<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
May 23, 2000
Dynatech Corporation
(Exact name of registrant as specified in its charter)
Delaware 04-2258582
(State or other jurisdiction (Commission File No.) (IRS Employee
of incorporation) Identification No.)
3 New England Executive Park, Burlington, Massachusetts 01803
(Address of principal executive offices) (Zip code)
Registrant's telephone no., including area code: (781) 272-6100
TOTAL NUMBER OF PAGES:
<PAGE>
Item 2. Acquisition and Disposition of Assets
As described in the Registrant's Current Report on Form 8-K filed on
May 31, 2000 (the "Initial 8-K"), Dynatech Corporation, a Delaware corporation
("Dynatech"), and its wholly-owned subsidiary DWW Acquisition Corporation, a
Delaware corporation ("MergerCo"), completed their merger with Wavetek Wandel
Goltermann, Inc., a Delaware Corporation ("WWG"), pursuant to an Agreement and
Plan of Merger, dated as of February 14, 2000, among Dynatech, MergerCo and WWG.
This Current Report on Form 8-K/A supplements the Initial 8-K to include
updated pro forma financial information required by Item 7.
2
<PAGE>
Item 7. Financial Statements and Exhibits.
---------------------------------
(b) Unaudited Pro Forma Financial Statements.
Item 7(b) of the Initial 8-K is supplemented with the following:
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The Unaudited Pro Forma Condensed Consolidated Financial Statements give
effect to the following:
. the merger with WWG (after giving effect to the divestitures of WWG's
Precision Measurement and Test Tools divisions, which occurred in January
2000);
. the sale, in connection with the WWG merger, of 43,125,000 newly-issued
but unregistered shares of common stock to Clayton, Dubilier & Rice
Fund V Limited Partnership and Clayton, Dubilier & Rice Fund VI Limited
Partnership, and the concurrent establishment of our new Senior Secured
Credit Facility;
. the sale of 4,983,048 newly-issued registered shares of common stock to
shareholders of record on April 20, 2000 (other than Clayton, Dubilier &
Rice Fund V Limited Partnership) in the rights offering completed on June
30, 2000;
. the inclusion of the results of operations for the full period presented
relating to the acquisitions of Sierra Design Labs and Applied Digital
Access, Inc.; and
. the exclusion of the results of operations for the full period presented
relating to the divestiture of DataViews Corporation.
The Unaudited Pro Forma Condensed Consolidated Balance Sheet as of March 31,
2000 set forth herein was prepared assuming that the above-listed transactions
took place on that date. The Unaudited Pro Forma Condensed Consolidated
Statement of Operations for the twelve months ended March 31, 2000 set forth
herein was prepared assuming that the above-listed transactions occurred as of
the first day of that period.
The Unaudited Pro Forma Condensed Consolidated Financial Statements should be
read in conjunction with Dynatech's historical Consolidated Financial Statements
and Dynatech's "Management Discussion and Analysis of Financial Condition and
Results of Operations," included in Dynatech's Annual Report on Form 10-K for
the fiscal year ended March 31, 2000, filed with the SEC on June 26, 2000, as
well as the WWG historical Consolidated Financial Statements which are
incorporated by reference in the Current Report on Form 8-K filed with the SEC
on May 31, 2000 and the Applied Digital Access, Inc. historical Consolidated
Financial Statements which are included in the Current Report on Form 8-K/A
filed with the SEC on January 14, 2000.
The pro forma adjustments, as described in the Notes to Unaudited Pro Forma
Condensed Consolidated Financial Statements herein, are based on currently
available information and certain adjustments that management believes are
reasonable. This pro forma financial information is presented for informational
purposes only and does not necessarily represent what Dynatech's financial
position or results of operations would have been if these transactions had in
fact occurred on the dates indicated and is not necessarily indicative of
Dynatech's financial position or results of operations for any future period.
3
<PAGE>
DYNATECH CORPORATION
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
March 31, 2000
(in thousands)
<TABLE>
<CAPTION>
Other WWG
Acquisitions Purchase Debt Related
Dynatech and Pro Forma Accounting Pro Forma
Corporation Divestitures (a) WWG (b) Adjustments (c) Adjustments (e)
----------- ---------------- --------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents............. $ 33,839 $ 700 $ 17,974 $ (258,000) $ 187,000
Accounts receivable, net.............. 78,236 (911) 92,113 - -
Inventories........................... 30,252 - 71,506 45,000 -
Other current assets.................. 37,880 (69) 20,464 - -
--------- --------- --------- ---------- ---------
Total current assets................ 180,207 (280) 202,057 (213,000) 187,000
Property and equipment, net............. 27,316 (355) 53,066 10,000 -
Net assets from discontinued operations. 72,601 - - - -
Intangible assets, net.................. 58,508 - 136,903 282,175 -
Other assets............................ 76,206 (19) 5,457 - 9,670
--------- --------- --------- ---------- ---------
Total assets........................ $ 414,838 $ (654) $ 397,483 $ 79,175 $ 196,670
========= ========= ========= ========== =========
LIABILITIES AND SHAREHOLDERS'
EQUITY (DEFICIT)
Current liabilities:
Notes payable and current portion
of long-term debt................... $ 7,646 $ - $ 23,755 $ - $ (18,000)
Other current liabilities............. 120,299 (654) 103,506 20,000 15,868
--------- --------- -------- ---------- ---------
Total current liabilities........... 127,945 (654) 127,261 20,000 (2,132)
Long-term debt.......................... 572,288 - 199,942 - 205,000
Pension liabilities..................... - - 33,455 - -
Deferred compensation................... 11,280 - - - -
Other long-term liabilities............. - - 12,000 54,000 -
Common stock and additional
paid-in capital....................... 346,098 - - 130,000 -
Other shareholders' equity (deficit)... (642,773) - 24,825 (124,825) (6,198)
--------- ---------- --------- -------- ---------
Total liabilties and shareholders'
equity (deficit)...................... $ 414,838 $ (654) $ 397,483 $ 79,175 $ 196,670
========= ========== ========= ========= =========
<CAPTION>
Equity Related
Pro Forma
Adjustments (g) Pro Forma
--------------- ---------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents............. $ 147,032 $ 128,545
Accounts receivable, net.............. - 169,438
Inventories........................... - 146,758
Other current assets.................. - 58,275
----------- -----------
Total current assets................ 147,032 503,016
Property and equipment, net............. - 90,027
Net assets from discontinued operations. - 72,601
Intangible assets, net.................. - 477,586
Other assets............................ - 91,314
----------- -----------
Total assets........................ $ 147,032 $ 1,234,544
=========== ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY (DEFICIT)
Current liabilities:
Notes payable and current
portion of long-term debt........... $ - $ 13,401
Other current liabilities............. (40,000) 219,019
----------- ------------
Total current liabilities........... (40,000) 232,420
Long-term debt.......................... - 977,230
Pension liabilities .................... - 33,455
Deferred compensation................... - 11,280
Other long-term liabilities............. - 66,000
Common stock and additional
paid-in capital....................... 192,432 668,530
Other shareholders' equity (deficit).... (5,400) (754,371)
----------- -----------
Total liabilities and shareholders'
equity (deficit)...................... $ 147,032 $ 1,234,544
=========== ===========
</TABLE>
<PAGE>
DYNATECH CORPORATION
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Twelve Months Ended March 31, 2000
(In thousands, except per share data)
<TABLE>
<CAPTION>
Other
Dynatech Acquisitions/ Pro Forma
Corporation Divestitures (a) WWG (b)
----------------- --------------------- --------------
<S> <C> <C> <C>
Net sales.................................................. $453,239 $20,474 $497,351
Cost of sales.............................................. 157,090 9,598 193,828
---------------- --------------------- --------------
Gross profit............................................... 296,149 10,876 303,523
---------------- --------------------- --------------
Selling, general and administrative expense................ 156,499 8,317 180,727
Product development expense................................ 61,172 5,285 69,740
Recapitalization and other related costs................... 27,942 - -
Restructuring and other non-recurring charges.............. - - 4,400
Amortization of intangibles................................ 8,789 389 18,765
---------------- --------------------- --------------
Total operating expenses................................... 254,402 13,991 273,632
---------------- --------------------- --------------
Operating income (loss)............................... 41,747 (3,115) 29,891
Interest expense........................................... (51,916) (4) (20,497)
Interest income............................................ 2,354 346 769
Other income (expense), net................................ (68) 56 1,584
---------------- --------------------- --------------
Income (loss) from continuing operations before income taxes (7,883) (2,717) 11,747
Provision (benefit) for income taxes....................... (1,169) 171 9,517
---------------- --------------------- --------------
Income (loss) from continuing operations................... $ (6,714) $(2,888) $ 2,230
================ ===================== ==============
Income (loss) from continuing operations per common share(h):
Basic................................................. $ (0.05)
================
Diluted............................................... $ (0.05)
================
Weighted average number of shares(h):
Basic................................................. 148,312
Diluted............................................... 148,312
<CAPTION>
Amortization Other
of Pro Forma
Intangibles (d) Adjustments Pro Forma
------------------- ----------------- ----------------
<S> <C> <C> <C>
Net sales................................................ $ - $ - $971,064
Cost of sales............................................ - - 360,516
------------------- ----------------- ----------------
Gross profit............................................. - - 610,548
------------------- ----------------- ----------------
Selling, general and administrative expense.............. 1,667 - 347,210
Product development expense.............................. - - 136,197
Recapitalization and other related costs................. - - 27,942
Restructuring and other non-recurring charges............ - - 4,400
Amortization of intangibles.............................. 58,285 - 86,228
------------------- ----------------- ----------------
Total operating expenses................................. 59,952 - 601,977
------------------- ----------------- ----------------
Operating income.................................... (59,952) - 8,571
Interest expense......................................... - (21,081) (e) (93,498)
Interest income.......................................... - - 3,469
Other income (expense), net.............................. - - 1,572
------------------- ----------------- ----------------
Income (loss) from continuing operations before income taxes (59,952) (21,081) (79,886)
Provision (benefit) for income taxes..................... (4,334) (8,432) (f) (4,247)
------------------- ----------------- ----------------
Income (loss) from continuing operations................. $(55,618) $(12,649) $(75,639)
=================== ================= ================
Income (loss) from continuing operations per common share(h):
Basic............................................... $ (0.41)
================
Diluted............................................. $ (0.41)
================
Weighted average number of shares(h):
Basic............................................... 184,646
Diluted............................................. 184,646
</TABLE>
<PAGE>
NOTES TO UNAUDITED PRO FORMA
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands)
a. Dynatech Acquisitions and Divestitures
Acquisitions related to Continuing Operations
Sierra Design Labs
On September 10, 1999, Dynatech, through one of its wholly-owned
subsidiaries, purchased the outstanding stock of Sierra Design Labs ("Sierra"),
a Nevada Corporation for a total purchase price of $6,300 in cash. The
acquisition was accounted for using the purchase method of accounting and
resulted in $4,900 of goodwill, which is being amortized over ten years. The
operating results of Sierra have been included in Dynatech's consolidated
financial statements since September 10, 1999.
Applied Digital Access, Inc.
On November 1, 1999, Dynatech, through one of its wholly-owned subsidiaries,
acquired all the outstanding stock of Applied Digital Access, Inc. ("ADA") for a
total purchase price of approximately $81,000 in cash. The acquisition was
accounted for using the purchase method of accounting and resulted in $36,000 of
goodwill which is being amortized over three years. The operating results of ADA
have been included in Dynatech's consolidated financial statements since
November 1, 1999.
Divestitures related to Continuing Operations
DataViews Corporation
During June 2000, Dynatech sold the stock of DataViews Corporation
("DataViews"), located in Northampton, Massachusetts, for a sale price of
approximately $3,500 (before costs related to the divestiture including legal
and employee related costs of approximately $2,800). The gain on sale of the
business was not material.
6
<PAGE>
NOTES TO UNAUDITED PRO FORMA
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
(In thousands)
b. Pro Forma WWG
On May 23, 2000, Dynatech consummated the merger of one of its subsidiaries
with Wavetek Wandel Goltermann, Inc. ("WWG") pursuant to which WWG became one of
Dynatech's subsidiaries.
Set forth below is the unaudited balance sheet of WWG as of March 31, 2000,
which includes the effect of the divestitures of WWG's Precision Measurement
and Test Tools divisions, which occurred in January 2000.
<TABLE>
<CAPTION>
WWG Balance Sheet
as of
March 31, 2000
--------------
<S> <C>
ASSETS
Current assets:
Cash and cash equivalents...................................... $ 17,974
Accounts receivable, net....................................... 92,113
Inventories.................................................... 71,506
Other current assets........................................... 20,464
--------
Total current assets......................................... 202,057
Property and equipment, net...................................... 53,066
Intangible assets, net........................................... 136,903
Other assets..................................................... 5,457
--------
Total assets................................................. $397,483
========
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable and current portion of long-term debt............ $ 23,755
Other current liabilities...................................... 103,506
--------
Total current liabilities.................................... 127,261
Long-term debt................................................... 199,942
Pension liabilities.............................................. 33,455
Deferred compensation............................................ --
Other long-term liabilities...................................... 12,000
Common stock and additional paid-in capital...................... --
Other shareholders' equity ...................................... 24,825
--------
Total liabilities and shareholders' equity .................. $397,483
========
</TABLE>
7
<PAGE>
NOTES TO UNAUDITED PRO FORMA
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
(In thousands)
b. Pro Forma WWG--(continued)
Set forth below are the unaudited pro forma results of operations for WWG
for the twelve months ended March 31, 2000. The WWG results have been adjusted
to exclude the results of operations for the divestitures of the Precision
Measurement and Test Tools divisions, which occurred during January 2000.
WWG's fiscal year ends on September 30. The WWG historical information for
the twelve months ended March 31, 2000 has been derived from the Statement of
Operations for the year ended September 30, 1999 included in WWG's Form 10-K for
the year ended September 30, 1999, then adding the Statement of Operations for
the six months ended March 31, 2000, included in WWG's Form 10-Q for the period
ended March 31, 2000, and then subtracting the Statement of Operations for the
six months ended March 31, 1999, included in WWG's Form 10-Q for the period
ended March 31, 1999.
<TABLE>
<CAPTION>
Twelve Months Ended
March 31, 2000
--------------------------------
WWG WWG Pro Forma
Historical Divestiture WWG
---------- ----------- ---------
<S> <C> <C> <C>
Net sales.................................... $519,059 $(21,708) $497,351
Cost of sales................................ 205,598 (11,770) 193,828
-------- -------- --------
Gross profit................................. 313,461 (9,938) 303,523
-------- -------- --------
Selling, general and administrative expense.. 188,711 (7,984) 180,727
Product development expense.................. 71,055 (1,315) 69,740
Restructuring and other non-recurring
charges..................................... 4,400 -- 4,400
Amortization of intangibles.................. 18,765 -- 18,765
-------- -------- --------
Total operating expenses..................... 282,931 (9,299) 273,632
-------- -------- --------
Operating income........................... 30,530 (639) 29,891
Interest expense............................. (20,497) -- (20,497)
Interest income.............................. 769 -- 769
Other income, net............................ 1,584 -- 1,584
-------- -------- --------
Income from continuing operations before
income taxes................................ 12,386 (639) 11,747
Provision (benefit) for income taxes......... 9,773 (256) 9,517
-------- -------- --------
Income from continuing operations............ $ 2,613 $ (383) $ 2,230
======== ======== ========
</TABLE>
8
<PAGE>
NOTES TO UNAUDITED PRO FORMA
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
(In thousands)
c. Purchase Accounting Related to WWG Acquisition
<TABLE>
<S> <C>
Aggregate purchase price:
Cash in exchange for WWG stock..................................... $ 250,000
Cash in exchange for WWG options................................... 8,000
Dynatech Common Stock (approximately 14,987 shares)................ 130,000
---------
388,000
Add: Estimated acquisition costs................................... 20,000
---------
Total purchase price............................................. 408,000
Less: Pro Forma WWG net assets acquired (see Note (b))............... (24,825)
---------
Total purchase price in excess of net assets acquired............ 383,175
Estimated purchase accounting allocations:
Less: Inventory step-up to fair value.............................. (45,000)
Less: Fixed assets step-up to fair value........................... (10,000)
Less: Incremental completed technology acquired.................... (22,000)
Less: Incremental assembled workforce acquired..................... (33,000)
Less: In-process research and development acquired................. (100,000)
Add: Deferred tax liabilities...................................... 54,000
Add: WWG historical debt issuance costs not acquired............... 5,162
---------
Estimated incremental goodwill from acquisition.................. $ 232,337
=========
</TABLE>
9
<PAGE>
NOTES TO UNAUDITED PRO FORMA
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
(In thousands)
c. Purchase Accounting Related to WWG Acquisition--(continued)
The final allocation of the purchase price is dependent upon certain
valuations and other studies that are still in progress. The estimated purchase
price allocations are therefore preliminary, and have been presented solely for
the purpose of developing these pro forma statements. The final allocation of
the purchase price to be ultimately recorded in Dynatech's historical financial
statements may or may not be materially different than what has been presented
in these pro forma statements.
The estimated in-process research and development charge of $100,000 has
been included as an adjustment within the Unaudited Pro Forma Condensed
Consolidated Balance Sheet, but has not been included as an adjustment within
the Unaudited Pro Forma Condensed Consolidated Statement of Operations, as this
charge is non-recurring in nature.
For purposes of these pro forma statements, the estimated life of the WWG
related pro forma intangible assets is a blended life of six years. WWG
historical and pro forma intangible assets (adjusted as a result of the
acquisition) at March 31, 2000 are as follows:
<TABLE>
<CAPTION>
Pro Forma
WWG
Purchase Adjusted for
WWG Accounting Purchase
Historical Adjustments Accounting
---------- ----------- ------------
<S> <C> <C> <C>
Goodwill............................... $ 50,423 $232,337 $282,760
Completed technology................... 69,766 22,000 91,766
Assembled work force................... 6,250 33,000 39,250
Deferred issuance costs................ 5,162 (5,162) --
Other.................................. 5,302 -- 5,302
-------- -------- --------
$136,903 $282,175 $419,078
======== ======== ========
Pro forma amortization
expense............................. $ 69,846
========
</TABLE>
To the extent that the blended life of the intangibles changed from six
years to five years, total pro forma annual amortization expense would be
$83,816.
The estimated incremental increase related to the amortization of intangible
assets is as follows:
<TABLE>
<CAPTION>
Twelve Months
Ended
March 31,
2000
-------------
<S> <C>
Pro forma amortization expense................................. $ 69,846
Less: WWG historical amortization of intangible assets......... (18,765)
--------
Incremental pro forma amortization of intangible assets...... $ 51,081
========
</TABLE>
10
<PAGE>
NOTES TO UNAUDITED PRO FORMA
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
(In thousands)
d. Amortization of Intangibles and Depreciation
<TABLE>
<CAPTION>
Twelve Months
Ended
March 31, 2000
--------------
<S> <C>
Incremental pro forma amortization of intangible assets from WWG
acquisition.................................................... $ 51,081
Adjustments to reflect full year amortization of goodwill to
acquisitions consummated during the period, as discussed in
Note (a) (excludes amortization related to Husky acquisition,
which is reflected in discontinued operations segment) ....... 7,204
--------
58,285
Tax benefit related to incremental amortization of intangible
assets and deductible goodwill................................. (3,667)
--------
Net impact to continuing operations......................... $ 54,618
========
Incremental depreciation for fixed assets step-up............... $ 1,667
Tax benefit related to incremental depreciation................. (667)
--------
Net impact to continuing operations......................... $ 1,000
========
</TABLE>
11
<PAGE>
NOTES TO UNAUDITED PRO FORMA
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
(In thousands)
e. Restructuring of Debt
Upon consummation of the WWG merger, Dynatech refinanced the existing debt of
both Dynatech and WWG, as follows:
<TABLE>
<CAPTION>
Deferred Debt
Issuance
Debt Costs Interest Expense
--------- ------------- ----------------
As of As of Twelve Months
March 31, March 31, Ended
2000 2000 March 31, 2000
--------- ------------- ----------------
<S> <C> <C> <C>
Existing debt to be repaid:
Dynatech bank debt................. $(305,000) $ -- $ 21,454
Dynatech debt issuance costs for
bank debt......................... -- (10,330) 3,446
WWG senior subordinated debt, bank
debt and other debt, current and
long-term ........................ (193,000) -- 20,497
WWG debt issuance costs for bank
and other debt.................... -- 902
--------- -------- --------
(498,000) (10,330) 46,299
--------- -------- --------
New debt:
$860,000 Senior Credit Facility:
6 year amortizing term loan at an
assumed interest rate of 2.75%
plus LIBOR (9.05%)................ 175,000 -- (15,838)
Debt issuance costs (6 year
amortization)..................... -- 5,109 (852)
7.5 year term loan at an assumed
interest rate of 3.25% plus LIBOR
(9.55%)........................... 510,000 -- (48,705)
Debt issuance costs (7.5 year
amortization)..................... -- 14,891 (1,985)
--------- -------- --------
685,000 20,000 (67,380)
--------- -------- --------
Net addition to debt................. $ 187,000
=========
Net addition to debt issuance costs.. $ 9,670
========
Net addition to interest expense..... $(21,081)
========
</TABLE>
Upon the consummation of the merger with WWG, Dynatech will have borrowed
approximately $685,000 of the facility, leaving $175,000 available to be drawn
under a 6 year revolving credit facility, with an assumed interest rate of LIBOR
plus 2.75% (9.05%). A one percentage point change in LIBOR would result in an
annual change in interest expense of $6,850, excluding any effects under
Dynatech's swap contract.
In accordance with the terms of the WWG subordinated debt agreement, Dynatech
paid a penalty of approximately $9,000 due to the early termination of the WWG
debt. Such amount has been excluded from the Unaudited Pro Forma Condensed
Consolidated Statement of Operations as it is non-recurring in nature. For
historical financial statement purposes, this $9,000 ($5,400 on an after tax
basis) penalty will be presented as an extraordinary item on Dynatech's
statement of operations (see Note (g) for impact to cash).
12
<PAGE>
NOTES TO UNAUDITED PRO FORMA
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
(In thousands)
e. Restructuring of Debt--(continued)
For historical financial statement purposes, the $10,330 ($6,198, net of a
$4,132 tax benefit) of debt issuance costs of Dynatech at March 31, 2000 will
be written off and presented as an extraordinary item on Dynatech's statement of
operations. For pro forma purposes, this charge has been excluded from the
Unaudited Pro Forma Condensed Consolidated Statement of Operations, as it is
non-recurring in nature.
The impact upon other current liabilities is summarized as follows:
<TABLE>
<S> <C>
Increase in other current liabilities resulting from debt issuance
costs on new debt................................................................................. $20,000
Reduction in other current liabilities from the income tax benefit
associated with the write-off of debt issuance costs on debt to be
repaid............................................................................................ $(4,132)
-------
Net increase in other current liabilities resulting from the
restructuring of debt............................................................................. $15,868
=======
f. Tax Benefit on Interest Expense
<CAPTION>
Twelve Months
Ended
March 31, 2000
--------------
<S> <C>
Tax benefit related to incremental interest
expense at effective statutory rate of 40% (see
Note (e))......................................................................................... $(8,432)
=======
g. Proceeds from Sale of Stock
Sale of 12,500 shares of Dynatech common stock
to CD&R Fund V at $4.00 per share............................................................ $ 50,000
Sale of 30,625 shares of Dynatech common stock
to CD&R Fund VI at $4.00 per share........................................................... 122,500
Sale of 4,983 shares of Dynatech common stock
in Rights Offering to stockholders of record on April 20, 2000
(other than CD&R Fund V) at $4.00 per share.................................................. 19,932
--------
Gross cash proceeds........................................................................... 192,432
Transaction fees and expenses(1).............................................................. (40,000)
Payment, net of tax, for early retirement of WWG senior
subordinated debt (see Note (e))............................................................. (5,400)
--------
Net cash proceeds............................................................................. $147,032
========
</TABLE>
-----------------------
(1) In connection with the WWG merger and the concurrent establishment of
Dynatech's new Senior Secured Credit Facility, Dynatech incurred
approximately $40,000 of transaction related fees and expenses (as discussed
in Notes (c) and (e)), including $6,000 payable to Clayton, Dubilier & Rice,
Inc., an investment firm that manages Clayton, Dubilier & Rice Fund V
Limited Partnership and Clayton, Dubilier & Rice Fund VI Limited
Partnership, Dynatech's controlling shareholders for services provided in
connection with the WWG merger and the related financing.
<TABLE>
h. Weighted Average Number of Common Shares
<S> <C>
The unaudited pro forma per share amounts are based on the weighted
average number of common shares as set forth below:
Dynatech's historical weighted average number of common shares
for the twelve months ended March 31, 2000 (see Note J to Dynatech's
our consolidated financial statements)...................................................... 148,312
Issuance of Dynatech's common shares in the WWG
acquisition (see Note (c)).................................................................. 14,987
Sale of Dynatech's common shares to Clayton, Dubilier & Rice Fund V
Limited Partnership and Clayton, Dubilier & Rice Fund VI Limited
Partnership in connection with the WWG acquisition (see Note (g))........................... 43,125
Sale of Dynatech's common shares in the rights
offering (see Note (g))..................................................................... 4,983
Elimination of bonus element of rights offering included in the
historical weighted average number of common shares
for the twelve months ended March 31, 2000 (see Note J
to Dynatech's consolidated financial statements)............................................ (26,761)
--------
Pro forma weighted average number of shares................................................... 184,646
========
</TABLE>
All shares of common stock of Dynatech issuable upon the exercise of
options have been excluded from the calculation of pro forma income (loss) from
continuing operations per common share as their inclusion would be antidilutive.
13
<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.
DYNATECH CORPORATION
(Registrant)
Date: July 18, 2000 /s/ Mark V.B. Tremallo
-------------------------------
Name: Mark V.B. Tremallo
Title: Corporate Vice President, General
Counsel and Secretary
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