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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A2
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 29, 1996
CAPSTONE PHARMACY SERVICES, INC.
(Exact name of Registrant as specified in its charter)
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<S> <C> <C>
Delaware 0-20606 11-2310352
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(State or other (Commission File (Employer
jurisdiction of Number) Identification
incorporation) Number)
</TABLE>
2930 Washington Boulevard, Baltimore, Maryland 21230
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(Address of principal executive offices)
(410) 646-7373
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(Registrant's telephone number, including area code)
Not applicable
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(Former name or former address,
if changed since last report)
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Item 7 Financial Statements and Exhibits
(b) Pro forma financial information
The pro forma financial information previously filed
has been revised and is being filed herewith in order
to replace the previous information. The other portions
of the original 8-K, as amended by Form 8-K/A, have not
been revised and are not being re-filed with this
Amendment.
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CAPSTONE PHARMACY SERVICES, INC.
PRO FORMA SELECTED FINANCIAL DATA
(unaudited)
Pursuant to an Asset Purchase Agreement dated February 29, 1996 (the
Agreement), the Registrant acquired a pharmacy business in Oak Brook, Illinois,
IMD Corporation, an Illinois corporation (IMD), for approximately $15,500,000
in cash. The acquired business was merged into a separate surviving subsidiary
of the Registrant. The Registrant intends to continue the acquired operations
through its subsidiary.
Also, on January 3, 1996, the Registrant closed on the acquisition of Geri-Care
Systems, Inc. and Scripts & Things, Inc., New York corporations (collectively
Geri-Care). A Form 8-K dated December 31, 1995, and a Form 8-K/A dated
December 31, 1995, have previously been filed related to these acquisitions.
On May 22, 1995, the Registrant closed on the acquisition of PremierPharmacy,
Inc. ("Premier"), a provider of institutional and hospital pharmacy services.
The Premier acquisition was accomplished by the merger of a wholly-owned
subsidiary of the Registrant into Premier. The Registrant assumed
responsibility for the operations of Premier effective June 1, 1995, and
reported the acquisition on Form 8-K dated May 22, 1995, filed with
the Commission on June 5, 1995.
The unaudited pro forma income statement data for the ten months ended December
31, 1995 has been prepared based on historical income statements of the
Registrant, as adjusted to reflect the acquisitions of IMD, Geri-Care and
Premier as if each such agreement and merger had been effective March 1, 1995.
The pro forma income statement data may not be indicative of the future results
of operations of or what the actual results of operations would have been had
the acquisitions described above been effective March 1, 1995. The assets and
liabilities of the IMD and Geri-Care acquisitions will be included in
the Registrant's balance sheet as of March 31, 1996, to be filed on Form 10-Q.
The assets and liabilities of the Premier acquisition are included in the
Registrant's balance sheet as of December 31, 1995, filed on Form 10-K.
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CAPSTONE PHARMACY SERVICES, INC.
PRO FORMA INCOME STATEMENT DATA
FOR THE TEN MONTHS ENDED DECEMBER 31, 1995
(in thousands)
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<CAPTION>
Capstone Pharmacy Premier Premier Geri-Care
Services, Inc. quarter ended Pro Forma Systems,
per Form 10-K(a) May 31, 1995(a) Adjustments Inc.(c)
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<S> <C> <C> <C> <C>
Net Sales $ 48,841 $ 5,993 $ 5,820
Cost of Sales 30,876 3,877 3,805
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Gross Profit 17,965 2,116 2,015
Operating Expenses:
Selling and Administrative Expenses 17,869 2,842 1,509
Depreciation and Amortization 1,146 126 14 (b) 86
Restructuring Costs 240 - -
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(Loss) Income from Operations (1,290) (852) 420
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Non-Operating Expense (Income):
Interest Expense, net 634 298 103
Other Income (453) (7) (15)
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Total Non-Operating Expense (Income) 181 291 88
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Income (Loss) before Income Taxes (1,471) (1,143) 332
Provision (Benefit) for Income Taxes 178 (227) 25
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(Loss) Income from Continuing Operations $ (1,649) $ (916) $ 307
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Pro Forma Weighted Average Number of Common
Shares Outstanding
Income (Loss) from Continuing Operations
Per Share
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<CAPTION>
Geri-Care IMD
Pro Forma IMD Pro Forma
Adjustments Corporation(e) Adjustments Pro Forma
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<S> <C> <C> <C> <C>
Net Sales $ 18,736 $ - $ 79,390
Cost of Sales 10,603 - 49,161
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Gross Profit 8,133 - 30,229
Operating Expenses:
Selling and Administrative Expenses 5,227 - 27,447
Depreciation and Amortization 130 (d) 236 254 (d) 1,992
Restructuring Costs - - 240
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(Loss) Income from Operations (130) 2,670 (254) 564
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Non-Operating Expense (Income):
Interest Expense, net (35) 644 (f) 1,644
Other Income (8) - (483)
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Total Non-Operating Expense (Income) - (43) 644 1,161
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Income (Loss) before Income Taxes (130) 2,713 (898) (597)
Provision (Benefit) for Income Taxes 51 - 27
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(Loss) Income from Continuing Operations $ (130) $ 2,662 $ (898) $ (624)
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Pro Forma Weighted Average Number of Common
Shares Outstanding 13,107,000
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Income (Loss) from Continuing Operations
Per Share $ (0.05)
==========
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CAPSTONE PHARMACY SERVICES, INC.
PRO FORMA BALANCE SHEET DATA
AS OF DECEMBER 31, 1995
(in thousands)
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<CAPTION>
Geri-Care Geri-Care IMD
Capstone Pharmacy Systems, Pro Forma IMD Pro Forma
Services, Inc.(g) Inc. (h) Adjustments Corporation Adjustments Pro Forma
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<S> <C> <C> <C> <C> <C> <C>
Current Assets:
Cash and cash equivalents $ 2,763 $ 128 $ 296 $ 3,004 (l) $ 6,191
Accounts Receivable, net of allowance
for doubtful accounts 12,646 2,083 4,837 - 19,566
Inventories 5,023 733 854 - 6,610
Other current assets 1,518 23 - - 1,541
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Total current assets 21,950 2,967 - 5,987 3,004 33,908
Property, equipment and other assets 5,600 873 (1,949)(i) 757 - 5,281
Goodwill, net of accumulated amortization 14,581 - 6,230 (j) - 12,191 (j) 33,002
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Total Assets $ 42,131 $ 3,840 $ 4,281 $ 6,744 $ 15,195 $ 72,191
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Current Liabilities:
Accounts payable $ 4,671 $ 1,001 $ 2,627 $ - $ 8,299
Other current liabilities 6,464 1,185 209 - 7,858
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Total current liabilities 11,135 2,186 2,836 - 16,157
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Other long-term liabilities 1,464 - - - 1,464
Long-term debt, net of current portion 2,692 303 - 10,303 (m) 13,298
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4,156 303 - 10,303 14,762
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Stockholders' equity:
Capital 39,121 400 5,232 (k) 2 8,798 (n) 53,553
Retained earnings (12,281) 951 (951)(k) 3,906 (3,906)(k) (12,281)
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26,840 1,351 4,281 3,908 4,892 41,272
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Total liabilities and
stockholders' equity $ 42,131 $ 3,840 4,281 $ 6,744 $ 15,195 $ 72,191
====================================================================================
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CAPSTONE PHARMACY SERVICES, INC.
NOTES TO PRO FORMA INCOME STATEMENT AND BALANCE SHEET DATA
FOR THE TEN MONTHS ENDED AND AS OF DECEMBER 31, 1995
(unaudited)
(a) The historical financial statements of Capstone for the ten months
ended December 31, 1995 include the results of operations of Premier
from June 1, 1995 through December 31, 1995. The Premier column
reflects the operations of Premier for the quarter ended May 31, 1995,
which is the time prior to their acquisition by Capstone.
(b) Reflects the amortization of the goodwill from the Premier acquisition
for the quarter ended May 31, 1995.
(c) Reflects Geri-Care results for the nine months ended September 30,
1995, which do not differ materially from ten month results.
(d) Reflects the amortization of goodwill from the Geri-Care and IMD
acquisitions for the ten months ended December 31, 1995.
(e) Reflects IMD results for the year ended December 31, 1995, which do
not differ materially from ten month results.
(f) Reflects additional interest expense on the long-term debt used to
finance the IMD acquisition.
(g) The historical balance sheet of Capstone Pharmacy Services, Inc. as of
December 31, 1995 includes the assets and liabilities of Premier as of
that date.
(h) Reflects the financial position of Geri-Care as of September 30, 1995,
which does not differ materially from its financial position at
December 31, 1995.
(i) Reflects post-closing entries recorded to Geri-Care's balance sheet to
write-off computer equipment and other assets. Also reflect the
reversal of an advance to Geri-Care's former shareholders recorded
prior to the acquisition.
(j) Reflects the goodwill recorded for the Geri-Care and IMD acquisitions.
(k) Reflects the elimination of intercompany equity accounts.
(l) Reflects the excess proceeds from the private placement that was used
partially to finance the IMD acquisition net of cash acquired.
(m) Reflects the long-term debt incurred to partially finance the IMD
acquisition.
(n) Reflects the elimination of intercompany equity accounts and a private
placement used to partially finance the IMD acquisition.
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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.
CAPSTONE PHARMACY SERVICES, INC.
By: /s/ Donald W. Hughes
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Vice-President and
Chief Financial Officer
Date: August 7, 1996
