1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________
FORM 8-K/A-1
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: July 24, 1995
(Date of Earliest Event Reported)
RPM, INC.
------------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Ohio 0-5132 34-6550857
---------------------------- ------------ -------------------
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
P.O. Box 777, 2628 Pearl Road, Medina, Ohio 44258
------------------------------------------- ------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (216) 273-5090
-----------------
The undersigned Registrant hereby amends the following items, financial
statements, exhibits or other portions of its Current Report on Form 8- K dated
July 24, 1995 as set forth in the pages attached hereto:
"Item 7. Financial Statements, Pro Forma Financial Information and Exhibits"
is hereby amended and restated to include certain updated financial statements
and pro forma financial information required in connection with the proposed
acquisition of Narragansett/DSI Acquisition Co., Inc. by the Registrant.
2
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
------------------------------------------------------------------
(a) Financial Statements of Businesses Acquired.
--------------------------------------------
Narragansett/DSI Acquisition Co., Inc. and Subsidiaries Consolidated
Financial Statements as of May 31, 1995 (Unaudited)
Consolidated Balance Sheet (Unaudited)
Consolidated Statements of Income (Unaudited)
Consolidated Statements of Cash Flows (Unaudited)
(b) Pro Forma Financial Information.
--------------------------------
RPM, Inc. and Subsidiaries and Narragansett/DSI Acquisition Co.,
Inc. -- Pro Forma Condensed Combined Financial Statements (Unaudited)
Pro Forma Condensed Combined Balance Sheet of RPM, Inc. and
Subsidiaries and Narragansett/DSI Acquisition Co., Inc. as of May 31,
1995 (Unaudited)
Pro Forma Condensed Combined Statement of Income of RPM, Inc. and
Subsidiaries and Narragansett/DSI Acquisition Co., Inc. for the Fiscal
Year ended May 31, 1995 (Unaudited)
(c) Exhibits.
---------
Exhibit No.
-----------
2.1 Plan and Agreement of Merger, dated July 24, 1995 (without Exhibits and
Schedules), by and among the Company, Subsidiary, NDSI and the Securityholders of
NDSI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
*
23.1 Consent of KPMG Peat Marwick LLP . . . . . . . . . . . . . . . . . . . . . . . . .
______________________
* Previously filed
3
NARRAGANSETT / DSI ACQUISITION CO., INC.
BALANCE SHEET (UNAUDITED)
MAY 31, 1995
(IN THOUSANDS)
ASSETS
Current Assets
Cash and short-term investments $953
Trade accounts receivable, net 7,143
Inventories 3,040
Prepaid and other current assets 2,701
--------
Total current assets 13,837
--------
Property, Plant and Equipment, at cost 13,411
Less: Accumulated Depreciation 4,374
--------
Property, plant and equipment, net 9,037
--------
Other Assets
Goodwill, net 20,410
Other 1,272
--------
Total other assets 21,682
--------
TOTAL ASSETS $44,556
========
LIABILITIES
Current Liabilities
Notes and accounts payable $3,577
Current portion of long-term debt 776
Accrued liabilities 4,693
Income taxes payable 1,135
--------
Total current liabilities 10,181
--------
Long-Term Debt, Less Current Maturities 14,241
Deferred Income Taxes and Other 1,074
--------
Total Liabilities 25,496
--------
SHAREHOLDERS' EQUITY
Common Shares 4
Paid-in-Capital 10,496
Cumulative Translation Adjustment 23
Retained Earnings 8,537
--------
Total Shareholders' Equity 19,060
--------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $44,556
========
4
Narragansett/DSI Acquisition Co., Inc.
Statement of Income (Unaudited)
Five Months Ended May 31,
-----------------------------
1995 1994
----------- -----------
Net sales $26,425,134 $23,990,359
Cost of sales 14,799,604 13,427,476
----------- -----------
Gross profit 11,625,530 10,562,883
Selling, general and administrative expenses 7,825,757 6,914,480
----------- -----------
Operating income 3,799,773 3,648,403
Interest expense, net (824,055) (1,176,058)
----------- -----------
Income before income taxes 2,975,718 2,472,345
Provision for income taxes 1,290,432 1,138,987
----------- -----------
Net income $1,685,286 $1,333,358
=========== ===========
5
Narragansett/DSI Acquisition Co., Inc.
Statement of Cash Flows (Unaudited)
Five Months Ended May 31,
----------------------------
1995 1994
---------- ----------
Cash Flows From Operating Activities:
Net income $1,685,286 $1,333,358
Items not affecting cash and other 1,081,318 1,392,080
Changes in operating working capital (1,515,948) 563,489
---------- ----------
1,250,656 3,288,927
---------- ----------
Cash Flows From Investing Activities:
Additions to property and equipment (533,508) (331,302)
---------- ----------
(533,508) (331,302)
---------- ----------
Cash Flows From Financing Activities:
Increase (decrease) in long-term debt 20,596 (2,504,202)
---------- ----------
20,596 (2,504,202)
---------- ----------
Net Increase (Decrease) in Cash 737,744 453,423
Cash at Beginning of Period 215,751 744,645
---------- ----------
Cash at End of Period $953,495 $1,198,068
========== ==========
6
PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS (UNAUDITED)
-------------------------------------------------------------
RPM, INC. AND SUBSIDIARIES
--------------------------
AND
---
NARRAGANSETT/DSI ACQUISITION CO., INC.
-------------------------------------
The following unaudited pro forma condensed combined balance sheet as of May
31, 1995, gives effect to the acquisition of Narragansett/DSI Acquisition Co.,
Inc. by RPM, Inc. and Subsidiaries as if the acquisition occurred on May 31,
1995. The following unaudited pro forma condensed statements of income combine
the condensed statement of income of RPM, Inc. and Subsidiaries and
Narragansett/DSI Acquisition Co., Inc. for the year ended May 31, 1995,
assuming the purchase of Narragansett/DSI Acquisition Co., Inc. had been
consummated as of June 1, 1994. The pro forma information is based on the
historical financial statements of RPM, Inc. and Subsidiaries and
Narragansett/DSI Acquisition Co., Inc. giving effect to the transaction under
the purchase method of accounting and the assumptions and adjustments in the
accompanying notes to the pro forma financial statements.
The pro forma statements have been prepared by RPM, Inc.'s management based
upon the financial statements of Narragansett DSI Acquisition Co., Inc.
included elsewhere herein. These pro forma statements may not be indicative of
the results that actually would have occurred if the combination had been in
effect on the dates indicated or which may be obtained in the future. The pro
forma financial statements should be read in conjunction with the audited
financial statements and notes of Narragansett/DSI Acquisition Co., Inc.
contained elsewhere herein.
7
PRO FORMA CONDENSED COMBINED
BALANCE SHEET (UNAUDITED)
MAY 31, 1995
(In Thousands Except Per Share Amounts)
Narragansett/
DSI Acquisition Pro Forma
RPM, Inc. Co., Inc. Adjustments Combined
--------- -------------- ------------- ----------
ASSETS
Current Assets
Cash and short-term investments $19,870 $953 (a) $47,000
(b) (15,017)
(c) (31,983) $20,823
Marketable securities, at cost 8,132 0 8,132
Trade accounts receivable, net 207,509 7,143 214,652
Inventories 169,154 3,040 172,194
Prepaid expenses and other current assets 16,637 2,701 19,338
--------- -------------- -------------- ----------
Total current assets 421,302 13,837 435,139
--------- -------------- -------------- ----------
(d) (92,783)
Investment in Subsidiaries 0 0 (c) 92,783 0
--------- -------------- -------------- ----------
Property, Plant and Equipment, at cost 360,706 13,411 374,117
Less: Accumulated Depreciation 156,657 4,374 (d) (3,800) 157,231
--------- -------------- -------------- ----------
Property, plant and equipment, net 204,049 9,037 3,800 216,886
--------- -------------- -------------- ----------
Other Assets
Goodwill, net 211,781 20,410 (d) 32,000 264,191
Other intangible assets, net 85,375 0 (d) 70,000 155,375
Equity in unconsolidated affiliates 14,857 0 14,857
Other 21,776 1,197 22,973
--------- -------------- -------------- ----------
Total other assets 333,789 21,607 102,000 457,396
--------- -------------- -------------- ----------
TOTAL ASSETS $ 959,140 $44,481 $105,800 $1,109,421
========= ============== ============== ==========
8
PRO FORMA CONDENSED COMBINED
BALANCE SHEET (UNAUDITED)
MAY 31, 1995
(In Thousands Except Per Share Amounts)
Narragansett/
DSI Acquisition Pro Forma
RPM, Inc. Co., Inc. Adjustments Combined
---------- --------------- ----------- --------
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Current Liabilities
Notes and accounts payable $70,207 $3,577 $73,784
Current portion of long-term debt 643 776 (b) ($776) 643
Accrued liabilities 74,138 4,694 78,832
Income taxes payable 6,088 1,135 7,223
---------- ---------- ----------- ----------
Total current liabilities 151,076 10,182 (776) 160,482
Long-Term Debt, Less Current Maturities 406,375 14,241 (a) 47,000
(b) (14,241) 453,375
Other Long-Term Liabilities 14,405 0 14,405
Deferred Income Taxes and Other 39,693 1,074 (d) 32,000 72,767
---------- ---------- ----------- ----------
Total Liablities 611,549 25,497 63,983 701,029
---------- ---------- ----------- ----------
SHAREHOLDERS' EQUITY
Common Shares 1,296 1 (c) 73 1,370
Paid-in-Capital 146,509 10,499 (c) 60,727
(d) (10,499) 207,236
Cumulative Translation Adjustment 580 23 (d) (23) 580
Retained Earnings 199,206 8,461 (d) (8,461) 199,206
---------- ---------- ---------- ----------
Total Shareholders' Equity 347,591 18,984 41,817 408,392
---------- ---------- ---------- ----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $959,140 $44,481 $105,800 $1,109,421
========== ========== ========== ==========
<FN>
(a) Reflects additional debt associated with the acquistion.
(b) Reflects the repayment of the debt of Narragansett/DSI Acquistion Co., Inc.
(c) Reflects the purchase of Narragansett/DSI Acquisition Co., Inc. for cash and 3,200,000 RPM, Inc. common shares.
(d) Reflects the adjustment to fair value for the assets acquired and the liabilities assumed with the difference
allocated to goodwill. The intangibles acquired include trademarks to be amortized over thirty-three years,
formulae and workforce, both to be amortized over twenty-five years and license and distribution agreements to be
amortized over twenty years.
9
PRO FORMA CONDENSED COMBINED
STATEMENT OF INCOME (UNAUDITED)
FOR THE YEAR ENDED MAY 31, 1995
(In Thousands Except Per Share Amounts)
Narragansett/
DSI Acquisition Pro Forma
RPM, Inc. Co., Inc. Adjustments Combined
---------- ---------------- ----------- -----------
Net sales $1,016,954 $68,089 $1,085,043
Cost of sales 581,246 38,286 619,532
---------- ---------------- ------------ -----------
Gross profit 435,708 29,803 465,511
Selling, general and adminstrative expenses 305,429 19,646 (b) $3,600 328,675
Interest expense, net 23,422 2,183 (a) 1,107 26,712
---------- ---------------- ------------ -----------
Income before income taxes 106,857 7,974 (4,707) 110,124
Provision for income taxes 45,758 3,492 (c) (1,392) 47,858
---------- ---------------- ------------ -----------
Net income $61,099 $4,482 ($3,315) $62,266
========== ================ ============ ===========
Average shares outstanding 57,243 3,200 60,443
========== ============ ===========
Primary earnings per share $1.07 $1.03
========== ===========
Fully diluted earnings per share $1.01 $0.98
========== ===========
<FN>
(a) Reflects the incremental interest expense RPM, Inc. would have incurred on the additional debt resulting from
the acquisition, along with the refinancing of acquired Narragansett/DSI Acquisition Co., Inc. debt, calculated
using the applicable borrowing rates during the period.
(b) Reflects the increase in amortization resulting from adjustments to the fair value of intangibles.
(c) Reflects the computation of taxes assuming Narragansett/DSI Acquisition Co., Inc. was included in RPM, Inc. and
Subsidiaries federal income tax return for the period and reflects the income tax effects related to the other pro
forma adjustments.
10
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 thereunto duly authorized.
RPM, INC.
/s/ Frank C. Sullivan
-------------------------------
Frank C. Sullivan,
Vice President and Chief
Financial Officer
DATE: September 18, 1995