<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 8K/A
AMENDMENT TO APPLICATION OR REPORT
Filed pursuant to Section 12, 13, or 15(d) of
The Securities Exchange Act of 1934
TJ INTERNATIONAL, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 0-7469 82-0250992
- --------------------------------------------------------------------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
380 E. ParkCenter Boulevard, Suite 300, Boise, Idaho 83706
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
AMENDMENT NO. 1
The undersigned registrant hereby amends the following items, financial
statements, exhibits or other portions of its Current Report on Form 8-K dated
October 11, 1994 as set forth in the pages attached hereto:
Item 7 (a) Financial statements of businesses acquired
Item 7 (b) Pro forma financial information
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned, thereunto duly authorized.
TJ INTERNATIONAL, INC.
(Registrant)
Date: December 23, 1994 By: /s/ Valerie A. Heusinkveld
--------------------------
Valerie A. Heusinkveld
Vice President & Chief
Financial Officer
<PAGE>
Item 7 (a) Financial Statements of Businesses Acquired
Audited balance sheet of the SealRite Windows, Inc. and Oldach Window Corp., as
of December 31, 1993, and the related audited statements of income and cash
flows for the year ended December 31, 1993, and notes to financial statements
thereto.
<PAGE>
SEALRITE WINDOWS, INC.
AND
OLDACH WINDOW CORP.
-----------------
REPORT ON AUDIT OF FINANCIAL STATEMENTS
for the years ended December 31, 1993
<PAGE>
To the Shareholders of
SealRite Windows, Inc. and Oldach Window Corp.
We have audited the accompanying individual and combined balance sheets of
SealRite Windows, Inc. and Oldach Window Corp. as of December 31, 1993, and the
related individual and combined statements of income and retained earnings, and
cash flows for the year then ended. These financial statements are the
responsibility of the Companies' management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits 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 audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the individual and combined financial position of
SealRite Windows, Inc. and Oldach Window Corp. as of December 31, 1993 and the
individual and combined results of their operations and their cash flows for the
year then ended in conformity with generally accepted accounting principles.
700 Cornhusker Plaza /s/ Coopers & Lyband
Lincoln, Nebraska -----------------------------
February 15, 1994
<PAGE>
SEALRITE WINDOWS, INC. AND OLDACH WINDOW CORP.
BALANCE SHEETS
December 31, 1993
----------
ASSETS
<TABLE>
<CAPTION>
SealRite Oldach
Windows, Window
Inc. Corp. Eliminations Combined
-------- ------ ------------ --------
<S> <C> <C> <C> <C>
Current assets:
Cash (Note 2) $ 5,878 $ 13,646 $ - $ 19,524
Accounts receivable, net of allowance for doubtful
accounts of $175,000 and $31,161, respectively
(Note 4) 2,628,208 2,217,721 - 4,845,929
Due from affiliate - 171,338 (171,338) -
Inventories (Notes 3 and 4) 2,205,568 3,525,701 (116,260) 5,615,009
Prepaid expenses and deposits 38,924 317,570 - 356,494
---------- ---------- --------- ----------
Total current assets 4,878,578 6,245,976 (287,598) 10,836,956
---------- ---------- --------- ----------
Property, plant and equipment, at cost (Note 4):
Land 206,556 100,000 - 306,556
Buildings 1,045,150 - - 1,045,150
Machinery and equipment 383,064 820,922 - 1,203,986
Office furniture and equipment 67,926 290,957 - 358,883
Motor vehicles 43,520 230,733 - 274,253
Computer 188,657 - - 188,657
Leasehold improvements - 388,203 - 388,203
---------- ---------- --------- ----------
1,934,873 1,830,815 - 3,765,688
Less accumulated depreciation 838,370 512,963 - 1,351,333
---------- ---------- --------- ----------
1,096,503 1,317,852 - 2,414,355
Other assets 50,278 106,819 - 157,097
---------- ---------- --------- ----------
$6,025,359 $7,670,647 $(287,598) $13,408,408
---------- ---------- --------- ----------
---------- ---------- --------- ----------
</TABLE>
The accompanying notes are an integral
part of the financial statements.
2
<PAGE>
SEALRITE WINDOWS, INC. AND OLDACH WINDOW CORP.
BALANCE SHEETS, Continued
December 31, 1993
----------
LIABILITIES
<TABLE>
<CAPTION>
SealRite Oldach
Windows, Window
Inc. Corp. Eliminations Combined
-------- ------ ------------ --------
<S> <C> <C> <C> <C>
Current liabilities:
Bank notes payable (Note 4) $ 340,000 $1,601,265 $ - $ 1,941,265
Accounts payable 722,589 718,539 - 1,441,128
Due to affiliate 171,338 - (171,338) -
Accrued expenses 608,028 672,630 - 1,280,658
Current maturities of long-term debt (Note 4) 311,676 499,587 - 811,263
Current maturities of capitalized lease obligations
(Note 6) - 13,384 - 13,384
---------- ---------- ---------- ----------
Total current liabilities 2,153,631 3,505,405 (171,338) 5,487,698
Long-term debt (Note 4) 1,243,065 306,201 - 1,549,266
Capitalized lease obligations (Note 6) - 31,371 - 31,371
Minority interest - - 871,601 871,601
---------- ---------- ---------- ----------
3,396,696 3,842,977 700,263 7,939,936
---------- ---------- ---------- ----------
Commitments (Note 6)
STOCKHOLDERS' EQUITY
Capital stock (Note 7) 915 454,000 (106,690) 348,225
Capital stock subscribed, 85 shares 85 - - 85
Additional paid-in capital 141,857 253,142 (59,488) 335,511
Retained earnings 2,658,861 3,120,528 (821,683) 4,957,706
---------- ---------- ---------- ----------
2,801,718 3,827,670 (987,861) 5,641,527
Treasury stock, at cost (45,330) - - (45,330)
Stock subscriptions receivable (127,725) - - (127,725)
---------- ---------- ---------- ----------
2,628,663 3,827,670 (987,861) 5,468,472
---------- ---------- ---------- ----------
$6,025,359 $7,670,647 $(287,598) $13,408,408
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
</TABLE>
The accompanying notes are an integral
part of the financial statements.
3
<PAGE>
SEALRITE WINDOWS, INC. AND OLDACH WINDOW CORP.
STATEMENTS OF INCOME AND RETAINED EARNINGS
for the year ended December 31, 1993
-----------
<TABLE>
<CAPTION>
SealRite Oldach
Windows, Window
Inc. Corp. Eliminations Combined
-------- ------ ------------ --------
<S> <C> <C> <C> <C>
Sales $15,770,656 $20,942,669 $(1,010,562) $35,702,763
----------- ----------- ----------- -----------
Cost of sales:
Beginning inventory 1,930,134 3,049,457 - 4,979,591
Material purchases 7,873,293 10,186,596 (1,010,562) 17,049,327
Labor 1,458,807 3,059,183 - 4,517,990
Overhead (Note 6) 1,627,283 2,193,700 - 3,820,983
----------- ----------- ----------- -----------
12,889,517 18,488,936 (1,010,562) 30,367,891
Ending inventory 2,205,568 3,525,701 (116,260) 5,615,009
----------- ----------- ----------- -----------
10,683,949 14,963,235 (894,302) 24,752,882
----------- ----------- ----------- -----------
Gross profit 5,086,707 5,979,434 (116,260) 10,949,881
----------- ----------- ----------- -----------
Selling and distribution expense 2,805,916 1,526,861 - 4,332,777
Administration expense 945,713 1,558,544 - 2,504,257
----------- ----------- ----------- -----------
3,751,629 3,085,405 - 6,837,034
----------- ----------- ----------- -----------
Income from operations 1,335,078 2,894,029 (116,260) 4,112,847
----------- ----------- ----------- -----------
Other income (expense):
Interest income 6,515 - - 6,515
Interest expense (177,442) (240,856) - (418,298)
Loss on sale of fixed assets - (52,887) - (52,887)
Other 21,450 12,359 - 33,809
----------- ----------- ----------- -----------
(149,477) (281,384) - (430,861)
----------- ----------- ----------- -----------
Income before minority interest 1,185,601 2,612,645 (116,260) 3,681,986
Minority interest - - (576,457) (576,457)
----------- ----------- ----------- -----------
Net income $ 1,185,601 $ 2,612,645 $ (692,717) $ 3,105,529
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
The accompanying notes are an integral
part of the financial statements.
4
<PAGE>
SEALRITE WINDOWS, INC. AND OLDACH WINDOW CORP.
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
for the year ended December 31, 1993
-----------------
<TABLE>
<CAPTION>
SealRite Windows, Inc.
-------------------------------------------------------------------------
Capital Stock
Capital Stock Paid-In Retained Treasury Subscriptions
Stock Subscribed Capital Earnings Stock Receivable
------- ---------- ------- -------- -------- -------------
<S> <C> <C> <C> <C> <C> <C>
Balance, December 31, $915 $85 $141,857 $1,792,972 $(45,330) $(144,333)
1992
Sale of Treasury stock - - - - - -
Payments of stock
subscriptions
receivable - - - - - 16,608
Net income - - - 1,185,601 - -
Distribution to
stockholders - - - (319,712) - -
--------- --------- --------- --------- --------- ---------
Balance, December 31,
1993 $915 $85 $141,857 $2,658,861 $(45,330) $(127,725)
--------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- ---------
<CAPTION>
Oldach Window Corp.
----------------------------------------------------------------------
Capital Paid-In Treasury Retained
Stock Capital Stock Earnings Eliminations Combined
------- ------- -------- -------- ------------ --------
<S> <C> <C> <C> <C> <C> <C>
Balance, December 31, $454,000 $200,000 $(17,412) $1,518,618 $(516,087) $ 3,385,285
1992
Sale of Treasury stock - 53,142 17,412 - (16,580) 53,974
Payments of stock
subscriptions
receivable - - - - - 16,608
Net income - - - 2,612,645 (692,717) 3,105,529
Distribution to
stockholders - - - (1,010,735) 237,523 (1,092,924)
-------- --------- --------- ---------- --------- -----------
Balance, December 31,
1993 $454,000 $253,142 $ - $3,120,528 $(987,861) $ 5,468,472
-------- --------- --------- ---------- --------- -----------
-------- --------- --------- ---------- --------- -----------
</TABLE>
The accompanying notes are an integral
part of the financial statements.
5
<PAGE>
SEALRITE WINDOWS, INC. AND OLDACH WINDOW CORP.
STATEMENTS OF CASH FLOWS
for the year ended December 31, 1993
----------
INCREASE (DECREASE) IN CASH
<TABLE>
<CAPTION>
SealRite Oldach
Windows, Window
Inc. Corp. Eliminations Combined
-------- ------ ------------ --------
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 1,185,601 $ 2,612,645 $(692,717) $ 3,105,529
----------- ----------- ----------- -----------
Adjustments to reconcile net income to net cash
provided by operating activities:
Increase in allowance for doubtful accounts 60,000 26,161 - 86,161
Depreciation and amortization 131,870 196,583 - 328,453
Loss on sale of fixed assets - 52,887 - 52,887
Increase in accounts receivable (1,068,288) (135,375) - (1,203,663)
Decrease (increase) in due from affiliates 92,850 (171,338) 171,338 92,850
Increase in inventories (275,434) (476,244) 116,260 (635,418)
Increase in prepaid expenses (11,763) (236,197) - (247,960)
Increase in other assets (5,325) - - (5,325)
Increase (decrease) in accounts payable 87,656 (124,564) - (36,908)
Increase (decrease) in accrued expenses (27,945) 178,746 - 150,801
Increase (decrease) in due to affiliates 171,338 (66,308) (171,338) (66,308)
Minority interest - - 355,514 355,514
----------- ----------- ----------- -----------
Total adjustments (845,041) (755,649) 471,774 (1,128,916)
----------- ----------- ----------- -----------
Net cash provided by operating
activities 340,560 1,856,996 (220,943) 1,976,613
----------- ----------- ----------- -----------
CASH FLOWS USED IN INVESTING ACTIVITIES:
Proceeds from sale of fixed assets - 3,950 - 3,950
Capital expenditures (94,721) (586,723) - (681,444)
----------- ----------- ----------- -----------
Net cash used in investing activities (94,721) (582,773) - (677,494)
----------- ----------- ----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings under revolving loan agreement 340,000 (190,491) - 149,509
Proceeds from issuance of long-term debt 500,000 364,172 - 864,172
Repayment of long-term debt and revolving loan (799,742) (482,693) - (1,282,435)
Payments of capital lease obligations - (12,234) - (12,234)
Decrease in stock subscriptions receivable 16,608 - - 16,608
Sale of treasury stock - 70,554 (16,580) 53,974
Distributions to shareholders (319,712) (1,010,735) 237,523 (1,092,924)
----------- ----------- ----------- -----------
Net cash used in financing activities (262,846) (1,261,427) 220,943 (1,303,330)
----------- ----------- ----------- -----------
Net increase (decrease) in cash (17,007) 12,796 - (4,211)
Cash at beginning of year 22,885 850 - 23,735
----------- ----------- ----------- -----------
Cash at end of year $ 5,878 $ 13,646 $ - $ 19,524
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the year for interest $ 220,230 $ 251,221 $ - $ 471,451
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
The accompanying notes are an integral
part of the financial statements.
6
<PAGE>
SEALRITE WINDOWS, INC. AND OLDACH WINDOW CORP.
NOTES TO FINANCIAL STATEMENTS
----------
1. ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed in
the preparation of these financial statements.
(a) PRINCIPLES OF COMBINING:
The individual and combined financial statements include the accounts
of SealRite Windows, Inc. and Oldach Window Corp. The shareholders of
SealRite Windows, Inc. have seventy-seven percent ownership in Oldach
Window Corp. Minority interest represents the twenty-three percent
ownership interest in Oldach Window Corp. not held by shareholders of
SealRite Windows, Inc. All material intercompany balances and
transactions have been eliminated in combination.
(b) INDUSTRY INFORMATION:
The Companies are principally engaged in the production and sale of
window and door products and grants credit to homebuilders,
substantially all of whom are located in the Midwest.
(c) INVENTORIES:
Inventories of SealRite Windows, Inc. are valued at the lower of cost,
on the last-in, first-out (LIFO) method, or market. Oldach Window
Corp. inventories are valued at the lower of cost, on the first-in,
first-out (FIFO) method, or market.
(d) DEPRECIATION:
Depreciation is computed on the straight-line method over the
estimated useful lives of the assets.
Maintenance and repairs are charged to expense as incurred while major
renewals and betterments are capitalized. When assets are retired or
otherwise disposed of, the assets and related accumulated depreciation
are eliminated from the accounts and any resulting gain or loss is
reflected in income.
(e) EMPLOYEE BENEFIT PLAN:
SealRite Windows, Inc. has a defined contribution Retirement Plan and
a 401(k) Thrift Plan & Trust covering all employees who have completed
one year of service. Participants in the 401(k) Thrift Plan & Trust
may contribute up to 15% of their annual wages. The Company made
contributions during the year to the 401(k) plan matching 100% of the
amount contributed by participants up to a maximum of 4% of
participants' compensation. The Company's total contribution to the
401(k) plan for the year ended December 31, 1993 was approximately
$71,000.
7
<PAGE>
SEALRITE WINDOWS, INC. AND OLDACH WINDOW CORP.
NOTES TO FINANCIAL STATEMENTS, Continued
----------
1. ACCOUNTING POLICIES, CONTINUED:
(e) EMPLOYEE BENEFIT PLAN, CONTINUED:
Oldach Window Corp. has a defined contribution 401(k) plan covering
all employees who have completed one year of full-time service. The
Company made contributions during 1993 to the 401(k) plan matching 25%
of the amount contributed by the participants up to a maximum of 2.5%
of participants' compensation. In 1993, the Company made an
additional discretionary contribution of 10% as determined by the
Board of Directors. The Company's total contribution to the 401(k)
plan for the year ended December 31, 1993 was $66,354.
2. CASH BALANCES:
The Companies each maintain a zero balance operating account as part of
their cash management system. Checks not presented for payment as of
December 31, 1993 of $242,000 and $68,000, respectively, are included in
accounts payable. When presented for payment, these amounts are added to
the Company's revolving credit line (See Note 4). Cash balances related to
the depository accounts of approximately $173,000 and $42,000,
respectively, were applied against the Company's revolving loan at
December 31, 1993.
3. INVENTORIES:
As of December 31, 1993 combined inventories consisted of the following:
<TABLE>
<CAPTION>
SealRite Oldach
Windows, Window
Inc. Corp. Eliminations Combined
-------- ------ ------------ --------
<S> <C> <C> <C> <C>
Inventories at FIFO
cost:
Raw materials $1,175,248 $1,671,163 $ - $2,846,411
Work-in-process 755,362 1,076,322 - 1,831,684
Finished goods 960,043 778,216 (116,260) 1,621,999
---------- ---------- --------- ----------
2,890,653 3,525,701 (116,260) 6,300,094
Less: Excess of FIFO
cost over LIFO (685,085) - - (685,085)
---------- ---------- --------- ----------
$2,205,568 $3,525,701 $(116,260) $5,615,009
---------- ---------- --------- ----------
---------- ---------- --------- ----------
</TABLE>
SealRite Windows, Inc. inventories were restated to fair value at their
acquisition date in 1986, which was $181,913 in excess of the valuation
reported for federal income tax purposes.
8
<PAGE>
SEALRITE WINDOWS, INC. AND OLDACH WINDOW CORP.
NOTES TO FINANCIAL STATEMENTS, Continued
----------
4. BANK NOTES PAYABLE AND LONG-TERM DEBT:
SealRite Windows, Inc. bank notes payable at December 31, 1993 consists of
a revolving credit note payable to a local bank, bearing interest (6.5% at
December 31, 1993) at 1/2% above the National Prime Rate established by the
Bank, with the interest due quarterly. The maximum principal balance of
the revolving loan is $2,500,000.
Oldach Window Corp. bank notes payable at December 31, 1993 consists of a
revolving credit note payable bearing interest (7.25% at December 31, 1993)
at 1.25% above the National Prime Rate established by the Bank, with the
interest due monthly. The maximum principal amount of the revolving loan
is $3,000,000.
Long-term debt at December 31, 1993 consists of the following:
<TABLE>
<CAPTION>
Current Noncurrent
------- ----------
<S> <C> <C>
Mortgage loan to bank due in monthly
installments of $9,636 including interest
(8.25% at December 31, 1993) at the monthly
average yield on U.S. Treasury securities
adjusted to a constant maturity of one year
plus 350 basis points through July 1999.
The remaining balance is due and payable
August 1999. $ 42,394 $ 864,554
Term note payable in monthly installments
of $10,019 including interest at 7.5% with
remaining principal and interest balance
due at May 31, 1996. 88,215 378,511
Subordinated notes payable to shareholders,
due in quarterly payments of $29,762
beginning July 1991 through April 1994.
Interest is payable quarterly (6.0% at
December 31, 1993) at the First National
Bank of Chicago prime rate. 122,601 -
-------- ----------
Balance, carried forward $253,210 $1,243,065
</TABLE>
9
<PAGE>
SEALRITE WINDOWS, INC. AND OLDACH WINDOW CORP.
NOTES TO FINANCIAL STATEMENTS, Continued
----------
4. BANK NOTES PAYABLE AND LONG-TERM DEBT, CONTINUED:
<TABLE>
<CAPTION>
Current Noncurrent
------- ----------
<S> <C> <C>
Balance, brought forward $253,210 $1,243,065
10.5% note payable to a former shareholder
due in monthly installments of $839 plus
interest commencing April 30, 1992 with
remaining principal and interest due
October 1994. 8,819 -
10.5% note payable to a former shareholder
due in monthly installments of $5,088 plus
interest commencing April 30, 1992 with
remaining principal and interest due
November 1994. 49,647 -
Term note payable in monthly installments
of $17,800 including interest at 1/2% above
the reference rate adjusted quarterly (7.5%
at December 31, 1993) with the unpaid
principal balance due October 10, 1994. 166,046 -
Short-term bank note payable repaid in
February, 1994, including interest at 8%. 200,000 -
Note payable in monthly installments of
$10,324 including interest at 10.5%
through April 1997. 91,766 255,396
9.5% note payable to a former shareholder
due January 1, 1994. 8,705 -
Miscellaneous equipment and vehicle notes
payable bearing interest at various rates
ranging from 6.9% to 12.5% maturing from
1993 through 1996. 33,070 50,805
-------- ----------
$811,263 $1,549,266
-------- ----------
-------- ----------
</TABLE>
10
<PAGE>
SEALRITE WINDOWS, INC. AND OLDACH WINDOW CORP.
NOTES TO FINANCIAL STATEMENTS, Continued
----------
4. BANK NOTES PAYABLE AND LONG-TERM DEBT, CONTINUED:
The notes payable are collateralized by fixed assets (excluding real
estate), inventory, accounts receivable, deposit accounts, stock and
assignment of a portion of officers life insurance policies. These
agreements contain provisions, which among other things, require the
Company to maintain a minimum amount of working capital, net worth and net
income, a debt to equity ratio, and limit or prohibit additional
borrowings, guarantees, sale of assets, dividends, remuneration, fixed
assets additions and sale or acquisition of its stock.
As of December 31, 1993, long-term debt matures as follows:
<TABLE>
<S> <C>
1994 $ 811,263
1995 277,685
1996 462,615
1997 94,662
1998 58,902
Thereafter 655,402
----------
$2,360,529
----------
----------
</TABLE>
5. INCOME TAXES:
The Companies are taxed under the provisions of Subchapter S of the
Internal Revenue Code. Accordingly, no provision is made in the accounts
of the companies for any income taxes arising from operations since that
date as such amounts are assets or liabilities of the individual
stockholders and the amounts thereof depend upon their respective tax
situations.
6. COMMITMENTS:
Oldach Window Corp. leases certain equipment under lease agreements
expiring through 1997, which have been accounted for as capital leases. As
of December 31, 1993, the cost and related accumulated depreciation of the
capitalized leased equipment aggregated $69,503 and $18,463, respectively.
The Companies also lease certain facilities and equipment under operating
leases which expire on various dates through 1999. Oldach Window Corp.
leased real estate from stockholders under an agreement which expired on
December 31, 1993 and was not renewed.
11
<PAGE>
SEALRITE WINDOWS, INC. AND OLDACH WINDOW CORP.
NOTES TO FINANCIAL STATEMENTS, Continued
----------
6. COMMITMENTS, CONTINUED:
At December 31, 1993, minimum lease payments due under capital leases and
operating leases with terms over one year are as follows:
<TABLE>
<CAPTION>
Capital Operating
Leases Leases
------- ---------
<S> <C> <C>
1994 $21,979 $ 550,316
1995 16,559 523,524
1996 18,797 412,476
1997 5,904 354,313
1998 - 342,438
1999 - 18,554
------- ----------
Total future minimum lease payments 63,239 $2,201,621
----------
----------
Less amount representing interest
(rates ranging from 6.9% to 33%)
and taxes 18,484
-------
Present value of net future minimum
lease payments 44,755
Less current maturities 13,384
-------
Long-term portion $31,371
-------
-------
</TABLE>
Total rent expenses for all operating leases aggregated $930,926 at
December 31, 1993, of which $242,657 was paid to stockholders in 1993.
7. CAPITAL STOCK:
Capital stock of the Companies is summarized below:
<TABLE>
<CAPTION>
SealRite Oldach
Windows, Window
Inc. Corp.
-------- ------
<S> <C> <C>
Par Value $1 No par
Authorized shares 2,000 1,635
Shares issued 915 1,635
</TABLE>
12
<PAGE>
SEALRITE WINDOWS, INC. AND OLDACH WINDOW CORP.
NOTES TO FINANCIAL STATEMENTS, Continued
----------
7. CAPITAL STOCK, CONTINUED:
The Company has an agreement with its management shareholders with respect
to any and all transfers or sales of Company stock. The agreement is
effective for all transactions with third parties and upon termination of
employment, disability or death. Each shareholder must offer their shares
to the Company initially and then to the remaining shareholders before
selling such shares to third parties. The purchase price shall be equal to
that agreed to with the third party or the book value of the shares as
adjusted pursuant to the agreement.
13
<PAGE>
Item 7 (a) Financial Statements of Businesses Acquired
(Continued)
Unaudited interim condensed combined balance sheet of the SealRite Windows,
Inc. and Oldach Window Corp., as of September 30, 1994, and the related
unaudited condensed combined statements of income and cash flows for the
nine months ended September 30, 1994.
The condensed combined financial statements included herein have been
prepared by SealRite Windows, Inc. and Oldach Window Corp. (S&O), without
audit, pursuant to the rules and regulations of the Securities and Exchange
Commission. In the opinion of S&O's management, all adjustments necessary
to present fairly the results of the periods presented have been included
therein. Certain information and footnote disclosure normally included in
financial statements have been condensed or omitted pursuant to such rules
and regulations, although S&O believes that the disclosures are adequate to
make the information presented not misleading. It is recommended that these
condensed combined financial statements be read in conjunction with the
audited financial statements and notes thereto included in this Form 8K/A.
The results of operations for the nine months ended September 30, 1994 are
not necessarily indicative of the results that might be expected for the
fiscal year ended December 31, 1994.
<PAGE>
SealRite Windows, Inc. and
Oldach Window Corp.
Condensed Combined Balance Sheet (Unaudited)
As of September 30, 1994
(Amounts in thousands)
<TABLE>
<CAPTION>
Assets
- -------------------------------------------------------------------------------
<S> <C>
Current assets
Receivables, net $6,724
Inventories 6,649
Other 18
---------
13,391
Property and equipment 5,202
Accumulated depreciation (2,844)
---------
2,358
Other assets 117
---------
$15,866
---------
---------
<CAPTION>
Liabilities and Stockholders' Equity
- --------------------------------------------------------------------------------
<S> <C>
Current liabilities
Notes payable $3,428
Current portion of long-term debt 105
Accounts payable and accruals 3,648
--------
7,181
Long-term debt 1,533
Stockholders' Equity 7,152
--------
$15,866
--------
--------
</TABLE>
<PAGE>
SealRite Windows, Inc. and
Oldach Window Corp.
Condensed Combined Statement of Income (Unaudited)
For the Nine Months Ended September 30, 1994
and September 30, 1993
(Amounts in thousands)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, September 30,
1994 1993
--------------- ---------------
<S> <C> <C>
Sales $31,533 $27,401
--------------- --------------
Costs and expenses
Cost of sales 22,507 19,634
Selling expenses 4,115 3,509
Administrative expenses 1,811 1,438
--------------- --------------
28,433 24,581
--------------- --------------
Income from operations 3,100 2,820
Interest expense (247) (286)
--------------- --------------
Income before income tax 2,853 2,534
Income taxes 0 0
--------------- --------------
Net Income $2,853 $2,534
--------------- --------------
--------------- --------------
</TABLE>
<PAGE>
SealRite Windows, Inc. and
Oldach Window Corp.
Condensed Combined Statement of Cash Flows (Unaudited)
For the Nine Months Ended September 30, 1994
and September 30, 1993
(Amounts in thousands)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, September 30,
1994 1993
-----------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
- ------------------------------------
Net Income $2,853 $2,534
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 1,493 1,492
Change in working capital items:
Receivables (1,706) (1,455)
Inventories (790) (593)
Other current assets 378 (162)
Accounts payable and accrued liabilities 755 334
----------------------------------
Net cash provided by operating activities: $2,983 $2,150
- -------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
- ------------------------------------
Capital expenditures $(1,437) $(1,870)
-----------------------------------
Net cash used in investing activities $(1,437) $(1,870)
- -------------------------------------------------------------------------------
CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
- ----------------------------------------------
Net borrowings under lines of credit $1,486 $1,375
Principal payments on long-term debt (767) (619)
Partners' tax distributions (2,285) (1,060)
-----------------------------------
Net cash used in financing activities $(1,566) $(304)
- -------------------------------------------------------------------------------
Net decrease in cash and cash equivalents $(20) $(24)
-----------------------------------
-----------------------------------
</TABLE>
<PAGE>
Item 7 (b) Pro Forma Financial Information
Pro forma balance sheet as of October 1, 1994.
Pro forma statement of income for the nine months ended October 1, 1994.
Pro forma statement of income for the fiscal year ended January 1, 1994.
<PAGE>
TJ International, Inc. and
Combined SealRite Windows, Inc. & Oldach Window Corp.
Pro Forma Condensed Consolidated Balance Sheet (Unaudited)
As of October 1, 1994
(Amounts in thousands)
<TABLE>
<CAPTION>
Pro Forma
TJ International, SealRite & Pro Forma Consolidated
ASSETS Inc. Oldach Adjustment Note Balance Sheet
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Current assets
Cash and cash equivalents $45,540 $0 $(758) (2) $44,782
Marketable securities 13,839 0 0 13,839
Receivables, net 47,592 6,724 0 54,316
Inventories 64,183 6,649 0 70,832
Other 11,270 18 0 11,288
-----------------------------------------------------------------------------------
182,424 13,391 (758) 195,057
Property
Property and equipment 465,975 5,202 0 471,177
Accumulated depreciation (137,859) (2,844) 0 (140,703)
-----------------------------------------------------------------------------------
328,116 2,358 0 330,474
Goodwill 22,880 0 26,848 (4) 49,728
Unexpended bond funds 23,185 0 0 23,185
Other assets 10,413 117 800 (1) 11,330
-----------------------------------------------------------------------------------
$567,018 $15,866 $26,890 $609,774
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Current liabilities
Notes payable $1,778 $3,428 $(3,428) (2) $1,778
Current portion of long-term debt 1,470 105 (105) (2) 1,470
Accounts payable and accruals 60,304 3,648 736 (1)(2) 64,688
-----------------------------------------------------------------------------------
63,552 7,181 (2,797) 67,936
Long-term debt, less current portion 88,745 1,533 18,839 (2)(3) 109,117
Deferred income taxes 7,174 0 0 7,174
Other long-term liabilities 13,519 0 0 13,519
Minority interest in partnerships 148,418 0 18,000 (5) 166,418
Stockholders' equity 245,610 7,152 (7,152) (3)(4) 245,610
-----------------------------------------------------------------------------------
$567,018 $15,866 $26,890 $609,774
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
</TABLE>
<PAGE>
TJ International, Inc. and
Combined SealRite Windows, Inc. & Oldach Window Corp.
Pro Forma Condensed Consolidated Statement of Income (Unaudited)
For the nine months ended October 1, 1994
(Amounts in thousands except per share figures)
<TABLE>
<CAPTION>
Pro Forma
TJ International, SealRite & Pro Forma Consolidated
Inc. Oldach Adjustment Note Income Statement
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Sales $470,247 $31,533 $0 $501,780
-----------------------------------------------------------------------------------
Costs and expenses
Cost of sales 354,063 22,507 0 376,570
Selling expenses 46,489 4,115 0 50,604
Administrative expenses 25,024 1,811 504 (6) 27,339
-----------------------------------------------------------------------------------
425,576 28,433 504 454,513
-----------------------------------------------------------------------------------
Income from operations 44,671 3,100 (504) 47,267
Investment income, net 1,386 0 0 1,386
Interest expense 0 (247) 247 (7) 0
Minority interest in partnerships (24,894) 0 (434) (8) (25,328)
-----------------------------------------------------------------------------------
Income before income taxes 21,163 2,853 (691) 23,325
Income taxes 8,677 0 886 9,563
-----------------------------------------------------------------------------------
Net Income $12,486 $2,853 $(1,577) $13,762
-----------------------------------------------------------------------------------
Net Income per common share
Primary $0.68 $0.75
----------------- -----------------
----------------- -----------------
Fully diluted $0.64 $0.71
----------------- -----------------
----------------- -----------------
Weighted average number of
common shares outstanding
Primary 17,356 17,356
----------------- -----------------
----------------- -----------------
Fully diluted 18,626 18,626
----------------- -----------------
----------------- -----------------
</TABLE>
<PAGE>
TJ International, Inc. and
Combined SealRite Windows, Inc. & Oldach Window Corp.
Pro Forma Condensed Consolidated Statement of Income (Unaudited)
For the year ended January 1, 1994
(Amounts in thousands except per share figures)
<TABLE>
<CAPTION>
Pro Forma
TJ International, SealRite & Pro Forma Consolidated
Inc. Oldach Adjustment Note Income Statement
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Sales $551,204 $35,703 $0 $586,907
-----------------------------------------------------------------------------------
Costs and expenses
Cost of sales 408,853 24,753 0 433,606
Selling expenses 59,040 4,333 0 63,373
Administrative expenses 50,475 2,523 672 (6) 53,670
-----------------------------------------------------------------------------------
518,368 31,609 672 550,649
-----------------------------------------------------------------------------------
Income from operations 32,836 4,094 (672) 36,258
Investment income, net 449 0 0 449
Interest expense (3,136) (412) (948) (7) (4,496)
Minority interest in partnerships (10,149) 0 (546) (8) (10,695)
-----------------------------------------------------------------------------------
Income before income taxes 20,000 3,682 (2,166) 21,516
Income taxes 7,472 0 566 8,038
-----------------------------------------------------------------------------------
Net Income $12,528 $3,682 $(2,732) $13,478
-----------------------------------------------------------------------------------
Net Income per common share
Primary $0.82 $0.88
----------------- -----------------
----------------- -----------------
Fully diluted $0.76 $0.82
----------------- -----------------
----------------- -----------------
Weighted average number of
common shares outstanding
Primary 14,267 14,267
----------------- -----------------
----------------- -----------------
Fully diluted 15,603 15,603
----------------- -----------------
----------------- -----------------
</TABLE>
<PAGE>
TJ INTERNATIONAL, INC., SEALRITE WINDOWS, INC. AND OLDACH WINDOW
CORP. EXPLANATORY NOTES TO PRO FORMA FINANCIAL INFORMATION
TRANSACTION
On October 11, 1994, TJ International, Inc. (the "Company")
formed a Delaware general partnership (the "Partnership"),
combining the Company's wholly-owned subsidiary, Norco
Windows, Inc., a Wisconsin corporation ("Norco"), with
SealRite Windows, Inc., a Nebraska corporation ("SealRite")
and Oldach Window Corp., a Delaware corporation ("Oldach").
The Partnership, which was initially formed as the N-S&O
Partnership, will operate under the name "Outlook Window
Partnership ("Outlook")."
Under the terms of a Partnership Formation and Contribution
Agreement, the Company contributed to the Partnership all of
the assets and liabilities of Norco and all of the issued
and outstanding capital stock of its wholly-owned
subsidiaries, Dashwood Industries Limited, a corporation
organized under the laws of the Province of Ontario, Canada
("Dashwood"), and R. Laflamme & Frere, Quebec, ("Laflamme"),
in exchange for a 73.5% interest in the Partnership.
SealRite and Oldach contributed all of their respective
assets and liabilities in exchange for an aggregate 26.5%
interest in the Partnership. The Partnership Agreement of
the Partnership provides that the Company shall make an
additional cash contribution to the Partnership equal to the
amount of any operating losses for Norco, Dashwood and
Laflamme for the period October 3, 1994 to December 31, 1995.
The Company's acquisition of a 73.5% ownership interest in
the Partnership is accounted for using the purchase method of
accounting. The former Norco, Dashwood and Laflamme assets
and liabilities are recorded at their historical net book
value. The former S&O assets and liabilities are recorded at
their fair market value.
On October 27, 1994, the Company announced it has signed a
letter of intent to sell its Dashwood window subsidiary to
Andersen Corporation. Also, on December 5, 1994 Andersen
Corporation has expressed an intent to purchase the company's
Laflamme subsidiary. The sale of both these companies is
targeted to be effective at the end of the company's 1994
fiscal year. If the sale pursuant to the terms of the letter of
intent the company's interest in Outlook would decrease to
approximately 64%.
<PAGE>
PRO FORMA FINANCIAL STATEMENTS
The accompanying pro forma financial statements are required
by and prepared in accordance with the rules and regulations
of the Securities and Exchange Commission. The pro forma
portions of the accompanying statements make certain
assumptions concerning current and historical events, which
may or may not be applicable in the circumstances.
Accordingly, no assurances can be given that the pro forma
financial statements are necessarily indicative of the
results that may have happened in the past or might be
expected for the future.
The accompanying pro forma balance sheet shows how the
transaction might have affected the company's historical
balance sheet if the transaction had been fully consummated
on October 1, 1994. The audit of the assets and liabilities
contributed to the Partnership is not yet completed. Any
material adjustments as a result of the audit would affect
the balances reported in the accompanying pro forma
consolidated balance sheet.
The accompanying pro forma statements of income show how the
transaction might have affected the Company's historical
income statements had the transaction been consummated at the
beginning of the periods presented in the statements. The
pro forma income statements are based on the audited income
statements of the Company and S&O for the fiscal year ended
January 1, 1994, and on the unaudited income statements for
the Company and S&O for the nine months ended October 1,
1994. Pro forma adjustments to the historical financial
statements are described in the following notes:
<PAGE>
1. Adjustment to reflect the estimated unpaid transaction
related costs and liability.
2. Adjustment to reflect the pay off of short-term and certain
long-term borrowings of S&O through refinancing with a draw
on the Company's Revolving Credit Facility, coupled with a
cash payment.
3. Adjustment to reflect the distribution to former shareholders
of S&O funded by a draw on the Company's Revolving Credit
Facility.
4. Adjustment to reflect the fair market value of the businesses
acquired.
5. Adjustment to reflect the minority interest for the 26.5%
portion of the partnership owned by S&O.
6. Adjustment to reflect the amortization over 40 years of
goodwill arising from the acquisition.
7. Adjustment to reflect the additional interest expense on the
incremental borrowing described in note 3 above. For the
nine months ended October 1, 1994, all interest expense would
be capitalized into construction in progress.
8. Adjustment to reflect the allocation of 26.5% of S&O's
income to the minority interest. The pro forma results
assume the allocation to the Company of all the losses of
Norco, Dashwood and Laflamme for the periods presented,
consistent with the allocation of any such losses agreed to
by the partners for the period October 3, 1994 to December 31,
1995.
