-----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, GCzlF1w9ZtMvqVLfYAj62GGIR/nF7ws/RSOZK1/LzFMTZxAovqCGMpOgUILqtCGM ykhpMJHtlfVatIcrsJKMOA== 0000950005-98-000009.txt : 19980114 0000950005-98-000009.hdr.sgml : 19980114 ACCESSION NUMBER: 0000950005-98-000009 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19971031 ITEM INFORMATION: FILED AS OF DATE: 19980113 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: WATKINS JOHNSON CO CENTRAL INDEX KEY: 0000105006 STANDARD INDUSTRIAL CLASSIFICATION: SPECIAL INDUSTRY MACHINERY, NEC [3559] IRS NUMBER: 941402710 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: SEC FILE NUMBER: 001-05631 FILM NUMBER: 98505756 BUSINESS ADDRESS: STREET 1: 3333 HILLVIEW AVE CITY: PALO ALTO STATE: CA ZIP: 94304-1223 BUSINESS PHONE: 4154934141 MAIL ADDRESS: STREET 1: 3333 HILLVIEW AVENUE CITY: PALO ALTO STATE: CA ZIP: 94304-1223 8-K/A 1 AMENDMENT TO CURRENT REPORT SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________ FORM 8-K/A CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report: October 31, 1997 WATKINS-JOHNSON COMPANY - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) CALIFORNIA 1-5631 94-1402710 - -------------------------------------------------------------------------------- (State of Organization) (Commission Number) (IRS Employer I.D. Number) 3333 Hillview Avenue, Palo Alto, California 94304-1223 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (650) 493-4141 NOT APPLICABLE - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) Watkins-Johnson Company hereby amends Item 7 to read as follows, and the items shown as (b)(1) through (3) are enclosed herewith: ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (a) Financial Statements of Business Acquired. Not applicable. (b) Pro Forma Financial Information. (1) Unaudited Pro Forma Consolidated Condensed Statement of Operations for the nine-month period ended September 26, 1997. (2) Unaudited Pro Forma Consolidated Condensed Statement of Operations for the year ended December 31, 1996. (3) Unaudited Pro Forma Consolidated Condensed Balance Sheet as of September 26, 1997. (c) Exhibits. Other than the unaudited pro forma financial information listed as Item 7(b)(1) through (3), no exhibits are attached. Pursuant to the requirements of the Securities Exchange Act of 1934, Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. WATKINS-JOHNSON COMPANY By /s/W. Keith Kennedy, Jr. ----------------------------- W. Keith Kennedy, Jr. President 2 WATKINS-JOHNSON COMPANY UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION On October 31, 1997, Registrant sold all the outstanding shares of its wholly-owned subsidiary, originally named W-J TSMD, Inc. and later renamed Stellex Microwave Systems, Inc. ("SMS"), to TSMD Acquisition Corp., an affiliate of Mentmore Holding Corporation. Registrant had previously contributed its defense electronics, microwave components and subsystems business to SMS. The transaction was completed under a previously-announced Stock Purchase Agreement dated as of August 29, 1997. The following unaudited pro forma condensed consolidated balance sheet as of September 26, 1997 and the unaudited pro forma condensed consolidated statements of operations for the year ended December 31, 1996 and nine months ended September 26, 1997 give effect to the disposition of SMS. The pro forma condensed consolidated financial statements should be read in conjunction with the historical financial statements and the related notes thereto of registrant contained in its 1996 Annual Report on Form 10-K and its Quarterly Report on Form 10-Q for the quarter ended September 26, 1997. The pro forma information is presented for information purposes only and is not necessarily indicative of the results that would have been obtained had the disposition actually occurred on the dates assumed, nor is it necessarily indicative of the future results of operations. WATKINS-JOHNSON COMPANY AND SUBSIDIARIES UNAUDITED PRO FORMA CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS For the nine month period ended September 26, 1997
---Pro Forma Adjustments--- (Dollars in thousands, except per share Company Less Other Company amounts) Historical SMS(a) Adjustments Pro Forma - ------------------------------------------------------------------------------------------------------------------------------- Sales $ 286,971 $ (67,900) $ $ 219,071 - ------------------------------------------------------------------------------------------------------------------------------- Costs and expenses: Cost of goods sold 187,563 (47,900) 139,663 Selling and administrative 52,144 (7,500) (800)(b) 43,844 Research and development 34,022 (1,600) 32,422 - ------------------------------------------------------------------------------------------------------------------------------- 273,729 (57,000) (800) 215,929 - ------------------------------------------------------------------------------------------------------------------------------- Income from operations 13,242 (10,900) 800 3,142 Interest and other income (expense)--net 1,067 1,067 Interest expense (1,048) (1,048) - ------------------------------------------------------------------------------------------------------------------------------- Income from operations before Federal and foreign income taxes 13,261 (10,900) 800 3,161 Federal and foreign income taxes (4,111) 4,200 (800)(b) (885) (174)(c) - ------------------------------------------------------------------------------------------------------------------------------- Net income $ 9,150 $ (6,700) $ (174) $ 2,276 =============================================================================================================================== Fully diluted net income per share $ 1.07 $ (0.78) $ (0.02) $ 0.27 Average common and equivalent shares outstanding 8,572,000 8,572,000 8,572,000 8,572,000 Notes to Unaudited Pro Forma Consolidated Condensed Statement of Operations (a) To remove revenues and expenses of SMS operations. (b) To remove SMS's state tax expense included in the Company's general and administrative expenses consistent with the Company's current reporting practice. (c) The SMS operating results reflect a provision for income taxes as if SMS was a separate taxpayer utilizing federal and state statutory tax rates. For pro forma purposes, tax expense was recalculated on a pro forma basis for the Company without SMS. This adjustment represents the tax difference arising from this with and without calculation.
2 WATKINS-JOHNSON COMPANY AND SUBSIDIARIES UNAUDITED PRO FORMA CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS For the year ended December 31, 1996
---Pro Forma Adjustments--- (Dollars in thousands, except per share Company Less Other Company amounts) Historical SMS(a) Adjustments Pro Forma - ------------------------------------------------------------------------------------------------------------------------------- Sales $ 438,319 $ (89,200) $ $ 349,119 - ------------------------------------------------------------------------------------------------------------------------------- Costs and expenses: Cost of goods sold 298,656 (68,100) 230,556 Selling and administrative 78,075 (11,100) (400)(b) 66,575 Research and development 56,675 (3,500) 53,175 - ------------------------------------------------------------------------------------------------------------------------------- 433,406 (82,700) (400) 350,306 - ------------------------------------------------------------------------------------------------------------------------------- Income from operations 4,913 (6,500) 400 (1,187) Interest and other income (expense)--net 980 980 Interest expense (1,574) (1,574) - ------------------------------------------------------------------------------------------------------------------------------- Income from operations before Federal and foreign income taxes 4,319 (6,500) 400 (1,781) Federal and foreign income taxes (1,285) 2,500 (400)(b) 570 (245)(c) - ------------------------------------------------------------------------------------------------------------------------------- Net income $ 3,034 $ (4,000) $ (245) $ (1,211) =============================================================================================================================== Fully diluted net income per share $ 0.36 $ (0.47) $ (0.03) $ (0.14) Average common and equivalent shares outstanding 8,541,000 8,541,000 8,541,000 8,541,000 Notes to Unaudited Pro Forma Consolidated Condensed Statement of Operations (a) To remove revenues and expenses of SMS operations. (b) To remove SMS's state tax expense included in the Company's general and administrative expenses consistent with the Company's current reporting practice. (c) The SMS operating results reflect a provision for income taxes as if SMS was a separate taxpayer utilizing federal and state statutory tax rates. For pro forma purposes, tax expense was recalculated on a pro forma basis for the Company without SMS. This adjustment represents the tax difference arising from this with and without calculation.
3 WATKINS-JOHNSON COMPANY AND SUBSIDIARIES UNAUDITED PRO FORMA CONSOLIDATED CONDENSED BALANCE SHEET As of September 26, 1997
---Pro Forma Adjustments--- (Dollars in thousands, except per share Company Less Other Company amounts) Historical SMS(a) Adjustments Pro forma - ----------------------------------------------------------------------------------------------------------------------------------- ASSETS Current assets: Cash and equivalents $ 43,418 $ $ 82,185(b) $ 125,603 Receivables 71,695 (15,500) 56,195 Inventories 68,467 (15,100) 53,367 Deferred income taxes 18,440 (3,000) 15,440 Other 4,417 (300) 8,715(c) 12,832 - ----------------------------------------------------------------------------------------------------------------------------------- Total current assets 206,437 (33,900) 90,900 263,437 - ----------------------------------------------------------------------------------------------------------------------------------- Property, plant, and equipment 228,538 (45,100) 183,438 Accumulated depreciation and amortization (125,587) 40,800 (84,787) - ----------------------------------------------------------------------------------------------------------------------------------- Property, plant, and equipment--net 102,951 (4,300) 98,651 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- Other assets 3,465 3,465 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- Net assets of SMS operations 22,500 (22,500)(c) - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- $ 312,853 $ (15,700) $ 68,400 $ 365,553 =================================================================================================================================== LIABILITIES AND SHAREOWNERS' EQUITY Current liabilities: Payables $ 18,449 (2,400) $ 16,049 Accrued liabilities 60,160 (12,300) 14,550(d) 83,910 21,500(e) - ----------------------------------------------------------------------------------------------------------------------------------- Total current liabilities 78,609 (14,700) 36,050 99,959 - ----------------------------------------------------------------------------------------------------------------------------------- Long-term obligations 36,858 (1,000) 35,858 - ----------------------------------------------------------------------------------------------------------------------------------- Shareowners' equity: Common stock 40,191 40,191 Retained earnings 157,195 32,350(f) 189,545 - ----------------------------------------------------------------------------------------------------------------------------------- Total shareowners' equity 197,386 32,350 229,736 - ----------------------------------------------------------------------------------------------------------------------------------- $ 312,853 $ (15,700) $ 68,400 $ 365,553 =================================================================================================================================== 4 Notes to Unaudited Pro Forma Consolidated Condensed Balance Sheet (a) To remove assets and liabilities of the SMS operations and reflect the net assets on the balance sheet as net assets of SMS operations. (b) To reflect cash proceeds from the sale of SMS. (c) To reflect net assets of SMS sold and record the net current assets retained as part of the purchase price consideration. (d) To accrue anticipated costs in connection with the sale of SMS. (e) To accrue anticipated income taxes due in connection with the sale of SMS. (f) To adjust retained earnings to reflect the net gain on the sale of SMS.
5 -----END PRIVACY-ENHANCED MESSAGE-----