-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, ebnLEaP88LQx7wCHjlLwgLKtV5HU8Q0uvWNNeirclm+m20qV4OTpRMbeggXqL9Jd qPN3E3eXgYp3/nXem2B/6w== 0000760775-94-000013.txt : 19940817 0000760775-94-000013.hdr.sgml : 19940817 ACCESSION NUMBER: 0000760775-94-000013 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940809 ITEM INFORMATION: Other events FILED AS OF DATE: 19940810 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WLR FOODS INC CENTRAL INDEX KEY: 0000760775 STANDARD INDUSTRIAL CLASSIFICATION: 2015 IRS NUMBER: 541295923 STATE OF INCORPORATION: VA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-17060 FILM NUMBER: 94542670 BUSINESS ADDRESS: STREET 1: P O BOX 7000 CITY: BROADWAY STATE: VA ZIP: 22815 BUSINESS PHONE: 7038674001 MAIL ADDRESS: STREET 1: 800 CO OP DRIVE CITY: TIMBERVILLE STATE: VA ZIP: 22853 FORMER COMPANY: FORMER CONFORMED NAME: WAMPLER LONGACRE ROCKINGHAM INC DATE OF NAME CHANGE: 19881114 FORMER COMPANY: FORMER CONFORMED NAME: WAMPLER LONGACRE INC DATE OF NAME CHANGE: 19880209 8-K 1 1 SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 ---------------------------- Date of Report (Date of earliest event reported) August 9, 1994 WLR Foods, Inc. (Exact name of registrant as specified in its charter) Virginia 0-17060 54-1295923 (State of (Commission File Number) IRS Employer incorporation) Identification No.) P.O. Box 7000 22815 Broadway, Virginia (Zip Code) (Address of principal executive offices) (703) 896-7001 (Registrant's telephone number, including area code) Highway 33 West, P.O. Box 228, Hinton, Virginia 22831 (Former name or former address, if changed since last report) Exhibit Index is on Page 4 2 Items 1-4. Not Applicable. Item 5 Other Events. In response to questions from shareholders, brokers, and securities analysts, the Chief Financial Officer for WLR Foods, Inc. (the Company) has released in a memorandum dated August 9, 1994 certain information regarding the Company's proposed acquisition of substantially all of the assets of the turkey processing division of Cuddy Farms, Inc. A copy of that memorandum is set forth in its entirety as an exhibit hereto. Item 6. Not Applicable. Item 7. Exhibits. (99.1) Company Memorandum dated August 9, 1994. 3 SIGNATURE 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. WLR Foods, Inc. By: /s/______________________ Delbert L. Seitz Chief Financial Officer Secretary and Treasurer Date: August 10, 1994 4 Exhibit No. Description Sequentially Numbered Page (99.1) Company memorandum dated August 9, 1994 5 EX-99.1 2 5 MEMORANDUM Exhibit No. 99.1 TO: Analysts and Brokers FROM: Delbert Seitz DATE: August 9, 1994 SUBJECT: INFORMATION ABOUT THE CUDDY TRANSACTION I. Cuddy Assets Purchased (in millions) Working Capital. . . . . . . . . . $40.4 Plant, Property & Equipment . . . 32.2 Other Assets . . . . . . . . . . . 1.2 TOTAL . . . . . . . . . . . . $73.8 Assets were purchased at approximately book value and will not require any allocation of value to goodwill. These values are subject to post-closing adjustments which are not thought to be material. Payment will be made with $43.0 million of cash financed with variable rate interest loans and $30.8 million of equity. Shares issued may range from 1,283,333 shares of common stock at $24.00 per share to 1,100,000 shares at $28.00 per share. Post-closing adjustments will be adjusted with equity, not cash. Each dollar invested in Cuddy buys $2.7 of sales ($200.0 million sales divided by $73.8 million of investment). This compares favorably to our recent Moorefield, West Virginia chicken expansion that added approximately $1.7 of sales per dollar invested. The Cuddy transaction acquires existing turkey production capacity and markets and does not expand the industry. II. WLR Foods Approaches One Billion Dollars in Sales Sales for the food division of Cuddy in their last completed fiscal year were approximately $200 million. This should bring WLR Foods sales to one billion in 1995. III. WLR Foods Becomes Number Two in Turkey Processing Based on December 1993 issue of "Turkey World", for calendar year 1994, Wampler-Longacre will grow 502 million pounds of live weight turkey and Cuddy 240 million pounds. The combined total of 742 million pounds of live weight turkey clearly puts WLR Foods second in the industry to Con Agra's Butterball Turkey Co. 6 INFORMATION ABOUT THE CUDDY TRANSACTION Page 2 IV. Cuddy Strengthens WLR Foods Position in Further Processed Turkey and Food Service Markets More than half of all Cuddy sales are further processed, value added products with a heavy emphasis in food service and institutional markets. This fits WLR Foods long-term strategy for increased value added and food service sales. V. The Addition of Approximately 1.2 Million Common Shares Adds Shareholder Value Because of the relative low number of shares issued for the amount of equity acquired, the book value of all shares outstanding will be increased by over $1.00 per share. Dividing $200 million of added sales by 1.2 million added shares, results in $167 of sales for each share issued. This increases the sales per share for all WLR common stock outstanding from approximately $65 per share to $75 per share. Based on the shares to be issued, the transaction will be accretive as Cuddy is expected to meet WLR Foods existing gross margin rate and later, when synergies and cost improvements are implemented, contribute even more to earnings per share. DLS/ths -----END PRIVACY-ENHANCED MESSAGE-----