-----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, Q/5zfX17/ZrvTKV4goMHfve4eoOZ3tU9gcRLFAjGZzPq50Y+cJ5VPpvVtAbQcnmX wZrQulFEKASCnRwEKVBbUw== 0000928385-97-001087.txt : 19970701 0000928385-97-001087.hdr.sgml : 19970701 ACCESSION NUMBER: 0000928385-97-001087 CONFORMED SUBMISSION TYPE: 10-K/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970630 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: SYLVAN LEARNING SYSTEMS INC CENTRAL INDEX KEY: 0000912766 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EDUCATIONAL SERVICES [8200] IRS NUMBER: 521492296 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-22844 FILM NUMBER: 97633037 BUSINESS ADDRESS: STREET 1: 1000 LANCASTER ST CITY: BALTIMORE STATE: MD ZIP: 21202 BUSINESS PHONE: 4108438000 MAIL ADDRESS: STREET 1: 1000 LANCASTER ST CITY: BALTIMORE STATE: MD ZIP: 21202 10-K/A 1 FORM 10-K/A SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K/A [X] Annual Report pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 for the fiscal year ended DECEMBER 31, 1996 ----------------- or [ ] Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to ---------- . ---------- COMMISSION FILE NUMBER 0-22844 ------- SYLVAN LEARNING SYSTEMS, INC. ------------------------------------------------------ (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) MARYLAND 52-1492296 - ------------------------------- ------------------- (STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.) 1000 LANCASTER STREET, BALTIMORE, MARYLAND 21202 - ------------------------------------------ ---------- (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (410)843-8000 ------------- SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: NAME OF EACH EXCHANGE ON TITLE OF EACH CLASS WHICH REGISTERED - ---------------------------- ------------------------ COMMON STOCK, PAR VALUE $.01 NASDAQ SECURITIES REGISTERED PURSUANT TO THE SECTION 12(g) OF THE ACT: NONE Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X]. No [ ]. Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ] The aggregate market value of voting Common Stock held by non-affiliates of the registrant was approximately $453 million as of March 17, 1997. The registrant had 24,516,623 shares of Common Stock outstanding as of March 17, 1997. ITEM 14(a)(1) OF THE REGISTRANT'S FORM 10-K IS HEREBY AMENDED TO READ AS - ------------------------------------------------------------------------ FOLLOWS: - -------- ITEM 14(a)(1) INDEX TO FINANCIAL STATEMENTS
PAGE REFERENCE FROM FORM 10-K --------------- THE COMPANY: Report of Independent Auditors................................................................ 30 Consolidated Balance Sheets as of December 31, 1995 and December 31, 1996..................... 31 Consolidated Statements of Operations for the years ended December 31, 1994, 1995 and 1996....................................................................................... 33 Consolidated Statements of Stockholders' Equity for the years ended December 31, 1994, 1995 and 1996.............................................................................. 34 Consolidated Statements of Cash Flows for the years ended December 31, 1994, 1995 and 1996.... 35 Notes to Consolidated Financial Statements.................................................... 36 Audited Financial Statements of Sylvan Learning Systems, Inc. 401(k) Retirement Savings Plan for the years ended December 31, 1996 and 1995............................................. 62 ITEM 14(a) 2 - FINANCIAL STATEMENT SCHEDULE: Schedule II - Valuation and Qualifying Accounts............................................... 58
2 Report of Independent Auditors Sylvan Learning Systems, Inc. 401(k) Retirement Savings Plan Baltimore, Maryland We have audited the accompanying statements of net assets available for benefits of the Sylvan Learning Systems, Inc. 401(k) Retirement Savings Plan as of December 31, 1996 and 1995, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Sylvan Learning Systems, Inc. 401(k) Retirement Savings Plan as of December 31, 1996 and 1995, and the changes in its net assets available for benefits for the years then ended, in conformity with generally accepted accounting principles. /s/ Ernst & Young LLP ---------------------- Ernst & Young LLP June 20, 1997 Sylvan Learning Systems, Inc. 401(k) Retirement Savings Plan Statements of Net Assets Available for Benefits
DECEMBER 31, 1996 1995 ---------- ---------- ASSETS Investments, at fair value: Sylvan Learning Systems, Inc. common stock $1,165,770 $ 339,626 Mutual funds: MFS Emerging Growth Fund - 207,753 Euro Pacific Growth Fund - 117,220 Fidelity Advisor Equity Portfolio Growth Fund - 216,837 Fidelity Advisor Growth Opportunities Portfolio - 225,190 American Balanced Fund - 165,791 Alex Brown Cash Reserve Fund - 59,668 Growth and Income Fund 714,295 - Putnam Income Fund 212,707 - Putnam Vista Fund 649,587 - Putnam OTC and Emerging Growth Fund 781,279 - Putnam International Growth Fund 562,922 - Putnam Stable Value Fund 622,222 - Participant loans 43,708 28,315 ---------- ---------- 4,752,490 1,360,400 Unallocated insurance contract, at contract value: First Colony Group Deposit Administration Contract - 142,688 ---------- ---------- Total investments 4,752,490 1,503,088 Receivables: Employer's contribution 247,953 - Participants' contributions 168,185 77,849 Total receivables 416,138 77,849 ---------- ---------- Net assets available for benefits $5,168,628 $1,580,937 ========== ==========
See accompanying notes. Sylvan Learning Systems, Inc. 401(k) Retirement Savings Plan Statements of Changes in Net Assets Available for Benefits
YEAR ENDED DECEMBER 31 1996 1995 ---------- ---------- Investment income: Interest $ 15,088 $ 31,246 Dividends 244,033 14,335 ---------- ---------- 259,121 45,581 READS Merger 804,381 - Employee salary deferral contributions 2,307,698 536,825 Employee rollover contributions 262,750 236,385 ---------- ---------- Total additions 3,633,950 818,791 Participant withdrawals (237,393) (13,251) Net realized and unrealized appreciation in fair value of investments 191,134 245,190 ---------- ---------- Net increase 3,587,691 1,050,730 Net assets available for benefits at beginning of year 1,580,937 530,207 ---------- ---------- Net assets available for benefits at end of year $5,168,628 $1,580,937 ========== ==========
See accompanying notes. Sylvan Learning Systems, Inc. 401(k) Retirement Savings Plan Notes to Financial Statements 1. ASSET TRANSFER Effective July 1, 1996, Sylvan Learning Systems, Inc. (the "Company") appointed a new trustee, Putnam Investments, to hold all plan assets. The net assets of Sylvan Learning Systems, Inc. 401(k) Retirement Savings Plan (the "Plan") held by ATR, Inc., the previous trustee, totaling $3,641,426 were transferred to Putnam Investments as of July 1, 1996. Certain plan provisions were amended and restated in accordance with this transfer. 2. SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING The financial statements of the Company's Plan are prepared using the accrual method of accounting. Participant withdrawals are recorded when paid. Amounts allocated to terminated participants at December 31, 1996 and 1995 were $367,679 and $25,264, respectively. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets during the period. Actual results could differ from those estimates. Certain 1995 amounts have been reclassified to conform to 1996 presentation. INVESTMENT VALUATION Investments are stated at fair value except for the unallocated insurance contract which was valued at contract value. Sylvan Learning Systems, Inc. common stock is valued at the last reported sales price on the last business day of the plan year. Mutual funds are reported at current redemption value. Participant loans are carried at their unpaid principal balance which represents fair value. Sylvan Learning Systems, Inc. 401(k) Retirement Savings Plan Notes to Financial Statements (continued) 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) INVESTMENT VALUATION (CONTINUED) The unallocated insurance contract with First Colony Group Deposit Administration was valued at contract value as estimated by the insurance company. Contract value represents contributions made under contract, plus interest at the contract rate, less funds used to pay withdrawals and to pay for the insurance company's administrative expenses. Realized gains or losses on the sale of investments are computed as the difference between the proceeds received and the average cost of investments held. The change in the difference between cost and fair value, including realized gains and losses, is included in the statements of changes in net assets available for benefits as net appreciation or depreciation in the fair value of investments. ADMINISTRATION EXPENSES All costs and expenses incurred in connection with the administration of the Plan are paid by the Company. 3. PLAN DESCRIPTION The following description of the Plan provides only general information. Participants should refer to the Summary Plan Description for a more complete ------------------------ description of the Plan's provisions. Copies of this summary are available from the Company's Human Resources Department. GENERAL The Plan is a defined contribution plan covering substantially all employees of the Company and, effective November 1, 1996, of Caliber Learning Network, Inc. (a corporate joint venture 10% owned by the Company) who are age twenty-one or older and have completed one year of service. It is subject to the provisions of Employee Retirement Income Security Act of 1974 (ERISA). PLAN MERGERS In connection with the Company's acquisition of Remedial Education Diagnostic Corporation, Inc., the Remedial Education Diagnostic Corporation Retirement Plan (the "READS Plan") was merged into the Plan effective October 1, 1995. The READS Plan's net assets of $804,381 was transferred into the Plan on February 1, 1996. Sylvan Learning Systems, Inc. 401(k) Retirement Savings Plan Notes to Financial Statements (continued) 3. PLAN DESCRIPTION (CONTINUED) PLAN MERGERS (CONTINUED) In connection with the Company's acquisition of The PACE Group, Inc., The PACE Group, Inc. 401(k) Plan (the "PACE Plan") was merged into the Plan effective December 31, 1995. The PACE Plan's net assets have not been transferred into the Plan as of the date of this report. CONTRIBUTIONS Participants may contribute up to 15% of their pretax annual compensation, subject to certain annual limitations imposed by the Internal Revenue Code. In addition, employees may rollover distributions received from other plans. The Company makes a discretionary matching contribution equal to a percentage of the amount of the compensation that the participant elected to contribute up to a maximum of 6% of the participant's compensation. Additional discretionary contributions may be made at the option of the Company. The matching contribution percentage for 1996 was 25% of the participant contribution. No matching contribution was made in 1995. Each participant account is credited with the participant's contribution and an allocation of (a) the Company's contribution, (b) Plan earnings, and (c) forfeitures of terminated participants' nonvested accounts. Allocations are based on participant earnings or account balances, as defined. VESTING Participants are immediately vested in their contributions plus earnings thereon. Vesting in the Company's discretionary contributions, if any, plus earnings thereon is based on years of continuous service at a rate of 25 percent per year in years two through five. A participant is 100 percent vested after five years of credited service. Sylvan Learning Systems, Inc. 401(k) Retirement Savings Plan Notes to Financial Statements (continued) 3. PLAN DESCRIPTION (CONTINUED) INVESTMENTS Upon enrollment in the Plan, a participant may direct employee contributions in any of the available investment options. At December 31, 1996, the following investment options were available: Sylvan Learning Systems, Inc. common stock and the following Putnam Funds: Growth and Income Fund, Income Fund, Vista Fund, OTC and Emerging Growth Fund, International Growth Fund, and Stable Value Fund. Participants have the opportunity to change their investment options daily. PARTICIPANT LOANS Participants may borrow from their account balances a minimum of $1,000 up to a maximum of $50,000 or 50% of their vested account balance. Principal and interest are repaid ratably through payroll deductions over loan terms which generally do not exceed five years. Hardship distributions are also permitted from a participant's account. PAYMENT OF BENEFITS On termination of service, a participant may receive a lump sum amount equal to the vested value of his or her account, or upon death, disability, or retirement, elect to receive periodic installments in accordance with plan provisions. PLAN TERMINATION Although it has not expressed any intent to do so, the Company has the right to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. 4. INVESTMENTS During 1996 and 1995 the Plan's investments (including investments bought, sold and held during the year) appreciated (depreciated) in fair value by $191,134 and $245,190 respectively, as follows: Sylvan Learning Systems, Inc. 401(k) Retirement Savings Plan Notes to Financial Statements (continued) 4. INVESTMENTS (CONTINUED)
YEAR ENDED DECEMBER 31, 1996 ---------------------------------------------- NET APPRECIATION FAIR VALUE IN FAIR VALUE AT DURING YEAR END OF YEAR ---------------- ---------------- Fair value as determined by quoted market price: Sylvan Learning Systems, Inc. common stock $103,896 $1,165,770 * Mutual funds: Putnam Growth and Income Fund (25,752) 714,295 * Putnam Income Fund (1,686) 212,707 Putnam Vista Fund (31,676) 649,587 * Putnam OTC and Emerging Growth Fund (66,898) 781,279 * Putnam International Growth Fund 11,655 562,922 * Putnam Stable Value Fund - 622,222 * Net appreciation of assets through date of transfer 201,595 Fair value as estimated by Plan Administrator: Participant loans - 43,708 ---------------- ---------------- $191,134 $4,752,490 ================ ================
YEAR ENDED DECEMBER 31, 1995 ---------------------------------------------- NET APPRECIATION FAIR VALUE IN FAIR VALUE AT DURING YEAR END OF YEAR ---------------- ---------------- Fair value as determined by quoted market price: Sylvan Learning Systems, Inc. common stock $ 108,695 $ 339,626 * Mutual funds: MFS Emerging Growth 39,512 207,753 * Euro Pacific Growth Fund 8,043 117,220 * Fidelity Advisor Equity Portfolio Growth Fund 30,471 216,837 * Fidelity Advisor Growth Opportunities Portfolio 32,927 225,190 * American Balanced Fund 17,287 165,791 * Alex Brown Cash Reserve Fund 59,668 Growth Fund of America 3,564 - Investment Company of America 4,691 - Fair Value as estimated by Plan Administrator: Participant loans - 28,315 Contract value as determined by insurance company: First Colony Group Deposit Administration Contract - 142,688 * ---------------- ---------------- $ 245,190 $ 1,503,088 ================ ================
* Denotes individual investments that represent 5% or more of the Plan's net assets available for benefits. Sylvan Learning Systems, Inc. 401(k) Retirement Savings Plan Notes to Financial Statements (continued) 5. CONTRACT WITH INSURANCE COMPANY In August 1992, the Company entered into a Group Deposit Administration contract with First Colony which was sold upon of the plan assets during 1996. For investment purposes, the premiums paid by the Plan were commingled with other assets of First Colony in the Deposit Administration Fund. The Deposit Administration Fund guaranteed a 4% interest rate, compounded annually. The crediting interest rate was adjusted periodically as determined by First Colony based on market rates. Actual interest earned for 1996 ranged from 5.87% to 6.21% and for 1995 from 5.40% to 6.65%. 6. TAX STATUS The Internal Revenue Service has determined and informed the Plan by a letter dated June 2, 1997 that the Plan and related trust are designed in accordance with applicable sections of the Internal Revenue Code (IRC), and are therefore not subject to tax under present income tax laws. The Plan management believes that the Plan continues to qualify and to operate as designed. 7. RECONCILIATION OF FORM 5500 The financial statements at December 31, 1996 and 1995 differ from Form 5500 filed with the IRS in that net realized gains (losses) and unrealized appreciation (depreciation) in fair value of investments have been summarized in the financial statements rather than shown as several categories of net investment gain (loss) per line 32b of the Form 5500. Sylvan Learning Systems, Inc. 401(k) Retirement Savings Plan Notes to Financial Statements (continued) 8. ALLOCATION OF NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS
December 31, 1996 -------------------------------------------------------------------------------- Sylvan Learning Putnam Putnam Systems, Inc. Fund for Putnam Putnam OTC and Common Growth Income Vista Emerging Stock and Income Fund Fund Growth Fund ------------- ------------- ------------- ------------- ------------ ASSETS Investments, at fair value $ 1,165,770 $ 714,295 $ 212,707 $ 649,587 $ 781,279 Employer's contributions receivable 247,953 - - - - Participants' contributions receivable 28,609 31,497 7,000 29,085 37,546 ------------- ------------- ------------- ------------- ------------ Net assets available for benefits $ 1,442,332 $ 745,792 $ 219,707 $ 678,672 $ 818,825 ============= ============= ============= ============= =============
December 31, 1996 ---------------------------------------------------------------- Putnam Putnam International Stable Growth Value Participant Fund Fund Loans Total ------------- ------------- ------------- ------------- ASSETS Investments, at fair value $ 562,922 $ 622,222 $ 43,708 $ 4,752,490 Employer's contributions receivable - - - 247,953 Participants' contributions receivable 22,551 11,897 - 168,185 ------------- ------------- ------------- ------------- Net assets available for benefits $ 585,473 $ 634,119 $ 43,708 $ 5,168,628 ============= ============= ============= =============
December 31, 1995 --------------------------------------------------------------------------------------- Sylvan Fidelity Fidelity Learning MFS Advisor Advisor Systems, Inc. Emerging Euro Pacific Equity Growth Common Growth Growth Portfolio Opportunities Stock Fund Fund Growth Fund Portfolio -------------- -------------- -------------- -------------- -------------- ASSETS Investments, at fair value $ 339,626 $ 207,753 $ 117,220 $ 216,837 $ 225,190 Unallocated insurance contract, at contract value - - - - - Contributions receivable from employees 20,848 13,226 6,119 12,666 11,777 -------------- -------------- -------------- -------------- -------------- Net assets available for benefits $ 360,474 $ 220,979 $ 123,339 $ 229,503 $ 236,967 ============== ============== ============== ============== ==============
December 31, 1995 --------------------------------------------------------------------------------------- Alex Brown First Colony American Cash Group Deposit Balanced Reserve Participant Administration Fund Fund Loans Contract Total -------------- -------------- -------------- -------------- -------------- ASSETS Investments, at fair value $ 165,791 $ 59,668 $ 28,315 $ - $ 1,360,400 Unallocated insurance contract, at contract value - - - 142,688 142,688 Contributions receivable from employees 8,411 1,802 - 3,000 77,849 -------------- -------------- -------------- -------------- -------------- Net assets available for benefits $ 174,202 $ 61,470 $ 28,315 $ 145,688 $ 1,580,937 ============== ============== ============== ============== ==============
Sylvan Learning Systems, Inc. 401(k) Retirement Savings Plan Notes to Financial Statements (continued) 9. ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS
Year ended December 31, 1996 --------------------------------------------------------------------------------------------------- Sylvan Fidelity Fidelity Learning MFS Advisor Advisor Systems, Inc. Emerging Euro Pacific Equity Growth American Common Growth Growth Portfolio Opportunities Balanced Stock Fund Fund Growth Fund Portfolio Fund ------------- ------------- ------------- ------------- ------------- ------------- Investment income: Interest $ 1,752 $ - $ - $ 2,030 $ - $ 1,178 Dividends 1,624 - 5,735 - - 6,687 ------------- ------------- ------------- ------------- ------------- ------------- 3,376 - 5,735 2,030 - 7,865 Employee salary deferral contributions 339,758 173,683 96,528 181,952 173,934 107,823 Employer contribution 247,953 - - - - - Employee rollover contributions 22,770 9,458 584 3,654 810 853 ------------- ------------- ------------- ------------- ------------- ------------- Total additions 613,857 183,141 102,847 187,636 174,744 116,541 Withdrawals (16,197) (4,651) (3,426) (2,912) (1,952) (4,400) Net appreciation/ (depreciation) in fair value of investments 196,730 41,767 9,207 29,525 22,648 5,614 READS Transfer 29,379 110,981 39,315 135,278 131,017 153,808 Interfund transfers 258,089 26,299 (1,347) (687) (361) (5,373) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) 1,081,858 357,537 146,596 348,840 326,096 266,190 Net assets available for benefits at beginning of year 360,474 220,979 123,339 229,503 236,967 174,202 ------------- ------------- ------------- ------------- ------------- ------------- Net assets available for benefits 1,442,332 578,516 269,935 578,343 563,063 440,392 Transfer from ATR to Putnam - (578,516) (269,935) (578,343) (563,063) (440,392) ------------- ------------- ------------- ------------- ------------- ------------- Net assets available for benefits at end of the year $ 1,442,332 $ - $ - $ - $ - $ - ============= ============= ============= ============= ============= =============
-------------------------------------------------------------------------------------------------- Short Alex Brown First Colony Term Putnam Cash Group Deposit Money Fund for Putnam Putnam Reserve Administration Market Growth Income Vista Fund Contract Account and Income Fund Fund ------------- -------------- ------------- ------------- ------------- ------------- Investment income: Interest $ 920 $ 6,307 $ - $ - $ - $ - Dividends 3,379 - 73,849 48,658 2,580 37,384 ------------- -------------- ------------- ------------- ------------- ------------- 4,299 6,307 73,849 48,658 2,580 37,384 Employee salary deferral contributions 54,185 49,803 - 183,871 42,763 181,257 Employer contribution - - - - - - Employee rollover contributions - 584 - 44,492 7,022 45,962 ------------- -------------- ------------- ------------- ------------- ------------- Total additions 58,484 56,694 73,849 277,021 52,365 264,603 Withdrawals (2,606) (1,666) - (14,143) (5,795) (4,049) Net appreciation/ (depreciation) in fair value of investments - - - (25,752) (1,686) (31,676) READS Transfer 148,705 55,898 - - - - Interfund transfers (22,594) (2,123) (3,002,048) 508,666 174,823 449,794 ------------- -------------- ------------- ------------- ------------- ------------- Net increase (decrease) 181,989 108,803 (2,928,199) 745,792 219,707 678,672 Net assets available for benefits at beginning of year 61,470 145,688 - - - - ------------- -------------- ------------- ------------- ------------- ------------- Net assets available for benefits 243,459 254,491 (2,928,199) 745,792 219,707 678,672 Transfer from ATR to Putnam (243,459) (254,491) 2,928,199 - - - ------------- -------------- ------------- ------------- ------------- ------------- Net assets available for benefits at end of the year $ - $ - $ - $ 745,792 $ 219,707 $ 678,672 ============= ============== ============= ============= ============ =============
Putnam Putnam Putnam OTC and International Stable Emerging Growth Value Participant Grand Growth Fund Fund Fund Loans Total ------------- ------------- ------------- ------------- ------------- Investment income: Interest $ - $ - $ - $ 2,901 $ 15,088 Dividends 51,277 7,632 5,228 - 244,033 ------------- ------------- ------------- ------------- ------------- 51,277 7,632 5,228 2,901 259,121 Employee salary deferral contributions 249,660 138,123 86,405 - 2,059,745 Employer contribution - - - - 247,953 Employee rollover contributions 67,682 53,948 4,931 - 262,750 ------------- ------------- ------------- ------------- ------------- Total additions 368,619 199,703 96,564 2,901 2,829,569 Withdrawals (14,051) (8,662) (152,883) - (237,393) Net appreciation/ (depreciation) in fair value of investments (66,898) 11,655 - - 191,134 READS Transfer - - - - 804,381 Interfund transfers 531,155 382,777 690,438 12,492 - ------------- ------------- ------------- ------------- ------------- Net increase (decrease) 818,825 585,473 634,119 15,393 3,587,691 Net assets available for benefits at beginning of year - - - 28,315 1,580,937 ------------- ------------- ------------- ------------- ------------- Net assets available for benefits 818,825 585,473 634,119 43,708 5,168,628 Transfer from ATR to Putnam - - - - - ------------- ------------- ------------- ------------- ------------- Net assets available for benefits at end of the year $ 818,825 $ 585,473 $ 634,119 $ 43,708 $ 5,168,628 ============= ============= ============= ============= =============
Sylvan Learning Systems, Inc. 401(k) Retirement Savings Plan Notes to Financial Statements (continued) 9. ALLOCATION OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS TO INVESTMENT PROGRAMS (CONTINUED)
Year ended December 31, 1995 --------------------------------------------------------------------------------------------------- Sylvan Fidelity Fidelity Learning MFS Advisor Advisor Systems, Inc. Emerging Euro Pacific Equity Growth American Common Growth Growth Portfolio Opportunities Balanced Stock Fund Fund Growth Fund Portfolio Fund ------------- ------------- ------------- ------------- ------------- ------------- Investment income: Interest $ 2,134 $ - $ 721 $ 10,331 $ 2,694 $ 5,157 Dividends - - 2,415 330 2,761 4,917 ------------- ------------- ------------- ------------- ------------- ------------- 2,134 - 3,136 10,661 5,455 10,074 Employee salary deferral contributions 114,578 74,631 50,345 88,679 89,833 64,978 Employee rollover contributions 34,701 46,015 11,813 31,298 50,756 32,235 ------------- ------------- ------------- ------------- ------------- ------------- Total additions 151,413 120,646 65,294 130,638 146,044 107,287 Withdrawals (1,498) (152) (270) (1,975) (145) (1,714) Net appreciation/ (depreciation) in fair value of investments 108,695 39,512 8,043 30,471 32,927 17,287 Interfund transfers 29,464 60,973 50,272 28,154 58,141 10,831 ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) 288,074 220,979 123,339 187,288 236,967 133,691 Net assets available for benefits at beginning of year 72,400 - - 42,215 - 40,511 ------------- ------------- ------------- ------------- ------------- ------------- Net assets available for benefits at end of the year $ 360,474 $ 220,979 $ 123,339 $ 229,503 $ 236,967 $ 174,202 ============= ============= ============= ============= ============== =============
--------------------------------------------------------------------------------- U.S. Alex Brown Growth Investment Treasury Cash Fund Company Money Reserve of of Fund Participant Fund America America of America loans ------------- ------------- ------------- ------------- ------------- Investment income: Interest $ - $ 68 $ - $ - $ 1,216 Dividends $ 3013 $ 11 888 - - ------------- ------------- ------------- ------------- ------------- 3013 79 888 - 1,216 Employee salary deferral contributions 15,060 - - - - Employee rollover contributions 7,473 - - - - ------------- ------------- ------------- ------------- ------------- Total additions 25,546 79 888 - 1,216 Withdrawals (3,908) (1,196) (726) - - Net appreciation/ (depreciation) in fair value of investments - 3,564 4,691 - - Interfund transfers 39,832 (60,104) (136,143) (19,519) 12,928 ------------- ------------- ------------- ------------- ------------- Net increase (decrease) 61,470 (57,657) (131,290) (19,519) 14,144 Net assets available for benefits at beginning of year - 57,657 131,290 19,519 14,171 ------------- ------------- ------------- ------------- ------------- Net assets available for benefits at end of the year $ 61,470 $ - $ - $ - 28,315 ============= ============= ============= ============= =============
First Colony Group Deposit Administration Contract Total ------------- ------------- Investment income: Interest $ 8,925 $ 31,246 Dividends - 14,335 ------------- ------------- 8,925 45,581 Employee salary deferral contributions 38,721 536,825 Employee rollover contributions 22,094 236,385 ------------- ------------- Total additions 69,740 818,791 Withdrawals (1,667) (13,251) Net appreciation/ (depreciation) in fair value of investments - 245,190 Interfund transfers (74,829) - ------------- ------------- (6,756) 1,050,730 Net increase (decrease) Net assets available for benefits at beginning of year 152,444 530,207 ------------- ------------- Net assets available for benefits at end of the year $ 145,688 $ 1,580,937 ============= =============
SIGNATURES Pursuant to the requirements of Section 13 or 15(d) 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. Sylvan Learning Systems, Inc. By /s/ B. Lee McGee ------------------------------------- B. Lee McGee, Chief Financial Officer Date June 27, 1997 ----------------------------------
EXHIBIT INDEX Sequentially Exhibit No. Description Numbered Page - ----------- ----------- ------------- 23.01 Consent of Independent Auditors
EX-23.1 2 CONSENT OF ACCOUNTANT CONSENT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS We consent to the incorporation by reference in the following Registration Statements on Form S-8 of Sylvan Learning Systems, Inc. of our report dated June 20, 1997, with respect to the financial statements of Sylvan Learning Systems, Inc. 401(k) Retirement Savings Plan, incorporated by reference in the amended Sylvan Learning Systems, Inc. Annual Report (Form 10-K/A) for the year ended December 31, 1996.
Name Registration Number Date Filed - ---- ------------------- ----------------- 1987 - 1991 Employee Stock Option Plan 33-77384 April 6, 1994 1993 Director Stock Option Plan 33-77386 April 6, 1994 1993 Employee Stock Option Plan 33-77390 April 6, 1994 1993 Management Stock Option Plan 33-77388 April 6, 1994 1997 Employee Stock Purchase Plan 333-21963 February 18, 1997
/s/ Ernst & Young LLP - --------------------- Ernst & Young LLP Baltimore, Maryland June 25, 1997 -----END PRIVACY-ENHANCED MESSAGE-----