ASSETS $4,383.9 $3,109.8
- ----------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank indebtedness $ 20.9 $ 27.4
Accounts payable and other accruals 1,009.9 918.1
Long-term debt due within one year 32.0 64.6
- ----------------------------------------------------------------
1,062.8 1,010.1
- ----------------------------------------------------------------
Long-term debt 95.9 94.7
Convertible subordinated debentures 612.8 150.0
Deferred income taxes 126.5 112.0
Minority interest 154.7 151.4
- ----------------------------------------------------------------
Shareholders' equity:
Capital stock issued and outstanding -
Class A Subordinate Voting Shares 1,463.1 950.8
Class B Shares 1.3 1.3
Retained earnings 802.6 561.8
Currency translation adjustment 64.2 77.7
- ----------------------------------------------------------------
2,331.2 1,591.6
- ----------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $4,383.9 $3,109.8
- ----------------------------------------------------------------
</TABLE>
