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 (Date of Earliest Event Reported): February 26, 1998
U.S. HOME & GARDEN INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-19899 77-0262908
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
655 Montgomery Street, Suite 500, San Francisco, California 94111
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (415) 616-8111
- --------------------------------------------------------------------------------
Former name or former address, if changed since last report
<PAGE>
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(a) Financial Statements of Business Acquired
WEED WIZARD, INC.
Financial Page No.
------------------
Report of Independent Auditors F-1
Balance Sheet F-2-3
as of December 31, 1997
Statement of Income for the year F-4
ended December 31, 1997
Statement of Stockholders' Equity for the F-5
year ended December 31, 1997
Statement of Cash Flows for F-6
the year ended December 31, 1997.
Summary of Accounting Policies F-7-8
Notes to Financial Statements F-9-12
(b) Pro forma financial information.
ACQUISITION OF WEED WIZARD, INC.
Introduction PF-1
Pro forma condensed consolidated balance sheet -
December 31, 1997 PF-2
Pro forma condensed consolidated statements of operations
for the six months ended December 31, 1997 PF-3
Pro forma consensed consolidated statements of
operations for the year ended June 30, 1997 PF-4-5
Notes to pro forma condensed consolidated
financial statements PF-6
(c) Exhibits
Exhibit 23 Consent of BDO Seidman, LLP
-2-
<PAGE>
Report of Independent Certified Public Accountants
To the Board of Directors and the Shareholders of
Weed Wizard, Inc. and U.S. Home & Garden Inc.
We have audited the accompanying balance sheet of Weed Wizard, Inc. as of
December 31, 1997, and the related statements of income, stockholders' equity,
and cash flows for the year then ended. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Weed Wizard, Inc. at December
31, 1997 and the results of its operations and its cash flows for the year then
ended in conformity with generally accepted accounting principles.
/s/ BDO SEIDMAN, LLP
BDO SEIDMAN, LLP
San Francisco, California
April 24,1998
F-1
<PAGE>
Weed Wizard, Inc.
Balance Sheet
================================================================================
December 31, 1997
- --------------------------------------------------------------------------------
Assets
Current
Cash $ 97,410
Accounts receivable, less allowance for doubtful
accounts and sales returns of $53,000 (Notes 2 and 6) 173,034
Inventories (Notes 1 and 2) 4,576,767
Prepaid expenses and other current assets 238,022
- --------------------------------------------------------------------------------
Total Current Assets 5,085,233
Property and Equipment
Machinery and equipment 949,011
Computers 84,371
Automotive equipment 80,408
Office furniture and fixtures 52,410
Leasehold improvements 36,800
- --------------------------------------------------------------------------------
1,203,000
Less accumulated depreciation 550,664
- --------------------------------------------------------------------------------
652,336
Other Assets 2,319
- --------------------------------------------------------------------------------
$5,739,888
================================================================================
See accompanying summary of accounting policies and notes to financial
statements.
F-2
<PAGE>
Weed Wizard, Inc.
Balance Sheet
================================================================================
December 31, 1997
- --------------------------------------------------------------------------------
Liabilities and Stockholders' Equity
Current
Line of credit (Notes 2 and 8) $ 247,182
Current maturities of notes payable (Notes 3 and 8) 269,114
Notes payable to stockholders (Notes 4 and 8) 1,959,262
Accounts payable 91,979
Accrued expenses 95,812
Customer deposits 159,118
- --------------------------------------------------------------------------------
Total Current Liabilities 2,822,467
Notes Payable, less current maturities (Notes 3 and 8) 1,502,913
- --------------------------------------------------------------------------------
Total Liabilities 4,325,380
- --------------------------------------------------------------------------------
Commitments, Contingencies and Subsequent Event (Notes 2, 5 and 8)
Stockholders' Equity
Common stock; 1,000,000 shares authorized,
2,000 shares issued and outstanding 600
Paid-in capital 1,065,003
Retained earnings 348,905
- --------------------------------------------------------------------------------
Total Stockholders' Equity 1,414,508
- --------------------------------------------------------------------------------
$5,739,888
================================================================================
See accompanying summary of accounting policies and notes to financial
statements.
F-3
<PAGE>
Weed Wizard, Inc.
Statement of Income
================================================================================
Year ended December 31, 1997
- --------------------------------------------------------------------------------
Net Sales (Note 6) $ 7,073,995
Cost of Sales 2,603,354
- --------------------------------------------------------------------------------
Gross Profit 4,470,641
- --------------------------------------------------------------------------------
Operating Expenses
Selling and shipping 1,475,270
General and administrative 1,655,219
- --------------------------------------------------------------------------------
3,130,489
- --------------------------------------------------------------------------------
Income from Operations 1,340,152
Other Income (Expense)
Interest expense (351,374)
Other 8,606
- --------------------------------------------------------------------------------
Net Income $ 997,384
================================================================================
See accompanying summary of accounting policies and notes to financial
statements.
F-4
<PAGE>
Weed Wizard, Inc.
Statement of Stockholders' Equity
================================================================================
<TABLE>
<CAPTION>
Common Stock Retained Total
------------------ Paid-In Earnings Stockholders'
Shares Amount Capital (Deficit) Equity
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balance, January 1, 1997 2,000 $ 600 $ 35,400 $ (13,431) $ 22,569
Conversion of debt to paid-in capital
(Note 7) -- -- 1,029,603 -- 1,029,603
Distributions -- -- -- (635,048) (635,048)
Net income -- -- -- 997,384 997,384
- --------------------------------------------------------------------------------------------------------------
Balance, December 31, 1997 2,000 $ 600 $ 1,065,003 $ 348,905 $ 1,414,508
- --------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying summary of accounting policies and notes to financial
statements.
F-5
<PAGE>
Weed Wizard, Inc.
Statement of Cash Flows
================================================================================
Increase (Decrease) in Cash
Year ended December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
Cash Flows from Operating Activities
Net income $ 997,384
Adjustments to reconcile net income to net cash used in operating activities:
Provision for possible losses on accounts receivable 53,000
Depreciation and amortization 291,330
Loss on disposal of assets 2,585
Changes in operating asset and liabilities:
Accounts receivable (550,030)
Inventories (593,747)
Prepaid expenses and other current assets 217,069
Accounts payable (291,170)
Accrued expenses (59,302)
Customer deposits (706,322)
Other assets 160
- ------------------------------------------------------------------------------------------------
Net Cash Used in Operating Activities (639,043)
- ------------------------------------------------------------------------------------------------
Cash Flows from Investing Activities
Acquisition of property and equipment (233,675)
Proceeds from sale of property and equipment 63,175
- ------------------------------------------------------------------------------------------------
Net Cash Used in Investing Activities (170,500)
- ------------------------------------------------------------------------------------------------
Cash Flows from Financing Activities
Net borrowings under line of credit 247,182
Proceeds from notes payable 1,651,132
Payments of notes payable (2,703,146)
Proceeds from notes payable to stockholders 1,959,262
Distributions (635,048)
- ------------------------------------------------------------------------------------------------
Net Cash Provided by Financing Activities 519,382
- ------------------------------------------------------------------------------------------------
Net decrease in cash (290,161)
Cash, beginning of year 387,571
- ------------------------------------------------------------------------------------------------
Cash, end of year $ 97,410
================================================================================================
</TABLE>
See accompanying summary of accounting policies and notes to financial
statements.
F-6
<PAGE>
Weed Wizard, Inc.
Summary of Accounting Policies
================================================================================
Nature of Business Weed Wizard, Inc. (the "Company") is a
manufacturer and marketer of lawn and garden care
accessories, principally consisting of lawn
trimmer head systems. The Company primarily sells
its products throughout North America.
Inventories Inventories, which consist of raw materials,
packing materials and finished goods are stated at
the lower of cost or market; cost is determined by
the first-in, first-out (FIFO) cost method.
Property, Equipment and Property and equipment are stated at cost.
Depreciation Depreciation is computed using an accelerated
method over the estimated three to seven year
useful lives of the assets. Leasehold improvements
are amortized using the straight-line method over
the shorter of the lease term or their estimated
useful life. Maintenance and repairs are expensed
as incurred and improvements are capitalized.
Revenue Recognition Sales are recorded as products are shipped to
customers.
Income Taxes The Company is an S Corporation for Federal and
State income tax purposes. As an S Corporation,
the Company's corporate taxable income or loss,
tax credits and various deductions pass through to
the individual income tax returns of the
stockholders. The states in which the Company
operates generally recognize Federal S Corporation
provisions. As a result, no Federal or State
income tax is imposed on the Company. The net
difference between the tax and book bases of the
Company's assets and liabilities at December 31,
1997 consists principally of an inventory uniform
capitalization tax adjustment totaling
approximately $329,000.
Advertising Costs The Company expenses advertising costs as they are
incurred. During the year ended December 31, 1997,
advertising expense was $1,054,014.
Use of Estimates The preparation of financial statements in
conformity with generally accepted accounting
principles requires management to make estimates
and assumptions that affect the reported amounts
of assets and liabilities and disclosure of
contingent assets and liabilities at the date of
the financial statements and the reported amounts
of revenues and expenses during the reporting
period. Actual results could differ from those
estimates.
F-7
<PAGE>
Weed Wizard, Inc.
Summary of Accounting Policies
================================================================================
Financial Instruments The Company's financial instruments consist of
cash, accounts receivable and debt. The carrying
value of cash and accounts receivable approximate
fair value based upon the liquidity and short-term
nature of the assets. The carrying value of
short-term and long-term debt approximates the
fair value based upon short-term and long-term
borrowings at market rate interest.
Cash is held principally at two high quality
financial institutions. At times, such balances
may be in excess of the FDIC insurance limit.
Long-Lived Assets Long-lived assets are evaluated for possible
impairment whenever events or changes in
circumstances indicate that the carrying amounts
may not be recoverable, or whenever management has
committed to a plan to dispose of the assets. Such
assets are carried at the lower of book value or
fair value as estimated by management based on
appraisals, current market value, and comparable
sales value, as appropriate. Assets to be held and
used affected by such impairment loss are
depreciated at their new carrying amount over the
remaining estimated life, assets to be paid or
otherwise disposed of are not subject to further
depreciation. In determining whether an impairment
exists, the Company uses undiscounted future cash
flows compared to the carrying value of the asset.
F-8
<PAGE>
Weed Wizard, Inc.
Notes to Financial Statements
================================================================================
1. Inventories Inventories at December 31, 1997 consist of:
---------------------------------------------------
Raw materials $1,697,208
Packaging materials 225,388
Finished goods 2,654,171
---------------------------------------------------
$4,576,767
====================================================
2. Line of Credit The Company has a revolving line of credit with a
financial institution providing for maximum
advances of $321,000. Interest on advances is
calculated at the bank's prime rate (8.5% at
December 31, 1997). Borrowings are collateralized
by eligible accounts receivable and inventory. As
of December 31, 1997, the Company had outstanding
borrowings of $247,182. In January 1998, the
credit agreement expired and the outstanding
balance on the line was repaid in full.
3. Notes Payable Notes payable consist of the following at December
31, 1997:
--------------------------------------------------
Note payable, interest at
bank's prime rate,
collateralized by real estate
owned by certain stockholders,
monthly principal payments of
$9,973, plus interest,
commencing October 1997 until
September 2000, at which time
unpaid principal and accrued
interest is due in full. $ 656,753
Note payable, interest at
bank's prime rate,
collateralized by real estate
owned by certain stockholders,
payable in three annual
installments of $51,483, plus
interest, commencing November
1997, with the remaining
unpaid balance due October
1999. 652,491
F-9
<PAGE>
Weed Wizard, Inc.
Notes to Financial Statements
================================================================================
Note payable, interest at
bank's prime rate,
collateralized by real estate
owned by certain stockholders,
monthly principal payments of
$7,230, plus interest, through
September 2000, at which time
all unpaid principal and
accrued interest is due in
full. $ 340,855
Note payable, interest at
10.5%, collateralized by an
insurance premium contract,
monthly principal payments of
$22,806, plus interest,
through April 1998. 89,209
Note payable, interest at
bank's prime rate,
collateralized by real estate
owned by certain stockholders
and equipment, monthly
principal payments of $416,
plus interest, commencing
September 1997 through August
2000, at which time all unpaid
principal and accrued interest
is due in full. 32,719
The bank's prime interest rate
was 8.5% at December 31, 1997.
--------------------------------------------------
1,772,027
Less current portion 269,114
--------------------------------------------------
$ 1,502,913
===================================================
Future minimum principal payments are as follows:
Year ending December 31, Amount
--------------------------------------------------
1998 $ 269,114
1999 693,273
2000 809,640
--------------------------------------------------
$ 1,772,027
==================================================
F-10
<PAGE>
4. Notes Payable to Notes payable to stockholders consist of the
Stockholders following at December 31, 1997:
--------------------------------------------------
Note payable, unsecured,
interest at prime rate plus
.25% (8.75% at December 31,
1997), with principal and
unpaid accrued interest due
December 1998. $ 966,762
Note payable, unsecured,
interest at 10.5%, with
principal and unpaid accrued
interest due upon demand. 450,000
Note payable, unsecured,
interest at 8.5%, with
principal and unpaid accrued
interest due upon demand. 299,000
Note payable, unsecured,
interest at 8.5%, with
principal and unpaid accrued
interest due upon demand. 243,500
--------------------------------------------------
$ 1,959,262
==================================================
5. Commitment and Related Party Operating Lease
Contingencies
The Company leases its office and plant facilities
from the Company's stockholders. The lease
requires the Company to pay real estate taxes,
insurance, maintenance and utilities. The lease
expires in March 2001. The future minimum payments
under the operating lease are as follows:
Year ending December 31, Amount
--------------------------------------------------
1998 $ 189,750
1999 189,750
2000 189,750
2001 47,438
--------------------------------------------------
$ 616,688
==================================================
Rent expense was $189,750 for the year ended
December 31, 1997.
F-11
<PAGE>
Product Liability
The Company is subject to various lawsuits and
claims with respect to product liabilities arising
out of the normal course of business. While the
effect on future financial results is not subject
to reasonable estimation because uncertainty
exists, in the opinion of the Company's
management, the ultimate liabilities resulting
from such lawsuits and claims will not materially
affect the financial position of the Company based
upon current levels of insurance coverage.
6. Concentration of Trade accounts receivable are due primarily from
Credit Risk and numerous customers located in many geographic
Significant Customers regions throughout the United States. The Company
performs ongoing credit evaluations of its
customers' financial conditions and establishes an
allowance for doubtful accounts based upon the
credit risk of specific customers, historical
trends and other information. The Company does not
require collateral from its customers. During the
year ended December 31, 1997, sales to three
customers accounted for approximately 15%, 14% and
10% of total gross sales.
7. Supplemental Cash Flow During the year ended December 31, 1997, cash paid
Information for interest was $336,628.
Supplemental schedule of noncash financing
activities:
During 1997, the Company converted a note payable
to stockholders totaling $1,029,603 into paid in
capital.
8. Subsequent Event In February 1998, U.S. Home & Garden Inc. acquired
all of the assets of the Company for approximately
$16 million, of which approximately $5 million was
based on the value of certain net assets of the
Company. In connection with the sale of the
Company's assets, all of the outstanding notes
payable to banks and stockholders were repaid in
full.
F-12
<PAGE>
U.S. Home & Garden Inc. and Subsidiaries
Pro Forma Condensed Consolidated Financial
(Unaudited)
================================================================================
On February 25, 1998, Weed Wizard Acquisition Corporation, a wholly-owned
subsidiary of U.S. Home & Garden Inc. (the "Company") acquired all of the assets
and assumed certain liabilities of Weed Wizard, Inc. (Weed Wizard), a lawn and
garden care company, for $14 million plus the acquired company's net current
assets in excess of $3 million. For purposes of these pro forma financial
statements, this amount is estimated at $2.3 million. The Company satisfied the
purchase price by increasing its bank borrowings.
The acquisition was accounted for as a purchase, with the assets acquired and
liabilities assumed recorded at fair values. The results of Weed Wizard's
operations will be included in the Company's consolidated financial statements
from the date of acquisition.
The accompanying condensed pro forma consolidated financial statements
illustrate the effect of the acquisition on the Company's financial position at
December 31, 1997 and the results of operations for the year ended June 30, 1997
and six months ended December 31, 1997, as if the acquisition had taken place on
December 31, 1997 with respect to the balance sheet and July 1, 1996 and 1997
with respect to the statements of operations.
The pro forma condensed consolidated results of operations may not be indicative
of the actual result which would have been contained if the acquisition had
occurred on July 1, 1996.
PF-1
<PAGE>
U.S. Home & Garden Inc. and Subsidiaries
Pro Forma Condensed Consolidated Balance Sheet
December 31, 1997
(Dollars in thousands)
================================================================================
<TABLE>
<CAPTION>
U.S. Home Weed
& Garden Wizard Adjustments Pro Forma
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Current
Cash $ 12,734 $ 97 $ -- $ 12,831
Accounts receivable, net 7,533 173 -- 7,706
Inventories 7,673 4,577 -- 12,250
Prepaid and other current assets 1,753 238 -- 1,991
- ----------------------------------------------------------------------------------------
Total Current Assets 29,693 5,085 -- 34,778
Furniture, Fixtures and Equipment, net 2,401 652 -- 3,053
Intangibles
Excess of cost over net assets, net 41,010 -- 11,229(A) 52,239
Other intangibles 2,464 -- 115(A) 2,579
Other Assets 2,068 3 -- 2,071
- ----------------------------------------------------------------------------------------
$ 77,636 $ 5,740 $ 11,344 $ 94,720
- ----------------------------------------------------------------------------------------
Liabilities and Equity
Current
Line of credit $ 2,246 $ 247 $ (247)(A) $ 2,246
Current maturities of notes payable 3,840 2,229 (2,229)(A) 3,840
Accounts payable 2,974 92 -- 3,066
Accrued expenses 4,880 255 -- 5,135
- ----------------------------------------------------------------------------------------
Total Current Liabilities 13,940 2,823 (2,476) 14,287
Notes Payables 16,430 1,503 15,234(A) 33,167
Other Liabilities 650 -- -- 650
Stockholders' Equity 46,616 1,414 (1,414)(A) 46,616
- ----------------------------------------------------------------------------------------
$ 77,636 $ 5,740 $ 11,344 $ 94,720
========================================================================================
</TABLE>
PF-2
<PAGE>
U.S. Home & Garden Inc. and Subsidiaries
Pro Forma Condensed Consolidated Statement of Operations
Six Months ended December 31, 1997
(Dollars in thousands)
================================================================================
<TABLE>
<CAPTION>
U.S. Home & Weed
Garden Wizard Adjustments Pro Forma
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Sales $ 15,538 $ 953 $ -- $ 16,491
Cost of Sales 7,379 726 -- 8,105
- ---------------------------------------------------------------------------------------------------------------
Gross Profit 8,159 227 -- 8,386
Operating Expenses
Selling and shipping 4,661 507 -- 5,168
General administrative 3,891 840 187(1) 4,918
- ---------------------------------------------------------------------------------------------------------------
Loss from Operations (393) (1,120) (187) (1,700)
Interest Expense, net (1,493) (160) (606)(2) (2,259)
- ---------------------------------------------------------------------------------------------------------------
Loss before Income Tax (1,886) (1,280) (793) (3,959)
Income Tax Benefit 800 -- 882(3) 1,682
- ---------------------------------------------------------------------------------------------------------------
Net Loss $ (1,086) $ (1,280) $ 89 $ (2,277)
- ---------------------------------------------------------------------------------------------------------------
Basic and Diluted Loss per Common Share
$ (0.07) $ (.15)
- ---------------------------------------------------------------------------------------------------------------
Weighted Average Common and Common Equivalent
Shares Outstanding
15,552,000 15,552,000
===============================================================================================================
</TABLE>
PF-3
<PAGE>
U.S. Home & Garden Inc. and Subsidiaries
Pro Forma Condensed Consolidated Statement of Operations
Year ended June 30, 1997
(Dollars in thousands)
================================================================================
<TABLE>
<CAPTION>
U.S. Home & Weed
Garden Wizard Adjustments Pro Forma
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Sales $ 52,046 $ 5,347 $ -- $ 57,393
Cost of Sales 23,649 2,956 -- 26,605
- -------------------------------------------------------------------------------------------------------
Gross Profit 28,397 2,391 -- 30,788
Operating Expenses
Selling and shipping 11,232 1,368 -- 12,600
General administrative 6,513 1,414 374(1) 8,301
- -------------------------------------------------------------------------------------------------------
Income (Loss) from Operations 10,652 (391) (374) 9,887
Interest Expense, net (3,262) (342) (1,164)(2) (4,768)
- -------------------------------------------------------------------------------------------------------
Income (Loss) before Income Tax 7,390 (733) (1,538) 5,119
Income Tax Benefit (Expense) (3,200) -- 1,000(3) (2,200)
- -------------------------------------------------------------------------------------------------------
Income (Loss) before Extraordinary Expense 4,190 (733) (538) 2,919
Extraordinary Expense, net of tax benefit (1,007) -- -- (1,007)
- -------------------------------------------------------------------------------------------------------
Net Income (Loss) $ 3,183 $ (733) $ (538) $ 1,912
- -------------------------------------------------------------------------------------------------------
Basic Earnings per Share
Income per common before extraordinary
expense $ .31 -- -- $ .22
Extraordinary expense (.08) -- -- (.08)
- -------------------------------------------------------------------------------------------------------
Net income per common share $ .23 -- -- $ .14
- -------------------------------------------------------------------------------------------------------
Diluted Earnings per Share
Income per common before extraordinary expense
$ .26 -- -- $ .18
Extraordinary expense (.06) -- -- (.06)
- -------------------------------------------------------------------------------------------------------
Net income per common share $ .20 -- -- $ .12
- -------------------------------------------------------------------------------------------------------
</TABLE>
PF-4
<PAGE>
U.S. Home & Garden Inc. and Subsidiaries
Pro Forma Condensed Consolidated Statement of Operations
Year ended June 30, 1997
(Dollars in thousands)
================================================================================
Basic Weighted Average Common Shares Outstanding 13,695,000
Options and Warrants 2,373,000
- ------------------------------------------------------------------
Diluted Weighted Average Common Shares Outstanding 16,068,000
==================================================================
PF-5
<PAGE>
U.S. Home & Garden Inc. and Subsidiaries
Notes to Pro Forma Condensed Consolidated Financial Statements
(Unaudited)
================================================================================
1. Note A-Basis of Reference is made to the introduction at page PF-1.
Presentation
2. Note B-Pro Forma The pro forma adjustments to the condensed
Adjustments consolidated balance sheet are as follows:
(A) To reflect the acquisition of Weed Wizard and the
allocation of purchase price on the basis of fair
values of the assets acquired and the liabilities
assumed. The components of purchase price and its
allocation of assets and liabilities of Weed
Wizard are as follows:
Components of Purchase Price (000's):
<TABLE>
---------------------------------------------------------------------
<S> <C>
Promissory notes associated with the acquisition $16,300
---------------------------------------------------------------------
Total purchase price 16,300
Allocation of purchase price:
Adjusted shareholders' equity of Weed Wizard (1,414)
Liabilities not assumed (3,730)
Other adjustments 73
---------------------------------------------------------------------
Cost in excess of net assets acquired $11,229
=====================================================================
</TABLE>
The pro forma adjustments to the condensed
consolidated statement of operations are as follows:
(1) Amortization of excess of cost over fair value of
net assets acquired over 30 years.
(2) Interest expense has been adjusted to reflect the
notes payable incurred in connection with the
acquisition and the payoff of Weed Wizard's notes
payable.
(3) Income taxes (benefits) have been adjusted to
reflect the Company's statutory tax rates.
PF-6
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amended report to be signed on its behalf by the
undersigned thereunto duly authorized.
U.S. HOME & GARDEN INC.
By: /s/ Richard J. Raleigh
-----------------------------------
Richard J. Raleigh, Chief
Operating Officer
Date: May 8, 1998
Exhibit 23
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
U.S. Home & Garden Inc.
San Francisco, California
As independent certified public accountants, we hereby consent to the
incorporation of our report included in this Form 8-K/A, into U.S. Home & Garden
Inc.'s previously filed Registration Statements Nos. 33-82758, 33-89800,
33-94924 and 333-21667 on Form S-3 and Nos. 33-55020, 33-71978 and 333-44459 on
Form S-8.
/s/ BDO Seidman, LLP
BDO SEIDMAN, LLP
San Francisco, California
May 11, 1998
