SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K/A
(Amendment No. 1)
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 this amendment No. 1 to the previously
filed Form 8-K 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 March
31, 1996 and Pro Forma Consolidated Statements of Operations for
Seafield and the Fort Lauderdale practice for the three months
ended March 31, 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 March
31,1996 and the related pro forma consolidated statements of
operations for the year ended December 31, 1995 and the three
months ended March 31, 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
March 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>
ASSETS
Current assets:
Cash and cash equivalents $ 9,139 176 (7,901) 1,414 112 (6,270) (4,744)
Short-term investments 70,597 (10,000) 60,597 60,597
Accounts and notes receivable 24,609 2,178 (199) 26,588 665 27,253
Current income tax receivable 4,737 4,737 4,737
Deferred income taxes 1,406 1,406 (69) 1,337
Other current assets 12,966 530 (30) 13,466 166 13,632
-------------------------------------------------------------------------------------
Total current assets 123,454 2,884 (18,130) 108,208 874 (6,270) 102,812
Property, plant and equipment 20,835 1,946 (395) 22,386 21 22,407
Investments:
Securities 5,757 5,757 5,757
Oil and gas 3,689 3,689 3,689
Intangible assets 30,624 22,414 53,038 11,148 64,186
Deferred income taxes 7,171 7,171 (4,210) 2,961
Other assets 1,143 1,143 1,143
Net assets of discontinued real
estate operations 40,686 40,686 40,686
-------------------------------------------------------------------------------------
$ 233,359 4,830 3,889 242,078 895 668 243,641
=====================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,772 560 318 8,650 394 (8) 9,036
Notes payable 4,005 1,714 (1,714) 4,005 250 (250) 4,005
Other current liabilities 6,735 47 (47) 6,735 6,735
-------------------------------------------------------------------------------------
Total current liabilities 18,512 2,321 (1,443) 19,390 644 (258) 19,776
Notes payable 6,265 23 5,227 11,515 11,515
Other liabilities 2,520 49 (49) 2,520 2,520
-------------------------------------------------------------------------------------
Total liabilities 27,297 2,393 3,735 33,425 644 (258) 33,811
-------------------------------------------------------------------------------------
Minority interests 21,190 2,591 23,781 1,177 24,958
-------------------------------------------------------------------------------------
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 1 (1) 7,500
Paid-in capital 1,747 1,747 1,747
Equity adjustment from foreign (469) (469) (469)
currency translation
Retained earnings 206,045 2,436 (2,436) 206,045 250 (250) 206,045
-------------------------------------------------------------------------------------
214,823 2,437 (2,437) 214,823 251 (251) 214,823
Less:
Cost of 1,029,199 shares
of treasury stk 29,951 29,951 29,951
-------------------------------------------------------------------------------------
Total stockholders' equity 184,872 2,437 (2,437) 184,872 251 (251) 184,872
-------------------------------------------------------------------------------------
$ 233,359 4,830 3,889 242,078 895 668 243,641
=====================================================================================
</TABLE>
SEAFIELD CAPITAL CORPORATION AND SUBSIDIARIES
Pro Forma Consolidated Statements of Operations
Three months ended March 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 $ 14,950 4,038 (1,208)a,b 17,780 1,184 (415) a,b 18,549
Insurance services 11,669 11,669 11,669
Other 16 16 16
---------------------------------------------------------------------------------------
Total revenues 26,635 4,038 (1,208) 29,465 1,184 (415) 30,234
COSTS AND EXPENSES
Healthcare services 13,457 2,143 (156)a,d 15,444 1,151 (376) a,d 16,219
Insurance services 5,308 5,308 5,308
Other 45 45 45
Selling, general, administrative 8,415 151 8,566 8,566
---------------------------------------------------------------------------------------
Earnings (loss) from operations (590) 1,744 (1,052) 102 33 (39) 96
Investment income - net 1,170 1,170 1,170
Interest expense (192) (23) (51) c (266) (266)
Other income/(loss) 27 79 (79) 27 27
---------------------------------------------------------------------------------------
Earnings before income taxes 415 1,800 (1,182) 1,033 33 (39) 1,027
Income taxes 155 155 155
---------------------------------------------------------------------------------------
Earnings before minority interest 260 1,800 (1,182) 878 33 (39) 872
Minority interest 374 374 6 (6) 374
---------------------------------------------------------------------------------------
NET EARNINGS (LOSS) $ (114) 1,800 (1,182) 504 27 (33) 498
=======================================================================================
</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 22,619 (7,445)a,b 71,584 4,738 (1,663)a,b 74,659
Insurance services 55,862 55,862 55,862
Other 7,272 7,272 7,272
---------------------------------------------------------------------------------------
Total revenues 119,544 22,619 (7,445) 134,718 4,738 (1,663) 137,793
COSTS AND EXPENSES
Healthcare services 52,838 15,621 (3,110)a,d 65,349 4,606 (1,507)a,d 68,448
Insurance services 23,598 23,598 23,598
Other 6,357 6,357 6,357
Selling, general, administrative 42,300 1,090 43,390 43,390
---------------------------------------------------------------------------------------
Earnings (loss) from operations (5,549) 5,908 (4,335) (3,976) 132 (156) (4,000)
Investment income - net 4,401 4,401 4,401
Interest expense (124) (270) (795) c (1,189) (1,189)
Other income/(loss) (4,564) 352 (352) (4,564) (4,564)
---------------------------------------------------------------------------------------
Earnings (loss) before income taxes (5,836) 5,990 (5,482) (5,328) 132 (156) (5,352)
Income taxes (6,563) 210 (210) e (6,563) 22 (22) (6,563)
---------------------------------------------------------------------------------------
Earnings before minority interest 727 5,780 (5,272) 1,235 110 (134) 1,211
Minority interest 1,475 1,475 1,475
---------------------------------------------------------------------------------------
EARNINGS (LOSS) FROM
CONTINUING OPERATIONS $ (748) 5,780 (5,272) (240) 110 (134) (264)
=======================================================================================
</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 March 31, 1996 and the results of their operations for the
year ended December 31, 1995 and the three months ended March 31, 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 March 31, 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: September 6, 1996 By: /s/ Steven K. Fitzwater
---------------------------
Steven K. Fitzwater
Vice President, Chief Accounting
Officer and Secretary
