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FORM 8-K-A
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 1, 1996
ELTRON INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
CALIFORNIA
(State or other jurisdiction of incorporation)
0-23342 95-4302537
(Commission File Number) (I.R.S. Employer Identification No.)
41 MORELAND ROAD 93065
SIMI VALLEY, CALIFORNIA (Zip Code)
(Address of principal executive offices)
(805) 579-1800
(Registrant's telephone number, including area code)
N.A.
(Former name or former address, if changed since last report)
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Item 7. Financial Statements and Exhibits
(a) Financial Statements of Business Acquired
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Please refer to Exhibit 10.2 for financial statements of the business
merged with.
(b) Pro Forma Financial Information
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On March 1, 1996, Eltron International, Inc. ("Eltron") acquired all of
the issued and outstanding stock of RJS, Incorporated ("RJS") from the
shareholders of RJS in a merger (the "Merger"). RJS is a manufacturer of
high-speed bar code printers, verified printing systems and bar code verifiers.
The Merger has been accounted for as a pooling of interest for financial
reporting purposes. In connection with the Merger, Eltron issued 322,991 shares
of its common stock and paid cash consideration of approximately $776,000 in
satisfaction of dissenters' rights.
The unaudited pro forma financial statements reflect the following: (i)
Eltron common shares issued and cash paid in connection with the merger; (ii)
the elimination of interest expense and all outstanding borrowings under RJS's
line of credit which was paid in full and terminated subsequent to the Merger;
(iii) the elimination of sales made between Eltron and RJS; and (iv) the tax
effect of the foregoing adjustments. Expenses totaling approximately $450,000
related to the Merger have not been included in the unaudited pro forma
financial statements. In the opinion of the Company's management, all
adjustments necessary to present fairly such pro forma financial statements have
been made based on the terms and structure of the Merger. However, the
preparation of pro forma financial information requires many assumptions which
may differ from actual operations. These unaudited pro forma financial
statements are not necessarily indicative of the actual results which the
Company would have reported had the Merger occurred as of January 1, 1993, 1994
or 1995, nor do they purport to indicate the results of future operations.
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Item 7. Financial Statements and Exhibits
(b) Pro Forma Financial Information (continued)
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UNAUDITED PRO FORMA COMBINED BALANCE SHEET
DECEMBER 31, 1995(a)
(In thousands)
HISTORICAL
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ELTRON PRO FORMA
INTERNATIONAL, INC. RJS, INC. ADJUSTMENTS PRO FORMA
------------------- --------- ----------- ---------
ASSETS:
CURRENT ASSETS:
Cash .............................. $ 719 $ 10 $(1,469)(b),(c),(f) $ (740)
Short term investments ............ 15,552 -- -- 15,552
Accounts receivable, net .......... 7,208 2,189 -- 9,397
Inventories ....................... 9,191 2,316 -- 11,507
Deferred tax assets ............... 573 468 -- 1,041
Other current assets .............. 1,012 135 -- 1,147
------- ------ ------- -------
Total current assets ............ 34,255 5,118 (1,469) 37,904
Property and equipment, net ......... 3,594 175 -- 3,769
Excess cost over net assets
acquired .......................... 1,188 (226) -- 962
Other assets ........................ 324 345 -- 669
------- ------ ------- -------
$39,361 $5,412 $(1,469) $43,304
======= ====== ======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY:
CURRENT LIABILITIES:
Borrowings under line of credit ... $ -- $ 768 $ (768)(c) $ --
Accounts payable and
accrued liabilities ............. 5,633 2,287 -- 7,920
Accrued taxes payable ............. -- -- 28 (d) 28
------- ------ ------- -------
Total current liabilities ....... 5,633 3,055 (740) 7,948
LONG TERM OBLIGATION ................ 751 -- -- 751
SHAREHOLDERS' EQUITY:
Common stock ...................... 23,816 175 (776)(b) 23,215
Cumulative translation
adjustment ...................... (14) -- -- (14)
Retained earnings ................. 9,175 2,182 47 (e) 11,404
------- ------ ------- -------
Total shareholders' equity ........ 32,977 2,357 (729) 34,605
------- ------ ------- -------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY ............................ $39,361 $5,412 $(1,469) $43,304
======= ====== ======= =======
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(a) Balance Sheet as of September 30, 1995 has been included for RJS.
(b) Adjusted to reflect RJS dissenters' shares purchased by Eltron to
connection with in the Merger.
(c) Adjusted to eliminate borrowings under RJS's line of credit.
(d) Adjusted to record the tax effect of pro forma adjustments.
(e) Net impact of pro forma adjustments on retained earnings.
(f) Adjusted to reflect interest on paydown of borrowings under RJS's line
of credit.
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Item 7. Financial Statements and Exhibits
(b) Pro Forma Financial Information (continued)
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UNAUDITED PRO FORMA COMBINED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995(a)
(In thousands except per share amounts)
HISTORICAL
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ELTRON
INTERNATIONAL PRO FORMA
INC. RJS, INC. ADJUSTMENTS PRO FORMA
-------------- --------- ----------- ---------
Sales ................................ $42,362 $12,764 $(154)(b) $54,972
Cost of Sales ......................... 22,114 8,164 (154)(b) 30,124
------- ------ ----- -------
Gross Margin .......................... 20,248 4,600 -- 24,848
Operating Expenses:
Selling, general and administrative ... 8,472 2,942 -- 11,414
Research and development .............. 2,028 904 -- 2,932
------- ------ ----- -------
Income from operations ................ 9,748 754 -- 10,502
Other (income) expense, net ........... (365) 107 (75)(c) (333)
------- ------ ----- -------
Income before income taxes ............ 10,113 647 75 10,835
Provision (benefit) for income taxes... 3,744 (103) 28 (e) 3,669
------- ------ ----- -------
Net income ............................ $ 6,369 $ 750 $ 47 $ 7,166
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Pro Forma net income per share ........ $ 0.91 $ 0.98
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Shares used in computing
net income per share ................. 7,003 323 (d) 7,326
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(a) Statements of Operations for the year ended September 30, 1995 have
been included for RJS.
(b) Adjusted to eliminate sales made by Eltron to RJS.
(c) Adjusted to reflect paydown of outstanding borrowings under RJS's line
of credit.
(d) Adjusted to reflect shares issued by Eltron in the Merger.
(e) Adjusted to record the tax effect of the foregoing adjustments.
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ITEM 7. Financial Statements and Exhibits
(b) Pro Forma Financial Information (continued)
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UNAUDITED PRO FORMA COMBINED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1994(a)
(In Thousands Except Per Share Amounts)
HISTORICAL
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ELTRON
INTERNATIONAL PRO FORMA
INC. RJS, INC. ADJUSTMENTS PRO FORMA
------------- --------- ----------- ---------
Sales ........................................ $17,530 $11,863 $(117)(b) $29,276
Cost of Sales................................. 8,754 7,616 (117)(b) 16,253
------- ------- ----- -------
Gross Margin.................................. 8,776 4,247 -- 13,023
Operating Expenses:
Selling, general and administrative .......... 3,149 2,796 -- 5,945
Research and development...................... 1,172 713 -- 1,885
------- ------- ----- -------
Income from operations........................ 4,455 738 -- 5,193
Other (income) expense, net................... (80) 54 (79)(c) (105)
------- ------- ----- -------
Income before income taxes.................... 4,535 684 79 5,298
Provision (benefit) for income taxes.......... 1,622 (26) 28 (e) 1,624
------- ------- ----- -------
Net income.................................... $ 2,913 $ 710 $ 51 $ 3,674
======= ======= ===== =======
Pro Forma net income per share................ $ 0.50 $ 0.59
======= =======
Shares used in computing net income per share. 5,866 323 (d) 6,189
======= ===== =======
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(a) Statements of Operations for the year ended September 30, 1994 have
been included for RJS.
(b) Adjusted to eliminate sales made by Eltron to RJS.
(c) Adjusted to reflect paydown of outstanding borrowings
under RJS's line of credit.
(d) Adjusted to reflect shares issued by Eltron in the Merger.
(e) Adjusted to record the tax effect of the foregoing adjustments.
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ITEM 7. Financial Statements and Exhibits
(b) Pro Forma Financial Information (continued)
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UNAUDITED PRO FORMA COMBINED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1993(a)
(In Thousands Except Per Share Amounts)
HISTORICAL
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ELTRON
INTERNATIONAL PRO FORMA
INC. RJS, INC. ADJUSTMENTS PRO FORMA
------------- --------- ----------- ---------
Sales ............................................ $6,505 $11,541 $ (57((b) $17,989
Cost of Sales .................................... 3,610 7,408 (57)(b) 10,961
------ ------- ----- -------
Gross Margin ..................................... 2,895 4,133 -- 7,028
Operating Expenses:
Selling, general and administrative .............. 1,458 2,667 -- 4,125
Research and development ......................... 434 1,158 -- 1,592
------ ------- ----- -------
Income from operations ........................... 1,003 308 -- 1,311
Other (income) expense, net....................... 131 107 (119)(c) 119
------ ------- ----- -------
Income before income taxes ....................... 872 201 119 1,192
Provision for income taxes ....................... 57 16 8 (e) 81
------ ------- ----- -------
Net income ....................................... $ 815 $ 185 $ 111 $ 1,111
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Pro Forma net income per share ................... $ 0.26 $ 0.32
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Shares used in computing net income per share .... 3,196 323 (d) 3,519
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(a) Statements of Operations for the year ended September 30, 1993 have
been included for RJS.
(b) Adjusted to eliminate sales made by Eltron to RJS.
(c) Adjusted to eliminate interest expense on borrowings under RJS's line
of credit.
(d) Adjusted to reflect shares issued by Eltron in the Merger.
(e) Adjusted to record the tax effect of the foregoing adjustments.
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ITEM 7. Financial Statements and Exhibits
(c) Exhibits:
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10.2 RJS, Incorporated and Subsidiary, Consolidated
Financial Statements for the Years Ended September 30,
1995 and 1994.
10.3 Amendment to Merger and Plan of Reorganization dated
March, 1996 by and among Eltron International, Inc.,
Eltron Acquisition Corp., RJS, Incorporated, and the
shareholders of RJS.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ELTRON INTERNATIONAL, INC.
Date: May 14, 1996 By:_________________________________
Daniel C. Toomey, Jr.
Chief Financial Officer
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EXHIBIT INDEX
Exhibit Page No.
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10.2 RJS, Incorporated and Subsidiary, Consolidated Financial Statements
for the Years Ended September 30, 1995 and 1994.
10.3 Amendment to Merger and Plan of Reorganization dated March, 1996 by
and among Eltron International, Inc., Eltron Acquisition Corp.,
RJS, Incorporated, and the shareholders of RJS.
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