-----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, NhRkAWiTq+ogBPuakJrtLpJxgD9Mo0XPl651zk2QbzrEmW1eUy6DZJltqmrh4Np2 hoGq67tM7H/FPIxk+8jZEQ== 0000950130-01-501711.txt : 20010516 0000950130-01-501711.hdr.sgml : 20010516 ACCESSION NUMBER: 0000950130-01-501711 CONFORMED SUBMISSION TYPE: 8-K15D5 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010430 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERTAN INC CENTRAL INDEX KEY: 0000803227 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-RADIO TV & CONSUMER ELECTRONICS STORES [5731] IRS NUMBER: 752130875 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K15D5 SEC ACT: SEC FILE NUMBER: 001-10062 FILM NUMBER: 1640130 BUSINESS ADDRESS: STREET 1: 3300 HGWY #7 STREET 2: STE 904 CITY: CONCORD ONTARIO CAN STATE: TX ZIP: 76102 BUSINESS PHONE: 9057609701 MAIL ADDRESS: STREET 1: 201 MAIN ST STREET 2: STE 1805 CITY: FORT WORTH STATE: TX ZIP: 76102 8-K15D5 1 d8k15d5.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: April 30, 2001 (Date of earliest event reported) InterTAN, Inc. (Exact name of Registrant as specified in its charter) Delaware 1-10062 75-2130875 (State of Incorporation) (Commission File No.) (I.R.S. Employer Identification No.) 3300 Highway #7, Suite 904 Concord, Ontario, Canada L4K 4M3 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (905) 760-9701 Item 2. Acquisition or Disposition of Assets ------------------------------------ On April 30, 2001, pursuant to a Share Sale Agreement dated April 10, 2001, InterTAN, Inc., a Delaware corporation (the "Registrant"), and InterTAN Canada Ltd., a wholly-owned subsidiary of the Registrant, each transferred and conveyed all of their respective equity interest in InterTAN Australia Ltd., a New South Wales corporation and wholly-owned subsidiary of the Registrant (the "Company"), to Dick Smith Electronics Holdings Pty Ltd (the "Purchaser"), for cash consideration paid at closing of A$114,139,649. Post-closing, the Registrant may be required to repay a portion of the purchase price to the Purchaser, based on the results of an audit of the Company's balance sheet as at April 30, 2001 (the "Completion Accounts"). The price will be adjusted upwards or downwards depending on the relationship between the net assets of the Company as determined in the Completion accounts and the net assets as at December 31, 2000. Based on unaudited results for the period January 1, 2001 through March 31 and preliminary results for the month of April, management estimates that the price will be adjusted downwards by approximately A$1,300,000 (approximately $650,000). The Company owns and operates retail stores in Australia through which it engages in the sale of a broad range of private label and brand name consumer electronics products. The consideration received by Registrant was determined through arms-length negotiation between the Registrant and the Purchaser. Item 7. Financial Statements and Exhibits. --------------------------------- (b) Unaudited pro forma consolidated financial information 2 InterTAN, Inc. UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION The following unaudited pro forma consolidated statements of operations for the year ended June 30, 2000 and for the nine months ended March 31, 2001 reflect the historical accounts of the Registrant, adjusted to give effect to the Registrant's disposition of the Company as if the disposition had occurred as of the beginning of each period presented. The following unaudited pro forma consolidated balance sheet as at March 31, 2001 reflects the historical consolidated balance sheet of the Registrant adjusted to give effect to the disposition of the Registrant's operating subsidiary in Australia as if such dispositions had taken place on March 31, 2001. The accounts of InterTAN Australia Ltd. are maintained in Australian dollars. The statement of operations is translated using monthly average exchange rates and the balance sheet has been translated at the exchange rate in effect on the balance sheet date (as at March 31, 2001 the exchange rate was 0.4853 U.S. dollars to the Australian dollar). The unaudited pro forma consolidated financial information should be read in conjunction with the historical financial statements of the Registrant. The unaudited pro forma consolidated financial data is for informational purposes only. It is not necessarily indicative of the results of operations or the financial position which would have been attained had the disposition been consummated at the foregoing dates and is not intended to project the Registrant's financial condition on any future date or results of operations for any future period. 3 InterTAN, Inc. Pro Forma Consolidated Statements of Operations For the Nine Months Ended March 31, 2001 - -------------------------------------------------------------------------------- (U.S. dollars in thousands, except per share data) (Unaudited)
Historical Historical InterTAN Pro Forma Consolidated Australia Consolidated Ltd./(1)/ ------------------- -------------------- --------------------- Net sales and operating revenues $ 387,527 $ 80,569 $ 306,958 Other income 109 94 15 ------------------- -------------------- --------------------- 387,636 80,663 306,973 ------------------- -------------------- --------------------- Operating costs and expenses: Cost of products sold 232,747 48,368 184,379 Selling, general and administrative expenses 115,763 29,597 86,166 Depreciation and amortization 4,882 1,130 3,752 ------------------- -------------------- --------------------- 353,392 79,095 274,297 ------------------- -------------------- --------------------- Operating income 34,244 1,568 32,676 Foreign currency transaction gains (losses) (268) (340) 72 Interest income 917 101 816 Interest expense, net (731) (14) (717) ------------------- -------------------- --------------------- Income before income taxes 34,162 1,315 32,847 Provision for income taxes 15,268 275 14,993 ------------------- -------------------- --------------------- Net income $ 18,894 $ 1,040 $ 17,854 =================== ==================== ===================== Basic net income per average common share $ 0.68 $ 0.64 Diluted net income per average common share $ 0.66 $ 0.62 Average common shares outstanding 27,905 27,905 Average common shares outstanding assuming dilution 28,637 28,637
The accompanying notes are an integral part of these pro forma consolidated financial statements. 4 InterTAN, Inc. Pro Forma Consolidated Statements of Operations For the Year Ended June 30, 2000 - -------------------------------------------------------------------------------- (U.S. dollars in thousands, except per share data) (Unaudited)
Historical Historical InterTAN Pro Forma Consolidated Australia Ltd. Consolidated (1) ------------------ ------------------- ------------------ Net sales and operating revenues $ 484,218 $ 120,056 $ 364,162 Other income (expense) 125 284 (159) ------------------ ------------------- ------------------ 484,343 120,340 364,003 ------------------ ------------------- ------------------ Operating costs and expenses: Cost of products sold 280,999 69,470 211,529 Selling, general and administrative expenses 153,336 42,648 110,688 Depreciation and amortization 6,003 1,445 4,558 ------------------ ------------------- ------------------ 440,338 113,563 326,775 ------------------ ------------------- ------------------ Operating income 44,005 6,777 37,228 Foreign currency transaction losses (209) (9) (200) Interest income 2,418 270 2,148 Interest expense (587) (25) (562) ------------------ ------------------- ------------------ Income before income taxes 45,627 7,013 38,614 Provision for income taxes 20,507 2,229 18,278 ------------------ ------------------- ------------------ Net income $ 25,120 $ 4,784 $ 20,336 ================== =================== ================== Basic net income per average common share $ 0.85 $ 0.69 Diluted net income per average common share $ 0.82 $ 0.67 Average common shares outstanding 29,658 29,658 Average common shares outstanding assuming dilution 30,501 30,501
The accompanying notes are an integral part of these pro forma consolidated financial statements. 5 InterTAN, Inc. Pro Forma Balance Sheet March 31, 2001 - -------------------------------------------------------------------------------- (U.S. dollars in thousands) (Unaudited)
Historical Pro Forma Pro Forma Consolidated Adjustments Consolidated ---------------------------------------------------------------- Assets Current Assets: Cash and short-term investments $ 38,662 $ 54,924(2) $ 93,586 Accounts receivable, less allowance for doubtful accounts 14,883 (3,128)(3) 11,755 Inventories 105,894 (24,601)(3) 81,293 Other current assets 1,229 (297)(3) 932 Deferred income taxes 2,135 (124)(3) 2,011 ---------------------------------------------------------------- Total current assets 162,803 26,774 189,577 Property and equipment, less accumulated depreciation and amortization 24,393 (6,456)(3) 17,937 Other assets 24 (9)(3) 15 Deferred income taxes 2,331 - 2,331 ---------------------------------------------------------------- $ 189,551 $ 20,309 $ 209,860 ================================================================ Liabilities and Stockholders' Equity Current Liabilities: Accounts payable $ 19,951 (3,445)(3) 16,506 Accrued expenses 14,736 4,235(4) 18,971 Income taxes payable 24,592 607(5) 25,199 Deferred service contract revenue - current portion 6,060 (909)(3) 5,151 ----------------------------------------------------------------- Total current liabilities 65,339 488 65,827 Deferred service contract revenue - non-current portion 5,193 (777)(3) 4,416 Other liabilities 5,038 (3,318)(3) 1,720 ----------------------------------------------------------------- 75,570 (3,607) 71,963 ----------------------------------------------------------------- Stockholders' Equity: Preferred stock - - - Common stock 31,078 - 31,078 Common stock in treasury (35,403) - (35,403) Additional paid-in capital 149,771 - 149,771 Retained earnings 9,119 3,433(6) 12,552 Foreign currency translation effects (40,584) 20,483(7) (20,101) ----------------------------------------------------------------- Total stockholders' equity 113,981 23,916 137,897 ----------------------------------------------------------------- $ 189,551 $ 20,309 $ 209,860 =================================================================
The accompanying notes are an integral part of these pro forma consolidated financial statements. 6 (1) Represents the historical results of operations of InterTAN Australia Ltd. for the year ended June 30, 2000 and for the nine months ended March 31, 2001 which are being removed for pro forma purposes from the Registrant's consolidated results of operation for the same periods. (2) Represents the estimated proceeds from the sale, including the repayment of certain inter-company accounts, of approximately A$116,852,000 or $57,949,000, less cash recorded in the accounts of InterTAN Australia Ltd. of $3,025,000. (3) Represents the book value of the assets and liabilities recorded in the accounts of InterTAN Australia Ltd, all of which have been sold in connection with the disposition. (4) Represents an accrual for the estimated selling costs born by the Registrant, less the accrued liabilities recorded in the accounts of InterTAN Australia Ltd. of $4,183,000. (5) Represents the initial estimate of income taxes payable on the gain on disposition, plus an asset recorded on the books of InterTAN Australia Ltd. of $18,000. (6) Represents the initial estimate of the gain on disposition of InterTAN Australia Ltd. (7) Represents the estimated cumulative foreign currency translation loss associated with the Registrant's investment in InterTAN Australia Ltd., which will be recognized as part of the overall gain on disposition. 7 (c) Exhibits Exhibit No. Description ----------- ----------- 2(a) Share Acquisition Agreement dated April 10, 2001 among InterTAN, Inc., InterTAN Canada Ltd. and Dick Smith Electronics Holdings Pty Ltd (Filed as Exhibit 10(h) to InterTAN's Quarterly Report on Form 10-Q for the quarter ended March 31, 2001 and incorporated herein by reference). 10(a) Termination Agreement among InterTAN Australia Limited, RadioShack Corporation, InterTAN, Inc., InterTAN Canada Ltd., RadioShack International Procurement Limited Partnership and Technotron Sales Corp. Pty Limited dated April 10, 2001(Filed as Exhibit 10(g) to InterTAN's Quarterly Report on Form 10-Q for the quarter ended March 31, 2001 and incorporated herein by reference). 8 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. InterTAN, Inc. May 15, 2001 By: /s/ Douglas C. Saunders --------------------------- Douglas C. Saunders Vice President and Corporate Controller 9 INDEX TO EXHIBITS Exhibit No. Description - ----------- ----------- 2(a) Share Acquisition Agreement dated April 10, 2001 among InterTAN, Inc., InterTAN Canada Ltd. and Dick Smith Electronics Holdings Pty Ltd (Filed as Exhibit 10(h) to InterTAN's Quarterly Report on Form 10-Q for the quarter ended March 31, 2001 and incorporated herein by reference). 10(a) Termination Agreement among InterTAN Australia Limited, RadioShack Corporation, InterTAN, Inc., InterTAN Canada Ltd., RadioShack International Procurement Limited Partnership and Technotron Sales Corp. Pty Limited dated April 10, 2001 (Filed as Exhibit 10(g) to InterTAN's Quarterly Report on Form 10-Q for the quarter ended March 31, 2001 and incorporated herein by reference). 10 -----END PRIVACY-ENHANCED MESSAGE-----