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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Amendment No. 1
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: March 9, 2001
Date of earliest event reported: February 23, 2001
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CAPITAL PACIFIC HOLDINGS, INC.
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(Exact name of registrant as specified in its charter)
File No. 001-09911
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(Commission File Number)
Delaware 95-2956559
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(State of incorporation) (I.R.S. Employer
Identification Number)
4100 MacArthur Blvd., Suite 200, Newport Beach, California 92660
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(Address of principal executive offices) (Zip Code)
949-622-8400
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(Registrant's telephone number, including area code)
Amendment to Form 8-K
The undersigned registrant hereby amends the following item of its Current
Report on Form 8-K, originally filed with the Securities and Exchange Commission
on March 9, 2001.
ITEM 7. Financial Statements and Exhibits
(b) Pro forma financial information
See pages P-1 through P-5 below.
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SIGNATURE
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.
May 8, 2001 By: /s/ STEVEN O. SPELMAN, JR.
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Steven O. Spelman, Jr.
Chief Financial Officer and Corporate
Secretary (Principal Financial Officer)
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CAPITAL PACIFIC HOLDINGS, INC. AND SUBSIDIARIES
INDEX TO FINANCIAL STATEMENTS
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Page
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Summary.................................................................................................. P-1
Pro Forma Condensed Consolidated Balance Sheet as of November 30, 2000................................... P-2
Pro Forma Condensed Consolidated Statement of Income for the nine months ended November 30, 2000......... P-3
Pro Forma Condensed Consolidated Statement of Income for the year ended February 29, 2000................ P-4
Notes to Pro Forma Consolidated Financial Statements..................................................... P-5
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CAPITAL PACIFIC HOLDINGS, INC. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
SUMMARY
These pro forma financial statements should be read in conjunction with the
current report on Form 8-K filed with the Securities and Exchange Commission on
March 9, 2001.
The following unaudited pro form condensed consolidated balance sheet as of
November 30, 2000 and condensed consolidated statements of income for the nine
months ended November 30, 2000 and for the year ended February 29, 2000 give
effect to the Exchange Agreement between the Company and Farallon which closed
on February 23, 2001. The pro forma balance sheet gives effect to the Exchange
as if it had occurred on the balance sheet date. The pro forma statements of
income give effect to the Exchange as if it had occurred at the beginning of the
periods presented.
Under APB Opinion No. 16 "Business Combinations" ("APB 16"), the Exchange is
accounted for as the simultaneous purchase of the majority of Farallon's
minority interest in CPH LLC and certain other residential joint ventures and
the disposition of the Company's interest in the Projects and the Buildings.
Certain of the joint ventures disposed of in the Exchange had been
consolidated in the Company's historical financial statements, while the balance
of the joint ventures had been accounted for on the equity method. As a result,
the pro forma adjustments made to reflect the disposition of the consolidated
joint ventures impact several captions on the pro forma balance sheet and
statements of income.
The pro forma condensed consolidated financial statements have been prepared
by the Company's management based on the historical financial statements of the
Company and the joint ventures involved in the Exchange. The pro forma financial
statements may not be indicative of the results that actually would have
occurred if the combination had been in effect on the date indicated or which
may be obtained in the future. The pro forma financial statements should be read
in conjunction with the notes contained herein. The Company's consolidated
financial statements for the year ended February 28, 2001 and going forward will
reflect the transaction from the date of closing onward.
P-1
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CAPITAL PACIFIC HOLDINGS, INC. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
AS OF NOVEMBER 30, 2000
(DOLLARS IN THOUSANDS)
(UNAUDITED)
ASSETS
HISTORICAL PRO FORMA PRO FORMA
CONSOLIDATED ADJUSTMENTS CONSOLIDATED
------------ ----------- ------------
Cash and cash equivalents .................................. $ 6,787 $ (649)(1) $ 6,138
Restricted cash ............................................ 857 857
Accounts and notes receivable .............................. 13,667 (19)(1) 13,648
Real estate projects ....................................... 275,844 (5,546)(2) 270,298
Property, plant and equipment .............................. 8,106 (8,106)(3) --
Investment in and advances to unconsolidated joint
ventures ................................................. 18,259 (15,552)(4) 2,707
Prepaid expenses and other assets .......................... 15,781 (20)(1) 15,761
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Total assets ..................................... $ 339,301 $(29,892) $ 309,409
========= ======== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities ................... $ 40,459 $ 4,024 (5) $ 44,483
Notes payable .............................................. 129,030 (13,665)(6) 115,365
Senior unsecured notes payable ............................. 55,592 55,592
Negative goodwill .......................................... -- 9,298 (7) 9,298
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Total liabilities ................................ 225,081 (343) 224,738
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Minority Interest .......................................... 36,927 (29,549)(8) 7,378
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Stockholders' equity:
Common stock, par value $.10 per share, 30,000,000 shares
authorized; 13,767,911 and 13,815,911 shares issued and
outstanding, respectively ............................. 1,500 1,500
Additional paid-in capital ............................... 211,888 211,888
Accumulated deficit ...................................... (132,580) (132,580)
Treasury stock ........................................... (3,515) (3,515)
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Total stockholders' equity ....................... 77,293 77,293
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Total liabilities and stockholders' equity ....... $ 339,301 $(29,892) $ 309,409
========= ======== =========
See accompanying notes to pro forma financial statements.
P-2
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CAPITAL PACIFIC HOLDINGS, INC. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE NINE MONTHS ENDED NOVEMBER 30, 2000
(IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
HISTORICAL PRO FORMA PRO FORMA
CONSOLIDATED ADJUSTMENTS CONSOLIDATED
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Sales of homes and land ......................... $ 245,832 $ (3,323)(9) $ 242,509
Cost of sales ................................... 187,113 (2,906)(9) 184,207
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Gross margin ............................... 58,719 (417) 58,302
Income from unconsolidated joint ventures ....... 13 (52)(10) (39)
Selling, general and administrative expenses .... (27,725) 1,121 (11) (26,604)
Interest expense ................................ (23,013) (23,013)
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Income from operations ..................... 7,994 652 8,646
Interest and other income, net .................. 1,376 1,376
Minority Interest ............................... (2,836) 2,290 (12) (546)
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Income before income taxes and extraordinary
item ..................................... 6,534 2,942 9,476
Provision for income taxes ...................... 1,332 1,901 (13) 3,233
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Income before extraordinary item ........... $ 5,202 $ 1,041 $ 6,243
========= ======== =========
Income per share before extraordinary
item (basic and diluted) ...................... $ 0.38 $ 0.45
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Weighted average number of common
shares -- basic ............................ 13,775 13,775
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Weighted average number of common
shares -- diluted .......................... 13,885 13,885
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See accompanying notes to pro forma financial statements.
P-3
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CAPITAL PACIFIC HOLDINGS, INC. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE YEAR ENDED FEBRUARY 29, 2000
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
HISTORICAL PRO FORMA PRO FORMA
CONSOLIDATED ADJUSTMENTS CONSOLIDATED
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Sales of homes and land .................................. $ 290,791 $ $ 290,791
Cost of sales ............................................ 231,273 231,273
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Gross margin ........................................... 59,518 59,518
Income from unconsolidated joint ventures ................ 1,730 (65)(10) 1,665
Selling, general and administrative expenses ............. (30,813) 1,369 (11) (29,444)
Interest expense ......................................... (22,141) (22,141)
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Income from operations ................................. 8,294 1,304 9,598
Interest and other income, net ........................... 1,513 102 (11) 1,615
Minority interest ........................................ (2,835) 2,289 (12) (546)
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Income before income taxes ............................. 6,972 3,695 10,667
Provision for income taxes ............................... 1,745 (875)(13) 870
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Income before extraordinary item ....................... $ 5,227 $ 4,570 $ 9,797
========= ========= =========
Income per share before extraordinary item
(basic and diluted) .................................... $ 0.37 $ 0.70
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Weighted average number of common shares -- basic ...... 13,923 13,923
========= =========
Weighted average number of common shares -- diluted .... 14,014 14,014
========= =========
See accompanying notes to pro forma financial statements.
P-4
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CAPITAL PACIFIC HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
BALANCE SHEET ADJUSTMENTS:
(1) To reflect the disposition of cash, accounts receivable and prepaid
expense balances in the consolidated joint ventures disposed of ("Cons.
Former Ventures").
(2) To reflect the disposition of the real estate project balances in the
Cons. Former Ventures.
(3) To reflect the disposition of the property, plant and equipment balances
in the Cons. Former Ventures and the adjustment of the remaining balance
of $2.5 million to zero in accordance with APB 16.
(4) To reflect the collection of advances previously made to unconsolidated
joint ventures disposed of ("U/C Former Ventures") and the disposition
of the Company's interest in the U/C Former Ventures.
(5) To reflect deferred income taxes and accrual of costs incurred in
connection with the Exchange.
(6) To reflect the disposition of the note payable balance in one of the
Cons. Former Ventures, and the paydown of notes payable with proceeds
from the collection of advances previously made to U/C Former Ventures.
(7) To reflect negative goodwill recorded in accordance with APB 16.
(8) To reflect the reduction in Farallon's minority interest in CPH LLC and
certain other residential joint ventures.
STATEMENT OF INCOME ADJUSTMENTS:
(9) To reflect the elimination of revenues and cost of sales in the Cons.
Former Ventures.
(10) To reflect the elimination of income from the U/C Former Ventures.
(11) To reflect the elimination of net operating results from Buildings which
were disposed of and the amortization of negative goodwill recorded as a
result of the Exchange. Negative goodwill is amortized using the
straight-line method over a life of five years.
(12) To reflect the reduction in minority interest allocation to Farallon as
a result of the acquisition of a majority of Farallon's interest in CPH
LLC in the Exchange.
(13) To reflect the net amount of additional income taxes provided at the
Company's pro forma effective rate for the period presented.
P-5