-----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, DwpzR2Che+/6c8qVqBELKxkPTdPvAmzqtvScDFZR1OAi4kiqO+Jk2BRxuRE7pG3e Xxor9NkYJvfd3Cq8d5bU2A== 0000928385-97-000067.txt : 19970116 0000928385-97-000067.hdr.sgml : 19970116 ACCESSION NUMBER: 0000928385-97-000067 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19961231 ITEM INFORMATION: Acquisition or disposition of assets ITEM INFORMATION: Other events FILED AS OF DATE: 19970115 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ICF KAISER INTERNATIONAL INC CENTRAL INDEX KEY: 0000856200 STANDARD INDUSTRIAL CLASSIFICATION: HAZARDOUS WASTE MANAGEMENT [4955] IRS NUMBER: 541437073 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12248 FILM NUMBER: 97506228 BUSINESS ADDRESS: STREET 1: 9300 LEE HWY CITY: FAIRFAX STATE: VA ZIP: 22031 BUSINESS PHONE: 7039343600 MAIL ADDRESS: STREET 1: 9300 LEE HWY CITY: FAIRFAX STATE: VA ZIP: 22031 FORMER COMPANY: FORMER CONFORMED NAME: ICF INTERNATIONAL INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN CAPITAL & RESEARCH CORP /DE/ DATE OF NAME CHANGE: 19910314 8-K 1 FORM 8-K U.S. 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): December 31, 1996 ICF KAISER INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) Delaware File No. 1-12248 54-1437073 (State or other (Commission File (IRS Employer jurisdiction of Number) Identification No.) incorporation) 9300 Lee Highway Fairfax, Virginia 22031-1207 (Address of principal executive offices, including zip code) 703-934-3600 (Registrant's telephone number, including area code) Item 2. Acquisition or Disposition of Assets ------------------------------------ Effective December 31, 1996, the Registrant sold the majority of its equity interests in entities that own and operate a pulverized coal injection (PCI) facility to affiliates of Constellation Power, Inc., of Baltimore, Maryland (the "Disposition of PCI"). The PCI facility, which is located at U.S. Steel Group's Gary Works in Gary, Indiana, provides pulverized coal to four blast furnaces at the site. The Registrant, which designed and constructed the PCI facility, has operated it from its start-up in February 1993 to January 1, 1997, when affiliates of Constellation Power began operating it. Affiliates of Constellation Power have an option to purchase the Registrant's remaining equity interest in the facility in January 1998. The principle followed in determining the amount of consideration received was a discounted cash flow analysis. The expected impact of the Disposition of PCI will be a substantial gain in the Registrant's fourth quarter 1996 results. UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS The following tables set forth historical financial information for the Registrant and pro forma financial information giving effect to the Disposition of PCI and application of the assumed proceeds therefrom (collectively, the "Pro Forma Transactions"). The pro forma statement of operations data are presented as if the Pro Forma Transactions had occurred as of March 1, 1995, and the pro forma balance sheet is presented as if the Pro Forma Transactions had occurred on September 30, 1996. The pro forma adjustments are described in detail in the accompanying notes. These pro forma results have been prepared for comparative purposes only and do not purport to indicate what would have occurred had the transactions actually occurred at the dates indicated, or of results which may occur in the future. This pro forma financial information should be read in conjunction with the notes thereto and the historical consolidated financial statements of the Registrant on file with the U.S. Securities and Exchange Commission. 2 Unaudited Pro Forma Consolidated Balance Sheet As of September 30, 1996 (in thousands)
(1) (2) (3) (4) Pro Forma Adjustments Pro Forma --------------------------- ICF Kaiser Disposition Other After Historical of PCI Adjustments Adjustments ------------------------------------------------------------- ASSETS Current Assets Cash and cash equivalents $ 21,022 $ 16,500 $ - $ 37,522 Contract receivables, net 234,168 - - 234,168 Prepaid expenses and other current assets 10,780 - - 10,780 Deferred income taxes 11,938 2,613 - 14,551 ---------- --------- ----------- ---------- Total Current Assets 277,908 19,113 - 297,021 ---------- --------- ----------- ---------- Fixed Assets Furniture, equipment, and leasehold improvements 48,839 (1,365) - 47,474 Less depreciation and amortization (36,595) 852 - (35,743) ---------- --------- ----------- ---------- 12,244 (513) - 11,731 ---------- --------- ----------- ---------- Other Assets Goodwill, net 50,510 - - 50,510 Investments in and advances to affiliates 12,168 (4,651) - 7,517 Due from officers and employees 986 - - 986 Other 20,719 - - 20,719 ---------- --------- ----------- ---------- 84,383 (4,651) - 79,732 ---------- --------- ----------- ---------- $ 374,535 $ 13,949 $ - $ 388,484 ========== ========= =========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Current portion of long-term debt $ - $ - $ - $ - Accounts payable and subcontractors payable 76,304 - - 76,304 Accrued salaries and employee benefits 59,721 - - 59,721 Accrued interest 4,061 - - 4,061 Other accrued expenses 14,869 - - 14,869 Deferred revenue 14,648 - - 14,648 Other 6,296 3,633 - 9,929 ---------- --------- ----------- ---------- Total Current Liabilities 175,899 3,633 - 179,532 ---------- --------- ----------- ---------- Long-term Liabilities Long-term debt, less current portion 133,384 - - 133,384 Other 5,679 - - 5,679 ---------- --------- ----------- ---------- 139,063 - - 139,063 ---------- --------- ----------- ---------- Commitments and Contingencies Minority Interests in Subsidiaries 6,441 - - 6,441 Redeemable Preferred Stock 19,940 - - 19,940 Common Stock 224 - - 224 Additional Paid-in Capital 67,158 - - 67,158 Notes Receivable Related to Common Stock (1,732) - - (1,732) Retained Earnings (Deficit) (30,805) 10,316 - (20,489) Cumulative Translation Adjustment (1,653) - - (1,653) ---------- --------- ----------- ---------- $ 374,535 $ 13,949 $ - $ 388,484 ========== ========= =========== ==========
3 Unaudited Pro Forma Consolidated Statement of Operations Nine Months Ended September 30, 1996 (In thousands, except per share amounts)
(1) (2) (3) (4) Pro Forma Adjustments Pro Forma --------------------------- ICF Kaiser Disposition Other After Historical of PCI Adjustments Adjustments ------------------------------------------------------------------- GROSS REVENUE $ 1,023,410 $ (3,453) $ - $ 1,019,957 Subcontract and direct material costs (592,295) 752 - (591,543) Equity in income of joint ventures and affiliated companies 2,532 (2,025) - 507 ------------- ----------- ------------- ------------ SERVICE REVENUE 433,647 (4,726) - 428,921 OPERATING EXPENSES Direct cost of services and overhead 354,658 (1,290) - 353,368 Administrative and general 49,979 - - 49,979 Depreciation and amortization 7,840 (355) - 7,485 ------------- ----------- ------------- ------------ OPERATING INCOME 21,170 (3,081) - 18,089 OTHER INCOME(EXPENSE) Interest income 944 (12) - 932 Interest expense (12,829) - 408 (a) (12,421) ------------- ----------- ------------- ------------ INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS 9,285 (3,093) 408 6,600 Income tax provision 840 (928) 2,068 (b) 1,980 ------------- ----------- ------------- ------------ INCOME BEFORE MINORITY INTERESTS 8,445 (2,165) (1,660) 4,620 Minority interests in net income of subsidiaries 4,725 - - 4,725 ------------- ----------- ------------- ------------ NET INCOME(LOSS) 3,720 (2,165) (1,660) (105) Preferred stock dividends and accretion 1,631 - - 1,631 ------------- ----------- ------------- ------------ NET INCOME(LOSS) AVAILABLE FOR COMMON SHAREHOLDERS $ 2,089 $ (2,165) $ (1,660) $ (1,736) ============= =========== ============= ============ Primary and Fully Diluted Net Income(Loss) Per Common Share $ 0.10 $ (0.08) ============= ============ Primary and Fully Diluted Weighted Average Common and Common Equivalent Shares Outstanding 21,955 21,955 ========== ============
4 Unaudited Pro Forma Consolidated Statement of Operations Ten Months Ended December 31, 1995 (In thousands, except per share amounts)
(1) (2) (3) (4) Pro Forma Adjustments Pro Forma ----------------------------------- ICF Kaiser Disposition Other After Historical of PCI Adjustments Adjustments --------------------------------------------------------------------------- GROSS REVENUE $ 916,744 $ (4,004) $ - $ 912,740 Subcontract and direct material costs (493,971) 753 - (493,218) Equity in income of joint ventures and affiliated companies 3,123 (1,240) - 1,883 ----------- ------------ -------------- -------------- SERVICE REVENUE 425,896 (4,491) - 421,405 OPERATING EXPENSES Direct cost of services and overhead 359,887 (1,292) - 358,595 Administrative and general 40,647 - - 40,647 Depreciation and amortization 8,357 (433) - 7,924 Unusual items, net (500) - - (500) ----------- ------------ -------------- -------------- OPERATING INCOME 17,505 (2,766) - 14,739 Other Income (Expense) Gain on sale of investment - 11,336 - 11,336 Interest income 2,053 (10) - 2,043 Interest expense (13,255) - 363 (a) (12,892) ----------- ------------ -------------- -------------- INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS 6,303 8,560 363 15,226 Income tax provision 2,091 1,712 (758) (b) 3,045 ----------- ------------ -------------- -------------- INCOME BEFORE MINORITY INTERESTS 4,212 6,848 1,121 12,181 Minority Interests in net income of subsidiaries 1,960 - - 1,960 ----------- ------------ -------------- -------------- NET INCOME 2,252 6,848 1,121 10,221 Preferred stock dividends and accretion 1,803 - - 1,803 ----------- ------------ -------------- -------------- NET INCOME AVAILABLE FOR COMMON SHAREHOLDERS $ 449 $ 6,848 $ 1,121 $ 8,418 ----------- ------------ -------------- -------------- Primary and Fully Diluted Net Income Per Common Share: $ 0.02 $ 0.39 ----------- -------------- Primary and Fully Diluted Weighted Average Common and Common Equivalent Shares Outstanding 21,517 21,517 ----------- --------------
5 Notes To Unaudited Pro Forma Consolidated Financial Statements Column 1 has been prepared from the Registrant's historical consolidated financial statements on file with the U.S. Securities and Exchange Commission. Column 2 has been prepared from the Registrant's accounts and represents the effect of the Disposition of PCI and the entities associated with the Disposition (including the option exercisable in 1998). Column 3 represents unaudited pro forma adjustments that the Registrant considers necessary to give effect to the Pro Forma Transactions other than the Disposition of PCI. Column 4 represents the unaudited pro forma results of operations and financial position of the Registrant after giving effect to the Pro Forma Transactions. (a) To record, as a result of the Pro Forma Transactions, the effect of the reduction in interest expense of the Registrant's credit facility. It is assumed that proceeds from the Disposition of PCI will be reinvested in the Registrant's business activities and that such activities will provide funds to allow the Registrant to reduce borrowings under the credit facility. (b) To record the net effect on the income tax provision. Item 5. Other events ------------ As reported in item 2 above, the Registrant sold the majority of its equity interests in entities that own and operate a pulverized coal injection (PCI) facility to affiliates of Constellation Power, Inc., of Baltimore, Maryland; the expected impact of the Disposition of PCI will be a substantial gain in the Registrant's fourth quarter 1996 results. On December 23, 1996, the Registrant sold 15,000 units of 12% Senior Notes due in the year 2003, and associated warrants to purchase 105,000 shares of the Registrant's common stock. The approximately $14 million in net proceeds from the offering, together with borrowings under the Registrant's credit facility, were used on December 30, 1996, to repurchase $20 million of Series 2D Senior Preferred Stock, owned by EXOR America, Inc. of New York City. The Series 2D Senior Preferred Stock had a mandatory redemption date of January 13, 1997, and represented approximately 10 percent of the total shareholders vote. On December 30, 1996, the Registrant also repurchased (for a nominal price) all of the 2,680,952 Series 2D Warrants held by an affiliate of EXOR America. Following these repurchases, Mr. Gian Andrea Botta, the President of EXOR America, resigned from the Registrant's Board of Directors effective December 30, 1996. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized. ICF KAISER INTERNATIONAL, INC. (Registrant) /s/ Richard K. Nason ------------------------ Richard K. Nason Executive Vice President and Chief Financial Officer Date: January 15, 1997 6 -----END PRIVACY-ENHANCED MESSAGE-----