-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Pob0Q5//HBlU/Ghb83YkyiCsadO4bEEyYHSJbFi+AXbBhScWoLEvNu2ntvHSTX2L Dk8efKYj47MDScvFVBNd3Q== 0000950116-06-000726.txt : 20060308 0000950116-06-000726.hdr.sgml : 20060308 20060307214249 ACCESSION NUMBER: 0000950116-06-000726 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060129 ITEM INFORMATION: Completion of Acquisition or Disposition of Assets ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060308 DATE AS OF CHANGE: 20060307 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CHECKPOINT SYSTEMS INC CENTRAL INDEX KEY: 0000215419 STANDARD INDUSTRIAL CLASSIFICATION: COMMUNICATIONS EQUIPMENT, NEC [3669] IRS NUMBER: 221895850 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-11257 FILM NUMBER: 06671525 BUSINESS ADDRESS: STREET 1: 101 WOLF DR STREET 2: P O 188 CITY: THOROFARE STATE: NJ ZIP: 08086 BUSINESS PHONE: 856-384-2460 MAIL ADDRESS: STREET 1: 101 WOLF DRIVE CITY: THOROFARE, STATE: NJ ZIP: 08086 8-K/A 1 eight-ka.txt 8-K/A UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K/A CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): January 29, 2006 CHECKPOINT SYSTEMS, INC. (Exact name of Registrant as specified in its Articles of Incorporation) Pennsylvania 22-1895850 - ------------------------------------------- --------------------------------- (State of Incorporation) (IRS Employer Identification No.) 101 Wolf Drive, PO Box 188, Thorofare, New Jersey 08086 - ------------------------------------------------- --------------------------------- (Address of principal executive offices) (Zip Code) 856-848-1800 ------------------------------------------------------------------------------------ (Registrant's telephone number, including area code) N/A ------------------------------------------------------------------------------------ (Former name or address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.01 Completion of Acquisition or Disposition of Assets - ------------------------------------------------------------- In a Current Report on Form 8-K filed by the Company on January 31, 2006, the Company reported that it had completed the sale of its barcode systems (BCS) businesses ("the disposal group") to SATO, a global leader in barcode printing, labeling, and EPC/RFID solutions. The material reported in such Current Report is incorporated herein by reference. The disposal group has been accounted for as discontinued operations in conformity with Statement of Financial Accounting Standards No. 144 "Accounting for the Impairment or Disposal of Long-lived Assets" and this Form 8K/A is being filed to provide the financial information required by Item 9.01 (b) of Form 8K. Item 9.01. Financial Statements and Exhibits. - -------------------------------------------- (b) Pro forma financial information The following unaudited pro forma consolidated financial information is derived by the application of the pro forma adjustments to the historical financial statements of the Company. The unaudited pro forma consolidated statement of operations for the year ended December 26, 2004 gives effect to the pro forma events as if such events occurred on December 29, 2003. As we have accounted for the disposal group as discontinued operations in our Form 10-Q filing for the period ended September 25, 2005, we have not included the pro forma statements for the consolidated statement of operations for the thirty-nine weeks ended. The consolidated balance sheet as of September 25, 2005 filed in our Form 10-Q for the quarter ended September 25, 2005, has presented the net assets of the disposal group as assets and liabilities held for sale. The pro forma consolidated balance sheet reflects the closing transaction as if such a transaction occurred on the end of quarter date. As a result of our classification of the disposal group as discontinued operations, the unaudited pro forma consolidated statement of operations for the years ended December 28, 2003 and December 29, 2002 are presented to show the disposal group as discontinued operations of the Company. The proforma statements should not be considered indicative of actual balance sheet data that would have been achieved had the sale of the barcode systems business been consummated on the quarter end date and do not purport to indicate the balance sheet data as of any future date. (d) Exhibits - ------------ 99.1 Unaudited Pro Forma Consolidated Balance Sheet for the period ended September 25, 2005. Unaudited Pro Forma Consolidated Statements of Operations for the years ended December 26, 2004, December 28, 2003, and December 29, 2002 to reflect the discontinued operations treatment of the disposed businesses. 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. CHECKPOINT SYSTEMS, INC. Dated: March 7, 2006 By: /s/ W. Craig Burns ------------------------- Title: Executive Vice President, Chief Financial Officer and Treasurer Checkpoint Systems, Inc. Index of Exhibits Exhibit Number Description - ------ ----------- 99.1 Unaudited Pro Forma Consolidated Balance Sheet for the period ended September 25, 2005. Unaudited Pro Forma Consolidated Statements of Operations for the years ended December 26, 2004, December 28, 2003, and December 29, 2002 to reflect the discontinued operations treatment of the disposed businesses. EX-99 2 ex99-1.txt EXHIBIT 99.1
================================================================================================================================= CHECKPOINT SYSTEMS, INC. PRO FORMA CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 25, 2005 (UNAUDITED) (AMOUNTS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) AS REPORTED ADJUSTMENTS PRO FORMA - --------------------------------------------------------------------------------------------------------------------------------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 75,259 $ 35,032 (a) $ 110,291 Restricted Cash -- 2,025 (a) 2,025 Accounts receivable, net of allowance of $11,814 151,964 -- 151,964 Inventories 84,561 -- 84,561 Other current assets 26,002 -- 26,002 Deferred income taxes 17,812 -- 17,812 Assets of discontinued operations held for sale 36,920 (36,920)(b) -- - --------------------------------------------------------------------------------------------------------------------------------- Total Current Assets 392,518 137 392,655 - --------------------------------------------------------------------------------------------------------------------------------- REVENUE EQUIPMENT ON OPERATING LEASE, net 5,141 -- 5,141 PROPERTY, PLANT, AND EQUIPMENT, net 76,586 -- 76,586 GOODWILL 167,684 -- 167,684 OTHER INTANGIBLES, net 34,702 -- 34,702 DEFERRED INCOME TAXES 19,993 -- 19,993 OTHER ASSETS 15,643 -- 15,643 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 712,267 $ 137 $ 712,404 ================================================================================================================================= LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Short-term borrowings and current portion of long term debt $ 4,566 $ -- $ 4,566 Accounts payable 41,255 6,214 (c) 47,469 Accrued compensation and related taxes 30,251 1,740 (d) 31,991 Other accrued expenses 32,117 1,000 (d) 33,117 Income taxes 17,546 1,030 (e) 18,576 Unearned revenues 21,857 -- 21,857 Restructuring reserve 11,641 -- 11,641 Other current liabilities 14,581 -- 14,581 Liabilities of discontinued operations held for sale 11,400 (11,400)(b) -- - --------------------------------------------------------------------------------------------------------------------------------- Total Current Liabilities 185,214 (1,416) 183,798 - --------------------------------------------------------------------------------------------------------------------------------- LONG-TERM DEBT, LESS CURRENT MATURITIES 48,981 -- 48,981 ACCRUED PENSIONS 66,449 -- 66,449 DEFERRED INCOME TAXES 17,677 -- 17,677 OTHER LONG-TERM LIABILITIES 4,292 -- 4,292 MINORITY INTEREST 1,166 -- 1,166 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock, no par value, 500,000 shares authorized, none issued Common stock, par value $.10 per share, 100,000,000 shares authorized, issued 40,430,797 4,043 -- 4,043 Additional capital 320,904 -- 320,904 Retained earnings 100,782 1,553 (f) 102,335 Common stock in treasury, at cost, 2,035,912 shares (20,621) -- (20,621) Accumulated other comprehensive (loss) income (16,620) -- (16,620) - --------------------------------------------------------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 388,488 1,553 390,041 - --------------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 712,267 $ 137 $ 712,404 =================================================================================================================================
(a) To recognize proceeds from SATO. Included in this cash amount is $2,025 of restricted cash. (b) To record the removal of net assets, goodwill allocated to these businesses, and intangible assets held for sale. (c) To record accounts payable attributable to the disposal group, previously held for sale, not transferred in the sale agreement. (d) To recognize estimated transaction costs. (e) To recognize estimated income tax expense on the estimated gain at an effective rate of 52.3%, net of deferred taxes. This rate was impacted by $1,476 of non-deductible goodwill. (f) To record estimated gain on disposition: ===================================================================================== Cash proceeds $ 37,057 Less net assets sold (28,652) Less estimated transaction costs and purchase price adjustments (2,740) Less goodwill allocated to businesses disposed and intangible assets (2,408) ------------------------------------------------------------------------------------- Pro forma gain before taxes 3,257 Less estimated income tax expense (1,704) ------------------------------------------------------------------------------------- Pro forma gain 1,553 =====================================================================================
=============================================================================================================== CHECKPOINT SYSTEMS, INC. PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) TWELVE MONTHS (52 WEEKS) ENDED --------------------------------------------------------- DECEMBER 26, 2004 --------------------------------------------------------- AS REPORTED ADJUSTMENTS (A) PRO FORMA - --------------------------------------------------------------------------------------------------------------- Net revenues $ 778,679 $ (107,121) $ 671,558 Cost of revenues 441,079 (79,439) 361,640 - --------------------------------------------------------------------------------------------------------------- Gross profit 337,600 (27,682) 309,918 Selling, general, and administrative expenses 253,345 (16,909) 236,436 Research and development 28,962 (437) 28,525 Restructuring expense (3,016) -- (3,016) Asset impairment 16,748 (14,780) 1,968 Goodwill impairment expense 34,696 (34,696) -- Litigation settlement 19,950 -- 19,950 - --------------------------------------------------------------------------------------------------------------- Operating (loss) income (13,085) 39,140 26,055 Interest income 1,567 -- 1,567 Interest expense 6,980 -- 6,980 Other gain, net 219 -- 219 - --------------------------------------------------------------------------------------------------------------- (Loss) earnings from continuing operations before income taxes and minority interest (18,279) 39,140 20,861 Income taxes 1,823 1,692 3,515 Minority interest 90 -- 90 - --------------------------------------------------------------------------------------------------------------- (Loss) earnings from continuing operations $ (20,192) $ 37,448 $ 17,256 =============================================================================================================== BASIC EARNINGS PER SHARE: (Loss) earnings from continuing operations $ (0.55) $ 0.47 DILUTED EARNINGS PER SHARE: (Loss) earnings from continuing operations $ (0.55) $ 0.46 ===============================================================================================================
(a) The adjustment column is to show the sale of the Company's barcode systems (BCS) business to SATO as discontinued operations.
=============================================================================================================== CHECKPOINT SYSTEMS, INC. PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) TWELVE MONTHS (52 WEEKS) ENDED --------------------------------------------------------- DECEMBER 28, 2003 --------------------------------------------------------- AS REPORTED ADJUSTMENTS (A) PRO FORMA - --------------------------------------------------------------------------------------------------------------- Net revenues $ 723,262 $ (106,396) $ 616,866 Cost of revenues 412,951 (74,818) 338,133 - --------------------------------------------------------------------------------------------------------------- Gross profit 310,311 (31,578) 278,733 Selling, general, and administrative expenses 233,133 (16,692) 216,441 Research and development 15,860 (302) 15,558 Restructuring expense 7,125 -- 7,125 Asset impairment 1,507 -- 1,507 - --------------------------------------------------------------------------------------------------------------- Operating income 52,686 (14,584) 38,102 Interest income 1,487 -- 1,487 Interest expense 11,076 -- 11,076 Other gain, net 1,319 -- 1,319 - --------------------------------------------------------------------------------------------------------------- Earnings from continuing operations before income taxes and minority interest 44,416 (14,584) 29,832 Income taxes 15,160 (4,925) 10,235 Minority interest 103 -- 103 - --------------------------------------------------------------------------------------------------------------- Earnings from continuing operations 29,153 (9,659) 19,494 =============================================================================================================== BASIC EARNINGS PER SHARE: Earnings from continuing operations $ 0.88 $ 0.59 DILUTED EARNINGS PER SHARE: Earnings from continuing operations $ 0.82 $ 0.58 ===============================================================================================================
(a) The adjustment column is to show the sale of the Company's barcode systems (BCS) business to SATO as discontinued operations.
=============================================================================================================== CHECKPOINT SYSTEMS, INC. PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) TWELVE MONTHS (52 WEEKS) ENDED --------------------------------------------------------- DECEMBER 29, 2002 --------------------------------------------------------- AS REPORTED ADJUSTMENTS (A) PRO FORMA - --------------------------------------------------------------------------------------------------------------- Net revenues $ 639,486 $ (103,682) $ 535,804 Cost of revenues 371,144 (72,580) 298,564 - --------------------------------------------------------------------------------------------------------------- Gross profit 268,342 (31,102) 237,240 Selling, general, and administrative expenses 208,768 (16,352) 192,416 Research and development 9,387 (278) 9,109 Restructuring expense (312) -- (312) Asset impairment 466 -- 466 - --------------------------------------------------------------------------------------------------------------- Operating income 50,033 (14,472) 35,561 Interest income 1,861 -- 1,861 Interest expense 15,141 -- 15,141 Other gain, net 928 -- 928 - --------------------------------------------------------------------------------------------------------------- Earnings from continuing operations before income taxes and minority interest 37,681 (14,472) 23,209 Income taxes 15,562 (4,876) 10,686 Minority interest 82 -- 82 - --------------------------------------------------------------------------------------------------------------- Earnings from continuing operations 22,037 (9,596) 12,441 =============================================================================================================== BASIC EARNINGS PER SHARE: Earnings from continuing operations $ 0.68 $ 0.39 DILUTED EARNINGS PER SHARE: Earnings from continuing operations $ 0.66 $ 0.38 ===============================================================================================================
(a) The adjustment column is to show the sale of the Company's barcode systems (BCS) business to SATO as discontinued operations. -----END PRIVACY-ENHANCED MESSAGE-----