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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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 5, 1996
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MET-COIL SYSTEMS CORPORATION
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(Exact Name of Registrant as Specified in Charter)
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DELAWARE 0-14057 42-1027215
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(State or Other Jurisdiction of Incorporation) (Commission File No.) (I.R.S. Employer No.)
5486 SIXTH STREET SW, CEDAR RAPIDS, IOWA 52404
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(Address or Principal Executive Offices) (Zip Code)
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Registrant's telephone number, including area code (319) 363-6566
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ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
On February 5, 1996 the Registrant sold certain assets and
certain liabilities of its wholly owned subsidiary Rowe Machinery
and Automation, Inc. ("Rowe") to Mestex, Ltd. ("Mestex") a
subsidiary of Mestek, Inc. for $3 million in cash and an adjustable
promissory note with a face value of $1.1 million payable within 90
days. The note balance is subject to adjustments related to a
physical inventory count and an analysis of slow moving inventory
and uncollectible receivables. The proceeds from this sale will be
used to retire debt.
The assets sold represent the rights to manufacture two
product lines known as the "Press Feed" and "Cut-To-Length" product
lines, all of the intangible assets related to these product lines,
the Rowe name and the associated inventory and accounts receivable.
The liabilities assumed include accounts payable and customer
deposits also related to these two product lines. Mestex will
lease the Rowe facilities including machinery and equipment, for
$40,000 per month for at least a one year period.
ITEM 7. FINANCIAL STATEMENTS, PROFORMA FINANCIAL INFORMATION AND EXHIBITS
(a) Not applicable
(b) Proforma financial information
The following proforma financial information is filed as part of
this report:
Condensed Consolidated Balance Sheets as of December 31, 1995.
Condensed Consolidated Statements of Operations for the year ended
May 31, 1995, and six months ended November 30, 1995.
Notes to Condensed Consolidated Financial Statements
(c) Exhibits
The exhibits filed herewith are listed in the exhibit index on page
7 hereof.
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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 hereunto duly authorized.
Date: May 24, 1996 Met-Coil Systems Corporation
By: Joseph H. Ceryanec\s\
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Name: Joseph H. Ceryanec
Title: Vice President-Finance and
Chief Financial Officer
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MET-COIL SYSTEMS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except shares)
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December 31, Proforma December 31,
1995 Adjustments 1995
Proforma
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Current assets
Cash $ 633 $ $ 633
Cash, restricted for debt repayment 505 (485) 20
Trade receivables, net 5,684 (786) 4,898
Notes and other receivables 786 1,059 1,845
Inventories 13,460 (2,200) 11,260
Prepaid expenses 1,169 (10) 1,159
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Total current assets 22,237 (2,422) 19,815
Property and equipment, net 6,641 (386) 6,255
Investments and other assets 2,496 2,496
Intangibles, net 2,833 2,833
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TOTAL ASSETS $34,207 $ (2,808) $ 31,399
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Current liabilities
Notes payable to banks and current maturities
of long-term debt $16,880 $ (3,485) $ 13,395
Accounts payable and accrued liabilities 7,331 (1,275) 6,056
Customer deposits and progress billings 3,110 (662) 2,448
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Total current liabilities 27,321 (5,422) 21,899
Long-term debt 3,960 3,960
Other 794 794
Preferred stock, convertible and redeemable at $13 per shares 3,604 3,604
Stockholders' Equity (Deficit):
Common stock, $.01 par value, authorized 10,000,000 shares; 31 31
1996 issued 3,063,783
Additional paid-in capital 16,163 16,163
Retained earnings (deficit) (17,789) 2,614 (15,175)
Foreign currency translation 252 252
Common stock in treasury, at cost, 28,000 shares (129) (129)
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Net equity (deficit) (1,472) 2,614 1,142
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $34,207 $ (2,808) $ 31,399
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See notes to condensed consolidated financial statements
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MET-COIL SYSTEMS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share amounts)
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Year Ended Six Months Ended
May 31, 1995 November 30, 1995
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As Proforma Proforma As Proforma Proforma
Reported Adjustments (Unaudited) Reported Adjustments (Unaudited)
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Net revenues $ 43,775 $ (11,024) $ 32,751 $ 20,815 $ (4,118) $ 16,697
Cost of goods sold 34,316 (8,418) 25,898 16,742 (3,386) 13,356
Operating Expenses 9,495 (2,154) 7,341 4,361 (856) 3,505
Interest expense, net 2,690 (327) 2,363 1,391 (163) 1,228
Other expense, net 336 (27) 309 40 76 116
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Loss before income taxes (3,062) (98) (3,160) (1,719) 211 (1,508)
Income taxes --- --- --- --- ---
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Net loss $ (3,062) $ (98) $ (3,160) $ (1,719) $ 211 $ (1,508)
Preferred stock dividends 130 --- 130 108 --- 108
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Net loss applicable to
common stock $ (3,192) $ (98) $ (3,290) $ (1,827) $ 211 $ (1,616)
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Weighted average common
and common equivalent shares 2,871 2,871 2,871 2,997 2,997 2,997
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Net loss per common and
common equivalent share $ (1.12) $ (0.03) $ (1.15) $ (0.61) 0.07 $ (0.54)
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See notes to condensed consolidated financial statements
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MET-COIL SYSTEMS CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The accompanying Condensed Statements of Operations have been derived from
statements previously presented in the Company's Annual Report on Form 10-K for
the year ended May 31, 1995 and the Company's Quarterly Report on Form 10-Q for
the quarter ended November 30, 1995 and should be read in connection with the
financial statements and notes thereto included in such reports. Results for
the six months are not necessarily indicative of the results for a full year.
The accompanying proforma statements include adjustments to reflect the sale of
the operations and certain assets and liabilities related to two product lines
of the Rowe subsidiary as of June 1, 1994 with respect to the proforma
Condensed Consolidated Statement of Operations for the year ended May 31, 1995
and December 31, 1995 with respect to the proforma Condensed Consolidated
Balance Sheet and June 1, 1995 with respect to the proforma Condensed
Consolidated Statement of Operations for the six months ended November 30,
1995.
The negative adjustments to the balance sheet represent the accounts of Rowe
that were sold. The positive adjustment to notes and other receivables
represents a note received from the purchaser in connection with the sale. The
positive adjustment to retained earnings (deficit) represents a gain recognized
on the sale.
All of the adjustments to the consolidated condensed statements of operations
for both the year ended May 31, 1995 and the six months ended November 30, 1995
relate to the operations of Rowe being removed from the consolidated
operations.
As more fully described in Item 2 herein, the purchase price for the sale of
the two product lines of $3 million in cash and an adjustable promissory note
for $1.1 million. The Company will realized a gain of approximately $2.6
million from this sale.
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EXHIBITS LIST AND INDEX
Filed Herewith
Exhibit Unless Otherwise
Number Description Indicated
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2 Agreement for the Purchase and *
Sale of Assets dated as of
January 12, 1996 by and among
Rowe Machinery and Automation,
Inc., Mestex, Ltd. and Met-Coil
Systems Corporation
2.a Amendment to Agreement for the *
Purchase and Sale of Assets dated
as of January 12, 1996 by and among
Rowe Machinery and Automation, Inc.,
Mestex, Ltd. and Met-Coil Systems
Corporation
* filed with the Company's 8-K dated February 15, 1996 and incorporated
herein by reference
