1 ================================================================================ UNITED STATES 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 DATE OF REPORT (Date of earliest event reported): NOVEMBER 12, 1997 EVI, INC. (Exact name of registrant as specified in charter) DELAWARE 1-13086 04-2515019 (State of Incorporation) (Commission File No.) (I.R.S. Employer Identification No.) 5 POST OAK PARK, SUITE 1760, HOUSTON, TEXAS 77027-3415 (Address of Principal Executive Offices) (Zip Code) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (713) 297-8400 ================================================================================ Page 1 2 ITEM 5. OTHER EVENTS. On November 10, 1997, pursuant to the provisions of the Placement Agreement dated October 28, 1997, by and among EVI, Inc. (the "Company"), Morgan Stanley & Co. Incorporated, Donaldson, Lufkin & Jenrette Securities Corporation, Credit Suisse First Boston Corporation, Lehman Brothers Inc., Prudential Securities Incorporated and Schroder & Co. Inc. (collectively, the "Initial Purchasers"), the Company sold to the Initial Purchasers in a private placement an additional principal amount of $52.5 million of the Company's 5% Convertible Subordinated Preferred Equivalent Debentures due 2027 (the "Debentures") solely to cover over-allotments. The sale of the $52.5 million principal amount of Debentures to cover over-allotments was in addition to the $350 million aggregate principal amount of Debentures sold by the Company to the Initial Purchasers on November 3, 1997. The Debentures are more fully described in the Company's Form 8-K filed on November 5, 1997. PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The following tables set forth certain summary pro forma condensed consolidated financial data of the Company giving effect to the issuance and sale of the Debentures. The unaudited Pro Forma Condensed Consolidated Statements of Income give effect to (i) the acquisition by the Company of Tubular Corporation of America ("TCA") on August 5, 1996, (ii) the acquisition by the Company of GulfMark International, Inc. ("GulfMark") and its assets as of the date of acquisition on May 1, 1997 (the "GulfMark Retained Assets"), and (iii) the issuance and sale of the Debentures as if these transactions had occurred on January 1, 1996. The unaudited Pro Forma Condensed Consolidated Balance Sheet gives effect to the issuance and sale of the Debentures as if the transaction had occurred on June 30, 1997. The following summary pro forma condensed consolidated financial data and related notes thereto have been restated to reflect the Company's May 1997 two-for-one stock split. The pro forma information set forth below is not necessarily indicative of the results that actually would have been achieved had such transactions been consummated as of the dates reflected or that may be achieved in the future. The pro forma financial data does not give effect to the Company's proposed acquisitions of the Trico Industries, Inc. ("Trico"), BMW Monarch (Lloydminster) Ltd. ("BMW Monarch") and BMW Pump, Inc. ("BMW Pump") or various smaller acquisitions effected by the Company during 1997. This information should be read in conjunction with the Company's Management's Discussion and Analysis of Financial Condition and Results of Operations contained in its Annual Report on Form 10-K for the year ended December 31, 1996, as amended, and Quarterly Report on Form 10-Q for the quarter ended June 30, 1997, and the Company's, TCA's, and GulfMark Retained Assets' consolidated financial statements and related notes thereto previously filed. Page 2 3 PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 1997 (IN THOUSANDS) OFFERING HISTORICAL ADJUSTMENTS PRO FORMA ---------- ----------- ---------- ASSETS Current assets: Cash and cash equivalents........................... $ 54,973 $390,600(a) $ 445,573 Accounts receivable, net............................ 161,138 -- 161,138 Inventories......................................... 228,092 -- 228,092 Prepaid expenses and other.......................... 34,425 397(b) 34,822 --------- -------- ---------- Total current assets........................ 478,628 390,997 869,625 --------- -------- ---------- Property, plant and equipment, net.................... 230,761 -- 230,761 Goodwill, net......................................... 154,179 -- 154,179 Other assets.......................................... 32,777 11,503(b) 44,280 --------- -------- ---------- $ 896,345 $402,500 $1,298,845 ========= ======== ========== LIABILITIES AND STOCKHOLDERS' INVESTMENT Current liabilities: Short-term borrowings, primarily under revolving lines of credit.................................. $ 7,400 $ -- $ 7,400 Current maturities of long-term debt................ 7,774 -- 7,774 Accounts payable.................................... 117,702 -- 117,702 Other accrued liabilities........................... 86,774 -- 86,774 --------- -------- ---------- Total current liabilities................... 219,650 -- 219,650 --------- -------- ---------- Long-term debt........................................ 138,468 -- 138,468 Deferred income taxes, net............................ 27,343 -- 27,343 Other liabilities..................................... 25,044 -- 25,044 5% Convertible Subordinated Preferred Equivalent Debentures.......................................... -- 402,500(a) 402,500 Stockholders' investment: Common stock........................................ 50,614 -- 50,614 Capital in excess of par............................ 404,254 -- 404,254 Retained earnings................................... 191,740 -- 191,740 Foreign currency translation adjustment............. (8,828) -- (8,828) Treasury stock, at cost............................. (151,940) -- (151,940) --------- -------- ---------- Total stockholders' investment.............. 485,840 -- 485,840 --------- -------- ---------- $ 896,345 $402,500 $1,298,845 ========= ======== ========== Page 3 4 PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1996 (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) TCA HISTORICAL PRO FORMA ADJUSTMENTS EVI FOR THE GULFMARK ------------------------------ EVI HISTORICAL SIX MONTHS ENDED RETAINED ASSETS GULFMARK THE PRO CONSOLIDATED JUNE 30, 1996(C) HISTORICAL TCA MERGER OFFERING FORMA ------------ ---------------- --------------- ------ -------- -------- -------- Revenues........................ $478,020 $28,260 $6,994 $ -- $ -- $ -- $513,274 -------- ------- ------ ------ ------- -------- -------- Costs and expenses: Cost of sales................. 373,509 24,381 3,922 579(d) -- -- 402,391 Selling, general and administrative attributable to segments................. 51,885 1,006 2,068 197(e) -- -- 55,156 Corporate, general and administrative.............. 6,339 -- -- -- -- -- 6,339 -------- ------- ------ ------ ------- -------- -------- 431,733 25,387 5,990 776 -- -- 463,886 -------- ------- ------ ------ ------- -------- -------- Operating income................ 46,287 2,873 1,004 (776) -- -- 49,388 -------- ------- ------ ------ ------- -------- -------- Other income (expense): Interest expense.............. (16,454) (602) -- 602(f) -- (20,520)(g) (36,974) Interest income............... 2,163 -- -- -- -- -- 2,163 Other income (expense), net... (450) (742) 6,264 875(h) (6,264)(i) -- (317) -------- ------- ------ ------ ------- -------- -------- (14,741) (1,344) 6,264 1,477 (6,264) (20,520) (35,128) -------- ------- ------ ------ ------- -------- -------- Income (loss) before income taxes......................... 31,546 1,529 7,268 701 (6,264) (20,520) 14,260 Provision (benefit) for income taxes......................... 7,041 34 2,472 245(j) (2,192)(j) (7,182)(j) 418 -------- ------- ------ ------ ------- -------- -------- Income (loss) from continuing operations.................... $ 24,505 $ 1,495 $4,796 $ 456 $(4,072) $(13,338) $ 13,842 ======== ======= ====== ====== ======= ======== ======== Earnings per share from continuing operations......... $ 0.60 $ 0.34(k) Weighted average shares outstanding................... 40,706 41,298(k) Page 4 5 PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME FOR THE SIX MONTHS ENDED JUNE 30, 1997 (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) GULFMARK RETAINED ASSETS HISTORICAL FOR THE EVI THREE MONTHS HISTORICAL ENDED OFFERING EVI CONSOLIDATED MARCH 31, 1997(l) ADJUSTMENTS PRO FORMA ------------ ------------------ ----------- --------- Revenues.................................... $376,108 $ 818 $ -- $376,926 -------- ------- -------- -------- Costs and expenses: Cost of sales............................. 281,318 678 -- 281,996 Selling, general and administrative attributable to segments............... 39,072 688 -- 39,760 Corporate, general and administrative..... 3,509 -- -- 3,509 -------- ------- -------- -------- 323,899 1,366 -- 325,265 -------- ------- -------- -------- Operating income............................ 52,209 (548) -- 51,661 -------- ------- -------- -------- Other income (expense): Interest expense.......................... (8,166) -- (10,260)(g) (18,426) Interest income........................... 3,408 -- -- 3,408 Gain on sale of marketable securities..... 3,352 -- -- 3,352 Other income (expense), net............... 763 -- -- 763 -------- ------- -------- -------- (643) -- (10,260) (10,903) -------- ------- -------- -------- Income (loss) before income taxes........... 51,566 (548) (10,260) 40,758 Provision (benefit) for income taxes........ 18,159 100 (3,591)(j) 14,668 -------- ------- -------- -------- Income (loss) from continuing operations.... $ 33,407 $(648) $ (6,669) $ 26,090 ======== ======= ======== ======== Earnings per share from continuing operations................................ $ 0.73 $ 0.57(k) Weighted average shares outstanding......... 45,711 45,711(k) Page 5 6 NOTES TO PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS GENERAL The following notes set forth the assumptions used in preparing the unaudited pro forma financial statements. The pro forma adjustments are based on estimates made by the Company's management using information currently available. PRO FORMA ADJUSTMENTS The adjustments to the accompanying unaudited pro forma condensed consolidated balance sheet are described below: (a) To reflect the sale of the $402.5 million principal amount of the Debentures and the payment of approximately $11.9 million of related debt issuance costs. (b) To capitalize approximately $11.9 million of debt issuance costs related to the Debentures. The adjustments to the accompanying unaudited pro forma condensed consolidated statements of income are described below: (c) Reflects the results of TCA, which was acquired on August 5, 1996, from January 1, 1996, through June 30, 1996. Actual results of TCA are included in the Company's historical results from August 5, 1996. (d) Reflects an increase in depreciation expense associated with the assets of TCA, which was acquired on August 5, 1996 as a result of the $11.6 million fair value increase of property, plant, and equipment through the purchase price allocation. Such increase in property, plant, and equipment is being depreciated over an average life of ten years. (e) To record amortization expense relating to the estimated $15.8 million of excess of cost over fair value of tangible assets acquired in connection with the acquisition of TCA. Such excess of cost over fair value of net tangible assets acquired is being amortized over 40 years. (f) To reduce TCA's interest expense to reflect the Company's retirement of TCA's $7.7 million debt outstanding at the date of acquisition. (g) To adjust interest expense for the Debentures at the rate of 5% per annum and to record amortization expense of related debt issuance costs over the life of the Debentures. (h) To eliminate certain expenses incurred by TCA relating to the Company's acquisition of TCA. These expenses relate to amounts paid to an investment banking firm which represented TCA in the Company's acquisition of TCA. (i) To eliminate the $6,264,000 gain recorded in the GulfMark Retained Assets with respect to the sale by GulfMark of 600,000 shares of the Company's Common Stock in July 1996. The net proceeds from this sale were not received by the Company nor included in the GulfMark Retained Assets at the time of the acquisition of GulfMark by the Company. (j) To record the income tax provision (benefit) related to the effect of the pro forma adjustments at the statutory rate. (k) Pro forma weighted average shares outstanding reflect the average number of common shares outstanding for the period. The effect of the sale of the Debentures on fully-diluted earnings per share is anti-dilutive. At December 31, 1996, historical and pro forma shares of Common Stock outstanding, restated for the effect of the May 1997 two-for-one stock split, are 45,657,842. At June 30, 1997, historical and pro forma shares of Common Stock outstanding are 45,830,540. (l) Reflects the results of the GulfMark Retained Assets, which were acquired on May 1, 1997, from January 1, 1997, through March 31, 1997. Actual results of the GulfMark Retained Assets are included in the Company's historical results from May 1, 1997. Page 6 7 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. EVI, INC. Dated: November 12, 1997 /s/ Frances R. Powell ------------------------------ Frances R. Powell Vice President, Accounting and Controller Page 7