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): September 21, 2006
Innovex, Inc.
-----------------------------------
(Exact name of Registrant as Specified in its Charter)
Minnesota
-----------------------------------
(State Or Other Jurisdiction Of Incorporation)
000-13143 41-1223933
------------------------------------- -------------------------------------
(Commission File Number) (I.R.S. Employer Identification No.)
5540 Pioneer Creek Drive
Maple Plain, MN 55359
------------------------------------- -------------------------------------
(Address Of Principal Executive Offices) (Zip Code)
(763) 479-5300
-----------------------------------
Registrant's Telephone Number, Including Area Code
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
|_| Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Items under Sections 1, 3 through 8 are not applicable and therefore omitted.
ITEM 2.02 Results Of Operations And Financial Condition.
The Company hereby furnishes a press release issued on September 25, 2006 and
attached hereto as Exhibit 99.1 disclosing material non-public information
regarding the Company's results of operations for the quarter ending September
30, 2006.
ITEM 2.05 Costs Associated with Exit or Disposal Activities
On September 21, 2006, the board of directors approved a plan to accelerate end
of life production for FSA flexible circuits in its Litchfield, Minnesota
facility and discontinue use of that facility by the end of March 2007.
Concurrent with FSA flexible circuit end of life production, the Company will
also accelerate end of life production at its Eastlake, Ohio laminate material
manufacturing facility, where it manufactures FSA flexible circuit laminate
materials. In addition, the Company will also selectively reduce its indirect
labor and general and administrative expenses at both its US and Thailand
locations in order to reduce the Company's cost structure and ensure profitable
future operations. The restructuring charge could total up to $6 million over
the next twelve months. Included in the total are non-cash asset impairment
charges of $2.0 million that will be recorded in the fiscal 2006 fourth quarter.
The remaining expected restructuring charges will be recorded as the liabilities
are incurred over the next twelve months. The additional cash related charges
are expected to include severance costs of up to $2.0 million and facility
abandonment costs of up to $2.0 million.
The Company expects annual cost savings of over $10 million once the transition
is complete with interim cost savings being realized as the operation
dispositions are completed. Capital expenditures related to the restructuring
plan will be minimal.
ITEM 2.06 Material Impairments
On September 21, 2006, the Company's board of directors approved a plan to close
the Company's Litchfield , Minnesota flexible circuit manufacturing facility and
its Eastlake, Ohio laminate material manufacturing facility over the next six
months in order to reduce the Company's cost structure and ensure profitable
future operations. As a result, based on management's review of long lived
assets as of September 21, 2006, it was determined that the value of the
Company's manufacturing equipment located within those facilities was impaired.
The review considered the cash flow related to the expected future use of those
assets and resulted in the write down of those assets to their appraised value
as discussed in Item 2.05.
ITEM 9.01 Financial Statements and Exhibits.
Exhibit No. Description
99.1 Press Release issued September 25, 2006
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
INNOVEX, INC.
By: /s/ Douglas W. Keller
-----------------------------------------
Douglas W. Keller
Vice President, Finance
Date: September 25, 2006