UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549 - 1004
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) December 24, 2003
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COMMISSION FILE NUMBER 0-2413
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MacDermid, Incorporated
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(Exact name of registrant as specified in its charter)
Connecticut 06-0435750
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
245 Freight Street, Waterbury, Connecticut 06702
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (203) 575-5700
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None
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Former name, former address and former fiscal year, if changed
since last report.
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by section 13 or 15(d) of the Securities and Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that
the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days.
Yes X No
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ITEM 2: Acquisition or Disposition of Assets
MacDermid, Incorporated has brought its segment operations for electronics
manufacturing to a conclusion with the sale of its 60% interest in Eurocir S.A.
On December 9, 2003, MacDermid divested its 60% interest in Eurocir S.A. upon
signing a purchase and sale agreement with the 40% stakeholders of Eurocir S.A.
Eurocir S.A. is a Spanish producer of a wide variety of printed circuit boards
and will continue to be a significant customer of MacDermid. The sale price of
$5 million calls for $3 million upon signing and the remaining $2 million within
six years and will be used for general corporate purposes.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS:
7(b) Pro Forma Financial Information, Reflecting the Disposal of Eurocir
i. Unaudited Pro Forma Condensed Consolidated Balance Sheet as of
September 30, 2003
ii. Unaudited Pro Forma Condensed Consolidated Statement of
Earnings for the year ended December 21, 2002
iii. Unaudited Pro Forma Condensed Consolidated Statement of
Earnings for the nine months ended September 30, 2003
iv. Unaudited Pro Forma Condensed Consolidated Financial Statement
Adjustments
MACDERMID, INCORPORATED
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
(Amounts in Thousands of Dollars Except Per Share Amounts)
September 30, 2003
Pro Forma
Historical Adjustments Pro Forma
------------ ------------ -----------
Assets:
Current assets:
Cash and cash equivalents . . . . . . . . $ 30,105 ($130) (D) $ 29,975
Accounts and notes receivable, (net of
allowance for doubtful receivables of
$16,142) . . . . . . . . . . . . . . . 142,921 (10,936) (D) 131,985
Inventories:
Finished goods . . . . . . . . . . . . 45,103 (6,515) (D) 38,588
Raw materials, supplies and equipment. 43,209 (2,786) (D) 40,423
------------ ------------ -----------
88,312 (9,301) 79,011
Prepaid expenses. . . . . . . . . . . . . 8,512 8,512
Deferred income tax asset . . . . . . . . 22,310 (997) (D) 21,313
------------ ------------ -----------
Total current assets . . . . . . . . 292,160 (21,364) 270,796
Property, plant and equipment (net of
accumulated depreciation of $185,610). 127,635 (18,374) (D) 109,261
Goodwill. . . . . . . . . . . . . . . . . 194,200 194,200
Intangibles, (net of accumulated
amortization of $17,290) . . . . . . . 30,626 (31) (D) 30,595
Other assets. . . . . . . . . . . . . . . 57,500 57,500
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702,121 (39,769) 662,352
============ ============ ===========
Liabilities and shareholders' equity:
Current liabilities:
Notes payable . . . . . . . . . . . . . . 5,944 (4,800) (D) 1,144
Current installments of long-term
obligations . . . . . . . . . . . . . . . 5,034 (4,472) (D) 562
Accounts and dividends payable. . . . . . 62,136 (13,040) (D) 49,096
Accrued expenses. . . . . . . . . . . . . 66,059 (1,963) (D) 64,096
Income taxes. . . . . . . . . . . . . . . 6,611 5 (D) 6,616
------------ ------------ -----------
Total current liabilities . . . 145,784 (24,270) 121,514
Long-term obligations . . . . . . . . . . 310,103 (8,952) (D) 301,151
Accrued post-retirement and
post-employment benefits . . . . . . . 20,549 20,549
Deferred income taxes . . . . . . . . . . 5,622 (824) (D) 4,798
Other long-term liabilities . . . . . . . 4,367 (41) (D) 4,326
Minority interest . . . . . . . . . . . . 2,873 (2,873) (D) 0
Shareholders' equity:
Common stock stated value, $1.00 per
share . . . . . . . . . . . . . . . . . . 46,813 46,813
Additional paid-in-capital. . . . . . . . 24,999 24,999
Retained earnings . . . . . . . . . . . . 260,324 (2,809) (D) 257,515
Cumulative comprehensive income
equity adjustments . . . . . . . . . . (4,568) (4,568)
Less, cost of common shares in treasury . (114,745) (114,745)
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Total shareholders' equity . . . . . 212,823 (2,809) 210,014
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702,121 (39,769) 662,352
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See accompanying Unaudited Pro Forma Condensed Consolidated Financial Statement Adjustments.
MACDERMID, INCORPORATED
UNAUDITED PROFORMA CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
Year Ended December 31, 2002
(Amounts in Thousands of Dollars Except Share and Per Share Amounts)
Year
Ended December 31, 2002
Pro Forma
Historical Adjustments Pro Forma
------------ ------------- --------- ------------
Net Sales. . . . . . . . . . . $ 687,561 ($75,765) (A), (B) $ 611,796
Cost of sales. . . . . . . . . 404,794 (67,476) (A), (B) 337,318
Gross profit. . . . . . . 282,767 (8,289) 274,478
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Operating expenses:
Selling, technical and
administrative. . . . . . . 189,414 (6,274) (A) 183,140
Amortization. . . . . . . . 6,226 (27) (A) 6,199
Impairment charges. . . . . 35,371 (27,389) (A) 7,982
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231,011 (33,690) 197,321
Operating profit / (loss) 51,756 25,401 77,157
Other income (expense):
Interest income . . . . . . 608 167 (A), (C ) 775
Interest expense. . . . . . (35,833) 1,375 (A) (34,458)
Other income (expense). . . (2,607) (45) (A) (2,652)
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(37,832) 1,497 (36,335)
Earnings from
continuing operations
before taxes and
minority interest . . . 13,924 26,898 40,822
Income tax (expense)
Benefit. . . . . . . . . . . . (4,455) (8,607) (A), (C ) (13,062)
Minority interest. . . . . . . (120) 120 (A) 0
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Earnings from
Continuing operations. . . . . $ 9,349 $ 18,411 $ 27,760
============ ============= ============
Net earnings per common
share:
Basic . . . . . . . . . . . $ 0.29 $ 0.57 $ 0.86
============ ============= ============
Diluted . . . . . . . . . . $ 0.29 $ 0.57 $ 0.86
============ ============= ============
Weighted average
common shares
outstanding:
Basic . . . . . . . . . . . 32,220,066 32,220,066
============ ============
Diluted . . . . . . . . . . 32,475,155 32,475,155
============ ============
See accompanying Unaudited Pro Forma Condensed Consolidated Financial Statement
Adjustments.
MACDERMID, INCORPORATED
UNAUDITED PROFORMA CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
Nine Months Ended September 30, 2003
(Amounts in Thousands of Dollars Except Share and Per Share Amounts)
Nine
Months Ended September 30, 2003
Pro Forma
Historical Adjustments Pro Forma
------------ ------------- ---------- ------------
Net Sales. . . . . . . . . . . $ 515,959 ($57,933) (A), (B) $ 458,026
Cost of sales. . . . . . . . . 294,175 (52,400) (A), (B) 241,775
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Gross profit. . . . . . . 221,784 (5,533) 216,251
Operating expenses:
Selling, technical and
administrative. . . . . . . 146,249 (5,012) (A) 141,237
Amortization. . . . . . . . 2,416 (26) (A) 2,390
Impairment charges 0
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148,665 (5,038) 143,627
Operating profit / (loss) 73,119 (495) 72,624
Other income (expense):
Interest income . . . . . . 653 123 (A), (C ) 776
Interest expense. . . . . . (23,969) 750 (A) (23,219)
Other income (expense). . . 3,320 (148) (A) 3,172
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(19,996) 725 (19,271)
Earnings from
continuing operations
before taxes and
minority interest . . . 53,123 230 53,353
Income tax (expense)
Benefit. . . . . . . . . . . . (17,000) (74) (A), (C ) (17,074)
Minority interest. . . . . . . 0 (A) 0
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Earnings from
Continuing operations. . . . . $ 36,123 $ 156 $ 36,279
============ ============= ============
Net earnings per common
share:
Basic . . . . . . . . . . . $ 1.14 $ 0.01 $ 1.15
============ ============= ============
Diluted . . . . . . . . . . $ 1.14 - $ 1.14
============ ============= ============
Weighted average
common shares
outstanding:
Basic . . . . . . . . . . . 31,570,451 31,570,451
============ ============
Diluted . . . . . . . . . . 31,743,571 31,743,571
============ ============
See accompanying Unaudited Pro Forma Condensed Consolidated Financial Statement
Adjustments.
MACDERMID, INCORPORATED
Unaudited Pro Forma Condensed Consolidated Financial Statement Adjustments for
the Year ended December 31, 2002 and Nine Months Ended September 30, 2003
(Dollars in thousands)
The unaudited pro formas assume the Eurocir disposal occurred as of January 1,
2002.
The pro forma adjustments to the historical financial statements are as follows:
( ) = credit . . . . . . . . . . . . . . . . . . December September
31, 30,
2002 2003
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(A) Net Sales. . . . . . . . . . . . . . . . . . . . . . . $ 80,485 $ 61,683
Cost of Sales. . . . . . . . . . . . . . . . . . . . . (72,196) (56,150)
Selling, technical and administrative. . . . . . . . . (6,274) (5,012)
Amortization . . . . . . . . . . . . . . . . . . . . . (27) (26)
Impairment charges . . . . . . . . . . . . . . . . . . (27,389)
Interest income. . . . . . . . . . . . . . . . . . . . 33 27
Interest expense . . . . . . . . . . . . . . . . . . . (1,375) (750)
Other income (expense) . . . . . . . . . . . . . . . . 45 148
Income tax expense (benefit) . . . . . . . . . . . . . 8,543 26
Minority interest. . . . . . . . . . . . . . . . . . . (120)
Retained earnings. . . . . . . . . . . . . . . . . . . 18,275 54
To remove Eurocir operating financial results
(including 2002 impairment charge) and related
32% tax
effect.
(B) Net sales. . . . . . . . . . . . . . . . . . . . . . . (4,720) (3,750)
Cost of sales. . . . . . . . . . . . . . . . . . . . . 4,720 4,720
To reclass intercompany sales to Eurocir as 3rd
party sales and cost of sales.
(C) Interest income. . . . . . . . . . . . . . . . . . . . (200) (150)
Income tax expense (benefit) . . . . . . . . . . . . . 64 48
Retained earnings. . . . . . . . . . . . . . . . . . . 136 102
To record additional interest income associated with
the $5 million of sales proceeds.
(D) Cash and cash equivalents (130)
Accounts and notes receivable (10,936)
Finished goods inventory (6,515)
Raw materials inventory (2,786)
Deferred income tax asset (997)
PP&E (18,374)
Intangibles (31)
Notes payable 4,800
Current installments of long-term obligations 4,472
Accounts and dividends payable 13,040
Accrued expenses 1,963
Income taxes (5)
Long-term obligations 8,952
Deferred income taxes 824
Other long-term obligations 41
Minority interest 2,873
Retained earnings 2,809
To remove Eurocir assets, liabilities and equity
balances as of 9/30/03 (including minority interest).
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 thereunto duly authorized.
MacDermid, Incorporated
(Registrant)
Date: December 24, 2003 /s/ Gregory M. Bolingbroke
Senior Vice President,
Treasurer and Corporate Controller