Delaware
|
7359
|
32-0163571
|
(State or jurisdiction of
incorporation or organization)
|
(Primary Standard Industrial
Classification Code Number)
|
(I.R.S. Employer
Identification Number)
|
Christopher
A. Wilson, Esq.
General
Counsel, Vice President & Secretary
39
East Union Street
Pasadena,
California 91103
(626) 584-9722
(626)
795-8090 — Facsimile
|
Large
accelerated filer
o
|
Accelerated
filer
o
|
Non-accelerated
filer
o (Do not check if a smaller reporting
company)
|
Smaller
reporting company x
|
Title
of Each
Class
of Securities
to
be Registered
|
Amount
to be
Registered
(1)
|
Proposed
Maximum
Offering
Price
per Unit (1)
|
Estimated
Proposed
Maximum
Aggregate
Offering
Price (4)
|
Amount
of
Registration
Fee
|
Transferable
Subscription Rights (“Rights”) to purchase units ("Units") consisting of
one share of common stock and a three-year warrant to purchase 0.5 shares
of common stock at an exercise price of $4.00 per share
("Warrants")
|
8,920,000
|
—
|
—
|
—
(2)
|
Units
underlying the Rights
|
8,920,000
|
$—
|
$—
|
—
(3)
|
Common
Stock
|
8,920,000
|
—
|
—
|
—
(4)
|
Warrants
to Purchase 4,460,000 shares of Common Stock
|
8,920,000
|
|||
Common
Stock issuable upon exercise of the Warrants
|
4,460,000
|
|||
Total
|
$—
|
$—
|
—
(5)
|
(1)
|
This
registration statement relates to (a) the subscription rights to
purchase Units, (b) the Units, (c) the shares of common stock included in
the Unit, (d) Warrants to purchase shares of common stock and (e) the
shares of common stock issuable upon exercise of the
Warrants.
|
(2)
|
The
rights are being issued without consideration. Pursuant to Rule
457(g), no separate registration fee is payable with respect to the rights
being offered hereby since the rights are being registered in the same
registration statement as the securities to be offered pursuant
thereto.
|
(3)
|
Estimated
solely for the purpose of calculating the registration fee pursuant to
Rule 457(o) under the Securities Act of 1933, as
amended.
|
(4)
|
Pursuant
to Rule 416, there are also being registered such additional
securities as may be issued to prevent dilution resulting from stock
splits, stock dividends or similar transactions to the common
stock.
|
(5)
|
Calculated
pursuant to Rule 457(g) based on the aggregate exercise price of the
rights.
|
Preliminary
Prospectus
|
Subject
To Completion, Dated December ___ ,
2009
|
Subscription
Price
|
Offering
Expenses
|
Proceeds,
Before
Expenses,
to us
|
|
Per
share
|
$_________
|
—
|
—
|
Total
(1)
|
$[ ]
|
$[ ]
|
$[ ]
|
About This Prospectus
|
-ii-
|
Questions and Answers About the Rights
Offering
|
1
|
Prospectus Summary
|
6
|
The Rights Offering
|
13
|
Selected Financial Data
|
19
|
Market Prices
|
21
|
Risk Factors
|
22
|
Use of Proceeds
|
34
|
Dilution
|
34
|
Capitalization
|
35
|
Description of Securities to Be
Registered
|
35
|
Business
|
37
|
Management’s Discussion and Analysis of Financial
Condition and Results of Operations
|
54
|
Unaudited Pro Forma Condensed Combined Financial
Statements
|
71
|
Directors and Executive
Officers
|
74
|
Executive
Compensation
|
76
|
Security Ownership of Certain Beneficial Owners
and Management
|
80
|
Transactions with Related
Persons
|
82
|
Plan of Distribution
|
83
|
The Reoffering of Remaining
Units
|
87
|
Material U.S. Federal Income Tax
Considerations
|
89
|
Certain ERISA
Considerations
|
91
|
Disclosure of Commission Position of
Indemnification for Securities Act
Liabilities
|
93
|
Experts
|
93
|
Transfer Agent and
Registrar
|
94
|
Legal Matters
|
94
|
Where You Can Find Additional
Information
|
94
|
Index to Unaudited Interim Condensed Consolidated
Financial Statements
|
I-1
|
Index to Annual Consolidated Financial
Statements
|
F-1
|
Index to Mobile Office Acquisition Corp. and
Pac-Van, Inc. Financial Statements
|
S-1
|
•
|
deliver
payment to us before 5:00 p.m., Eastern Standard Time, on ___, 2010;
and
|
||
•
|
deliver
a properly completed and signed rights certificate to us before 5:00 p.m.,
Eastern Standard Time, on ___,
2010.
|
·
|
recurring
revenues from leases with an average duration of more than 12-15
months;
|
||||||
·
|
long
useful asset lives exceeding 25 years with low maintenance and high
residual values;
|
||||||
·
|
the
ability to leverage the relatively fixed costs of our CSCs to service a
large fleet of storage container products; and
|
||||||
·
|
incremental
leasing operating margins in excess of 50%.
|
·
|
Market
Leader. We believe Royal Wolf is the market leader in Australia and
New Zealand for storage container products. As of September 30, 2009,
Royal Wolf had a lease fleet of approximately 27,000 storage container
products and a national network of 24 CSCs located in every state in
Australia and in the North and South Islands of New
Zealand.
|
·
|
Diverse
Customer Base. Royal Wolf’s portable units provide secure,
accessible temporary storage for a diverse client base of over 19,000
customers that include large and small mining companies, road and rail
businesses, construction companies, moving and storage providers,
manufacturers, transportation businesses and the Australian
military.
|
·
|
Experienced
Management Team. Royal Wolf has an experienced senior management
team. Robert Allan, the chief executive officer of Royal Wolf,
has 25 years of experience in the equipment leasing industry. The eight
members of the senior management team of Royal Wolf have an average of
over ten years of experience in the equipment leasing industry. We believe
the experience of this management team will be critical to growing Royal
Wolf’s business.
|
We
are distributing to you, at no charge, one transferable subscription right
for each two shares of our common stock that you owned as of 5:00 p.m.,
Eastern Standard Time, on ___, 2010, the record date, either as a holder
of record or, in the case of shares held of record by brokers, dealers,
custodian banks, or other nominees on your behalf, as a beneficial owner
of such shares. If the rights offering is fully subscribed, of which no
assurance can be given, we expect the gross proceeds from the rights
offering to be approximately $____ million.
|
||||
Basic
Subscription Right
|
The
basic subscription right will entitle you to purchase one Unit at a
subscription price of $____. A Unit consists of one share of
our common stock and a three-year Warrant to purchase an additional 0.5
shares of our common stock at an exercise price of $4.00 per
share.
|
|||
There
is no minimum number of Units you must purchase, but you may not purchase
fractional Units. When determining the number of subscription rights you
will receive, divide the number of shares of our common stock you own by
two, and round down to the next whole number. For example, if you own 225
shares of our common stock, you will receive 112 subscription rights
(225 shares divided by 2 = 112.5, rounded down to 112 subscription rights,
the next whole number), which will entitle you to subscribe for up to
112 Units under your basic subscription privilege.
|
||||
Over-Subscription
Privilege
|
In
the event that you purchase all of the Units available to you pursuant to
your basic subscription right, you may also choose to subscribe for a
portion of any Units that are not purchased by our stockholders through
the exercise of their basic subscription rights. You may subscribe for
these Units pursuant to your over-subscription privilege, subject to the
limitations described below. We also retain the right to
limit the exercise of over-subscription privileges if such exercise would
cause a change of control, as defined in the agreements governing the
indebtedness of our subsidiaries Pac-Van and Royal
Wolf.
|
|||
Subscription
Price
|
$____
per Unit, payable in cash. To be effective, any payment related to the
exercise of a subscription right must clear prior to the expiration of the
rights offering.
|
|||
Record
Date
|
5:00
p.m., Eastern Standard Time, on ________, 2010.
|
|||
Expiration
of the Rights Offering
|
5:00
p.m., Eastern Standard Time, on ________, 2010.
|
|||
Use
of Proceeds
|
We
intend to use the proceeds of the rights offering to reduce our
indebtedness and for general corporate
purposes.
|
Non-Transferability
of Rights
|
The
subscription rights may be sold, transferred or assigned and will be
listed for trading on the NASDAQ Global Market or on any other stock
exchange or market.
|
No
Revocation
|
All
exercises of subscription rights are irrevocable, even if you later learn
of information that you consider to be unfavorable to the exercise of your
subscription rights. You should not exercise your subscription rights
unless you are certain that you wish to purchase additional Units at a
subscription price of $____ per Unit.
|
|
Material
U.S. Federal Income Tax Consequences
|
For
U.S. federal income tax purposes, you should not recognize income or loss
upon receipt or exercise of a subscription right. You should consult your
own tax advisor as to the tax consequences to you of the receipt, exercise
or lapse of the subscription rights in light of your particular
circumstances.
|
|
Extension,
Cancellation and Amendment
|
Although
we do not presently intend to do so, we have the option to extend the
rights offering and the period for exercising your subscription rights.
Our board of directors may cancel the rights offering at any time prior to
the expiration date of the rights offering for any reason. In the event
that the rights offering is cancelled, all subscription payments received
by us will be returned, without interest or penalty, as soon as
practicable. We also reserve the right to amend or modify the terms of the
rights offering at any time.
|
|
Procedures
for Exercising Rights
|
To
exercise your subscription rights, you must take the following
steps:
|
•
|
If
you are a registered holder of our common stock, you must deliver payment
and a properly completed rights certificate to Continental Stock Transfer
& Trust Company so that we receive these items before 5:00 p.m.,
Eastern Standard Time, on ___________, 2010. You may deliver the documents
and payments by hand delivery, first class mail or courier service. If
first class mail is used for this purpose, we recommend using registered
mail, properly insured, with return receipt requested.
|
||||
•
|
If
you are a beneficial owner of shares that are registered in the name of a
broker, dealer, custodian bank or other nominee, or if you would rather an
institution conduct the transaction on your behalf, you should instruct
your broker, dealer, custodian bank or other nominee to exercise your
subscription rights on your behalf. Please follow the instructions of your
nominee, who may require that you meet a deadline earlier than 5:00 p.m.,
Eastern Standard Time, on ___________, 2010.
|
||||
Information
Agent
|
MacKenzie
Partners, Inc.
|
||||
Questions
|
If
you have any questions or need further information about this rights
offering, please contact MacKenzie Partners, Inc., our information agent
for the rights offering, at (212) 929-5500 (call collect) or (800)
322-2885 (toll-free) or via email at
generalfinancerights@mackenziepartners.com.
|
||||
Shares
of Common Stock Outstanding Before the Rights Offering
|
17,826,052
shares of our common stock were outstanding as of December 9,
2009.
|
||||
Shares
Outstanding After Completion of the Rights Offering
|
Assuming
all Units are sold in the rights offering, we expect approximately
26,746,000 shares of our common stock and Warrants to purchase 4,460,000
shares of our common stock will be outstanding immediately after
completion of the rights offering.
|
||||
Fees
and Expenses
|
We
will pay the expenses related to the rights offering.
|
||||
The
NASDAQ Global Market
|
Our
shares of common stock are currently listed for trading on the NASDAQ
Global Market under the ticker symbol “GFN.”
|
||||
Risk
Factors
|
Before
you exercise your subscription rights to purchase our securities, you
should carefully consider risks described in the section entitled “Risk
Factors,” beginning on page 22 of this
prospectus.
|
•
|
check
or bank draft payable to General Finance Corporation, drawn upon a U.S.
bank; or
|
||
•
|
wire
transfer of immediately available funds to an account maintained by
General Finance Corporation for purposes of this
rights
offering.
|
•
|
clearance
of any uncertified check deposited by us into our account designated for
the rights offering;
|
||
•
|
receipt
by us of any certified check or bank draft, drawn upon a U.S. bank;
or
|
||
•
|
receipt
of collected funds in our account designated for the rights
offering.
|
•
|
you
provide on the rights certificate that the Units are to be delivered to
you as record holder of those subscription rights; or
|
||
•
|
you
are an eligible institution.
|
Predecessor
|
Successor
|
||||||||
Six
Months
|
Period
from
|
(Unaudited)
|
|||||||
Ended
|
Year
Ended
|
July
1 to
|
Year
Ended
|
Quarter
Ended
|
|||||
September
13,
|
|||||||||
June
30,
|
June
30,
|
September
30,
|
|||||||
2005
|
2006
|
2007
|
2007
|
2008
|
2009
|
2008
|
2009
|
||
Sales
|
$13,563
|
$34,473
|
$52,929
|
$10,944
|
$68,029
|
$75,528
|
$20,995
|
$16,613
|
|
Leasing
|
7,224
|
15,921
|
21,483
|
4,915
|
27,547
|
70,932
|
10,658
|
18,606
|
|
20,787
|
50,394
|
74,412
|
15,859
|
95,575
|
146,460
|
31,653
|
35,219
|
||
Operating
income
|
560
|
2,412
|
4,672
|
1,530
|
8,373
|
14,058
|
1,727
|
2,075
|
|
Other
income (expense), net
|
(662)
|
(2,626)
|
(3,870)
|
(1,062)
|
(1,785)
|
(25,177)
|
(11,960)
|
(1,055)
|
|
Income
(loss) before provision for income taxes and noncontrolling
interest
|
(102)
|
(214)
|
802
|
468
|
6,588
|
(11,119)
|
(10,233)
|
1,020
|
|
Net
income (loss) attributable to stockholders
|
(177)
|
(428)
|
312
|
288
|
4,106
|
(3,717)
|
(5,027)
|
75
|
|
Net
income (loss) per common share:
|
|||||||||
Basic
|
$0.40
|
$(0.22)
|
$(0.36)
|
$0.00
|
|||||
Diluted
|
0.39
|
(0.22)
|
(0.36)
|
0.00
|
Predecessor
|
Successor
|
|||||||||||||||||||||||
June
30,
|
(Unaudited)
September
30
|
|||||||||||||||||||||||
2005
|
2006
|
2007
|
2008
|
2009
|
2009
|
|||||||||||||||||||
Trade
and other receivables, net
|
$ | 6,002 | $ | 7,451 | $ | 13,322 | $ | 18,327 | $ | 26,432 | $ | 21,656 | ||||||||||||
Inventories
|
3,066 | 5,460 | 5,472 | 21,084 | 22,511 | 20,104 | ||||||||||||||||||
Lease
fleet, net
|
19,644 | 27,773 | 40,928 | 87,748 | 188,915 | 195,562 | ||||||||||||||||||
Total
assets
|
35,930 | 47,903 | 68,788 | 207,861 | 358,696 | 357,127 | ||||||||||||||||||
Total
current liabilities
|
8,997 | 16,580 | 20,859 | 25,362 | 49,254 | 59,691 | ||||||||||||||||||
Long-term
debt and obligations, net
|
22,993 | 27,155 | 33,811 | 78,029 | 183,933 | 166,283 | ||||||||||||||||||
Stockholders’
equity
|
3,586 | 3,018 | 13,040 | 93,731 | 103,174 | 107,514 |
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
|||||||||||||
(in
thousands, except per share data)
|
||||||||||||||||
Successor
|
||||||||||||||||
For
the Fiscal Year Ended June 30, 2009:
|
||||||||||||||||
Revenues
|
$ | 31,653 | $ | 42,601 | $ | 34,455 | $ | 37,751 | ||||||||
Gross
profit
|
2,829 | 3,194 | 2,415 | 2,773 | ||||||||||||
Operating
income
|
1,727 | 5,275 | 5,253 | 1,803 | ||||||||||||
Net
income (loss) attributable to stockholders
|
(5,027 | ) | (1,005 | ) | 270 | 2,045 | ||||||||||
Net
income (loss) per common share:
|
||||||||||||||||
Basic
|
$ | (0.36 | ) | $ | (0.06 | ) | $ | 0.01 | $ | 0.11 | ||||||
Diluted
|
(0.36 | ) | (0.06 | ) | 0.01 | 0.11 | ||||||||||
For
the Fiscal Year Ended June 30, 2008 (a):
|
||||||||||||||||
Revenues
|
$ | 4,399 | $ | 29,852 | $ | 28,650 | $ | 32,675 | ||||||||
Gross
profit
|
331 | 3,744 | 3,445 | 2,834 | ||||||||||||
Operating
income (loss)
|
(111 | ) | 3,256 | 3,570 | 1,658 | |||||||||||
Net
income attributable to stockholders
|
1,522 | 1,197 | 834 | 553 | ||||||||||||
Net
income per common share:
|
||||||||||||||||
Basic
|
$ | 0.15 | $ | 0.12 | $ | 0.09 | $ | 0.05 | ||||||||
Diluted
|
0.12 | 0.09 | 0.08 | 0.05 |
Units
|
Common
Stock
|
Warrants
|
|||||||||||||||||||||||
High
|
Low
|
High
|
Low
|
High
|
Low
|
||||||||||||||||||||
FY
2009:
|
|||||||||||||||||||||||||
Second
Quarter (through December 8, 2009)
|
$
|
2.24
|
$
|
1.30
|
$
|
1.58
|
$
|
1.11
|
$
|
0.13
|
$
|
0.03
|
|||||||||||||
First
Quarter
|
2.80
|
1.07
|
1.60
|
1.22
|
0.15
|
0.05
|
|||||||||||||||||||
FY
2009:
|
|||||||||||||||||||||||||
Fourth
Quarter
|
$
|
3.80
|
$
|
1.00
|
$
|
2.16
|
$
|
1.05
|
$
|
0.34
|
$
|
0.08
|
|||||||||||||
Third
Quarter
|
3.12
|
0.92
|
2.50
|
0.85
|
0.13
|
0.02
|
|||||||||||||||||||
Second
Quarter
|
6.49
|
1.88
|
6.40
|
1.59
|
0.75
|
0.03
|
|||||||||||||||||||
First
Quarter
|
8.05
|
5.90
|
7.10
|
4.90
|
1.20
|
0.50
|
|||||||||||||||||||
FY
2008:
|
|||||||||||||||||||||||||
Fourth
Quarter
|
$
|
9.05
|
$
|
6.15
|
$
|
7.54
|
$
|
5.44
|
$
|
1.90
|
$
|
0.91
|
|||||||||||||
Third
Quarter
|
12.15
|
8.50
|
9.05
|
7.00
|
3.24
|
1.55
|
|||||||||||||||||||
Second
Quarter
|
13.70
|
10.00
|
9.89
|
7.90
|
4.05
|
2.20
|
|||||||||||||||||||
First
Quarter
|
10.05
|
8.80
|
8.00
|
7.43
|
2.20
|
1.60
|
·
|
actual
or anticipated variations in our quarterly operating
results;
|
||
·
|
changes
in interest rates, currency conversion rates for the Australian dollar
relative to the U.S. dollar
|
||
and
general economic conditions;
|
|||
·
|
Significant
acquisitions or business combinations, strategic partnerships, joint
ventures or capital commitments by or involving us or our
competitors;
|
||
·
|
operating
and stock price performance of other companies that investors deem
comparable to us;
|
||
·
|
news
reports relating to trends, concerns, litigation, regulatory changes and
other issues in our industry;
|
||
|
·
|
geopolitical
conditions such as acts or threats of terrorism or military conflicts;
and
|
|
·
|
relatively
low trading volume.
|
•
|
require
us to dedicate a substantial portion of our cash flow from operations at
Royal Wolf and Pac-Van to payments on our indebtedness, which could reduce
the availability of our cash flow to fund future working capital, capital
expenditures, acquisitions and other general corporate
purposes;
|
||
•
|
expose
us to the risk of increased interest rates, as our borrowings on our
secured senior credit facilities are at variable rates of
interest;
|
||
•
|
require
us to sell assets to reduce indebtedness or influence our decisions about
whether to do so;
|
||
•
|
increase
our vulnerability to general adverse economic and industry
conditions;
|
||
•
|
limit
our flexibility in planning for, or reacting to, changes in our business
and our industry;
|
||
•
|
restrict
us from making strategic acquisitions or pursuing business
opportunities;
|
||
•
|
limit,
along with the financial and other restrictive covenants in our
indebtedness, among other things, our ability to borrow additional funds;
and
|
||
•
|
violating
covenants in these agreements could have a material adverse effect on our
business, financial condition and results of operations; including
substantially increasing our cost of borrowing and restricting our future
operations, if not cured or waived. In addition, the lenders
may be able to terminate any commitments they had made to supply us with
further funds. Accordingly, we may not be able to fully repay our debt
obligations, if some or all of our debt obligations are accelerated upon
an event of default.
|
•
|
payments
and distributions to General Finance Corporation,
|
||
•
|
liens
and sale-leaseback transactions,
|
||
•
|
loans
and investments,
|
||
•
|
debt
and hedging arrangements,
|
||
•
|
mergers,
acquisitions and asset sales,
|
||
•
|
transactions
with affiliates, and
|
||
•
|
changes
in business activities.
|
•
|
may
significantly reduce the equity interest of investors;
|
||
•
|
may
subordinate the rights of holders of common stock if preferred stock is
issued with rights senior to those afforded to our common
stock;
|
||
•
|
may
cause a change in control if a substantial number of our shares of common
stock are issued, which may affect, among other things, our ability to use
our net operating loss carry forwards, if any, and could result in the
resignation or removal of our present officers and directors;
and
|
||
•
|
may
adversely affect prevailing market prices for our common
stock.
|
||
•
|
default
and foreclosure on our assets if our operating revenues after a business
combination are insufficient to repay our debt
obligations;
|
||
•
|
our
immediate payment of all principal and accrued interest, if any, if the
debt security is payable on demand; and
|
||
•
|
our
inability to obtain necessary additional financing if the debt security
instrument covenants restricting our ability to obtain such financing
while the debt instrument is
outstanding.
|
•
|
actual
or anticipated variations in our quarterly operating
results;
|
||
•
|
changes
in interest rates and other general economic
conditions;
|
||
•
|
significant
acquisitions or business combinations, strategic partnerships, joint
ventures or capital commitments by or involving us or our
competitors;
|
||
•
|
operating
and stock price performance of other companies that investors deem
comparable to us;
|
||
•
|
news
reports relating to trends, concerns, litigation, regulatory changes and
other issues in our industry;
|
||
•
|
geopolitical
conditions such as acts or threats of terrorism or military conflicts;
and
|
||
•
|
relatively
low trading volume.
|
||
Price
per Unit
|
$
|
|||
Net
tangible book value per share prior to the rights offering
|
$
|
0.10
|
||
Increase
per share attributable to the rights offering
|
$
|
|||
Pro
forma net tangible book value per share after the rights
offering
|
$
|
|||
Dilution
in net tangible book value per share to purchasers
|
$
|
At September
30,
2009
|
||||||||||
Actual
|
As
Adjusted
|
|||||||||
(Unaudited
and in thousands)
|
||||||||||
Cash
and cash equivalents
|
$
|
29
|
$
|
|||||||
Total
liabilities
|
$
|
240,422
|
$
|
|||||||
Noncontrolling
interest
|
9,191
|
|||||||||
Common
stock, $.0001 par value, 100,000,000 shares authorized,
17,826,052 shares issued and outstanding
|
2
|
|||||||||
Series
A Preferred Stock, $0.0001 par value, 900,000 shares authorized, 24,900
shares outstanding
|
1,245
|
|||||||||
Series
B Preferred Stock, $0.0001 par value, 100,000 shares authorized, 100
issued and outstanding
|
100
|
|||||||||
Additional
paid-in capital
|
105,560
|
|||||||||
Accumulated
other comprehensive loss
|
(903)
|
|||||||||
Retained
earnings
|
1,510
|
|||||||||
Total
stockholders’ equity
|
107,514
|
|||||||||
Total
capitalization
|
$
|
357,127
|
$
|
●
|
prior
to the date of the transaction, the board of directors of the corporation
approved either the business combination or the transaction which resulted
in the stockholder becoming an interested stockholder.
|
●
|
upon
completion of the transaction that resulted in the stockholder becoming an
interested stockholder, the stockholder owned at least 85% of the voting
stock of the corporation outstanding at the time the transaction
commenced, excluding for purposes of determining the number of shares
outstanding (1) shares owned by persons who are directors and also
officers and (2) shares owned by employee stock plans in which employee
participants do not have the right to determine confidentially whether
shares held subject to the plan will be tendered in a tender or exchange
offer.
|
●
|
on
or subsequent to the date of the transaction, the business combination is
approved by the board and authorized at an annual or special meeting of
stockholders, and not by written consent, by the affirmative vote of at
least 66 2/3% of the outstanding voting stock which is not owned by
the interested stockholder.
|
•
|
In
November 2007 we acquired substantially all of the assets of GE SeaCo
Australia Pty Ltd. (“GeSeaco”) for $17.9 million. The acquisition
added more than 6,300 containers to Royal Wolf’s fleet, of which 4,600
units are leased by approximately 200 mid-sized businesses and
approximately 20 national accounts serving such industries as road and
rail, moving and storage and logistics. Prior to the acquisition, we
believe GE SeaCo was the third largest storage container lessor in
Australia. GE SeaCo exited the domestic container leasing market in
Australia through this transaction and the simultaneous sale of its tank
container business. Royal Wolf assumed several depot and agency contracts,
including a third party sales agreement for intermodal containers from the
GE SeaCo international fleet.
|
•
|
In
February 2008 we acquired the dry and refrigerated container assets
of Container Hire and Sales (“CHS”), located south of Perth, Australia for
$3.8 million. With this acquisition, Royal Wolf added 630 storage
containers, of which approximately 570 units were leased in the mining
dominated Western Australia marketplace. This acquisition ultimately
consolidated with an existing CSC in the Bibra Lakes suburb, south of
Perth.
|
|||
•
|
On
April 30, 2008 (May 1 in New Zealand), we acquired RWNZ Acquisition
Co. Limited (“RWAC”) and its wholly owned subsidiary Royalwolf Trading New
Zealand (“RWNZ”), believed to be the largest marketer and lessor of
storage containers in New Zealand, for approximately $17.0 million.
Through this acquisition Royal Wolf acquired more than 5,800 storage
containers, of which approximately 5,000 storage containers were in the
leasing fleet that are primarily delivered through five branches or
customer service centers.
|
|||
•
|
In
June 2008, we acquired 162 storage containers from Container Hire
& Storage Pty Ltd, d/b/a Tomago Self-Storage, in Tomago, New South
Wales for approximately $427,000.
|
|||
•
|
In
July 2008, we acquired the business of NT Container Services for
$1,028,000.
|
•
|
In
October 2008, we purchased the business of Ace Container Services Pty
Ltd for $741,000.
|
|
Industry
Overview
|
•
|
The
level of knowledge among potential customers regarding the availability
and benefits of containerized storage in key Australia and New Zealand
markets, such as the construction and mining industries, is still
relatively low;
|
||
•
|
Suppliers
and customers continue to develop further uses for mobile storage
containers, thereby broadening the market for mobile storage containers;
and
|
•
|
As
the market leader in Australia and New Zealand, Royal Wolf has
consistently achieved organic growth based, in part, on growth in the
market as a whole.
|
Competitor
|
Scope
of Operations
|
|
Simply
Containers
|
National
|
|
Macfield
|
Regional
|
|
Cronos
|
National
|
|
ANL
CGM
|
National
|
•
|
Engineering,
construction and resources — approximately
50%.
|
•
|
Non-residential
building construction — approximately
35%.
|
•
|
Recreation
and holiday market — approximately
15%.
|
Competitor
|
Scope
of Operations
|
|
Coates
|
National
|
|
Ausco
|
National
|
|
Nomad
|
National
|
|
Atco
|
National
|
Competitor
|
Scope
of Operations
|
|
Macfield
|
National
|
|
Cronos
|
National
|
|
Simply
Containers
|
National
|
|
ANL
|
National
|
Mobile
storage containers:
|
10-foot,
20-foot and 40-foot general purpose units
|
|
Double
pallet-wide high cube units
|
||
Hazardous
goods containers
|
||
Refrigerated
containers
|
||
Portable container
buildings:
|
Site
offices and cabins
|
|
Workforce
accommodation units
|
||
Luxury
accommodation units
|
||
Restroom
blocks
|
||
Blast-resistant
units
|
||
Specialized
office and infrastructure suites
|
||
Freight
Containers:
|
Curtain-side
containers
|
|
20-foot
and 40-foot Hi-cube containers
|
||
20-foot
and 40-foot two pallet-wide containers
|
||
Side-opening
door containers
|
||
20-foot
bulk containers
|
Sales
|
$
|
45.2
|
81
|
%
|
||||
Leasing
|
25.9
|
72
|
%
|
|||||
Mobile
storage containers in lease fleet
|
18,449
|
65
|
%
|
Sales
|
$
|
8.3
|
15
|
%
|
||||
Leasing
|
3.9
|
11
|
%
|
|||||
Portable
container buildings in lease fleet
|
1,758
|
6
|
%
|
Sales
|
$
|
2.4
|
4
|
%
|
||||
Leasing
|
6.4
|
17
|
%
|
|||||
Freight
containers in lease fleet
|
8,020
|
29
|
%
|
Suppliers
|
Type
of Product Purchased
|
Percentage
of Container Purchases
|
||||||
Nantong
CIMC
|
New
|
29
|
%
|
|||||
Dong
Fang
|
New
|
9
|
%
|
|||||
Singamas
|
New
|
8
|
%
|
|||||
Eastern
Container Alliance
|
New
|
7
|
%
|
|
Temporary
storage of excess inventory for the retail and wholesale industries;
and
Offices, workshops or storerooms;
Portable work camps for the resources industry,
including accommodations, ablution and kitchen containers;
Blast resistant containers for
refineries;
Rapid deployment storage for the military,
emergency services and disaster relief;
Lost-cost accommodations for remote communities
and caravan parks;
Farm storage for cattle feed, farm equipment,
fertilizers and other items.
|
Senior
and CSC management
|
28
|
|||
Corporate
staff
|
44
|
|||
Sales
and marketing
|
63
|
|||
CSC
operations and administration
|
92
|
Senior
and branch management
|
30
|
|||
Corporate
staff
|
21
|
|||
Sales
and marketing
|
37
|
|||
Branch
operations and administration
|
114
|
Quarter
Ended September 30,
|
||||||||
2008
|
2009
|
|||||||
(in
millions)
|
||||||||
Salaries,
wages and related
|
$
|
4.1
|
$
|
3.4
|
||||
Share-based
payments
|
0.1
|
0.1
|
||||||
Rent
|
0.1
|
0.1
|
||||||
CSC
operating costs
|
1.5
|
1.2
|
||||||
Business
promotion
|
0.4
|
0.3
|
||||||
Travel
and meals
|
0.4
|
0.2
|
||||||
IT
and telecommunications
|
0.3
|
0.2
|
||||||
Professional
costs
|
0.6
|
0.3
|
||||||
Other
|
0.3
|
0.4
|
||||||
$
|
7.8
|
$
|
6.2
|
Predecessor
|
Successor
|
Combined
|
Successor
|
|||||||||||||||
Period
from
|
||||||||||||||||||
July
1 to
|
||||||||||||||||||
September
13,
|
Year
Ended June 30,
|
|||||||||||||||||
2007
|
2008
|
2008
|
2009
|
|||||||||||||||
(in
thousands)
|
||||||||||||||||||
Revenues
|
||||||||||||||||||
Sales
|
$
|
10,944
|
$
|
68,029
|
$
|
78,973
|
$
|
75,528
|
||||||||||
Leasing
|
4,915
|
27,547
|
32,462
|
70,932
|
||||||||||||||
15,859
|
95,576
|
111,435
|
146,460
|
|||||||||||||||
Costs
and expenses
|
||||||||||||||||||
Cost
of sales
|
9,466
|
57,675
|
67,141
|
64,317
|
||||||||||||||
Leasing,
selling and general expenses
|
4,210
|
22,161
|
26,371
|
51,040
|
||||||||||||||
Depreciation
and amortization
|
653
|
7,367
|
8,020
|
17,045
|
||||||||||||||
Operating
income
|
1,530
|
8,373
|
9,903
|
14,058
|
||||||||||||||
Interest
income
|
14
|
1,289
|
1,303
|
296
|
||||||||||||||
Interest
expense
|
(947
|
)
|
(6,888
|
)
|
(7,835
|
)
|
(16,161
|
)
|
||||||||||
Foreign
currency exchange gain (loss) and other
|
(129
|
)
|
3,814
|
3,685
|
(9,312
|
)
|
||||||||||||
(1,062
|
)
|
(1,785
|
)
|
(2,847
|
)
|
(25,177
|
)
|
|||||||||||
Income
(loss) before provision for income taxes and
noncontrolling interest
|
468
|
6,588
|
7,056
|
(11,119
|
)
|
|||||||||||||
Provision
(benefit) for income taxes
|
180
|
2,034
|
2,214
|
(4,374
|
)
|
|||||||||||||
Net
income (loss)
|
288
|
4,554
|
4,842
|
(6,745
|
)
|
|||||||||||||
Noncontrolling
interest
|
—
|
448
|
448
|
(3,028
|
)
|
|||||||||||||
Net
income (loss) attributable to stockholders
|
$
|
288
|
$
|
4,106
|
$
|
4,394
|
$
|
(3,717
|
)
|
|||||||||
Year
Ended June 30,
|
||||||||
2008
|
2009
|
|||||||
(in
millions)
|
||||||||
Salaries,
wages and related
|
$
|
13.1
|
$
|
12.5
|
||||
Share-based
payments
|
0.3
|
0.4
|
||||||
Rent
|
0.4
|
0.4
|
||||||
CSC
operating costs
|
5.0
|
4.5
|
||||||
Business
promotion
|
1.1
|
1.2
|
||||||
Travel
and meals
|
1.1
|
0.8
|
||||||
IT
and telecommunications
|
0.8
|
0.8
|
||||||
Professional
costs
|
1.9
|
1.6
|
||||||
Other
|
0.3
|
1.1
|
||||||
$
|
24.0
|
$
|
23.3
|
Predecessor
|
Successor
|
Combined
|
|||||||||||||||
Year
|
Period
from
|
Year
|
|||||||||||||||
Ended
|
July
1 to
|
Ended
|
|||||||||||||||
June
30,
|
September
13,
|
June
30,
|
|||||||||||||||
2007
|
2007
|
2008
|
|||||||||||||||
(In
thousands)
|
|||||||||||||||||
Revenues
|
|||||||||||||||||
Sale
of containers
|
$
|
52,929
|
$
|
10,944
|
$
|
68,029
|
$
|
78,973
|
|||||||||
Leasing
of containers
|
21,483
|
4,915
|
27,547
|
32,462
|
|||||||||||||
74,412
|
15,859
|
95,576
|
111,435
|
||||||||||||||
Costs
and expenses
|
|||||||||||||||||
Cost
of sales
|
46,402
|
9,466
|
57,675
|
67,141
|
|||||||||||||
Leasing,
selling and general expenses
|
20,761
|
4,210
|
22,161
|
26,371
|
|||||||||||||
Depreciation
and amortization
|
2,577
|
653
|
7,367
|
8,020
|
|||||||||||||
Operating
income
|
4,672
|
1,530
|
8,373
|
9,903
|
|||||||||||||
Interest
income
|
413
|
14
|
1,289
|
1,303
|
|||||||||||||
Interest
expense
|
(4,378
|
)
|
(947
|
)
|
(6,888
|
)
|
(7,835
|
)
|
|||||||||
Foreign
currency exchange gain (loss) and other
|
95
|
(129
|
)
|
3,814
|
3,685
|
||||||||||||
(3,870
|
)
|
(1,062
|
)
|
(1,785
|
)
|
(2,847
|
)
|
||||||||||
Income
(loss) before provision for income taxes and noncontrolling
interest
|
802
|
468
|
6,588
|
7,056
|
|||||||||||||
Provision
for income taxes
|
490
|
180
|
2,034
|
2,214
|
|||||||||||||
Net
income
|
312
|
288
|
4,554
|
4,842
|
|||||||||||||
Noncontrolling
interest
|
—
|
—
|
448
|
448
|
|||||||||||||
Net
income attributable to stockholders
|
$
|
312
|
$
|
288
|
$
|
4,106
|
$
|
4,394
|
|||||||||
Year
Ended June 30,
|
||||||||
2007
|
2008
|
|||||||
(in
millions)
|
||||||||
Salaries,
wages and related
|
$
|
9.6
|
$
|
13.1
|
||||
Share-based
payments
|
3.7
|
0.3
|
||||||
Rent
|
0.2
|
0.4
|
||||||
CSC
operating costs
|
2.7
|
5.0
|
||||||
Business
promotion
|
0.8
|
1.1
|
||||||
Travel
and meals
|
0.8
|
1.1
|
||||||
IT
and telecommunications
|
0.6
|
0.8
|
||||||
Professional
costs
|
1.4
|
1.9
|
||||||
Other
|
1.0
|
0.3
|
||||||
$
|
20.8
|
$
|
24.0
|
Quarter
Ended September 30,
|
||||||||
2008
|
2009
|
|||||||
(in
thousands)
|
||||||||
Operating
income
|
$
|
1,727
|
$
|
2,075
|
||||
Add
— depreciation and amortization
|
3,383
|
5,257
|
||||||
EBITDA
|
5,110
|
7,332
|
||||||
Add
— Share-based compensation expense
|
210
|
246
|
||||||
Adjusted
EBITDA
|
$
|
5,320
|
$
|
7,578
|
||||
Predecessor
|
Successor
|
Combined
|
Successor
|
|||||||||||||||||
Year
|
Period
from
|
|||||||||||||||||||
Ended
|
July
1 to
|
|||||||||||||||||||
June
30,
|
September
13,
|
Year
Ended June 30,
|
||||||||||||||||||
2007
|
2007
|
2008
|
2008
|
2009
|
||||||||||||||||
Operating
income
|
$
|
4,672
|
$
|
1,530
|
$
|
8,373
|
$
|
9,903
|
$
|
14,058
|
||||||||||
Add
— depreciation and amortization
|
2,577
|
653
|
7,367
|
8,020
|
17,045
|
|||||||||||||||
EBITDA
|
7,249
|
2,183
|
15,740
|
17,923
|
31,103
|
|||||||||||||||
Add
— Share-based compensation expense
|
3,689
|
—
|
509
|
509
|
902
|
|||||||||||||||
Adjusted
EBITDA
|
$
|
10,938
|
$
|
2,183
|
$
|
16,249
|
$
|
18,432
|
$
|
32,005
|
||||||||||
Year
Ending June 30,
|
||||||||||||||||||||
2010
(a)
|
2011
|
2012
(b)
|
2013
|
|||||||||||||||||
ANZ
senior credit facility and other
|
$
|
10,900
|
$
|
10,600
|
$
|
300
|
$
|
56,800
|
||||||||||||
Bison
Capital subordinated notes
|
—
|
5,500
|
—
|
16,000
|
||||||||||||||||
Holdback
note (issued in connection with Pac-Van acquisition)
|
1,500
|
—
|
—
|
—
|
||||||||||||||||
BOA
senior credit facility
|
—
|
—
|
—
|
71,100
|
||||||||||||||||
SPV
subordinated note
|
—
|
—
|
—
|
25,000
|
||||||||||||||||
Union
Bank credit facility
|
—
|
900
|
—
|
—
|
||||||||||||||||
$
|
12,400
|
$
|
17,000
|
$
|
300
|
$
|
168,900
|
|||||||||||||
(a)
|
Does
not include the invoice financing and overdraft facilities totaling
$4.3 million. These continually roll over and will be fully repaid at
the maturity of the ANZ facility.
|
|||||||||||||||||||
(b)
|
The
Bison put option of a minimum of $12.9 million is effective on
July 1,
2011.
|
Quarter
Ended September 30,
|
||||||||
2008
|
2009
|
|||||||
Net
cash provided by operating activities
|
$
|
507
|
$
|
7,465
|
||||
Net
cash used by investing activities
|
$
|
(7,121
|
)
|
$
|
(2,579
|
)
|
||
Net
cash provided (used) by financing activities
|
$
|
26,578
|
$
|
(8,153
|
)
|
|||
Predecessor
|
Successor
|
Combined
|
Successor
|
|||||||||||||||||
Year
|
Period
from
|
|||||||||||||||||||
Ended
|
July
1 to
|
|||||||||||||||||||
June
30,
|
September
13,
|
Year
Ended June 30,
|
||||||||||||||||||
2007
|
2007
|
2008
|
2008
|
2009
|
||||||||||||||||
Net
cash provided by operating activities
|
$
|
8,956
|
$
|
4,294
|
$
|
8,016
|
$
|
12,310
|
$
|
23,332
|
||||||||||
Net
cash used by investing activities
|
$
|
(21,914
|
)
|
$
|
(3,078
|
)
|
$
|
(120,484
|
)
|
$
|
(123,562
|
)
|
$
|
(38,793
|
)
|
|||||
Net
cash provided (used) by financing activities
|
$
|
13,389
|
$
|
(1,807
|
)
|
$
|
45,352
|
$
|
43,545
|
$
|
17,831
|
|||||||||
|
General
Finance
|
Pac-Van
|
Pro Forma
Adjustments
|
Pro Forma
Combined
|
|||||||||
|
(In
thousands, except share and per share data)
|
||||||||||||
Revenues
|
$
|
146,460
|
$
|
22,642
|
$
|
--
|
$
|
169,102
|
|||||
Costs and expenses
|
|||||||||||||
Cost
of sales
|
64,317
|
6,294
|
--
|
70,611
|
|||||||||
Leasing,
selling and general expenses
|
51,040
|
11,738
|
(1,140
|
)(e)
|
61,638
|
||||||||
Depreciation
and amortization
|
17,045
|
1,229
|
243
|
(b)
|
18,600
|
||||||||
|
|
83
|
(c)
|
|
|||||||||
Operating
income
|
14,058
|
3,381
|
814
|
18,253
|
|||||||||
Interest
income
|
296
|
--
|
--
|
296
|
|||||||||
Interest
expense
|
(16,161
|
)
|
(
2,894
|
)
|
--
|
(a)
|
(19,064
|
)
|
|||||
(9
|
)(d)
|
||||||||||||
Other,
net
|
(9,312
|
)
|
--
|
--
|
(9,312
|
)
|
|||||||
(25,177
|
)
|
(2,894
|
)
|
(9
|
)
|
(28,080
|
)
|
||||||
Income (loss) before
provision for income taxes and noncontrolling interest
|
(11,119
|
)
|
487
|
805
|
(9,827
|
)
|
|||||||
Provision
(benefit) for income taxes
|
(4,374
|
)
|
173
|
339
|
(f)
|
(3,862
|
)
|
||||||
Net
income (loss)
|
(6,745
|
)
|
314
|
466
|
(5,965
|
)
|
|||||||
Noncontrolling interest
|
(3,028
|
)
|
--
|
--
|
(3,028
|
)
|
|||||||
Net
income (loss) attributable to stockholders
|
$
|
(3,717
|
)
|
$
|
314
|
$
|
466
|
$
|
(2,937
|
)
|
|||
Net
loss per common share:
|
|||||||||||||
Basic
|
$
|
(0.17
|
)
|
||||||||||
Diluted
|
$
|
(0.17
|
)
|
||||||||||
Weighted
average shares outstanding:
|
|||||||||||||
Basic
|
17,826,052
|
(g)
|
|||||||||||
Diluted
|
17,826,052
|
(g)
|
|
General
Finance
|
Pac-Van
|
Pro Forma
Adjustments
|
Pro Forma
Combined
|
|||||||||
|
(In
thousands, except share and per share data)
|
||||||||||||
Revenues
|
$
|
95,576
|
$
|
70,824
|
$
|
--
|
$
|
166,400
|
|||||
Costs and expenses
|
|||||||||||||
Cost
of sales
|
57,675
|
14,038
|
--
|
71,713
|
|||||||||
Leasing,
selling and general expenses
|
22,161
|
35,252
|
--
|
57,413
|
|||||||||
Depreciation
and amortization
|
7,367
|
4,833
|
970
|
(b)
|
13,312
|
||||||||
|
|
142
|
(c)
|
|
|||||||||
Operating income (loss)
|
8,373
|
16,701
|
(1,112
|
)
|
23,962
|
||||||||
Interest
income
|
1,289
|
--
|
--
|
1,289
|
|||||||||
Interest
expense
|
(6,888
|
)
|
(
8,743
|
)
|
(987
|
)(a)
|
(16,654
|
)
|
|||||
(36
|
)(d)
|
||||||||||||
Other,
net
|
3,814
|
--
|
--
|
3,814
|
|||||||||
(1,785
|
)
|
(8,743
|
)
|
(1,023
|
)
|
(11,551
|
)
|
||||||
Income before provision for
income taxes and noncontrolling interest
|
6,588
|
7,958
|
(2,135
|
)
|
12,411
|
||||||||
Provision
for income taxes
|
2,034
|
3,332
|
(409
|
)(f)
|
4,957
|
||||||||
Net
income
|
4,554
|
4,626
|
(1,726
|
)
|
7,454
|
||||||||
Noncontrolling interest
|
448
|
--
|
--
|
448
|
|||||||||
Net income attributable to
stockholders
|
$
|
4,106
|
$
|
4,626
|
$
|
(1,726
|
)
|
$
|
7,006
|
||||
Net
income per common share:
|
|||||||||||||
Basic
|
$
|
0.39
|
|||||||||||
Diluted
|
$
|
0.39
|
|||||||||||
Weighted
average shares outstanding:
|
|||||||||||||
Basic
|
17,826,052
|
(g)
|
|||||||||||
Diluted
|
18,150,494
|
(g)
|
|
For
the year ended June 30,
|
||||||||||||
|
2009
|
2008
|
|||||||||||
|
Basic
|
Diluted
|
Basic
|
Diluted
|
|||||||||
|
|
|
|
|
|||||||||
Common
stock assumed outstanding at beginning of period
|
9,690,099
|
9,690,099
|
9,690,099
|
9,690,099
|
|||||||||
Common
stock issued in connection with warrant exercise
program
|
4,135,953
|
4,135,953
|
4,135,953
|
4,135,953
|
|||||||||
Common
stock issued in connection with the business combination
|
4,000,000
|
4,000,000
|
4,000,000
|
4,000,000
|
|||||||||
Assumed
exercise of warrants and stock options
|
--
|
--
|
|
--
|
324,442
|
||||||||
|
17,826,052
|
17,826,052
|
17,826,052
|
18,150,494
|
Name
|
Age
|
Position
|
||||
Ronald
F. Valenta
|
51
|
Chief
Executive Officer and Director
|
||||
Charles
E. Barrantes
|
57
|
Executive
Vice President and Chief Financial Officer
|
||||
Christopher
A. Wilson
|
42
|
General
Counsel, Vice President & Secretary
|
||||
Robert
Allan
|
53
|
Chief
Executive Officer, Royal Wolf
|
||||
Theodore
Mourouzis
|
46
|
President,
Pac-Van
|
||||
Lawrence
Glascott
|
75
|
Chairman
of the Board of Directors
|
||||
David
M. Connell
|
65
|
Director
|
||||
Susan
L. Harris
|
52
|
Director
|
||||
Ronald
L. Havner, Jr.
|
52
|
Director
|
||||
Manuel
Marrero
|
52
|
Director
|
||||
James
B. Roszak
|
68
|
Director
|
Option
|
|||||||||||||||||||||||||||
Awards
|
All
Other
|
||||||||||||||||||||||||||
Name
and Principal Position
|
Year
|
Salary
|
Bonus
|
(4)
|
Compensation
|
Total
|
|||||||||||||||||||||
Ronald
F. Valenta
Chief
Executive Officer (6)
|
2009
|
$
|
77,778
|
$
|
—
|
$
|
—
|
$
|
25,000
|
$
|
102,778
|
||||||||||||||||
Charles
E. Barrantes
Chief
Financial Officer and
Executive
Vice President (1)(5)
|
2009
|
$
|
200,000
|
$
|
42,000
|
$
|
137,600
|
$
|
5,250
|
$
|
384,850
|
||||||||||||||||
2008
|
200,000
|
90,000
|
137,600
|
10,533
|
438,133
|
||||||||||||||||||||||
2007
|
100,000
|
—
|
68,800
|
3,512
|
172,312
|
||||||||||||||||||||||
2006
|
62,121
|
21,742
|
42,000
|
3,361
|
129,224
|
||||||||||||||||||||||
Christopher
A. Wilson
General
Counsel, Vice President and
Counsel
(2)(5)
|
2009
|
$
|
200,000
|
$
|
42,000
|
$
|
168,600
|
$
|
9,598
|
$
|
420,198
|
||||||||||||||||
2008
|
109,167
|
108,133
|
92,100
|
11,335
|
321,435
|
||||||||||||||||||||||
Robert
Allan
Chief
Executive Officer, Royal Wolf (3)
|
2009
|
$
|
261,813
|
$
|
21,468
|
$
|
128,500
|
$
|
—
|
$
|
411,781
|
||||||||||||||||
2008
|
313,764
|
107,575
|
71,600
|
—
|
492,939
|
||||||||||||||||||||||
Theodore
Mourouzis
President,
Pac-Van, Inc. (7)(8)
|
2009
|
$
|
163,221
|
$
|
50,042
|
$
|
42,700
|
$
|
3,450
|
$
|
259,413
|
||||||||||||||||
(1)
|
The
employment of Mr. Barrantes commenced in
September 2006.
|
||||||||||||||||||||||||||
(2)
|
The
employment of Mr. Wilson commenced in December 2007. Fiscal year
2008 included a signing bonus of $70,833.
|
||||||||||||||||||||||||||
(3)
|
Mr. Allan
became a Named Executive Officer in conjunction with our acquisition of
Royal Wolf effective September 13, 2007. The salary reflected in this
table was for the full fiscal year 2008. Australian dollar to U.S. dollar
exchange rates used were 0.7480 in fiscal year 2009 and 0.8965 in fiscal
year 2008.
|
||||||||||||||||||||||||||
(4)
|
The
amounts shown are the amounts of compensation expense recognized by us
relating to the grants of stock options, as described in Financial
Accounting Standards Board ("FASB") Accounting Standards Codification
("ASC") Topic 718, Compensation – Stock
Compensation. For a discussion of valuation assumptions used in the
calculation of these amounts for fiscal year 2008, see Note 2, “ Summary
of Significant Accounting Policies,” and Note 9, “Stock Option Plans,” of
the Notes to Consolidated Financial Statements included in our Annual
Report on Form 10-K for the year ended June 30, 2009 filed with the
Securities and Exchange Commission on September 28,
2009.
|
||||||||||||||||||||||||||
(5)
|
Other
compensation represents reimbursement of medical and dental insurance
premiums.
|
||||||||||||||||||||||||||
(6)
|
The
employment of Mr. Valenta commenced in February 2009. Other compensation
represents a one-time expense allowance.
|
||||||||||||||||||||||||||
(7)
|
Mr.
Mourouzis became a Named Executive Officer in conjunction with our
acquisition of Pac-Van, Inc. effective October 1, 2008. Included in the
bonus paid in fiscal year 2009 was $45,042, which pertained to periods
prior to our acquisition of Pac-Van.
|
||||||||||||||||||||||||||
(8)
|
Other
compensation represents 401(k) plan contributions by Pac-Van,
Inc.
|
All
Other
|
|||||||||||||||||||||||
Date
of
|
Option
Awards:
|
Exercise
or
|
|||||||||||||||||||||
Approval
of
|
Number
of
|
Base
Price of
|
Grant
Date
|
||||||||||||||||||||
Grants
by the
|
Securities
|
Option
|
Fair
Value of
|
||||||||||||||||||||
Compensation
|
Underlying
|
Awards
|
Option
|
||||||||||||||||||||
Name
|
Grant
Date
|
Committee
|
Options
(#)
|
($/Shares)
|
Awards
($)
|
||||||||||||||||||
Theodore
Mourouzis
|
10/1/2008
|
9/17/2008
|
125,000
|
(1)
|
$
|
6.40
|
$
|
256,300
|
|||||||||||||||
(1)
|
50,000
of these stock options vest in five equal annual installments beginning
October 1, 2009 and 75,000 of these stock options vest in varying periods
over 71 months subject to performance conditions based on Pac-Van,
Inc. achieving certain EBITDA (earnings before interest, income taxes,
depreciation and amortization and other non-operating costs) targets for
the fiscal years 2009 through
2013.
|
Number
of
|
Number
of
|
||||||||||||||||||||||
Securities
|
Securities
|
Equity
Incentive Plan
|
|||||||||||||||||||||
Underlying
|
Underlying
|
Awards:
Number of
|
|||||||||||||||||||||
Unexercised
|
Unexercised
|
Securities
Underlying
|
|||||||||||||||||||||
Options
|
Options
|
Unexercised
Unearned
|
|||||||||||||||||||||
(#)
|
(#)
|
Options
|
Exercise
Price
|
Expiration
|
|||||||||||||||||||
Name
|
Exercisable
|
Unexercisable
|
(#)
|
($/Sh)
|
Date
|
||||||||||||||||||
Charles
E. Barrantes
|
90,000
|
135,000
|
(1)
|
—
|
$
|
7.30
|
9/11/16
|
||||||||||||||||
Christopher
A. Wilson
|
45,000
|
180,000
|
(2)
|
—
|
$
|
9.05
|
12/14/17
|
||||||||||||||||
Robert
Allan
|
9,000
|
116,000
|
(3)
|
—
|
$
|
8.80
|
1/22/18
|
||||||||||||||||
Theodore
Mourouzis
|
—
|
125,000
|
(4)
|
—
|
$
|
6.40
|
10/1/18
|
||||||||||||||||
(1)
|
These
options vest in five equal annual installments on September 11 of
each of 2007, 2008, 2009, 2010 and 2011, subject to continued service with
us, and have a ten-year term.
|
||||||||||||||||||||||
(2)
|
These
options vest in five equal annual installments on December 14 of each
of 2008, 2009, 2010, 2011 and 2012, subject to continued service with us,
and have a ten-year term.
|
||||||||||||||||||||||
(3)
|
45,000
of these stock options vest in five equal annual installments on
January 22 of each of 2009, 2010, 2011, 2012 and 2013. 80,000 of
these stock options vest over 20 months subject to a performance
condition based on Royal Wolf achieving a certain EBITDA target for the
fiscal year 2008. In June 2008, the Compensation Committee determined
that 40,000 of these performance-based options would be deemed to have
achieved the performance criteria and the remaining 40,000
performance-based options would be rolled over and modified during the
first quarter of the fiscal year ending June 30, 2010, over a longer
period. These stock options are subject to continued service with us and
have a ten-year term.
|
||||||||||||||||||||||
(4)
|
50,000
of these options vest in five equal installments beginning October 1, 2009
and 75,000 of these options vest in varying periods over 71 months subject
to performance conditions based on Pac-Van, Inc. achieving certain EBITDA
targets for the fiscal years 2009 through 2013. These stock options are
subject to continued service with us and hold a ten-year
term.
|
Beneficial
Ownership
|
||||||||
Number
of
|
Percent
of
|
|||||||
Name
|
Shares(1)
|
Class(1)
|
||||||
Ronald
F. Valenta(2)(3)
|
3,776,805
|
21.2
|
%
|
|||||
James
B. Roszak(2)(4)
|
31,500
|
(*
|
)
|
|||||
Lawrence
Glascott(2)(5)
|
36,200
|
(*
|
)
|
|||||
Manuel
Marrero(2)(6)
|
50,500
|
(*
|
)
|
|||||
David
M. Connell(2)(7)
|
27,500
|
(*
|
)
|
|||||
Susan
Harris(2)(8)
|
3,000
|
(*
|
)
|
|||||
Ronald
L. Havner, Jr.(9)
|
2,562,175
|
14.4
|
%
|
|||||
LeeAnn
R. Havner
The
Havner Family Trust
c/o
Karl Swaidan
Hahn
& Hahn LLP
301
East Colorado Boulevard, Suite 900
Pasadena,
California 91101
|
||||||||
Charles
E. Barrantes(2)(10)
|
154,000
|
(*
|
)
|
|||||
Christopher
Wilson(2)(11)
|
114,000
|
(*
|
)
|
|||||
Robert
Allan(12)(13)
|
69,170
|
(*
|
)
|
|||||
Theodore
M. Mourouzis(14)(15)
|
262,463
|
1.5
|
%
|
|||||
Gilder,
Gagnon, Howe & Co. LLC(16)
|
961,720
|
5.4
|
%
|
|||||
Olowalu
Holdings, LLC(17)
|
1,354,571
|
7.6
|
%
|
|||||
2863
S. Western Avenue
Palos
Verdes, California 90275
|
||||||||
Jonathan
Gallen(18)
|
1,578,000
|
8.9
|
%
|
|||||
299
Park Avenue, 17th
Floor
New
York, New York 10171
|
||||||||
Neil
Gagnon(19)
|
2,423,544
|
13.6
|
%
|
|||||
1370
Avenue of the Americas, Suite 2400
New
York, New York 10019
|
||||||||
Jack
Silver(20)
|
2,613,900
|
14.7
|
%
|
|||||
SIAR
Capital LLC
660
Madison Avenue
New
York, New York 10021
|
||||||||
Brencourt
Advisors, LLC(21)
|
231,117
|
1.3
|
%
|
|||||
600
Lexington Avenue
8
th Floor
New
York, NY 10022
|
||||||||
Halcyon
Asset Management LLC
Halcyon
Offshore Asset Management LLC (22)
|
875,842
|
4.9
|
%
|
|||||
477
Madison Avenue
New
York, NY 10022
|
||||||||
All
executive officers and directors as a group (eleven
persons)
|
7,056,313
|
39.6
|
%
|
(1)
|
Based
on 17,826,052 shares of common stock outstanding. In accordance with the
rules of the SEC, person is deemed to be the beneficial owner of shares
that the person may acquire within the following 60 days (such as
upon exercise of options or warrants or conversion of convertible
securities). These shares are deemed to be outstanding for purposes of
computing the percentage ownership of the person beneficially owning such
shares but not for purposes of computing the percentage of any other
holder.
|
|||
(2)
|
Business
address is c/o General Finance Corporation, 39 East Union Street,
Pasadena, California 91103.
|
|||
(3)
|
Includes:
(i) 13,500 shares owned by Mr. Valenta’s wife and minor
children, as to which Mr. Valenta’s shares voting and investment
power with his wife; and (ii) 540,013 shares that may be
acquired upon exercise of warrants. The shares shown exclude the shares
referred to in note (8), below.
|
|||
(4)
|
Includes
31,500 shares owned and 3,000 shares that may be acquired upon
exercise of options.
|
|||
(5)
|
Includes
36,200 shares owned and 3,000 shares that may be acquired upon
exercise of options.
|
|||
(6)
|
Includes
50,500 shares owned and 3,000 shares that may be acquired upon
exercise of options.
|
|||
(7)
|
Includes
27,500 shares owned and 3,000 shares that may be acquired upon
exercise of options.
|
|||
(8)
|
Includes
3,000 shares that may be acquired upon exercise of
options.
|
|||
(9)
|
Information
is based upon Amendment No. 2 to Schedule 13D filed on
October 8, 2008. The shares shown include 2,000 shares as to which
Ronald L. Havner has sole voting power, 3,000 shares as to which his wife,
LeeAnn R. Havner, has sole voting power and 3,000 shares that may be
acquired upon the exercise of stock options. Mr. and Mrs. Havner are
Co-Trustees of The Havner Family Trust. The Trust owns 2,517,425 shares
and 39,750 warrants. As Co-Trustees of the Trust, Mr. and Mrs. Havner
may he deemed to beneficially own all of the shares held by the
Trust.
|
|||
(10)
|
|
Includes
19,000 shares owned and 135,000 shares that may be acquired upon exercise
of stock options.
|
||
(11)
|
Includes
24,000 shares owned and 90,000 shares that may be acquired upon exercise
of stock options.
|
|||
(12)
|
Business
address is Suite 201, Level 2, 22-28 Edgeworth David Avenue, Hornsby,
New South Wales, Australia 2077
|
|||
(13)
|
Includes
20,170 shares owned and 49,000 shares that may be acquired upon the
exercise of stock options.
|
|||
(14)
|
Business
address is 2995 South Harding Street, Indianapolis,
IN 46225.
|
|||
(15)
|
Includes
252,463 shares owned and 10,000 shares that may be acquired upon exercise
of stock options.
|
|||
(16)
|
Information
is based upon a Schedule 13G filed on April 10, 2009. Gilder, Gagnon,
Howe & Co. LLC is a New York limited liability and broker or dealer
registered under the Securities Exchange Act of 1934. The shares shown
include 28,865 shares as to which Gilder, Gagnon, Howe & Co. LLC has
sole voting power and 932,855 shares as to which it has investment power.
Of these 932,855 shares, 823,762 shares are held in customer accounts
under which partners or employees of Gilder, Gagnon, Howe & Co. LLC
have discretionary authority to dispose or direct the disposition of the
shares, 109,093 shares are held in accounts of its partners and 28,865
shares are held in its profit-sharing plan.
|
|||
(17)
|
Information
is based upon an Amendment to Schedule 13G filed on February 13, 2009.
Olowalu Holdings, LLC (“Olowalu”), is a Hawaiian limited liability
company, of which Rick Pielago is the manager. Olowalu shares voting and
investment power as to all of the shares shown with Lighthouse Capital
Insurance Company, a Cayman Islands exempted limited company, and the
Ronald Valenta Irrevocable Life Insurance Trust No. 1, a California
trust, of which Mr. Pielago is trustee. The Ronald Valenta
Irrevocable Life Insurance Trust No. 1 is an irrevocable family trust
established by Ronald F. Valenta in December 1999 for the benefit of
his wife at the time, any future wife, and their descendants.
Mr. Valenta, himself, is not a beneficiary of the Trust, and neither
he nor his wife or their descendants has voting or investment power, or
any other legal authority, with respect to the shares shown.
Mr. Valenta disclaims beneficial ownership of our shares held by the
Trust. Mr. Pielago may be deemed to be the control person of Olowalu
and the Ronald Valenta Irrevocable Life Insurance Trust
No. 1.
|
|||
(18)
|
Information
is based upon a Schedule 13G filed on February 17, 2009. The
shares shown are held by Ahab Opportunities, L.P. and Ahab Opportunities,
Ltd.
|
|||
(19)
|
Information
is based upon a Schedule 13G filed on February 18, 2009. The
shares shown include: (i) 2,423,544 shares beneficially owned by
Mr. Gagnon; (ii) 901,598 shares beneficially owned by
Mr. Gagnon over which he has sole voting power and shared dispositive
power; and (iii) 1,760,502 shares held for certain customers of
Gagnon Securities LLC, of which Mr. Gagnon is the managing member and
the principal owner and over which he has shared dispositive power but no
voting power.
|
|||
(20)
|
Information
is based upon an Amendment to Schedule 13G filed on February 17, 2009. The
shares shown include: (i) 2,600,000 shares that may be acquired upon
exercise of warrants held by Sherleigh Associates Inc. Profit Sharing
Plan, a trust of which Mr. Silver is the trustee; and
(ii) 13,900 shares held by Sherleigh Associates Inc. Profit Sharing
Plan, a trust of which Mr. Silver is a trustee.
|
|||
(21)
|
Information
is based upon a Schedule 13G filed on February 12, 2009 as an
Investment Advisor with the Sole dispositive and power to vote or to
direct the vote of 231,117 shares.
|
|||
(22)
|
Information
is based upon an Amendment to Schedule 13G filed on February 13,
2009. The shares shown consist of 875,842 shares beneficially owned by
Halcyon Asset Management LLC and Halcyon Offshore Asset Management LLC
over which they have sole voting power and dispositive
power.
|
Number
of Over-Subscription Units
Subscribed
to by Exercising Rights Holder
|
X
|
Units Available
for
Rights
Holders Exercising
Their
Over-Subscription Right
|
|||
Total
Number of Over-Subscription Units
Available
for Rights Holders Exercising Their Over-
Subscription
Right
|
●
|
the
historical and current market price of our common stock;
|
||||
●
|
the
fact that holders of rights will have an over-subscription
right;
|
||||
●
|
the
terms and expenses of this offering relative to other alternatives for
raising capital,
|
||||
●
|
the
size of this offering; and
|
||||
●
|
the
general condition of the securities market.
|
Subscription
Rights Certificate
Delivery
Method
|
Address/Number
|
|
By
Mail/Commercial Courier/Hand Delivery:
|
Continental
Stock Transfer & Trust Company
17
Battery Place, 8th Floor
New
York, NY 10004
(212)
509-4000, x 536
|
·
|
Complete,
date, and sign the acknowledgment of
subscription.
|
·
|
Make
a check payable to “General Finance Corporation” in an amount equal to the
subscription price of $___ times the number of Units subscribed
for.
|
·
|
Return
the completed acknowledgment of subscription and check to General Finance
Corporation, 39 East Union Street, Pasadena, California 91103,
attention: Charles E. Barrantes.
|
•
|
a
citizen or resident of the United States;
|
||
•
|
a
corporation created or organized in or under the laws of the United States
or any political subdivision thereof;
|
||
•
|
an
estate the income of which is subject to U.S. federal income taxation
regardless of its source; or
|
||
•
|
a
trust if (1) a U.S. court is able to exercise primary supervision
over the administration of the trust and one or more U.S. persons have the
authority to control all substantial decisions of the trust or
(2) has a valid election in effect under applicable Treasury
Department regulations to be treated as a United States
person.
|
Condensed
Consolidated Balance Sheets as of June 30, 2009 and September 30,
2009
|
I-2
|
|||
Condensed
Consolidated Statements of Operations for the quarters ended
September 30, 2008 and 2009
|
I-3
|
|||
Condensed
Consolidated Statements of Cash Flows for the quarters
ended September 30, 2008 and 2009
|
I-4
|
|||
Notes
to Condensed Consolidated Financial Statements
|
I-5
|
|||
June
30,
|
September
30,
|
|||||||
2009
|
2009
|
|||||||
(Unaudited)
|
||||||||
Assets
|
||||||||
Cash
and cash equivalents
|
$
|
3,346
|
$
|
29
|
||||
Trade
and other receivables, net of allowance for doubtful accounts of $2,092 at
June 30, 2009 and $2,849 at September 30, 2009
|
26,432
|
21,656
|
||||||
Inventories
|
22,511
|
20,104
|
||||||
Prepaid
expenses
|
1,883
|
2,294
|
||||||
Total
current assets
|
54,172
|
44,083
|
||||||
Lease
receivables
|
1,163
|
1,083
|
||||||
Property,
plant and equipment, net
|
10,460
|
10,666
|
||||||
Lease
fleet, net
|
188,915
|
195,562
|
||||||
Goodwill
|
73,917
|
76,082
|
||||||
Intangible
assets, net
|
30,058
|
29,640
|
||||||
Other
assets
|
11
|
11
|
||||||
Total
assets
|
$
|
358,696
|
$
|
357,127
|
||||
Current
liabilities
|
||||||||
Trade
payables and accrued liabilities
|
$
|
24,422
|
$
|
18,076
|
||||
Current
portion of long-term debt and obligations
|
16,371
|
32,452
|
||||||
Unearned
revenue and advance payments
|
8,461
|
9,163
|
||||||
Total
current liabilities
|
49,254
|
59,691
|
||||||
Non-current
liabilities
|
||||||||
Long-term
debt and obligations, net of current portion
|
183,933
|
166,283
|
||||||
Deferred
tax liabilities
|
13,822
|
14,123
|
||||||
Employee
benefits and other non-current liabilities
|
235
|
325
|
||||||
Total
non-current liabilities
|
197,990
|
180,731
|
||||||
Commitments
and contingencies (Note 8)
|
—
|
—
|
||||||
Noncontrolling
interest (Note 8)
|
8,278
|
9,191
|
||||||
Stockholders’
equity
|
||||||||
Cumulative
preferred stock, $.0001 par value: 1,000,000 shares authorized; 25,000
shares issued and outstanding (in series) and stated at liquidation value
($1,386 total liquidation preference)
|
1,345
|
1,345
|
||||||
Common
stock, $.0001 par value: 100,000,000 shares authorized; 17,826,052 shares
outstanding
|
2
|
2
|
||||||
Additional
paid-in capital
|
105,314
|
105,560
|
||||||
Accumulated
other comprehensive income (loss)
|
(4,963
|
)
|
(903
|
)
|
||||
Retained
earnings
|
1,476
|
1,510
|
||||||
Total
stockholders’ equity
|
103,174
|
107,514
|
||||||
Total
liabilities and stockholders’ equity
|
$
|
358,696
|
$
|
357,127
|
Quarter
Ended September 30,
|
||||||||
2008
|
2009
|
|||||||
Revenues
|
||||||||
Sales
|
$
|
20,995
|
$
|
16,613
|
||||
Leasing
|
10,658
|
18,606
|
||||||
31,653
|
35,219
|
|||||||
Costs
and expenses
|
||||||||
Cost
of sales
|
18,166
|
13,785
|
||||||
Leasing,
selling and general expenses
|
8,377
|
14,102
|
||||||
Depreciation
and amortization
|
3,383
|
5,257
|
||||||
Operating
income
|
1,727
|
2,075
|
||||||
Interest
income
|
121
|
59
|
||||||
Interest
expense
|
(4,364
|
)
|
(3,707
|
)
|
||||
Foreign
currency exchange gain (loss) and other
|
(7,717
|
)
|
2,593
|
|||||
(11,960
|
)
|
(1,055
|
)
|
|||||
Income
(loss) before provision for income taxes and noncontrolling
interest
|
(10,233
|
)
|
1,020
|
|||||
Provision
(benefit) for income taxes
|
(3,565
|
)
|
372
|
|||||
Net
income (loss)
|
(6,668
|
)
|
648
|
|||||
Noncontrolling
interest
|
(1,641
|
)
|
573
|
|||||
Net
income (loss) attributable to stockholders
|
$
|
(5,027
|
)
|
$
|
75
|
|||
Net
income (loss) per common share:
|
||||||||
Basic
|
$
|
(0.36
|
)
|
$
|
0.00
|
|||
Diluted
|
(0.36
|
)
|
0.00
|
|||||
Weighted
average shares outstanding:
|
||||||||
Basic
|
13,826,052
|
17,826,052
|
||||||
Diluted
|
13,826,052
|
17,826,052
|
||||||
Quarter
Ended September 30,
|
||||||||
2008
|
2009
|
|||||||
Net
cash provided (used) by operating activities (Note 9)
|
$
|
507
|
$
|
7,465
|
||||
Cash
flows from investing activities:
|
||||||||
Proceeds
from sales of property, plant and equipment
|
26
|
30
|
||||||
Business
acquisitions, net of cash acquired
|
(1,028
|
)
|
—
|
|||||
Purchases
of property, plant and equipment
|
(1,105
|
)
|
(329
|
)
|
||||
Purchases
of lease fleet
|
(5,014
|
)
|
(2,280
|
)
|
||||
Net
cash used by investing activities
|
(7,121
|
)
|
(2,579
|
)
|
||||
Cash
flows from financing activities:
|
||||||||
Proceeds
(repayments) on capital leasing activities
|
450
|
(243
|
)
|
|||||
Proceeds
from (repayments of) long-term borrowings
|
26,128
|
(7,869
|
)
|
|||||
Cumulative
dividends paid
|
—
|
(41
|
)
|
|||||
Net
cash provided (used) by financing activities
|
26,578
|
(8,153
|
)
|
|||||
Net
increase (decrease) in cash
|
19,964
|
(3,267
|
)
|
|||||
Cash
and equivalents at beginning of period
|
2,772
|
3,346
|
||||||
The
effect of foreign currency translation on cash
|
(485
|
)
|
(50
|
)
|
||||
Cash
and equivalents at end of period
|
$
|
22,251
|
$
|
29
|
October
1, 2008
|
||||
Fair
value of the net tangible assets acquired and liabilities
assumed:
|
||||
Cash
and cash equivalents
|
$
|
1,517
|
||
Trade
and other receivables
|
15,035
|
|||
Inventories
|
10,145
|
|||
Prepaid
expenses
|
398
|
|||
Property,
plant and equipment
|
3,473
|
|||
Lease
fleet
|
108,134
|
|||
Other
assets
|
—
|
|||
Trade
payables and accrued liabilities
|
(12,880
|
)
|
||
Unearned
revenue and advance payments
|
(7,414
|
)
|
||
Long-term
debt
|
(107,600
|
)
|
||
Deferred
income taxes
|
(17,405
|
)
|
||
Total
net tangible assets acquired and liabilities assumed
|
(6,597
|
)
|
||
Fair
value of intangible assets acquired:
|
||||
Customer
base
|
4,850
|
|||
Trade
name
|
2,200
|
|||
Deferred
financing costs
|
191
|
|||
Goodwill
|
46,794
|
|||
Total
intangible assets acquired
|
54,035
|
|||
Total
purchase consideration
|
$
|
47,438
|
Quarter
Ended
|
||||
September
30,
|
||||
2008
|
||||
Revenues
|
$
|
54,295
|
||
Net
income (loss) attributable to stockholders
|
(3,786
|
)
|
||
Pro
forma net income (loss) per common share:
|
||||
Basic
|
$
|
(0.21
|
)
|
|
Diluted
|
(0.21
|
)
|
||
June
30, 2009
|
September
30, 2009
|
|||||||
(Unaudited)
|
||||||||
Finished
goods
|
$
|
21,170
|
$
|
19,962
|
||||
Work
in progress
|
1,341
|
142
|
||||||
$
|
22,511
|
$
|
20,104
|
Estimated
|
||||||||||||
Useful
Life
|
June
30, 2009
|
September
30, 2009
|
||||||||||
(Unaudited)
|
||||||||||||
Land
|
—
|
$
|
1,486
|
$
|
1,647
|
|||||||
Building
|
40
years
|
230
|
254
|
|||||||||
Transportation
and plant equipment (including capital lease assets)
|
3 –
10 years
|
9,010
|
10,427
|
|||||||||
Furniture,
fixtures and office equipment
|
3 –
10 years
|
3,017
|
2,450
|
|||||||||
13,743
|
14,778
|
|||||||||||
Less
accumulated depreciation and amortization
|
(3,283
|
)
|
(4,112
|
)
|
||||||||
$
|
10,460
|
$
|
10,666
|
|||||||||
Quarter
Ended September 30,
|
||||||||
2008
|
2009
|
|||||||
Basic
|
13,826,052
|
17,826,052
|
||||||
Assumed
exercise of warrants
|
—
|
—
|
||||||
Assumed
exercise of stock options
|
—
|
—
|
||||||
Diluted
|
13,826,052
|
17,826,052
|
Asset
Derivative - Fair Value (Level 2)
|
||||||||||||
June
30,
|
September
30,
|
|||||||||||
Type
of Derivative Contract
|
Balance
Sheet Classification
|
2009
|
2009
|
|||||||||
(Unaudited)
|
||||||||||||
Swap
Contracts and Options (Caps)
|
Trade
and other receivables
|
$
|
—
|
$
|
—
|
|||||||
Liability
Derivative - Fair Value (Level 2)
|
||||||||||||
June
30,
|
September
30,
|
|||||||||||
Type
of Derivative Contract
|
Balance
Sheet Classification
|
2009
|
2009
|
|||||||||
(Unaudited)
|
||||||||||||
Swap
Contracts and Options (Caps)
|
Trade
payables and accrued liabilities
|
$
|
1,587
|
$
|
1,360
|
|||||||
Forward
Contracts
|
Trade
payables and accrued liabilities
|
656
|
486
|
|||||||||
Quarter
Ended September 30,
|
||||||||||||
Type
of Derivative Contract
|
Statement
of Operations Classification
|
2008
|
2009
|
|||||||||
Swap
Contracts and Options (Caps)
|
Unrealized
gain (loss) included in interest expense
|
$
|
(1,536
|
)
|
$
|
141
|
||||||
Forward
Contracts
|
Foreign
currency exchange gain (loss) and other
|
1,291
|
209
|
|||||||||
Fair
Value as of
|
||||||||
Notional
Amount
|
September
30, 2009
|
|||||||
Swap
|
$
|
14,403
|
$
|
(712
|
)
|
|||
Swap
|
1,746
|
(135
|
)
|
|||||
Swap
|
4,402
|
(314
|
)
|
|||||
Swap
|
3,183
|
(278
|
)
|
|||||
Option
(Cap)
|
1,887
|
8
|
||||||
Option
(Cap)
|
1,364
|
1
|
||||||
Option
(Cap)
|
10,475
|
70
|
||||||
Total
|
$
|
37,460
|
$
|
(1,360
|
)
|
Weighted-
|
||||||||||||
Weighted-
|
Average
|
|||||||||||
Number
of
|
Average
|
Remaining
|
||||||||||
Options
|
Exercise
|
Contractual
|
||||||||||
(Shares)
|
Price
|
Term
(Years)
|
||||||||||
Outstanding
at June 30, 2009
|
1,358,000
|
$
|
7.39
|
|||||||||
Granted
|
—
|
—
|
||||||||||
Exercised
|
—
|
—
|
||||||||||
Forfeited
or expired
|
(139,540
|
)
|
6.10
|
|||||||||
Outstanding
at September 30, 2009
|
1,218,460
|
$
|
7.53
|
8.3
|
||||||||
Exercisable
at September 30, 2009
|
298,000
|
$
|
8.07
|
7.7
|
||||||||
July
2008
|
September
|
October
2008
|
December
|
January
|
||||||||||||||||||||||||||||
2006
Grant
|
2007
Grant
|
2008
Grant
|
Grant
|
2008
Grant
|
Grant
|
2008
Grant
|
2009
Grant
|
|||||||||||||||||||||||||
Fair
value of stock option
|
$
|
3.06
|
$
|
3.75
|
$
|
3.94
|
$
|
2.74
|
$
|
3.31
|
$
|
3.22
|
$
|
1.06
|
$
|
1.20
|
||||||||||||||||
Assumptions
used:
|
||||||||||||||||||||||||||||||||
Risk-free
interest rate
|
4.8
|
%
|
3.27
|
%
|
3.01
|
%
|
3.77
|
%
|
3.08
|
%
|
3.29
|
%
|
1.99
|
%
|
1.99
|
%
|
||||||||||||||||
Expected
life (in years)
|
7.5
|
7.5
|
7.5
|
7.5
|
7.5
|
7.5
|
7.5
|
7.5
|
||||||||||||||||||||||||
Expected
volatility
|
26.5
|
%
|
31.1
|
%
|
35.8
|
%
|
41.8
|
%
|
43.1
|
%
|
41.8
|
%
|
57.1
|
%
|
59.9
|
%
|
||||||||||||||||
Expected
dividends
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Quarter
Ended September 30,
|
||||||||
2008
|
2009
|
|||||||
Cash
flows from operating activities
|
||||||||
Net
income (loss)
|
$
|
(6,668
|
)
|
$
|
648
|
|||
Adjustments
to reconcile net income (loss) to cash flows from operating
activities:
|
||||||||
Gain
on sales and disposals of property, plant and equipment
|
(8
|
)
|
—
|
|||||
Unrealized
foreign exchange loss (gain)
|
5,785
|
(2,250
|
)
|
|||||
Unrealized
loss (gain) on forward exchange contracts
|
(1,291
|
)
|
(209
|
)
|
||||
Unrealized
loss (gain) on interest rate swaps and options
|
1,536
|
(141
|
)
|
|||||
Depreciation
and amortization
|
3,383
|
5,257
|
||||||
Amortization
of deferred financing costs
|
59
|
81
|
||||||
Accretion
of interest
|
60
|
60
|
||||||
Share-based
compensation expense
|
210
|
246
|
||||||
Contributed
services
|
73
|
—
|
||||||
Deferred
income taxes
|
(3,778
|
)
|
333
|
|||||
Changes
in operating assets and liabilities:
|
||||||||
Trade
and other receivables, net
|
(5,656
|
)
|
6,636
|
|||||
Inventories
|
(5,111
|
)
|
3,419
|
|||||
Prepaid
expenses and other
|
(540
|
)
|
(1,579
|
)
|
||||
Trade
payables, accrued liabilities and other deferred credits
|
12,545
|
(5,166
|
)
|
|||||
Income
taxes payable
|
(92
|
)
|
130
|
|||||
Net
cash provided (used) by operating activities
|
$
|
507
|
$
|
7,465
|
Quarter
Ended September 30,
|
||||||||
2008
|
2009
|
|||||||
Net
income (loss) attributable to stockholders
|
$
|
(5,027
|
)
|
$
|
75
|
|||
Other
comprehensive income (loss) — cumulative translation
adjustment
|
(9,526
|
)
|
4,060
|
|||||
Comprehensive
income (loss)
|
$
|
(14,553
|
)
|
$
|
4,135
|
Quarter
Ended September 30,
|
||||||||
Revenues
from external customers:
|
2008
|
2009
|
||||||
North
America:
|
||||||||
Sales
|
$
|
—
|
$
|
4,474
|
||||
Leasing
|
—
|
9,953
|
||||||
—
|
14,427
|
|||||||
Asia-Pacific:
|
||||||||
Sales
|
20,995
|
12,139
|
||||||
Leasing
|
10,658
|
8,653
|
||||||
31,653
|
20,792
|
|||||||
Total
revenues
|
$
|
31,653
|
$
|
35,219
|
|
||||||||
Long-lived
assets:
|
June
30, 2009
|
September
30, 2009
|
||||||
(Unaudited)
|
||||||||
North
America
|
$
|
112,419
|
$
|
112,296
|
||||
Asia-Pacific
|
86,956
|
93,932
|
||||||
Total
long-lived assets
|
$
|
199,375
|
$
|
206,228
|
||||
Quarter
Ended September 30,
|
||||||||
Operating
income:
|
2008
|
2009
|
||||||
North
America
|
$
|
(535
|
)
|
$
|
1,771
|
|||
Asia-Pacific
|
2,262
|
304
|
||||||
Total
operating income
|
$
|
1,727
|
$
|
2,075
|
||||
Report
of Independent Registered Public Accounting Firm (Crowe Horwath
LLP)
|
F-2
|
|||
Report
of Independent Registered Public Accounting Firm (Grobstein, Horwath &
Company LLP)
|
F-3
|
|||
Consolidated
Balance Sheets as of June 30, 2008 and 2009
(Successor)
|
F-4
|
|||
Consolidated
Statements of Operations for the year ended June 30, 2007
(Predecessor), for the period from July 1 to September 13, 2007
(Predecessor) and for the years ended June 30, 2008 and 2009
(Successor)
|
F-5
|
|||
Consolidated
Statement of Stockholders’ Equity and Comprehensive Income for the period
from October 14, 2005 (inception) to June 30, 2007, and for
the years ended June 30, 2008 and 2009 (Successor)
|
F-6
|
|||
Consolidated
Statements of Cash Flows for the year ended June 30, 2007
(Predecessor), for the period from July 1 to September 13, 2007
(Predecessor) and for the years ended June 30, 2008 and 2009
(Successor)
|
F-7
|
|||
Notes
to Consolidated Financial Statements
|
F-9
|
|||
Successor
(Note 1)
|
||||||||
June
30,
|
||||||||
2008
|
2009
|
|||||||
Assets
|
||||||||
Cash
and cash equivalents
|
$
|
2,772
|
$
|
3,346
|
||||
Trade
and other receivables, net of allowance for doubtful accounts of $485 and
$2,092 at June 30, 2008 and 2009, respectively
|
18,327
|
26,432
|
||||||
Inventories
|
21,084
|
22,511
|
||||||
Prepaid
expenses
|
2,094
|
1,883
|
||||||
Total
current assets
|
44,277
|
54,172
|
||||||
Lease
receivables
|
1,589
|
1,163
|
||||||
Property,
plant and equipment, net
|
7,503
|
10,460
|
||||||
Lease
fleet, net
|
87,748
|
188,915
|
||||||
Goodwill
|
31,721
|
73,917
|
||||||
Intangible
assets, net
|
34,698
|
30,058
|
||||||
Other
assets
|
325
|
11
|
||||||
Total
non-current assets
|
163,584
|
304,524
|
||||||
Total
assets
|
$
|
207,861
|
$
|
358,696
|
||||
Current
liabilities
|
||||||||
Trade
payables and accrued liabilities
|
$
|
18,504
|
$
|
24,422
|
||||
Current
portion of long-term debt and obligations
|
3,223
|
16,371
|
||||||
Unearned
revenue and advance payments
|
2,930
|
8,461
|
||||||
Income
taxes payable
|
705
|
—
|
||||||
Total
current liabilities
|
25,362
|
49,254
|
||||||
Non-current
liabilities
|
||||||||
Long-term
debt and obligations, net of current portion
|
78,029
|
183,933
|
||||||
Deferred
tax liabilities
|
1,462
|
13,822
|
||||||
Employee
benefits and other non-current liabilities
|
227
|
235
|
||||||
Total
non-current liabilities
|
79,718
|
197,990
|
||||||
Commitments
and contingencies (Note 10)
|
—
|
—
|
||||||
Noncontrolling
interest (Note 14)
|
9,050
|
8,278
|
||||||
Stockholders’
equity
|
||||||||
Cumulative
preferred stock, $.0001 par value: 1,000,000 shares authorized; 25,000
shares issued and outstanding (in series) at June 30, 2009 and stated
at liquidation value ($1,386 total liquidation preference)
|
—
|
1,345
|
||||||
Common
stock, $.0001 par value: 100,000,000 shares authorized; 13,826,052 and
17,826,052 shares outstanding at June 30, 2008 and 2009,
respectively
|
1
|
2
|
||||||
Additional
paid-in capital
|
81,688
|
105,314
|
||||||
Accumulated
other comprehensive income (loss)
|
6,787
|
(4,963
|
)
|
|||||
Retained
earnings
|
5,255
|
1,476
|
||||||
Total
stockholders’ equity
|
93,731
|
103,174
|
||||||
Total
liabilities and stockholders’ equity
|
$
|
207,861
|
$
|
358,696
|
Predecessor
|
Successor
(Note 1)
|
||||||||||||||||
Period
from
|
|||||||||||||||||
Year
Ended
|
July
1 to
|
||||||||||||||||
June
30,
|
September
13,
|
Year
Ended June 30,
|
|||||||||||||||
2007
|
2007
|
2008
|
2009
|
||||||||||||||
Revenues
|
|||||||||||||||||
Sales
|
$
|
52,929
|
$
|
10,944
|
$
|
68,029
|
$
|
75,528
|
|||||||||
Leasing
|
21,483
|
4,915
|
27,547
|
70,932
|
|||||||||||||
74,412
|
15,859
|
95,576
|
146,460
|
||||||||||||||
Costs
and expenses
|
|||||||||||||||||
Cost
of sales
|
46,402
|
9,466
|
57,675
|
64,317
|
|||||||||||||
Leasing,
selling and general expenses
|
20,761
|
4,210
|
22,161
|
51,040
|
|||||||||||||
Depreciation
and amortization
|
2,577
|
653
|
7,367
|
17,045
|
|||||||||||||
Operating
income
|
4,672
|
1,530
|
8,373
|
14,058
|
|||||||||||||
Interest
income
|
413
|
14
|
1,289
|
296
|
|||||||||||||
Interest
expense
|
(4,378
|
)
|
(947
|
)
|
(6,888
|
)
|
(16,161
|
)
|
|||||||||
Foreign
currency exchange gain (loss) and other
|
95
|
(129
|
)
|
3,814
|
(9,312
|
)
|
|||||||||||
(3,870
|
)
|
(1,062
|
)
|
(1,785
|
)
|
(25,177
|
)
|
||||||||||
Income
(loss) before provision for income taxes and noncontrolling
interest
|
802
|
468
|
6,588
|
(11,119
|
)
|
||||||||||||
Provision
(benefit) for income taxes
|
490
|
180
|
2,034
|
(4,374
|
)
|
||||||||||||
Net
income (loss)
|
312
|
288
|
4,554
|
(6,745
|
)
|
||||||||||||
Noncontrolling
interest (Note 14)
|
—
|
—
|
448
|
(3,028
|
)
|
||||||||||||
Net
income (loss) attributable to stockholders
|
$
|
312
|
$
|
288
|
$
|
4,106
|
$
|
(3,717
|
)
|
||||||||
Net
income (loss) per common share:
|
|||||||||||||||||
Basic
|
$
|
0.40
|
$
|
(0.22
|
)
|
||||||||||||
Diluted
|
0.39
|
(0.22
|
)
|
||||||||||||||
Weighted
average shares outstanding:
|
|||||||||||||||||
Basic
|
10,160,955
|
16,817,833
|
|||||||||||||||
Diluted
|
10,485,397
|
16,817,833
|
Successor
(Note 1)
|
||||||||||||||||||||||||||||||||||
Cumulative
|
Additional
|
Other
|
Total
|
|||||||||||||||||||||||||||||||
Preferred
Stock
|
Common
Stock
|
Paid-In
|
Comprehensive
|
Retained
|
Stockholders’
|
|||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Income
(Loss)
|
Earnings
|
Equity
|
|||||||||||||||||||||||||||
Balance
at October 14, 2005 (inception)
|
—
|
$
|
—
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||||||||||
Sale
of common stock to initial stockholder on October 14,
2005
|
—
|
—
|
1,875,000
|
—
|
250
|
—
|
—
|
250
|
||||||||||||||||||||||||||
Sale
of warrants on April 10, 2006
|
—
|
—
|
—
|
—
|
700
|
—
|
—
|
700
|
||||||||||||||||||||||||||
Sale
of 7,500 units and underwriters’ purchase option, net of underwriters’
discount and offering expenses on April 10, 2006
|
—
|
—
|
7,500,000
|
1
|
55,255
|
—
|
—
|
55,256
|
||||||||||||||||||||||||||
Sale
of 1,125 units for over-allotment on April 13, 2006
|
—
|
—
|
1,125,000
|
—
|
8,320
|
—
|
—
|
8,320
|
||||||||||||||||||||||||||
Common
stock subject to possible conversion
|
—
|
—
|
—
|
—
|
(12,858
|
)
|
—
|
—
|
(12,858
|
)
|
||||||||||||||||||||||||
Share-based
compensation during the development stag
|
—
|
—
|
—
|
—
|
110
|
—
|
—
|
110
|
||||||||||||||||||||||||||
Net
income attributable to stockholders
|
—
|
—
|
—
|
—
|
—
|
—
|
1,149
|
1,149
|
||||||||||||||||||||||||||
Balance
at June 30, 2007
|
—
|
—
|
10,500,000
|
1
|
51,777
|
—
|
1,149
|
52,927
|
||||||||||||||||||||||||||
Reversal
of common stock subject to possible conversion
|
—
|
—
|
—
|
—
|
12,858
|
—
|
—
|
12,858
|
||||||||||||||||||||||||||
Conversion
of common stock into cash
|
—
|
—
|
(809,901
|
)
|
—
|
(6,042
|
)
|
—
|
—
|
(6,042
|
)
|
|||||||||||||||||||||||
Issuance
of warrant to secured subordinated promissory note holder
|
—
|
—
|
—
|
—
|
1,309
|
—
|
—
|
1,309
|
||||||||||||||||||||||||||
Exercise
of warrants
|
—
|
—
|
4,135,953
|
—
|
21,044
|
—
|
—
|
21,044
|
||||||||||||||||||||||||||
Share-based
compensation
|
—
|
—
|
—
|
—
|
509
|
—
|
—
|
509
|
||||||||||||||||||||||||||
Contributed
services
|
—
|
—
|
—
|
—
|
233
|
—
|
—
|
233
|
||||||||||||||||||||||||||
Net
income attributable to stockholders
|
—
|
—
|
—
|
—
|
—
|
—
|
4,106
|
4,106
|
||||||||||||||||||||||||||
Cumulative
translation adjustment
|
—
|
—
|
—
|
—
|
—
|
6,787
|
—
|
6,787
|
||||||||||||||||||||||||||
Total
comprehensive income
|
10,893
|
|||||||||||||||||||||||||||||||||
Balance
at June 30, 2008
|
—
|
—
|
13,826,052
|
1
|
81,688
|
6,787
|
5,255
|
93,731
|
||||||||||||||||||||||||||
Issuance
of common stock
|
—
|
—
|
4,000,000
|
1
|
25,599
|
—
|
—
|
25,600
|
||||||||||||||||||||||||||
Issuance
of preferred stock
|
25,000
|
1,345
|
—
|
—
|
(9
|
)
|
—
|
—
|
1,336
|
|||||||||||||||||||||||||
Share-based
compensation
|
—
|
—
|
—
|
—
|
902
|
—
|
—
|
902
|
||||||||||||||||||||||||||
Contributed
services
|
—
|
—
|
—
|
—
|
130
|
—
|
—
|
130
|
||||||||||||||||||||||||||
Adjustment
of redemption value of noncontrolling interest put option
|
—
|
—
|
—
|
—
|
(2,996
|
)
|
—
|
—
|
(2,996
|
)
|
||||||||||||||||||||||||
Cumulative
dividends paid
|
—
|
—
|
—
|
—
|
—
|
—
|
(62
|
)
|
(62
|
)
|
||||||||||||||||||||||||
Net
loss attributable to stockholders
|
—
|
—
|
—
|
—
|
—
|
—
|
(3,717
|
)
|
(3,717
|
)
|
||||||||||||||||||||||||
Cumulative
translation adjustment
|
—
|
—
|
—
|
—
|
—
|
(11,750
|
)
|
—
|
(11,750
|
)
|
||||||||||||||||||||||||
Total
comprehensive loss
|
(15,467
|
)
|
||||||||||||||||||||||||||||||||
Balance
at June 30, 2009
|
25,000
|
$
|
1,345
|
17,826,052
|
$
|
2
|
$
|
105,314
|
$
|
(4,963
|
)
|
$
|
1,476
|
$
|
103,174
|
Predecessor
|
Successor
(Note 1)
|
|||||||||||||||
Period
from
|
||||||||||||||||
Year
Ended
|
July
1 to
|
|||||||||||||||
June
30,
|
September
13,
|
Year
Ended June 30,
|
||||||||||||||
2007
|
2007
|
2008
|
2009
|
|||||||||||||
Cash
flows from operating activities
|
||||||||||||||||
Net
income (loss)
|
$
|
312
|
$
|
288
|
$
|
4,554
|
$
|
(6,745
|
)
|
|||||||
Adjustments
to reconcile net income (loss) to cash flows from operating
activities:
|
||||||||||||||||
Loss
(gain) on sales and disposals of property, plant and
equipment
|
(23
|
)
|
11
|
71
|
7
|
|||||||||||
Unrealized
foreign exchange loss (gain)
|
(134
|
)
|
58
|
(4,246
|
)
|
6,616
|
||||||||||
Unrealized
loss (gain) on forward exchange contracts
|
40
|
72
|
34
|
(157
|
)
|
|||||||||||
Unrealized
loss (gain) on interest rate swaps and options
|
(174
|
)
|
90
|
(377
|
)
|
2,057
|
||||||||||
Depreciation
and amortization
|
2,577
|
653
|
7,367
|
17,045
|
||||||||||||
Amortization
of deferred financing costs
|
—
|
—
|
216
|
256
|
||||||||||||
Accretion
of interest
|
340
|
32
|
189
|
240
|
||||||||||||
Share-based
compensation expense
|
336
|
—
|
509
|
902
|
||||||||||||
Contributed
services
|
—
|
—
|
233
|
130
|
||||||||||||
Interest
deferred for common stock subject to possible conversion, net of income
tax effect
|
—
|
—
|
(226
|
)
|
—
|
|||||||||||
Deferred
income taxes
|
489
|
180
|
1,492
|
(4,198
|
)
|
|||||||||||
Changes
in operating assets and liabilities:
|
||||||||||||||||
Trade
and other receivables, net
|
(5,017
|
)
|
1,090
|
(1,321
|
)
|
5,659
|
||||||||||
Inventories
|
12,017
|
(3,822
|
)
|
(7,162
|
)
|
3,525
|
||||||||||
Prepaid
expenses and other
|
12
|
—
|
1,776
|
442
|
||||||||||||
Trade
payables, accrued liabilities and other deferred credits
|
(1,869
|
)
|
5,642
|
5,244
|
(2,125
|
)
|
||||||||||
Income
taxes payable
|
50
|
—
|
(337
|
)
|
(322
|
)
|
||||||||||
Net
cash provided by operating activities
|
8,956
|
4,294
|
8,016
|
23,332
|
||||||||||||
Cash
flows from investing activities:
|
||||||||||||||||
Proceeds
from sales of property, plant and equipment
|
101
|
28
|
16
|
134
|
||||||||||||
Business
acquisitions, net of cash acquired
|
(303
|
)
|
—
|
(110,872
|
)
|
(20,989
|
)
|
|||||||||
Purchases
of property, plant and equipment
|
(845
|
)
|
—
|
(678
|
)
|
(3,531
|
)
|
|||||||||
Purchases
of lease fleet
|
(20,350
|
)
|
(3,106
|
)
|
(8,560
|
)
|
(14,300
|
)
|
||||||||
Purchases
of intangible assets
|
(66
|
)
|
—
|
(390
|
)
|
(107
|
)
|
|||||||||
Payment
of deferred purchase consideration
|
(451
|
)
|
—
|
—
|
—
|
|||||||||||
Net
cash used by investing activities
|
(21,914
|
)
|
(3,078
|
)
|
(120,484
|
)
|
(38,793
|
)
|
||||||||
Cash
flows from financing activities:
|
||||||||||||||||
Proceeds
(repayments) on capital leasing activities
|
(718
|
)
|
(7,921
|
)
|
(641
|
)
|
241
|
|||||||||
Proceeds
from long-term borrowings
|
5,361
|
1,124
|
25,447
|
16,416
|
||||||||||||
Proceeds
from issuances of capital
|
8,746
|
4,990
|
21,044
|
1,236
|
||||||||||||
Cumulative
dividends paid
|
—
|
—
|
—
|
(62
|
)
|
|||||||||||
Payments
to converting stockholders, net
|
—
|
—
|
(6,426
|
)
|
—
|
|||||||||||
Noncontrolling
interest capital contributions
|
—
|
—
|
8,278
|
—
|
||||||||||||
Repayment
of borrowings from related party
|
—
|
—
|
(2,350
|
)
|
—
|
|||||||||||
Net
cash provided (used) by financing activities
|
13,389
|
(1,807
|
)
|
45,352
|
17,831
|
|||||||||||
Net
increase (decrease) in cash
|
431
|
(591
|
)
|
(67,116
|
)
|
2,370
|
||||||||||
Cash
and equivalents at beginning of period
|
567
|
886
|
68,277
|
2,772
|
||||||||||||
The
effect of foreign currency translation on cash
|
(112
|
)
|
(5
|
)
|
1,611
|
(1,796
|
)
|
|||||||||
Cash
and equivalents at end of period
|
$
|
886
|
$
|
290
|
$
|
2,772
|
$
|
3,346
|
||||||||
Supplemental
disclosure of cash flow information:
|
||||||||||||||||
Cash
paid during the period:
|
||||||||||||||||
Interest
|
$
|
1,497
|
$
|
494
|
$
|
6,199
|
$
|
13,417
|
||||||||
Income
taxes
|
—
|
—
|
218
|
536
|
September
13, 2007
|
||||
Fair
value of the net tangible assets acquired and liabilities
assumed:
|
||||
Cash
and cash equivalents
|
$
|
290
|
||
Trade
and other receivables
|
11,212
|
|||
Inventories
|
9,224
|
|||
Lease
receivables
|
2,008
|
|||
Property,
plant and equipment
|
4,346
|
|||
Lease
fleet
|
51,362
|
|||
Trade
payables and accrued liabilities
|
(18,705
|
)
|
||
Long-term
debt and obligations
|
(37,028
|
)
|
||
Total
net tangible assets acquired and liabilities assumed
|
22,709
|
|||
Fair
value of intangible assets acquired:
|
||||
Customer
lists
|
21,722
|
|||
Non-compete
agreement
|
3,139
|
|||
Software
and other (including deferred financing costs of $1,187)
|
1,521
|
|||
Goodwill
|
23,057
|
|||
Total
intangible assets acquired
|
49,439
|
|||
Total
purchase consideration
|
$
|
72,148
|
October
1, 2008
|
||||
Fair
value of the net tangible assets acquired and liabilities
assumed:
|
||||
Cash
and cash equivalents
|
$
|
1,517
|
||
Trade
and other receivables
|
15,035
|
|||
Inventories
|
10,145
|
|||
Prepaid
expenses
|
398
|
|||
Property,
plant and equipment
|
3,473
|
|||
Lease
fleet
|
108,134
|
|||
Other
assets
|
—
|
|||
Trade
payables and accrued liabilities
|
(12,975
|
)
|
||
Unearned
revenue and advance payments
|
(7,414
|
)
|
||
Long-term
debt
|
(107,600
|
)
|
||
Deferred
income taxes
|
(17,405
|
)
|
||
Total
net tangible assets acquired and liabilities assumed
|
(6,692
|
)
|
||
Fair
value of intangible assets acquired:
|
||||
Customer
base
|
4,850
|
|||
Trade
name
|
2,200
|
|||
Deferred
financing costs
|
191
|
|||
Goodwill
|
46,889
|
|||
Total
intangible assets acquired
|
54,130
|
|||
Total
purchase consideration
|
$
|
47,438
|
Year
Ended June 30,
|
||||||||
2008
|
2009
|
|||||||
(Unaudited)
|
||||||||
Revenues
|
$
|
166,400
|
$
|
169,102
|
||||
Net
income (loss) attributable to stockholders
|
7,006
|
(2,937
|
)
|
|||||
Pro
forma net income (loss) per common share:
|
||||||||
Basic
|
$
|
0.39
|
$
|
(0.17
|
)
|
|||
Diluted
|
0.39
|
(0.17
|
)
|
June
30,
|
||||||||
2008
|
2009
|
|||||||
Finished
goods
|
$
|
18,795
|
$
|
21,170
|
||||
Work
in progress
|
2,289
|
1,341
|
||||||
$
|
21,084
|
$
|
22,511
|
Estimated
|
June
30,
|
|||||||||||
Useful
Life
|
2008
|
2009
|
||||||||||
Land
|
—
|
$
|
1,749
|
$
|
1,486
|
|||||||
Building
|
40
years
|
271
|
230
|
|||||||||
Transportation
and plant equipment (including capital lease assets)
|
3 —
10 years
|
5,489
|
9,010
|
|||||||||
Furniture,
fixtures and office equipment
|
3 —
10 years
|
893
|
3,017
|
|||||||||
8,402
|
13,743
|
|||||||||||
Less
accumulated depreciation and amortization
|
(899
|
)
|
(3,283
|
)
|
||||||||
$
|
7,503
|
$
|
10,460
|
|||||||||
June
30,
|
||||||||
2008
|
2009
|
|||||||
Beginning
of year
|
$
|
—
|
$
|
31,721
|
||||
Acquired
goodwill (including foreign translation effect)
|
31,721
|
42,196
|
||||||
End
of year
|
$
|
31,721
|
$
|
73,917
|
||||
June
30,
|
||||||||
2008
|
2009
|
|||||||
Trademark
and trade name
|
$
|
740
|
$
|
2,940
|
||||
Customer
base and lists
|
29,364
|
29,485
|
||||||
Non-compete
agreements
|
6,218
|
5,633
|
||||||
Deferred
financing costs
|
1,947
|
2,019
|
||||||
Other
|
733
|
713
|
||||||
39,002
|
40,790
|
|||||||
Less
accumulated amortization
|
(4,304
|
)
|
(10,732
|
)
|
||||
$
|
34,698
|
$
|
30,058
|
Year
Ending June 30,
|
||||
2010
|
$
|
5,724
|
||
2011
|
4,903
|
|||
2012
|
4,537
|
|||
2013
|
3,859
|
|||
2014
|
1,847
|
|||
Thereafter
|
6,248
|
|||
$
|
27,118
|
Year
Ended June 30,
|
||||||||
2008
|
2009
|
|||||||
Basic
|
10,160,955
|
16,817,833
|
||||||
Assumed
exercise of warrants
|
324,442
|
—
|
||||||
Assumed
exercise of stock options
|
—
|
—
|
||||||
Diluted
|
10,485,397
|
16,817,833
|
GE
SeaCo
|
RWNZ
|
|||||||||||
November
14, 2007
|
April
30, 2008
|
Other
Acquisitions
|
||||||||||
Fair
value of the net tangible assets acquired and liabilities
assumed:
|
||||||||||||
Cash
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||
Trade
and other receivables
|
—
|
5,224
|
—
|
|||||||||
Inventories
(primarily containers)
|
1,746
|
1,705
|
—
|
|||||||||
Property,
plant and equipment
|
28
|
2,488
|
151
|
|||||||||
Container
for lease fleet
|
9,952
|
9,476
|
1,805
|
|||||||||
Trade
and other payables
|
(229
|
)
|
(2,403
|
)
|
—
|
|||||||
Long-term
debt and obligations
|
—
|
(4,777
|
)
|
—
|
||||||||
Total
net tangible assets acquired and liabilities assumed
|
11,497
|
11,713
|
1,956
|
|||||||||
Fair
value of intangible assets acquired:
|
||||||||||||
Non-compete
agreement
|
1,999
|
—
|
473
|
|||||||||
Customer
lists
|
—
|
4,289
|
—
|
|||||||||
Trademark
|
—
|
740
|
—
|
|||||||||
Deferred
financing costs
|
84
|
223
|
—
|
|||||||||
Goodwill
|
4,270
|
—
|
1,770
|
|||||||||
Total
intangible assets acquired
|
6,353
|
5,252
|
2,243
|
|||||||||
Total
purchase consideration
|
$
|
17,850
|
$
|
16,965
|
$
|
4,199
|
||||||
Year
Ending June 30,
|
||||
2010
|
$
|
16,371
|
||
2011
|
14,996
|
|||
2012
|
326
|
|||
2013
|
168,424
|
|||
2014
|
104
|
|||
Thereafter
|
—
|
|||
$
|
200,221
|
Minimum
|
||||||||||||
Year
Ending June 30,
|
lease
payments
|
Interest
|
Principal
|
|||||||||
2010
|
$
|
68
|
$
|
5
|
$
|
63
|
||||||
2011
— 2014
|
23
|
3
|
20
|
|||||||||
More
than five years
|
—
|
—
|
—
|
|||||||||
$
|
91
|
$
|
8
|
$
|
83
|
|||||||
Asset
Derivative - Fair Value
|
||||||||||
June
30,
|
||||||||||
Type
of Derivative Contract
|
Balance
Sheet Classification
|
2008
|
2009
|
|||||||
Swap
Contracts and Options (Caps)
|
Trade
and other receivables
|
$
|
680
|
$
|
—
|
|||||
Liability
Derivative - Fair Value
|
||||||||||
June
30,
|
||||||||||
Type
of Derivative Contract
|
Balance
Sheet Classification
|
2008
|
2009
|
|||||||
Swap
Contracts and Options (Caps)
|
Trade
payables and accrued liabilities
|
$
|
—
|
$
|
1,587
|
|||||
Forward
Contracts
|
Trade
payables and accrued liabilities
|
575
|
656
|
|||||||
Year
Ended June 30,
|
||||||||||
Type
of Derivative Contract
|
Statement
of Operations Classification
|
2008
|
2009
|
|||||||
Swap
Contracts and Options (Caps)
|
Unrealized
gain (loss) included in interest expense
|
$
|
377
|
$
|
(2,057
|
)
|
||||
Forward
Contracts
|
Foreign
currency exchange gain (loss) and other
|
(34
|
)
|
157
|
||||||
Fair
Value as of
|
||||||||
Notional
Amount
|
June
30, 2009
|
|||||||
Swap
|
$
|
13,279
|
$
|
(892
|
)
|
|||
Swap
|
1,610
|
(157
|
)
|
|||||
Swap
|
4,059
|
(369
|
)
|
|||||
Swap
|
2,873
|
(245
|
)
|
|||||
Option
(Cap)
|
9,658
|
68
|
||||||
Option
(Cap)
|
1,231
|
1
|
||||||
Option
(Cap)
|
1,739
|
7
|
||||||
Total
|
$
|
34,449
|
$
|
(1,587
|
)
|
Predecessor
|
Successor
|
||||||||||||||||
Period
from
|
|||||||||||||||||
Year
Ended
|
July
1 to
|
||||||||||||||||
June
30,
|
September
13,
|
Year
Ended June 30,
|
|||||||||||||||
2007
|
2007
|
2008
|
2009
|
||||||||||||||
U.S.
|
$
|
—
|
$
|
—
|
$
|
(1,504
|
)
|
$
|
1,942
|
||||||||
Asia-Pacific
|
802
|
468
|
8,092
|
(13,061
|
)
|
||||||||||||
$
|
802
|
$
|
468
|
$
|
6,588
|
$
|
(11,119
|
)
|
|||||||||
Predecessor
|
Successor
|
||||||||||||||||
Period
from
|
|||||||||||||||||
Year
Ended
|
July
1 to
|
||||||||||||||||
June
30,
|
September
13,
|
Year Ended June
30,
|
|||||||||||||||
2007
|
2007
|
2008
|
2009
|
||||||||||||||
Current:
|
|||||||||||||||||
U.S.
Federal
|
$
|
—
|
$
|
—
|
$
|
377
|
$
|
—
|
|||||||||
State
|
—
|
—
|
7
|
—
|
|||||||||||||
Asia-Pacific
|
9
|
—
|
25
|
—
|
|||||||||||||
9
|
—
|
409
|
—
|
||||||||||||||
Deferred:
|
|||||||||||||||||
U.S.
Federal
|
—
|
—
|
(1,671
|
)
|
(1,172
|
)
|
|||||||||||
State
|
—
|
—
|
1
|
(739
|
)
|
||||||||||||
Asia-Pacific
|
481
|
180
|
3,295
|
(2,463
|
)
|
||||||||||||
481
|
180
|
1,625
|
(4,374
|
)
|
|||||||||||||
$
|
490
|
$
|
180
|
$
|
2,034
|
$
|
(4,374
|
)
|
June
30,
|
||||||||
2008
|
2009
|
|||||||
Deferred
tax assets:
|
||||||||
Net
operating loss and tax credit carryforwards
|
$
|
5,252
|
$
|
14,308
|
||||
Deferred
revenue and expenses
|
657
|
137
|
||||||
Accrued
compensation and other benefits
|
443
|
204
|
||||||
Allowance
for doubtful accounts
|
227
|
670
|
||||||
Other
|
—
|
—
|
||||||
Total
deferred tax assets
|
6,579
|
15,319
|
||||||
Valuation
allowance
|
—
|
—
|
||||||
Net
deferred tax assets
|
6,579
|
15,319
|
||||||
Deferred
tax liabilities:
|
||||||||
Accelerated
tax depreciation and amortization
|
(4,255
|
)
|
(28,810
|
)
|
||||
Unrealized
exchange gains and losses
|
(3,715
|
)
|
946
|
|||||
Other
|
(71
|
)
|
(1,277
|
)
|
||||
Total
deferred tax liabilities
|
(8,041
|
)
|
(29,141
|
)
|
||||
Net
deferred tax liabilities
|
$
|
(1,462
|
)
|
$
|
(13,822
|
)
|
Predecessor
|
Successor
|
||||||||||||||||
Period
from
|
|||||||||||||||||
Year
Ended
|
July
1 to
|
||||||||||||||||
June
30,
|
September
13,
|
Year
Ended June 30,
|
|||||||||||||||
2007
|
2007
|
2008
|
2009
|
||||||||||||||
Federal
statutory rate
|
30.0
|
%
|
30.0
|
%
|
34.0
|
%
|
(34.0
|
)%
|
|||||||||
State
and Asia-Pacific taxes, net of U.S. federal benefit and
credit
|
—
|
—
|
0.1
|
(4.4
|
)
|
||||||||||||
Amortization
of goodwill and trademark
|
—
|
—
|
(7.4
|
)
|
(4.8
|
)
|
|||||||||||
Nondeductible
expenses
|
31.1
|
8.5
|
4.2
|
3.9
|
|||||||||||||
Effective
tax rate
|
61.1
|
%
|
38.5
|
%
|
30.9
|
%
|
39.3
|
%
|
|||||||||
Year
Ending June 30,
|
||||
2010
|
$
|
3,579
|
||
2011
|
2,308
|
|||
2012
|
1,375
|
|||
2013
|
875
|
|||
2014
|
443
|
|||
Thereafter
|
1,281
|
|||
$
|
9,861
|
|||
Year
Ending June 30,
|
||||
2010
|
$
|
11,133
|
||
2011
|
2,089
|
|||
2012
|
697
|
|||
2013
|
182
|
|||
2014
|
59
|
|||
Thereafter
|
—
|
|||
$
|
14,160
|
|||
June
30,
|
||||||||
2008
|
2009
|
|||||||
Trade
payables
|
$
|
9,014
|
$
|
14,328
|
||||
Payroll
and related
|
3,043
|
2,564
|
||||||
Taxes,
other than income
|
1,456
|
1,488
|
||||||
Deferred
consideration
|
1,943
|
—
|
||||||
Fair
value of interest swap and option and forward currency exchange
contacts
|
575
|
2,246
|
||||||
Accrued
interest
|
—
|
1,599
|
||||||
Other
accruals
|
2,473
|
2,197
|
||||||
$
|
18,504
|
$
|
24,422
|
Predecessor
|
Successor
|
||||||||||||||||
Period
from
|
|||||||||||||||||
Year
Ended
|
July
1 to
|
||||||||||||||||
June
30,
|
September
13,
|
Year
Ended June 30,
|
|||||||||||||||
2007
|
2007
|
2008
|
2009
|
||||||||||||||
Revenues
from external customers:
|
|||||||||||||||||
North
America:
|
|||||||||||||||||
Sales
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
19,657
|
|||||||||
Leasing
|
—
|
—
|
—
|
34,781
|
|||||||||||||
—
|
—
|
—
|
54,438
|
||||||||||||||
Asia-Pacific:
|
|||||||||||||||||
Sales
|
52,929
|
10,944
|
68,029
|
55,871
|
|||||||||||||
Leasing
|
21,483
|
4,915
|
27,547
|
36,151
|
|||||||||||||
74,412
|
15,859
|
95,576
|
92,022
|
||||||||||||||
Total
revenues
|
$
|
74,412
|
$
|
15,859
|
$
|
95,576
|
$
|
146,460
|
|||||||||
June
30,
|
||||||||
2008
|
2009
|
|||||||
Long-lived
assets:
|
||||||||
North
America
|
$
|
74
|
$
|
112,419
|
||||
Asia-Pacific
|
95,177
|
86,956
|
||||||
Total
long-lived assets
|
$
|
95,251
|
$
|
199,375
|
Predecessor
|
Successor
|
||||||||||||||||
Period
from
|
|||||||||||||||||
Year
Ended
|
July
1 to
|
||||||||||||||||
June
30,
|
September
13,
|
Year
Ended June 30,
|
|||||||||||||||
2007
|
2007
|
2008
|
2009
|
||||||||||||||
Operating
income (loss):
|
|||||||||||||||||
North
America
|
$
|
—
|
$
|
—
|
$
|
(2,427
|
)
|
$
|
6,365
|
||||||||
Asia-Pacific
|
4,672
|
1,530
|
10,800
|
7,693
|
|||||||||||||
Total
operating income
|
$
|
4,672
|
$
|
1,530
|
$
|
8,373
|
$
|
14,058
|
|||||||||
Page
|
|||||
Mobile
Office Acquisition Corp. and Subsidiary
d/b/a
Pac-Van, Inc.
|
|||||
Independent
Auditors’ Report
|
S-2
|
||||
Consolidated
Balance Sheets – September 30, 2008 and December 31, 2007
|
S-3
|
||||
Consolidated
Statement of Income – Nine-Month Period Ended September 30,
2008
|
S-4
|
||||
Consolidated
Statement of Stockholders’ Equity – Nine-Month Period Ended September 30,
2008
|
S-5
|
||||
Consolidated
Statement of Cash Flows – Nine-Month Period Ended September 30,
2008
|
S-6
|
||||
Notes
to Consolidated Financial Statements
|
S-7
|
||||
Mobile
Office Acquisition Corp. and Subsidiary
d/b/a
Pac-Van, Inc.
|
|||||
Independent
Auditors’ Report
|
S-15
|
||||
Consolidated
Balance Sheets – December 31, 2007 and 2006
|
S-16
|
||||
Consolidated
Statements of Income – Year Ended December 31, 2007 and Period from August
2, 2006 to December 31, 2006
|
S-17
|
||||
Consolidated
Statements of Stockholders’ Equity – Year Ended December 31, 2007 and
Period from August 2, 2006 to December 31, 2006
|
S-18
|
||||
Consolidated
Statements of Cash Flows – Year Ended December 31, 2007 and Period from
August 2, 2006 to December 31, 2006
|
S-19
|
||||
Notes
to Consolidated Financial Statements
|
S-20
|
||||
Pac-Van,
Inc.
|
|||||
Independent
Auditors’ Report
|
S-27
|
||||
Balance
Sheets – August 1, 2006 and December 31, 2005
|
S-28
|
||||
Statements
of Income – Period from January 1, 2006 to August 1, 2006 and Year Ended
December 31, 2005
|
S-29
|
||||
Statements
of Stockholders’ Equity – Period from January 1, 2006 to August 1, 2006
and Year Ended December 31, 2005
|
S-30
|
||||
Statements
of Cash Flows – Period from January 1, 2006 to August 1, 2006 and Year
Ended December 31, 2005
|
S-31
|
||||
Notes
to Financial Statements
|
S-32
|
MOBILE
OFFICE ACQUISITION CORP. AND SUBSIDIARY
|
||||||||
d/b/a
PAC-VAN, INC.
|
||||||||
CONSOLIDATED
BALANCE SHEETS
|
||||||||
September
30, 2008 and December 31, 2007
|
||||||||
ASSETS
|
||||||||
2008
|
2007
|
|||||||
ASSETS
|
||||||||
Cash
|
$
|
61,495
|
$
|
53,325
|
||||
Accounts
receivable, net of allowances for doubtful accounts
|
||||||||
of
$1,396,000 in 2008 and $1,175,000 in 2007
|
15,488,357
|
11,845,950
|
||||||
Net
investment in sales-type leases
|
158,290
|
117,650
|
||||||
Rental
inventory, net
|
116,639,778
|
94,708,614
|
||||||
Note
receivable-related party
|
260,000
|
|||||||
Property
and equipment, net
|
2,299,592
|
2,048,374
|
||||||
Goodwill
|
39,414,543
|
39,161,675
|
||||||
Intangible
assets, net
|
2,062,887
|
2,663,219
|
||||||
Other
assets
|
281,487
|
202,114
|
||||||
TOTAL
ASSETS
|
$
|
176,406,429
|
$
|
151,060,921
|
||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
LIABILITIES
|
||||||||
Accounts
payable
|
$
|
7,383,591
|
$
|
4,903,664
|
||||
Accrued
liabilities
|
5,086,571
|
4,003,683
|
||||||
Unearned
revenue and advance payments
|
7,413,736
|
6,091,843
|
||||||
Senior
bank debt
|
82,500,000
|
67,600,000
|
||||||
Subordinated
note payable
|
25,000,000
|
24,303,977
|
||||||
Deferred
income taxes
|
16,992,052
|
14,815,956
|
||||||
Warrant
obligation
|
1,985,585
|
1,335,500
|
||||||
Total
Liabilities
|
146,361,535
|
123,054,623
|
||||||
STOCKHOLDERS'
EQUITY
|
||||||||
Common
stock, Class A, $0.001 par value; 300,000 shares
|
||||||||
authorized,
225,000 shares issued and outstanding
|
225
|
225
|
||||||
Common
stock, Class B, $0.001 par value; 50,000 shares
|
||||||||
authorized,
1,800 shares issued and outstanding
|
2
|
2
|
||||||
Additional
paid-in capital
|
22,679,773
|
22,679,773
|
||||||
Retained
earnings
|
7,364,894
|
5,326,298
|
||||||
Total
Stockholders' Equity
|
30,044,894
|
28,006,298
|
||||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
176,406,429
|
$
|
151,060,921
|
||||
See
accompanying notes.
|
MOBILE
OFFICE ACQUISITION CORP. AND SUBSIDIARY
|
||||
d/b/a
PAC-VAN, INC.
|
||||
CONSOLIDATED
STATEMENT OF INCOME
|
||||
Nine-Month
Period Ended September 30, 2008
|
||||
(Nine
Months)
|
||||
2008
|
||||
REVENUES
|
||||
Leasing
revenue
|
$
|
39,573,651
|
||
Sales
of equipment and services
|
17,945,729
|
|||
Total
Revenues
|
57,519,380
|
|||
COSTS
AND EXPENSES
|
||||
Cost
of sales of equipment and services
|
12,721,769
|
|||
Leasing,
selling and general
|
30,121,930
|
|||
Depreciation
and amortization
|
3,575,170
|
|||
Total
Costs and Expenses
|
46,418,869
|
|||
Income
from Operations
|
11,100,511
|
|||
INTEREST
EXPENSE
|
6,878,319
|
|||
Net
Income before Provision for Income Taxes
|
4,222,192
|
|||
PROVISION
FOR INCOME TAXES
|
2,183,596
|
|||
NET
INCOME
|
$
|
2,038,596
|
||
See
accompanying notes.
|
MOBILE
OFFICE ACQUISITION CORP. AND SUBSIDIARY
|
||||||||||||||||||||||
d/b/a
PAC-VAN, INC.
|
||||||||||||||||||||||
CONSOLIDATED
STATEMENT OF STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||
Nine-Month
Period Ended September 30, 2008
|
||||||||||||||||||||||
Additional
|
Total
|
|||||||||||||||||||||
Common
Stock
|
Paid-in
|
Retained
|
Stockholders'
|
|||||||||||||||||||
Class
A
|
Class
B
|
Capital
|
Earnings
|
Equity
|
||||||||||||||||||
BALANCE
AT DECEMBER 31, 2007
|
$
|
225
|
$
|
2
|
$
|
22,679,773
|
$
|
5,326,298
|
$
|
28,006,298
|
||||||||||||
Net
income
|
–
|
–
|
–
|
2,038,596
|
2,038,596
|
|||||||||||||||||
BALANCE
AT SEPTEMBER 30, 2008
|
$
|
225
|
$
|
2
|
$
|
22,679,773
|
$
|
7,364,894
|
$
|
30,044,894
|
||||||||||||
See
accompanying notes.
|
d/b/a
PAC-VAN, INC.
|
||||
CONSOLIDATED
STATEMENT OF CASH FLOWS
|
||||
Nine-Month
Period Ended September 30, 2008
|
||||
(Nine
Months)
|
||||
2008
|
||||
OPERATING
ACTIVITIES
|
||||
Net
income
|
$
|
2,038,596
|
||
Adjustments
to reconcile net income to net cash provided by
|
||||
operating
activities:
|
||||
Deferred
income taxes
|
2,176,096
|
|||
Depreciation
of property and equipment and rental inventory
|
3,501,392
|
|||
Proceeds
from the sale of property and equipment
|
52,512
|
|||
Amortization
of intangible assets
|
769,801
|
|||
Increase
in value of warrant obligation
|
650,085
|
|||
Gain
on disposals of property and equipment
|
(33,082
|
)
|
||
Increase
in certain assets:
|
||||
Accounts
receivable
|
(3,397,150
|
)
|
||
Net
investment in sales-type leases
|
(40,640
|
)
|
||
Other
assets
|
(79,373
|
)
|
||
Increase
in certain liabilities:
|
||||
Accounts
payable
|
2,479,927
|
|||
Accrued
liabilities
|
857,763
|
|||
Unearned
revenue and advance payments
|
1,321,893
|
|||
Net
Cash Provided by Operating Activities
|
10,297,820
|
|||
INVESTING
ACTIVITIES
|
||||
Purchases
of rental inventory, net
|
(16,098,773
|
)
|
||
Cash
paid for assets of businesses acquired
|
(8,396,315
|
)
|
||
Payments
received on note receivable-related party
|
260,000
|
|||
Purchases
of property and equipment
|
(785,093
|
)
|
||
Net
Cash (Used) by Investing Activities
|
(25,020,181
|
)
|
||
FINANCING
ACTIVITIES
|
||||
Proceeds
of issuance of long-term debt
|
22,450,000
|
|||
Principal
payments on long-term debt
|
(7,550,000
|
)
|
||
Financing
costs
|
(169,469
|
)
|
||
Net
Cash Provided by Financing Activities
|
14,730,531
|
|||
NET
INCREASE IN CASH
|
8,170
|
|||
CASH
|
||||
Beginning
of Period
|
53,325
|
|||
End
of Period
|
$
|
61,495
|
||
SUPPLEMENTAL
DISCLOSURES
|
||||
Interest
paid
|
$
|
6,464,956
|
||
Noncash
financing activities:
|
||||
Interest
expense related to valuation of warrant obligation
|
650,085
|
|||
See
accompanying notes.
|
·
|
Effective
February 1, 2008, the Company acquired the assets of US SpaceMaster
Leasing, LP. The purchase price was approximately
$3,801,000. The fair value of assets and liabilities acquired
on February 1, 2008, totaled approximately $3,548,000; accordingly, the
Company recorded goodwill of approximately
$253,000.
|
·
|
Effective
April 2, 2008, the Company acquired the assets of I-R Mobile
Modular. The purchase price was approximately $2,967,000, which
was the fair value of assets and liabilities
acquired.
|
·
|
Effective
June 6, 2008, the Company acquired the assets of Brandall Modular
Corp. The purchase price was approximately $1,853,000, which
was the fair value of assets and liabilities
acquired.
|
Accounts
receivable
|
$
|
245,257
|
||
Rental
inventory
|
8,123,315
|
|||
Goodwill
|
252,869
|
|||
Liabilities
assumed
|
(225,126
|
)
|
||
Cash
paid for acquisitions
|
$
|
8,396,315
|
||
2008
|
2007
|
|||||||
Mobile
offices, modular buildings and storage units
|
$
|
120,033,639
|
$
|
96,525,406
|
||||
Steps
|
2,181,668
|
1,641,864
|
||||||
122,215,307
|
98,167,270
|
|||||||
Less: Accumulated
depreciation
|
(5,575,529
|
)
|
(3,458,656
|
)
|
||||
Total
Rental Inventory
|
$
|
116,639,778
|
$
|
94,708,614
|
2008
|
2007
|
|||||||
Equipment
|
$
|
685,768
|
$
|
368,876
|
||||
Vehicles
|
2,222,919
|
1,873,943
|
||||||
Leasehold
improvements
|
629,953
|
559,020
|
||||||
3,538,640
|
2,801,839
|
|||||||
Less: Accumulated
depreciation
|
(1,239,048
|
)
|
(753,465
|
)
|
||||
Total
Property and Equipment
|
$
|
2,299,592
|
$
|
2,048,374
|
Goodwill
at December 31, 2008
|
$
|
39,161,675
|
||
Acquisition
of US SpaceMaster Leasing, LP
|
252,868
|
|||
Goodwill
at September 30, 2008
|
$
|
39,414,543
|
|
2008
|
2007
|
||||||||||||||
Gross
Amount
|
Accumulated
Amortization
|
Gross
Amount
|
Accumulated
Amortization
|
|||||||||||||
Customer
base
|
$
|
4,547,400
|
$
|
2,963,306
|
$
|
4,547,400
|
$
|
2,263,009
|
||||||||
Deferred
financing costs
|
849,695
|
370,902
|
679,695
|
300,867
|
||||||||||||
$
|
5,397,095
|
$
|
3,334,208
|
$
|
5,227,095
|
$
|
2,563,876
|
Receivable
In Year
|
Future
Minimum
|
|||
Ending
September 30,
|
Lease
Payments
|
|||
2009
|
$
|
172,485
|
||
2010
|
13,375
|
|||
2011
|
6,141
|
|||
192,001
|
||||
Less:
Amount representing interest
|
33,711
|
|||
Net
Investment in Sales-type Leases
|
$
|
158,290
|
Deferred
income tax expense:
|
||||
Federal
|
$
|
1,857,643
|
||
State
|
318,453
|
|||
Total
|
2,176,096
|
|||
Current
state income tax expense
|
7,500
|
|||
Provision
for Income Taxes
|
$
|
2,183,596
|
2008
|
2007
|
|||||||
Rental
inventory
|
$
|
26,040,840
|
$
|
23,905,985
|
||||
Net
operating loss carryforwards
|
(9,638,282
|
)
|
(8,607,254
|
)
|
||||
Accounts
receivable
|
(305,845
|
)
|
(246,000
|
)
|
||||
Other
|
895,339
|
(236,775
|
)
|
|||||
Net
Deferred Income Tax Liability
|
$
|
16,992,052
|
$
|
14,815,956
|
Payable
in Year
Ending
September 30,
|
Rental
Payments
|
|||
2009
|
$
|
1,437,775
|
||
2010
|
1,341,960
|
|||
2011
|
695,178
|
|||
2012
|
319,924
|
|||
2013
|
138,241
|
|||
$
|
3,933,078
|
2007
|
2006
|
|||||||
ASSETS
|
||||||||
ASSETS
|
||||||||
Cash
|
$
|
53,325
|
$
|
64,682
|
||||
Accounts
receivable, net of allowances of $1,175,000 in 2007 and $975,000 in
2006
|
11,845,950
|
9,409,029
|
||||||
Net
investment in sales-type leases
|
117,650
|
287,416
|
||||||
Rental
inventory, net
|
94,708,614
|
73,668,242
|
||||||
Note
receivable-related party
|
260,000
|
350,000
|
||||||
Property
and equipment, net
|
2,048,374
|
1,463,001
|
||||||
Other
assets
|
202,114
|
373,832
|
||||||
Intangible
assets, net
|
2,663,219
|
4,206,698
|
||||||
Goodwill
|
39,161,675
|
39,161,675
|
||||||
TOTAL
ASSETS
|
$
|
151,060,921
|
$
|
128,984,575
|
||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
LIABILITIES
|
||||||||
Accounts
payable
|
$
|
4,903,664
|
$
|
5,330,808
|
||||
Accrued
liabilities
|
4,003,683
|
3,481,831
|
||||||
Unearned
revenue and advance payments
|
6,091,843
|
4,560,261
|
||||||
Senior
bank debt
|
67,600,000
|
55,000,000
|
||||||
Subordinated
note payable
|
24,303,977
|
24,133,523
|
||||||
Deferred
income taxes
|
14,815,956
|
11,563,897
|
||||||
Warrant
obligation
|
1,335,500
|
937,500
|
||||||
Total
Liabilities
|
123,054,623
|
105,007,820
|
||||||
STOCKHOLDERS’
EQUITY
|
||||||||
Common
stock, Class A, $0.001 par value; 300,000 shares
authorized, 225,000 shares issued and outstanding
|
225
|
225
|
||||||
Common
stock, Class B, $0.001 par value; 50,000 shares authorized,
1,800 shares issued and outstanding
|
2
|
2
|
||||||
Additional
paid-in capital
|
22,679,773
|
22,679,773
|
||||||
Retained
earnings
|
5,326,298
|
1,296,755
|
||||||
Total
Stockholders’ Equity
|
28,006,298
|
23,976,755
|
||||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
151,060,921
|
$
|
128,984,575
|
(Five
Months)
|
||||||||
2007
|
2006
|
|||||||
REVENUES
|
||||||||
Leasing
revenue
|
$
|
47,035,305
|
$
|
17,604,933
|
||||
Sales
of equipment and services
|
20,220,120
|
11,261,618
|
||||||
Total
Revenues
|
67,255,425
|
28,866,551
|
||||||
COSTS
AND EXPENSES
|
||||||||
Cost
of sales of equipment and services
|
13,647,118
|
8,274,005
|
||||||
Leasing,
selling and general
|
32,837,661
|
13,347,747
|
||||||
Depreciation
and amortization
|
5,049,378
|
1,952,596
|
||||||
Total
Costs and Expenses
|
51,534,157
|
23,574,348
|
||||||
Income
from Operations
|
15,721,268
|
5,292,203
|
||||||
INTEREST
EXPENSE
|
8,425,166
|
3,163,747
|
||||||
Net
Income before Provision for Income Taxes
|
7,296,102
|
2,128,456
|
||||||
PROVISION
FOR INCOME TAXES
|
3,266,559
|
831,701
|
||||||
NET
INCOME
|
$
|
4,029,543
|
$
|
1,296,755
|
||||
Common
Stock
|
Additional
Paid-in
|
Retained
|
Total
Stockholders’
|
|||||||||||||||||
Class
A
|
Class
B
|
Capital
|
Earnings
|
Equity
|
||||||||||||||||
BALANCE
AT AUGUST 2, 2006
|
$
|
225
|
$
|
—
|
$
|
22,499,775
|
$
|
—
|
$
|
22,500,000
|
||||||||||
Issuance
of Class B common stock
|
—
|
2
|
179,998
|
—
|
180,000
|
|||||||||||||||
Net
income
|
—
|
—
|
—
|
1,296,755
|
1,296,755
|
|||||||||||||||
BALANCE
AT DECEMBER 31, 2006
|
225
|
2
|
22,679,773
|
1,296,755
|
23,976,755
|
|||||||||||||||
Net
income
|
—
|
—
|
—
|
4,029,543
|
4,029,543
|
|||||||||||||||
BALANCE
AT DECEMBER 31, 2007
|
$
|
225
|
$
|
2
|
$
|
22,679,773
|
$
|
5,326,298
|
$
|
28,006,298
|
(Five
Months)
|
||||||||
2007
|
2006
|
|||||||
OPERATING
ACTIVITIES
|
||||||||
Net
income
|
$
|
4,029,543
|
$
|
1,296,755
|
||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Deferred
income taxes
|
3,252,059
|
830,202
|
||||||
Depreciation
of property and equipment and rental inventory
|
3,447,753
|
1,268,688
|
||||||
Amortization
of intangible assets
|
1,772,079
|
754,931
|
||||||
Increase
in value of warrant obligation
|
398,000
|
|||||||
Loss
on disposals of property and equipment
|
44,503
|
16,588
|
||||||
(Increase)
decrease in certain assets:
|
||||||||
Accounts
receivable
|
(2,436,921
|
)
|
(385,563
|
)
|
||||
Net
investment in sales-type leases
|
169,766
|
59,463
|
||||||
Other
assets
|
171,718
|
(156,269
|
)
|
|||||
Increase
(decrease) in certain liabilities:
|
||||||||
Accounts
payable
|
(427,144
|
)
|
80,578
|
|||||
Accrued
liabilities
|
521,852
|
1,912,103
|
||||||
Unearned
revenue and advance payments
|
1,531,582
|
(682,416
|
)
|
|||||
Net
Cash Provided by Operating Activities
|
12,474,790
|
4,995,060
|
||||||
INVESTING
ACTIVITIES
|
||||||||
Purchases
of rental inventory, net
|
(23,753,427
|
)
|
(6,986,718
|
)
|
||||
Payments
received on note receivable-related party
|
90,000
|
50,000
|
||||||
Purchases
of property and equipment
|
(1,194,120
|
)
|
(278,045
|
)
|
||||
Net
Cash (Used) by Investing Activities
|
(24,857,547
|
)
|
(7,214,763
|
)
|
||||
FINANCING
ACTIVITIES
|
||||||||
Net
increase in senior bank debt
|
12,600,000
|
1,300,000
|
||||||
Financing
costs
|
(228,600
|
)
|
||||||
Proceeds
from issuance of Class B common stock
|
180,000
|
|||||||
Net
Cash Provided by Financing Activities
|
12,371,400
|
1,480,000
|
||||||
NET
DECREASE IN CASH
|
(11,357
|
)
|
(739,703
|
)
|
||||
CASH
|
||||||||
Beginning
of Period
|
64,682
|
804,385
|
||||||
End
of Period
|
$
|
53,325
|
$
|
64,682
|
||||
SUPPLEMENTAL
DISCLOSURES
|
||||||||
Interest
paid
|
$
|
7,901,339
|
$
|
1,649,426
|
||||
Noncash
investing and financing activities:
|
||||||||
Interest
expense related to valuation of warrant obligation
|
398,000
|
|||||||
Issuance
of note receivable-related party for stock
|
400,000
|
NOTE 1 —
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
|
NOTE 2 —
|
RENTAL
INVENTORY
|
2007
|
2006
|
|||||||
Mobile
offices, modular buildings and storage units
|
$
|
96,525,406
|
$
|
73,589,195
|
||||
Steps
|
1,641,864
|
1,040,233
|
||||||
98,167,270
|
74,629,428
|
|||||||
Less:
Accumulated depreciation
|
(3,458,656
|
)
|
(961,186
|
)
|
||||
Total
Rental Inventory
|
$
|
94,708,614
|
$
|
73,668,242
|
||||
NOTE 3 —
|
PROPERTY
AND EQUIPMENT
|
2007
|
2006
|
|||||||
Equipment
|
$
|
368,876
|
$
|
186,381
|
||||
Vehicles
|
1,873,943
|
970,928
|
||||||
Leasehold
improvements
|
559,020
|
494,913
|
||||||
2,801,839
|
1,652,222
|
|||||||
Less:
Accumulated depreciation
|
(753,465
|
)
|
(189,221
|
)
|
||||
Total
Property and Equipment
|
$
|
2,048,374
|
$
|
1,463,001
|
NOTE 4 —
|
AMORTIZABLE
INTANGIBLE ASSETS
|
2007
|
2006
|
|||||||||||||||
Gross
|
Accumulated
|
Gross
|
Accumulated
|
|||||||||||||
Amount
|
Amortization
|
Amount
|
Amortization
|
|||||||||||||
Customer
base
|
$
|
4,547,400
|
$
|
2,263,009
|
$
|
4,526,000
|
$
|
754,348
|
||||||||
Deferred
financing costs
|
679,695
|
300,867
|
472,495
|
37,449
|
||||||||||||
$
|
5,227,095
|
$
|
2,563,876
|
$
|
4,998,495
|
$
|
791,797
|
|||||||||
NOTE 5 —
|
NET
INVESTMENT IN SALES-TYPE LEASES
|
|
||||
Future
Minimum
|
||||
Receivable
In
|
Lease
Payments
|
|||
2008
|
$
|
138,285
|
||
2009
|
10,575
|
|||
2010
|
7,080
|
|||
2011
|
4,130
|
|||
160,070
|
||||
Less:
Amount representing interest
|
42,420
|
|||
Net
Investment in Sales-type Leases
|
$
|
117,650
|
||
NOTE 6 —
|
DEBT
|
NOTE 7 —
|
INCOME
TAXES
|
(Five
Months)
|
||||||||
2007
|
2006
|
|||||||
Deferred
tax expense:
|
||||||||
Federal
|
$
|
2,776,148
|
$
|
708,709
|
||||
State
|
475,911
|
121,493
|
||||||
Total
|
3,252,059
|
830,202
|
||||||
Current
state tax expense
|
14,500
|
1,499
|
||||||
Provision
for Income Taxes
|
$
|
3,266,559
|
$
|
831,701
|
2007
|
2006
|
|||||||
Rental
inventory
|
$
|
23,905,985
|
$
|
20,250,897
|
||||
Net
operating loss carryforwards
|
(8,607,254
|
)
|
(8,492,000
|
)
|
||||
Accounts
receivable
|
(246,000
|
)
|
(195,000
|
)
|
||||
Other
|
(236,775
|
)
|
—
|
|||||
Net
Deferred Income Tax Liability
|
$
|
14,815,956
|
$
|
11,563,897
|
||||
NOTE 8 —
|
OPERATING
LEASE COMMITMENTS
|
Rental
|
||||
Payable
In
|
Payments
|
|||
2008
|
$
|
1,010,052
|
||
2009
|
775,509
|
|||
2010
|
519,455
|
|||
2011
|
47,038
|
|||
$
|
2,352,054
|
|||
NOTE 9 —
|
EMPLOYEE
BENEFIT PLAN
|
NOTE 10 —
|
STOCK
OPTION PLAN
|
Risk-free
interest rate
|
4.0%
|
|
Dividend
yield
|
0%
|
|
Expected
life of the options
|
10 years
|
|
Volatility
|
30%
|
NOTE 11 —
|
RELATED
PARTY TRANSACTIONS
|
NOTE 12 —
|
SUBSEQUENT
EVENT
|
August 1,
|
December 31,
|
|||||||
2006
|
2005
|
|||||||
ASSETS
|
||||||||
ASSETS
|
||||||||
Cash
|
$
|
301,395
|
$
|
76,490
|
||||
Accounts
receivable, net of allowance for doubtful accounts of $750,000 at August
1, 2006 and $700,000 at December 31, 2005
|
9,123,466
|
8,543,955
|
||||||
Net
investment in sales-type leases
|
346,878
|
215,580
|
||||||
Rental
inventory, net
|
67,800,680
|
59,114,953
|
||||||
Property
and equipment, net
|
1,410,160
|
1,155,984
|
||||||
Other
assets
|
217,563
|
277,862
|
||||||
TOTAL
ASSETS
|
$
|
79,200,142
|
$
|
69,384,824
|
||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
LIABILITIES
|
||||||||
Accounts
payable
|
$
|
4,906,502
|
$
|
4,389,222
|
||||
Accrued
liabilities
|
1,782,236
|
1,786,095
|
||||||
Unearned
revenue and advance payments
|
5,242,676
|
3,835,235
|
||||||
Senior
bank debt
|
36,062,500
|
33,100,000
|
||||||
Derivative
obligation
|
6,180
|
|||||||
Subordinated
notes payable
|
4,522,000
|
4,522,000
|
||||||
Deferred
income taxes
|
9,718,142
|
7,770,526
|
||||||
Total
Liabilities
|
62,234,056
|
55,409,258
|
||||||
STOCKHOLDERS’
EQUITY
|
||||||||
Preferred
stock, $0.01 par value; 5,000,000 shares authorized, no shares
issued and outstanding
|
||||||||
Common
stock, Series A, $0.01 par value; 9,500,000 shares authorized,
2,000,000 shares issued and outstanding
|
20,000
|
20,000
|
||||||
Common
stock, Series B, $0.01 par value; 500,000 shares authorized,
231,525 shares issued and outstanding
|
2,315
|
2,315
|
||||||
Additional
paid-in capital
|
2,273,735
|
2,273,735
|
||||||
Stock
options outstanding
|
360,000
|
360,000
|
||||||
Retained
earnings
|
14,310,036
|
11,322,842
|
||||||
Accumulated
other comprehensive loss
|
(3,326
|
)
|
||||||
Total
Stockholders’ Equity
|
16,966,086
|
13,975,566
|
||||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
79,200,142
|
$
|
69,384,824
|
||||
(Seven
Months)
|
||||||||
2006
|
2005
|
|||||||
REVENUES
|
||||||||
Leasing
revenue
|
$
|
22,270,519
|
$
|
32,158,208
|
||||
Sales
of equipment and services
|
11,052,995
|
18,847,929
|
||||||
Total
Revenues
|
33,323,514
|
51,006,137
|
||||||
COSTS
AND EXPENSES
|
||||||||
Cost
of sales of equipment and services
|
7,816,428
|
13,831,804
|
||||||
Leasing,
selling and general
|
17,406,712
|
26,893,859
|
||||||
Depreciation
and amortization
|
1,395,231
|
2,374,005
|
||||||
Total
Costs and Expenses
|
26,618,371
|
43,099,668
|
||||||
Income
from Operations
|
6,705,143
|
7,906,469
|
||||||
INTEREST
EXPENSE
|
1,760,688
|
2,671,668
|
||||||
Net
Income before Provision for Income Taxes
|
4,944,455
|
5,234,801
|
||||||
PROVISION
FOR INCOME TAXES
|
1,957,261
|
2,079,585
|
||||||
NET
INCOME
|
$
|
2,987,194
|
$
|
3,155,216
|
||||
Common
Stock
|
Additional
Paid-in
|
Stock
Options
|
Retained
|
Accumulated
Other
Comprehensive
|
Total
Stockholders’
|
|||||||||||||||||||||||
Series
A
|
Series
B
|
Capital
|
Outstanding
|
Earnings
|
Loss
|
Equity
|
||||||||||||||||||||||
BALANCE
AT DECEMBER 31, 2004
|
$
|
20,000
|
$
|
2,315
|
$
|
2,273,735
|
$
|
360,000
|
$
|
8,167,626
|
$
|
(96,000
|
)
|
$
|
10,727,676
|
|||||||||||||
Comprehensive
Income:
|
||||||||||||||||||||||||||||
Net
income
|
—
|
—
|
—
|
—
|
3,155,216
|
—
|
3,155,216
|
|||||||||||||||||||||
Reclassification
adjustment for cash flow hedges, net of taxes of $61,146
|
—
|
—
|
—
|
—
|
—
|
92,674
|
92,674
|
|||||||||||||||||||||
Total
Comprehensive Income
|
—
|
—
|
—
|
—
|
—
|
—
|
3,247,890
|
|||||||||||||||||||||
BALANCE
AT DECEMBER 31, 2005
|
20,000
|
2,315
|
2,273,735
|
360,000
|
11,322,842
|
(3,326
|
)
|
13,975,566
|
||||||||||||||||||||
Comprehensive
Income:
|
||||||||||||||||||||||||||||
Net
income
|
—
|
—
|
—
|
—
|
2,987,194
|
—
|
2,987,194
|
|||||||||||||||||||||
Reclassification
adjustment for cash flow hedges, net of taxes of $2,854
|
—
|
—
|
—
|
—
|
—
|
3,326
|
3,326
|
|||||||||||||||||||||
Total
Comprehensive Income
|
—
|
—
|
—
|
—
|
—
|
—
|
2,990,520
|
|||||||||||||||||||||
BALANCE
AT AUGUST 1, 2006
|
$
|
20,000
|
$
|
2,315
|
$
|
2,273,735
|
$
|
360,000
|
$
|
14,310,036
|
$
|
—
|
$
|
16,966,086
|
||||||||||||||
(Seven
Months)
|
||||||||
2006
|
2005
|
|||||||
OPERATING
ACTIVITIES
|
||||||||
Net
income
|
$
|
2,987,194
|
$
|
3,155,216
|
||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Deferred
income taxes
|
1,957,261
|
2,079,585
|
||||||
Depreciation
and amortization
|
1,395,231
|
2,374,005
|
||||||
(Increase)
decrease in certain assets:
|
||||||||
Accounts
receivable
|
(579,511
|
)
|
(2,165,388
|
)
|
||||
Net
investment in sales-type leases
|
(131,298
|
)
|
127,299
|
|||||
Other
assets
|
60,299
|
8,118
|
||||||
Increase
(decrease) in certain liabilities:
|
||||||||
Accounts
payable
|
517,280
|
1,445,811
|
||||||
Accrued
liabilities
|
(3,859
|
)
|
677,626
|
|||||
Unearned
revenue and advance payments
|
1,407,441
|
861,018
|
||||||
Net
Cash Provided by Operating Activities
|
7,610,038
|
8,563,290
|
||||||
INVESTING
ACTIVITIES
|
||||||||
Purchases
of rental inventory, net
|
(9,874,246
|
)
|
(7,192,441
|
)
|
||||
Purchases
of property and equipment
|
(473,387
|
)
|
(683,555
|
)
|
||||
Net
Cash (Used) by Investing Activities
|
(10,347,633
|
)
|
(7,875,996
|
)
|
||||
FINANCING
ACTIVITIES
|
||||||||
Payments
of subordinated notes payable
|
(250,000
|
)
|
||||||
Net
increase (decrease) in senior bank debt
|
2,962,500
|
(400,000
|
)
|
|||||
Net
Cash Provided (Used) by Financing Activities
|
2,962,500
|
(650,000
|
)
|
|||||
NET
INCREASE IN CASH
|
224,905
|
37,294
|
||||||
CASH
|
||||||||
Beginning
of Year
|
76,490
|
39,196
|
||||||
End
of Year
|
$
|
301,395
|
$
|
76,490
|
||||
NOTE 1 —
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
|
NOTE 2 —
|
RENTAL
INVENTORY
|
August 1,
|
December 31,
|
|||||||
2006
|
2005
|
|||||||
Mobile
offices, modular buildings and storage units
|
$
|
76,562,853
|
$
|
67,624,270
|
||||
Steps
|
1,877,929
|
1,442,733
|
||||||
78,440,782
|
69,067,003
|
|||||||
Less:
Accumulated depreciation
|
(10,640,102
|
)
|
(9,952,050
|
)
|
||||
Total
Rental Inventory
|
$
|
67,800,680
|
$
|
59,144,953
|
||||
NOTE 3 —
|
PROPERTY
AND EQUIPMENT
|
August 1,
|
December 31,
|
|||||||
2006
|
2005
|
|||||||
Equipment
|
$
|
1,313,512
|
$
|
1,237,222
|
||||
Vehicles
|
1,853,932
|
1,594,942
|
||||||
Leasehold
improvements
|
442,304
|
342,138
|
||||||
3,609,748
|
3,174,302
|
|||||||
Less:
Accumulated depreciation
|
(2,199,588
|
)
|
(2,018,318
|
)
|
||||
Total
Property and Equipment
|
$
|
1,410,160
|
$
|
1,155,984
|
NOTE 4 —
|
NET
INVESTMENT IN SALES-TYPE LEASES
|
Receivable
in
|
||||
Year
Ending
|
Future
Minimum
|
|||
August
1,
|
Lease
Payments
|
|||
2007
|
$
|
308,043
|
||
2008
|
124,019
|
|||
2009
|
3,135
|
|||
435,197
|
||||
Less:
Amount representing interest
|
88,319
|
|||
Net
Investment in Sales-type Leases
|
$
|
346,878
|
NOTE 5 —
|
DEBT
|
August 1,
|
December 31,
|
|||||||
2006
|
2005
|
|||||||
12.5% notes
payable due various dates in 2009
|
$
|
4,247,000
|
$
|
4,247,000
|
||||
12.0% note
payable due January, 2009
|
275,000
|
275,000
|
||||||
$
|
4,522,000
|
$
|
4,522,000
|
|||||
Payable
in
|
||||
Year
Ending
|
||||
August
1,
|
||||
2007
|
$
|
750,000
|
||
2008
|
35,312,500
|
|||
2009
|
4,522,000
|
|||
$
|
40,584,500
|
NOTE 6 —
|
INCOME
TAXES
|
(Seven
Months)
|
||||||||
2006
|
2005
|
|||||||
Deferred
tax expense:
|
||||||||
Federal
|
$
|
1,663,672
|
$
|
1,767,647
|
||||
State
|
293,589
|
311,938
|
||||||
Provision
for Income Taxes
|
$
|
1,957,261
|
$
|
2,079,585
|
August 1,
|
December 31,
|
|||||||
2006
|
2005
|
|||||||
Rental
inventory
|
$
|
17,374,000
|
$
|
16,640,000
|
||||
Net
operating loss carry forwards
|
(7,450,000
|
)
|
(8,466,000
|
)
|
||||
Accounts
receivable
|
(170,000
|
)
|
(160,000
|
)
|
||||
Derivative
obligation
|
—
|
(2,854
|
)
|
|||||
Stock
option compensation
|
(142,000
|
)
|
(142,000
|
)
|
||||
Other
|
106,142
|
(98,620
|
)
|
|||||
Net
Deferred Income Tax Liability
|
$
|
9,718,142
|
$
|
7,770,526
|
||||
NOTE 7 —
|
OPERATING
LEASE COMMITMENTS
|
Payable
in
|
||||
Year
Ending
|
Rental
|
|||
August
1,
|
Payments
|
|||
2007
|
$
|
748,194
|
||
2008
|
759,215
|
|||
2009
|
612,502
|
|||
2010
|
739,683
|
|||
2011
|
235,108
|
|||
$
|
3,094,702
|
NOTE 8 —
|
EMPLOYEE
BENEFIT PLAN
|
NOTE 9 —
|
CAPITAL
STOCK
|
NOTE 10 —
|
STOCK
OPTION PLAN
|
Risk-free
interest rate
|
4.0
|
%
|
||
Dividend
yield
|
0
|
%
|
||
Expected
life of the options (years)
|
4
|
NOTE 11 —
|
SUBSEQUENT
EVENT
|
SEC
filing fee
|
$
|
[ ]
|
||
FINRA
filing fee
|
$
|
[ ]
|
||
Accounting
fees and expenses
|
$
|
[25,000]
|
||
Legal
fees and expenses
|
$
|
[10,000]
|
||
Printing
and engraving expenses
|
$
|
[35,000]
|
||
Other
(including subscription and information agent fees)
|
$
|
[36,000]
|
||
Total
|
$
|
[ ]
|
GENERAL
FINANCE CORPORATION
|
|||
By:
|
/s/
Ronald F. Valenta
|
||
Ronald
F. Valenta
|
|||
Chief Executive Officer
|
|||
Name
|
Position
|
Date
|
||
/s/
Ronald F. Valenta
Ronald
F. Valenta
|
Chief
Executive Officer and Director
|
December
18, 2009
|
||
/s/
Charles E. Barrantes
Charles
E. Barrantes
|
Executive
Vice President and Chief Financial Officer
|
December
18, 2009
|
||
*
James
B. Roszak
|
Director
|
December
18, 2009
|
||
*
Lawrence
Glascott
|
Chairman
of the Board of Directors
|
December
18, 2009
|
||
*
Manuel
Marrero
|
Director
|
December
18, 2009
|
||
*
David
M. Connell
|
Director
|
December
18, 2009
|
||
*
Ronald
L. Havner, Jr.
|
Director
|
December
18, 2009
|
||
*
Susan
Harris
|
Director
|
December
18, 2009
|
3.1
|
Amended
and Restated Certificate of Incorporation of General Finance Corporation
as filed April 5, 2006, (Incorporated by reference to Exhibit 3.1 to
General Finance Corporation’s Registration Statement on Form S-1 (File No.
333-129830))
|
3.2
|
Amended
and Restated Bylaws of General Finance Corporation, as amended
(Incorporated by reference to Exhibit 3.2 to General Finance Corporation’s
Quarterly Report on Form 10-Q (File No.
001-32845))
|
4.1
|
Form
of common stock certificate (Incorporated by reference to Exhibit 4.2 to
General Finance Corporation’s Amendment No. 2 to Registration Statement on
Form S-1 (File No. 333-129830))
|
4.3
|
Form
of Subscription Rights Certificate**
|
4.4
|
Form
of Notice to Stockholders who are Record Holders**
|
4.5
|
Form
of Notice to Stockholders who are Acting as Nominees**
|
4.6
|
Form
of Notice to Clients of Stockholders who are Acting as
Nominees**
|
4.7
|
Form
of Beneficial Owner Election Form**
|
4.8
|
Form
of Preliminary Subscription Agreement**
|
4.9
|
Form
of Acknowledgement of Subscription**
|
5.1
|
Legal
Opinion of Christopher A. Wilson*
|
23.1
|
Consent
of Independent Registered Public Accounting Firm (Crowe Horwath
LLP)*
|
23.2
|
Consent
of Independent Registered Public Accounting Firm (Grobstein, Horwath &
Company LLP)*
|
23.3
|
Consent
of Independent Public Accounting Firm (Katz, Sapper & Miller,
LLP)*
|
23.4
|
Consent
of Christopher A. Wilson (contained in Exhibit
5.1)*
|