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Previous: INVESTMENT CO OF AMERICA, NSAR-A, 1995-08-28 |
Next: LIN BROADCASTING CORP, PRER14A, 1995-08-28 |
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8 - K/A
(AMENDMENT NO. 1)
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): FEBRUARY 24, 1995
KANEB SERVICES, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE
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(State or other jurisdiction of incorporation)
1-5083 74-1191271
(Commission File Number) (IRS Employer Identification No.)
2435 N. Central Expressway, Seventh Floor, Richardson, Texas 75080
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (214) 699-4000
-------------------------
<PAGE>
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(b) Pro forma financial information.
<PAGE>
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 thereunto duly authorized.
KANEB SERVICES, INC.
--------------------
(Registrant)
Date: August 28, 1995 /s/ Tony M. Regan
-------------------
Tony M. Regan
Controller
<PAGE>
KANEB SERVICES, INC.
PRO FORMA FINANCIAL STATEMENTS
(Unaudited)
In February 1995, Kaneb Services, Inc. ("Kaneb") acquired, through its interest
in Kaneb Pipe Line Partners, L.P., the refined petroleum product pipeline assets
(the "West Pipeline") of Wyco Pipe Line Company for $27.1 million. The West
Pipeline was owned 60% by a subsidiary of GATX Terminals Corporation and 40% by
a subsidiary of Amoco Pipe Line Company. The acquisition was financed by the
sale of $27 million of first mortgage notes to three insurance companies. The
assets acquired from Wyco Pipe Line Company did not include certain assets that
were leased to Amoco Pipe Line Company, and the purchase agreement did not
provide for either (i) the continuation of an arrangement with Amoco Pipe Line
Company for the monitoring and control of pipeline flows or (ii) the extension
or assumption of certain credit agreements that Wyco Pipe Line Company had with
its shareholders.
The following unaudited pro forma financial statements for Kaneb have been
derived from the audited historical financial statements of Kaneb and Wyco Pipe
Line Company for the year ended December 31, 1993 and the unaudited financial
statements for the nine month period ended September 30, 1994. The following
unaudited pro forma financial statements have been compiled as if Kaneb acquired
the pipeline assets of the West Pipeline on the date of the balance sheet or as
of the beginning of the period for income statement purposes. The unaudited pro
forma financial statements should be read in conjunction with the notes
accompanying such unaudited pro forma financial statements and with the audited
historical financial statements and related notes of Kaneb and Wyco Pipe Line
Company.
The unaudited pro forma financial statements may not be indicative of the
results that would have occurred if Kaneb had acquired the pipeline assets of
the West Pipeline on the dates indicated or which will be obtained in the
future.
<PAGE>
KANEB SERVICES, INC.
PRO FORMA STATEMENTS OF INCOME
YEAR ENDED DECEMBER 31, 1993
(In Thousands, except per unit amounts)
(Unaudited)
<TABLE>
<CAPTION>
Kaneb West Pipeline Acquisition Pro
Historical Historical Adjustments Forma
-------------- ------------- ------------- --------------
<S> <C> <C> <C> <C>
Revenues $ 198,549 $ 16,602 $ ( 5,006) (a) $ 210,145
-------------- ------------- ------------- --------------
Costs and expenses:
Operating costs 153,231 5,839 - 159,070
Depreciation 11,655 841 (137) (b) 12,359
General and administrative 4,133 664 - 4,797
-------------- ------------- ------------- --------------
Total costs and expenses 169,019 7,344 (137) 176,226
-------------- ------------- ------------- --------------
Operating income 29,530 9,258 (4,869) 33,919
Interest income 307 43 - 350
Other income (expense) (514) 129 - (385)
Interest expense (13,559) (13) (2,247) (c) (15,819)
Amortization of excess of cost over fair value
of net assets of acquired business (1,845) - - (1,845)
-------------- ------------- ------------- --------------
Income before minority interest, income taxes and
gain on issuance of units by partnership 13,919 9,417 (7,116) 16,220
Minority interest in net income (10,989) - - (10,989)
Income taxes (1,898) (3,335) 3,222 (d) (2,011)
Gain on issuance of units by partnership 15,122 - - 15,122
-------------- ------------- ------------- --------------
Net income $ 16,154 $ 6,082 $ (3,894) $ 18,342
============== ============= ============= ==============
Earnings per common share -
primary and fully diluted $ 0.46 $ 0.53
============== ==============
</TABLE>
<PAGE>
KANEB SERVICES, INC.
PRO FORMA STATEMENTS OF INCOME
NINE MONTHS ENDED SEPTEMBER 30, 1994
(In Thousands, except per unit amounts)
(Unaudited)
<TABLE>
<CAPTION>
Kaneb West Pipeline Acquistion Pro
Historical Historical Adjustments Forma
------------ ------------ ------------- ------------
<S> <C> <C> <C> <C>
Revenues $ 156,460 $ 9,461 $ - $ 165,921
------------ ------------ ------------ ------------
Costs and expenses:
Operating costs 119,549 3,438 - 122,987
Depreciation 9,352 629 (101) (b) 9,880
General and administative 3,061 909 - 3,970
------------ ------------ ------------ ------------
Total costs and expenses 131,962 4,976 (101) 136,837
------------ ------------ ------------ ------------
Operating income 24,498 4,485 101 29,084
Other income (expense) 78 583 - 661
Interest expense (10,033) - (1,695) (c) (11,728)
Amortization of excess of cost over fair value
of net assets of acquired business (1,386) - - (1,386)
------------ ------------ ------------ ------------
Income before minority interest and income taxes 13,157 5,068 (1,594) 16,631
Minority interest in net income (9,400) - - (9,400)
Income taxes (1,835) (1,965) (1,808) (d) (1,992)
------------ ------------ ------------ ------------
Net income $ 1,922 $ 3,103 $ 214 $ 5,239
============ ============ ============ ============
Earnings per common share - primary
and fully diluted $ 0.03 $ 0.13
============ ============
</TABLE>
<PAGE>
KANEB SERVICES, INC.
PRO FORMA BALANCE SHEETS
SEPTEMBER 30, 1994
(In Thousands)
(Unaudited)
<TABLE>
<CAPTION>
Kaneb Acquistion Pro
Historical Adjustments Forma
------------- ------------- ----------------
<S> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 13,472 $ 2,047 (e) $ 15,519
Accounts receivable, trade 31,597 31,597
Inventories 5,775 - 5,775
Prepaid expenses and
other current assets 6,631 - 6,631
------------- ------------- ----------------
Total current asstes 57,475 2,047 59,522
------------- ------------- ----------------
Property and equipment, net 162,930 28,161 (a) 191,091
------------- ------------- ----------------
Excess of cost over fair value of net
assets of acquired business 67,338 - 67,338
------------- ------------- ----------------
Other assets 4,953 - 4,953
------------- ------------- ----------------
$ 292,696 $ 30,208 $ 322,904
============= ============= ================
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of long-term debt $ 14,847 $ - $ 14,847
Accounts payable 11,608 - 11,608
Accrued expenses 24,607 $ 1,296 (f) 25,903
Accrued distribution payable 4,021 - 4,021
------------- ------------- ----------------
Total current liabilities 55,083 1,296 56,379
------------- ------------- ----------------
Long-term debt, less current portion 146,265 27,000 (g) 173,265
------------- ------------- ----------------
Net liabilities of discontinued operations 4,342 - 4,342
------------- ------------- ----------------
Deferred income taxes and other liabilities 5,730 1,912 (h) 7,642
------------- ------------- ----------------
Minority interest 62,633 - 62,633
------------- ------------- ----------------
Commitments and contingencies
Stockholders' equity 18,643 - 18,643
------------- -------------- ----------------
$ 292,696 $ 30,208 $ 322,904
============= ============== ================
</TABLE>
<PAGE>
Kaneb Services, Inc.
Notes to Pro Forma Financial Statements
(a) Represents the preliminary allocation of the estimated fair market value of
the acquired assets and elimination of the historical gain on an asset
sale in 1993, however, the internal valuation of the assets is not
complete as of the date of this filing.
(b) Represents adjustments to the depreciation and amortization of the
acquired assets.
(c) Represents interest expense on $27 million of acquisition debt at 8.37% per
annum.
(d) Federal income tax expense has been eliminated.
(e) Represents cash received from seller to settle liabilities acquired.
(f) Represents liabilities assumed and accrued acquisition costs
(g) Represents the issuance of $27 million of long-tern debt, incurred in
connection with the acquisition of the West Pipeline.
(h) Represents liabilities assumed in connection with the acquisition.
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