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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K/A(7)
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 4, 1995
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SPINNAKER INDUSTRIES, INC.
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Delaware 0-9559 06-0544125
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(State or other jurisdiction (Commission (IRS Employer
of Corporation) file Number) Identification No.)
600 N. Pearl St., Suite 2160, Dallas, Texas 75201
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (214) 855-0322
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(Former name or former address, if changed since last report)
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Item 7. FINANCIAL STATEMENTS AND EXHIBITS
This amends Form 8-K/A(7) filed by the Registrant on June 10, 1996, and
filed by the Registrant with respect to an event occurring on October 4, 1995.
The following pro forma financial information are contained herein:
(b) PRO FORMA UNAUDITED FINANCIAL INFORMATION
1. Pro Forma Combined Condensed Statements of Income for the Nine Months
ended September 30, 1995 and the Year Ended December 31, 1994
2. Notes to Pro Forma Combined Condensed Statements of Income
- Spinnaker Industries, Inc.
SIGNATURE
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.
Spinnaker Industries, Inc.
/s/ James W. Toman
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James W. Toman
Controller
Date: June 10, 1996
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SPINNAKER INDUSTRIES, INC.
<TABLE>
<CAPTION>
PRO FORMA COMBINED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited; dollars in thousands, except per share and average outstanding share amounts)
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Nine Months Ended September 30, 1995
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Pro Forma Pro Forma
SPINNAKER CPC Adjustments Total
<S> <C> <C> <C> <C>
NET SALES $77,716 $91,269 $168,985
COST OF SALES (67,740) (75,071) $485 (3)
425 (4)
184 (5) (141,717)
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GROSS PROFIT 9,976 16,198 1,094 27,268
SELLING, ADMINISTRATIVE (7,473) (11,731) 92 (3)
AND GENERAL 32 (5)
(865) (6)
1,333 (7) (18,612)
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INCOME FROM OPERATIONS 2,503 4,467 1,686 8,656
OTHER INCOME 13 13
(500) (8)
INTEREST EXPENSE (1,942) (6,112) (9) (8,554)
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INCOME BEFORE TAXES 574 4,467 (4,926) 115
INCOME TAX BENEFIT (PROVISION) 43 (1,768) 1,957 (10) 232
MINORITY INTEREST (146) (146)
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NET INCOME $471 $2,699 ($2,969) $201
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Pro Forma Per Share Data: $0.21 $0.09
Earnings Per Share
Weighted average shares and common
stock equivalents outstanding 2,209,705 2,209,705
</TABLE>
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SPINNAKER INDUSTRIES, INC.
<TABLE>
<CAPTION>
PRO FORMA COMBINED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited; dollars in thousands, except per share and average outstanding share amounts)
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Year Ended December 31, 1994
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Pro Forma Pro Forma
SPINNAKER (1) CPC (2) Adjustments Total
<S> <C> <C> <C> <C>
NET SALES $98,102 $108,842 $206,944
COST OF SALES (86,559) (90,239) $646 (3)
(236) (4)
473 (5) (175,915)
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GROSS PROFIT 11,543 18,603 883 31,029
SELLING, ADMINISTRATIVE (7,247) (13,924) 123 (3)
AND GENERAL 83 (5)
(1,150) (6)
2,351 (7) (19,764)
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INCOME FROM OPERATIONS 4,296 4,679 2,290 11,265
OTHER INCOME 31 31
(500) (8)
INTEREST EXPENSE (2,434) (7,822) (9) (10,756)
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INCOME BEFORE TAXES 1,893 4,679 (6,032) 540
INCOME TAX BENEFIT (PROVISION) (727) (1,825) 2,331 (10) (221)
MINORITY INTEREST (347) (347)
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NET INCOME $819 $2,854 ($3,701) ($28)
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Pro Forma Per Share Data: $0.37 ($0.01)
Earnings Per Share
Weighted average shares and common
stock equivalents outstanding 2,209,705 2,209,705
</TABLE>
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SPINNAKER INDUSTRIES, INC.
Notes to Pro Forma Combined Condensed Statements of Income
(1) The historical financial statements of Spinnaker for the year ended
December 31, 1994 include on a pro forma basis, the results of operations
of Spinnaker's 81% owned subsidiary, Brown-Bridge Industries, Inc., for the
period from January 1, 1994 through September 19, 1994 (date of acquisition
of Brown-Bridge) as if it were acquired as of January 1, 1994. Included in
Spinnaker's results of operations are $64,470,000 of net sales and $909,000
of net income related to Brown-Bridge for such period on a pro forma basis.
(2) Historical financial statements of CPC are for its fiscal year ended
September 30, 1994.
(3) Rent expense and property taxes associated with the Linden plant which was
closed by seller in 1995 and was not acquired. Sales previously supplied
by the Linden plant will be fulfilled from the acquired facilities.
(4) Adoption of the first-in, first-out method of inventory valuation from the
last-in, first-out (LIFO) method.
(5) Depreciation adjustment on acquired plant, property and equipment,
including depreciation of the leased facility to be purchased from seller.
(6) Amortization of goodwill over a period of 25 years.
(7) Reduction of management and royalty fees and warehouse rentals paid by CPC
to its parent.
(8) Guaranty fee payable to Spinnaker's parent (Lynch Corporation) in
connection with acquisition indebtedness. Lynch owns 83% of Spinnaker's
outstanding stock and has agreed to guarantee a $25 million note payable to
Alco for a four month period at .5% of the principal amount per month
($125,000 per month).
(9) Interest expense and amortization of deferred financing fees on debt
incurred in connection with the acquisition. Approximately $52 million of
the debt bears interest at a floating rate. A 1% change in the index would
increase (decrease) interest expense $520,000 on an annualized basis.
(10) Tax effect on pro forma combined earnings at Spinnaker's effective rate.
