8-K/A 1 v23037a1e8vkza.htm FORM 8-K/A e8vkza
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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): August 1, 2006
AMERON INTERNATIONAL CORPORATION
(Exact name of Registrant as Specified in its Charter)
         
Delaware
(State or other jurisdiction
of Incorporation) 		  1-9102
(Commission
File No.) 		  77-0100596
(IRS Employer
Identification No.)
245 South Los Robles Ave., Pasadena, California 91101
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (626) 683-4000
N/A
(Former name, former address and former fiscal year, if changed since last report.)
 
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:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 

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Explanatory Note
Item 2.01. Completion of Acquisition or Disposition of Assets.
Item 9.01. Financial Statements and Exhibits.
SIGNATURES
EXHIBIT INDEX

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Explanatory Note
This amendment on Form 8-K/A amends and supplements the Current Report on Form 8-K filed by Ameron International Corporation (“Ameron” or the “Registrant”) under Items 2.01 and 9.01 on August 7, 2006. This Form 8-K/A is being filed to (i) amend the Unaudited Pro Forma Consolidated Balance Sheets at June 4, 2006 and (ii) include the Unaudited Pro Forma Consolidated Statements of Income for the years ended November 30, 2004 and 2003. This Form 8-K/A also includes the Unaudited Pro Forma Consolidated Statements of Income for the six months ended June 4, 2006 and the year ended November 30, 2005 previously included with the Form 8-K filed on August 7, 2006. No other changes have been made in this Form 8-K/A.
Item 2.01. Completion of Acquisition or Disposition of Assets.
On August 1, 2006, Ameron and certain of its subsidiaries completed the previously announced sale of substantially all of the assets and certain specified liabilities of its worldwide Performance Coatings & Finishes business (the “Coatings Business”) to PPG Industries, Inc. (“PPG”) and certain of its subsidiaries, pursuant to an asset purchase agreement entered into between Ameron and PPG on June 28, 2006, and amended as of July 31, 2006 (as amended, the “Agreement”). The total consideration received by Ameron upon the closing of the transaction was $115 million in cash. In addition, the Agreement includes a post-closing purchase price adjustment, which based on Ameron’s current estimate of net assets would result in approximately $5 million of additional consideration.
The foregoing description of the Agreement and the transactions consummated pursuant thereto is qualified in its entirety by reference to the Agreement attached as Exhibit 2.1 hereto and the copy of the press release announcing the closing of the transaction attached as Exhibit 99.1 hereto, each of which is incorporated by reference herein.
Item 9.01. Financial Statements and Exhibits.
(b) Pro Forma Financial Information
The following unaudited pro forma condensed consolidated financial statements are based upon and should be read in conjunction with historical consolidated financial statements and related notes of Ameron.
The unaudited pro forma condensed consolidated balance sheet of Ameron as of June 4, 2006 and statements of income for the six months ended June 4, 2006 and for the years ended November 30, 2005, 2004 and 2003, give effect to the disposition of substantially all of the assets and certain specified liabilities of Ameron’s worldwide Performance Coatings & Finishes business to PPG Industries, Inc. and certain of its subsidiaries as if the sale occurred, for balance sheet purposes, on June 4, 2006 and, for statements of income purposes, on December 1, 2004.
The unaudited pro forma condensed consolidated financial statements have been prepared based upon currently available information, estimates and assumptions that are deemed appropriate by

 

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Ameron’s management. The unaudited pro forma condensed consolidated financial statements are not necessarily indicative of the results that would have been reported had such transaction actually occurred on the dates specified, nor are they indicative of our future results of operations or financial condition. The unaudited pro forma condensed consolidated financial statements are based on and should be read in conjunction with, and are qualified in its entirety by, the historical consolidated financial statements and notes thereto of Ameron.
The unaudited pro forma condensed consolidated financial statements of Ameron are prepared in accordance with Article 11 of Regulation S-X.

 

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AMERON INTERNATIONAL CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF INCOME
SIX MONTHS ENDED JUNE 4, 2006
                         
            Pro Forma     Pro Forma  
(In thousands, except share and per share data)   Historical     Adjustments     As Adjusted  
Sales
   $ 368,991     $ (110,362) (a)   $ 258,629  
Cost of Sales
     (275,186 )     79,910 (a)     (195,276 )
 
                  
Gross Profit
     93,805       (30,452 )     63,353  
Selling, General and Administrative Expenses
     (75,859 )     29,350 (a)     (46,509 )
Other Income, Net
     11,206       (1,842) (a)     9,364  
 
                  
Income from Continuing Operations before Interest, Income Taxes and Equity in Earnings of Joint Venture
     29,152       (2,944 )     26,208  
 
                  
Interest Expense, Net
     (1,848 )     (71) (a)     (1,919 )
 
                  
Income from Continuing Operations before Income Taxes and Equity in Earnings of Joint Venture
     27,304       (3,015 )     24,289  
 
                  
Provision for Income Taxes
     (9,574 )     1,662 (b)     (7,912 )
 
                  
Income from Continuing Operations before Equity in Earnings of Joint Venture
     17,730       (1,353 )     16,377  
 
                  
Equity in Earnings of Joint Venture, Net of Taxes
     4,583       —       4,583  
 
                  
Net Income from Continuing Operations
   $ 22,313     $ (1,353 )   $ 20,960  
 
                  
Net Income per Share from Continuing Operations:
                        
Basic
   $ 2.58     $ (.16 )   $ 2.42  
 
                  
Diluted
   $ 2.53     $ (.15 )   $ 2.38  
 
                  
Weighted-Average Shares:
                        
Basic
     8,641,965               8,641,965  
 
                    
Diluted
     8,814,700               8,814,700  
 
                    
See accompanying notes to the unaudited pro forma condensed consolidated financial statements.

 

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AMERON INTERNATIONAL CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF INCOME
YEAR ENDED NOVEMBER 30, 2005
                         
            Pro Forma     Pro Forma  
(In thousands, except share and per share data)   Historical     Adjustments     As Adjusted  
Sales
   $ 704,574     $ (209,807) (a)   $ 494,767  
Cost of Sales
     (522,467 )     152,910 (a)     (369,557 )
 
                  
Gross Profit
     182,107       (56,897 )     125,210  
Selling, General and Administrative Expenses
     (145,954 )     57,009 (a)     (88,945 )
Other Income, Net
     7,141       (5,004) (a)     2,137  
 
                  
Income from Continuing Operations before Interest, Income Taxes and Equity in Earnings of Joint Venture
     43,294       (4,892 )     38,402  
 
                  
Interest Expense, Net
     (5,219 )     (301) (a)     (5,520 )
 
                  
Income from Continuing Operations before Income Taxes and Equity in Earnings of Joint Venture
     38,075       (5,193 )     32,882  
 
                  
Provision for Income Taxes
     (14,470 )     2,961 (b)     (11,509 )
 
                  
Income from Continuing Operations before Equity in Earnings of Joint Venture
     23,605       (2,232 )     21,373  
 
                  
Equity in Earnings of Joint Venture, Net of Taxes
     9,005       —       9,005  
 
                  
Net Income from Continuing Operations
   $ 32,610     $ (2,232 )   $ 30,378  
 
                  
Net Income per Share from Continuing Operations:
                        
Basic
   $ 3.88     $ (.27 )   $ 3.61  
 
                  
Diluted
   $ 3.80     $ (.26 )   $ 3.54  
 
                  
Weighted-Average Shares:
                        
Basic
     8,410,563               8,410,563  
 
                    
Diluted
     8,579,194               8,579,194  
 
                    
See accompanying notes to the unaudited pro forma condensed consolidated financial statements.

 

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AMERON INTERNATIONAL CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF INCOME
YEAR ENDED NOVEMBER 30, 2004
                         
            Pro Forma     Pro Forma  
(In thousands, except share and per share data)   Historical     Adjustments     As Adjusted  
Sales
   $ 605,853     $ (199,623) (a)   $ 406,230  
Cost of Sales
     (457,442 )     143,421 (a)     (314,021 )
 
                  
Gross Profit
     148,411       (56,202 )     92,209  
Selling, General and Administrative Expenses
     (137,468 )     54,104 (a)     (83,364 )
Pension Plan Curtailment / Settlement
     (12,817 )     —       (12,817 )
Other Income, Net
     17,861       (3,029) (a)     14,832  
 
                  
Income from Continuing Operations before Interest, Income Taxes and Equity in Earnings of Joint Venture
     15,987       (5,127 )     10,860  
 
                  
Interest Expense, Net
     (5,313 )     (209) (a)     (5,522 )
 
                  
Income from Continuing Operations before Income Taxes and Equity in Earnings of Joint Venture
     10,674       (5,336 )     5,338  
 
                  
Provision for Income Taxes
     (8,006 )     3,842 (b)     (4,164 )
 
                  
Income from Continuing Operations before Equity in Earnings of Joint Venture
     2,668       (1,494 )     1,174  
 
                  
Equity in Earnings of Joint Venture, Net of Taxes
     10,791       —       10,791  
 
                  
Net Income from Continuing Operations
   $ 13,459     $ (1,494 )   $ 11,965  
 
                  
Net Income per Share from Continuing Operations:
                        
Basic
   $ 1.63     $ (.18 )   $ 1.45  
 
                  
Diluted
   $ 1.59     $ (.18 )   $ 1.41  
 
                  
Weighted-Average Shares:
                        
Basic
     8,270,487               8,270,487  
 
                    
Diluted
     8,448,987               8,448,987  
 
                    
See accompanying notes to the unaudited pro forma condensed consolidated financial statements.

 

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AMERON INTERNATIONAL CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF INCOME
YEAR ENDED NOVEMBER 30, 2003
                         
            Pro Forma     Pro Forma  
(In thousands, except share and per share data)   Historical     Adjustments     As Adjusted  
Sales
   $ 600,495     $ (190,280) (a)   $ 410,215  
Cost of Sales
     (434,007 )     134,013 (a)     (299,994 )
 
                  
Gross Profit
     166,488       (56,267 )     110,221  
Selling, General and Administrative Expenses
     (127,392 )     49,435 (a)     (77,957 )
Other Income, Net
     10,852       (2,902) (a)     7,950  
 
                  
Income from Continuing Operations before Interest, Income Taxes and Equity in Earnings of Joint Venture
     49,948       (9,734 )     40,214  
 
                  
Interest Expense, Net
     (6,645 )     (110) (a)     (6,755 )
 
                  
Income from Continuing Operations before Income Taxes and Equity in Earnings of Joint Venture
     43,303       (9,844 )     33,459  
 
                  
Provision for Income Taxes
     (14,017 )     4,174 (b)     (9,843 )
 
                  
Income from Continuing Operations before Equity in Earnings of Joint Venture
     29,286       (5,670 )     23,616  
 
                  
Equity in Earnings of Joint Venture, Net of Taxes
     614       —       614  
 
                  
Net Income from Continuing Operations
   $ 29,900     $ (5,670 )   $ 24,230  
 
                  
Net Income per Share from Continuing Operations:
                        
Basic
   $ 3.77     $ (.71 )   $ 3.06  
 
                  
Diluted
   $ 3.67     $ (.70 )   $ 2.97  
 
                  
Weighted-Average Shares:
                        
Basic
     7,925,229               7,925,229  
 
                    
Diluted
     8,149,460               8,149,460  
 
                    
See accompanying notes to the unaudited pro forma condensed consolidated financial statements.

 

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AMERON INTERNATIONAL CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEETS
AT JUNE 4, 2006
                                 
            Pro Forma     Pro Forma          
(In thousands)   Historical     Adjustments     As Adjusted          
Assets
                        
Current Assets
                        
Cash and Cash Equivalents
   $ 47,691     $ 120,000 (c)   $ 167,691  
Restricted Cash
     9,001       —       9,001  
Receivables, Net
     187,532       (55,335) (d)     132,197  
Inventories
     118,377       (46,323) (d)     72,054  
Deferred Income Taxes
     17,598       (3,623) (e)     13,975  
Prepaid Expenses and Other Current Assets
     20,987       (2,585) (d)     18,402  
 
                  
Total Current Assets
     401,186       (12,134 )     413,320  
Investments in Joint Ventures
     20,525       (2,138) (d)     18,387  
Property, Plant and Equipment, Net
     157,401       (26,710) (f)     130,691  
Deferred Income Taxes
     —       563 (e)     563  
Intangible Assets, Net
     13,328       (11,687) (g)     1,641  
Other Assets
     36,160       —       36,160  
 
                  
Total Assets
   $ 628,600     $ (27,838 )   $ 600,762  
 
                  
Liabilities and Stockholders’ Equity
                        
Current Liabilities
                        
Current Portion of Long-Term Debt
   $ 18,333     $ —     $ 18,333  
Trade Payables
     58,768       (19,094) (h)     39,674  
Accrued Liabilities
     73,596       (8,112) (h)     65,484  
Income Taxes Payable
     7,747       (3,394) (i)     4,353  
 
                  
Total Current Liabilities
     158,444       (30,600 )     127,844  
Long-Term Debt, Less Current Portion
     82,717       —       82,717  
Other Long-Term Liabilities
     65,061       3,480 (h)     68,541  
 
                  
Total Liabilities
     306,222       (27,120 )     279,102  
 
                  
Stockholders’ Equity
                        
Common Stock
     28,755       —       28,755  
Additional Paid-In Capital
     30,339       —       30,339  
Retained Earnings
     345,599       1,827 (k)     347,426  
Accumulated Other Comprehensive Loss
     (31,837 )     (2,545) (j)     (34,382 )
Treasury Stock
     (50,478 )     —       (50,478 )
 
                  
Total Stockholders’ Equity
     322,378       (718 )      321,660  
 
                  
Total Liabilities and Stockholders’ Equity
   $ 628,600     $ (27,838 )   $ 600,762  
 
                  
See accompanying notes to the unaudited pro forma condensed consolidated financial statements.

 

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Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements
Note 1 — Ameron Basis of Presentation
Historical financial information for Ameron as of and for the six months ended June 4, 2006 has been derived from unaudited historical consolidated financial statements included in Ameron’s Quarterly Report on Form 10-Q for the quarter ended June 4, 2006. Historical financial information for the year ended November 30, 2005, 2004 and 2003 has been derived from audited historical consolidated financial statements included in Ameron’s 2005 Annual Report on Form 10-K.
Note 2 — Pro Forma Adjustments
Pro forma adjustments represent the exclusion of the Performance Coatings & Finishes Group for the periods present. The Performance Coatings & Finishes Group was sold to PPG Industries, Inc. effective August 1, 2006.
The pro forma adjustments included in the unaudited pro forma condensed consolidated financial statements are preliminary and subject to change upon completion of a more comprehensive analysis by the Company. The Company expects to complete this analysis prior to finalization of its financial statements for the quarter ended September 3, 2006.
The pro forma adjustments are as follows:
  a.   Subsequent to the close, the Company will no longer have revenues and related costs associated with the disposed business. These adjustments are recorded to eliminate the net sales, cost of sales and operating expenses which the Company believes are directly attributable to the disposed business and will not continue after the completion of the transaction.
 
  b.   The provision for income taxes has been adjusted on a pro forma basis reflecting the effective income tax rate associated with the Performance Coatings & Finishes Group.
 
  c.   To record estimated proceeds received assuming transaction took place at June 4, 2006.
 
  d.   To eliminate the assets sold to PPG.
 
  e.   To eliminate an estimate of the deferred tax assets to be realized at the close of the transaction.
 
  f.   To eliminate the property, plant and equipment, net sold to PPG, excluding the retained properties.
 
  g.   To eliminate an estimate of intangible assets relating to the disposition of the Performance Coatings & Finishes Group.
 
  h.   To eliminate the liabilities assumed by PPG and to accrue $4,200 potential pension curtailment and $1,000 estimated transaction expenses associated with the sale.
 
  i.   To eliminate an estimate of the income tax payable associated with the Performance Coatings & Finishes Group.
 
  j.   To eliminate the amount of accumulated translation adjustment to be realized at the close of the transaction.

 

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  k.   To record the preliminary gain on sales of the disposed assets:
         
Estimated Proceeds from PPG
   $ 120,000  
Accrued Transaction Expenses
     (1,000 )
Accrued Potential Pension Curtailment
     (4,200 )
Net Assets Disposed
     (115,061 )
Accumulated Translation Adjustment
     2,545  
 
      
Potential Gain
     2,284  
Provision for Income Taxes
     (457 )
 
      
 
   $ 1,827  
 
      
The gain calculation is preliminary and subject to change upon finalization of the Company’s financial statements for the third quarter ended September 3, 2006.

 

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(d) Exhibits
     
Exhibit Number   Description of Exhibit
2.1*
  Amended and Restated Asset Purchase Agreement dated as of June 28, 2006, as amended as of July 31, 2006, by and among Ameron International Corporation and certain of its subsidiaries and PPG Industries, Inc.
99.1*
  Press Release dated August 2, 2006
 
*   Previously filed as Exhibits 2.1 and 99.1, respectively, to the Form 8-K dated August 7, 2006 and incorporated herein by reference.

 

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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.
         
  AMERON INTERNATIONAL CORPORATION
 		  
Date: August 16, 2006  By:   /s/ Javier Solis   
    Javier Solis   
    Senior Vice President & Secretary   

 

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EXHIBIT INDEX
     
Exhibit Number   Description of Exhibit
2.1*
  Asset Purchase Agreement dated as of June 28, 2006, as amended as of July 31, 2006, by and among Ameron International Corporation and certain of its subsidiaries and PPG Industries, Inc.
99.1*
  Press Release dated August 2, 2006
 
*   Previously filed as Exhibits 2.1 and 99.1, respectively, to the Form 8-K dated August 7, 2006 and incorporated herein by reference.