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Previous: TM CENTURY INC, DEF 14C, 1999-01-07 |
Next: WLR FOODS INC, 4, 1999-01-07 |
<PAGE>
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
<TABLE>
<S> <C>
Date of Report: January 7, 1999
---------------
Date of Earliest
Event Reported: January 4, 1999
---------------
</TABLE>
COOPER LIFE SCIENCES, INC.
----------------------------------------------------
(Exact name of registrant as specified in its charter)
<TABLE>
<CAPTION>
Delaware 0-13649 94-2563513
- ---------------------------- ----------- ------------------
<S> <C> <C>
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
160 Broadway, New York, New York 10038
- ---------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
</TABLE>
Registrant's telephone number, including area code: (212)791-5362
-------------
Not Applicable
- -----------------------------------------------------------------------------
Former name or former address, if changed since last report
<PAGE>
<PAGE>
Item 2. Acquisition of The Berkshire Bank
On January 4, 1999, Cooper Life Sciences, Inc., a Delaware corporation
("CLS"), through its wholly owned subsidiary, Greater American Finance Group,
Inc. ("GAFG"), purchased 2,396,600 shares, or approximately 99%, of the
outstanding shares of Common Stock (the "Shares") of The Berkshire Bank, a
privately-owned New York State chartered commercial bank (the "Bank"). The
Shares were acquired for a purchase price of $10.50 per share, net to the seller
in cash, upon the terms and conditions set forth in an Offer to Purchase dated
August 6, 1998, and in the related Letter of Transmittal (collectively, the
"Offer"). The total amount of funds required by GAFG to purchase the Shares was
approximately $25.2 million. Such funds were obtained by GAFG from CLS' cash on
hand. The purchase of the Shares pursuant to the Offer was subject to receipt of
the approval of the New York State Banking Board and the approval of the Federal
Reserve Board. Said approvals have been received by CLS and GAFG.
As of the date of the Offer, Mr. Moses Marx was the beneficial owner of
approximately 56% of the issued and outstanding Common Stock of CLS, and was a
member of CLS' Board of Directors. As of said date, Mr. Marx was also the
beneficial owner of 208,000 of the outstanding Shares (approximately 8.97%) of
the Bank, and was a member of its Board of Directors. Mr. Marx has tendered all
of the Shares that were owned by him.
Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits.
a. Financial statements of The Berkshire Bank for the two years
ended December 31, 1997 and the nine month periods ended
September 30, 1998 and 1997.
b. Proforma financial statements.
2
<PAGE>
<PAGE>
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.
COOPER LIFE SCIENCES, INC.
--------------------------
(Registrant)
Date: January 7, 1999 By: /s/ Steven Rosenberg
----------------- ---------------------
Steven Rosenberg
Vice President and Chief
Financial Officer
3
<PAGE>
<PAGE>
THE BERKSHIRE BANK
Balance Sheet
(Dollars in thousands, except per share amounts)
<TABLE>
<CAPTION>
September 30, December 31,
1998 1997 1996
-------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Cash and due from banks $ 728 $ 2,737 $ 1,217
Interest bearing deposits with banks 397 12,322 1,986
Federal funds sold 6,650 20,200 15,800
Investment securities
Available-for-sale 36,037 21,719 17,051
Held-to-maturity (fair value of $14,710 in 1998,
$19,093 in 1997 and $19,871 in 1996) 14,748 19,183 19,941
Loans, net of allowance for loan losses of $803 in
1998, $741 in 1997 and $658 in 1996 38,994 36,338 26,836
Loans held for sale -- -- 200
Accrued interest receivable 754 763 686
Premises and equipment, net of accumulated
depreciation of $45 in 1998, $557 in 1997
and $506 in 1996 275 154 177
Other assets 576 192 66
--------- --------- ---------
Total assets $ 99,159 $ 113,608 $ 83,960
========= ========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest bearing $ 9,160 $ 19,104 $ 7,394
Interest bearing 77,072 84,391 67,658
Securities sold under agreements to repurchase 1,500 -- --
Accrued interest payable 314 333 342
Deferred income 199 -- --
Accrued expenses and accounts payable 830 828 586
--------- --------- ---------
Total liabilities 89,075 104,656 75,980
--------- --------- ---------
Commitments and contingent liabilities
SHAREHOLDERS' EQUITY
Common stock ($1.50 par value, 4,000,000 shares
authorized, 2,317,600 shares issued and
outstanding in 1998 and 1997 and 2,292,600 shares 3,476 3,476 3,439
issued and outstanding in 1996
Additional paid-in capital 12,359 12,359 12,272
Accumulated deficit (5,751) (6,859) (7,571)
Net unrealized (losses) on available-for-sale -- (24) (160)
securities --------- --------- ---------
Total shareholders' equity 10,084 8,952 7,980
--------- --------- ---------
Total liabilities and shareholders' equity $ 99,159 $ 113,608 $ 83,960
========= ========= =========
</TABLE>
4
<PAGE>
<PAGE>
THE BERKSHIRE BANK
Statement of Income
(Dollars in Thousands)
<TABLE>
<CAPTION>
For The Nine Months For The Years
Ended September 30, Ended December 31,
1998 1997 1997 1996
-----------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest Income
Loans $ 2,499 $ 2,175 $ 3,012 $ 2,142
Investment securities 2,149 1,733 2,298 2,109
Federal funds sold 751 678 984 555
Interest bearing deposits with banks 51 104 156 43
------- ------- ------- -------
Total interest income 5,450 4,690 6,450 4,849
------- ------- ------- -------
Interest Expense
Deposits 2,748 2,398 3,269 2,409
Securities sold under agreements
to repurchase 23 9 9 16
------- ------- ------- -------
Total interest expense 2,771 2,407 3,278 2,425
------- ------- ------- -------
Net interest income 2,679 2,283 3,172 2,424
Provision for loan losses 45 45 60 70
------- ------- ------- -------
Net interest income after provision for
loan losses 2,634 2,238 3,112 2,354
------- ------- ------- -------
Other Income (Loss)
Investment securities gains (losses) (7) 11 25 10
Other 278 244 318 325
------- ------- ------- -------
Total other income 271 255 343 335
------- ------- ------- -------
Other Expense
Employee compensation and benefits 1,196 1,121 1,577 1,561
Expense of premises and equipment 280 302 453 437
Other 667 564 713 565
------- ------- ------- -------
Total other expense 2,143 1,987 2,743 2,563
------- ------- ------- -------
Income before income taxes 762 506 712 126
(Benefit) provision for income taxes (322) 50 -- --
------- ------- ------- -------
Net Income $ 1,084 $ 456 $ 712 $ 126
======= ======= ======= =======
</TABLE>
5
<PAGE>
<PAGE>
PRO FORMA CONDENSED COMBINED CONSOLIDATED
FINANCIAL INFORMATION
(Unaudited)
The following statements set forth certain selected condensed financial
information for CLS and the Bank on an unaudited pro forma combined basis giving
effect to the acquisition as if the acquisition had become effective on July 31,
1998, in the case of balance sheet information presented, and as if the
acquisition had become effective at the beginning of the periods indicated, in
the case of operations information presented. CLS utilizes a fiscal year which
ends on October 31 for reporting purposes, whereas the Bank utilizes a fiscal
year which ends on December 31 for such purposes. The financial information
presented combines CLS and the Bank with the Bank's interim results presented to
coincide with the reporting period of CLS and at their respective year-end
reporting periods of October 31 and December 31, respectively.
The unaudited pro forma condensed combined consolidated financial
information set forth in the following tables is presented for informational
purposes only and is not necessarily indicative of the combined financial
position or results of operations that would have occurred had the acquisition
been consummated on July 31, 1998 or at the beginning of the periods indicated
or which may occur in the future.
Earnings per share calculations for The Berkshire Bank (a non-public
bank) for the nine months ended September 30, 1998 and 1997 and the years ended
December 31, 1997 and 1996 has not been presented because the presentation is
not meaningful.
6
<PAGE>
<PAGE>
COOPER LIFE SCIENCES, INC. AND SUBSIDIARY
THE BERKSHIRE BANK
Pro Forma Condensed Combined Consolidated Balance Sheet
(Dollars in Thousands)
<TABLE>
<CAPTION>
July 31, 1998 September 30, 1998
Cooper Life The Pro Forma
Sciences, Inc. Berkshire Bank Adjustments Pro Forma
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Cash and due from banks $ 66,415 $ 728 $ (25,164) $ 41,979
Interest bearing deposits with banks -- 397 -- 397
Federal funds sold -- 6,650 -- 6,650
Securities available-for-sale -- 36,037 -- 36,037
Securities held-to-maturity -- 14,748 -- 14,748
Loans receivable, net -- 38,994 -- 38,994
Accrued interest receivable -- 754 -- 754
Premises and fixtures, net -- 275 -- 275
Deferred taxes 925 -- -- 925
Prepaid expenses and other 489 576 -- 1,065
Goodwill, net of amortization of $565 -- -- 14,515 14,515
-------- -------- --------- --------
Total assets $ 67,829 $ 99,159 $ (10,649) $156,339
======== ======== ========= ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities $ 1,018 $ 830 -- $ 1,848
Income taxes payable 462 -- -- 462
Deposits
Non-interest bearing -- 9,160 -- 9,160
Interest bearing -- 77,072 -- 77,072
Securities sold under agreements to
repurchase -- 1,500 -- 1,500
Deferred income -- 199 -- 199
Accrued interest payable -- 314 -- 314
-------- -------- -------- --------
Total liabilities 1,480 89,075 -- 90,555
-------- -------- -------- --------
Stockholders' equity
Preferred stock -- -- -- --
Common stock 256 3,476 (3,476) 256
Additional paid-in capital 78,546 12,359 (12,359) 78,546
Accumulated deficit (9,680) (5,751) 5,186 (10,245)
Common stock in treasury at cost (2,773) (2,773)
-------- -------- --------- --------
Total stockholders' equity 66,349 10,084 (10,649) 65,784
-------- -------- --------- --------
$ 67,829 $ 99,159 $ (10,649) $156,339
======== ======== ========= ========
</TABLE>
See "Notes to Pro Forma Condensed Combined Consolidated Financial Statements."
7
<PAGE>
<PAGE>
COOPER LIFE SCIENCES, INC. AND SUBSIDIARY
THE BERKSHIRE BANK
Pro Forma Condensed Combined
Consolidated Statement of Operations
(Dollars in Thousands, Except Per Share Data)
For the Nine Months Ended
<TABLE>
<CAPTION>
July 31, 1998 September 30, 1998
Cooper Life The Pro Forma Pro Forma
Sciences, Inc. Berkshire Bank Adjustments (Unaudited)
------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest income $ 2,457 $ 5,450 $ -- $ 7,907
Interest expense -- 2,771 -- 2,771
-------- -------- ------- --------
Net interest income 2,457 2,679 -- 5,136
Provision for loan losses -- 45 -- 45
-------- -------- ------- --------
Net interest income after provision
for loan losses 2,457 2,634 -- 5,091
-------- -------- ------- --------
Non-interest income:
Fees and other income -- 278 -- 278
Net gain (loss) on sales of
securities 38,909 (7) -- 38,902
-------- -------- ------- --------
Total non-interest income 38,909 271 -- 39,180
-------- -------- ------- --------
Non-interest expense:
General and administrative 717 1,476 -- 2,193
Amortization of goodwill -- -- 565 565
Other -- 667 -- 667
-------- -------- ------- --------
Total non-interest expense 717 2,143 565 3,425
-------- -------- ------- --------
Income (loss) before income tax
expense 40,649 762 (565) 40,846
Income tax expense (benefit) 3,670 (322) -- 3,348
-------- -------- ------- --------
Net income $ 36,979 $ 1,084 $ (565) $ 37,498
======== ======== ======= ========
Net income per share:
Basic $17.39 $17.64
====== ======
Diluted $16.37 $16.60
====== ======
Weighted average number of diluted
shares outstanding 2,259 2,259
====== ======
</TABLE>
See "Notes to Pro Forma Condensed Combined Consolidated Financial Statements."
8
<PAGE>
<PAGE>
COOPER LIFE SCIENCES, INC. AND SUBSIDIARY
THE BERKSHIRE BANK
Pro Forma Condensed Combined
Consolidated Statement of Operations
(Dollars in Thousands, Except Per Share Data)
<TABLE>
<CAPTION>
For The Year Ended
October 31, 1997 December 31, 1997
Cooper Life The Pro Forma Pro Forma
Sciences, Inc. Berkshire Bank Adjustments (Unaudited)
----------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest income $ 788 $ 6,450 $ $ 7,238
Interest expense -- 3,278 3,278
-------- ------- ------ --------
Net interest income 788 3,172 3,960
Provision for loan losses -- 60 60
-------- -------- ------ --------
Net interest income after provision
for loan losses 788 3,112 3,900
-------- -------- ------ --------
Non-interest income:
Fees and other income -- 318 318
Net gain on sales of securities 16,845 25 16,870
-------- -------- ------ --------
Total non-interest income 16,845 343 17,188
-------- -------- ------ --------
Non-interest expense:
General and administrative 823 2,030 2,853
Amortization of goodwill -- -- 754 754
Other -- 713 713
-------- -------- ------ --------
Total non-interest expense 823 2,743 754 4,320
-------- -------- ------ --------
Income (loss) before income tax expense 16,810 712 (754) 16,768
Income tax expense 100 -- 100
-------- -------- ------ --------
Net income $ 16,710 $ 712 $ (754) $ 16,668
======== ======== ====== ========
Net income per share:
Primary $7.45 $7.43
===== =====
Diluted $7.45 $7.43
===== =====
Weighted average number of diluted
shares outstanding 2,244 2,244
===== =====
</TABLE>
See "Notes to Pro Forma Condensed Combined Consolidated Financial Statements."
9
<PAGE>
<PAGE>
COOPER LIFE SCIENCES, INC. AND SUBSIDIARY
THE BERKSHIRE BANK
Pro Forma Condensed Combined
Consolidated Statement of Operations
(Dollars in Thousands, Except Per Share Data)
<TABLE>
<CAPTION>
For The Year Ended
October 31, 1996 December 31, 1996
Cooper Life The Pro Forma Pro Forma
Sciences, Inc. Berkshire Bank Adjustments (Unaudited)
---------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest income $ 22 $ 4,849 $ -- $ 4,871
Interest expense 138 2,425 -- 2,563
-------- ------- ------ --------
Net interest income (116) 2,424 2,308
Provision for loan losses -- 70 -- 70
-------- ------- ------ --------
Net interest income after provision
for loan losses (116) 2,354 -- 2,238
-------- ------- ------ --------
Non-interest income:
Fees and other income -- 325 -- 325
Net gain on sales of securities 722 10 -- 732
-------- ------- ------ --------
Total non-interest income 722 335 -- 1,057
-------- ------- ------ --------
Non-interest expense:
General and administrative 809 1,998 -- 2,807
Amortization of goodwill -- -- 754 754
Other 2,096 565 -- 2,661
-------- ------- ------ --------
Total non-interest expense 2,905 2,563 754 6,222
-------- ------- ------ --------
Income (loss) before income tax expense (2,299) 126 (754) (2,927)
Income tax expense -- -- -- --
-------- ------- ------ --------
Net (loss) income $ (2,299) $ 126 $ (754) $ (2,927)
======== ======= ====== ========
Net income per share:
Primary $(1.05) $(1.36)
====== ======
Diluted $(1.05) $(1.36)
====== ======
Weighted average number of
shares outstanding 2,149 2,149
====== ======
</TABLE>
See "Notes to Pro Forma Condensed Combined Consolidated Financial Statements."
10
<PAGE>
<PAGE>
COOPER LIFE SCIENCES, INC. AND SUBSIDIARY
AND THE BERKSHIRE BANK
Notes to Pro Forma Condensed Combined Consolidated
Financial Statements (Unaudited)
(1)
The pro forma financial information presented has been prepared in
conformity with generally accepted accounting principles ("GAAP") and prevailing
practices within the financial services industry. Under GAAP, the assets and
liabilities of the Bank will be combined with those of CLS at book value. In
addition, the statements of operations for the Bank will be combined with those
of CLS as of the earliest period presented. Certain reclassifications have been
included in the pro forma financial statements to conform to CLS's presentation.
CLS utilizes a fiscal year which ends on October 31 for reporting purposes,
whereas the Bank utilizes a fiscal year which ends on December 31 for such
purposes. The unaudited condensed combined consolidated statements of operations
for 1997 and 1996 combine CLS and the Bank at their respective year-end periods.
The unaudited condensed combined consolidated statements of operations for the
nine month period ended July 31, 1998 include the Bank for its nine month period
ended September 30, 1998 to conform with the reporting period of CLS.
Earnings per share calculations for the Bank (a non-public bank) for
the nine months ended September 30, 1998 and the years ended December 31, 1997
and 1996 has not been presented because the presentation is not meaningful.
(2)
The pro forma condensed combined consolidated balance sheets reflects
the $25.2 million of cash used to purchase 2,396,600 shares of the outstanding
Common Stock of the Bank and $15.1 million of goodwill which is being amortized
over a twenty year period. Professional fees and other transaction costs,
approximately $100,000, have been expensed as incurred as they have minimal
effect on pro forma earnings per share. No other purchase accounting adjustments
were made to the assets and liabilities of the Bank as of the acquisition date
since there were no material differences between the fair values and carrying
values on that date.
11
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