SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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) October 18, 1995
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Intermet Corporation
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(Exact Name of Registrant as Specified in Its Charter)
Georgia
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(State or Other Jurisdiction of Incorporation)
0-13787 58-1563873
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(Commission File Number) (I.R.S. Employer Identification No.)
5445 Corporate Drive, Suite 200, Troy, Michigan 48098
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(Address of Principal Executive Offices) (Zip Code)
(810) 952-1503
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(Registrant's Telephone Number, Including Area Code)
1450 West Long Lake Road, Suite 150, Troy Michigan 48098
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(Former Name or Former Address, if Changed Since Last Report)
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
On October 18, 1995, the Registrant's subsidiary, InterMotive
Technologies, Inc. ("InterMotive"), sold substantially all of its
assets to Ricardo-North America Detroit, Inc. and Ricardo Group,
plc (collectively, "Ricardo") pursuant to an Asset Purchase Agreement,
dated October 12, 1995 by and among the Registrant, InterMotive and
Ricardo. In exchange therefor, the Registrant received $4,430,000 in
cash.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(b) The following unaudited pro forma financial statements
of the Registrant are attached hereto beginning on page
P-1:
Consolidated Balance Sheet at July 2, 1995
Consolidated Statement of Operations for the year ended
December 31, 1994 and six months ended July 2, 1995
(c) Exhibits
Asset Purchase Agreement by and among Ricardo
North America Detroit, Inc., Ricardo Group, plc.,
InterMotive Technologies, Inc. and Intermet
Corporation, dated October 12, 1995.
Intermet Corporation
Pro Forma Consolidated Balance Sheet
July 2, 1995
(Unaudited)
(A) (B)
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Pro Forma Pro Forma
Historical Adjustments Pro Forma Adjustments Pro Forma
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(In Thousands of Dollars)
ASSETS
Current assets:
Cash and cash equivalents $ 7,366 $ 5,320 (a) $ 12,686 $ 4,430 (d) $ 17,116
Accounts receivable:
Trade, less allowance for doubtful
accounts of $807 75,446 (2,492)(a) 72,954 (1,157)(d) 71,797
Other 7,022 -- 7,022 -- 7,022
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82,468 (2,492) 79,976 (1,157) 78,819
Inventories 33,203 (2,034)(a) 31,169 (122)(d) 31,047
Other current assets 4,236 (465)(a) 3,771 (41)(d) 3,730
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Total current assets 127,273 329 127,602 3,110 130,712
Property, plant and equipment, at cost 365,205 (12,394)(a) 352,811 (5,461)(d) 347,350
Less:Foreign industrial development
grants, net of amortization 5,683 -- 5,683 -- 5,683
Accumulated depreciation and
amortization 196,640 (5,843)(a) 190,797 (1,042)(d) 189,755
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Net property, plant and equipment 162,882 (6,551) 156,331 (4,419) 151,912
Other noncurrent assets 14,955 2,500 (a) 17,455 -- 17,455
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$305,110 $(3,722) $301,388 $(1,309) $300,079
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(A) Sale of PBM Industries, Inc.
(B) Sale of InterMotive Technologies, Inc.
SEE ACCOMPANYING NOTES.
P-1
Intermet Corporation
Pro Forma Consolidated Balance Sheet
July 2, 1995
(Unaudited)
(A) (B)
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Pro Forma Pro Forma
Historical Adjustments Pro Forma Adjustments Pro Forma
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(In Thousands of Dollars)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 32,850 $ (2,315) (a) $ 30,535 $ -- $ 30,535
Income taxes 14,206 -- 14,206 -- 14,206
Accrued liabilities 39,586 (105) (a) 39,481 -- 39,481
Notes payable 899 -- 899 -- 899
Long-term debt due within one year 9,395 -- 9,395 -- 9,395
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Total current liabilities 96,936 (2,420) 94,516 -- 94,516
Noncurrent liabilities:
Long-term debt due after one year 62,882 -- 62,882 -- 62,882
Retirement benefits 44,597 -- 44,597 -- 44,597
Other noncurrent liabilities 11,502 -- 11,502 -- 11,502
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Total noncurrent liabilities 118,981 -- 118,981 -- 118,981
Minority interests 2,837 -- 2,837 -- 2,837
Shareholders' equity:
Common stock 2,469 -- 2,469 -- 2,469
Capital in excess of par value 52,449 -- 52,449 -- 52,449
Retained earnings 27,787 (1,302) (a) 26,485 (1,309) (d) 25,176
Accumulated translation
adjustments 4,954 -- 4,954 -- 4,954
Minimum pension liability
adjustment (1,164) -- (1,164) -- (1,164)
Unearned restricted stock (139) -- (139) -- (139)
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Total shareholders equity 86,356 (1,302) 85,054 (1,309) (d) 83,745
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$305,110 $(3,722) $301,388 $(1,309) $300,079
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(A) Sale of PBM Industries, Inc.
(B) Sale of InterMotive Technologies, Inc.
SEE ACCOMPANYING NOTES.
P-2
Intermet Corporation
Pro Forma Consolidated Statements of Operations
Year ended December 31, 1994
(Unaudited)
Historical Pro Forma
Year ended (A) (B) Year ended
December 31, Pro Forma Pro Forma December 31,
1994 Adjustments Adjustments 1994
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(In Thousands of Dollars, except per share data)
Net sales $501,269 $(35,341) (b) $(4,910) (e) $461,018
Cost of sales 458,823 (37,625) (b) (5,228) (e) 415,970
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Gross profit 42,446 2,284 318 45,048
Operating expenses 40,718 (1,835) (b) (815) (e) 38,068
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Operating profit 1,728 4,119 1,133 6,980
Other income (expense)
net (6,817) (1,431) (b) (445) (e) (4,941)
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Income (loss) before
income taxes (5,089) 5,550 1,578 2,039
Provision for income
taxes 5,896 60 (b) 456 6,412
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Net earnings (loss) $(10,985) $ 5,490 $ 1,122 $(4,373)
==============================================================
Loss per share $(.45) $(.18)
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(A) Sale of PBM Industries, Inc.
(B) Sale of InterMotive Technologies, Inc.
SEE ACCOMPANYING NOTES
P-3
Intermet Corporation
Pro Forma Consolidated Statements of Operations
Six months ended July 2, 1995
(Unaudited)
Historical Pro Forma
Six months (A) (B) Six months
ended July 2, Pro Forma Pro Forma ended
1995 Adjustments Adjustments July 2, 1995
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(In Thousands of Dollars, except per share data)
Net sales $302,313 $(20,371) (c) $(2,185) (f) $279,757
Cost of sales 253,203 (18,724) (c) (3,614) (f) 230,865
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Gross profit 49,110 (1,647) 1,429 48,892
Operating expenses 15,723 (803) (c) (488) (f) 14,432
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Operating profit 33,387 (844) 1,917 34,460
Other income (expense)
net (4,046) (340) (c) (299) (f) (3,407)
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Income (loss) before
income taxes 29,341 (504) 2,216 31,053
Provision for income
taxes 13,284 (269) (c) 224 (f) 13,239
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Net earnings (loss) $ 16,057 $(235) $ 1,992 $17,814
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Earnings per share $.65 $.72
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(A) Sale of PBM Industries, Inc.
(B) Sale of InterMotive Technologies, Inc.
SEE ACCOMPANYING NOTES
P-4
Intermet Corporation
Notes to Pro Forma Consolidated Financial Statements
(Unaudited)
1. BASIS OF PRESENTATION
The unaudited pro forma consolidated balance sheet at July 2, 1995 shows
the effect of selling substantially all assets, including inventory,
machinery and equipment, most receivables and certain intangible rights
and properties of the Registrant's machining subsidiary, PBM Industries,
Inc. and technical services subsidiary, InterMotive Technologies, Inc.
(the "Companies"), as of that date, including the losses realized on the
sales.
The unaudited pro forma statements of operations for the year ended
December 31, 1994 and six months ended July 2, 1995 give effect to the
sale of the above assets of the Companies as if the sale had occurred at
the beginning of each period presented. However, the statements of
operations do not reflect the losses realized by the Registrant on such
sales, and these results are not necessarily indicative of what would
have occurred had the sales actually taken place at the beginning of 1994
or the beginning of the six month period of 1995.
Management believes that the unaudited pro forma consolidated financial
statements provide a reasonable basis for presenting all of the
significant effects of the completed sales of the Companies' assets and
that the pro forma adjustments are properly applied in the unaudited pro
forma consolidated financial statements.
P-5
Intermet Corporation
Notes to Pro Forma Consolidated Financial Statements (continued)
(Unaudited)
SALE OF PBM INDUSTRIES, INC.
2. PRO FORMA ADJUSTMENTS
Pro forma adjustments to consolidated balance sheet
DR (CR)
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(a) Record proceeds from sale of substantially
all of the assets and assume certain
liabilities of wholly-owned subsidiary PBM
Industries, Inc.
Cash and cash equivalents $ 5,320
Promissory note 2,500
Accounts receivable (2,492)
Inventory (2,034)
Other current assets (465)
Property, plant and equipment (12,394)
Accumulated depreciation 5,843
Accounts payable 2,315
Accrued liabilities 105
Shareholders' equity 1,302
Pro forma adjustments to consolidated statements of operations
Year ended Six months ended
December 31, 1994 July 2, 1995
DR (CR) DR (CR)
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(b) and (c) Eliminate operating results of
wholly-owned subsidiary PBM Industries,
Inc.
(b) (c)
Sales $ 35,341 $ 20,371
Cost of sales (37,625) (18,724)
Operating expenses (1,835) (803)
Other income (expense) net (1,431) (340)
Provision for income tax 60 (269)
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Net earnings (loss) of PBM Industries, Inc. $ (5,490) $ 235
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P-6
Intermet Corporation
Notes to Pro Forma Consolidated Financial Statements (continued)
(Unaudited)
SALE OF INTERMOTIVE TECHNOLOGIES, INC.
2. PRO FORMA ADJUSTMENTS
Pro forma adjustments to consolidated balance sheet
DR (CR)
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(d) Record proceeds from sale of substantially
all of the assets and assume certain
liabilities of wholly-owned subsidiary
InterMotive Technologies, Inc.
Cash and cash equivalents $ 4,430
Accounts receivable (1,157)
Inventory (122)
Other current assets (41)
Property, plant and equipment (5,461)
Accumulated depreciation 1,042
Shareholders' equity 1,309
Pro forma adjustments to consolidated statements of operations
Year ended Six months ended
December 31, 1994 July 2, 1995
DR (CR) DR (CR)
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(e) and (f) Eliminate operating results of
wholly-owned subsidiary InterMotive
Technologies, Inc.
(e) (f)
Sales $ 4,910 $ 2,185
Cost of sales (5,228) (3,614)
Operating expenses (815) (488)
Other income (expense) net (445) (299)
Provision for income tax 456 224
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Loss of InterMotive Technologies, Inc. $(1,122) $(1,992)
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P-7
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.
INTERMET CORPORATION
By: /s/ Doretha J. Christoph
Date: November 2, 1995 Doretha J. Christoph
Vice President - Finance
(Principal Financial Officer)