FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For The Quarterly Period Ended March 31, 1995
Commission File Number 0-8909
EMERGENT GROUP, INC.
(Exact name of registrant as specified in its charter)
South Carolina 57-0513287
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
P. O. Box 17526
Greenville, South Carolina 29606
(Address of principal executive offices)
(Zip Code)
(803) 235-8056
(Registrant's telephone number)
Former name, former address and former fiscal year, if changed since
last report
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15 (d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such report),
and (2) has been subject to such filing requirements for the past 90
days.
Yes X No
CLASS OF COMMON STOCK Outstanding at April 30, 1995
Common $ .05 par value 200,574.56
Class A Common $ .05 par value 9,803,438.44
<PAGE>
PART 1 - FINANCIAL INFORMATION
EMERGENT GROUP, INC. AND SUBSIDIARIES
Set forth on pages 3 through 7 are the consolidated balance sheet
as of December 31, 1994 and the unaudited consolidated balance
sheet as of March 31, 1995 of Emergent Group, Inc. and
subsidiaries and the unaudited consolidated statements of income
for the three-month periods ended March 31, 1995 and 1994 and
unaudited consolidated statements of cash flows for the three-
month periods ended March 31, 1995 and 1994.
Elliott, Davis & Company, L.L.P. previously examined and reported
on the Company's financial statements for the year ended December
31, 1994, from which the consolidated balance sheet as of that
date is derived.
2
<PAGE>
EMERGENT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31,
1995 December 31,
(Unaudited) 1994
(in thousands)
<S> <C> <C>
ASSETS
Cash and cash equivalents, including
reverse repurchase agreements of
$44,000 in 1995 and $378,000 in 1994 $ 1,183 $ 384
Short-term investments, at cost 197 597
Accounts receivable, net of allowance
for doubtful accounts of $292,000 in
1995 and $271,000 in 1994 636 898
Inventories, net of reserve for obsolete
inventory of $262,000 in 1995 and 1994 3,553 3,719
Excess servicing receivable 1,884 1,872
Loans receivable
Loans receivable 86,436 88,023
Notes receivable from related parties 180 169
Accrued interest 1,002 927
87,618 89,119
Less allowances for credit losses (1,565) (1,433)
Less unearned discount (1,612) (1,359)
84,441 86,327
Investment in mortgage loans held for
sale 8,114 3,662
Note receivable 844 920
Property, plant and equipment 6,674 6,836
Less accumulated depreciation (3,580) (3,442)
3,094 3,394
Excess of cost over net assets of
acquired businesses, net of
accumulated amortization of
$562,000 in 1995 and $517,000
in 1994 2,946 2,991
Real estate and personal property
held for sale, net of allowance of
$562,000 in 1995 and $297,000 in 1994 5,874 5,930
Deposit base intangibles, net of
accumulated amortization of
$440,000 in 1995 and $412,000 in 1994 684 712
Other assets 1,420 1,288
TOTAL ASSETS $114,870 $112,694
</TABLE>
3
<PAGE>
EMERGENT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS--(Continued)
<TABLE>
<CAPTION>
March 31,
1995 December 31,
(Unaudited) 1994
(in thousands)
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Accounts payable $ 1,233 $ 1,242
Accrued and sundry liabilities 3,926 4,605
Accrued interest 475 478
Notes payable, including $858,000
in 1995 and $891,000 in 1994
to related parties 99,245 95,933
Minority interest 122 736
TOTAL LIABILITIES 105,001 102,994
SHAREHOLDERS' EQUITY
Common Stock, par value $.05 a
share--authorized 400,000 shares,
issued and outstanding 200,575 in
1995 and 1994 10 10
Class A Common Stock, par value $.05 a
share--authorized 20,000,000 shares;
issued and outstanding 9,803,438 in
1995 and 1994 490 490
Capital in excess of par value 6,924 6,924
Retained earnings 2,445 2,276
TOTAL SHAREHOLDERS' EQUITY 9,869 9,700
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $114,870 $112,694
</TABLE>
See notes to unaudited financial statements
4
<PAGE>
EMERGENT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1995 1994
(in thousands except
per share amounts)
<S> <C> <C>
Revenues:
Interest and finance charges $ 3,368 $ 2,249
Apparel manufacturing sales 3,339 3,786
Transportation, including rental
income of $197,000 in 1994 108 441
Gain on sale of loans 444 601
Realized gain on investment sales 765 ---
Mortgage banking revenue 11 34
Other 236 161
8,271 7,272
Expenses:
Interest 1,800 1,474
Cost of apparel manufacturing sales 2,210 2,178
Transportation 71 202
Selling, general and administrative 3,528 2,960
Provision for credit losses 250 202
Provision for loss on real estate and
personal property held for sale 239 ---
8,098 7,016
NET INCOME BEFORE INCOME TAXES
AND MINORITY INTEREST 173 256
(Benefit) provision for Federal and
State income taxes:
Current 25 5
Deferred (29) (265)
(4) (260)
NET INCOME BEFORE MINORITY INTEREST 177 516
Minority interest in earnings of
subsidiaries 8 5
NET INCOME $ 169 $ 511
Net income per share of Common Stock $ .02 $ .05
Computed on the weighted average number
of shares issued 10,048,899 9,852,638
</TABLE>
See notes to unaudited financial statements
5
<PAGE>
EMERGENT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1995 1994
(in thousands)
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 169 $ 511
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 228 300
Provision for losses on finance
receivables 250 202
Provision for losses on real estate
and personal property held for sale 238 ---
Gain on sale of investments in
mortgage loans (765) ---
Net increase in deferred
premium income 254 126
Net decrease in excess servicing
receivable (13) (161)
Deferred income taxes 25 (265)
Loans originated--held for sale (5,308) (6,300)
Principal proceeds from loans sold 8,852 6,500
Net increase in funds collected
and not remitted to participants
on loans sold 138 27
Revenue recorded under an assigned
operating lease --- (197)
Interest expense from assignment of
an operating lease --- 66
Minority interest in income of
subsidiaries 8 5
Changes in operating assets and liabilities
increasing (decreasing) cash:
Accounts receivable 255 (53)
Accounts payable, accrued and sundry
liabilities and income taxes payable (1,097) (365)
Inventories 166 262
Deferred premium income receivable --- 64
Accrued interest receivable (74) (4)
Accrued interest payable (4) (84)
Other assets (165) 29
NET CASH PROVIDED BY OPERATING
ACTIVITIES 3,157 663
</TABLE>
6
<PAGE>
EMERGENT GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)--(Continued)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1995 1994
(in thousands)
<S> <C> <C>
INVESTING ACTIVITIES
Principal proceeds on loans not sold $ 12,024 $ 5,940
Purchase of investments in mortgage
loans held for sale (26,850) (12,655)
Cash paid for new loans receivable
held for investment (14,655) (1,785)
Proceeds from sale of real estate
and personal property held for sale 560 204
Purchases of property and equipment (190) (97)
Improvements and related costs
incurred on real estate held
for sale (82) (65)
Proceeds from sale of short-term
investments 400 ---
Rents received on real estate held
for sale 32 9
Payments received on notes receivable 75 ---
Proceeds from sale of investments in
mortgage loans 23,015 ---
Purchases of investments --- (7)
NET CASH (USED IN) INVESTING
ACTIVITIES (5,671) (8,456)
FINANCING ACTIVITIES
Payments of long-term debt and
capital lease obligations (41) (121)
Net increase in notes payable to
investors 8,715 1,463
Net (decrease) increase in
subordinated debentures (6,366) 1,080
Advances under bank lines of credit 36,187 13,321
Payments on bank lines of credit (35,182) (10,883)
Payments on mortgages payable --- (80)
Payment on note payable to minority
shareholder --- (50)
NET CASH PROVIDED BY
FINANCING ACTIVITIES 3,313 4,730
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 799 (3,063)
Cash and cash equivalents at
beginning of year 384 4,960
CASH AND CASH EQUIVALENTS AT
MARCH 31 $ 1,183 $ 1,897
</TABLE>
See notes to unaudited financial statements
7
EMERGENT GROUP, INC. AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE A--BASIS OF PREPARATION
The accompanying consolidated financial statements are prepared in accordance
with the SEC's rules regarding interim financial statements, and therefore do
not contain all disclosures required by generally accepted accounting
principles for annual financial statements. Reference should be made to the
financial statements included in the Company's annual report for 1994
including the footnotes thereto.
The consolidated balance sheet as of March 31, 1995 and the consolidated
statements of income for the three-month periods ended March 31, 1995 and
1994 and the consolidated statements of cash flows for the three-month
periods ended March 31, 1995 and 1994 are unaudited and in the opinion of
management contain all known adjustments necessary to present fairly the
financial position, results of operations and cash flows.
The Company considers all highly liquid investments readily convertible to
known amounts of cash or having a maturity of three months or less to be
cash equivalents.
NOTE B--INTEREST AND INCOME TAXES
For the three month period ended March 31, the Company paid interest of
$1,795,000 in 1995 and $1,327,000 in 1994.
For the three month period ended March 31, the Company paid income taxes of
$17,000 in 1995 and $56,000 in 1994.
NOTE C--CASH AND CASH EQUIVALENTS
The Company maintains its primary checking accounts with two principal banks
and makes overnight investments in reverse repurchase agreements with those
same banks. The amounts maintained in the checking accounts are insured by
the Federal Deposit Insurance Corporation ("FDIC") up to $100,000. At
March 31, 1995 the amounts maintained in overnight investments in reverse
repurchase agreements, which are not insured by the FDIC, totaled $44,000
which was with Carolina First Bank. The investments were collateralized by
U.S. Government securities held by the banks.
Short-term investments include a certificate of deposit with Carolina First
Bank in the face amount of $197,000, plus accrued interest, at March 31,
1995. The cost of this investment approximates market.
NOTE D--SEGMENT INFORMATION
The Company currently operates in three industry segments:
1) The Financial Services segment consists of making first and second
residential mortgage loans, construction loans, small business loans
and consumer loans.
8
<PAGE>
EMERGENT GROUP, INC. AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)--(Continued)
2) The Apparel Manufacturing segment consists of design, manufacture,
and marketing and dresses for children.
3) The Transportation segment consists of short line railroad operations,
boxcar leasing and railcar repair shop operations.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION
RESULTS OF OPERATIONS
Net income for the three-month period ended March 31, 1995 was $169,000
compared to $511,000 for the comparable period in 1994. This decrease in
net income was due principally to the reduction in net income at Young
Generations, Inc. ("YGI"), which comprises the Apparel Manufacturing segment.
This decrease in net income at YGI was partially offset by the improved
results of the Financial Services segment, principally due to the net income
of Carolina Investors, Inc. ("CII").
The Financial Services segment had net income of $393,000 for the
three-month period ended March 31, 1995 compared to net income of $74,000
for the same period in 1994. This improvement in net income of the Financial
Services segment was due principally to the improved results of CII which had
net income of $659,000 for the 1995 period compared to a net loss of $6,000
for the 1994 period. CII sells floating rate notes and subordinated debentures
to residents of South Carolina and originates and services first and second
residential mortgage loans. Emergent Business Capital, Inc. ("EBC"), which
originates and services commercial loans partially guaranteed by the Small
Business Administration ("SBA"), had a loss of $222,000 for the three-month
period ended March 31, 1995 compared to net income of $65,000 for the
comparable period in 1994.
The Apparel Manufacturing segment, which consists of the operations of YGI,
had a net loss of $339,000 for the three-month period ended March 31, 1995
compared to net income of $112,000 for the comparable period in 1994. This
decrease in net income was due to lower sales volume.
The Transportation segment had net income of $27,000 for the three-month
period ended March 31, 1995 compared to net income of $110,000 for the
comparable period in 1994. This decrease in net income was due to the sale
of Peninsula Terminal Company ("PT") and the sale of 346 leased boxcars
during 1994.
FINANCIAL SERVICES
Revenues from the Financial Services segment were $4,711,000 for the
three-month period ended March 31, 1995 compared to revenues of
9
<PAGE>
$2,943,000 for the comparable period in 1994. The increase in revenues was
due principally to the increase in interest income at EBC and CII as a
result of the increase in loan portfolios and the income in realized gains
on investment sales at CII. Interest income for EBC was $699,000 for the
three-month period in 1995 compared to $352,000 for the same period in 1994.
Interest income for CII was $1,875,000 for the three-month period in 1995
compared to $1,309,000 for the comparable period in 1994. EBC had loans
receivable of $23,211,000 at March 31, 1995 compared to $19,306,000 at
March 31, 1994. CII had a growth in loans receivable from $45,598,000 at
March 31, 1994 to $60,964,000 at March 31, 1995. Realized gain on investment
sales for CII for the three-month period in 1995 was $765,000 compared to no
activity for the comparable period in 1994.
Operating costs of the Financial Services segment were $4,297,000 for the
three-month period ending March 31, 1995 compared to $2,782,000 for the
same period in 1994. The increase in operating costs was due principally to
the increase in interest expense as a result of increased borrowing to fund
the growth in the loan portfolios at EBC, CII and Loan Pro$, Inc. ("Loan
Pro$"). The increase in operating costs was also due to the additional
provision for losses on real estate held for sale at CII and the increase in
selling, general and administrative costs as a result of expansion at CII
and the opening of new loan production offices by Loan Pro$ and Premier
Financial Services, Inc. ("Premier").
Loan Pro$, which originates and services consumer loans secured by preowned
automobiles, had net income of $38,000 for the three-month period in 1995
compared to $12,000 for the same period in 1994. This improvement was due to
the increase in interest income from $273,000 for the three-month period in
1994 to $456,000 for the same period in 1995. The increase in interest income
was due to the growth in the loan portfolio from $4,599,000 at March 31, 1994
to $7,569,000 at March 31, 1995. The increase in interest income was offset by
the increase in expenses due to the opening of Loan Pro$'s fourth loan
production office in January 1995.
Premier had a net loss of $7,000 for the three-month period ended March 31,
1995 compared to net income of $5,000 for the same period in 1994. This
decrease was due principally to the additional expenses resulting from the
opening of Premier's second loan production office in January 1995. The
increase in interest income from $131,000 for the three-month period in 1994
to $154,000 for the same period in 1995 somewhat offset the increase in
expenses due to the opening of Premier's second office.
Management believes that the Financial Services segment will continue to
operate profitably in 1995 due to the continued growth in loan portfolios,
principally at CII and the increase in mortgage banking revenue and
realized gains on investment sales at CII.
The operations of EBC are subject to the changes in regulations and
operating procedures of the SBA. The SBA reduced the total amount of any
single loan which it would guarantee from $1,000,000 to $500,000 effective
January 1, 1995. The SBA has announced that it will discontinue federal
guaranties for certain refinancings as of May 15, 1995. The SBA
will continue to guarantee refinancings for debts to
10
<PAGE>
suppliers. Management believes that these changes may have an adverse
effect on the volume of loans made by EBC. Management anticipates that these
policy changes by the SBA may be subject to review and possible revision
and improvement as the fiscal 1996 budget of the U.S. Government is finalized.
APPAREL MANUFACTURING
YGI had revenues of $3,339,000 for the three-month period ended March 31,
1995 compared to revenues of $3,786,000 for the same period in 1994. Net
sales at wholesale to specialty and department stores decreased from
$2,551,000 for the three-month period in 1994 to $2,332,000 for the same
period in 1995. This decrease was due to the reduced number of specialty
stores in the market and the reduction of orders placed by retail
department stores. Sales in YGI's retail factory outlet stores were
$1,007,000 for the three-month period in 1995 compared to $1,235,000
for the same period in 1994. The decrease in sales in the retail factory
outlet stores was due principally to the Easter holiday falling in the
second quarter (April 16) in 1995 compared to April 3 in 1994. The Easter
season is a major selling period for the dresses manufactured by EGI,
resulting in a significant sales increase in the retail factory outlet stores
during the two weeks prior to Easter Sunday.
Cost of sales for YGI was $2,210,000 for the three-month period ending
March 31, 1995 compared to $2,178,000 for the same period in 1994.
The increase in cost of sales was due principally to the increased
cost of manufacturing as a result of YGI's efforts to improve quality,
styling and response to customers.
Management believes that YGI's operating results may improve for the
remainder of 1995 due to efforts to increase the quality and styling
of the children's dresses being manufactured, an increase in marketing
efforts to department and specialty stores and increased volume at
YGI's retail factory outlet stores. There is, however, no assurance
that this will occur. There are no plans for YGI to open additional
retail factory outlet stores in 1995.
TRANSPORTATION
Revenues in the Transportation segment were $108,000 for the three-month
period ended March 31, 1995 compared to revenues of $441,000 for the same
period in 1994. This reduction was due to the sale of PT and the sale of
346 leased boxcars during the last six months of 1994.
Operating costs in the Transportation segment were $82,000 for the
three-month period ended March 31, 1995 compared to $217,000 for the
same period in 1994. This decrease was due to the sale of PT and the
sale of 346 leased boxcars during the last six months of 1994.
Management is continuing its efforts to seek buyers for the remaining
assets in the Transportation segment and intends to continue operating
those businesses in the Transportation segment that can operate profitably
until such a buyer is identified.
11
<PAGE>
INTEREST
Interest income for the three-month period ended March 31, 1995 was
$3,368,000 compared to $2,249,000 for the same period in 1994. The increase
in interest income was due to growth in the loan portfolios in the
Financial Services segment. Interest income for the Financial Services
segment was $3,337,000 for the three-month period in 1995 compared to
$2,230,000 for the same period in 1994.
Interest expense increased from $1,474,000 for the three-month period
ended March 31, 1994 to $1,800,000 for the same period in 1995. The
increase in interest expense was a result of increased borrowing by
the Financial Services segment to fund the growth in its loan portfolios.
Interest expense in the Financial Services segment was $1,745,000 for the
three-month period ended March 31, 1995 compared to $1,298,000 for the
same period in 1994. The increase in interest expense was due principally
to increased borrowing by CII through the growth in sales of subordinated
debentures and senior floating rate notes and increased borrowing by EBC
under bank lines of credit. Borrowings attributable to the sales of these
debt instruments at CII was $79,844,000 at March 31, 1995 compared to
$72,368,000 at March 31, 1994. CII had $2,205,000 due to banks at
March 31, 1995 compared to no bank debt at March 31, 1994. EBC had
outstanding debt to banks of $11,060,000 at March 31, 1995 compared to
$3,979,000 at March 31, 1994.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE
Selling, general and administrative expense was $3,528,000 for the
three-month ended March 31, 1995 compared to $2,960,000 for the same
period in 1994. This increase is due principally to the increase in
selling, general and administrative expense in the Financial Services
segment. The Financial Services segment had selling, general and
administrative expense of $1,786,000 for the three-month period in
1995 compared to $1,298,000 for the same period in 1994. This increase
was due to the expansion of the credit underwriting department at CII
and the opening of one new loan production office at both Loan
Pro$ and Premier.
The Apparel Manufacturing segment had selling, general and administrative
expense of $1,387,000 for the three-month period ended March 31, 1995
compared to $1,319,000 for the same period in 1994. This increase was due
to the opening of one retail factory outlet store during June of 1994.
Corporate selling, general and administrative expense was $341,000 for
the three-month period ended March 31, 1995 compared to $313,000 for
the comparable period in 1994. This small increase is reflective of
management's continuing efforts to control corporate overhead expenses.
12
<PAGE>
LIQUIDITY AND SOURCES OF CAPITAL
Cash and cash equivalents increased from $384,000 at December 31, 1994
to $1,183,000 at March 31, 1995. Cash provided by operating activities
for the three-month period ended March 31, 1995 was $3,157,000, cash used
in investing activities was $5,671,000 and cash provided by financing
activities was $3,313,000.
Cash used in investing activities was due principally to the net increase
in loans originated or purchased by the Financial Services segment. Cash
provided by financing activities was due principally to the increase in
borrowing by the Financial Services segment, both through bank financing
and through the sale of subordinated debentures and senior floating
rate notes.
The Financial Services segment requires continual access to long-term and
short-term sources of capital. This capital requirement is currently being
provided through the sale of senior floating rate notes and subordinated
debentures and mortgage banking activities by CII, utilization of lines of
credit and sales into the secondary market of the guaranteed portions of
loans originated by EBC. These sources of capital have historically been
sufficient to provide for the requirements of the operations of the
Financial Services segment. Although there can be no assurance as to this
matter, management believes, based on historical retention of invested funds,
that the capital provided by these sources should provide the sources of
capital necessary to continue the current and anticipated levels of
operations.
CII has available a line of credit in the amount of $20,000,000 of which
$17,800,000 was available at March 31, 1995. EBC has available a line of
credit up to a maximum of $8,000,000 of which none was available at March
31, 1995. This line is limited to the outstanding balance of the guaranteed
portion of loans made through the SBA. EBC also has a line of credit up to
a maximum of $24,000,000 of which $4,051,000 was available at March 31,
1995. The amount that can be borrowed under this line is limited to 65%
of the unguaranteed portion of loans made through the SBA. The amount that
can be borrowed under this line was increased as of April 28, 1995 to 80%
of the unguaranteed portion of loans made through the SBA. Loan Pro$ has
available a line of credit in the amount of $5,000,000 of which none was
available at March 31, 1995. This line of credit was increased to $8,000,000
as of April 13, 1995. YGI has available a line of credit in the amount of
$250,000 of which none was available at March 31, 1995.
Management believes that the Company's liquidity is adequate to continue
operations on both a short-term and long-term basis.
The Company has offered to purchase up to an aggregate of 980,000
shares of the Company's Class A Common stock and 20,000 shares of the
Company's Common stock, at a per share price of $1.15, through a
tender offer which expired on May 8, 1995. A total of 510,371 shares
of the Company's Class A Common stock and Common stock have been
tendered pursuant to this offer. The Company will pay $586,927 to
those shareholders who tendered shares pursuant to the offer. The
Company intends to provide this cash through the current cash on hand
13
<PAGE>
and through the cash flow provided to the Company through operations.
The Company has accrued a liability of $200,000 as a result of environmental
clean-up required at two former operating locations. The Company believes,
based on recommendations from the environmental engineering firms advising
the Company in each situation and the advice of legal counsel, that the
amount required for the clean-up of the two sites will not exceed the
amounts recorded.
The Company has no additional significant capital requirements as of
March 31, 1995.
PART 2 - OTHER INFORMATION
Item 5. Other Materially Important Events
On March 31, 1995 the Company sent to all shareholders' offers
to purchase for cash up to a total of 20,000 shares of its
Common stock and up to a total of 980,000 shares of its Class A
Common stock at a price, net to the seller in cash, of $1.15 per
share upon the terms and subject to the conditions set forth in the
Tender Offer. A total of 22,211 shares of Common stock and 488,160
shares of Class A Common stock were tendered pursuant to the Offers
to Purchase.
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits.
10.1 Offer to Purchase dated March 31, 1995
incorporated by reference to Exhibit 99(a)(1) to
Schedule E-4 filed with the Securities and Exchange
Commission on March 31, 1995.
10.1.1 Supplement No. 1 dated April 13, 1995 to Offer
to Purchase incorporated by reference to Exhibit
99(a)(1)(a) to Amendment No. 1 to Schedule 13 E-4 filed
with the Securities and Exchange Commission on April
13, 1995.
10.7.2 Extension of Offers to Purchase incorporated by
reference to Exhibits 99(a)(7)(a) and 99(a)(8)(a) to
Amendment No. 2 to Schedule 13 E-4 filed with the
Securities and Exchange Commission on May 1, 1995.
b) Reports of Form 8-K. None.
14
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
EMERGENT GROUP, INC.
Date May 12, 1995 /s/ Robert S. Davis
Robert S. Davis, Vice President,
Chief Financial Officer
15
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 1,183
<SECURITIES> 197
<RECEIVABLES> 91,274
<ALLOWANCES> 3,469
<INVENTORY> 3,553
<CURRENT-ASSETS> 0<F1>
<PP&E> 6,674
<DEPRECIATION> 3,580
<TOTAL-ASSETS> 114,870
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 0
<COMMON> 500
0
0
<OTHER-SE> 9,369
<TOTAL-LIABILITY-AND-EQUITY> 114,870
<SALES> 3,339
<TOTAL-REVENUES> 8,271
<CGS> 2,210
<TOTAL-COSTS> 5,809
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 489
<INTEREST-EXPENSE> 1,800
<INCOME-PRETAX> 173
<INCOME-TAX> (4)
<INCOME-CONTINUING> 177
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 169
<EPS-PRIMARY> 0.02
<EPS-DILUTED> 0.02
<FN>
<F1>Unclassified Balance Sheet
</FN>
</TABLE>
