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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
PC Service Source, Inc.
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(Name of Issuer)
Common Stock, $.01 par value
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(Title of Class of Securities)
693258-10-5
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(CUSIP Number)
James W. Moen
Katun Corporation
10951 Bush Lake Road
Bloomington, Minnesota 55438
(612) 941-9505
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
November 10, 1998
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(Date of Event Which Requires Filing of This Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following
box: [ ]
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SCHEDULE 13D
CUSIP No. 693258-10-5
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1) NAME OF REPORTING PERSON AND S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE
PERSON
Katun Corporation
41-1335933
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2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [ ]
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3) SEC USE ONLY
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4) SOURCE OF FUNDS
WC
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5) CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(D) OR 2(E) [ ]
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6) CITIZENSHIP OR PLACE OF ORGANIZATION
Minnesota
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7) SOLE VOTING POWER
338,750
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NUMBER OF 8) SHARED VOTING POWER
SHARES -0-
BENEFICIALLY ------------------------------------------------------
OWNED BY EACH 9) SOLE DISPOSITIVE POWER
REPORTING 338,750
PERSON ------------------------------------------------------
WITH 10) SHARED DISPOSITIVE POWER
-0-
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11) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
338,750
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12) CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[ ]
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13) PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.9% (1)
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14) TYPE OF REPORTING PERSON
CO
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(1) Based upon 5,760,320 shares of Common Stock outstanding as of August 1,
1998, as reflected in PC Service Source's Quarterly Report on Form 10-Q for the
quarter ended June 30, 1998.
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SCHEDULE 13D
ITEM 1. SECURITY AND ISSUER.
This statement relates to the common stock, par value $.01 per share
("Common Stock"), of PC Service Source, Inc., a Delaware corporation (the
"Company"), the principal executive offices of which are located at 2350 Valley
View Lane, Dallas, Texas 75234.
ITEM 2. IDENTITY AND BACKGROUND.
This statement is filed by Katun Corporation, whose business address
is 10951 Bush Lake Road, Bloomington, Minnesota 55438. Katun Corporation is
principally engaged in the manufacturing and distribution of spare parts and
consumable supplies for use in xerographic office equipment such as plain paper
photocopiers, plain paper facsimile machines and laser printers.
During the last five years, Katun Corporation has not been convicted
in a criminal proceeding and has not been a party to a proceeding involving (and
is not otherwise subject to) a judgment or other order prohibiting or mandating
activities subject to United States federal or state securities laws.
Katun Corporation is organized under the laws of the State of
Minnesota.
Information concerning the directors and executive officers of Katun
Corporation is set forth in Exhibit 1 attached hereto and incorporated herein by
reference.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
A total of 338,750 shares of Common Stock were acquired as described
in Item 4 below. Corporate funds of Katun Corporation in the amount of
approximately $976,649 (including brokerage commissions) were used to purchase
these shares. No funds used to purchase any of the shares of Common Stock
reported on this statement were borrowed.
ITEM 4. PURPOSE OF TRANSACTION.
Katun Corporation purchased an aggregate of 338,750 shares of Common
Stock in open market broker transactions. These shares were acquired for
investment purposes. Katun Corporation may from time to time purchase
additional shares of Common Stock, either in brokerage transactions, in the
over-the-counter market or in privately negotiated transactions. Any decision
to increase the holdings in the Company will depend, however, on numerous
factors, including without limitation the price of the shares of Common Stock,
the terms and conditions relating to their purchase and sale and the prospects
and profitability of the Company, and general economic conditions and stock and
money market conditions. At any time, Katun Corporation may also determine to
dispose of some or all of the Common Stock, depending on various similar
considerations. Except as stated above, Katun Corporation does not have any
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present plans or proposals which relate to or would result in any of the events
listed in Item 4(a) through (j) of Schedule 13D.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
Katun Corporation beneficially owns an aggregate of 338,750 shares of Common
Stock, or approximately 5.9% of the outstanding shares of Common Stock (based
upon the Company's Quarterly Report on Form 10-Q for the quarter ended June 30,
1998), and has sole voting and dispositive power with respect to all of such
shares. Katun Corporation has purchased the following number of shares of
Common Stock in open market brokerage transactions for the prices per share
(including brokerage commissions) and on the dates indicated below:
<TABLE>
<CAPTION>
DATE NUMBER OF SHARES PRICE
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<S> <C> <C>
October 5, 1998 20,000 $2.81062
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October 6, 1998 5,000 $2.50
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October 7, 1998 10,000 $2.75
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October 9, 1998 3,000 $2.4583
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October 13, 1998 4,000 $2.625
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October 13, 1998 2,000 $2.75
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October 13, 1998 4,000 $2.75
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October 15, 1998 15,000 $2.8542
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October 20, 1998 5,000 $2.625
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October 21, 1998 10,000 $2.875
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October 22, 1998 10,000 $2.875
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October 22, 1998 7,500 $2.834
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October 22, 1998 10,000 $2.750
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October 26, 1998 15,000 $2.8125
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October 26, 1998 5,000 $2.875
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October 28, 1998 20,000 $2.68437
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October 29, 1998 15,000 $2.7458
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October 30, 1998 50,000 $2.75
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November 3, 1998 35,000 $2.777
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November 3, 1998 30,000 $2.75
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November 4, 1998 6,000 $2.8958
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November 10, 1998 40,000 $3.2547
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November 12, 1998 5,000 $3.25
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November 13, 1998 6,400 $3.50
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November 16, 1998 5,800 $3.75
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</TABLE>
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ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
None
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Exhibit 1 Information concerning directors and executive officers of Katun
Corporation.
SIGNATURE
After reasonable inquiry and to the best knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
November 16, 1998 KATUN CORPORATION
/s/ T. Michael Clarke
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T. Michael Clarke, President & CEO
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Exhibit 1
DIRECTORS AND EXECUTIVE OFFICERS
OF KATUN CORPORATION
The names and present principal occupations of the directors and executive
officers of Katun Corporation are set forth below. During the last five years,
none of the individuals has been convicted in any criminal proceeding (excluding
traffic violations and similar misdemeanors) or has been a party to any civil
proceeding of a judicial or administrative body as a result of which such person
was or is subject to a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to, federal or
state securities laws or finding violations with respect to such laws. All of
the individuals listed below are citizens of the United States. None of the
directors and executive officers of Katun beneficially own any securities of the
issuer. In addition, none of the individuals is a party to any contract,
arrangement, understanding or relationship (legal or otherwise) with respect to
any securities of the issuer.
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<CAPTION>
NAME POSITION WITH KATUN PRESENT PRINCIPAL BUSINESS ADDRESS
CORPORATION OCCUPATION OR
EMPLOYMENT
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<S> <C> <C> <C>
1. President, CEO, President, CEO, Katun Corporation 10951 Bush Lake Road,
T. MICHAEL Chairman (Manufacturer and distributor of Bloomington, MN 55438
CLARKE parts and supplies for office equipment)
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2. Director Private Investor 80 Palmer Lane Portola Valley,
DAVID G. JORGENSEN CA 94028
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3. Executive Vice Executive Vice President, COO, 10951 Bush Lake Road,
LARRY J. President, COO, Katun Corporation (Manufacturer and Bloomington, MN 55438
STROUP Director distributor of parts and supplies for
office equipment)
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4. Sr. Vice President, CFO, Sr. Vice President, CFO, Katun 10951 Bush Lake Road,
KERRY K. Director Corporation (Manufacturer and distributor Bloomington, MN 55438
BAUBIE of parts and supplies for office equipment)
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5. Director Sr. Vice President, 800 Phillips Road,
ALLAN E. Xerox Corporation (Manufacturer of Building 105,
DUGAN office equipment) Webster, NY 14580
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6. Director President, COO, United Four Greenwich Office Park,
WAYLAND R. Rentals, Inc. Greenwich, CT 06830
HICKS (Equipment rentals)
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