-----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, PVbT58keQrj3+69vwXr/oRyTM3pPxNPxr2+g4RvhxoICouypqDGAjrH1NY/tSljv jKFsBarkwz3QtwXY0Xy3rg== 0001116502-01-000294.txt : 20010307 0001116502-01-000294.hdr.sgml : 20010307 ACCESSION NUMBER: 0001116502-01-000294 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010118 ITEM INFORMATION: FILED AS OF DATE: 20010228 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EMPIRE OF CAROLINA INC CENTRAL INDEX KEY: 0000312840 STANDARD INDUSTRIAL CLASSIFICATION: GAMES, TOYS & CHILDREN'S VEHICLES (NO DOLLS & BICYCLES) [3944] IRS NUMBER: 132999480 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: SEC FILE NUMBER: 001-07909 FILM NUMBER: 1557188 BUSINESS ADDRESS: STREET 1: 4731 WEST ATLANTIC AVENUE SUITE B 1 CITY: DELRAY BEACH STATE: FL ZIP: 33445 BUSINESS PHONE: 5614984000 MAIL ADDRESS: STREET 1: 4731 WEST ATLANTIC AVENUE SUITE B 1 CITY: DELRAY BEACH STATE: FL ZIP: 33445 8-K/A 1 0001.txt AMENDMENT TO FORM 8-K 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 (date of earliest event reported) January 18, 2001 ----------------- Empire of Carolina, Inc. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware - -------------------------------------------------------------------------------- (State or other jurisdiction of incorporation) 1-7909 13-2999480 (Commission File Number) (IRS Employer Identification No.) - -------------------------------------------------------------------------------- 4731 West Atlantic Avenue, Suite B-1, Delray Beach, FL 33445 - -------------------------------------------------------------------------------- (Address of principal executive offices, including Zip Code) Registrant's telephone number, including area code (561) 498-4000 ----------------------------- - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) Empire of Carolina, Inc. hereby amends Item 7 of its Current Report on Form 8-K, originally filed with the Securities and Exchange Commission on February 2, 2001, to include pro forma financial information relating to the disposition of three of its subsidiary corporations, Apple Sports, Inc., Apple Golf Shoes, Inc. and Dorson Sports, Inc. The pro forma financial information was not available at the time of filing of the original 8-K. Item 7. Financial Statements, Pro Forma Financials and Exhibits ------------------------------------------------------- (b) Pro Forma Financials: Unaudited Pro Forma Balance Sheet as of September 30, 2000 Unaudited Pro Forma Income Statement for the nine months ended September 30, 2000 Unaudited Pro Forma Balance Sheet for the fiscal year ended December 31, 1999 Unaudited Pro Forma Income Statement for the fiscal year ended December 31, 1999 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. EMPIRE OF CAROLINA, INC. Dated: February 27, 2001. By: /s/James J. Pinto ------------------------------------- Director, Chairman of the Executive Committee and Acting Executive Officer EMPIRE OF CAROLINA, INC. UNAUDITED PRO FORMA FINANCIAL INFORMATION The following Unaudited Pro Forma Financial Information gives effect to the consummation of Empire of Carolina, Inc.'s sale (the "Sale")of all of its stock in Apple Sports, Inc., Dorson Sports, Inc. and Apple Golf Shoes, Inc. (collectively known as the "Apple Companies"). The Unaudited Pro Forma Balance Sheets for the year ended December 31, 1999 and the nine months ended September 30, 2000 give effect to the Sale as if it had been consummated on December 31, 1999. The Unaudited Pro Forma Statements of Operations for the year ended December 31, 1999, and the nine months ended September 30, 2000 give effect to the Sale as if it had been consummated on December 31, 1999. The following Unaudited Pro Forma Financial Information is presented for illustrative purposes only and does not purport to be indicative of the Company's actual financial position or results of operations as of the date hereof, or as of or for any other future date, and is not necessarily indicative of what the Company's actual financial position or results of operations would have been had the Sale been consummated on the above-referenced dates, nor does it give effect to (i) any transactions other than the Sale and those described in the Notes to the Unaudited Pro Forma Financial Information or (ii) Empire of Carolina, Inc.'s results of operations since September 30, 2000. The following Unaudited Pro Forma Financial Information is based on the historical financial data of Empire of Carolina, Inc. and should be read in conjunction with the information appearing in the Stock Purchase Agreement dated January 18, 2001 which was filed as Exhibit 99.2 to Form 8-K dated February 2, 2001 (the "Purchase Agreement)and other financial data that has been previously filed with the Securities and Exchange Commission. The Unaudited Pro Forma Balance Sheet at September 30, 2000, is based upon Empire of Carolina Inc.'s financial position at September 30, 2000. The Unaudited Pro Forma Statement of Operations for the nine months ended September 30, 2000 is based upon Empire of Carolina's results of operations for the nine months ended September 30, 2000. The Unaudited Pro Forma Statements of Operations for the fiscal year ended December 31, 1999, is based on Empire of Carolina's results of operations for that period. Empire of Carolina Inc Unaudited Pro Forma Balance Sheet As of December 31, 1999 (In thousands, except share amounts)
Pro Forma Restated Historical Adjustment Pro Forma ---------- ---------- --------- Cash and Cash Equivalents 1,589 (294) (1) 1,295 Accounts Receivable-Net of Allowances 16,708 (6,128) (1) 10,580 Inventory-Net of Allowances 12,144 (4,479) (1) 7,665 Prepaid Expenses and Other Current Assets 301 301 ---------- --------- Total Current Assets 30,742 (10,901) 19,841 ---------- -------- --------- Property, Plant and Equipment-Net of Accum Depr 11,413 (888) (1) 10,525 Excess Cost over Fair Value of Net Assets Acquired 11,392 11,392 Trademarks, Patents, Tradenames and Licenses 5,287 (284) (3) 5,003 Other Non-current Assets 268 268 ---------- --------- Total Assets 59,102 (12,073) 47,029 ========== ======== ========= Notes Payable and Current Portion of L-T Debt 34,096 (3,019) (1) 27,210 3,403 (2) (7,270) (3) Accounts Payable-Trade 6,748 (111) (1) 6,637 Other current liabilities 7,834 (925) (1) 6,909 ---------- -------- --------- Total Current Liabilities 48,678 (7,922) 40,756 ---------- -------- --------- Long Term Debt 625 625 Other Noncurrent liabilities 1,040 (3,403) (1) (5,766) 3,403 (2) Total Other Liabilities 1,665 0 1,665 ---------- ------- --------- Total Liabilities 50,343 (7,922) 42,421 ---------- ------- --------- Common Stock 1,967 (2) (1) 1,967 2 (3) Preferred stock 15 15 Additional Paid in Capital 115,824 (1,000) (1) 115,824 1,000 (3) Deficit (109,047) (10,135) (1) (113,198) ---------- --------- 5,984 (3) Total Shareholders' Equity 8,759 (4,151) 4,608 ---------- -------- --------- Total Liabilities and Shareholders' Equity 59,102 (12,073) 47,029 ========== ======== =========
Empire of Carolina Inc Unaudited Pro Forma Statement of Income For the Year Ending December 31, 1999 (In thousands, except share amounts)
Pro Forma Restated Historical Adjustment Pro Forma ---------- ---------- --------- Net Sales 64,290 (20,839) (4) 43,451 Cost of Sales 50,457 (13,252) (4) 37,205 ---------- -------- -------- Gross Margin 13,833 (7,587) 6,246 Selling and Administrative Expenses 17,957 (5,820) (4) 12,137 ---------- --------- -------- Operating Loss (4,124) (1,767) (5,891) Other Income(Expenses) Interest, Dividends & Net Realized Gains(Losses) 51 51 Interest Expense (3,288) 284 (4) (3,004) ---------- -------- -------- Total Other Income(Expenses) (3,237) 284 (2,953) ---------- -------- -------- Loss Before Taxes and Discontinued Operations (7,361) (1,483) (8,844) Provision for Income Taxes 0 0 0 ---------- -------- -------- Loss from Continuing Operations (7,361) (1,483) (8,844) Discontinued Operations Income for Operations of Discontinued Division 1,483 (4) 1,483 Loss on Disposal of Discontinued Division 0 (4,151) (4) (4,151) - ------- --------- (2,668) Net Loss (7,361) (4,151) (11,512) ========== ======== ========= Net Loss Applicable to Common Stock (7,361) (4,151) (11,512) ========== ======== ========= Loss per Common Share (0.42) (0.23) (0.65) ========== ======== ========= Weighted Average of Common Shares Outstanding 17,707 17,707 17,707 ========== ======== =========
Empire of Carolina Inc Unaudited Pro Forma Balance Sheet As of September 30, 2000 (In thousands, except share amounts)
Pro Forma Restated Historical Adjustment Pro Forma ---------- ---------- --------- Cash and Cash Equivalents 795 (167) (1) 628 Accounts Receivable-Net of Allowances 12,474 (7,822) (1) 4,652 Inventory-Net of Allowances 9,445 (5,854) (1) 3,591 Prepaid Expenses and Other Current Assets 544 (142) (1) 402 --------- --------- --------- Total Current Assets 23,258 (13,985) 9,273 --------- --------- --------- Property, Plant and Equipment-Net of Accum Depr 1,921 (470) (1) 1,451 Excess Cost over Fair Value of Net Assets Acquired 10,527 (238) (1) 10,289 Trademarks, Patents, Tradenames and Licenses 4,688 (284) (3) 4,404 Other Non-current Assets 1,116 (252) (1) 864 --------- --------- --- Total Assets 41,510 (15,229) 26,281 ========= ========= ========= Notes Payable and Current Portion of L-T Debt 26,553 (6,499) (1) 16,815 4,031 (2) (7,270) (3) Accounts Payable-Trade 6,020 (305) (1) 5,715 Other current liabilities 4,668 (1,719) (1) 2,949 --------- --------- -------- Total Current Liabilities 37,241 (11,762) 25,479 --------- --------- -------- Long Term Debt 625 625 Other Noncurrent liabilities 1,192 (4,031) (1) 1,192 --------- --------- 4,031 (2) Total Other Liabilities 1,817 0 1,817 --------- - -------- Total Liabilities 39,058 (11,762) 27,296 --------- --------- -------- Common Stock 13 (2) (1) 13 2 (3) Preferred stock 2,162 2,162 Additional Paid in Capital 115,664 (1,000) (1) 115,664 1,000 (3) Deficit (115,387) (9,451) (1) (118,854) --------- --------- 5,984 (3) Total Shareholders' Equity 2,452 (3,467) (1,015) --------- --------- --------- Total Liabilities and Shareholders' Equity 41,510 (15,229) 26,281 ========= ========= =========
Empire of Carolina Inc Unaudited Pro Forma Statement of Income For the Nine Months Ending September 30, 2000 (In thousands, except share amounts)
Pro Forma Restated Historical Adjustment Pro Forma ---------- ---------- --------- Net Sales 31,938 (13,510) (4) 18,428 Cost of Sales 26,355 (10,512) (4) 15,843 -------- -------- -------- Gross Margin 5,583 (2,998) 2,585 Selling and Administrative Expenses 9,519 (3,314) (4) 6,205 -------- -------- -------- Operating Loss (3,936) 316 (3,620) Other Income(Expenses) Interest, Dividends & Net Realized Gains(Losses) (55) (31) (4) (86) Interest Expense (2,301) 354 (4) (1,947) -------- ------- -------- Total Other Income(Expenses) (2,356) 323 (2,033) -------- ------- -------- Loss Before Taxes and Discontinued Operations (6,292) 639 (5,653) Provision for Income Taxes 48 (48) (4) 0 -------- ------- -------- Loss from Continuing Operations (6,340) 687 (5,653) Discontinued Operations Loss from Operations of Discontinued Division 0 687 (4) (687) -------- ------- -------- Net Loss (6,340) 1,374 (6,340) ======== ======= ======== Net Loss Applicable to Common Stock (6,340) 1,374 (6,340) ======== ======= ======== Loss per Common Share (0.30) 0.07 (0.30) ======== ======= ======== Weighted Average of Common Shares Outstanding 20,825 20,825 20,825 ======== ======= ========
EMPIRE OF CAROLINA, INC NOTES TO UNAUDITED PRO FORMA FINANCIAL INFORMATION 1): To eliminate assets and liabilities of the Apple Companies with respect to the sale of 100% of the stock of the Apple Companies. (2): Reflects the elimination of intercompany advances between the Toy Division and the Apple Companies of $3,403,000 at December 31, 1999 and $4,031,000 at September 30, 2000. (3): To reflect the sale of 100% of the stock of the Apple Companies to Apple Sports Acquisition, Inc., Dorson Sports Acquisition, Inc., and Apple Shoes Acquisition, Inc. on January 18, 2001, pursuant to the Purchase Agreement. As a result of the sale, Empire of Carolina will recognize a loss of approximately $4,151,000. (4): Reflects a reclassification of the operating income (loss) to discontinued operations as a result of the sale of the Apple Companies' business per Accounting Principles Board Opinion No. 30. -----END PRIVACY-ENHANCED MESSAGE-----