<PAGE> 1
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UNITED STATES
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): MAY 15, 1998
EVI, INC.
(Exact name of registrant as specified in charter)
DELAWARE 1-13086 04-2515019
(State of Incorporation) (Commission File No.) (I.R.S. Employer
Identification No.)
5 POST OAK PARK, SUITE 1760,
HOUSTON, TEXAS 77027-3415
(Address of Principal Executive Offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (713) 297-8400
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ITEM 5. OTHER EVENTS.
PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The following tables set forth certain summary unaudited pro forma
condensed consolidated financial data of EVI, Inc., a Delaware corporation
("EVI" or the "Company"), and is based on the historical financial data of EVI,
Weatherford Enterra, Inc. ("Weatherford"), Christiana Companies, Inc.
("Christiana"), Trico Industries, Inc. ("Trico"), BMW Monarch (Lloydminster)
Ltd. ("BMW Monarch") and BMW Pump Inc. (together, "BMW") and the assets of
GulfMark International, Inc. acquired by EVI on May 1, 1997 (the "GulfMark
Retained Assets"). The Unaudited Pro Forma Condensed Consolidated Financial
Statements of EVI have been prepared assuming the proposed merger of Weatherford
with and into EVI (the "Merger"), pursuant to an Agreement and Plan of Merger
dated as of March 4, 1998, as amended, between EVI and Weatherford, is accounted
for as a pooling of interests and give effect to the proposed Merger by
combining EVI's and Weatherford's results of operations for the quarterly
periods ended March 31, 1997 and 1998 on a pooling-of-interests basis as if EVI
and Weatherford had been combined since inception. The Unaudited Adjusted Pro
Forma Condensed Consolidated Statement of Income for the quarterly period ended
March 31, 1998, further gives effect to EVI's proposed acquisition of Christiana
through a merger of a subsidiary of EVI with and into Christiana ("Christiana
Acquisition") pursuant to an Agreement and Plan of Merger dated December 12,
1996 (the "Christiana Merger Agreement"), by and among EVI, Christiana and C2,
Inc., a Wisconsin corporation ("C2"), and the sale by Christiana, prior to the
Christiana Acquisition, of two-thirds of its interest in Total Logistic Control,
LLC ("Logistic"), a wholly owned subsidiary of Christiana, to C2 for
approximately $10.7 million, and also reflects (i) the acquisition by EVI on May
1, 1997, of the GulfMark Retained Assets, (ii) the issuance and sale of EVI's 5%
Convertible Subordinated Preferred Equivalent Debentures due 2027 (the
"Debentures") on November 10, 1997, (iii) the acquisition by EVI on December 15,
1997, of $119,980,000 principal amount of EVI's outstanding 10 1/4% Senior Notes
due 2004 and 10 1/4% Senior Notes due 2004, Series B (collectively, the "Notes")
from the holders of the Notes pursuant to a cash tender offer and consent
solicitation of the Company (the "Tender Offer"), (iv) EVI's acquisition of
Trico on December 2, 1997, and (v) EVI's acquisition of BMW on December 3, 1997,
as if these transactions had occurred on January 1, 1997. The Unaudited Adjusted
Pro Forma Condensed Consolidated Balance Sheet presents the combined financial
position of EVI and Weatherford and gives effect to EVI's proposed acquisition
of Christiana as if these transactions had occurred on March 31, 1998. The pro
forma amounts presented do not include transaction costs related to the Merger
which are estimated to be approximately $25 million and other costs directly
attributable to the Merger which, in the aggregate, are expected to be between
$90 million and $110 million.
The pro forma information set forth below is not necessarily indicative
of the results that actually would have been achieved had such transactions been
consummated as of the aforementioned dates, or that may be achieved in the
future. All other 1997 and 1998 acquisitions by EVI are not material
individually or in the aggregate with same-year acquisitions; therefore, pro
forma information is not reflected. This information should be read in
conjunction with EVI's Management's Discussion and Analysis of Financial
Condition and Results of Operations contained in its Annual Report on Form 10-K,
as amended, for the year ended December 31, 1997, and in its Quarterly Report on
Form 10-Q for the quarterly period ended March 31, 1998, and EVI's, GulfMark
Retained Assets', Trico's, BMW's, Christiana's and Weatherford's financial
statements and related notes thereto, all of which have been previously filed.
Page 2
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PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 1998
(In thousands)
<TABLE>
<CAPTION>
Pro Forma
Adjustments
------------------------- EVI
EVI Christiana Sale of Merger Pro Forma
Historical Historical Logistic(a) Entries Pre Merger
------------- -------------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents ....................... $ 25,182 $ 5,290 $ 33,303 (b) $(21,673)(c)(d) $ 42,102
Accounts receivable, net ....................... 270,320 8,169 (8,169) -- 270,320
Inventories .................................... 316,202 -- -- -- 316,202
Prepaid expenses and other ..................... 63,453 1,734 (1,734) -- 63,453
---------- -------- -------- -------- ----------
Total current assets ....................... 675,157 15,193 23,400 (21,673) 692,077
---------- -------- -------- -------- ----------
Property, plant and equipment, net ............. 327,816 72,301 (72,301) -- 327,816
Goodwill, net .................................. 493,470 5,475 (5,475) -- 493,470
Investment in EVI .............................. -- 47,268 -- (47,268)(e) --
Investment in Logistic ......................... -- -- 7,976 (f) (2,847)(g) 5,129
Other assets ................................... 54,015 2,527 (2,527) -- 54,015
---------- -------- -------- -------- ----------
$1,550,458 $142,764 $(48,927) $(71,788) $1,572,507
========== ======== ======== ======== ==========
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings and current
portion of long-term debt ..................... 143,496 1,404 (1,404) -- 143,496
Accounts payable ............................... 148,501 4,081 (4,081) -- 148,501
Other accrued liabilities ...................... 129,262 4,815 1,921 (h) 1,373 (d)(i) 137,371
---------- -------- -------- -------- ----------
Total current liabilities .................. 421,259 10,300 (3,564) 1,373 429,368
---------- -------- -------- -------- ----------
Long-term debt ................................. 42,075 31,167 (31,167) -- 42,075
Deferred income taxes and other ............... 95,624 24,699 (10,797)(h) 38 (e)(j) 109,564
5% Convertible Subordinated
Preferred Equivalent Debentures ............... 402,500 -- -- -- 402,500
Shareholders' equity
Common stock ................................... 52,674 5,209 -- (1,312)(d)(k)(l) 56,571
Capital in excess of par ....................... 441,767 12,346 -- 144,527 (d)(k)(l) 598,640
Retained earnings .............................. 263,220 60,279 (3,399) (56,880)(d)(l) 263,220
Cumulative foreign currency
translation adjustment ........................ (16,059) -- -- -- (16,059)
Treasury stock, at cost ........................ (152,602) (1,236) -- (159,534)(k)(l) (313,372)
---------- -------- -------- -------- ----------
Total stockholders' equity ................. 589,000 76,598 (3,399) (73,199) 589,000
---------- -------- -------- -------- ----------
$1,550,458 $142,764 $(48,927) $(71,788) $1,572,507
========== ======== ======== ======== ==========
</TABLE>
<TABLE>
<CAPTION>
Pro Forma
Adjustments
--------------
Weatherford Weatherford Pro Forma
Historical Merger Post Merger
-------------- ------------- --------------
<S> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents ...................................... $ 17,318 $ -- $ 59,420
Accounts receivable, net ...................................... 267,991 -- 538,311
Inventories ................................................... 183,583 -- 499,785
Prepaid expenses and other .................................... 37,746 -- 101,199
----------- ----------- -----------
Total current assets ...................................... 506,638 -- 1,198,715
----------- ----------- -----------
Property, plant and equipment, net ............................ 562,440 -- 890,256
Goodwill, net ................................................. 263,466 -- 756,936
Investment in EVI ............................................. -- -- --
Investment in Logistic ........................................ -- -- 5,129
Other assets .................................................. 33,215 -- 87,230
----------- ----------- -----------
$ 1,365,759 $ -- $ 2,938,266
=========== =========== ===========
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings and current
portion of long-term debt .................................... $ 4,547 $ -- $ 148,043
Accounts payable .............................................. 54,942 -- 203,443
Other accrued liabilities ..................................... 126,633 -- 264,004
----------- ----------- -----------
Total current liabilities ................................. 186,122 -- 615,490
----------- ----------- -----------
Long-term debt ................................................ 210,452 -- 252,527
Deferred income taxes and other ............................... 42,411 -- 151,975
5% Convertible Subordinated
Preferred Equivalent Debentures .............................. -- -- 402,500
Shareholders' equity
Common stock .................................................. 5,277 43,556 (m) 105,404
Capital in excess of par ...................................... 653,898 (94,084)(m) 1,158,454
Retained earnings ............................................. 343,703 -- 606,923
Cumulative foreign currency
translation adjustment ....................................... (25,576) -- (41,635)
Treasury stock, at cost ....................................... (50,528) 50,528 (m) (313,372)
----------- ----------- -----------
Total stockholders' equity ................................ 926,774 -- 1,515,774
----------- ----------- -----------
$ 1,365,759 $ -- $ 2,938,266
=========== =========== ===========
</TABLE>
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UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
1998(n) 1997(n)
------------ ------------
<S> <C> <C>
Revenues:
Products.................................................. $ 377,007 $ 229,936
Services and rentals...................................... 196,453 201,317
------------ ------------
573,460 431,253
------------ ------------
Costs and expenses:
Cost of sales
Products............................................... 255,713 169,337
Services and rentals................................... 126,459 136,754
Selling, general and administrative....................... 81,468 57,783
------------ ------------
463,640 363,874
------------ ------------
Operating income.............................................. 109,820 67,379
------------ ------------
Other income (expense):
Interest expense.......................................... (12,011) (10,545)
Interest income........................................... 648 3,280
Equity in earnings of unconsolidated
affiliates............................................. 780 509
Other income (expense), net............................... (1,275) (2,002)
------------ ------------
(11,858) (8,758)
------------ ------------
Income before income taxes.................................... 97,962 58,621
Provision for income taxes.................................... 36,819 20,718
------------ ------------
Income from continuing operations............................. $ 61,143 $ 37,903
============ ============
Earnings per share from continuing operations:
Basic(o).................................................. $ 0.63 $ 0.40
============ ============
Diluted(o)................................................ $ 0.63 $ 0.39
============ ============
Basic weighted average shares outstanding
Basic..................................................... 96,761 95,302
============ ============
Diluted................................................... 97,625 96,704
============ ============
</TABLE>
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UNAUDITED ADJUSTED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 1998
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
PRO FORMA
ADJUSTMENT
----------
EVI
EVI CHRISTIANA PRO FORMA
HISTORICAL HISTORICAL CHRISTIANA(p) PRE MERGER
---------- ---------- ------------- ----------
<S> <C> <C> <C> <C>
Revenues:
Products ................................................... $ 316,840 $ 21,865 $ (21,865) 316,840
Service and rentals ........................................ -- -- -- --
--------- -------- --------- ---------
316,840 21,865 $ (21,865) 316,840
--------- -------- --------- ---------
Costs and expenses:
Cost of sales
Products .............................................. 214,581 18,526 (18,526) 214,581
Services and rentals .................................. -- -- -- --
Selling, general and administrative ........................ 46,937 2,273 (2,273) 46,937
--------- -------- --------- ---------
261,518 20,799 (20,799) 261,518
--------- -------- --------- ---------
Operating income ................................................ 55,322 1,066 (1,066) 55,322
Other income (expense):
Interest expense ........................................... (7,993) (658) 658 (7,993)
Interest income ............................................ 168 101 (101) 168
Equity in earnings of EVI .................................. -- 2,564 (2,564)(s) --
Equity in earnings of Logistic ............................. -- -- 94 94
Equity in earnings of unconsolidated affiliates ............ -- -- -- --
Other income (expense), net ................................ 621 (72) 72 621
--------- -------- --------- ---------
(7,204) 1,935 (1,841) (7,110)
--------- -------- --------- ---------
Income (loss) before income taxes ............................... 48,118 3,001 (2,907) 48,212
Provision (benefit) for income taxes ............................ 16,841 1,168 (1,164)(t) 16,845
--------- -------- --------- ---------
Income (loss) from continuing operations ........................ $ 31,277 $ 1,833 $ (1,743) $ 31,367
========= ======== ========= =========
Earnings per share from continuing operations:
Basic ...................................................... $ 0.66 $ 0.66
========= =========
Diluted .................................................... $ 0.65 $ 0.65
========= =========
Weighted average share outstanding
Basic ...................................................... 47,732 47,732
========= =========
Diluted .................................................... 48,333 48,333
========= =========
</TABLE>
<TABLE>
<CAPTION>
PRO FORMA
ADJUSTMENT
----------
EVI
WEATHERFORD WEATHERFORD PRO FORMA
HISTORICAL MERGER POST MERGER
---------- --------- -----------
<S> <C> <C> <C>
Revenues:
Products ................................................... $ 63,276 $ (3,109)(q) $ 377,007
Service and rentals ........................................ 196,453 -- 196,453
--------- --------- ---------
259,729 $ (3,109) 573,460
--------- --------- ---------
Costs and expenses:
Cost of sales
Products .............................................. 43,287 (2,155)(q) 255,713
Services and rentals .................................. 126,459 -- 126,459
Selling, general and administrative ........................ 31,899 2,632 (r) 81,468
--------- --------- ---------
201,645 477 463,640
--------- --------- ---------
Operating income ................................................ 58,084 (3,586) 109,820
Other income (expense):
Interest expense ........................................... (4,018) -- (12,011)
Interest income ............................................ 480 -- 648
Equity in earnings of EVI .................................. -- -- --
Equity in earnings of Logistic ............................. -- -- 94
Equity in earnings of unconsolidated affiliates ............ 780 -- 780
Other income (expense), net ................................ (4,528) 2,632 (r) (1,275)
--------- --------- ---------
(7,286) 2,632 (11,764)
--------- --------- ---------
Income (loss) before income taxes ............................... 50,798 (954) 98,056
Provision (benefit) for income taxes ............................ 20,311 (333)(t) 36,823
--------- --------- ---------
Income (loss) from continuing operations ........................ $ 30,487 $ (621) $ 61,233
========= ========= =========
Earnings per share from continuing operations:
Basic ...................................................... $ 0.63 (o)
=========
Diluted .................................................... $ 0.63 (o)
=========
Weighted average share outstanding
Basic ...................................................... 96,761 (u)
=========
Diluted .................................................... 97,625 (u)
=========
</TABLE>
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NOTES TO PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
GENERAL
The following notes set forth the assumptions used in preparing the
unaudited pro forma financial statements. The pro forma adjustments are based on
estimates made by EVI's management using information currently available.
PRO FORMA ADJUSTMENTS
The adjustments to the accompanying Unaudited Pro Forma Condensed
Consolidated Balance Sheet are described below:
(a) To reflect the sale of a two-thirds interest in Logistic by
Christiana to C2 for cash of $10.67 million and to reflect a $3.4 million
loss, net of taxes, due to the purchase price being less than the $16.2
million carrying value of the interest in Logistic. Such sale is in
accordance with the Christiana Merger Agreement as (i) Logistic is required
to distribute $23.4 million to Christiana, funded from borrowings of
Logistic to permit Christiana to have sufficient cash to allow EVI to pay
the cash consideration contemplated by the Christiana Acquisition, (ii)
Christiana is to sell its two-thirds interest in Logistic to C2 for $10.67
million and (iii) EVI is required to pay to the Christiana shareholders an
amount of cash equal to the cash of Christiana at the closing of the
Christiana Acquisition less $10.0 million and the amount of certain
liabilities and tax benefits to be maintained by Christiana for the benefit
of EVI.
(b) To reflect an increase in Christiana's cash of $23.0 million from
a dividend from Logistic funded through Logistic's borrowings to meet the
required minimum cash levels per the Christiana Merger Agreement, and to
reflect the cash to Christiana of $10.67 million from its sale of the
two-thirds interest in Logistic less $0.4 million of cash held by Logistic.
(c) To reflect the cash payment by EVI of $20.6 million or $3.97 per
share to the holders of common stock of Christiana pursuant to the
Christiana Merger Agreement. The pro forma cash payment by EVI of $3.97 per
share is based on pro forma data for the period presented herein; however,
Christiana currently expects that such payment will be approximately $3.60
per share. The difference of $0.37 per share relates to timing differences
for cash expenditures, including taxes, for the period from January 1,
1998, to closing, not reflected in the historical financial information of
Christiana presented herein.
(d) To reflect the exercise of Christiana employee stock options
relating to 53,334 shares of Christiana Common Stock for $1.4 million in
cash and the cancellation of Christiana employee stock options for $2.5
million in cash. The exercise and cancellation of Christiana employee stock
options generates a tax benefit of $1.1 million. Cash in this amount is
required to be retained by Christiana for the benefit of EVI.
(e) To eliminate Christiana's investment in EVI and related deferred
taxes.
(f) To reflect the remaining one-third interest in Logistic held by
Christiana. The investment represents a one-third interest of the net book
value of Logistic.
(g) Prior to Christiana's sale of its two-thirds interest in Logistic,
the pro forma net book value of Logistic was $24.2 million. After the sale
of Christiana's two-thirds interest in Logistic, the remaining net book
value of Logistic is $8.0 million. EVI reflects a reduction of $2.8 million
in the carrying value of Christiana's remaining one-third interest in
Logistic reflecting the excess fair value of the net tangible post merger
assets of Christiana over the cash and stock consideration being paid to
the Christiana shareholders.
(h) To reclassify certain deferred tax liabilities of $8.9 million to
current federal taxes payable as a result of the sale by Christiana of its
two-thirds interest in Logistic.
(i) To record a $2.5 million liability for transaction costs related
to the Christiana Acquisition.
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NOTES TO PRO FORMA CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
(j) To record a $10.0 million EVI liability to the Christiana
shareholders payable in five years pursuant to the Christiana Merger
Agreement.
(k) To reflect the issuance of 3,897,462 shares of EVI Common Stock in
the Christiana Acquisition at a price of $41.25 per share, the market price
of the EVI Common Stock on December 15, 1997, and the acquisition of
3,897,462 shares of EVI Common Stock held by Christiana as a result of the
Christiana Acquisition. The shares of EVI Common Stock held by Christiana
have been classified as treasury shares.
(l) To eliminate the remaining Christiana Common Stock of $5.3
million, capital in excess of par of $14.9 million, retained earnings of
$52.9 million and treasury stock of $1.2 million.
(m) Reflects the issuance of 48,832,815 shares of EVI Common Stock in
exchange for all 51,402,963 shares of Weatherford Common Stock outstanding
at March 31, 1998, based upon the conversion rate of .95 of a share of EVI
Common Stock for each share of Weatherford Common Stock. The difference
between the par value of Weatherford Common Stock exchanged and the par
value of the EVI Common Stock issued upon consummation of the Weatherford
Merger is reflected as a decrease in paid-in capital. Weatherford treasury
stock as of March 31, 1998 is reflected as a decrease in paid-in capital.
The adjustments to the accompanying Unaudited Pro Forma Condensed
Consolidated Statement of Income are described below:
(n) The Unaudited Pro Forma Condensed Consolidated Statements of
Income of EVI and Weatherford Combined are based on the consolidated
financial statements of EVI and Weatherford. Pro forma adjustments include
the elimination of intercompany revenues of $3.1 million and $0.5 million,
respectively, and cost of sales of $2.2 million and $0.5 million,
respectively, for the three months ended March 31, 1998 and 1997. Pro forma
adjustments for the three months ended March 31, 1997 also include the
elimination of expenses of $0.9 million recorded by Weatherford on the sale
of Arrow Completion Systems, Inc. to EVI in December 1996. Certain amounts
have been reclassified to conform presentation.
(o) The pro forma earnings per share from continuing operations is
computed on the basis of the combined weighted average number of common
shares of EVI and Weatherford for each period presented based upon the
conversion rate of .95 of a share of EVI Common Stock for each share of
Weatherford Common Stock as provided in the Weatherford Merger.
(p) To eliminate Logistic's historical operating results, to reflect a
one-third equity interest in Logistic and to record the income tax
provision related to the one-third equity interest at the statutory rate.
(q) Reflects the elimination of intercompany revenues of $3.1 million
and cost of sales of $2.2 million.
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NOTES TO PRO FORMA CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
(r) Reflects the reclassification of certain Weatherford historical
amounts to conform to EVI's presentation.
(s) To eliminate Christiana's equity in earnings of EVI.
(t) To record the income tax provision (benefit) related to the
effect of the pro forma adjustments at the statutory rate.
(u) EVI's historical shares outstanding, pro forma post-merger shares
outstanding and basic weighted average pro forma post-merger shares
outstanding as of March 31, 1998, were 47,877,546, 96,710,361 and
96,761,171, respectively. Weatherford's historical shares outstanding at
March 31, 1998, was 51,402,963.
Page 8
<PAGE> 9
RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth the unaudited ratio of earnings to fixed
charges of the Company for the periods indicated. The unaudited pro forma ratio
of earnings to fixed charges of the Company give effect to (i) the acquisition
by the Company of GulfMark International, Inc. and its assets as of the date of
acquisition on May 1, 1997 (the "GulfMark Retained Assets"), (ii) the issuance
and sale of the Company's Debentures, (iii) the acquisition by the Company on
December 15, 1997, of $119,980,000 principal amount of the Company's outstanding
10 1/4% Senior Notes due 2004 and 10 1/4% Senior Notes due 2004, Series B
(collectively, the "Notes") from the holders of the Notes pursuant to a cash
tender offer and consent solicitation of the Company, (iv) the Company's
acquisition of Trico Industries, Inc. ("Trico") on December 2, 1997, (v) the
Company's acquisition of BMW Monarch (Lloydminster) Ltd. and BMW Pump Inc.
(collectively, "BMW") on December 3, 1997, (vi) the proposed Weatherford Merger
and (vii) the proposed Christiana Acquisition as if these transactions had
occurred on January 1, 1997.
The pro forma information set forth below is not necessarily indicative
of the results that actually would have been achieved had such transactions been
consummated as of January 1, 1997, or that may be achieved in the future. All
other 1997 and 1998 acquisitions by the Company are not material individually or
in the aggregate with same-year acquisitions; therefore, pro forma information
is not reflected. This information should be read in conjunction with the
Company's Management's Discussion and Analysis of Financial Condition and
Results of Operations contained in its Annual Report on Form 10-K, as amended,
for the year ended December 31, 1997, and in its Quarterly Report on Form 10-Q
for the quarterly period ended March 31, 1998, and the Company's, GulfMark
Retained Assets', Trico's, BMW's, Christiana's and Weatherford's financial
statements and related notes thereto, all of which have been previously filed.
<TABLE>
<CAPTION>
Historical Pro Forma
------------------ ------------
Three Months Three Months
Ended Ended
March 31, March 31,
------------------- ---------
1997 1998 1998
-------- -------- --------
<S> <C> <C> <C>
Income (loss) from continuing operations
before income taxes and extraordinary
items ................................... $ 22,240 $ 48,118 $ 98,056
Fixed charges:
Interest expense(a) ..................... 4,411 7,993 12,011
Interest factor portion of rentals(b) ... 583 939 2,325
-------- -------- --------
Total fixed charges ................. 4,994 8,932 14,336
Earnings before income taxes and fixed
charges ................................. $ 27,234 $ 57,050 $112,392
======== ======== ========
Ratio of earnings to fixed charges ........ 5.45 6.39 7.84
======== ======== ========
</TABLE>
(a) Interest expense consists of interest expense incurred from continuing
operations and amortization of debt issuance costs.
(b) Interest factor portion of rentals is estimated to be one third of
rental expense.
For purposes of calculating the ratio of earnings to fixed charges, (i)
earnings consist of income (loss) from continuing operations before income taxes
and extraordinary items plus fixed charges and (ii) fixed charges consist of
interest expense incurred from continuing operations, amortization of debt
expense relating to any indebtedness and one third of rental expense estimated
to be attributable to interest.
Page 9
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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.
EVI, INC.
Dated: May 15, 1998 /s/ Frances R. Powell
---------------------------------------
Frances R. Powell
Vice President, Accounting
and Controller
Page 10
