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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities and Exchange Act of 1934
Date of Report (Date of earliest event reported)
February 1, 1996
NMR of America, Inc.
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(Exact name of registrant as specified in its character)
Delaware 1-9367 22-2468314
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
430 Mountain Avenue, Murray Hill, New Jersey 07974
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (908) 665-9400
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<PAGE>
Item 2. Acquisition or Disposition of Assets
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Item 2 of the Original Form 8-K is hereby amended to read in its entirety
as follows:
General.
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Effective January 1, 1996, pursuant to an Asset Purchase Agreement among
C.D. Acquisition, Inc., (hereinafter referred to as "C.D. Acquisition") a
wholly owned subsidiary of the Registrant, NMR of America, Inc. (hereinafter
referred to as "NMR") and Central Diversey M.R.I. Center, Inc. ("Central
Diversey"), an Illinois corporation, C.D. Acquisition acquired certain assets
and liabilities of Central Diversey. Central Diversey is engaged in the business
of operating a diagnostic imaging center in Chicago, Illinois offering magnetic
resonance imaging services.
In consideration for the acquisition, C.D. Acquisition paid $80,000 in
cash at closing to the selling shareholders of Central Diversey and issued
10,000 unregistered shares of NMR common stock with a $3.50 per share price
guaranteed by NMR and subject to a two-year holding period restriction. In
conjunction with the transaction, C.D. Acquisition acquired substantially all
of Central Diversey's operating assets, which consist primarily of magnetic
resonance imaging ("MRI") equipment, related leasehold improvements and office
equipment and cash deposits on the MRI equipment aggregating $120,000. In
addition, C.D. Acquisition assumed certain trade accounts payable and accrued
liabilities of Central Diversey aggregating $90,000 and MRI related equipment
debt, subject to existing collateral and security, totaling approximately
$595,000 of outstanding principal as of January 1, 1996. The purchase price
for the acquisition of Central Diversey was determined as a result of
arms-length negotiations conducted between C.D. Acquisition and the other
parties to the transaction.
Reference is made to the Asset Purchase Agreement, a copy of which is
filed as an exhibit to this Current Report, for a complete description of the
terms and conditions of the acquisition.
Description of Central Diversey
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Central Diversey was incorporated in 1992. Central Diversey operates in a
2,000 square foot facility located at 2715 North Central Avenue, Chicago,
Illinois (hereinafter referred to as the "Center"). The Center utilizes the
following diagnostic imaging equipment which is owned, subject to the
aforementioned equipment financing, as set forth below:
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<PAGE>
Imaging Modality Manufacturer Year Installed
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Magnetic resonance Toshiba 1992
The magnetic resonance imaging equipment owned by Central Diversey was
financed using a four-year promissory note payable to an equipment finance
company aggregating $594,620 of outstanding principal as of January 1, 1996.
Portions of the principal amount of the note mature during each fiscal year
1996 through 2000 as follows: 1996 - $33,108; 1997 - $140,955;
1998 - $155,789; 1999 - $172,069; 2000 - $92,699.
As of January 1, 1996, Central Diversey employed 4 full-time and part-time
persons, including 2 persons in clerical and administrative positions and
2 persons in clinical and technical capabilities. Central Diversey currently
performs their own patient billing function. However, NMR intends to
consolidate all billing and financial recordkeeping, as well as marketing,
administrative and corporate management activities of Central Diversey into
its Murray Hill, New Jersey offices.
The 10,000 shares of common stock issued by NMR in connection with the
acquisition of Central Diversey have been issued in reliance upon an exemption
from the registration requirements of the Securities Act of 1933 (the "Act")
and the recipients of the shares have acknowledged that none of the shares,
can be transferred absent compliance with the registration requirements of
the Act or the availability of an exemption therefrom.
Prior to the acquisition, none of the officers, directors or shareholders
of Central Diversey had any material relationship with NMR or its affiliates.
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Item 7. Financial Statements, Pro Forma Financial Information and
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Exhibits.
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The Original Form 8-K is hereby amended to include the following
financial statements.
(a) Financial Statements for Business Acquired.
1) Unaudited Historical Balance Sheets as of December
31, 1995 and March 31, 1995, respectively.
2) Unaudited Historical Statement of Income for
the year ended March 31, 1995.
3) Unaudited Historical Statement of Income for
the nine months ended December 31, 1995.
(b) Pro Forma Financial Information.
1) Unaudited Pro Forma Condensed Balance Sheet as of
December 31, 1995.
2) Unaudited Pro Forma Condensed Statement of
Operations for the year ended March 31, 1995.
3) Unaudited Pro Forma Condensed Statement of
Operations for the nine months ended December 31, 1995.
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CENTRAL DIVERSEY MRI CENTER, INC.
UNAUDITED HISTORICAL BALANCE SHEETS
ASSETS DECEMBER 31, 1995 MARCH 31, 1995
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Cash and short-term investments $ 40,000 $ 2,500
Accounts receivable 393,174
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Total current assets 40,000 395,674
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Equipment and leasehold improvements 881,654 880,854
Less, accumulated depreciation 537,431 420,160
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344,223 460,694
Other assets 91,572 10,340
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Total assets $ 475,795 $ 866,708
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LIABILITIES AND SHAREHOLDERS' EQUITY
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Accounts payable and accrued expenses $ 90,000 $ 213,673
Current installments on notes payable 126,286 45,000
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Total current liabilities 216,286 258,673
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Notes payable 505,869 678,000
Shareholders' Equity:
Common stock 1,000 1,000
Additional paid-in capital 69,000 69,000
Retained earnings (deficit) (316,360) (139,965)
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Total shareholders' equity (246,360) (69,965)
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Total liabilities and shareholders'equity $ 475,795 $ 866,708
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CENTRAL DIVERSEY MRI CENTER, INC.
UNAUDITED HISTORICAL STATEMENT OF INCOME
FOR THE
YEAR ENDED
MARCH 31, 1995
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Revenue, net $ 703,480
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Costs and Expenses:
Payroll and related costs 103,910
Depreciation and amortization 257,970
Med. supplies and other operating costs 244,810
Other general and administrative 6,573
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613,263
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Operating income 90,217
Interest expense 162,681
Other income 4,000
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Net (loss) ($68,464)
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CENTRAL DIVERSEY MRI CENTER, INC.
UNAUDITED HISTORICAL STATEMENT OF INCOME
FOR THE
NINE MONTHS ENDED
DECEMBER 31, 1995
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Revenue, net $ 726,566
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Costs and Expenses:
Payroll and related costs 92,933
Depreciation and amortization 118,304
Med. supplies and other operating costs 279,122
Other general and administrative 27,446
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517,805
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Operating income 208,761
Interest expense 44,867
Other income 4,749
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Net income $ 168,643
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<PAGE>
PRO FORMA FINANCIAL INFORMATION
The following unaudited pro forma balance sheet and unaudited pro forma
results of operations for the nine months ended December 31, 1995 and for the
fiscal year ended March 31, 1995 have been prepared by the Registrant and
give effect to the acquisition of Central Diversey as of the beginning of the
periods presented. The Company filed a Joint Proxy Statement dated August
11, 1995 with the Securities and Exchange Commission which detailed the pro
forma impact of the Company's proposed acquisition of Morgan Medical
Holdings, Inc. ("Morgan"), which became effective on September 15, 1995, and
the Company's prior acquisitions of Libertyville Imaging Center and Golf MRI
and Diagnostic Imaging Center (the "NMR Historical Acquisitions"), which were
effective January 1, 1995, on the Company's historical results of operations
for the fiscal year ended March 31, 1995. For purposes of providing pro
forma information for the fiscal year ended March 31, 1995, inclusive of the
pro forma impact of Central Diversey in this Form 8-K/A, the Registrant has
based its presentation on the pro forma combined results of operations which
include Morgan and the NMR Historical Acquisitions as presented in the Joint
Proxy Statement referred to above. These pro forma results have been
prepared for comparative purposes only and do not purport to be indicative of
the results of operations which actually would have resulted had Central
Diversey, Morgan or the NMR Historical Acquisitions been consummated as of
the dates indicated, or which may result in the future.
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<PAGE>
UNAUDITED PROFORMA CONDENSED
BALANCE SHEET - DECEMBER 31, 1995
<TABLE><CAPTION>
Pro Forma
Historical NMR and
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Central Pro Forma Central
NMR Diversey Adjustments Diversey
--- --------- ----------- --------
<S> <C> <C> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 2,250,417 $ (80,000)(A) $2,170,417
Marketable securities 300,000 300,000
Short-term investments 2,161,000 $ 40,000 2,201,000
Due from affiliated physician
associations, net 13,253,269 13,253,269
Other current assets 1,451,922 1,451,922
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Total current assets 19,416,608 19,376,608
Land, building and equipment, net 14,560,604 344,223 (69,223)(C) 14,835,604
Cost in excess of net assets
acquired 10,598,200 428,780 (D) 11,026,980
Other assets 1,544,628 91,572 (1,572)(B) 1,634,628
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$46,120,040 $ 475,795 $ 277,985 $ 46,873,820
=========== ========== ========== ============
Liabilities and shareholder's equity
Current liabilities:
Accounts payable and
accrued expenses $ 4,330,211 $ 90,000 $4,420,211
Current installments on
capital leases, notes,
and mortgage payable 4,544,600 126,286 4,670,886
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Total current liabilities 8,874,811 216,286 9,091,097
Convertible subordinated
debt, net 1,973,168 1,973,168
Obligations under capital leases,
notes, and mortgage payable,
less current installments 12,810,457 505,869 13,316,326
Minority interests 2,271,002 2,271,002
Shareholders' equity 20,190,602 (246,360) $246,360 (E) 20,222,227
100 (A)
31,525 (A)
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$ 46,120,040 $ 475,795 $ 277,985 $46,873,820
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</TABLE>
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(A) To reflect payment of cash and issuance of unregistered NMR common stock
in exchange for substantially all of the assets of Central Diversey.
(B) To reflect miscellaneous assets at estimated realizable values as of the
acquisition date.
(C) To reflect equipment at fair market value as of the acquisition date.
(D) To reflect cost in excess of net assets acquired.
(E) To reflect elimination of Central Diversey's shareholders' equity.
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<PAGE>
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1995
(in 000's)
<TABLE><CAPTION>
NMR, Morgan NMR, Morgan,
and NMR NMR Historical
Historical Acquisitions and
Acquisitions Historical Central Diversey
Pro forma Central Pro forma Pro forma
Combined Diversey Adjustments Combined
----------- -------- ----------- -----------
<S> <C> <C> <C> <C>
Revenue, net $25,962 $ 703 $ 26,665
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Costs and expenses
Payroll and related
costs 5,843 104 5,947
Depreciation and amortization 4,012 258 $ (219) (A) 4,072
21 (B)
Medical supplies and other
operating costs 9,200 245 (24) (C) 9,421
Center upgrade costs
Gen. and admin. costs 1,011 7 1,018
Non-recurring write-down
of center equipment 560 560
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20,626 614 (222) 21,018
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Operating Income 5,336 89 222 5,647
Interest expense 1,873 163 2,036
Other income, net 84 4 88
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Income before minority
interest and income taxes 3,547 (70) 222 3,699
Minority interests 613 613
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Income before income taxes 2,934 (70) 222 3,086
Provision for income taxes (872) 22 (D) (850)
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Net (loss) income $ 3,806 $ (70) $200 $ 3,936
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Fully diluted net
income per share $ .58 $.60
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Weighted average number
of shares used to compute
fully diluted earnings
per share 6,882,292 10,000 (E) 6,892,292
========= ====== =========
</TABLE>
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<PAGE>
(A) To reflect reduction in depreciation expense based upon fair market
value of assets and their remaining useful economic lives as of the
acquisition date.
(B) To reflect amortization of goodwill.
(C) To reflect reductions in miscellaneous operating expenses to be provided
to Central Diversey by NMR.
(D) To reflect income tax provision on historical earnings of Central
Diversey and pro forma adjustments.
(E) To reflect 10,000 shares issued in connection with the Central Diversey
acquisition, which were assumed to be outstanding during the entire
period.
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<PAGE>
UNAUDITED PRO FORMA CONDENSED
STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED DECEMBER 31, 1995
<TABLE><CAPTION>
Historical NMR, Morgan
--------------------------------------------- and Central
Diversey
Central Pro Forma Pro forma
NMR Morgan Diversey Adjustments Combined
--- ------ ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Revenue, net $16,814,350 $2,773,542 $ 726,566 $20,314,458
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Costs and expenses
Payroll and related
costs 4,691,388 540,342 92,933 5,324,663
Depreciation and
amortization 2,201,321 405,672 118,304 $(88,840)(A) 2,652,536
16,079 (B)
Medical supplies and
other operating costs 6,286,376 1,076,514 279,122 (27,912)(C) 7,614,100
Gains on disposition of
center assets (62,443) (62,443)
Other general
administrative 480,122 48,666 27,446 556,234
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13,596,764 2,071,194 517,805 (100,673) 16,085,090
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Operating income 3,217,586 702,348 208,761 100,673 4,229,368
Interest expense 1,214,325 255,635 44,867 1,514,827
Other income, net 119,874 2,815 4,749 127,438
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Income before minority
interest and income
taxes 2,123,135 449,528 168,643 100,673 2,841,979
Minority interests 334,721 334,721
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Income before
income taxes 1,788,414 449,528 168,643 100,673 2,507,258
Provision for
income taxes:
Current 13,116 19,792 4,027(D) 36,935
Deferred 628,366 178,000 36,242(D) 842,608
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Net income $1,146,932 $251,736 $168,643 $ 60,404 $1,627,715
========== ======== ======== ======== ==========
Fully diluted net
income per share $ .20 $ .34 $ .25
========== ======= ==========
Weighted average number
of shares used to compute
fully diluted earnings
per share 6,165,948 730,555 10,000(E) $6,906,503
========= ======= ======== ==========
</TABLE>
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<PAGE>
(A) To reflect reduction in depreciation expense based upon
appraisal of fair market value of assets and their remaining useful
economic lives as of the acquisition date.
(B) To reflect amortization of goodwill.
(C) To reflect reductions in miscellaneous operating expenses to be provided
to Central Diversey by NMR.
(D) To reflect income tax provision on historical earnings of Central
Diversey, inclusive of proforma adjustments.
(E) To reflect 10,000 unregistered shares issued in connection with Central
Diversey acquisition which were assumed to be outstanding during the
entire period.
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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 thereunto duly authorized.
NMR OF AMERICA, INC.
By:
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John P. O'Malley III
Executive Vice President-Finance
Dated: April 11, 1996
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