UNITED STATES
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 19, 1997
TRAVEL SERVICES INTERNATIONAL, INC.
-----------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 0-29296 52-2030324
-------- ------- ----------
(State or other juris- (Commission (IRS Employer
diction of incorporation) File Number) Identification No.)
220 CONGRESS PARK DRIVE, DELRAY BEACH, FLORIDA 33445
----------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 561-266-0860
<PAGE>
INFORMATION TO BE INCLUDED IN THE REPORT
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
PRO FORMA FINANCIAL INFORMATION PAGE
- ------------------------------- ----
Travel Services International, Inc. unaudited pro forma condensed combined
balance sheet as of September 30, 1997 3
Travel Services International, Inc. unaudited pro forma condensed combined
statement of income for the nine month period ended September 30, 1997 4
Travel Services International, Inc. unaudited pro forma condensed combined
statement of income for the year ended December 31, 1996 5
Travel Services International, Inc. unaudited pro forma condensed combined
statement of income for the year ended December 31, 1995 6
Travel Services International, Inc. unaudited pro forma condensed combined
statement of income for the year ended December 31, 1994 7
Travel Services International, Inc. notes to unaudited pro forma condensed
combined financial statements 8
2
<PAGE>
<TABLE>
<CAPTION>
TRAVEL SERVICES INTERNATIONAL, INC. AND ACQUIRED COMPANIES
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
SEPTEMBER 30, 1997
(in thousands, except share data)
CRUISE - CRUISE - CRUISE SHIP 'N' PRO FORMA
TSI ONE WORLD FAIRS SHORE ADJUSTMENTS PRO FORMA
------- -------- -------- ------ -------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $14,389 $ 156 $ 597 $ 304 $ 2,484 $ - $ 17,930
Trade and other receivables, net of
allowance of $194 2,554 254 222 272 263 - 3,565
Receivables from affiliates and employees 491 - - - - - 491
Other current assets 1,370 39 111 86 21 - 1,627
------- -------- -------- ------ -------- --------- ---------
Total current assets 18,804 449 930 662 2,768 - 23,613
Property and equipment, net 9,230 152 38 35 1,397 - 10,852
Goodwill 41,435 - - - - - 41,435
Other assets 674 10 16 12 128 - 840
------- -------- -------- ------ -------- --------- ---------
Total assets $70,143 $ 611 $ 984 $ 709 $ 4,293 $ - $ 76,740
======= ======== ======== ====== ======== ========= =========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current Liabilities:
Current maturities of long-term debt
and capital lease obligations $ 472 $ - $ 40 $ - $ 164 $ - $ 676
Due to founding companies' stockholders 1,780 - - - - - 1,780
Trade payables, customer deposits and
deferred income 10,705 270 421 396 1,594 - 13,386
Due to travel service providers 4,251 - - 78 - - 4,329
------- -------- -------- ------ -------- --------- ---------
Total current liabilities 17,208 270 461 474 1,758 - 20,171
Long-term debt and captial lease obligations,
net of current maturities 4,050 - 86 - 834 - 4,970
Deferred income 145 - - - - - 145
Other long-term liabilities - 17 - 1 - - 18
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $0.01 par value; 1,000,000
shares authorized; none outstanding - - - - - - -
Common stock, $0.01 par value; 50,000,000
shares authorized; 10,133,430 shares
outstanding 88 1 276 25 3 (292)(1) 101
Additional paid-in capital 49,322 323 - - 20 292 49,957
Retained earnings (deficit) (670) - 161 209 1,678 - 1,378
------- -------- -------- ------ -------- --------- ---------
Total stockholders' equity 48,740 324 437 234 1,701 - 51,436
------- -------- -------- ------ -------- --------- ---------
Total liabilities and stockholders'
equity $70,143 $ 611 $ 984 $ 709 $ 4,293 $ - $ 76,740
======= ======== ======== ====== ======== ========= =========
</TABLE>
The accompanying notes are an integral part of these unaudited pro forma
condensed combined financial statements
3
<PAGE>
<TABLE>
<CAPTION>
TRAVEL SERVICES INTERNATIONAL, INC. AND ACQUIRED COMPANIES
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997
(in thousands, except per share data)
COMPANIES
ACQUIRED PRO FORMA
TSI ON JULY 28, FOR THE CRUISE - CRUISE - CRUISE SHIP 'N' PRO FORMA
HISTORICAL(2) 1997(3) COMBINATIONS ONE WORLD FAIRS SHORE ADJUSTMENTS PRO FORMA
------------- ----------- ------------ -------- -------- ------ -------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Revenues $ 34,855 $ 20,343 $ 55,198 $ 1,767 $ 2,599 $ 820 $ 3,653 $ - $ 64,037
Operating Expenses 23,122 11,492 34,614 800 1,302 252 1,603 - 38,571
---------- ---------- ---------- ------- ------- ------ -------- --------- ----------
Gross Profit 11,733 8,851 20,584 967 1,297 568 2,050 - 25,466
General & Administrative
Expenses 8,446 1,431 9,877 694 1,135 392 1,271 (279)(4) 13,090
Goodwill Amortization 202 707 909 - - - - - 909
---------- ---------- ---------- ------- ------- ------ -------- --------- ----------
Income from
Operations 3,085 6,713 9,798 273 162 176 779 279 11,467
Interest Expense & Other,
net (81) (71) (152) 12 - 4 14 - (122)
---------- ---------- ---------- ------- ------- ------ -------- --------- ----------
Income Before Taxes 3,004 6,642 9,646 285 162 180 793 279 11,345
Provision for Income Taxes 101 3,950 4,051 - - - - 680 (5) 4,731
---------- ---------- ---------- ------- ------- ------ -------- --------- ----------
Net Income $ 2,903 $ 2,692 $ 5,595 $ 285 $ 162 $ 180 $ 793 $ (401) $ 6,614
========== ========== ========== ======= ======= ====== ======== ========= ==========
Weighted Average Shares
Outstanding 2,997,292 8,855,995(6) 1,351,704 (1) 10,207,699
========== ========== ========= ==========
Earnings Per Share $0.97 $0.63 $0.65
========== ========== =========
</TABLE>
The accompanying notes are an integral part of these unaudited pro forma
condensed combined financial statements
4
<PAGE>
<TABLE>
<CAPTION>
TRAVEL SERVICES INTERNATIONAL, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1996
(in thousands, except per share data)
COMPANIES
ACQUIRED PRO FORMA
TSI ON JULY 28, FOR THE CRUISE - CRUISE - CRUISE SHIP 'N' PRO FORMA
HISTORICAL(7) 1997(8) COMBINATIONS ONE WORLD FAIRS SHORE ADJUSTMENTS PRO FORMA
------------- ----------- ------------ -------- -------- ------ -------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Revenues $ 25,720 $ 26,297 $ 52,017 $ 1,574 $ 3,182 $1,013 $ 4,287 $ - $ 62,073
Operating Expenses 18,807 15,410 34,217 826 1,603 240 2,312 - 39,198
---------- --------- ---------- ------- ------- ------ -------- --------- ----------
Gross Profit 6,913 10,887 17,800 748 1,579 773 1,975 - 22,875
General & Administrative
Expenses 6,936 2,728 9,664 639 1,401 689 1,720 (542)(4) 13,571
Goodwill Amortization - 1,174 1,174 - - - - - 1,174
---------- --------- ---------- ------- ------- ------ -------- --------- ----------
Income (Loss) from
Operations (23) 6,985 6,962 109 178 84 255 542 8,130
Interest Expense & Other,
net (221) (170) (391) (7) (9) 6 45 - (356)
---------- --------- ---------- ------- ------- ------ -------- --------- ----------
Income (Loss) Before Taxes (244) 6,815 6,571 102 169 90 300 542 7,774
Provision for Income Taxes - 2,937 2,937 - - - - 481 (5) 3,418
---------- --------- ---------- ------- ------- ------ -------- --------- ----------
Net Income (Loss) $ (244) $ 3,878 $ 3,634 $ 102 $ 169 $ 90 $ 300 $ 61 $ 4,356
========== ========= ========== ======= ======= ====== ======== ========= ==========
Weighted Average Shares
Outstanding 1,083,334 (9) 8,781,726 (10) 1,351,704 (10) 10,133,430
========== ========== ========= ==========
Earnings (Loss) Per Share ($0.23) $0.41 $0.43
========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these unaudited pro forma
condensed combined financial statements
5
<PAGE>
<TABLE>
<CAPTION>
TRAVEL SERVICES INTERNATIONAL, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1995
(in thousands, except per share data)
TSI CRUISE - CRUISE - CRUISE SHIP 'N' PRO FORMA
HISTORICAL(7) ONE WORLD FAIRS SHORE ADJUSTMENTS PRO FORMA
------------- -------- -------- ------ -------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Revenues $ 21,919 $ 1,221 $ 2,586 $ 866 $ 3,432 $ - $ 30,024
Operating Expenses 15,413 672 1,168 256 1,570 - 19,079
---------- ------- ------- ------ -------- --------- ----------
Gross Profit 6,506 549 1,418 610 1,862 - 10,945
General & Administrative Expenses 6,686 556 1,317 611 1,364 - 10,534
Goodwill Amortization - - - - - - -
---------- ------- ------- ------ -------- --------- ----------
Income (Loss) from Operations (180) (7) 101 (1) 498 - 411
Interest Expense & Other, net (81) 1 3 2 32 - (43)
---------- ------- ------- ------ -------- --------- ----------
Income (Loss) Before Taxes (261) (6) 104 1 530 - 368
Provision for Income Taxes - - - - - 147 (5) 147
---------- ------- ------- ------ -------- --------- ----------
Net Income (Loss) $ (261) $ (6) $ 104 $ 1 $ 530 $ (147) $ 221
========== ======= ======= ====== ======== ========= ==========
Weighted Average Shares Outstanding 1,083,334 (9) 1,351,704 (1) 2,435,038
========== ========= ==========
Earnings (Loss) Per Share ($0.24) $0.09
========== ==========
</TABLE>
The accompanying notes are an integral part of these unaudited pro forma
condensed combined financial statements
6
<PAGE>
<TABLE>
<CAPTION>
TRAVEL SERVICES INTERNATIONAL, INC.,
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1994
(in thousands, except per share data)
TSI CRUISE - CRUISE - CRUISE SHIP 'N' PRO FORMA
HISTORICAL(7) ONE WORLD FAIRS SHORE ADJUSTMENTS PRO FORMA
------------- -------- -------- ------ -------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Revenues $ 17,156 $ 906 $ 2,583 $ 827 $ 2,026 $ - $ 23,498
Operating Expenses 11,101 549 1,402 139 1,279 - 14,470
---------- ------- ------- ------ -------- --------- ----------
Gross Profit 6,055 357 1,181 688 747 - 9,028
General & Administrative Expenses 6,276 310 1,030 644 658 - 8,918
Goodwill Amortization - - - - - - -
---------- ------- ------- ------ -------- --------- ----------
Income (Loss) from Operations (221) 47 151 44 89 - 110
Interest Expense & Other, net (28) - 4 (1) (11) - (36)
---------- ------- ------- ------ -------- --------- ----------
Income (Loss) Before Taxes (249) 47 155 43 78 - 74
Provision for Income Taxes - - - - - 30 (5) 30
---------- ------- ------- ------ -------- --------- ----------
Net Income (Loss) $ (249) $ 47 $ 155 $ 43 $ 78 $ (30) $ 44
========== ======= ======= ====== ======== ========= ==========
Weighted Average Shares Outstanding 1,083,334 (9) 1,351,704 (1) 2,435,038
========== ========= ==========
Earnings (Loss) Per Share ($0.23) $0.02
========== ==========
</TABLE>
The accompanying notes are an integral part of these unaudited pro forma
condensed combined financial statements
7
<PAGE>
TRAVEL SERVICES INTERNATIONAL, INC. AND ACQUIRED COMPANIES
NOTES TO UNAUDITED PRO FORMA
CONDENSED COMBINED FINANCIAL STATEMENTS
The Company filed its report on Form 8-K on December 4, 1997 with respect to the
acquisition of four entities which were expected to be accounted for using the
pooling of interest method of accounting. The pro forma financial information
with respect to those acquisitions is presented herein. The unaudited pro forma
condensed combined financial statements and related notes should be read in
conjunction with the Company's Registration Statement dated July 22, 1997, Form
10-Q filed on November 14, 1997, and Form 8-K filed on December 4, 1997.
1. Represents the shares issued in connection with the November 1997
acquisitions, (the "Recent Acquisitions") accounted for using the pooling
of interests method of accounting.
2. Represents the historical operations of TSI, as reported in the Company's
Form 10-Q for the quarter ended September 30, 1997, filed with the
Securities and Exchange Commission on November 14, 1997.
3. Represents the pro forma historical operations from January 1, 1997 to July
27, 1997 of companies acquired in connection with the July 28, 1997
Combinations (the "Founding Companies"), as reported in the Company's Form
10-Q for the quarter ended September 30, 1997.
4. Represents a reduction in salaries, bonuses, and benefits as set forth in
contractual agreements with respect to the compensation of the former
owners and certain key employees of the Recent Acquisitions (Compensation
Differential).
5. Represents the incremental provision for federal and state income taxes
relating to the pro forma income of the Recent Acquisitions (and reflecting
the tax benefit of losses of Auto Europe for 1995 and 1994).
6. Represents the weighted average shares outstanding as reported in the
Company's Form 10-Q for the quarter ended September 30, 1997.
7. Represents the historical operations of Auto Europe, the accounting
acquiror, as reported in the Company's Registration Statement dated July
22, 1997.
8. Represents the pro forma historical operations of the Founding Companies,
as reported in the Company's Registration Statement dated July 22, 1997.
9. Represents the shares issued in connection with the acquisition of
substantially all the assets of Auto Europe, the accounting acquiror, in
connection with the July 28, 1997 Combinations.
10. Represents the shares outstanding as a result of the Combinations and the
Offering.
8
<PAGE>
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.
TRAVEL SERVICES INTERNATIONAL, INC.
(Registrant)
Date: January 30, 1998
/s/ JILL M. VALES
----------------------------------------------------
Jill M. Vales
Senior Vice President and Chief Financial Officer
(as both a duly authorized officer of the registrant
and the principal financial officer or chief
accounting officer of the registrant)
9
