UTAH
|
87-0342734
|
|
(State or other jurisdiction of
|
(I.R.S. Employer | |
incorporation or organization)
|
Identification No.)
|
|
7043 South 300 West
|
||
Midvale, Utah 84047 | ||
Address of principal executive offices | ||
Registrant's telephone number:
|
(801) 566-1200 |
|
|
i.
|
Unaudited pro forma combined condensed consolidated balance sheet as of December 31, 2010 |
|
ii.
|
Unaudited pro forma combined condensed consolidated statement of operations for the year ending December 31, 2010
|
|
iii.
|
Notes to the unaudited pro forma combined condensed financial statements
|
Exhibit #
|
SEC
Reference #
|
Title of Document
|
1
|
10
|
Agreement Relating to the sale and purchase of the whole of the issued share capital of Femcare Group Limited dated 18 March 2011 (incorporated by reference from the Company’s report on Form 8-K filed with the Commission on March 23, 2011).
|
2
|
10
|
Credit Agreement dated as of March 17, 2011 among Utah Medical Products, Inc., as Borrower, and JPMorgan Chase Bank, N.A., as Lender (incorporated by reference from the Company’s report on Form 8-K filed with the Commission on March 23, 2011).
|
3
|
10
|
Facility Agreement dated 18 March 2011 for Femcare Group Limited as Borrower with JPMorgan Chase Bank, N.A., London Branch as Lender (incorporated by reference from the Company’s report on Form 8-K filed with the Commission on March 23, 2011).
|
4
|
99
|
Audited consolidated financial statements of Femcare Group Limited (Femcare) as of March 31, 2010 and 2009 and for the two years ended March 31, 2010 and consolidated related notes thereto
|
5 | 99 |
Additional note to reconcile UK GAAP to US GAAP for the audited consolidated financial statements of Femcare as of March 31, 2010 and 2009 and for the two years ended March 31, 2010 and consolidated related notes thereto
|
6
|
99
|
Independent Auditors' Report on the accompanying additional note to reconcile UK GAAP to US GAAP for the audited consolidated financial statements of Femcare as of March 31, 2010 and 2009 and for the two years ended March 31, 2010 and consolidated related notes thereto
|
7
|
99
|
Unaudited condensed consolidated financial statements of Femcare as of December 31, 2010 and for the nine months ended December 31, 2010 and 2009 and consolidated notes thereto
|
8 | 99 | Unaudited pro forma combined condensed consolidated balance sheet as of December 31, 2010 and unaudited pro forma combined condensed consolidated statement of operations for the year ended December 31, 2010 |
UTAH MEDICAL PRODUCTS, INC.
|
|
REGISTRANT
|
Date: 08/02/2011
|
By:
|
s/ Kevin L. Cornwell
|
Kevin L. Cornwell | ||
CEO |
Report and Financial Statements
Year ended 31 March 2010
|
Page
|
|
Officers and professional advisers
|
1
|
Directors’ report
|
2
|
Independent auditors’ report
|
6
|
Consolidated profit and loss account
|
7
|
Consolidated balance sheet
|
8
|
Company balance sheet
|
9
|
Consolidated cash flow statement
|
10 |
Notes to the accounts
|
11 |
SUPPLIER PAYMENT POLICY
|
POLITICAL AND CHARITABLE DONATIONS
|
ACQUISITION OF COMPANY’S OWN SHARES
|
Date of shareholders’ resolution
|
Purchase/(sale)
|
Number
of ordinary
shares
|
Nominal
value of
ordinary shares
|
Percentage
of called-up
ordinary
share capital
|
Consideration
£
|
|||||||||||||
19/5/06
|
Purchase
|
130,000 | 1,300 | 13 | % | 113,365 | ||||||||||||
19/7/06
|
Purchase
|
65,000 | 650 | 6.5 | % | 53,385 | ||||||||||||
15/9/06
|
Sale
|
(100,000 | ) | (1,000 | ) | (10 | %) | (60,000 | ) | |||||||||
17/1/07
|
Purchase
|
65,000 | 650 | 6.5 | % | 52,260 | ||||||||||||
Total at 31/3/07
|
Net Purchases
|
160,000 | 1,600 | 16 | % | 159,010 | ||||||||||||
24/8/07
|
Sale
|
(88,500 | ) | (885 | ) | (8.85 | %) | (51,800 | ) | |||||||||
31/8/08
|
Closing adjustment
|
- | - | - | (2,210 | ) | ||||||||||||
Total at 31/3/08
|
Net Purchases
|
71,500 | 715 | 7.15 | % | 105,000 | ||||||||||||
13/8/08
|
Purchase
|
45,000 | 450 | 4.5 | % | 27,000 | ||||||||||||
Total at 31/3/09 & Current Total
|
Net Purchases
|
116,500 | 1,165 | 11.65 | % | 132,000 |
DISABLED EMPLOYEES
|
EMPLOYEE CONSULTATION
|
GOING CONCERN
|
|
·
|
select suitable accounting policies and then apply them consistently;
|
|
·
|
make judgments and accounting estimates that are reasonable and prudent;
|
|
·
|
state whether applicable UK Accounting Standards have been followed; and
|
|
·
|
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
|
·
|
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware; and
|
·
|
the director has taken all the steps that he/she ought to have taken as a director in order to make himself/herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.
|
|
·
|
give a true and fair view of the state of the group’s and the parent company’s affairs as at 31 March 2010 and of the loss of the group for the year then ended;
|
|
·
|
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
|
|
·
|
have been prepared in accordance with the requirements of the Companies Act 2006.
|
·
|
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
|
·
|
the parent company financial statements are not in agreement with the accounting records and returns; or
|
·
|
certain disclosures of directors’ remuneration specified by law are not made; or
|
·
|
we have not received all the information and explanations we require for our audit.
|
Note
|
Year ending
31 March
2010
£
|
Year ending
31 March
2009
£
|
||||||||||
TURNOVER
|
2 | 7,996,212 | 9,949,294 | |||||||||
Cost of sales
|
(2,223,608 | ) | (2,888,982 | ) | ||||||||
Gross profit
|
5,772,604 | 7,060,312 | ||||||||||
Other income
|
147,880 | 196,406 | ||||||||||
Administrative expenses (including net exceptional costs of £1,150,239)
(2009: £134,114)
|
(7,660,157 | ) | (6,623,378 | |||||||||
OPERATING (LOSS)/PROFIT
|
3 | (1,739,673 | ) | 633,340 | ||||||||
Interest receivable and similar income
|
5 | 5,716 | 36,812 | |||||||||
Interest payable and similar charges
|
6 | (2,125,034 | ) | (2,189,724 | ) | |||||||
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION
|
(3,858,991 | ) | (1,519,572 | ) | ||||||||
TAX CHARGE ON LOSS ON ORDINARY ACTIVITIES
|
7 | (63,254 | ) | (107,225 | ) | |||||||
RETAINED LOSS FOR THE FINANCIAL YEAR
|
20, 21 | (3,922,245 | ) | (1,626,797 | ) |
Note
|
2010
£
|
2009
£
|
||||||||||
FIXED ASSETS
|
||||||||||||
Tangible fixed assets
|
9 | 455,737 | 539,570 | |||||||||
Intangible fixed assets
|
10 | 7,758,094 | 9,697,616 | |||||||||
8,213,831 | 10,237,186 | |||||||||||
CURRENT ASSETS
|
||||||||||||
Stocks
|
12 | 669,936 | 963,187 | |||||||||
Debtors
|
13 | 1,961,069 | 2,554,222 | |||||||||
Cash at bank and in hand
|
2,040,763 | 1,109,438 | ||||||||||
4,671,768 | 4,626,847 | |||||||||||
CREDITORS: amounts falling due within one year
|
14 | (2,605,775 | ) | (2,270,590 | ) | |||||||
NET CURRENT ASSETS
|
2,065,993 | 2,356,257 | ||||||||||
TOTAL ASSETS LESS CURRENT LIABILITIES
|
10,279,824 | 12,593,443 | ||||||||||
CREDITORS: amounts falling due after more than one year
|
15 | (23,659,367 | ) | (22,050,741 | ) | |||||||
NET LIABILITIES
|
(13,379,543 | ) | (9,457,298 | ) | ||||||||
SHARE CAPITAL AND RESERVES
|
||||||||||||
Called up share capital
|
19 | 10,000 | 10,000 | |||||||||
Share premium account
|
20 | 405,905 | 405,905 | |||||||||
Own shares
|
20 | (132,000 | ) | (132,000 | ) | |||||||
Profit and loss account deficit
|
20 | (13,663,448 | ) | (9,741,203 | ) | |||||||
TOTAL SHAREHOLDERS' DEFICIT
|
20, 21 | (13,379,543 | ) | (9,457,298 | ) |
Note
|
2010
£
|
2009
£
|
||||||||||
FIXED ASSETS
|
||||||||||||
Intangible fixed assets
|
10 | 80,000 | 100,000 | |||||||||
Investments
|
11 | 21,317,332 | 21,317,332 | |||||||||
21,397,332 | 21,417,332 | |||||||||||
CURRENT ASSETS
|
||||||||||||
Debtors
|
13 | 3,134,534 | 2,740,499 | |||||||||
Cash at bank and in hand
|
12,650 | - | ||||||||||
3,147,184 | 2,740,499 | |||||||||||
CREDITORS: amounts falling due within one year
|
14 | (9,989,344 | ) | (9,488,392 | ) | |||||||
NET CURRENT LIABILITIES
|
(6,842,160 | ) | (6,747,893 | ) | ||||||||
TOTAL ASSETS LESS CURRENT LIABILITIES
|
14,555,172 | 14,669,439 | ||||||||||
CREDITORS: amounts falling due after more than one year
|
15 | (23,659,367 | ) | (22,050,741 | ) | |||||||
NET LIABILITIES
|
(9,104,195 | ) | (7,381,302 | ) | ||||||||
SHARE CAPITAL AND RESERVES
|
||||||||||||
Called up share capital
|
19 | 10,000 | 10,000 | |||||||||
Share premium account
|
20 | 405,905 | 405,905 | |||||||||
Own shares
|
20 | (132,000 | ) | (132,000 | ) | |||||||
Profit and loss account deficit
|
20 | (9,388,100 | ) | (7,665,207 | ) | |||||||
TOTAL SHAREHOLDERS' DEFICIT
|
20,21 | (9,104,195 | ) | (7,381,302 | ) |
Note
|
Year ending
31 March
2010
£
|
Year ending
31 March
2009
£
|
||||||||||
Net cash inflow from operating activities
|
22 | 1,763,342 | 1,871,232 | |||||||||
Returns on investments and servicing of finance
|
||||||||||||
Interest received
|
5,716 | 36,812 | ||||||||||
Interest paid
|
(316,408 | ) | (549,238 | ) | ||||||||
Net cash outflow from returns on investments and servicing of finance
|
(310,692 | ) | (512,426 | ) | ||||||||
Taxation
|
||||||||||||
Corporation tax
|
(143,184 | ) | (397,384 | ) | ||||||||
Capital expenditure and financial investment
|
||||||||||||
Purchase of tangible fixed assets
|
(53,454 | ) | (449,919 | ) | ||||||||
Net cash outflow from capital expenditure and financial investment
|
(53,454 | ) | (449,919 | ) | ||||||||
Net cash inflow before financing
|
1,256,012 | 511,503 | ||||||||||
Financing
|
||||||||||||
Issue/(repurchase) of ordinary share capital
|
- | (27,000 | ) | |||||||||
Movement in short term borrowings
|
(100,000 | ) | (900,000 | ) | ||||||||
Movement in long term borrowings
|
(200,000 | ) | (187,882 | ) | ||||||||
Net cash outflow from financing
|
(300,000 | ) | (1,114,882 | ) | ||||||||
Increase/(decrease) in cash and overdrafts
|
23, 24 | 956,012 | (603,379 | ) |
1.
|
ACCOUNTING POLICIES
|
Long leasehold land and buildings
|
Over lease term
|
|||
Plant and machinery
|
10% -100 | % | ||
Tooling (including costs of validation)
|
10 | % | ||
Motor vehicles
|
25 | % | ||
Fixtures, fittings & other equipment
|
10% -33 | % | ||
Computer equipment
|
25% - 33 | % |
1.
|
ACCOUNTING POLICIES (CONTINUED)
|
2.
|
TURNOVER
|
Year ending
31 March
2010
£
|
Year ending
31 March
2009
£
|
|||||||
Turnover by destination
|
||||||||
United Kingdom
|
2,873,283 | 3,014,515 | ||||||
Rest of Europe
|
718,846 | 985,762 | ||||||
Americas
|
1,472,242 | 3,210,827 | ||||||
Rest of the World
|
2,931,841 | 2,738,190 | ||||||
7,996,212 | 9,949,294 |
3.
|
OPERATING (LOSS)/PROFIT
|
Year ending
31 March
2010
£
|
Year ending
31 March
2009
£
|
|||||||
Operating (loss)/profit is stated after charging/(crediting):
|
||||||||
Amortisation of intangible fixed assets
|
1,939,522 | 1,940,715 | ||||||
Depreciation of tangible fixed assets
|
135,294 | 105,059 | ||||||
Operating lease rentals:
|
||||||||
-Land and buildings
|
102,659 | 88,953 | ||||||
-Other
|
112,844 | 103,357 | ||||||
Exchange gain
|
(74,548 | ) | (180,259 | ) | ||||
Auditors’ remuneration (see below)
|
26,000 | 24,000 | ||||||
Auditors’ other fees (see below)
|
23,500 | 29,015 | ||||||
Fees payable to the company’s auditors for the audit of the company’s annual accounts
|
4,000 | 3,000 | ||||||
Fees payable to the company’s auditors and their associates for other services to the group:
|
||||||||
-The audit of the company’s subsidiaries pursuant to legislation
|
22,000 | 21,000 | ||||||
Total audit fees
|
26,000 | 24,000 | ||||||
Tax services
|
23,500 | 29,015 | ||||||
Total non-audit fees
|
23,500 | 29,015 |
|
In July 2010, Femcare-Nikomed Limited, a group subsidiary, reached a settlement with a third party, for a contractual dispute over the interpretation of certain specific terms within the contract between the two parties. The settlement was agreed at $1,574,000 paid by an offset to monies owed and a net cash payment of $316,000. This has been accounted for as an exceptional item in the 2010 financial statements of £1,027,948, on the basis that, in accordance with FRS 12, this was the period in which the obligation arose.
|
4.
|
INFORMATION REGARDING DIRECTORS AND EMPLOYEES
|
Year ending
31 March
2010
£
|
Year ending
31 March
2009
£
|
|||||||
FOR BOTH GROUP AND COMPANY
|
||||||||
Directors’ emoluments
|
||||||||
Remuneration
|
345,935 | 416,343 | ||||||
Compensation on termination of contracts
|
- | 75,350 | ||||||
Pension contributions
|
45,987 | 61,499 | ||||||
391,922 | 553,192 |
Year ending
31 March
2010
No.
|
Year ending
31 March
2009
No.
|
|||||||
Directors who are members of the group defined contribution pension scheme:
|
3 | 4 |
Year ending
31 March
2010
£
|
Year ending
31 March
2009
£
|
|||||||
Highest paid director
|
||||||||
Remuneration
|
137,117 | 163,790 | ||||||
Pension contributions
|
21,346 | 20,928 | ||||||
158,463 | 184,718 |
Year ending
31 March
2010
£
|
Year ending
31 March
2009
£
|
|||||||
Staff costs during the year (including directors)
|
||||||||
Wages and salaries
|
1,451,080 | 1,587,633 | ||||||
Social security costs
|
162,497 | 159,750 | ||||||
Pension costs
|
115,811 | 111,056 | ||||||
1,729,388 | 1,858,439 |
4.
|
INFORMATION REGARDING DIRECTORS AND EMPLOYEES (CONTINUED)
|
Year ending
31 March
2010
No.
|
Year ending
31 March
2009
No.
|
|||||||
Average number of persons employed
|
||||||||
Directors
|
4 | 4 | ||||||
Sales and Marketing
|
12 | 12 | ||||||
Operations
|
18 | 18 | ||||||
34 | 34 |
5.
|
INTEREST RECEIVABLE AND SIMILAR INCOME
|
Year ending
31 March
2010
£
|
Year ending
31 March
2009
£
|
|||||||
Other interest receivable
|
5,716 | 36,812 |
6.
|
INTEREST PAYABLE AND SIMILAR CHARGES
|
Year ending
31 March
2010
£
|
Year ending
31 March
2009
£
|
|||||||
Bank loans and overdraft
|
2,125,034 | 2,077,606 | ||||||
Loan arrangement amortisation costs
|
- | 112,118 | ||||||
2,125,034 | 2,189,724 |
Year ending
31 March
2010
£
|
Year ending
31 March
2009
£
|
|||||||
(a)Analysis of charge in the year
|
||||||||
Current taxation
|
||||||||
UK taxation
|
- | 180,197 | ||||||
Overseas taxation
|
108,692 | 93,733 | ||||||
Adjustments in respect of prior periods
|
26,180 | (174,127 | ) | |||||
Total current taxation
|
134,872 | 99,803 | ||||||
Total deferred taxation (credit)/charge
|
(71,618 | ) | 7,422 | |||||
Total tax charge for the year
|
63,254 | 107,225 |
Year ending
31 March
2010
£
|
Year ending
31 March
2009
£
|
|||||||
(b) Factors affecting the tax charge for the current year
|
||||||||
Loss on ordinary activities before tax
|
3,858,991 | 1,519,572 | ||||||
Tax on loss on ordinary activities at standard UK corporation tax rate of 28% (2009: 28%)
|
(1,080,517 | ) | (425,480 | ) | ||||
Effects of:
|
||||||||
Expenses not deductible for tax purposes
|
728,375 | 773,729 | ||||||
Difference between depreciation and capital allowances
|
33,356 | (36,651 | ) | |||||
Adjustment in respect of prior period
|
26,180 | (174,127 | ) | |||||
Other
|
418,791 | (10,891 | ) | |||||
Underlying foreign tax
|
8,687 | (26,777 | ) | |||||
Current year tax charge
|
134,872 | 99,803 |
8.
|
LOSS ATTRIBUTABLE TO THE COMPANY
|
9.
|
TANGIBLE FIXED ASSETS
|
Land and
buildings
£
|
Plant,
machinery,
tooling
and
motor
vehicles
£
|
Fixtures &
fittings,
computer
and other
equipment
£
|
Total
£
|
|||||||||||||
Group
|
||||||||||||||||
Cost
|
||||||||||||||||
At 1 April 2009
|
64,816 | 711,165 | 310,157 | 1,086,138 | ||||||||||||
Exchange Rate Revaluation
|
- | 2,186 | - | 2,186 | ||||||||||||
Additions
|
1,518 | 30,039 | 19,711 | 51,268 | ||||||||||||
At 31 March 2010
|
66,334 | 743,390 | 329,868 | 1,139,592 | ||||||||||||
Accumulated depreciation
|
||||||||||||||||
At 1 April 2009
|
49,690 | 252,134 | 244,744 | 546,568 | ||||||||||||
Exchange Rate Revaluation
|
- | 1,993 | - | 1,993 | ||||||||||||
Charge for the year
|
15,875 | 77,452 | 41,967 | 135,294 | ||||||||||||
At 31 March 2010
|
65,565 | 331,579 | 286,711 | 683,855 | ||||||||||||
Net book value
|
||||||||||||||||
At 31 March 2010
|
769 | 411,811 | 43,157 | 455,737 | ||||||||||||
At 31 March 2009
|
15,126 | 459,031 | 65,413 | 539,570 |
10.
|
INTANGIBLE FIXED ASSETS
|
Goodwill
£
|
Intellectual
property
£
|
Website
domains
£
|
Total
£
|
|||||||||||||
Group
|
||||||||||||||||
Cost
|
||||||||||||||||
At 1 April 2009 and 31 March 2010
|
19,195,216 | 200,000 | 12,500 | 19,407,716 | ||||||||||||
Accumulated depreciation
|
||||||||||||||||
At 1 April 2009
|
9,597,600 | 100,000 | 12,500 | 9,710,100 | ||||||||||||
Charge for the year
|
1,919,522 | 20,000 | - | 1,939,522 | ||||||||||||
At 31 March 2010
|
11,517,122 | 120,000 | 12,500 | 11,649,622 | ||||||||||||
Net book value
|
||||||||||||||||
At 31 March 2010
|
7,678,094 | 80,000 | - | 7,758,094 | ||||||||||||
At 31 March 2009
|
9,597,616 | 100,000 | - | 9,697,616 |
10.
|
INTANGIBLE FIXED ASSETS (CONTINUED)
|
Intellectual
property
£
|
||||
Company
|
||||
Cost
|
||||
At 1 April 2009 and 31 March 2010
|
200,000 | |||
Accumulated depreciation
|
||||
At 1 April 2009
|
100,000 | |||
Charge for the year
|
20,000 | |||
At 31 March 2010
|
120,000 | |||
Net book value
|
||||
At 31 March 2010
|
80,000 | |||
At 31 March 2009
|
100,000 |
11.
|
FIXED ASSET INVESTMENTS
|
Shares in
subsidiary
undertakings
£
|
||||
Company
|
||||
Cost
|
||||
At 1 April 2009 and 31 March 2010
|
21,317,332 |
|
The company holds the following investments in subsidiary undertakings:
|
Name
|
Country of incorporation/
registration and operation
|
Type of
shares
|
% of
nominal
value of
shares
|
Nature of
Business
|
|||
Femcare (Holdings) Limited
|
England
|
Ordinary
|
75 | * |
Holding Company
|
||
Femcare Distribution Limited
|
England
|
Ordinary
|
100 |
Holding Company
|
|||
Femcare Limited
|
England
|
Ordinary
|
100 | ** |
Medical Equipment
|
||
Femcare Urology Limited
|
England
|
Ordinary
|
100 | ** |
Medical Equipment
|
||
Femcare-Nikomed Limited
|
England
|
Ordinary
|
100 | ** |
Medical Equipment
|
||
Femcare Australia Pty Limited
|
Australia
|
Ordinary
|
100 | ** |
Medical Equipment
|
||
Percheron Limited
|
Isle of Man/England
|
Ordinary
|
100 |
Holding Company
|
|
* 25% held by Percheron Limited
|
2010
Group
£
|
2009
Group
£
|
|||||||
Raw materials
|
59,438 | 258,546 | ||||||
Work in progress
|
26,431 | 3,395 | ||||||
Finished goods
|
584,067 | 701,246 | ||||||
669,936 | 963,187 |
13.
|
DEBTORS: DUE WITHIN ONE YEAR
|
Group
2010
£
|
Company
2010
£
|
Group
2009
£
|
Company
2009
£
|
|||||||||||||
Trade debtors
|
1,124,443 | - | 1,765,306 | - | ||||||||||||
Other debtors and accrued income
|
509,910 | 165,773 | 499,948 | 201,309 | ||||||||||||
Other taxation and social security
|
- | - | 42,182 | - | ||||||||||||
Corporation tax debtor
|
142,712 | - | 134,400 | - | ||||||||||||
Deferred tax asset (see note 18)
|
184,004 | - | 112,386 | - | ||||||||||||
Group relief receivable
|
- | 2,523,364 | - | 2,093,793 | ||||||||||||
Amounts owed by group companies
|
- | 445,397 | - | 445,397 | ||||||||||||
1,961,069 | 3,134,534 | 2,554,222 | 2,740,499 |
Group
2010
£
|
Company
2010
£
|
Group
2009
£
|
Company
2009
£
|
|||||||||||||
Loans (see note 16)
|
200,000 | 200,000 | 300,000 | 300,000 | ||||||||||||
Bank overdraft (see note 16)
|
- | - | 24,687 | 24,687 | ||||||||||||
Trade creditors
|
656,837 | - | 770,452 | - | ||||||||||||
Amounts due to group undertakings
|
- | 9,708,420 | - | 8,904,146 | ||||||||||||
Other creditors and accruals
|
1,652,821 | 80,924 | 1,167,932 | 259,559 | ||||||||||||
Other taxation and social security
|
96,117 | - | 7,519 | - | ||||||||||||
2,605,775 | 9,989,344 | 2,270,590 | 9,488,392 |
15.
|
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
|
2010
£
|
2009
£
|
|||||||
Group and company
|
||||||||
Bank borrowings (see note 16)
|
3,800,000 | 4,000,000 | ||||||
Unsecured loan notes net of loan issue costs (see note 16)
|
11,670,000 | 11,670,000 | ||||||
Accrued interest on unsecured loan notes (see note 16)
|
8,189,367 | 6,380,741 | ||||||
23,659,367 | 22,050,741 |
16.
|
MATURITY PROFILE OF FINANCIAL LIABILITIES
|
|
Bank
borrowings
£
|
Unsecured
loan notes
£
|
Total
£
|
|||||||||
Group and Company
|
||||||||||||
Borrowing repayable:
|
||||||||||||
Within one year or on demand
|
200,000 | - | 200,000 | |||||||||
Within one to two years
|
500,000 | - | 500,000 | |||||||||
Within two to five years
|
3,300,000 | 10,350,000 | 13,650,000 | |||||||||
After five years
|
- | 1,320,000 | 1,320,000 | |||||||||
4,000,000 | 11,670,000 | 15,670,000 |
|
The £1,320,000 unsecured loan notes are subordinate to the £10,350,000 unsecured loan notes and the bank borrowings and are redeemable on the sale or listing of the company. The £1,320,000 unsecured loan notes bear interest at 5%. The interest is rolled up and is payable on redemption.
|
|
The £10,350,000 unsecured loan notes are subordinate to the bank borrowings and were redeemable in August 2012, however, on 29 January 2010, a deed of amendment was signed changing the redemption date to 1 January 2015. However, they may be redeemed earlier than this date, subject to other outstanding financial commitments. The £10,350,000 unsecured loan notes bear interest at 10%. The interest for the first two years is rolled up and is payable on redemption. Thereafter, interest is payable twice yearly (in May and November), although may be deferred with agreement. It has been agreed that payment of all interest payable is deferred until no earlier than 31 March 2011 or redemption of the loan note if earlier.
|
17.
|
FINANCIAL COMMITMENTS
|
Land &
buildings
2010
£
|
Other
2010
£
|
Total
2010
£
|
Land &
buildings
2009
£
|
Other
2009
£
|
Total
2009
£
|
|||||||||||||||||||
Group
|
||||||||||||||||||||||||
Annual operating lease commitments which expire:
|
||||||||||||||||||||||||
Within one year or less
|
37,000 | 35,944 | 72,944 | 74,161 | - | 74,161 | ||||||||||||||||||
Between two and five years
|
73,846 | 38,722 | 112,568 | - | 111,755 | 111,755 |
18.
|
DEFERRED TAXATION
|
Group
2010
£
|
Group
2009
£
|
|||||||
At 1 April 2009
|
112,386 | 119,808 | ||||||
Profit and loss account
|
71,618 | (7,422 | ) | |||||
At 31 March 2010
|
184,004 | 112,386 |
Group 2010
£
|
Group 2009
£
|
|||||||
Accelerated capital allowances
|
120,048 | 93,084 | ||||||
Short term timing differences
|
41,998 | 19,302 | ||||||
Losses
|
21,958 | - | ||||||
184,004 | 112,386 |
19. |
SHARE CAPITAL
|
2010
£
|
2009
£
|
|||||||
Authorised
|
||||||||
375,455 ‘A’ ordinary shares of £0.01 each
|
3,755 | 3,755 | ||||||
545,000 ‘B’ ordinary shares of £0.01 each
|
5,450 | 5,450 | ||||||
102,273 ‘C’ ordinary shares of £0.01 each
|
1,022 | 1,022 | ||||||
10,227 | 10,227 | |||||||
Called up, allotted and fully paid
|
||||||||
355,000 ‘A’ ordinary shares of £0.01 each
|
3,550 | 3,550 | ||||||
545,000 ‘B’ ordinary shares of £0.01 each
|
5,450 | 5,450 | ||||||
100,000 ‘C’ ordinary shares of £0.01 each
|
1,000 | 1,000 | ||||||
10,000 | 10,000 |
19.
|
SHARE CAPITAL (CONTINUED)
|
|
Share rights
|
|
a)
|
Income: The profits of the company available for distribution shall be applied firstly in paying to the holders of the B Ordinary Shares in respect of each financial year of the Company, a cumulative preferential net cash dividend of a sum equal to no more than 10% of the net profits of the group,
|
|
b)
|
Voting: The B Ordinary Shares in certain specific circumstances (mainly in a Financial Default or breach of the Shareholders Agreement) and subject to certain defined steps being adhered to, have enhanced voting rights to exercise on a poll nine times the total number of votes conferred by all the shares of all other classes for the time being in issue. The C Ordinary Shares provide the right to attend but not to vote at any general meeting,
|
|
c)
|
Restrictions: All classes of Ordinary Shares are subject to certain restrictions,
|
|
d)
|
Return of Capital on Liquidation: all classes of shares rank pari passu and have equal rights.
|
Share capital
£
|
Share
premium
account
£
|
Own shares
£
|
Profit
and loss
account
£
|
Total
£
|
||||||||||||||||
Group
|
||||||||||||||||||||
At 1 April 2009
|
10,000 | 405,905 | (132,000 | ) | (9,741,203 | ) | (9,457,298 | ) | ||||||||||||
Loss for the year
|
- | - | - | (3,922,245 | ) | (3,922,245 | ) | |||||||||||||
At 31 March 2010
|
10,000 | 405,905 | (132,000 | ) | (13,663,448 | ) | (13,379,543 | ) |
Company
|
||||||||||||||||||||
At 1 April 2009
|
10,000 | 405,905 | (132,000 | ) | (7,665,207 | ) | (7,381,302 | ) | ||||||||||||
Loss for the year
|
- | - | - | (1,722,893 | ) | (1,722,893 | ) | |||||||||||||
At 31 March 2010
|
10,000 | 405,905 | (132,000 | ) | (9,388,100 | ) | (9,104,195 | ) |
21.
|
RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS’ DEFICIT
|
Group
2010
£
|
Group
2009
£
|
Company
2010
£
|
Company
2009
£
|
|||||||||||||
Loss for the financial year
|
(3,922,245 | ) | (1,626,797 | ) | (1,722,893 | ) | (1,597,586 | ) | ||||||||
(Sale)/purchase of shares
|
- | (27,000 | ) | - | (27,000 | ) | ||||||||||
Net deductions to shareholders’ deficit
|
(3,922,245 | ) | (1,653,797 | ) | (1,722,893 | ) | (1,624,586 | ) | ||||||||
Opening shareholders’ deficit
|
(9,457,298 | ) | (7,803,501 | ) | (7,381,302 | ) | (5,756,716 | ) | ||||||||
Closing shareholders’ deficit
|
(13,379,543 | ) | (9,457,298 | ) | (9,104,195 | ) | (7,381,302 | ) |
22.
|
RECONCILIATION OF OPERATING (LOSS)/PROFIT TO NET CASH INFLOW FROM OPERATING ACTIVITIES
|
2010
£
|
2009
£
|
|||||||
Operating (loss)/profit
|
(1,739,673 | ) | 633,340 | |||||
Depreciation and amortisation
|
2,076,809 | 2,046,161 | ||||||
Decrease/(Increase) in stocks
|
293,251 | (20,078 | ) | |||||
Decrease/(Increase) in debtors
|
673,083 | (598,476 | ) | |||||
Increase/(Decrease) in creditors
|
459,872 | (189,715 | ) | |||||
Net cash inflow from operating activities
|
1,763,342 | 1,871,232 |
23.
|
ANALYSIS OF NET DEBT
|
At
1 April
2009
£
|
Cash flow
£
|
At
31 March
2010
£
|
||||||||||
Cash at bank and in hand
|
1,109,438 | 931,325 | 2,040,763 | |||||||||
Overdraft
|
(24,687 | ) | 24,687 | - | ||||||||
1,084,751 | 956,012 | 2,040,763 | ||||||||||
Loans due within one year
|
(300,000 | ) | 100,000 | (200,000 | ) | |||||||
Loans due after one year
|
(15,670,000 | ) | 200,000 | (15,470,000 | ) | |||||||
(14,885,249 | ) | 1,256,012 | (13,629,237 | ) |
24.
|
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
|
2010
£
|
2009
£
|
|||||||
Increase/(decrease) in cash and overdrafts
|
956,012 | (603,379 | ) | |||||
Cash outflow from movement in debt and lease financing
|
300,000 | 1,087,882 | ||||||
Movement in net debt
|
1,256,012 | 484,503 | ||||||
Net debt at beginning of the year
|
(14,885,249 | ) | (15,369,752 | ) | ||||
Net debt at end of year
|
(13,629,237 | ) | (14,885,249 | ) |
25.
|
DERIVATIVES NOT INCLUDED AT FAIR VALUE
|
Notional amount
2010
£
|
Fair
value
2010
£
|
|||||||
Interest rate swap
|
2,666,666 | 12,310 |
26.
|
GUARANTEE
|
27.
|
TRANSACTIONS WITH RELATED PARTIES
|
2010
£
|
2009
£
|
|||||||
Triton Enterprises Limited
|
359,454 | 395,073 |
27.
|
TRANSACTIONS WITH RELATED PARTIES (CONTINUED)
|
|
Purchases
|
2010
£
|
2009
£
|
|||||||
AirIT Limited
|
17,297 | 16,226 | ||||||
Barclays Private Equity
|
- | - |
2010
£
|
2009
£
|
|||||||
Triton Enterprises Limited
|
48,323 | 22,287 |
2010
£
|
2009
£
|
|||||||
Due to funds sponsored or managed by Barclays Private Equity Limited
|
18,113,108 | 16,389,643 | ||||||
Due to other shareholders of the company
|
1,746,259 | 1,661,098 |
2010
£
|
2009
£
|
|||||||
Group relief receivable
|
2,523,364 | 2,093,793 |
2010
£
|
2009
£
|
|||||||
G M Filshie
|
74,171 | 112,828 |
27.
|
TRANSACTIONS WITH RELATED PARTIES (CONTINUED)
|
28.
|
CONTROLLING PARTY
|
Year ending
31 March
2010
£
|
Year ending
31 March
2009
£
|
|||||||
Administrative expenses (including net exceptional costs credit of (£29,375) (2009: £29,832 charge)
|
(7,430 | ) | (60,890 | ) | ||||
Amortisation of intellectual property
|
(20,000 | ) | (20,000 | ) | ||||
OPERATING LOSS
|
(27,430 | ) | (80,890 | ) | ||||
Interest receivable and similar income
|
- | 378 | ||||||
Interest payable and similar charges
|
(2,125,034 | ) | (2,189,724 | ) | ||||
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION
|
(2,152,464 | ) | (2,270,236 | ) | ||||
Tax credit on loss on ordinary activities
|
429,571 | 672,650 | ||||||
RETAINED LOSS FOR THE FINANCIAL YEAR
|
(1,722,893 | ) | (1,597,586 | ) |
|
(i)
|
Adjustment to FY 2010 Income Statement audited per UK GAAP
|
|
Net Income as shown in the FY 2010 financial statements (UK GAAP): (£3,922,245)
|
|
(ii)
|
Adjustment to March 31, 2010 Balance Sheet audited per UK GAAP
|
|
a)
|
Goodwill per US GAAP would have been booked related to the creation of a long term deferred tax liability (DTL) for the difference between a reduction in the reported income tax provision over the life of the amortized intangible assets (I/A) versus the fact that the amortization of I/A is not tax deductible.
|
|
b)
|
The balance of the DTL as of March 31, 2010 per US GAAP.
|
|
c)
|
Shareholder equity as of March 31, 2010.
|
As Reported
|
As Adjusted
|
||||
Assets
|
Per UK GAAP
|
Per US GAAP
|
|||
Goodwill
|
(a)
|
- 0 -
|
£ 5,434,160
|
from creation of DTL
|
|
Total intangible assets
|
£ 7,758,094
|
£ 13,192,254
|
|||
Long Term Liabilities
|
|||||
Deferred tax liability
|
(b)
|
- 0 -
|
£ 2,172,266
|
from amortization of I/A
|
|
Total deferred taxes
|
£ (184,004)
|
£ 1,988,270
|
|||
Shareholders’ Equity
|
|||||
Retained earnings
|
(c)
|
£ (13,663,448)
|
£ (10,401,554)
|
From decrease in net loss
|
|
Total shareholders’ deficit
|
£ (13,379,543)
|
£ (10,117,649)
|
FEMCARE GROUP LIMITED
|
||||||||
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEET
|
||||||||
(in thousands)
|
||||||||
ASSETS
|
DECEMBER 31, 2010
|
MARCH 31, 2010
|
||||||
Current assets:
|
||||||||
Cash
|
£ | 3,523 | £ | 2,041 | ||||
Accounts receivable - net
|
990 | 1,451 | ||||||
Other receivables
|
29 | 34 | ||||||
Inventories
|
663 | 670 | ||||||
Prepayments
|
407 | 475 | ||||||
Other current assets
|
1 | 1 | ||||||
Total current assets
|
5,614 | 4,672 | ||||||
Property and equipment - net
|
394 | 456 | ||||||
Intangible assets
|
19,195 | 19,195 | ||||||
Intangible assets - accumulated amortization
|
(12,957 | ) | (11,517 | ) | ||||
Intangible assets - net
|
6,238 | 7,678 | ||||||
Other intangible assets
|
213 | 213 | ||||||
Other intangible assets - accumulated amortization
|
(148 | ) | (133 | ) | ||||
Other intangible assets - net
|
65 | 80 | ||||||
TOTAL
|
£ | 12,311 | £ | 12,886 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
£ | 551 | £ | 657 | ||||
Accrued expenses
|
1,033 | 1,653 | ||||||
Current portion of notes payable
|
180 | 200 | ||||||
Other
|
332 | 96 | ||||||
Total current liabilities
|
2,095 | 2,606 | ||||||
Long term debt
|
24,964 | 23,659 | ||||||
Total liabilities
|
27,059 | 26,265 | ||||||
Stockholders' equity:
|
||||||||
Preferred Stock - £.01 par value; authorized - 545 shares;
|
||||||||
issued - 545 shares at 31-December 2010 and 31-March 2010
|
5 | 5 | ||||||
Common Stock - £.01 par value; authorized - 478 shares;
|
||||||||
issued - 455 shares at 31-December 2010 and 31-March 2010
|
5 | 5 | ||||||
Additional paid-in capital
|
406 | 406 | ||||||
Treasury shares
|
(132 | ) | (132 | ) | ||||
Retained earnings
|
(15,031 | ) | (13,663 | ) | ||||
Total stockholders' equity
|
(14,748 | ) | (13,380 | ) | ||||
TOTAL
|
£ | 12,311 | £ | 12,886 | ||||
See accompanying notes to consolidated condensed financial statements.
|
FEMCARE GROUP LIMITED
|
||||||||||||
UNAUDITED CONSOLIDATED CONDENSED STATEMENT OF INCOME
|
||||||||||||
(In thousands)
|
||||||||||||
Nine Months Ended |
Year Ended
|
|||||||||||
December 31,
|
March 31,
|
|||||||||||
2009
|
2010
|
2010
|
||||||||||
|
||||||||||||
Sales, net
|
£ | 5,764 | £ | 7,566 | £ | 7,996 | ||||||
Cost of goods sold
|
1,606 | 1,851 | 2,224 | |||||||||
Gross profit
|
4,158 | 5,715 | 5,773 | |||||||||
Operating expense:
|
||||||||||||
Sales and marketing
|
1,090 | 559 | 1,444 | |||||||||
Research and development
|
180 | 152 | 297 | |||||||||
General and administrative
|
4,603 | 3,449 | 5,919 | |||||||||
Total operating expense
|
5,872 | 4,159 | 7,660 | |||||||||
Operating income
|
(1,714 | ) | 1,555 | (1,888 | ) | |||||||
Other income (expense):
|
||||||||||||
Dividend and interest income
|
4 | 10 | 6 | |||||||||
Royalty income
|
105 | 90 | 148 | |||||||||
Interest expense
|
(1,598 | ) | (1,702 | ) | (2,125 | ) | ||||||
Total other income (expense)
|
(1,489 | ) | (1,602 | ) | (1,971 | ) | ||||||
Income (loss) before provision for income taxes
|
(3,203 | ) | (47 | ) | (3,859 | ) | ||||||
Provison for income taxes
|
49 | 442 | 63 | |||||||||
Net income
|
£ | (3,252 | ) | £ | (489 | ) | £ | (3,922 | ) | |||
See accompanying notes to consolidated condensed financial statements.
|
FEMCARE GROUP LIMITED
|
|||||||||||||
UNAUDITED CONSOLIDATED CONDENSED STATEMENT OF CASH FLOW
|
|||||||||||||
(In thousands)
|
|||||||||||||
Nine Months Ended
|
Year Ended
|
||||||||||||
December 31,
|
March 31,
|
||||||||||||
2009
|
2010
|
2010
|
|||||||||||
Cash flows from operating activities:
|
|||||||||||||
Net income
|
£ | (3,252 | ) | £ | (489 | ) | £ | (3,922 | ) | ||||
Adjustments to reconcile net income to net
|
|||||||||||||
cash provided by operating activities:
|
|||||||||||||
Depreciation and amortization
|
1,553 | 1,535 | 2,075 | ||||||||||
Subordinated loan interest payable
|
1,598 | 1,702 | 1,724 | ||||||||||
Changes in operating assets and liabilities
|
|||||||||||||
Accounts receivable
|
173 | 537 | 721 | ||||||||||
Accrued interest and other receivables
|
4 | 10 | 24 | ||||||||||
Inventories
|
110 | 54 | 303 | ||||||||||
Accounts payable
|
(513 | ) | (498 | ) | (114 | ) | |||||||
Accrued expenses
|
1,093 | (1,150 | ) | 573 | |||||||||
Total adjustments
|
4,016 | 2,190 | 5,306 | ||||||||||
Net cash provided by operating activities
|
764 | 1,701 | 1,384 | ||||||||||
Cash flows from investing activities:
|
|||||||||||||
Capital expenditures for:
|
|||||||||||||
Property and equipment
|
(53 | ) | (19 | ) | (53 | ) | |||||||
Net cash used in investing activities
|
(53 | ) | (19 | ) | (53 | ) | |||||||
Cash flows from financing activities:
|
|||||||||||||
Repayments of note payable
|
(300 | ) | (200 | ) | (300 | ) | |||||||
Net cash used in financing activities
|
(300 | ) | (200 | ) | (300 | ) | |||||||
Effect of exchange rate changes on cash
|
(75 | ) | |||||||||||
Net increase (decrease) in cash and cash equivalents
|
411 | 1,482 | 956 | ||||||||||
Cash at beginning of period
|
1,085 | 2,041 | 1,085 | ||||||||||
Cash at end of period
|
£ | 1,496 | £ | 3,523 | £ | 2,041 | |||||||
See accompanying notes to unaudited consolidated condensed financial statements.
|
Long leasehold land and buildings
|
Over lease term
|
Plant and machinery
|
1-10 years
|
Furniture, equipment and tooling
|
3-10 years
|
Computer equipment
|
3-4 years
|
Motor vehicles
|
4 years
|
December 31,
|
March 31,
|
|||||||
2010
|
2010
|
|||||||
Finished goods
|
£ | 58 | £ | 60 | ||||
Work-in-process
|
28 | 26 | ||||||
Raw materials
|
577 | 584 | ||||||
Total
|
£ | 663 | £ | 670 |
Property and equipment consists of the following:
|
||||||||
December 31
|
March 31
|
|||||||
2010
|
2010
|
|||||||
Land and buildings
|
£ | 66 | £ | 66 | ||||
Plant, machinery, tooling and motor vehicles
|
757 | 743 | ||||||
Furniture, fittings, computer and other equipment
|
335 | 330 | ||||||
1,158 | 1,140 | |||||||
Accumulated depreciation
|
(764 | ) | (684 | ) | ||||
£ | 394 | £ | 456 |
December 31
|
March 31
|
|||||||
2010
|
2010
|
|||||||
Secured loan notes
|
£ | 3,620 | £ | 3,800 | ||||
Unsecured loan notes, net of loan issue costs
|
11,670 | 11,670 | ||||||
Accrued interest on unsecured loan notes
|
9,674 | 8,189 | ||||||
£ | 24,964 | £ | 23,659 |
(i)
|
Adjustment to Nine Months (9M) Ending December 31, 2010 and 2009 Income Statements prepared per UK GAAP
|
|
(ii)
|
Adjustment to December 31, 2010 Balance Sheet prepared per UK GAAP
|
a)
|
Goodwill per US GAAP would have been booked related to the creation of a long term deferred tax liability (DTL) for the difference between a reduction in the reported income tax provision over the life of the amortized intangible assets (I/A) versus the fact that the amortization of I/A is not tax deductible.
|
b)
|
The balance of the DTL as of December 31, 2010 per US GAAP.
|
c)
|
Shareholder equity as of December 31, 2010.
|
As Reported
|
As Adjusted
|
|||||||||
Assets
|
Per UK GAAP
|
Per US GAAP
|
||||||||
Goodwill
|
(a)
|
- 0 - | £ | 5,434 |
from creation of DTL
|
|||||
Total intangible assets
|
£ | 6,303 | £ | 11,738 | ||||||
Long Term Liabilities
|
||||||||||
Deferred tax liability
|
(b)
|
- 0 - | £ | 1,765 |
from amortization of I/A
|
|||||
Total deferred taxes
|
£ | (332 | ) | £ | 1,433 | |||||
Shareholders’ Equity
|
||||||||||
Retained earnings
|
(c)
|
(15,031 | ) | £ | (11,362 | ) |
from decrease in net loss
|
|||
Total shareholders’ deficit
|
£ | (14,748 | ) | £ | (11,079 | ) |
UTAH MEDICAL PRODUCTS, INC.
|
UNAUDITED PRO FORMA COMBINED
|
CONDENSED CONSOLIDATED BALANCE SHEET
|
(In thousands)
|
|||||||||||||||||
Historical as of
December 31, 2010
|
|||||||||||||||||
Utah
Medical
|
Femcare
Group
|
Pro forma
adjustments
|
Pro forma
combined
|
||||||||||||||
ASSETS
|
|||||||||||||||||
Current assets:
|
|||||||||||||||||
Cash
|
$ | 3,818 | $ | 5,499 | $ | (2,547 | ) |
(A)
|
$ | 6,770 | |||||||
Investments, available-for-sale
|
14,718 | - | (14,718 | ) |
(A)
|
- | |||||||||||
Accounts and other receivables, net
|
3,164 | 1,591 | (2 | ) |
(B)
|
4,753 | |||||||||||
Inventories
|
3,097 | 1,035 | 4,132 | ||||||||||||||
Prepaid expenses and other current assets
|
161 | 635 | (203 | ) |
(B)
|
593 | |||||||||||
Other current assets
|
185 | 2 | (2 | ) |
(B)
|
185 | |||||||||||
Total current assets
|
25,142 | 8,762 | (17,472 | ) | 16,432 | ||||||||||||
Property and equipment, net
|
8,750 | 616 | 9,365 | ||||||||||||||
Goodwill - net
|
7,191 | - | 8,771 |
(C)
|
15,963 | ||||||||||||
Intangible assets - net
|
- | 9,738 | 27,466 |
(D)
|
37,203 | ||||||||||||
Other intangible assets - net
|
155 | 101 | 256 | ||||||||||||||
Total assets
|
$ | 41,238 | $ | 19,217 | $ | 18,764 | $ | 79,220 | |||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|||||||||||||||||
Current liabilities:
|
|||||||||||||||||
Accounts payable
|
$ | 398 | $ | 860 | $ | 1,257 | |||||||||||
Accrued expenses
|
1,290 | 1,612 | (469 | ) |
(B)
|
2,433 | |||||||||||
Current portion of notes payable
|
215 | 281 | 5,016 |
(E)
|
5,513 | ||||||||||||
Other
|
- | 518 | (241 | ) |
(B)
|
277 | |||||||||||
Total current liabilities
|
1,903 | 3,271 | 4,307 | 9,481 | |||||||||||||
Long term debt
|
909 | 38,966 | (17,776 | ) |
(E)
|
22,099 | |||||||||||
Deferred tax liability - intangible assets
|
- | - | 8,771 |
(F)
|
8,771 | ||||||||||||
Other long term liabilities
|
634 | - | 443 |
(B)
|
1,078 | ||||||||||||
Total liabilities
|
3,446 | 42,236 | (4,255 | ) | 41,428 | ||||||||||||
Stockholders' equity:
|
|||||||||||||||||
Preferred stock
|
- | 9 | (9 | ) |
(G)
|
- | |||||||||||
Common stock
|
36 | 7 | (7 | ) |
(G)
|
36 | |||||||||||
Accumulated other comprehensive (loss)
|
(1,275 | ) | - | - | (1,275 | ) | |||||||||||
Additional paid-in capital
|
107 | 634 | (634 | ) |
(G)
|
107 | |||||||||||
Treasury shares
|
- | (206 | ) | 206 |
(G)
|
- | |||||||||||
Retained earnings (accumulated deficit)
|
38,924 | (23,462 | ) | 23,462 |
(G)
|
38,924 | |||||||||||
Total stockholders' equity
|
37,792 | (23,019 | ) | 23,019 | 37,792 | ||||||||||||
Total liabilities and stockholders' equity
|
$ | 41,238 | $ | 19,217 | $ | 18,764 | $ | 79,220 | |||||||||
See notes to unaudited pro forma combined condensed consolidated financial statements.
|
UTAH MEDICAL PRODUCTS, INC.
|
|||||||||||||||||
UNAUDITED PRO FORMA COMBINED CONDENSED
|
|||||||||||||||||
CONSOLIDATED STATEMENT OF OPERATIONS
|
|||||||||||||||||
(In thousands, except per share amounts)
|
|||||||||||||||||
Historical
For the Twelve Months Ended
December 31, 2010
|
|||||||||||||||||
Utah Medical
|
Femcare Group
|
Pro forma Adjust-
ments
|
Pro forma Combined
|
||||||||||||||
Sales, net
|
$ | 25,121 | $ | 15,367 | $ | $ | 40,488 | ||||||||||
Cost of goods sold
|
11,911 | 4,709 | 16,620 | ||||||||||||||
Gross profit
|
13,209 | 10,658 | 23,867 | ||||||||||||||
Operating expense:
|
|||||||||||||||||
Sales and marketing
|
1,537 | 2,234 | 3,772 | ||||||||||||||
Research and development
|
397 | 417 | 813 | ||||||||||||||
General and administrative
|
2,354 | 6,376 | (545 | ) |
(H)
|
8,185 | |||||||||||
Total operating expense
|
4,288 | 9,027 | (545 | ) | 12,770 | ||||||||||||
Income from operations
|
8,922 | 1,631 | 545 | 11,097 | |||||||||||||
Other income (expense):
|
|||||||||||||||||
Dividend and interest income
|
48 | 19 | 67 | ||||||||||||||
Capital gains and (losses) on investments
|
(9 | ) | - | (9 | ) | ||||||||||||
Royalty income
|
- | 125 | 125 | ||||||||||||||
Interest expense
|
(25 | ) | (3,456 | ) | 2,402 |
(I)
|
(1,079 | ) | |||||||||
Other, net
|
104 | - | 104 | ||||||||||||||
Total other income (expense)
|
119 | (3,312 | ) | 2,402 | (791 | ) | |||||||||||
Income before provision for income taxes
|
9,041 | (1,682 | ) | 2,947 | 10,306 | ||||||||||||
Provision for income taxes
|
3,026 | 669 | (417 | ) |
(J)
|
3,279 | |||||||||||
Net income
|
$ | 6,014 | $ | (2,351 | ) | $ | 3,364 | $ | 7,027 | ||||||||
Earnings per common share (basic):
|
$ | 1.66 | $ | 1.94 | |||||||||||||
Earnings per common share (diluted):
|
$ | 1.65 | $ | 1.93 | |||||||||||||
Shares outstanding - basic
|
3,621 | 3,621 | |||||||||||||||
Shares outstanding - diluted
|
3,643 | 3,643 | |||||||||||||||
See notes to unaudited pro forma combined condensed consolidated financial statements.
|
|||||||||||||||||
Assets Acquired
|
||||||
Accounts receivable
|
$ | 2,176 | ||||
Prepaid expenses
|
344 | |||||
Inventory
|
1,319 | |||||
Property and equipment
|
606 | |||||
Identifiable Intangibles
|
||||||
Patents
|
97 | |||||
Non-compete agreements
|
162 | |||||
Trademarks, trade names
|
11,559 | |||||
Customer relationships
|
11,559 | |||||
Regulatory approvals & product certifications
|
15,419 | |||||
Goodwill
|
9,084 | |||||
Total assets acquired
|
52,325 | |||||
Liabilities Assumed
|
||||||
Accounts payable
|
1,107 | |||||
Accrued expenses
|
1,049 | |||||
Deferred tax liability
|
9,084 | |||||
Total liabilities assumed
|
11,241 | |||||
Net assets acquired
|
$ | 41,084 |
|
A.
|
To record cash amounts paid to the prior owners of Femcare by UTMD as well as cash removed from Femcare by the former owners. UTMD liquidated its investments to raise the required cash.
|
|
B
|
To recognize amounts which were the responsibility of Femcare’s former owners as part of the acquisition.
|
|
C.
|
To record the estimated fair value of goodwill resulting from the acquisition (see note 2, above).
|
|
D.
|
To remove Femcare’s existing intangible assets and associated accumulated amortization, all of which was associated with the former owner’s purchase of Femcare in 2004, and to record the estimated value of the intangibles assets resulting from the acquisitions (see note 2, above).
|
|
E.
|
To remove Femcare’s existing notes payable, all of which were retired at the time of the acquisition, and to record the debt issued in connection with the acquisition (see note 3, above).
|
|
F.
|
Deferred tax liabilities were recognized based on differences between the tax basis of the identifiable intangible assets acquired and the values recorded for financial reporting purposes. Pro forma tax rates between 23% and 28% were used, in accordance with scheduled UK corporate tax rates, which decrease from 28% on January 1, 2011 to 23% on April 1, 2014.
|
|
G.
|
Represents the elimination of Femcare’s historical stockholders’ equity.
|
|
H.
|
To remove $2,976 in 2010 amortization expense on Femcare goodwill eliminated by the acquisition, to remove nonrecurring acquisition related expenses, and to record $2,505 in incremental amortization of identifiable intangibles (see note 2, above) resulting from the acquisition.
|
|
I.
|
To remove Femcare’s 2010 interest expense, all of which was related to debt eliminated in the acquisition, and to recognize incremental interest expense on debt issued as a result of the acquisition. Interest expense was estimated based on the average one-month LIBOR rate prevailing during the year ended December 31, 2010 for the portion of the debt that is subject to a floating rate, and on the fixed rates UTMD will pay over the term of the loans on the portion of the debt that has been fixed.
|
|
J.
|
To record the impact on tax expense of the pro forma adjustments.
|