SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
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 28, 2000
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ENVIRO-CLEAN OF AMERICA, INC.
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(Exact Name of Registrant as Specified in Its Charter)
NEVADA 0-26433 88-0386415
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
1023 Morales Street, San Antonio, Texas 78207
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code
(210) 227-9161
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Former address of Registrant:
211 Park Avenue, Hicksville, New York 11801-1408
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(Former Name or Former Address, if Changed Since Last Report.)
EXPLANATORY NOTE
This Form 8-K/A amends Item 7 of the current report on Form 8-K filed by
Enviro-Clean of America, Inc. (the "Company") on December 28, 2000, to include
financial statements that were not available at the time of the filing of the
initial report. The financial statements are required as a result of the
December 22, 2000, divestiture by the Company of the assets of June Supply Corp.
("June Supply"), a former wholly-owned subsidiary of the Company.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
a) Financial Statements of Businesses Acquired
Not applicable.
b) Pro forma financial information
The following unaudited pro forma condensed consolidated balance sheet
as of September 30, 2000 and the unaudited pro forma condensed consolidated
statements of operations for the nine months ended September 30, 2000 and the
year ended December 31, 1999, give effect to the disposition of the net assets
of June Supply as of September 30, 2000 for the unaudited pro forma condensed
consolidated balance sheet and as of January 1, 2000 and January 1, 1999 for the
unaudited pro forma condensed consolidated statements of operations. The
unaudited pro forma condensed consolidated financial statements are based on our
historical consolidated financial statements, giving effect to the disposition
and the assumptions and adjustments as discussed in the accompanying notes to
the unaudited pro forma condensed consolidated financial statements. These
unaudited pro forma condensed consolidated financial statements have been
prepared by our management based upon our unaudited condensed consolidated
balance sheet as of September 30, 2000 and the related unaudited condensed
statements of operations for the nine months ended September 30, 2000 and the
year ended December 31, 1999. The unaudited pro forma condensed consolidated
financial statements should be read in conjunction with the historical financial
statements and notes thereto, and the narrative included in this Form 8-K/A and
the Form 8-K. The unaudited pro forma condensed consolidated financial
statements are not necessarily indicative of what actual results of operations
would have been for the periods had the transaction occurred on the dates
indicated and do not purport to indicate future financial position nor the
results of future operations.
ENVIRO-CLEAN OF AMERICA, INC. & SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 2000
(unaudited)
<TABLE>
<CAPTION>
SEPTEMBER 30, PRO FORMA
2000 ADJUSTMENTS PRO FORMA
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<S> <C> <C> <C>
ASSETS
Current assets
Cash $ 1,136,948 $ (96,901) (a) $ 1,040,047
Accounts receivable 1,827,458 (875,439) (a) 952,019
Inventory 1,938,080 (1,120,714) (a) 817,366
Marketable securities-available for sale 2,843,750 - 2,843,750
Loan receivable-related party - - -
Loans receivable-other 1,024,696 - 1,024,696
Prepaid expenses and other current assets 329,672 - 329,672
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Total current assets 9,100,604 (2,093,054) 7,007,550
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Property, plant & equipment - at cost 1,435,809 (359,169) (a) 1,076,640
Less: accumulated depreciation 1,095,437 (227,069) (a) 868,368
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Net property, plant & equipment 340,372 (132,100) 208,272
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Goodwill 5,228,460 (1,447,267) (b) 3,781,193
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TOTAL ASSETS $ 14,669,436 $ (3,672,421) $ 10,997,015
============= ============= ==============
LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses $ 1,493,636 $ (342,968) (a) $ 1,150,668
Notes payable-related parties 1,120,707 (270,707) (c) 850,000
Current maturities of long-term debt 32,249 (6,625) (a) 25,624
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Total current liabilities 2,646,592 (620,300) 2,026,292
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Long-term liabilities
Notes payable - subordinated 1,441,825 - 1,441,825
Notes payable-related parties 809,218 (338,384) (c) 470,834
Long-term debt, less current maturities 50,749 (13,249) (a) 37,500
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Total liabilities 4,948,384 (971,933) 3,976,451
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Redeemable preferred stock-$.001 par value;
authorized 5,000,000 shares 70,000 shares of
convertible stock designated as Series E stock- 175,000 - 175,000
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Stockholder's equity
Preferred stock Series A-$.001 par value; stated
value $5.00; authorized, issued and outstanding
shares -0- - - -
Preferred stock Series B-$.001 par value;
stated value $100.00; authorized 80,000 shares;
issued and outstanding shares -0- - - -
Preferred stock Series D-$.001 par value; stated value
$5.00; authorized, issued and outstanding shares -0- - - -
Common stock-$.001 par value; authorized 20,000,000
shares; issued 6,607,682 and outstanding 6,107,682 6,608 - 6,608
Less: Treasury stock-500,000 shares at cost (1,000,000) - (1,000,000)
Additional paid-in capital 10,772,208 - 10,772,208
Accumulated other comprehensive income 1,840,750 - 1,840,750
Retained earnings (deficit) (2,273,514) (2,700,488) (d) (4,974,002)
Common stock to be issued 200,000 - 200,000
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Total stockholders' equity 9,546,052 (2,700,488) 6,845,564
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 14,669,436 $ (3,672,421) $ 10,997,015
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</TABLE>
See accompanying notes to pro forma condensed consolidated financial statements.
ENVIRO-CLEAN OF AMERICA, INC. & SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000
(unaudited)
<TABLE>
<CAPTION>
NINE MONTHS
ENDED
SEPTEMBER 30, PRO FORMA
ENDED ADJUSTMENTS PRO FORMA
------------ ---------------- ------------
<S> <C> <C> <C>
Net Sales $ 10,942,966 $ (3,811,116) (a) $ 7,131,850
Cost of sales 6,517,135 (2,212,042) (a) 4,305,093
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Gross profit 4,425,831 (1,599,074) 2,826,757
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Operating expenses:
Salaries 2,154,437 (698,129) (a) 1,456,308
Professional fees 359,847 (31,164) (a) 328,683
Depreciation and amortization 91,927 (31,984) (a) 59,943
Amortization of goodwill 666,910 (122,574) (b) 544,336
Marketing 198,832 (24,971) (a) 173,861
Rent 434,185 (113,620) (a) 320,565
Interest 549,075 (43,328) (C) 505,747
Other 1,126,227 (330,873) (a) 795,354
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Total operating expenses 5,581,440 (1,396,643) 4,184,797
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Operating loss (1,155,609) (202,431) (1,358,040)
Other income 6,900,945 (13,330) (a) 6,887,615
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Income before income tax expense 5,745,336 (215,761) 5,529,575
Income tax expense 768,367 3,611 (a) 771,978
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Net income from continuing operations 4,976,969 (219,372) 4,757,597
Income from operations of discontinued
division 113,310 - 113,310
Loss on disposal of division (2,389,649) - (2,389,649)
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Net income 2,700,630 (219,372) 2,481,258
Preferred stock dividends (121,983) - (121,983)
------------ ------------ -----------
Net income attributable to common stockholders $ 2,578,647 $ (219,372) $ 2,359,275
============ ============ ===========
Income per share from continuing operations $ 0.85 $ 0.81
============ ===========
Loss per share from discontinued operations $ (0.40) $ (0.40)
============ ===========
Income per share-basic and diluted $ 0.45 $ 0.41
============ ===========
Weighted average number of shares outstanding 5,727,902 5,727,902
============ ===========
</TABLE>
See accompanying notes to pro forma condensed consolidated financial statements.
ENVIRO-CLEAN OF AMERICA, INC. & SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
(unaudited)
<TABLE>
<CAPTION>
YEAR ENDED
DECENBER 31, PRO FORMA
2000 ADJUSTMENTS PRO FORMA
------------ ----------------- ----------
<S> <C> <C> <C>
Net Sales $ 7,281,408 $ (1,486,530) (a) $ 5,794,878
Cost of sales 3,788,288 (1,197,757) (a) 2,590,531
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Gross profit 3,493,120 (288,773) 3,204,347
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Operating expenses:
Salaries 1,370,992 (280,825) (a) 1,090,167
Professional fees 710,728 - 710,728
Depreciation and amortization 69,157 (36,563) (a) 32,594
Amortization of goodwill 540,556 (64,477) (b) 476,079
Marketing 87,756 (12,207) (a) 75,549
Rent 270,021 (50,017) (a) 220,004
Interest 497,728 (38,670) (c) 459,058
Other 1,215,600 (189,730) (a) 1,025,870
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Total operating expenses 4,762,538 (672,489) 4,090,049
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Operating loss (1,269,418) 383,716 (885,702)
Other income 61,458 - 61,458
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Loss before income tax expense (1,207,960) 383,716 (824,244)
Income tax expense (benefit) (76,835) (8,464) (a) (85,299)
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Net loss (1,131,125) 392,180 (738,945)
Preferred stock dividends (192,462) - (192,462)
----------- ------------ -----------
Net loss attributable to common stockholders (1,323,587) 392,180 (931,407)
=========== ============ ===========
Loss per share-basic and diluted $(0.31) $(0.22)
=========== ===========
Weighted average number of shares outstanding 4,271,764 4,238,339
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</TABLE>
See accompanying notes to pro forma condensed consolidated financial statements.
ENVIRO-CLEAN OF AMERICA, INC & SUBSIDIARIES
Notes to Pro Forma Condensed Consolidated Financial Statements
--------------------------------------------------------------------------------
Pro Forma Adjustments:
Pro forma adjustments have been made to the historical amounts in the unaudited
pro forma condensed consolidated financial statements as follows:
(a) Adjustment to eliminate the assets, liabilities, revenues and
expenses of June Supply which were included in the consolidated
financial statements of Enviro-Clean of America, Inc. &
Subsidiaries as of and for the nine months ended September 30,
2000 and the year ended December 31, 1999.
(b) Adjustment to eliminate the balance of goodwill originally paid
on the acquisition of June Supply and the related amortization
expense for the nine months ended September 30, 2000 and the year
ended December 31, 1999.
(c) Adjustment to eliminate the acquisition indebtedness assumed on
the original purchase of June Supply (repaid on sale) and the
related interest on the debt as if repaid on December 31, 1999
and August 31, 1999 respectively.
(d) To record the net effect to equity on the elimination of June
Supply's and the Company's related assets and liabilities sold
and assumed upon the sale.
(c) Exhibits
The following is a list of exhibits filed as part of this Form 8-K.
Exhibit Number Description of Document
2.1 Asset Purchase Agreement between York Supply Limited,
June Supply Corp. and Enviro-Clean of America, Inc.,
dated December 22, 2000.*
* Previously filed as an exhibit to Form 8-K, filed on behalf of the Company
with the Securities and Exchange Commission on December 28, 2000.
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.
ENVIRO-CLEAN OF AMERICA, INC.
Date: January 26, 2001 By: /s/ Randall Davis
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Name: Randall K. Davis
Title: President