<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A 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): October 4, 1995
SCHERER HEALTHCARE, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 0-10552 59-0688813
(STATE OF (COMMISSION FILE NO.) (I.R.S. EMPLOYER
INCORPORATION) IDENTIFICATION NO.)
2589 PACES FERRY ROAD, SUITE 300
ATLANTA, GEORGIA 30339
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES, INCLUDING ZIP CODE)
(770) 333-0066
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
Page 1 of 9
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(b) PRO FORMA FINANCIAL INFORMATION.
The following pro forma financial statements of the Company are
filed herewith:
Pro Forma Condensed Consolidated Balance Sheet as of
September 30, 1995
Pro Forma Condensed Consolidated Statement of Operations
for the Six Months Ended September 30, 1995
Pro Forma Condensed Consolidated Statement of Operations
for the Year Ended March 31, 1995
Notes to Pro Forma Condensed Consolidated Financial
Statements
2
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SCHERER HEALTHCARE, INC.
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 1995
(UNAUDITED)
ASSETS
<TABLE>
<CAPTION>
PRO FORMA PRO FORMA
CONSOLIDATED ADJUSTMENTS CONSOLIDATED
------------ ------------ ------------
<S> <C> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 1,756,000 $ 44,000 (a) $ 1,800,000
Accounts receivable 7,177,000 7,177,000
Current maturities of notes receivable 452,000 452,000
Inventories 5,572,000 (2,320,000) (b) 3,252,000
Prepaid and other 373,000 150,000 (c) 523,000
------------ ------------ ------------
Total current assets 15,330,000 (2,126,000) 13,204,000
------------ ------------ ------------
PROPERTY AND EQUIPMENT 19,181,000 (1,869,000) (b) 17,312,000
Less accumulated depreciation (6,352,000) 673,000 (b) (5,679,000)
------------ ------------ ------------
Net property and equipment 12,829,000 (1,196,000) 11,633,000
------------ ------------ ------------
OTHER ASSETS
Costs in excess of net assets of
businesses acquired, net 6,965,000 6,965,000
Other investments, at cost 651,000 651,000
Notes receivable, less current portion 573,000 573,000
Intangibles 566,000 (30,000) (b) 536,000
Deferred taxes and other 329,000 329,000
------------ ------------ ------------
Total other assets 9,084,000 (30,000) 9,054,000
------------ ------------ ------------
TOTAL ASSETS $ 37,243,000 $ (3,352,000) $ 33,891,000
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
See notes to pro forma condensed consolidated financial statements.
3
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SCHERER HEALTHCARE, INC.
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 1995
(UNAUDITED)
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
PRO FORMA PRO FORMA
CONSOLIDATED ADJUSTMENTS CONSOLIDATED
------------ ------------ ------------
<S> <C> <C> <C>
CURRENT LIABILITIES
Accounts payable $ 3,371,000 $ (1,153,000) (d) $ 2,218,000
Accrued expenses 4,451,000 150,000 (e) 4,601,000
Line of credit and current maturities
of debt obligations 1,483,000 (45,000) (f) 1,438,000
Deferred contract revenue 351,000 351,000
Payable to affiliates 7,221,000 (4,800,000) (g) 2,421,000
Other 152,000 60,000 (h) 212,000
------------ ------------ ------------
Total current liabilities 17,029,000 (5,788,000) 11,241,000
------------ ------------ ------------
LONG-TERM DEBT, net of current maturities 4,938,000 (454,000) (f) 4,484,000
OTHER LIABILITIES 358,000 358,000
COMMITMENTS AND CONTINGENCIES
MINORITY INTERESTS IN SUBSIDIARY
AND PARTNERSHIPS 1,226,000 228,000 (i) 1,454,000
STOCKHOLDERS' EQUITY 13,692,000 2,662,000 (j) 16,354,000
------------ ------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' $37,243,000 $ (3,352,000) $33,891,000
EQUITY ------------ ------------ ------------
------------ ------------ ------------
</TABLE>
See notes to pro forma condensed consolidated financial statements.
4
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SCHERER HEALTHCARE, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRO FORMA PRO FORMA
CONSOLIDATED ADJUSTMENTS CONSOLIDATED
------------ ------------ ------------
<S> <C> <C> <C>
NET SALES $ 23,240,000 $ (5,344,000) (k) $ 17,896,000
------------ ------------ ------------
COSTS AND EXPENSES
Cost of goods sold 15,749,000 (4,377,000) (k) 11,372,000
Selling, general, and administrative 6,872,000 (747,000) (k) 6,125,000
Research and development 1,084,000 1,084,000
------------ ------------ ------------
Total costs and expenses 23,705,000 (5,124,000) 18,581,000
------------ ------------ ------------
OPERATING LOSS (465,000) (220,000) (685,000)
OTHER INCOME (EXPENSE), net (310,000) 222,000 (l) (88,000)
------------ ------------ ------------
INCOME (LOSS) BEFORE MINORITY INTEREST
AND INCOME TAXES (775,000) 2,000 (773,000)
MINORITY INTEREST IN NET LOSS OF
SUBSIDIARY AND PARTNERSHIPS 36,000 36,000
------------ ------------ ------------
INCOME (LOSS) BEFORE INCOME TAXES (739,000) 2,000 (737,000)
PROVISION FOR INCOME TAXES (55,000) (55,000)
------------ ------------ ------------
NET INCOME (LOSS) $ (794,000) $ 2,000 $ (792,000)
------------ ------------ ------------
------------ ------------ ------------
NET LOSS PER COMMON SHARE $ (0.19) $ -- $ (0.19)
------------ ------------ ------------
------------ ------------ ------------
WEIGHTED AVERAGE SHARES OUTSTANDING 4,269,445 4,269,445
------------ ------------
------------ ------------
</TABLE>
See notes to pro forma condensed consolidated financial statements.
5
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SCHERER HEALTHCARE, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PRO FORMA PRO FORMA
CONSOLIDATED ADJUSTMENTS CONSOLIDATED
------------ ------------ ------------
<S> <C> <C> <C>
NET SALES $ 43,602,000 $ (9,866,000) (k) $ 33,736,000
------------ ------------ ------------
COSTS AND EXPENSES
Cost of goods sold 32,009,000 (9,069,000) (k) 22,940,000
Selling, general, and administrative 14,810,000 (1,347,000) (k) 13,463,000
Research and development 2,857,000 2,857,000
Nonrecurring charges 4,874,000 4,874,000
------------ ------------ ------------
Total costs and expenses 54,550,000 (10,416,000) 44,134,000
------------ ------------ ------------
OPERATING INCOME (LOSS) (10,948,000) 550,000 (10,398,000)
OTHER INCOME (EXPENSE), net (1,347,000) 480,000 (l) (867,000)
------------ ------------ ------------
INCOME (LOSS) BEFORE MINORITY INTEREST
AND INCOME TAXES (12,295,000) 1,030,000 (11,265,000)
MINORITY INTEREST IN NET LOSS OF
SUBSIDIARY AND PARTNERSHIPS 1,927,000 1,927,000
------------ ------------ ------------
INCOME (LOSS) BEFORE INCOME TAXES (10,368,000) 1,030,000 (9,338,000)
BENEFIT FOR INCOME TAXES 197,000 197,000
------------ ------------ ------------
NET INCOME (LOSS) $(10,171,000) $ 1,030,000 $ (9,141,000)
------------ ------------ ------------
------------ ------------ ------------
NET INCOME (LOSS) PER COMMON SHARE $ (2.39) $ 0.24 $ (2.15)
------------ ------------ ------------
------------ ------------ ------------
WEIGHTED AVERAGE SHARES OUTSTANDING 4,255,264 4,255,264
------------ ------------
------------ ------------
</TABLE>
See notes to pro forma condensed consolidated financial statements.
6
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NOTES TO PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1.
The following pro forma condensed consolidated balance sheet as of September 30,
1995, and the pro forma condensed consolidated statements of operations for the
six months ended September 30, 1995 and for the year ended March 31, 1995 give
effect to the sale of certain assets of Scherer Healthcare, Ltd. (doing business
as Custom Medical Products ("Custom Medical")) to Cordis Medical Products, Inc.
("Cordis Medical"), a wholly-owned subsidiary of Cordis Corporation. The assets
sold to Cordis Medical were those used in connection with Custom Medical's
business of packing and distributing medical supplies for surgical procedures
and providing nonwoven medical drapes, gowns and accessory items to hospitals
and other health care providers (the "Medical Business"). Additionally, Cordis
Medical agreed to assume all accounts payable related to the Medical Business
and certain other specifically identified liabilities including the mortgage on
Custom Medical's facility located in Asheville, North Carolina.
The pro forma adjustments related to the pro forma condensed consolidated
balance sheet assume a transaction date of September 30, 1995, and the pro forma
adjustments to the pro forma condensed consolidated statements of operations for
the six months ended September 30, 1995 and for the year ended March 31, 1995
assume a transaction date of April 1, 1994. The effective date of the
transaction was October 4, 1995.
These pro forma financial statements are not necessarily indicative of the
results that actually would have occurred if the transaction had been in effect
as of and for the periods presented or what may be achieved in the future.
NOTE 2.
Explanatory notes to the pro forma adjustments.
(a) Net cash from the transaction after $4,800,000 debt repayment of
affiliate loans.
(b) Reflects the net book value of the assets related to the Medical Business
sold to Cordis Medical.
(c) Represents $150,000 of the purchase price placed in escrow as a source of
payment for certain adjustments to the purchase price. The funds held
in escrow will be distributed on or about January 2, 1996.
(d) Reflects liabilities assumed by Cordis Medical.
(e) Reflects accrual of estimated costs associated with the transaction.
(f) Reflects pay-off of the mortgage obligation on the Asheville plant
($458,000) and a loan from Scherer Capital L.L.C. for the land
underlying the Asheville plant ($40,000), both amounts were paid at
closing.
(g) Reflects the use of cash proceeds from the sale to repay $4,800,000 of
loans from affiliated companies.
(h) Estimated income tax effect from the transaction.
7
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(i) Reflects minority interest in partnership after the effects of the
transaction.
(j) Estimated impact to stockholders' equity from the transaction, including
estimated gain from sale of $2,950,000.
(k) Reflects elimination of operations related to the Medical Business for
the six months ended September 30, 1995 and for the year ended March
31, 1995.
(l) Reflects interest expense associated with the repayment of $4,800,000 of
loans from affiliated companies assuming a sale date of April 1, 1994
for the six months ended September 30, 1995 and for the year ended
March 31, 1995.
8
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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 behalf of the undersigned
hereunto duly authorized.
SCHERER HEALTHCARE, INC.
Date: December 18, 1995 By: /s/ Robert P. Scherer, Jr.
--------------------------
Robert P. Scherer, Jr.
Chairman and Chief Executive Officer
9
