8-K 1 o05466e8-k.txt FORM 8-K 1 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 (Date of earliest event reported) March 21, 2001. THE LOEWEN GROUP INC. (Exact name of registrant as specified in its charter) British Columbia, Canada 0-18429 98-0121376 ---------------------------- ----------------------- ------------------- (State or other jurisdiction (Commission File Number) (IRS Employer of incorporation) Identification No.) 4126 Norland Avenue, Burnaby, British Columbia V5G 3S8 -------------------------------------------------------------------------------- (Address of principal executive offices) (zip code) Registrant's telephone number, including area code 604-299-9321 ----------------------------- N/A ----------------------------------------------------- (Former name or former address, if changed since last report) Exhibit Index is on page 3 Page 1 of 9 2 ITEM 5. OTHER EVENTS. Pursuant to Form 8-K, General Instructions F, registrant hereby incorporates by reference the press release attached hereto as Exhibit 99. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. THE LOEWEN GROUP INC. Consolidated Statements of Operations and Deficit All amounts expressed in thousands of U.S. dollars except per share amounts
THREE MONTHS ENDED YEAR ENDED DECEMBER 31 DECEMBER 31 ----------------------------- ----------------------------- 2000 1999 2000 1999 ----------- ----------- ----------- ----------- Revenue Funeral $ 144,411 $ 146,892 $ 580,204 $ 605,029 Cemetery 47,704 53,305 220,613 324,019 Insurance 22,046 22,667 95,245 94,101 ----------- ----------- ----------- ----------- 214,161 222,864 896,062 1,023,149 Costs and expenses Funeral 103,289 104,505 410,630 413,811 Cemetery 38,169 61,594 171,177 271,077 Insurance 21,428 17,368 79,837 73,727 ----------- ----------- ----------- ----------- 162,886 183,467 661,644 758,615 ----------- ----------- ----------- ----------- 51,275 39,397 234,418 264,534 Expenses General and administrative 18,830 25,323 71,356 93,919 Depreciation and amortization 14,013 16,976 57,019 64,042 Provision for asset impairment 40,245 340,068 132,276 355,180 ----------- ----------- ----------- ----------- 73,088 382,367 260,651 513,141 ----------- ----------- ----------- ----------- Loss from operations (21,813) (342,970) (26,233) (248,607) Interest on long-term debt (See (1) below) 2,474 4,932 12,410 87,849 Provision for investment impairment and contingent losses -- 59,247 -- 59,247 Reorganization costs 20,430 14,434 45,877 92,791 Dividends on preferred securities of subsidiary -- -- -- 2,971 Other expenses (income) 9,779 (8,989) 14,390 5,651 ----------- ----------- ----------- ----------- Loss before income taxes (54,496) (412,594) (98,910) (497,116) Income taxes 1,705 (43,905) 13,807 (31,940) ----------- ----------- ----------- ----------- Net loss for the period $ (56,201) $ (368,689) $ (112,717) (465,176) ----------- ----------- ----------- ----------- Deficit, beginning of period (1,061,433) (636,228) (1,004,917) (539,741) ----------- ----------- ----------- ----------- Deficit, end of period $(1,117,634) $(1,004,917) $(1,117,634) $(1,004,917) ----------- ----------- ----------- ----------- Basic loss per Common share $ (0.79) $ (5.00) $ (1.64) $ (6.40)
(1) - Contractual interest not recorded on liabilities subject to compromise for the year ended December 31, 2000 - $174,064 (December 31, 1999 - $99,885). Certain of the comparative figures have been reclassified to conform to the presentation adopted in the current period. 3 THE LOEWEN GROUP INC. Consolidated Balance Sheets All amounts expressed in thousands of U.S. dollars
DECEMBER 31 DECEMBER 31 2000 1999 ----------- ----------- ASSETS Current assets Cash $ 159,090 $ 55,166 Receivables, net of allowances 211,799 198,500 Inventories 35,418 34,850 Prepaid expenses 9,551 12,332 ----------- ----------- 415,858 300,848 Long-term receivables, net of allowances 534,664 577,733 Cemetery property 882,080 923,344 Property and equipment 687,804 799,813 Names and reputations 600,709 650,200 Insurance invested assets 302,515 281,423 Future income tax assets 2,458 5,128 Pre-arranged funeral services 427,838 438,541 Other assets 126,980 133,553 ----------- ----------- $ 3,980,906 $ 4,110,583 ----------- ----------- LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities not subject to compromise Current liabilities Accounts payable and accrued liabilities $ 112,387 $ 97,637 Long-term debt, current portion 25,598 20,693 ----------- ----------- 137,985 118,330 Long-term debt, net of current portion 47,944 70,511 Other liabilities 399,893 426,019 Insurance policy liabilities 204,727 184,207 Future income tax liabilities 144,570 146,028 Deferred pre-arranged funeral services revenue 427,838 438,541 Liabilities subject to compromise 2,289,497 2,282,601 Shareholders' equity Common shares 1,276,414 1,276,434 Preferred shares 157,144 157,146 Deficit (1,117,634) (1,004,917) Foreign exchange adjustment 12,528 15,683 ----------- ----------- 328,452 444,346 ----------- ----------- $ 3,980,906 $ 4,110,583 ----------- -----------
4 THE LOEWEN GROUP INC. Consolidated Statements of Cash Flows All amounts expressed in thousands of U.S. dollars
THREE MONTHS ENDED YEAR ENDED DECEMBER 31 DECEMBER 31 ------------------------- ------------------------- 2000 1999 2000 1999 --------- --------- --------- --------- CASH PROVIDED BY (APPLIED TO) Operations Net loss $ (56,201) $(368,689) $(112,717) $(465,176) Items not affecting cash Depreciation and amortization 18,045 23,549 73,742 82,212 Amortization of debt issue costs 164 839 3,142 4,929 Provision for asset impairment 40,245 340,068 132,276 355,180 Provision for investment impairment and contingent losses -- 59,247 -- 59,247 Loss (gain) on disposition of assets and investments 9,779 (13,518) 14,390 1,122 Future income taxes 10 (38,076) 1,799 (40,172) Equity and other earnings of associated companies -- 4,529 -- 4,529 Non-cash reorganization costs 5,957 567 6,293 59,184 Other, including net changes in other non-cash balances 4,653 11,689 28,911 (27,991) --------- --------- --------- --------- 22,652 20,205 147,836 33,064 --------- --------- --------- --------- Investing Proceeds on disposition of assets and investments 22,854 4,152 36,119 202,635 Purchase of property and equipment (10,204) (9,076) (24,024) (39,530) Construction of new facilities (990) (1,693) (2,468) (14,974) Purchase of insurance invested assets (54,908) (29,154) (141,873) (147,510) Proceeds on disposition and maturities of insurance invested assets 44,449 21,012 109,612 130,434 Business acquisitions -- (173) -- (173) --------- --------- --------- --------- 1,201 (14,932) (22,634) 130,882 --------- --------- --------- --------- Financing Increase in long-term debt -- -- -- 14,936 Repayment of long-term debt (3,563) (5,433) (20,553) (140,613) Repayment of current indebtedness -- (16,735) -- (66,222) Debt issue costs 228 (69) (725) (8,866) Preferred share dividends -- -- -- (2,156) --------- --------- --------- --------- (3,335) (22,237) (21,278) (202,921) --------- --------- --------- --------- Increase (decrease) in cash during the period 20,518 (16,964) 103,924 (38,975) Cash, beginning of period 138,572 72,130 55,166 94,141 --------- --------- --------- --------- Cash, end of period $ 159,090 $ 55,166 $ 159,090 $ 55,166 --------- --------- --------- ---------
Exhibit No. Description Exhibit 99 The Loewen Group Inc. Press Release dated March 21, 2001. 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 hereunto duly authorized. Dated: March 21, 2001. THE LOEWEN GROUP INC. By: /s/ Peter S. Hyndman --------------------------------- Name: Peter S. Hyndman Title: Corporate Secretary 5 EXHIBIT INDEX Sequential
Number Exhibit Page Number ------ ------- ----------- 99 The Loewen Group Inc. 4 Press Release dated March 21, 2001