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
May 8, 2000
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Date of report (Date of earliest event reported)
All Star Gas Corporation
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(Exact Name of Registrant as Specified in Charter)
Missouri 1-11393 43-1494323
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(State of (Commission File No.) (IRS Employer
Incorporation) Identification No.)
P.O. Box 303
119 West Commercial Street
Lebanon, Missouri 65536
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(Address of Principal Executive Offices and Zip Code)
(417) 532-3103
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(Registrant's telephone number, including area code)
N/A
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(Former Name or Former Address, if Changed Since Last Report)
Item 2. Acquisition or Disposition of Assets.
Effective May 8, 2000, the Company sold its operating locations in California,
Nevada, Idaho, Washington and Oregon to AmeriGas Propane, L.P., a Delaware
limited partnership. The purchase price was $39.0 million plus the value of
working capital items.
Item 7. Financial Statements and Exhibits.
(2) Pro Forma Financial Information
The pro forma condensed consolidated statements of operations for the year ended
June 30, 1999 and for the nine months ended March 31, 2000, give effect to the
dispositions and the related transactions as if they had occurred on the first
day of the respective periods. The pro forma condensed consolidated balance
sheet as of March 31, 2000 has been prepared as if the dispositions had occurred
on that date. The pro forma financial information does not purport to present
the financial position or results of operations of the Company had the
dispositions actually been completed as of the dates indicated. In addition, the
pro forma financial information is not necessarily indicative of future results
of operations.
ALL STAR GAS CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 2000
(Dollars in Thousands)
Historical
-----------------------
Divested
Retail
Service Pro Forma
Company Centers Adjustments Pro Forma
------- ------- ----------- ---------
Assets
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Current Assets
Cash $ 1,185 $207 $38,146 (A) $ 39,124
Trade receivables - Net 10,095 2,348 -- 7,747
Inventories 4,942 1,209 -- 3,733
Prepaid Expense 1,401 -- -- 1,401
Deferred Income Taxes 300 -- -- 300
------- ------- ------- --------
Total Current Assets 17,923 3,764 38,146 52,305
------- ------- ------- --------
Property and Equipment 96,287 19,018 -- 77,269
Less Accumulated Depreciation 36,553 7,175 -- 29,378
------- ------- ------- --------
Total Property and Equipment 59,734 11,843 -- 47,891
------- ------- ------- --------
Other Assets
Debt Acquisition Costs - Net 2,186 -- -- 2,186
Excess of Cost Over Fair Value of Net
Assets Acquired - Net 7,805 1,459 -- 6,346
Deferred Income Taxes 2,405 -- (1,840) (B) 565
Other 1,543 6 -- 1,537
------- ------- ------- --------
Total Other Assets 13,939 1,465 (1,840) 10,634
------- ------- ------- --------
Total Assets $91,596 $17,072 $36,306 $110,830
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ALL STAR GAS CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 2000
(Dollars in Thousands)
Historical
-------------------------------------
Divested
Retail
Service Pro Forma
Company Centers Adjustments Pro Forma
------- -------- ----------- ---------
Liabilities and Stockholders'
Equity (Deficit)
Current Liabilities
Current Maturities of Long-Term Debt
$ 3,700 $ -- $ -- $ 3,700
Accounts Payable and Accrued Expenses
15,407 1,055 7,670 (B) 22,022
-------- -------- ----------- --------
Total Current Liabilities 19,107 1,055 7,670 25,722
Long-Term Debt 136,310 2,004 -- 134,306
Accrued Self-Insurance Liability 1,320 -- -- 1,320
-------- -------- ----------- --------
Total Liabilities 156,737 3,059 7,670 161,348
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Stockholders' Equity (Deficit)
Common; $.001 Par Value; Authorized
20,000,000 Shares, Issued - 14,291,020
Shares 14 -- -- 14
Common Stock Purchase Warrants 1,227 -- -- 1,227
Additional Paid-In Capital 27,119 -- -- 27,119
Retained Earnings (Deficit) (5,587) 14,013 38,146 (A)
(9,510) (B) 9,036
-------- -------- ----------- --------
22,773 14,013 28,636 37,396
Treasury Stock at Cost -
12,704,105 Shares (87,914) -- -- (87,914)
-------- -------- ----------- --------
Total Stockholders' Equity (Deficit) (65,141) 14,013 28,636 (50,518)
-------- -------- ----------- --------
Total Liabilities and Stockholders' Equity
(Deficit) $ 91,596 $ 17,072 $36,306 $110,830
======== ======== =========== ========
The accompanying notes are an integral part of these pro forma
condensed consolidated financial statements.
ALL STAR GAS CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
NINE MONTHS ENDED MARCH 31, 2000
(Dollars in Thousands, Except Per Share Amounts)
Historical
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Divested
Retail
Service Pro Forma
Company Centers Adjustments Pro Forma
------- ----------- ----------- ---------
Operating Revenue $ 71,054 $ 16,128 $ -- $ 54,926
Cost of Product Sold 39,852 8,749 -- 31,103
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Gross Profit 31,202 7,379 -- 23,823
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Operating Costs and Expenses
Provision for Doubtful Accounts 143 69 -- 74
General and Administrative 25,856 4,020 (256) (C) 21,580
Depreciation and Amortization 6,999 1,208 -- 5,791
Gain on Sale of Assets (13,181) (17) -- (13,164)
-------- ----------- ----------- ---------
19,817 5,280 (256) 14,281
-------- ----------- ----------- ---------
Operating Income 11,385 2,099 256 9,542
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Other Expense
Interest Expense, Net 13,962 121 -- 13,841
Amortization of Debt
Discount and Expense 1,814 -- -- 1,814
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15,776 121 -- 15,655
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Income (Loss) Before Income Taxes
and Nonrecurring Charges
(Credits) Directly Attributable
to the Transactions (4,391) 1,978 256 (6,113)
Credit for Income Taxes (2,559) -- -- (2,559)
-------- ------------ ---------- ---------
Income (Loss) Before
Nonrecurring Charges (Credits)
Directly Attributable to the
Transactions $ (1,832) $1,978 $256 $(3,554)
======== ============ ========== =========
Basic and Diluted Income (Loss)
Before Nonrecurring Charges
(Credits) Directly Attributable
to the Transactions Per Common
Share (1,586,915 Shares) $(1.15) $ 1.25 $.16 $(2.24)
====== ============ ========== ========
The accompanying notes are an integral part of these pro forma condensed
consolidated financial statements.
ALL STAR GAS CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 1999
(Dollars in Thousands, Except Per Share Amounts)
Historical
-------------------------------------
Divested
Retail
Service Pro Forma
Company Centers Adjustments Pro Forma
------- -------- ----------- ---------
Operating Revenue $79,537 $18,810 $-- $60,727
Cost of Product Sold 36,583 9,212 -- 27,371
---------------- ----------------- ---------------- -----------------
Gross Profit 42,954 9,598 -- 33,356
---------------- ----------------- ---------------- -----------------
Operating Costs and Expenses
Provision for Doubtful Accounts 227 24 -- 203
General and Administrative 29,264 5,500 (341) (C) 23,423
Depreciation and Amortization 9,359 1,531 -- 7,828
(Gain) Loss on Sale of Assets (547) 5 -- (552)
---------------- ----------------- ---------------- -----------------
38,303 7,060 (341) 30,902
---------------- ----------------- ---------------- -----------------
Operating Income 4,651 2,538 341 2,454
---------------- ----------------- ---------------- -----------------
Other Expense
Interest Expense, Net 11,713 202 -- 11,511
Amortization of Debt
Discount and Expense 7,762 -- -- 7,762
---------------- ----------------- ---------------- -----------------
19,475 202 -- 19,273
---------------- ----------------- ---------------- -----------------
Income (Loss) Before Income Taxes
and Nonrecurring Charges
(Credits) Directly Attributable
to the Transactions (14,824) 2,336 341 (16,819)
Credit for Income Taxes (5,197) -- -- (5,197)
---------------- ----------------- ---------------- -----------------
Income (Loss) Before
Nonrecurring Charges (Credits)
Directly Attributable to the
Transactions $(9,627) $2,336 $341 $(11,622)
================ ================= ================ =================
Basic and Diluted Income (Loss)
Before Nonrecurring Charges
(Credits) Directly Attributable
to the Transactions Per Common
Share (1,564,050 Shares) $(6.16) $1.49 $.22 $(7.43)
================ ================= ================ =================
The accompanying notes are an integral part of these pro forma condensed
consolidated financial statements.
NOTES TO PRO FORMA FINANCIAL INFORMATION
(A) Reflects the proceeds received on the dispositions of Washington,
Oregon, California, Idaho and Nevada retail service centers, including
amounts received for accounts receivable and inventories less selling
expenses and payoff of related mortgages.
(B) Reflects the provision for income taxes, income tax liability and
deferred tax adjustments for the above dispositions at federal and
state statutory rates.
(C) Reflects the direct general and administrative expense at the home
office level attributable to the disposed service centers.
(D) The effects of the dispositions for the nine months ended March 31,
2000 would result in a $25.9 million gain on sale and a provision for
income taxes of $9.5 million. The effects of the dispositions for the
year ended June 30, 1999 would result in a $25.6 million gain on sale
and a provision for income taxes of $9.4 million. These adjustments
have not been included in the above pro forma condensed consolidated
statements of operations.
(E) The Company sold nine retail service centers in North Carolina in April
2000 that are not included in the above pro forma financial
information. The effects of those dispositions on the Company have been
included in the Company's pro forma condensed consolidated financial
statements in a Form 8-K which was filed April 17, 2000.
Signatures
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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.
Dated: May 23, 2000
ALL STAR GAS CORPORATION
By: /s/ Valeria Schall
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Name: Valeria Schall
Title: Executive Vice President