UNITED STATES | ||
SECURITIES AND EXCHANGE COMMISSION | ||
Washington, D.C. 20549 | ||
FORM 8-K/A | ||
(Amendment No. 1) |
Delaware | 001-37427 | 47-3574483 | ||
(State or other jurisdiction | (Commission | (IRS Employer | ||
of incorporation) | File Number) | Identification No.) |
2600 West Big Beaver Road, Suite 555 Troy, Michigan | 48084 | |
(Address of principal executive offices) | (Zip Code) |
Not Applicable | ||
(Former name or former address, if changed since last report.) |
Item 9.01. | Financial Statements and Exhibits. |
Exhibit Number | Description | |
23.1 | Consent of PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft. | |
99.1 | Audited consolidated balance sheets of WESTFALIA-Automotive Holding GmbH, Rheda-Wiedenbrück/Germany as of September 30, 2016 and 2015, and audited consolidated income statements, cash flows and shareholders’ equity of WESTFALIA-Automotive Holding GmbH, Rheda-Wiedenbrück/Germany for the fiscal years ended September 30, 2016 and 2015. | |
99.2 | Unaudited pro forma condensed combined balance sheet as of September 30, 2016 and unaudited pro forma condensed combined statements of operations for the nine months ended September 30, 2016 and the year ended December 31, 2015. |
HORIZON GLOBAL CORPORATION | ||||||
Date: | December 21, 2016 | By: | /s/ David G. Rice | |||
Name: | David G. Rice | |||||
Title: | Chief Financial Officer |
Exhibit Number | Description | |
23.1 | Consent of PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft. | |
99.1 | Audited consolidated balance sheets of WESTFALIA-Automotive Holding GmbH, Rheda-Wiedenbrück/Germany as of September 30, 2016 and 2015, and audited consolidated income statements, cash flows and shareholders’ equity of WESTFALIA-Automotive Holding GmbH, Rheda-Wiedenbrück/Germany for the fiscal years ended September 30, 2016 and 2015. | |
99.2 | Unaudited pro forma condensed combined balance sheet as of September 30, 2016 and unaudited pro forma condensed combined statements of operations for the nine months ended September 30, 2016 and the year ended December 31, 2015. |
/s/ Thomas Dräger | /s/ ppa. Christoph Hölscher | ||
Wirtschaftsprüfer | Wirtschaftsprüfer | ||
(German Public Auditor) | (German Public Auditor) |
/s/ Thomas Dräger | /s/ ppa. Christoph Hölscher | ||
Wirtschaftsprüfer | Wirtschaftsprüfer | ||
(German Public Auditor) | (German Public Auditor) |
September 30, 2016 | September 30, 2015 | |||||||
Assets | ||||||||
A. Fixed assets | ||||||||
I. Intangible assets | ||||||||
1. Internally generated industrial and similar rights and assets | € | 9,452,698.09 | € | 4,674,212.09 | ||||
2. Purchased franchises, industrial rights and similar rights and assets, and licenses in such rights and assets | 6,955,200.35 | 6,522,256.24 | ||||||
3. Goodwill | 11,228,792.17 | 12,489,255.47 | ||||||
27,636,690.61 | 23,685,723.80 | |||||||
II. Property, plant and equipment | ||||||||
1. Land, land rights and buildings, including buildings on third-party land | 13,082,699.27 | 13,190,686.25 | ||||||
2. Plant and machinery | 6,675,176.63 | 5,182,542.80 | ||||||
3. Other equipment, furniture and fixtures | 2,138,594.69 | 1,959,880.38 | ||||||
4. Prepayments and assets under construction | 5,654,925.40 | 4,450,144.02 | ||||||
27,551,395.99 | 24,783,253.45 | |||||||
III. Financial assets | ||||||||
Equity investments | 2.00 | 2.00 | ||||||
55,188,088.60 | 48,468,979.25 | |||||||
B. Current assets | ||||||||
I. Inventories | ||||||||
1. Raw materials, consumables and supplies | 6,744,563.95 | 4,936,331.08 | ||||||
2. Work in process | 7,586,813.77 | 4,809,908.30 | ||||||
3. Finished goods and merchandise | 10,528,581.14 | 8,038,436.31 | ||||||
4. Prepayments | 92,269.46 | 24,844.81 | ||||||
24,952,228.32 | 17,809,520.50 | |||||||
II. Receivables and other assets | ||||||||
1. Trade receivables | 10,359,575.04 | 9,532,124.87 | ||||||
2. Other assets | 6,403,564.65 | 5,724,342.05 | ||||||
16,763,139.69 | 15,256,466.92 | |||||||
III. Cash on hand, bank balances and checks | 6,716,242.58 | 8,253,452.28 | ||||||
48,431,610.59 | 41,319,439.70 | |||||||
C. Prepaid expenses | 767,641.01 | 717,267.23 | ||||||
D. Capital deficit | 87,112,069.72 | 86,034,833.28 | ||||||
€ | 191,499,409.92 | € | 176,540,519.46 |
September 30, 2016 | September 30, 2015 | |||||||
Equity and Liabilities | ||||||||
A. Equity | ||||||||
I. Subscribed capital | € | 348,981.00 | € | 348,981.00 | ||||
II. Capital reserves | 232,897.04 | 232,897.04 | ||||||
III. Currency translation/exchange differences | (278,675.46 | ) | (99,272.94 | ) | ||||
IV. Minority interests | (517,488.07 | ) | (131,950.09 | ) | ||||
V. Loss carryforward | (86,385,488.29 | ) | (81,947,316.70 | ) | ||||
VI. Consolidated net loss for the year | (512,295.94 | ) | (4,438,171.59 | ) | ||||
VII. Capital deficit | 87,112,069.72 | 86,034,833.28 | ||||||
— | — | |||||||
B. Provisions | ||||||||
1. Provisions for pensions and similar obligations | 3,632,565.59 | 3,444,094.67 | ||||||
2. Tax provisions | 396,435.83 | 302,116.51 | ||||||
3. Other provisions | 17,312,431.98 | 15,052,049.07 | ||||||
21,341,433.40 | 18,798,260.25 | |||||||
C. Liabilities | ||||||||
1. Liabilities to banks | 45,305,215.90 | 46,867,715.90 | ||||||
2. Trade payables | 15,374,792.59 | 9,880,520.40 | ||||||
3. Liabilities to shareholders | 97,628,475.85 | 95,947,533.22 | ||||||
4. Other liabilities (thereof from taxes €1,209,702.87 and €932,334.28 as of September 30, 2016 and 2015, respectively) (thereof for social security €349,112.97 and €321,289.68 as of September 30, 2016 and 2015, respectively) | 8,280,466.70 | 3,099,777.21 | ||||||
166,588,951.04 | 155,795,546.73 | |||||||
D. Deferred income | 1,169,934.25 | 12,897.35 | ||||||
E. Deferred tax liabilities | 2,399,091.23 | 1,933,815.13 | ||||||
€ | 191,499,409.92 | € | 176,540,519.46 |
Fiscal year ended September 30, | ||||||||
2016 | 2015 | |||||||
1. Revenue | € | 208,322,448.14 | € | 189,913,619.10 | ||||
2. (Increase) decrease in finished goods and work in process | (2,442,530.64 | ) | 1,365,050.05 | |||||
3. Other own work capitalized | 9,501,172.96 | 8,178,243.00 | ||||||
4. Other operating income | 1,579,288.44 | 1,359,020.51 | ||||||
5. Cost of materials | ||||||||
a) Cost of raw materials, consumables and supplies and of purchased merchandise | 102,143,855.37 | 97,809,581.55 | ||||||
b) Cost of purchased services | 12,044,632.31 | 8,260,443.07 | ||||||
6. Personnel expenses | ||||||||
a) Wages and salaries | 46,330,099.31 | 42,374,673.98 | ||||||
b) Social security, pensions and other benefit costs (thereof for old-age pensions: €1,398,775.27 and €1,532,261.86 for the fiscal year ended September 30, 2016 and 2015, respectively) | 9,849,544.25 | 9,221,497.93 | ||||||
7. Amortization of intangible assets and depreciation of property, plant and equipment | 6,690,306.37 | 5,990,404.17 | ||||||
8. Other operating expenses | 33,102,735.69 | 29,157,272.91 | ||||||
9. Other interest and similar income | 7,981.32 | 3,697.32 | ||||||
10. Interest and similar expenses | 4,762,954.59 | 8,514,014.07 | ||||||
11. Result from ordinary activities | 2,044,232.33 | (508,257.70 | ) | |||||
12. Extraordinary expenses/extraordinary result | (1,640,455.79 | ) | (2,210,399.50 | ) | ||||
13. Income taxes (thereof from the change in deferred taxes: €465,276.10 and €1,280,500.42 for the fiscal years ended September 30, 2016 and 2015, respectively) | 1,170,804.16 | 1,691,512.93 | ||||||
14. Other taxes | 130,385.82 | 176,083.96 | ||||||
15. Consolidated net loss for the year | (897,413.44 | ) | (4,586,254.09 | ) | ||||
16 Minority interests | (385,117.50 | ) | (148,082.50 | ) | ||||
17. Consolidated net loss for the year | € | (512,295.94 | ) | € | (4,438,171.59 | ) |
Fiscal year ended September 30, | ||||||||
2016 | 2015 | |||||||
(euros in thousands) | ||||||||
Consolidated net loss for the year | € | (897 | ) | € | (4,586 | ) | ||
Amortization, depreciation and write-downs of fixed assets | 6,690 | 5,990 | ||||||
Increase (decrease) in long-term and mid-term provisions | 280 | (9 | ) | |||||
Cash Flow According to DVFA/SG | 6,073 | 1,395 | ||||||
Gain from the disposal of fixed assets | (20 | ) | (153 | ) | ||||
Increase (decrease) in short-term provisions | 2,170 | (452 | ) | |||||
(Increase) decrease in inventories, trade receivables and other assets that cannot be allocated to investing or financing activities | (11,925 | ) | 345 | |||||
Increase in trade payables and other liabilities that cannot be allocated to investing or financing activities | 10,672 | 3,669 | ||||||
Expenses from extraordinary items | 1,640 | — | ||||||
Income tax expense | 1,171 | — | ||||||
Interest income received | 4,755 | — | ||||||
Income tax payments | 12 | — | ||||||
Cash paid for extraordinary items | (1,640 | ) | — | |||||
Cash Flows from Operating Activities | 12,908 | 4,804 | ||||||
Cash paid for investments in intangible assets | (6,972 | ) | (6,074 | ) | ||||
Cash received from disposals of intangible assets | 197 | 600 | ||||||
Cash paid for investments in property, plant and equipment | (6,591 | ) | (5,930 | ) | ||||
Cash received from disposals of property, plant and equipment | (43 | ) | — | |||||
Interest received | 8 | — | ||||||
Cash Flows used for Investing Activities | (13,401 | ) | (11,404 | ) | ||||
Cash received from capital increases | — | 233 | ||||||
Cash repayments of loans | (1,563 | ) | (1,843 | ) | ||||
Cash received from subsidies/grants | 1,160 | — | ||||||
Cash received from shareholder loans | — | 9,768 | ||||||
Change of financing from factoring | 2,620 | 3,459 | ||||||
Interest paid | (3,082 | ) | — | |||||
Cash Flows (used for) from Financing Activities | (865 | ) | 11,617 | |||||
Change in Cash and Cash Equivalents | (1,358 | ) | 5,017 | |||||
Change in cash and cash equivalents due to exchange rates | (179 | ) | — | |||||
Cash and cash equivalents at the beginning of the fiscal year | 8,253 | 3,236 | ||||||
Cash and Cash Equivalents at the End of the Fiscal Year | € | 6,716 | € | 8,253 |
September 30, 2016 | September 30, 2015 | |||||||
(euros in thousands) | ||||||||
Cash on hand and checks | € | 65 | € | — | ||||
Bank balances (current accounts) | 6,651 | 8,253 | ||||||
€ | 6,716 | € | 8,253 |
Parent company | Minority interests | Consolidated equity | |||||||||||||||||||||||||
Subscribed capital | Capital reserves | Earned group equity | Accumulated other comprehensive income | Equity of parent company | Equity of minority interests | ||||||||||||||||||||||
Currency translation reserve | |||||||||||||||||||||||||||
As of September 30, 2014 | € | 116,327.00 | € | 232,897.04 | € | (81,947,316.70 | ) | € | (175,543.22 | ) | € | (81,773,635.88 | ) | € | 14,941.01 | € | (81,758,694.87 | ) | |||||||||
Issue of shares | 232,654.00 | — | — | — | 232,654.00 | — | 232,654.00 | ||||||||||||||||||||
Other changes | — | — | — | 76,270.28 | 76,270.28 | 1,191.40 | 77,461.68 | ||||||||||||||||||||
Consolidated net loss for the year | — | — | (4,438,171.59 | ) | — | (4,438,171.59 | ) | (148,082.50 | ) | (4,586,254.09 | ) | ||||||||||||||||
As of September 30, 2015 | € | 348,981.00 | € | 232,897.04 | € | (86,385,488.29 | ) | € | (99,272.94 | ) | € | (85,902,883.19 | ) | € | (131,950.09 | ) | € | (86,034,833.28 | ) | ||||||||
Other changes | — | — | — | (179,402.52 | ) | (179,402.52 | ) | (420.48 | ) | (179,823.00 | ) | ||||||||||||||||
Consolidated net loss for the year | — | — | (512,295.94 | ) | — | (512,295.94 | ) | (385,117.50 | ) | (897,413.44 | ) | ||||||||||||||||
As of September 30, 2016 | € | 348,981.00 | € | 232,897.04 | € | (86,897,784.23 | ) | € | (278,675.46 | ) | € | (86,594,581.65 | ) | € | (517,488.07 | ) | € | (87,112,069.72 | ) |
Acquisition and production cost | |||||||||||||||||||||||||||
October 1, 2015 | Addition | Reclassifications | Disposal | Exchange rate differences | Changes in the basis of consolidation | September 30, 2016 | |||||||||||||||||||||
Intangible assets | |||||||||||||||||||||||||||
1. Internally generated industrial rights and similar rights and assets | € | 5,023,508.98 | € | 5,400,804.00 | € | — | € | — | € | — | € | — | € | 10,424,312.98 | |||||||||||||
2. Purchased franchises, industrial rights and similar rights and assets, and licenses in such rights and assets | 59,822,285.42 | 1,576,126.31 | 5,058.29 | 208,644.81 | (1,059.09 | ) | — | 61,193,766.12 | |||||||||||||||||||
3. Goodwill | 52,741,334.21 | — | — | — | (9,595.05 | ) | — | 52,731,739.16 | |||||||||||||||||||
117,587,128.61 | 6,976,930.31 | 5,058.29 | 208,644.81 | (10,654.14 | ) | — | 124,349,818.26 | ||||||||||||||||||||
Property, plant and equipment | |||||||||||||||||||||||||||
1. Land, land rights and buildings, including buildings on third-party land | 15,004,388.90 | 481,802.80 | — | 15,629.76 | (67,324.20 | ) | — | 15,403,237.74 | |||||||||||||||||||
2. Plant and machinery | 13,734,461.26 | 3,349,004.94 | 625,430.65 | 469,431.93 | (26,204.06 | ) | — | 17,213,260.86 | |||||||||||||||||||
3. Other equipment, furniture and fixtures | 5,805,917.87 | 975,394.51 | 59,914.47 | 90,022.84 | (11,731.39 | ) | — | 6,739,472.62 | |||||||||||||||||||
4. Prepayments and assets under construction | 4,450,144.02 | 1,895,184.79 | (690,403.41 | ) | — | — | — | 5,654,925.40 | |||||||||||||||||||
38,994,912.05 | 6,701,387.04 | (5,058.29 | ) | 575,084.53 | (105,259.65 | ) | — | 45,010,896.62 | |||||||||||||||||||
Financial assets | |||||||||||||||||||||||||||
Equity investments | 2.00 | — | — | — | — | — | 2.00 | ||||||||||||||||||||
€ | 156,582,042.66 | € | 13,678,317.35 | € | — | € | 783,729.34 | € | (115,913.79 | ) | € | — | € | 169,360,716.88 |
Amortization, depreciation and write-downs | Net book values | ||||||||||||||||||||||||||||||||||
October 1, 2015 | Addition | Reclassifications | Disposal | Exchange rate differences | Changes in the basis of consolidation | September 30, 2016 | September 30, 2016 | September 30, 2015 | |||||||||||||||||||||||||||
Intangible assets | |||||||||||||||||||||||||||||||||||
1. Internally generated industrial rights and similar rights and assets | € | 349,296.89 | € | 622,318.00 | € | — | € | — | € | — | € | — | € | 971,614.89 | € | 9,452,698.09 | € | 4,674,212.09 | |||||||||||||||||
2. Purchased franchises, industrial rights and similar rights and assets, and licenses in such rights and assets | 53,300,029.18 | 947,742.26 | — | 8,593.35 | (612.32 | ) | — | 54,238,565.77 | 6,955,200.35 | 6,522,256.24 | |||||||||||||||||||||||||
3. Goodwill | 40,252,078.74 | 1,253,999.73 | — | — | (3,131.48 | ) | — | 41,502,946.99 | 11,228,792.17 | 12,489,255.47 | |||||||||||||||||||||||||
93,901,404.81 | 2,824,059.99 | — | 8,593.35 | (3,743.80 | ) | — | 96,713,127.65 | 27,636,690.61 | 23,685,723.80 | ||||||||||||||||||||||||||
Property, plant and equipment | |||||||||||||||||||||||||||||||||||
1. Land, land rights and buildings, including buildings on third-party land | 1,813,702.65 | 544,754.63 | — | 15,629.72 | (22,289.09 | ) | — | 2,320,538.47 | 13,082,699.27 | 13,190,686.25 | |||||||||||||||||||||||||
2. Plant and machinery | 8,551,918.46 | 2,470,505.31 | — | 458,046.67 | (26,292.87 | ) | — | 10,538,084.23 | 6,675,176.63 | 5,182,542.80 | |||||||||||||||||||||||||
3. Other equipment, furniture and fixtures | 3,846,037.49 | 850,986.44 | — | 89,945.74 | (6,200.26 | ) | — | 4,600,877.93 | 2,138,594.69 | 1,959,880.38 | |||||||||||||||||||||||||
4. Prepayments and assets under construction | — | — | — | — | — | — | — | 5,654,925.40 | 4,450,144.02 | ||||||||||||||||||||||||||
14,211,658.60 | 3,866,246.38 | — | 563,622.13 | (54,782.22 | ) | — | 17,459,500.63 | 27,551,395.99 | 24,783,253.45 | ||||||||||||||||||||||||||
Financial assets | |||||||||||||||||||||||||||||||||||
Equity investments | — | — | — | — | — | — | — | 2.00 | 2.00 | ||||||||||||||||||||||||||
€ | 108,113,063.41 | € | 6,690,306.37 | € | — | € | 572,215.48 | € | (58,526.02 | ) | € | — | € | 114,172,628.28 | € | 55,188,088.60 | € | 48,468,979.25 |
Acquisition and production cost | |||||||||||||||||||||||||||
October 1, 2014 | Addition | Reclassifications | Disposal | Exchange rate differences | Changes in the basis of consolidation | September 30, 2015 | |||||||||||||||||||||
Intangible assets | |||||||||||||||||||||||||||
1. Internally generated industrial rights and similar rights and assets | € | — | € | 5,023,508.98 | € | — | € | — | € | — | € | — | € | 5,023,508.98 | |||||||||||||
2. Purchased franchises, industrial rights and similar rights and assets, and licenses in such rights and assets | 59,981,889.96 | 1,050,205.76 | — | 533.17 | (10,331.11 | ) | (1,198,946.02 | ) | 59,822,285.42 | ||||||||||||||||||
3. Goodwill | 53,308,296.94 | — | — | — | 3,435.88 | (570,398.61 | ) | 52,741,334.21 | |||||||||||||||||||
113,290,186.90 | 6,073,714.74 | — | 533.17 | (6,895.23 | ) | (1,769,344.63 | ) | 117,587,128.61 | |||||||||||||||||||
Property, plant and equipment | |||||||||||||||||||||||||||
1. Land, land rights and buildings, including buildings on third-party land | 17,075,596.81 | 198,645.00 | — | 2,192,291.25 | (57,359.40 | ) | (20,202.26 | ) | 15,004,388.90 | ||||||||||||||||||
2. Plant and machinery | 10,661,334.41 | 2,941,570.22 | 1,141,771.45 | 546,779.84 | (81,816.02 | ) | (381,618.96 | ) | 13,734,461.26 | ||||||||||||||||||
3. Other equipment, furniture and fixtures | 5,962,866.14 | 700,195.76 | (690,167.99 | ) | 84,704.97 | (6,205.65 | ) | (76,065.42 | ) | 5,805,917.87 | |||||||||||||||||
4. Prepayments and assets under construction | 2,812,454.86 | 2,089,292.62 | (451,603.46 | ) | — | — | — | 4,450,144.02 | |||||||||||||||||||
36,512,252.22 | 5,929,703.60 | — | 2,823,776.06 | (145,381.07 | ) | (477,886.64 | ) | 38,994,912.05 | |||||||||||||||||||
Financial assets | |||||||||||||||||||||||||||
Equity investments | — | 2.00 | — | — | — | — | 2.00 | ||||||||||||||||||||
€ | 149,802,439.12 | € | 12,003,420.34 | € | — | € | 2,824,309.23 | € | (152,276.30 | ) | € | (2,247,231.27 | ) | € | 156,582,042.66 |
Amortization, depreciation and write-downs | Net book values | ||||||||||||||||||||||||||||||||||
October 1, 2014 | Addition | Reclassifications | Disposal | Exchange rate differences | Changes in the basis of consolidation | September 30, 2015 | September 30, 2015 | September 30, 2014 | |||||||||||||||||||||||||||
Intangible assets | |||||||||||||||||||||||||||||||||||
1. Internally generated industrial rights and similar rights and assets | € | — | € | 349,296.89 | € | — | € | — | € | — | € | — | € | 349,296.89 | € | 4,674,212.09 | € | — | |||||||||||||||||
2. Purchased franchises, industrial rights and similar rights and assets, and licenses in such rights and assets | 53,682,035.52 | 827,336.13 | — | 475.00 | (10,387.93 | ) | (1,198,479.54 | ) | 53,300,029.18 | 6,522,256.24 | 6,299,854.44 | ||||||||||||||||||||||||
3. Goodwill | 39,567,771.10 | 1,254,669.96 | — | — | 36.29 | (570,398.61 | ) | 40,252,078.74 | 12,489,255.47 | 13,740,525.84 | |||||||||||||||||||||||||
93,249,806.62 | 2,431,302.98 | — | 475.00 | (10,351.64 | ) | (1,768,878.15 | ) | 93,901,404.81 | 23,685,723.80 | 20,040,380.28 | |||||||||||||||||||||||||
Property, plant and equipment | |||||||||||||||||||||||||||||||||||
1. Land, land rights and buildings, including buildings on third-party land | 3,024,354.26 | 599,533.03 | — | 1,760,809.40 | (29,172.98 | ) | (20,202.26 | ) | 1,813,702.65 | 13,190,686.25 | 14,051,242.55 | ||||||||||||||||||||||||
2. Plant and machinery | 6,928,165.45 | 2,064,909.17 | 567,171.74 | 556,091.24 | (70,617.70 | ) | (381,618.96 | ) | 8,551,918.46 | 5,182,542.80 | 3,733,168.96 | ||||||||||||||||||||||||
3. Other equipment, furniture and fixtures | 3,672,129.15 | 894,658.99 | (567,171.74 | ) | 77,142.08 | (371.41 | ) | (76,065.42 | ) | 3,846,037.49 | 1,959,880.38 | 2,290,736.99 | |||||||||||||||||||||||
4. Prepayments and assets under construction | — | — | — | — | — | — | — | 4,450,144.02 | 2,812,454.86 | ||||||||||||||||||||||||||
13,624,648.86 | 3,559,101.19 | — | 2,394,042.72 | (100,162.09 | ) | (477,886.64 | ) | 14,689,545.24 | 24,783,253.45 | 22,887,603.36 | |||||||||||||||||||||||||
Financial assets | |||||||||||||||||||||||||||||||||||
Equity investments | — | — | — | — | — | — | — | 2.00 | — | ||||||||||||||||||||||||||
€ | 106,874,455.48 | € | 5,990,404.17 | € | — | € | 2,394,517.72 | € | (110,513.73 | ) | € | (2,246,764.79 | ) | € | 110,359,828.20 | € | 48,468,979.25 | € | 42,927,983.64 |
Name and location of registered office | Share in capital % | |
WESTFALIA Automotive GmbH, Rheda-Wiedenbrück | 100 | |
WESTFALIA American Hitch, Inc., Greenwood South Carolina, USA | 100 | |
Heinrichs Beteiligungsgesellschaft mbH, Rheda-Wiedenbrück | 100 | |
WESTFALIA-Automotive Beteiligungsgesellschaft mbH, Rheda-Wiedenbrück | 100 | |
WESTFALIA UK Ltd., Bristol, UK | 100 | |
WESTFALIA-Automotive S.r.L., Milan, Italy | 100 | |
WESTFALIA-Automotive Polska Sp. z o.o., Wroclaw, Poland | 100 | |
WESTFALIA-Automotive OOO, Moscow, Russia | 100 | |
WESTFALIA-Automotive SAS, Luneray, France *) | 100 | |
SIARR SAS, Luneray, France **) | 100 | |
WESTFALIA Nordic AB, Hallstahammar, Sweden *) | 100 | |
Monoflex Nordic AB, Hallstahammar, Sweden ***) | 100 | |
Westfalia-Automotive Denmark ApS, Fredericia/Denmark ****) | 100 | |
Portikus Grundstücksverwaltungsgesellschaft mbH & Co. Vermietungs KG, Rheda-Wiedenbrück*****) | 100 |
Due in < one year | Due in one to five years | Due in > five years | Total | |||||||||||||
Liabilities to banks | € | 35,416,923.07 | € | 3,255,773.22 | € | 6,632,519.61 | € | 45,305,215.90 | ||||||||
(prior year) | (1,562,500.00 | ) | (37,795,918.93 | ) | (7,509,296.97 | ) | (46,867,715.90 | ) | ||||||||
Trade payables | 15,374,792.59 | — | — | 15,374,792.59 | ||||||||||||
(prior year) | (9,880,520.40 | ) | — | — | (9,880,520.40 | ) | ||||||||||
Liabilities to shareholders | — | 97,628,475.85 | — | 97,628,475.85 | ||||||||||||
(prior year) | — | (95,947,533.22 | ) | — | (95,947,533.22 | ) | ||||||||||
Other liabilities | 5,097,001.89 | 3,183,464.81 | — | 8,280,466.70 | ||||||||||||
(prior year) | (3,099,777.21 | ) | — | — | (3,099,777.21 | ) | ||||||||||
Total | € | 55,888,717.55 | € | 104,067,713.88 | € | 6,632,519.61 | € | 166,588,951.04 | ||||||||
(prior year) | € | (14,542,797.61 | ) | € | (133,743,452.15 | ) | € | (7,509,296.97 | ) | € | (155,795,546.73 | ) |
Due in < one year | Due in one to five years | Due in > five years | Total | |||||||||||||
(euros in thousands) | ||||||||||||||||
Land and buildings | € | 167 | € | 365 | € | 78 | € | 610 | ||||||||
(prior year) | — | — | — | — | ||||||||||||
Machines | 954 | 1,436 | — | 2,390 | ||||||||||||
(prior year) | (1,322 | ) | (2,344 | ) | (16 | ) | (3,682 | ) | ||||||||
Fixtures | 483 | 580 | — | 1,063 | ||||||||||||
(prior year) | (249 | ) | (357 | ) | — | (606 | ) | |||||||||
€ | 1,604 | € | 2,381 | € | 78 | € | 4,063 | |||||||||
(prior year) | € | (1,571 | ) | € | (2,701 | ) | € | (16 | ) | € | (4,288 | ) |
Fiscal year ended September 30, | ||||||||||||||
2016 | 2015 | |||||||||||||
Revenue | % of Revenue | Revenue | % of Revenue | |||||||||||
(euros in thousands) | ||||||||||||||
Geographical segments | ||||||||||||||
Germany | € | 119,464 | 57.3 | % | € | 107,884 | 56.8 | % | ||||||
Other EU countries | 90,533 | 43.5 | % | 83,822 | 44.1 | % | ||||||||
Rest of world | 5,427 | 2.6 | % | 3,943 | 2.1 | % | ||||||||
215,424 | 103.4 | % | 195,649 | 103.0 | % | |||||||||
Sales deductions | 7,102 | 3.4 | % | 5,735 | 3.0 | % | ||||||||
€ | 208,322 | 100.0 | % | € | 189,914 | 100.0 | % |
Fiscal year ended September 30, | ||||||||||||||
2016 | 2015 | |||||||||||||
Revenue | % of Revenue | Revenue | % of Revenue | |||||||||||
(euros in thousands) | ||||||||||||||
Customer segments | ||||||||||||||
Original Equipment Manufacturer (OEM) | € | 106,495 | 51.1 | % | € | 90,424 | 47.6 | % | ||||||
Original Equipment Supplier (OES) | 32,466 | 15.6 | % | 37,473 | 19.7 | % | ||||||||
Independent Aftermarket (IAM) | 65,378 | 31.4 | % | 60,126 | 31.7 | % | ||||||||
Other | 11,085 | 5.3 | % | 7,626 | 4.0 | % | ||||||||
215,424 | 103.4 | % | 195,649 | 103.0 | % | |||||||||
Sales deductions | 7,102 | 3.4 | % | 5,735 | 3.0 | % | ||||||||
€ | 208,322 | 100.0 | % | € | 189,914 | 100.0 | % |
▪ | Dr. Bernd Welzel, Bramsche, engineer (until December 31, 2016) |
▪ | Frank Klebedanz, Gladbeck, engineer |
▪ | Jürgen Lotter, Rösrath, industrial engineer |
▪ | Marcus Erger, Wiehl, engineer (since May 1, 2016) |
▪ | Werner Schlecht (chairman), Vaihingen/Enz, engineer |
▪ | Volker Hichert (deputy chairman), Schäftlarn-Zell, graduate of business |
▪ | Elmar Meid, Munich, graduate of business |
▪ | Dr. Ludwig Hamm, Völklingen, engineer |
Fiscal year ended September 30, | ||||||||||
Notes | 2016 | 2015 | ||||||||
(euros in thousands) | ||||||||||
(Loss)/Profit under German GAAP | € | (512 | ) | € | (4,438 | ) | ||||
U.S. GAAP reporting adjustments | ||||||||||
Intangible assets - R&D Capitalization | (a) | (3,619 | ) | (4,674 | ) | |||||
Intangible assets - Up front fees | (b) | (877 | ) | (664 | ) | |||||
Lease capitalization | (c) | 3 | (130 | ) | ||||||
Goodwill impairment and amortization of intangible assets | (d) | 1,740 | 5,625 | |||||||
Pensions | (e) | 186 | 201 | |||||||
Special German phased retirement scheme* | (f) | 198 | 17 | |||||||
Provisions | (g) | (267 | ) | (393 | ) | |||||
Liabilities to banks | (h) | (461 | ) | (443 | ) | |||||
Tooling | (i) | (549 | ) | 38 | ||||||
Deferred taxes | (j) | (3,370 | ) | (3,563 | ) | |||||
Results under U.S. GAAP | € | (7,528 | ) | € | (8,424 | ) |
Notes | September 30, 2016 | September 30, 2015 | ||||||||
(euros in thousands) | ||||||||||
Shareholders' deficit under German GAAP** | € | (87,112 | ) | € | (86,035 | ) | ||||
U.S. GAAP reporting adjustments | ||||||||||
Intangible assets - R&D Capitalization | (a) | (8,293 | ) | (4,674 | ) | |||||
Intangible assets - Upfront fees | (b) | (1,541 | ) | (664 | ) | |||||
Lease capitalization | (c) | (120 | ) | (123 | ) | |||||
Goodwill impairment and amortization of intangible assets | (d) | 14,575 | 12,835 | |||||||
Pensions | (e) | (1,655 | ) | (743 | ) | |||||
Special German phased retirement scheme | (f) | 694 | 497 | |||||||
Provisions | (g) | 565 | 832 | |||||||
Liabilities to banks | (h) | 584 | 1,045 | |||||||
Tooling | (i) | (780 | ) | (231 | ) | |||||
Deferred taxes | (j) | (11,797 | ) | (8,755 | ) | |||||
Shareholders' deficit under U.S. GAAP | € | (94,880 | ) | € | (86,016 | ) |
Notes | September 30, 2016 | September 30, 2015 | ||||||||
(euros in thousands) | ||||||||||
Statement of comprehensive income under German GAAP | € | (279 | ) | € | (99 | ) | ||||
U.S. GAAP reporting adjustments | ||||||||||
Pensions | (e) | (1,098 | ) | 99 | ||||||
Deferred taxes | (j) | 329 | (30 | ) | ||||||
Statement of comprehensive income under U.S. GAAP | € | (1,048 | ) | € | (30 | ) |
(a) | Intangible assets: R&D capitalization - Elimination of capitalized development costs |
(b) | Intangible assets: Upfront fee - Elimination of nomination fees to customers |
(c) | Leasing - Change in lease classification from operating to capital leases |
(d) | Purchase price allocation (PPA) and goodwill impairment |
Notes | September 30, 2016 | September 30, 2015 | ||||||||
(euros in thousands) | ||||||||||
Components of goodwill impairment and amortization of intangible assets | ||||||||||
Recognition of intangible assets | € | (7,368 | ) | € | (7,368 | ) | ||||
Amortization of intangible assets | 23,977 | 25,278 | ||||||||
Recognition of goodwill | 5,158 | 5,158 | ||||||||
Reversal of goodwill amortization | 16,725 | 13,684 | ||||||||
Impairment of goodwill | (23,917 | ) | (23,917 | ) | ||||||
Total for reconciling item | (d) | € | 14,575 | € | 12,835 |
Notes | September 30, 2016 | September 30, 2015 | ||||||||
(euros in thousands) | ||||||||||
Components of goodwill impairment and amortization of intangible assets | ||||||||||
Amortization of intangible assets | € | (1,301 | ) | € | 2,585 | |||||
Reversal of goodwill impairment | 3,041 | 3,041 | ||||||||
Total for reconciling item | (d) | € | 1,740 | € | 5,626 |
(e) | Pensions - Valuation differences |
(f) | Part-time retirement - Recognition |
(g) | Provisions - Recognition |
(h) | Liabilities to banks |
(i) | Tooling |
(j) | Deferred taxes - Impact on U.S. GAAP adjustments |
Horizon As Reported | Westfalia | Pro Forma Adjustments | Reference | Pro Forma Condensed Combined Horizon | ||||||||||||||
Assets | ||||||||||||||||||
Current assets: | ||||||||||||||||||
Cash and cash equivalents | $ | 41,420 | $ | 7,549 | $ | 72,767 | A | $ | 121,736 | |||||||||
Receivables, net | 73,380 | 17,011 | — | 90,391 | ||||||||||||||
Inventories | 100,780 | 27,942 | 6,235 | B | 134,957 | |||||||||||||
Prepaid expenses and other current assets | 7,740 | 967 | — | 8,707 | ||||||||||||||
Total current assets | 223,320 | 53,469 | 79,002 | 355,791 | ||||||||||||||
Property and equipment, net | 47,560 | 30,387 | 14,216 | C | 92,163 | |||||||||||||
Goodwill | 5,360 | 2,497 | 83,676 | D | 91,533 | |||||||||||||
Other intangibles, net | 49,970 | 23,952 | 20,670 | E | 94,592 | |||||||||||||
Deferred income taxes | 3,700 | 453 | — | 4,153 | ||||||||||||||
Other assets | 9,960 | — | — | 9,960 | ||||||||||||||
Total assets | $ | 339,870 | $ | 110,758 | $ | 197,564 | $ | 648,192 | ||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||
Current liabilities: | ||||||||||||||||||
Current maturities, long-term debt | $ | 11,740 | $ | 109,732 | $ | (102,363 | ) | G | $ | 19,109 | ||||||||
Accounts payable | 72,310 | 21,772 | — | 94,082 | ||||||||||||||
Accrued liabilities | 42,810 | 22,353 | — | 65,163 | ||||||||||||||
Total current liabilities | 126,860 | 153,857 | (102,363 | ) | 178,354 | |||||||||||||
Long-term debt | 178,890 | 54,348 | 140,813 | G | 374,051 | |||||||||||||
Deferred income taxes | 680 | 7,338 | 12,307 | F | 20,325 | |||||||||||||
Other long-term liabilities | 17,440 | 1,860 | — | 19,300 | ||||||||||||||
Total liabilities | 323,870 | 217,403 | 50,757 | 592,030 | ||||||||||||||
Commitments and contingent liabilities | ||||||||||||||||||
Preferred stock, par | — | — | — | — | ||||||||||||||
Common stock, par | 180 | 392 | (370 | ) | H | 202 | ||||||||||||
Paid-in capital | 3,910 | — | 40,140 | H | 44,050 | |||||||||||||
Retained earnings (accumulated deficit) | 7,940 | (106,173 | ) | 106,173 | H | 7,940 | ||||||||||||
Accumulated other comprehensive income | 3,970 | (864 | ) | 864 | H | 3,970 | ||||||||||||
Total shareholders' equity | 16,000 | (106,645 | ) | 146,807 | 56,162 | |||||||||||||
Total liabilities and shareholders' equity | $ | 339,870 | $ | 110,758 | $ | 197,564 | $ | 648,192 |
Horizon As Reported | Westfalia | Pro Forma Adjustments | Reference | Pro Forma Condensed Combined Horizon | ||||||||||||||
Net sales | $ | 465,590 | $ | 183,108 | $ | — | $ | 648,698 | ||||||||||
Cost of sales | (339,760 | ) | (143,499 | ) | 739 | I | (482,520 | ) | ||||||||||
Gross profit | 125,830 | 39,609 | 739 | 166,178 | ||||||||||||||
Selling, general and administrative expenses | (97,510 | ) | (37,109 | ) | 4,673 | J | (129,946 | ) | ||||||||||
Impairment of intangible assets | (2,240 | ) | — | — | (2,240 | ) | ||||||||||||
Net loss on dispositions of property and equipment | (520 | ) | — | — | (520 | ) | ||||||||||||
Operating profit | 25,560 | 2,500 | 5,412 | 33,472 | ||||||||||||||
Other income (expense), net: | ||||||||||||||||||
Interest expense | (12,600 | ) | (4,720 | ) | (7,273 | ) | K | (24,593 | ) | |||||||||
Other income (expense), net | (2,170 | ) | 251 | — | (1,919 | ) | ||||||||||||
Other expense, net | (14,770 | ) | (4,469 | ) | (7,273 | ) | (26,512 | ) | ||||||||||
Income (loss) before income tax credit (expense) | 10,790 | (1,969 | ) | (1,861 | ) | 6,960 | ||||||||||||
Income tax credit (expense) | (900 | ) | (5,534 | ) | 1,311 | L | (5,123 | ) | ||||||||||
Net income (loss) | $ | 9,890 | $ | (7,503 | ) | $ | (550 | ) | $ | 1,837 | ||||||||
Net income per share: | ||||||||||||||||||
Basic | $ | 0.55 | $ | 0.09 | ||||||||||||||
Diluted | 0.54 | 0.09 | ||||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||
Basic | 18,144,998 | 2,173,340 | M | 20,318,338 | ||||||||||||||
Diluted | 18,333,226 | 2,173,340 | M | 20,506,566 |
Horizon As Reported | Westfalia | Pro Forma Adjustments | Reference | Pro Forma Condensed Combined Horizon | ||||||||||||||
Net sales | $ | 575,510 | $ | 217,373 | $ | — | $ | 792,883 | ||||||||||
Cost of sales | (432,470 | ) | (176,862 | ) | 187 | I | (609,145 | ) | ||||||||||
Gross profit | 143,040 | 40,511 | 187 | 183,738 | ||||||||||||||
Selling, general and administrative expenses | (121,350 | ) | (37,532 | ) | (164 | ) | J | (159,046 | ) | |||||||||
Impairment of intangible assets | — | — | — | — | ||||||||||||||
Net gain (loss) on dispositions of property and equipment | (2,120 | ) | 155 | — | (1,965 | ) | ||||||||||||
Operating profit | 19,570 | 3,134 | 23 | 22,727 | ||||||||||||||
Other (expense) income, net: | ||||||||||||||||||
Interest expense | (8,810 | ) | (10,426 | ) | (9,685 | ) | K | (28,921 | ) | |||||||||
Other (expense) income, net | (3,740 | ) | 3,663 | — | (77 | ) | ||||||||||||
Other expense, net | (12,550 | ) | (6,763 | ) | (9,685 | ) | (28,998 | ) | ||||||||||
Income (loss) before income tax credit (expense) | 7,020 | (3,629 | ) | (9,662 | ) | (6,271 | ) | |||||||||||
Income tax credit (expense) | 1,280 | (6,045 | ) | 3,867 | L | (898 | ) | |||||||||||
Net income (loss) | $ | 8,300 | $ | (9,674 | ) | $ | (5,795 | ) | $ | (7,169 | ) | |||||||
Net income per share: | ||||||||||||||||||
Basic | $ | 0.46 | $ | (0.35 | ) | |||||||||||||
Diluted | 0.46 | (0.35 | ) | |||||||||||||||
Weighted average common shares outstanding: | ||||||||||||||||||
Basic | 18,064,491 | 2,173,340 | M | 20,237,831 | ||||||||||||||
Diluted | 18,160,852 | 2,173,340 | M | 20,334,192 |
New shares issued (par value $0.01) | 2,704,310 | |||
Closing price of common stock on October 4, 2016, adjusted for discount | $ | 18.48 | ||
Stock consideration transferred | 49,973 | |||
Cash and debt instruments to be received by Westfalia | 99,231 | |||
Consideration transferred | 149,204 | |||
Allocation to Westfalia | $ | 115,577 |
Total current assets (1) | $ | 59,704 | ||
Property and equipment, net (2) | 44,603 | |||
Intangible assets (3) | 44,622 | |||
Deferred income taxes | 453 | |||
Other assets | — | |||
Total assets acquired | 149,382 | |||
Total current liabilities (4) | 44,125 | |||
Long-term debt | 54,348 | |||
Deferred income taxes (5) | 19,645 | |||
Other liabilities | 1,860 | |||
Total liabilities assumed | 119,978 | |||
Net identifiable assets acquired | 29,404 | |||
Goodwill (6) | 86,173 | |||
Total consideration to be transferred | $ | 115,577 |
Cash payment (1) | $ | (75,415 | ) | |
Incremental term loans (2) | 148,182 | |||
Total pro forma adjustment to cash and cash equivalents | $ | 72,767 |
Preliminary fair value adjustment (1) | $ | 6,235 | ||
Total pro forma adjustment to inventories | $ | 6,235 |
Preliminary fair value adjustment (1) | $ | 14,216 | ||
Total pro forma adjustment to property and equipment, net | $ | 14,216 |
Estimated transaction goodwill (1) | $ | 86,173 | ||
Elimination of historical goodwill | (2,497 | ) | ||
Total pro forma adjustment to goodwill | $ | 83,676 |
Preliminary fair value adjustment (1) | $ | 44,622 | ||
Elimination of historical intangibles | (23,952 | ) | ||
Total pro forma adjustments to intangibles, net | $ | 20,670 |
Estimated Fair Value | Estimated Weighted Useful Life | |||||
Trade names (1) | $ | 8,430 | Indefinite | |||
Technology (2) | 3,260 | 10 | ||||
Customer relationships (3) | ||||||
Customer relationships (OEM) | 13,150 | 11 | ||||
Customer relationships (OES) | 4,833 | 11 | ||||
Customer relationships (IAM) | 14,949 | 18 | ||||
Total customer relationships | 32,932 | |||||
Total intangibles | $ | 44,622 |
Non-current portion of deferred income taxes: | ||||
Inventory fair value adjustment | $ | 1,866 | ||
Identifiable intangible assets fair value adjustment | 6,186 | |||
Property and equipment fair value adjustment | 4,255 | |||
Total pro forma adjustment to non-current deferred income taxes(1) | $ | 12,307 |
Current maturities of long-term debt (1) | $ | 7,369 | ||
Elimination of Westfalia shareholder loan (2) | (109,732 | ) | ||
Total pro forma adjustments to shareholders' equity | $ | (102,363 | ) |
Issuance of shares of common stock (1) | $ | 40,162 | ||
Elimination of total combined Westfalia shareholders' equity | 106,645 | |||
Total pro forma adjustments to shareholders' equity | $ | 146,807 |
Nine months ended September 30, 2016 | Twelve months ended December 31, 2015 | |||||||
Adjustment to depreciation and amortization of Westfalia assets acquired (1) | $ | 739 | $ | 187 | ||||
Total pro forma adjustment to cost of sales | $ | 739 | $ | 187 |
Nine months ended September 30, 2016 | Twelve months ended December 31, 2015 | |||||||
Adjustment to depreciation and amortization of Westfalia assets acquired (1) | $ | 103 | $ | (164 | ) | |||
Acquisition costs (2) | 4,570 | — | ||||||
Total pro forma adjustment to selling, general and administrative | $ | 4,673 | $ | (164 | ) |
Incremental term loans (1) | $ | 8,000 | ||
Contra liability - debt issuance costs (2) | (631 | ) | ||
Total pro forma adjustment to current maturities of long-term debt | $ | 7,369 |
Incremental term loans (1) | $ | 144,000 | ||
Contra liability - debt issuance costs (2) | (3,187 | ) | ||
Total pro forma adjustments to long-term debt | $ | 140,813 |
Annual Average Interest Rate | Principal Amounts as of September 30, 2016 | Interest Expense for the year ended December 31, 2015 | Interest Expense for the nine months ended September 30, 2016 | ||||||||||||
Incremental term loans (1) (2) | 6.31 | % | $ | 152,000 | $ | 9,685 | $ | 7,273 | |||||||
$ | 152,000 | $ | 9,685 | $ | 7,273 |