Attached files
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| 8-K/A - 8-K/A - ARC Group Worldwide, Inc. | f8-ka.htm |
ARC GROUP WORLDWIDE, INC.
PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
INTRODUCTION TO UNAUDITED PRO FORMA
CONDENSED COMBINED FINANCIAL STATEMENTS
On September 15, 2017, ARC Group Worldwide, Inc. (“ARC” or the “Company”) completed the sale of its non-core subsidiary, General Flange & Forge LLC (“GF&F”). The unaudited pro forma combined financial data presented herein is derived from the historical condensed consolidated financial statements of the Company and the historical financial statements of GF&F.
The accompanying unaudited pro forma condensed combined financial information should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and the financial statements and related notes contained in the Company’s annual report on Form 10-K filed with the Securities and Exchange Commission for the year ended June 30, 2017, as well as other financial information filed with the Securities and Exchange Commission.
The unaudited pro forma condensed combined financial information is presented for illustrative purposes only and is not necessarily indicative of the operating results or financial position that might have been achieved had the transaction occurred as of an earlier date, and they are not necessarily indicative of future operating results or financial position. These pro forma amounts do not, therefore, project ARC’s financial position or results of operations for any future date or period.
ARC GROUP WORLDWIDE, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
AS OF JUNE 30, 2017
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ARC Group Worldwide, Inc. |
Pro Forma |
Notes |
ARC Group Worldwide, Inc. Pro Forma |
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(Historical) |
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ASSETS |
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Current Assets: |
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Cash |
$ |
593 |
$ |
3,000 |
(a) |
$ |
3,593 | ||||||||||
|
Accounts Receivable, Net |
10,488 |
— |
10,488 | ||||||||||||||
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Inventories, Net |
14,369 |
— |
14,369 | ||||||||||||||
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Prepaid and Other Current Assets |
3,152 |
— |
3,152 | ||||||||||||||
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Current Assets of Discontinued Operations |
1,452 | (1,452 |
) |
(b) |
— |
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Total Current Assets |
30,054 | 1,548 | 31,602 | ||||||||||||||
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Property and Equipment, net |
41,349 |
— |
41,349 | ||||||||||||||
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Goodwill |
6,412 |
— |
6,412 | ||||||||||||||
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Intangible Assets, net |
19,624 |
— |
19,624 | ||||||||||||||
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Other |
291 |
— |
291 | ||||||||||||||
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Long-term Assets of Discontinued Operations |
1,893 | (1,893 |
) |
(b) |
— |
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Total Assets |
$ |
99,623 |
$ |
(345 |
) |
$ |
99,278 | ||||||||||
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LIABILITIES AND EQUITY |
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Current Liabilities: |
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Accounts Payable |
$ |
8,681 |
$ |
— |
$ |
8,681 | ||||||||||||||||||||
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Accrued Expenses and Other Current Liabilities |
4,438 |
— |
4,438 | |||||||||||||||||||||||
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Bank Borrowings, Current Portion of Long-Term Debt |
1,701 |
— |
1,701 | |||||||||||||||||||||||
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Capital Lease Obligations, Current Portion |
1,470 |
— |
1,470 | |||||||||||||||||||||||
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Accrued Escrow Obligations, Current Portion |
1,212 |
— |
1,212 | |||||||||||||||||||||||
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Current Liabilities of Discontinued Operations |
283 | (283 |
) |
(b) |
— |
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Total Current Liabilities |
17,785 | (283 |
) |
17,502 | ||||||||||||||||||||||
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Long-Term Debt, Net of Current Portion |
42,822 |
— |
42,822 | |||||||||||||||||||||||
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Capital Lease Obligations, Net of Current Portion |
1,888 |
— |
1,888 | |||||||||||||||||||||||
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Accrued Escrow Obligations, Net of Current Portion |
1,184 |
— |
1,184 | |||||||||||||||||||||||
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Other Long-Term Liabilities |
1,017 |
— |
1,017 | |||||||||||||||||||||||
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Long-Term Liabilities of Discontinued Operations |
260 |
— |
260 | |||||||||||||||||||||||
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Total Liabilities |
64,956 | (283 |
) |
64,673 | ||||||||||||||||||||||
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Equity: |
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Common Stock |
10 |
— |
10 | |||||||||||||||||||||||
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Treasury Stock |
(94 |
) |
— |
(94 |
) |
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Additional Paid-In Capital |
31,109 |
— |
31,109 | |||||||||||||||||||||||
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Retained Earnings |
3,569 | (62 |
) |
(c) |
3,507 | |||||||||||||||||||||
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Accumulated Other Comprehensive Income |
73 |
— |
73 | |||||||||||||||||||||||
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Total Equity |
34,667 | (62 |
) |
34,605 | ||||||||||||||||||||||
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Total Liabilities and Equity |
$ |
99,623 |
$ |
(345 |
) |
$ |
99,278 | |||||||||||||||||||
See accompanying notes to these unaudited pro forma condensed combined balance sheet
ARC GROUP WORLDWIDE, INC.
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
NOTE 1 - Basis of Presentation
The unaudited pro forma condensed combined balance sheet is based on ARC’s historical consolidated financial statements as adjusted to give effect to the disposition of General Flange & Forge LLC (“GF&F”). The unaudited pro forma combined balance sheet as of June 30, 2017 gives effect to the GF&F disposition as if it had occurred on June 30, 2017. No unaudited pro forma combined statement of operations is included as the transaction is already reflected as discontinued operations in the Company’s statement of operations for the year ended June 30, 2017, as disclosed in the Company’s Form 10-K.
NOTE 2 - Pro Forma Adjustments
The pro forma adjustments are based on our preliminary estimates and assumptions that are subject to change. The following adjustments have been reflected in the pro forma condensed combined balance sheet:
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(a) |
Represents the cash consideration at the closing of the transaction of $3.0 million. |
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(b) |
Reflects the elimination of assets and liabilities attributable to GF&F and not retained by ARC Group Worldwide, Inc. |
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(c) |
Reflects the loss of approximately $0.1 million arising from the transaction. No adjustment has been made to the sale proceeds to give effect to any potential post-closing adjustments under the terms of the asset purchase agreement. |