-----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, P6vHkQW1seFf+XMiRyHvvD/YamxMB1GfYZshr0N70z/wBGaNO+1hRnCThh8cYyh/ r8mL78U0sZG25oQLaRQ2DQ== 0001169232-04-005466.txt : 20041104 0001169232-04-005466.hdr.sgml : 20041104 20041104123624 ACCESSION NUMBER: 0001169232-04-005466 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041030 ITEM INFORMATION: Completion of Acquisition or Disposition of Assets ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20041104 DATE AS OF CHANGE: 20041104 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EZ EM INC CENTRAL INDEX KEY: 0000727008 STANDARD INDUSTRIAL CLASSIFICATION: IN VITRO & IN VIVO DIAGNOSTIC SUBSTANCES [2835] IRS NUMBER: 111999504 STATE OF INCORPORATION: DE FISCAL YEAR END: 0529 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-100878 FILM NUMBER: 041118732 BUSINESS ADDRESS: STREET 1: 717 MAIN ST CITY: WESTBURY STATE: NY ZIP: 11590 BUSINESS PHONE: 5163338230 8-K 1 d61098_8k.txt CURRENT REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 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): October 30, 2004 ---------------- E-Z-EM, INC. ------------------------------------------------------ (Exact Name of Registrant as Specified in its Charter) Delaware ---------------------------------------------- (State or Other Jurisdiction of Incorporation) 1-11479 11-1999504 ------------------------ --------------------------------- (Commission File Number) (IRS Employer Identification No.) 1111 Marcus Avenue, Lake Success, New York 11042 ------------------------------------------ ---------- (Address of Principal Executive Offices) (Zip Code) (516) 333-8230 ---------------------------------------------------- (Registrant's telephone number, including area code) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions. [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.01 Completion of Acquisition or Disposition of Assets On October 30, 2004, E-Z-EM, Inc. (the "Company") completed the spin-off of its subsidiary, AngioDynamics, Inc. when it distributed .856377 of a share of AngioDynamics common stock as a dividend on each outstanding share of E-Z-EM common stock to E-Z-EM stockholders of record as of October 11, 2004. An aggregate of 9.2 million shares was distributed by the Company. A copy of the press release issued by the Company on November 4, 2004 announcing its completion of the spin-off is being filed as Exhibit 99.1 to this Form 8-K and is incorporated by reference in its entirety. ITEM 9.01 Financial Statements and Exhibits (b) Pro Forma financial information PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The unaudited pro forma condensed consolidated financial information of the Company is based on and should be read in conjunction with the historical consolidated financial statements and notes thereto appearing in the Company's Annual Report on Form 10-K for the fiscal year ended May 29, 2004 and the unaudited consolidated financial statements filed in the Company's Quarterly Report on Form 10-Q for the thirteen weeks ended August 28, 2004. The Pro Forma Condensed Consolidated Balance Sheet as of August 28, 2004 reflects the financial position of the Company after giving effect to the spin-off of AngioDynamics and assumes the spin-off took place on August 28, 2004. The Pro Forma Condensed Consolidated Statements of Earnings for the thirteen weeks ended August 28, 2004 and the fifty-two weeks ended May 29, 2004, May 31, 2003 and June 1, 2002 assume that the spin-off of AngioDynamics took place at the beginning of the fifty-two week period ended June 1, 2002. In the opinion of management, the accompanying pro forma condensed consolidated financial information includes all material adjustments necessary to reflect, on a pro forma basis, the impact of the spin-off on the historical financial information of the Company. The adjustments are described in the notes to the unaudited pro forma condensed consolidated financial statements and are set forth in the "Pro Forma Adjustments" columns. The unaudited pro forma condensed consolidated financial information has been presented for illustrative purposes only and is not necessarily indicative of the future financial position or future results of operations of the Company, or of the financial position or results of operations of the Company that would have actually occurred had the transaction been in effect as of the date or for the periods presented. 2 E-Z-EM, Inc. and Subsidiaries PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET August 28, 2004 (unaudited)
Pro Forma Adjustments --------------------- As Angio- Pro Reported Dynamics (A) Other Forma -------- ------------ ----- ----- (in thousands) ASSETS CURRENT ASSETS Cash and cash equivalents................... $ 30,127 $20,749 $ 9,378 Restricted cash............................. 102 102 Debt and equity securities, at fair value... 16,923 739 16,184 Accounts receivable, net.................... 22,309 7,176 $ 409 (B) 15,542 Inventories................................. 29,371 9,216 55 (C) 20,210 Other current assets........................ 6,719 1,221 5,498 -------- ------- ------- ------- Total current assets...................... 105,551 39,203 464 66,812 PROPERTY, PLANT AND EQUIPMENT - AT COST, net................................ 23,520 7,450 16,070 OTHER ASSETS.................................. 13,314 1,977 11,337 -------- ------- ------- ------- $142,385 $48,630 $ 464 $94,219 ======== ======= ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Notes payable............................... $ 394 $ 394 Current maturities of long-term debt........ 291 $ 160 131 Accounts payable............................ 6,806 2,122 $ 106 (B) 4,790 Accrued liabilities......................... 7,605 2,107 5,498 Accrued income taxes........................ 590 145 445 Due to E-Z-EM, Inc.......................... 303 303 (B) -------- ------- ------- ------- Total current liabilities................. 15,686 4,837 409 11,258 OTHER NONCURRENT LIABILITIES.................. 6,735 3,060 3,675 MINORITY INTEREST............................. 7,983 (7,983) (D) -------- ------- ------- ------- Total liabilities......................... 30,404 7,897 (7,574) 14,933 STOCKHOLDERS' EQUITY.......................... 111,981 40,733 8,038 (E) 79,286 -------- ------- ------- ------- $142,385 $48,630 $ 464 $94,219 ======== ======= ======= =======
See accompanying Notes to Pro Forma Condensed Financial Information. 3 E-Z-EM, Inc. and Subsidiaries PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS Thirteen weeks ended August 28, 2004 (unaudited)
Pro Forma Adjustments --------------------- As Angio- Pro Reported Dynamics (F) Other Forma -------- ------------ ----- ----- (in thousands, except per share data) Net sales..................................... $36,870 $13,105 $247 (G) $24,012 Cost of goods sold............................ 19,855 6,112 252 (H) 13,995 ------- ------- ---- ------- Gross profit.............................. 17,015 6,993 (5) 10,017 ------- ------- ---- ------- Operating expenses Selling and administrative.................. 13,077 4,595 56 (I) 8,538 Plant closing and operational restructuring costs....................... 601 601 Research and development.................... 2,156 1,128 1,028 ------- ------- ---- ------- Total operating expenses................... 15,834 5,723 56 10,167 ------- ------- ---- ------- Operating profit (loss)................... 1,181 1,270 (61) (150) Other income.................................. 700 15 685 ------- ------- ---- ------- Earnings before income taxes and minority interest................... 1,881 1,285 (61) 535 Income tax provision (benefit)................ 484 524 (21) (N) (61) ------- ------- ---- ------- Earnings before minority interest......... 1,397 761 (40) 596 Minority interest............................. 146 (146) (O) -- ------- ------- ---- ------- NET EARNINGS.............................. $ 1,251 $ 761 $106 $ 596 ======= ======= ==== ======= Earnings per common share Basic....................................... $ .12 $ .06 ======= ======= Diluted..................................... $ .11 $ .05 ======= ======= Weighted average common shares Basic....................................... 10,732 10,732 ======= ======= Diluted..................................... 10,932 10,932 ======= =======
See accompanying Notes to Pro Forma Condensed Financial Information. 4 E-Z-EM, Inc. and Subsidiaries PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS Fifty-two weeks ended May 29, 2004 (unaudited)
Pro Forma Adjustments --------------------- As Angio- Pro Reported Dynamics (F) Other Forma -------- ------------ ----- ----- (in thousands, except per share data) Net sales..................................... $148,771 $49,055 $ 893 (G) $100,609 Cost of goods sold............................ 82,913 23,254 893 (H) 60,552 -------- ------- ----- -------- Gross profit.............................. 65,858 25,801 -- 40,057 -------- ------- ----- -------- Operating expenses Selling and administrative.................. 48,847 17,127 308 (I) 32,028 Plant closing and operational restructuring costs....................... 1,771 1,771 Research and development.................... 8,019 3,551 4,468 -------- ------- ----- -------- Total operating expenses................... 58,637 20,678 308 38,267 -------- ------- ----- -------- Operating profit.......................... 7,221 5,123 (308) 1,790 Other income (expense)........................ 2,702 (742) (485) (J) 2,959 -------- ------- ----- -------- Earnings before income taxes and minority interest................... 9,923 4,381 (793) 4,749 Income tax provision.......................... 3,182 1,238 (114) (L) 1,830 -------- ------- ----- -------- Earnings before minority interest......... 6,741 3,143 (679) 2,919 Minority interest............................. 15 (15) (O) -- -------- ------- ----- -------- NET EARNINGS.............................. $ 6,726 $ 3,143 $(664) $ 2,919 ======== ======== ===== ======== Earnings per common share Basic....................................... $ .65 $ .28 ======== ======== Diluted..................................... $ .63 $ .27 ======== ======== Weighted average common shares Basic....................................... 10,344 10,344 ======== ======== Diluted..................................... 10,625 10,625 ======== ========
See accompanying Notes to Pro Forma Condensed Financial Information. 5 E-Z-EM, Inc. and Subsidiaries PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS Fifty-two weeks ended May 31, 2003 (unaudited)
Pro Forma Adjustments --------------------- As Angio- Pro Reported Dynamics (F) Other Forma -------- ------------ ----- ----- (in thousands, except per share data) Net sales..................................... $133,158 $38,434 $ 959 (G) $95,683 Cost of goods sold............................ 75,362 18,572 1,006 (H) 57,796 -------- ------- ------- ------- Gross profit.............................. 57,796 19,862 (47) 37,887 -------- ------- ------- ------- Operating expenses Selling and administrative.................. 47,075 14,115 191 (I) 33,151 Asset impairment and facility closing costs............................. 116 116 Research and development.................... 6,776 2,509 4,267 -------- ------- ------- ------- Total operating expenses................... 53,967 16,624 191 37,534 -------- ------- ------- ------- Operating profit.......................... 3,829 3,238 (238) 353 Other income (expense)........................ 409 (983) (726) (J) 666 -------- ------- ------- ------- Earnings before income taxes.............. 4,238 2,255 (964) 1,019 Income tax provision.......................... 1,497 1,069 (71) (L) 357 -------- ------- ------- ------- NET EARNINGS.............................. $ 2,741 $ 1,186 $ (893) $ 662 ======== ======= ======= ======= Earnings per common share Basic....................................... $ .27 $ .07 ======== ======= Diluted..................................... $ .26 $ .06 ======== ======= Weighted average common shares Basic....................................... 10,048 10,048 ======== ======= Diluted..................................... 10,419 10,419 ======== =======
See accompanying Notes to Pro Forma Condensed Financial Information. 6 E-Z-EM, Inc. and Subsidiaries PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS Fifty-two weeks ended June 1, 2002 (unaudited)
Pro Forma Adjustments --------------------- As Angio- Pro Reported Dynamics (F) Other Forma -------- ------------ ----- ----- (in thousands, except per share data) Net sales..................................... $122,133 $30,890 $1,045 (G) $92,288 Cost of goods sold............................ 70,848 15,333 987 (H) 56,502 -------- ------- ------ ------- Gross profit.............................. 51,285 15,557 58 35,786 -------- ------- ------ ------- Operating expenses Selling and administrative.................. 41,766 11,218 146 (I) 30,694 Asset impairment and facility closing costs............................. 1,393 1,393 Research and development.................... 6,220 1,951 2 (I) 4,271 -------- ------- ------ ------- Total operating expenses................... 49,379 13,169 148 36,358 -------- ------- ------ ------- Operating profit (loss)................... 1,906 2,388 (90) (572) Other income (expense)........................ 525 (818) (693) (K) 650 -------- ------- ------ ------- Earnings before income taxes.............. 2,431 1,570 (783) 78 Income tax provision.......................... 1,846 561 (311) (M) 974 -------- ------- ------ ------- NET EARNINGS (LOSS)....................... $ 585 $ 1,009 $ (472) $ (896) ======== ======= ====== ======= Earnings (loss) per common share Basic....................................... $ .06 $ (.09) ======== ======= Diluted..................................... $ .06 $ (.09) ======== ======= Weighted average common shares Basic....................................... 9,848 9,848 ======== ======= Diluted..................................... 10,160 9,848 ======== =======
See accompanying Notes to Pro Forma Condensed Financial Information. 7 E-Z-EM, Inc. and Subsidiaries NOTES TO PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET AND STATEMENTS OF EARNINGS (unaudited) (A) To eliminate the assets and liabilities of AngioDynamics included in the Company's consolidated balance sheet at August 28, 2004. (B) To reverse the elimination of amounts due to/from the Company and AngioDynamics at August 28, 2004. (C) To reverse the elimination of profit in ending inventory on AngioDynamics sales to the Company at August 28, 2004. (D) To eliminate the minority interest in AngioDynamics at August 28, 2004. (E) To eliminate the minority interest in AngioDynamics of $7,983,000 and to reverse the elimination of profit in ending inventory on AngioDynamics sales to the Company of $55,000 at August 28, 2004. (F) To eliminate the profit and loss of AngioDynamics for the entire period. (G) To reverse the elimination of AngioDynamics intercompany sales. (H) To reverse the elimination of AngioDynamics intercompany cost of goods sold. (I) To reflect corporate allocations which were originally charged to AngioDynamics, that would be recorded as an expense of the Company. (J) To eliminate imputed interest income on loans to AngioDynamics, as interest was suspended by the Company. Certain loans, which were capitalized in connection with the initial public offering of AngioDynamics, were assumed to be capitalized as of the earliest date presented. (K) To eliminate interest income on loans to AngioDynamics, as interest was suspended by the Company. Certain loans, which were capitalized in connection with the initial public offering of AngioDynamics, were assumed to be capitalized as of the earliest date presented. (L) To reflect the estimated income tax effect of the pro forma adjustments referred to in Note (I) at the then annual effective federal and state income tax rate. The imputed interest referred to in Note (J) was not previously tax effected. (M) To reflect the estimated income tax effect of the pro forma adjustments referred to in Notes (I) and (K) at the then annual effective federal and state income tax rate. (N) To reflect the estimated income tax effect of the pro forma adjustments referred to in Note (I) at the then annual effective federal and state income tax rate. (O) To eliminate the minority interest in the net earnings of AngioDynamics. 8 (c) Exhibits 99.1 Press release dated November 4, 2004. 9 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. Dated: November 4, 2004 E-Z-EM, INC. (Registrant) By: /s/ Peter J. Graham ------------------------------- Peter J. Graham Vice President - General Counsel 10 EXHIBIT INDEX ------------- Exhibit Description - ------- ----------- 99.1 Press Release dated November 4, 2004. 11 EX-99.1 2 d61098_ex99-1.txt PRESS RELEASE Exhibit 99.1 [LOGO] Company Contact: Investor Relations Contacts: E-Z-EM, Inc. Lippert/Heilshorn & Associates, Inc. - ------------ ------------------------------------ Tom Johnson, x3317 Kim Sutton Golodetz (kgolodetz@lhai.com) ------------------ (800) 544-4624 (212) 838-3777 www.ezem.com Bruce Voss (bvoss@lhai.com) - ------------ -------------- (310) 691-7100 www.lhai.com FOR IMMEDIATE RELEASE E-Z-EM SPIN-OFF OF ANGIODYNAMICS COMPLETED LAKE SUCCESS, N.Y., (Nov. 4, 2004) - E-Z-EM, Inc. (Amex: EZM) today announced the completion of the spin-off of AngioDynamics, Inc. On October 30, 2004, E-Z-EM distributed 0.856377 of a share of AngioDynamics common stock as a dividend on each outstanding share of E-Z-EM common stock to E-Z-EM shareholders of record as of October 11, 2004. No fractional shares were distributed. E-Z-EM shareholders received cash in lieu of any fractional shares. As a result of the spin-off, AngioDynamics is now a fully independent company and E-Z-EM no longer owns any shares of AngioDynamics. As previously announced, E-Z-EM has received a private letter ruling from the Internal Revenue Service that the dividend will be tax-free for federal income tax purposes to E-Z-EM and its stockholders, except for any cash received by stockholders in lieu of a fractional share. About E-Z-EM, Inc. E-Z-EM is a leading manufacturer of contrast agents for gastrointestinal radiology. The Company has developed the only CT injector on the market that can help detect contrast extravasation, the EmpowerCT(R) with patented EDA(TM) technology; it also offers a complete product set for the virtual colonoscopy practitioner. This product line consists of virtual colonoscopy hardware, software, nutritional prep kits and bowel cleaners, tagging agents and a carbon dioxide colon insufflation system. # # # -----END PRIVACY-ENHANCED MESSAGE-----