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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
AMENDMENT TO
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
Date of Report (Date of earliest event reported): January 13, 1999
THERMATRIX INC.
(Exact name of Registrant as specified in its charter)
Commission File Number 0-20819
Delaware 94-2958515
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification Number)
2025 Gateway Place, Suite 132 95110-1005
San Jose, California (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: (408) 453-0490
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The undersigned registrant hereby amends the following items, financial
statements, exhibits or other portions of its Current Report on Form 8-K filed
January 28, 1999 set forth in the pages attached hereto.
ITEM 7 FINANCIAL STATEMENTS AND EXHIBITS.
The following financial statements and exhibits are filed as part of this
Report, where indicated.
(a) Financial statements of business acquired, prepared pursuant to Rule
3-05 of Regulation S-X:
Financial statements were previously reported in Wahlco's Annual Report on
Form 10-K for the year ended December 31, 1997 and Quarterly Reports on Form
10-Q for the fiscal quarters ended March 31, 1998, June 30, 1998, and
September 30, 1998, respectively, are incorporated by reference herein.
(b) Pro forma financial information required pursuant to Article 11 of
Regulation S-X follow:
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THERMATRIX INC. AND WAHLCO ENVIRONMENTAL SYSTEM, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
AS OF SEPTEMBER 30, 1998
(IN THOUSANDS, EXCEPT PER SHARE DATE)
<TABLE>
<CAPTION>
PRO FORMA PRO FORMA
THERMATRIX WAHLCO ADJUSTMENTS COMBINED
----------- --------- ------------- ---------
<S> <C> <C> <C> <C>
Current Assets:
Cash and cash equivalents $ 4,305 $ 1,145 $ (2,232) (a) $ 3,218
Accounts receivable, net $ 5,570 $ 10,343 (681) (b) $ 15,232
Cost of uncompleted contracts $ 273 $ 1,373 $ 1,646
Inventories $ 3,294 $ 3,294
Prepaid expenses and other current assets $ 296 $ 1,488 $ 1,784
--------- --------- --------- --------
Total current assets $ 10,444 $ 17,643 $ (2,913) $ 25,174
--------- --------- --------- --------
Property and equipment, net $ 680 $ 4,190 $ 4,870
Goodwill $ 4,430 (c) $ 4,430
Patents and other intangible assets $ 1,354 $ 1,354
Other assets $ 863 $ 863
--------- --------- --------- --------
Total other assets $ 2,034 $ 5,053 $ 4,430 $ 11,517
--------- --------- --------- --------
Total Assets $ 12,478 $ 22,696 $ 1,517 $ 36,691
========= ========= ========= ========
Current liabilities:
Notes payable $ 3,662 $ 3,662
Accounts payable and accrued liabilities $ 3,556 $ 5,123 $ 8,679
Accrued payroll and payroll-related
expenses $ 848 $ 1,258 $ 2,106
Billings on uncompleted contracts $ 46 $ 763 $ 809
Income taxes payable $ 198 $ 198
Current portion of long-term debt $ 301 $ 301
Other accrued liabilities $ 4,773 $ 4,040 (d) $ 8,813
--------- --------- --------- --------
Total current liabilities $ 4,450 $ 16,078 $ 4,040 $ 24,568
--------- --------- --------- --------
Long-term debt $ 1,825 $ 1,825
Other liabilities $ 2,270 $ 2,270
========= --------- ========= --------
Total long-term liabilities 0 $ 4,095 0 $ 4,095
========= --------- ========= --------
Stockholders' equity
Common stock and additional paid-in
capital $ 48,764 $ 105,077 $(105,077)(e) $ 48,764
Retained earnings (accumulated deficit) $ (40,736) $(100,454) $ 100,454 (e) $(40,736)
Foreign currency translation adjustment $ (2,100) $ 2,100 (e) $ 0
--------- --------- --------- --------
Total stockholders' equity $ 8,028 $ 2,523 $ (2,523) $ 8,028
--------- --------- --------- --------
Total Liabilities and stockholders' equity $ 12,478 $ 22,696 $ 1,517 $ 36,691
========= ========= ========= ========
</TABLE>
See accompanying notes to unaudited pro forma condensed combined financials
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THERMATRIX INC. AND WAHLCO ENVIRONMENTAL SYSTEM, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
NINE MONTHS ENDED SEPTEMBER 30, 1998
(IN THOUSANDS, EXCEPT PER SHARE DATE)
<TABLE>
<CAPTION>
PRO FORMA PRO FORMA
THERMATRIX WAHLCO ADJUSTMENTS COMBINED
----------- --------- ------------- ---------
<S> <C> <C> <C> <C>
Revenues $ 9,642 $ 28,891 $ 38,533
Cost of revenues $ 8,850 $ 22,046 $ 30,896
-------- -------- --------
Gross margin $ 792 $ 6,845 $ 7,637
Expenses
Research and Development $ 1,053 $ 0 $ 1,053
Sales, general and administrative $ 4,113 $ 9,222 $ 13,335
Amortization of Goodwill $ 0 $ 0 $ 166 (c) $ 166
-------- -------- --------- --------
Loss from operations $ (4,374) $ (2,377) $ (166) $ (6,917)
Other income, net $ 341 $ (974) $ (72)(f) $ (705)
-------- -------- --------- --------
Income (loss) before Income Taxes $( 4,033) $ (3,351) $ (238) $ (7,662)
Provision (credit) for Income Taxes $ (50) $ (50)
-------- -------- --------- --------
Net loss $ (4,083) $ (3,351) $ (238) $ (7,672)
======== ======== ========= ========
Basic and diluted net loss per share $ (0.53) $ (1.00)
Basic and diluted weighted average common shares
And equivalents 7,668 7,668
</TABLE>
See accompanying notes to unaudited pro forma condensed combined financials
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THERMATRIX INC. AND WAHLCO ENVIRONMENTAL SYSTEM, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
FOR THE YEAR ENDED DECEMBER 31, 1997
(IN THOUSANDS, EXCEPT PER SHARE DATE)
<TABLE>
<CAPTION>
PRO FORMA PRO FORMA
THERMATRIX WAHLCO ADJUSTMENTS COMBINED
----------- --------- ------------- ---------
<S> <C> <C> <C> <C>
Revenues $ 7,011 $ 49,729 $ 56,740
Cost of revenues $ 8,351 $ 40,540 $ 48,891
--------- -------- --------
Gross margin $ (1,340) $ 9,189 $ 7,849
Expenses
Research and Development $ 1,203 $ 0 $ 1,203
Sales, general and administrative $ 7,705 $ 12,872 $ 20,577
Amortization of Goodwill $ 0 $ 0 $ 222 (c) $ 222
--------- -------- ------- --------
Loss from operations $ (10,248) $ (3,683) $ (222) $(14,153)
Other income, net $ 674 $ (1,736) $ (46)(f) $ (1,108)
--------- -------- ------- --------
Income (loss) before Income Taxes $ (9,574) $ (5,419) $ (268) $(15,261)
Provision (credit) for Income Taxes $ (66) $ (66)
--------- -------- ------- --------
Net loss $ (9,640) $ (5,419) $ (268) $(15,327)
========= ======== ======= ========
Basic and diluted net loss per share $ (1.28) $ (2.03)
Basic and diluted weighted average common shares
And equivalents 7,548 7,548
</TABLE>
See accompanying notes to unaudited pro forma condensed combined financials
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ACCOMPANYING NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIALS
- -----------------------------------------------------------------------
Certain pro forma adjustments have been made to the accompanying pro forma
condensed combined consolidated balance sheet and statements of operations as
described below.
(a) Reflects the purchase price that was paid with cash of
approximately $1.9 million and other acquisition related
expenditures
(b) Reflects increased allowances for doubtful accounts for acquired
receivables.
(c) Reflects the recording of goodwill from the acquisition of Wahlco,
amortized over a period of twenty years.
(d) Reflects estimated exit and involuntary employee termination costs
associated with the Merger.
(e) Reflects the elimination of Wahlco's stockholders' equity
accounts.
(f) Reflects the incremental interest relating to Wexford's payoff of
Wahlco's borrowings from Chase Manhattan Bank ("Chase") under a
credit facility in connection with the Merger. The debt assumed due
to Wexford bears annual interest at 13% compared to the Chase rate
of 9.5%. Average borrowings for the year ended December 31, 1997
and nine months ended September 30, 1998 amounted to $1,325,000 and
$2,750,000, respectively.
Item 7 (c) Exhibits in accordance with Item 601 of Regulation S-K:
EXHIBIT INDEX
Exhibit
- -------
Number Description
- ------ -----------
2.1 Agreement and Plan of Merger dated November 9, 1998 by and among
Thermatrix Inc., TMX Acquisition Sub I, Inc. and Wahlco Environmental
Systems, Inc. (Incorporated by reference herein to Registrant's
Current Report on Form 8-K filed on January 28, 1999, File No. 000-
20819.)
2.2 Security Agreement dated January 13, 1999 by and among Thermatrix,
Inc., Wexford Capital Partners II, L.P., Wexford Overseas Partners I,
L.P., Wexford Special Situations 1996, L.P., Wexford Special
Situations 1996 Institutional, L.P., Wexford Special Situations 1996
Limited, Wexford-Euris Special Situations 1996, L.P. and Wexford
Management LLC. (Incorporated herein by reference to Registrant's
Current Report on Form 8-K filed on January 28, 1999, File No.000-
20819.)
2.3 Guaranty dated January 13, 1999 by and among Thermatrix Inc., Wexford
Capital Partners II, L.P., Wexford Overseas Partners I, L.P., Wexford
Special Situations 1996, L.P., Wexford Special Situations 1996
Institutional, L.P., Wexford Special Situations 1996 Limited, Wexford-
Euris Special Situations 1996, L.P. and Wexford Management LLC.
(Incorporated herein by reference to Registrant's Current Report on
Form 8-K filed on January 28, 1999, File No.000-20819.)
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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.
THERMATRIX INC.
Date: March 29, 1999 By: /s/ Daniel S. Tedone
--------------------------------------
Daniel S. Tedone
Chief Financial Officer
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