-----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, H0L1ImV7PttBVJ25fK0F3Dh/xQyem3nLCWmgQWA6KCWlSA5W4iJ7VX9edqxRbPKr zceZxA+dtMEz2nhbNHnkTg== 0001047469-98-034423.txt : 19980915 0001047469-98-034423.hdr.sgml : 19980915 ACCESSION NUMBER: 0001047469-98-034423 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980616 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19980914 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRECEPT BUSINESS SERVICES INC CENTRAL INDEX KEY: 0001051285 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-PAPER AND PAPER PRODUCTS [5110] IRS NUMBER: 752487353 STATE OF INCORPORATION: TX FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: SEC FILE NUMBER: 000-23735 FILM NUMBER: 98708523 BUSINESS ADDRESS: STREET 1: 1909 WOODALL ROGERS FREEWAY STREET 2: STE 500 CITY: DALLAS STATE: TX ZIP: 75201 BUSINESS PHONE: 2147546000 MAIL ADDRESS: STREET 1: PO BOX 219008 CITY: DALLAS STATE: TX ZIP: 75201 8-K/A 1 8-K/A - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 8-K/A CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (Date of earliest event reported): June 16, 1998 ------------- Commission file number: 000-23735 --------- PRECEPT BUSINESS SERVICES, INC. (Exact name of registrant as specified in its charter) Texas 75-2487353 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1909 Woodall Rodgers Freeway, Suite 500 75201 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (214) 754-6600 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- ITEM I. ACQUISITION OR DISPOSITION OF ASSETS On June 1, 1998, Precept Business Services, Inc. ("Precept"), a Texas corporation, sold its interest in 75% of the common stock of U.S. Trucking, Inc., a Nevada corporation ("USTI"), pursuant to that certain First Amended and Restated Stock Purchase Agreement, dated as of May 29, 1998, by and among Precept Transportation Services, L.L.C., a Nevada limited liability company and a wholly owned subsidiary of the Company ("Precept Transportation"), Logistics Management LLC, a Kentuck limited liability company, Association Services, Inc., a Kentucky corporation, Roxanne Pixler, Dan Pixler and Anthony Huff. Precept Transportation had acquired its interests in USTI from U.S. Transportation Systems, Inc., a Nevada corporation on March 19, 1998. USTI operates in the long-haul trucking business. To the best knowledge of Precept and except as described below, at the time of the divestiture of its interest in USTI, there was no material relationship between (I) Logistics Management LLC, Association Services, Inc., Roxanne Pixler, Dan Pixler and Anthony Huff on the one hand and (ii) Precept, or any of its affiliates, shareholders, any director or officer of Precept, or any associate of such director or officer on the other. Prior to the aforementioned divestiture, Precept Transportation owned an interest in 75% of the common stock of USTI and Logistics Management owned the remaining 25% of the common stock of USTI. Dan Pixler is the President of USTI and Anthony Huff is the Manager of Logistics Management, LLC. The aggregate consideration received by Precept as a result of the divestiture was $1,950,000, composed of $200,000 in cash and a promissor note with an original principal balance of $1,750,000, payable in monthly installments of principal and interest equal to $15,000 commencing July 1, 1998 with the total outstanding principal and interest coming due on April 1, 2000. The note carries an interest rate equal to the prime rate of Wells Fargo Bank (Texas), N.A., adjusted annually. The consideration received by the Company in this divestiture was determined by arms-length negotiations between the parties t the First Amended and Restated Stock Purchase Agreement. ITEM 7. PRO FORMA FINANCIAL STATEMENTS OF PRECEPT PRECEPT BUSINESS SERVICES, INC. UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION Precept acquired the common stock and warrants of USTS in a transaction which is more fully described in Precept's Form S-4, which became effective February 9, 1998. This transaction ("USTS Acquisition") has been accounted for using the purchase method of accounting. The excess of purchase price over the estimated fair values has been recognized as goodwill, which will be amortized over 40 years. Effective April 13, 1998, Precept executed a Stock Purchase Agreement with InfoGraphix ("InfoGraphix Stock Purchase") in which Precept exchanged 2,058,077 shares of Precept Class A Common Stock for all of the outstanding stock of InfoGraphix. This Infographix Stock Purchase has been accounted for by the pooling method of accounting. Subsequent to the USTS Acquisition, Precept determined to divest of its 75% ownership in USTI, which represents the long-haul delivery transportation related services segment of USTS. Effective May 29, 1998, Precept completed the sale of its share of USTI. The net assets of USTI have been recorded at their estimated net realizable value of $200,000 and have been classified as net assets of discontinued operations in the Precept March 31, 1998 historical quarterly financial statements. The Unaudited Pro Forma Statement of Operations does not purport to represent what Precept's results of operations actually would have been if the events described above had occurred as of the date indicated or what results will be for any future periods. The following Unaudited Pro Forma Consolidated Balance Sheet as of March 31, 1998 gives effect to the InfoGraphix Stock Purchase as though it had occurred on that date. The Unaudited Pro Forma Consolidated Statement of Operations for the year ended June 30, 1997 (which combines USTS' financial information for the nine-months ended December 31, 1996 and six-months ended June 30, 1997; and includes InfoGraphix' financial information for the year ended September 30, 1997, which was InfoGraphix' fiscal year end) and for the nine-months ended March 31, 1998 (which combines InfoGraphix' financial information for the three-months ended September 30, 1997 and the six-months ended March 31, 1998), gives effect as if the Transactions had occurred on July 1, 1996. The Unaudited Pro Forma Consolidated Financial Information should be read in conjunction with the Consolidated Financial Statements of Precept and USTS and the Notes thereto previously included in Precept's Form S-4 filing, which became effective on February 9, 1998. PRECEPT BUSINESS SERVICES, INC. UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 1998
HISTORICAL ------------------------- PRO FORMA PRO FORMA PRO FORMA PRECEPT INFOGRAPHIX ADJUSTMENTS ADJUSTMENTS CONSOLIDATED ----------------------------------------------------- ------------ ASSETS Current assets: Cash and cash equivalents $ 1,675,824 $ - $ - $ - $ 1,675,824 Accounts receivable, net of allowance 10,147,976 4,264,473 - - 14,412,449 Accounts receivable from affiliates 763,724 196,791 - - 960,515 Notes and other receivables 795,680 - - - 795,680 Inventory 4,850,407 232,806 - - 5,083,213 Assets held for sale 748,333 - - - 748,333 Income taxes refundable 511,845 - - - 511,845 Deferred income taxes 1,090,886 - - - 1,090,886 Net assets of discontinued ops. 1,092,416 - - - 1,092,416 Prepaid and other 970,468 59,412 - - 1,029,880 ---------------------------------------------------- ----------- Total current assets 22,647,559 4,753,482 - - 27,401,041 Property, plant & equipment, net 4,692,407 720,365 - - 5,412,772 Intangible assets, net 18,856,554 - - - 18,856,554 Deferred income taxes 615,019 - - - 615,019 Other assets 2,168,521 334,365 - - 2,502,886 ---------------------------------------------------- ----------- Total assets $48,980,060 $5,808,212 $ - $ - $54,788,272 ---------------------------------------------------- ----------- ---------------------------------------------------- ----------- LIABILITIES Current Liabilities: Current portion of long term debt and capitalized leases $ 480,785 $ - $ - $ - $ 480,785 Cash overdraft - 198,220 - - 198,220 Note payable and line of credit 847,167 1,750,000 - - 2,597,167 Accounts payable and accrued expenses 14,384,193 2,072,293 - - 16,456,486 ---------------------------------------------------- ----------- Total current liabilities 15,712,145 4,020,513 - - 19,732,658 Due to related party 965,059 - - - 965,059 Long term obligations 14,086,114 - - - 14,086,114 ---------------------------------------------------- ----------- Total liabilities 30,763,318 4,020,513 - - 34,783,831 Shareholder's equity: Common stock 460,913 118,930 (98,349) (98,349)A 481,494 Additional paid in capital 21,650,143 48,349 48,349 A 21,698,492 Retained earnings (deficit) (3,703,043) 1,718,769 - - (1,984,274) ---------------------------------------------------- ----------- 18,408,013 1,837,699 (50,000) (50,000) 20,195,712 Treasury stock (191,271) (50,000) 50,000 50,000 A (191,271) ---------------------------------------------------- ----------- Total shareholders' equity 18,216,742 1,787,699 - - 20,004,441 ---------------------------------------------------- ----------- Total liabilities & shareholders' equity $48,980,060 $5,808,212 $ - $ - $54,788,272 ---------------------------------------------------- ----------- ---------------------------------------------------- -----------
See accompanying notes to unaudited pro forma consolidated financial statements PRECEPT BUSINESS SERVICES, INC. UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS NINE MONTHS ENDED MARCH 31, 1998 9/10/98
B HISTORICAL Black & White ------------------------------------ Cab B C Pro Forma PRO FORMA PRECEPT USTS INFOGRAPHIX Company BancPro US Trucking Adjustments CONSOLIDATED -------------------------------------------------------------------------------------- ------------ REVENUES: Business products 51,516,093 - 18,487,920 - - - - 70,004,013 Transportation 5,535,704 23,647,759 - (114,413) (1,080,564) (17,437,887) - 10,550,599 Other - - - - - - - - ----------- -------------------------------------------------------------------- ----------- Total revenues 57,051,797 23,647,759 18,487,920 (114,413) (1,080,564) (17,437,887) - 80,554,612 EXPENSES: Cost of goods sold 34,762,816 - 12,352,412 - - - - 47,115,228 Selling, general and administrative 20,355,433 31,523,683 6,074,082 (109,819) (945,978) (16,629,310) - 40,268,091 Depreciation and amortization 1,102,454 1,562,069 153,388 (2,625) (29,884) (1,192,475) (6,095) D 1,586,832 ----------- -------------------------------------------------------------------- ----------- Total expenses 56,220,703 33,085,752 18,579,882 (112,444) (975,862) (17,821,785) (6,095) 88,970,151 Operating income (loss) 831,094 (9,437,993) (91,962) (1,969) (104,702) 383,898 6,095 (8,415,539) Other income (expenses): Interest expense (486,937) (1,045,376) (66,562) - 25,000 548,271 - (1,025,604) Interest income - - - - - - - - Other - - - - - - - - -------------------------------------------------------------------------------------- ------------ Total other expenses (486,937) (1,045,376) (66,562) - 25,000 548,271 - (1,025,604) Income (loss) from continuing operations before income taxes 344,157 (10,483,369) (158,524) (1,969) (79,702) 932,169 6,095 (9,441,143) Income tax provision 137,663 - (63,410) (788) (31,881) - 2,438 E 44,023 ----------- -------------------------------------------------------------------- ----------- Net income (loss) from continuing operations 206,494 (10,483,369) (95,114) (1,181) (47,821) 932,169 3,657 (9,485,166) ----------- -------------------------------------------------------------------- ----------- ----------- -------------------------------------------------------------------- ----------- Net income (loss) per share - basic $ 0.01 $ (0.20) ----------- ----------- ----------- ----------- Weighted average common shares outstanding - basic 36,422,527 47,670,577 ----------- ----------- ----------- ----------- Net income (loss) per share - diluted $ 0.01 $ (0.20) ----------- ----------- ----------- ----------- Weighted average common shares outstanding - diluted 37,148,346 48,612,178 ----------- ----------- ----------- -----------
See accompanying notes to unaudited pro forma consolidated financial statements PRECEPT BUSINESS SERVICES, INC. UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS YEAR ENDED JUNE 30, 1997 9/10/98
B HISTORICAL Black & --------------------------------------- B White Cab B Precept USTS Infographix BancPro Company ATAB ---------------------------------------------------------------------------- REVENUES: Business products 70,778,087 - 20,966,892 - - - Transportation 6,565,838 29,930,630 - (1,917,875) (284,628) (2,222,112) ---------------------------------------------------------------------------- Total revenues 77,343,925 29,930,630 20,966,892 (1,917,875) (284,628) (2,222,112) EXPENSES: Cost of goods sold 50,157,418 20,261,902 14,013,773 (1,221,376) - (838,784) Selling, general and administrative 24,350,230 11,601,558 6,011,623 (231,733) (404,675) (829,312) Depreciation and amortization 1,498,473 1,982,274 169,116 (39,551) (5,413) (65,671) ---------------------------------------------------------------------------- Total Expenses 76,006,121 33,845,734 20,194,512 (1,492,660) (410,088) (1,733,767) Operating Income (loss) 1,337,804 (3,915,104) 772,380 (425,215) 125,460 (488,345) Other income (expenses): Interest expense (425,314) (903,458) (66,401) - (1,406) - Interest income - 579,089 - - - - Other - (280,418) (5,954) - - - ---------------------------------------------------------------------------- Total Other Expenses (425,314) (604,787) (72,355) - (1,406) - Income (loss) from continuing operations before income taxes 912,490 (4,519,891) 700,025 (425,215) 124,054 (488,345) Income tax provision 380,884 750,000 280,010 (170,086) 49,622 (195,338) ---------------------------------------------------------------------------- Net income (loss) from continuing operations 531,606 (5,269,891) 420,015 (255,129) 74,432 (293,007) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Net income (loss) per share - basic $ 0.02 ----------- ----------- Weighted average common shares outstanding - basic 33,986,503 ----------- ----------- Net income (loss) per share - diluted $ 0.01 ----------- ----------- Weighted average common shares outstanding - diluted 36,324,852 ----------- ----------- C Pro Forma PRO FORMA US Trucking Adjustments CONSOLIDATED --------------------------- ------------ REVENUES: Business products - - 91,744,979 Transportation (19,715,659) - 12,356,194 Total revenues (19,715,659) - 104,101,173 ------------------------- ----------- EXPENSES: Cost of goods sold - - 82,372,933 Selling, general and administrative (20,027,144) - 20,470,547 Depreciation and amortization (876,515) (484,434) D 2,178,279 ------------------------- ----------- Total Expenses (20,903,659) (484,434) 105,021,759 Operating Income (loss) 1,188,000 484,434 (920,586) Other income (expenses): Interest expense 238,188 - (1,158,391) Interest income (438) - 578,651 Other (160,460) - (446,832) ------------------------- ----------- Total Other Expenses 77,290 - (1,026,572) Income (loss) from continuing operations before income taxes 1,265,290 484,434 (1,947,158) Income tax provision 460,120 193,774 E 1,748,986 ------------------------- ----------- Net income (loss) from continuing operations 805,170 290,660 (3,696,144) ------------------------- ----------- ------------------------- ----------- Net income (loss) per share - basic $ (0.08) ------------ ------------ Weighted average common shares outstanding - basic 45,657,080 ------------ ------------ Net income (loss) per share - diluted $ (0.08) ------------ ------------ Weighted average common shares outstanding - diluted 47,995,429 ------------ ------------
SEE ACCOMPANYING NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS PRECEPT BUSINESS SERVICES, INC. NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS (A) Pro forma adjustments are made to eliminate the Common stock and Treasury stock of InfoGraphix and to record the issuance of 2,058,077 shares of Precept Class A Common Stock ($0.01 par value) in conjunction with the InfoGraphix Stock Purchase. (B) Pro forma adjustments are made to remove the results of operations of BancPro, ATAB and Black & White Cab Company from the historical results of operations of USTS. These operations were not acquired as part of the USTS Acquisition. (C) Pro forma adjustments are made to remove the results of operations USTI as a result of the sale of USTI by Precept. (D) Pro forma adjustments to reflect the change in depreciation and amortization expense as a result of the transactions described previously are as follows:
Nine Months Ended March 31, Year Ended June 1998 30, 1997 --------------------------------- Historical depreciation and amortization expense recorded by USTS, after reductions for BancPro, ATAB, Black & White Cab Company, and USTI $(337,085) $(995,124) Depreciation expense relating to the fair value of property, plant and equipment from the Transactions to be amortized over periods ranging from 1 to 15 years (a) 104,055 208,110 Amortization expense related to goodwill resulting from the Transactions, to be amortized over 40 years 226,935 302,580 --------- --------- Pro forma adjustment to depreciation and amortization $ (6,095) $(484,434) --------- --------- --------- ---------
(a) Property, plant and equipment to be acquired (with applicable estimated average remaining useful lives) include highway coaches (8 years), school buses, and other revenue equipment (4 years) and other depreciable assets (7 years). (E) The pro forma adjustment to income taxes is to apply the effective income tax rate (40%) to net adjustments made to income (loss) from continuing operations. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly issued this report to be signed on its behalf by the undersigned hereunto duly authorized. PRECEPT BUSINESS SERVICES, INC. September 11, 1998 By: --------------------------------------------- William W. Solomon, Jr. Senior Vice President, Chief Financial Officer (Principal Financial and Accounting Officer) -----END PRIVACY-ENHANCED MESSAGE-----