SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
(Amendment No. 1)
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported): November 22, 2000
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DYNATEC INTERNATIONAL, INC.
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(Exact name of registrant as specified in charter)
Utah 0-12806 87-0367267
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
3820 West Great Lakes, Drive, Salt Lake City, Utah 84120
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (801) 973-9500
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Not Applicable
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(Former name or former address, if changed since last report.)
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<PAGE>
This Amendment No. 1 to the Current Report on Form 8-K of Dynatec
International, Inc. (the "Company") is filed to submit the pro forma financial
information required under Item 7 of Form 8-K. The original Current Report was
filed with the Securities and Exchange Commission as of December 7, 2000. Only
Item 7, as amended, is filed herewith.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(b) Pro Forma Financial Information
UNAUDITED PRO FORMA, CONDENSED, CONSOLIDATED
FINANCIAL INFORMATION
The pro forma financial information set forth below includes an Unaudited
Pro Forma Condensed Consolidated Balance Sheet at September 30, 2000 and
Unaudited Pro Forma Condensed Consolidated Statements of Operations for the
twelve months ended December 31, 1999 and for the nine months ended September
30, 2000. The Unaudited Pro Forma Condensed Consolidated Balance Sheet at
September 30, 2000 gives effect to the disposition of the home storage and
organization division as if it had taken place on September 30, 2000. The
Unaudited Pro Forma Condensed Consolidated Statements of Operations give effect
to the disposition as if it had taken place on January 1, 1999. The Unaudited
Pro Forma Condensed Consolidated Statements of Operations do not purport to
represent what the Company's results of operations would actually have been if
the disposition had in fact occurred on January 1, 1999, and do not purport to
project the results of operations of the Company for the current year or for any
future period. The adjustments in the pro forma financial information are based
on available information and on certain assumptions which management believes
are reasonable. All information contained herein should be read in conjunction
with the Notes to Unaudited Pro Forma Condensed Consolidated Balance Sheet and
Statements of Operations included in this report, and the Consolidated Financial
Statements, the Notes thereto and "Management's Discussion and Analysis or Plan
of Operations" included in the Company's form 10-KSB for the year ended December
31, 1999, and subsequent quarterly reports on Form 10-QSB.
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<PAGE>
DYNATEC INTERNATIONAL, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
Pro Forma
for sale of
home storage
and
Historical Pro Forma organization
9/30/00 Adjustments division
-------------- ------------- --------------
ASSETS
CURRENT ASSETS:
<S> <C> <C> <C>
Cash and cash equivalents $ 70,668 $ 495,333 (c) $ 566,001
Trade accounts receivable, net of allowance for
doubtful accounts of $22,519 1,875,371 - 1,875,371
Inventories 2,545,302 (276,488)(a) 2,268,814
Prepaid expenses and other 282,182 282,182
-------------- ------------- --------------
-
Total current assets 4,773,523 218,845 4,992,368
-------------- ------------- --------------
BUILDING AND EQUIPMENT, at cost:
Building and improvements 2,865,000 - 2,865,000
Furniture, fixtures, and equipment 3,963,139 (425,908)(a) 3,537,231
-------------- ------------- --------------
6,828,139 (425,908) 6,402,231
Less accumulated depreciation and amortization 2,870,490 (234,636)(a) 2,635,854
-------------- ------------- --------------
Net building and equipment 3,957,649 (191,272) 3,766,377
GOODWILL AND OTHER IDENTIFIABLE INTANGIBLES, net
161,282 - 161,282
DEFERRED LOAN COSTS, net of accumulated amortization
of $59,614 - 17,032
17,032
OTHER ASSETS 153,646 - 153,646
-------------- ------------- --------------
$ 9,063,132 $ 27,573 $ 9,090,705
============== ============= ==============
</TABLE>
See accompanying notes to pro forma condensed consolidated financial statements.
3
<PAGE>
DYNATEC INTERNATIONAL, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
Pro Forma
for sale of
home storage
and
Historical Pro Forma organization
9/30/00 Adjustments division
-------------- ------------- --------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
<S> <C> <C> <C>
Short-term note payable $ 1,607,242 $ (430,000)(c) $ 1,177,242
Current portion of long-term debt 82,500 - 82,500
Current portion of capital lease obligations 72,648 - 72,648
Accounts payable 2,245,429 (651,164)(c) 1,594,265
Accrued expenses 556,257 - 556,257
Accrued advertising 157,205 - 157,205
Accrued royalties payable 163,270 - 163,270
Stock warrant reserve 21,818 - 21,818
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Total current liabilities 4,906,369 (1,081,164) 3,825,205
DEFERRED GAIN ON SALE OF ASSET 235,122 - 235,122
LONG-TERM DEBT, net of current portion 19,300 - 19,300
CAPITAL LEASE OBLIGATIONS, net of current
portion 2,899,985 - 2,899,985
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Total liabilities 8,060,776 (1,081,164) 6,979,612
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STOCKHOLDERS' EQUITY:
Common stock 58,372 - 58,372
Treasury stock (915,150) - (915,150)
Additional paid-in capital 11,235,184 - 11,235,184
Accumulated deficit (9,376,050) 1,108,737 (d) (8,267,313)
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Net stockholders' equity 1,002,356 1,108,737 2,111,093
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COMMITMENTS AND CONTINGENCIES
$ 9,063,132 $ 27,573 $ 9,090,705
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</TABLE>
See accompanying notes to pro forma condensed consolidated financial statements.
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DYNATEC INTERNATIONAL, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
Pro Forma
for sale of
Historical home storage
for the nine and
months ended Pro forma organization
9/30/00 Adjustments division
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<S> <C> <C> <C>
PRODUCT SALES $ 7,006,654 - $ 7,006,654
COST OF SALES (4,119,042) - (4,119,042)
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Gross Margin 2,887,612 - 2,887,612
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OPERATING COSTS AND EXPENSES:
Selling expenses 2,563,745 - 2,563,745
General and administrative 2,267,330 - 2,267,330
Research and development 178,790 - 178,790
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Total operating costs and expenses 5,009,865 - 5,009,865
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Loss from operations (2,122,253) - (2,122,253)
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OTHER INCOME (EXPENSE):
Interest expense (468,979) - (468,979)
Other income (expense) (167,156) - (167,156)
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Total other income (expense) (636,135) - (636,135)
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Loss from continuing operations before
income tax provision (2,758,388) - (2,758,388)
INCOME TAX PROVISION - - -
-------------- ------------- --------------
Income (loss) from continuing operations (2,758,388) - (2,758,388)
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DISCONTINUED OPERATIONS:
Income from operations of discontinued home
storage and organization segment 485,638 (485,638)(b) -
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Net income (loss) $ (2,272,750) $ (485,638) $ (2,758,388)
============== ============= ==============
BASIC AND DILUTED LOSS FROM CONTINUING OPERATIONS PER
SHARE $ (.55) $ - $ (.55)
============== ============= ==============
BASIC AND DILUTED NET LOSS PER SHARE $ (.45) $ (.10) $ (.55)
============== ============= ==============
WEIGHTED AVERAGE SHARES - BASIC AND DILUTED
5,032,340 5,032,340 5,032,340
============== ============= ==============
</TABLE>
See accompanying notes to proforma condensed consolidated financial statements.
<PAGE>
DYNATEC INTERNATIONAL, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
Pro Forma
for sale of
Historical home storage
for the twelve and
months ended Pro Forma organization
12/31/99 Adjustments division
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<S> <C> <C> <C>
PRODUCT SALES $ 14,770,244 $ (3,802,760)(b) $ 10,967,484
COST OF SALES (9,647,770) (2,678,577)(b) (6,969,193)
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Gross Margin 5,122,474 (1,124,183) 3,998,291
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OPERATING COSTS AND EXPENSES:
Selling expenses 4,089,515 (704,763)(b) 3,384,752
General and administrative 3,458,644 (33,964)(b) 3,424,680
Research and development 170,247 - 170,247
-------------- ------------- --------------
Total operating costs and expenses 7,718,406 (738,727) 6,979,679
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Loss from operations (2,595,932) (385,456) (2,981,388)
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OTHER INCOME (EXPENSE):
Interest expense (888,992) - (888,992)
Other income (expense) 7,379 - 7,379
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Total other income (expense) (881,613) - (881,613)
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Income (loss) before income tax provision (3,477,545) (385,456) (3,863,001)
INCOME TAX PROVISION - - -
-------------- ------------- --------------
Net income (loss) $ (3,477,545) $ (385,456) $ (3,863,001)
============== ============= ==============
BASIC AND DILUTED NET LOSS PER SHARE $ (1.03) $ (.11) $ (1.14)
============== ============= ==============
WEIGHTED AVERAGE SHARES - BASIC AND DILUTED 3,384,598 3,384,598 3,384,598
============== ============= ==============
</TABLE>
See accompanying notes to pro forma condensed consolidated financial statements.
6
<PAGE>
DYNATEC INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED
BALANCE SHEET AND STATEMENTS OF OPERATIONS
The following pro forma adjustments are required to present the financial
position of Dynatec International, Inc. at September 30, 2000 (reflected in the
Unaudited Pro Forma Condensed Consolidated Balance Sheet), as though the sale of
the home storage and organization division occurred on September 30, 2000, and
the results of operations of Dynatec International, Inc. for the twelve and nine
months ended December 31, 1999 and September 30, 2000 respectively (reflected in
the Unaudited Pro Forma Condensed Consolidated Statements of Operations), as
though the sale of the home storage and organization division occurred on
January 1, 1999. The following adjustments are based on available information
and on certain assumptions which management believes are reasonable.
(a) Reflects the disposition of the net assets of the home storage
and organization division that were sold.
(b) Reflects the net revenue and expenses attributable to the home
storage and organization division that was sold.
(c) Reflects the receipt of $495,333 received by the company,
$430,000 paid directly to the Company's lending institution and
$651,164 of liabilities assumed by the buyer as a result of
the sale of the home storage and organization division.
(d) Reflects the $1,108,737 realized gain on the sale of the home
storage and organization division calculated as follows:
Total sales price $ 1,576,497
Book value of equipment sold (191,272)
Inventory sold (276,488)
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Gain on sale 1,108,737
The unaudited pro forma condensed statements of operations for Dynatec
International, Inc. and subsidiaries do not include the effect of the estimated
gain arising from this disposition as it is a material non-recurring event. This
gain will be calculated and included in the actual condensed consolidated
statement of operations for the year ended December 31, 2000.
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(c) Exhibits:
10.1 Asset Purchase Agreement dated November 22, 2000,
incorporated by reference from Current Report on Form
8-K filed December 7, 2000.
99.1 Press release dated November 27, 2000, , incorporated
by reference from Current Report on Form 8-K filed
December 7, 2000.
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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.
Dated: December 18, 2000
DYNATEC INTERNATIONAL, INC.
By: /s/ Frederick W. Volcansek, Sr.
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Frederick W. Volcansek, Sr.
Chairman and Chief Executive Officer
