8-K/A 1 g66710ae8-ka.txt NEW VALLEY 12/29/00 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K/A (AMENDMENT NO.1) CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): DECEMBER 29, 2000 NEW VALLEY CORPORATION ------------------------------------------------------ (Exact name of registrant as specified in its charter) DELAWARE ------------------------------------------------------ (State or other jurisdiction of incorporation) 1-2493 13-5482050 ------------------------ ------------------------------------ (Commission File Number) (I.R.S. Employer Identification No.) 100 S.E. SECOND STREET, MIAMI, FLORIDA 33131 ---------------------------------------- ---------- (Address of principal executive offices) (Zip Code) (305) 579-8000 ---------------------------------------------------- (Registrant's telephone number, including area code) (NOT APPLICABLE) ---------------------------------------------------------------- (Former name or former address, if changed since last report) 2 New Valley Corporation hereby amends the following items, financial statements, exhibits or other portions of its Current Report on Form 8-K, originally filed with the Securities and Exchange Commission on January 16, 2001 reporting the acquisition by a subsidiary of New Valley of additional Class A Interests in Western Realty Development LLC, as set forth in the pages attached hereto. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. (a) Financial Statements of Businesses Acquired. See Item 7(c) below. (b) Pro Forma Financial Information. The Pro Forma Condensed Consolidated Statements of Operations for the year ended December 31, 1999 and the nine months ended September 30, 2000 have been prepared giving effect to the purchase by a subsidiary of New Valley of 29/30ths of the Class A interests in Western Realty Development of Apollo Real Estate Fund III, L.P., the sale of New Valley's five shopping centers in August 1999, the recapitalization of the New Valley's capital stock which occurred on June 4, 1999, and the sale by Thinking Machines, New Valley's 73%-owned subsidiary, of its Darwin(R) software and services business which occurred on June 2, 1999. The Pro Forma Condensed Consolidated Balance Sheet as of September 30, 2000 has been prepared giving effect to the purchase of 29/30ths of the Class A interests in Western Realty Development. The pro forma financial information should be read in conjunction with New Valley's historical Consolidated Financial Statements and the related notes thereto contained in New Valley's Annual Report on Form 10-K for the year ended December 31, 1999 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2000. The Pro Forma Condensed Consolidated Statements of Operations were prepared as if the purchase of 29/30ths of the Class A interest in Western Realty Development, the sale of the shopping centers, the recapitalization, and the Thinking Machines sale had occurred at the beginning of the period presented. The Pro Forma Condensed Consolidated Balance Sheet as of September 30, 2000 was prepared as if the purchase of 29/30ths of the Class A interests in Western Realty Development had occurred on September 30, 2000. As a result of the purchase of the Class A interests, New Valley and its subsidiaries will be entitled to 99% of distributions from Western Realty Development and Apollo will be entitled to 1% of distributions. Accordingly, New Valley will no longer account for its interests in Western Realty Development using the equity method of accounting. Effective December 29, 2000, Western Realty Development became a consolidated subsidiary of New Valley. The pro forma financial information does not purport to show the results, which would actually have occurred had such transactions been completed as of the date and for the period presented or which may occur in the future. -2- 3 NEW VALLEY CORPORATION AND SUBSIDIARIES PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED)
FOR THE YEAR ENDED DECEMBER 31, 1999 ------------------------------------------------------------------------------------------ PRO FORMA ADJUSTMENTS ---------------------------------------------------------------- THINKING SHOPPING MACHINES RECAPITALIZATION CENTERS WRD HISTORICAL SALE (a) (b) SALE (c) ACQUISITION(d) PRO FORMA -------------- ------------ ----------------- ----------------- -------------- ----------- Revenues: Principal transactions, net........ $ 19,722 $ 19,722 Commissions........................ 38,815 38,815 Corporate finance fees............. 8,340 8,340 Gain on sale of investments, net... 2,373 2,373 Loss in joint venture.............. (16,513) $ 16,513 -- Real estate leasing................ 7,056 $ (3,618) 11,537 14,975 Gain on sale of real estate........ 3,828 (3,828) -- Computer sales and service......... 317 $ (317) -- Interest and dividends............. 5,812 6,858 12,670 Gain on sale of assets............. 4,028 (3,801) 227 Gain on sale of subsidiary stock... 4,256 4,256 Other income....................... 5,571 5,571 ----------- ------- -------- --------- ----------- Total revenues............. 83,605 (4,118) (7,446) 34,908 106,949 ----------- ------- -------- --------- ----------- Costs and expenses: Selling, general and administrative 99,627 (3,265) (2,568) 12,903 106,697 Interest........................... 8,954 (206) (1,979) 10,719 17,488 Real estate impairment charge ..... -- -- -- 11,561 11,561 ----------- ------- -------- --------- ----------- Total costs and expenses... 108,581 (3,471) (4,547) 35,183 135,746 ----------- ------- -------- --------- ----------- Loss from continuing operations before income taxes and minority interests (24,976) (647) (2,899) (275) (28,797) Income tax provision................. 80 80 Minority interests in income from continuing operations of consolidated subsidiaries....................... 667 (308) 2 361 ----------- ------- -------- --------- ----------- Loss from continuing operations...... (25,723) (339) (2,899) (277) (29,238) Discontinued operations: Gain on disposal of discontinued operations....................... 4,100 -- -- -- 4,100 ----------- ------- -------- --------- ----------- Income from discontinued operations....................... 4,100 -- -- -- 4,100 ----------- ------- -------- --------- ----------- Net loss............................. (21,623) (339) (2,899) (277) Dividend requirements on preferred shares............................. (37,759) -- $ 37,759 -- -- -- ----------- ------- ---------- -------- --------- ----------- Net loss applicable to Common Shares. $ (59,382) $ (339) $ 37,759 $ (2,899) $ (277) $ (25,138) =========== ======= ========== ======== ========= =========== Income (loss) per Common Share (basic and diluted): Continuing operations.............. $ (3.65) $ (1.26) Discontinued operations............ .24 .18 ----------- ----------- Net loss per Common Share.......... $ (3.41) $ (1.08) =========== =========== Number of shares used in computation. 17,433,105 $5,801,945 23,235,050 =========== ========== ===========
---------- (a) To eliminate the operations of Thinking Machines. (b) To adjust for the conversion of outstanding Preferred Shares and Common Shares to new Common Shares and Warrants. (c) To eliminate the operations of the five shopping centers and the gain on sale. (d) To account for New Valley's purchase of 29/30ths of the Class A interests in Western Realty Development. -3- 4 NEW VALLEY CORPORATION AND SUBSIDIARIES PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 ---------------------------------------------------------------- PRO FORMA ADJUSTMENTS ---------------------- WRD HISTORICAL ACQUISITION(a) PRO FORMA --------------------- -------------------- --------------------- Revenues: Principal transactions, net........................ $ 20,770 $ 20,770 Commissions........................................ 28,061 28,061 Corporate finance fees............................. 12,774 12,774 Gain on sale of investments, net................... 6,299 6,299 Income from joint venture.......................... 52,412 $ (52,412) -- Real estate leasing................................ 2,369 7,558 9,927 Interest and dividends............................. 5,641 3,460 9,101 Gain on sale of assets............................. 150 150 Gain on sale of WTI................................ -- 84,417 84,417 Other income....................................... 448 448 ---------- ----------- ---------- Total revenues................................. 128,924 43,023 171,947 ---------- ----------- ---------- Cost and expenses: Selling, general and administrative................ 77,816 5,163 82,979 Interest........................................... 5,449 37,182 42,631 ---------- ----------- ---------- Total costs and expenses....................... 83,265 42,345 125,610 ---------- ----------- ---------- Income from continuing operations before income taxes and minority interests....................... 45,659 678 46,337 Income tax provision.................................... 2 2 Minority interests in income from continuing operations of consolidated subsidiaries............ 835 886 1,721 ---------- ----------- ---------- Net income.............................................. $ 44,822 $ (208) $ 44,614 ========== =========== ======== Income per Common Share (basic): Net income per Common Share........................ $ 1.94 $ 1.93 ========== ========== Number of shares used in computation.................... 23,089,108 23,089,108 ========== ========== Income per Common Share (diluted): Net income per Common Shares....................... $ 1.94 $ 1.93 ========== ========== Number of shares used in computation.................... 23,127,455 23,127,455 ========== ==========
---------- (a) To account for New Valley's purchase of 29/30ths of the Class A interests in Western Realty Development. -4- 5 NEW VALLEY CORPORATION AND SUBSIDIARIES PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED)
SEPTEMBER 30, 2000 ---------------------------------------------------------------- PRO FORMA ADJUSTMENTS --------------------- WRD HISTORICAL ACQUISITION(a) PRO FORMA --------------------- -------------------- --------------------- ASSETS Current assets: Cash and cash equivalents.............................. $ 68,181 $ 1,053 $ 69,234 Investment securities available for sale............... 45,465 45,465 Trading securities owned............................... 12,599 12,599 Restricted assets...................................... 988 988 Receivable from clearing brokers....................... 20,185 20,185 Other current assets................................... 1,019 618 1,637 --------- ---------- --------- Total current assets............................... 148,437 1,671 150,108 --------- ---------- --------- Investment in real estate, net.............................. 55,342 76,767 132,109 Furniture and equipment, net................................ 8,093 177 8,270 Restricted assets........................................... 4,017 4,017 Long-term investments, net.................................. 6,506 6,506 Investment in joint venture................................. 45,675 (45,675) -- Other assets................................................ 5,305 644 5,949 --------- ---------- --------- Total assets....................................... $273,375 $ 33,584 $306,959 ========= ========== ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Margin loans payable................................... $ 6,195 $ 6,195 Current portion of notes payable....................... 8,367 $ 7,233 15,600 Accounts payable and accrued liabilities............... 30,862 3,087 33,949 Prepetition claims and restructuring accruals.......... 11,915 11,915 Income taxes........................................... 15,001 15,001 Securities sold, not yet purchased..................... 4,913 4,913 --------- ---------- --------- Total current liabilities.......................... 77,253 10,320 87,573 --------- ---------- --------- Notes payable............................................... 11,236 2,681 13,917 Other long-term liabilities................................. 47,131 20,312 67,443 Commitments and contingencies............................... Stockholders' equity: Common Shares, $.01 par value; 100,000,000 shares authorized; 22,942,663 shares outstanding............ 229 229 Additional paid-in capital............................. 868,023 868,023 Accumulated deficit.................................... (734,817) 271 (734,546) Unearned compensation on stock options................. (72) (72) Accumulated other comprehensive income................. 4,392 4,392 --------- ---------- --------- Total stockholders' equity.................................. 137,755 271 138,026 --------- ---------- --------- Total liabilities and stockholders' equity......... $273,375 $ 33,584 $306,959 ========= ========== =========
---------- (a) To account for New Valley's purchase of 29/30ths of the Class A interests in Western Realty Development. -5- 6 (c) The following Exhibits are provided in accordance with the provisions of Item 601 of Regulation S-K and are filed herewith unless otherwise noted. EXHIBIT INDEX 99.1 Consolidated Financial Statements of Western Realty Development LLC for the nine months ended September 30, 2000. 99.2 Consolidated Financial Statements of Western Realty Development LLC for the year ended December 31, 1999 and for the period February 20, 1998 (date of inception) to December 31, 1998 (incorporated by reference to Exhibit 99 to New Valley's Annual Report on Form 10-K for the year ended December 31, 1999). -6- 7 SIGNATURE 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. NEW VALLEY CORPORATION By: /s/ J. BRYANT KIRKLAND III -------------------------------------------- J. Bryant Kirkland III Vice President and Chief Financial Officer Date: February 2, 2001 -7-