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 10, 1995
THE WESTERN COMPANY OF NORTH AMERICA
(Exact name of registrant as specified in its charter)
DELAWARE 1-7452 75-0763484
(State or other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification
incorporation) Number)
515 POST OAK BOULEVARD
HOUSTON, TEXAS 77027
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (713) 629-2600
Item 2. ACQUISITION AND DISPOSITION OF ASSETS
In November 1994, the registrant, The Western Company of North America
(the "Company"), formalized a plan to dispose of the remaining assets
of its offshore drilling segment. These assets consisted primarily of
two semi-submersible offshore drilling rigs and related equipment and
inventory. The Company completed the sale of the ALASKAN STAR in
December 1994 for $11.8 million of which $6.3 million is a bankers'
acceptance drawn on a U.S. bank due within one year. This rig sale
resulted in a gain of $0.3 million. On February 10, 1995, the Company
completed the sale of the PACESETTER IV for $37.2 million which
resulted in a loss of $6.7 million.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements of Businesses Acquired
Not applicable
(b) Pro Forma Financial Information
The following financial statements provide unaudited pro forma
consolidated balance sheet data as of December 31, 1994 and
unaudited pro forma condensed consolidated statements of
operations for the years ended December 31, 1994, 1993 and
1992. This pro forma financial data reflects the offshore
drilling segment as discontinued operations and accordingly
presents pro forma financial information for the Company
without the offshore drilling segment.
Such pro forma financial data is not necessarily indicative of
the future financial condition or results of operations of the
Company. For further information, refer to the consolidated
financial statements and notes thereto attached as Exhibit 21.4
in the Company's Report on Form 8-K dated February 10, 1995.
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THE WESTERN COMPANY OF NORTH AMERICA
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
DECEMBER 31, 1994
(In thousands)
ASSETS
Pro Forma
as
Historical(A) Adjustments(B) Adjusted
------------- -------------- ---------
CURRENT ASSETS:
Cash and cash equivalents ....... $ 12,650 $ 35,060 $ 47,710
Receivables, net ................ 74,080 -- 74,080
Inventories ..................... 20,065 -- 20,065
Assets held for sale,
net-discontinued operations .... 35,060 (35,060) --
Other ........................... 5,154 -- 5,154
--------- --------- ---------
Total current assets .......... 147,009 -- 147,009
--------- --------- ---------
PROPERTY AND EQUIPMENT, AT COST:
Pressure pumping equipment ...... 199,720 -- 199,720
Buildings and other ............. 56,395 -- 56,395
Construction in progress ........ 6,676 -- 6,676
--------- --------- ---------
262,791 -- 262,791
Less: Accumulated depreciation .. (76,696) -- (76,696)
--------- --------- ---------
186,095 -- 186,095
Other assets ...................... 20,597 -- 20,597
--------- --------- ---------
$ 353,701 $ -- $ 353,701
========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable ................ $ 29,996 $ -- $ 29,996
Accrued liabilities ............. 38,389 -- 38,389
--------- --------- ---------
Total current liabilities ..... 68,385 -- 68,385
--------- --------- ---------
LONG-TERM DEBT .................... 90,909 -- 90,909
--------- --------- ---------
OTHER LONG-TERM LIABILITIES ....... 15,258 -- 15,258
--------- --------- ---------
STOCKHOLDERS' EQUITY:
Common stock .................... 1,828 -- 1,828
Additional paid-in capital ...... 193,991 -- 193,991
Cumulative translation adjustment (317) -- (317)
Accumulated deficit ............. (16,353) -- (16,353)
--------- --------- ---------
179,149 -- 179,149
--------- --------- ---------
$ 353,701 $ -- $ 353,701
========= ========= =========
(A) The offshore drilling segment is reflected as discontinued operations in
the historical balance sheet at December 31, 1994
(B) Net cash proceeds from sale of the PACESETTER IV semi-submersible offshore
drilling rig and related equipment and inventory
(C) See Exhibit 21.4 for audited financial statements of The Western Company
of North America
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THE WESTERN COMPANY OF NORTH AMERICA
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 1994, 1993 AND 1992
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
1994 1993 1992
--------- --------- ----------
REVENUES:
Pressure pumping ..................... $ 307,511 $ 294,073 $ 225,353
Production chemicals ................. 34,990 -- --
--------- --------- ----------
342,501 294,073 225,353
--------- --------- ----------
OPERATING COSTS AND EXPENSES:
Pressure pumping ..................... 270,737 250,471 200,532
Production chemicals ................. 31,027 -- --
Depreciation and amortization ........ 18,814 14,589 14,887
General and administrative ........... 8,846 9,022 8,076
--------- --------- ----------
329,424 274,082 223,495
--------- --------- ----------
Operating income ................... 13,077 19,991 1,858
--------- --------- ----------
OTHER INCOME (EXPENSE):
Interest expense, net of interest
capitalized ......................... (10,032) (13,505) (10,407)
Interest income ...................... 1,236 4,653 1,059
Merger related expenses .............. (21,118) -- --
Writedown of pressure pumping
assets and other .................... -- (7,132) --
--------- --------- ----------
Total other income (expense) ....... (29,914) (15,984) (9,348)
--------- --------- ----------
INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE PROVISION FOR
INCOME TAXES AND EXTRAORDINARY
LOSSES ................................ (16,837) 4,007 (7,490)
Provision for income taxes ........... 495 627 353
--------- --------- ----------
INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE EXTRAORDINARY
LOSSES ................................ $ (17,332) $ 3,380 $ (7,843)
========= ========= ==========
EARNINGS (LOSS) PER SHARE:
Income (loss) from continuing
operations before extraordinary
losses .............................. $ (0.95) $ 0.18 $ (0.44)
========= ========= ==========
SHARES OUTSTANDING ..................... 18,236 18,591 17,757
========= ========= ==========
(A) The above historical statements of operations have been prepared to
account for the discontinuance of the offshore drilling segment and
accordingly present pro forma financial information for the Company
without the offshore drilling segment
(B) See Exhibit 21.4 for audited financial statements of The Western Company
of North America
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Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits Required by Item 601 of Regulation S-K
Exhibit Number Description
-------------- -----------
21.1 Memorandum of Agreement dated December 21, 1994
21.2 Amendment No. 1 to the Memorandum of Agreement
dated December 27, 1994
21.3 Amendment No. 2 and Release to the Memorandum
of Agreement dated February 10, 1994
21.4 The Western Company of North America Audited
Financial Statements at December 31, 1994 and 1993
and for each of the three years in the period ended
December 31, 1994
27 Financial Data Schedule
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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.
THE WESTERN COMPANY OF NORTH AMERICA
(Registrant)
By: /s/ Steven P. Beatty
(Steven P. Beatty)
(Vice President and
Chief Accounting Officer
Date: February 24, 1995
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INDEX TO EXHIBITS
Number Exhibit
------- ------------
21.1 Memorandum of Agreement dated
December 21, 1994
21.2 Amendment No. 1 to the Memorandum of
Agreement dated December 27, 1994
21.3 Amendment No. 2 and Release to
Memorandum of Agreement dated
February 10, 1994
21.4 The Western Company of North America
Audited Financial Statements at
December 31, 1994 and 1993 and for
each of the three years in the period
ended December 31, 1994
27 Financial Data Schedule
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