-----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, PtmLMVnlBeZIa5WbLLEydn9Nam+NcZOZ20D+VFSq9hrba0N8G4MRK3IXtODaTAko z/JwaH7CNAWE0fcI1apVBg== 0000950152-96-004872.txt : 19960926 0000950152-96-004872.hdr.sgml : 19960926 ACCESSION NUMBER: 0000950152-96-004872 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960910 ITEM INFORMATION: Acquisition or disposition of assets ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19960925 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMMERCIAL INTERTECH CORP CENTRAL INDEX KEY: 0000022470 STANDARD INDUSTRIAL CLASSIFICATION: MISC INDUSTRIAL & COMMERCIAL MACHINERY & EQUIPMENT [3590] IRS NUMBER: 340159880 STATE OF INCORPORATION: OH FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10697 FILM NUMBER: 96634116 BUSINESS ADDRESS: STREET 1: 1775 LOGAN AVE STREET 2: PO BOX 239 CITY: YOUNGSTOWN STATE: OH ZIP: 44501-0239 BUSINESS PHONE: 2167468011 FORMER COMPANY: FORMER CONFORMED NAME: COMMERCIAL SHEARING INC DATE OF NAME CHANGE: 19880307 FORMER COMPANY: FORMER CONFORMED NAME: COMMERCIAL SHEARING & STAMPING CO DATE OF NAME CHANGE: 19720329 FORMER COMPANY: FORMER CONFORMED NAME: FIRST CALIFORNIA CO DATE OF NAME CHANGE: 19700106 8-K 1 COMMERCIAL INTERTECH 8-K 1 UNITED STATES Securities And Exchange Commission Washington, D.C. 20549 Form 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report September 10, 1996 ---------------------------------------------- (Date of earliest event reported) COMMERCIAL INTERTECH CORP. -------------------------- (Exact name of registrant as specified in its charter) Ohio 0-588 34-0159880 - -------------- ---------- ------------ State or other Commission IRS Employer jurisdiction of File Identification incorporation Number No. 1775 Logan Avenue, Youngstown, Ohio 44501-0239 - ----------------------------------- ---------- (Address of principal offices) (Zip Code) Registrant's telephone number, including area code 330-746-8011 2 Item 2. Acquisition or Disposition of Assets On July 29, 1996, the Board of Directors of Commercial Intertech Corp. authorized management to proceed with the spin-off of the fluid purification business by declaring a dividend distribution of 100% of the common stock of Cuno Incorporated ("CUNO") on a pro-rata basis to the holders of Commercial Intertech common shares (the "Distribution"). Each holder of record of Commercial Intertech common shares at the close of business on September 10, 1996, the record date for the Distribution, received one share of CUNO Common Stock for every one share of Commercial Intertech common share. No fractional shares of CUNO were issued. In connection with the spin-off, the Board of Directors of Commercial Intertech declared a dividend of approximately $35,675,000 payable from the Cuno Incorporated locations to the Company, and immediately prior to the Distribution, Cuno Incorporated will assume $30,000,000 of Commercial Intertech's debt in the form of a dividend. Commercial Intertech and CUNO have entered into a Tax Allocation Agreement in connection with the distribution. In addition, the Company and CUNO have entered into a Distribution and Interim Services Agreement which provides that certain services which have historically been provided to CUNO by the Company will continue to be provided following the Distribution Date, at rates specified in such agreements, for a period of up to twelve months. 3 Item 7. Financial Statements and Exhibits (a) Pro Forma Financial Information Page Numbers - ---- ------- Introduction to Pro Forma Consolidated Condensed Financial Information Pro Forma Consolidated Condensed Balance Sheet as of July 31, 1996 Pro Forma Consolidated Condensed Statement of Income for the Nine Months Ended July 31, 1996 Pro Forma Consolidated Condensed Statement of Income for the Year Ended October 31, 1995 4 Commercial Intertech Corp. Unaudited Pro Forma Consolidated Financial Information The historical consolidated financial statements of Commercial Intertech Corp. include the results of operations and financial position of the businesses constituting Commercial Intertech Corp. and Subsidiaries. The pro forma consolidated condensed balance sheet (unaudited) as of July 31, 1996 has been prepared assuming the spin-off and distribution of Cuno, Incorporated occurred as of that date. The pro forma consolidated condensed statement of income (unaudited) for the nine months ended July 31, 1996 has been prepared assuming the spin-off occurred as of November 1, 1995. The pro forma consolidated condensed statement of income (unaudited) for the year ended October 31, 1995 has been prepared assuming the spin-off and distribution occurred as of November 1, 1994. The pro forma financial statements have been prepared by adjusting the historical statements for the effect of costs, expenses, assets and liabilities which might have occurred had the distribution been effected as of the dates indicated. These pro forma financial statements are not necessarily indicative of the consolidated results of operations or financial position that would have existed had the distribution occurred on the dates indicated. 5 COMMERCIAL INTERTECH CORP. AND SUBSIDIARIES PRO FORMA CONSOLIDATED CONDENSED BALANCE SHEETS (unaudited) July 31, 1996
(Thousands of dollars) Commercial Intertech Pro Form Corp Historical Adjustments(A) Pro Forma ---------- ----------- --------- ASSETS - ------ CURRENT ASSETS: Cash and cash equivalents............ $ 53,312 $ (4,682) $ 48,630 Accounts receivable, less allowance.. 109,625 (40,335) 69,290 Inventories.......................... 73,361 (17,455) 55,906 Deferred income tax benefits......... 18,509 (5,552) 12,957 Prepaid expenses..................... 10,180 (2,364) 7,816 Loan receivable from affiliate....... 0 30,000 (C) 30,000 Dividend receivable from affiliate... 0 35,675 (B) 35,675 --------- --------- --------- TOTAL CURRENT ASSETS 264,987 (4,713) 260,274 PROPERTY, PLANT AND EQUIPMENT 291,649 (94,703) 196,946 Less allowance for depreciation...... 147,172 (46,744) 100,428 --------- --------- --------- 144,477 (47,959) 96,518 NONCURRENT ASSETS: Intangible assets.................... 29,697 (20,137) 9,560 Pension assets....................... 37,118 (3,220) 33,898 Other assets......................... 6,235 (1,522) 4,713 --------- --------- --------- TOTAL NONCURRENT ASSETS 73,050 (24,879) 48,171 --------- --------- --------- TOTAL ASSETS $ 482,514 $ (77,551) $ 404,963 ========== ========== ========= LIABILITIES AND SHAREHOLDERS' EQUITY - ------------------------------------ CURRENT LIABILITIES: Bank loans........................... $ 22,530 $ (11,264) $ 11,266 Accounts and notes payable........... 131,364 (30,622) 100,742 Accrued income taxes................. 8,028 (3,164) 4,864 Dividends payable.................... 2,418 0 2,418 Current portion of long-term debt.... 9,219 (1,009) 8,210 Payable to affiliates................ 0 29,051 29,051 ---------- ---------- --------- TOTAL CURRENT LIABILITIES 173,559 (17,008) 156,551 NONCURRENT LIABILITIES: Long-term debt....................... 127,990 (3,403) 124,587 Deferred income taxes................ 18,400 (3,940) 14,460 Postretirement benefits.............. 24,188 (2,714) 21,474 --------- --------- --------- TOTAL NONCURRENT LIABILITIES 170,578 (10,057) 160,521 SHAREHOLDERS' EQUITY: Preferred stock, no par value: Series A 0 0 0 Series B 24,172 0 24,172 Common stock, $1 par value: 13,571 0 13,571 Capital surplus 0 0 0 Retained earnings 110,729 (44,340) (D) 66,389 Deferred compensation (17,594) 0 (17,594) Translation adjustment 7,499 (6,146) 1,353 --------- --------- --------- TOTAL SHAREHOLDERS' EQUITY 138,377 (50,486) 87,891 --------- --------- --------- TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $ 482,514 $ (77,551) $ 404,963 ========= ========= =========
6 COMMERCIAL INTERTECH CORP. AND SUBSIDIARIES PRO FORMA CONSOLIDATED CONDENSED STATEMENTS OF INCOME (unaudited) Nine Months Ended July 31, 1996
(Thousands of dollars) Commercial Intertech Corp Pro Forma Pro Forma Historical Adjustments(A) Results ---------- ----------- --------- Net Sales ............................... $ 474,834 $(134,636) $ 340,198 Less costs and expenses Cost of products sold ................ 331,688 (79,602) 252,086 Selling, administrative and general expense ................ 107,694 (41,252) 66,442 Nonrecurring distribution costs .............................. 6,513 (2,876) 3,637 --------- --------- --------- 445,895 (123,730) 322,165 --------- --------- --------- Operating Income ........................ 28,939 (10,906) 18,033 Nonoperating income (expense): Interest income ...................... 767 14 781 Interest expense ..................... (4,422) 190 (4,232) Gain on sale of properties ........... 940 0 940 Foreign currency gains (losses) ........................... (144) 102 (42) Other ................................ 973 90 1,063 --------- --------- --------- (1,886) 396 (1,490) --------- --------- --------- Income from continuing operations before income taxes ................................ 27,053 (10,510) 16,543 Income taxes ............................ 10,328 (4,778) 5,550 --------- --------- --------- Income from continuing operations ........................... $ 16,725 $ (5,732) $ 10,993 ========= ========= ========= Earnings per share of common stock: Income from continuing operations: Primary ............................ $ 0.98 $ 0.61 Fully Diluted ...................... 0.93 0.59
7 COMMERCIAL INTERTECH CORP. AND SUBSIDIARIES PRO FORMA CONSOLIDATED CONDENSED STATEMENTS OF INCOME (unaudited) Year Ended October 31, 1995
(Thousands of dollars) Commercial Intertech Corp Pro Forma Pro Forma Historical Adjustments Results ---------- ----------- --------- Net Sales ............................... $ 621,836 $(162,699) $ 459,137 Less costs and expenses Cost of products sold ................ 436,857 (99,735) 337,122 Selling, administrative and general expense ................ 139,729 (52,059) 87,670 Nonrecurring distribution costs .............................. 0 0 0 --------- --------- --------- 576,586 (151,794) 424,792 --------- --------- --------- Operating Income ........................ 45,250 (10,905) 34,345 Nonoperating income (expense): Interest income ...................... 1,966 (129) 1,837 Interest expense ..................... (6,912) 674 (6,238) Gain on sale of properties ........... 0 0 0 Foreign currency gains (losses) ........................... (779) 449 (330) Other ................................ 417 348 765 --------- --------- --------- (5,308) 1,342 (3,966) --------- --------- --------- Income from continuing operations before income taxes ................................ 39,942 (9,563) 30,379 Income taxes ............................ 9,559 (3,462) 6,097 --------- --------- --------- Income from continuing operations ........................... $ 30,383 $ (6,101) $ 24,282 ========= ========= ========= Earnings per share of common stock: Income from continuing operations: Primary ............................ $ 1.82 $ 1.42 Fully Diluted ...................... 1.72 1.35
8 Commercial Intertech Corp. Notes to the Pro Forma Consolidated Condensed Financial Statements A. To eliminate the historical income/expense and balance sheet items of Cuno Incorporated for the respective periods presented. B. To record the dividend receivable from Cuno Incorporated. The dividend was declared immediately prior to the distribution. C. To record the $30,000,000 of debit assumed by Cuno Incorporated transacted in the form of a dividend. D. To record the proposed distribution of 13,566,432 common shares of Cuno Incorporated. Each shareholder of Commercial Intertech Corp. will receive one share of Cuno Incorporated for each share of Commercial Intertech Corp. stock owned. 9 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, thereto duly authorized. COMMERCIAL INTERTECH CORP. Date: September 23, 1996 By /s/ Hubert Jacobs van Merlen ------------------------ ----------------------------- Hubert Jacobs van Merlen Senior Vice President and Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----