8-K/A 1 amended8kdocument.txt AMENDED 8-K WITH PRO FORMA 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): November 18, 2002 Commission File Number: 0-23832 PSS WORLD MEDICAL, INC. (Exact name of registrant as specified in its charter) Florida 0-23832 59-2280364 (State or other (Commission (IRS Employer jurisdiction of File Number) Identification No.) incorporation) 4345 Southpoint Boulevard Jacksonville, Florida 32216 ---------------------------------------------------------- (Address of principal executive offices) (Zip Code) (904) 332-3000 (Registrant's telephone number, including area code) Item 7. Financial Statements and Exhibits. On November 20, 2002, PSS World Medical, Inc. (the "Seller" or "PSS") filed a current report on Form 8-K to report the sale of its wholly-owned subsidiary, Diagnostic Imaging, Inc. (the "Company") to Imaging Acquisition Corporation (the "Buyer"), a wholly-owned subsidiary of Platinum Equity, LLC, ("Platinum") a private equity firm unaffiliated with the Seller. PSS indicated that it would file certain financial information no later than 15 days after the closing of the transaction. This amendment is filed to provide such required information. (b) Pro Forma Financial Information. Unaudited Pro Forma Consolidated Financial Statement Information as of March 29, 2002 and September 27, 2002. On November 18, 2002, PSS completed the sale of the Company to the Buyer. The sale was completed pursuant to a Stock Purchase Agreement, dated as of October 28, 2002, among the Seller, the Buyer and Platinum (the "Stock Purchase Agreement"), a copy of which was attached as Exhibit 10.1 to the Seller's Current Report on Form 8-K filed on October 30, 2002. Immediately prior to the closing of the transaction, the parties entered into an Amendment of the Stock Purchase Agreement, a copy of which is attached as Exhibit 10.1a to the Seller's Current Report on Form 8-K filed on November 20, 2002. The purchase price for the transaction under the Stock Purchase Agreement was $45.0 million, of which $34.0 million was received in cash at the closing. An additional $0.5 million was held in escrow and will be released to the Seller upon the satisfaction of certain conditions. The purchase price is subject to further adjustment under the terms of the Stock Purchase Agreement, based on the subsequent determination of the Company's net asset value and net cash as of the closing date. The unaudited Pro Forma Financial Information is not necessarily indicative of what the financial condition of PSS would have been had the disposition been completed on the date assumed, nor is such information necessarily indicative of the future financial condition or results of operations of PSS. The unaudited Pro Forma Financial Information should be read in conjunction with the explanatory notes thereto, and the unaudited consolidated financial statements of PSS for the three and six months ended September 27, 2002, included in PSS's quarterly report on Form 10-Q, and the fiscal year ended March 29, 2002, included in PSS's annual report on Form 10-K, both of which were previously filed with the Securities & Exchange Commission. 2 The historical unaudited Consolidated Statements of Operations for the three and six months ended September 27, 2002 and September 28, 2001 included in PSS's September 27, 2002 quarterly report on Form 10-Q fully reflect the results of operations and the classification of the Company as discontinued operations for all periods presented based upon information known as of the filing date of the Form 10-Q. The following unaudited Pro Forma Financial Information reflects actual cash received at closing of $34.0 million. The unaudited Consolidated Pro Forma Balance Sheet Information as of September 27, 2002 and the unaudited Consolidated Pro Forma Statements of Operations Information for the six months ended September 27, 2002 and the fiscal year ended March 29, 2002 follows: 3
PSS WORLD MEDICAL, INC. AND SUBSIDIARIES CONSOLIDATED PRO FORMA BALANCE SHEET INFORMATION SEPTEMBER 27, 2002 (Dollars in Thousands, Except Per Share and Share Data) (Unaudited) ASSETS Pro Forma Pro Forma As reported Adjustments Results ----------- ----------- ---------- Current Assets: Cash and cash equivalents............................................. $ 33,006 $ 34,000 $ 67,006 Accounts receivable, net.............................................. 154,804 -- 154,804 Inventories, net...................................................... 89,215 -- 89,215 Employee advances..................................................... 58 -- 58 Prepaid expenses and other............................................ 26,941 -- 26,941 Assets of discontinued operations..................................... 179,348 (179,348) -- ----------- ----------- ---------- Total current assets.......................................... 483,372 (145,348) 338,024 Property and equipment, net........................................... 61,998 -- 61,998 Other Assets: Goodwill.............................................................. 61,283 -- 61,283 Intangibles, net...................................................... 5,847 -- 5,847 Employee advances..................................................... 184 -- 184 Deferred tax assets................................................... 42,574 -- 42,574 Other................................................................. 18,754 -- 18,754 ----------- ----------- ---------- Total assets.................................................. $674,012 $(145,348) $528,664 =========== =========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable...................................................... $104,923 $ -- $104,923 Accrued expenses...................................................... 33,081 -- 33,081 Other................................................................. 5,429 -- 5,429 Liabilities of discontinued operations and accrued loss on disposal... 147,068 (145,348) 1,720 ----------- ----------- ---------- Total current liabilities..................................... 290,501 (145,348) 145,153 Long-term debt........................................................... 106,000 -- 106,000 Other.................................................................... 15,843 -- 15,843 ----------- ----------- ---------- Total liabilities............................................. 412,344 (145,348) 266,996 ----------- ----------- ---------- Shareholders' Equity: Preferred stock, $.01 par value; 1,000,000 shares authorized, no shares issued and outstanding............................................ -- -- -- Common stock, $.01 par value; 150,000,000 shares authorized, 69,958,816 shares issued and outstanding at September 27, 2002............... 699 -- 699 Additional paid-in capital............................................ 339,894 -- 339,894 Accumulated deficit................................................... (78,925) -- (78,925) ----------- ----------- ---------- Total shareholders' equity.................................... 261,668 -- 261,668 ----------- ----------- ---------- Total liabilities and shareholders' equity.................... $674,012 $(145,348) $528,664 =========== =========== ========== See accompanying explanatory notes to unaudited consolidated Pro Forma Financial Information.
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PSS WORLD MEDICAL, INC. AND SUBSIDIARIES CONSOLIDATED PRO FORMA STATEMENT OF OPERATIONS INFORMATION FOR THE SIX MONTHS ENDED SEPTEMBER 27, 2002 (Dollars in Thousands, Except Per Share Data) (Unaudited) Interest Allocation Pro Forma Pro Forma As Reported Reclassification Adjustments Results ----------- ---------------- ----------- ---------- Net sales............................. $575,285 $ -- $ -- $575,285 Cost of goods sold.................... 412,569 -- -- 412,569 ----------- ---------------- ----------- ---------- Gross profit................. 162,716 -- -- 162,716 General and administrative expenses... 109,322 -- -- 109,322 Selling expenses...................... 41,211 -- -- 41,211 ----------- ---------------- ----------- ---------- Income from operations....... 12,183 -- -- 12,183 ----------- ---------------- ----------- ---------- Other (expense) income: Interest expense................ (4,466) (1,703) 1,445 (4,724) Interest and investment income.. 397 -- -- 397 Other income.................... 810 -- -- 810 ----------- ---------------- ----------- ---------- (3,259) (1,703) 1,445 (3,517) ----------- ---------------- ----------- ---------- Income from continuing operations..... 8,924 (1,703) 1,445 8,666 Provision for income taxes............ 3,327 (662) 562 3,227 ----------- ---------------- ----------- ---------- Income from continuing operations before extraordinary loss....... 5,597 (1,041) 883 5,439 Loss from discontinued operations..... (57,549) 1,041 -- (56,508) Extraordinary loss.................... (666) -- -- (666) ----------- ---------------- ----------- ---------- Net (loss) income .................... $(52,618) $ -- $ 883 $(51,735) =========== ================ =========== ========== Earnings (loss) per share - Basic: Income from continuing operations................... $ 0.08 $(0.01) $0.01 $ 0.08 Loss from discontinued operations................... (0.81) 0.01 -- (0.80) Extraordinary loss.............. (0.01) -- -- (0.01) ----------- ---------------- ----------- ---------- Net (loss) income............... $(0.74) $ -- $0.01 $(0.73) =========== ================ =========== ========== Earnings (loss) per share - Diluted: Income from continuing operations................... $ 0.08 $(0.01) $0.01 $ 0.08 Loss from discontinued operations................... (0.80) 0.01 -- (0.79) Extraordinary loss.............. (0.01) -- -- (0.01) ----------- ---------------- ----------- ---------- Net (loss) income............... $(0.73) $ -- $0.01 $(0.72) =========== ================ =========== ========== Weighted average shares outstanding: Common shares...................... 71,092 71,092 71,092 71,092 Assumed exercise of stock options 861 861 861 861 ----------- ---------------- ----------- ---------- Diluted shares outstanding......... 71,953 71,953 71,953 71,953 =========== ================ =========== ========== See accompanying explanatory notes to unaudited consolidated Pro Forma Financial Information.
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PSS WORLD MEDICAL, INC. AND SUBSIDIARIES CONSOLIDATED PRO FORMA STATEMENT OF OPERATIONS INFORMATION FOR THE YEAR ENDED MARCH 29, 2002 (Dollars in Thousands, Except Per Share Data) (Unaudited) Discontinued Operations Pro Forma Pro Forma As Reported Reclassification Adjustments Results ------------ ----------------- ----------- ----------- Net sales............................. $1,815,771 $(711,625) $ -- $1,104,146 Cost of goods sold.................... 1,391,866 (592,099) -- 799,767 ------------ ----------------- ----------- ----------- Gross profit................. 423,905 (119,526) -- 304,379 General and administrative expenses... 291,526 (86,651) -- 204,875 Selling expenses...................... 109,509 (33,051) -- 76,458 International business exit charge reversal........................ (514) -- -- (514) ------------ ----------------- ----------- ----------- Income from operations....... 23,384 176 -- 23,560 ------------ ----------------- ----------- ----------- Other (expense) income: Interest expense................ (12,674) 10 2,890 (9,774) Interest and investment income.. 674 -- -- 674 Other income.................... 2,623 (724) -- 1,899 ------------ ----------------- ----------- ----------- (9,377) (714) 2,890 (7,201) ------------ ----------------- ----------- ----------- Income from continuing operations..... 14,007 (538) 2,890 16,359 Provision for income taxes............ 5,159 (361) 1,124 5,922 ------------ ----------------- ----------- ----------- Income from continuing operations..... 8,848 (177) 1,766 10,437 Loss from discontinued operations..... -- (89,868) -- (89,868) Cumulative effect of accounting change (90,045) 90,045 -- -- ------------ ----------------- ----------- ----------- Net (loss) income..................... $ (81,197) $ -- $1,766 $ (79,431) ============ ================= =========== =========== Earnings (loss) per share - Basic: Income from continuing operations................... $ 0.12 $(0.00) $0.02 $ 0.14 Loss from discontinued operations................... -- (1.26) -- (1.26) Cumulative effect of accounting change....................... (1.26) 1.26 -- -- ------------ ----------------- ----------- ----------- Net income (loss)............... $(1.14) $ -- $0.02 $(1.12) ============ ================= =========== =========== Earnings (loss) per share - Diluted: Income from continuing operations................... $ 0.12 $(0.00) $0.02 $ 0.14 Loss from discontinued operations................... -- (1.25) -- (1.25) Cumulative effect of accounting change....................... (1.25) 1.25 -- -- ------------ ----------------- ----------- ----------- Net income (loss)............... $(1.13) $ -- $0.02 $(1.11) ============ ================= =========== =========== Weighted average shares outstanding: Common shares 71,184 71,184 71,184 71,184 Assumed exercise of stock options 769 769 769 769 ------------ ----------------- ----------- ----------- Diluted shares outstanding......... 71,953 71,953 71,953 71,953 ============ ================= =========== =========== See accompanying explanatory notes to unaudited consolidated Pro Forma Financial Information.
6 PSS WORLD MEDICAL, INC. AND SUBSIDIARIES EXPLANATORY NOTES TO PRO FORMA FINANCIAL INFORMATION (Unaudited) The unaudited Consolidated Pro Forma Balance Sheet Information assumes that the transaction was completed on September 27, 2002. The unaudited Consolidated Pro Forma Statements of Operations Information for the six months ended September 27, 2002 and fiscal year ended March 29, 2002, assumes a $1.4 million and $2.9 million reduction, respectively, of interest expense due to the pro forma retirement of a portion of the Notes as of the beginning of the period. In addition, the Consolidated Statement of Operations for six months ended September 27, 2002, included in PSS's September 27, 2002 quarterly report on Form 10-Q, included an interest allocation of $1.7 million to discontinued operations in accordance with Emerging Issues Task Force Issue No. 87-24, Allocation of Interest to Discontinued Operations. The unaudited Consolidated Pro Forma Statement of Operations Information for the six months ended September 27, 2002, includes an adjustment to reverse this interest allocation before reflecting the reduction of interest expense resulting from the pro forma retirement of the Notes. 7 (c) Exhibits. Exhibit Number Description 10.1 Stock Purchase Agreement, dated as of October 28, 2002, among PSS World Medical, Inc., Imaging Acquisition Corporation and Platinum Equity, LLC (incorporated by reference to the Seller's Current Report on Form 8-K filed on October 30, 2002). 10.1a Amendment to Stock Purchase Agreement, dated as of November 18, 2002, among PSS World Medical, Inc., Diagnostic Imaging, Inc., Imaging Acquisition Corporation and Platinum Equity, LLC (incorporated by reference to the Seller's Current Report on Form 8-K filed on November 20, 2002). 99.1 Press Release of PSS World Medical, Inc., dated November 19, 2002 (incorporated by reference to the Seller's Current Report on Form 8-K filed on November 20, 2002). 8 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 thereunto duly authorized. Date: December 3, 2002 PSS WORLD MEDICAL, INC. By: /s/ David M. Bronson --------------------------------------- Name: David M. Bronson Title: Senior Vice President and Chief Financial Officer 9