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<PAGE>
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): June 3, 1999
--------------------
SVI Holdings, Inc.
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Nevada
- --------------------------------------------------------------------------------
(State or Other Jurisdiction of Incorporation)
0-23049 84-1131608
- ------------------------ -------------------------------
(Commission File Number) IRS Employer Identification No.)
12707 High Bluff Drive, Suite 335, San Diego, California 92130
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(858) 481-4404
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
7979 Ivanhoe Avenue, Suite 500, La Jolla, California 92037
- --------------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
<PAGE>
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
See Item 7 Financial Statements and Exhibits.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements of Business Acquired
F-1 Unaudited Balance Sheet as of March 31, 1999 (superceding
page F-1 of Item 7(a) on the Form 8-K/A filed August 16,
1999)
F-2 Unaudited Statements of Operations and Retained Earnings for
the periods ended March 31, 1999 and 1998 (superceding page
F-2 of Item 7(a) on the Form 8-K/A filed August 16, 1999)
F-3 Unaudited Statement of Cash Flows for the periods ended
March 31, 1999 and 1998
F-4 Notes to Unaudited Interim Financial Statements
The financial statements appearing on pages F-3 through F-11
filed with the Form 8-K/A filed on August 16, 1999 are
incorporated by reference.
(b) Pro Forma Financial Information
F-5-F-6 Pro Forma Consolidated Balance Sheet as of March 31, 1999
(superceding pages F-13 - F-14 of Item 7(b) on the Form
8-K/A filed August 16, 1999)
F-7-F-8 Pro Forma Consolidated Statement of Operations for the
fiscal year ended March 31, 1999 (superceding page F-15 of
Item 7(a) on the Form 8-K/A filed August 16, 1999)
The Introductory Notes appearing on page F-12 of the Form 8-K/A
filed on August 16, 1999 are incorporated by reference.
(c) Exhibits
The Exhibits filed with the Form 8-K filed on June 18, 1999 and
the Form 8-K/A filed on August 16, 1999 are incorporated by
reference.
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: November 15, 1999
SVI Holdings, Inc.
(Registrant)
By: /s/ David L. Reese
------------------
David L. Reese, Chief Financial Officer
<PAGE>
<TABLE>
Island Pacific Systems Corporation
Balance Sheets
(unaudited)
<CAPTION>
March 31,
1999 1998
------------ ------------
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 1,647,025 $ 1,237,541
Accounts receivable 2,055,153 859,843
Prepaid expenses and other assets 251,641 139,937
------------ ------------
Total current assets 3,953,819 2,237,321
Fixed assets 1,651,068 1,688,525
Goodwill - 8,100
Other assets 44,855 45,855
------------ ------------
Total Assets $ 5,649,742 $ 3,979,801
============ ============
Liabilities and Stockholder's Equity
Current liabilities:
Accounts payable and accrued expenses $ 2,582,417 1,090,549
Refundable customer deposits 1,003,822 506,723
------------ ------------
Total current liabilities 3,586,239 1,597,272
Deferred rent 104,083 126,929
------------ ------------
Total liabilities 3,690,322 1,724,201
------------ ------------
Stockholder's equity:
Capital stock 800 800
Retained earnings 1,958,620 2,254,800
------------ ------------
Total stockholder's equity 1,959,420 2,255,600
------------ ------------
Total Liabilities and Stockholder's Equity $ 5,649,742 $ 3,979,801
============ ============
</TABLE>
F-1
<PAGE>
<TABLE>
Island Pacific Systems Corporation
Statements of Operations and Retained Earnings
(Unaudited)
<CAPTION>
Three Months Ended March 31,
1999 1998
------------ ------------
<S> <C> <C>
Sales
Program product $ 2,399,365 $ 3,084,009
System support 909,247 1,624,010
------------ ------------
3,308,612 4,708,019
Cost of sales 691,458 1,026,623
------------ ------------
Gross profit 2,617,154 3,681,396
Selling, general and administrative expenses 1,963,997 1,020,211
Research and development expenses 1,430,370 1,124,732
Other income (6,452) (530)
------------ ------------
Income before provision for income taxes (770,761) 1,536,983
Income tax provision - 29,877
------------ ------------
Net income (770,761) 1,507,106
Retained earnings at beginning of period 2,729,381 747,694
------------ ------------
Retained earnings at end of period $ 1,958,620 $ 2,254,800
============ ============
</TABLE>
F-2
<PAGE>
<TABLE>
Island Pacific Systems Corporation
Statements of Cash Flows
(unaudited)
<CAPTION>
Three months ended March 31,
1999 1998
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ (770,761) $ 1,507,107
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation and amortization 76,940 79,951
Changes in assets and liabilities:
Accounts receivable (26,576) 511,310
Prepaid expenses and other assets (2,574) (15,635)
Accounts payable and accrued liabilities 678,081 (599,422)
Customer deposits 982,842 -
Deferred rent 4,855 57,516
Deferred revenue - (194,597)
------------ ------------
Net cash provided by operating activities 942,807 1,346,230
------------ ------------
Cash flows from investing activities:
Purchase of equipment and fixtures (24,867) (74,390)
Purchase of improvements to investment in long-term
real estate - (8,100)
------------ ------------
Net cash used by investing activities (24,867) (82,490)
------------ ------------
Cash flows from financing activities:
Payments on line of credit (466,715) (661,947)
Receipts on Note 30,000 57,000
------------ ------------
Net cash used by financing activities (436,715) (604,947)
------------ ------------
Net increase in cash and cash equivalents 481,225 658,793
Cash and cash equivalents at beginning of year 1,165,800 578,748
------------ ------------
Cash and cash equivalents at end of year $ 1,647,025 $ 1,237,541
============ ============
</TABLE>
F-3
<PAGE>
Island Pacific Systems Corporation
Notes to Unaudited Interim Financial Statements
The accompanying unaudited interim financial statements have been prepared from
the unaudited records of Island Pacific Systems Corporation ("Island Pacific").
In the opinion of management, all adjustments necessary to present fairly the
financial position, results of operations and cash flows at March 31, 1999 and
for all the periods presented have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been omitted. Accounting policies followed by Island Pacific are described
in the notes to the financial statements in its report for the years ended
December 31, 1998 and 1997. The financial information included in this interim
report should be read in conjunction with those statements.
The results of operations for the three months ended March 31, 1999 are not
necessarily indicative of the results to be expected for the full year.
F-4
<PAGE>
<TABLE>
SVI Holdings, Inc. and Subsidiaries
Pro Forma Consolidated Balance Sheet
As of March 31, 1999
(Unaudited)
<CAPTION>
SVI Holdings Island Pro forma Pro forma
and Subsidiaries Pacific Adjustments Notes Consolidated
--------------------------------------------- ---------------
<S> <C> <C> <C> <C> <C>
ASSETS
Current assets
Cash $ 13,006,153 $ 1,647,025 $ (10,515,794) (A) $ 4,137,384
Accounts receivable, net 3,310,008 2,055,153 5,365,161
Other receivables 2,994,836 - 2,994,836
Note receivable 13,608,000 - 13,608,000
Inventories 238,314 - 238,314
Prepaid expenses and other current assets 183,760 251,641 435,401
--------------------------------------------- ---------------
Total current assets 33,341,071 3,953,819 (10,515,794) 26,779,096
Furniture and equipment, net 734,386 1,651,068 (855,957) (A) 1,529,497
Capitalized software, net 14,053,186 - 22,000,000 (A) 36,053,186
Goodwill on acquisition of subsidiaries, net 4,534,570 - 19,835,786 (A) 24,370,356
Not-to-compete agreements, net 1,677,112 - 2,000,000 (A) 3,677,112
Deferred tax asset 762,910 762,910
Other assets 175,649 44,855 220,504
--------------------------------------------- ---------------
Total assets $ 55,278,884 $ 5,649,742 $ 32,464,035 $ 93,392,661
============================================= ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 345,275 $ 53,496 $ 398,771
Accrued expenses 1,908,105 3,532,743 834,921 (A) 6,275,769
Line of credit 231,876 - 231,876
Note payable to bank - 15,000,000 (A) 15,000,000
Income taxes payable 2,576,151 - 2,576,151
--------------------------------------------- ---------------
Total current liabilities 5,061,407 3,586,239 15,834,921 24,482,567
Note payables - 3,500,000 (A) 3,500,000
Due to stockholder - 2,300,000 (A) 2,300,000
Long-term liabilities 2,000,000 104,083 2,104,083
Deferred tax liabilities 805,433 8,800,000 (A) 9,605,433
--------------------------------------------- ---------------
Total liabilities 7,866,840 3,690,322 30,434,921 41,992,083
--------------------------------------------- ---------------
Stockholders' equity
Preferred stock -
Common stock 2,987 800 (601) (A) 3,186
Additional paid in capital 39,435,921 3,988,335 (A) 43,424,256
Treasury Stock (951,404) (951,404)
Retained earnings 9,885,138 1,958,620 (1,958,620) (A) 9,885,138
Cumulative translation adjustment (960,598) - - (960,598)
--------------------------------------------- ---------------
47,412,044 1,959,420 2,029,114 51,400,578
--------------------------------------------- ---------------
Total liabilities and stockholders' equity $ 55,278,884 $ 5,649,742 $ 32,464,035 $ 93,392,661
============================================= ===============
F-5
<PAGE>
SVI Holdings, Inc. and Subsidiaries
Pro Forma Consolidated Balance Sheet
As of March 31, 1999
(Unaudited)
Pro forma adjustments:
(A) Funding for acquisition of Island Pacific:
Cash on hand at March 31, 1999 10,515,794
Softline Limited exercised options to purchase
1,994,267 SVI shares: -
Common stock 199
Paid in capital 3,988,335
----------------
3,988,534
Bank loan #1 15,000,000
Bank loan #2 3,500,000
Loan from a stockholder 2,300,000
--------------
Cash paid for acquisition of Island Pacific 35,304,328
==============
Assets acquired from acquisition of Island Pacific:
Capital stock 800
Retained earnings 1,958,620
Real estate in UK, not part of the acquisition (855,957)
Forgiveness of accrued royalties due to seller 930,381
Distribution of retained earnings due to seller (1,765,302)
Deferred tax liability for software amortization (8,800,000)
Software 22,000,000
Non-compete covenants 2,000,000
Goodwill 19,835,786
--------------
Purchase price 35,304,328
==============
</TABLE>
F-6
<PAGE>
<TABLE>
SVI Holdings, Inc. and Subsidiaries
Pro Forma Consolidated Statement of Operations
For the Year Ended March 31, 1999
(Unaudited)
<CAPTION>
SVI Holdings Island Pro Forma Pro Forma
and Subsidiaries Pacific Adjustments Notes Consolidated
---------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net sales $ 17,486,670 $ 15,337,722 $ 32,824,392
Cost of goods sold 5,347,376 4,563,823 9,911,199
---------------------------------------------- ----------------
Gross profit 12,139,294 10,773,899 - 22,913,193
Research and development expenses - 4,576,452 4,576,452
Selling, general and admin. expenses 9,997,805 6,499,126 3,042,548 (A,B) 19,539,479
---------------------------------------------- ----------------
Income from operations 2,141,489 (301,679) (3,042,548) (1,202,738)
Interest income 646,343 510,300 (D) 1,156,643
Interest expense (90,467) (1,076,733) (C) (1,167,200)
Other income 817,108 52,677 869,785
Foreign exchange gain (loss) (145,850) - (145,850)
---------------------------------------------- ----------------
Income before income taxes 3,368,623 (249,002) (3,608,981) (489,360)
Income tax provision 1,670,966 47,177 (1,443,592) (E) 274,551
---------------------------------------------- ----------------
Net income from continuing operations $ 1,697,657 $ (296,179) $ (2,165,389) $ (763,911)
============================================== ================
Earnings per share:
Basic $ 0.06 $ (0.02)
Diluted $ 0.05 $ (0.02)
Shares outstanding:
Basic 28,599,597 1,994,267 (F) 30,593,864
Diluted 33,071,287 1,994,267 (F) 35,065,554
Pro forma Adjustments:
(A) Amortization of intangible assets acquired in connection with the
acquisition of Island Pacific:
Software rights 2,200,000
Goodwill 511,345
Non-compete agreements 700,000
---------------
3,411,345
===============
F-7
<PAGE>
SVI Holdings, Inc. and Subsidiaries
Pro Forma Consolidated Statement of Operations
For the Year Ended March 31, 1999
(Unaudited)
(B) Reverse transactions related to IBIS on the books of Sabica Ventures
(Parent):
Amortization of IBIS software (175,273)
Amortization of goodwill - IBIS (193,524)
-------------
(368,797)
=============
(C) Interest expense on loans for the Island
Pacific acquisition
Bank loan $15 million, six months 598,125
Bank loan $3.5 million, two years 294,608
Stockholder's loan @8% 184,000
-------------
1,076,733
=============
(D) Interest income on note receivable from buyers
of IBIS Systems Ltd.
Note receivable @ 7.5%, due in six months 510,300
=============
(E) Income tax benefits:
Pro forma adjustments (3,608,981)
Effective tax rate 40%
-------------
Income tax benefits (1,443,592)
=============
(F) Softline Limited exercised options to purchase
SVI common stock 1,994,267 shares
=============
F-8
</TABLE>
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