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Previous: VAN KAMPEN AMERICAN CAPITAL U S GOVERNMENT TRUST, 24F-2NT, 1998-03-27 |
Next: KAYDON CORP, 10-K405, 1998-03-27 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 8-K/A
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 2, 1998
MORGAN PRODUCTS LTD.
(Exact Name of Registrant as Specified in Charter)
Delaware 06-1095650
(State or Other Jurisdiction (I.R.S. Employer
of Incorporation) Identification No.)
Commission File Number 1-9843
469 McLaws Circle, Williamsburg, Virginia 23185
(Address of Principal Executive Offices) (Zip Code)
(757) 564-1700
(Registrant's telephone number, including area code)
<PAGE>
The undersigned registrant hereby amends the following items of its
Current Report on Form 8-K filed February 17, 1998.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
In accordance with Item 7 of the registrant's Current Report on Form
8-K filed February 17, 1998, the registrant appends to the Form 8-K the
following pro forma information:
(b) Pro Forma Financial Information
The following combined pro forma financial information is
attached hereto as Appendix A:
1. Unaudited Pro Forma Combined Statement of Operations for
the year ended December 31, 1997;
2. Unaudited Pro Forma Combined Balance Sheet at December 31,
1997;
3. Notes to Unaudited Pro Forma Combined Financial
Statements.
-2-
<PAGE>
SIGNATURES
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.
MORGAN PRODUCTS LTD.
By: /s/ Mitchell J. Lahr
----------------------------------
Mitchell J. Lahr
Vice President and Chief
Financial Officer
DATE: March 24, 1998
<PAGE>
APPENDIX A
MORGAN PRODUCTS LTD.
PRO FORMA FINANCIAL STATEMENTS (UNAUDITED)
The following financial statements present, on a pro forma basis, the
effect of the sale of net assets of the manufacturing facility in Oshkosh,
Wisconsin ("Morgan Manufacturing") by Morgan Products Ltd. ("Morgan" or the
"Company") to JELD-WEN, inc. The Company's Unaudited Pro Forma Financial
Statements assume the sale of Morgan Manufacturing occurred (1) as of January 1,
1997 for purposes of the Unaudited Pro Forma Statement of Operations and (2) on
December 31, 1997 for purposes of the Unaudited Pro Forma Balance Sheet.
The unaudited pro forma data does not purport to be indicative of the
results which would actually have been reported if the transaction had occurred
on such dates or which may be reported in the future. The pro forma data should
be read in conjunction with the historical financial statements of the Company
and the related notes to such financial statements.
<PAGE>
UNAUDITED PRO FORMA BALANCE SHEET
DECEMBER 31, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
ASSUMED
DISPOSITION PRO FORMA
MORGAN OF BUSINESS ADJUSTED
----------------- ------------------- ----------------
<S> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 4,197 -- $ 4,197
Accounts receivable, net 28,743 -- 28,743
Inventories 40,533 -- 40,533
Assets held for sale 32,285 (32,285) (3) --
Other current assets 558 558
----------------- ------------------- ----------------
Total current assets 106,316 (32,285) 74,031
----------------- ------------------- ----------------
PROPERTY, PLANT & EQUIPMENT, Net 10,276 -- 10,276
OTHER ASSETS 12,184 -- 12,184
----------------- ------------------- ----------------
TOTAL ASSETS $ 128,776 $ (32,285) $ 96,491
================= =================== ================
LIABILITIES & STOCKHOLDERS' EQUITY
Current maturities of long-term debt $ 1,213 -- $ 1,213
Accounts payable 13,151 6,190 (3) 19,341
Accrued compensation and employee benefits 8,729 -- 8,729
Other current liabilities 5,899 -- 5,899
----------------- ------------------- ----------------
Total current liabilities 28,992 6,190 35,182
----------------- ------------------- ----------------
LONG-TERM DEBT 57,353 (38,475) (3) 18,878
STOCKHOLDERS' EQUITY
Common stock 1,036 -- 1,036
Paid-in capital 43,413 -- 43,413
Retained earnings (1,970) -- (1,970)
----------------- ------------------- ----------------
42,479 -- 42,479
Treasury stock (48) -- (48)
----------------- ------------------- ----------------
TOTAL STOCKHOLDERS' EQUITY 42,431 -- 42,431
----------------- ------------------- ----------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 128,776 $ (32,285) $ 96,491
================= =================== ================
</TABLE>
See Accompanying Notes to Unaudited Pro Forma Financial Statements
<PAGE>
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1997
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
ASSUMED
DISPOSITION PRO FORMA
MORGAN OF BUSINESS ADJUSTED
----------------- ------------------- ----------------
<S> <C>
Net sales $ 412,249 $ (65,286) (1) $ 346,963
Cost of goods sold 353,909 (61,825) (1) 292,084
----------------- ------------------- ----------------
Gross profit 58,340 (3,461) 54,879
----------------- ------------------- ----------------
Operating expenses:
Sales and marketing 41,377 (3,865) (1) 37,512
General and administrative 14,947 (1,871) (1) 13,076
Loss on sale of manufacturing operations 12,416 (12,416) (1) --
Restructuring and reorganization 5,830 (4,793) (1) 1,037
----------------- ------------------- ----------------
74,570 (22,945) 51,625
----------------- ------------------- ----------------
Operating income (loss) (16,230) 19,484 3,254
----------------- ------------------- ----------------
Other (expense) income:
Interest (4,999) 2,664 (2) (2,335)
Other 332 122 (1) 454
----------------- ------------------- ----------------
(4,667) 2,786 (1,881)
----------------- ------------------- ----------------
Income (loss) before income taxes (20,897) 22,270 1,373
Provision (benefit) for income taxes -- -- --
----------------- ------------------- ----------------
Net income (loss) $ (20,897) $ 22,270 $ 1,373
================= =================== ================
Basic earnings per common share $ (2.03) $ 0.13
================= ================
Diluted earnings per common share $ (2.03) $ 0.13
================= ================
Basic shares outstanding 10,280 10,280
================= ================
Diluted shares outstanding 10,280 10,437
================= ================
</TABLE>
See Accompanying Notes to Unaudited Pro Forma Financial Statements
NOTES TO UNAUDITED PRO FORMA FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS)
1. The pro forma adjustment reflects the elimination of the sales and
directly allocable expenses related to Morgan Manufacturing
2. The pro forma adjustment to interest expense assumes:
Interest savings resulting from the use
of the cash proceeds of $38,475 from the
sale of Morgan Manufacturing to
reduce the Company's credit facility: $ 3,175
Additional interest expense related to
the purchase price adjustment of $6,190: (511)
---------
$ 2,664
=========
The reduction in interest expense is calculated assuming a rate of 8.25% at
the date of the Sale of Morgan Manufacturing. A 1/8 percent increase (or
decrease) in such rate would increase (or decrease) annual interest expense
savings by $40.
3. The pro forma adjustment reflects the disposition of assets related to
Morgan Manufacturing, the reduction of debt with the cash proceeds from the
disposition and the recording of the purchase price adjustment.
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