-----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, L5pSbp+lyAv8/sQ/ynjgG+lXPF9Z+D7M8msaZkv8ry9Yv2Ew3Kb6waK75peAJ9Nl HUKtEl3zrZ3b9CCFUwGikw== 0001140361-10-011574.txt : 20100312 0001140361-10-011574.hdr.sgml : 20100312 20100312144258 ACCESSION NUMBER: 0001140361-10-011574 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20100308 ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20100312 DATE AS OF CHANGE: 20100312 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ORTHOFIX INTERNATIONAL N V CENTRAL INDEX KEY: 0000884624 STANDARD INDUSTRIAL CLASSIFICATION: SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-19961 FILM NUMBER: 10677272 BUSINESS ADDRESS: STREET 1: 7 ABRAHAM DE VEERSTRAAT STREET 2: CURACAO CITY: NETHERLANDS ANTILLES STATE: P8 ZIP: 00000 8-K/A 1 form8-k.htm ORTHOFIX INTERNATIONAL 8-K/A 3-8-2010 form8-k.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
______________________

FORM 8-K/A

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 8, 2010
______________________

Orthofix International N.V.

(Exact name of Registrant as specified in its charter)


Netherlands Antilles
  
0-19961
  
N/A
(State or other jurisdiction of incorporation)
  
(Commission File Number)
  
(IRS Employer Identification No.)


7 Abraham de Veerstraat
Curacao
Netherlands Antilles
  
 
N/A
(Address of principal executive offices)
  
(Zip Code)

______________________

Registrant’s telephone number, including area code: 011-59-99-465-8525
______________________

 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 
 

Explanatory Note:

Orthofix International N.V. (the "Company") is filing this amendment to its Current Report on Form 8-K that was initially filed with the Securities and Exchange Commission on March 9, 2010 to file the pro forma financial information required by Item 9.01(b) of Form 8-K with respect to the Company's sale of assets related to the AV Impulse System® and related accessories.

Item 9.01.
Financial Statements and Exhibits.

 
(b)
Pro Forma Financial Information.
 
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS FOR ORTHOFIX INTERNATIONAL N.V.

On March 8, 2010, the Company and certain of its subsidiaries (the “Orthofix Parties”) completed the sale to Tyco Healthcare Group LP d/b/a Covidien, Covidien AG, and certain of their affiliates of substantially all of the Orthofix Parties’ collective assets related to the AV Impulse System® and related accessories (including finished goods inventory).  In the unaudited pro forma consolidated financial information below, we refer to these assets as the “Vascular business”.

The unaudited pro forma consolidated financial information shown below is based on historical consolidated financial statements of the Company.  The unaudited pro forma financial information presented reflects the estimated pro forma effect of the disposition on the Company.

The unaudited pro forma consolidated financial information as follows:
 
·
An unaudited pro forma consolidated balance sheet as of December 31, 2009, giving effect to the disposition as if it occurred as of December 31, 2009.
 
·
An unaudited pro forma consolidated statement of operations for the year ended December 31, 2009 giving effect to the disposition as if it occurred on January 1, 2009
 
·
Notes to unaudited pro forma financial statements.

The unaudited pro forma consolidated financial statements include specific assumptions and adjustments related to the disposition.  These pro forma adjustments have been made to illustrate the anticipated financial effect of the disposition on the Company.  The adjustments are based upon available information and assumptions that the Company believes are reasonable as of the date of this filing.  However, actual adjustments may differ materially from the information presented.  Assumptions underlying the pro forma adjustments are described in the accompanying notes, which should be read in conjunction with the unaudited pro forma consolidated financial statements.  The pro forma financial statements, including notes thereto, should be read in conjunction with the historical financial state ments of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2009.

The unaudited pro forma consolidated financial information presented herein is for informational purposes only.  It is not intended to represent or be indicative of the consolidated results of operations or financial position that would have been reported had the disposition been completed as of the dates presented.  The information is not representative of future results of operations or financial position.

 
 
 

Orthofix International N.V.
Unaudited Pro Forma Consolidated Balance Sheet (1)
(in thousands)
As of December 31, 2009

   
As Reported December 31, 2009
    
Business Disposition (2)
    
Pro Forma December 31, 2009
  
Assets
                  
Current assets:
                  
Cash and cash equivalents
   $ 13,328           $ 13,328  
Restricted cash
     11,630             11,630  
Trade accounts receivable, net
     129,777             129,777  
Inventory, net
     94,624       (1,711 )     92,913  
Deferred income taxes
     20,286               20,286  
Prepaid expenses and other current assets
     29,849               29,849  
Total current assets
     299,494       (1,711 )     297,783  
Investments
     345               345  
Property, plant and equipment, net
     38,694       (777 )     37,917  
Patents and other intangible assets, net
     47,628       (556 )     47,072  
Goodwill
     185,175       (7,031 )     178,144  
Deferred taxes and other long-term assets
     19,137       -       19,137  
Total assets
   $ 590,473     $ (10,075 )   $ 580,398  
                         
Liabilities and shareholders' equity
                        
Current liabilities:
                        
Bank borrowings
   $ 2,209             $ 2,209  
Current portion of long-term debt
     3,332               3,332  
Trade accounts payable
     23,302               23,302  
Other current liabilities
     59,210               59,210  
Total current liabilities
     88,053       -       88,053  
Long-term debt
     249,132       (18,611 )     230,521  
Deferred income taxes
     6,115               6,115  
Other long-term liabilities
     6,904               6,904  
Total liabilities
     350,204       (18,611 )     331,593  
                         
Total shareholders' equity
     240,269       8,536       248,805  
Total liabilities and shareholders' equity
   $ 590,473     $ (10,075 )   $ 580,398  


 
 
 

Orthofix International N.V.
Unaudited Pro Forma Statement of Operations (1)
(in thousands except share  and per share data)
For the Year Ended December 31, 2009

   
As Reported
    
Business Disposition (2)
    
Pro Forma Adjusted
  
                   
Net sales
   $ 545,635     $ (14,510 )   $ 531,125  
Cost of sales
     138,450       (3,628 )     134,822  
Gross profit
     407,185       (10,882 )     396,303  
Operating expenses
                        
Sales and marketing
     215,943       (1,566 )     214,377  
General and administrative
     88,866       (3,283 )     85,583  
Research and development
     31,460       (323 )     31,137  
Amortization of intangible assets
     7,041       (199 )     6,842  
      343,310       (5,371 )     337,939  
Operating income
     63,875       (5,511 )     58,364  
Other income/(expense), net
                        
Interest expense, net
     (24,627 )     1,335       (23,292 )
Other expense
     (1,079 )     52       (1,027 )
Unrealized non-cash gain/(loss) on interest rate swap
     1,852               1,852  
Other income/(expense), net
     (23,854 )     1,387       (22,467 )
Income  before income taxes
     40,021       (4,124 )     35,897  
Income tax expense
     (15,549 )     363       (15,186 )
Net income
   $ 24,472     $ (3,761 )   $ 20,711  
                         
                         
Per share of common stock, basic:
   $ 1.43     $ (0.22 )   $ 1.21  
                         
Per share of common stock, diluted:
   $ 1.42     $ (0.22 )   $ 1.20  
                         
Weighted average shares outstanding:
                        
                         
Basic
     17,119,474       17,119,474       17,119,474  
Diluted
     17,202,943       17,202,943       17,202,943  

 
 
 

Orthofix International N.V.
Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements
 
Note 1     Basis of Presentation

The unaudited pro forma financial information of Orthofix International N.V. (the “Company”) is presented to illustrate the effect of the Company’s March 8, 2010 sale of certain assets related to the Company’s Vascular business on its historical financial position and operating results.  The unaudited pro forma balance sheet as of December 31, 2009 is based on the historical statements of the Company as of December 31, 2009 after giving effect to the transaction as if it had occurred as of December 31, 2009.  The unaudited pro forma statement of operations for the fiscal year ended December 31, 2009 is based on the historical financial statement of the Company after giving effect to the transaction as if it had occurred on January 1, 2009.  The unaudited pro forma financial information should be read in conjunction with the Company’s historical consolidated financial statements and notes thereto contained in the Company’s 2009 Annual Report on Form 10-K, as filed on March 2, 2010.

The unaudited pro forma consolidated financial information is provided for illustrative purposes only and does not purport to represent what the actual results of operations or the financial position of the Company would have been had the transactions occurred on the respective dates assumed, nor is it necessarily indicative of the Company’s future operating results or financial position.  However, pro forma adjustments reflected in the accompanying unaudited pro forma consolidated financial information reflect estimates and assumptions that the Company’s management believes to be reasonable.

Note 2     Pro Forma Adjustments

The unaudited pro forma consolidated Balance Sheet at December 31, 2009 reflects the following adjustments
 
·
Reflects the sale of and transfer of inventory, equipment and certain identified intangible assets
 
·
Reflects the elimination of goodwill related to the Vascular business
 
·
Reflects the repayment of a portion of our Senior Secured Credit Facility using the net proceeds from the sale of certain assets related to the Vascular business
 
·
Reflects the recognition of the related gain associated with the sale of certain assets related to the Vascular business through an adjustment to pro forma retained earnings.

The unaudited pro forma condensed consolidated Statement of Operations for the year ended December 31, 2009 reflects the following adjustments
 
·
Reflects the elimination of revenues related to the Vascular business sold of approximately $18.7 million net of sales related to certain supply agreements entered into as part of the transaction of approximately $4.2 million.
 
·
Reflects the elimination of cost of sales and other operating costs associated with the sale of the Vascular business
 
·
Reflects the elimination of interest on approximately $19.0 million of debt paid off in conjunction with the sale of the business.  Interest is calculated based on an average effective interest rate in effect during the year of approximately 7.1%
 
·
Reflects the income tax savings related to the elimination of earnings related to the Vascular business at statutory rates ranging from 10% to 34% offset by the additional income tax expense provided by the elimination of interest expense at a statutory rate of 37%.

 
 
 

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.
 
 
Orthofix International N.V.
   
 
By:
  
/s/ Robert S. Vaters
     
Robert S. Vaters
Executive Vice President and
Chief Financial Officer
 
Date: March 12, 2010
 
 
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