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
July 31, 1997
Date of Report (date of earliest event reported)
Commission file number - 0-28830
The Metzler Group, Inc.
(Exact name of Registrant as specified in its charter)
Delaware 36-409485
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
520 Lake Cook Road, Suite 500
Deerfield, Illinois 60015
(Address of principal executive office, including zip code)
(847) 914-9100
(Registrant's telephone number, including area code)
The undersigned registrant hereby amends the following
items, financial statements, exhibits, or other portions of its
Current Report on Form 8-K, originally filed with Securities and
Exchange Commission on August 14, 1997 as set forth in the pages
attached hereto.
Item 7. Financial Statements and Exhibits.
(a) Financial Statements of Business Acquired.
The following Condensed Consolidated Financial Statements
of Resource Management International, Inc.
and Subsidiaries are attached:
Condensed Consolidated Balance Sheet as of
June 30, 1997 (unaudited)
Condensed Consolidated Statements of Operations
for the six months ended June 30, 1997, and 1996
(unaudited)
Condensed Consolidated Statements of Cash Flows
for the six months ended June 30, 1997, and 1996
(unaudited)
Notes to the June 30, 1997 Condensed Consolidated
Financial Statements
(unaudited)
(b) Pro Forma Financial Information.
The following unaudited pro forma Financial Statements
are attached:
Unaudited Pro Forma Condensed Combining Balance
Sheet as of June 30, 1997
Unaudited Pro Forma Condensed Combining Statement
of Operations for the six months ended June 30, 1997
Notes to Unaudited Condensed Combining Statements
Unaudited Pro Forma Condensed Combining Quarterly
Operating Statements
Item 7 - FINANCIAL STATEMENTS AND EXHIBITS
Resource Management International, Inc.
And Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEET
June 30, 1997
(Unaudited)
June 30,
1997
(in thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 64
Trade receivables 10,894
Other current assets 340
____________
Total current assets 11,298
Property and equipment, net 1,805
Other assets 830
____________
Total assets $ 13,933
============
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Current portion of notes
payable and other debt
obligations $ 754
Accounts payable and
accrued liabilities 4,152
Deferred income taxes 309
___________
Total current liabilities 5,215
Notes payable and other debt
obligations, net of
current portion 3,565
Deferred income taxes 2,152
Other liabilities and deferrals 196
___________
Total liabilities 11,128
Total stockholders' equity 2,805
___________
Total liabilities and
stockholders' equity $ 13,933
============
See accompanying notes to unaudited condensed consolidated
financial statements.
Item 7 - FINANCIAL STATEMENTS AND EXHIBITS
Resource Management International, Inc.
And Subsidiaries
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
For the six months ended June 30, 1997 and 1996
(unaudited)
June 30, June 30,
1997 1996
(in thousands) (in thousands)
Revenues $ 19,760 $ 17,360
Operating expenses 17,986 17,410
___________ ___________
Operating income (loss) 1,774 (50)
Other (income) expense, net 135 123
___________ ___________
Income (loss) before
provision for income
taxes 1,639 (173)
Income tax expense (benefit) 673 (72)
----------- -----------
Net income (loss) $ 966 $ (101)
=========== ===========
The accompanying notes are an integral part of the financial
statements
Item 7- FINANCIAL STATEMENTS AND EXHIBITS
Resource Management International, Inc.
And Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the six months ended June 30, 1997 and 1996
(unaudited)
1997 1996
(in thousands) (in thousands)
Cash Flow from operating
activities:
Net income (loss) $ 966 $ (101)
Adjustments to reconcile net
income (loss) to net cash
provided by operating activities,
net of acquisitions:
Depreciation and amortization 463 367
Loss on sale of property
and equipment -- 30
Deferred income taxes 69 (338)
Changes in assets and
liabilities:
Trade receivables (2,502) (394)
Other assets 106 (423)
Accounts payable and
accrued liabilities 490 175
____________ ___________
Net cash provided by (used by)
operating activities (408) (684)
____________ ___________
Cash flow from investing
activities:
Purchase of property
and equipment (252) (210)
Acquisition of businesses,
net of cash received -- (4)
____________ ____________
Net cash used in
investing activities (252) (214)
Cash flow from financing
activities:
Repurchase of common stock -- (518)
Issuance of common stock 66 --
Net borrowings on debt
obligations (161) 1,623
_____________ ____________
Net cash provided by
financing activities (95) 1,105
_____________ ____________
Net increase (decrease)
in cash (755) 207
Cash and cash equivalents,
beginning of period 819 336
______________ ____________
Cash and cash equivalents,
end of period $ 64 $ 543
============== ============
RESOURCE MANAGEMENT INTERNATIONAL, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 1: Basis of Presentation
The accompanying unaudited interim condensed consolidated
financial statements of Resource Management International, Inc.
(RMI) have been prepared pursuant to the rules of the Securities
and Exchange Commission for quarterly reports on Form 10-Q and do
not include all of the information and note disclosures required
by generally accepted accounting principles. The information
furnished herein includes adjustments, consisting of normal
recurring adjustments, which are, in the opinion of management,
necessary for a fair presentation of results for these interim
periods.
The results of operations for the six months ended June 30, 1997
are not necessarily indicative of the results to be expected for
the entire fiscal year ending December 31, 1997.
These financial statements should be read in conjunction with
RMI's audited consolidated financial statements and notes thereto
for the year ended December 31, 1996, included in the current
report on Form 8-K/A filed by the Company with the Securities and
Exchange Commission on October 14, 1997.
UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS
The Metzler Group, Inc. (the Company) completed its acquisition
of Resource Management International, Inc. (RMI) on July 31, 1997
by exchanging 2,137,178 shares of the Company's common stock for
substantially all of the outstanding common stock of RMI. The
accompanying unaudited pro forma condensed combining balance
sheet combines the Company's historical consolidated balance
sheet and the balance sheet of RMI as if the transaction had been
consummated on June 30, 1997, and the unaudited pro forma
condensed combining statement of operations for the six month
period ended June 30, 1997 reflects the merger with RMI,
applying the pooling-of-interests method of accounting. The
unaudited pro forma condensed combining financial statements give
effect to the issuance of the Company's common stock in exchange
for substantially all the outstanding shares of common stock of
RMI.
The unaudited pro forma condensed combining financial statements
are presented for illustrative purposes only and do not purport
to represent what the Company's results of operations or
financial position would have been had the merger with RMI
occurred on the dates indicated or for any future period or
date, and are therefore qualified in their entirety by reference
to and should be read in conjunction with the historical
financial statements of the Company and RMI.
PRO FORMA CONDENSED
COMBINING BALANCE SHEET (Unaudited)
For the six months ended June 30, 1997
(in thousands)
Pro
Metzler Forma
ASSETS Group RMI Adjustments Pro Forma
Current Assets:
Cash and cash
equivalents $ 29,432 $ 64 $ -- $ 29,496
Trade receivables 7,934 10,894 -- 18,828
Other current assets 745 340 -- 1,085
_________ _________ __________ _________
Total current assets 38,111 11,298 -- 49,409
Property and equipment,net 800 1,805 -- 2,605
Other assets -- 830 -- 830
_________ _________ __________ _________
Total assets $ 38,911 $ 13,933 $ -- $ 52,844
========= ========= ========== =========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current Liabilities:
Current portion of notes
payable and other debt
obligations $ 244 $ 754 $ -- $ 998
Accounts payable and
accrued liabilities 3,509 4,152 -- 7,661
Deferred income taxes 111 309 -- 420
--------- --------- ---------- ---------
Total current liabilities 3,864 5,215 -- 9,079
--------- --------- ---------- ---------
Notes payable and other
debt obligations, net of
current portion 14 3,565 -- 3,579
Deferred income taxes 569 2,152 -- 2,721
Other liabilities and
deferrals 183 196 -- 379
--------- --------- --------- ---------
Total liabilities 4,630 11,128 -- 6,679
Total stockholders' equity 34,281 2,805 -- 37,086
--------- --------- --------- ---------
Total liabilities and
stockholders' equity $ 38,911 $ 13,933 $ -- $ 43,765
========= ========= ========= =========
See accompanying notes to unaudited pro forma condensed combining
financial statements.
PRO FORMA CONDENSED
COMBINING STATEMENT OF OPERATIONS (Unaudited)
For the six months ended June 30, 1997
(in thousands)
Pro
Metzler Forma Pro
Group RMI Adjustments Forma
Revenue $ 18,518 $ 19,760 $ -- $ 38,278
Operating expenses 14,054 17,986 -- 32,040
___________ __________ ___________ ___________
Operating income(loss) 4,464 1,774 -- 6,238
Other (income)
expense, net (564) 135 -- (429)
___________ __________ ___________ ___________
Income (loss) before
provision for
income taxes 5,028 1,639 -- 6,667
Income tax expense
(benefit) 1,851 673 -- 2,524
___________ __________ ____________ ____________
Net income (loss) $ 3,177 $ 966 $ -- $ 4,143
=========== ========== ============ ============
Pro forma income data:
Net income (loss) as
reported $ 3,177 $ 4,143
Pro forma adjustments
to income tax expense -- --
Pro forma adjustments
to compensation expense -- --
___________ ___________
Pro forma net
income $ 3,177 $ 4,143
============ ===========
Pro forma net
income per share $ 0.29 $ 0.31
============ ===========
Shares used in
computing pro forma
net income per share 11,147 2,137 13,284
See accompanying notes to unaudited pro forma condensed combining
financial statements.
The Metzler Group, Inc.
Notes to Unaudited Pro Forma Condensed Combining Financial
Statements
Note A - Description of Business Combination
The accompanying unaudited condensed combining financial
statements reflect all adjustments which, in the opinion of
management, are necessary for fair presentation. All adjustments
are of a normal recurring nature. All intercompany accounts and
transactions have been eliminated. On July 31, 1997, the Company
issued 2,137,178 shares of common stock for substantially all the
outstanding common stock of RMI. Because this acquisition is
being treated as a pooling of interests for accounting purposes,
the Company's consolidated financial statements as of December
31, 1996 and for the year then ended are being restated to
include RMI's assets, liabilities and operating results.
Note B - Basis of Presentation
The accompanying unaudited condensed combining financial
statements reflect all adjustments which, in the opinion of
management, are necessary for fair presentation. All adjustments
are of a normal recurring nature. All intercompany accounts and
transactions have been eliminated. On August 15, 1997, the
Company issued 518,400 shares of common stock for substantially
all the outstanding common stock of Reed Consulting Group, Inc.
(Reed). Because this acquisition is being treated as a pooling
of interests for accounting purposes, the Company's consolidated
financial statements as of December 31, 1996 and for the year
then ended have been restated to include Reed's assets,
liabilities and operating results.
UNAUDITED QUARTERLY RESULTS
The following table sets forth certain unaudited quarterly
operating information for each of the six quarters ending June
30, 1997. These data have been prepared on the same basis as the
audited financial statements contained elsewhere in this 8-K/A
and include all normal recurring adjustments necessary for the
fair presentation of the information for the periods presented,
when read in conjunction with the Company's Financial Statements
and related Notes thereto. Results for any previous fiscal
quarter are not necessarily indicative of results for the full
year or for any future quarter.
Quarters Ended
Mar. 31, Jun 30, Sep. 30, Dec. 31, Mar.31, Jun. 30,
1996 1996 1996 1996 1997 1997
(In thousands, except for share amounts)
Metzler Group
Revenue $ 6,768 $ 6,844 $ 7,019 $ 7,282 $ 8,414 $ 10,104
Operating
expenses 4,646 4,664 5,364 5,835 6,655 7,398
-------- -------- ------- ------- ------- ---------
Operating
income 2,122 2,180 1,655 1,447 1,759 2,706
Other (income)
expense, net 20 5 42 (343) (270) (294)
-------- -------- ------- -------- -------- ----------
Income before
income taxes 2,102 2,175 1,613 1,790 2,029 3,000
Income tax
expense 43 44 27 579 732 1,120
-------- -------- ------- -------- -------- ----------
Net income $ 2,059 $ 2,131 $ 1,586 $ 1,211 $ 1,297 $ 1,880
======== ======== ======= ======== ======== ==========
Pro forma income data:
Net income
as reported$ 2,059 $ 2,131 $ 1,586 $ 1,211 $ 1,297 $ 1,880
reported
Pro forma
adjustments (1,094) (1,122) (603) -- -- --
--------- -------- -------- -------- ------- ---------
Pro forma net
income $ 965 $ 1,009 $ 983 $ 1,211 $ 1,297 $ 1,880
======== ======== ======== ======== ======= =========
Pro forma net
income per
share $ 0.09 $ 0.10 $ 0.10 $ 0.11 $ 0.12 $ 0.17
======== ======== ======== ======== ======= ==========
Shares used
in computing
pro forma
net income
per share 10,321 10,321 10,321 11,264 11,145 11,147
- ---------------------------------------------------------------------------
RMI
Revenue $ 8,550 $ 8,810 $ 9,170 $ 9,110 $ 9,670 $ 10,090
Operating
expenses 8,220 9,190 9,345 10,660 8,755 9,231
-------- -------- -------- ------- ------- ---------
Operating
income (loss) 330 (380) (175) (1,550) 915 859
Other (income)
expense, net 26 97 100 127 50 85
-------- -------- -------- -------- ------- ---------
Income (loss)
before income
taxes 304 (477) (275) (1,677) 865 774
Income tax
expense
(benefit) 124 (196) (113) (688) 356 317
-------- --------- -------- --------- ------- ---------
Net income(loss)$ 180 $ (281) $ (162) $ (989) $ 509 $ 457
======== ========= ======== ========= ======= =========
- -------------------------------------------------------------------------
Pro Forma
Adjustments:
Revenue $ -- $ -- $ -- $ -- $ -- $ --
Operating
expenses -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Operating
income -- -- -- -- -- --
Other
expense, net -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Income before
income taxes -- -- -- -- -- --
Income tax
expense -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Net income $ -- $ -- $ -- $ -- $ -- $ --
======== ======== ======== ======== ======== ========
Shares used
in computing
pro forma
net income
per share 2,137 2,137 2,137 2,137 2,137 2,137
- ----------------------------------------------------------------------------
Pro Forma
Revenue $ 15,318 $ 15,654 $ 16,189 $ 16,392 $ 18,084 $ 20,194
Operating
expenses 12,866 13,854 14,709 16,495 15,410 16,629
---------- --------- --------- --------- --------- ---------
Operating
income (loss) 2,452 1,800 1,480 (103) 2,674 3,565
Other
(income)
expense, net 46 102 142 (216) (220) (209)
---------- --------- --------- ---------- --------- ---------
Income before
income taxes 2,406 1,698 1,338 113 2,894 3,774
Income tax
expense
(benefit) 167 (152) (86) (109) 1,088 1,437
--------- --------- --------- --------- --------- --------
Net income $ 2,239 $ 1,850 $ 1,424 $ 222 $ 1,806 $ 2,337
========= ========= ========= ========= ========= ========
Pro forma income data:
Net income
as
reported $ 2,239 $ 1,850 $ 1,424 $ 222 $ 1,806 $ 2,337
Pro forma
adjustments (1,094) (1,122) (603) -- -- --
--------- --------- ---------- --------- --------- ---------
Pro forma net
income $ 1,145 $ 728 $ 821 $ 222 $ 1,806 $ 2,337
========= ========= ========== ========= ========= =========
Pro forma net
income per
share $ 0.09 $ 0.06 $ 0.07 $ 0.02 $ 0.14 $ 0.18
========= ========= ========== ========= ========= =========
Shares used
in computing
pro forma
net income
per share 12,458 12,458 12,458 13,401 13,282 13,284
- ----------------------------------------------------------------------------
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 thereunto duly authorized.
Dated: October 14, 1997
The Metzler Group, Inc.
By:_/s/ Robert P.Maher
Robert P. Maher
Chairman of the Board, President and
Chief Executive Officer
By: /s/ James F. Hillman
James F. Hillman
Chief Financial Officer
