1
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------------
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported) July 31, 1995
-----------------------------
TOP AIR MANUFACTURING, INC.
AN IOWA CORPORATION
0-10571 42-1155462
- ------------------- ---------------------------------
Commission File Number I.R.S. Employer Identification No.
406 HIGHWAY 20
PARKERSBURG, IOWA 50665
Registrant's telephone number: (319) 346-1788
-----------------------------
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
2
ITEM 5. OTHER EVENTS.
As previously reported on Form 8-K filed July 5, 1995, Top Air
Manufacturing, Inc. ("Top Air" or "Registrant") acquired on June 26, 1995,
substantially all assets of Clay Equipment Corporation ("Clay Equipment") and
assumed certain liabilities of Clay Equipment related to the business of Clay
Equipment in exchange for 837,666 shares of the Top Air's no par value common
stock (the "Transaction").
The unaudited pro forma financial information which follows updates the
pro forma financial information contained in Top Air's registration statement on
Form S-4 (Reg. No. 33-59211) filed in connection with the Transaction. Such
pro forma financial information consists of (1) the unaudited pro forma
condensed balance sheet of Top Air and Clay Equipment as of May 31, 1995,
presented as if the Transaction (and related issuance of Top Air Common Stock)
had been consummated at such date, and (2) the unaudited pro forma condensed
statements of income of Top Air and Clay Equipment for the fiscal year ended
May 31, 1995, presented as if the Transaction (and related issuance of Top Air
Common Stock) had been consummated on June 1, 1994. The pro forma adjustments
do not reflect any operating efficiencies and cost savings which Top Air
believes are achievable or the cost of achieving any such operating
efficiencies and cost savings.
The unaudited pro forma financial information presented below has been
prepared using the purchase method of accounting, whereby the total cost of
the acquisition of the business, assets and operations of Clay Equipment is
allocated to the tangible assets acquired and liabilities assumed based upon
their respective fair values at the effective date of the Transaction.
2
3
TOP AIR MANUFACTURING, INC.
PRO FORMA CONDENSED BALANCE SHEET (UNAUDITED)
MAY 31, 1995
CLAY AS
ASSETS TOP AIR EQUIPMENT ADJUSTMENTS ADJUSTED
- -----------------------------------------------------------------------------------------------------------------------------
Current Assets
Cash $ 414,748 $ 213 $ - $ 414,961
Receivables 1,276,544 374,175 - 1,650,719
Condemnation award receivable - - 65,750 <F3>
565,750 <F1> 631,500
Inventories 1,553,830 850,919 1,283,156 <F1> 3,687,905
Other 96,649 101,433 - 198,082
-----------------------------------------------------------------------
TOTAL CURRENT ASSETS 3,341,771 1,326,740 1,914,656 6,583,167
Long Term Receivables 54,711 134,621 - 189,332
Property and Equipment, less
accumulated depreciation 778,706 305,059 (305,059) <F1> 778,706
Intangibles and Other Assets 73,734 665,569 (665,569) <F1> 73,734
-----------------------------------------------------------------------
$ 4,248,922 $ 2,431,989 $ 944,028 $ 7,624,939
=======================================================================
LIABILITIES AND STOCKHOLDER'S EQUITY
Current Liabilities
Current maturities of debt $ 69,385 $ 3,075,805 $(1,402,480) <F3> $ 1,742,710
Accounts payable and accrued expenses 955,870 1,102,070 (312,414) <F3> 1,745,526
-----------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 1,025,255 4,177,875 (1,714,894) 3,488,236
-----------------------------------------------------------------------
Long-Term Debt 270,207 - - 270,207
-----------------------------------------------------------------------
Deferred Income Tax 79,000 - - 79,000
-----------------------------------------------------------------------
Excess of Net Assets Acquired Over Cost - - 284,786 <F1> 284,786
-----------------------------------------------------------------------
ESOP Debt Commitment - 1,723,871 (1,723,871) <F2> -
-----------------------------------------------------------------------
Stockholders' Equity
Common Stock 198,402 513,050 46,875 <F1>
(513,050) <F2>
5,479 <F3> 250,756
Additional paid-in capital 840,877 1,743,605 515,625 <F1>
(1,743,605) <F2>
60,271 <F3> 1,416,773
Retained earnings (deficit) 1,835,181 (4,002,541) 4,002,541 <F2> 1,835,181
-----------------------------------------------------------------------
2,874,460 (1,745,886) 2,374,136 3,502,710
Less employee stock ownership
plan debt guarantee - (1,723,871) 1,723,871 <F2> -
-----------------------------------------------------------------------
2,874,460 (3,469,757) 4,098,007 3,502,710
-----------------------------------------------------------------------
$ 4,248,922 $ 2,431,989 $ 944,028 $ 7,624,939
=======================================================================
See Notes to Unaudited Pro Forma Balance Sheet.
3
4
TOP AIR MANUFACTURING, INC.
NOTES TO UNAUDITED PRO FORMA BALANCE SHEET
- ------------------------------------------------------------------------------
<F1> To record allocation of purchase price to Clay Equipment assets
acquired, including the excess of net assets over cost, and
issuance of 750,000 shares of Top Air common stock, at the average
of bid and asked price at May 31, 1995.
<F2> To eliminate the Clay liabilities not assumed by Top Air and Clay
Equipment's ESOP debt guarantee, common stock, additional paid in
capital and retained deficit.
<F3> To record additional Top Air common stock issued for condemnation
proceeds in excess of $500,000, as required by the purchase
agreement.
4
5
TOP AIR MANUFACTURING, INC.
PRO FORMA CONDENSED STATEMENT OF INCOME (UNAUDITED)
YEAR ENDED MAY 31, 1995
CLAY AS
TOP AIR EQUIPMENT ADJUSTMENTS ADJUSTED
- ------------------------------------------------------------------------------------------------------------------------------
Net sales $ 6,215,866 $ 6,508,229 $ - $ 12,724,095
Cost of goods sold 4,042,058 5,071,522 241,268 <F1>
(122,173) <F4> 9,232,675
---------------------------------------------------------------------------
GROSS PROFIT 2,173,808 1,436,707 (119,095) 3,491,420
---------------------------------------------------------------------------
Operating expenses:
Selling 869,373 1,385,738 - 2,255,111
Other 604,555 1,636,153 (28,479) <F2>
(48,080) <F3>
(184,850) <F5> 1,979,299
---------------------------------------------------------------------------
1,473,928 3,021,891 (261,409) 4,234,410
---------------------------------------------------------------------------
OPERATING INCOME (LOSS) 699,880 (1,585,184) 142,314 (742,990)
---------------------------------------------------------------------------
Financial income (expense):
Interest income 8,281 50,050 - 58,331
Interest expense (100,584) (313,663) 146,042 <F6> (268,205)
---------------------------------------------------------------------------
(92,303) (263,613) 146,042 (209,874)
---------------------------------------------------------------------------
INCOME (LOSS) BEFORE
INCOME TAXES 607,577 (1,848,797) 288,356 (952,864)
Federal and state income taxes 236,565 3,561 (616,507) <F7> (376,381)
---------------------------------------------------------------------------
NET INCOME (LOSS) $ 371,012 $ (1,852,358) $ 904,863 $ (576,483)
===========================================================================
Income (loss) per common share $ (0.14)
==================
Weighted average number of shares outstanding 4,041,951
==================
See Notes to Unaudited Pro Forma Statements of Income.
5
6
TOP AIR MANUFACTURING, INC.
NOTES TO UNAUDITED PRO FORMA STATEMENTS OF INCOME
- ------------------------------------------------------------------------------
<F1> To record adjustment to account for Clay inventories on the lower of
cost (first-in, first-out method) or market.
<F2> To amortize excess of assets acquired over cost over a 10 year period
using the straight-line method.
<F3> To eliminate amortization of Clay Equipment goodwill.
<F4> To eliminate depreciation on Clay Equipment property and equipment.
<F5> To eliminate Clay Equipment ESOP contribution.
<F6> To eliminate interest expense on Clay Equipment liabilities not
assumed.
<F7> To adjust for the income tax effects of the combination.
6
7
SIGNATURE
---------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report, as amended, to be signed on its behalf
by the undersigned thereunto duly authorized.
Date: March 28, 1996
TOP AIR MANUFACTURING, INC.
By: /s/ Steven R. Lind
----------------------------------------
Steven R. Lind
President and Chief Executive Officer
7