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Previous: RES CARE INC /KY/, S-3, 1998-01-09 |
Next: SPECS MUSIC INC, 4, 1998-01-09 |
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR. 11(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
-----------------------
Date Report (Date of earliest event reported)
January 9, 1998
RES-CARE, INC.
(Exact Name of Registrant as Specified in its Charter)
KENTUCKY
(State or Other Jurisdiction of Incorporation)
0-20372 6l-0875371
(Commission File Number) (I.R.S. Employee Identification No.)
10140 LINN STATION ROAD, LOUISVILLE, KENTUCKY 40223
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(502) 394-2100
<PAGE> 2
ITEM 7. The Company is providing proforma financial information for the nine
months ended September 30, 1997 and the year ended December 31, 1996
to reflect the acquisitions of the Teledyne Economic Development
business ("TED Job Corps"), an operator of Job Corps centers, and
Communications Network Consultants, Inc., ("CNC"). The acquisition of
TED Job Corps was made effective September 30, 1997 for an aggregate
purchase price of $10 million in cash, subject to final adjustment,
the acquisition of CNC was made effective July 31, 1997 for an
aggregate purchase price of $28.8 million of which $16.6 million was
cash. See Proforma Consolidated Statements of Income attached.
2
<PAGE> 3
Res-Care, Inc.
Pro Forma Condensed Consolidated Statement of Income
Year Ended December 31, 1996
(Unaudited, in thousands)
<TABLE>
<CAPTION>
Res-Care, Res-Care,
Inc. TED Job Inc.
Actual CNC(a) Corps(a) Pro Forma
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net revenues:
Disabilities services $ 181,280 $ 13,559 -- -- $ 194,839
Youth services 42,985 -- 38,096 -- 81,081
----------- ----------- ----------- ----------- -----------
Total net revenues 224,265 13,559 38,096 -- 275,920
Facility and program expenses:
Disabilities services 156,657 8,980 -- -- 165,637
Youth services 38,221 -- 33,609 -- 71,830
----------- ----------- ----------- ----------- -----------
Total facility and program expenses 194,878 8,980 33,609 -- 237,467
----------- ----------- ----------- ----------- -----------
Facility and program contribution 29,387 4,579 4,487 -- 38,453
Operating expenses 13,500 1,378 2,477 1,388 (b) 18,743
----------- ----------- ----------- ----------- -----------
Operating income 15,887 3,201 2,010 (1,388) 19,710
Other (income) expenses, net 926 (55) -- 2,202 (c) 3,073
----------- ----------- ----------- ----------- -----------
Income before income taxes 14,961 3,256 2,010 (3,590) 16,637
Income taxes 5,518 -- 804 (134)(d)(e) 6,188
----------- ----------- ----------- ----------- -----------
Net income $ 9,443 $ 3,256 $ 1,206 ($ 3,456) $ 10,449
=========== =========== =========== =========== ===========
Income per share data:
Net income per share $ 0.91 $ 1.00
=========== ===========
Weighted average shares used in per share calculation 10,432 10,432
</TABLE>
See accompanying notes.
<PAGE> 4
Res-Care, Inc.
Pro Forma Condensed Consolidated Statement of Income
Nine Months Ended September 30, 1997
(Unaudited, in thousands)
<TABLE>
<CAPTION>
Res-Care, Res-Care,
Inc. TED Job Inc.
Actual CNC Corps Pro Forma
Nine Months Seven Months Nine Months Nine Months
Ended Ended Ended Ended
September 30, July 31, September 30, Pro Forma September 30,
1997 1997 (a) 1997 (a) Adjustments 1997
----------- ----------- ----------- ---------- -----------
<S> <C> <C> <C>
Net revenues:
Disabilities services $ 173,627 $ 9,152 -- -- $ 182,779
Youth services 38,175 -- 30,718 -- 68,893
----------- ----------- ----------- ---------- -----------
Total net revenues 211,802 9,152 30,718 -- 251,672
Facility and program expenses:
Disabilities services 149,491 6,146 -- -- 155,637
Youth services 34,095 -- 27,196 -- 61,291
----------- ----------- ----------- ---------- -----------
Total facility and program expenses 183,586 6,146 27,196 -- 216,928
----------- ----------- ----------- ---------- -----------
Facility and program contribution 28,216 3,006 3,522 -- 34,744
Operating expenses 11,862 1,033 2,021 1,069 (b) 15,985
----------- ----------- ----------- ---------- -----------
Operating income 16,354 1,973 1,501 (1,069) 18,759
Other (income) expenses, net 1,026 (42) -- 1,366 (c) 2,350
----------- ----------- ----------- ---------- -----------
Income before income taxes 15,328 2,015 1,501 (2,435) 16,409
Income taxes 6,172 -- 600 (168)(d)(e) 6,604
----------- ----------- ----------- ---------- -----------
Net income $ 9,156 $ 2,015 $ 901 ($ 2,267) $ 9,805
=========== =========== =========== ========== ===========
Income per share data:
Net income per share $ 0.78 $ 0.83
=========== ===========
Weighted average shares used in per share calculation 11,774 11,774
</TABLE>
See accompanying notes.
<PAGE> 5
Res-Care, Inc.
Notes to Pro Forma Condensed Consolidated Statements of Income
(a) The Pro Forma Condensed Consolidated Statements of Income for the year
ended December 31, 1996 and for the nine months ended September 30,
1997 give effect to the acquisitions of (i) Communications Network
Consultants, Inc. ("CNC") as of July 31, 1997 and (ii) the Teledyne
Economic Development Business ("TED Job Corps"), effective September
30, 1997 as if the transactions had occurred January 1, 1996 and 1997,
respectively. The 1997 pro forma columns for CNC and TED Job Corps
present their historical results of operations from January 1, 1997 to
the respective dates of acquisition.
(b) Gives effect to depreciation and amortization assuming that the CNC and
TED Job Corps acquisitions were consummated January 1, 1996 and 1997
for the respective pro forma statements.
(c) Reflects interest cost at an assumed rate of 6.75% on the combined
acquisition costs of CNC and TED Job Corps of $26.6 million, assuming
the transactions were consummated January 1, 1996 and 1997 for the
respective pro forma statements, and funded entirely with bank debt.
(d) Reflects $1,302,000 adjustment to income taxes on CNC's income for the
year ended December 31, 1996 and reflects $806,000 adjustment to income
taxes on CNC's income for the seven months ended July 31, 1997 at rates
of 40%. Prior to acquisition, CNC was an "S" corporation.
(e) Reflects income tax benefit adjustments of $1,436,000 for the year
ended December 31, 1996 and $974,000 for the nine months ended
September 30, 1997 for tax impact of additional interest, depreciation
and amortization.
<PAGE> 6
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 thereunto duly authorized.
RES-CARE, INC.
By: /s/ Ronald G. Geary
--------------------------------------------
Ronald G. Geary
President and Chief Executive Officer
Dated: January 9, 1998
3
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