SECURITIES AND EXCHANGE COMMISSION
Washington D.C 20549
FORM 8-K/A
CURRENT REPORT AMENDMENT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Commission File Number 0-27618
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Date of Report (Date of earliest event reported): October 17, 1996
COLUMBUS McKINNON CORPORATION
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(Exact name of registrant as specified in its charter)
NEW YORK 16-0547600
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
140 JOHN JAMES AUDUBON PARKWAY, AMHERST, NEW YORK 14228-1197
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (716) 689-5400
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NOT APPLICABLE
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(Former name, former address and former fiscal year, if changed
since last report)
Item 7. Financial Statements and Exhibits
(a) Financial statements of the business acquired
Audited Consolidated Balance Sheets of Spreckels Industries, Inc.
(doing business as Yale International, Inc. "Yale") as of June 30, 1996 and 1995
and audited Consolidated Statements of Operations, Consolidated Statements of
Stockholders' Equity, and Consolidated Statements of Cash Flows for the fiscal
years ended June 30, 1996 and 1995, the eleven month period ended June 30, 1994
and the one month period ended July 31, 1993 are incorporated herein by
reference from the Yale Annual Report on Form 10-K for the fiscal year ended
June 30, 1996.
(b) Pro forma financial information
L Acquisition Corporation, a Delaware corporation (the "Purchaser"), a
wholly owned subsidiary of Columbus McKinnon Corporation, a New York corporation
(the "Company" or "Columbus McKinnon") , has completed its $24.00 per share cash
tender offer for all of the outstanding shares of Class A Common Stock
("Shares") of Spreckels Industries, Inc. ("Spreckels") (doing business as Yale
International, Inc. "Yale") (including the associated common stock purchase
rights) and all outstanding warrants (the "Warrants") of Spreckels to purchase
Shares. The tender offer expired at 12:00 midnight New York City time on October
16, 1996. On the close of the tender offer on October 17, 1996, 5,059,055 Shares
(including the associated common stock purchase rights) and 241,162 $1.00
Warrants, 725,971 $15.00 Warrants, 284,164 $11.67 Warrants and 215,000 $9.17
Warrants had been tendered and acquired by Purchaser. The Shares and Warrants so
tendered represent approximately 72.7 percent of the outstanding Shares
calculated on a fully diluted basis. Pursuant to the terms of the Agreement and
Plan of Merger, the Company will cause the Purchaser to be merged with and into
Spreckels and the holders of the outstanding Shares will have the right to
receive $24.00 per Share in cash without interest thereon and each holder of a
Warrant will be entitled to receive upon exercise of such Warrant in accordance
with the terms thereof (including payment of the Exercise Price) $24.00 in cash.
The following unaudited pro forma combined condensed balance sheet as
of September 29, 1996 combines the historical consolidated balance sheet
information of Columbus McKinnon and Yale as if the acquisition were consummated
on September 29, 1996. The unaudited pro forma combined condensed statements of
income for the year ended March 31, 1996 and for the six months ended September
29, 1996 combine the historical consolidated income statement information of
Columbus McKinnon (on a pro forma basis as though the November 1, 1995
acquisition of Lift-Tech International, Inc. ("Lift-Tech") and the February 23,
1996 initial public offering had occurred as of April 1, 1995) and the
historical consolidated income statement of Yale (only for continuing operations
which have been acquired by Columbus McKinnon) as if the Yale acquisition had
been consummated on April 1, 1995, the beginning of the earliest period
presented. The transaction is being recorded under the purchase method of
accounting, giving effect to the pro forma adjustments and assumptions described
in the accompanying notes.
The pro forma financial statements have been prepared by management of
Columbus McKinnon based on historical information and preliminary assumptions
and estimates. Accordingly, the pro forma financial statements may not be
indicative of the actual financial position and results of operations of
Columbus McKinnon that would have resulted if the acquisition of Yale and
related borrowings had been effected on the dates indicated, nor does it purport
to represent the financial position and results of operations of Columbus
McKinnon for any future period. The pro forma financial statements should be
read in conjunction with Columbus McKinnon's audited consolidated financial
statements and notes thereto.
UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEET
COLUMBUS McKINNON CORPORATION AND
SPRECKELS INDUSTRIES, INC. (doing business as Yale International, Inc.)
(in thousands)
September 29, 1996
____________________________________________________
Columbus Pro Forma
McKinnon Yale Adjustments Combined
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ASSETS
Current assets:
Cash and cash equivalents ............................ $ 11,238 $ 15,117 $ (20,255) 3 $ 6,100
Trade accounts receivable ............................ 37,724 29,001 -- 66,725
Inventories .......................................... 48,464 40,087 1,658 1 90,209
Net assets of discontinued operations
held for sale ...................................... -- 2,462 -- 2,462
Prepaid expenses and other current
assets ............................................. 1,770 9,380 -- 11,150
--------- --------- --------- ---------
Total current assets .................................... 99,196 96,047 (18,597) 176,646
Net property, plant and equipment ....................... 31,799 25,237 -- 57,036
Goodwill and other intangibles, net ..................... 43,348 30,855 177,927 2,3,4 252,130
Marketable securities ................................... 12,356 -- -- 12,356
Deferred taxes on income ................................ 3,481 3,981 6,337 1 13,799
Other assets ............................................ 1,741 371 -- 2,112
--------- --------- --------- ---------
Total assets ............................................ $ 191,921 $ 156,491 $ 165,667 $ 514,079
========= ========= ========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable to banks ............................... $ -- $ 167 $ -- $ 167
Trade accounts payable ............................... 12,794 11,726 -- 24,520
Accrued liabilities .................................. 14,557 20,690 (1,250) 1,5 33,997
Current portion of long-term debt .................... 1,276 -- 15,750 2 17,026
--------- --------- --------- ---------
Total current liabilities ............................... 28,627 32,583 14,500 75,710
Long-term debt, less current portion .................... 7,234 70,000 180,056 1,2,5 257,290
Other non-current liabilities ........................... 8,971 28,019 -- 36,990
--------- --------- --------- ---------
Total liabilities ....................................... 44,832 130,602 194,556 369,990
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Shareholders' equity:
Common stock ......................................... 137 65 (65) 4 137
Additional paid-in capital ........................... 94,843 76,539 (76,539) 4 94,843
Retained earnings .................................... 57,910 (50,796) 47,796 1,4,5 54,910
ESOP guarantee ....................................... (4,772) -- -- (4,772)
Other ................................................ (1,029) 81 (81) 4 (1,029)
--------- --------- --------- ---------
Total shareholders' equity .............................. 147,089 25,889 (28,889) 144,089
--------- --------- --------- ---------
Total liabilities and
shareholders' equity ................................. $ 191,921 $ 156,491 $ 165,667 $ 514,079
========= ========= ========= =========
SEE NOTES TO UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEET
NOTES TO UNAUDITED PRO FORMA COMBINED CONDENSED BALANCE SHEET
1. Restate the net assets of Yale to their estimated fair values at the date
of acquisition. Columbus McKinnon is in the process of finalizing fair
values for this purpose and final balances may not be available for several
months.
2. Record the debt incurred to purchase all outstanding common shares,
warrants, and stock options of Yale. With respect to warrants and options,
this reflects the spread between the exercise price and the tender offer
per share price.
3. Record the direct costs of acquisition and financing as a reduction of cash
and establishment of an intangible asset.
4. Eliminate the equity of Yale.
5. Refinance the acquired $71.75 million (at market value) of 11 1/2% Yale
bonds and replace with $76.75 million of 8 1/2% bank debt. The premium and
direct costs associated with this debt extinguishment have been recorded on
the books of Columbus McKinnon as an extraordinary item, net of the related
tax benefit.
UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENTS OF INCOME
COLUMBUS McKINNON CORPORATION AND
SPRECKELS INDUSTRIES, Inc. (doing business as Yale International, Inc.)
(in thousands)
Year Ended March 31, 1996
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Columbus Pro Forma
McKinnon * Yale ** Adjustments Combined
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Net sales ................................. $252,672 $185,001 $ -- $437,673
Cost of products sold ..................... 179,015 130,812 (1,091) A 308,736
-------- -------- -------- --------
Gross profit .............................. 73,657 54,189 1,091 128,937
Selling, general & administrative
expenses ............................... 39,640 37,774 (5,968) A 71,446
Amortization of intangibles ............... 1,822 1,697 6,750 D 10,269
Environmental remediation costs ........... 675 -- -- 675
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42,137 39,471 782 82,390
-------- -------- -------- --------
Income from operations .................... 31,520 14,718 309 46,547
Interest and debt expense ................. 522 6,229 17,796 B,C,E 24,547
Interest and other income, net ............ 319 -- -- 319
-------- -------- -------- --------
Income before taxes ....................... 31,317 8,489 (17,487) 22,319
Income tax expense ........................ 12,772 3,578 (4,295) F 12,055
-------- -------- -------- --------
Net income from continuing operations ..... $ 18,545 $ 4,911 $(13,192) $ 10,264
======== ======== ======== ========
Net income per share ...................... $ 1.41 $ 0.78
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Average number of common shares
outstanding ............................ 13,188 13,188
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Six Months Ended September 29, 1996
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Columbus Pro Forma
McKinnon Yale ** Adjustments Combined
-------- -------- -------- --------
Net sales ................................. $130,161 $ 95,034 $ -- $225,195
Cost of products sold ..................... 90,960 66,505 (644) A 156,821
-------- -------- -------- --------
Gross profit .............................. 39,201 28,529 644 68,374
Selling, general & administrative
expenses ............................... 20,711 17,919 (2,464) A 36,166
Amortization of intangibles ............... 899 857 3,375 D 5,131
Environmental remediation costs ........... -- -- -- --
-------- -------- -------- --------
21,610 18,776 911 41,297
-------- -------- -------- --------
Income from operations .................... 17,591 9,753 (267) 27,077
Interest and debt expense ................. 479 4,021 7,992 B,C,E 12,492
Interest and other income, net ............ 415 -- -- 415
-------- -------- -------- --------
Income before taxes ....................... 17,527 5,732 (8,259) 15,000
Income tax expense ........................ 7,284 2,077 (1,953) F 7,408
-------- -------- -------- --------
Net income from continuing operations ..... $ 10,243 $ 3,655 $ (6,306) $ 7,592
======== ======== ======== ========
Net income per share $ 0.77 $ 0.57
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Average number of common shares
outstanding 13,218 13,218
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* The Columbus McKinnon historical statement of income is pro forma to
reflect the Lift-Tech acquisition (which occurred on November 1, 1995) and
the Initial Public Offering (which occurred February 23, 1996) as though
both occurred on April 1, 1995, which is the beginning of fiscal 1996.
** The Yale historical statements of income are pro forma to reflect only
continuing operations which were acquired by Columbus McKinnon.
SEE NOTES TO UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENTS OF INCOME
NOTES TO UNAUDITED PRO FORMA COMBINED CONDENSED STATEMENTS OF INCOME
A. Record certain synergies which are within the direct control of Columbus
McKinnon, including: a) vertical integration by supplying Yale with chain
and forgings manufactured by Columbus McKinnon; b) freight consolidation
under Columbus McKinnon contracts and the use of Columbus McKinnon's
private trucking fleet; and c) elimination of the Yale's corporate office
and related expenses.
B. Remove Yale interest expense.
C. Record estimated interest expense at 8 1/2% on new borrowings to fund
the Yale acquisition and to refinance the acquired Yale bonds.
D. Record the amortization of nondeductible goodwill, which is based on the
excess of the purchase price of Yale shares, warrants, and stock options
(including directly related costs) over the fair market value of net assets
acquired. The goodwill will be amortized on a straight-line basis over a
period of 25 years.
E. Record the amortization of deferred financing costs as debt expense,
resulting from the debt incurred to acquire Yale. The deferred financing
costs will be amortized on a straight-line basis over the period of the
related debt, which is five to seven years.
F. Record the tax effect of the above pro forma adjustments (excluding
adjustment D) using a 40% effective rate.
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.
COLUMBUS McKINNON CORPORATION
Dated: December 31, 1996 By: /s/ Robert L. Montgomery, Jr.
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Robert L. Montgomery, Jr.
Executive Vice President and
Chief Financial Officer