-----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, CnHZcWwIVUMDRtAS2fXh/p3pXnj7DGLt5LagU5dT2hqIf5nfeI7GAU9tAFEWcKxr NciWHL8OC48msM1j+rrbNQ== 0000950134-97-009529.txt : 19971224 0000950134-97-009529.hdr.sgml : 19971224 ACCESSION NUMBER: 0000950134-97-009529 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971214 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19971223 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: GULF SOUTH MEDICAL SUPPLY INC CENTRAL INDEX KEY: 0000889885 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-MEDICAL, DENTAL & HOSPITAL EQUIPMENT & SUPPLIES [5047] IRS NUMBER: 640831411 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-23540 FILM NUMBER: 97743564 BUSINESS ADDRESS: STREET 1: ONE WOODGREEN PLACE CITY: MADISON STATE: MS ZIP: 39110 BUSINESS PHONE: 6018565900 MAIL ADDRESS: STREET 1: 426 CHRISTINE DR CITY: RIDGELAND STATE: MS ZIP: 39157 8-K 1 FORM 8-K FOR PERIOD ENDING DECEMBER 14, 1997 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): December 14, 1997 Gulf South Medical Supply, Inc. --------------------------------------------- (Exact name of Registrant as specified in its charter) Delaware 0-21512 06-1251310 - ----------------------------- --------------- --------------------- (State or other jurisdiction (Commission (IRS Employer of Incorporation) File number) Identification No.) One Woodgreen Place, Madison, MS 39110 --------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (601) 856-5900 2 Item 5. Other Events On December 14, 1997, Gulf South Medical Supply, Inc. ("GSMS") entered into an Agreement and Plan of Merger dated as of December 14, 1997 by and among Physician Sales & Service, Inc. ("PSS"), PSS Merger Corp. ("Merger Corp.") and GSMS, providing for the merger of Merger Corp. with and into GSMS with GSMS surviving as a wholly owned subsidiary of PSS. This Form 8-K is being filed to disclose and make publicly available certain pro forma financial information giving effect to the merger. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits (a) Financial Statements of Business Acquired. None. (b) Pro Forma Financial Information. None. (c) Exhibits. Exhibit No. Description 99.1 Unaudited Pro Forma Condensed Combined Financial Statements. 3 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto authorized. GULF SOUTH MEDICAL SUPPLY, INC. Date: December 23, 1997 By: /s/ Stanton Keith Pritchard ---------------------------------- Stanton Keith Pritchard Senior Vice President, Business Development and Administration, General Counsel and Secretary 4 EXHIBIT INDEX
Page No. in Sequentially Numbered Exhibit No. Description Copy - ----------- ----------- ---- 99.1 Unaudited Pro Forma Condensed Combined Financial Statements. 1
EX-99.1 2 UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS 1 EXHIBIT 99.1 UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS On December 14, 1997, Physician Sales & Service, Inc. ("PSS") signed a definitive agreement to acquire Gulf South Medical Supply, Inc. ("GSMS") in a merger (the "Merger") to be accounted for as a pooling of interests. The unaudited pro forma condensed combined balance sheet as of September 30, 1997 has been prepared as if the Merger took place on that date. The unaudited pro forma condensed combined income statements for the three years ended March 28, 1997 and for the six months ended September 30, 1997 and 1996 have been prepared as if the Merger had occurred on April 1, 1994. The unaudited pro forma condensed combined financial statements are based on the separate historical condensed financial statements of PSS and GSMS giving effect to the transaction under the assumptions and adjustments outlined in the accompanying Notes to Unaudited Pro Forma Condensed Combined Financial Statements. The unaudited pro forma condensed combined financial statements are provided for comparative purposes only and are not necessarily indicative of the actual results that would have been obtained had the Merger occurred on the dates indicated or that may be achieved in the future. The unaudited pro forma condensed combined financial statements should be read in conjunction with the separate audited consolidated financial statements of PSS and GSMS filed on Form 10-K for the fiscal years ended March 28, 1997 and December 31, 1996, respectively, the separate quarterly unaudited consolidated financial statements of PSS and GSMS filed on Form 10-Q for the quarters ended September 30, 1997, and PSS's Current Report on Form 8-K filed on December 23, 1997 which reflects the pooling with S&W X-Ray, Inc. 1 2 PRO FORMA CONDENSED COMBINED BALANCE SHEET SEPTEMBER 30, 1997 (UNAUDITED)
HISTORICAL PRO FORMA ---------------------- ---------------------- PSS GSMS ADJUSTMENTS COMBINED --------- -------- ----------- -------- (IN THOUSANDS) ASSETS Current assets: Cash and cash equivalents............. $ 22,273 $ 49,154 $ 71,427 Marketable securities................. 842 -- 842 Accounts receivable, net.............. 150,995 54,055 205,050 Inventories........................... 79,129 31,734 110,863 Prepaid expenses and other............ 32,437 2,982 35,419 -------- -------- -------- Total current assets................. 285,676 137,925 423,601 Property and equipment, net............ 22,599 4,525 27,124 Intangibles, net....................... 47,692 34,575 82,267 Other assets........................... 6,958 3,132 10,090 -------- -------- -------- Total assets.......................... $362,925 $180,157 $543,082 ======== ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable...................... $ 83,530 $ 19,289 $102,819 Accrued expenses...................... 23,937 3,856 27,793 Other................................. 15,557 -- 15,557 -------- -------- -------- Total current liabilities.............. 123,024 23,145 146,169 Long-term debt and capital lease obligations, net of current maturities............................ 1,749 -- 1,749 Other liabilities...................... 4,151 -- 4,151 -------- -------- -------- Total liabilities..................... 128,924 23,145 152,069 -------- -------- -------- Shareholders' equity: Common stock.......................... 401 163 $ 122 (1) 686 Additional paid-in capital............ 221,075 115,727 (122)(1) 336,680 Retained earnings..................... 12,245 41,122 53,367 Cumulative foreign currency translation adjustment............... 280 -- 280 -------- --------- ---- -------- Total shareholders' equity............ 234,001 157,012 (0) 391,013 -------- --------- ---- -------- Total liabilities and shareholders' equity.............................. $362,925 $180,157 $ 0 $543,082 ======== ======== ===== ========
See accompanying Notes to Unaudited Pro Forma Condensed Combined Financial Statements. 2 3 PRO FORMA CONDENSED COMBINED INCOME STATEMENT FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 (UNAUDITED)
HISTORICAL PRO FORMA ------------------ --------------------- PSS GSMS ADJUSTMENTS COMBINED -------- -------- ----------- -------- (IN THOUSANDS, EXCEPT PER SHARE DATA) Net sales.............................. $476,638 $140,430 $617,068 Cost of goods sold..................... 347,354 108,234 455,588 -------- -------- -------- Gross profit....................... 129,284 32,196 161,480 Selling, general and administrative expenses.............................. 112,194 18,795 130,989 Merger costs and expenses.............. 1,838 -- 1,838 Non-recurring ESOP cost of acquired company............................... 2,457 -- 2,457 -------- -------- -------- Income from operations............. 12,795 13,401 26,196 -------- -------- -------- Other income (expense): Net interest (expense) income......... (99) 973 874 Other income.......................... 2,021 -- 2,021 -------- -------- -------- 1,922 973 2,895 -------- -------- -------- Income before income taxes......... 14,717 14,374 29,091 Provision for income taxes............. 6,169 5,520 11,689 -------- -------- -------- Net income............................. $ 8,548 $ 8,854 $ 17,402 ======== ======== ======== Net income per common and common equivalent share...................... $ 0.21 $ 0.53 $ 0.25 ======== ======== ======== Weighted average shares................ 39,832 16,595 12,446(1) 68,873 ======== ======== ====== ========
See accompanying Notes to Unaudited Pro Forma Condensed Combined Financial Statements. 3 4 PRO FORMA CONDENSED COMBINED INCOME STATEMENT FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED)
HISTORICAL PRO FORMA ---------------- --------------------- PSS GSMS ADJUSTMENTS COMBINED -------- ------- ----------- -------- (IN THOUSANDS, EXCEPT PER SHARE DATA) Net sales................................ $359,573 $90,745 $450,318 Cost of goods sold....................... 262,935 69,570 332,505 -------- ------- -------- Gross profit......................... 96,638 21,175 117,813 Selling, general and administrative expenses................................ 86,104 11,831 97,935 Merger costs and expenses................ 6,934 -- 6,934 Non-recurring ESOP cost of acquired company................................. 700 -- 700 -------- ------- -------- Income from operations............... 2,900 9,344 12,244 -------- ------- -------- Other income: Net interest income..................... 1,051 795 1,846 Other income............................ 674 -- 674 -------- ------- -------- 1,725 795 2,520 -------- ------- -------- Income before income taxes........... 4,625 10,139 14,764 Provision for income taxes............... 1,862 3,796 5,658 -------- ------- -------- Net income............................... $ 2,763 $ 6,343 $ 9,106 ======== ======= ======== Net income per common and common equivalent share........................ $ 0.07 $ 0.41 $ 0.14 ======== ======= ======== Weighted average shares.................. 38,006 15,604 11,703(1) 65,313 ======== ======= ====== ========
See accompanying Notes to Unaudited Pro Forma Condensed Combined Financial Statements. 4 5 PRO FORMA CONDENSED COMBINED INCOME STATEMENT FOR THE YEAR ENDED MARCH 28, 1997 (UNAUDITED)
HISTORICAL PRO FORMA ------------------ --------------------- PSS GSMS ADJUSTMENTS COMBINED -------- -------- ----------- -------- (IN THOUSANDS, EXCEPT PER SHARE DATA) Net sales............................ $763,054 $202,084 $965,138 Cost of goods sold................... 558,164 155,616 713,780 -------- -------- -------- Gross profit..................... 204,890 46,468 251,358 Selling, general and administrative expenses............................ 187,441 27,359 214,800 Merger costs and expenses............ 12,128 1,866 13,994 Non-recurring ESOP cost of acquired company............................. 1,446 -- 1,446 -------- -------- -------- Income from operations........... 3,875 17,243 21,118 -------- -------- -------- Other income (expense): Interest expense..................... (1,188) (189) (1,377) Interest and investment income....... 2,419 2,248 4,667 Other income......................... 1,537 -- 1,537 -------- -------- -------- 2,768 2,059 4,827 -------- -------- -------- Income before income taxes....... 6,643 19,302 25,945 Provision for income taxes........... 2,216 7,119 9,335 -------- -------- -------- Net income........................... $ 4,427 $ 12,183 $ 16,610 ======== ======== ======== Net income per common and common equivalent share.................... $ 0.12 $ 0.76 $ 0.25 ======== ======== ======== Weighted average shares.............. 38,015 16,042 12,032(1) 66,089 ======== ======== ====== ========
See accompanying Notes to Unaudited Pro Forma Condensed Combined Financial Statements. 5 6 PRO FORMA CONDENSED COMBINED INCOME STATEMENT FOR THE YEAR ENDED MARCH 29, 1996 (UNAUDITED)
HISTORICAL PRO FORMA ------------------ --------------------- PSS GSMS ADJUSTMENTS COMBINED -------- -------- ----------- -------- (IN THOUSANDS, EXCEPT PER SHARE DATA) Net sales............................ $589,120 $140,807 $729,927 Cost of goods sold................... 426,530 106,477 533,007 -------- -------- -------- Gross profit....................... 162,590 34,330 196,920 Selling, general and administrative expenses............................ 141,160 19,371 160,531 Merger costs and expenses............ 15,732 512 16,244 Non-recurring ESOP cost of acquired company............................. 850 -- 850 -------- -------- -------- Income from operations............. 4,848 14,447 19,295 -------- -------- -------- Other income (expense): Interest expense..................... (3,568) (220) (3,788) Interest and investment income....... 1,188 104 1,292 Other income......................... 1,586 -- 1,586 -------- -------- -------- (794) (116) (910) -------- -------- -------- Income before income taxes......... 4,054 14,331 18,385 Provision for income taxes........... 1,925 5,750 7,675 -------- -------- -------- Net income........................... $ 2,129 $ 8,581 $ 10,710 ======== ======== ======== Net income per common and common equivalent share.................... $ 0.06 $ 0.61 $ 0.19 ======== ======== ======== Weighted average shares.............. 32,870 14,019 10,514(1) 57,403 ======== ======== ====== ========
See accompanying Notes to Unaudited Pro Forma Condensed Combined Financial Statements. 6 7 PRO FORMA CONDENSED COMBINED INCOME STATEMENT FOR THE YEAR ENDED MARCH 30, 1995 (UNAUDITED)
HISTORICAL PRO FORMA ------------------ --------------------- PSS GSMS ADJUSTMENTS COMBINED -------- -------- ----------- -------- (IN THOUSANDS, EXCEPT PER SHARE DATA) Net sales........................... $471,985 $101,107 $573,092 Cost of goods sold.................. 339,670 75,070 414,740 -------- -------- -------- Gross profit....................... 132,315 26,037 158,352 Selling, general and administrative expenses........................... 121,407 14,902 136,309 Restructuring charges............... 4,389 -- 4,389 Non-recurring ESOP cost of acquired company............................ 832 -- 832 -------- -------- -------- Income from operations............. 5,687 11,135 16,822 -------- -------- -------- Other income (expense): Interest expense.................... (4,506) (116) (4,622) Interest and investment income...... 5 245 250 Other income........................ 1,912 -- 1,912 -------- -------- -------- (2,589) 129 (2,460) -------- -------- -------- Income before income taxes........ 3,098 11,264 14,362 Provision for income taxes.......... 3,038 4,510 7,548 -------- -------- -------- Net income.......................... $ 60 $ 6,754 $ 6,814 ======== ======== ======== Net income per common and common equivalent share................... $ 0.00 $ 0.49 $ 0.14 ======== ======== ======== Weighted average shares............. 25,101 13,851 10,388(1) 49,340 ======== ======== ======= ========
See accompanying Notes to Unaudited Pro Forma Condensed Combined Financial Statements. 7 8 NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS The unaudited pro forma condensed combined financial statements have been prepared by combining the historical balances of PSS and the historical balances of GSMS as recast to a conforming March year end. The following notes describe the pro forma adjustments and other items relevant to such statements. MERGER COSTS AND EXPENSES AND ANTICIPATED COST SAVINGS Certain expenses are expected to be incurred in connection with the consolidation and restructuring of PSS and GSMS. Such activities will include consolidation costs from the closing of duplicate facilites, realigning regional and corporate functions, consolidating information systems and reducing personnel. The expenses associated with these activities cannot be currently estimated with a reasonable degree of accuracy, but preliminary estimates indicate that these expenses may range between $35 million and $45 million. Income tax benefits at the statutory rate resulting from these charges range between $14 million and $18 million. The estimated costs associated with the restructuring activities will be expensed in the period in which the companies complete the restructuring plan. Efficiencies and net cost savings are expected to result from the consolidation and restructuring. The unaudited pro forma condensed combined financial statements do not reflect such savings. PRO FORMA ADJUSTMENTS (1) SHAREHOLDERS' EQUITY AND EARNINGS PER SHARE Shareholders' equity and weighted average common share amounts represent the aggregate weighted average shares of PSS after the pooling, adjusted to reflect the exchange ratio of 1.75 shares of PSS common stock for each share of GSMS common stock. 8 -----END PRIVACY-ENHANCED MESSAGE-----