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: June 20, 1996
Seafield Capital Corporation
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(Exact name of registrant as specified in its charter)
Missouri 0-16946 43-1039532
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(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
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(Address of principal executive offices) (Zip code)
(816) 842-7000
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(Registrant's telephone number, including area code)
Item 2. ACQUISITION AND DISPOSITION OF ASSETS.
On July 10, 1996, the Registrant filed a Current Report on Form 8-K
dated June 20, 1996 reporting the consummation of the acquisition
by its 54% owned subsidiary, Response Oncology, Inc., of Jeffrey L.
Paonessa, M.D., P.A. (Paonessa). On July 25, 1996, the Registrant
filed Amendment No. 1 to this Form 8-K.
The Registrant hereby files this amendment No. 2 to the previously
filed Form 8-K and Form 8-K (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
Jeffrey L. Paonessa, M.D., P.A. (filed in the Registrant's Current
Report on Form 8-K (Amendment No. 1) dated June 20, 1996 and
incorporated herein by reference).
(b) Pro Forma Financial Information
Pro Forma Consolidated Balance Sheet for Seafield Capital
Corporation (Seafield) and Paonessa as of March 31, 1996 and Pro
Forma Consolidated Statements of Operations for Seafield and
Paonessa 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., Jeffrey L. Paonessa, M.D. and J. Paonessa,
M.D., P.A. dated as of June 19, 1996 (filed as Exhibit 99.1 to
Registrant's Form 8-K dated June 20, 1996 and incorporated herein
by reference).
10(b) Form of the Service Agreement dated as of June 19,
1996 by and among Response Oncology, Inc., J. Paonessa, M.D., P.A.
and Jeffrey L. Paonessa, M.D. (filed as Exhibit 99.1 to
Registrant's Form 8-K (Amendment No. 1) dated June 20, 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 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 Pro Forma Total
Company Acquisitions Adjustments Subtotal Paonessa Adjustments Pro Forma
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(in thousands)
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 9,139 166 1,547 10,852 10 (9,448) 1,414
Short-term investments 70,597 (10,000) 60,597 60,597
Accounts and notes receivable 24,609 999 (199) 25,409 1,179 26,588
Current income tax receivable 4,737 4,737 4,737
Deferred income taxes 1,406 1,406 1,406
Other current assets 12,966 109 13,075 421 (30) 13,466
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Total current assets 123,454 1,274 (8,652) 116,076 1,610 (9,478) 108,208
Property, plant and equipment 20,835 1,699 (148) 22,386 247 (247) 22,386
Investments:
Securities 5,757 5,757 5,757
Oil and gas 3,689 3,689 3,689
Intangible assets 30,624 7,091 37,715 15,323 53,038
Deferred income taxes 7,171 7,171 7,171
Other assets 1,143 1,143 1,143
Net assets of discontinued real
estate operations 40,686 40,686 40,686
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$ 233,359 2,973 (1,709) 234,623 1,857 5,598 242,078
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,772 245 318 8,335 315 8,650
Notes payable 4,005 1,714 (1,714) 4,005 4,005
Other current liabilities 6,735 47 (47) 6,735 6,735
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Total current liabilities 18,512 2,006 (1,443) 19,075 315 19,390
Notes payable 6,265 23 127 6,415 5,100 11,515
Other liabilities 2,520 49 (49) 2,520 2,520
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Total liabilities 27,297 2,078 (1,365) 28,010 315 5,100 33,425
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Minority interests 21,190 551 21,741 2,040 23,781
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Stockholders' equity:
Preferred stock of $1 par value.
Authorized 3,000,000 shares;
none issued -- -- --
Common stock of $1 par value.
Authorized 24,000,000 shares;
issued 7,500,000 shares 7,500 7,500 1 (1) 7,500
Paid-in capital 1,747 1,747 1,747
Equity adjustment from foreign (469) (469) (469)
currency translation
Retained earnings 206,045 895 (895) 206,045 1,541 (1,541) 206,045
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214,823 895 (895) 214,823 1,542 (1,542) 214,823
Less:
Cost of 1,029,199 shares
of treasury stk 29,951 29,951 29,951
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Total stockholders' equity 184,872 895 (895) 184,872 1,542 (1,542) 184,872
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$ 233,359 2,973 (1,709) 234,623 1,857 5,598 242,078
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</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 Pro Forma Total
Company Acquisitions Adjustments Subtotal Paonessa Adjustments Pro Forma
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(in thousands)
<S> <C> <C> <C> <C> <C> <C> <C>
REVENUES
Healthcare services $ 14,950 1,567 (511)a,b 16,006 2,471 (697) a,b 17,780
Insurance services 11,669 11,669 11,669
Other 16 16 16
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Total revenues 26,635 1,567 (511) 27,691 2,471 (697) 29,465
COSTS AND EXPENSES
Healthcare services 13,457 623 19 a,d 14,099 1,520 (175) a,d 15,444
Insurance services 5,308 5,308 5,308
Other 45 45 45
Selling, general,administrative 8,415 151 8,566 8,566
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Earnings (loss) from operations (590) 793 (530) (327) 951 (522) 102
Investment income - net 1,170 1,170 1,170
Interest expense (192) (23) (215) (51) c (266)
Other income/(loss) 27 50 (50) 27 29 (29) 27
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Earnings before income taxes 415 820 (580) 655 980 (602) 1,033
Income taxes 155 155 155
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Earnings before minority interest 260 820 (580) 500 980 (602) 878
Minority interest 374 374 374
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NET EARNINGS (LOSS) $ (114) 820 (580) 126 980 (602) 504
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</TABLE>
SEAFIELD CAPITAL CORPORATION AND SUBSIDIARIES
Pro Forma Consolidated Statements of Operations
Twelve months ended December 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
Historical Previous Pro Forma Pro Forma Total
Company Acquisitions Adjustments Subtotal Paonessa Adjustments Pro Forma
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(in thousands)
<S> <C> <C> <C> <C> <C> <C> <C>
REVENUES
Healthcare services $ 56,410 14,723 (5,467)a,b 65,666 7,896 (1,978)a,b 71,584
Insurance services 55,862 55,862 55,862
Other 7,272 7,272 7,272
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Total revenues 119,544 14,723 (5,467) 128,800 7,896 (1,978) 134,718
COSTS AND EXPENSES
Healthcare services 52,838 10,839 (2,529)a,d 61,148 4,782 (581)a,d 65,349
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
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Earnings (loss) from operations (5,549) 2,794 (2,938) (5,693) 3,114 (1,397) (3,976)
Investment income - net 4,401 4,401 4,401
Interest expense (124) (270) (591) c (985) (204) c (1,189)
Other income/(loss) (4,564) 297 (297) (4,564) 55 (55) (4,564)
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Earnings (loss) before income taxes (5,836) 2,821 (3,826) (6,841) 3,169 (1,656) (5,328)
Income taxes (6,563) 210 (210) e (6,563) (6,563)
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Earnings (loss) before
minority interest 727 2,611 (3,616) (278) 3,169 (1,656) 1,235
Minority interest 1,475 1,475 1,475
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EARNINGS (LOSS) FROM
CONTINUING OPERATIONS $ (748) 2,611 (3,616) (1,753) 3,169 (1,656) (240)
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</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 June 20, 1996, Seafield's 54% owned subsidiary, Response
Oncology, Inc. (Response), acquired the general partnership
interest of Jeffrey L. Paonessa, M.D., P.A. (Paonessa).
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
Paonessa, 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 rate of 6.5%.
(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
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Steven K. Fitzwater
Vice President, Chief Accounting
Officer and Secretary
