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
Date of Report: February 18, 2000
RALSTON PURINA COMPANY
----------------------------------------------------
(Exact name of Registrant as specified in its charter)
MISSOURI 1-4582 No. 43-0470580
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(State or Other (Commission (IRS Employer
Jurisdiction of File Number) Identification
Incorporation) Number)
CHECKERBOARD SQUARE, ST. LOUIS, MISSOURI 63164
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Address of Principal Executive Offices (Zip Code)
(314) 982-1000
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(Registrant's telephone number, including area code)
<PAGE>
Item 5. Other Events
As previously disclosed, Ralston Purina Company intends to separate its Battery
Products business in a tax-free spin-off to shareholders. Completion of the
spin-off is expected to take place April 1, 2000 and is contingent upon
effectiveness of a registration statement relating to the spin-off and final
approval by the Ralston Purina Board of Directors.
Ralston Purina Company is today filing financial information to reflect the
Company's Battery Products business as a discontinued operation and reflect pro
forma adjustments associated with the distribution of this business to Ralston
Purina Company shareholders.
The pro forma consolidated statements of earnings for the year ended September
30, 1999 and the quarters ended December 31, 1999 and December 31, 1998, present
Ralston Purina Company results as if the distribution had occurred as of the
beginning of the period presented. These statements of earnings have been
prepared by adjusting the historical statements of earnings to reflect the
Company's Battery Products business as a discontinued operation and include the
effect on estimated costs and expenses as a result of the distribution.
The pro forma consolidated balance sheet at December 31, 1999, presents the
consolidated financial position of Ralston Purina Company, assuming the
distribution had occurred at that date. Such balance sheet has been prepared by
adjusting the historical balance sheet for the effect of changes in assets,
liabilities and capital associated with the distribution.
Pro forma financial statements may not necessarily reflect the consolidated
results of operations or financial position that would have existed had the
distribution been effected on the dates specified nor are they indicative of
future results.
<TABLE>
<CAPTION>
RALSTON PURINA COMPANY
PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS
QUARTER ENDED DECEMBER 31, 1999
(Dollars in millions except per share data)
ADJUSTMENTS FOR
DISCONTINUED
OPERATIONS
---------------
Pro
Forma
As Battery Sub- Adjust- Pro
Reported Products total ments Forma
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net Sales. . . . . . . . . . . . . . . . . $1,414.5 $686.2 $728.3 $ - $728.3
Costs and Expenses
Cost of products sold. . . . . . . . . 627.5 334.9 292.6 - 292.6
Selling, general and administrative. . 225.5 110.4 115.1 - 115.1
Advertising and promotion. . . . . . . 230.3 67.6 162.7 - 162.7
Interest . . . . . . . . . . . . . . . 48.2 1.6 46.6 (7.0)(a) 39.6
Unrealized gain on SAILS debt. . . . . (75.6) - (75.6) - (75.6)
Restructuring reversals. . . . . . . . (5.8) (5.8) - - -
Other (income)/expense, net. . . . . . (6.0) 0.5 (6.5) - (6.5)
--------- ------- ------- ------ -------
1,044.1 509.2 534.9 (7.0) 527.9
Earnings from Continuing Operations before
Income Taxes and Equity Earnings . . . . 370.4 177.0 193.4 7.0 200.4
Income Taxes . . . . . . . . . . . . . . . (135.4) (69.3) (66.1) (4.7)(b) (70.8)(d)
Equity Earnings, Net of Taxes. . . . . . . 7.8 - 7.8 - 7.8
-------- ------- ----- -------- -------
Earnings from Continuing Operations . . $ 242.8 (c) $107.7 $135.1 $ 2.3 $137.4 (c)
======== ====== ======= ======= =======
Earnings Per Share from Continuing
Operations
Basic $ 0.83 $ 0.47
Diluted $ 0.82 $ 0.47
Average Shares Outstanding Used for
Earnings Per Share Computation
Basic 292.2 292.2
Diluted 295.1 295.1
(a) To reflect reduction of interest expense based on Battery Products' net
debt of approximately $585 at an average annual short-term
rate of 5.9%. Assumes proceeds from Battery Products' issuance of debt are
used to pay-down Ralston's short-term debt.
(b) To reflect the tax effect of the above pro forma adjustment and Ralston's
tax rate post spin-off.
(c) Earnings from continuing operations (As Reported and Pro Forma) includes an
unrealized after-tax gain related to the Company's SAILS debt of
$48.4, or $.16 per basic and diluted share. In addition, As Reported
earnings includes an after-tax Battery Products' restructuring reversal
of $4.5, or $.02 per basic and diluted share.
(d) The effective tax rate for the quarter, excluding taxes on the unrealized
SAILS gain, is 34.9%.
</TABLE>
<TABLE>
<CAPTION>
RALSTON PURINA COMPANY
PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS
QUARTER ENDED DECEMBER 31, 1998
(Dollars in millions except per share data)
ADJUSTMENTS FOR
DISCONTINUED
OPERATIONS
---------------
Pro
Forma
As Battery Sub- Adjust- Pro
Reported Products total ments Forma
-------- ------- -------- -------- ---------
<S> <C> <C> <C> <C> <C>
Net Sales. . . . . . . . . . . . . . . . . $1,291.8 $612.7 $679.1 $ - $679.1
Costs and Expenses
Cost of products sold. . . . . . . . . 628.4 327.7 300.7 - 300.7
Selling, general and administrative. . 239.2 120.2 119.0 - 119.0
Advertising and promotion. . . . . . . 193.9 59.2 134.7 - 134.7
Interest . . . . . . . . . . . . . . . 49.4 1.7 47.7 (6.2) (a) 41.5
Unrealized gain on SAILS debt. . . . . (70.2) - (70.2) - (70.2)
Other (income)/expense, net. . . . . . (11.0) 2.1 (13.1) - (13.1)
--------- ------- ------- ------ -------
1,029.7 510.9 518.8 (6.2) 512.6
Earnings from Continuing Operations before
Income Taxes and Equity Earnings . . . . 262.1 101.8 160.3 6.2 166.5
Income Taxes . . . . . . . . . . . . . . . (94.3) (40.4) (53.9) (3.7) (b) (57.6)(d)
Equity Earnings, Net of Taxes. . . . . . . 9.0 - 9.0 - 9.0
--------- ------- ------- ------ -------
Earnings from Continuing Operations. . . . $ 176.8 (c)$ 61.4 $115.4 $ 2.5 $117.9 (c)
========= ======= ======= ====== =======
Earnings Per Share from Continuing Operations
Basic $ 0.58 $ 0.39
Diluted $ 0.55 $ 0.37
Average Shares Outstanding Used for Earnings Per Share Computation
Basic 299.1 299.1
Diluted 319.4 319.4
(a) To reflect reduction of interest expense based on Battery Products' net
debt of approximately $585 at an average annual short-term
rate of 5.7%. Assumes proceeds from Battery Products' issuance of debt are
used to pay-down Ralston's short-term debt.
(b) To reflect the tax effect of the above pro forma adjustment and Ralston's
tax rate post spin-off.
(c) Earnings from continuing operations (As Reported and Pro Forma) includes an
unrealized after-tax gain related to the Company's SAILS debt of
$44.9, or $.15 and $.14 per basic and diluted share, respectively.
(d) The effective tax rate for the quarter, excluding taxes on the unrealized
SAILS gain, is 33.5%.
</TABLE>
<TABLE>
<CAPTION>
RALSTON PURINA COMPANY
PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS
YEAR ENDED SEPTEMBER 30, 1999
(Dollars in millions except per share data)
ADJUSTMENTS FOR
DISCONTINUED
OPERATIONS
---------------
Pro
Forma
As Battery Sub- Adjust- Pro
Reported Products total ments Forma
-------- ------- -------- -------- ---------
<S> <C> <C> <C> <C> <C>
Net Sales. . . . . . . . . . . . . . . . . $4,720.5 $2,000.0 $2,720.5 $ - $2,720.5
Costs and Expenses
Cost of products sold. . . . . . . . . 2,269.8 1,111.1 1,158.7 - 1,158.7
Selling, general and administrative. . 947.3 463.4 483.9 - 483.9
Advertising and promotion. . . . . . . 740.8 164.9 575.9 - 575.9
Interest . . . . . . . . . . . . . . . 183.4 3.8 179.6 (24.9) (a) 154.7
Provisions/(reversals) for restructuring 95.2 98.4 (3.2) - (3.2)
Unrealized gain on SAILS debt. . . . . (123.5) - (123.5) - (123.5)
Gain on sale and conversion of stock . (86.0) - (86.0) - (86.0)
Other (income)/expense, net. . . . . . (22.3) 8.6 (30.9) - (30.9)
--------- --------- --------- ------- ---------
4,004.7 1,850.2 2,154.5 (24.9) 2,129.6
Earnings from Continuing Operations before
Income Taxes and Equity Earnings . . . . 715.8 149.8 566.0 24.9 590.9
Income Taxes . . . . . . . . . . . . . . . (246.6) (64.6) (182.0) (10.1)(b) (192.1)(d)
Equity Earnings, Net of Taxes. . . . . . . 35.9 - 35.9 - 35.9
--------- --------- --------- ------- ---------
Earnings from Continuing Operations. . . . $ 505.1(c) $ 85.2 $ 419.9 $ 14.8 $ 434.7 (c)
========= ========= ========= ======= =========
Earnings Per Share from Continuing Operations
Basic $ 1.63 $ 1.40
Diluted $ 1.60 $ 1.38
Average Shares Outstanding Used for Earnings Per Share Computation
Basic 307.8 307.8
Diluted 314.9 314.9
(a) To reflect reduction of interest expense based on Battery Products' net
debt of approximately $585 at an average annual short-term
rate of 5.3%. Assumes proceeds from Battery Products' issuance of debt are
used to pay-down Ralston's short-term debt.
(b) To reflect the tax effect of the above pro forma adjustment and Ralston's
tax rate post spin-off.
(c) Earnings from continuing operations (As Reported and Pro Forma) includes
several unusual items: an after-tax restructuring reversal of
$3.2, or $.01 per basic and diluted share; an unrealized after-tax gain
related to the Company's SAILS debt of $79.0, or $.26 and $.25 per
basic and diluted share, respectively; an after-tax gain on the sale and
conversion of the Company's investments in common stock of $55.0, or
$.18 and $.17 per basic and diluted share; and capital loss tax benefits
of $10.0, or $.03 per basic and diluted share. In addition, As
Reported earnings includes after-tax restructuring charges for Battery
Products of $64.6, or $.21 and $.20 per basic and diluted share.
(d) The effective tax rate for the year, excluding unusual items, is 33.5%.
</TABLE>
<TABLE>
<CAPTION>
RALSTON PURINA COMPANY
PRO FORMA CONSOLIDATED BALANCE SHEET
DECEMBER 31, 1999
(Dollars in millions)
ADJUSTMENTS FOR
DISCONTINUED
OPERATIONS
---------------
Pro
Forma
As Battery Sub- Adjust- Pro
Reported Products total ments Forma
-------- ------- -------- -------- ---------
<S> <C> <C> <C> <C> <C>
ASSETS
Current Assets -
Cash and cash equivalents. . . . . . $ 110.4 $ 19.9 $ 90.5 - $ 90.5
Receivables, less allowance
for doubtful accounts . . . . . 870.2 644.9 225.3 - 225.3
Inventories. . . . . . . . . . . . . 471.9 345.6 126.3 - 126.3
Other current assets . . . . . . . . 66.9 68.7 (1.8) - (1.8)
-------- ---------- --------- -------- --------
Total Current Assets . . . . . . 1,519.4 1,079.1 440.3 - 440.3
Investments and Other Assets . . . . . 2,922.2 401.9 2,520.3 - 2,520.3
Investment in Discontinued Operations. - (1,322.7) 1,322.7 (1,322.7)(a) -
Property at Cost . . . . . . . . . . . 2,202.7 1,016.9 1,185.8 - 1,185.8
Accumulated depreciation . . . . . . 1,133.4 547.7 585.7 - 585.7
-------- ---------- --------- ------- ---------
Net Property . . . . . . . . . . . 1,069.3 469.2 600.1 - 600.1
-------- ---------- --------- ------- ---------
Total. . . . . . . . . . . . . . $5,510.9 $ 627.5 $4,883.4 $(1,322.7) $3,560.7
======== ========== ========= ========== =========
LIABILITIES AND SHAREHOLDERS EQUITY
Current Liabilities
Current maturities of long-term debt $ 295.7 $ 0.3 $ 295.4 - $ 295.4
Notes payable. . . . . . . . . . . . 809.6 130.9 678.7 (474.1)(b) 204.6
Accounts payable . . . . . . . . . . 265.3 121.3 144.0 - 144.0
Other current liabilities. . . . . . 566.0 242.7 323.3 - 323.3
-------- ---------- --------- --------- ---------
Total Current Liabilities. . . . 1,936.6 495.2 1,441.4 (474.1) 967.3
Long-term Debt . . . . . . . . . . . . 1,251.2 1.4 1,249.8 - 1,249.8
Deferred Income Taxes. . . . . . . . . 461.0 7.3 453.7 - 453.7
Other Liabilities. . . . . . . . . . . 551.9 123.6 428.3 - 428.3
Shareholders Equity. . . . . . . . . . 1,310.2 - 1,310.2 (848.6) 461.6
-------- -------- --------- ---------- ---------
Total. . . . . . . . . . . . . . $5,510.9 $ 627.5 $4,883.4 $(1,322.7) $3,560.7
======== ========== ========= ========== =========
(a) To eliminate the Company's investment in the Battery Products segment.
(b) To reflect assumption of debt by Energizer.
</TABLE>
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.
RALSTON PURINA COMPANY
By: /s/ Anita M. Wray
Anita M. Wray
Vice President and Controller
Dated: February 18, 2000
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