-----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, P2BGBsCxgB0Mg5Cq6oSlyD/RPp9FOFlpqp4WQMQ0GyfLEhM7+gvKOXa1i48c7afv tk/MJ+sPCkklDoSy9PMPtw== 0000950123-96-003186.txt : 19960624 0000950123-96-003186.hdr.sgml : 19960624 ACCESSION NUMBER: 0000950123-96-003186 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960206 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19960621 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ARLEN CORP CENTRAL INDEX KEY: 0000007346 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR VEHICLE PARTS & ACCESSORIES [3714] IRS NUMBER: 132668657 STATE OF INCORPORATION: NY FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-06675 FILM NUMBER: 96583847 BUSINESS ADDRESS: STREET 1: 505 EIGHTH AVE CITY: NEW YORK STATE: NY ZIP: 10018 BUSINESS PHONE: 2127368100 MAIL ADDRESS: STREET 1: 505 EIGHTH AVE CITY: NEW YORK STATE: NY ZIP: 10018 FORMER COMPANY: FORMER CONFORMED NAME: ARLEN REALTY & DEVELOPMENT CORP DATE OF NAME CHANGE: 19860121 8-K/A 1 AMENDMENT NO. 1 TO FORM 8-K 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. __________ 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) FEBRUARY 6, 1996 THE ARLEN CORPORATION (Exact Name of Registrant as Specified in Its Charter) NEW YORK (State or Other Jurisdiction of Incorporation) 1-6675 13-2668657 (Commission File Number) (IRS Employer Identification No.) 505 EIGHTH AVENUE, NEW YORK, NEW YORK 10018 (Address of Principal Executive Offices) (Zip Code) (212) 736-8100 (Registrant's Telephone Number, Including Area Code) (Former Name or Former Address, if Changed Since Last Report) 2 ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. (B) PRO FORMA FINANCIAL INFORMATION: The unaudited pro forma consolidated financial statements of the Registrant for the fiscal year ended February 28, 1995 and the nine months ended November 30, 1995, reflecting the disposition of the Registrant's investments in its operating subsidiaries which took place on February 6, 1996, appear in this Report on pages F-1 through F-7, which follow page 2 of this Report. 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. THE ARLEN CORPORATION (Registrant) By: /s/ Allan J. Marrus -------------------------- Allan J. Marrus, President Dated: June 20, 1996 3 THE ARLEN CORPORATION UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED FEBRUARY 28, 1995 AND NINE MONTHS ENDED NOVEMBER 30, 1995 4 THE ARLEN CORPORATION UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED FEBRUARY 28, 1995 AND NINE MONTHS ENDED NOVEMBER 30, 1995 5 THE ARLEN CORPORATION CONTENTS INTRODUCTION F-2 UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET F-3 NOTE TO UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET F-4 UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS F-5-F-6 NOTES TO UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS F-7 F-1 6 The Arlen Corporation Unaudited Pro Forma Consolidated Financial Information ================================================================================ The unaudited pro forma consolidated statements of operations for the year ended February 28, 1995 and the nine months ended November 30, 1995 and the unaudited pro forma consolidated balance sheet as of November 30, 1995 include the accounts of The Arlen Corporation ("Arlen") reflecting the disposition of its investments in its operating subsidiaries (the "Disposition"). The pro forma financial statements were derived by adjusting the historical financial statements of Arlen for certain transactions pursuant to the Disposition described in the notes to the unaudited pro forma consolidated statements of operations and balance sheet. The unaudited pro forma consolidated statements of operations for the year ended February 28, 1995 and the nine months ended November 30, 1995 were prepared as if the Disposition had occurred on March 1, 1994. The unaudited pro forma consolidated balance sheet was prepared as if the Disposition had occurred on November 30, 1995. The pro forma financial data does not purport to be indicative of the results which actually could have been obtained had the Disposition been completed as of the assumed dates or which may be obtained in the future. The pro forma financial data should be read in conjunction with the financial statements of Arlen included in previously issued filings on Form 10-K for the year ended February 28, 1995, Form 10-Q for the nine months ended November 30, 1995, and Form 8-K for February 6, 1996 containing a narrative summary description of the Disposition. F-2 7 The Arlen Corporation Unaudited Pro Forma Consolidated Balance Sheet (in thousands)
November 30, Pro forma adjustments Pro forma as 1995 -------------------------- adjusted Debit Credit - -------------------------------------------------------------------------------------------------------------- Assets Current: Cash and cash equivalents $ 1,058 $ -- $ 1,037(1) $ 21 Certificates of deposit 228 -- 228(1) -- Accounts receivable, net 10,661 -- 10,661(1) -- Inventories 6,311 -- 6,311(1) -- Other current assets 490 -- 490(1) -- Note receivable, $2,000 face amount less unamortized discount of $150 -- 1,850(1) -- 1,850 Due from former subsidiaries -- 758(1) -- 758 - -------------------------------------------------------------------------------------------------------------- Total current assets 18,748 2,608 18,727 2,629 Property and equipment, net 1,397 -- 1,320(1) 77 Other assets 1,622 -- 1,622(1) -- - -------------------------------------------------------------------------------------------------------------- $ 21,767 $ 2,608 $21,669 $ 2,706 ============================================================================================================== Liabilities and Capital Deficit Current liabilities: Notes payable and accrued interest payable $ 4,804 $ 932(1) $ -- $ 739 750(1) 2,383(1) Accounts payable 1,827 1,827(1) -- -- Accrued state income taxes 1,044 98(1) -- 946 Accrued other 10,687 3,020(1) -- 7,667 Current portion of long-term obligations 455 156(1) -- 299 - -------------------------------------------------------------------------------------------------------------- Total current liabilities 18,817 9,166 -- 9,651 Long-term obligations 4,428 3,236(1) -- 575 617(1) Amounts due to related parties 125,483 3,465(1) -- 122,018 - -------------------------------------------------------------------------------------------------------------- Total liabilities 148,728 16,484 -- 132,244 Capital deficit (126,961) 2,577(1) -- (129,538) - -------------------------------------------------------------------------------------------------------------- $ 21,767 $19,061 $ -- $ 2,706 ==============================================================================================================
F-3 8 The Arlen Corporation Note to Unaudited Pro Forma Consolidated Balance Sheet 1. Represents reclassification of assets and liabilities of operating subsidiaries that were disposed of in February 1996 (net $11,642,000). At November 30, 1995, these former subsidiaries were indebted to Arlen in the aggregate amount of $758,000. At November 30, 1995, Arlen's investments in subsidiaries were approximately $11,642,000 ($8,642,000 after giving effect to a January 1996 subsidiary financing transaction which upstreamed $3,000,000 to Arlen and which Arlen used to settle certain Arlen obligations of $2,383,000 current and $617,000 noncurrent). The proceeds from the involuntary sale in February 1996 were $6,065,000. Such proceeds consisted of a $2,000,000 noninterest bearing note receivable (repayable in quarterly installments over two years which, after deduction of unamortized discount based on an imputed interest rate of 9%, amounts to $1,850,000), $750,000 in cash which was used to satisfy certain secured obligations due to related parties and a $3,465,000 reduction in the amounts due to related parties. This resulted in a pro forma net loss on disposal of subsidiaries of $2,577,000 assuming such disposal had occurred on November 30, 1995 but after giving effect to the January 1996 subsidiary financing transaction which upstreamed $3,000,000 to Arlen. F-4 9 The Arlen Corporation Unaudited Pro Forma Consolidated Statement of Operations (in thousands except per share amounts) ================================================================================
Nine months ended Pro forma adjustments Pro forma as November 30, 1995 ---------------------------- adjusted Debit Credit - ------------------------------------------------------------------------------------------------------------------ Sales $ 40,597 $ 40,597(1) $ -- $ -- Cost of sales 26,108 -- 26,108(1) -- - ------------------------------------------------------------------------------------------------------------------ Gross profit on sales 14,489 40,597 26,108 -- Selling, general and administrative expenses 11,985 -- 11,094(1) 891 - ------------------------------------------------------------------------------------------------------------------ Operating income (loss) 2,504 40,597 37,202 (891) Other (expenses) income: Interest expense (7,997) -- 346(1) (7,443) 208(2) Interest income -- -- 38(3) 38 Other income, net 24 24(1) -- -- - ------------------------------------------------------------------------------------------------------------------ Loss from continuing operations $ (5,469) $ 40,621 $ 37,794 $(8,296) ================================================================================================================== Loss from continuing operations per common share $ (.18) $ (.26) ================================================================================================================== Weighted average common shares outstanding 31,690 31,690 ==================================================================================================================
F-5 10 The Arlen Corporation Unaudited Pro Forma Consolidated Statement of Operations (in thousands except per share amounts)
Year ended Pro forma adjustments Pro forma as February 28, 1995 ---------------------------- adjusted Debit Credit - ----------------------------------------------------------------------------------------------------------------- Sales $ 50,099 $ 50,099(1) $ -- $ -- Cost of sales 30,141 -- 30,141(1) -- - ----------------------------------------------------------------------------------------------------------------- Gross profit on sales 19,958 50,099 30,141 -- Selling, general and administrative expenses 15,600 -- 14,371(1) 1,229 - ----------------------------------------------------------------------------------------------------------------- Operating income (loss) 4,358 50,099 44,512 (1,229) Other (expenses) income: Interest expense (9,772) -- 325(1) (9,170) 277(2) Interest income -- -- 112(3) 112 Other income, net 18 17(1) -- 1 - ----------------------------------------------------------------------------------------------------------------- Loss from continuing operations $ (5,396) $ 50,116 $45,226 $(10,286) ================================================================================================================= Loss from continuing operations per common share $ (.17) $ (.32) ================================================================================================================= Weighted average common shares outstanding 31,690 31,690 =================================================================================================================
F-6 11 The Arlen Corporation Notes to Unaudited Pro Forma Consolidated Statements of Operations 1. Discontinuation of the operations for subsidiaries disposed of in February 1996 assuming they had been sold as of March 1, 1994. 2. Represents savings of interest expense (of $277,000 for the year ended February 28, 1995 and $208,000 for the nine months ended November 30, 1995) on $3,465,000 reduction in amounts due to related parties pursuant to the involuntary sale of subsidiaries in February 1996. 3. Represents imputed interest income of $112,000 for the year ended February 28, 1995 and $38,000 for the nine months ended November 30, 1995 on the $2,000,000 note receivable pursuant to the involuntary sale of subsidiaries in February 1996. F-7 -----END PRIVACY-ENHANCED MESSAGE-----