1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A 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): September 29, 1995
DOVER CORPORATION
(Exact name of registrant as specified in its charter)
STATE OF DELAWARE 1-4018 53-0257888
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
280 PARK AVENUE, NEW YORK, NY 10017
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 922-1640
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The registrant hereby amends the following items, financial
statements or other portions of its Current Report on Form 8-K dated September
29, 1995 and filed on October 16, 1995 as set forth in the pages attached
hereto:
Item 2. Acquisition or Disposition of Assets
Item 7. Financial Statements and Exhibits
(a) Financial statements of business acquired.
(b) Pro forma financial information.
Item 2. Acquisition or Disposition of Assets
On September 29,1995, a wholly-owned subsidiary of Dover
Corporation ("Dover" or the "Company") executed an Agreement for the Sale of
Shares with a number of financial institutions and individuals, pursuant to
which Dover agreed to purchase approximately 48% of the outstanding stock of
Imaje, S.A. ("Imaje") owned by such group, and simultaneously offer to purchase
all of the remaining outstanding stock of Imaje. As a result, Dover, through
such subsidiary, has purchased 94% of the outstanding stock of Imaje through
October 23, 1995. Dover intends to purchase all the remaining outstanding shares
of Imaje, including (a) 1% which has already been tendered and is being
processed for payment and (b) another 4% which Dover has an option to purchase
within one year.
Based in Valence, France, Imaje is one of the world's three
largest manufacturers of industrial continuous ink jet printers and specialized
inks used for coding and marking products and consumables. It also produces
laser and contact marking printers. Imaje had sales of $144 million and
operating profit of $27 million for 1994, and sales of $82 million and operating
profit of $22 million for the six months ended June 30, 1995.
The Company previously reported that Imaje had 1994 sales of
FF795 million ($158 million) and an operating profit of FF190 million ($38
million). Each of these dollar figures reflects translation at the then current
rate of exchange. The sales and operating profit figures for 1994 set forth in
the immediately preceding paragraph have been translated at the average rate of
exchange for 1994. In addition, the operating profit shown in the immediately
preceding paragraph includes charges for employee profit sharing, goodwill
amortization and certain exceptional expenses.
Imaje employs about 900 people, of whom 45% work in France and
the balance are employed in subsidiaries throughout the world. Imaje will
continue to operate as an independent company, part of the Dover Technologies'
segment.
The economic cost to acquire 100% of the stock of Imaje,
including all direct costs, is approximately FF1,014 million ($205 million),
where "economic cost" is defined as total cash consideration plus long-term debt
assumed, less cash acquired. Under generally accepted accounting principles, the
comparable purchase price is approximately FF1,048 million ($212 million). The
purchase price and related consideration paid is a result of a competitive
bidding process managed by Clinvest, the investment banking subsidiary of Credit
Lyonnais Group, for the benefit of Imaje's stockholders. To fund the
acquisition, Dover increased its short term commercial paper borrowings prior to
the Imaje closing by approximately $200 million, which was used along with
internally-generated funds to purchase the French francs required.
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Item 7. Financial Statements and Exhibits
(a) Financial statements of the business acquired.
The following historic financial statements of Imaje are submitted
herewith on the pages indicated. Such statements were prepared in accordance
with International Accounting Standards. For information regarding appropriate
French franc conversion ratios, see the pro forma condensed financial
information below.
Page
----
Report of Independent Accountants................................................................. 4
Combined Balance Sheet at December 31, 1994....................................................... 5
Combined Statement of Earnings for the year ended December 31, 1994............................... 6
Combined Statement of Cash Flows for the year ended December 31, 1994............................. 7
Combined Balance Sheet at June 30, 1995 and 1994 (Unaudited)...................................... 8
Combined Statements of Earnings for the six months ended
June 30, 1995 and 1994 (Unaudited)................................................................ 9
Combined Statements of Cash Flows for the six months ended
June 30, 1995 and 1994 (Unaudited)................................................................ 10
Notes to Combined Financial Statements............................................................ 11
(b) Pro forma financial information.
The following unaudited pro forma condensed combined financial
information of Dover Corporation and Imaje are submitted herewith on the
indicated pages.
Pro Forma Condensed Combined Financial Information................................................ 19
Pro Forma Condensed Combined Balance Sheet at June 30, 1995 (unaudited)........................... 20
Notes to Pro Forma Condensed Combined Balance Sheet at June 30, 1995
(unaudited)....................................................................................... 21
Pro Forma Condensed Combined Statement of Earnings for the six months ended
June 30, 1995 (unaudited)......................................................................... 22
Notes to Pro Forma Condensed Combined Statement of Earnings for the
six months ended June 30, 1995 (unaudited)........................................................ 23
Pro Forma Condensed Combined Statement of Earnings for the year ended
December 31, 1994 (unaudited)..................................................................... 24
Notes to Pro Forma Condensed Combined Statement of Earnings for the
year ended December 31, 1994 (unaudited).......................................................... 25
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a) Financial statements of the business acquired.
Imaje S.A. statutory auditors
general report.
In compliance with the assignment entrusted to us, we hereby report to you on:
- - the audit of the accompanying annual financial statements of Imaje,
- - the specific verifications and information required by law, for the year ended
31 December, 1994.
Opinion on the annual financial statements.
We have audited the consolidated financial statements (comprising the balance
sheet, the income statement, the cash-flow statement and the notes thereto) by
performing the procedures we considered necessary in accordance with French
professional standards.
The wish to bring to your attention the following matter: the company has
reviewed the period over which the difference arising upon initial consolidation
is written off, reducing the period from 20 years to 5 years. The application of
this revised policy has led to the company recording additional amortization
expense of FF29,262,000 in 1994.
In our opinion, the annual financial statements referred to above give a true
and fair view of the Company's financial position, and its assets and
liabilities as of 31 December, 1994, and the results of its operations for the
year then ended.
Specific verifications and information.
We have also carried out the specific verifications required by law, in
accordance with French professional standards.
We have no comment to make as to the fair presentation and the conformity with
the annual accounts of the information given in the report of the Board of
Directors.
The statutory auditors
14 April 1995
/s/ Jacques Meunier /s/ Jean-Michel Bloch
- ------------------- ---------------------
Audit Sud-Est Ernst & Young Audit
Jacques Meunier Jean-Michel Bloch
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IMAJE
BALANCE SHEET
at December 31, 1994
ASSETS (in thousands of French Francs)
Fixed Assets:
Intangible Fixed Assets 5,629
Difference Arising on first consolidation - unallocated 2,234
Tangible fixed assets 83,546
Financial fixed assets 8,906
--------
Total fixed assets 100,315
--------
Current Assets:
Inventories and work-in-progress 79,749
Advance Payments received from Customers 944
Trade Receivables 144,657
Other Receivables 27,946
Investment Securities 29,037
Cash 49,687
Prepayments 6,008
--------
Total Current Assets 338,028
--------
Difference arising on Translation of foreign currency 2
--------
Total Assets 438,345
========
LIABILITIES (in thousands of French Francs)
Group shareholders' equity:
Share capital 135,409
Share Issue Premium 37,271
Reserves (107,231)
Income from the period (group share) 87,137
Interim dividends (5,416)
--------
Total group shareholders' equity 147,170
--------
Minority interests:
Minority interest in reserves 223
Minority interest in income for the period 132
--------
Total minority interest 355
--------
Total shareholders' equity 147,525
--------
Provisions:
Provisions for liabilities and charges 26,314
--------
Total Provisions 26,314
--------
Debt and liabilities
Convertible debt 6,800
Loans and financial debt 84,808
Payments received on account of work-in-progress 4,078
Suppliers and trade payables 56,123
Other liabilities 107,184
Revenues related to future periods 5,496
--------
Total debts 264,489
--------
Unrealized exchange gains 17
--------
Total Liabilities 438,345
========
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IMAJE
CONSOLIDATED INCOME STATEMENT
for the year ended December 31, 1994
(in thousands of French Francs)
Sales 794,833
Production held as inventory 359
Production capitalized 6,774
--------
Total operating revenues 801,966
Cost of sales 236,989
--------
Gross profit 564,977
Other purchases and external expenses 125,849
--------
Added value 439,128
--------
Operating subsidies received 3,586
Taxes and similar expenses 12,732
Wages, salaries and social charges 203,496
--------
Operating income before depreciation
and Provisions 226,486
--------
Other income 3,410
Depreciation charge 23,499
Movement in provisions 9,255
--------
Operating income 197,142
Net financial expense (21,481)
--------
Income before tax and exceptional items 175,661
--------
Net exceptional expense (8,722)
Employee profit sharing 5,923
Taxation 41,263
Deferred tax expense 1,167
Amortization of goodwill arising on consolidation 31,317
--------
Net consolidated income 87,269
Minority interest 132
--------
Net group income 87,137
========
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IMAJE
CONSOLIDATED CASH FLOW STATEMENT
for the year ended December 31, 1994
(in thousands of French Francs)
Cash flows from operations:
Net consolidated income 87,269
Depreciation and amortization 23,499
Amortization of goodwill arising on consolidation 31,316
Profit/loss on disposal of assets 4,955
Deferred tax 1,167
--------
Operating cash flows 148,206
Movement in working capital requirements (43,836)
--------
Cash provided by operating activities 192,042
--------
Investing activities:
Industrial investments 22,427
Financial investments 9,841
Proceeds from sale of assets (8,737)
--------
Net cash used by investing activities 23,531
--------
Financing activities:
Increase in shareholders' equity 47,123
Dividends paid (Imaje + minority interest of group companies) (6,381)
Movement in long-term debt (130,413)
--------
Cash provided by financing activities (89,671)
--------
Net increase in cash and cash equivalents from all activities 78,840
========
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IMAJE
BALANCE SHEET
at June 30,
1995 1994
---- ----
ASSETS (in thousands of French Francs)
----------------------
Share capital called but not fully paid 294
----------------------
Fixed Assets:
Intangible Fixed Assets 5,049 6,070
Difference Arising on first consolidation - unallocated 2,002
Tangible fixed assets 76,049 97,274
Financial fixed assets 8,999 11,720
----------------------
Total fixed assets 92,099 115,064
----------------------
Current Assets:
Inventories and work-in-progress 87,100 96,559
Advance Payments received from Customers 2,004 2,336
Trade Receivables 151,837 135,437
Other Receivables 42,387 32,531
Cash and investment Securities 128,531 36,593
Prepayments 6,009 5,099
----------------------
Total Current Assets 417,868 308,555
----------------------
Difference arising on Translation of foreign currency
----------------------
Total Assets 509,967 423,913
======================
LIABILITIES (in thousands of French Francs)
Group shareholders' equity:
Share capital 135,411 135,956
Share Issue Premium 37,273 39,435
Reserves (34,467) (110,880)
Income from the period (group share) 75,864 49,367
Interim dividends 0
----------------------
Total group shareholders' equity 214,081 113,878
----------------------
Minority interests:
Minority interest in reserves 355 6,641
Minority interest in income for the period 47 1,236
----------------------
Total minority interest 402 7,877
----------------------
Total shareholders' equity 214,483 121,755
----------------------
Provisions:
Provisions for liabilities and charges 28,567 29,697
----------------------
Total Provisions 28,567 29,697
----------------------
Debt and liabilities
Convertible debt 6,795 17,250
Loans and financial debt 88,354 101,926
Payments received on account of work-in -progress 4,981 11,167
Suppliers and trade payables 58,368 66,621
Other liabilities 104,792 72,111
Revenues related to future periods 3,627 3,386
----------------------
Total debts 266,917 272,461
----------------------
Unrealized exchange gains
----------------------
Total Liabilities 509,967 423,913
======================
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IMAJE
CONSOLIDATED INCOME STATEMENT
for the six months ended June 30,
(in thousands of French Francs) 1995 1994
---- ----
Sales 409,998 376,818
Production held as inventory 12,824 9,214
Production capitalized
----------------------
Total operating revenues 422,822 386,032
Cost of sales 114,781 113,401
----------------------
Gross profit 308,041 272,631
Other purchases and external expenses 61,133 61,206
----------------------
Added value 246,908 211,425
----------------------
Operating subsidies received 520 1,905
Taxes and similar expenses 7,191 6,493
Wages, salaries and social charges 99,904 97,735
----------------------
Operating income before depreciation
and Provisions 140,333 109,102
----------------------
Other income 1,015 6
Depreciation charge 9,245 13,182
Movement in provisions 4,481 3,886
----------------------
Operating income 127,622 92,040
Net financial expense (8,959) (10,239)
----------------------
Income before tax and exceptional items 118,663 81,801
----------------------
Net exceptional expense (7,691) (4,789)
Employee profit sharing 5,195 2,746
Taxation 43,305 21,734
Deferred tax expense (13,662) 2,966
Amortization of goodwill arising on consolidation 232 199
----------------------
Net consolidated income 75,902 49,367
Minority interest 48
----------------------
Net group income 75,854 49,367
======================
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IMAJE
CONSOLIDATED CASH FLOW STATEMENT
for the six months ended June 30,
(in thousands of French Francs) 1995 1994
---- ----
Cash flows from operations:
Net consolidated income 75,854 49,367
Depreciation and amortization 8,784 6,621
Amortization of goodwill arising on consolidation 232
Profit/loss on disposal of assets (1,099) (566)
Deferred tax (13,978)
---------------------
Operating cash flows 69,793 55,422
Movement in working capital requirements 17,914 (15,662)
---------------------
Cash provided by operating activities 51,879 71,084
---------------------
Investing activities:
Industrial investments 3,780 8,166
Financial investments
Proceeds from sale of assets (2,907) (2,182)
---------------------
Net cash used by investing activities 873 5,984
---------------------
Financing activities:
Increase in shareholders' equity 3
Dividends paid (Imaje + minority interest of group companies) (4,740)
Movement in long-term debt 3,541 (42,471)
---------------------
Cash provided by financing activities (1,199) (42,468)
---------------------
Net increase in cash and cash equivalents from all activities 49,807 22,632
=====================
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NOTES TO THE DECEMBER 31, 1994 CONSOLIDATED FINANCIAL STATEMENTS.
ACCOUNTING POLICIES.
1. GENERAL PRINCIPLES.
For the preparation of its consolidated financial statements, the Imaje Group
applies the international accounting standards of the International Accounting
Standards Committee (I.A.S.C.).
The consolidated financial statements are prepared in accordance with the French
law of 3 January 1985 on consolidated financial statements and the statutory
order of 17 February 1986.
2. CONSOLIDATION PRINCIPLES.
- - DETERMINATION OF THE SCOPE OF THE CONSOLIDATION AND METHOD OF CONSOLIDATION.
The material companies of which Imaje exerts exclusive control are consolidated
by overall integration.
- - YEAR-END CLOSING PRINCIPLES.
The local financial statements of the consolidated companies are closed at 31
December 1994. These statements are then adjusted if required to ensure
compliance with group accounting policies.
- - TREATMENT OF THE DIFFERENCE ARISING UPON THE INITIAL CONSOLIDATION.
The excess of the purchase price of the investment in the consolidated companies
over the share of net assets acquired at the date of acquisition is included as
an asset under the heading "goodwill arising upon acquisition".
Unallocated goodwill arising upon acquisition is amortized over 5 years.
Until 31 December 1993, such goodwill was amortized over 20 years.
This change in accounting policy has resulted in an additional amortization
charge of FF 29.3 millions being recorded in the 1994 accounting period.
- - CONVERSION METHOD UTILIZED FOR THE CONSOLIDATION OF FOREIGN COMPANIES.
The financial statements of foreign companies are converted using the closing
rate method: assets and liabilities are converted at the closing rate and the
income statement is converted at the average rate.
Exchange differences arising are allocated directly to net equity.
Due to the high level of inflation in Brazil, all accounting entries are
re-recorded each day in US dollars.
This subsidiary is then consolidated based on the local US dollar accounts.
SPECIFIC ACCOUNTING POLICIES.
1. SALES.
Consolidated sales represent the value net of taxes of goods and services sold
by the consolidated companies in the normal course of their activity and is
after elimination of intra-group sales.
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2. TANGIBLE AND INTANGIBLE FIXED ASSETS.
Fixed assets are recorded at their historic cost.
Assets acquired under capital leases are capitalized except for those relating
to motor vehicles having a unit value less than FF 150,000.
For the purposes of the consolidated financial statements. assets are
depreciated using the straight line method over the expected useful economic
lives of each of the asset categories.
The useful expected lives retained are as follows:
- - Computer software.................................................... 3 years.
- - Buildings............................................................ 20 years.
- - Building improvements................................................ 10 years.
- - Plant and equipment.................................................. 5 years.
- - Motor vehicles....................................................... 4 years.
- - Office equipment..................................................... 5 years.
- - Fixtures and fittings................................................ 10 years.
- - Computer hardware.................................................... 3-5 years.
Purchased goodwill is not amortized but is provided for if such a provision is
required.
3. INVENTORIES AND WORK-IN-PROGRESS.
Raw materials and supplies are valued using the first-in, first-out method.
Work-in-progress and finished goods are valued at cost.
A provision for depreciation is recognized when the probable realizable value is
lower than the inventory value.
Obsolete and slow moving inventories are also provided for.
4. TRADE RECEIVABLES.
Doubtful or contentious trade receivables are provided for on a case by case
basis.
5. INCOME TAX.
Provisions for deferred taxes or for deferred income are recognized in
accordance with the liability method in order to record the tax charge in the
period to which it relates.
Timing differences can exist between the date certain items of income and
expenditure are recorded in the accounts and the date they are recognized for
income tax purposes.
Such timing differences exist due to differences between tax and accounting
depreciation and provisions recorded for tax purposes.
Provisions for deferred taxes or for deferred income are limited to the extent
that the payment or refund is probable.
Part of the tax losses of the subsidiaries is included as deferred tax assets
in the balance sheet.
The deferred tax asset is limited to 3% of annual budgeted sales for the next
three financial years or of total budgeted pre-tax income for the next three
financial years. The lower of these two figures is retained. There are two
exceptions to this rule:
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- - due to the high level of profitability of the German subsidiary, the limit has
been increased to 6% of annual budgeted sales for the next three financial
years or of total budgeted pre-tax income for the next three financial years;
- - the American subsidiary is currently undergoing a tax investigation; as a
precaution, none of the tax deficit has been included as a deferred tax asset.
6. LUMP-SUM RETIREMENT BENEFITS.
Lump-sum retirement benefits and supplementary pension liabilities are not
material. No provision or off-balance sheet commitments have been recorded.
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NOTES TO THE CONSOLIDATED BALANCE SHEET AND TO THE CONSOLIDATED INCOME STATEMENT
FOR THE PERIOD ENDED DECEMBER 31, 1994
1. SCOPE OF THE CONSOLIDATION.
- - List of subsidiaries consolidated.
Parent company: IMAJE S.A. - BP 110 - 26501 Bourg-les-Valence Cedex - France
Subsidiaries:
% GROUP % GROUP
COUNTRY CONTROL INTEREST
-------------------------------------------------------------
IMAJE ASIA Singapore 100.00 100.00
IMAJE K.K. Japan 100.00 100.00
IMAJE I.J.P. CORP. U.S.A. 100.00 100.00
IMAJE HONG-KONG LTD. Hong-Kong 100.00 100.00
IMAJE A.G. Switzerland 100.00 100.00
IMAJE CODING A/S Denmark 100.00 100.00
IMAJE CODING TEC BV The Netherlands 100.00 100.00
IMAJE ITALIA SRL Italy 100.00 100.00
IMAJE AS NORGE Norway 100.00 100.00
IMAJE C.T. SDN BHD (1) Malaysia 100.00 100.00
IMAJE CANADA INC. Canada 100.00 100.00
DATO PACK EUROPA Spain 99.67 99.67
IMAJE TEC CODIFICACAO LT Portugal 100.00 99.99
IMAJE CODING TEC PTY LTD Australia 100.00 100.00
IMAJE CODING TECH. LTD New Zealand 100.00 100.00
IMAJE GMBH Germany 100.00 100.00
IMAJE SVENSKA Sweden 100.00 100.00
IMAJE UK LTD United Kingdom 100.00 100.00
IMAJE DO BRAZIL Brazil 99.99 99.99
IMAJE MEXICO SA DE CV Mexico 100.00 100.00
IMAJE KOREA CO. LTD Korea 99.98 99.98
XIAMEN IMAJE JINLING China 97.00 97.00
CYBERG SA France 99.89 99.89
TOXOT SA France 99.99 99.99
IMAJE INK JET NV SA Belgium 100.00 100.00
IMAJE MERKINTA OY Finland 100.00 100.00
IMAJE TAIWAN LTD Taiwan 100.00 100.00
- -----------------------------------------------------------------------------------------------------------
(1) In accordance with Malay legal requirements, Imaje S.A. holds a 49 % share
in Imaje C.T SDN BHD. However, in conformity with a C.N.C. pronouncement in
November 1994, the Malay subsidiary has been integrated globally.
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- - COMPANIES EXCLUDED FROM THE SCOPE OF CONSOLIDATION.
IMAJE CODING TECHNOLOGY PVT.LTD. (INDIA)
The 40% shareholding of Imaje S.A. is not material in terms of the Imaje Group.
The investment in this company has been fully provided for.
The most recent financial statements of this company in the period to 31 March
1994 recorded a loss of FF 59,000.
Net equity amounted to FF 614,000.
- - CHANGES IN THE CONSOLIDATION SCOPE DURING THE YEAR.
The Brazilian subsidiary has been consolidated for the first time in 1994. The
Finnish and Taiwanese subsidiaries were created in 1994.
2. DIFFERENCE ARISING ON FIRST CONSOLIDATION - UNALLOCATED.
- ------------------------------------------------------------------------------------------------------------------
Balance at Balance at
Categories 01/01/1994 Increase Decrease 12/31/1994
- ------------------------------------------------------------------------------------------------------------------
Gross 39,367 2,319 41,686
Amortization 8,135 31,317 39,452
- ------------------------------------------------------------------------------------------------------------------
Net 31,232 -28,998 2,234
==================================================================================================================
3. FIXED ASSETS
- ------------------------------------------------------------------------------------------------------------------
Gross values (1) Balance at Exchange Balance at
Categories 01.01.1994 Difference Increase Decrease 12/31/1994
- ------------------------------------------------------------------------------------------------------------------
Land 10,500 -86 1,177 2,714 8,877
Buildings 57,952 -1,400 6,473 2,276 60,749
Plant and machinery 58,980 -764 13,383 17,598 54,001
Motor vehicles 9,010 -670 1,782 2,781 7,341
Fixtures & office equipment 22,727 -525 2,383 3,757 20,828
Other fixed assets 27,317 -98 2,728 11,429 18,518
Additions in progress 3,388 94 3,388 94
- ------------------------------------------------------------------------------------------------------------------
Total 189,874 -3,543 28,020 43,943 170,408
==================================================================================================================
- ------------------------------------------------------------------------------------------------------------------
Accumulated
depreciation Balance at Exchange Balance at
categories 01.01.1994 difference Increase Decrease 12/31/1994
- ------------------------------------------------------------------------------------------------------------------
Land & improvements 1,058 414 115 1,356
Buildings 14,143 -166 5,892 2,354 17,515
Plant & machinery 41,507 -298 11,437 14,300 38,346
Motor vehicles 5,218 -204 1,562 1,920 4,656
Fixtures & office equipment 11,727 -97 4,427 2,392 13,665
Other fixed assets 18,211 -223 3,838 10,502 11,324
- ------------------------------------------------------------------------------------------------------------------
Total 91,864 -988 27,570 31,585 86,861
==================================================================================================================
(1) The gross value of assets acquired under capital leases and capitalized for
consolidation purposes FF 26,003,000 at 31 December 1994.
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4. FINANCIAL FIXED ASSETS.
- ------------------------------------------------------------------------------------------------------------------
Gross values Balance at Exchange Balance
Categories 01.01.1994 difference Increase Decrease 12/31/1994
- ------------------------------------------------------------------------------------------------------------------
Non-consolidated
investments 2,840 2,540 300
Other investments 619 -11 221 387
Loans 314 99 94 319
Deposits & guarantees 7,495 -117 1,262 378 8,262
- ------------------------------------------------------------------------------------------------------------------
11,268 -128 1,361 3,233 9,268
==================================================================================================================
5. MOVEMENTS IN SHAREHOLDERS' EQUITY
- -------------------------------------------------------------------------------------------------------------------
Overall shareholders' equity 31.12.1993 25,199
- -------------------------------------------------------------------------------------------------------------------
Exchange difference arising on reserves -5,361
Purchase of minority interests -5,684
Increase in share capital (conversation of convertible debt) 35,913
Share issue premium (conversion of convertible debt) 18,466
Interim dividends paid to third parties -6,381
1994 income 87,269
Exchange difference arising on income for the year -778
Other movements -1,118
- -------------------------------------------------------------------------------------------------------------------
Overall shareholders' equity 31.12.1994 147,525
- -------------------------------------------------------------------------------------------------------------------
The movement during the year of the minority interest in overall shareholders'
equity is due to the merger between Imaje and Sofimaje, by the purchase of
virtually all the minority interests in the foreign subsidiaries and by
distribution of dividends.
6. PROVISIONS FOR LIABILITIES AND CHARGES
- -------------------------------------------------------------------------------------------------------------------
7 Categories
- -------------------------------------------------------------------------------------------------------------------
Customer guarantees 6,472
Employee profit sharing 2,941
Subsidies to be refunded 4,074
Commercial disputes 2,764
Social disputes 2,030
Deferred taxes 510
Other liabilities and charges 7,523
- -------------------------------------------------------------------------------------------------------------------
Total 26,314
===================================================================================================================
The deferred tax provision amounted to FF 538,000 at 31 December 1993.
Deferred tax assets totaling FF 15,802,000 at 31 December 1994 are included in
the balance sheet category "other receivables". They amounted to FF 16,880,000
at 31 December 1993.
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7. DEBT
- -------------------------------------------------------------------------------------------------------------------
Category 12/31/1994
- -------------------------------------------------------------------------------------------------------------------
Convertible debt 6,800
Bank loans 58,310
Capital lease obligations (calculated for consolidation purposes) 19,590
Bank overdrafts 4,554
Other financial debt 2,354
- -------------------------------------------------------------------------------------------------------------------
Total 91,608
===================================================================================================================
- -------------------------------------------------------------------------------------------------------------------
Debt repayment schedule 12/31/1994
- -------------------------------------------------------------------------------------------------------------------
Due in less than 1 year 12,829
Due between 1 and 5 years 58,441
Due after 5 years 20,338
- -------------------------------------------------------------------------------------------------------------------
Total 91,608
===================================================================================================================
8. ANALYSIS OF SALES BY GEOGRAPHICAL AREA
- -------------------------------------------------------------------------------------------------------------------
Area 1994 1993
- -------------------------------------------------------------------------------------------------------------------
Europe 489,835 62% 429,742 63%
America 122,960 15% 100,111 15%
Asia and Oceania 182,038 23% 151,940 22%
- -------------------------------------------------------------------------------------------------------------------
794,833 100% 681,793 100%
===================================================================================================================
9. ANALYSIS OF NET FINANCIAL EXPENSE
- ------------------------------------------------------------------------------------------------------------------
1994 1993
- ------------------------------------------------------------------------------------------------------------------
Financial income 2,404 2,340
Financial expense -15,758 -36,458
Net exchange loss -8,127 -5,082
- ------------------------------------------------------------------------------------------------------------------
Net financial expense -21,481 -39,200
==================================================================================================================
10. ANALYSIS OF NET EXCEPTIONAL EXPENSE
- -------------------------------------------------------------------------------------------------------------------
1994
- -------------------------------------------------------------------------------------------------------------------
Loss on disposal of assets -4,955
Other -3,768
- -------------------------------------------------------------------------------------------------------------------
Net exceptional expense -8,722
===================================================================================================================
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11. RESEARCH AND DEVELOPMENT EXPENDITURE
Research and development expenditure amounted to FF 43 millions during 1994
compared to FF 51 millions in 1993.
12. EARNINGS PER SHARE
- ------------------------------------------------------------------------------------------------------------------
12/31/1994 12/31/1993
- ------------------------------------------------------------------------------------------------------------------
Number of shares 1,354,091 503,911
Net Group income per share (FF) 64.35 24.10
==================================================================================================================
13. ANALYSIS OF AVERAGE NUMBER OF EMPLOYEES
- ------------------------------------------------------------------------------------------------------------------
1994 1993
- ------------------------------------------------------------------------------------------------------------------
Management 45 48
Administration 143 147
Logistics 72 66
Production 124 150
Technical 270 285
Sales and marketing 179 195
Research 77 81
- ------------------------------------------------------------------------------------------------------------------
Total 910 972
===================================================================================================================
14. COMMITMENTS AND GUARANTEES
- -------------------------------------------------------------------------------------------------------------------
1994
- -------------------------------------------------------------------------------------------------------------------
Discounted notes not yet due 2,376
Guarantees and securities given 33,071
Capital leases not capitalized 3,888
Forward sales of currencies 5,964
Debt guaranteed by collateral 13,142
- -------------------------------------------------------------------------------------------------------------------
Total 58,440
===================================================================================================================
Forward sales of currencies are linked to group commercial transactions.
Unrealized losses are provided for.
18
19
(b) Pro forma financial information.
DOVER CORPORATION AND IMAJE, S.A.
PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
The pro forma condensed combined financial information gives effect on
a purchase accounting basis to the acquisition by Dover Corporation (the
"Company") of Imaje, S.A. ("Imaje"). (See item 2 of this Form 8-K/A for a
description of the transaction.)
The pro forma condensed combined balance sheet assumes that the
acquisition occurred on June 30, 1995, whereas the pro forma condensed combined
statements of earnings assume that the acquisition occurred on January 1, 1994.
Although the Company used internally-generated funds to finance a portion of the
purchase price, the pro forma condensed combined statements assume that the
purchase price of Imaje stock was financed from borrowings.
The pro forma adjustments are based on preliminary assumptions of the
allocation of the purchase price and are subject to substantial revision once
appraisals and evaluations and other studies of the fair market value of the
Imaje assets and liabilities are completed. Accordingly, final purchase
accounting adjustments may differ substantially from the pro forma adjustments
presented herein.
The pro forma condensed combined financial statements are not
necessarily indicative of the results that actually would have occurred if the
acquisition had been in effect since the assumed dates, nor are they necessarily
indicative of future combined financial position or earnings. The Company's
future financial statements will reflect the acquisition of Imaje as of
September 29, 1995.
The pro forma condensed combined statements should be read in
conjunction with the consolidated financial statements of the Company filed with
the Securities and Exchange commission in its Annual Report on Form 10-K for the
calendar year ended December 31, 1994, and in its Quarterly Report on Form 10-Q
for the period ended June 30, 1995, and the financial statements of Imaje
included in this Form 8-K/A on pages 4 through 18.
Imaje has prepared its historical financial statements in French francs
and in conformity with the international accounting standards of the
International Accounting Standards Committee. The historical financial
statements shown for Imaje on the following pages have been translated into U.S.
dollars at the appropriate rates of exchange as indicated in the notes and
certain Imaje accounts have been reclassified to conform to the Company's method
of presentation. With respect to the historical balance sheets, the
reclassifications affected accounts receivable, income taxes payable and
deferred income taxes. With respect to the historical statements of earnings,
the reclassifications affected all of the condensed captions with the exception
of Net sales and Net earnings.
19
20
DOVER CORPORATION AND IMAJE, S.A.
PRO FORMA CONDENSED COMBINED BALANCE SHEET
AT JUNE 30, 1995 ( UNAUDITED )
HISTORICAL PRO FORMA
---------- ---------
DOVER IMAJE Adjustments COMBINED
----- ----- ----------- --------
(in thousands of U.S. dollars)
ASSETS
Cash and equivalents $ 80,643 $25,706 $ $ 106,349
Marketable securities 63,680 63,680
Receivables, net 664,295 32,765 697,060
Inventories 424,857 17,420 6,770 (b) 449,047
Other current assets 50,134 1,603 51,737
---------------------------------------------------------
Total current assets 1,283,609 77,494 6,770 1,367,873
Property, plant and equipment, net 377,012 15,210 18,060 (b) 410,282
Intangible assets, net of amortization 597,470 1,009 153,996 (b) 752,475
Other intangible assets 10,258 10,258
Other assets and deferred charges 55,676 2,201 57,877
---------------------------------------------------------
TOTAL ASSETS $2,324,025 $95,914 $178,826 $2,598,765
=========================================================
LIABILITIES
Notes payable $ 329,003 $211,551 (a) $ 540,554
Current maturities of long-term debt 298 $ 2,541 2,839
Accounts payable 160,842 12,670 173,512
Accrued expenses 376,712 19,916 396,628
Federal and other taxes on income 29,893 7,336 37,229
---------------------------------------------------------
Total current liabilities 896,748 42,463 211,551 1,150,762
Long-term debt 256,103 16,489 272,592
Deferred income taxes 1,859 (5,854) 10,091 (b) 6,096
Other deferrals 50,355 50,355
---------------------------------------------------------
Total liabilities 1,205,065 53,098 221,642 1,479,805
---------------------------------------------------------
STOCKHOLDERS' EQUITY
Common stock 58,104 27,082 (27,082)(c) 58,104
Additional paid-in-capital 412 7,455 (7,455)(c) 412
Other stockholders' equity 1,060,444 8,279 (8,279)(c) 1,060,444
---------------------------------------------------------
Total stockholders' equity 1,118,960 42,816 (42,816) 1,118,960
---------------------------------------------------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $2,324,025 $95,914 $178,826 $2,598,765
=========================================================
See notes to pro forma condensed combined balance sheet.
20
21
DOVER CORPORATION AND IMAJE, S.A.
NOTES TO PRO FORMA CONDENSED COMBINED BALANCE SHEET
AT JUNE 30, 1995
(UNAUDITED AND IN THOUSANDS OF U.S. DOLLARS)
The historical balance sheet of Imaje was prepared in French francs and
translated into U.S. dollars at FF 5 per U.S. dollar, the approximate exchange
rate in effect on June 30,1995.
The following is a summary of the adjustments reflected in the pro
forma condensed combined balance sheet:
(a) Purchase price for Imaje stock $209,941
Estimated capitalized fees 1,610
--------
$211,551
========
For purposes of the pro forma condensed combined balance sheet it has
been assumed that the purchase price for Imaje stock was raised through
borrowed funds.
(b) Adjustment of historical values of certain acquired assets to estimated fair
values, and applicable estimated write off period:
Inventory (3 months) $ 6,770
Property. plant and equipment (10 years) 18,060
Goodwill & other intangibles:
Goodwill (40 years) 149,996
Patents (10 years) 4,000 153,996
-------
Deferred taxes - liability (3 months to 10 years) 10,091
(c) Elimination of Imaje's stockholders' equity accounts.
21
22
DOVER CORPORATION AND IMAJE, S.A.
PRO FORMA CONDENSED COMBINED STATEMENT OF EARNINGS
FOR THE SIX MONTHS ENDED JUNE 30, 1995
( UNAUDITED )
HISTORICAL PRO FORMA
---------- ---------
DOVER IMAJE Adjustments COMBINED
----- ----- ----------- --------
(in thousands of U.S. dollars)
Net sales $1,802,293 $82,276 $ $1,884,569
Cost of sales 1,229,221 35,088 877 (a) 1,265,186
-------------------------------------------------------------
Gross profit 573,072 47,188 (877) 619,383
Selling, and administrative expenses 356,082 24,738 2,101 (a) 382,921
-------------------------------------------------------------
Operating profit 216,990 22,450 (2,978) 236,462
Interest expense, interest income, and
other deductions, net 4,122 1,279 7,086 (c) 12,487
-------------------------------------------------------------
Earnings before taxes on income 212,868 21,171 (10,064) 223,975
(386)(b)
Federal and other taxes on income 74,177 5,949 (2,480)(d) 77,260
-------------------------------------------------------------
Net earnings $ 138,691 $15,222 $ (7,198) $ 146,715
=============================================================
See notes to pro forma condensed combined statement of earnings.
22
23
DOVER CORPORATION AND IMAJE, S.A.
NOTES TO PRO FORMA CONDENSED COMBINED STATEMENT OF EARNINGS
FOR THE SIX MONTHS ENDED JUNE 30, 1995
(UNAUDITED AND IN THOUSANDS OF U.S. DOLLARS)
The historical statement of earnings of Imaje was prepared in French
francs and translated into U.S. dollars at FF 4.9832 per U.S. dollar, the
approximate average exchange rate in effect for the six month period ended June
30,1995.
The following is a summary of the adjustments reflected in the pro
forma condensed combined statement of earnings:
(a) Earnings effect of adjustments of assets to their estimated fair market
values:
Cost Selling and
Of Administrative
Sales Expenses
----- --------------
Fixed assets; depreciation $ 677 $ 226
Intangible assets; amortization:
Patents 200
Goodwill 1,875
------------------------
$ 877 $2,101
========================
(b) Reversal of applicable deferred taxes $(386)
=====
(c) Additional interest expense of $7,086 based on assumed borrowings of
$209,941 for the cost of the Imaje stock, at a rate of 6.75% which rate is
based on rates currently available to the Company. For every 1% change in the
assumed interest rate, there would be a corresponding effect of approximately
$1,049 on pro forma combined net earnings.
(d) Recognition of income tax effects of above interest expense.
23
24
DOVER CORPORATION AND IMAJE, S.A.
PRO FORMA CONDENSED COMBINED STATEMENT OF EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1994
(UNAUDITED)
HISTORICAL PRO FORMA
---------- ---------
DOVER IMAJE Adjustments COMBINED
----- ----- ----------- --------
(in thousands of U.S. dollars)
Net sales $3,085,276 $144,025 $ $3,229,301
Cost of sales 2,137,477 67,480 8,525 (a) 2,213,482
------------------------------------------------------------
Gross profit 947,799 76,545 (8,525) 1,015,819
Selling, and administrative expenses 622,434 49,257 4,202 (a) 675,893
------------------------------------------------------------
Operating profit 325,365 27,288 (12,727) 339,926
Interest expense, interest income, and
other deductions, net 18,506 3,810 14,172 (c) 36,488
------------------------------------------------------------
Earnings before taxes on income 306,859 23,478 (26,899) 303,438
(3,142)(b)
Federal and other taxes on income 104,486 7,688 (4,960)(d) 104,072
------------------------------------------------------------
Net earnings $ 202,373 $ 15,790 $(18,797) $ 199,366
============================================================
See notes to pro forma condensed combined statement of earnings.
24
25
DOVER CORPORATION AND IMAJE, S.A.
NOTES TO PRO FORMA CONDENSED COMBINED STATEMENT OF EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1994
(UNAUDITED AND IN THOUSANDS OF U.S. DOLLARS)
The historical statement of earnings of Imaje was prepared in French
francs and translated into U.S. dollars at FF 5.5187 per U.S. dollar, the
approximate average exchange rate in effect for the twelve month period ended
December 31, 1994.
The following is a summary of the adjustments reflected in the pro
forma condensed combined statement of earnings:
(a) Earnings effect of adjustments of assets to their estimated fair market
values:
Cost Selling and
Of Administrative
Sales Expenses
----- --------------
Inventory $ 6,770 $
Fixed assets; depreciation 1,355 452
Intangible assets; amortization:
Patents 400
Goodwill 3,750
-----------------------
$ 8,525 $4,202
=======================
(b) Reversal of applicable deferred taxes $(3,142)
========
(c) Additional interest expense of $14,171 based on assumed borrowings of
$209,941 for the cost of the Imaje stock, at a rate of 6.75% which rate is
based on rates currently available to the Company. For every 1% change in the
assumed interest rate, there would be a corresponding effect of approximately
$2,099 on pro forma combined net earnings.
(d) Recognition of income tax effects of above interest expense.
25
26
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this amendment on Form 8K/A No. 1 to be signed on
its behalf by the undersigned hereunto duly authorized.
DOVER CORPORATION
(Registrant)
Date: October 25, 1995 By /s/ Robert G. Kuhbach
---------------------------------
Robert G. Kuhbach, Vice President,
General Counsel & Secretary
26
