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Previous: MUNICIPAL INVEST TR FD MONTHLY PMT SER 604 DEF ASSET FDS, 497, 2000-05-22 |
Next: LMKI INC, SC 13G/A, 2000-05-22 |
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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):
MAY 5, 2000
TRANSPRO, INC.
(Exact name of Registrant as specified in its charter)
<TABLE>
<S> <C> <C>
DELAWARE 1-13894 34-1807383
(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation or organization) Identification No.)
</TABLE>
100 Gando Drive, New Haven, Connecticut 06513
(Address of principal executive offices, including zip code)
(203) 401-6450
(Registrant's telephone number, including area code)
Page 1 of 11
<PAGE> 2
Item 2. Acquisition or Disposition of Assets
Effective May 5, 2000, TransPro, Inc. (the "Company") sold substantially all of
the assets and liabilities of its Crown Specialty Metal Fabrication Division
("Crown") to Leggett & Platt, Incorporated in a transaction valued at $37.5
million, comprised of $28.65 million in cash and the assumption of $8.0 million
of Industrial Revenue Bonds due 2010 and an unfunded pension liability of $0.85
million. The Company will record a pre-tax gain of approximately $9.1 million in
the second quarter of 2000. Crown designs and manufactures precision specialty
fabricated metal enclosures and components for a variety of telecommunications
and industrial applications and designs, manufactures and installs specialized
interiors and components for a variety of vans, utility trucks and other
specialized vehicles. Net proceeds from the sale will be used to reduce
outstanding borrowings under the Company's Revolving Credit Agreement.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(b) Pro Forma Financial Information
The following unaudited Pro Forma Condensed Consolidated Financial Statements
are filed with this report:
<TABLE>
<S> <C>
Pro Forma Condensed Consolidated Statements of Income
For the Year Ended December 31, 1999 Page 3
For the Year Ended December 31, 1998 Page 4
For the Year Ended December 31, 1997 Page 5
For the Three Months Ended March 31, 2000 Page 6
For the Three Months Ended March 31, 1999 Page 7
Pro Forma Condensed Consolidated Balance Sheet as of March 31, 2000 Page 8
</TABLE>
The Pro Forma Condensed Consolidated Statements of Income for the years ended
December 31, 1999, 1998 and 1997 and for the three months ended March 31, 2000
and 1999 assume that the disposition took place on January 1 of the applicable
year and are based on the operations of the Company for the years ended December
31, 1999, 1998 and 1997 and the three months ended March 31, 2000 and 1999,
respectively. The Pro Forma Condensed Consolidated Balance Sheet as of March 31,
2000 reflects the financial position of the Company after giving effect to the
disposition of the assets and the assignment of the liabilities discussed in
Item 2 and assumes the disposition took place on March 31, 2000.
The Unaudited Pro Forma Condensed Consolidated Financial Statements presented
herein are shown for illustrative purposes only and are not necessarily
indicative of the financial position or results of operations of the Company
that would have actually occurred had the disposition been in effect as of the
date or for the periods presented. The Unaudited Pro Forma Condensed
Consolidated Financial Statements should be read in conjunction with the
Company's historical financial statements filed with the Securities and Exchange
Commission. The Company's financial statements will reflect the disposition only
from May 5, 2000, the effective date of the disposition.
2
<PAGE> 3
TRANSPRO, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1999
(Unaudited)
(Amounts in thousands, except per share amounts)
<TABLE>
<CAPTION>
PRO FORMA PRO FORMA
TRANSPRO CROWN ADJUSTMENTS CONSOLIDATED
-------- ------- ----------- ------------
<S> <C> <C> <C> <C>
Sales $261,577 $56,014 $ -- $ 205,563
Cost of sales 197,379 45,851 -- 151,528
-------- ------- ------- ---------
Gross margin 64,198 10,163 -- 54,035
Selling, general and administrative expenses 52,509 7,161 -- 45,348
Plant and business consolidation and closure costs 325 -- -- 325
-------- ------- ------- ---------
Income from operations before interest and taxes 11,364 3,002 -- 8,362
Interest expense, net 4,444 -- (1,795)(a) 2,649
-------- ------- ------- ---------
Income from operations before taxes 6,920 3,002 1,795 5,713
Provision for income taxes 104 1,337 799(a) (434)
-------- ------- ------- ---------
Net income from operations $ 6,816 $ 1,665 $ 996 $ 6,147
======== ======= ======= =========
Basic earnings per common share $ 1.03 $ .25 $ .15 $ .93
======== ======= ======= =========
Diluted earnings per common share $ .96 $ .23 $ .14 $ .87
======== ======= ======= =========
Weighted average common shares - basic 6,573 6,573
======== =========
Weighted average common shares and equivalents - diluted
7,089 7,089
======== =========
</TABLE>
(a) Adjust interest expense and the provision for income taxes for the effect of
the paydown of the revolving credit agreement from the proceeds from the
sale of the Specialty Metal Fabrication segment.
3
<PAGE> 4
TRANSPRO, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1998
(Unaudited)
(Amounts in thousands, except per share amounts)
<TABLE>
<CAPTION>
PRO FORMA PRO FORMA
TRANSPRO CROWN ADJUSTMENTS CONSOLIDATED
-------- ------- ----------- ------------
<S> <C> <C> <C> <C>
Sales $240,065 $44,473 $ -- $195,592
Cost of sales 185,547 35,196 -- 150,351
-------- ------- ------- --------
Gross margin 54,518 9,277 -- 45,241
Selling, general and administrative expenses 48,287 5,584 -- 42,703
-------- ------- ------- --------
Income from operations before interest and taxes 6,231 3,693 -- 2,538
Interest expense, net 3,326 -- (2,092)(a) 1,234
-------- ------- ------- --------
Income from operations before taxes 2,905 3,693 2,092 1,304
Provision for income taxes 1,258 1,599 906(a) 565
-------- ------- ------- --------
Net income from operations $ 1,647 $ 2,094 $ 1,186 $ 739
======== ======= ======= ========
Basic earnings per common share $ .25 $ .32 $ .18 $ .11
======== ======= ======= ========
Diluted earnings per common share $ .24 $ .31 $ .17 $ .10
======== ======= ======= ========
Weighted average common shares - basic 6,593 6,593
======== ========
Weighted average common shares and equivalents - diluted 6,804 6,804
======== ========
</TABLE>
(a) Adjust interest expense and the provision for income taxes for the effect
of the paydown of the revolving credit agreement from the proceeds from the
sale of the Specialty Metal Fabrication segment.
4
<PAGE> 5
TRANSPRO, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
(Unaudited)
(Amounts in thousands, except per share amounts)
<TABLE>
<CAPTION>
PRO FORMA PRO FORMA
TRANSPRO CROWN ADJUSTMENTS CONSOLIDATED
-------- -------- ----------- ------------
<S> <C> <C> <C> <C>
Sales $288,866 $106,729 $ -- $ 182,137
Cost of sales 222,182 77,538 -- 144,644
-------- -------- ------- ---------
Gross margin 66,684 29,191 -- 37,493
Selling, general and administrative expenses 46,278 6,785 -- 39,493
Plant and business consolidation and closure costs 3,958 3,200 -- 758
-------- -------- ------- ---------
Income from operations before interest and taxes 16,448 19,206 -- (2,758)
Interest expense, net 3,140 -- (2,165)(a) 975
-------- -------- ------- ---------
Income from operations before taxes 13,308 19,206 2,165 (3,733)
Provision for income taxes 5,433 7,778 884(a) (1,461)
-------- -------- ------- ---------
Net income from operations $ 7,875 $ 11,428 $ 1,281 $ (2,272)
======== ======== ======= =========
Basic earnings per common share $ 1.20 $ 1.74 $ .20 $ (.35)
======== ======== ======= =========
Diluted earnings per common share $ 1.16 $ 1.68 $ .19 $ (.35)
======== ======== ======= =========
Weighted average common shares - basic 6,553 6,553
======== =========
Weighted average common shares and equivalents - diluted
(b) 6,586 6,586
======== =========
</TABLE>
(a) Adjust interest expense and the provision for income taxes for the effect
of the paydown of the revolving credit agreement from the proceeds from the
sale of the Specialty Metal Fabrication segment.
(b) The weighted average basic common shares outstanding was used in the
calculation of the diluted loss per common share for the three months ended
March 31, 2000 as the use of weighted average diluted common shares
outstanding would have an anti-dilutive effect on earnings per share for
the three months ended March 31, 2000.
5
<PAGE> 6
TRANSPRO, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2000
(Unaudited)
(Amounts in thousands, except per share amounts)
<TABLE>
<CAPTION>
PRO FORMA PRO FORMA
TRANSPRO ADJUSTMENTS CONSOLIDATED
-------- ----------- -----------
<S> <C> <C> <C>
Sales $ 48,430 $ -- $ 48,430
Cost of sales 38,741 -- 38,741
-------- ------- --------
Gross margin 9,689 -- 9,689
Selling, general and administrative expenses 11,739 -- 11,739
Plant and business consolidation and closure costs 795 -- 795
-------- ------- --------
Loss from continuing operations before interest and taxes
(2,845) -- (2,845)
Interest expense, net 1,335 (525)(a) 810
-------- ------- --------
Loss from continuing operations before taxes (4,180) 525 (3,655)
Income tax (benefit) (1,519) 191(a) (1,328)
-------- ------- --------
Loss from continuing operations $ (2,661) $ 334 $ (2,327)
======== ======= ========
Basic earnings per common share $ (.41) $ .05 $ (.36)
======== ======= ========
Diluted earnings per common share $ (.41) $ .05 $ (.36)
======== ======= ========
Weighted average common shares - basic 6,573 6,573
======== ========
Weighted average common shares and equivalents - diluted
(b) 7,086 7,086
======== ========
</TABLE>
(a) Adjust interest expense and the provision for income taxes for the effect
of the paydown of the revolving credit agreement from the proceeds from the
sale of the Specialty Metal Fabrication segment.
(b) The weighted average basic common shares outstanding was used in the
calculation of the diluted loss per common share for the three months ended
March 31, 2000 as the use of weighted average diluted common shares
outstanding would have an anti-dilutive effect on earnings per share for
the three months ended March 31, 2000.
6
<PAGE> 7
TRANSPRO, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 1999
(Unaudited)
(Amounts in thousands, except per share amounts)
<TABLE>
<CAPTION>
PRO FORMA PRO FORMA
TRANSPRO ADJUSTMENTS CONSOLIDATED
-------- ----------- ------------
<S> <C> <C> <C>
Sales $46,915 $ -- $46,915
Cost of sales 34,246 -- 34,246
------- ------- -------
Gross margin 12,669 -- 12,669
Selling, general and administrative expenses 10,948 -- 10,948
------- ------- -------
Income from continuing operations before interest and
taxes 1,721 -- 1,721
Interest expense, net 914 (523)(a) 391
------- ------- -------
Income from continuing operations before taxes 807 523 1,330
Provision for income taxes 343 222(a) 565
------- ------- -------
Income from continuing operations $ 464 $ 301 $ 765
======= ======= =======
Basic earnings per common share $ .07 $ .05 $ .12
======= ======= =======
Diluted earnings per common share $ .07 $ .04 $ .11
======= ======= =======
Weighted average common shares - basic 6,573 6,573
======= =======
Weighted average common shares and equivalents - diluted 7,071 7,071
======= =======
</TABLE>
(a) Adjust interest expense and the provision for income taxes for the effect
of the paydown of the revolving credit agreement from the proceeds from the
sale of the Specialty Metal Fabrication segment.
7
<PAGE> 8
TRANSPRO, INC.
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
MARCH 31, 2000
<TABLE>
<CAPTION>
(SUBTRACT)
ADD
(Unaudited) PRO FORMA PRO FORMA
(Amounts in thousands, except share data) TRANSPRO ADJUSTMENTS(1) CONSOLIDATED
--------- -------------- -----------
Current assets:
<S> <C> <C> <C>
Cash and cash equivalents $ -- $ -- $ --
Accounts receivable (less allowances of $1,867 and 34,816 -- 34,816
$2,390)
Inventories: -- --
Raw materials 24,709 -- 24,709
Work in process 3,058 -- 3,058
Finished goods 55,332 -- 55,332
--------- -------- ---------
Total inventories 83,099 -- 83,099
--------- -------- ---------
Deferred income tax benefit 5,167 160 5,327
Net assets held for disposition 25,545 (25,545) --
Other current assets 2,420 (58) 2,362
--------- -------- ---------
Total current assets 151,047 (25,443) 125,604
--------- -------- ---------
Property, plant and equipment 77,710 -- 77,710
Less accumulated depreciation (50,965) -- (50,965)
--------- -------- ---------
Net property, plant and equipment 26,745 -- 26,745
--------- -------- ---------
Goodwill (net of amortization of $714 and $348) 7,157 -- 7,157
Other assets 2,164 -- 2,164
========= ======== =========
Total assets $ 187,113 $(25,443) $ 161,670
========= ======== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 9,000 $ -- $ 9,000
Accounts payable 28,243 -- 28,243
Accrued salaries and wages 3,798 -- 3,798
Accrued insurance 3,462 -- 3,462
Accrued taxes 709 4,198 4,907
Accrued expenses 5,955 929 6,884
--------- -------- ---------
Total current liabilities 51,167 5,127 56,294
Long-term liabilities:
Long-term debt, net of current portion 58,988 (35,099) 23,889
Retirement and post-retirement obligations 3,491 (1,330) 2,161
Deferred income taxes 495 -- 495
Other liabilities 126 -- 126
--------- -------- ---------
Total liabilities 114,267 (31,302) 82,965
--------- -------- ---------
Stockholders' equity:
Preferred stock, $.01 par value: Authorized
2,500,000 shares:
Issued and outstanding as follows:
Series A Junior participating preferred
stock, $.01par value: Authorized 200,000 -- -- --
shares; none issued and outstanding, at March
31, 2000
Series B convertible preferred stock, $.01
par value: Authorized 30,000 shares;
30,000 shares issued and outstanding at
March 31, 2000 (liquidation preference
$ 3,000) -- -- --
Common stock, $.01 par value:
Authorized 17,500,000 shares; issued 6,669,446
shares at March 31, 2000 66 -- 66
Paid-in capital 55,074 -- 55,074
Unearned compensation (54) -- (54)
Retained earnings 17,722 5,871 23,593
Accumulated other comprehensive income 64 (12) 52
Treasury stock at cost: 72,111 shares at March 31, (26) -- (26)
2000 --------- -------- ---------
Total stockholders' equity 72,846 5,859 78,705
========= ======== =========
Total liabilities and stockholders' equity $ 187,113 $(25,443) $ 161,670
========= ======== =========
</TABLE>
(1) See the table on page 9 for the schedule of Pro Forma adjustments.
8
<PAGE> 9
TRANSPRO, INC.
PRO FORMA BALANCE SHEET ADJUSTMENTS
MARCH 31, 2000
<TABLE>
<CAPTION>
(a) (b) (c) (d) Total
<S> <C> <C> <C> <C> <C>
Net assets held for disposition $(25,545) $ -- $ -- $ -- $(25,545)
Deferred income tax benefit -- -- -- 160 160
Other current assets (58) -- -- (58)
Accrued expenses -- -- (929) (929)
Accrued taxes (765) -- -- (3,433) (4,198)
Long-term debt 35,099 -- -- 35,099
Long-term retirement 850 480 -- 1,330
Retained earnings (9,593) (480) 929 3,273 (5,871)
Accumulated other comprehensive income 12 -- -- -- 12
======== ===== ===== ======== ========
Total $ -- $ -- $ -- $ -- $ --
======== ===== ===== ======== ========
</TABLE>
(a) Record proceeds from sale of Specialty Metal Fabrication segment.
(b) Record the curtailment of non-union pension benefits.
(c) Accrue transaction costs.
(d) Record tax impact of gain on sale.
9
<PAGE> 10
(c) Exhibits
2.1 Asset Purchase Agreement, dated April 17, 2000, by and between
TransPro, Inc. and Leggett & Platt, Incorporated. (1)
99.1 Press Release dated May 8, 2000 announcing the closing of the sale of
the Crown Divisions to Leggett & Platt, Incorporated.
(1) Incorporated by reference to the Company's Form 8-K filed May 2, 2000 (File
No. 1-13894).
10
<PAGE> 11
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 thereunto duly authorized.
<TABLE>
<S> <C>
TRANSPRO, INC.
(Registrant)
Date: May 22, 2000 By: /s/ Henry P. McHale
------------------------------------------------------------------
Henry P. McHale
President, Chief Executive Officer and Director
Date: May 22, 2000 By: /s/ Timothy E. Coyne
------------------------------------------------------------------
Timothy E. Coyne
Vice President, Treasury, Secretary, Controller and Chief
Financial Officer (Principal Financial and Accounting Officer)
</TABLE>
11
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