SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K
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CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
May 5, 1997
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Date of Report (Date of earliest event reported)
DIGNITY PARTNERS, INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-27736 94-3165263
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(State of other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) No.)
1700 Montgomery Street, Suite 250, San Francisco, CA 94111
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (415)394-9467
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Item 5. Other Events.
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On May 5, 1997, the Company issued a press release
regarding its results of operations for the first quarter of
1997. The press release is filed herewith as Exhibit 99.1.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
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(c) Exhibits
99.1 Text of Press Release dated May 5, 1997.
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SIGNATURES
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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.
DIGNITY PARTNERS, INC.
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By /s/Alan B. Perper
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Alan B. Perper
President
Date: May 6, 1997
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EXHIBIT INDEX
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Exhibit Number Document Description Sequential
Page Number
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99.1 Text of Press Release dated May 1-3
5, 1997.
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Exhibit 99.1
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FOR IMMEDIATE RELEASE
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May 5, 1997
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DIGNITY PARTNERS ANNOUNCES FIRST QUARTER EARNINGS
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SAN FRANCISCO-(May 5, 1997) Dignity Partners, Inc. (DPNR)
today reported net income of $1,095,000 (or $.27 per share based
on 4,108,991 weighted average outstanding shares) for the quarter
ended March 31, 1997, compared to $294,000(or $.10 per share
based on 3,089,467 weighted average outstanding shares) for the
quarter ended March 31, 1996. Included in such net income were a
$871,000 pre-tax gain on assets sold, a $700,000 pre-tax gain on
the sale of convertible preferred shares of American Information
Company, Inc., and a $935,000 net loss in the Company's wholly owned
financing subsidiary which was reserved for by Dignity Partners, Inc.
Also included in such net income is a $250,000 reserve for legal
expenses in connection with federal and state class action lawsuits
filed against the Company and its officers and directors.
For many reasons (including the 1996 reclassification
into "assets held for sale" of a substantial portion of the
Company's assets and related accounting consequences), the
Company's results of operations and cash flows for the
quarter ended March 31, 1997 are not comparable to the
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quarter ended March 31, 1996.
Through March 31, 1997, the Company had sold or entered
into agreements to sell 373 policies, representing $29.2
million in aggregate face value, for an aggregate purchase
price of $19.5 million. As a result of these sales, the
Company reported a pre-tax loss of $180,000 in 1996 and a
pre-tax gain of $871,000 in the first quarter of 1997 and
expects to report a pre-tax gain of $638,000 in the second
quarter of 1997. This expectation is a forward looking
statement within the meaning of the Private Securities
Litigation Act of 1995. Such statement involves risks and
uncertainties that could cause actual results to differ
materially from those discussed. Among the factors that
could cause actual results to differ from expectations are
the amount and timing of actual receipt of sale proceeds.
In October 1996, the Board of Directors of the Company
approved a share repurchase program pursuant to which the Company
is authorized to purchase from time to time up to 1 million
shares of Common Stock at prevailing market prices. As of March
31, 1997, the Company had repurchased 273,500 shares pursuant to
the program. In April 1997 the Company repurchased an additional
365,000 shares.
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The following is summary balance sheet information as
of March 31, 1997:
<TABLE>
<S> <C>
Cash and cash equivalents..................$14,182,081
Restricted cash (1).........................$4,335,177
Investment securities.......................$2,275,583
Assets held for sale........................$3,365,846
Purchased life insurance policies..........$39,017,973
Investment in convertible preferred shares..$1,864,128
Total Assets...............................$66,185,709
Reserve for equity interest in wholly owned
financing subsidiary......................$5,256,839
Long term notes payable....................$39,084,011
Total Liabilities..........................$45,285,557
Total Stockholders' Equity.................$20,900,152
<FN>
(1) $4.2 million of restricted cash is pledged by the Company's
wholly owned financing subsidiary, Dignity Partners Funding
Corp., to secure the repayment of long term notes payable.
</FN>
</TABLE>
(KEYWORD CALIFORNIA AND INDUSTRY KEYWORD: INSURANCE EARNINGS).
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CONTACTS:
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DIGNITY PARTNERS, INC., SAN FRANCISCO.
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Alan B. Perper, 415/394-9467
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