1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K/A AMENDMENT NO.3 TO CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report: November 20, 1998 NEENAH FOUNDRY COMPANY (Exact name of registrant as it appears in its charter) Wisconsin 333-28751 39-1580331 (State or other jurisdiction of (Commission File Number) (IRS Employer incorporation or organization) ID Number) 2121 Brooks Avenue, P.O. Box 729, Neenah, Wisconsin 54957 (Address of principal executive offices) (Zip Code) (920) 725-7000 (Registrant's telephone number, including area code) None (Former name or former address if changed since last report) 2 Neenah Foundry Company (the "Company") hereby amends Item 7 of the Company's Form 8-K/A dated November 19, 1998 reporting the Company's acquisition of all of the issued and outstanding stock of Dalton Corporation ("Dalton") to adjust the pro forma financial statements. The amended items are as follows: ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (b) Pro Forma Financial Information - Pro Forma Consolidated Balance Sheet as of June 30, 1998 and related notes 3 NEENAH FOUNDRY COMPANY UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET June 30, 1998 (In thousands) Historical ------------------------------------ Neenah Pro Forma Foundry Dalton ACP Adjustments Pro Forma --------- -------- --------- ------------- --------- ASSETS Current assets: Cash and cash equivalents ...................... $ 9,741 $ 226 $ -- $ 81 (a) $ 10,048 Accounts receivable, net ....................... 38,333 22,526 7,747 -- 68,606 Inventories .................................... 26,686 12,634 2,496 1,268 (b) 43,084 Other current assets ........................... 2,936 1,728 281 -- 4,945 Prepaid income taxes ........................... 1,155 -- 438 -- 1,593 Deferred income taxes .......................... 1,710 -- -- 2,425 (b) 4,135 --------- --------- --------- --------- --------- Total current assets ................. 80,561 37,114 10,962 3,774 132,411 Property, plant and equipment .................... 138,116 74,850 17,783 (38,623)(b) 192,126 Less accumulated depreciation .................... 9,820 41,403 4,533 (41,403)(b) 14,353 --------- --------- --------- --------- --------- 128,296 33,447 13,250 2,780 177,773 Identifiable intangible assets, net .............. 41,951 -- -- 27,919 (b) 69,870 Goodwill, net .................................... 147,487 -- 6,254 30,185 (b) 183,926 Other assets ..................................... 3,756 3,450 784 3,534 (a) (315)(b) 1,697 (c) (652)(d) 12,254 --------- --------- --------- --------- --------- $ 402,051 $ 74,011 $ 31,250 $ 68,922 $ 576,234 ========= ========= ========= ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable ............................... $ 14,558 $ 10,308 $ 3,853 -- $ 28,719 Income taxes payable ........................... -- 78 -- -- 78 Accrued liabilities ............................ 15,601 9,559 2,856 (237)(b) 27,779 Current portion of long-term debt .............. 827 36,264 1,746 (37,844)(a) 2,250 (a) 3,243 --------- --------- --------- --------- --------- Total current liabilities ............ 30,986 56,209 8,455 (35,831) 59,819 Long-term debt ................................... 251,715 -- 19,083 (12,248)(a) 116,750 (a) (6,746)(e) 368,554 Postretirement benefit obligations ............... 5,137 -- -- -- 5,137 Deferred income taxes ............................ 54,592 -- 2,405 12,868 (b) (260)(d) 69,605 Other liabilities ................................ 2,151 2,945 -- 2,892 (b) 7,988 --------- --------- --------- --------- --------- Total liabilities .................... 344,581 59,154 29,943 77,425 511,103 Commitments and contingencies STOCKHOLDERS' EQUITY: Preferred stock, par value $100 per share -- authorized 3,000 shares, no shares issued or outstanding ................... -- -- -- -- -- Common stock, par value $100 per share -- authorized 11,000 shares, issued and outstanding 1,000 shares ............ 100 350 4,254 (350)(b) (4,254)(e) 100 Additional paid in capital ..................... 48,750 11,385 (4,481) (11,385)(b) 4,254 (e) 6,746 (e) 55,269 Retained earnings .............................. 8,620 41,815 1,534 (41,815)(b) (392)(d) 9,762 Treasury stock ................................. -- (38,446) -- 38,446 (b) -- Minimum pension liability adjustment, net of tax -- (247) -- 247 (b) -- --------- --------- --------- --------- --------- Total stockholders' equity ........... 57,470 14,857 1,307 (8,503) 65,131 --------- --------- --------- --------- --------- $ 402,051 $ 74,011 $ 31,250 $ 68,922 $ 576,234 ========= ========= ========= ========= ========= See accompanying Notes to Unaudited Pro Forma Consolidated Balance Sheet. 4 NEENAH FOUNDRY COMPANY NOTES TO UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET (Dollars in thousands) (a) Adjustment to reflect the net effect on cash of the Dalton and ACP Acquisitions, as follows: Proceeds from Tranche A Term Loan $ 20,000 Proceeds from Tranche B Term Loan 70,000 Proceeds from Multi-Draw Acquisition Revolver 29,000 Less deferred financing cost (1,697) --------- 117,303 Purchase price: Acquisition of Dalton common stock $ (62,995) Fees and expenses incurred in connection with the Dalton Acquisition (601) Satisfaction of Dalton outstanding indebtedness (including $2,749 borrowed subsequent to June 30, 1998) (39,013) Satisfaction of ACP outstanding indebtedness (including $785 borrowed subsequent to June 30, 1998) (14,613) --------- (117,222) --------- $ 81 ========= (b) Adjustment to reflect the allocation of the $63,596 purchase cost of Dalton: Net assets acquired at historical cost $ 14,857 Fair value adjustments(1): Eliminate LIFO reserve 973 Inventory step-up 295 Write-up property, plant, and equipment(2) 2,780 Record intangible assets(3) 27,919 Adjustment to accrued ESOP contribution 1,006 Adjustment to pension liability (1,092) Deferred compensation (2,935) Other 51 Record deferred income taxes associated with the valuation of Dalton assets and liabilities (10,443) Cost in excess of net assets acquired- goodwill(4) 30,185 --------- $ 63,596 ========= - --------------------- (1) For all other recorded assets and liabilities of Dalton, the historical book values were estimated to approximate their fair values at the balance sheet date. (2) The fair value of property, plant and equipment was based on an outside appraisal completed in connection with the acquisition. The write-up has been allocated to the fixed asset categories as shown below. The remaining economic useful lives used in depreciating the new basis of the depreciable fixed assets are also indicated: Remaining Economic Allocated excess Useful Life ---------------- ------------------ Land $ 183 n/a Buildings and improvements (781) 10 to 35 years Machinery and equipment 3,378 5 to 15 years 5 (3) The fair value of intangible assets was based on an outside valuation completed in connection with the Dalton Acquisition For purposes of the proforma financial information, the valuation of the intangible assets and amortization periods are shown below: Amortization Fair Value Period ---------- ------------ Assembled workforce $ 5,522 5 years Customer list 12,341 10 years Backlog 1,239 4 months Trade name 5,053 40 years Facilities in place 3,764 40 years (4) An amortization period of 40 years will be used for goodwill because the period expected to be benefited exceeds 40 years. - --------------------- (c) Adjustment to record the transaction costs of $1,697 (made up of financing costs). For purposes of the proforma consolidated balance sheet, the amount is shown as part of other assets and amortized over 5 years, the life of the Term Loan. (d) Adjustment to write off deferred financing costs related to outstanding indebtedness of ACP which was satisfied in connection with the ACP Acquisition. (e) Adjustment to account for the contribution of the capital stock of ACP and the contribution of the subordinated debt of ACP to capital. 6 SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this amendment to be signed on its behalf by the undersigned hereunto duly authorized. NEENAH FOUNDRY COMPANY DATE: November 20, 1998 /s/ Gary LaChey --------------------------------- Gary LaChey Vice President-Finance, Secretary & Treasurer (Principal Financial Officer and Duly Authorized Officer)