-----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, SzH8FHypGoVruCQhcmmIJJaCphwAvwzT+Sy1iuAo8xQyu+jw/RX4sBZdJvVTNy8b Au/TH9cwtS6h2n9tJoAEXQ== 0001047469-98-034508.txt : 19980915 0001047469-98-034508.hdr.sgml : 19980915 ACCESSION NUMBER: 0001047469-98-034508 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980701 ITEM INFORMATION: FILED AS OF DATE: 19980914 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTHLAND CRANBERRIES INC /WI/ CENTRAL INDEX KEY: 0000818010 STANDARD INDUSTRIAL CLASSIFICATION: AGRICULTURE PRODUCTION - CROPS [0100] IRS NUMBER: 391583759 STATE OF INCORPORATION: WI FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: SEC FILE NUMBER: 000-16130 FILM NUMBER: 98709176 BUSINESS ADDRESS: STREET 1: 800 FIRST AVE SO STREET 2: P O BOX 8020 CITY: WISCONSIN RAPIDS STATE: WI ZIP: 54494 BUSINESS PHONE: 7154244444 8-K/A 1 8-K/A UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________ FORM 8-K/A AMENDMENT NO. 1 TO CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 _______________________ Date of Report (Date of earliest event reported): July 1, 1998 Northland Cranberries, Inc. ----------------------------------------------------- (Exact name of registrant as specified in its charter) Wisconsin 0-16130 39-1583759 ------------------------------ --------------- ----------------- (State or other jurisdiction (Commission File (IRS Employer of incorporation) Number) Identification No.) 800 First Avenue South P.O. Box 8020 Wisconsin Rapids, Wisconsin 54495-8020 ---------------------------------------------------------- (Address of principal executive offices including zip code) (715) 424-4444 ------------------------------- (Registrant's telephone number) The undersigned registrant hereby amends Item 7 of its Current Report on Form 8-K dated July 1, 1998 to provide in its entirety as follows: ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (a) FINANCIAL STATEMENTS OF BUSINESS ACQUIRED The Report of Independent Certified Public Accountants, the balance sheet at June 30, 1997, the statement of income and cash flows for the year ended June 30, 1997 and related notes thereto of Minot Food Packers, Inc., a New Jersey corporation ("Minot"), are incorporated by reference herein from the registrant's Registration Statement on Form S-3, (Reg. No. 333-53173), filed on May 20, 1998. The following financial statement information of Minot is provided herein: Unaudited Balance Sheet at March 31, 1998 Unaudited Statements of Income for the Nine Months Ended March 31, 1998 and 1997 Unaudited Statements of Cash Flows for the Nine Months Ended March 31, 1998 and 1997 Note to Unaudited Financial Statements (b) PRO FORMA FINANCIAL INFORMATION. The following pro forma financial statement information of the registrant and Minot is provided herein: Unaudited Consolidated Pro Forma Condensed Balance Sheet at May 31, 1998 Unaudited Consolidated Pro Forma Condensed Statements of Operations for the Nine Months Ended May 31, 1998 and 1997 Notes to Unaudited Consolidated Pro Forma Condensed Financial Statements 2 MINOT FOOD PACKERS, INC. UNAUDITED BALANCE SHEET AS OF MARCH 31, 1998
MARCH 31, 1998 Current assets: Accounts receivable: Trade, net of allowance for doubtful accounts $105,612 $ 1,967,797 Related parties 70,535 Inventories 8,434,368 Prepaid expenses and other current assets 239,956 Deferred income taxes 17,772 ----------- Total current assets 10,730,428 ----------- Property, plant and equipment, net 8,620,995 ----------- Other assets: Deferred costs, net of accumulated amortization of $319,800 474,814 Deferred financing costs, net of accumulated amortization of $87,884 169,462 Cash surrender value of life insurance 17,853 ----------- Total other assets 662,129 ----------- Total assets $20,013,552 ----------- ----------- Current liabilities: Notes payable, bank $2,868,842 Checks issued against future deposits 1,661,316 Accounts payable 3,058,605 Current maturities of long-term debt 2,297,297 Current maturities of subordinated debt 18,244 Accrued expenses 470,844 ----------- Total current liabilities 10,375,148 ----------- Other liabilities Long-term debt, net of current maturities 6,798,895 Subordinated debt, net of current maturities 521,606 Deferred income taxes 106,171 ----------- Total other liabilities 7,426,672 ----------- Total liabilities 17,801,820 ----------- Stockholder's equity: Common stock, no par value Authorized 5,000 shares Issued 2,440 shares 0 Additional paid-in capital 489,933 Retained earnings 5,056,222 ----------- 5,546,155 Less treasury stock, at cost, 2,196.5 shares (3,334,423) ----------- Total stockholder's equity 2,211,732 ----------- Total liabilities and stockholder's equity $20,013,552 ----------- -----------
3 MINOT FOOD PACKERS, INC. UNAUDITED STATEMENTS OF INCOME NINE MONTHS ENDED MARCH 31, 1998 AND 1997
MARCH 31, MARCH 31, 1998 1997 Net sales $31,035,577 $32,493,235 Cost of products sold 24,524,634 26,260,326 ----------- ----------- 6,510,943 6,232,909 Operating expenses: Selling 2,475,735 1,797,602 Brokerage 630,504 723,419 General and administrative 1,602,145 1,839,165 ----------- ----------- Total operating expense 4,708,384 4,360,186 ----------- ----------- Income from operations 1,802,559 1,872,723 ----------- ----------- Other income (expense): Interest expense (855,016) (798,463) Miscellaneous income 43,241 40,950 ----------- ----------- Other (expense), net (811,775) (757,513) ----------- ----------- Net income before taxes 990,784 1,115,210 Income tax expense 88,399 0 ----------- ----------- Net income $902,385 $1,115,210 ----------- ----------- ----------- -----------
4 MINOT FOOD PACKERS, INC. UNAUDITED STATEMENTS OF CASH FLOWS NINE MONTHS ENDED MARCH 31, 1998 AND 1997
MARCH 31, MARCH 31, 1998 1997 Operating activities Net income $902,385 $1,115,211 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 669,836 715,000 Amortization of intangibles 64,550 110,000 Deferred income taxes 88,399 0 Change in operating assets and liabilities (Increase) decrease in accounts receivable 352,194 (358,340) (Increase) in inventories (1,129,034) (564,796) (Increase) decrease in accounts receivable, related party 49,215 (119,750) (Increase) in prepaid expenses (150,049) (155,648) (Increase) in deferred costs (154,122) (4,151) (Increase) in accounts payable (270,074) (2,014,530) (Increase) decrease in accrued expenses (165,068) 123,991 Decrease in checks issued against future deposits 632,962 1,358,331 ----------- ---------- Net cash provided by operating activities 891,194 205,318 ----------- ---------- Investing activities Purchases of property, plant and equipment (486,707) (426,059) Increase in cash surrender value of life insurance 0 (2,055) ----------- ---------- Net cash provided by (used in) investing activities (486,707) (428,114) ----------- ---------- Financing activities Advances on note payable, bank 29,080,227 30,020,432 Repayments of note payable, bank (28,721,809) (29,489,548) Principal payments on long-term debt (750,490) (297,765) Principal payments on subordinated debt (12,415) (10,323) ----------- ---------- Net cash provided by (used in) financing activities (404,487) 222,796 ----------- ---------- Change in cash 0 0 Cash, beginning of period 0 0 ----------- ---------- Cash, end of period 0 0 ----------- ---------- ----------- ---------- Supplemental disclosure of cash information Cash paid during the year for interest $845,622 $789,369 ----------- ---------- ----------- ----------
5 MINOT FOOD PACKERS, INC. NOTE TO UNAUDITED FINANCIAL STATEMENTS The financial statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of the Company, the foregoing statements contain all adjustments necessary to present fairly the financial position of the Company as of March 31, 1998, and its results of operations and cash flows for the nine month periods ended March 31, 1998 and 1997. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these financial statements can be read in conjunction with the financial statements and the notes thereto included in the Company's latest audit report. 6 UNAUDITED CONSOLIDATED PRO FORMA CONDENSED FINANCIAL STATEMENTS The following unaudited consolidated pro forma condensed balance sheet combines the consolidated condensed balance sheet of Northland as of May 31, 1998 and the condensed balance sheet of Minot as of March 31, 1998. The following unaudited consolidated pro forma condensed statements of operations combine the consolidated condensed statements of operations of Northland for the year ended August 31, 1997 and for the nine months ended May 31, 1998, with the condensed statements of Minot for the year ended June 30, 1997 and the nine months ended March 31, 1998, as if the transactions had occurred beginning September 1, 1996 and September 1, 1997. The pro forma information is based on the historical financial statements of Northland and Minot, giving effect to the transaction under the purchase method of accounting, and the assumptions and adjustments in the accompanying notes to the pro forma consolidated condensed financial statements. The unaudited pro forma consolidated condensed balance sheet and the pro forma consolidated condensed statements of operations have been prepared by Northland management based upon the financial statements of Northland and Minot for the periods indicated. The pro forma net income per common share, the pro forma consolidated condensed operations statements and the pro forma consolidated condensed balance sheet data are presented for informational purposes only and are not necessarily indicative either of what the Company's actual results of operations would have been after giving effect to the assumptions referred to above or of the Company's future consolidated financial position or results of operations. 7 NORTHLAND CRANBERRIES, INC AND MINOT FOOD PACKERS, INC. UNAUDITED CONSOLIDATED PRO FORMA CONDENSED BALANCE SHEET MAY 31, 1998 ASSETS
Historical ---------------------------- Northland Minot Pro Forma May 31, 1998 March 31, 1998 Adjustments(a) Pro Forma ------------ -------------- -------------- --------- Current assets: Cash and cash equivalents $ 241,650 $ 241,650 Accounts and note receivable 10,789,197 $ 2,038,332 $ (70,535)(d) 12,756,994 Inventories 41,231,034 8,434,368 49,665,402 Prepaid expenses 2,304,301 239,956 2,544,257 Deferred income taxes 3,035,486 17,772 (17,772)(d) 3,035,486 ------------ ----------- ----------- ------------ Total current assets 57,601,668 10,730,428 (88,307) 68,243,789 Property and equipment, net 139,223,842 8,620,995 (8,620,995)(b) 151,423,842 9,200,000 (b) 3,000,000 (b) Investments and other assets 3,150,003 662,129 18,062,328 (c) 21,212,331 (662,129)(d) ------------ ----------- ----------- ------------ Total assets $199,975,513 $20,013,552 $20,890,897 $240,879,962 ------------ ----------- ----------- ------------ ------------ ----------- ----------- ------------ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Note payable, bank $ 0 $ 2,868,842 $ (2,868,842)(d) $ 0 Advances against future deposits 1,661,316 (1,661,316)(d) 0 Accounts payable 4,575,520 3,058,605 7,634,125 Accrued liabilities 5,370,645 470,844 5,841,489 Current portion of long-term obligations 3,844,000 2,315,541 (2,315,541)(d) 3,844,000 ------------ ----------- ----------- ------------ Total current liabilities 13,790,165 10,375,148 (6,845,699) 17,319,614 Long-term obligations 100,400,342 7,320,501 (7,320,501)(d) 100,400,342 Deferred income taxes 9,811,671 106,171 (106,171)(d) 9,811,671 ------------ ----------- ----------- ------------ Total liabilities 124,002,178 17,801,820 (14,272,371) 127,531,627 Shareholder's equity 75,973,335 2,211,732 (2,211,732)(d) 113,348,335 2,000,000 (e) 35,375,000 (f) ------------ ----------- ----------- ------------ Total liabilities and shareholder's equity $199,975,513 $20,013,552 $20,890,897 $240,879,962 ------------ ----------- ----------- ------------ ------------ ----------- ----------- ------------
See notes to unaudited consolidated pro forma financial statements. 8 NORTHLAND CRANBERRIES, INC. AND MINOT FOOD PACKERS, INC. UNAUDITED CONSOLIDATED PRO FORMA CONDENSED STATEMENT OF OPERATIONS YEAR ENDED AUGUST 31, 1997
HISTORICAL ------------------------------ NORTHLAND FISCAL MINOT FISCAL YEAR ENDED YEAR ENDED AUGUST 31, JUNE 30, PRO FORMA 1997 1997 ADJUSTMENTS(a) PRO FORMA ----------- ----------- ------------- ----------- Revenues $47,374,827 $41,652,039 $89,026,866 Cost of sales 23,170,154 33,709,956 $ (902,264) (g) 57,045,328 (141,219) (h) 657,143 (i) 100,000 (j) 451,558 (k) ----------- ----------- ----------- ----------- Gross profit 24,204,673 7,942,083 (165,218) 31,981,538 Costs and expenses: Selling, general and administrative 15,963,109 5,629,752 21,592,861 Interest 4,493,104 1,131,461 (1,131,461) (l) 4,493,104 ----------- ----------- ----------- ----------- Total costs and expenses 20,456,213 6,761,213 (1,131,461) 26,085,965 ----------- ----------- ----------- ----------- Income before income taxes 3,748,460 1,180,870 966,243 5,895,573 Income taxes 1,516,000 842,000 (m) 2,358,000 ----------- ----------- ----------- ----------- Net income $ 2,232,460 $ 1,180,870 $ 124,243 $ 3,537,573 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Weighted average shares outstanding 13,736,906 136,986(e) 2,688,070 16,561,962 Net income per share-basic $0.16 $0.21 ----------- ----------- ----------- ----------- Weighted average shares outstanding assuming dilution 14,308,845 136,986(e) 2,688,070 17,133,901 Net income per share-diluted $0.16 $0.21 ----------- ----------- ----------- -----------
See notes to unaudited consolidated pro forma financial statements. 9 NORTHLAND CRANBERRIES, INC. AND MINOT FOOD PACKERS, INC. UNAUDITED CONSOLIDATED PRO FORMA CONDENSED STATEMENT OF OPERATIONS NINE MONTHS ENDED MAY 31, 1998
HISTORICAL ------------------------- NORTHLAND NINE MINOT NINE MONTHS ENDED MONTHS ENDED PRO FORMA MAY 31, 1998 MARCH 31, 1998 ADJUSTMENTS(a) PRO FORMA ------------ ------------- ------------- ------------ Revenues $75,144,603 $31,078,818 $106,223,421 Cost of sales 40,711,828 24,524,634 $(669,835) (g) 65,106,428 (64,550) (h) 328,572 (i) 50,000 (j) 225,779 (k) ----------- ----------- --------- ------------ Gross profit 34,432,775 6,554,184 130,034 41,116,993 Costs and expenses: Selling, general and administrative 28,061,413 4,708,384 32,769,797 Interest 5,303,206 855,016 (855,016) (l) 5,303,206 ----------- ----------- --------- ------------ Total costs and expenses 33,364,619 5,563,400 (855,016) 38,073,003 ----------- ----------- --------- ------------ Income before income taxes 1,068,156 990,784 985,050 3,043,990 Income taxes 452,000 88,399 775,000 (m) 1,315,399 ----------- ----------- --------- ------------ Net income $ 616,156 $ 902,385 $ 210,050 $ 1,728,591 ----------- ----------- --------- ------------ ----------- ----------- --------- ------------ Weighted average shares outstanding 13,860,516 136,986(e) 2,688,070 (f) 16,685,572 Net income per share-basic $0.04 $0.10 ----------- ------------ ----------- ------------ Weighted average shares outstanding assuming dilution 14,320,594 136,986(e) 2,688,070 17,145,650 Net income per share-diluted $0.04 $0.10 ----------- ------------ ----------- ------------
See notes to unaudited consolidated pro forma financial statements. 10 NORTHLAND CRANBERRIES, INC. AND MINOT FOOD PACKERS, INC. NOTES TO UNAUDITED CONSOLIDATED PRO FORMA CONDENSED FINANCIAL STATEMENTS (a) Reflects those adjustments necessary to record the acquisition of substantially all of the assets and the assumption of certain liabilities of Minot. (b) Reflects the removal of Minot property and equipment and records the estimated value of property and equipment as determined by Northland. (c) Reflects the estimated portion of the purchase price of the Minot Acquisition allocated to goodwill. (d) Reflects the elimination of Minot assets not acquired by Northland and Minot liabilities not assumed by Northland (e) Reflects 136,986 shares of Northland Class A Stock to be issued at a price of $14.60 per share issued in the Minot Acquisition. (f) Reflects the sale of 2,688,070 shares of Class A Common Stock at an assumed price of $14.00 per share pursuant to the Company's June 30, 1998 Follow-on Public Offering of 5,000,000 shares of its Class A Common Stock. (g) Reflects the reversal of depreciation expense recorded by Minot. (h) Reflects the reversal of amortization expense recorded by Minot. (i) Reflects the deprecation expense of Minot assets based upon the change in valuation of property, plant and equipment. Such property, plant and equipment is being depreciated over a 14-year period. (j) Reflects the depreciation expense of Minot's Bridgeton freezer based upon the change in valuation of the freezer based on appraised values. The freezer is being depreciated over a 30-year period. (k) Reflects the amortization of goodwill from the Minot acquisition. Goodwill is being amortized over a 40-year period. (l) Reflects the elimination of Minot interest expense as the long-term debt of Minot was not assumed in the acquisition. (m) Reflects the income taxes on the pro forma adjustments and Minot pre-tax earnings. 11 (c) EXHIBITS. The exhibits listed in the accompanying Exhibit Index are filed as part of this Current Report on Form 8-K. 12 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this amendment to the report to be signed on its behalf by the undersigned hereunto duly authorized. NORTHLAND CRANBERRIES, INC. Date: September 14, 1998 By: /s/ John A. Pazurek ------------------------ John A. Pazurek Vice President - Finance, Treasurer, and Chief Financial Officer 13 NORTHLAND CRANBERRIES, INC. EXHIBIT INDEX TO FORM 8-K Report Dated July 1, 1998
Exhibit No. Description - ------- ----------- (2) Asset Purchase Agreement, dated as of July 1, 1998, by and among Northland Cranberries, Inc., Minot Food Packers, Inc. and Michael A. Morello.* [Previously filed with this Current Report on Form 8-K] (23) Consent of BDO Seidman, LLP
__________________________ *The schedules and exhibits to this document are not being filed herewith. The registrant agrees to furnish supplementally a copy of any such schedule or exhibit to the Securities and Exchange Commission upon request. 14 EX-23 2 EXHIBIT 23 EXHIBIT 23 CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS Minot Food Packers, Inc. Bridgeton, New Jersey We hereby consent to the incorporation by reference in Registration Statement No. 33-32525 on Form S-8, Registration Statement No. 333-08563 on Form S-4, Registration Statement No. 33-62723 on Form S-8, Registration Statement No. 333-01577 on Form S-8 and this Current Report on Form 8-K of Northland Cranberries Inc. of our report dated August 12, 1997 relating to the financial statements of Minot Food Packers, Inc. for the year ended June 30, 1997. BDO SEIDMAN, LLP Philadelphia, Pennsylvania September 14, 1998 -----END PRIVACY-ENHANCED MESSAGE-----