UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A2
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): May 5, 1999
FACTUAL DATA CORP.
(Exact name of registrant as specified in its charter)
Colorado 0-24205 84-1449911
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer
incorporation or organization) Identification No.)
5200 Hahns Peak Drive
Fort Collins, Colorado 80538
(Address of principal executive offices)
(970) 663-5700
(Registrant's telephone number, including area code)
<PAGE>
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) The registrant is filing the required financial statements in
connection with its acquisition of F.D.D., Inc. and F.D.S.C.,
Inc. on May 5, 1999 on this amendment to Form 8-K.
(b) The registrant is also filing the required pro forma information
in connection with the acquisition described in Item 7a above on
this amendment to Form 8-K.
<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.
FACTUAL DATA CORP.
Date: October 15, 1999 By:/s/Jerald H. Donnan
-------------------
Jerald H. Donnan
Chief Executive Officer
<PAGE>
UNAUDITED PRO FORMA COMBINED STATEMENTS OF
INCOME (LOSS) AND UNAUDITED PRO FORMA
COMBINED BALANCE SHEET
The following unaudited pro forma combined statements of income for the year
ended December 31, 1998 and the three month period ended March 31, 1999 and the
unaudited pro forma combined balance sheet as of December 31, 1998 and March 31,
1999 give effect to the business combination of Factual Data Corp. and F.D.D.,
Inc. and F.D.S.C., Inc. The transaction between Factual Data Corp. and F.D.D.,
Inc. and F.D.S.C., Inc. has been accounted for as a combination of companies
under the purchase method. The unaudited pro forma statements of income have
been prepared as if the proposed transaction occurred on January 1, 1998. The
unaudited pro forma balance sheets have been prepared as if the proposed
transaction occurred March 31, 1999 and December 31, 1998, respectively. These
pro forma statements are not necessarily indicative of the results of operations
or the financial position as they may be in the future or as they might have
been had the transactions become effective on the above mentioned date.
The unaudited pro forma combined statements of income for the year ended
December 31, 1998 and the three month period ended March 31, 1999 includes the
results of operations of Factual Data Corp., and F.D.D., Inc. and F.D.S.C., Inc.
The unaudited pro forma combined statements of income and the unaudited pro
forma combined balance sheets should be read in conjunction with the separate
historical financial statements and notes thereto of Factual Data Corp. and
F.D.D., Inc. and F.D.S.C., Inc.
<PAGE>
Notes to Unaudited Pro Forma Combined Financial Statements
The following notes and adjustments are related to the business
combination between Factual Data Corp. (FDC) and F.D.D., Inc. (FDD)
and F.D.S.C., Inc. (FDSC).
1. Reflects the pro forma amounts contained in Form 8-K/A filed on May 10,
1999 which gives effect to FDC's acquisition of United Data Services, Inc.
2. Reflects the March 31, 1999 unaudited balance sheet and statement of
income for the three months ended March 31, 1999 of Factual Data Corp. as
filed on Form 10-QSB on May 13, 1999.
3. Eliminates assets and liabilities not acquired by FDC in connection with
its acquisition of F.D.D., Inc. and F.D.S.C., Inc.
4. Records the acquisition of F.D.D., Inc. and F.D.S.C., Inc. for $2,680,000.
To finance the acquisition, FDC paid $2,000,000 in cash at closing and
issued a $680,000 note payable bearing interest at 8% per annum. The
purchase price has been allocated as follows:
Asset Category
Property and equipment $ 40,700
Deposits 1,472
Intangible assets 2,637,828
---------
$2,680,000
==========
The $2,000,000 paid in cash has been reflected as a payable at
December 31, 1998 as cash balances reflected based on Note 1
above were not sufficient to cover the $2,000,000 payment.
5. To eliminate depreciation expense which will not continue following the
business combination.
6. To record depreciation and amortization of fixed assets and intangibles
acquired. Fixed assets are depreciated over a five year life, non-compete
agreements over the life of the agreements and customer lists over fifteen
years.
7. To eliminate royalty expense and fees and related system affiliate
revenues.
8. To eliminate officers salaries and bonuses who will no longer be employed
by the Company.
9. To record interest expense on acquisition debt at 8% per annum.
10. Pro forma income tax adjustment at the statutory rate of 37% for federal
and state income taxes.
<PAGE>
Unaudited Pro Forma Combined Balance Sheet
As of March 31, 1999
<TABLE>
<CAPTION>
Pro Forma Adjustments
FDD and ------------------------------
FDC (2) FDSC Total Debit Credit Combined
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Cash ..................... $ 10,607,214 $ 237,594 $ 10,844,808 $ -- $ (237,594)(3) $ 8,607,214
(2,000,000)(4) --
Prepaid expenses and other 292,821 5,260 298,081 -- (5,260)(3) 292,821
Accounts receivable, net . 3,603,521 438,227 4,041,748 -- (438,227)(3) 3,603,521
Stock subscription
receivable .............. 4,500,000 -- 4,500,000 -- -- 4,500,000
------------ ------------ ------------ ------------ ------------ ------------
Total current assets .... 19,003,556 681,081 19,684,637 -- (2,681,081) 17,003,556
------------ ------------ ------------ ------------ ------------ ------------
Property and equipment, .. 3,551,917 57,791 3,609,708 40,700(4) (57,791)(3) 3,592,617
net
Other assets ............. 12,055,224 1,472 12,056,696 2,637,828(4) -- 14,694,524
------------ ------------ ------------ ------------ ------------ ------------
$ 34,610,697 $ 740,344 $ 35,351,041 $ 2,678,528 $ (2,738,872) $ 35,290,697
============ ============ ============ ============ ============ ============
Current portion of
long-term debt .......... $ 1,879,942 $ -- $ 1,879,942 $ -- $ (226,667)(4) $ 2,106,609
Accounts payable ......... 3,704,223 145,155 3,849,378 145,155(3) -- 3,704,223
Accrued payroll and
expenses ................ 447,202 21,797 468,999 21,797(3) -- 447,202
Income taxes payable ..... 179,221 -- 179,221 -- -- 179,221
Deferred income taxes .... 59,291 -- 59,291 -- -- 59,291
------------ ------------ ------------ ------------ ------------ ------------
Total current
liabilities .......... 6,269,879 166,952 6,436,831 166,952 (226,667) 6,496,546
------------ ------------ ------------ ------------ ------------ ------------
Long-term debt ........... 3,153,496 -- 3,153,496 -- (453,333)(4) 3,606,829
Deferred income taxes .... 311,749 -- 311,749 -- -- 311,749
Shareholders' equity
Common stock ............ 22,145,733 5,500 22,151,233 5,500(3) -- 22,145,733
Retained earnings ....... 2,729,840 567,892 3,297,732 567,892(3) -- 2,729,840
------------ ------------ ------------ ------------ ------------ ------------
24,875,573 573,392 25,448,965 573,392 -- 24,875,573
------------ ------------ ------------ ------------ ------------ ------------
$ 34,610,697 $ 740,344 $ 35,351,041 $ 740,344 $ (680,000) $ 35,290,697
============ ============ ============ ============ ============ ============
</TABLE>
<PAGE>
Unaudited Pro Forma Combined Balance Sheet
As of December 31, 1998
<TABLE>
<CAPTION>
Pro Forma Adjustments
FDD and ------------------------------
FDC (1) FDSC Total Debit Credit Combined
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Cash ........................ $ (94,319) $ 307,771 $ 213,452 $ -- $ (307,771)(3) $ (94,319)
Prepaid expenses and
other ...................... 105,964 2,532 108,496 -- (2,532)(3) 105,964
Accounts receivable, net .... 2,919,578 396,825 3,316,403 -- (396,825)(3) 2,919,578
------------ ------------ ------------ ------------ ------------ ------------
Total current assets ....... 2,931,223 707,128 3,638,351 -- (707,128) 2,931,223
------------ ------------ ------------ ------------ ------------ ------------
Property and equipment,
net ........................ 2,990,419 57,518 3,047,937 40,700(4) (57,518)(3) 3,031,119
Other assets ................ 13,355,259 1,472 13,356,731 2,637,828(4) -- 15,994,559
------------ ------------ ------------ ------------ ------------ ------------
$19,276,901 $766,118 $ 20,043,019 $ 2,678,528 $ (764,646) $ 21,956,901
============ ============ ============ ============ ============ ============
Current portion of ..........
long-term debt $ 1,579,953 $ -- $ 1,579,953 $ -- $ (226,667)(4) $ 3,806,620
(2,000,000)(4)
Accounts payable ............ 2,225,685 120,085 2,345,770 120,085(3) -- 2,225,685
Accrued payroll and
expenses ................... 431,441 18,959 450,400 18,959(3) -- 431,441
Income taxes payable ........ 524,186 -- 524,186 -- -- 524,186
Deferred income taxes ....... 59,291 -- 59,291 -- -- 59,291
------------ ------------ ------------ ------------ ------------ ------------
Total current
liabilities ............. 4,820,556 139,044 4,959,600 139,044 (2,226,667) 7,047,223
------------ ------------ ------------ ------------ ------------ ------------
Long-term debt .............. 3,317,571 -- 3,317,571 -- (453,333)(4) 3,770,904
Deferred income taxes ....... 302,762 -- 302,762 -- -- 302,762
Shareholders' equity
Common stock ............... 8,614,705 5,500 8,620,205 5,500(3) -- 8,614,705
Retained earnings .......... 2,221,307 621,574 2,842,881 621,574(3) -- 2,221,307
------------ ------------ ------------ ------------ ------------ ------------
10,836,012 627,074 11,463,086 627,074 -- 10,836,012
------------ ------------ ------------ ------------ ------------ ------------
$19,276,901 $766,118 $ 20,043,019 $ 766,118 $ (2,680,000) $ 21,956,901
============ ============ ============ ============ ============= ============
</TABLE>
<PAGE>
Unaudited Pro Forma Combined Statement of Operations
For the Three Months Ended March 31, 1999
<TABLE>
<CAPTION>
Pro Forma Adjustments
FDD and -------------------------------
FDC (2) FDSC Total Debit Credit Combined
------------ ----------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Information systems .. $ 4,391,299 $ 799,775 $ 5,191,074 $ -- $ -- $ 5,191,074
Ancillary income ..... 477,714 -- 477,714 32,665(7) -- 445,049
System affiliates .... 483,869 -- 483,869 76,139(7) -- 407,730
----------- ----------- ----------- ----------- ----------- -----------
Total revenue ....... 5,352,882 799,775 6,152,657 108,804 -- 6,043,853
----------- ----------- ----------- ----------- ----------- -----------
Operating expenses
Cost of services
provided .......... 3,199,662 427,202 3,626,864 -- (108,804)(7) 3,518,060
Selling, general and
administration .... 1,293,407 166,908 1,460,315 46,499(6) (11,100)(8) 1,484,670
-- -- -- -- (11,044)(5) --
----------- ----------- ----------- ----------- ----------- -----------
Total operating
expenses .......... 4,493,069 594,110 5,087,179 46,499 (130,948) 5,002,730
----------- ----------- ----------- ----------- ----------- -----------
Income (loss) from
operations .......... 859,813 205,665 1,065,478 155,303 (130,948) 1,041,123
----------- ----------- ----------- ----------- ----------- -----------
Other income, net .... 59,797 5,653 65,450 -- -- 65,450
Interest expense ..... (85,854) -- (85,854) 13,600(9) -- (99,454)
----------- ----------- ----------- ----------- ----------- -----------
Income before taxes .. 833,756 211,318 1,045,074 168,903 (130,948) 1,007,119
Income tax expense
(benefit) ........... 325,223 78,188 403,411 -- (14,043)(10) 389,368
----------- ----------- ----------- ----------- ----------- -----------
Net income ........... $ 508,533 $ 133,130 $ 641,663 $ 168,903 $ (144,991) $ 617,751
=========== =========== =========== =========== =========== ===========
Basic earnings per share $ .14 $ .17
=========== ===========
Weighted average pro
forma shares 3,596,663 3,596,663
=========== ===========
outstanding - basic
Diluted earnings per $ .13 $ .16
=========== ===========
share
Weighted average pro
forma shares
outstanding - diluted 3,790,037 3,790,037
=========== ==========
</TABLE>
<PAGE>
Unaudited Pro Forma Combined Statement of Income
For the Year Ended December 31, 1998
<TABLE>
<CAPTION>
Pro Forma Adjustments
FDD and -------------------------------
FDC (1) FDSC Total Debit Credit Combined
------------ ----------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Information systems .. $ 13,231,023 $ 3,581,562 $ 16,812,585 $ -- $ -- $ 16,812,585
Ancillary income ..... 1,451,104 -- 1,451,104 136,343(7) -- 1,314,761
System affiliates .... 2,198,260 -- 2,198,260 335,326(7) -- 1,862,934
Training, license and
other ............... 58,578 -- 58,578 -- -- 58,578
------------ ------------ ------------ ------------ ------------ ------------
Total revenue ....... 16,938,965 3,581,562 20,520,527 471,669 -- 20,048,858
------------ ------------ ------------ ------------ ------------ ------------
Operating expenses
Cost of services
provided .......... 9,034,032 1,907,049 10,941,081 -- (471,669)(7) 10,469,412
Selling, general and
administration .... 4,104,023 709,575 4,813,598 185,995(6) (44,400)(8) 4,910,432
-- -- -- -- (44,761)(5) --
------------ ------------ ------------ ------------ ------------ ------------
Total operating
expenses .......... 13,138,055 2,616,624 15,754,679 185,995 (560,830) 15,379,844
------------ ------------ ------------ ------------ ------------ ------------
Income (loss) from
operations .......... 3,800,910 964,938 4,765,848 657,664 (560,830) 4,669,014
------------ ------------ ------------ ------------ ------------ ------------
Other income ......... 186,515 30,726 217,241 -- -- 217,241
Interest expense ..... (240,421) -- (240,421) 54,400(9) -- (294,821)
------------ ------------ ------------ ------------ ------------ ------------
Income (loss) before
taxes ............... 3,747,004 995,664 4,742,668 712,064 (560,830) 4,591,434
Income tax expense
(benefit) ........... 1,313,300 368,396 1,681,696 -- (55,957)(10) 1,625,739
------------ ------------ ------------ ------------ ------------ ------------
Net income (loss) .... $ 2,433,704 $ 627,268 $ 3,060,972 $ 712,064 $ (616,787) $ 2,965,694
============ ============ ============ ============ ============ ============
Basic earnings per share $ .91 $ 1.11
============ ============
Weighted average pro
forma shares
outstanding - basic 2,680,753 2,680,753
============ ============
Diluted earnings per
share $ .88 $ 1.07
============ ============
Weighted average pro
forma shares
outstanding - diluted 2,769,214 2,769,214
============ ============
</TABLE>
<PAGE>
