-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JCnXhXPduAjjA8zbvzEQcrS8YI6WJk5IoUdEcWr7yMtVNPBq+pw8XDLSs1nWuJFU 3b8r8aGJtF+2GpgT+be1JQ== <SEC-DOCUMENT>0001029869-97-000697.txt : 19970605 <SEC-HEADER>0001029869-97-000697.hdr.sgml : 19970605 ACCESSION NUMBER: 0001029869-97-000697 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19961228 FILED AS OF DATE: 19970604 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: RAYOVAC CORP CENTRAL INDEX KEY: 0001028985 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690] IRS NUMBER: 222423556 STATE OF INCORPORATION: WI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 333-17895 FILM NUMBER: 97619337 BUSINESS ADDRESS: STREET 1: 601 RAYOVAC DRIVE CITY: MADISON STATE: WI ZIP: 53711-2497 BUSINESS PHONE: 6082753340 MAIL ADDRESS: STREET 1: 601 RAYOVAC DRIVE CITY: MADISON STATE: WI ZIP: 53711-2497 </SEC-HEADER> <DOCUMENT> <TYPE>10-Q/A <SEQUENCE>1 <DESCRIPTION>AMENDMENT TO FORM 10-Q <TEXT> UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10Q/A [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 28, 1996 ----------------- OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number 333-17895 ---------- Rayovac Corporation -------------------------- (Exact name of registrant as specified in its charter) Wisconsin 22-2423556 ----------------------- ------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 601 Rayovac Drive, Madison, Wisconsin 53711 ----------------------------------------- (Address of principal executive offices) (Zip Code) (608) 275-3340 -------------------------------------------- (Registrant's telephone number, including area code) (Former name, former address and former fiscal year, if changed since last report.) Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ( ) No ( X ) The number of shares outstanding of the Registrant's common stock, $.01 par value, as of June 3, 1997, the most recent practicable date, was 20,581,431. <PAGE> PART I. FINANCIAL INFORMATION Item 1. Financial Statements RAYOVAC CORPORATION Condensed Consolidated Balance Sheets As of December 28, 1996 and September 30, 1996 (In thousands, except per share amounts) -ASSETS- December 28, 1996 September 30, 1996 (Unaudited) (Audited) Current assets: Cash and cash equivalents $4,875 $4,255 Receivables 80,050 66,476 Inventories 50,488 70,121 Prepaid expenses and other 12,166 14,822 --------- --------- Total current assets 147,579 155,674 Property, plant and equipment, net 68,039 69,397 Deferred charges and other 18,952 20,177 --------- --------- Total assets $234,570 $245,248 ========= ========= -LIABILITIES AND SHAREHOLDERS' DEFICIT- Current liabilities: Current maturities of long-term debt $11,019 $8,818 Accounts payable 41,117 46,921 Accrued liabilities: Wages and benefits and other 34,593 21,798 Recapitalization and other special charges 11,895 14,942 --------- --------- Total current liabilities 98,624 92,479 Long-term debt, net of current maturities 203,881 224,845 Employee benefit obligations, net of current portion 12,875 12,138 Other 1,474 1,506 Shareholders' deficit: Common stock, $.01 par value, authorized 90,000 shares; issued 50,000 shares; outstanding 20,470 shares 500 500 Additional paid-in capital 15,970 15,970 Foreign currency translation adjustment 2,745 1,689 Note receivable officer/shareholder (500) (500) Retained earnings 27,523 25,143 --------- --------- 46,238 42,802 Less treasury stock, at cost, 29,530 shares (128,522) (128,522) --------- --------- Total shareholders' deficit (82,284) (85,720) --------- --------- Total liabilities and shareholders' deficit $234,570 $245,248 ========= ========= See accompanying notes which are an integral part of these statements. <PAGE> RAYOVAC CORPORATION Condensed Consolidated Statements of Operations For the three-month periods ended December 28, 1996 and December 30, 1995 (Unaudited) (In thousands, except per share amounts) 1996 1995 ---- ---- Net sales $130,004 $129,952 Cost of goods sold 79,019 77,488 --------- --------- Gross profit 50,985 52,464 Selling 26,762 30,804 General and administrative 7,604 8,680 Research and development 1,910 1,329 Other special charges 2,963 -- ---------- --------- Total operating expenses 39,239 40,813 Income from operations 11,746 11,651 Other expense: Interest expense 7,974 2,166 Other expense 14 228 --------- --------- 7,988 2,394 Income before income taxes 3,758 9,257 Income taxes 1,378 3,198 --------- --------- Net income $2,380 $6,059 ========= ========= Net income per share $0.12 $0.12 ========= ========= Average shares outstanding 20,470 49,571 ========= ========= See accompanying notes which are an integral part of these statements. <PAGE> RAYOVAC CORPORATION Condensed Consolidated Statements of Cash Flows For the three-month periods ended December 28, 1996 and December 30, 1995 (Unaudited) (In thousands) 1996 1995 ---- ---- Cash flows from operating activities: Net income $2,380 $6,059 Non-cash adjustments to net income: Amortization 2,373 17 Depreciation 3,060 3,225 Net changes in other assets and liabilities 12,717 4,899 --------- ------- Net cash provided by operating activities 20,530 14,200 Cash flows from investing activities: Purchases of property, plant and equipment (1,142) (1,730) --------- ------- Net cash used in investing activities (1,142) (1,730) Cash flows from financing activities: Reduction of debt (129,412) (38,177) Proceeds from debt financing 110,768 30,081 Distribution from Rayovac International Corporation, a domestic international sales company -- (3,587) Other (119) (533) --------- ------- Net cash used in financing activities (18,763) (12,216) --------- ------- Effect of exchange rate changes on cash and cash equivalents (5) (10) --------- ------- Net increase in cash and cash equivalents 620 244 Cash and cash equivalents, beginning of period 4,255 2,431 --------- ------- Cash and cash equivalents, end of period $4,875 $2,675 ========= ======= See accompanying notes which are an integral part of these statements. <PAGE> RAYOVAC CORPORATION Notes to Condensed Consolidated Financial Statements (Unaudited) 1 SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation: These financial statements have been prepared by Rayovac Corporation (the "Company"), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") and, in the opinion of the Company, include all adjustments (all of which are normal and recurring in nature) necessary to present fairly the financial position of the Company at December 28, 1996, results of operations and cash flows for the three month periods ended December 28, 1996 and December 30, 1995. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such SEC rules and regulations. The condensed consolidated balance sheet at September 30, 1996, has been derived from the annual audited financial statements. It is suggested that these condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto as of September 30, 1996. 2 INVENTORIES Inventories consist of the following (in thousands): Dec. 28, 1996 Sept. 30, 1996 ------------- -------------- Raw material $16,055 $21,325 Work-in-process 14,668 19,622 Finished goods 19,765 29,174 -------- -------- $50,488 $70,121 ======= ======= 3 COMMITMENTS AND CONTINGENCIES The Company has entered into agreements to purchase certain equipment and to pay annual royalties. In a December 1991 agreement, the Company committed to pay annual royalties of $1,500,000 for the first five years, beginning in 1993, plus $500,000 for each year thereafter, as long as the related equipment patents are enforceable (2012). In a March 1994 agreement, the Company committed to pay annual royalties of $500,000 for five years beginning in 1995. Additionally, the Company has committed to purchase tooling of $2,345,000 related to this equipment at an unspecified date in the future and $420,000 of manganese ore by March 1998. The Company has provided for the estimated costs associated with environmental remediation activities at some of its current and former manufacturing sites. In addition, the Company, together with other parties, has been designated a potentially responsible party of various third-party sites on the United States EPA National Priorities List (Superfund). The Company provides for the estimated costs of investigation and remediation of these sites when the amounts can be reasonably estimated. The actual cost incurred may vary from these estimates due to the inherent uncertainties involved. The Company believes that any additional liability in excess of the amounts provided of $1.8 million, which may result from resolution of these matters, will not have a material adverse effect on the financial condition, liquidity, or cash flows of the Company. <PAGE> 4 GUARANTOR SUBSIDIARY The following condensed consolidating financial data illustrates the composition of the consolidated financial statements. Investments in subsidiaries are accounted for by the Company on an unconsolidated basis and the Guarantor Subsidiary using the equity method for purposes of the consolidating presentation. Earnings of subsidiaries are therefore reflected in the Company's and Guarantor Subsidiary's investment accounts and earnings. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions. Separate financial statements of the Guarantor Subsidiary are not presented because management has determined that such financial statements would not be material to investors. <PAGE> RAYOVAC CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets As of December 28, 1996 (Unaudited) (In thousands) <TABLE> <CAPTION> -ASSETS- Guarantor Nonguarantor Consolidated Parent Subsidiary Subsidiaries Eliminations Total --------- ---------- ------------ ------------ ------------ <S> <C> <C> <C> <C> <C> Current assets: Cash and cash equivalents $2,940 $57 $1,878 -- $4,875 Receivables 69,246 88 20,696 (9,980) 80,050 Inventories 36,766 -- 14,423 (701) 50,488 Prepaid expenses and other 10,515 180 1,471 -- 12,166 --------- --------- -------- --------- --------- Total current assets 119,467 325 38,468 (10,681) 147,579 Property, plant and equipment, net 60,604 -- 7,435 -- 68,039 Deferred charges and other 16,925 -- 2,027 -- 18,952 Investment in subsidiaries 13,262 13,169 -- (26,431) -- --------- --------- -------- --------- --------- Total assets $210,258 $13,494 $47,930 ($37,112) $234,570 ========= ========= ======== ========= ========= -LIABILITIES AND SHAREHOLDERS' DEFICIT- Current liabilities: Current maturities of long-term debt $4,500 -- $6,519 -- $11,019 Accounts payable 34,751 -- 16,034 (9,668) 41,117 Accrued liabilities: -- -- -- Wages and benefits and other 27,434 26 7,133 -- 34,593 Recapitalization and other special charges 7,601 -- 4,294 -- 11,895 --------- --------- -------- --------- --------- Total current liabilities 74,286 26 33,980 (9,668) 98,624 Long-term debt, net of current maturities 203,100 -- 781 -- 203,881 Employee benefit obligations, net of current portion 12,875 -- -- -- 12,875 Other 1,268 206 -- -- 1,474 Shareholders' deficit: Common stock 500 -- 12,072 (12,072) 500 Additional paid-in capital 15,970 3,525 750 (4,275) 15,970 Foreign currency translation adjustment 2,745 2,745 2,745 (5,490) 2,745 Note receivable officer/shareholder (500) -- -- -- (500) Retained earnings 28,536 6,992 (2,398) (5,607) 27,523 --------- --------- -------- --------- --------- Less treasury stock (128,522) -- -- -- (128,522) --------- --------- -------- --------- --------- Total shareholders' deficit (81,271) 13,262 13,169 (27,444) (82,284) --------- --------- -------- --------- --------- Total liabilities and shareholders' deficit $210,258 $13,494 $47,930 ($37,112) $234,570 ========= ========= ======== ========= ========= </TABLE> <PAGE> RAYOVAC CORPORATION Condensed Consolidating Statements of Operations For the three-month period ended December 28, 1996 (Unaudited) (In thousands) <TABLE> <CAPTION> Guarantor Nonguarantor Consolidated Parent Subsidiary Subsidiaries Eliminations Total --------- ---------- ------------ ------------ ------------ <S> <C> <C> <C> <C> <C> Net sales $114,104 $-- $23,677 ($7,777) $130,004 Cost of goods sold 70,435 -- 16,366 (7,782) 79,019 --------- ------ ------- -------- -------- Gross profit 43,669 -- 7,311 5 50,985 Selling 23,124 -- 3,638 -- 26,762 General and administrative 6,003 (190) 1,786 5 7,604 Research and development 1,910 -- -- -- 1,910 Other special charges 1,500 -- 1,463 -- 2,963 --------- ------ ------- -------- -------- Total operating expenses 32,537 (190) 6,887 5 39,239 Income from operations 11,132 190 424 -- 11,746 Other expense: Interest expense 7,805 -- 169 -- 7,974 Equity in profit of subsidiary (150) (15) -- 165 -- Other expense (340) (17) 371 -- 14 --------- ------ ------- -------- -------- Income before income taxes 3,817 222 (116) (165) 3,758 Income taxes 1,437 72 (131) -- 1,378 --------- ------ ------- -------- -------- Net income $2,380 $150 $15 ($165) $2,380 ========= ====== ======= ======== ======== </TABLE> <PAGE> RAYOVAC CORPORATION AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows For the three-month period ended December 28, 1996 (Unaudited) (In thousands) <TABLE> <CAPTION> Guarantor Nonguarantor Consolidated Parent Subsidiary Subsidiaries Eliminations Total --------- ---------- ------------ ------------ ------------ <S> <C> <C> <C> <C> <C> Net cash provided by operating activities $21,234 $-- ($704) $-- $20,530 Cash flows from investing activities: Purchases of property, plant and equipment (929) -- (213) -- (1,142) ---------- ----- ------- ---- ------------- Net cash used in investing activities (929) -- (213) -- (1,142) Cash flows from financing activities: Reduction of debt (128,189) -- (1,223) -- (129,412) Proceeds from debt financing 107,841 -- 2,927 -- 110,768 Other -- -- (119) -- (119) ---------- ----- -------- ----- ------------- Net cash used in financing activities (20,348) -- 1,585 -- (18,763) ---------- ----- -------- ----- ------------- Effect of exchange rate changes on cash and cash equivalents -- -- (5) -- (5) ---------- ----- --------- ----- ------------- Net increase in cash and cash equivalents (43) -- 663 -- 620 Cash and cash equivalents, beginning of period 2,983 57 1,215 4,255 ---------- ----- -------- ----- ------------- Cash and cash equivalents, end of period $2,940 $57 $1,878 $-- $4,875 ========== ===== ======== ===== ============= </TABLE> <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 thereunto duly authorized. DATE: June 3, 1997 RAYOVAC CORPORATION By /s/ Kent J. Hussey ----------------------------- Kent J. Hussey Chief Financial Officer By /s/ James A. Broderick ----------------------------- James A. Broderick Vice President </TEXT> </DOCUMENT> </SEC-DOCUMENT> -----END PRIVACY-ENHANCED MESSAGE-----