Table of Contents
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
December 2, 2005
American Real Estate Partners, L.P.
(Exact name of registrant as specified in its charter)
|
Delaware
|
1-9516 | 13-3398766 | ||
|
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
||
|
100 South Bedford Road, Mt. Kisco, NY (Address of principal executive offices) |
10549 (Zip Code) |
|||
Registrant’s telephone number, including area code:
(914) 242-7700
N/A
(Former name or former address, if changed since last
report)
Check the appropriate box below if the Form 8-K filing is
intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions:
| o | Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Section 8 — Other Events
Item 8.01 Other
Events
The following pro forma financial data are filed in
Exhibit 99.1 on the pages listed below and are presented to
reflect the pro forma effects of the acquisition of
substantially all of the assets of WestPoint Stevens Inc. and
the June 2005 acquisitions as discussed in the Introductory
Note.
|
Introductory note
|
F-1 | ||
| F-2 | |||
| F-3 | |||
| F-4 | |||
Section 9 — Financial Statements and
Exhibits
Item 9.01 Financial
Statements and Exhibits
(c) Exhibits
| Exhibit No. | ||||||||
| 99.1 | Unaudited Pro Forma Consolidated Financial Data for American Real Estate Partners, L.P. and Subsidiaries | |||||||
| EX-99.1: UNAUDITED PROFORMA INFORMATION | ||||||||
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
| AMERICAN REAL ESTATE PARTNERS, L.P. | |
| (Registrant) |
| By: | American Property Investors, Inc. |
| General Partner |
| By: | /s/ Jon F. Weber |
|
|
|
| Jon F. Weber | |
| President and Chief Financial Officer |
Date: December 2, 2005
Exhibit 99.1
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL DATA
The unaudited pro forma condensed consolidated financial
statement information set forth below is presented to reflect
the pro forma effects of the acquisition of substantially all of
the assets of WestPoint Stevens Inc. as if it occurred on the
dates indicated as discussed below. The attached unaudited pro
forma condensed consolidated statement of earnings for the year
ended December 31, 2004, also reflect the acquisitions of
NEG Holding LLC, Panaco, Inc., GB Holdings, Inc. and Atlantic
Coast Entertainment, Inc. in June 2005.
The unaudited pro forma condensed consolidated statements of
earnings for the nine months ended September 30, 2005 and
the year ended December 31, 2004 have been prepared as if
the acquisition had occurred on January 1, 2004. The
unaudited pro forma condensed consolidated statements of
earnings for the nine months ended September 30, 2005 and
the year ended December 31, 2004 give effect to the
unaudited pro forma adjustments necessary to account for the
acquisition.
The unaudited pro forma condensed consolidated financial
statement information is based on, and should be read together
with (1) our consolidated financial statements for the nine
months ended September 30, 2005
(unaudited) incorporated by reference to our Form 10-Q
filed on November 14, 2005 and for the year ended
December 31, 2004 incorporated by reference to our
Form 8-K filed on December 1, 2005 and (2) the
consolidated financial statements for the six months ended
June 30, 2005 (unaudited) and for the year ended
December 31, 2004, of WestPoint Stevens, Inc., incorporated
by reference to our Form 8-K/ A filed on October 21,
2005. A Form 8-K was filed on August 12, 2005,
disclosing the acquisition.
F-1
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL DATA
AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
Nine Months Ended September 30, 2005
| Historical | Pro Forma Adjustments | ||||||||||||||||||||||||
| American Real | WPS | Pro Forma Adjustments | |||||||||||||||||||||||
| Estate Partners, | Westpoint | Bankruptcy | for WPS Acquisition | ||||||||||||||||||||||
| L.P. | Stevens Inc. | Consolidated | Adjustment(4) | (1), (2), (3) and (5) | Pro Forma | ||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
| (In thousands, except unit and per unit data) | |||||||||||||||||||||||||
|
Revenues:
|
|||||||||||||||||||||||||
|
Home fashion
|
$ | 183,627 | $ | 728,362 | $ | 911,989 | $ | $ | $ | 911,989 | |||||||||||||||
|
Gaming
|
371,474 | 371,474 | 371,474 | ||||||||||||||||||||||
|
Oil and gas
|
86,709 | 86,709 | 86,709 | ||||||||||||||||||||||
|
Real estate
|
66,947 | 66,947 | 66,947 | ||||||||||||||||||||||
| 708,757 | 728,362 | 1,437,119 | — | — | 1,437,119 | ||||||||||||||||||||
|
Expenses:
|
|||||||||||||||||||||||||
|
Home fashion
|
188,717 | 809,153 | 997,870 | (41,168 | ) | 956,702 | |||||||||||||||||||
|
Gaming
|
324,214 | 324,214 | 324,214 | ||||||||||||||||||||||
|
Oil and gas
|
115,924 | 115,924 | 115,924 | ||||||||||||||||||||||
|
Real estate
|
54,201 | 54,201 | 54,201 | ||||||||||||||||||||||
|
Holding company
|
8,054 | 8,054 | 8,054 | ||||||||||||||||||||||
|
Acquisition costs
|
4,099 | 4,099 | 4,099 | ||||||||||||||||||||||
|
Restructuring and impairment charges
|
— | 4,078 | 4,078 | 4,078 | |||||||||||||||||||||
| 695,209 | 813,231 | 1,508,440 | — | (41,168 | ) | 1,467,272 | |||||||||||||||||||
|
Operating income (loss)
|
13,548 | (84,869 | ) | (71,321 | ) | — | 41,168 | (30,153 | ) | ||||||||||||||||
|
Other income (expense), net:
|
|||||||||||||||||||||||||
|
Interest expense
|
(78,874 | ) | (52,523 | ) | (131,397 | ) | 52,523 | (78,874 | ) | ||||||||||||||||
|
Interest and other income
|
37,457 | 37,457 | (10,236 | ) | 27,221 | ||||||||||||||||||||
|
Impairment loss from GB Holding, Inc. bankruptcy
|
(52,366 | ) | (52,366 | ) | (52,366 | ) | |||||||||||||||||||
|
Other income (expense), net
|
(12,218 | ) | 493 | (11,725 | ) | 20,699 | 8,974 | ||||||||||||||||||
|
Chapter 11 expenses
|
— | (22,944 | ) | (22,944 | ) | 22,944 | — | ||||||||||||||||||
|
Loss from continuing operations before income taxes
|
(92,453 | ) | (159,843 | ) | (252,296 | ) | 22,944 | 104,154 | (125,198 | ) | |||||||||||||||
|
Income tax (expense ) benefit
|
(18,993 | ) | 1,908 | (17,085 | ) | (17,085 | ) | ||||||||||||||||||
|
Loss from continuing operations
|
$ | (111,446 | ) | $ | (157,935 | ) | $ | (269,381 | ) | $ | 22,944 | $ | 104,154 | $ | (142,283 | ) | |||||||||
|
Loss from continuing operations attributable to:
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|||||||||||||||||||||||||
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Limited partners
|
$ | (108,694 | ) | $ | (138,917 | ) | |||||||||||||||||||
|
General partner
|
(2,752 | ) | (3,366 | ) | |||||||||||||||||||||
| $ | (111,446 | ) | $ | (142,283 | ) | ||||||||||||||||||||
|
Loss from continuing operations per limited partnership unit:
|
|||||||||||||||||||||||||
|
Basic earnings:
|
|||||||||||||||||||||||||
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Loss from continuing operations per LP unit
|
$ | (2.12 | ) | $ | (2.71 | ) | |||||||||||||||||||
|
Weighted average limited partnership units outstanding
|
51,351,133 | 51,351,133 | |||||||||||||||||||||||
|
Diluted earnings:
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|||||||||||||||||||||||||
|
Loss from continuing operations per LP unit
|
$ | (2.12 | ) | $ | (2.71 | ) | |||||||||||||||||||
|
Weighted average limited partnership units and equivalent
partnership units outstanding
|
51,351,133 | 51,351,133 | |||||||||||||||||||||||
F-2
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL DATA
AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
Year Ended December 31, 2004
| Historical | Pro Forma Adjustments | ||||||||||||||||||||||||
| American Real | WPS | Pro Forma Adjustments | |||||||||||||||||||||||
| Estate Partners, | Westpoint | Bankruptcy | for WPS Acquisition | ||||||||||||||||||||||
| L.P. | Stevens Inc. | Consolidated | Adjustment(4) | (1), (2), (3) and (5) | Pro Forma | ||||||||||||||||||||
| (In thousands, except unit and per unit data) | |||||||||||||||||||||||||
|
Revenues:
|
|||||||||||||||||||||||||
|
Home fashion
|
$ | — | $ | 1,618,684 | $ | 1,618,684 | $ | $ | $ | 1,618,684 | |||||||||||||||
|
Gaming
|
470,836 | 470,836 | 470,836 | ||||||||||||||||||||||
|
Oil and gas
|
137,988 | 137,988 | 137,988 | ||||||||||||||||||||||
|
Real estate
|
61,695 | 61,695 | 61,695 | ||||||||||||||||||||||
| 670,519 | 1,618,684 | 2,289,203 | — | — | 2,289,203 | ||||||||||||||||||||
|
Expenses:
|
|||||||||||||||||||||||||
|
Home fashion
|
— | 1,621,694 | 1,621,694 | (67,942 | ) | 1,553,752 | |||||||||||||||||||
|
Gaming
|
419,601 | 419,601 | 419,601 | ||||||||||||||||||||||
|
Oil and gas
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104,935 | 104,935 | 104,935 | ||||||||||||||||||||||
|
Real estate
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44,938 | 44,938 | 44,938 | ||||||||||||||||||||||
|
General and administrative expenses
|
7,779 | 7,779 | 7,779 | ||||||||||||||||||||||
|
Acquisition costs
|
414 | 414 | 414 | ||||||||||||||||||||||
|
Restructuring and impairment charges
|
— | 54,396 | 54,396 | 54,396 | |||||||||||||||||||||
| 577,667 | 1,676,090 | 2,253,757 | — | (67,942 | ) | 2,185,815 | |||||||||||||||||||
|
Operating income (loss)
|
92,852 | (57,406 | ) | 35,446 | — | 67,942 | 103,388 | ||||||||||||||||||
|
Other income (expense), net:
|
|||||||||||||||||||||||||
|
Interest expense
|
(62,183 | ) | (78,263 | ) | (140,446 | ) | 78,263 | (62,183 | ) | ||||||||||||||||
|
Interest and other income
|
45,241 | 45,241 | (13,800 | ) | 31,441 | ||||||||||||||||||||
|
Other income (expense), net
|
15,016 | (7,826 | ) | 7,190 | 11,944 | 19,134 | |||||||||||||||||||
|
Chapter 11 expenses
|
— | (34,605 | ) | (34,605 | ) | 34,605 | — | ||||||||||||||||||
|
Income (loss) from continuing operations before income taxes
|
90,926 | (178,100 | ) | (87,174 | ) | 34,605 | 144,349 | 91,780 | |||||||||||||||||
|
Income tax expense
|
(18,312 | ) | (5,175 | ) | (23,487 | ) | (23,487 | ) | |||||||||||||||||
|
Income (loss) from continuing operations
|
$ | 72,614 | $ | (183,275 | ) | $ | (110,661 | ) | $ | 34,605 | $ | 144,349 | $ | 68,293 | |||||||||||
|
Income (loss) from continuing operations attributable to:
|
|||||||||||||||||||||||||
|
Limited partners
|
$ | 51,325 | $ | 47,090 | |||||||||||||||||||||
|
General partner
|
21,289 | 21,203 | |||||||||||||||||||||||
| $ | 72,614 | $ | 68,293 | ||||||||||||||||||||||
|
Income (loss) from continuing operations per limited partnership
unit:
|
|||||||||||||||||||||||||
|
Basic earnings:
|
|||||||||||||||||||||||||
|
Income from continuing operations per LP unit
|
$ | 1.11 | $ | 1.02 | |||||||||||||||||||||
|
Weighted average limited partnership units outstanding
|
46,098,284 | 46,098,284 | |||||||||||||||||||||||
|
Diluted earnings:
|
|||||||||||||||||||||||||
|
Income from continuing operations per LP unit
|
$ | 1.09 | $ | 1.01 | |||||||||||||||||||||
|
Weighted average limited partnership
|
|||||||||||||||||||||||||
|
Units and equivalent partnership units outstanding
|
51,542,312 | 51,542,312 | |||||||||||||||||||||||
F-3
AMERICAN REAL ESTATE PARTNERS, L.P. AND SUBSIDIARIES
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED
FINANCIAL STATEMENT INFORMATION
On August 8, 2005, our indirect majority owned subsidiary,
WestPoint International, Inc. or WPI, consummated the purchase
of substantially all the assets of WestPoint Stevens Inc., a
home fashions consumer products company, pursuant to an Asset
Purchase Agreement, dated June 23, 2005, by and among
WS Textile Co., Inc., New Textile One, Inc., New Textile
Two, Inc., Textile Co., Inc., WestPoint Stevens Inc., WestPoint
Stevens Inc. I, WestPoint Stevens Stores Inc., and J.P.
Stevens Enterprises, Inc. The United States Bankruptcy Court for
the Southern District of New York entered an order on
July 8, 2005 approving the Asset Purchase Agreement and the
sale of the assets pursuant to section 363 of the United
States Bankruptcy Code. As of the current date, the Company owns
67.7% of the common stock of WPI. On November 16, 2005, the
United States District Court remanded the acquisition agreement
to U.S. Bankruptcy Court for further proceedings. Depending
upon the outcome of the proceedings the Company’s share of
WPI’s common stock could drop below 50%.
| (1) Reflects the elimination of WestPoint Stevens interest expense as a result of the emergence from bankruptcy of WestPoint Stevens. | |
| (2) Reflects the elimination of interest income earned by AREP on its investment in WestPoint Stevens debt. | |
| (3) Reflects an adjustment to depreciation expense based upon WPI’s fixed asset values of WestPoint Stevens after its emergence from bankruptcy. | |
| (4) Reflects the elimination of Chapter 11 bankruptcy expenses related to the emergence from bankruptcy of WestPoint Stevens. | |
| (5) Reflects an adjustment to record the required minority interest impact in the statement of earnings. |
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follows]
F-4