SCHEDULE 14A
(RULE 14A-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(A)
OF THE SECURITIES EXCHANGE ACT OF 1934 (AMENDMENT NO. 1)
Filed by the registrant / /
Filed by a party other than the registrant /X/
Check the appropriate box:
/ / Preliminary Proxy Statement
/ / Confidential, for Use of the Commission Only (as permitted by
Rule 14a-6(e)2))
/ / Definitive Proxy Statement
/X/ Definitive Additional Materials
/ / Soliciting Material Pursuant to Rule 14a-11(c) or Rule 14(a)-12
- --------------------------------------------------------------------------------
(Name of Registrant as Specified in Charter)
THE COMMITTEE TO REVITALIZE DOMINION BRIDGE CORPORATION
- --------------------------------------------------------------------------------
(Name of Person(s) filing Proxy Statement, if other than Registrant)
Payment of filing fee (check the appropriate box):
/X/ No fee required.
/ / Fee computed on table below per Exchange Act Rules 14a-6(i)(1)
and 0-11.
(1) Title of each class of securities to which transaction
applies:
- --------------------------------------------------------------------------------
(2) Aggregate number of securities to which transaction applies:
- --------------------------------------------------------------------------------
(3) Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule 0-11 (Set forth the
amount on which the filing fee is calculated and state how it
was determined):
- --------------------------------------------------------------------------------
(4) Proposed maximum aggregate value of transaction:
(5) Total fee paid:
/ / Fee paid previously with preliminary materials.
/ / Check box if any part of the fee is offset as provided by
Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting
fee was
<PAGE>
paid previously. Identify the previous filing by registration statement number,
or the form or schedule and the date of its filing.
(1) Amount Previously Paid:
- --------------------------------------------------------------------------------
(2) Form, Schedule or Registration Statement no.:
- --------------------------------------------------------------------------------
(3) Filing Party:
- --------------------------------------------------------------------------------
(4) Date Filed:
-2-
<PAGE>
THE COMMITTEE TO REVITALIZE DOMINION BRIDGE CORPORATION
STRATEGIC PLAN - FINANCIAL SUMMARY
FOR IMPLEMENTATION ON SUCCESSFUL CONCLUSION OF PROXY CONSENT
JULY 1997
SHAREHOLDERS INFORMATIONAL MEETING
THE HARVARD CLUB
JULY 16, 1997
3 P.M. EDT
AS AMENDED JULY 15, 1997
FORWARD-LOOKING STATEMENTS AND ASSOCIATED RISKS
The following presentation contains certain forward-looking statements. Such
forward-looking statements involve both known and unknown risks, uncertainties,
and other factors that may cause the actual results, performance and
achievements of the Company to be materially different from any future results,
performance or achievements of the Company express or implied in such
forward-looking statements.
<PAGE>
THE COMMITTEE TO REVITALIZE DOMINION BRIDGE CORPORATION ANNOUNCED ON JULY 2
UPON SHAREHOLDERS APPROVING THE COMMITTEE'S PROXY PROPOSALS, AND THE
COMMITTEE ASSUMING RESPONSIBILITY FOR THE Management of Dominion
Bridge, Dominion Bridge Would:
I. Acquire FirstKey Technologies of Toronto ("FKT")
II. Acquire the Remaining Minority Interest Outstanding of McConnell
Dowell, its Australian Subsidiary
III. Issue Contingent Value Rights (CVRs) to Each Current Shareholder
The summary of forecast financial results resulting from these strategic actions
are summarized herein. The Shareholders Meeting at The Harvard Club in New York
on July 16 is intended to introduce shareholders to the management of FirstKey
Technologies and several additional members of the new Dominion Bridge Executive
team.
The business summaries presented herein are the Committee's best estimates of
results and are presented in 4 scenarios.
(1) The Committee's business plan for revitalizing Dominion
Bridge only.
(2) The resulting business plan from the acquisition of
FirstKey Technologies.
(3) The business plan effect of acquiring the remaining
minority interests of MCD but excludes the FKT
acquisition.
(4) The business plan resulting from the combination of all
three steps.
WE LOOK FORWARD TO SEEING YOU ON THE 16TH AT THE HARVARD CLUB AT 3 PM (44
WEST 44TH STREET)
In the meantime, it is essential that the consent solicitation continue at a
fast pace. The Company's Board of Directors is only willing to listen to Mr.
Marengere and Mr. Matossian.
The Board is ignoring the increasing serious liquidity crisis in its North
American and continues to spend money at its own whim. The sooner new
executive management is able to commence revitalizing Dominion Bridge, the
better opportunity we have to begin share price recovery.
<PAGE>
ASSUMPTIONS TO THE FORECAST
FY 1996:
As Reported by the Company
FY 1997:
1. The Committee will be unable to positively affect
operations for the fiscal year ending September 30.
2. Fiscal year end contains a $7.5 million charge projected
by the Committee of write down of assets to recoverable
amounts.
3. Continuation for its fiscal year of the rate of
operational profit and loss in divisions incurred during
the first 2 quarters.
4. A Company cost of $1 million to fight The Committee's
Proxy proposal is projected
5. The Company is assumed to be without adequate cash
resources in North America. The Company, based on
independent third-party obtained credit reports, is COD
with its major suppliers including its steel suppliers,
and its North American accounts payable ("A/P") average in
excess of 90 days. The non current portion of A/P
represent in excess of US $10 - $15 million. This is a
major reason for decreasing gross profit margins.
FY 1998
1. Scenario 1 is Dominion Bridge managed by the personnel of
the Committee without any acquisitions.
(A) The Company will raise in excess of $25 million for
working capital, secured by the Company's North
American assets (excluding the MDC stock)
(B) The availability of working capital will permit the
Company to obtain contracts it cannot currently sign
due to lack of working capital, improve willing to do
business resulting in more advantageous prices to the
Company. Revenues for DBI, SB and Davie are assumed to
increase 12% and 54% in 1998 and 1999 respectively. In
1999, Davie is assumed to begin work on one of the
three floating platforms the Company . has announced
it is seeking for 1998, while for DBI and SB it
reflects management's comments as to negative effect
of lack of working capital.
(C) As a result, therefore, of better supplier prices,
higher sales and cost controls, gross profit margins
will improve to the 10.6% and 11.5%, as compared to
15.6% and 12.6% in 1994 and 95 respectively. EBITDA
margins will improve to 5.7% as compared to 3.5% and
3.8% in 1994 and 95.
2. Scenario 2 includes the acquisition of FirstKey
Technologies.
(A) The same assumptions for the Company as in Scenario 1
are assumed.
(B) FirstKey's currently signed contracts and expected
contracts to be signed will result in FY98 revenues
of $150 million and $275 million in FY99. FirstKey's
existing signed contracts, presently C$209 million,
would generate these estimates for 1998 and a portion
of 1999.
(C) FirstKey will contribute to increased revenues at
subsidiaries Steen Becker and Dominion Bridge Inc. in
FY 98 and FY 99. For 1998 and 1999, FirstKey would
generate an increase revenues of DBI and SB through
subcontracts in total by $50 million and $125 million
respectively, including fabrication work at Lachine.
3. Scenario 3 is same as in Scenario 1. above but includes
the acquisition of MDC minority interests financed with
borrowings. The $4.8 and $3.9 million of interest expenses
forecasted in 1998 and 1999 respectively are from the
borrowings to finance the acquisition.
4. Dominion Bridge under Committee management and includes
acquisition of FirstKey and minority interests of MDC. The
Scenarios in 1,2 and 3 above are combined.
FY 1999
Results of operations in second year under the Scenarios
described under FY 98.
<PAGE>
Dominion Bridge Corporation
Summary of History and Forecast of Operations
(US $000,000 except as indicated)
The following summaries are prepared from detailed schedules contained herein.
It has been prepared by The Committee to Revitalize Dominion Bridge from
public information and the prejections are the best estimates of The
Committee. Actual results may vary significantlt due to changes in business
conditions and other factors.
<TABLE>
<CAPTION>
(1) NO ACQUISITION OF FIRSTKEY OR MDC MINORITY INTEREST
-------------------------------------------------------
UNDER CURRENT MANAGEMENT
-----------------------------------------------------------------
1996 1997 EST
------------------------------- --------------------------------
N. Am MDC Total N. Am MDC Total
------------------------------- --------------------------------
<S> <C> <C> <C> <C> <C> <C>
Revenues 227.1 135.5 362.6 308.0 305.0 613.0
Gross Profit 19.2 19.7 39.0 27.3 41.2 68.5
EBITDA (10.4) 10.6 0.3 (11.6) 19.2 7.6
EBIT (8.3) 7.6 (0.7) (13.3) 12.9 (0.4)
------------------------------ --------------------------------
Net Inc (10.1) 6.8 (3.4) (15.8) 8.9 (6.9)
Min Int/Pfd (5.2) (1.4) (6.6) - (2.8) (2.8)
Net Inc - CS (15.3) 5.4 (9.9) (15.8) 6.1 (9.7)
================================ ================================
</TABLE>
<TABLE>
<CAPTION>
(1) NO ACQUISITION OF FIRSTKEY OR MDC MINORITY INTEREST
----------------------------------------------------------------
UNDER THE COMMITTEE'S MANAGEMENT
----------------------------------------------------------------
1998 EST 1999 EST
------------------------------ -------------------------------
N. Am MDC Total N. Am MDC Total
------------------------------ -------------------------------
<S> <C> <C> <C> <C> <C> <C>
Revenues 344.1 375.6 719.8 530.0 432.0 962.0
Gross Profit 36.6 51.0 87.6 61.1 59.6 120.7
EBITDA 2.9 28.0 30.9 16.0 33.6 49.6
EBIT 4.5 19.0 23.5 16.9 22.6 39.5
------------------------------ -------------------------------
Net Inc 0.2 12.7 12.9 8.6 15.0 23.6
Min Int/Pfd - (4.4) (4.4) - (5.3) (5.3)
Net Inc - CS 0.2 8.2 8.5 8.6 9.8 18.3
============================== ===============================
</TABLE>
(2) ACQUISITION OF FIRSTKEY ONLY
----------------------------------------------------------
UNDER THE COMMITTEE MANAGEMENT
------------------------------------------------------------
1998 EST 1999 EST
------------------------ -----------------------------
N. Am MDC Total N. Am MDC Total
------------------------ -----------------------------
Revenues 574.0 375.6 949.6 930.0 432.0 1,362.0
Gross Profit 69.2 51.0 120.2 116.2 59.6 175.8
EBITDA 20.5 28.0 48.5 49.0 33.6 82.7
EBIT 20.1 19.0 39.1 50.1 22.6 72.8
----------------------- ---------------------------
Net Inc 9.7 12.7 22.3 29.2 15.0 44.2
Min Int/Pfd - (4.4) (4.4) - (4.4) (4.4)
Net Inc - CS 9.7 8.2 17.9 29.2 9.8 39.0
======================= ============================
(3) ACQUISITION OF ONLY MINORITY
INTEREST OUTSTANDING OF MDC
-------------------------------
UNDER CURRENT MANAGEMENT
----------------------------------------------------------------
1996 1997 EST
-------------------------- -------------------------------
N. Am MDC Total N. Am MDC Total
-------------------------- ---------------------------
Revenues 227.1 135.5 362.6 308.0 305.0 613.0
Gross Profit 19.2 19.7 39.0 27.3 41.2 68.5
EBITDA (10.4) 10.6 0.3 (11.6) 19.2 7.6
EBIT (8.3) 7.6 (0.7) (13.3) 12.9 (0.4)
-------------------------- --------------------------
Net Inc (10.1) 6.8 (3.4) (15.8) 8.9 (6.9)
Min Int/Pfd (5.2) (1.4) (6.6) - (2.8) (2.8)
Net Inc - CS (15.3) 5.4 (9.9) (15.8) 6.1 (9.7)
========================== ==========================
<PAGE>
<TABLE>
<CAPTION>
(3) ACQUISITION OF ONLY MINORITY (4) ACQUISITION OF FIRSTKEY AND
INTEREST OUTSTANDING OF MDC MINORITY INTERESTS OF MDC
-------------------------------------------------------------------------------------------------------------------
UNDER THE COMMITTEE'S MANAGEMENT UNDER THE COMMITTEE'S MANAGEMENT
------------------------ ------------------------ -------------------------------------------------------------
1998 EST 1999 EST 1998 EST 1999 EST
------------------------ ------------------------ -------------------------- --------------------------------
N. Am MDC Total N. Am MDC Total N. Am MDC Total N. Am MDC Total
------------------------ ------------------------ -------------------------- --------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues 344.1 375.6 719.8 530.0 432.0 962.0 574.0 375.6 375.6 930.0 432.0 1,362.0
Gross Profit 36.6 51.0 87.6 61.1 59.6 120.7 69.2 51.0 120.2 116.2 59.6 175.8
EBITDA 2.9 28.0 30.9 16.0 33.6 49.6 20.5 28.0 48.5 49.0 33.6 82.7
EBIT 4.5 19.0 23.5 16.9 22.6 39.5 20.1 19.0 39.1 50.1 22.6 72.8
----------------------- ---------------------- ------------------------ ---------------------------------
Net Inc (2.7) 12.7 9.9 6.2 15.0 21.2 6.1 12.7 18.8 26.6 15.0 41.6
Min Int/Pfd - - - - - - - - - - - -
Net Inc - CS (2.7) 12.7 9.9 6.2 15.0 21.2 6.1 12.7 18.8 26.6 15.0 41.6
======================= ====================== ======================== =================================
</TABLE>
<PAGE>
IMMEDIATE STEP # 1
TURNAROUND MANAGEMENT UNDER
THE COMMITTEE TO REVITALIZE DOMINION BRIDGE
OBJECTIVES:
REVITALIZE THE MANAGEMENT, CUSTOMERS AND SHAREHOLDERS BASE OF DOMINION BRIDGE
REPAIR THE COMPANY'S DETERIORETED SUPPLIER RELATIONSHIPS
MAKE MARKETING AND PROJECT FINANCE A PRIORITY
SLASH FAST RISING AND BLOATED CORPORATE OVERHEAD
BUILD UPON COMPANY'S HISTORIC REPUTATION IN CANADA
As Filed With SEC
<PAGE>
<TABLE>
<CAPTION>
DOMINION BRIDGE CORPORATION
FORECAST AND HISTORY OF OPERATIONS As filed with SEC THE COMMITTEE TO REVITALIZE DOMINION BRIDGE
($000,000 EXCEPT AS INDICATED) The projections have been prepared from pulished
information and are not based on confidential information.
UNDER COMMITEE TURNAROUND MANAGEMENT
NO ACQUISITIONS ASSUMED
History and Completed Years Upon Committee Assuming Managememtn Reponsibility
-----------------------------------------------------------------------------------
FY: September 30 FY 1995 ACTUAL FY 1996 ACTUAL 1997 - 6 MOS ACTUAL
------------------- --------------------------- -----------------------------
North Total North Pacific- Total North Pacific- Total
America Consol America MDC Consol America MDC Consol
------------------- --------------------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sales 155.8 155.8 227.1 135.5 362.6 126.9 130.7 257.5
--------------- ----------------------------- -----------------------------
Gross Profit 19.6 19.6 19.2 19.7 39.0 11.0 17.3 28.3
As % 12.6% 12.6% 8.5% 14.6% 10.7% 8.6% 13.3% 11.0%
S, G & A
Subsidiaries 13.6 13.6 24.7 9.1 33.8 11.3 10.5 21.8
Corporate 1.8 1.8 5.0 - 5.0 5.5 - 5.5
--------------- ----------------------------- -------------------------------
Total 15.4 15.4 29.6 9.1 38.7 16.8 10.5 27.3
As % 9.9% 9.9% 13.0% 6.7% 10.7% 13.2% 8.0% 10.6%
EBITDA 4.2 4.2 (10.4) 10.6 0.3 (5.8) 6.8 1.0
OTHER INCOME (EXPENSE)
Depr./Amort. (3.3) (3.3) (0.5) (3.8) (4.3) 0.9 (3.7) (2.8)
Jt. Venture Income 2.2 2.2 2.2 - 2.2 0.5 - 0.5
Other Income (Expense) 1.2 1.2 0.4 0.8 1.2 0.8 0.5 1.3
Sale MDC Shares - - - - - 3.0 - 3.0
Writeoff - Unrecov Assets - - - - - - - -
Proxy Fight Expenses - - - - - - - -
--------------- ----------------------------- -----------------------------
0.1 0.1 2.1 (3.0) (0.9) 5.2 (3.2) 2.0
EBIT 4.3 4.3 (8.3) 7.6 (0.7) (0.6) 3.6 3.0
Interest Exp. (Income) 0.4 0.4 2.2 (0.1) 2.1 2.7 0.2 2.9
EBT 3.9 3.9 (10.5) 7.7 (2.8) (3.3) 3.4 0.1
--------------- ----------------------------- -----------------------------
Taxes On Income 1.7 1.7 (0.3) 0.9 0.6 (0.6) 1.7 1.1
Preferred Dividends 0.1 0.1 4.9 - 4.9 - - -
Minority Interests 0.1 0.1 0.3 1.4 1.7 - 0.4 0.4
Net Income for Com. Stk. 2.0 2.0 (15.3) 5.4 (9.9) (2.7) 1.3 (1.4)
=============== ===========================-- =============================
Earnings Per Share ($/Share) 0.11 0.11 (0.84) 0.30 (0.55) (0.10) 0.04 (0.05)
Fully Diluted Shares (1) 17.69 17.69 23.57 23.57 23.57 28.89 28.89 28.89
</TABLE>
(1) The estimates for 1998 and 1999 are preliminary best estimates of the
Committee to Revitalize Dominion Bridge. Actual results and shares outstanding
may vary.
<TABLE>
<CAPTION>
DOMINION BRIDGE CORPORATION
FORECAST AND HISTORY OF OPERATIONS As filed with SEC THE COMMITTEE TO REVITALIZE DOMINION BRIDGE
($000,000 EXCEPT AS INDICATED) The projections have been prepared from pulished
information and are not based on confidential information.
UNDER COMMITEE TURNAROUND MANAGEMENT
Under Committee Management
------------------------------ -----------------------------------------------------------
FY: September 30 FY 1997 EST. FY 1998 EST. FY 1999 EST.
------------------------------ -------------------------------- -----------------------
North Pacific- Total North Pacific- Total North Pacific- Total
America MDC Consol America MDC Consol America MDC Conso
----------------------------- -------------------------------- ---------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sales 308.0 305.0 613.0 344.1 375.6 719.8 530.0 432.0 962.0
------------------------- ------------------------------ ------------------------------
Gross Profit 27.3 41.2 68.5 36.6 51.0 87.6 61.1 59.6 120.7
As % 8.9% 13.5% 11.2% 10.6% 13.6% 12.2% 11.5% 13.8% 12.6%
S, G & A
Subsidiaries 27.9 22.0 49.9 27.5 23.0 50.5 38.2 26.0 64.2
Corporate 11.0 - 11.0 6.3 - 6.3 7.0 - 7.0
------------------------- ------------------------------ -------------------------------
Total 38.9 22.0 60.9 33.7 23.0 56.7 45.2 26.0 71.2
As % 12.6% 7.2% 9.9% 9.8% 6.1% 7.9% 8.5% 6.0% 7.4%
EBITDA (11.6) 19.2 7.6 2.9 28.0 30.9 16.0 33.6 49.6
OTHER INCOME (EXPENSE)
Depr./Amort. 2.5 (6.2) (3.8) 1.6 (9.0) (7.4) 0.9 (11.0) (10.1)
Jt. Venture Income 1.5 - 1.5 - - - - - -
Other Income (Expense) (0.2) - (0.2) - - - - - -
Sale MDC Shares 3.0 - 3.0 - - - - - -
Writeoff - Unrecov Assets (7.5) - (7.5) - - - - - -
Proxy Fight Expenses (1.0) - (1.0) - - - - - -
------------------------- ------------------------------ ------------------------------
(1.7) (6.2) (8.0) 1.6 (9.0) (7.4) 0.9 (11.0) (10.1)
EBIT (13.3) 12.9 (0.4) 4.5 19.0 23.5 16.9 22.6 39.5
Interest Exp. (Income) 4.4 0.2 4.7 4.3 0.1 4.4 4.3 0.2 4.5
EBT (17.8) 12.7 (5.1) 0.2 18.9 19.1 12.6 22.4 35.0
------------------------- ------------------------------ -------------------------------
Taxes On Income (2.0) 3.8 1.8 - 6.2 6.2 4.0 7.4 11.4
Preferred Dividends - - - - - - - - -
Minority Interests - 2.8 2.8 - 4.4 4.4 - 5.3 5.3
Net Income for Com. Stk. (15.8) 6.1 (9.7) 0.2 8.2 8.5 8.6 9.8 18.3
========================= ============================== ===============================
Earnings Per Share ($/Share) (0.53) 0.21 (0.33) 0.01 0.27 0.28 0.27 0.30 0.61
Fully Diluted Shares (1) 29.50 29.50 29.50 32.00 32.00 30.00 32.00 32.00 30.00
</TABLE>
(1) The estimates for 1998 and 1999 are preliminary best estimates of the
Committee to Revitalize Dominion Bridge. Actual results and shares outstanding
may vary.
<PAGE>
IMMEDIATE STEP # 2
FURTHER ENHANCEMENT OF SHAREHOLDER VALUE
BY
ACQUISITION OF A CANADIAN CONSTRUCTION MANAGEMENT COMPANY
- -------------------------------------------------------------------------------
FIRST KEY TECHNOLOGIES ("FKT") - HEADQUARTERED IN TORONTO
- -------------------------------------------------------------------------------
OBJECTIVES:
DESPITE MANAGEMENT CLAIMS, DOMINION BRIDGE IS ONLY A SUBCONTRACTOR
TURN KEY SERVICE CAPABILITY ADDED - "DESIGN AND BUILD"
ENHANCE COMPANY CAPABILITIES TO ADDRESS THE LARGE CANADIAN MARKET
EXPAND STRONG PRESENCE INTERNATIONALLY
HIGHLY REGARDED CONSTRUCTION MANAGEMENT TEAM OBTAINED TO BE A PART OF
RUNNING DBCO SUBSTANTIAL ENHANCEMENT FOR DBI AND SB REVENUES AND
PROFITABILITY AS SUBCONTRACTORS FKT PROVIDES ADDITIONAL STRENGTHS TO
ESTABLISH DBCO'S FUTURE GROWTH
As Filed With SEC
<PAGE>
<TABLE>
<CAPTION>
DOMINION BRIDGE CORPORATION As Filed With SEC
FORECAST AND HISTORY OF OPERATIONS The projections have been prepared
($000,000 EXCEPT AS INDICATED) ACQUISITION OF FIRST KEY TECHNOLOGIES from pulished information and are not based on
UNDER COMMITEE TURNAROUND MANAGEMENT confidential information.
ACQUISITION ASSUMED
History and Completed Years Upon Committee Assuming Management Reponsibility
------------------------------------------------------------------------------------------------
FY: September 30 FY 1995 ACTUAL FY 1996 ACTUAL 1997 - 6 MOS ACTUAL
-------------------- -------------------------------- ----------------------------------
North Total North Pacific- Total North Pacific- Total
America Consol America MDC Consol America MDC Consol
--------------------- -------------------------------- ------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sales 155.8 155.8 227.1 135.5 362.6 126.9 130.7 257.5
-------------------- --------------------------- -----------------------------------
Gross Profit 19.6 19.6 19.2 19.7 39.0 11.0 17.3 28.3
As % 12.6% 12.6% 8.5% 14.6% 10.7% 8.6% 13.3% 11.0%
S, G & A
Subsidiaries 13.6 13.6 24.7 9.1 33.8 11.3 10.5 21.8
Corporate 1.8 1.8 5.0 - 5.0 5.5 - 5.5
-------------------- --------------------------- -----------------------------------
Total 15.4 15.4 29.6 9.1 38.7 16.8 10.5 27.3
As % 9.9% 9.9% 13.0% 6.7% 10.7% 13.2% 8.0% 10.6%
EBITDA 4.2 4.2 (10.4) 10.6 0.3 (5.8) 6.8 1.0
OTHER INCOME (EXPENSE)
Depr./Amort. (3.3) (3.3) (0.5) (3.8) (4.3) 0.9 (3.7) (2.8)
Jt. Venture Income 2.2 2.2 2.2 - 2.2 0.5 - 0.5
Other Income (Expense) 1.2 1.2 0.4 0.8 1.2 0.8 0.5 1.3
Sale MDC Shares - - - - - 3.0 - -
Writeoff - Unrecov Assets - - - - - - - -
Proxy Fight Expenses - - - - - - - -
--------------- -------------------------------- -----------------------------------
0.1 0.1 2.1 (3.0) (0.9) 5.2 (3.2) 2.0
EBIT 4.3 4.3 (8.3) 7.6 (0.7) (0.6) 3.6 3.0
Interest Exp. (Income) 0.4 0.4 2.2 (0.1) 2.1 2.7 0.2 2.9
EBT 3.9 3.9 (10.5) 7.7 (2.8) (3.3) 3.4 0.1
--------------- -------------------------------- -----------------------------------
Taxes On Income 1.7 1.7 (0.3) 0.9 0.6 (0.6) 1.7 1.1
Preferred Dividends 0.1 0.1 4.9 - 4.9 - - -
Minority Interests 0.1 0.1 0.3 1.4 1.7 - 0.4 0.4
Net Income for Com. Stk. 2.0 2.0 (15.3) 5.4 (9.9) (2.7) 1.3 (1.4)
=============== ================================ ===================================
Earns Per Share ($/Share) 0.11 0.11 (0.84) 0.30 (0.55) (0.10) 0.04 (0.05)
Fully Diluted Shares (1) 17.69 17.69 23.57 23.57 23.57 28.89 28.89 28.89
</TABLE>
<TABLE>
<CAPTION>
Under Committee Management
------------------------------- ----------------------------------------------------------------
FY: September 30 FY 1997 EST. FY 1998 EST. FY 1999 EST.
------------------------------ ------------------------------- -------------------------------
North Pacific- Total North Pacific- Total North Pacific- Total
America MDC Consol America MDC Consol America MDC Consol
----------------------------- ------------------------------ ------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sales 308.0 305.0 613.0 574.0 375.6 949.6 930.0 432.0 1,362.0
-------------------------- -------------------------------- ---------------------------
Gross Profit 27.3 41.2 68.5 69.2 51.0 120.2 116.2 59.6 175.8
As % 8.9% 13.5% 11.2% 12.1% 13.6% 12.7% 12.5% 13.8% 12.9%
S, G & A
Subsidiaries 27.9 22.0 49.9 37.7 23.0 60.7 54.2 26.0 80.2
Corporate 11.0 - 11.0 11.0 - 11.0 13.0 - 13.0
--------------------------- -------------------------------- ---------------------------
Total 38.9 22.0 60.9 48.7 23.0 71.7 67.2 26.0 93.2
As % 12.6% 7.2% 9.9% 8.5% 6.1% 7.5% 7.2% 6.0% 6.8%
EBITDA (11.6) 19.2 7.6 20.5 28.0 48.5 49.0 33.6 82.7
OTHER INCOME (EXPENSE)
Depr./Amort. 2.5 (6.2) (3.8) (0.4) (9.0) (9.4) 1.1 (11.0) (9.9)
Jt. Venture Income 1.5 - 1.5 - - - - - -
Other Income (Expense) (0.2) - (0.2) - - - - - -
Sale MDC Shares - - - - - - - - -
Writeoff - Unrecov Assets (1.0) - (1.0) - - - - - -
Proxy Fight Expenses - - - - - - - - -
--------------------------- -------------------------------- ---------------------------
(1.7) (6.2) (8.0) (0.4) (9.0) (9.4) 1.1 (11.0) (9.9)
EBIT (13.3) 12.9 (0.4) 20.1 19.0 39.1 50.1 22.6 72.8
Interest Exp. (Income) 4.3 0.2 4.6 7.2 0.1 7.3 7.2 0.2 7.4
EBT (17.7) 12.7 (5.0) 12.9 18.9 31.8 42.9 22.4 65.4
--------------------------- -------------------------------- ---------------------------
Taxes On Income (1.0) 3.8 2.8 3.2 6.2 9.5 13.7 7.4 21.1
Preferred Dividends - - - - - - - - -
Minority Interests - 2.8 2.8 - 4.4 4.4 - 5.3 5.3
Net Income for Com. Stk. (16.7) 6.1 (10.6) 9.7 8.2 17.9 29.2 9.8 39.0
============================= =============================--- =============================
Earns Per Share ($/Share) (0.57) 0.21 (0.36) 0.28 0.24 0.51 0.77 0.26 1.03
Fully Diluted Shares (1) 29.50 29.50 29.50 35.00 35.00 35.00 38.00 38.00 38.00
</TABLE>
(1) The estimates for 1998 and 1999 are preliminary best estimates of the
Committee to Revitalize Dominion Bridge. Actual results and shares outstanding
may vary.
<PAGE>
DOMINION BRIDGE CORPORATION
FORECAST OF DBI & STEEN BECKER OPERATIONS
($ 000,000 EXCEPT AS INDICATED)
EFFECT OF ACQUISITION OF FKT ON DBI & STEEN BECKER ("SB")
<TABLE>
<CAPTION>
FISCAL
------------------------------------------------------------------
1996 1997E 1998E 1999E
------------------------------------------------------------------
DBI & SB WITHOUT ACQUISITION FORECAST
<S> <C> <C> <C> <C>
Revenues - DBI $ 139.1 $ 140.0 $155.0 $ 175.0
Revenues - SB (1) $ 62.0 65.0 $ 70.0 80.0
------------------------------------------------------------------
Pre Acq. Revenues $ 201.1 $ 205.0 $225.0 255.0
Gross Profit - DBI $ 11.0 9.8 $ 15.5 20.1
Gross Profit - SB (1) $ 5.4 5 5.1 $ 6.7 8.0
------------------------------------------------------------------
Pre Acq. Gross Profit $ 16.5 $ 14.9 $ 22.2 28.1
GPM % 7.9% 7.0% 10.0% 11.0%
DBI & SB WITH ACQUISITION OF FKT FORECAST
Revenues - DBI $165.0 190.0
Revenues - DBI Incremental Fabrication $ 50.0 60.0
Revenues - SB (1) $ 90.0 130.0
------------------------------------------------------------------
Total Revenues $305.0 $ 380.0
Gross Profit - DBI $ 15.7 20.0
Gross Profit - DBI Incremental Fabrication 7.5 9.0
Gross Profit - SB (1) 9.0 13.0
------------------------------------------------------------------
Total Gross Profit 32.2 42.0
GPM % - DBI 9.5% 10.5%
GPM % - Fabrication Incr. 15.0% 15.0%
GPM %-Overall Incremental Business 10.5% 11.0%
- ------------------------------------------------------------------------------------------------------------------
SUMMARY OF ADDITIONAL BENEFITS OF ACQUISITION OF FKT ON DBI & SB SUBSIDIARIES
FY1998 FY1999
Increase in DBI & SB Revenues (1) $ 80.0 $ 25.0
Increase in DBI & SB Gross Profits (1) $ 10.0 13.8
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) 1997 Estimate of SB without pipeline revenues and gross profit.
As Filed With SEC
<PAGE>
IMMEDIATE STEP # 3
FURTHER ENHANCEMENT OF SHAREHOLDER VALUE
BY
ACQUISITION OF REMAINING MINORITY INTERESTS OF
MCCONNELL DOWELL CORPORATION
OBJECTIVES:
SUBSTANTIALLY ENHANCE DBCO EBITDA FOR FINANCIAL ANALYSIS & CREDIT PURPOSES
PROVIDES SUBSTANTIALLY ENHANCED VALUATION FOR DBCO SHAREHOLDER
INTEGRATES DOMINION BRIDGE BUSINESS AND FINANCIAL STRATEGY
ELIMINATES MAJOR CURRENT CONFUSION OVER VALUE OF OPERATING COMPANY
WITH INVESTMENT IN MDC
ABILITY TO UTILIZE WORLDWIDE OPERATING COMPONENTS IN MUTUALLY BENEFICIALMANNER
NOW DEVELOP WORLDWIDE COMPENSATION AND INCENTIVE PROGRAM
As Filed With SEC
<PAGE>
DOMINION BRIDGE CORPORATION
ACQUISITION OF MDC MINORITY INTERESTS As Filed With SEC
SUMMARY OF RESULTS
($ 000,000 except as indicated)
BENEFITS FOR DOMINION BRIDGE SHAREHOLDERS BY OWNING AT LEAST 91% OF MDC
<TABLE>
<CAPTION>
Summary Based On Acquiring 100% of Minority Interest 1998 Est (2) 1999 Est (2)
--------------------------------
DBCO CORPORATE EBITDA INCREASE (1)
<S> <C> <C>
DBCO EBITDA Without Acquisition of Minority Int. $ 2.90 $ 15.97
DBCO EBITDA With Acquisition of Minority Int. 30.90 49.58
Increase of DBCO's EBITDA for credit &
For Valuation purposes $ 28.00 $ 33.62
Based On Industry Valuation 6.5 mean X EBITDA
Total Potential Increase in DBCO Shareholder Value $ 168.00 $ 218.50
Increase in DBCO Net Income 1.46 2.19
P/E Industy Mean 12.5X
Increase In Potential Valuation $ 18.31 $ 27.43
</TABLE>
(1) In Australia, Parent must own in excess of 90% of ordinary shares to be
able to use the EBITDA its own. As presented by current management, DBCO
financial statements imply access to MDC cash and EBITDA. The Company has
access only to its EBITDA in North America presently.
(2) Does not include acquisition of First Key Technologies.
<PAGE>
THE COMMITTEE TO REVITALIZE DOMINION BRIDGE
FORECAST RESULTS OF THE THREE STEPS TO BE UNDERTAKEN UPON CONTROL
OBJECTIVES:
Revitalize the Management, Customers and Shareholders of Dominion Bridge
Reposition and Enhance Dominion Bridge Corporation by Acquiring FKT
Increase DBCO Financial Strength and Valuation From
The Acquisition of McConnell Dowell
Integration of DBCO, FKT and MDC Provides An Experienced Management Team
RESULT: A REVITALIZED GROWTH COMPANY WITH A RE-ESTABLISHED, VALID STRATEGIC
PLAN
RESULT:
POTENTIAL FOR SUBSTANTIALLY ENHANCED PER SHARE VALUE IN SHORT AND LONG TERM
<PAGE>
<TABLE>
<CAPTION>
DOMINION BRIDGE CORPORATION As Filed With SEC
FORECAST AND HISTORY OF OPERATIONS THE COMMITTEE TO REVITALIZE DOMINION BRIDGE
($000,000 EXCEPT AS INDICATED) The projections have been prepared from
ASSUMES ACQUISITIONOF FKT AND MDC MINORITY INTERESTS pulished information and are not based on
confidential information.
FY: September 30 FY 1995 FY 1996 1997 - 6 MOS
----------------------- ------------------------------- ----------------------------
North Total North Pacific- Total North Pacific- Total
America Consol America MDC Consol America MDC Consol
----------------------- ------------------------------- ----------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sales 155.8 155.8 227.1 135.5 362.6 126.9 130.7 257.5
Gross Profit 19.6 19.6 19.2 19.7 39.0 11.0 17.3 28.3
As % 12.6% 12.6% 8.5% 14.6% 10.7% 8.6% 13.3% 11.0%
SG & A 15.4 15.4 29.6 9.1 38.7 16.8 10.5 27.3
----------------------- ------------------------------- ----------------------------
Subsidiaries 13.6 13.6 24.7 9.1 33.8 11.3 10.5 21.8
Corporate 1.8 1.8 5.0 - 5.0 5.5 - 5.5
EBITDA 4.2 4.2 (10.4) 10.6 0.3 (5.8) 6.8 1.0
As % 2.7% 2.7% -4.6% 7.8% 0.1% -4.6% 5.2% 0.4%
OTHER INCOME (EXP)
Deprec/Amort (3.3) (3.3) (0.5) (3.8) (4.3) 0.9 (3.7) (2.8)
JV Income 2.2 2.2 2.2 - 2.2 0.5 - 0.5
Other Income (Exp) 1.2 1.2 0.4 0.8 1.2 0.8 0.5 1.3
Unrecov. Assets
Gain - Sale of MDC Shs 3.0 - 3.0
Proxy Fght (Exps)
------------------------------------------------------ ------------------------------
0.1 0.1 2.1 (3.0) (0.9) 5.2 (3.2) 2.0
EBIT 4.3 4.3 (8.3) 7.6 (0.7) (0.6) 3.6 3.0
Interest Expense (Inc) 0.4 0.4 2.2 (0.1) 2.1 2.7 0.2 2.9
Int. Cost -MDC Min Int
EBT 3.9 3.9 (10.5) 7.7 (2.8) (3.3) 3.4 0.1
----------------------- ------------------------------- ----------------------------
Taxes on Income 1.7 1.7 (0.3) 0.9 0.6 (0.6) 1.7 1.1
Net Income 2.2 2.2 (10.1) 6.8 (3.4) (2.7) 1.6 (1.1)
Minority Interests
Preferred Divids 0.1 0.1 4.9 - 4.9 - - -
Common Stock 0.1 0.1 0.3 1.4 1.7 - 0.4 0.4
Net for Com Stk 2.0 2.0 (15.3) 5.4 (9.9) (2.7) 1.3 (1.4)
======================= =============================== ============================
As % 1.3% 1.3% -6.8% 4.0% -2.7% -2.1% 1.0% -0.6%
Earnings Per Share $ 0.11 $ 0.11 $(0.84) $ 0.30 $ (0.55) $ (0.10) $ 0.04 $(0.05)
Share of C.S. (000,000) (1)
Fully Diluted 17.69 17.69 23.57 23.57 23.57 28.89 28.89 28.89
</TABLE>
(1) The estimates for 1998 and 1999 are preliminary estimates of the
Committee to Revitalize Dominion Bridge. The actual shares may
vary.
<TABLE>
<CAPTION>
FY: September 30 FY 1997 FY 1998 FY 1999
------------------------------- -------------------------------- -------------------------------
North Pacific- Total North Pacific- Total North Pacific- Total
America MDC Consol America MDC Consol America MDC Consol
------------------------------- -------------------------------- -------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Sales 308.0 305.0 613.0 574.0 375.6 949.6 930.0 432.0 1,362.0
Gross Profit 27.3 41.2 68.5 69.2 51.0 120.2 116.2 59.6 175.8
As % 8.9% 13.5% 11.2% 12.1% 13.6% 12.7% 12.5% 13.8% 12.9%
SG & A 38.9 22.0 60.9 48.7 23.0 71.7 67.2 26.0 93.2
------------------------------- -------------------------------- -------------------------------
Subsidiaries 27.9 22.0 49.9 37.7 23.0 60.7 54.2 26.0 80.2
Corporate 11.0 - 11.0 11.0 - 11.0 13.0 - 13.0
EBITDA (11.6) 19.2 7.6 20.5 28.0 48.5 49.0 33.6 82.7
As % -3.8% 6.3% 1.2% 3.6% 7.5% 5.1% 5.3% 7.8% 6.1%
OTHER INCOME (EXP)
Deprec/Amort 2.5 (6.2) (3.8) (0.4) (9.0) (9.4) 1.1 (11.0) (9.9)
JV Income 1.5 - 1.5 - - - - - -
Other Income (Exp) (0.2) - (0.2) - - - - - -
Unrecov. Assets (7.5) (7.5) - - - - -
Gain - Sale of MDC Shs 3.0 3.0 - - - - - -
Proxy Fght (Exps) (1.0) - (1.0) - - - - -
----------------------------- -------------------------------- ----------------------------------
(1.7) (6.2) (8.0) (0.4) (9.0) (9.4) 1.1 (11.0) (9.9)
EBIT (13.3) 12.9 (0.4) 20.1 19.0 39.1 50.1 22.6 72.8
Interest Expense (Inc) 4.3 0.2 4.6 7.2 0.1 7.3 7.2 0.2 7.4
Int. Cost -MDC Min Int 4.8 - 4.8 3.9 - 3.9
EBT (17.7) 12.7 (5.0) 8.1 18.9 27.0 39.1 22.4 61.5
------------------------------- -------------------------------- -------------------------------
Taxes on Income (1.0) 3.8 2.8 2.0 6.2 8.3 12.5 7.4 19.9
Net Income (16.7) 8.9 (7.8) 6.1 12.7 18.8 26.6 15.0 41.6
Minority Interests
Preferred Divids -
Common Stock - 2.8 2.8 - - - -
Net for Com Stk (16.7) 6.1 (10.6) 6.1 12.7 18.8 26.6 15.0 41.6
=============================== ================================ ================================
As % -5.4% 2.0% -1.7% 1.1% 3.4% 2.0% 2.9% 3.5% 3.1%
Earnings Per Share $ (0.57) $ 0.21 $ (0.36) $ 0.17 $ 0.36 $ 0.54 $ 0.70 $ 0.40 $ 1.09
Share of C.S. (000,000) (1)
Fully Diluted 29.50 29.50 29.5 35.0 35.0 35.0 38.0 38.0 38.0
</TABLE>
(1) The estimates for 1998 and 1999 are preliminary estimates of the Committee
to Revitalize Dominion Bridge. The actual shares may vary.
