-----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, WKCYTniizxSiy1uWD7FznJkWy64aMtVcXwPMihGeT8lnr+G+Phsk4eaN5H6rtyVg jU79qFUxzTA19hXMdCZZqQ== 0000950129-95-001576.txt : 19951214 0000950129-95-001576.hdr.sgml : 19951214 ACCESSION NUMBER: 0000950129-95-001576 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951212 ITEM INFORMATION: Acquisition or disposition of assets ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19951213 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DANIEL INDUSTRIES INC CENTRAL INDEX KEY: 0000026821 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL INSTRUMENTS FOR MEASUREMENT, DISPLAY, AND CONTROL [3823] IRS NUMBER: 741547355 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06098 FILM NUMBER: 95601161 BUSINESS ADDRESS: STREET 1: 9753 PINE LAKE DR CITY: HOUSTON STATE: TX ZIP: 77055 BUSINESS PHONE: 7134676000 MAIL ADDRESS: STREET 1: 9753 PINE LAKE DRIVE STREET 2: WINDSOR HOUSE 50 VICTORIA ST CITY: HOUSTON STATE: TX ZIP: 77055 8-K 1 DANIEL INDUSTRIES, INC. FORM 8-K DATED 12/12/95 1 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 (Date of earliest event reported) December 12, 1995 ----------------------------- DANIEL INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware 1-6098 74-1547355 - ---------------------------- --------------- -------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 9753 Pine Lake Drive, Houston, Texas 77055 - ------------------------------------------ -------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (713) 467-6000 -------------------------- 2 ITEM 2. DISPOSITION OF ASSETS In February 1995, Daniel Industries, Inc. (the "Company") announced that its Board of Directors approved and adopted a restructuring plan to improve the Company's overall profitability through a greater focus on high margin and market leading product lines, and cost reductions in overhead and direct expenses. As part of the restructuring plan, the Company announced its intention to divest identified non-core product lines. On November 28, 1995, the net assets of the fastener subsidiary, Daniel Industrial, Inc., were sold to an investor group for $8,000,000 in cash and $9,500,000 in collaterized subordinated notes, discounted to $8,600,000. In the fourth quarter of fiscal 1995, the Company recorded a pretax charge of $10,587,000 on the divestitures of non-core assets, primarily the fastener group. This charge is not reflected in the Company's pro forma consolidated financial statements. ITEM 7. FINANCIAL STATEMENTS The accompanying Pro Forma Consolidated Statement of Operations for the nine months ended June 30, 1995 and the year ended September 30, 1994, and the Pro Forma Consolidated Balance Sheet as of June 30, 1995 are based on historical financial statements, adjusted to give effect to the divestiture of the fastener business as though it had occurred at the beginning of each period presented. The pro forma financial information should be read in conjunction with the historical financial statements and related notes thereto. The pro forma financial information is not necessarily indicative of the results that would have been attained had the divestiture occurred in an earlier period. 3 DANIEL INDUSTRIES, INC. PRO FORMA CONSOLIDATED BALANCE SHEET (UNAUDITED)
June 30, 1995 ----------------------------------------------------- (in thousands except per share amounts) ASSETS Sale of Non- Core Product Pro Forma Historical Line (1) as Adjusted ---------- -------------- ----------- Current assets: Cash and cash equivalents $ 9,927 $ 6,600 $ 16,527 Receivables, net of reserve of $204,000 27,032 27,032 Costs in excess 2,318 2,318 Inventories 35,933 35,933 Deferred taxes on income 7,424 (628) 6,796 Other 3,435 2,294 (4) 5,729 Net assets held for sale 34,431 (26,758) 7,673 -------- -------- -------- Total current assets 120,500 (18,492) 102,008 Property, plant and equipment at cost, net 53,912 53,912 Intangibles and other assets 3,429 8,600 12,029 -------- -------- -------- $177,841 $ (9,892) $167,949 ======== ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Notes payable $ 13,400 $ 13,400 Current maturities of long-term debt 2,857 2,857 Accounts payable 14,388 $ (1,165) 13,223 Accrued expenses 17,578 (792) 16,786 -------- -------- -------- Total current liabilities 48,223 (1,957) 46,266 Long-term debt 8,571 8,571 Deferred taxes on income 6,116 (933) 5,183 -------- -------- -------- Total liabilities 62,910 (2,890) 60,020 -------- -------- -------- Commitments and contingencies Stockholders' equity Preferred stock, $1.00 par value, 1,000,000 shares authorized, 150,000 shares designated as Series A junior participating preferred stock, no shares issued or outstanding Common stock, $1.25 par value, 20,000,000 shares authorized, 12,083,485 shares issued 15,104 15,104 Capital in excess of par value 90,188 90,188 Translation component (138) (138) Retained earnings 9,777 (7,002) 2,775 -------- -------- -------- Total stockholders' equity 114,931 (7,002) 107,929 -------- -------- -------- $177,841 $ (9,892) $167,949 ======== ======== ========
The accompanying notes are an integral part of these pro forma statements. 4 DANIEL INDUSTRIES, INC. PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
Nine Months Ended June 30, 1995 -------------------------------------------- (in thousands except per share amounts) Sale of Non- Core Product Pro Forma Historical Line (1) as Adjusted ---------- -------------- ----------- Revenues $123,063 $ 20,362 $102,701 -------- --------- -------- Costs and expenses: Cost of goods sold 78,147 14,964 63,183 Depreciation and amortization 5,857 489 5,368 Selling and administrative expenses 33,426 3,174 30,252 Research and development expenses 2,165 2,165 Restructuring and other charges 12,330 12,330 Loss on disposal of asset 1,371 1,371 Interest expense 1,520 1,520 -------- --------- -------- 134,816 18,627 116,189 -------- --------- -------- Income (loss) before income tax expense (benefit) (11,753) 1,735 (13,488) Income tax expense (benefit) (2) (3,930) 580 (4,510) -------- --------- -------- Net income (loss) $ (7,823) $ 1,155 $ (8,978) ========= ========= ======== Income (loss) per common share (3) $ (.65) $ .10 $ (.75) ========= ========= ======== Average number of shares outstanding 12,036 12,036 ========= ========
The accompanying notes are an integral part of these pro forma statements. 5 DANIEL INDUSTRIES, INC. PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
Year Ended September 30, 1994 ------------------------------------------------ (in thousands except per share amounts) Sale of Non- Core Product Pro Forma Historical Line (1) as Adjusted ---------- ------------ ------------ Revenues $203,766 $ 22,108 $181,658 -------- --------- -------- Costs and expenses: Cost of goods sold 134,966 18,512 116,454 Depreciation and amortization 7,483 1,582 5,901 Selling and administrative expenses 53,176 4,702 48,474 Research and development expenses 4,094 4,094 Interest expense 1,927 1,927 -------- --------- -------- 201,646 24,796 176,850 -------- --------- -------- Income (loss) before income tax expense (benefit) 2,120 (2,688) 4,808 Income tax expense (benefit)(2) 796 (1,009) 1,805 -------- --------- -------- Net income (loss) $ 1,324 $ (1,679) $ 3,003 ======== ========= ======== Earnings (loss) per common share (3) $ .11 $ (.14) $ .25 ======== ========= ======== Average number of shares outstanding 12,030 12,030 ======== ========
The accompanying notes are an integral part of these pro forma statements. 6 DANIEL INDUSTRIES, INC. NOTES TO PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (1) Reflects the divestiture of the net assets of the fastener business in November 1995. (See "Item 2. Disposition of Assets".) COMPUTATION OF NET PROCEEDS FROM DIVESTITURE:
(in thousands) Cash Notes -------- ------- Gross proceeds $ 8,000 $8,600 Less expenses associated with divestiture, primarily professional fees (1,400) ------- ------ Net proceeds $ 6,600 $8,600 ======= ======
COMPUTATION OF NET LOSS ON DIVESTITURE REFLECTED IN PRO FORMA STOCKHOLDERS' EQUITY: Gross proceeds $16,600 Less: Net book value of assets sold $24,801 Expenses associated with divestiture 1,400 26,201 ------- ------- Loss on divestiture before income tax benefit (9,601) Income tax benefit (2,599) ------- Net loss on divestiture as an adjustment to stockholders' equity $(7,002) =======
(2) The provision (benefit) for income taxes is based on the Company's historical effective tax rate for the nine months ended June 30, 1995 and for the year ended September 30, 1994, respectively. (3) Earnings (loss) per share are computed on the average number of shares outstanding. (4) Amount represents federal income tax receivable due to sale of net assets. 7 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 hereunto duly authorized. DANIEL INDUSTRIES, INC. (Registrant) December 12, 1995 By /s/ W. A. Griffin, III Date___________________________ __________________________________ W. A. Griffin, III President and Chief Executive Officer December 12, 1995 By /s/ Henry G. Schopfer, III Date____________________________ __________________________________ Henry G. Schopfer, III Vice President and Chief Financial Officer December 12, 1995 By /s/ Mary R. Beshears Date____________________________ __________________________________ Mary R. Beshears Corporate Controller and Chief Accounting Officer -----END PRIVACY-ENHANCED MESSAGE-----