8-K 1 feb208k.txt UNITED STATES 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): February 20, 2004 ----------------- SEA CONTAINERS LTD. ------------------------------------------------------ (Exact name of registrant as specified in its charter) Bermuda ---------------------------------------------- (State or other jurisdiction of incorporation) 001-07560 98-0038412 ----------------------- ------------------- (Commission File Number) (I.R.S. Employer Identification No.) 22 Victoria Street Hamilton HM12, Bermuda --------------------------------------------------- (Address of principal executive offices) (Zip Code) 441-295-2244 ---------------------------------------------------- (Registrant's telephone number, including area code) Not Applicable ------------------------------------------------------------- (Former name or former address, if changed since last report) ITEM 5. Other Events As previously reported in a Current Report on Form 8-K dated August 4, 2003, on July 18, 2003, Sea Containers Ltd. completed the cash sale of all of the shares of its indirect wholly-owned subsidiary Sea Containers Isle of Man Ltd., which was the holding company of Sea Containers' Isle of Man Steam Packet ferry business, including The Isle of Man Steam Packet Company Ltd. (collectively, "Steam Packet"). In connection with a Registration Statement on Form S-3 filed by Sea Containers with the United States Securities and Exchange Commission (the "Commission") pursuant to the Securities Act of 1933, set forth below are pro forma statements of consolidated operations of Sea Containers and its subsidiaries for the year ended December 31, 2002, and the nine months ended September 30, 2003, reflecting the sale of Steam Packet and the application of the sale proceeds as if the transaction had occurred on January 1, 2002. No pro forma consolidated balance sheet is provided because the transaction has been accounted for in the September 30, 2003 consolidated balance sheet of Sea Containers included in its Quarterly Report on Form 10-Q for the quarter then ended. The pro forma financial information presented is not necessarily indicative of the results of operations of Sea Containers that might have occurred had the sale of Steam Packet actually taken place on January 1, 2002, or of future results of operations of Sea Containers. The pro forma financial statements are based upon the historical consolidated financial statements of Sea Containers included in Amendment No. 1 to its Annual Report on Form 10-K for the year ended December 31, 2002, and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2003, both filed with the Commission, and should be read in conjunction with such historical financial statements and the notes thereto. Included in the historical and pro forma results of operations for the nine months ended September 30, 2003 are certain non-recurring charges of $40,000,000. Those charges predominantly relate to the restructuring of Sea Containers' ferry operations which were incurred as a result of the Steam Packet sale. 2
Sea Containers Ltd. and Subsidiaries ---------------------------------------------------------------------------------------------------- Pro Forma Statement of Consolidated Operations (unaudited) ---------------------------------------------------------------------------------------------------- Pro forma Year ended December 31, 2002 Historical Adjustments Pro forma ---------------------------------------------------------------------------------------------------- (Dollars in thousands, except per share amounts) Revenue ................................. $1,614,860 $ (75,718) $1,539,142 Other ................................... 22,365 - 22,365 --------- ------- -------- 1,637,225 (75,718) 1,561,507 --------- ------- --------- Expenses: Depreciation and amortization .......... 113,710 (4,329) 109,381 Operating .............................. 1,118,005 (48,871) 1,069,134 Selling, general and administrative .... 231,006 (8,449) 222,557 --------- ------- --------- Total expenses .......................... 1,462,721 (61,649) 1,401,072 --------- ------- --------- Earnings from operations before net finance costs .......................... 174,504 (14,069) 160,435 --------- ------- -------- Interest expense - net .................. (124,993) 18,098(1) (106,895) Interest and related income ............. 10,323 (124) 10,199 --------- ------- -------- Net finance costs ....................... (114,670) 17,974 (96,696) --------- ------- -------- Earnings before minority interest and income taxes ........................... 59,834 3,905 63,739 Minority interest ....................... (10,958) - (10,958) --------- ------- -------- Earnings before income taxes ............ 48,876 3,905 52,781 Provision for income taxes .............. 5,860 882 6,742 --------- ------- -------- Net earnings ............................ 43,016 3,023 46,039 Preferred share dividends ............... 1,088 - 1,088 --------- ------- -------- Net earnings on class A and class B common shares .......................... $ 41,928 $ 3,023 $ 44,951 ========= ======== ======== Net earnings per class A and class B common share: Basic ................................. $ 2.08 $ 2.14 ========= ======== Diluted ............................... $ 2.07 $ 2.14 ========= ========
-------------------- (1) Adjustment for interest expense saved following repayment of debt of Steam Packet and part of the 9 1/2% and 10 1/2% Senior Notes due 2003 of Sea Containers with proceeds from the sale, calculated at the actual interest rates in 2002 on the respective debt and senior notes repaid. 3
Sea Containers Ltd. and Subsidiaries ---------------------------------------------------------------------------------------------------- Pro Forma Statement of Consolidated Operations (unaudited) ---------------------------------------------------------------------------------------------------- Pro forma Nine months ended September 30, 2003 Historical Adjustments Pro Forma ------------------------------------------------ --------------- --------------- --------------- (Dollars in thousands, except per share amounts) Revenue ................................. $ 1,222,114 $ (39,283) $ 1,182,831 Other .................................. 29,404 - 29,404 --------- ---------- --------- 1,251,518 (39,283) 1,212,235 --------- -------- --------- Expenses: Depreciation and amortization .......... 82,994 (2,742) 80,252 Operating .............................. 888,739 (22,881) 865,858 Selling, general and administrative .... 164,698 (4,631) 160,067 --------- ------- --------- Total expenses .......................... 1,136,431 (30,254) 1,106,177 --------- ------- --------- Gain on sale of ferry assets and non- recurring charges..................... 60,000 (100,000)(1) (40,000) -------- -------- --------- Earnings from operations before net finance costs ............. 175,087 (109,029) 66,058 -------- -------- --------- Interest expense - net .................. (75,388) 9,466(2) (65,922) Interest and related income ............. 7,887 - 7,887 -------- -------- -------- Net finance costs ....................... (67,501) 9,466 (58,035) -------- -------- --------- Earnings before income taxes ............ 107,586 (99,563) 8,023 Provision for income taxes ............... 7,032 (431) 6,601 -------- ------- ------ Net earnings............................. 100,554 (99,132) 1,422 Preferred share dividends ............... 816 - 816 -------- ------- ------ Net earnings on class A and class B common shares ................. $ 99,738 $ (99,132) $ 606 ========= ======== ======= Net earnings per class A and class B common share: Basic ................................ $ 4.74 $ 0.03 ===== ======= Diluted ............................... $ 4.66 $ 0.03 ===== =======
-------------------- (1) The gain on sale was $100,000,000 and the non-recurring charges amounted to $40,000,000. (2) Adjustment for interest expense saved following repayment of debt and senior notes with proceeds from the sale, calculated at the actual interest rates in the first nine months of 2003 on the respective debt and senior notes repaid. 4 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. SEA CONTAINERS LTD. By: /s/ E.S. Hetherington --------------------- Edwin S. Hetherington Vice President, General Counsel and Secretary Dated: February 20, 2004