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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): March 9, 1998
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SVI Holdings, Inc.
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(Exact Name of Registrant as Specified in its Charter)
Nevada
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(State or Other Jurisdiction of Incorporation)
0-23049 84-1131608
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(Commission File Number) IRS Employer Identification No.)
7979 Ivanhoe Avenue, Suite 500, La Jolla, California 92037
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(Address of Principal Executive Offices) (Zip Code)
(619) 551-2365
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(Registrant's telephone number, including area code)
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(Former Name or Former Address, if Changed Since Last Report)
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The Registrant filed a Form 8-K on March 24, 1998 concerning an acquisition of
certain assets of Multisoft financial Systems Limited ("Multisoft"). This
filing on Form 8-K/A includes the required pro forma financial information of
the Registrant pursuant to Item 7(b) of Form 8-K. All capitalized terms have
the same meanings as set forth in the previously filed Form 8-K.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(b) Pro forma financial information
Please see financial statement pages indexed on Page F-1
SIGNATURE
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 hereto duly authorized.
Date: May 22, 1998
SVI Holdings, Inc.
(Registrant)
By: /s/ David L. Reese
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David L. Reese
Chief Financial Officer
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INDEX TO FINANCIAL STATEMENTS
F-2 Introduction
F-3 Pro Forma Consolidated Statement of Operations for the year ended
September 30, 1997
F-4 Pro Forma Consolidated Statement of Operations for the three months
ended December 31, 1997
F-5 Pro Forma Consolidated Balance Sheet at December 31, 1997
F-1
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SVI Holdings, Inc. and Subsidiaries
Introduction
The accompanying unaudited pro forma consolidated statement of
operations for the year ended September 30, 1997 combines the consolidated
operations of SVI Holdings, Inc. and its subsidiaries (collectively, the
"Company") with (i) the operations of Chapman Computers (Pty) Ltd ("Chapman"),
the assets of which were acquired by the Company on April 28, 1997, (ii) the
operations of IBIS Systems Limited ("IBIS"), the stock of which was acquired by
the Company on October 24, 1997, and (iii) the operations represented by certain
assets of Multisoft Financial Systems Limited (the "Multisoft Assets") acquired
by the Company on March 9, 1998, as if the respective acquisitions were
completed as of the beginning of the fiscal year presented, using the purchase
method of accounting and based upon the assumptions indicated on the notes to
the statement.
The accompanying unaudited pro forma consolidated statement of
operations for the three months ended December 31, 1997 combines the
consolidated operations of the Company with the operations represented by the
Multisoft Assets as if the acquisition of such assets was completed as of the
beginning of the three month period presented, using the purchase method of
accounting and based upon the assumptions indicated on the notes to the
statement.
The accompanying unaudited pro forma consolidated balance sheet
includes the balance sheet of the Company as of December 31, 1997, then assumes
the acquisition of the Multisoft Assets as if such acquisition occurred at
December 31, 1997.
These statements are not necessarily indicative of future operations or
the actual results that would have occured had the various acquisitions been
consummated at the beginning of the periods indicated.
The unaudited pro forma consolidated financial statements should be
read in conjunction with the historical financial statements of the Company and
the notes to such statements, included in the Company's Form 10-KSB for the
fiscal year ended September 30, 1997 and Form 10-QSB for the three months ended
December 31, 1997, as well as the historical financial statements of Chapman and
IBIS included in the Company's Form 8-K filed on August 11, 1997 and Form 8-K/A
filed February 12, 1998, respectively.
F-2
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<TABLE>
SVI Holdings, Inc. and Subsidiaries
Pro Forma Consolidated Statement of Operations
For the Year Ended September 30, 1997
(Unaudited)
<CAPTION>
SVI Holdings A Multisoft Pro Forma Pro Forma
and Subsidiaries Chapman IBIS Assets Adjustments Consolidated
<S> <C> <C> <C> <C> <C> <C> <C>
Net Sales $ 10,433,878 $ 699,426 $ 4,756,800 $ 5,469,981 $ 21,360,085
Cost Of Goods Sold 3,036,660 219,501 1,850,038 1,474,830 6,581,029
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Gross Profit 7,397,218 479,925 2,906,762 3,995,151 14,779,056
Selling, General and Admin. Expenses 5,883,558 296,903 1,743,300 1,741,938 B (1,177,638) 8,488,061
------------------------------------------------ ------------ ------------
Profit / (loss) from operations 1,513,660 183,022 1,163,462 2,253,213 (1,177,638) 6,290,995
Interest Income 60,751 60,751
Interest Expense (103,398) (553) 43,434 (60,517)
Other Income - 32,891 82,423 115,314
Gain on disposal of Softline Limited Shares 3,973,755 - C 5,232,774 9,206,529
Equity in Earnings of Softline Limited 627,550 - D (627,550) -
Foreign Exchange Gain / Loss (120,455) - (120,455)
------------------------------------------------ ------------ ------------
Income before income tax 5,951,863 215,360 1,289,319 2,253,213 3,427,586 15,492,617
Income Taxes 1,103,453 743,970 E 511,591 2,359,014
------------------------------------------------ ------------ ------------
Net Income $ 4,848,410 $ 215,360 $ 1,289,319 $ 1,509,243 $ 2,915,995 $13,133,603
================================================ ============ ============
Earnings per share:
Basic Earnings per share $ 0.31 $ 0.47
============ ============
Diluted earnings per share $ 0.29 $ 0.45
============ ============
Shares Outstanding 15,617,665 F 12,536,000 28,153,665
============ ============
Proforma Adjustments:
</TABLE>
A Chapman was acquired at 4/1/97. For this proforma they are fully consolidated
with SVI Holdings, Inc. for the period 4/1/97 to 9/30/97 and shown proforma
for the period 10/1/96 to 3/31/97 in the Chapman column.
B Amortization of Goodwill - Multisoft Assets (249,265)
Amortization of Goodwill - IBIS (234,204)
Amortization of Software License Rights - Brilliant software (460,472)
Amortization of Software License Rights - IBIS (233,697)
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(1,177,638)
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C Proceed from sale of Softline shares 6,383,979
Less: investment in Softline shares (1,778,755)
Add: equity in earnings of Softline Limited 627,550
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5,232,774
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D Eliminate earnings Softline to reflect sale of shares 627,550
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E Income Tax Expense on Chapman and IBIS is estimated
at 34% of pre-tax income as follows:
Chapman 73,222
IBIS 438,369
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511,591
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Income tax expense for Multisoft Assets is based on estimated
rate of 33%.
F Shares issued for acquisition of IBIS 5,000,000
Shares issued for cash and technology rights 7,536,000
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12,536,000
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No assumptions are made herein regarding debt reduction or interest income
related to the proforma increase in cash.
F-3
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<TABLE>
SVI Holdings, Inc. and Subsidiaries
Pro Forma Consolidated Statement of Operations
For the Three Months Ended December 31, 1997
(Unaudited)
<CAPTION>
B
SVI Holdings Multisoft Pro Forma Pro Forma
and Subsidiaries Assets Adjustments Consolidated
<S> <C> <C> <C> <C>
Net Sales $ 10,016,343 $ 967,491 $ 10,983,834
Cost Of Goods Sold 5,100,118 246,390 5,346,508
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Gross Profit 4,916,225 721,101 5,637,326
Selling, General and Admin. Expenses 2,994,823 287,455 A 58,551 3,340,829
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Profit / (loss) from operations 1,921,402 433,646 2,355,048
Interest Income 86,557 86,557
Interest Expense 0
Other Income 15,258 15,258
Gain on disposal of Softline Limited Shares 4,018,407 4,018,407
Equity in Earnings of Softline Limited - -
Foreign Exchange Gain / Loss (32,782) (32,782)
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Income before income tax 6,008,842 433,646 6,442,488
Income Taxes 2,040,493 142,906 C 2,183,399
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Net Income $ 3,968,349 $ 290,740 $ 4,259,089
============ ============ ============
Earnings per share:
Basic Earnings per share $ 0.14 $ 0.15
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Diluted earnings per share $ 0.13 $ 0.14
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Shares Outstanding 28,153,665 28,153,665
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</TABLE>
Proforma Adjustments:
A Amortization of Goodwill - Multisoft Assets 58,551
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B Includes Chapman Computers and IBIS on a fully consolidated basis.
C Income tax expense for Multisoft Assets is based on an estimated rate of 33%.
No assumptions are made herein regarding debt reduction or interest income
related to the pro forma increase in cash.
F-4
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<TABLE>
SVI Holdings, Inc. and Subsidiaries
CONSOLIDATED PROFORMA BALANCE SHEET AT December 31, 1997
(Unaudited)
<CAPTION>
SVI Holdings Multisoft Pro Forma Pro Forma
and Subsidiaries Assets Adjustments Consolidated
ASSETS
<S> <C> <C> <C> <C> <C>
Current Assets
Pledged certificates of deposit - -
Cash 17,992,828 B (4,985,295) 13,007,533
Accounts receivable 1,979,301 1,979,301
Inventories 311,096 311,096
Prepaid expenses and other current assets 538,874 538,874
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Total current assets 20,822,099 - 15,836,804
Furniture and equipment, net 702,242 147,843 850,085
Investment in Softline Holdings, at equity - -
Deferred tax asset - -
License rights, net of accumulated amortization 12,008,344 12,008,344
Other Assets 9,726 9,726
Deferred Income - (1,397,938) (1,397,938)
Goodwill on acquisition of subsidiary
and assets - net of accumulated amortization 7,204,564 1,540,853 A 4,926,744 13,672,161
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40,746,975 290,758 40,979,182
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LIABILITIES AND STOCKHOLDERS DEFICIT
Current liabilities
Lines of credit - -
Notes payable - -
Accounts payable and accrued expenses 3,946,348 3,946,348
Income Taxes Payable 2,040,493 - - 2,040,493
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Total current liabilities 5,986,841 - 5,986,841
Long-term liabilities 572,045 572,045
Due to stockholders 136,695 136,695
Stockholders deficit
Preferred stock, $.0001 par value,
5,000,000 shares authorized, none issued
Common stock,$.0001 par value, 50,000,000
authorized, 15,617,665 shares issued -
and outstanding 2,794 - 2,794
Additional paid in capital 31,869,065 - 31,869,065
Retained Earnings (deficit) 2,449,376 290,740 A (58,551) 2,681,565
Cumulative translation adjustment (269,841) 18 (269,823)
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Total stockholders equity 34,051,394 290,758 34,283,601
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40,746,975 290,758 40,979,182
============= ============= =============
</TABLE>
Proforma Adjustments:
A Excess of purchase price over Net Asset Value of acquired
assets 4,985,295
Less: accumulated amortization (58,551)
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4,926,744
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B Cash expended to acquire Multisoft assets (4,985,295)
(Gross purchase price less contract prepayments received) =============
F-5
