Delaware (State or other jurisdiction of Incorporation) |
1-9102 (Commission File No.) |
77-0100596 (IRS Employer Identification No.) |
Explanatory Note | ||||||||
Item 2.01. Completion of Acquisition or Disposition of Assets. | ||||||||
Item 9.01. Financial Statements and Exhibits. | ||||||||
SIGNATURES | ||||||||
EXHIBIT INDEX |
Pro Forma | Pro Forma | |||||||||||
(In thousands, except share and per share data) | Historical | Adjustments | As Adjusted | |||||||||
Sales |
$ | 368,991 | $ | (110,362) | (a) | $ | 258,629 | |||||
Cost of Sales |
(275,186 | ) | 79,910 | (a) | (195,276 | ) | ||||||
Gross Profit |
93,805 | (30,452 | ) | 63,353 | ||||||||
Selling, General and Administrative Expenses |
(75,859 | ) | 29,350 | (a) | (46,509 | ) | ||||||
Other Income, Net |
11,206 | (1,842) | (a) | 9,364 | ||||||||
Income from Continuing Operations before Interest, Income Taxes and
Equity in Earnings of Joint Venture |
29,152 | (2,944 | ) | 26,208 | ||||||||
Interest Expense, Net |
(1,848 | ) | (71) | (a) | (1,919 | ) | ||||||
Income from Continuing Operations before Income Taxes and Equity in
Earnings of Joint Venture |
27,304 | (3,015 | ) | 24,289 | ||||||||
Provision for Income Taxes |
(9,574 | ) | 1,662 | (b) | (7,912 | ) | ||||||
Income from Continuing Operations before Equity in Earnings of Joint
Venture |
17,730 | (1,353 | ) | 16,377 | ||||||||
Equity in Earnings of Joint Venture, Net of Taxes |
4,583 | | 4,583 | |||||||||
Net Income from Continuing Operations |
$ | 22,313 | $ | (1,353 | ) | $ | 20,960 | |||||
Net Income per Share from Continuing Operations: |
||||||||||||
Basic |
$ | 2.58 | $ | (.16 | ) | $ | 2.42 | |||||
Diluted |
$ | 2.53 | $ | (.15 | ) | $ | 2.38 | |||||
Weighted-Average Shares: |
||||||||||||
Basic |
8,641,965 | 8,641,965 | ||||||||||
Diluted |
8,814,700 | 8,814,700 | ||||||||||
Pro Forma | Pro Forma | |||||||||||
(In thousands, except share and per share data) | Historical | Adjustments | As Adjusted | |||||||||
Sales |
$ | 704,574 | $ | (209,807) | (a) | $ | 494,767 | |||||
Cost of Sales |
(522,467 | ) | 152,910 | (a) | (369,557 | ) | ||||||
Gross Profit |
182,107 | (56,897 | ) | 125,210 | ||||||||
Selling, General and Administrative Expenses |
(145,954 | ) | 57,009 | (a) | (88,945 | ) | ||||||
Other Income, Net |
7,141 | (5,004) | (a) | 2,137 | ||||||||
Income from Continuing Operations before Interest, Income Taxes and
Equity in Earnings of Joint Venture |
43,294 | (4,892 | ) | 38,402 | ||||||||
Interest Expense, Net |
(5,219 | ) | (301) | (a) | (5,520 | ) | ||||||
Income from Continuing Operations before Income Taxes and Equity in
Earnings of Joint Venture |
38,075 | (5,193 | ) | 32,882 | ||||||||
Provision for Income Taxes |
(14,470 | ) | 2,961 | (b) | (11,509 | ) | ||||||
Income from Continuing Operations before Equity in Earnings of Joint
Venture |
23,605 | (2,232 | ) | 21,373 | ||||||||
Equity in Earnings of Joint Venture, Net of Taxes |
9,005 | | 9,005 | |||||||||
Net Income from Continuing Operations |
$ | 32,610 | $ | (2,232 | ) | $ | 30,378 | |||||
Net Income per Share from Continuing Operations: |
||||||||||||
Basic |
$ | 3.88 | $ | (.27 | ) | $ | 3.61 | |||||
Diluted |
$ | 3.80 | $ | (.26 | ) | $ | 3.54 | |||||
Weighted-Average Shares: |
||||||||||||
Basic |
8,410,563 | 8,410,563 | ||||||||||
Diluted |
8,579,194 | 8,579,194 | ||||||||||
Pro Forma | Pro Forma | |||||||||||
(In thousands, except share and per share data) | Historical | Adjustments | As Adjusted | |||||||||
Sales |
$ | 605,853 | $ | (199,623) | (a) | $ | 406,230 | |||||
Cost of Sales |
(457,442 | ) | 143,421 | (a) | (314,021 | ) | ||||||
Gross Profit |
148,411 | (56,202 | ) | 92,209 | ||||||||
Selling, General and Administrative Expenses |
(137,468 | ) | 54,104 | (a) | (83,364 | ) | ||||||
Pension Plan Curtailment / Settlement |
(12,817 | ) | | (12,817 | ) | |||||||
Other Income, Net |
17,861 | (3,029) | (a) | 14,832 | ||||||||
Income from Continuing Operations before Interest, Income Taxes and
Equity in Earnings of Joint Venture |
15,987 | (5,127 | ) | 10,860 | ||||||||
Interest Expense, Net |
(5,313 | ) | (209) | (a) | (5,522 | ) | ||||||
Income from Continuing Operations before Income Taxes and Equity in
Earnings of Joint Venture |
10,674 | (5,336 | ) | 5,338 | ||||||||
Provision for Income Taxes |
(8,006 | ) | 3,842 | (b) | (4,164 | ) | ||||||
Income from Continuing Operations before Equity in Earnings of Joint
Venture |
2,668 | (1,494 | ) | 1,174 | ||||||||
Equity in Earnings of Joint Venture, Net of Taxes |
10,791 | | 10,791 | |||||||||
Net Income from Continuing Operations |
$ | 13,459 | $ | (1,494 | ) | $ | 11,965 | |||||
Net Income per Share from Continuing Operations: |
||||||||||||
Basic |
$ | 1.63 | $ | (.18 | ) | $ | 1.45 | |||||
Diluted |
$ | 1.59 | $ | (.18 | ) | $ | 1.41 | |||||
Weighted-Average Shares: |
||||||||||||
Basic |
8,270,487 | 8,270,487 | ||||||||||
Diluted |
8,448,987 | 8,448,987 | ||||||||||
Pro Forma | Pro Forma | |||||||||||
(In thousands, except share and per share data) | Historical | Adjustments | As Adjusted | |||||||||
Sales |
$ | 600,495 | $ | (190,280) | (a) | $ | 410,215 | |||||
Cost of Sales |
(434,007 | ) | 134,013 | (a) | (299,994 | ) | ||||||
Gross Profit |
166,488 | (56,267 | ) | 110,221 | ||||||||
Selling, General and Administrative Expenses |
(127,392 | ) | 49,435 | (a) | (77,957 | ) | ||||||
Other Income, Net |
10,852 | (2,902) | (a) | 7,950 | ||||||||
Income from Continuing Operations before Interest, Income Taxes and
Equity in Earnings of Joint Venture |
49,948 | (9,734 | ) | 40,214 | ||||||||
Interest Expense, Net |
(6,645 | ) | (110) | (a) | (6,755 | ) | ||||||
Income from Continuing Operations before Income Taxes and Equity in
Earnings of Joint Venture |
43,303 | (9,844 | ) | 33,459 | ||||||||
Provision for Income Taxes |
(14,017 | ) | 4,174 | (b) | (9,843 | ) | ||||||
Income from Continuing Operations before Equity in Earnings of Joint
Venture |
29,286 | (5,670 | ) | 23,616 | ||||||||
Equity in Earnings of Joint Venture, Net of Taxes |
614 | | 614 | |||||||||
Net Income from Continuing Operations |
$ | 29,900 | $ | (5,670 | ) | $ | 24,230 | |||||
Net Income per Share from Continuing Operations: |
||||||||||||
Basic |
$ | 3.77 | $ | (.71 | ) | $ | 3.06 | |||||
Diluted |
$ | 3.67 | $ | (.70 | ) | $ | 2.97 | |||||
Weighted-Average Shares: |
||||||||||||
Basic |
7,925,229 | 7,925,229 | ||||||||||
Diluted |
8,149,460 | 8,149,460 | ||||||||||
Pro Forma | Pro Forma | |||||||||||||||
(In thousands) | Historical | Adjustments | As Adjusted | |||||||||||||
Assets |
||||||||||||||||
Current Assets |
||||||||||||||||
Cash and Cash Equivalents |
$ | 47,691 | $ | 120,000 | (c) | $ | 167,691 | |||||||||
Restricted Cash |
9,001 | | 9,001 | |||||||||||||
Receivables, Net |
187,532 | (55,335) | (d) | 132,197 | ||||||||||||
Inventories |
118,377 | (46,323) | (d) | 72,054 | ||||||||||||
Deferred Income Taxes |
17,598 | (3,623) | (e) | 13,975 | ||||||||||||
Prepaid Expenses and Other Current Assets |
20,987 | (2,585) | (d) | 18,402 | ||||||||||||
Total Current Assets |
401,186 | (12,134 | ) | 413,320 | ||||||||||||
Investments in Joint Ventures |
20,525 | (2,138) | (d) | 18,387 | ||||||||||||
Property, Plant and Equipment, Net |
157,401 | (26,710) | (f) | 130,691 | ||||||||||||
Deferred Income Taxes |
| 563 | (e) | 563 | ||||||||||||
Intangible Assets, Net |
13,328 | (11,687) | (g) | 1,641 | ||||||||||||
Other Assets |
36,160 | | 36,160 | |||||||||||||
Total Assets |
$ | 628,600 | $ | (27,838 | ) | $ | 600,762 | |||||||||
Liabilities and Stockholders Equity |
||||||||||||||||
Current Liabilities |
||||||||||||||||
Current Portion of Long-Term Debt |
$ | 18,333 | $ | | $ | 18,333 | ||||||||||
Trade Payables |
58,768 | (19,094) | (h) | 39,674 | ||||||||||||
Accrued Liabilities |
73,596 | (8,112) | (h) | 65,484 | ||||||||||||
Income Taxes Payable |
7,747 | (3,394) | (i) | 4,353 | ||||||||||||
Total Current Liabilities |
158,444 | (30,600 | ) | 127,844 | ||||||||||||
Long-Term Debt, Less Current Portion |
82,717 | | 82,717 | |||||||||||||
Other Long-Term Liabilities |
65,061 | 3,480 | (h) | 68,541 | ||||||||||||
Total Liabilities |
306,222 | (27,120 | ) | 279,102 | ||||||||||||
Stockholders Equity |
||||||||||||||||
Common Stock |
28,755 | | 28,755 | |||||||||||||
Additional Paid-In Capital |
30,339 | | 30,339 | |||||||||||||
Retained Earnings |
345,599 | 1,827 | (k) | 347,426 | ||||||||||||
Accumulated Other Comprehensive Loss |
(31,837 | ) | (2,545) | (j) | (34,382 | ) | ||||||||||
Treasury Stock |
(50,478 | ) | | (50,478 | ) | |||||||||||
Total Stockholders Equity |
322,378 | (718 | ) | 321,660 | ||||||||||||
Total Liabilities and Stockholders Equity |
$ | 628,600 | $ | (27,838 | ) | $ | 600,762 | |||||||||
a. | Subsequent to the close, the Company will no longer have revenues and related costs associated with the disposed business. These adjustments are recorded to eliminate the net sales, cost of sales and operating expenses which the Company believes are directly attributable to the disposed business and will not continue after the completion of the transaction. | ||
b. | The provision for income taxes has been adjusted on a pro forma basis reflecting the effective income tax rate associated with the Performance Coatings & Finishes Group. | ||
c. | To record estimated proceeds received assuming transaction took place at June 4, 2006. | ||
d. | To eliminate the assets sold to PPG. | ||
e. | To eliminate an estimate of the deferred tax assets to be realized at the close of the transaction. | ||
f. | To eliminate the property, plant and equipment, net sold to PPG, excluding the retained properties. | ||
g. | To eliminate an estimate of intangible assets relating to the disposition of the Performance Coatings & Finishes Group. | ||
h. | To eliminate the liabilities assumed by PPG and to accrue $4,200 potential pension curtailment and $1,000 estimated transaction expenses associated with the sale. | ||
i. | To eliminate an estimate of the income tax payable associated with the Performance Coatings & Finishes Group. | ||
j. | To eliminate the amount of accumulated translation adjustment to be realized at the close of the transaction. |
k. | To record the preliminary gain on sales of the disposed assets: |
Estimated Proceeds from PPG |
$ | 120,000 | ||
Accrued Transaction Expenses |
(1,000 | ) | ||
Accrued Potential Pension Curtailment |
(4,200 | ) | ||
Net Assets Disposed |
(115,061 | ) | ||
Accumulated Translation Adjustment |
2,545 | |||
Potential Gain |
2,284 | |||
Provision for Income Taxes |
(457 | ) | ||
$ | 1,827 | |||
Exhibit Number | Description of Exhibit | |
2.1*
|
Amended and Restated Asset Purchase Agreement dated as of June 28, 2006, as amended as of July 31, 2006, by and among Ameron International Corporation and certain of its subsidiaries and PPG Industries, Inc. | |
99.1*
|
Press Release dated August 2, 2006 |
* | Previously filed as Exhibits 2.1 and 99.1, respectively, to the Form 8-K dated August 7, 2006 and incorporated herein by reference. |
AMERON INTERNATIONAL CORPORATION |
||||
Date: August 16, 2006 | By: | /s/ Javier Solis | ||
Javier Solis | ||||
Senior Vice President & Secretary |
Exhibit Number | Description of Exhibit | |
2.1*
|
Asset Purchase Agreement dated as of June 28, 2006, as amended as of July 31, 2006, by and among Ameron International Corporation and certain of its subsidiaries and PPG Industries, Inc. | |
99.1*
|
Press Release dated August 2, 2006 |
* | Previously filed as Exhibits 2.1 and 99.1, respectively, to the Form 8-K dated August 7, 2006 and incorporated herein by reference. |