-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LH8kTJSRU/9ZyQX4dBDhSWBnF4+U9F6vxGkjbR8chnKZ8k9B0JaRtKY+R/qlbz7U T03EfsmX3uuEX6L01bfz1w== 0000928385-01-000737.txt : 20010312 0000928385-01-000737.hdr.sgml : 20010312 ACCESSION NUMBER: 0000928385-01-000737 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010307 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010308 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CREDIT MANAGEMENT SOLUTIONS INC CENTRAL INDEX KEY: 0001024339 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING SERVICES [7371] IRS NUMBER: 521549401 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-21735 FILM NUMBER: 1563552 BUSINESS ADDRESS: STREET 1: 5950 SYMPHONY WOODS RD CITY: COLUMBIA STATE: MD ZIP: 21044 BUSINESS PHONE: 4107401000 MAIL ADDRESS: STREET 1: 5950 SYMPHONY WOODS RD STREET 2: SUITE 301 CITY: COLUMBIA STATE: MD ZIP: 21044 8-K 1 0001.txt FORM 8-K --------------------------------- | OMB APPROVAL | --------------------------------- | OMB Number: 3235-0060 | | Expires: March 31, 2003 | | Estimated average burden | | hours per response...... 1.25 | --------------------------------- 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) March 7, 2001 ------------------------------- Credit Management Solutions, Inc. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 0-21735 52-1549401 - -------------------------------------------------------------------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 135 National Business Parkway, Annapolis Junction, Maryland 20701 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (301) 362-6000 ----------------------------- - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) Item 5. Other Events. On March 7, 2001, Credit Management Solutions, Inc. (the "Company") issued a press release announcing results for the fourth quarter and fiscal year ending December 31, 2000. The Company also announced in that press release that Miles Grody had resigned as a member of the Company's Board of Directors, and departed from his positions as President of the Company's Credit Systems, Inc. subsidiary and a Senior Vice President of the Company, effective March 2, 2001. A copy of the Company's press release is attached to this current report on Form 8-K. Such press release is incorporated by reference into this Item 5 and the foregoing description of such press release is qualified in its entirety by reference to such exhibit. The above-referenced statements may contain forward-looking statements that are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, which are described in the Company's filings with the Securities and Exchange Commission. The actual results may differ materially from any forward-looking statements due to such risks and uncertainties. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. (a) Not applicable. (b) Not applicable. (c) Exhibits. 99.1 Press Release issued March 7, 2001, by Credit Management Solutions, Inc. SIGNATURES Pursuant to the requirements of the Securities Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Credit Management Solutions, Inc. --------------- ------------------------- (Registrant) March 7, 2001 By /s/ Scott L. Freiman - ----------------------- -------------------------------------- Date Scott L. Freiman Chief Executive Officer EXHIBIT INDEX Exhibit Number Description 99.1 Press Release issued March 7, 2001, by Credit Management Solutions, Inc. EX-99.1 2 0002.txt PRESS RELEASE DATED MARCH 7, 2001 Exhibit 99.1 FOR IMMEDIATE RELEASE CONTACT: Robert P. Vollono Chief Financial Officer CMSI (800) 777-2674 ext. 6077 Bob_Vollono@cmsinc.com ---------------------- CMSI Reports 2000 Results; Credit Online Revenues Increase 80% Over Prior Year; Miles Grody departs CMSI Annapolis Junction, MD, March 7, 2001- Credit Management Solutions, Inc. (CMSI) (Nasdaq: CMSS - news), a provider of credit automation technology, services and ---- ---- software which enables business-to-business and business-to-consumer credit transactions, today reported fourth quarter results. For the quarter ended December 31, 2000, total revenue was $ 6.9 million vs. $ 5.2 million in the comparable period of 1999. Pretax loss for the fourth quarter of 2000 was ($ 1.0) million, or ($ 0.13) per share, compared to a pretax loss of ($ 2.0) million, or ($ 0.26) per share in the fourth quarter of 1999. Revenues for the year ended December 31, 2000 were $ 25.2 million, compared to $ 22.8 million for the year ended 1999. Net loss for the year was ($ 1.9) million, or ($ 0.24) per share compared to ($ 2.6) million or ($ 0.33) per share for the same period in 1999. Scott L Freiman, President and CEO, commented, "We are pleased with the financial improvement in our company during the year 2000. Most notably, the transaction growth in our Credit Online business demonstrates that our eCommerce strategy is working well. We expect to continue to improve our business model and financial performance in 2001, as a subsidiary of The First American Corporation (NYSE: FAF) following the completion of our anticipated merger, as previously announced." Mr. Freiman also added that "we are disappointed to announce the resignation, effective March 2, 2001, of Miles Grody from the Board of Directors of CMSI, and his departure from the positions of President of our CMSI Systems, Inc. subsidiary and Senior Vice President of CMSI, in connection with our internal restructuring and in anticipation of the merger. Miles made many valuable contributions to CMSI over his tenure and we wish him the best of success in his future endeavors. In light of Miles' departure, Howard Tischler and I will be overseeing the operations of CMSI Systems." The table below reflects unaudited results by subsidiary for the fourth quarter and twelve months of 2000 and 1999.
- ------------------------------------------------------------------------------------------------- CMSI ( $ 000 ) Consolidated CMSI Systems Credit Online - ------------------------------------------------------------------------------------------------- Three months ended December 31, 2000 1999 2000 1999 2000 1999 - ------------------------------------------------------------------------------------------------- Revenues $ 6,900 $ 5,241 $ 5,588 $ 4,186 $ 1,312 $ 1,055 - ------------------------------------------------------------------------------------------------- Pretax income/(loss) $ (994) $(2,024) $ 400 $ (579) $(1,394) $(1,445) - ------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------- Twelve months ended December 31, 2000 1999 2000 1999 2000 1999 - ------------------------------------------------------------------------------------------------- Revenues $25,173 $22,775 $20,620 $20,244 $ 4,553 $ 2,531 - ------------------------------------------------------------------------------------------------- Pretax income/(loss) $(1,909) $(2,555) $ 3,531 $ 3,402 $(5,440) $(5,957) - -------------------------------------------------------------------------------------------------
About CMSI Since it was founded in 1987, CMSI has been a premier provider of credit automation software and services, including Internet-based online lending and leasing technology. Corporate clients include leading organizations in the banking, finance, automotive, student lending, and telecommunications industries. The Company's e-commerce subsidiary, Credit Online, Inc., credit- enables business-to-business and business-to-consumer transactions through its Internet gateway and funding exchange network. Its patented CreditOnline(TM) and CreditConnection(R) technology links credit originators (such as automobile dealers) and borrowers with an extensive network of leading prime and non-prime lenders. Through its CMSI Systems, Inc. subsidiary, CMSI licenses credit decisioning and other automation systems and services for consumer and business credit that have been the choice of the some of the world's most demanding credit grantors. ### Press releases and other CMSI information can be found on our Web Site: http://www.cmsinc.com. This press release contains statements which may - --------------------- constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements in this press release that are not strictly historical are "forward looking" statements which are subject to the many risks and uncertainties that exist in CMSI's operations and business environment. These risks and uncertainties may cause actual results to differ materially from expected results and include, but are not limited to, the risk that CMSI's anticipated merger with The First American Corporation may not be completed and the risks detailed in CMSI's reports and other documents filed from time to time with the Securities and Exchange Commission. CREDIT MANAGEMENT SOLUTIONS, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS
December 31, December 31, 2000 1999 -------------- -------------- Assets Current assets: Cash and cash equivalents $ 1,588,133 $ 3,594,328 Investments available-for-sale 2,529,097 1,316,470 Accounts receivable, net of allowance of $339,681 and $311,583 in 2000 and 1999, respectively 6,558,672 5,724,256 Costs and estimated earnings in excess of billings on uncompleted contracts 25,779 5,891 Prepaid expenses and other current assets 362,720 474,725 ------------ ------------ Total current assets 11,064,401 11,115,670 Property and equipment: Computer equipment and software 5,775,962 5,234,084 Office furniture and equipment 1,223,036 1,458,793 Leasehold improvements 3,189,184 2,769,926 ------------ ------------ 10,188,182 9,462,803 Accumulated depreciation and amortization (4,651,211) (3,065,136) ------------ ------------ 5,536,971 6,397,667 Software development costs, net of accumulated amortization of $359,165 in 2000 and 1999 3,625,665 1,932,867 Other non-current assets 37,463 46,386 ------------ ------------ Total assets $ 20,264,500 $ 19,492,590 ============ ============ Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 2,944,574 $ 2,163,044 Accrued payroll and related expenses 1,161,131 722,389 Billings in excess of costs and estimated earnings on uncompleted contracts 367,319 101,046 Deferred revenue 3,547,108 2,920,904 Current portion of deferred tenant allowance 144,866 144,866 Short-term borrowings 798,000 798,000 Current portion of long-term debt and capital lease obligations - 25,402 ------------ ------------ Total current liabilities 8,962,998 6,875,651 Long-term debt: Deferred tenant allowance, less current portion 995,952 1,140,818 ------------ ------------ Total liabilities 9,958,950 8,016,469 Shareholders' equity: Preferred stock, $.01 par value; 1,000,000 shares authorized; no shares issued or outstanding - - Common stock, $.01 par value; 40,000,000 shares authorized; 7,824,113 and 7,689,570 shares issued and outstanding at December 31, 2000 and December 31, 1999 respectively 78,241 76,896 Additional paid-in capital 27,770,711 27,034,049 Accumulated deficit (17,543,402) (15,634,824) Total shareholders' equity 10,305,550 11,476,121 ------------ ------------ Total liabilities and shareholders' equity $ 20,264,500 $ 19,492,590 ============ ============
CREDIT MANAGEMENT SOLUTIONS, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended, Twelve Months Ended, December 31, December 31, ------------------------------ ------------------------------ 2000 1999 2000 1999 ------------- ------------- ------------- ------------- Revenues: License and software development fees $ 2,610,776 $ 2,557,446 $12,349,667 $13,164,000 Maintenance fees 1,693,479 1,362,521 6,442,967 5,059,352 Computer hardware sales 791,481 167,804 972,337 1,248,615 Service bureau revenues 1,804,838 1,153,308 5,408,256 3,303,038 ------------- ------------- ------------- ------------- 6,900,574 5,241,079 25,173,227 22,775,005 ------------- ------------- ------------- ------------- Costs of revenues: Cost of license and software development fees 1,866,584 1,558,049 7,323,375 6,504,519 Cost of maintenance fees 365,731 226,349 1,402,122 940,091 Cost of computer hardware sales 798,685 204,078 1,201,837 1,528,243 Cost of service bureau 1,387,166 891,418 4,595,746 3,038,483 ------------- ------------- ------------- ------------- 4,418,166 2,879,894 14,523,080 12,011,336 ------------- ------------- ------------- ------------- Gross profit 2,482,408 2,361,185 10,650,147 10,763,669 Other Operating Expenses: Selling, general and administrative expenses 3,443,830 4,016,405 12,011,636 12,122,557 Research and development costs 99,350 411,424 758,440 1,458,331 ------------- ------------- ------------- ------------- 3,543,180 4,427,829 12,770,076 13,580,888 ------------- ------------- ------------- ------------- Loss from operations (1,060,772) (2,066,644) (2,119,929) (2,817,219) Other income (expense): Interest expense (21,826) (32,067) (88,671) (57,426) Interest income 88,782 74,695 300,022 319,869 ------------- ------------- ------------- ------------- 66,956 42,628 211,351 262,443 ------------- ------------- ------------- ------------- Net income (loss) $ (993,816) $(2,024,016) $(1,908,578) $(2,554,776) ============= ============= ============= ============= Basic and diluted loss per common share $ (0.13) $ (0.26) $ (0.24) $ (0.33) ============= ============= ============= ============= Weighted average shares used in computation 7,821,665 7,671,698 7,798,679 7,660,897 ============= ============= ============= =============
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