UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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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): October 30, 2004
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E-Z-EM, INC.
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(Exact Name of Registrant as Specified in its Charter)
Delaware
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(State or Other Jurisdiction of Incorporation)
1-11479 11-1999504
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(Commission File Number) (IRS Employer Identification No.)
1111 Marcus Avenue, Lake Success, New York 11042
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(Address of Principal Executive Offices) (Zip Code)
(516) 333-8230
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(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions.
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.01 Completion of Acquisition or Disposition of Assets
On October 30, 2004, E-Z-EM, Inc. (the "Company") completed the
spin-off of its subsidiary, AngioDynamics, Inc. when it distributed
.856377 of a share of AngioDynamics common stock as a dividend on
each outstanding share of E-Z-EM common stock to E-Z-EM stockholders
of record as of October 11, 2004. An aggregate of 9.2 million shares
was distributed by the Company. A copy of the press release issued
by the Company on November 4, 2004 announcing its completion of the
spin-off is being filed as Exhibit 99.1 to this Form 8-K and is
incorporated by reference in its entirety.
ITEM 9.01 Financial Statements and Exhibits
(b) Pro Forma financial information
PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The unaudited pro forma condensed consolidated financial information
of the Company is based on and should be read in conjunction with
the historical consolidated financial statements and notes thereto
appearing in the Company's Annual Report on Form 10-K for the fiscal
year ended May 29, 2004 and the unaudited consolidated financial
statements filed in the Company's Quarterly Report on Form 10-Q for
the thirteen weeks ended August 28, 2004. The Pro Forma Condensed
Consolidated Balance Sheet as of August 28, 2004 reflects the
financial position of the Company after giving effect to the
spin-off of AngioDynamics and assumes the spin-off took place on
August 28, 2004. The Pro Forma Condensed Consolidated Statements of
Earnings for the thirteen weeks ended August 28, 2004 and the
fifty-two weeks ended May 29, 2004, May 31, 2003 and June 1, 2002
assume that the spin-off of AngioDynamics took place at the
beginning of the fifty-two week period ended June 1, 2002.
In the opinion of management, the accompanying pro forma condensed
consolidated financial information includes all material adjustments
necessary to reflect, on a pro forma basis, the impact of the
spin-off on the historical financial information of the Company. The
adjustments are described in the notes to the unaudited pro forma
condensed consolidated financial statements and are set forth in the
"Pro Forma Adjustments" columns.
The unaudited pro forma condensed consolidated financial information
has been presented for illustrative purposes only and is not
necessarily indicative of the future financial position or future
results of operations of the Company, or of the financial position
or results of operations of the Company that would have actually
occurred had the transaction been in effect as of the date or for
the periods presented.
2
E-Z-EM, Inc. and Subsidiaries
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
August 28, 2004
(unaudited)
Pro Forma Adjustments
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As Angio- Pro
Reported Dynamics (A) Other Forma
-------- ------------ ----- -----
(in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents................... $ 30,127 $20,749 $ 9,378
Restricted cash............................. 102 102
Debt and equity securities, at fair value... 16,923 739 16,184
Accounts receivable, net.................... 22,309 7,176 $ 409 (B) 15,542
Inventories................................. 29,371 9,216 55 (C) 20,210
Other current assets........................ 6,719 1,221 5,498
-------- ------- ------- -------
Total current assets...................... 105,551 39,203 464 66,812
PROPERTY, PLANT AND EQUIPMENT -
AT COST, net................................ 23,520 7,450 16,070
OTHER ASSETS.................................. 13,314 1,977 11,337
-------- ------- ------- -------
$142,385 $48,630 $ 464 $94,219
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable............................... $ 394 $ 394
Current maturities of long-term debt........ 291 $ 160 131
Accounts payable............................ 6,806 2,122 $ 106 (B) 4,790
Accrued liabilities......................... 7,605 2,107 5,498
Accrued income taxes........................ 590 145 445
Due to E-Z-EM, Inc.......................... 303 303 (B)
-------- ------- ------- -------
Total current liabilities................. 15,686 4,837 409 11,258
OTHER NONCURRENT LIABILITIES.................. 6,735 3,060 3,675
MINORITY INTEREST............................. 7,983 (7,983) (D)
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Total liabilities......................... 30,404 7,897 (7,574) 14,933
STOCKHOLDERS' EQUITY.......................... 111,981 40,733 8,038 (E) 79,286
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$142,385 $48,630 $ 464 $94,219
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See accompanying Notes to Pro Forma Condensed Financial Information.
3
E-Z-EM, Inc. and Subsidiaries
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
Thirteen weeks ended August 28, 2004
(unaudited)
Pro Forma Adjustments
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As Angio- Pro
Reported Dynamics (F) Other Forma
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(in thousands, except per share data)
Net sales..................................... $36,870 $13,105 $247 (G) $24,012
Cost of goods sold............................ 19,855 6,112 252 (H) 13,995
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Gross profit.............................. 17,015 6,993 (5) 10,017
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Operating expenses
Selling and administrative.................. 13,077 4,595 56 (I) 8,538
Plant closing and operational
restructuring costs....................... 601 601
Research and development.................... 2,156 1,128 1,028
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Total operating expenses................... 15,834 5,723 56 10,167
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Operating profit (loss)................... 1,181 1,270 (61) (150)
Other income.................................. 700 15 685
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Earnings before income taxes
and minority interest................... 1,881 1,285 (61) 535
Income tax provision (benefit)................ 484 524 (21) (N) (61)
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Earnings before minority interest......... 1,397 761 (40) 596
Minority interest............................. 146 (146) (O) --
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NET EARNINGS.............................. $ 1,251 $ 761 $106 $ 596
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Earnings per common share
Basic....................................... $ .12 $ .06
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Diluted..................................... $ .11 $ .05
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Weighted average common shares
Basic....................................... 10,732 10,732
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Diluted..................................... 10,932 10,932
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See accompanying Notes to Pro Forma Condensed Financial Information.
4
E-Z-EM, Inc. and Subsidiaries
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
Fifty-two weeks ended May 29, 2004
(unaudited)
Pro Forma Adjustments
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As Angio- Pro
Reported Dynamics (F) Other Forma
-------- ------------ ----- -----
(in thousands, except per share data)
Net sales..................................... $148,771 $49,055 $ 893 (G) $100,609
Cost of goods sold............................ 82,913 23,254 893 (H) 60,552
-------- ------- ----- --------
Gross profit.............................. 65,858 25,801 -- 40,057
-------- ------- ----- --------
Operating expenses
Selling and administrative.................. 48,847 17,127 308 (I) 32,028
Plant closing and operational
restructuring costs....................... 1,771 1,771
Research and development.................... 8,019 3,551 4,468
-------- ------- ----- --------
Total operating expenses................... 58,637 20,678 308 38,267
-------- ------- ----- --------
Operating profit.......................... 7,221 5,123 (308) 1,790
Other income (expense)........................ 2,702 (742) (485) (J) 2,959
-------- ------- ----- --------
Earnings before income taxes
and minority interest................... 9,923 4,381 (793) 4,749
Income tax provision.......................... 3,182 1,238 (114) (L) 1,830
-------- ------- ----- --------
Earnings before minority interest......... 6,741 3,143 (679) 2,919
Minority interest............................. 15 (15) (O) --
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NET EARNINGS.............................. $ 6,726 $ 3,143 $(664) $ 2,919
======== ======== ===== ========
Earnings per common share
Basic....................................... $ .65 $ .28
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Diluted..................................... $ .63 $ .27
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Weighted average common shares
Basic....................................... 10,344 10,344
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Diluted..................................... 10,625 10,625
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See accompanying Notes to Pro Forma Condensed Financial Information.
5
E-Z-EM, Inc. and Subsidiaries
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
Fifty-two weeks ended May 31, 2003
(unaudited)
Pro Forma Adjustments
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As Angio- Pro
Reported Dynamics (F) Other Forma
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(in thousands, except per share data)
Net sales..................................... $133,158 $38,434 $ 959 (G) $95,683
Cost of goods sold............................ 75,362 18,572 1,006 (H) 57,796
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Gross profit.............................. 57,796 19,862 (47) 37,887
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Operating expenses
Selling and administrative.................. 47,075 14,115 191 (I) 33,151
Asset impairment and facility
closing costs............................. 116 116
Research and development.................... 6,776 2,509 4,267
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Total operating expenses................... 53,967 16,624 191 37,534
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Operating profit.......................... 3,829 3,238 (238) 353
Other income (expense)........................ 409 (983) (726) (J) 666
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Earnings before income taxes.............. 4,238 2,255 (964) 1,019
Income tax provision.......................... 1,497 1,069 (71) (L) 357
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NET EARNINGS.............................. $ 2,741 $ 1,186 $ (893) $ 662
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Earnings per common share
Basic....................................... $ .27 $ .07
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Diluted..................................... $ .26 $ .06
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Weighted average common shares
Basic....................................... 10,048 10,048
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Diluted..................................... 10,419 10,419
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See accompanying Notes to Pro Forma Condensed Financial Information.
6
E-Z-EM, Inc. and Subsidiaries
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
Fifty-two weeks ended June 1, 2002
(unaudited)
Pro Forma Adjustments
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As Angio- Pro
Reported Dynamics (F) Other Forma
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(in thousands, except per share data)
Net sales..................................... $122,133 $30,890 $1,045 (G) $92,288
Cost of goods sold............................ 70,848 15,333 987 (H) 56,502
-------- ------- ------ -------
Gross profit.............................. 51,285 15,557 58 35,786
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Operating expenses
Selling and administrative.................. 41,766 11,218 146 (I) 30,694
Asset impairment and facility
closing costs............................. 1,393 1,393
Research and development.................... 6,220 1,951 2 (I) 4,271
-------- ------- ------ -------
Total operating expenses................... 49,379 13,169 148 36,358
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Operating profit (loss)................... 1,906 2,388 (90) (572)
Other income (expense)........................ 525 (818) (693) (K) 650
-------- ------- ------ -------
Earnings before income taxes.............. 2,431 1,570 (783) 78
Income tax provision.......................... 1,846 561 (311) (M) 974
-------- ------- ------ -------
NET EARNINGS (LOSS)....................... $ 585 $ 1,009 $ (472) $ (896)
======== ======= ====== =======
Earnings (loss) per common share
Basic....................................... $ .06 $ (.09)
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Diluted..................................... $ .06 $ (.09)
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Weighted average common shares
Basic....................................... 9,848 9,848
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Diluted..................................... 10,160 9,848
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See accompanying Notes to Pro Forma Condensed Financial Information.
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E-Z-EM, Inc. and Subsidiaries
NOTES TO PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
AND STATEMENTS OF EARNINGS
(unaudited)
(A) To eliminate the assets and liabilities of AngioDynamics included in
the Company's consolidated balance sheet at August 28, 2004.
(B) To reverse the elimination of amounts due to/from the Company and
AngioDynamics at August 28, 2004.
(C) To reverse the elimination of profit in ending inventory on
AngioDynamics sales to the Company at August 28, 2004.
(D) To eliminate the minority interest in AngioDynamics at August 28,
2004.
(E) To eliminate the minority interest in AngioDynamics of $7,983,000 and
to reverse the elimination of profit in ending inventory on
AngioDynamics sales to the Company of $55,000 at August 28, 2004.
(F) To eliminate the profit and loss of AngioDynamics for the entire
period.
(G) To reverse the elimination of AngioDynamics intercompany sales.
(H) To reverse the elimination of AngioDynamics intercompany cost of
goods sold.
(I) To reflect corporate allocations which were originally charged to
AngioDynamics, that would be recorded as an expense of the Company.
(J) To eliminate imputed interest income on loans to AngioDynamics, as
interest was suspended by the Company. Certain loans, which were
capitalized in connection with the initial public offering of
AngioDynamics, were assumed to be capitalized as of the earliest date
presented.
(K) To eliminate interest income on loans to AngioDynamics, as interest
was suspended by the Company. Certain loans, which were capitalized
in connection with the initial public offering of AngioDynamics, were
assumed to be capitalized as of the earliest date presented.
(L) To reflect the estimated income tax effect of the pro forma
adjustments referred to in Note (I) at the then annual effective
federal and state income tax rate. The imputed interest referred to
in Note (J) was not previously tax effected.
(M) To reflect the estimated income tax effect of the pro forma
adjustments referred to in Notes (I) and (K) at the then annual
effective federal and state income tax rate.
(N) To reflect the estimated income tax effect of the pro forma
adjustments referred to in Note (I) at the then annual effective
federal and state income tax rate.
(O) To eliminate the minority interest in the net earnings of
AngioDynamics.
8
(c) Exhibits
99.1 Press release dated November 4, 2004.
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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 hereunto duly authorized.
Dated: November 4, 2004 E-Z-EM, INC.
(Registrant)
By: /s/ Peter J. Graham
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Peter J. Graham
Vice President - General Counsel
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EXHIBIT INDEX
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Exhibit Description
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99.1 Press Release dated November 4, 2004.
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