-----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, UuD+GBR4/xfn8QA8shJyUXhoo1R6o1JNK3MG4kJ6PNa+UJXHkcA6G+paj0w4x+P2 yMn3u1i9uLP63QMiJIctOQ== 0000913906-97-000165.txt : 19971121 0000913906-97-000165.hdr.sgml : 19971121 ACCESSION NUMBER: 0000913906-97-000165 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970930 ITEM INFORMATION: FILED AS OF DATE: 19971120 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: BIO REFERENCE LABORATORIES INC CENTRAL INDEX KEY: 0000792641 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MEDICAL LABORATORIES [8071] IRS NUMBER: 222405059 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: SEC FILE NUMBER: 000-15266 FILM NUMBER: 97724844 BUSINESS ADDRESS: STREET 1: 481 EDWARD H ROSS DR CITY: ELMWOOD PARK STATE: NJ ZIP: 07407-3118 BUSINESS PHONE: 2017912186 MAIL ADDRESS: STREET 1: 481 EDWARD H ROSS DRIVE CITY: ELMWOOD PARK STATE: NJ ZIP: 07407-3118 FORMER COMPANY: FORMER CONFORMED NAME: MED MOBILE INC DATE OF NAME CHANGE: 19891115 8-K/A 1 8 - K AMMENDED UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 --------- FORM 8-K/A Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report [Date of Earliest Event Reported] September 30, 1997 Commission File Number 0-15266 BIO-REFERENCE LABORATORIES, INC. AND SUBSIDIARY (Exact name of registrant as specified in its charter) New Jersey 22-2405059 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 481 Edward H. Ross Drive Elmwood Park, New Jersey 07407-3118 (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (201) 791-2600 --------------------- Item 7. Financial Statements, Pro Forma Financial Information BIO-REFERENCE LABORATORIES, INC. AND SUBSIDIARY PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS [UNAUDITED] - ------------------------------------------------------------------------------ The following pro forma condensed combined balance sheet as of July 31, 1997, and the condensed combined statements of operations for the year ended October 31, 1996 and the nine months ended July 31, 1997, give effect to the following: On September 30, 1997, Bio-Reference Laboratories, Inc. [the "Company"] completed the sale of certain assets of its GenCare Division ["GenCare"] to an unrelated third party, IMPATH, Inc. ["IMPATH"]. GenCare provided oncology and hematology laboratory testing services to hospitals, hematologists and oncologists in the New York metropolitan area and Florida. The assets sold included GenCare customer lists, any Company rights to the "GenCare" Tradename, certain patient records and rights under a Reagant Purchase and Equipment Rental Contract and under a laboratory Testing Service Agreement. The Company retained the rights to the Tradename "GenPath." The disposition will be effective September 30, 1997 for accounting purposes. The operations of GenCare will be included in the Company's results of operations thru September 30, 1997. In connection with the business disposition, the Company, certain of its officers and key employees agreed for a 30-month period not to compete with IMPATH with respect to certain defined areas of the GenCare business. The Company will continue to market tumor pathology testing services under the name "GenPath" to urology, gastroenterology and obstetric and gynecology physician clients. The GenCare business sold accounted for less than 8% of the Company's annual net revenues for its most recent fiscal year. The $6 million purchase price was determined in arms-length negotiations between the parties based in part on GenCare's billings to restricted Customers for Restricted Tests [as defined in the Agreement and Bill of Sale] during the three-month period ended June 30, 1997. The purchase price included a $4.6 million cash payment made at the closing with an additional $700,000 to $1.4 million payable in semi-annual installments over a two-year period subject to certain conditions. The Company purchased GenCare in January 1995 for an aggregate 473,145 shares of its common stock and approximately $235,000 in principal amount of its debentures. The pro forma information is based on the historical financial statements of the Company and GenCare giving effect to the disposition and the assumptions and adjustments in the accompanying notes to the pro forma combined financial statements. The pro forma condensed combined balance sheet assumes the disposition was consummated on July 31, 1997. The pro forma condensed combined statements of operations give effect to this transaction as if it had occurred at the beginning of the earliest period presented. The pro forma condensed combined financial statements are based on the historical financial statements of the Company and GenCare. These pro forma condensed combined financial statements may not be indicative of the results that actually would have occurred if the acquisition had taken place on the dates indicated. The estimated gain on disposal of $3,133,760 will be included in the income of the company within 12 months following the transaction, but is not considered in the pro forma income statements. 1 BIO-REFERENCE LABORATORIES, INC. AND SUBSIDIARY PRO FORMA ADJUSTMENTS - ------------------------------------------------------------------------------ [1] To reflect $6,000,000 purchase price: $4,600,000 in cash and $1,400,000 receivable in semi-annual installments over a two year period. The Company utilized $3,500,000 of cash to reduce the credit line note payable. [2] To reflect the writedown of GenCare intangible assets as of the September 30, 1997, the disposition date. [3] To reflect costs incurred due to the divestiture of GenCare. These include, but are not limited to, severance packages, bonus packages for signed non-competition agreements and retention of business, legal fees, audit fees and new and old forms disposal. [4] Stock issuance related to the original acquisition of GenCare [Second and final measurement periods] [5] To remove net income and expenses directly attributable to the GenCare divested business. [6] To reflect interest expense saving resulting from the $3,500,000 reduction in the credit line of approximately $26,000 per month and interest income earned of approximately $2,700 per month on $1,100,000 in bank money market and certificate of deposit accounts. 2 BIO-REFERENCE LABORATORIES, INC. AND SUBSIDIARY - ------------------------------------------------------------------------------ PRO FORMA CONDENSED COMBINED BALANCE SHEET [UNAUDITED] - ------------------------------------------------------------------------------ Pro Forma July 31, Adjustments Pro Forma 1 9 9 7 For Disposal As Adjusted Assets: Current Assets: Cash $ 1,218,498 $ 1,100,000[1] $ 2,318,498 Cash - Restricted 852,000 -- 852,000 Accounts Receivable - Net 13,952,434 -- 13,952,434 Inventory 501,726 -- 501,726 Other Current Assets 465,708 1,400,000[1] 1,865,708 Certificates of Deposits - Restricted 3,556,250 -- 3,556,250 ------------ ------------ ------------ Total Current Assets 20,546,616 2,500,000 23,046,616 ------------ ------------ ------------ Property, Plant and Equipment 2,981,559 -- 2,981,559 Less: Accumulated Depreciation 1,573,117 -- 1,573,117 ------------ ------------ ------------ Total Property, Plant and Equipment - Net 1,408,442 -- 1,408,442 ------------ ------------ ------------ Other Assets: Certificates of Deposit - Restricted 123,750 -- 123,750 Due from Related Party 219,318 -- 219,318 Deposits 187,574 -- 187,574 Goodwill [Net of Accumulated Amortization of $948,792] 3,010,112 (1,519,237)[2] 1,490,875 Deferred Charges [Net of Accumulated Amortization of $1,700,174] 3,942,254 (391,559)[2] 3,550,695 Other Assets 341,037 -- 341,037 ------------ ------------ ------------ Total Other Assets 7,824,045 (1,910,796) 5,913,249 ------------ ------------ ------------ Total Assets $ 29,779,103 $ 589,204 $ 30,368,307 ============ ============ ============ The Accompanying Notes are an Integral Part of Pro Forma These Financial Statements.
3 BIO-REFERENCE LABORATORIES, INC. AND SUBSIDIARY - ------------------------------------------------------------------------------ PRO FORMA CONDENSED COMBINED BALANCE SHEET [UNAUDITED] - ------------------------------------------------------------------------------ Pro Forma July 31, Adjustments Pro Forma 1 9 9 7 For Disposal As Adjusted Liabilities and Shareholders' Equity: Current Liabilities: Accounts Payable $ 2,362,907 $ -- $ 2,362,907 Salaries and Commissions Payable 811,368 711,500[3] 1,522,868 Accrued Expenses 324,790 80,000[3] 404,790 Current Portion of Long-Term Debt 796,867 -- 796,867 Current Portion of Leases Payable 144,417 -- 144,417 Current Portion of Subordinated Notes 130,329 -- 130,329 Notes Payable 10,852,000 (3,500,000)[1] 7,352,000 Taxes Payable 176,757 -- 176,757 ------------ ------------ ------------ Total Current Liabilities 15,599,435 (2,708,500) 12,890,935 ------------ ------------ ------------ Long-Term Liabilities: Long-Term Portion of Long-Term Debt 880,207 -- 880,207 Long-Term Portion of Leases Payable 284,956 -- 284,956 ------------ ------------ ------------ Total Long-Term Liabilities 1,165,163 -- 1,165,163 ------------ ------------ ------------ Shareholders' Equity: Preferred Stock, .10 Par Value; Authorized 1,062,589 Shares, None Issued -- -- -- Senior Preferred Stock, $.10 Par Value, Authorized 604,078 Shares, Issued and Outstanding 504,078 Shares -- -- -- Common Stock, $.01 Par Value; Authorized 18,333,333 Shares, Issued and Outstanding 7,115,280 Shares 71,153 541[4] 71,694 Additional Paid-In Capital 22,845,046 163,403[4] 23,008,449 Accumulated Deficit (9,541,117) 3,133,760 (6,407,357) ------------ ------------ ------------ Totals 13,375,082 3,297,704 16,672,786 Less: Deferred Compensation (360,577) -- (360,577) ------------ ------------ ------------ Total Shareholders' Equity 13,014,505 3,297,704 16,312,209 ------------ ------------ ------------ Total Liabilities and Shareholders'Equity $ 29,779,103 $ 589,204 $ 30,368,307 ============ ============ ============ The Accompanying Notes are an Integral Part of These Pro Forma Financial Statements.
4 BIO-REFERENCE LABORATORIES, INC. AND SUBSIDIARY - ------------------------------------------------------------------------------ PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS [UNAUDITED] - ------------------------------------------------------------------------------ Nine months ended Pro Forma July 31, Adjustments Pro Forma 1 9 9 7 For Disposal As Adjusted Net Revenue $ 29,064,409 $ (2,116,523)[5] $ 26,947,886 ------------ ------------ ------------ Cost of Services: Depreciation 286,370 -- 286,370 Employee Related Expenses 6,467,929 (231,818)[5] 6,236,111 Reagents and Lab Supplies 3,513,617 (220,118)[5] 3,293,499 Other Cost of Services 4,180,300 (149,809)[5] 4,030,491 ------------ ------------ ------------ Total Cost of Services 14,448,216 (601,745) 13,846,471 ------------ ------------ ------------ Gross Profit on Revenues 14,616,193 (1,514,778) 13,101,415 ------------ ------------ ------------ General and Administrative Expenses: Depreciation and Amortization 549,235 (93,981)[5] 455,254 Other General and Administrative Expenses 8,505,267 (225,802)[5] 8,279,465 Bad Debt Expense 3,986,739 (505,486)[5] 3,481,253 Total General and Administrative Expenses 13,041,241 (825,269) 12,215,972 ------------ ------------ ------------ Operating Income 1,574,952 (689,509) 885,443 ------------ ------------ ------------ Other [Income] Expenses: Interest Expense 834,145 (234,000)[6] 600,145 Interest Income (202,191) (24,000)[6] 226,191 ------------ ------------ ------------ Other [Income] Expenses - Net 631,954 (258,000) 373,954 ------------ ------------ ------------ Income Before Taxes 942,998 (431,509) 511,489 Provision for Income Taxes 52,632 -- 52,632 ------------ ------------ ------------ Net Income $ 890,366 $ (431,509) $ 458,857 ============ ============ ============ Net Income Per Share $ .15 $ .07 ============ ============ Weighted Average Number of Shares Outstanding 6,571,947 6,571,947 ============ ============ The Accompanying Notes are an Integral Part of These Pro Forma Financial Statements.
5 BIO-REFERENCE LABORATORIES, INC. AND SUBSIDIARY - ------------------------------------------------------------------------------ PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS [UNAUDITED] - ------------------------------------------------------------------------------ Year ended Pro Forma October 31, Adjustments Pro Forma 1 9 9 6 For Disposal As Adjusted Net Revenues $ 35,125,878 $ (2,188,446)[5] $ 32,937,432 ------------ ------------ ------------ Cost of Services: Depreciation and Amortization 378,694 -- 378,694 Employee Related Expenses 8,503,156 (432,081)[5] 8,071,075 Reagents and Laboratory Supplies 4,430,381 (226,460)[5] 4,203,921 Other Cost of Services 4,824,164 (199,745)[5] 4,624,419 ------------ ------------ ------------ Total Cost of Services 18,136,395 (858,286) 17,278,109 ------------ ------------ ------------ Gross Profit 16,989,483 (1,330,160) 15,659,323 ------------ ------------ ------------ General and Administrative Expenses: Depreciation and Amortization 655,192 (125,308)[5] 529,884 Other General and Administrative Expenses 10,761,548 (419,969)[5] 10,341,579 Provision for Doubtful Accounts 4,285,807 (312,451)[5] 3,973,356 Expenses of Abandoned Acquisition 90,700 -- 90,700 Total General and Administrative Expenses 15,793,247 (857,728) 14,935,519 ------------ ------------ ------------ Income from Operations 1,196,236 (472,482) 723,804 ------------ ------------ ------------ Other [Income] Expense: Interest Expense 840,811 (312,000)[6] 528,811 Interest and Other Income (288,395) (32,000)[6] (320,395) ------------ ------------ ------------ Other Expense - Net 552,416 (344,000) 208,416 ------------ ------------ ------------ Income Before Income Taxes 643,820 (128,432) 515,388 Provision for Income Taxes 51,862 -- 51,862 ------------ ------------ ------------ Net Income $ 591,958 $ (128,432) $ 463,526 ============ ============ ============ Net Income Per Share $ .10 $ .08 ============ ============ Average Number of Shares Outstanding 6,166,156 6,166,516 ============ ============ The Accompanying Notes are an Integral Part of These Consolidated Pro Forma Financial Statements.
6 SIGNATURE - ------------------------------------------------------------------------------ Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly authorized and caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Bio-Reference Laboratories, Inc. (Registrant) Dated: November 20, 1997 By: /s/ Sam Singer -------------- Sam Singer Chief Financial and Accounting Officer 7 -----END PRIVACY-ENHANCED MESSAGE-----