<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K(A)
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
Date of Report: March 18, 1997
JACOR COMMUNICATIONS, INC.
DELAWARE
(State or Other Jurisdiction of Incorporation)
0-12404 31-0978313
(Commission File No.) (IRS Employer Identification No.)
50 East RiverCenter Boulevard
12th Floor
Covington, KY 41017
(606) 655-2267
<PAGE>
Item 2. Acquisition or Disposition of Assets
As previously reported, on March 18, 1997, Jacor Communications Company
("JCC"), a wholly owned subsidiary of Jacor Communications, Inc. (the
"Company"), and EFM Programming, Inc. ("Buyer"), a wholly owned subsidiary of
JCC, entered into an Asset Purchase Agreement (the "Acquisition Agreement")
with EFM Media Management, Inc., EFM Publishing, Inc., Pam Media, Inc.
(collectively, the "Sellers") and certain shareholders of the Sellers. The
description of that transaction is set forth in more detail in the
Registrant's initial Form 8-K filed with the Securities and Exchange
Commission on March 21, 1997.
Item 7. Financial Statements and Exhibits
(a) Financial Statements of Businesses Acquired.
The required audited financial statements have been previously filed
by the Company pursuant to its Form 8-K/A filed with the Securities and
Exchange Commission on March 26, 1997.
(b) Pro Forma Financial Information.
Unaudited Pro Forma Condensed Consolidated Statement of Operations for the
year ended December 31, 1996
Unaudited Pro Forma Condensed Consolidated Balance Sheet at
December 31, 1996
Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements
(c) Exhibits
2.1 Asset Purchase Agreement dated as of March 17, 1997 among Jacor
Communications Company ("JCC"), EFM Programming, Inc. ("Buyer"), and EFM
Media Management, Inc., EFM Publishing, Inc., Pam Media, Inc.
(collectively, the "Sellers") and certain shareholders of the Sellers
(omitting schedules and exhibits not deemed material).*
99.1 Press Release dated March 18, 1997.*
* Previously filed.
2
<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.
JACOR COMMUNICATIONS, INC.
May 2, 1997 By: /s/ Jon M. Berry
-----------------------------------
Jon M. Berry, Senior Vice President
and Treasurer
3
<PAGE>
UNAUDITED PRO FORMA FINANCIAL INFORMATION
The following unaudited pro forma financial information is based on the
historical financial statements of the Company and the Sellers and has been
prepared to illustrate the effects of the acquisitions described below and
the related financing transactions.
The unaudited pro forma condensed consolidated statements of operations
for the year ended December 31, 1996, the latest twelve months ended March
31, 1997 and the three months ended March 31, 1996 give effect to each of the
following transactions as if such transactions had been completed January 1,
1996: (i) the acquisition contemplated by the Acquisition Agreement (the "EFM
Acquisition"), (ii) the merger of a subsidiary of JCC with and into Premiere
Radio Networks, Inc. (the "Premiere Merger") and (iii) the Company's 1996
acquisition of Citicasters, Inc. ("Citicasters"), Noble Broadcast Group, Inc.
("Noble") and the Selected Gannett Radio Stations, the Company's immaterial
acquisitions completed in 1996, the Company's divestiture of its Tampa
television station, the Company's 1997 acquisition of Regent Communications,
Inc. ("Regent") and the Company's immaterial transactions completed in 1997
(collectively, the "Other Acquisitions"). The unaudited pro forma condensed
consolidated statement of operations for the three months ended March 31,
1997 gives effect to the following transactions as if such transactions had
been completed January 1, 1997: (i) the Premiere Merger, (ii) the EFM
Acquisition, and (iii) the Company's 1997 acquisition of Regent and other
1997 immaterial acquisitions both completed and pending as of April 30, 1997.
The pro forma condensed consolidated balance sheet as of March 31, 1997 has
been prepared as if the Premiere Merger and the Company's other pending
acquisitions of radio stations as of April 30, 1997 (the "Pending
Transactions") had occurred on March 31, 1997.
The Pending Transactions will be accounted for using the purchase method of
accounting. The total purchase costs of the Pending Transactions will be
allocated to the tangible and intangible assets and liabilities acquired based
upon their respective fair values. The allocation of the aggregate purchase
price reflected in the Unaudited Pro Forma Financial Information is preliminary.
The final allocation of the purchase price will be contingent upon the receipt
of final appraisals of the acquired assets and notes thereto. The Unaudited Pro
Forma Financial Information is not necessarily indicative of either future
results of operations or the results that might have occurred if the foregoing
transactions had been consummated on the indicated dates.
The Unaudited Pro Forma Financial Information should be read in
conjunction with Jacor's Consolidated Financial Statements and notes thereto
and Consolidated Financial Statements and notes for the Sellers, previously
filed with the Commission on March 26, 1997 pursuant to the Company's Form
8-K/A.
<PAGE>
JACOR COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1996
-----------------------------------------------------------------
OTHER JACOR
ACQUISITIONS OTHER
HISTORICAL PRO FORMA ACQUISITIONS HISTORICAL HISTORICAL
JACOR ADJUSTMENTS PRO FORMA EFM PREMIERE
----------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
Net revenue..................................................... $ 223,761 $ 220,373(a) $ 444,134 $ 47,357 $ 23,826
Broadcast operating expenses.................................... 151,065 154,119(a) 305,184 29,538 16,533
Depreciation and amortization................................... 23,404 40,993(a) 64,397 84 1,908
Corporate general and administrative expenses................... 7,629 1,479(a) 9,108 13,645
Unusual charges................................................. 417
Special bonuses................................................. 2,303 2,303
----------- ------------ ------------ ----------- -----------
Operating income (loss)..................................... 39,360 23,782 63,142 4,090 4,968
Interest expense................................................ (32,244) (46,232)(b) (78,476) (102)
Gain on sale of radio stations and other assets................. 2,539 2,539
Write-off of debt issuance costs................................ (1,949)
Other income (expense), net..................................... 5,716 5,716 488 1,217
----------- ------------ ------------ ----------- -----------
Income (loss) before income taxes and extraordinary items... 15,371 (22,450) (7,079) 4,578 4,134
----------- ------------ ------------ ----------- -----------
Income tax (expense) benefit.................................... (7,300) 6,629(h) (671) (1,698)
----------- ------------ ------------ ----------- -----------
Income (loss) before extraordinary items.................... $ 8,071 $ (15,821) $ (7,750) $ 4,578 $ 2,436
----------- ------------ ------------ ----------- -----------
----------- ------------ ------------ ----------- -----------
Income (loss) per common share.............................. $ 0.30
-----------
-----------
Number of common shares used in per share computations.......... 26,830
-----------
-----------
<CAPTION>
LTM ENDED
MARCH 31,
1997
-----------
PREMIERE ACQUISITION TOTAL TOTAL
PRO FORMA PRO FORMA COMBINED COMBINED
ADJUSTMENTS ADJUSTMENTS PRO FORMA PRO FORMA
------------- ------------ ----------- -----------
<S> <C> <C> <C> <C>
Net revenue..................................................... $ 7,852(c) $ 523,169 $ 533,627
Broadcast operating expenses.................................... 5,932(c) $ 2,606(d) 359,793 368,124
Depreciation and amortization................................... 2,400(c) 18,426(e) 87,215 88,020
Corporate general and administrative expenses................... (13,645)(d) 9,108 10,190
Unusual charges................................................. (417)(f)
Special bonuses................................................. 2,303 2,303
------------- ------------ ----------- -----------
Operating income (loss)..................................... (480) (6,970) 64,750 64,990
Interest expense................................................ (1,617)(b) (80,195) (78,712)
Gain on sale of radio stations and other assets................. 2,539 4,695
Write-off of debt issuance costs................................ 1,949(g)
Other income (expense), net..................................... (632)(c) 6,789 6,855
------------- ------------ ----------- -----------
Income (loss) before income taxes and extraordinary items... (1,112) (6,638) (6,117) (2,172)
------------- ------------ ----------- -----------
Income tax (expense) benefit.................................... 354(c) 1,128(h) (887) (454)
------------- ------------ ----------- -----------
Income (loss) before extraordinary items.................... $ (758) $ (5,510) $ (7,004) $ (2,626)
------------- ------------ ----------- -----------
------------- ------------ ----------- -----------
Income (loss) per common share.............................. $ (0.16) $ (0.06)
----------- -----------
----------- -----------
Number of common shares used in per share computations.......... 42,985(n) 42,985
----------- -----------
----------- -----------
</TABLE>
See accompanying notes to unaudited pro forma condensed consolidated financial
statements.
<PAGE>
JACOR COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31, 1997
----------------------------------------------------
OTHER JACOR
ACQUISITIONS OTHER
HISTORICAL PRO FORMA ACQUISITIONS HISTORICAL
JACOR ADJUSTMENTS PRO FORMA EFM
----------- ------------ ------------ -----------
<S> <C> <C> <C> <C>
Net revenue.................................................................. $ 88,828 $ 11,151(a) $ 99,979 $ 11,191
Broadcast operating expenses................................................. 67,305 9,956(a) 77,261 6,833
Depreciation and amortization................................................ 13,369 3,411(a) 16,780 16
Corporate general and administrative expenses................................ 2,762 2,762 1,146
----------- ------------ ------------ -----------
Operating income (loss).................................................. 5,392 (2,216) 3,176 3,196
Interest expense............................................................. (17,176) (2,353)(b) (19,529)
Gain on sale of radio stations and other assets.............................. 4,695 4,695
Other income (expense), net.................................................. 405 405 6
----------- ------------ ------------ -----------
Income (loss) before income taxes and extraordinary items................ (6,684) (4,569) (11,253) 3,202
----------- ------------ ------------ -----------
Income tax (expense) benefit................................................. 4,100 1,781(h) 5,881
----------- ------------ ------------ -----------
Income (loss) before extraordinary items................................. $ (2,584) $ (2,788) $ (5,372) $ 3,202
----------- ------------ ------------ -----------
----------- ------------ ------------ -----------
Loss per common share.................................................... $ (0.08)
-----------
-----------
Number of common shares used in per share computations....................... 34,085
<CAPTION>
THREE
MONTHS
ENDED MARCH
31, 1996
-----------
ACQUISITION TOTAL TOTAL
HISTORICAL PRO FORMA COMBINED COMBINED
PREMIERE ADJUSTMENTS PRO FORMA PRO FORMA
----------- ------------ ----------- -----------
<S> <C> <C> <C> <C>
Net revenue.................................................................. $ 7,190 $ 118,360 $ 107,902
Broadcast operating expenses................................................. 5,163 $ 650(d) 89,907 81,576
Depreciation and amortization................................................ 1,073 4,632(e) 22,501 21,696
Corporate general and administrative expenses................................ (1,146)(d) 2,762 1,680
----------- ------------ ----------- -----------
Operating income (loss).................................................. 954 (4,136) 3,190 2,950
Interest expense............................................................. (494)(b) (20,023) (21,506)
Gain on sale of radio stations and other assets.............................. 4,695 2,539
Other income (expense), net.................................................. 170 581 515
----------- ------------ ----------- -----------
Income (loss) before income taxes and extraordinary items................ 1,124 (4,630) (11,557) (15,502)
----------- ------------ ----------- -----------
Income tax (expense) benefit................................................. (461) 1,472(h) 6,892 6,459
----------- ------------ ----------- -----------
Income (loss) before extraordinary items................................. $ 663 $ (3,158) $ (4,665) $ (9,043)
----------- ------------ ----------- -----------
----------- ------------ ----------- -----------
Loss per common share.................................................... $ (0.11) $ (0.21)
----------- -----------
----------- -----------
Number of common shares used in per share computations....................... 42,985(n) 42,985
</TABLE>
See accompanying notes to unaudited pro forma condensed consolidated financial
statements.
<PAGE>
JACOR COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
(IN THOUSANDS)
<TABLE>
<CAPTION>
AS OF MARCH 31, 1997
----------------------------------------------------------------
OTHER JACOR
ACQUISITION OTHER
HISTORICAL PRO FORMA ACQUISITIONS HISTORICAL HISTORICAL
JACOR ADJUSTMENTS PRO FORMA EFM(O) PREMIERE
---------- ----------- ------------ ---------- ----------
<S> <C> <C> <C> <C> <C>
Current assets:
Cash and cash equivalents....................... $ 12,418 $ (6,831)(j) $ 5,587 $ 4,868 $11,584
Accounts receivable............................. 86,326 156(i) 86,482 2,220 6,973
Prepaid expenses and other current assets....... 17,081 754(i) 17,835 7,283 2,049
---------- ----------- ------------ ---------- ----------
Total current assets........................ 115,825 (5,921) 109,904 14,371 20,606
Property and equipment............................ 157,631 27,418(i) 185,049 153 2,375
Intangible assets................................. 1,531,138 209,732(i) 1,740,870 29,405
Other assets...................................... 87,827 (24,174)(i) 54,653 33 5,632
(9,000)(j)
---------- ----------- ------------ ---------- ----------
Total assets................................ $1,892,421 $198,055 $2,090,476 $ 14,557 $58,018
---------- ----------- ------------ ---------- ----------
---------- ----------- ------------ ---------- ----------
Current liabilities:
Accounts payable, accrued expenses and other
current liabilities........................... $ 65,496 $ 1,199(i) $ 66,695 $ 11,155 $ 3,354
Long-term debt, current portion................. 8,500 8,500
---------- ----------- ------------ ---------- ----------
Total current liabilities................... 73,996 1,199 75,195 11,155 3,354
Long-term debt.................................... 688,500 173,000(j) 861,500
5 1/2% Liquid Yield Option Notes.................. 120,183 120,183
Other liabilities................................. 111,035 1,206(i) 112,241 3,322 1,825
Deferred tax liability............................ 302,884 302,884 3,726
Shareholders' equity:
Common stock ................................... 348 9(j) 357 2 79
Additional paid-in capital...................... 538,564 22,641(j) 561,205 40,997
Common stock warrants........................... 31,500 31,500
Unrealized gain on investments.................. 8,191 8,191
Retained earnings............................... 17,220 17,220 78 8,037
---------- ----------- ------------ ---------- ----------
Total shareholders' equity.................. 595,823 22,650 618,473 80 49,113
---------- ----------- ------------ ---------- ----------
Total liabilities and shareholders'
equity..................................... $1,892,421 $198,055 $2,090,476 $ 14,557 $58,018
---------- ----------- ------------ ---------- ----------
---------- ----------- ------------ ---------- ----------
<CAPTION>
ACQUISITION TOTAL
PRO FORMA COMBINED
ADJUSTMENTS PRO FORMA
----------- ----------
<S> <C> <C>
Current assets:
Cash and cash equivalents....................... $(16,300)(l) $ 5,739
Accounts receivable............................. 95,675
Prepaid expenses and other current assets....... 27,167
----------- ----------
Total current assets........................ (16,300) 128,581
Property and equipment............................ 528(k) 188,105
Intangible assets................................. 200,079(k) 1,970,354
Other assets...................................... 60,318
----------- ----------
Total assets................................ $184,307 $2,347,358
----------- ----------
----------- ----------
Current liabilities:
Accounts payable, accrued expenses and other
current liabilities........................... $ 81,204
Long-term debt, current portion................. 8,500
----------
Total current liabilities................... 89,704
Long-term debt.................................... $ 23,500(l) 885,000
5 1/2% Liquid Yield Option Notes.................. 120,183
Other liabilities................................. 117,388
Deferred tax liability............................ 12,000(k) 318,610
Shareholders' equity:
(81)(m)
Common stock ................................... 71(l) 428
Additional paid-in capital...................... (40,997)(m) 759,134
197,929(l)
Common stock warrants........................... 31,500
Unrealized gain on investments.................. 8,191
Retained earnings............................... (8,115)(m) 17,220
----------- ----------
Total shareholders' equity.................. 143,107 816,473
----------- ----------
Total liabilities and shareholders'
equity..................................... $184,307 $2,347,358
----------- ----------
----------- ----------
</TABLE>
See accompanying notes to unaudited pro forma condensed consolidated financial
statements.
<PAGE>
JACOR COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF MARCH 31, 1997
(IN THOUSANDS)
(a) These adjustments reflect additional revenues and expenses related to the
Other Acquisitions.
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1996
--------------------------------------------------
BROADCAST DEPRECIATION
NET OPERATING AND CORPORATE G
REVENUE EXPENSES AMORTIZATION & A
--------- ----------- ------------- -----------
<S> <C> <C> <C> <C>
Noble............................................. $ 10,715 $ 9,062 $ 2,365 --
Citicasters....................................... 101,806 58,543 21,913 $ 1,479
Gannett........................................... 2,202 6,727 -- --
Regent............................................ 33,797 26,447 6,897 --
Other............................................. 71,853 53,340 9,818 --
--------- ----------- ------------- -----------
Total......................................... $ 220,373 $ 154,119 $ 40,993 $ 1,479
--------- ----------- ------------- -----------
--------- ----------- ------------- -----------
</TABLE>
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31, 1997
-------------------------------------
BROADCAST DEPRECIATION
NET OPERATING AND
REVENUE EXPENSES AMORTIZATION
--------- ----------- -------------
<S> <C> <C> <C> <C>
Regent............................................ -- $ 233 $ 1,145
Other............................................. $ 11,151 9,723 2,266
--------- ----------- -------------
11,151 9,956 3,411
--------- ----------- -------------
--------- ----------- -------------
</TABLE>
(b) These adjustments represent additional interest expense associated with
the Company's borrowings under its Credit Facility, the issuance of its
1996 10 1/8% Notes, 1996 9 3/4% Notes and 5 1/2% Liquid Yield Option
Notes, which proceeds were used to finance acquisitions. The assumed
interest rate under the Credit Facility was 7 1/8%, which represents
the rate as of April 1997.
(c) These adjustments represent additional revenues and expenses related to
Premiere's acquisitions of After MidNite Entertainment, completed January
1997, and Cutler Productions, SJM Productions and Philadelphia Music Works,
which were completed at various dates during the second half of 1996.
(d) These adjustments represent the elimination of $11,039 and $1,146 of
corporate expenses related to the EFM Acquisition and the reclassification
of $2,606 and $650 in operating expenses for the year ended December 31,
1996 and the three months ended March 31, 1997, respectively, to conform
with the Company's reporting practices. The elimination of expenses is due
primarily to salaries of the selling shareholder whose employment was not
continued.
(e) These adjustments reflect the additional depreciation and amortization
expense resulting from the allocation of the Company's purchase price to
the assets acquired in the Premiere Merger and the EFM Acquisition
including, an increase in property and equipment and identifiable
intangible assets, to their estimated fair market values and the goodwill
associated with the acquisition of Premiere. Goodwill is amortized over
40 years.
(f) These adjustments represent costs recorded by Premiere related to certain
attempted business acquisitions and the assimilation of completed business
acquisitions, including miscellaneous severance, professional fees and
transition costs.
(g) These adjustments represent the elimination of debt issuance costs written
off by Premiere in 1996.
(h) To provide for the tax effect of pro forma adjustments using an estimated
statutory tax rate of 40%. The acquisition adjustments described in Note (a)
include non-deductible goodwill amortization estimated to be approximately
$5,000 for the year ended December 31, 1996 and $1,250 for the three months
ended March 31, 1997. The acquisition adjustments for the Premiere Merger
include non-deductible goodwill amortization estimated to be approximately
$3,800 for the year ended December 31, 1996 and $950 for the three months
ended March 31, 1997.
(i) These adjustments represent the allocation of the purchase price of the
Other Acquisitions to the estimated fair value of the assets acquired and
liabilities assumed, and the recording of goodwill associated with the
acquisitions. Previously funded escrow deposits of $24,174 were allocated as
part of the purchase price.
<PAGE>
JACOR COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF MARCH 31, 1997
(IN THOUSANDS)
(j) The adjustment represents the issuance of stock, and Credit Facility
borrowings to finance the Other Acquisitions.
<TABLE>
<CAPTION>
OTHER
ACQUISITIONS
<S> <C>
Common Stock Issued.................................................................. $ 22,650
Credit Facility Borrowings........................................................... 173,000
-----------
Total............................................................................ $ 195,650
-----------
-----------
</TABLE>
The Company utilized $6,831 in excess cash and $9,000 of proceeds from the
sale of an investment to finance, in part, the Other Acquisitions.
(k) The adjustments represent the allocation of the purchase price of the EFM
Acquisition and the Premiere Merger to the estimated fair value of the
assets acquired and liabilities assumed, and the recording of goodwill
associated with these acquisitions.
(l) The adjustment represents the assumed net proceeds from proposed
offerings of Common Stock by the Company pursuant to its omnibus shelf
registration statement (Form S-3 No. 333-19291) declared effective by the
Commission in April 1997 and as described in the Company's Preliminary
Prospectus Supplement thereto dated May 2, 1997, to be utilized in part
to finance a portion of the Premiere Merger Consideration, and the issuance
of stock to the Premiere stockholders, borrowings under the Credit Facility
to finance the EFM Acquisition and excess cash utilized to pay down Credit
Facility borrowings.
<TABLE>
<CAPTION>
EFM PREMIERE TOTAL
<S> <C> <C> <C>
Common Stock Offering Net Proceeds.................................. -- $ 129,200 $ 129,200
Common Stock Offering Proceeds...................................... -- 20,000 20,000
Common Stock Issued to Premiere Stockholders........................ -- 48,800 48,800
Credit Facility Borrowings (repayments)............................. $ 50,000 (26,500) 23,500
Excess Cash Utilized................................................ -- 16,300 16,300
--------- ----------- ---------
$ 50,000 $ 187,800 $ 237,800
--------- ----------- ---------
--------- ----------- ---------
</TABLE>
Common Stock issued to Premiere stockholders includes Jacor stock options
which will be issued to certain Premiere option holders valued at $5,700.
(m) The adjustments represent the elimination of historical stockholders' equity
of the EFM Companies and Premiere as these acquisitions will be accounted
for as purchases.
(n) The pro forma weighted average shares outstanding includes all shares of
Common Stock outstanding at December 31, 1996 and March 31, 1997 and the
shares to be issued in the Company's proposed offerings of Common Stock,
the shares issued in conjunction with the acquisition of Regent and the
shares to be issued to the Premiere stockholders. The pro forma weighted
average shares of Jacor do not reflect any outstanding options and warrants
as they are antidilutive.
(o) The historical balance sheet for the EFM Companies has been prepared as of
December 31, 1996, the latest date for which a historical balance sheet was
available. The historical balance sheet of the EFM Companies is not material
to the Unaudited Pro Forma Condensed Consolidated Balance Sheet.
