8-K 1 d8k.htm CURRENT REPORT DTD. JULY 31, 2002 Prepared by R.R. Donnelley Financial -- Current Report Dtd. July 31, 2002
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
 
 
 
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
 
Date of Report (date of earliest event reported):
 
July 31, 2002 (July 23, 2002)
 
 
IMPCO TECHNOLOGIES, INC.
(Exact Name of Registrant as Specified in its Charter)
 
 
Delaware
(State or Other Jurisdiction of
Incorporation or Organization)
 
 
001-15143
     
91-1039211
(Commission File Number)
     
(I.R.S. Employer
      
Identification No.)
 
 
16804 Gridley Place
Cerritos, California 90703
(Address of Principal Executive Offices) (Zip Code)
 
 
(562) 860-6666
(Registrant’s telephone number,
including area code)
 

 
Item 2.    Acquisition or Disposition of Assets.
 
On July 23, 2002 (the “Distribution Date”), IMPCO Technologies, Inc. (“IMPCO” or the “Registrant”), the sole stockholder of Quantum Fuel Systems Technologies Worldwide, Inc. (“Quantum”), distributed 14,142,036 shares of common stock of Quantum (the “Distribution”) to stockholders of record of IMPCO’s common stock as of close of business on July 5, 2002 (the “Record Date”), which shares constituted 100% of the issued and outstanding shares of Quantum as of the Distribution Date. In the Distribution, IMPCO’s stockholders received one share of Quantum common stock for every share of IMPCO common stock owned as of the Record Date. Stockholders were not required to pay any cash or other consideration or surrender or exchange shares of IMPCO common stock in order to receive shares of Quantum common stock in the Distribution.
 
IMPCO and Quantum were separated for accounting purposes as of 11:59 p.m., eastern time on July 23, 2002. As a result of the Distribution, Quantum is no longer owned by IMPCO and is now an independent public company. Shares of Quantum common stock, which had been traded on a “when issued” basis on the Nasdaq National Market under the symbol “QTWWV” since July 11, 2002, began regular-way trading on July 24, 2002 on the Nasdaq National Market under the symbol “QTWW.” IMPCO common stock continues to be traded on the Nasdaq National Market under the symbol “IMCO.”
 
IMPCO and Quantum have entered into certain agreements governing the relationship between IMPCO and Quantum after the Distribution and providing for the allocation of tax, employee benefits and certain other assets and liabilities and obligations arising from periods prior to and after the Distribution. These agreements are included as exhibits to this Report.
 
The Registrant is not aware of any material relationship between Quantum and Registrant or any of its affiliates, any director or officer of the Registrant or any associate of any such director or officer that existed at the date of the Distribution, except as disclosed in Quantum’s Registration Statement on Form 10, as amended (File No. 0-49629), and except that Dale L. Rasmussen, Senior Vice President and Secretary of IMPCO, will remain as Chairman of the Board of Directors of Quantum following the Distribution.
 
Additional information concerning IMPCO, the Distribution and Quantum is contained in IMPCO’s Annual Report on Form 10-K for the year ended April 30, 2002, Quantum’s Annual Report on Form 10-K for the year ended April 30, 2002, and Quantum’s Registration Statement on Form 10 that was declared effective by the Securities and Exchange Commission on June 14, 2002 (File No. 0-49629) under the Securities Exchange Act of 1934, as amended.
 
Item 7.    Financial Statements, Pro Forma Financial Information and Exhibits.
 
 
(a)
 
Financial Statements of Businesses Acquired.
 
None.

 
(b)
 
Pro Forma Financial Information.
 
 
IMPCO TECHNOLOGIES, INC.
 
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
On July 23, 2002, the Company completed the distribution and spin-off of its Quantum subsidiary by distributing one share of Quantum common stock for every share of IMPCO common stock held on the record date, which was July 5, 2002. As a result of the spin-off, the Company no longer holds any interest in Quantum and will report it as a discontinued operation in fiscal year 2003.
 
The following unaudited pro forma condensed consolidated financial statements have been prepared to illustrate the effect of the intended spin-off of Quantum in accordance with Article 11 of Regulation S-X. The unaudited pro forma condensed consolidated balance sheet illustrates the post spin-off balance sheet of IMPCO Technologies, Inc. as of April 30, 2002. The unaudited pro forma condensed consolidated statement of operations illustrates the post spin-off statement of income of IMPCO Technologies, Inc. for the year ended April 30, 2002 as if the spin-off had occurred on May 1, 2001.
 
The pro forma adjustments are based upon available information and upon certain assumptions that management believes are reasonable under the circumstances. The unaudited pro forma condensed consolidated financial statements should be read in conjunction with the historical financial statements of IMPCO Technologies, Inc., and the notes thereto. The unaudited pro forma condensed consolidated financial statements do not purport to represent what our actual results of operations or actual financial position would have been if the spin-off of Quantum in fact occurred on such dates or to project our results of operations or financial position for any such future period or date.

IMPCO TECHNOLOGIES, INC.
 
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
April 30, 2002
 
    
IMPCO
     
Historical
Quantum (1)
   
Pro Forma Adjustments
     
Pro forma
IMPCO
excluding
Quantum
  
ASSETS
                          
Current Assets:
                                  
Cash
   
$
11,405,695
 
   
$
177,414
   
$
15,000,000
(2)
   
$
(3,771,719
)
Accounts receivable, less allowance for doubtful accounts
   
 
17,598,668
 
   
 
4,494,328
   
 
    —  
 
   
 
13,104,340
 
Inventories
   
 
28,282,575
 
   
 
9,626,616
   
 
—  
 
   
 
18,655,959
 
Deferred tax assets
   
 
2,807,677
 
          
 
—  
 
   
 
2,807,677
 
Other current assets
   
 
2,322,404
 
   
 
87,713
   
 
—  
 
   
 
2,234,691
 
    
  
  
  
Total current assets
   
 
62,417,019
 
   
 
14,386,071
   
 
15,000,000
 
   
 
33,030,948
 
Equipment & leasehold improvements:
                   
 
—  
 
         
Dies, molds and patterns
   
 
8,737,763
 
   
 
2,676,537
   
 
—  
 
   
 
6,061,226
 
Machinery and equipment
   
 
14,413,896
 
   
 
6,381,335
   
 
—  
 
   
 
8,032,561
 
Office furnishings and equipment
   
 
16,589,511
 
   
 
7,791,009
   
 
—  
 
   
 
8,798,502
 
Automobiles and trucks
   
 
596,758
 
   
 
181,173
   
 
—  
 
   
 
415,585
 
Leasehold improvements
   
 
4,808,286
 
   
 
4,428,449
   
 
—  
 
   
 
379,837
 
    
  
  
  
    
 
45,146,214
 
   
 
21,458,503
   
 
—  
 
   
 
23,687,711
 
Less accumulated depreciation and amortization
   
 
23,281,881
 
   
 
8,039,150
   
 
—  
 
   
 
15,242,731
 
    
  
  
  
Net equipment and leasehold improvements
   
 
21,864,333
 
   
 
13,419,353
   
 
—  
 
   
 
8,444,980
 
Intangibles arising from acquisitions, net
   
 
9,078,745
 
   
 
—  
   
 
—  
 
   
 
9,078,745
 
Deferred tax assets
   
 
29,128,539
 
   
 
—  
   
 
—  
 
   
 
29,128,539
 
Other assets
   
 
960,289
 
   
 
354,000
   
 
—  
 
   
 
606,289
 
    
  
  
  
    
$
123,448,925
 
   
$
28,159,424
   
$
15,000,000
 
   
$
80,289,501
 
    
  
  
  
LIABILITIES AND STOCKHOLDERS’ EQUITY
                          
Current liabilities:
                                  
Accounts payable
   
$
12,001,673
 
   
$
6,761,294
            
$
5,240,379
 
Accrued payroll obligations
   
 
3,545,817
 
   
 
660,165
            
 
2,885,652
 
Other accrued expenses
   
 
3,276,237
 
   
 
1,526,231
            
 
1,750,006
 
Current lines of credit
   
 
8,625,000
 
   
 
8,625,000
   
 
(8,625,000
)(2)
   
 
8,625,000
 
Current maturities of long-term debt and capital leases
   
 
5,661,632
 
   
 
188,832
            
 
5,472,800
 
    
  
  
  
Total current liabilities
   
 
33,110,359
 
   
 
17,761,522
   
 
(8,625,000
)
   
 
23,973,837
 
Lines of credit
   
 
—  
 
   
 
—  
            
 
—  
 
Term loans
   
 
4,889,962
 
   
 
—  
            
 
4,889,962
 
Capital leases
   
 
503,381
 
   
 
127,355
            
 
376,026
 
Minority interest
   
 
2,268,093
 
   
 
—  
            
 
2,268,093
 
Stockholders’ equity:
                                  
Preferred stock
   
 
—  
 
   
 
—  
            
 
—  
 
Common stock
   
 
12,622
 
   
 
—  
            
 
12,622
 
Additional paid-in capital relating to common stock
   
 
126,315,507
 
   
 
10,270,547
   
 
23,625,000
(2)
   
 
92,419,960
 
Shares held in trust
   
 
(321,858
)
   
 
—  
            
 
(321,858
)
Notes receivable from officers
   
 
—  
 
   
 
—  
            
 
—  
 
Retained earnings (accumulated deficit)
   
 
(39,671,014
)
   
 
—  
            
 
(39,671,014
)
Accumulated other comprehensive income
   
 
(3,658,127
)
   
 
—  
   
 
—  
 
   
 
(3,658,127
)
    
  
  
  
Total stockholders’ equity
   
 
82,677,130
 
   
 
10,270,547
   
 
23,625,000
 
   
 
48,781,583
 
    
  
  
  
    
$
123,448,925
 
   
$
28,159,424
   
$
15,000,000
 
   
$
80,289,501
 
    
  
  
  

IMPCO TECHNOLOGIES, INC.
 
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Fiscal Year Ended April 30, 2002
 
    
IMPCO
     
Historical
Quantum (1)
     
Pro Forma
Adjustments
     
Pro Forma
IMPCO
excluding
Quantum
  
Revenue:
                                    
Product sales
   
$
83,062,040
 
   
$
15,458,529
 
   
$
—   
 
   
$
67,603,511
 
Contract revenue
   
 
8,016,777
 
   
 
7,944,766
 
   
 
—  
 
   
 
72,011
 
    
  
  
  
Net revenue
   
 
91,078,817
 
   
 
23,403,295
 
   
 
—  
 
   
 
67,675,522
 
    
  
  
  
Costs and expenses:
                                    
Cost of product sales
   
 
70,123,128
 
   
 
25,581,284
 
   
 
—  
 
   
 
44,541,844
 
Research and development expense
   
 
38,512,814
 
   
 
32,656,683
 
   
 
—  
 
   
 
5,856,131
 
Selling, general and administrative
    expense
   
 
26,055,228
 
   
 
4,854,656
 
   
 
1,524,364
(2)
   
 
19,676,208
 
    
  
  
  
Total costs and expenses
   
 
134,691,170
 
   
 
63,092,623
 
   
 
1,524,364
 
   
 
70,074,183
 
    
  
  
  
Operating loss
   
 
(43,612,353
)
   
 
(39,689,328
)
   
 
(1,524,364
)
   
 
(2,398,661
)
Interest expense
   
 
1,652,817
 
   
 
488,444
 
   
 
—  
 
   
 
1,164,373
 
Interest income
   
 
(245,188
)
   
 
(9,555
)
   
 
—  
 
   
 
(235,633
)
    
  
  
  
Loss before income taxes, minority
    interest in income of consolidated subsidiaries
    and dividends
   
 
(45,019,982
)
   
 
(40,168,217
)
   
 
(1,524,364
)
   
 
(3,327,401
)
Income tax expense (benefit)
   
 
(18,007,905
)
   
 
800
 
   
 
(16,676,144
)(3)
   
 
(1,330,961
)
Minority interest in income of consolidated
    subsidiaries
   
 
223,971
 
   
 
—  
 
   
 
—  
 
   
 
223,971
 
    
  
  
  
Net loss applicable to common stock
   
$
(27,236,048
)
   
$
(40,169,017
)
   
$
(15,151,781
)
   
$
(2,220,412
)
Net loss per share:
                                    
Basic
   
$
(2.45
)
                     
$
(0.20
)
Diluted
   
$
(2.45
)
                     
$
(0.20
)
Number of shares used in per share computation:
                                    
Basic
   
 
11,097,815
 
                     
 
11,097,815
 
Diluted
   
 
11,097,815
 
                     
 
11,097,815
 

NOTES TO UNAUDITED PRO FORMA CONDENSED
 
CONSOLIDATED FINANCIAL STATEMENTS
 
Pro Forma Balance Sheet
 
 
1)
 
Assets and liabilities directly attributable to Quantum at April 30, 2002. Additional paid-in capital represents the net book value of Quantum.
 
 
2)
 
The adjustment to cash represents a $15.0 million cash transfer from IMPCO to Quantum and the adjustment to current lines of credit represents the assumption by IMPCO of the $8.6 million outstanding under the debt facility.
 
Pro Forma Statement of Operations
 
 
1)
 
Quantum historical operating results for the fiscal year ended April 30, 2002.
 
 
2)
 
Specifically identified portion of corporate general and administrative expense directly attributable to Quantum for the fiscal year ended April 30, 2002. The adjusted amount does not include any portion of expected on-going expenses of IMPCO.
 
 
3)
 
The adjustment to income taxes represents the effect of Quantum research and development credits and operating losses. The effective income tax rate for IMPCO primarily represents the federal statutory rate plus state and foreign income taxes.

 
(c)
 
Exhibits.
 
Exhibit Number
   
Description
  2.1
   
Contribution and Distribution Agreement, dated as of July 23, 2002, between the Registrant and Quantum Fuel Systems Technologies Worldwide, Inc. (1)
99.1
   
Tax Allocation and Indemnification Agreement, dated as of July 23, 2002, between the Registrant and Quantum Fuel Systems Technologies Worldwide, Inc. (1)
99.2
   
Transition Services Agreement, dated as of July 23, 2002, between the Registrant and Quantum Fuel Systems Technologies Worldwide, Inc. (1)
99.3
   
Employee Benefit Matters Agreement, dated as of July 23, 2002, between the Registrant and Quantum Fuel Systems Technologies Worldwide, Inc. (1)
99.4
   
Strategic Alliance Agreement, dated as of July 23, 2002, between the Registrant and Quantum Fuel Systems Technologies Worldwide, Inc. (1)
 
(1)
 
Incorporated by reference to the Annual Report on Form 10-K of Quantum Fuel Systems Technologies Worldwide, Inc., for the fiscal year ended April 30, 2002.

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.
 
IMPCO TECHNOLOGIES, INC.
By:
  
/s/    W. BRIAN OLSON
   
W. Brian Olson
Chief Financial Officer and Treasurer
 
Date: July 31, 2002
 

INDEX TO EXHIBITS
 
Exhibit Number
   
Description
  2.1
   
Contribution and Distribution Agreement, dated as of July 23, 2002, between the Registrant and Quantum Fuel Systems Technologies Worldwide, Inc. (1)
99.1
   
Tax Allocation and Indemnification Agreement, dated as of July 23, 2002, between the Registrant and Quantum Fuel Systems Technologies Worldwide, Inc. (1)
99.2
   
Transition Services Agreement, dated as of July 23, 2002, between the Registrant and Quantum Fuel Systems Technologies Worldwide, Inc. (1)
99.3
   
Employee Benefit Matters Agreement, dated as of July 23, 2002, between the Registrant and Quantum Fuel Systems Technologies Worldwide, Inc. (1)
99.4
   
Strategic Alliance Agreement, dated as of July 23, 2002, between the Registrant and Quantum Fuel Systems Technologies Worldwide, Inc. (1)
 
(1)
 
Incorporated by reference to the Annual Report on Form 10-K of Quantum Fuel Systems Technologies Worldwide, Inc., for the fiscal year ended April 30, 2002.