1
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
September 26, 2001
------------------------------
Date of Report (Date of earliest event reported)
BALDWIN TECHNOLOGY COMPANY, INC.
--------------------------------
(Exact name of registrant as specified in its charter)
Delaware 1-9334 13-3258160
------------------------------- -------------- --------------------
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
Twelve Commerce Drive, Shelton, CT. 06484
------------------------------------------
(Address of Principal Executive Offices and Zip Code)
(203) 402-1000
---------------
(Registrant's telephone number, including area code)
N/A
----
(Former Name or Former Address, if changed since Last Report)
2
Item 2. Acquisition or Disposition of Assets
On September 26, 2001, Baldwin Technology Company, Inc. ("Baldwin or the
"Company") sold substantially all of the assets of its locations at Amal,
Sweden, Rockford Illinois, and Shanghai, China, comprising the Roll Handling
Group ("RHG"). The consideration received for the transaction subject to certain
post-closing adjustments, amounted to approximately $6,800,000. The Company
received $1,808,000 at closing and $4,992,000 in October 2001. Accordingly,
during the fourth quarter of the fiscal year ended June 30, 2001, the Company
recorded an impairment charge of approximately $14,831,000 resulting primarily
from the write-off of goodwill, patents and certain other assets associated with
the RHG, including $961,000 of cumulative translation adjustments related to the
foreign operations of the RHG, which were reclassified as part of the impairment
charge.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(b) Pro forma financial information
(1) Unaudited Pro Forma Condensed Consolidated Balance Sheet at March
31, 2001.
(2) Unaudited Pro Forma Condensed Consolidated Statements of Income
for the nine months ended March 31, 2001 and 2000.
(3) Unaudited Pro Forma Condensed Consolidated Statements of Income
for the years ended June 30, 2000, 1999 and 1998.
(c) Exhibits
10.45 Asset and Share Purchase Agreement, dated as of July 20,
2001 by and among Sequa Corporation, Megtec Systems, Inc.
and the Company (filed herewith).
10.46 Amendment No. 1 to Asset and Share Purchase Agreement dated
September 25, 2001 and effective August 31, 2001 by and
among Sequa Corporation, Megtec Systems, Inc. and the
Company (filed herewith).
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PRO FORMA FINANCIAL INFORMATION
Baldwin completed the sale of its RHG on September 26, 2001. The
following unaudited pro forma condensed consolidated statements of income for
the fiscal years ended June 30, 2000, 1999 and 1998 and the nine months ended
March 31, 2001 and 2000 as well as the unaudited pro forma condensed
consolidated balance sheet as of March 31, 2001, were prepared to illustrate the
estimated effects of the sale of the Company's RHG and the application of a
portion of the net proceeds to the outstanding debt. The unaudited pro forma
condensed consolidated statements of income assume that the sale occurred at the
beginning of the periods presented. The unaudited pro forma condensed
consolidated balance sheet assumes that the sale occurred as of the respective
balance sheet date.
The unaudited pro forma financial information presented is derived from
the audited financial statements of Baldwin as of and for the year ended June
30, 2000, 1999 and 1998 and the unaudited financial statements of Baldwin as of
and for the nine months ended March 31, 2001 and 2000. The unaudited pro forma
financial information should be read in conjunction with "Management's
Discussion and Analysis of Financial Condition and Results of Operations" and
the consolidated financial statements of Baldwin, including the notes thereto,
appearing in Baldwin's Annual Report on Form 10-K for the year ended June 30,
2000. The unaudited pro forma financial information does not purport to be
indicative of the results of operations or financial condition that would have
been reported had the events assumed occurred on the dates indicated, nor does
it purport to be indicative of results of operations, or financial condition
that may be achieved in the future.
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BALDWIN TECHNOLOGY COMPANY, INC.
UNAUDITED PRO FORMA FINANCIAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEET
(IN THOUSANDS)
ASSETS
MARCH 31,
2001
---------
CURRENT ASSETS:
Cash and cash equivalents ....................................... $ 8,201
Accounts receivable trade, net of allowance for doubtful accounts 26,716
Notes receivable, trade ......................................... 13,535
Inventories ..................................................... 25,688
Prepaid expenses and other ...................................... 6,577
---------
Total current assets ................................... 80,717
---------
MARKETABLE SECURITIES ............................................. 545
---------
PROPERTY, PLANT AND EQUIPMENT, at cost:
Land and buildings .............................................. 2,563
Machinery and equipment ......................................... 3,570
Furniture and fixtures .......................................... 3,969
Leasehold improvements .......................................... 155
Capital leases .................................................. 1,242
---------
11,499
Less: Accumulated depreciation and amortization ................... (5,766)
---------
Net property, plant and equipment ................................. 5,733
---------
PATENTS, TRADEMARKS AND ENGINEERING
DRAWINGS, net of accumulated amortization ........................ 1,931
GOODWILL, net of accumulated amortization ......................... 15,003
DEFERRED TAXES .................................................... 14,020
OTHER ASSETS ...................................................... 6,885
---------
TOTAL ASSETS ........................................... $ 124,834
=========
LIABILITIES AND SHAREHOLDERS' EQUITY
MARCH 31,
2001
----
CURRENT LIABILITIES:
Loans payable ................................................... $ 3,563
Current portion of long-term debt ............................... 59
Accounts payable, trade ......................................... 9,064
Notes payable, trade ............................................ 9,821
Accrued salaries, commissions, bonus and profit-sharing ......... 4,743
Customer deposits ............................................... 5,052
Accrued and withheld taxes ...................................... 1,178
Income taxes payable ............................................ 3,985
Other accounts payable and accrued liabilities .................. 14,273
--------
Total current liabilities .............................. 51,738
--------
LONG-TERM LIABILITIES:
Long-term debt .................................................. 13,352
Other long-term liabilities ..................................... 7,221
--------
Total long-term liabilities ............................ 20,573
--------
Total liabilities ...................................... 72,311
--------
TOTAL SHAREHOLDERS' EQUITY ........................................ 52,523
--------
COMMITMENTS AND CONTINGENCIES
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ........................ $124,834
========
See accompanying notes to unaudited pro forma financial information.
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BALDWIN TECHNOLOGY COMPANY, INC.
UNAUDITED PRO FORMA FINANCIAL INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
FOR THE NINE MONTHS
ENDED MARCH 31,
2001 2000
--------- ---------
Net sales ........................................ $ 113,969 $ 122,715
Cost of goods sold ............................... 77,501 80,452
--------- ---------
Gross profit ..................................... 36,468 42,263
--------- ---------
Operating expenses:
General and administrative ..................... 14,390 15,598
Selling ........................................ 10,643 12,225
Engineering .................................... 7,392 7,391
Research and development ....................... 3,726 3,819
Provision for loss on the disposition of
pre-press operations ........................ (472)
Restructuring and other charges ................ 95 3,015
--------- ---------
35,774 42,048
--------- ---------
Operating income ................................. 694 215
--------- ---------
Other (income) expense:
Interest expense ............................... 1,332 996
Interest (income) .............................. (228) (231)
Royalty (income), net .......................... (3,011) (2,588)
Other expense (income), net .................... (1,190) (426)
--------- ---------
(3,097) (2,249)
--------- ---------
Income before income taxes ....................... 3,791 2,464
--------- ---------
Provision (benefit) for income taxes ............. 1,933 (3,578)
--------- ---------
Net income ....................................... $ 1,858 $ 6,042
========= =========
Basic and diluted income per share ............. $ 0.13 $ 0.38
========= =========
Weighted average shares outstanding:
Basic and diluted .............................. 14,818 15,812
========= =========
See accompanying notes to unaudited pro forma financial information.
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BALDWIN TECHNOLOGY COMPANY, INC.
UNAUDITED PRO FORMA FINANCIAL INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
FOR THE YEARS ENDED JUNE 30,
-----------------------------------------------------
2000 1999 1998
--------- --------- ---------
Net sales ........................................................ $ 164,188 $ 181,957 $ 182,230
Cost of goods sold ............................................... 106,945 117,142 117,853
--------- --------- ---------
Gross profit ..................................................... 57,243 64,815 64,377
--------- --------- ---------
Operating expenses:
General and administrative ..................................... 19,517 20,784 21,163
Selling ........................................................ 16,938 15,850 15,871
Engineering .................................................... 9,900 11,055 10,802
Research and development ....................................... 5,416 5,616 5,232
Provision for loss on the disposition of
pre-press operations ........................................ 0 2,400 0
Restructuring and other charges ................................ 3,191 870 0
--------- --------- ---------
54,962 56,575 53,068
--------- --------- ---------
Operating income ................................................. 2,281 8,240 11,309
--------- --------- ---------
Other (income) expense:
Interest expense ............................................... 1,292 1,673 2,129
Interest (income) .............................................. (325) (446) (500)
Royalty (income), net .......................................... (3,111) (3,468) (1,884)
Other expense (income), net .................................... (487) (433) (1,221)
--------- --------- ---------
(2,631) (2,674) (1,476)
--------- --------- ---------
Income before income taxes ....................................... 4,912 10,914 12,785
--------- --------- ---------
(Benefit) provision for income taxes ............................. (4,452) 5,111 4,757
--------- --------- ---------
Net income ....................................................... $ 9,364 $ 5,803 $ 8,028
========= ========= =========
Basic income per share ......................................... $ 0.60 $ 0.35 $ 0.47
========= ========= =========
Diluted income per share ....................................... $ 0.60 $ 0.34 $ 0.46
========= ========= =========
Weighted average shares outstanding:
Basic .......................................................... 15,652 16,801 17,145
========= ========= =========
Diluted ........................................................ 15,652 17,148 17,480
========= ========= =========
See accompanying notes to unaudited pro forma financial information.
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BALDWIN TECHNOLOGY COMPANY, INC.
NOTES TO UNAUDITED PRO FORMA FINANCIAL INFORMATION
NOTE 1 - The Company sold substantially all of the assets of its former RHG
on September 26, 2001. Therefore, for each of the periods
presented, the pro forma financial information presented herein
gives effect for the removal of the RHG from the Company's
operations and the reduction of interest expense as a result of
utilizing a portion of the net proceeds to reduce long-term debt.
NOTE 2 - REPRESENTS THE ADJUSTMENT OF THE HISTORICAL BALDWIN FINANCIAL
INFORMATION FOR THE NINE MONTHS ENDED MARCH 31, 2001.
(IN THOUSANDS, EXCEPT PER SHARE DATA)
FOR THE NINE MONTHS ENDED MARCH 30, 2001
--------------------------------------------------------------------
HISTORICAL RHG ADJUSTMENTS PRO FORMA
--------- --------- --------- ---------
Net sales ............................................... $ 138,293 $ 24,324 $ -- $ 113,969
Cost of goods sold ...................................... 96,385 18,884 -- 77,501
--------- --------- --------- ---------
Gross profit ............................................ 41,908 5,440 -- 36,468
--------- --------- --------- ---------
Operating expenses:
General and administrative ............................ 16,193 1,803 -- 14,390
Selling ............................................... 12,037 1,394 -- 10,643
Engineering ........................................... 8,660 1,268 -- 7,392
Research and development .............................. 4,064 338 -- 3,726
Provision for loss on the disposition of
pre-press operations ............................... (472) 0 -- (472)
Restructuring and other charges ....................... 95 0 -- 95
--------- --------- --------- ---------
40,577 4,803 -- 35,774
--------- --------- --------- ---------
Operating income ........................................ 1,331 637 -- 694
--------- --------- --------- ---------
Other (income) expense:
Interest expense ...................................... 1,663 103 (228)(a) 1,332
Interest (income) ..................................... (231) (3) -- (228)
Royalty (income), net ................................. (3,011) 0 -- (3,011)
Other expense (income), net ........................... (778) 412 -- (1,190)
--------- --------- --------- ---------
(2,357) 512 (228) (3,097)
--------- --------- --------- ---------
Income before income taxes .............................. 3,688 125 228 3,791
--------- --------- --------- ---------
Provision (benefit) for income taxes .................... 1,549 (288) 96(b) 1,933
--------- --------- --------- ---------
Net income .............................................. $ 2,139 $ 413 $ 132 $ 1,858
========= ========= ========= =========
Basic and diluted income per share .................... $ 0.14 $ 0.03 $ 0.01 $ 0.13
========= ========= ========= =========
Weighted average shares outstanding:
Basic and diluted ..................................... 14,818 14,818 14,818 14,818
========= ========= ========= =========
(a) Adjustment reflects a decrease in interest expense attributable to a
$4,500,000 reduction in long-term debt during the nine months ended March
31, 2001, and was computed at an average rate of approximately 6.75%.
(b) Adjustment reflects an approximate average effective income tax rate of
42.0% for the nine months ended March 31, 2001.
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NOTE 3 - REPRESENTS THE ADJUSTMENT OF THE HISTORICAL BALDWIN FINANCIAL
INFORMATION AS OF MARCH 31, 2001.
ASSETS
(IN THOUSANDS)
AS OF MARCH 31, 2001.
------------------------------------------------------
HISTORICAL RHG ADJUSTMENTS PRO FORMA
---------- --- ----------- ---------
CURRENT ASSETS:
Cash and cash equivalents .............................................. $ 8,154 $ 653 $ 700(c) $ 8,201
Accounts receivable trade, net of allowance for doubtful accounts ...... 31,781 5,065 -- 26,716
Notes receivable, trade ................................................ 13,535 0 -- 13,535
Inventories ............................................................ 32,605 6,917 -- 25,688
Prepaid expenses and other ............................................. 7,809 1,232 -- 6,577
--------- --------- --------- ---------
Total current assets .......................................... 93,884 13,867 700 80,717
--------- --------- --------- ---------
MARKETABLE SECURITIES .................................................... 545 0 -- 545
--------- --------- --------- ---------
PROPERTY, PLANT AND EQUIPMENT, at cost:
Land and buildings ..................................................... 3,741 1,178 -- 2,563
Machinery and equipment ................................................ 4,456 886 -- 3,570
Furniture and fixtures ................................................. 4,946 977 -- 3,969
Leasehold improvements ................................................. 202 47 -- 155
Capital leases ......................................................... 1,242 0 -- 1,242
--------- --------- --------- ---------
14,587 3,088 -- 11,499
Less: Accumulated depreciation and amortization .......................... (7,297) (1,531) -- (5,766)
--------- --------- --------- ---------
Net property, plant and equipment ........................................ 7,290 1,557 -- 5,733
--------- --------- --------- ---------
PATENTS, TRADEMARKS AND ENGINEERING
DRAWINGS, net of accumulated amortization ............................... 3,004 1,073 -- 1,931
GOODWILL, net of accumulated amortization ................................ 26,545 11,542 -- 15,003
DEFERRED TAXES ........................................................... 14,020 0 -- 14,020
OTHER ASSETS ............................................................. 6,939 54 -- 6,885
--------- --------- --------- ---------
TOTAL ASSETS .................................................. $ 152,227 $ 28,093 $ 700 $ 124,834
========= ========= ========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
(IN THOUSANDS)
AS OF MARCH 31, 2001
----------------------------------------------------------
HISTORICAL RHG ADJUSTMENTS PRO FORMA
---------- --- ----------- ---------
CURRENT LIABILITIES:
Loans payable ....................................................... $ 5,056 $ 1,493 $ -- $ 3,563
Current portion of long-term debt ................................... 109 50 -- 59
Accounts payable, trade ............................................. 11,529 2,465 -- 9,064
Notes payable, trade ................................................ 9,821 0 -- 9,821
Accrued salaries, commissions, bonus and profit-sharing ............. 5,331 588 -- 4,743
Customer deposits ................................................... 8,198 3,146 -- 5,052
Accrued and withheld taxes .......................................... 1,504 326 -- 1,178
Income taxes payable ................................................ 3,861 (124) -- 3,985
Other accounts payable and accrued liabilities ...................... 14,670 397 -- 14,273
-------- -------- -------- --------
Total current liabilities .................................. 60,079 8,341 -- 51,738
-------- -------- -------- --------
LONG-TERM LIABILITIES:
Long-term debt ...................................................... 18,369 517 (4,500)(d) 13,352
Other long-term liabilities ......................................... 7,221 0 -- 7,221
-------- -------- -------- --------
Total long-term liabilities ................................ 25,590 517 (4,500) 20,573
-------- -------- -------- --------
Total liabilities .......................................... 85,669 8,858 (4,500) 72,311
-------- -------- -------- --------
TOTAL SHAREHOLDERS' EQUITY ............................................ 66,558 19,235 5,200(e) 52,523
-------- -------- -------- --------
COMMITMENTS AND CONTINGENCIES
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY ............................ $152,227 $ 28,093 $ 700 $124,834
======== ======== ======== ========
(c) Adjustment reflects an increase in cash due to the balance of the net
proceeds of the RHG sale after utilizing a portion of the net proceeds to
reduce long-term debt.
(d) Adjustment reflects a reduction in long-term debt from a portion of the
proceeds from the sale of RHG.
(e) Adjustment reflects an increase to total equity as a result of the net
proceeds from the sale of the RHG.
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NOTE 4 - REPRESENTS THE ADJUSTMENT OF THE HISTORICAL BALDWIN FINANCIAL
INFORMATION FOR THE NINE MONTHS ENDED MARCH 31, 2000.
(IN THOUSANDS, EXCEPT PER SHARE DATA)
FOR THE NINE MONTHS ENDED MARCH 30, 2000
---------------------------------------------------------
HISTORICAL RHG ADJUSTMENTS PRO FORMA
---------- --- ----------- ---------
Net sales ............................................. $ 147,717 $ 25,002 $ -- $ 122,715
Cost of goods sold .................................... 100,922 20,470 -- 80,452
--------- --------- --------- ---------
Gross profit .......................................... 46,795 4,532 -- 42,263
--------- --------- --------- ---------
Operating expenses:
General and administrative .......................... 17,589 1,991 -- 15,598
Selling ............................................. 13,814 1,589 -- 12,225
Engineering ......................................... 9,147 1,756 -- 7,391
Research and development ............................ 4,001 182 -- 3,819
Restructuring and other charges ..................... 5,490 2,475 -- 3,015
--------- --------- -- ------ ---------
50,041 7,993 -- 42,048
--------- --------- --------- ---------
Operating (loss) income ............................... (3,246) (3,461) -- 215
--------- --------- --------- ---------
Other (income) expense:
Interest expense .................................... 1,390 118 (276)(f) 996
Interest (income) ................................... (236) (5) -- (231)
Royalty (income), net ............................... (2,588) 0 -- (2,588)
Other expense (income), net ......................... 86 512 -- (426)
--------- --------- --------- ---------
(1,348) 625 (276) (2,249)
--------- --------- --------- ---------
(Loss) income before income taxes ..................... (1,898) (4,086) 276 2,464
--------- --------- --------- ---------
(Benefit) provision for income taxes .................. (4,829) (1,146) 105(g) (3,578)
--------- --------- --------- ---------
Net income (loss) ..................................... $ 2,931 $ (2,940) $ 171 $ 6,042
========= ========= ========= =========
Basic and diluted income (loss) per share ........... $ 0.19 $ (0.19) $ 0.01 $ 0.38
========= ========= ========= =========
Weighted average shares outstanding:
Basic and diluted ................................... 15,812 15,812 15,812 15,812
========= ========= ========= =========
(f) Adjustment reflects a decrease in interest expense attributable to a
$4,500,000 reduction in long-term during the nine months ended March 31,
2000, and was computed at an average rate of approximately 8.17%.
(g) Adjustment reflects an approximate average effective income tax rate of
38.0% for the nine months ended March 31, 2000.
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NOTE 5 - REPRESENTS THE ADJUSTMENT OF THE HISTORICAL BALDWIN FINANCIAL
INFORMATION FOR THE YEAR ENDED JUNE 30, 2000.
(IN THOUSANDS, EXCEPT PER SHARE DATA)
FOR THE YEAR ENDED JUNE 30, 2000
--------------------------------------------------------------
HISTORICAL RHG ADJUSTMENTS PRO FORMA
---------- --- ----------- ---------
Net sales ................................................... $ 198,602 $ 34,414 $ -- $ 164,188
Cost of goods sold .......................................... 135,146 28,201 -- 106,945
--------- --------- --------- ---------
Gross profit ................................................ 63,456 6,213 -- 57,243
--------- --------- --------- ---------
Operating expenses:
General and administrative ................................ 23,182 3,665 -- 19,517
Selling ................................................... 19,011 2,073 -- 16,938
Engineering ............................................... 12,209 2,309 -- 9,900
Research and development .................................. 5,753 337 -- 5,416
Restructuring and other charges ........................... 5,664 2,473 -- 3,191
--------- --------- --------- ---------
65,819 10,857 -- 54,962
--------- --------- --------- ---------
Operating (loss) income ..................................... (2,363) (4,644) -- 2,281
--------- --------- --------- ---------
Other (income) expense:
Interest expense .......................................... 1,819 159 (368)(h) 1,292
Interest (income) ......................................... (330) (5) -- (325)
Royalty (income), net ..................................... (3,111) 0 -- (3,111)
Other expense (income), net ............................... 98 585 -- (487)
--------- --------- --------- ---------
(1,524) 739 (368) (2,631)
--------- --------- --------- ---------
(Loss) income before income taxes ........................... (839) (5,383) 368 4,912
--------- --------- --------- ---------
(Benefit) provision for income taxes ........................ (5,675) (1,091) 132(i) (4,452)
--------- --------- --------- ---------
Net income (loss) ........................................... $ 4,836 $ (4,292) $ 236 $ 9,364
========= ========= ========= =========
Basic and diluted income (loss) per share ................. $ 0.31 $ (0.27) $ 0.02 $ 0.60
========= ========= ========= =========
Weighted average shares outstanding:
Basic and diluted ......................................... 15,652 15,652 15,652 15,652
========= ========= ========= =========
(h) Adjustment reflects a decrease in interest expense attributable to a
$4,500,000 reduction in long-term debt during the year ended June 30,
2000, and was computed at the fixed rate of 8.17%.
(i) Adjustment reflects an approximate average effective income tax rate of
36.0% for the fiscal year ended June 30, 2000.
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NOTE 6 - REPRESENTS THE ADJUSTMENT OF THE HISTORICAL BALDWIN FINANCIAL
INFORMATION FOR THE YEAR ENDED JUNE 30, 1999.
(IN THOUSANDS, EXCEPT PER SHARE DATA)
FOR THE YEAR ENDED JUNE 30, 1999
-----------------------------------------------------------------
HISTORICAL RHG ADJUSTMENTS PRO FORMA
---------- --- ----------- ---------
Net sales ............................................... $ 232,771 $ 50,814 $ -- $ 181,957
Cost of goods sold ...................................... 158,780 41,638 -- 117,142
--------- --------- --------- ---------
Gross profit ............................................ 73,991 9,176 -- 64,815
--------- --------- --------- ---------
Operating expenses:
General and administrative ............................ 23,985 3,201 -- 20,784
Selling ............................................... 18,525 2,675 -- 15,850
Engineering ........................................... 13,715 2,660 -- 11,055
Research and development .............................. 5,693 77 -- 5,616
Provision for loss on the disposition of
pre-press operations ............................... 2,400 -- 2,400
Restructuring and other charges ....................... 870 -- 870
--------- --------- --------- ---------
65,188 8,613 -- 56,575
--------- --------- --------- ---------
Operating income ........................................ 8,803 563 -- 8,240
--------- --------- --------- ---------
Other (income) expense:
Interest expense ...................................... 2,301 260 (368)(j) 1,673
Interest (income) ..................................... (453) (7) -- (446)
Royalty (income), net ................................. (3,468) -- (3,468)
Other expense (income), net ........................... 284 717 -- (433)
--------- --------- --------- ---------
(1,336) 970 (368) (2,674)
--------- --------- --------- ---------
Income (loss) before income taxes ....................... 10,139 (407) 368 10,914
--------- --------- --------- ---------
Provision (benefit) for income taxes .................... 4,514 (433) 164(k) 5,111
--------- --------- --------- ---------
Net income .............................................. $ 5,625 $ 26 $ 204 $ 5,803
========= ========= ========= =========
Basic income per share.................................. $ 0.33 $ 0.00 $ 0.01 $ 0.35
========= ========= ========= =========
Diluted income per share ............................... $ 0.33 $ 0.00 $ 0.01 $ 0.34
========= ========= ========= =========
Weighted average shares outstanding:
Basic ................................................. 16,801 16,801 16,801 16,801
========= ========= ========= =========
Diluted ............................................... 17,148 17,148 17,148 17,148
========= ========= ========= =========
(a) Adjustment reflects a decrease in interest expense attributable to a
$4,500,000 reduction in long-term debt during the year ended June 30,
1999, and was computed at the fixed rate of 8.17%.
(b) Adjustment reflects an approximate average effective income tax rate of
44.5% for the fiscal year ended June 30, 1999.
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NOTE 7 - REPRESENTS THE ADJUSTMENT OF THE HISTORICAL BALDWIN FINANCIAL
INFORMATION FOR THE YEAR ENDED JUNE 30, 1998.
(IN THOUSANDS, EXCEPT PER SHARE DATA)
FOR THE YEAR ENDED JUNE 30, 1998
HISTORICAL RHG ADJUSTMENTS PRO FORMA
Net sales ........................................... $ 231,408 $ 49,178 $ -- $ 182,230
Cost of goods sold .................................. 155,151 37,298 -- 117,853
--------- --------- --------- ---------
Gross profit ........................................ 76,257 11,880 -- 64,377
--------- --------- --------- ---------
Operating expenses:
General and administrative ........................ 24,634 3,471 -- 21,163
Selling ........................................... 18,723 2,852 -- 15,871
Engineering ....................................... 13,136 2,334 -- 10,802
Research and development .......................... 5,378 146 -- 5,232
--------- --------- --------- ---------
61,871 8,803 -- 53,068
--------- --------- --------- ---------
Operating income .................................... 14,386 3,077 -- 11,309
--------- --------- --------- ---------
Other (income) expense:
Interest expense .................................. 2,792 295 (368)(l) 2,129
Interest (income) ................................. (521) (21) -- (500)
Royalty (income), net ............................. (1,884) 0 -- (1,884)
Other expense (income), net ....................... (543) 678 -- (1,221)
--------- --------- --------- ---------
(156) 952 (368) (1,476)
--------- --------- --------- ---------
Income before income taxes .......................... 14,542 2,125 368 12,785
--------- --------- --------- ---------
Provision for income taxes .......................... 5,526 909 140(m) 4,757
--------- --------- --------- ---------
Net income .......................................... $ 9,016 $ 1,216 $ 228 $ 8,028
========= ========= ========= =========
Basic income per share ............................ $ 0.53 $ 0.07 $ 0.01 $ 0.47
========= ========= ========= =========
Diluted income per share .......................... $ 0.52 $ 0.07 $ 0.01 $ 0.46
========= ========= ========= =========
Weighted average shares outstanding:
Basic ............................................. 17,145 17,145 17,145 17,145
========= ========= ========= =========
Diluted ........................................... 17,480 17,480 17,480 17,480
========= ========= ========= =========
(l) Adjustment reflects a decrease in interest expense attributable to a
$4,500,000 reduction in long-term debt during the year ended June 30,
1998, and was computed at the fixed rate of 8.17%.
(m) Adjustment reflects an approximate average effective income tax rate of
38.0% for the fiscal year ended June 30, 1998.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned, hereunto duly authorized.
BALDWIN TECHNOLOGY COMPANY, INC.
(REGISTRANT)
By: /s/ VIJAY C. THARANI
-------------------------------------------------
VIJAY C. THARANI
(CHIEF FINANCIAL OFFICER)
Dated: October 11, 2001
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