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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A NO. 2
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 28, 2000
SCB COMPUTER TECHNOLOGY, INC.
(Exact name of registrant as specified in its charter)
TENNESSEE 000-27694 62-1201561
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification Number)
3800 FOREST HILL - IRENE ROAD, MEMPHIS, TENNESSEE 38125
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (901) 754-6577
N/A
(Former name or former address, if changed since last report)
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Technology Management Resources, Inc., a subsidiary of SCB Computer
Technology, Inc. (the "Company"), recently sold substantially all of its assets
to MAXIMUS, Inc. This transaction was reported on a Current Report on Form 8-K
filed by the Company with the Securities and Exchange Commission on May 15, 2000
(the "Original Form 8-K"). This amendment is being filed to amend Item 7(b) of
the Original Form 8-K in its entirety.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(b) Pro forma financial information
The following unaudited pro forma condensed consolidated balance sheet as of
January 31, 2000 is presented as if the transaction had occurred as of that
date. The unaudited pro forma condensed consolidated statements of operations
for the nine months ended January 31, 2000 and the year ended April 30, 1999 are
presented as if the transaction had occurred as of May 1, 1999 and May 1, 1998,
respectively.
The pro forma adjustments represent, in the opinion of management, all
adjustments necessary to present the Company's pro forma results of operations
and financial position in accordance with Article 11 of Regulation S-X and are
based upon available information and certain assumptions considered reasonable
under the circumstances.
The pro forma condensed consolidated financial statements should be read in
conjunction with the Company's unaudited condensed consolidated financial
statements and notes thereto included in the Company's Quarterly Report on Form
10-Q/A for the period ended January 31, 2000 and the audited consolidated
financial statements and notes thereto included in the Company's Annual Report
on Form 10-K/A for the year ended April 30, 1999. The pro forma information may
not necessarily be indicative of what the Company's results of operations or
financial position would have been had the transaction been in effect as of and
for the periods presented, nor is such information necessarily indicative of the
Company's results of operations or financial position for any future period or
date.
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SCB Computer Technology, Inc.
Pro Forma Condensed Consolidated Balance Sheet (Unaudited)
<TABLE>
<CAPTION>
January 31, 2000
----------------------------------------------
Pro Forma
Historical Adjustments Pro Forma
------------- ------------ -------------
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 1,497,382 -- 1,497,382
------------- ------------ -------------
ACCOUNTS RECEIVABLE:
Trade, net of allowance for doubtful accounts 30,188,156 -- 30,188,156
Other current assets 12,194,930 -- 12,194,930
------------- ------------ -------------
Total current assets 43,880,468 -- 43,880,468
EQUIPMENT UNDER OPERATING LEASES 8,107,067 -- 8,107,067
FIXED ASSETS:
Buildings 992,427 -- 992,427
Furniture, fixtures, and equipment 34,166,781 (258,959)(a) 33,907,822
Accumulated depreciation (11,990,027) 46,037 (a) (11,943,990)
------------- ------------ -------------
23,169,181 (212,922) 22,956,259
Land 209,912 -- 209,912
------------- ------------ -------------
Total fixed assets 23,379,093 (212,922) 23,166,171
------------- ------------ -------------
OTHER ASSETS:
Investment in Direct Financing Leases 12,993,238 -- 12,993,238
Goodwill, net of accumulated amortization 46,991,287 (8,524,261)(a) 38,467,026
Other 2,049,767 1,000,000 (b) 3,049,767
------------- ------------ -------------
Total other assets 62,034,292 (7,524,261) 54,510,031
------------- ------------ -------------
Total Assets $ 137,400,920 $ (7,737,183) $ 129,663,737
============= ============ =============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable-trade $ 3,925,697 -- 3,925,697
Accrued expenses 6,949,531 (229,827)(b) 6,719,704
Notes payable 11,974,289 -- 11,974,289
Current portion of long term debt 10,790,000 -- 10,790,000
Current portion of capital lease obligation 808,035 -- 808,035
Deferred revenue 1,313,775 -- 1,313,775
Accrued federal and state income taxes -- 429,358 (c) 429,358
------------- ------------ -------------
Total current liabilities 35,761,327 199,531 35,960,858
------------- ------------ -------------
NOTES PAYABLE - NON-RECOURSE 15,479,501 -- 15,479,501
LONG-TERM DEBT 27,422,219 (8,770,173)(b) 18,652,046
OTHER LONG-TERM LIABILITIES 3,852,966 -- 3,852,966
------------- ------------ -------------
Total Liabilities 82,516,013 (8,770,173) 37,984,513
------------- ------------ -------------
SHAREHOLDERS' EQUITY 54,884,907 833,459 (c) 55,718,366
------------- ------------ -------------
Total Liabilities and Shareholders' Equity $ 137,400,920 $ (7,737,183) $ 129,663,737
============= ============ =============
</TABLE>
See accompanying notes
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SCB Computer Technology, Inc.
Pro Forma Condensed Consolidated Statement of Operations (Unaudited)
<TABLE>
<CAPTION>
Nine-month period ended January 31, 2000
---------------------------------------------------------------
Pro Forma
Historical Disposition(d) Adjustment Pro Forma
------------- -------------- ----------- -------------
<S> <C> <C> <C> <C>
Revenue $ 124,441,074 $ 5,856,857 -- $ 118,584,217
Cost of services 91,234,919 4,011,564 -- 87,223,355
Provision for contract losses 848,751 -- -- 848,751
------------- ----------- ----------- -------------
Gross profit 32,357,404 1,845,293 -- 30,512,111
Selling, general and administrative expenses 29,054,683 1,372,492 -- 27,682,191
TVA settlement and severance payments -- -- -- --
Impairment of assets -- -- -- --
------------- ----------- ----------- -------------
Income from operations 3,302,721 472,801 -- 2,829,920
Other income (expenses)
Interest income -- 1,328 -- (1,328)
Interest expense (2,886,821) -- 594,000 (e) (2,292,821)
Other, net 180,929 -- -- 180,929
------------- ----------- ----------- -------------
Total other income (expenses) (2,705,892) 1,328 594,000 (2,113,220)
------------- ----------- ----------- -------------
Income before income taxes 596,829 474,129 594,000 716,700
Income tax expense 274,065 161,204 237,600 (e) 350,461
------------- ----------- ----------- -------------
Net Income $ 322,764 $ 312,925 $ 356,400 $ 366,239
============= =========== =========== =============
Net income (loss) per share - basic $ 0.01 $ 0.01
============= =============
Net income (loss) per share - diluted $ 0.01 $ 0.01
============= =============
Weighted average number of common
shares - basic 24,711,807 24,711,807
============= =============
Weighted average number of common
shares - diluted 24,711,807 24,711,807
============= =============
</TABLE>
See accompanying notes
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Pro Forma Condensed Consolidated Statement of Operations (Unaudited)
<TABLE>
<CAPTION>
Fiscal Year ended April 30, 1999
-----------------------------------------------------------------
Pro Forma
Historical Disposition(d) Adjustment Pro Forma
------------- -------------- ----------- -------------
<S> <C> <C> <C> <C>
Revenue $ 152,015,861 $ 6,572,316 -- $ 145,443,545
Cost of services 107,178,352 4,256,900 -- 102,921,452
Provision for contract losses 1,800,000 -- -- 1,800,000
------------- ----------- ----------- -------------
Gross profit 43,037,509 2,315,416 -- 40,722,093
Selling, general and administrative expenses 30,990,998 1,108,117 -- 29,882,881
TVA settlement and severance payments 2,700,000 -- -- 2,700,000
Impairment of assets 3,950,000 -- -- 3,950,000
------------- ----------- ----------- -------------
Income from operations 5,396,511 1,207,299 -- 4,189,212
Other income (expenses)
Interest income 159,484 12,047 -- 147,437
Interest expense (3,494,112) (18,352) -- (3,475,760)
Other, net (119,655) -- 792,000 (e) 672,345
------------- ----------- ----------- -------------
Total other income (expenses) (3,454,283) (6,305) 792,000 (2,655,978)
------------- ----------- ----------- -------------
Income before income taxes 1,942,228 1,200,994 792,000 1,533,234
Income tax expense
Current 1,975,758 456,907 316,800 (e) 1,835,651
Deferred (benefit) (1,106,837) -- -- (1,106,837)
------------- ----------- ----------- -------------
Total income tax expense 868,921 456,907 316,800 728,814
------------- ----------- ----------- -------------
Net Income $ 1,073,307 $ 744,087 $ 475,200 $ 804,420
============= =========== =========== =============
Net Income per share - basic $ 0.04 $ 0.03
============= =============
Net Income per share - diluted $ 0.04 $ 0.03
============= =============
Weighted average number of common
shares - basic 24,683,000 24,683,000
============= =============
Weighted average number of common
shares assuming conversion - diluted 24,921,000 24,921,000
============= =============
</TABLE>
See accompanying notes
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Notes to Pro Forma Condensed Consolidated Financial Statements (Unaudited)
The accompanying pro forma condensed consolidated financial statements give
effect to the following pro forma adjustments necessary to reflect the sale of
substantially all of TMR's assets as if the transaction occurred at the date
indicated in the introduction:
(a) Represents the elimination of TMR's assets sold.
(b) Represents the use of cash proceeds from TMR sale of $10.0 million.
(c) Represents the gain, net of taxes, on the sale of TMR's assets as if
the transaction had occurred on January 31, 2000. The gain of
$1,262,817 was not included in these pro forma consolidated statements
of income.
(d) Represents the TMR results of operations.
(e) Represents the reduction in interest expense resulting from the use of
cash proceeds to reduce debt.
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SIGNATURE
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.
Date: July 28, 2000
SCB COMPUTER TECHNOLOGY, INC.
By: /s/ Michael J. Boling
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Michael J. Boling
Executive Vice President - Finance and
Chief Financial Officer
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