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FORM 8-K/A
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
AMENDMENT TO REPORT
Filed pursuant to Section 13 or 15(d) of
THE SECURITIES EXCHANGE ACT OF 1934
THE TODD-AO CORPORATION
(Exact name of registrant as specified in its charter)
File No. 0-1461
AMENDMENT NO. 1
The undersigned registrant hereby amends the following items of its
Form 8-K, dated August 13, 1996 as set forth in the pages attached hereto.
7(b). Pro Forma financial information combining The Todd-AO Corporation
and Edit Acquisition LLC (dba Editworks).
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: September 13, 1996
THE TODD-AO CORPORATION
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/s/ Silas R. Cross
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Silas R. Cross
Principal Accounting Officer
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THE TODD-AO CORPORATION
Note: Item 7(b) as originally filed used Editworks' fiscal year end
December 31, 1995 in the pro forma condensed statement of income for
the twelve months ended August 31, 1995. This amendment utilizes
additional information to bring Editworks' twelve month condensed
statement of income to within ninety three days of August 31, 1995.
Item 7(b)
Pro Forma Financial Information
THE TODD-AO CORPORATION AND
EDIT ACQUISITION LLC (dba EDITWORKS)
PRO FORMA CONDENSED FINANCIAL STATEMENTS (Unaudited)
I. Balance Sheet as of May 31, 1996.
II. Statements of Income for the year ended August 31, 1995 and the nine
months ended May 31, 1996.
III. Footnotes to Financial Statements
The Todd-AO Corporation ("Todd-AO") purchased substantially all of the
assets and certain liabilities of Edit Acquisition LLC ("Editworks") for cash
and Todd-AO Corporation common stock as of August 13, 1996. The following pro
forma condensed financial information and explanatory notes are presented to
show the pro forma effect of the acquisition of Editworks on Todd-AO's
historical results of operations. The acquisition is reflected in the pro forma
condensed financial information using the purchase method of accounting.
The Pro Forma Condensed Balance Sheet as of May 31, 1996 assumes the
acquisition was consummated on that date. The Pro Forma Condensed Income
Statements assume the acquisition was consummated on September 1, 1994. Such
Pro Forma Condensed Financial Information is not necessarily indicative of the
financial position or results of operations as they may be in the future or as
they might have been had the acquisition been effected on the assumed dates.
The Pro Forma Condensed Financial Information should be read in
conjunction with the historical financial statements and notes thereto of Todd-
AO, the audited historical financial statements and notes thereto of Edit
Acquisition LLC filed with this report, and the notes to the Pro Forma Condensed
Financial Information.
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THE TODD-AO CORPORATION
PRO FORMA CONDENSED BALANCE SHEET (Unaudited)
as of May 31, 1996
(Dollars in thousands, except amounts per share)
<TABLE>
<CAPTION>
Edit Consolidated
Todd-AO (1) Works (2) Adjust Pro Forma
----------- --------- ------ ---------
<S> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS:
Cash $ 3,263 $ 11 $ 3,274
Marketable securities - at cost 2,685 2,685
Trade receivables - net 11,043 632 11,675
Inventories 661 6 667
Other 1,357 117 1,474
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Total current assets 19,009 766 0 19,775
INVESTMENTS 1,336 1,336
PROPERTY AND EQUIPMENT - NET 35,226 2,437 (422) [3] 37,241
GOODWILL - NET 1,738 4,000 [4] 5,738
OTHER ASSETS 375 4 379
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TOTAL $ 57,684 $ 3,207 $ 3,578 $ 64,469
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----------------------------------------- --------
LIABILITIES AND SHAREHOLDERS EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued liabilities $ 5,900 $ 363 50 [4] $ 6,313
Current maturities of long-term debt 615 515 1,130
Capitalized lease obligations - current 867 867
Other 446 7 453
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Total current liabilities 7,828 885 50 8,763
LONG-TERM DEBT 6,065 1,200 3,680 [5] 10,945
CAPITALIZED LEASE OBLIGATIONS 68 68
DEFERRED COMPENSATION 265 265
DEFERRED GAIN: SALE OF EQUIPMENT 5,277 5,277
DEFERRED INCOME TAXES 3,587 3,587
SHAREHOLDERS EQUITY:
Common stock 2,059 17 [6] 2,076
Additional capital and other 20,930 1,122 (169) [6][7] 21,883
Retained earnings 11,605 11,605
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Total shareholders equity 34,594 1,122 (152) 35,564
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TOTAL $ 57,684 $ 3,207 $ 3,578 $ 64,469
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</TABLE>
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THE TODD-AO CORPORATION
PRO FORMA CONDENSED STATEMENT OF INCOME
For the twelve months ended
August 31, 1995 (Unaudited)
(Dollars in thousands, except amounts per share)
<TABLE>
<CAPTION>
Edit Consolidated
Todd-AO (1) Works (8) Adjust Pro Forma
----------- --------- ------ ---------
<S> <C> <C> <C> <C>
REVENUES $ 50,003 $ 3,191 $ 53,194
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COST AND EXPENSES:
Operating costs and other expenses 39,867 2,259 42,126
Depreciation and amortization 3,917 342 $ 267 [9] 4,526
Interest 581 124 169 [10] 874
Equipment lease expense - net 593 593
Other - net (41) (25) (66)
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Total costs and expenses 44,917 2,700 436 48,053
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INCOME (LOSS) BEFORE
INCOME TAXES 5,086 491 (436) 5,141
INCOME TAXES 1,711 81 [11] 1,731
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INCOME (LOSS) FROM
OPERATIONS $ 3,375 $ 491 $ (517) $ 3,410
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INCOME PER SHARE $ 0.40 $ 0.40
-------- --------
-------- --------
AVERAGE SHARES
OUTSTANDING 8,399,462 66,863 [12] 8,466,325
--------- --------- ---------
--------- --------- ---------
</TABLE>
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THE TODD-AO CORPORATION
PRO FORMA CONDENSED STATEMENT OF INCOME
For the nine months ended
May 31, 1996 (Unaudited)
(Dollars in thousands, except amounts per share)
<TABLE>
<CAPTION>
Edit Consolidated
Todd-AO (1) Works (8) Adjust Pro Forma
----------- --------- ------ ---------
<S> <C> <C> <C> <C>
REVENUES $ 48,140 $ 3,305 $ 51,445
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COST AND EXPENSES:
Operating costs and other expenses 37,231 2,114 39,345
Depreciation and amortization 3,967 313 200 [9] 4,480
Interest 531 122 127 [10] 780
Equipment lease expense - net 415 0 415
Other (437) (46) (483)
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Total costs and expenses 41,707 2,503 327 44,537
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INCOME (LOSS) BEFORE
INCOME TAXES 6,433 802 (327) 6,908
INCOME TAXES 2,371 171 [11] 2,542
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INCOME (LOSS) FROM
OPERATIONS $ 4,062 $ 802 $ (498) $ 4,366
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INCOME PER SHARE $ 0.46 $ 0.50
-------- --------
-------- --------
AVERAGE SHARES
OUTSTANDING 8,805,359 66,863 [12] 8,872,222
--------- --------- ---------
--------- --------- ---------
</TABLE>
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THE TODD-AO CORPORATION
NOTES TO PRO FORMA CONDENSED FINANCIAL STATEMENTS (Unaudited)
[1] Condensed from audited financial statements included in the Todd-AO
Corporation Annual Report on Form 10-K for the year ended August 31,1995
and Quarterly Report on Form 10-Q for the nine months ended May 31, 1996.
[2] Recognizes the August 13, 1996 purchase of the assets and certain
liabilities (at historical cost) of Edit Acquisition LLC ("Editworks") by
Todd-AO Corporation.
[3] To reflect purchase accounting writedown of Editworks Equipment to Fair
Market Value.
[4] To recognize Goodwill arising from the purchase of Editworks including
estimated legal, accounting, audit and other acquisition related costs
($50).
[5] The net bank borrowings to acquire Editworks including an additional $500
due upon completion of certain conditions.
[6] To record 66,863 shares of Todd-AO common stock at $14.50 per share
issued as part of the total purchase price of Editworks ($17 common
stock; $953 additional capital).
[7] Elimination of Editworks equity.
[8] Twelve month information is condensed from Editworks audited and
unaudited pro forma income statements for the year ended December 31,
1994 less the period ended September 30, 1994 plus the nine months
ended September 30, 1995. Nine month information is condensed from
Editworks audited and unaudited pro forma income statements for the
year ended December 31, 1995 less the period ended September 30, 1995
plus the six months ended June 30, 1996.
[9] To adjust to goodwill amortization for excess purchase costs ($4,000 over
15 years).
[10] To adjust interest to borrowings from Company's institutional lender for
acquisition purchase ($3,680 estimated at 8 1/2% for 5 years).
[11] To adjust income taxes for income resulting from the inclusion of
Editworks net income in the consolidated net income of the Company, net
of the pro-forma adjustments noted above.
[12] To increase average shares outstanding for the 66,863 shares of Todd-AO
Common Stock issued as part of the purchase.
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