SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K/A AMENDMENT TO 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): January 13, 1999 THERMATRIX INC. (Exact name of Registrant as specified in its charter) Commission File Number 0-20819 Delaware 94-2958515 (State or other jurisdiction of (I.R.S. Employer Incorporation or organization) Identification Number) 2025 Gateway Place, Suite 132 95110-1005 San Jose, California (Zip Code) (Address of principal executive offices) Registrant's telephone number, including area code: (408) 453-0490 The undersigned registrant hereby amends the following items, financial statements, exhibits or other portions of its Current Report on Form 8-K filed January 28, 1999 set forth in the pages attached hereto. ITEM 7 FINANCIAL STATEMENTS AND EXHIBITS. The following financial statements and exhibits are filed as part of this Report, where indicated. (a) Financial statements of business acquired, prepared pursuant to Rule 3-05 of Regulation S-X: Financial statements were previously reported in Wahlco's Annual Report on Form 10-K for the year ended December 31, 1997 and Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 1998, June 30, 1998, and September 30, 1998, respectively, are incorporated by reference herein. (b) Pro forma financial information required pursuant to Article 11 of Regulation S-X follow: 2 THERMATRIX INC. AND WAHLCO ENVIRONMENTAL SYSTEM, INC. UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET AS OF SEPTEMBER 30, 1998 (IN THOUSANDS, EXCEPT PER SHARE DATE) PRO FORMA PRO FORMA THERMATRIX WAHLCO ADJUSTMENTS COMBINED ----------- --------- ------------- --------- Current Assets: Cash and cash equivalents $ 4,305 $ 1,145 $ (2,232) (a) $ 3,218 Accounts receivable, net $ 5,570 $ 10,343 (681) (b) $ 15,232 Cost of uncompleted contracts $ 273 $ 1,373 $ 1,646 Inventories $ 3,294 $ 3,294 Prepaid expenses and other current assets $ 296 $ 1,488 $ 1,784 --------- --------- --------- -------- Total current assets $ 10,444 $ 17,643 $ (2,913) $ 25,174 --------- --------- --------- -------- Property and equipment, net $ 680 $ 4,190 $ 4,870 Goodwill $ 4,430 (c) $ 4,430 Patents and other intangible assets $ 1,354 $ 1,354 Other assets $ 863 $ 863 --------- --------- --------- -------- Total other assets $ 2,034 $ 5,053 $ 4,430 $ 11,517 --------- --------- --------- -------- Total Assets $ 12,478 $ 22,696 $ 1,517 $ 36,691 ========= ========= ========= ======== Current liabilities: Notes payable $ 3,662 $ 3,662 Accounts payable and accrued liabilities $ 3,556 $ 5,123 $ 8,679 Accrued payroll and payroll-related expenses $ 848 $ 1,258 $ 2,106 Billings on uncompleted contracts $ 46 $ 763 $ 809 Income taxes payable $ 198 $ 198 Current portion of long-term debt $ 301 $ 301 Other accrued liabilities $ 4,773 $ 4,040 (d) $ 8,813 --------- --------- --------- -------- Total current liabilities $ 4,450 $ 16,078 $ 4,040 $ 24,568 --------- --------- --------- -------- Long-term debt $ 1,825 $ 1,825 Other liabilities $ 2,270 $ 2,270 ========= --------- ========= -------- Total long-term liabilities 0 $ 4,095 0 $ 4,095 ========= --------- ========= -------- Stockholders' equity Common stock and additional paid-in capital $ 48,764 $ 105,077 $(105,077)(e) $ 48,764 Retained earnings (accumulated deficit) $ (40,736) $(100,454) $ 100,454 (e) $(40,736) Foreign currency translation adjustment $ (2,100) $ 2,100 (e) $ 0 --------- --------- --------- -------- Total stockholders' equity $ 8,028 $ 2,523 $ (2,523) $ 8,028 --------- --------- --------- -------- Total Liabilities and stockholders' equity $ 12,478 $ 22,696 $ 1,517 $ 36,691 ========= ========= ========= ======== See accompanying notes to unaudited pro forma condensed combined financials 3 THERMATRIX INC. AND WAHLCO ENVIRONMENTAL SYSTEM, INC. UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET NINE MONTHS ENDED SEPTEMBER 30, 1998 (IN THOUSANDS, EXCEPT PER SHARE DATE) PRO FORMA PRO FORMA THERMATRIX WAHLCO ADJUSTMENTS COMBINED ----------- --------- ------------- --------- Revenues $ 9,642 $ 28,891 $ 38,533 Cost of revenues $ 8,850 $ 22,046 $ 30,896 -------- -------- -------- Gross margin $ 792 $ 6,845 $ 7,637 Expenses Research and Development $ 1,053 $ 0 $ 1,053 Sales, general and administrative $ 4,113 $ 9,222 $ 13,335 Amortization of Goodwill $ 0 $ 0 $ 166 (c) $ 166 -------- -------- --------- -------- Loss from operations $ (4,374) $ (2,377) $ (166) $ (6,917) Other income, net $ 341 $ (974) $ (72)(f) $ (705) -------- -------- --------- -------- Income (loss) before Income Taxes $( 4,033) $ (3,351) $ (238) $ (7,662) Provision (credit) for Income Taxes $ (50) $ (50) -------- -------- --------- -------- Net loss $ (4,083) $ (3,351) $ (238) $ (7,672) ======== ======== ========= ======== Basic and diluted net loss per share $ (0.53) $ (1.00) Basic and diluted weighted average common shares And equivalents 7,668 7,668 See accompanying notes to unaudited pro forma condensed combined financials 4 THERMATRIX INC. AND WAHLCO ENVIRONMENTAL SYSTEM, INC. UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET FOR THE YEAR ENDED DECEMBER 31, 1997 (IN THOUSANDS, EXCEPT PER SHARE DATE) PRO FORMA PRO FORMA THERMATRIX WAHLCO ADJUSTMENTS COMBINED ----------- --------- ------------- --------- Revenues $ 7,011 $ 49,729 $ 56,740 Cost of revenues $ 8,351 $ 40,540 $ 48,891 --------- -------- -------- Gross margin $ (1,340) $ 9,189 $ 7,849 Expenses Research and Development $ 1,203 $ 0 $ 1,203 Sales, general and administrative $ 7,705 $ 12,872 $ 20,577 Amortization of Goodwill $ 0 $ 0 $ 222 (c) $ 222 --------- -------- ------- -------- Loss from operations $ (10,248) $ (3,683) $ (222) $(14,153) Other income, net $ 674 $ (1,736) $ (46)(f) $ (1,108) --------- -------- ------- -------- Income (loss) before Income Taxes $ (9,574) $ (5,419) $ (268) $(15,261) Provision (credit) for Income Taxes $ (66) $ (66) --------- -------- ------- -------- Net loss $ (9,640) $ (5,419) $ (268) $(15,327) ========= ======== ======= ======== Basic and diluted net loss per share $ (1.28) $ (2.03) Basic and diluted weighted average common shares And equivalents 7,548 7,548 See accompanying notes to unaudited pro forma condensed combined financials 5 ACCOMPANYING NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIALS - ----------------------------------------------------------------------- Certain pro forma adjustments have been made to the accompanying pro forma condensed combined consolidated balance sheet and statements of operations as described below. (a) Reflects the purchase price that was paid with cash of approximately $1.9 million and other acquisition related expenditures (b) Reflects increased allowances for doubtful accounts for acquired receivables. (c) Reflects the recording of goodwill from the acquisition of Wahlco, amortized over a period of twenty years. (d) Reflects estimated exit and involuntary employee termination costs associated with the Merger. (e) Reflects the elimination of Wahlco's stockholders' equity accounts. (f) Reflects the incremental interest relating to Wexford's payoff of Wahlco's borrowings from Chase Manhattan Bank ("Chase") under a credit facility in connection with the Merger. The debt assumed due to Wexford bears annual interest at 13% compared to the Chase rate of 9.5%. Average borrowings for the year ended December 31, 1997 and nine months ended September 30, 1998 amounted to $1,325,000 and $2,750,000, respectively. Item 7 (c) Exhibits in accordance with Item 601 of Regulation S-K: EXHIBIT INDEX Exhibit - ------- Number Description - ------ ----------- 2.1 Agreement and Plan of Merger dated November 9, 1998 by and among Thermatrix Inc., TMX Acquisition Sub I, Inc. and Wahlco Environmental Systems, Inc. (Incorporated by reference herein to Registrant's Current Report on Form 8-K filed on January 28, 1999, File No. 000- 20819.) 2.2 Security Agreement dated January 13, 1999 by and among Thermatrix, Inc., Wexford Capital Partners II, L.P., Wexford Overseas Partners I, L.P., Wexford Special Situations 1996, L.P., Wexford Special Situations 1996 Institutional, L.P., Wexford Special Situations 1996 Limited, Wexford-Euris Special Situations 1996, L.P. and Wexford Management LLC. (Incorporated herein by reference to Registrant's Current Report on Form 8-K filed on January 28, 1999, File No.000- 20819.) 2.3 Guaranty dated January 13, 1999 by and among Thermatrix Inc., Wexford Capital Partners II, L.P., Wexford Overseas Partners I, L.P., Wexford Special Situations 1996, L.P., Wexford Special Situations 1996 Institutional, L.P., Wexford Special Situations 1996 Limited, Wexford- Euris Special Situations 1996, L.P. and Wexford Management LLC. (Incorporated herein by reference to Registrant's Current Report on Form 8-K filed on January 28, 1999, File No.000-20819.) 6 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. THERMATRIX INC. Date: March 29, 1999 By: /s/ Daniel S. Tedone -------------------------------------- Daniel S. Tedone Chief Financial Officer 7