-----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, CyUrjr6QjH5yT8OXAVrB+4pdBdASM50XYltB3fxiG00H46hh7EVFRl/jL5q7egGs 9Wv+H+CaZR6bR8gC6zhnFg== 0001104659-07-037049.txt : 20070508 0001104659-07-037049.hdr.sgml : 20070508 20070508170018 ACCESSION NUMBER: 0001104659-07-037049 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20070412 ITEM INFORMATION: Completion of Acquisition or Disposition of Assets ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070508 DATE AS OF CHANGE: 20070508 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CLST Holdings, Inc. CENTRAL INDEX KEY: 0000913590 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-ELECTRONIC PARTS & EQUIPMENT, NEC [5065] IRS NUMBER: 752479727 STATE OF INCORPORATION: DE FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-22972 FILM NUMBER: 07828920 BUSINESS ADDRESS: STREET 1: 601 S. ROYAL LANE STREET 2: LEGAL DEPT. CITY: COPPELL STATE: TX ZIP: 75019 BUSINESS PHONE: 972-462-2700 MAIL ADDRESS: STREET 1: 601 S. ROYAL LANE STREET 2: LEGAL DEPT. CITY: COPPELL STATE: TX ZIP: 75019 FORMER COMPANY: FORMER CONFORMED NAME: CELLSTAR CORP DATE OF NAME CHANGE: 19931018 8-K/A 1 a07-12279_18ka.htm AMENDMENT TO FORM 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K/A

Amendment No. 1

CURRENT REPORT

Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 12, 2007

CLST HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Commission File Number:  0-22972

Delaware

 

75-2479727

(State or other jurisdiction of
incorporation)

 

(I.R.S. Employer Identification No.)

 

601 S. Royal Lane, Coppell, Texas

 

75019

(Address of principal executive offices)

 

(Zip Code)

 

(972) 462-3500
(Registrant’s telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

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):

o                                    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o                                    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o                                    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o                                    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 



Item 2.01  Completion of Acquisition or Disposition of Assets.

On April 12, 2007, CLST Holdings, Inc., formerly known as CellStar Corporation (the “Company”), completed the sale (the “Mexico Sale”) of its operations in Mexico to Soluciones Inalámbricas, S.A. de C.V. (“Soluciones”) and Prestadora de Servicios en Administración y Recursos Humanos, S.A. de C.V. (“Prestadora”) for $20.0 million in cash. In addition, the Company is entitled to its share of the 2007 operating profits of the operations up to the date of closing. The amount of the 2007 operating performance will be determined and paid within 150 days from closing. Soluciones is a Mexican corporation and its affiliates are retail distributors of wireless devices in Mexico with distribution centers located throughout Mexico. In April 2005, the Company’s subsidiary in Mexico, Celular Express, invested in Comunicación Inalámbrica Inteligente, S.A. de C.V. (“CII”), a joint venture with Soluciones and its individual partners. Prior to the closing of the Mexico Sale, Celular Express owned 51% of CII and the remaining 49% was owned by the individual partners of Soluciones.  In connection with the Mexico Sale, the buyers purchased all of the outstanding shares of stock in the Company’s Mexican subsidiaries, together with the Company’s interest in CII.  Prestadora, a Mexican corporation and a wholly owned subsidiary of Soluciones, is an entity with no significant activity.

On April 5, 2007, the Company filed a Current Report on Form 8-K for the completion of the sale if its U.S. and Miami-based Latin American operations to wholly owned subsidiaries of Brightpoint, Inc. (the “U.S. Sale”).  As a result of the Mexico Sale and the U.S. Sale, the Company has sold substantially all of its operations.  Further, the Company’s stockholders approved a plan of dissolution on March 28, 2007, that will result in the liquidation of the Company’s assets.  The plan of dissolution is more fully described in the Company’s proxy statement filed with the Securities and Exchange Commission on February 20, 2007.  The Company has filed this Amendment No. 1 to the Current Report on Form 8-K/A solely to amend the previously filed pro forma statements of operations and balance sheet to show the pro forma effects of the Mexico Sale and the U.S. Sale on a combined basis.

Item 9.01  Financial Statements and Exhibits.

(b) Pro forma financial information.

Set forth below are pro forma statements of operations for the fiscal year ended November 30, 2006, and the quarter ended February 28, 2007, and a balance sheet as of February 28, 2007, reflecting the pro forma effects of the Mexico Sale and the U.S. Sale on a combined basis.

2



 

CellStar Corporation

Unaudited Pro Forma Consolidated Balance Sheet

February 28, 2007

 

(in thousands)

 

 

 

 

U.S., Miami

 

 

 

 

 

 

 

 

 

 

 

& Mexico

 

 

 

 

 

 

 

 

 

CellStar

 

Operations

 

Pro Forma

 

Total

 

Pro Forma

 

 

 

Historical

 

Historical (a)

 

Adjustments

 

Adjustments

 

Results

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

14,199

 

(6,299

)

59,939

(b)

53,640

 

67,839

 

Accounts receivable, net

 

79,086

 

(75,674

)

—

 

(75,674

)

3,412

 

Inventories, net

 

58,296

 

(55,161

)

—

 

(55,161

)

3,135

 

Deferred income taxes

 

917

 

(638

)

(279

)(c)

(917

)

—

 

Prepaid expenses and other current assets

 

5,070

 

(3,994

)

—

 

(3,994

)

1,076

 

Total current assets

 

157,568

 

(141,766

)

59,660

 

(82,106

)

75,462

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant & equipment

 

2,226

 

(1,864

)

—

 

(1,864

)

362

 

Goodwill, net

 

—

 

—

 

—

 

—

 

—

 

Deferred income tax assets

 

6,655

 

—

 

(1,884

)(c)

(1,884

)

4,771

 

Other assets

 

9,171

 

(5,654

)

—

 

(5,654

)

3,517

 

Total assets

 

$

175,620

 

(149,284

)

57,776

 

(91,508

)

84,112

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders equity

 

 

 

 

 

 

 

 

 

 

 

Notes payable

 

$

6,175

 

—

 

(6,175

)(d)

(6,175

)

—

 

Current portion - Term Loan

 

1,000

 

—

 

(1,000

)(d)

(1,000

)

—

 

Accounts payable

 

129,488

 

(110,471

)

—

 

(110,471

)

19,017

 

Deferred revenue

 

1,667

 

(1,667

)

—

 

(1,667

)

—

 

Accrued expenses

 

10,448

 

(6,005

)

—

 

(6,005

)

4,443

 

Income taxes payable

 

1,140

 

(3,617

)

—

 

(3,617

)

(2,477

)

Minority interest

 

1,012

 

(1,012

)

—

 

(1,012

)

—

 

Total current liabilities

 

150,930

 

(122,772

)

(7,175

)

(129,947

)

20,983

 

 

 

 

 

 

 

 

 

 

 

 

 

Term loan

 

10,800

 

—

 

(10,800

)(d)

(10,800

)

—

 

Total liabilities

 

161,730

 

(122,772

)

(17,975

)

(140,747

)

20,983

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

212

 

(6

)

6

(e)

—

 

212

 

Additional paid in capital

 

124,548

 

(10,297

)

10,297

(e)

—

 

124,548

 

Treasury stock

 

(94

)

—

 

—

 

—

 

(94

)

Cumulative translation adjustment

 

(8,719

)

9,332

 

—

 

9,332

 

613

 

Retained earnings

 

(102,057

)

(25,541

)

65,448

(f)

39,907

 

(62,150

)

 

 

13,890

 

(26,512

)

75,751

 

49,239

 

63,129

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

175,620

 

(149,284

)

57,776

 

(91,508

)

84,112

 

Notes:

(a)             Reflects the elimination of historical financial information of U.S., Miami and Mexico operations in the consolidated financials.

(b)            Reflects net proceeds from the transaction of $80.1 million offset by the pay down of debt of $18.0 million and payment of taxes of $2.2 million.

(c)             Reflects reduction in deferred tax asset attributable to expected future income from Mexico that will no longer be realized.

(d)            Reflects the required pay down of debt with the proceeds from the transactions.

(e)             Reflects elimination of consolidated entity’s investment in the Mexico operations.

(f)               Reflects the net gain on the transaction of $39.9 million and the add back of the historical retained deficit of $25.5 million.

3



 

CellStar Corporation
Unaudited Pro Forma Consolidated Statement of Operations
For the year ended November 30, 2006

 

(in thousands, except share data)

 

 

CellStar
Historical

 

U.S., Miami
& Mexico
Operations
Historical (a)

 

Pro Forma
Adjustments

 

Total
Adjustments

 

Pro Forma
Results

 

Revenues

 

$

943,140

 

(890,302

)

—

 

(890,302

)

52,838

 

Cost of sales

 

877,754

 

(827,667

)

—

 

(827,667

)

50,087

 

Gross profit

 

65,386

 

(62,635

)

—

 

(62,635

)

2,751

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

 

50,485

 

(39,492

)

—

 

(39,492

)

10,993

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

14,901

 

(23,143

)

—

 

(23,143

)

(8,242

)

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(3,916

)

21

 

3,895

(b)

3,916

 

—

 

Loss on sale of accounts receivable

 

(2,578

)

1,823

 

—

 

1,823

 

(755

)

Gain on retirement of 12% Senior subordinated notes

 

566

 

—

 

—

 

—

 

566

 

Minority interest

 

(2,390

)

2,390

 

—

 

2,390

 

—

 

Gain on sale of assets

 

240

 

—

 

—

 

—

 

240

 

Other, net

 

214

 

(197

)

—

 

(197

)

17

 

Total other income (expense)

 

(7,864

)

4,037

 

3,895

 

7,932

 

68

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

7,037

 

(19,106

)

3,895

 

(15,211

)

(8,174

)

 

 

 

 

 

 

 

 

 

 

 

 

Provision (benefit) for income taxes

 

2,786

 

(4,832

)

2,178

(c)

(2,654

)

132

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

4,251

 

(14,274

)

1,717

 

(12,557

)

(8,306

)

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per share from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.21

 

 

 

 

 

 

 

(0.41

)

Diluted

 

$

0.20

 

 

 

 

 

 

 

(0.41

)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

20,415

 

 

 

 

 

 

 

20,415

 

Diluted

 

21,110

 

 

 

 

 

 

 

20,415

 

(a)             Reflects the elimination of historical financial information of U.S., Miami and Mexico operations in the consolidated financials.

(b)            Reflects the elimination of interest expense associated with the Company’s debt which was required to be repaid with proceeds from the sale transactions.

(c)             Reflects the elimination of tax effects related to intercompany transactions and taxes associated with the U.S. and Miami operations, as taxes for these operations were historically offset with net operating losses.  The taxes in Mexico relate to the CII joint venture and various withholding taxes associated with the Mexico operations.

4



CellStar Corporation
Unaudited Pro Forma Consolidated Statement of Operations
For the three months ended February 28, 2007

(in thousands, except share data)

 

 

 

 

U.S., Miami

 

 

 

 

 

 

 

 

 

 

 

& Mexico

 

 

 

 

 

 

 

 

 

CellStar

 

Operations

 

Pro Forma

 

Total

 

Pro Forma

 

 

 

Historical

 

Historical (a)

 

Adjustments

 

Adjustments

 

Results

 

Revenues

 

$

196,071

 

(177,228

)

—

 

(177,228

)

18,843

 

Cost of sales

 

181,636

 

(162,979

)

—

 

(162,979

)

18,657

 

Gross profit

 

14,435

 

(14,249

)

—

 

(14,249

)

186

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

Selling, general & administrative

 

12,470

 

(10,317

)

—

 

(10,317

)

2,153

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

1,965

 

(3,932

)

—

 

(3,932

)

(1,967

)

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(961

)

5

 

956

(b)

961

 

—

 

Loss on sale of accounts receivable

 

(527

)

87

 

—

 

87

 

(440

)

Loss on settlement of note receivable related to sale of Asia-Pacific

 

(494

)

—

 

—

 

—

 

(494

)

Minority interest

 

(1,719

)

1,719

 

—

 

1,719

 

—

 

Other, net

 

128

 

(101

)

—

 

(101

)

27

 

Total other income (expense)

 

(3,573

)

1,710

 

956

 

2,666

 

(907

)

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

(1,608

)

(2,222

)

956

 

(1,266

)

(2,874

)

 

 

 

 

 

 

 

 

 

 

 

 

Provision (benefit) for income taxes

 

1,358

 

(1,288

)

(37

)(c)

(1,325

)

33

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(2,966

)

(934

)

993

 

59

 

(2,907

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.14

)

 

 

 

 

 

 

$

(0.14

)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares:

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

20,482

 

 

 

 

 

 

 

20,482

 

(a)             Reflects the elimination of historical financial information of U.S., Miami and Mexico operations in the consolidated financials.

(b)            Reflects the elimination of interest expense associated with Company’s debt which was required to be repaid with proceeds from the sale transactions.

(c)             Reflects the elimination of tax effects related to intercompany transactions and taxes associated with the U.S. and Miami operations, as taxes for these operations were historically offset with net operating losses.  The taxes in Mexico relate to the CII joint venture and various withholding taxes associated with the Mexico operations.

 

5



Signature(s)

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.

CLST HOLDINGS, INC.

By:

/s/ Elaine Flud Rodriguez

 

 

Date: May 8, 2007

Elaine Flud Rodriguez

 

Senior Vice President and General Counsel

 

6


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