SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K/A
(Amendment No. 2)
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: July 8, 1996
Seafield Capital Corporation
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Missouri 0-16946 43-1039532
-----------------------------------------------------------------
(State of other (Commission File Number) (IRS Employer
jurisdiction of Identification
incorporation) Number)
2600 Grand Ave. Suite 500
P. O. Box 410949
Kansas City, MO 64141
-----------------------------------------------------------------
(Address of principal executive offices) (Zip code)
(816) 842-7000
-----------------------------------------------------------------
(Registrant's telephone number, including area code)
Item 2. ACQUISITION AND DISPOSITION OF ASSETS.
On July 19, 1996, the Registrant filed a Current Report on Form 8-K dated July
8, 1996 reporting the consummation of the acquisition by its 54% owned
subsidiary, Response Oncology, Inc. (Response), of Rymer, Zaravinos & Faig,
M.D., P.A. (d/b/a/ Southeast Florida Hematology Oncology Group, P.A.) (Fort
Lauderdale practice).
The Registrant hereby files amendment No. 2 to the previously filed Form 8-K
and amendment No. 1 to provide the Registrant's pro forma financial
information.
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(a) Financial Statements
Audited Balance Sheet, Statement of Income, Statement of
Shareholders' Equity, and Statement of Cash Flows, including footnotes, as of
and for the year ended December 31, 1995 for Rymer, Zaravinos & Faig, M.D.,
P.A. (d/b/a/ Southeast Florida Hematology Oncology Group, P.A.) (filed in the
Registrant's Current Report on Form 8-K dated July 8, 1996 and incorporated
herein by reference).
(b) Pro Forma Financial Information
Pro Forma Consolidated Balance Sheet for Seafield Capital Corporation
(Seafield) and the Fort Lauderdale practice as of June 30, 1996 and Pro Forma
Consolidated Statements of Operations for Seafield and the Fort Lauderdale
practice for the six months ended June 30, 1996 and the year ended December 31,
1995.
(c) Exhibits
10(a) Form of the Stock Purchase Agreement by and among Response
Oncology, Inc., and stockholders of Rymer, Zaravinos & Faig, M.D., P.A., dated
as of July 1, 1996 (filed as Exhibit 99.1 to Registrant's Form 8-K dated July
8, 1996 and incorporated herein by reference).
10(b) Form of the Service Agreement between Response Oncology of
Fort Lauderdale, Inc., Southeast Florida Hematology Oncology Group, P.A. and
Stockholders of Southeast Florida Hematology Oncology Group, P.A. dated July 1,
1996 (filed as Exhibit 99.2 to Registrant's Form 8-K dated July 8, 1996 and
incorporated herein by reference).
SEAFIELD CAPITAL CORPORATION AND SUBSIDIARIES
Unaudited Pro Forma Consolidated Financial Information
Basis of Presentation
The accompanying pro forma consolidated balance sheet as of June 30,1996 and
the related pro forma consolidated statements of operations for the year ended
December 31, 1995 and the six months ended June 30, 1996 give effect to the
acquisitions by Response Oncology, Inc.(Response), a 54% owned subsidiary of
Seafield Capital Corporation (Seafield), of Rymer, Zaravinos & Faig, M.D., P.A.
(d/b/a/ Southeast Florida Hematology Oncology Group, P.A.) (Fort Lauderdale
practice), Jeffrey L. Paonessa, M.D., P.A. (Paonessa), Knoxville Hematology
Oncology Associates (KHOA) and Oncology Hematology Group of South Florida, P.A.
(OHGSF), (collectively referred to as the "Groups") as if the acquisitions of
the Groups had occurred on January 1, 1995. The pro forma information is based
on the historical audited financial statements of Seafield and the Groups,
giving effect to the acquisitions under the purchase method of accounting, and
the assumptions and adjustments described in the accompanying notes to the pro
forma consolidated financial information.
The pro forma statements have been prepared by Seafield's management based on
the audited financial statements of the Groups. These pro forma statements may
not be indicative of the results that would have occurred if the acquisitions
had been in effect on the dates indicated or which may be obtained in the
future. The pro forma statements do not reflect the effect of expense
reductions and other operational changes, which, in the opinion of Response, is
likely to result in profitable operations for the Groups. The pro forma
financial statements should be read in conjunction with the consolidated
financial statements and notes of Seafield.
SEAFIELD CAPITAL CORPORATION AND SUBSIDIARIES
Pro Forma Consolidated Balance Sheet
June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Historical Fort Pro forma Total
Company Lauderdale Adjustments Pro Forma
----------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 6,274 36 (36) 6,274
Short-term investments 65,752 65,752
Accounts and notes receivable 28,911 625 135 29,671
Current income tax receivable 5,407 5,407
Deferred income taxes 1,130 (69) 69 1,130
Other current assets 11,040 179 (74) 11,145
--------------------------------------------------
Total current assets 118,514 771 94 119,379
Property, plant and equipment 22,256 19 22,275
Investments:
Securities 7,220 7,220
Oil and gas 2,453 2,453
Intangible assets 61,429 11,234 72,663
Other assets 975 975
Net assets of discontinued real
estate operations 37,648 37,648
--------------------------------------------------
$ 250,495 771 11,347 262,613
==================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,277 394 (197) 7,474
Notes payable 636 250 (250) 636
Other current liabilities 7,899 7,899
--------------------------------------------------
Total current liabilities 15,812 644 (447) 16,009
Notes payable 23,378 6,443 29,821
Deferred income taxes 2,851 4,299 7,150
Other liabilities 2,440 2,440
--------------------------------------------------
Total liabilities 44,481 644 10,295 55,420
--------------------------------------------------
Minority interests 23,033 1,179 24,212
--------------------------------------------------
Stockholders' equity:
Preferred stock of $1 par value.
Authorized 3,000,000 shares;
none issued -- --
Common stock of $1 par value.
Authorized 24,000,000 shares;
issued 7,500,000 shares 7,500 1 (1) 7,500
Paid-in capital 1,763 1,763
Equity adjustment from foreign (466) (466)
currency translation
Retained earnings 204,287 126 (126) 204,287
--------------------------------------------------
213,084 127 (127) 213,084
Less:
Cost of 1,017,924 shares
of treasury stk 30,103 30,103
--------------------------------------------------
Total stockholders' equity 182,981 127 (127) 182,981
--------------------------------------------------
$ 250,495 771 11,347 262,613
==================================================
</TABLE>
SEAFIELD CAPITAL CORPORATION AND SUBSIDIARIES
Pro Forma Consolidated Statements of Operations
Six months ended June 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Historical Previous Pro Forma Fort Pro Forma Total
Company Acquisitions Adjustments Subtotal Lauderdale Adjustments Pro Forma
-----------------------------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C> <C> <C> <C>
REVENUES
Healthcare services $ 31,981 6,325 (2,265)a,b 36,041 2,416 (902) a,b 37,555
Insurance services 24,505 24,505 24,505
Other 1,086 1,086 1,086
---------------------------------------------------------------------------------------
Total revenues 57,572 6,325 (2,265) 61,632 2,416 (902) 63,146
COSTS AND EXPENSES
Healthcare services 28,419 3,520 (373)a,d 31,566 2,557 (1,172) a,d 32,951
Insurance services 10,864 10,864 10,864
Other 1,241 1,241 1,241
Selling, general, administrative 17,431 17,431 17,431
---------------------------------------------------------------------------------------
Earnings (loss) from operations (383) 2,805 (1,892) 530 (141) 270 659
Investment income - net 2,415 2,415 2,415
Interest expense (471) (23) (165) c (659) (9) (232) c (900)
Other income/(loss) 247 79 (79) 247 247
---------------------------------------------------------------------------------------
Earnings before income taxes 1,808 2,861 (2,136) 2,533 (150) 38 2,421
Income taxes 891 891 891
---------------------------------------------------------------------------------------
Earnings before minority interest 917 2,861 (2,136) 1,642 (150) 38 1,530
Minority interest 845 845 845
---------------------------------------------------------------------------------------
NET EARNINGS (LOSS) $ 72 2,861 (2,136) 797 (150) 38 685
=======================================================================================
</TABLE>
SEAFIELD CAPITAL CORPORATION AND SUBSIDIARIES
Pro Forma Consolidated Statements of Operations
Twelve Months ended December 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
Historical Previous Pro Forma Fort Pro Forma Total
Company Acquisitions Adjustments Subtotal Lauderdale Adjustments Pro Forma
-----------------------------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C> <C> <C> <C> <C>
REVENUES
Healthcare services $ 56,410 22,542 (7,414)a,b 71,538 5,008 (1,892)a,b 74,654
Insurance services 55,862 55,862 55,862
Other 7,272 7,272 7,272
---------------------------------------------------------------------------------------
Total revenues 119,544 22,542 (7,414) 134,672 5,008 (1,892) 137,788
COSTS AND EXPENSES
Healthcare services 52,838 16,636 (2,883)a,d 66,591 4,606 (1,977)a,d 69,220
Insurance services 23,598 23,598 23,598
Other 6,357 6,357 6,357
Selling, general, administrative 42,300 42,300 42,300
---------------------------------------------------------------------------------------
Earnings (loss) from operations (5,549) 5,906 (4,531) (4,174) 402 85 (3,687)
Investment income - net 4,401 4,401 4,401
Interest expense (124) (269) (1,446) c (1,839) (483) (2,322)
Other income/(loss) (4,564) 352 (352) (4,564) (4,564)
---------------------------------------------------------------------------------------
Earnings (loss) before income taxes (5,836) 5,989 (6,329) (6,176) 402 (398) (6,172)
Income taxes (6,563) 210 (210) e (6,563) 52 (52) (6,563)
---------------------------------------------------------------------------------------
Earnings before minority interest 727 5,779 (6,119) 387 350 (346) 391
Minority interest 1,475 1,475 1,475
---------------------------------------------------------------------------------------
EARNINGS (LOSS) FROM
CONTINUING OPERATIONS $ (748) 5,779 (6,119) (1,088) 350 (346) (1,084)
=======================================================================================
</TABLE>
SEAFIELD CAPITAL CORPORATION AND SUBSIDIARIES
Notes to Pro Forma Consolidated Financial Information
The accompanying pro forma consolidated financial information presents the pro
forma financial condition of Seafield Capital Corporation and subsidiaries
(Seafield) as of June 30, 1996 and the results of their operations for the year
ended December 31, 1995 and the six months ended June 30, 1996.
On July 3, 1996, Seafield's 54% owned subsidiary, Response Oncology, Inc.
(Response), acquired from unaffiliated individual sellers 100% of the issued
and outstanding common stock of Rymer, Zaravinos & Faig, M.D., P.A. (d/b/a/
Southeast Florida Hematology Oncology Group, P.A.) (Fort Lauderdale practice).
The accompanying pro forma consolidated balance sheet includes the acquired
assets, assumed liabilities and effects of financing as if all acquisition
practices held by Response had been acquired on June 30, 1996. The
accompanying pro forma consolidated statements of operations reflect the pro
forma results of operations, as adjusted, as if all acquisition practices held
by Response had been acquired on January 1, 1995.
PRO FORMA CONSOLIDATED BALANCE SHEET
The adjustments reflected in the pro forma consolidated balance sheet are to
reflect the fair values of assets acquired and liabilities assumed in
connection with the acquisition of the Fort Lauderdale practice, to reflect
the issuance of long-term debt and cash payment to complete the acquisition;
and to reflect the recording of management service agreements acquired.
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
The adjustments reflected in the pro forma consolidated statements of
operations are as follows:
(a) To eliminate certain revenues and expenses that would not constitute
revenue to Response or be the responsibility of Response pursuant to the
Service Agreement.
(b) To accrue net revenue resulting from service agreements related to the
acquisition of the practice. Amounts were calculated based upon actual
operating results for the period, as adjusted, under the terms of the related
service agreement.
(c) To reflect interest on the long-term debt issued. Interest was
calculated at the annual rates ranging from 5% to 9.5%.
(d) To record amortization of the intangible asset related to the service
agreement. The assets are amortized over the service agreement period (40
years).
(e) To remove the effect of federal income taxes as Response would have
utilized tax net operating loss carryforwards to fully offset the acquired
practice's 1995 taxable income.
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 officer.
Seafield Capital Corporation
Date: October 17, 1996 By: /s/ Steven K. Fitzwater
---------------------------
Steven K. Fitzwater
Vice President, Chief Accounting
Officer and Secretary
