Current Report — Form 8-K
Filing Table of Contents
Document/Exhibit Description Pages Size
1: 8-K Current Report 2 16K
2: EX-2.(A) Asset Purchase Agreement 53 176K
3: EX-2.(B) Amendment No. 1 to Purchase Agreement 5 13K
4: EX-2.(C) Amendment No. 2 to Purchase Agreement 11 30K
5: EX-28 Unaudited Proforma Income Statements 4± 24K
EX-28 — Unaudited Proforma Income Statements
| EX-28 | 1st “Page” of 2 | TOC | ↑Top | Previous | Next | ↓Bottom | Just 1st |
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Exhibit 28
Pro Forma Financial Information
Favorite Brands International, Inc. and its subsidiaries ("Favorite Brands")
completed the sale of substantially all of their assets to Nabisco, Inc. on
November 19, 1999. The pro forma income statement data for the year ended June
26, 1999 and the seventeen weeks ended October 23, 1999 presented below have
been prepared assuming Favorite Brands consummated the sale and repaid its
senior secured credit facility at the beginning of the period presented and
reflect other adjustments relating to the disposition. The pro forma balance
sheet data as of October 23, 1999 assumes Favorite Brands consummated the sale
on October 23, 1999. The pro forma income statement and balance sheet data
presented below is unaudited. As described above, the purchase price may be
adjusted based upon working capital balances as of the closing date. The pro
forma income statement and balance sheet data assume that there is no adjustment
to the purchase price. The pro forma income statement data is not necessarily
indicative of what the actual results of operations would have been had the
transaction occurred at the beginning of the period presented, nor do they
purport to indicate the results of future operations. All amounts are in
thousands except per share data.
Income Statement Data:
Favorite Brands International, Inc. and Subsidiaries
[Enlarge/Download Table]
Pro Forma
Year Ended Pro Forma Adjustments Year Ended
June 26, 1999 DR CR June 26, 1999
------------- -- -- -------------
(Unaudited) (Unaudited)
Net sales........................................................$ 733,327 $733,327 (a) $ -
Costs and expenses:
Cost of sales............................................... 460,362 $ 460,362 (a) -
Selling, marketing and administrative....................... 269,055 269,055 (a) -
Amortization of intangible assets........................... 18,488 18,488 (a) -
Restructuring and business integration costs................ 1,320 1,320 (a) -
Goodwill write-off.......................................... 50,000 50,000 (a) -
------------- -------------------- ------------
799,225 - 799,225 -
Loss from operations............................................. (65,898) 733,327 (799,225) -
Interest expense (income)................................... 50,180 64,180 (b) (14,000)
Reorganization charges under Chapter 11..................... 20,191 12,807 (c) 7,384
------------- -------------------- ------------
Loss before income taxes......................................... (136,269) 733,327 (876,212) 6,616
Provision for income taxes.................................. 48,151 48,151 (a) -
------------- -------------------- ------------
Loss before extraordinary charge and cumulative
effect of change in accounting principle....................$ (184,420) $733,327 $(924,363) $ 6,616
============= ==================== ============
Pro Forma
Seventeen Seventeen
Weeks Ended Pro Forma Adjustments Weeks Ended
October 23, 1999 DR CR October 23, 1999
---------------- -- -- ----------------
(Unaudited) (Unaudited) (Unaudited)
Net sales........................................................$ 225,839 $225,839 (a) $ -
Costs and expenses:
Cost of sales............................................... 140,816 $ 140,816 (a) -
Selling, marketing and administrative....................... 63,407 63,407 (a) -
Amortization of intangible assets........................... 5,350 5,350 (a) -
------------- ------------------- ------------
209,573 - 209,573 -
Income from operations........................................... 16,266 225,839 (209,573) -
Interest expense (income)................................... 5,956 - 10,956 (b) (5,000)
Reorganization charges under Chapter 11..................... 5,413 - 2,222 (c) 3,191
------------- ------------------- ------------
Income before income taxes....................................... 4,897 225,839 (222,751) 1,809
Provision for income taxes.................................. - - - -
------------- ------------------- ------------
Income (loss) before cumulative effect of change
in accounting principle.....................................$ 4,897 $225,839 $(222,751) $ 1,809
============= =================== ============
Balance Sheet Data:
Favorite Brands International, Inc. and Subsidiaries
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Pro Forma
October 23, Pro Forma Adjustments October 23,
1999 DR CR 1999
----------- -- -- -----------
(Unaudited) (Unaudited) (Unaudited)
Current Assets:
Cash and cash equivalents................................$ 21,694 $475,000 $219,424 (d) $277,270
Accounts receivable, net................................. 59,926 59,713 (e) 213
Inventories.............................................. 72,493 72,493 (e) -
Prepaid expenses and other current assets................ 11,139 - 10,837 (e) 302
---------- -------- -------- --------
Total current assets........................... 165,252 475,000 362,467 277,785
---------- -------- -------- --------
Property, Plant and Equipment, at Cost:
Land..................................................... 5,200 5,200 (e) -
Buildings................................................ 75,224 75,224 (e) -
Machinery and equipment.................................. 236,482 236,482 (e) -
Construction in progress................................. 10,131 - 10,131 (e) -
---------- -------- -------- --------
327,037 - 327,037 -
Less accumulated depreciation............................ 83,098 - 83,098 (e) -
---------- -------- -------- --------
243,939 - 243,939 -
---------- -------- -------- --------
Other Assets:
Intangible assets, net................................... 266,090 266,090 (f) -
Other assets............................................. 1,469 - 190 (e) 1,279
---------- -------- -------- --------
267,559 - 266,280 1,279
---------- -------- -------- --------
$ 676,750 $475,000 $872,686 $279,064
---------- -------- -------- --------
Current Liabilities:
Accounts payable and accrued liabilities.................$ 61,402 $ 51,139 (e) $ 10,263
Other current liabilities................................ 1,040 579 - (e) 461
---------- -------- -------- --------
Total current liabilities...................... 62,442 51,718 - 10,724
---------- -------- -------- --------
Noncurrent Liabilities:
Other long-term liabilities.............................. 2,299 2,299 - (e) -
---------- -------- -------- --------
Total noncurrent liabilities................... 2,299 2,299 - -
---------- -------- -------- --------
Prepetition Secured Debt...................................... 200,500 200,500 (d) -
Liabilities subject to compromise............................. 463,837 6,400 (d) 457,437
Commitments and Contingencies................................. - - - -
---------- -------- -------- --------
Total liabilities............................. 729,078 260,917 - 468,161
---------- -------- -------- --------
Stockholder's Equity:
Common Stock, $.01 par value; 1,000 shares authorized,
issued and outstanding......................... - -
Additional paid-in capital............................... 195,751 195,751
Accumulated deficit...................................... (248,079) 136,769 - (f) (384,848)
---------- -------- -------- --------
Total stockholder's equity..................... (52,328) 136,769 - (189,097)
---------- -------- -------- --------
$ 676,750 $397,686 $ - $279,064
---------- -------- -------- --------
Favorite Brands International, Inc. and Subsidiaries
Notes To Pro Forma Financial Information
(a) Pro forma adjustment arises from the sale of substantially all assets of
Favorite Brands as if the transaction had been consummated as of the
beginning of the period for which the pro forma financial statement is
presented.
(b) Pro forma adjustment arises from the estimation of interest income earned
on the proceeds of the sale of Favorite Brands and the elimination of
interest expense on all debt as if the transaction had been consummated as
of the beginning of the period for which the pro forma financial statement
is presented. For purposes of preparing the pro forma income statement
data, it has been assumed that no interest is paid on the senior notes and
senior subordinated notes. The determination of whether or not interest is
paid on these instruments will be made when the Company's plan of
liquidation is developed and approved.
(c) If Favorite Brands had completed the sale at the beginning of the period
presented, the only activities during the period would have been winding
down the affairs of the entities and administering Favorite Brands'
bankruptcy estate. Therefore, the pro forma adjustment eliminates the
reorganization charges under Chapter 11 that were actually incurred during
this period and adds back an estimate of the reorganization charges
Favorite Brands would have incurred as if the sale had occurred at the
beginning of the period.
(d) Pro forma adjustments arise from the proceeds received from the buyer,
$475,000 and the payment of $201,615 to Favorite Brands' senior secured
debt holders including interest and fees, the payment of $11,400 relating
to transaction fees, the payment of $6,400 of cure costs as required by the
sale agreement, and $9 transferred to the buyer. No adjustment to the
purchase price is assumed as a result of working capital balances as of the
closing date.
(e) Pro forma adjustments to accounts receivable, inventory, prepaid and other
assets, fixed assets, accounts payable, accruals and other liabilities
arise due to the sale of such assets to the buyer and the assumption of
such liabilities by the buyer as if the transaction was consummated on
October 23, 1999.
(f) Pro forma adjustments to goodwill and equity result from the loss incurred
from the transaction as if the sale had been consummated on October 23,
1999.
Dates Referenced Herein and Documents Incorporated by Reference
| Referenced-On Page |
|---|
| This ‘8-K’ Filing | | Date | | First | | Last | | | Other Filings |
|---|
| |  |
| Filed on: | | 12/6/99 |
| For Period End: | | 11/19/99 | | 1 |
| | 10/23/99 | | 1 | | 2 |
| | 6/26/99 | | 1 | | | | | 8-K, 8-K/A |
| List all Filings |
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