SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K/A
AMENDMENT NO. 2 TO
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 20, 1995
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Sirco International Corp.
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(Exact name of registrant as specified in its charter)
New York 0-4465 13-2511270
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(State or other jurisdiction (Commission IRS Employer
of incorporation) File Number) Identification No.)
24 Richmond Hill Avenue, Stamford, Connecticut 06901
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (203) 359-4100
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<PAGE>
1. Item 7, "Financial Statements, Pro Forma Financial Information and Exhibits"
is hereby amended to include the following:
(b) Pro Forma Financial Information
Sirco International Corp. and Subsidiaries Condensed Consolidated Pro
Forma Statement of Operations, Year Ended November 30, 1994 (Unaudited)
Sirco International Corp. and Subsidiaries Condensed Consolidated Pro
Forma Balance Sheet, November 30, 1994 (Unaudited)
<PAGE>
PRO FORMA FINANCIAL INFORMATION
The following unaudited pro forma consolidated financial information should be
read in conjunction with the financial statements of the Company, including the
notes thereto, appearing in the Company's report on Form 10-K.
The pro forma consolidated balance sheet gives effect to the sale of the assets
of the handbag division of the Company as if it had occurred on November 30,
1994.
The pro forma consolidated statements of operations give effect to the sale of
the assets of the handbag division of the Company as if it had occurred at the
beginning of the year ended November 30, 1994.
As more fully described elsewhere in this Form 8-K, all of the transactions
described herein are with the Company's former majority shareholders or the
former majority shareholders' affiliates.
The pro forma consolidated financial statements may not be indicative of the
consolidated results of operations or consolidated financial position that
actually would have been achieved or which may be obtained in the future.
<PAGE>
SIRCO INTERNATIONAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED PRO FORMA STATEMENT OF OPERATIONS
YEAR ENDED NOVEMBER 30, 1994
(UNAUDITED)
<TABLE>
<CAPTION>
Consolidated
Historical Proforma Proforma
Amounts Adjustments As Adjusted
---------- ----------- ------------
<S> <C> <C> <C>
Net sales ......................... $ 27,599,536 ($9,182,000) (1) $ 18,417,536
Cost of goods sold ................ 21,532,520 (7,304,000) (1) 14,228,520
------------ ------------
Gross profit ...................... 6,067,016 4,189,016
------------ ------------
Selling, warehouse, general
and administrative expenses ...... 8,898,288 (2,452,000) (1) 6,486,288
------------ 40,000 (2) ------------
(2,831,272) (2,297,272)
Interest expense .................. 789,109 (240,000) (1) 549,109
Interest income ................... (162,243) (162,243)
Miscellaneous income, net ......... (1,023,113) (1,023,113)
------------ ------------
Loss from continuing operations
before non-recurring charges or
credits directly attributable to
the transaction adjusted to give
effect to the disposition of the
handbag division ................. ($ 2,435,025) ($ 1,661,025)
============ ============
Loss per common share from
continuing operations before
non-recurring charges or
credits directly attributable
to the transaction adjusted
to give effect to the
disposition of the
handbag division ................. ($ 2.01) ($ 1.37)
============ ============
Weighted average number of
shares of common shares
outstanding ...................... 1,209,700 1,209,700
============ ============
</TABLE>
(Continued)
<PAGE>
SIRCO INTERNATIONAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED PRO FORMA STATEMENT OF OPERATIONS (CONTINUED)
YEAR ENDED NOVEMBER 30, 1994
(UNAUDITED)
Pro Forma Adjustments:
(1) Reflects the sales, cost of sales, operating expenses and interest expense
of the handbag division.
(2) Reflects the amortization of the restrictive covenant agreement.
Material non-recurring charges and credits which result directly from the
transaction and which will impact the income statement during the next twelve
months were not considered and have not been reflected in the pro forma
condensed consolidated statement of operations. Such charges and credits are:
(a) Severance agreement with the selling shareholders in the amount of
$200,000.
(b) Loss on the sale of inventory of the handbag division of $189,000.
(c) Gain on the sale of certain property and equipment and other assets of
$86,000.
(d) Estimated charges resulting from the closing costs of the disposition
transaction of $100,000.
<PAGE>
SIRCO INTERNATIONAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED PRO FORMA BALANCE SHEET
NOVEMBER 30, 1994
(UNAUDITED)
<TABLE>
<CAPTION>
Consolidated
Historical Proforma Proforma
Amounts Adjustments As Adjusted
---------- ----------- ------------
<S> <C> <C> <C>
Current assets:
Cash ....................... $ 955,869 $ 86,000 (1) $ 1,041,869
Accounts receivable, net ... 1,826,400 1,826,400
Inventories ................ 5,213,120 ( 1,889,000) (2) 3,324,120
Prepaid expenses ........... 326,909 326,909
Other current assets ....... 344,020 344,020
------------- -------------
Total current assets ..... 8,666,318 6,863,318
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Property, plant and
equipment, net .............. 1,861,556 ( 36,000) (1) 1,825,556
Less accumulated depreciation (1,088,524) 36,000 (1) (1,052,524)
------------- -------------
773,032 773,032
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Other assets ................. 211,592 211,592
Restrictive covenant ......... 240,000 (3) 240,000
Investments in and advances to
subsidiary .................. 600,793 600,793
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Total assets ............. $ 10,251,735 $ 8,688,735
============= =============
</TABLE>
(Continued)
<PAGE>
SIRCO INTERNATIONAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED PRO FORMA BALANCE SHEET (CONTINUED)
NOVEMBER 30, 1994
(UNAUDITED)
<TABLE>
<CAPTION>
Consolidated
Historical Proforma Proforma
Amounts Adjustments As Adjusted
---------- ----------- -----------
<S> <C> <C> <C>
Current liabilities:
Loans payable to financial
institutions ................ $ 2,067,764 $ 2,067,764
Short-term loan payable to
related party ............... 1,743,235 ($1,700,000)(4) 43,235
Current maturities of
long-term debt .............. 448,401 448,401
Accounts payable ............. 1,981,945 1,981,945
Accrued expenses ............. 1,062,692 200,000 (5) 1,602,692
----------- -----------
240,000 (3)
100,000 (6)
Total current liabilities .. 7,304,037 6,144,037
----------- -----------
Long-term debt, less current
maturities .................... 49,651 49,651
----------- -----------
Stockholders' equity:
Common stock ................. 121,520 121,520
Capital in excess of par value 4,027,534 4,027,534
Accumulated deficit .......... (645,104) (403,000)(1)(2) (1,048,104)
(5)(6)
Treasury stock ............... (27,500) (27,500)
Accumulated foreign currency
translation adjustment ...... (578,403) (578,403)
----------- -----------
Total stockholders' equity 2,898,047 2,495,047
----------- -----------
Total liabilities and
stockholders' equity ... $10,251,735 $ 8,688,735
=========== ===========
</TABLE>
<PAGE>
Pro Forma Adjustments:
(1) Reflects the proceeds from the sale of certain property and equipment and
other assets.
(2) Reflects the disposition of the handbag division inventory.
(3) Reflects entering into a restrictive covenant payment agreement.
(4) Reflects the repayment of debt.
(5) Reflects an accrual for severance.
(6) Reflects an accrual for the estimated closing costs of disposition
transaction.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: May 24, 1995 SIRCO INTERNATIONAL CORP.
By: /s/ Joel Dupre
---------------------------
Name: Joel Dupre
Title: President
