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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
(Amendment No. 1)
AMENDMENT TO CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 27, 1998
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Stevens International, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 1-9603 75-2159407
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
5500 Airport Freeway, Fort Worth, Texas 76117
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (817) 831-3911
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Page 1 of 7 pages.
Index to Exhibits appears at page 7.
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Reference is made to the Current Report filed by the Company on Form 8-K dated
April 27, 1998 (the "Form 8-K"). The Form 8-K is amended in its entirety by the
following:
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
SALE OF ZERAND DIVISION
On April 27, 1998, the Company sold substantially all the assets of the
Zerand division to Valumaco Incorporated, a new company formed for the asset
purchase. In addition, Valumaco Incorporated assumed certain liabilities of the
Zerand division. The assets sold included the real property, platen die cutter
systems, and other original Zerand products such as delivery equipment, wide-web
rotogravure printing systems, stack flexographic printing systems, unwind and
butt splicer systems, and related spare parts, accounts payable, and other
assumed liabilities. Excluded from the proposed transaction were the System
2000 flexographic printing systems and the System 9000 narrow-web rotogravure
printing systems produced at the Zerand division and related accounts
receivable, inventory and engineering drawings. The sale price was
approximately $13.7 million, which consisted of cash proceeds of $10.1 million,
a one-year $1 million escrow "holdback", and the purchaser's assumption of
approximately $2.6 million of certain liabilities of Zerand, including the
accounts payable.
This transaction resulted in an approximate $10 million reduction of the
Company's senior debt. In 1997, Zerand contributed sales of approximately $11.6
million and approximately $1.8 million income before interest, corporate charges
and taxes to the Company's financial statements. The Company will realize an
approximate $3.6 million gain on the sale of Zerand assets, which will be
reflected in the financial statements for the second quarter of 1998.
The accompanying pro forma statement of operations for the 12 months ended
December 31, 1997 shows the impact of the sale of the Zerand division on 1997
operations, assuming the transaction had occurred as of January 1, 1997.
To the best knowledge of the Company, there is no material relationship
between Purchaser and the Company or any of its affiliates, any director or
officer of the Company, or any associate of such director or officer.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(A) NONE.
(B) PRO FORMA FINANCIAL INFORMATION.
Pro Forma Consolidated Statements of Operations for the year ended December
31, 1997*
Pro Forma Balance Sheet as of December 31, 1997*
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(C) EXHIBITS.
The following is a list of exhibits filed as part of this Amendment to
Current Report on Form 8-K.
EXHIBIT
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NUMBER DESCRIPTION OF EXHIBIT
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2.1 Asset Purchase Agreement (1)
__________________
* Filed herewith.
(1) Previously filed.
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STEVENS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
PRO FORMA
ASSUMING ZERAND DIVISION WAS SOLD JANUARY 1, 1997
(AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
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PRO FORMA PRO FORMA
1997 TRANSACTIONS AMOUNTS
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<S> <C> <C> <C>
Net sales............................................... $ 35,151 $(11,594) (1) $ 23,557
Cost of sales........................................... (34,011) 8,687 (1) (25,324)
-------- -------- --------
Gross profit (loss)..................................... 1,140 (2,907) (1,767)
Selling, general and administrative expenses............ (9,837) 808 (1) (9,029)
Loss on impairment of asset values...................... (6,347) -- (6,347)
Gain on sale of assets.................................. -- 3,557 (2) 3,557
-------- -------- --------
Operating income (loss)................................. (15,044) 1,458 (13,586)
Other income (expense):
Interest income........................................ 95 -- 95
Interest expense....................................... (3,666) 1,026 (3) (2,640)
Other, net............................................. (825) 294 (1) (531)
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(4,396) 1,320 (3,076)
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Income (loss) before taxes.............................. $(19,440) $ 2,778 $(16,662)
Income tax benefit (expense)............................ 213 -- 213
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Net income (loss).................................... $(19,227) $ 2,778 $(16,449)
======== ======== ========
Net income (loss) per common share - basic:............. $(2.03) $0.29 $(1.74)
======== ======== ========
Net income (loss) per common share - diluted:........... $(2.03) $0.29 $(1.74)
======== ======== ========
Weighted average number of shares of common and
common stock equivalents outstanding during the
periods - basic........................................ 9,457 9,457 9,457
======== ======== ========
Weighted average number of shares of common and
common stock equivalents outstanding during the
periods - diluted...................................... 9,457 9,457 9,457
======== ======== ========
</TABLE>
(1) To exclude sale and costs incurred by Zerand division in 1997.
(2) The "gain on sale of assets" is included in 1997 since the gain would not
have been previously recognized.
(3) Decrease in interest expense for 1997, assuming the $9.77 million in net
proceeds reduced the Company's Senior indebtedness at January 1, 1997 at an
interest rate of 10.5% for the 12 months.
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STEVENS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
PRO FORMA
ASSUMING ZERAND DIVISION WAS SOLD DECEMBER 31, 1997
(AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
DECEMBER 31,
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PRO FORMA PRO FORMA
ASSETS 1997 TRANSACTIONS AMOUNTS
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<S> <C> <C> <C>
Current assets:
Cash................................................. $ 211 $ 211
Trade accounts receivable, less allowance for
losses of $374 and $4,225 in 1997 and 1996,
respectively........................................ 3,158 3,158
Costs and estimated earnings in excess of
billings on long-term contracts..................... 2,209 2,209
Inventory............................................ 6,610 6,610
Other current assets................................. 759 $ 824 (1) 1,583
Assets held for sale................................. 14,735 (7,118) (1) 7,617
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Total current assets............................... 27,682 (6,294) 21,388
Property, plant and equipment, net.................... 2,409 -- 2,409
Other assets, net..................................... 1,799 -- 1,799
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$ 31,890 $ (6,294) $ 25,596
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities:
Trade accounts payable............................... $ 2,691 $ 2,691
Billings in excess of costs and estimated
earnings on long-term contracts..................... 133 133
Other current liabilities............................ 6,322 $ (78) (1) 6,244
Customer deposits.................................... 802 -- 802
Advances from affiliates............................. 950 -- 950
Current portion of long-term debt.................... 27,678 (9,773) (1) 17,905
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Total current liabilities.......................... 38,576 (9,851) 28,725
Long-term debt........................................ 55 55
Accrued pension costs................................. 2,870 2,870
Commitments and contingencies......................... -- --
Stockholders' equity:
Series A Common Stock, $0.10 par value............... 739 739
Series B Common Stock, $0.10 par value............... 210 210
Additional paid-in capital........................... 39,941 39,941
Foreign currency translation adjustment.............. (769) (769)
Excess pension liability adjustment.................. (2,245) (2,245)
Retained earnings (deficit).......................... (47,487) 3,557 (1) (43,930)
-------- -------- --------
Total stockholders' equity (deficit)............... (9,611) 3,557 (6,054)
-------- -------- --------
$ 31,890 $ (6,294) $ 25,596
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</TABLE>
(1) There are no pro forma transactions, other than the assumed sale on December
31, 1997, as the net assets of the Zerand division were reflected in the
December 31, 1997 balance sheet as "Assets Held For Sale". Proceeds from the
sale were used as a direct reduction of the current portion of long-term
debt and the elimination of the deferred expenses of the sale. The gain on
the sale of the assets of $3.557 million is reflected in "Retained earnings
(deficit)".
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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.
STEVENS INTERNATIONAL, INC.
Date: June 30, 1998 By: /s/ Paul I. Stevens
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Paul I. Stevens
Chairman of the Board,
Chief Executive Officer and
Acting Chief Financial Officer
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INDEX TO EXHIBITS
SEQUENTIALLY
EXHIBIT NUMBERED
NUMBER EXHIBIT PAGE
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2.1 Asset Purchase Agreement (1)
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(1) Previously filed.
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