SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For fiscal year ended December 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 000-24312
A. Full title of the plan and the address of the
plan, if different from that of the issuer
named below:
AGRI-NUTRITION GROUP LIMITED RETIREMENT SAVINGS PLAN
B. Name of issuer of the securities held pursuant
to the plan and the address of its principal
executive office
VIRBAC CORPORATION
(f/k/a AGRI-NUTRITION GROUP LIMITED)
3200 Meacham Boulevard
Fort Worth, TX 76137
Telephone 817-831-5030
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Plan Administrator has duly caused this annual report to be signed on its
behalf by the undersigned hereunto duly authorized.
AGRI-NUTRITION GROUP LIMITED
RETIREMENT SAVINGS PLAN
Date: December 21, 1999 By: /s/ LESLIE SISK
-----------------------------------------
Leslie Sisk, Acting Plan Administrator
<PAGE>
Independent Auditors' Report
Plan Administrator
Agri-Nutrition Group Limited Retirement Savings Plan
St. Louis, Missouri
We were engaged to audit the financial statements and supplemental schedules of
the Agri-Nutrition Group Limited Retirement Savings Plan as of December 31, 1998
and 1997, and for the years then ended. These financial statements and
supplemental information are the responsibility of the Plan's management.
As permitted by 29 CFR 2520.103-8 of the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974, the Plan Administrator instructed us not to perform, and
we did not perform, any auditing procedures with respect to the information
summarized in Note C, which was certified by Principal Life Insurance Company,
the trustee of the Plan, except for comparing such information with the related
information included in the financial statements and supplemental schedules. We
have been informed by the Plan Administrator that the trustee holds the Plan's
investment assets and executes investment transactions. The Plan Administrator
has obtained a certification from the trustee as of and for the years ended
December 31, 1998 and 1997, that the information provided to the Plan
Administrator by the trustee is complete and accurate.
Because of the significance of the information that we did not audit, we are
unable to, and do not, express an opinion on the accompanying financial
statements and supplemental schedules taken as a whole. The form and content of
the information included in the financial statements and schedules, other than
that derived from the information certified by the trustee, have been audited by
us in accordance with generally accepted auditing standards and, in our opinion,
are presented in compliance with the Department of Labor's Rules and Regulations
for Reporting and Disclosure under the Employee Retirement Income Security Act
of 1974.
SCHMERSAHL TRELAOR & CO., PC
October 14, 1999
<PAGE>
Agri-Nutrition Group Limited Retirement Savings Plan
STATEMENTS OF NET ASSETS AVAILABLE
FOR PLAN BENEFITS
<TABLE>
<CAPTION>
Years Ended December 31,
1998 1997
<S> <C> <C>
ASSETS
Investments, at fair value $ 4,138,022 $ 3,444,940
Loans to participants 1,444 113
Employer's contribution receivable 10,466 1,633
Employee's contribution receivable 15,373 3,265
--------------- ---------------
Total Assets $ 4,165,305 $ 3,449,951
--------------- ---------------
Net Assets Available for Plan Benefits $ 4,165,305 $ 3,449,951
=============== ===============
</TABLE>
See accompanying notes to financial statements
F-2
<PAGE>
Agri-Nutrition Group Limited Retirement Savings Plan
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE
FOR PLAN BENEFITS WITH FUND INFORMATION
December 31, 1998
<TABLE>
<CAPTION>
Participant Directed
Agri-
Guaranteed Money Bond Stock Stock T. Rowe Nutrition
Interest Market Emphasis Emphasis Index 500 Price Insurance Stock
Fund Fund Fund Fund Fund Fund Policies Fund Other Total
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ADDITIONS
Additions to net assets attributed
to:
Investment Income
Capital gains $ -- $ -- $ -- $ -- $ -- $ 13,275 $ -- $ 10 $ -- $ 13,285
Interest and
dividends 7,302 -- -- -- -- -- 41,104 -- 333 48,739
Net investment
income in
pooled
separate
accounts -- 20,660 58,737 74,385 294,419 8,086 -- -- 1,331 457,618
Net
(depreciation)
in corporate
debt -- -- -- -- -- -- -- (30,061) -- (30,061)
7,302 20,660 58,737 74,385 294,419 21,361 41,104 (30,051) 1,664 489,581
---------- --------- --------- --------- ---------- --------- --------- --------- -------- ----------
Contributions
Employer 4,431 9,802 18,387 28,009 42,015 11,164 -- 2,523 -- 116,331
Employees 10,387 18,268 39,203 58,631 99,314 28,677 -- 6,267 -- 260,747
Rollover -- -- -- -- -- -- -- -- -- --
---------- --------- --------- --------- ---------- --------- --------- --------- -------- ----------
Total
Additions 22,120 48,730 116,327 161,025 435,748 61,202 41,104 (21,261) 1,664 866,659
---------- --------- --------- --------- ---------- --------- --------- --------- -------- ----------
DEDUCTIONS
Deductions
from net assets
attributed to:
Participant
withdrawals 58,937 161,487 98,211 100,323 188,265 132 1,735 572 -- 609,662
Administrative
fees 514 1,792 2,821 2,965 5,239 853 869 -- -- 15,053
---------- --------- --------- --------- ---------- --------- --------- --------- -------- ----------
Total
Deductions 59,451 163,279 101,032 103,288 193,504 985 2,604 572 -- 624,715
---------- --------- --------- --------- ---------- --------- --------- --------- -------- ----------
NET INCREASE
PRIOR TO
INTERFUND
TRANSFERS (37,331) (114,549) 15,295 57,737 242,244 60,217 38,500 (21,833) 1,664 241,944
INTERFUND
TRANSFERS/
MERGERS 13,538 378,588 45,661 (45,194) 54,057 14,077 -- (7,925) 20,608 473,410
---------- --------- --------- --------- ---------- --------- --------- --------- -------- ----------
NET
INCREASE
(DECREASE) (23,793) 264,039 60,956 12,543 296,301 74,294 38,500 (29,758) 22,272 715,354
Net assets
available
for benefits:
Beginning
of year 152,832 334,971 567,431 641,259 966,588 182,561 420,728 178,570 5,011 3,449,951
---------- --------- --------- --------- ---------- --------- --------- --------- -------- ----------
End of
year $ 129,039 $ 599,010 $ 628,387 $ 653,802 $1,262,889 $ 256,855 $ 459,228 $ 148,812 $ 27,283 $4,165,305
========== ========= ========= ========= ========== ========= ========= ========= ======== ==========
</TABLE>
F-3
<PAGE>
Agri-Nutrition Group Limited Retirement Savings Plan
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE
FOR PLAN BENEFITS WITH FUND INFORMATION
December 31, 1997
<TABLE>
<CAPTION>
Participant Directed
Agri-
Guaranteed Money Bond Stock Stock T. Rowe Nutrition
Interest Market Emphasis Emphasis Index 500 Price Insurance Stock
Fund Fund Fund Fund Fund Fund Policies Fund
ADDITIONS
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed
to:
Investment Income
Capital gains $ 158 $ 223 $ 143 $ 72 $ 321 $ 4,391 $ -- $ (39)
Interest and
dividends 8,082 -- -- -- -- -- 35,009 --
Net investment
income in
pooled separate
accounts -- 17,850 59,069 84,461 188,919 5,033 -- --
Net (depreciation)
in corporate
debt -- -- -- -- -- -- -- (36,796)
----------- ---------- ----------- ----------- ----------- ----------- ----------- -----------
8,240 18,073 59,212 84,533 189,240 9,424 35,009 (36,835)
Contributions
Employer 5,927 15,422 23,166 29,180 45,530 13,128 28,185 3,311
Employees 13,931 30,213 50,025 63,374 102,212 31,896 -- 7,255
Rollover -- -- 341 852 170 170 -- 170
----------- ---------- ----------- ----------- ----------- ----------- ----------- -----------
Total additions 28,098 63,708 132,744 177,939 337,152 54,618 63,194 (26,099)
----------- ---------- ----------- ----------- ----------- ----------- ----------- -----------
DEDUCTIONS
Deductions from
net assets
attributed to:
Participant
withdrawals 258 27,670 1,594 6,768 91,041 23,738 22,821 9,954
Administrative
fees 187 671 834 918 1,151 139 2,003 342
----------- ---------- ----------- ----------- ----------- ----------- ----------- -----------
Total deductions 445 28,341 2,428 7,686 92,192 23,877 24,824 10,296
----------- ---------- ----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE PRIOR
TO INTERFUND
TRANSFERS 27,653 35,367 130,316 170,253 244,960 30,741 38,370 (36,395)
INTERFUND TRANSFERS/
MERGERS 119,431 122,088 212,903 295,537 589,974 140,710 382,358 46,688
----------- ---------- ----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE
(DECREASE) 147,084 157,455 343,219 465,790 834,934 171,451 420,728 10,293
Net assets available
for benefits:
Begininng of year 5,748 177,516 224,212 175,469 131,654 11,110 -- 168,277
----------- ---------- ----------- ----------- ----------- ----------- ----------- -----------
End of year $ 152,832 $ 334,971 $ 567,431 $ 641,259 $ 966,588 $ 182,561 $ 420,728 $ 178,570
=========== ========== =========== =========== =========== =========== =========== ===========
</TABLE>
F-4
<PAGE>
Agri-Nutrition Group Limited Retirement Savings Plan
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE
FOR PLAN BENEFITS WITH FUND INFORMATION (continued)
December 31, 1997
<TABLE>
<CAPTION>
Participant Directed
Growth Balanced
Fund Fund GIC Other Total
ADDITIONS
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment Income $ -- $ -- $ -- $ $ 5,269
Capital gains -- -- 158 106 43,355
Interest and dividends 24,428 11,755 839 (46,075) 346,279
Net investment income in
pooled separate accounts -- -- -- -- (36,796)
Net (depreciation) in
corporate debt 24,428 11,755 997 (45,969) 358,107
------------- ------------- ------------- ------------- -----------
Contributions
Employer -- -- -- -- 163,849
Employees -- -- -- -- 298,906
Rollover -- -- -- -- 1,703
------------- ------------- ------------- ------------- -----------
Total additions 24,428 11,755 997 (45,969) 822,565
------------- ------------- ------------- ------------- -----------
DEDUCTIONS
Deductions from net assets attributed to:
Participant withdrawals -- -- -- 1,982 185,826
Administrative fees -- -- -- -- 6,245
------------- ------------- ------------- ------------- -----------
Total deductions -- -- -- 1,982 192,071
------------- ------------- ------------- ------------- -----------
NET INCREASE PRIOR
TO INTERFUND
TRANSFERS 24,428 11,755 997 (47,951) 630,494
INTERFUND TRANSFERS/
MERGERS (828,192) (484,906) (211,744) (16,584) 368,263
------------- ------------- ------------- ------------- -----------
NET INCREASE
(DECREASE) (803,764) (473,151) (210,747) (64,535) 998,757
Net assets available for benefits:
Begininng of year 803,764 473,151 210,747 69,546 2,451,194
------------- ------------- ------------- ------------- -----------
End of year $ -- $ -- $ -- $ 5,011 $ 3,449,951
============= ============= ============= ============= ===========
</TABLE>
F-5
<PAGE>
Agri-Nutrition Group Limited Retirement Savings Plan
NOTES TO FINANCIAL STATEMENTS
December 31, 1998 and 1997
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The accounting records of the Agri-Nutrition Group Limited Retirement
Savings Plan (the "Plan") are maintained on the accrual basis.
Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires the Plan Administrator to make
estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results may differ from those
estimates.
Investments
The investments of the Plan are maintained in pooled separate accounts
held by The Principal Life Insurance Company. A pooled separate account
contains assets of two or more unrelated plans which are invested
together with each plan having units of participation. In accordance
with Department of Labor regulations, the Plan has attached the most
recent statement of assets and liabilities of the pooled separate
accounts to the Federal Form 5500 required to be filed by the Plan.
All investments are stated at fair value based upon quoted market
prices at December 31, 1998 and 1997.
Concentration of Credit Risk
Financial instruments which potentially subject the Plan to a
concentration of credit risk consist primarily of investments. The Plan
maintains its investments with high credit financial institutions in
various collective investment funds.
B. DESCRIPTION OF PLAN
The Plan, established on September 9, 1993 and restated on October 1,
1997, is a defined contribution plan covering all employees of
Agri-Nutrition Group Limited and participating companies (PM Resources,
Zema Corporation and St. Jon Laboratories) (the "Company"), who meet
the eligibility provisions of the Plan. The Plan meets the eligibility
requirements of a 401(k) plan under the Internal Revenue Code. The
Company has been designated as Plan Administrator.
F-6
<PAGE>
Agri-Nutrition Group Limited Retirement Savings Plan
NOTES TO FINANCIAL STATEMENTS
December 31, 1998 and 1997
(Continued)
B. DESCRIPTION OF THE PLAN (Continued)
The Plan covers all employees of the Company who were employees on the
effective date of the Plan, September 9, 1993. All employees who have
attained the age of 18 and have completed six consecutive months of
service are eligible to participate in the Plan. Participant
contributions are fully vested at all times. The Plan provides for
vesting of the Company's matching and discretionary contributions
according to the following schedule: after one year of service, 33%;
after two years of service, 67%; and after three years of service,
100%.
Each participant may elect to contribute up to 15 percent of their
eligible compensation, as defined in the Plan, in increments of one
percent, with the right to increase or decrease their rate of basic
contribution or investment percentage of each fund on the first day of
each month.
The Company contributes to the Plan an amount equal to one-half of
participant contributions, not to exceed four percent of the
participant's eligible compensation. In addition, the Plan accepts
qualified rollover contributions from participants. Rollover
contributions comprised $0 of 1998 and $1,703 of 1997 participants'
contributions.
In addition to the Company's matching contribution, the Company may
make a discretionary contribution to the Plan out of its accumulated
earnings or current profits as decided by the Board of Directors. The
Company's discretionary contribution is allocated to the participants
based on their eligible compensation as a percentage of total
compensation. No discretionary contributions were made in 1998 or 1997.
Each participant may designate, in one percent increments, the
percentage of participant and Company matching contributions allocable
to their account which is to be invested in the Guaranteed Interest
Fund, Money Market Fund, Bond Emphasis Balanced Fund, Stock Emphasis
Balanced Fund, Stock Index 500 Fund, T. Rowe Price New Horizons Fund,
and Agri-Nutrition Stock.
If a participant terminates employment prior to becoming fully vested,
the forfeited portions of the Company's discretionary contributions are
allocated to the remaining participants on the basis of their
compensation.
Retiring participants, participants leaving the employment of the
Company due to disabling illness or injury, and participants whose
employment is terminated prior to retirement, disability or death will
receive the vested balance in their individual account in a lump sum
payment or in approximate equal annual or monthly installments over a
period of time based upon the written election of the participant for
participant's accounts greater than $3,500. Payment of benefits for
participant's accounts of $3,500 or less are disbursed in a lump sum.
Upon death, a participant's account will be distributed to the
designated beneficiary at his election in the manner described above.
F-7
<PAGE>
Agri-Nutrition Group Limited Retirement Savings Plan
NOTES TO FINANCIAL STATEMENTS
December 31, 1998 and 1997
(Continued)
B. DESCRIPTION OF THE PLAN (Continued)
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and
to terminate the Plan subject to the provisions of ERISA. In the event
of plan termination, the rights of participants to benefits accrued to
the date of termination will be nonforfeitable.
Any active employee may apply for a loan from the Plan. The minimum
loan amount is $1,000 and the maximum total dollar amount may not
exceed $50,000. The loans may not exceed the lesser of 50% of the
participant's nonforfeitable accrued benefit or 100% of vested
participant contributions and income. The security for each loan shall
be an irrevocable Pledge and Assignment of the nonforfeitable
participant's accrued benefit with a repayment term of 60 months or
less. Only one loan per participant may be outstanding in any
twelve-month period.
C. INVESTMENTS
The Plan investments are held by a mutual life insurance company in
pooled separate accounts. Financial information relating to those
investments is included in the accompanying financial statements based
on information provided by The Principal Life Insurance Company. That
information, which has not been examined by independent auditors, is
summarized as follows:
<TABLE>
<CAPTION>
Fair Value Fair Value
at Beginning Purchases/ Investment At End
Of Year Transfers Sales Results Of Year
<S> <C> <C> <C> <C> <C>
1998
Guaranteed Interest Fund $ 152,832 $ 28,983 $ (60,078) $ 7,302 $ 129,039
Money Market Fund 334,971 937,735 (694,356) 20,660 599,010*
Bond Emphasis Fund 567,431 206,591 (204,372) 58,737 628,387*
Stock Emphasis Balanced Fund 641,259 111,138 (172,980) 74,385 653,802*
Stock Index 500 Fund 966,588 340,433 (338,551) 294,419 1,262,889*
T. Rowe Price Fund 182,561 95,153 (28,945) 8,086 256,855*
Insurance Policies 420,728 -- (2,603) 41,103 459,228*
Agri-Nutrition Stock 178,570 32,520 (32,185) (30,093) 148,812
--------------- ------------- ------------- ----------- -------------
$ 3,444,940 $ 1,752,553 $ (1,534,070) $ 474,599 $ 4,138,022
=============== ============= ============= =========== =============
</TABLE>
F-8
<PAGE>
Agri-Nutrition Group Limited Retirement Savings Plan
NOTES TO FINANCIAL STATEMENTS
December 31, 1998 and 1997
(Continued)
<TABLE>
<CAPTION>
Fair Value Fair Value
at Beginning Purchases/ Investment At End
Of Year Transfers Sales Results Of Year
<S> <C> <C> <C> <C> <C>
1997
Guaranteed Interest Fund $ 5,748 $ 145,095 $ (6,093) $ 8,082 $ 152,832
Money Market Fund 177,516 310,527 (170,922) 17,850 334,971*
Bond Emphasis Fund 224,212 365,620 (81,470) 59,069 567,431*
Stock Emphasis Balanced Fund 175,469 403,051 (21,722) 84,461 641,259*
Stock Index 500 Fund 131,654 777,289 (131,274) 188,919 966,588*
T. Rowe Price Fund 11,110 197,518 (31,100) 5,033 182,561*
Insurance Policies -- 410,543 (24,824) 35,009 420,728*
Agri-Nutrition Stock 168,277 66,973 (19,884) (36,796) 178,570*
Growth Fund 803,764 -- (828,192) 24,428 --
Bond Fund 473,151 -- (484,906) 11,755 --
GIC 210,747 -- (211,744) 997 --
--------------- ------------- ------------- ----------- -------------
$ 2,381,648 $ 2,676,616 $ (2,012,131) $ 398,807 $ 3,444,940
=============== ============= ============= =========== =============
</TABLE>
* The fair value of the individual investment exceeded five percent of
the Plan's net assets at the end of the respective year.
D. TAX STATUS OF PLAN
The Internal Revenue Service has ruled that the Plan qualifies under
Section 401(k) of the Internal Revenue Code and is, therefore, not
subject to tax under present income tax laws. The Plan obtained its
latest determination letter on May 12, 1998, in which the Internal
Revenue Service stated that the Plan, as then designed, was in
compliance with the applicable requirements of the Internal Revenue
Code.
E. PLAN MERGER
Subsequent to Plan year end, Agri-Nutrition Group Limited merged with a
U.S. subsidiary of a French manufacturer (the "Acquiring Company") to
form a new company. Management of the Acquiring Company has expressed
their intention to merge the existing pension plan of the Acquiring
Company with the Plan in the future.
F-9
