<PAGE>
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No. )
Filed by the Registrant /X/
Filed by a Party other than the Registrant / /
Check the appropriate box:
/ / Preliminary Proxy Statement
/ / Confidential, for Use of the Commission Only (as permitted by Rule
14a-6(e)(2))
/ / Definitive Proxy Statement
/X/ Definitive Additional Materials
/ / Soliciting Material Pursuant to Section 240.14a-11(c) or Section
240.14a-12
DOSKOCIL COMPANIES INCORPORATED
- --------------------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
/ / $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1), 14a-6(i)(2) or
Item 22(a)(2) of Schedule 14A.
/ / $500 per each party to the controversy pursuant to Exchange Act Rule
14a-6(i)(3).
/ / Fee computed on table below per Exchange Act Rules 14a-6(i)(4)
and 0-11.
1) Title of each class of securities to which transaction applies:
------------------------------------------------------------------------
2) Aggregate number of securities to which transaction applies:
------------------------------------------------------------------------
3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the
filing fee is calculated and state how it was determined):
------------------------------------------------------------------------
4) Proposed maximum aggregate value of transaction:
------------------------------------------------------------------------
5) Total fee paid:
------------------------------------------------------------------------
/X/ Fee paid previously with preliminary materials.
/ / Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its filing.
1) Amount Previously Paid:
------------------------------------------------------------------------
2) Form, Schedule or Registration Statement No.:
------------------------------------------------------------------------
3) Filing Party:
------------------------------------------------------------------------
4) Date Filed:
------------------------------------------------------------------------
<PAGE>
SUPPLEMENT NO. ONE
(DATED MAY 5, 1995)
TO
PROXY STATEMENT/PROSPECTUS
(DATED APRIL 10, 1995)
---------------------------------
DOSKOCIL COMPANIES INCORPORATED
NEW DOSKOCIL INCORPORATED
(TO BE KNOWN AS FOODBRANDS AMERICA, INC.)
---------------------------------
RECENT EVENTS
On May 1, 1995, the Company announced that it had entered into an agreement
to sell the assets representing its Retail Division to Thorn Apple Valley, Inc.
for cash and the assumption of certain related liabilities. The sale is
scheduled to close on May 30, 1995. The net proceeds of approximately $64
million will be used to retire a portion of the Company's existing bank debt and
to pay expenses of the transaction (the "Disposition"). The agreement also
includes a five year earnout of up to an additional $10 million upon achievement
of certain incentive targets.
As a result of the Disposition, the Company's revenue will be reduced by the
division's sales, which were approximately $238 million in 1994. Return on sales
at both the operating income and EBITDA levels are expected to increase
significantly. Interest expense will be reduced as $64 million of long-term debt
will be removed from the balance sheet. The Company expects to write off
approximately $65 million of post bankruptcy intangibles associated with the
Retail Division.
On May 3, 1995, the Company announced results from continuing operations for
the quarter ended April 1, 1995. Sales for the quarter were $139.4 million, an
increase of 48% over the $94.3 million for the same period last year. Operating
income for the quarter was $7.8 million compared to $1.2 million in 1994. Net
income from continuing operations was $1.8 million, compared to a loss of $0.4
million for the year-ago quarter. Earnings per share from continuing operations
were $0.14 versus a loss of $.06 for the 1994 first quarter. The 1995 results
include the Specialty Brands Division acquired from International Multifoods
Corporation in June, 1994.
The results of the Retail Division are accounted for as discontinued
operations. Earnings from discontinued operations were a loss of $2.4 million,
or ($0.19) per share, compared to breakeven in the 1994 quarter. Results
included goodwill, interest and taxes associated with the Retail Division.
PRO FORMA FINANCIAL INFORMATION
The pro forma condensed consolidated statement of operations for the fiscal
year ended December 31, 1994 has been prepared assuming the Specialty Brands
acquisition which was consummated on June 1, 1994, the Rights Offering which was
completed in October 1994 and the Disposition had occurred on January 2, 1994
and that the net proceeds from the Rights Offering and the Disposition were used
to repay indebtedness under the term loan agreement. The pro forma condensed
consolidated statement of operations includes the historical consolidated
results of the Company for the fiscal year ended December 31, 1994 less the
historical results of the Retail Division for the same period and the historical
results of operations of the Specialty Brands Division for the five months ended
May 31, 1994 and the related pro forma adjustments.
The pro forma condensed consolidated statement of operations for the quarter
ended April 1, 1995 has been prepared assuming the Disposition had occurred on
January 2, 1994 and that the net proceeds from the Disposition had been used to
repay indebtedness under the term loan agreement.
<PAGE>
The pro forma condensed consolidated statement of operations includes the
historical consolidated results of the Company less the historical results of
the Retail Division for the quarter ended April 1, 1995, and the related pro
forma adjustments.
The pro forma results of operations are not necessarily indicative of
results of operations that would have resulted had the Disposition actually
occurred on January 2, 1994 nor are they necessarily indicative of future
results of operations. As a result of the pro forma assumption that the sale
took place at the beginning of the earliest period presented, the pro forma
interest expense and amortization of intangibles will not agree with that
presented in the historical financial statement.
The pro forma condensed consolidated balance sheet has been prepared
assuming the Disposition had been consummated on April 1, 1995 and reflects the
historical consolidated accounts of the Company less the historical accounts of
the Retail Division as of April 1, 1995 and the related pro forma adjustments.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FISCAL YEAR ENDED DECEMBER 31, 1994
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
PRO FORMA ADJUSTMENTS
-------------------------- PRO FORMA
OTHER OPERATIONS
HISTORICAL ------------ ---------------
-------------------------
COMPANY SPECIALTY RETAIL
------------ BRANDS DIVISION (A)
(FOR THE ----------- ------------
YEAR ENDED (FOR THE (FOR THE
DECEMBER 31, FIVE MONTHS YEAR ENDED
1994) ENDED MAY DECEMBER 31,
31, 1994) 1994)
<S> <C> <C> <C> <C> <C>
Net sales............................... $ 750,660 $ 78,914 $ (238,308) $ $ 591,266
Cost of sales........................... 604,251 56,905 (194,133) (854)(b) 466,169
------------ ----------- ------------ ---------------
Gross profit............................ 146,409 22,009 (44,175) 125,097
Operating expenses:
Selling............................... 91,308 15,974 (39,143) 68,139
General and administrative............ 27,499 1,814 (3,348) (12)(b) 25,953
Amortization of intangible assets..... 7,365 677 (3,242) 159(c) 4,383
(576)(d)
Provision for restructuring and
integration.......................... 12,500 (1,914) 10,586
------------ ----------- ------------ ---------------
Total............................... 138,672 18,465 (47,647) 109,061
------------ ----------- ------------ ---------------
Operating income (loss)................. 7,737 3,544 3,472 16,036
Other income (expense):
Interest and financing costs.......... (20,173) (7) 5,071 2,555(e) (15,426)
(3,600)(f)
728(g)
Other, net............................ (681) (29) (21) (731)
------------ ----------- ------------ ---------------
Total............................... (20,854) (36) 5,050 (16,157)
Income (loss) from continuing operations
before income taxes.................... (13,117) 3,508 8,522 (121)
Provision for income taxes.............. (600) (1,476) (3,238) (367)(h) (967)
4,714(i)
------------ ----------- ------------ ---------------
Income (loss) from continuing
operations............................. $ (13,717) $ 2,032 $ 5,284 $ (1,088)
------------ ----------- ------------ ---------------
------------ ----------- ------------ ---------------
Earnings (loss) per share:
Income (loss) from continuing
operations........................... $ (1.57) $ (0.09)(j)
------------ ---------------
------------ ---------------
</TABLE>
See accompanying notes to the Pro Forma Condensed Consolidated Statements of
Operations.
2
<PAGE>
QUARTER ENDED APRIL 1, 1995
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
PRO FORMA ADJUSTMENTS
HISTORICAL ---------------------------
----------- RETAIL PRO FORMA
COMPANY DIVISION (A) OTHER OPERATIONS
----------- ------------ ------------- ---------------
<S> <C> <C> <C> <C>
Net sales................................................ $ 184,211 $ (44,806) $ $ 139,405
Cost of sales............................................ 146,903 (38,677) 108,226
----------- ------------ ---------------
Gross profit............................................. 37,308 (6,129) 31,179
Operating expenses:
Selling................................................ 22,682 (6,213) 16,469
General and administrative............................. 7,114 (1,253) 5,861
Amortization of intangible assets...................... 2,066 (985) (144)(d) 937
----------- ------------ ---------------
Total................................................ 31,862 (8,451) 23,267
----------- ------------ ---------------
Operating income (loss).................................. 5,446 2,322 7,912
Other income (expense):
Interest and financing costs........................... (5,585) 1,230 400(g) (3,955)
Other, net............................................. (149) (8) (157)
----------- ------------ ---------------
Total................................................ (5,734) 1,222 (4,112)
Income (loss) from continuing operations before income
taxes................................................... (288) 3,544 3,800
Provision for income taxes............................... (275) (1,175) (207)(h) (1,657)
----------- ------------ ---------------
Income (loss) from continuing operations................. $ (563) $ 2,369 $ 2,143
----------- ------------ ---------------
----------- ------------ ---------------
Earnings (loss) per share: Income (loss) from continuing
operations.............................................. $ (0.05) $ 0.17 (j)
----------- ---------------
----------- ---------------
</TABLE>
See accompanying notes to the Pro Forma Condensed Consolidated Statements of
Operations.
3
<PAGE>
NOTES TO PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FISCAL YEAR ENDED DECEMBER 31, 1994 AND QUARTER ENDED APRIL 1, 1995
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
NOTE 1. PRO FORMA ADJUSTMENTS
(a) To adjust the historical Company financial statements for the
Disposition of the Retail Division.
(b) To record the net change in depreciation expense related to the
Specialty Brands acquisition based on the fair value of depreciable
assets, versus their historical cost, using the straight line method over
their estimated useful lives.
(c) To record the net change in amortization expense related to the
Specialty Brands acquisition based on the amortization of trademarks over
25 years and goodwill over a period of 40 years, and elimination of the
amortization of the historical goodwill of Specialty Brands.
(d) To reduce amortization expense related to a reduction in the
Reorganization Value in Excess of Amounts allocable to Identifiable
Assets resulting from the utilization of net operating loss
carryforwards.
(e) To reduce interest expense for the reduction of debt in the amount of
$35 million from the Rights Offering proceeds.
(f) To record additional interest attributable to the increase in bank debt
to finance the Specialty Brands acquisition, record amortization of debt
issue costs over the term of the new bank debt and eliminate amortization
of debt issue costs attributable of debt which was extinguished.
(g) To reduce interest expense related to debt reduced or eliminated with
the proceeds from the Disposition.
(h) To record the tax affect attributable to the net pro forma adjustments
based on the statutory (federal and state) tax rate.
(i) To eliminate taxes for Specialty Brands and the Retail Division which
have been offset by losses of the Company. The pro forma tax provision
and effective tax rate is not necessarily indicative of the expected
amounts and rates for 1995.
(j) The weighted average number of common and common equivalent shares used
in the pro forma earnings per share computation were 12,448,000 which
represents the number of shares outstanding at December 31, 1994 after
the Rights Offering.
NOTE 2. PRO FORMA INCOME BEFORE RESTRUCTURING PROVISION
Pro forma income from continuing operations for the year ended December 31,
1994, after adding back the provision for restructuring and integration and
applying statutory tax rates, would have been $6.5 million.
4
<PAGE>
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
APRIL 1, 1995
(IN THOUSANDS)
ASSETS
<TABLE>
<CAPTION>
PRO FORMA ADJUSTMENTS
----------------------------
RETAIL PRO FORMA
COMPANY DIVISION (A) OTHER BALANCE SHEET
----------- ------------ -------------- -------------
<S> <C> <C> <C> <C>
Current assets:
Cash and cash equivalents............................ $ 5,989 $ $ 6,021(b) $ 12,010
Receivables.......................................... 38,768 (10,738) 28,030
Inventories.......................................... 64,273 (10,096) 54,177
Other current assets................................. 3,439 (1,151) 2,288
----------- ------------ -------------
Total current assets............................... 112,469 (21,985) 96,505
----------- ------------ -------------
Property, plant and equipment.......................... 155,250 (28,009) 127,241
Accumulated depreciation and
amortization........................................ (39,427) 5,363 (34,064)
----------- ------------ -------------
Net property, plant and equipment.................. 115,823 (22,646) 93,177
----------- ------------ -------------
Intangible assets...................................... 103,031 (16,000) 87,031
Accumulated amortization............................. (6,101) 2,815 (3,286)
----------- ------------ -------------
Net intangible assets.............................. 96,930 (13,185) 83,745
----------- ------------ -------------
Reorganization value in excess of amounts allocable to
identifiable assets................................... 98,652 (48,833) (11,525)(c) 38,294
Accumulated amortization............................. (17,257) 8,542 (8,715)
----------- ------------ -------------
Net reorganization value........................... 81,395 (40,291) 29,579
----------- ------------ -------------
Deferred charges and other assets...................... 43,199 (186) (2,321)(d) 40,692
----------- ------------ -------------
$ 449,816 $ (98,293) $ 343,698
----------- ------------ -------------
----------- ------------ -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt................. $ 3,098 $ (1,418) $ $ 1,680
Accounts payable..................................... 16,316 (3,041) 6,100(e) 19,375
Accrued liabilities.................................. 41,939 (3,555) (1,914)(f) 36,470
----------- ------------ -------------
Total current liabilities.......................... 61,353 (8,014) 57,525
----------- ------------ -------------
Long-term debt......................................... 230,184 (6,267) (58,000)(g) 165,917
Other long-term liabilities............................ 80,355 80,355
Stockholders' Equity
Common stock......................................... 124 124
Capital in excess of par value....................... 151,046 151,046
Retained earnings.................................... (71,671) (38,023)(h) (109,694)
Minimum pension liability adjustment................. (1,575) (1,575)
Investment of and advances from parent............... -- (84,012) 84,012(i) --
----------- ------------ -------------
Total stockholders' equity......................... 77,924 (84,012) 39,901
----------- ------------ -------------
$ 449,816 $ (98,293) $ 343,698
----------- ------------ -------------
----------- ------------ -------------
</TABLE>
See accompanying notes to the Pro Forma Condensed Consolidated Balance Sheet.
5
<PAGE>
NOTES TO PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
APRIL 1, 1995
(IN THOUSANDS)
NOTE 1. LOSS ON DISPOSITION
<TABLE>
<S> <C>
Sales price:
Cash to be received.................................................... $ 64,021
Liabilities to be assumed.............................................. 14,281
---------
Total sales price.................................................... 78,302
Allocation of proceeds:
Receivables............................................................ 10,738
Inventory.............................................................. 10,096
Other current assets................................................... 1,151
Property, plant and equipment.......................................... 22,646
Intangible assets...................................................... 53,476
Other assets........................................................... 186
Expenses of Disposition................................................ 6,100
---------
$ (26,091)
Income tax provision..................................................... (11,525)
---------
Loss on Disposition...................................................... $ (37,616)
---------
---------
</TABLE>
The income tax provision reflects a taxable gain resulting from the
difference between the book and tax basis of the assets.
In addition to the above cash proceeds and assumption of debt, the purchaser
has agreed to pay the Company an additional $10 million maximum under a five
year earnout agreement based upon an increase in the market value of the
purchaser's common stock.
NOTE 2. PRO FORMA ADJUSTMENTS
(a) To adjust consolidated balance sheet for Retail Division assets sold.
(b) Proceeds to be utilized for payment of expenses of Disposition.
(c) To reduce Reorganization Value in Excess of Amounts Allocable to
Identifiable Assets for the benefit of net operating loss carryforward
utilization due to the tax gain on the Disposition.
(d) Write off of a portion of the deferred loan costs related to the
Company's term loan.
(e) Increase in current liabilities for the expenses related to the
Disposition.
(f) Decrease in accrued liabilities for the Restructuring Accruals related
to the Retail Division.
(g) Proceeds of $58 million used to reduce debt under the Company's term
loan agreement.
(h) Impact on retained earnings of Disposition and related pro forma
adjustments.
(i) Elimination of investment of and advances from parent.
6
