-----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, QalXe1NX1NLBSNHgDCUT1Y588tm0k2HF4gvmv0Y3xCqBztqfKv0NWSd40nq92pjg n+8TwVPXnhD9/tKpm5GEig== 0000950103-98-000123.txt : 19980217 0000950103-98-000123.hdr.sgml : 19980217 ACCESSION NUMBER: 0000950103-98-000123 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971113 ITEM INFORMATION: FILED AS OF DATE: 19980211 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: LIBERTY CORP CENTRAL INDEX KEY: 0000059229 STANDARD INDUSTRIAL CLASSIFICATION: 6311 IRS NUMBER: 570507055 STATE OF INCORPORATION: SC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: SEC FILE NUMBER: 001-05846 FILM NUMBER: 98532665 BUSINESS ADDRESS: STREET 1: P O BOX 789 STREET 2: 2000 WADE HAMPTON BLVD CITY: GREENVILLE STATE: SC ZIP: 29615 BUSINESS PHONE: 8032688283 MAIL ADDRESS: STREET 1: P O BOX 789 STREET 2: WADE HAMPTON BLVD CITY: GREENVILLE STATE: SC ZIP: 29602 8-K/A 1 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) November 13, 1997 ----------------------- THE LIBERTY CORPORATION - - ------------------------------------------------------------------------ (Exact Name of Registrant as Specified in Charter)
South Carolina 1-5846 57-0507055 - - ---------------------------------------------- ------------------------ ------------------------------------ (State or other jurisdiction of incorporation) (Commission File Number) (I.R.S. Employer Identification No.) 2000 Wade Hampton Boulevard; Greenville, South Carolina 29602 - - ---------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (864) 609-8256 ------------------------- ------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) The Liberty Corporation hereby amends its Current Report on Form 8-K dated November 25, 1997 to amend and restate the "Pro Forma Condensed Financial Statements" filed as Exhibit 99.1 to this report. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits (b) Exhibits. Exhibit 10.1 Stock Purchase Agreement by and among Fortis, Inc., Interfinancial Inc., The Liberty Corporation, Liberty Life Insurance Company, and The Liberty Marketing Corporation.(*) - - ------------ (*) Previously filed. Exhibit 99.1 Pro Forma Condensed Financial Statements of The Liberty Corporation and Subsidiaries 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. Dated: February 11, 1998 THE LIBERTY CORPORATION By: /s/ Martha G. Williams ------------------------------- Martha G. Williams Vice President, General Counsel and Secretary By: /s/ Kenneth W. Jones ------------------------------- Kenneth W. Jones Corporate Controller INDEX TO EXHIBITS Exhibit Number Designation - - ------- ----------- 10.1 Stock Purchase Agreement by and among Fortis, Inc., Interfinancial Inc., The Liberty Corporation, Liberty Life Insurance Company, and The Liberty Marketing Corporation. (1) 99.1 Pro Forma Condensed Financial Statements of The Liberty Corporation and Subsidiaries. - - ---------- (1) Previously filed. EX-99.1 2 Exhibit 99.1 THE LIBERTY CORPORATION AND SUBSIDIARIES PRO FORMA CONDENSED FINANCIAL STATEMENTS OF THE LIBERTY CORPORATION AND SUBSIDIARIES The following unaudited pro forma condensed statements of income for the nine months ended September 30, 1997 and the year ended December 31, 1996, and the unaudited pro forma condensed balance sheet as of September 30, 1997 give effect to the stock purchase transaction whereby Pierce National Life Insurance Company will be sold to Fortis, Inc. The condensed statements of income were prepared assuming the sale occurred January 1, 1996, and the condensed balance sheet was prepared assuming the sale occurred September 30, 1997. The unaudited pro forma condensed financial statements presented do not purport to represent what the results of operations or financial condition would actually have been if the pro forma adjustments had occurred on the dates referred to above or to be indicative of the future results of operations or financial position of The Liberty Corporation. The pro forma adjustments are based on available information and certain assumptions the Registrant believes are reasonable. The pro forma condensed financial statements should be read in conjunction with the audited financial statements and notes thereto as included in The Liberty Corporation 1996 Annual Report on Form 10-K. THE LIBERTY CORPORATION AND SUBSIDIARIES PRO FORMA CONDENSED INCOME STATEMENT FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997
(a) Sale of Other 1997 Pierce Pro Forma 1997 As Reported National Adjustments Pro Forma ----------- -------- ----------- --------- (In 000's, except per share data) (Unaudited) Revenues Insurance premiums and policy charges......... $263,807 (79,744) $184,063 Broadcasting revenues......................... 100,753 100,753 Net investment income......................... 118,454 (41,658) 2,071 (b) 78,867 Service contract revenues..................... 5,302 7,500 (c) 12,802 Realized investment gains..................... 8,739 2,353 11,092 ------- ------- ------ ------- Total Revenues............................. 497,055 (119,049) 9,571 387,577 ------- ------- ------ ------- Expenses Policyholder benefits......................... 172,293 (74,978) 97,315 Insurance commissions......................... 59,262 (7,679) 51,583 General insurance expenses.................... 50,584 (13,173) 7,950 (c)(f) 45,361 Amortization of deferred acquisition costs.... 33,105 (8,001) 25,104 Broadcasting expenses......................... 70,282 70,282 Interest expense.............................. 10,093 (5,542) (d) 4,551 Other expenses................................ 14,470 14,470 ------- ------- ------ ------- 410,089 (103,831) 2,408 308,666 ------- ------- ------ ------- Total Expenses............................. Income before income taxes.................... 86,966 (15,218) 7,163 78,911 Provision for income taxes.................... 30,472 (5,030) 2,087 (e) 27,529 ------- ------- ------ ------- Net Income.................................... $ 56,494 (10,188) 5,076 $51,382 ======= ======= ====== ====== Preferred Dividends........................... $ 1,976 $ 1,976 Net Income Available to Common Shares......... $ 54,518 $49,406 Weighted Average Common Shares................ 21,130 21,130 Earnings Per Common Share..................... $ 2.58 $ 2.34
See notes to condensed pro forma income statement. THE LIBERTY CORPORATION AND SUBSIDIARIES PRO FORMA CONDENSED INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 1996
(a) Sale of Other 1996 Pierce Pro Forma 1996 As Reported National Adjustments Pro Forma ----------- -------- ----------- --------- (In 000's, except per share data) (Unaudited) Revenues Insurance premiums and policy charges........ $321,371 (104,653) $216,718 Broadcasting revenues........................ 137,336 137,336 Net investment income........................ 155,221 (52,176) 2,761 (b) 105,806 Service contract revenues.................... 7,751 10,000 (c) 17,751 Realized investment gains.................... (2,582) (672) (3,254) ------- ------- ------ ------- Total Revenues............................ 619,097 (157,501) 12,761 474,357 ------- ------- ------ ------- Expenses Policyholder benefits........................ 218,751 (95,788) 122,963 Insurance commissions........................ 66,483 (11,931) 54,552 General insurance expenses................... 73,790 (21,465) 10,600 (c)(f) 62,925 Amortization of deferred acquisition costs... 73,967 (13,029) 60,938 Broadcasting expenses........................ 94,867 94,867 Interest expense............................. 15,139 (7,390) (d) 7,749 Other expenses............................... 19,601 19,601 ------- ------- ------ ------- Total Expenses............................ 562,598 (142,213) 3,210 423,595 ------- ------- ------ ------- Income before income taxes................... 56,499 (15,288) 9,551 50,762 Provision for income taxes................... 19,159 (5,643) 2,783 (e) 16,299 ------- ------- ------ ------- Net Income................................... $ 37,340 (9,645) 6,768 $34,463 ======= ======= ====== ====== Preferred Dividends.......................... $ 2,652 $2,652 Net Income Available to Common Shares........ $ 34,688 $31,811 Weighted Average Common Shares............... 20,903 20,903 Earnings Per Common Share.................... $ 1.66 $ 1.52 See notes to condensed pro forma income statement.
THE LIBERTY CORPORATION AND SUBSIDIARIES NOTES TO PRO FORMA CONDENSED INCOME STATEMENTS (a) The pro forma condensed income statement reflects, for the periods presented, the exclusion of the actual reported amounts for Pierce National Life Insurance Company. (b) The pro forma condensed income statement reflects, for the periods presented, the earnings, net of investment expenses, on assets currently owned by Pierce that will be acquired by The Liberty Corporation, or its subsidiaries, prior to the sale of Pierce. The adjustment assumes approximately $87 million of assets owned by Pierce are to be acquired by the Company, or its subsidiaries, prior to closing. Approximately $39 million of the assets to be retained are expected to be purchased from Pierce by Liberty Life Insurance Company ("Liberty Life"), a wholly- owned subsidiary of the Registrant. Funds for the assets to be purchased by Liberty Life are expected to come from a combination of cash and proceeds from sales of other securities currently held by Liberty Life earning a comparable yield to the assets being purchased. The remaining $48 million of assets to be purchased from Pierce will initially be acquired by the Registrant and, for the purposes of the pro forma financial information, the value of the assets to be acquired are assumed to reduce the proceeds from the sale of Pierce that will be available to repay debt. (c) The pro forma condensed income statement reflects, for the periods presented, the revenues and expenses associated with the five year service contract between Liberty Insurance Services Corporation and Fortis, Inc., whereby Liberty Insurance Services Corporation will provide administrative services for Pierce and United Family Life Insurance Company (a subsidiary of Fortis, Inc.). (d) The pro forma condensed income statement reflects, for the periods presented, the interest savings resulting from the reduction in bank debt using the net proceeds from the sale of Pierce National. (e) The pro forma condensed income statement reflects, for the periods presented, the tax effects of the adjustments made using a 35% effective tax rate. Additionally, the pro forma income statement assumes a tax credit of approximately $.5 million associated with certain investments that will be retained by Liberty Corporation as described in footnote (b) above. (f) The pro forma condensed income statement reflects, for the periods presented, an estimate of the expenses that will remain in the Company subsequent to the sale of Pierce, that previously had been absorbed by Pierce. Actual future expenses may be higher or lower than those reflected in the pro forma income statements. THE LIBERTY CORPORATION AND SUBSIDIARIES PRO FORMA CONDENSED BALANCE SHEET September 30, 1997
As (a) Pro Reported Sale Assets Forma 9/30/97 Transaction Retained 9/30/97 -------- ----------- -------- ------- (In 000's) (Unaudited) Investments Fixed Maturity Securities-available for sale.. $1,637,923 (711,472) 25,799 (c) $ 952,250 Equity Securities............................. 75,563 (2,479) 73,084 Mortgage Loans................................ 237,464 (47,456) 35,891 (c) 225,899 Investment in Real Estate..................... 54,208 (1,497) 245 (c) 52,956 Loans to Policyholders........................ 100,590 (8,671) 91,919 Other Long Term Investments................... 22,738 (5,895) 5,893 (c) 22,736 Short Term Investments........................ 250 250 --------- ------- ------ --------- Total Investments............................ 2,128,736 (777,470) 67,828 1,419,094 ========= ======= ====== ========= Cash.......................................... 36,852 (5,916) (20,000) 10,936 Accrued Investment Income..................... 21,527 (8,389) 13,138 Receivables................................... 62,867 (4,958) 57,909 Receivable from Reinsurers.................... 280,113 (236) 279,877 Deferred Acquisition Costs.................... 337,950 (56,514) 281,436 Buildings & Equipment......................... 74,742 74,742 Intangibles Related to Television Operations.. 91,055 91,055 Goodwill related to Insurance Acquisitions.... 34,381 (10,308) 24,073 Other Assets.................................. 49,576 (1,520) 48,056 --------- ------- ------ --------- TOTAL ASSETS................................. $3,117,799 (865,311) 47,828 $2,300,316 ========= ======= ====== ========= Liabilities Policy Liabilities............................ 1,949,813 (623,788) 1,326,025 Notes Mortgages & Other Debt.................. 199,914 (170,980) (b) 47,828 (c) 76,762 Accrued Income Taxes.......................... 2,671 2,194 4,865 Deferred Income Taxes......................... 171,557 (36,140) 135,417 Accounts Payable & Accrued Expenses........... 103,030 609 103,639 Other Liabilities............................. 3,834 3,834 --------- ------- ------ --------- TOTAL LIABILITIES............................ 2,430,819 (828,105) 47,828 1,650,542 ========= ======= ====== ========= Redeemable Preferred Stock.................... 44,688 44,688 Convertible Preferred Stock................... 20,999 20,999 Common Stock.................................. 20,504 20,504 Capital in Excess of Par...................... 154,717 154,717 Unearned Stock Compensation................... (11,921) (11,921) Net Unrealized Investment Gains .............. 51,220 (20,513) 30,707 Cumulative Foreign Currency Translation Adjustment................................... 826 (826) 0 Retained Earnings............................. 405,947 (15,867) 390,080 --------- ------- ------ --------- TOTAL SHAREHOLDERS EQUITY ................... 642,292 (37,206) 0 605,086 --------- ------- ------ --------- PREFERRED STOCK AND TOTAL LIABILITIES, REDEEMABLE SHAREHOLDERS EQUITY.......................... $3,117,799 (865,311) 47,828 $2,300,316 ========= ======= ====== ========= See notes to pro forma condensed balance sheet.
THE LIBERTY CORPORATION AND SUBSIDIARIES NOTES TO PRO FORMA CONDENSED BALANCE SHEET (a) The pro forma condensed balance sheet reflects the effect of the sale of Pierce on the consolidated assets and liabilities of The Liberty Corporation. Additionally, the effect on consolidated equity related to net unrealized investment gains associated with fixed maturity and equity securities and the cumulative foreign currency translation adjustment are reported as an adjustment to consolidated equity. (b) The pro forma condensed balance sheet assumes the repayment of debt using the proceeds (net of assets to be acquired, expenses and income taxes related to the sale) from the sale of Pierce. (c) The pro forma condensed balance sheet reflects the purchase of approximately $87 million of assets currently owned by Pierce. Approximately $48 million of assets will initially be acquired by the Registrant. The remainder will be purchased by Liberty Life Insurance Company (a wholly-owned subsidiary of the Registrant) using a combination of cash and proceeds from sales of other securities earning a comparable yield to the assets being purchased. -----END PRIVACY-ENHANCED MESSAGE-----