Swisher Hygiene Inc.
Swisher Hygiene Inc. (Form: 8-K/A, Received: 05/01/2013 09:31:08)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K/A

(Amendment No. 1)

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): November 15, 2012

 

 

SWISHER HYGIENE INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware

(State or Other Jurisdiction

of Incorporation)

 

001-35067   27-3819646

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

4725 Piedmont Row Drive, Suite 400

Charlotte, North Carolina

  28210
(Address of Principal Executive Offices)   (Zip Code)

(704) 364-7707

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, If Changed Since Last Report)

 

 

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))

 

 

 


EXPLANATORY NOTE

Swisher Hygiene Inc. (the “Company”) is filing this Amendment No. 1 to its Current Report on Form 8-K, that was initially filed with the Securities and Exchange Commission on November 16, 2012, to file the unaudited pro forma financial information required by Item 9.01 of Form 8-K giving effect to the Company’s sale of Choice Environmental Services, Inc. (“Choice”)

Item 9.01. Financial Statements and Exhibits.

(b) Pro Forma Financial Information.

Filed as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference is certain unaudited pro forma financial information of the Company giving effect to the Company’s sale of Choice.

(d) Exhibits.

 

Exhibit No.

  

Exhibit Description

99.1    Unaudited Pro Forma Financial Information of Swisher Hygiene Inc.

 

2


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.

 

Date: May 1, 2013   SWISHER HYGIENE INC.
  By:  

 /s/ Thomas C.Byrne

    Thomas C.Byrne
    President and Chief Executive Officer

 

3


EXHIBIT INDEX

 

Exhibit No.

  

Exhibit Description

99.1    Unaudited Pro Forma Financial Information of Swisher Hygiene Inc.

Exhibit 99.1

SWISHER HYGIENE INC.

UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION

On November 15, 2012, Swisher Hygiene Inc. (“the Company”) completed a stock sale (the “Sale”) of Choice Environmental Services and other previously acquired businesses, including Lawson Sanitation LLC, Central Carting Disposal, Inc., and FSR Transporting & Crane Services, Inc., that with Choice comprised the Company’s Waste segment, to Waste Services of Florida, Inc. for $123.3 million. The transaction resulted in a gain of $13.8 million after recording $22 million of tax benefits. The stock purchase agreement stipulated customary purchase price adjustments related to closing balance sheet working capital targets and, in addition, that $12.5 million of the purchase price consideration will be reserved and held back in escrow by the purchaser (“the holdback amount”) and paid subject to financial adjustments regarding defined long-term assets and EBITDA targets for the three months ended September 30, 2012.

The following Unaudited Pro Forma Consolidated Financial Information of the Company has been derived from the historical financial statements of the Company, as adjusted, to give effect to the Sale. The historical financial statements of the Company as set forth herein has been derived from the historical consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2012 and its Quarterly Report on Form 10-Q for the period ended September 30, 2012, wherein the Waste segment was presented as a discontinued operation for the Company. The Unaudited Pro Forma Consolidated Balance Sheet as of September 30, 2012, includes pro forma adjustments giving effect to the Sale as if it had occurred on that date. The Unaudited Pro Forma Consolidated Statements of Operations for the nine months ended September 30, 2012, and for the year ended December 31, 2011, includes pro forma adjustments giving effect to the Sale as if it had occurred on December 31, 2010.

The Unaudited Pro Forma Consolidated Financial Information is presented to comply with the rules and regulations of the Securities and Exchange Commission governing the disclosure of pro forma information. The Unaudited Pro Forma Consolidated Financial Information has been provided for informational purposes only and should not be considered indicative of the financial condition or results of operations that would have been achieved had the Sale occurred as of the dates presented. Accordingly, the Unaudited Pro Forma Consolidated Financial Information should not be read to be indicative of the Company’s financial condition or results of operations that might be achieved as of any future date or for any future period. The Unaudited Pro Forma Consolidated Financial Information, including the notes thereto, should be read in conjunction with the historical financial statements of the Company included in its Annual Report on Form 10-K for the years ended December 31, 2012 and 2011, and its Quarterly Reports on Form 10-Q filed for its quarters ended, March 31, June 30, and September 30, 2012.


Swisher Hygiene, Inc.

Pro Forma Consolidated Balance Sheet

As of September 30, 2012

 

    Historical     (Unaudited)
Pro Forma
Adjustments
        (Unaudited)
Pro Forma
 

ASSETS

       

Current assets

       

Cash and cash equivalents

  $ 9,876      $ 111,841      A   $ 121,717   

Restricted cash

    —              —     

Accounts receivable, net

    22,567            22,567   

Inventory

    16,719            16,719   

Assets of discontinued operations

    139,975        (139,975   B     —     

Other assets

    3,471        12,500      C     15,971   
 

 

 

   

 

 

     

 

 

 

Total current assets

    192,608        (15,634       176,974   
 

 

 

   

 

 

     

 

 

 

Property and equipment, net

    47,533            47,533   

Goodwill

    107,586            107,586   

Other intangibles, net

    51,970            51,970   

Deferred income tax assets

    14,829            14,829   

Other noncurrent assets

    3,604            3,604   
 

 

 

   

 

 

     

 

 

 
  $ 418,130      $ (15,634     $ 402,496   
 

 

 

   

 

 

     

 

 

 

LIABILITIES AND EQUITY

       

Current liabilities

       

Accounts payable and accrued expenses

  $ 33,207      $ 3,030      D   $ 36,237   

Related Party Payable

    —              —     

Long-term debt and obligations due within one year

    30,784            30,784   

Advances from shareholder

    2,000            2,000   

Liabilities of discontinued operations

    32,508        (32,508   B     —     
 

 

 

   

 

 

     

 

 

 

Total current liabilities

    98,499        (29,478       69,021   
 

 

 

   

 

 

     

 

 

 

Long term debt and obligations

    12,409            12,409   

Other long-term liabilities

    3,389            3,389   
 

 

 

   

 

 

     

 

 

 

Total noncurrent liabilities

    15,798        —            15,798   
 

 

 

   

 

 

     

 

 

 

Commitments and contingencies

       
 

 

 

   

 

 

     

 

 

 

Equity

       

Total Swisher Hygiene Inc. stockholders’ equity

    303,811        13,844      E     317,655   

Non-controlling interest

    22            22   
 

 

 

   

 

 

     

 

 

 

Total stockholders’ equity

    303,833        13,844          317,677   
 

 

 

   

 

 

     

 

 

 
  $ 418,130      $ (15,634     $ 402,496   
 

 

 

   

 

 

     

 

 

 


Swisher Hygiene, Inc.

Pro Forma Consolidated Statement of Operations

For the Nine Months Ended September 30, 2012

 

    Nine Months Ended September 30, 2012  
    Historical     Unaudited
Pro Forma
Adjustments
        Unaudited
Pro Forma
 

Revenue:

       

Product

  $ 156,409      $ —          $ 156,409   

Services

    20,016        —            20,016   

Franchise and other

    928        —            928   
 

 

 

   

 

 

     

 

 

 

Total Revenue

    177,353        —            177,353   
 

 

 

   

 

 

     

 

 

 

Costs and expenses:

       

Cost of sales (exclusive of route expenses and related depreciation and amortization)

    78,124        —            78,124   

Route expenses

    31,756        —            31,756   

Selling, general and administrative

    95,598        —            95,598   

Acquisition and merger expenses

    220        —            220   

Depreciation and amortization

    15,820        —            15,820   
 

 

 

   

 

 

     

 

 

 

Total costs and expenses

    221,518        —            221,518   
 

 

 

   

 

 

     

 

 

 

Loss from continuing operations

    (44,165     —            (44,165

Other expense, net

    (1,306     —            (1,306
 

 

 

   

 

 

     

 

 

 

Net loss from continuing operations before income taxes

    (45,471     —            (45,471

Income tax expense

    (109     —            (109
 

 

 

   

 

 

     

 

 

 

Net loss from continuing operations

    (45,580     —            (45,580

Income from discontinued operations, net of tax

    1,866        (1,866   F     —     
 

 

 

   

 

 

     

 

 

 

Net Loss

    (43,714     (1,866       (45,580

Net income attributable to non-controlling interest

    —          —            —     
 

 

 

   

 

 

     

 

 

 

Net loss attributable to Swisher Hygiene Inc.

  $ (43,714   $ (1,866     $ (45,580
 

 

 

   

 

 

     

 

 

 


Swisher Hygiene, Inc.

Pro Forma Consolidated Statement of Operations

For the Year Ended December 31, 2011

 

    Year Ended December 31, 2011  
    Historical     Unaudited
Pro Forma
Adjustments
        Unaudited
Pro Forma
 

Revenue:

       

Product

  $ 131,109      $ —          $ 131,109   

Services

    26,107        —            26,107   

Franchise and other

    3,401        —            3,401   
 

 

 

   

 

 

     

 

 

 

Total Revenue

    160,617        —            160,617   
 

 

 

   

 

 

     

 

 

 

Costs and expenses:

       

Cost of sales (exclusive of route expenses and related depreciation and amortization)

    67,942        —            67,942   

Route expenses

    33,254        —            33,254   

Selling, general and administrative

    79,557        —            79,557   

Acquisition and merger expenses

    6,107        —            6,107   

Depreciation and amortization

    12,690        —            12,690   

Gain from bargain purchase

    (4,359     —            (4,359
 

 

 

   

 

 

     

 

 

 

Total costs and expenses

    195,191        —            195,191   
 

 

 

   

 

 

     

 

 

 

Loss from continuing operations

    (34,574     —            (34,574

Other expense, net

    (6,765     —            (6,765
 

 

 

   

 

 

     

 

 

 

Net loss from continuing operations before income taxes

    (41,339     —            (41,339

Income tax benefit

    16,616        —            16,616   
 

 

 

   

 

 

     

 

 

 

Net loss from continuing operations

    (24,723     —            (24,723

Loss from discontinued operations, net of tax

    (623     623      F     —     
 

 

 

   

 

 

     

 

 

 

Net Loss

    (25,346     623          (24,723

Net income attributable to non-controlling interest

    6        —            6   
 

 

 

   

 

 

     

 

 

 

Net loss attributable to Swisher Hygiene Inc.

  $ (25,340   $  623        $ (24,717
 

 

 

   

 

 

     

 

 

 


SWISHER HYGIENE INC.

NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION

 

A. Reflects an adjustment to record the cash proceeds of $111.8 million from the Sale.

 

B. Reflects adjustments to eliminate $140.0 million of assets and $32.5 million of liabilities sold in the Sale.

 

C. Reflects an adjustment to record the $12.5 million holdback receivable from the buyer as additional proceeds on the Sale.

 

D. Reflects an adjustment to record additional liabilities incurred as a result of the Sale of $3.0 million.

 

E. Reflects the adjustment to retained earnings to record the gain on the Sale of $13.8 million.

 

F. Reflects the adjustments to eliminate the income and losses from the operations of the Waste Segment of $1.9 million for the nine months ended September 30, 2012 and $0.6 million for the year ended December 31, 2011.